t'):-:: October 7, 2008 Town of Collingwood 97 Hurontario Street Collingwood, Ontario L9Y 3Z5 Dear Mayor Carrier,

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1 t'):-:: Ministry of the Environment Ministere de l'environnement Cedar Pointe Drive chemin Cedar Pointe Barrie ON L4N 5R7 Barrie ON L4N 5R7 Tel: (705) TEll: (705) trontario Fax: (705) Telec: (705) October 7, 2008 Town of Collingwood 97 Hurontario Street L9Y 3Z5 Dear Mayor Carrier, This letter is to notify you that on Monday, October 6, 2008, the Ministry of the Environment posted a draft control order to Collingwood Ethanol in response to ongoing odour and noise emissions that have adversely impacted the community. This posting is a requirement under the Environmental Bill of Rights (EBR) for a 30-day public comment period. The purpose of this control order is to further require Collingwood Ethanol to address continued discharges of noise and/or odour that cause an adverse effect. Controls can include a closure of the operations to stop the discharges permanently or for a specified period. The odours in the southeast region of Collingwood are beyond acceptable limits and this control order is one further step towards resolving this issue. The Ministry has been working diligently with the community, the municipality and the companies in the Industrial Park to address odour and noise concerns for the past year. The Ministry will continue to take appropriate and immediate action to bring about a resolution as quickly as possible to concerns with this facility. We will continue to attend the area on a regular basis. The Ministry of the Environment values your input. Attached is a copy of the draft control order. We invite you to review it and post your comments on the EBR registry at registry number Please note that any comments received become part of the public record and will be considered prior to issuing the final control order. Deadline for submissions is November 5, Sincerely, Cindy Hood District Manager

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3 SCHEDULE 1 Owner: Collingwood Ethanol GP Ltd. 201 MacDonald Road L9Y 411 Martin Kazmir - mkazmir@collingwoodethanol.com Bruce Chandler - Bchand2007@aol.com Neighbouring Properties: Ontario Limited RR#l Feversham, Ontario NOC 1CO Ontario Limited RR#2 L9Y 3Z Ontario Limited th St. North Wasaga Beach, Ontario L9Z 1Z Ontario Limited Hwy 26 L9Y OA Ontario Limited 44 Thorny Brae Drive Thornhill, Ontario L3T 3G Ontario Inc. 40 South Service Road L9Y 5A7 Don Bannister 214 Merton Street Toronto, Ontario M4S 1A6 Carole Ann Durkin 77 Glen Davis Crescent Toronto, Ontario M4E 1X

4 Equity Savings Corporation 246 Hurontario Street L9Y 2M3 Habitat for Humanity South G 30 Sanford Fleming Road L9Y 4V7 Pilkington 1000 Highway 26 L9Y 4V8 Mary Mucci 242 Niagara Street Toronto, Ontario M6J 2L4 GraceAnne Poloni 19 Westdale Drive North York, Ontario M3K la4 VOA Canada Inc, 190 MacDonald Road L9Y 4N6 Vonlock Investments Limited Highway 26 L9Y OA5 Catch 22 Fresh Market Grill Highway 26 East L9Y 4E8 Blue Mountain Honda 12 Eva Crescent L9Y 3Zl Toyota Collingwood Highway 26 East L9Y 4H9

5 Blue Mountain Chrysler RR#2 L9Y 3Zl Goodall Rubber 100 Pretty River Parkway L9Y 4X2 Foley's Furniture 511 Hume Street L9Y 4H9 Home Furniture 101 Pretty River Parkway L9Y 4M8 Tim French Professional Corporation 101 Pretty River Parkway L9Y 4M8 Canadian Mist 202 MacDonald Street L9Y 4J2 Tom Hartle - tom hartle@b-f.com Harold Ferguson - Harold ferguson@b-f.com Collingwood East Environmental Action Committee 42 Waterfront Circle L9Y 4Z3 Peter Case - pcase(a)rogers.com Government Officials: Ministry of Health Marina Whelan - Marina.Whelan@smdhu.org Dr. Jim Pfaff - Jim.Pfaff@smdhu.org Natural Resources Canada Environmental Assessment, Science & Policy Integration Attn: Kim Mann Acting Senior Environmental Assessment Officer 580 Booth Street Ottawa, Ontario KIA OE4 Ontario Ministry of Agriculture, Food And Rural Affairs Zahir Islam - zahir.islam@ontario.ca

6 Town of Collingwood 97 Hurontario Street L9Y 3Z5 Mayor Chris Carrier - ccarrier@collingwood.ca

7 Ministry of the Environment Ministère de l Environnement DRAFT Director's Order Control Order Number JJRUB Section 7 Environmental Protection Act, R.S.O. 1990, c. E 19 ( EPA ) To: Collingwood Ethanol GP Ltd. 201 MacDonald Rd, L9Y 4J1 Canada Site: 201 MacDonald Rd Collingwood, County of Simcoe Refer to Part 3 for the meaning of all defined capitalized terms that apply to this Order, and for a synopsis of relevant provisions of the EPA. Part 1 - Key Background Facts Leading Up to the Order 1.1 The attached Provincial Officer s Report ( Report ) outlines the key background facts, issues and concerns regarding this matter which provide me with the reasons for this Order. 1.2 Opinion of Director The Report finds that Collingwood Ethanol is discharging contaminants, namely odour and noise into the natural environment and that these contaminants are causing an adverse effect, in contravention of subsection 14 (1) of the EPA and section 33, clauses (a), (b), and (c) of O. Reg. 419/05. Accordingly, having reviewed the Report, I am of the opinion that I am authorized to issue this Order under Section 7 of the EPA against Collingwood Ethanol. Draft Director s Control Order Number JJRUB Page 1 of 9

8 Part 2 - Work Ordered 2.1 Pursuant to the authority vested in me under section 7 and subsection 196(1) of the EPA, I hereby order you to do or cause to be done the following: A: Effective immediately, cease the continuation or repetition of the contravention of subsection 14(1) of the EPA and section 33, clauses (a), (b) and (c) of O. Reg. 419/05, Air Pollution-Local Air Quality, as amended, made under the EPA. All operations at the Site are to be shut down if no other actions will effectively stop the discharge into the natural environment of contaminants that are causing an adverse effect. B: Effective immediately within 24 hours of receipt from the Ministry of any notification of an adverse effect, provide to the Director written reports on measures being taken and to be taken to control any discharge of noise or odour causing an adverse effect. Part 3 - Terms and Relevant Legislation 3.1 Terms For the purposes of this Order, the following terms have the meanings described below: Collingwood Ethanol means Collingwood Ethanol GP Ltd., the corporation that is the general partner of Collingwood Ethanol, LP, the limited partnership that carries on the business at the Site and is the registered owner of the Site. Director means the undersigned Director or any other person as may be designated as a Director for the purposes of this Order. EBR means the Environmental Bill of Rights, 1993, S.O. 1993, C. 28, as amended. EPA means the Environmental Protection Act, R.S.O. 1990, c. E. 19, as amended. Ministry means the Ontario Ministry of the Environment. Order means this Director s Order number JJRUB, as it may be amended. O. Reg. 419/05 means Ontario Regulation 419/05, Air Pollution Local Air Quality, as amended, made under the EPA. Draft Director s Control Order Number JJRUB Page 2 of 9

9 Report means the provincial officer s report dated October 3, 2008, a copy of which is attached to this Order. Site means the property where the Collingwood Ethanol business is carried out, which is municipally known as 201 MacDonald Road,, Canada, L9Y 4J1, and is legally described as Part of Lot 42, Concession 7, Nottawasaga, Parts 2, 5, 8 & 9 on Plan 51R35155; Collingwood; PIN LT. Tribunal has the same meaning as in the EPA, namely, the Environmental Review Tribunal. 3.2 Relevant Provisions of the EPA The following sets out the provisions of the EPA that are relevant to this Order : Section 1 Definitions 1.0 In this Act, adverse effect means one or more of, (a) impairment of the quality of the natural environment for any use that can be made of it, (b) injury or damage to property or to plant or animal life, (c) harm or material discomfort to any person, (d) an adverse effect on the health of any person, (e) impairment of the safety of any person, (f) rendering any property or plant or animal life unfit for human use, (g) loss of enjoyment of normal use of property, and (h) interference with the normal conduct of business;. contaminant means any solid, liquid, gas, odour, heat, sound, vibration, radiation or combination of any of them resulting directly or indirectly from human activities that causes or may cause an adverse effect; discharge, when used as a verb, includes add, deposit, leak or emit and, when used as a noun, includes addition, deposit, emission or leak; Draft Director s Control Order Number JJRUB Page 3 of 9

10 natural environment means the air, land and water, or any combination or part thereof, of the Province of Ontario;. source of contaminant means anything that discharges into the natural environment any contaminant. Section 14 - Discharges 14 (1) Subject to subsection (2) but despite any other provision of this Act or the regulations, a person shall not discharge a contaminant or cause or permit the discharge of a contaminant into the natural environment, if the discharge causes or may cause an adverse effect. 14 (2) Subsection (1) does not apply to, (a) a discharge that is authorized under this Act or the Ontario Water Resources Act, if the discharge does not cause and is not likely to cause an adverse effect; or (b) a discharge of a contaminant that arises when animal wastes are disposed of in accordance with normal farming practices, if the only adverse effect that is caused or that may be caused by the discharge is an adverse effect referred to in clause (a) of the definition of adverse effect in subsection 1 (1) Sections 7 & Control Orders 7 (1) When the report of a provincial officer contains a finding that a contaminant discharged into the natural environment is a contaminant the use of which is prohibited by the regulations or is being discharged in contravention of section 14 or the regulations, the Director may issue a control order directed to, (a) an owner or previous owner of the source of contaminant; (b) (c) a person who is or was in occupation of the source of contaminant; or a person who has or had the charge, management or control of the source of contaminant. 7 (1.1) No order shall be issued under subsection (1) as a result of a finding that a contaminant is being discharged in contravention of section 14 unless the contravention causes or is likely to cause an adverse effect. 7 (2) The Director shall give notice of the control order to every municipality in which the contaminant is discharged and to the public in such manner as the Director considers appropriate Part XI Control Orders and Stop Orders 124 (1) The Director may, where he or she is authorized by this Act to issue a control order, order the person to whom it is directed to do any one or more of the following, namely, Draft Director s Control Order Number JJRUB Page 4 of 9

11 (a) to limit or control the rate of discharge of the contaminant into the natural environment in accordance with the directions set out in the order; (b) to stop the discharge of the contaminant into the natural environment, (i) permanently, (ii) for a specified period, or (iii) in the circumstances set out in the order; (c) to comply with any directions set out in the order relating to the manner in which the contaminant may be discharged into the natural environment; (d) to comply with any directions set out in the order relating to the procedures to be followed in the control or elimination of the discharge of the contaminant into the natural environment; (e) to install, replace or alter any equipment or thing designed to control or eliminate the addition, emission or discharge of the contaminant into the natural environment; (f) to monitor and record, both in the manner specified in the order, the discharge into the natural environment of the contaminant specified in the order and to report thereon to the Director; (g) to study and to report to the Director upon, (i) measures to control the discharge into the natural environment of the contaminant specified in the order, (ii) the effects of the discharge into the natural environment of the contaminant specified in the order, (iii) the natural environment into which the contaminant specified in the order is being or is likely to be discharged; and (h) to report to the Director in respect of fuel, materials and methods of production used and intended to be used, and the wastes that will or are likely to be generated. 124 (2) A person required under subsection (1) to study and to report to the Director on a matter shall report to the Director in the manner, at the times and with the information specified by the Director in the order. 125 Subject to section 140, when a copy of a control order is served upon the person to whom it is directed, that person, (a) shall comply with the order forthwith; or (b) shall, if the order sets out a future date by which it is to be complied with, comply with the order on or not later than such future date. 126 The Director may, by a further order, amend, vary or revoke a control order made under this Act and in each case shall cause a copy of the order to be served on the person to whom the order so amended, replaced or revoked was directed (1) Where the Director proposes to issue a control order, the Director shall serve notice of his or her intention, together with written reasons therefor and a copy of the report of the provincial officer or other person designated under this Act upon which Draft Director s Control Order Number JJRUB Page 5 of 9

12 the reasons are based, and shall not issue the control order until fifteen days after the service thereof. `127 (2) The person to whom the Director intends to issue the control order may make submissions to the Director at any time before the control order is issued Section Offences 186 (1) Every person who contravenes this Act or the regulations is guilty of an offence. 186 (1.1) Subsection (1) does not apply to a contravention of section 14 unless the contravention causes or is likely to cause an adverse effect. 186 (2) Every person who fails to comply with an order under this Act, other than an order under section 99.1, 100.1, 150 or 182.1, is guilty of an offence. 186 (4) Despite subsections (1), (2) and (3), a person to whom an order of the Minister, the Director or a provincial officer or a program approval of the Director is directed who complies fully with the order or approval shall not be prosecuted for or convicted of an offence in respect of the matter or matters dealt with in the order or approval that occurs during the period within which the order or program approval is applicable. 186 (5) The protection from prosecution under subsection (4) does not include protection from the imposition of an environmental penalty Section 196 Intermediate Action 196 (1) The authority to make an order under this Act includes the authority to require the person or body to whom the order is directed to take such intermediate action or such procedural steps or both as are related to the action required or prohibited by the order and as are specified in the order. 3.3 Relevant Provisions of O. Reg. 419/ Section 33 No person shall cause or permit to be caused the emission of any air contaminant to such extent or degree as may, (a) cause discomfort to persons; (b) cause loss of enjoyment of normal use of property; (c) interfere with normal conduct of business; or (d) cause damage to property. Draft Director s Control Order Number JJRUB Page 6 of 9

13 Part 4 - Administration 4.1 All orders are issued in the English language and may be translated into the French language. In the event that there should be a conflict between the English original and the French translation, the English original shall prevail. 4.2 The requirements of this Order are severable. If any requirement of this Order or the application of any requirement to any circumstance is held invalid, the application of such requirement to other circumstances and the remainder of the Order shall not be affected thereby. 4.3 Subsection 19(1) of the EPA provides that an order of the Director is binding upon the successor or assignee of the person to whom it is directed. 4.4 Subsection 186(2) of the EPA provides that non-compliance with the requirements of this Order constitutes an offence. 4.5 Any request to change a requirement in this Order shall be made in writing to the Director, with reason for the request, at least 14 days prior to any compliance date for that requirement. 4.6 The requirements of this Order are minimum requirements only and do not relieve you from: complying with any other applicable order, statute, regulation, municipal, provincial or federal law, or obtaining any approvals or consents not specified in this Order. 4.7 Notwithstanding the issuance of this Order, further or other orders may be issued in accordance with legislation as circumstances require. In particular, the Director shall issue an order where the approval of the Director is required in respect of a matter under this order and, the Director does not grant approval; or the Director does not grant approval because the changes which the Director considers necessary for granting approval have not been agreed to by the persons to whom this Order is issued. 4.8 Failure to comply with a requirement of this Order by the date specified does not absolve the parties from compliance with the requirement. The obligation to complete the requirement shall continue each day thereafter. 4.9 All documentation submitted to the Director pursuant to the requirements of this Order shall be submitted to: Draft Director s Control Order Number JJRUB Page 7 of 9

14 George Rocoski Director Ministry of the Environment 5775 Yonge St., 8 th Floor Toronto, Ontario, M2M 4J1 Fax: george.rocoski@ontario.ca Section 5 - Appeal 5.1 Under section 140 of the EPA you may require a hearing before the Tribunal, if, within fifteen days after service upon you of this Order, you serve written notice upon the Tribunal and the Director. 5.2 Section 142 of the EPA provides that the notice requiring the hearing must include a statement of the portions of the order for which the hearing is required and the grounds on which you intend to rely at the hearing. Except by leave of the Tribunal, you are not entitled to appeal a portion of the Order or to rely on grounds of appeal that are not stated in the notice requiring the hearing. 5.3 Service of a notice requiring a hearing must be carried out in a manner set out in section 182 of the EPA and Ontario Regulation 227/07: Service of Documents, made under the EPA as they may be amended from time to time. The address, address and fax numbers of the Director and the Tribunal are: The Secretary Environmental Review Tribunal 655 Bay Street, Suite 1500 Toronto, ON, M5G 1E5 Fax: (416) ERTTribunalSecretary@ontario.ca George Rocoski Director Ministry of the Environment 5775 Yonge St., 8 th Floor Toronto, Ontario, M2M 4J1 Fax: george.rocoski@ontario.ca. 5.4 Unless stayed by application to the Tribunal under Section 143 of the EPA, this Order is effective from the date of issue. 5.5 If you commence an appeal before the Tribunal, under section 47 of the EBR, you must give notice to the public in the EBR registry. The notice must include a brief Draft Director s Control Order Number JJRUB Page 8 of 9

15 description of this Order (sufficient to identify it) and a brief description of the grounds of appeal. The notice must be delivered to the Environmental Commissioner of Ontario who will place it on the EBR registry. The notice must be delivered to the Environmental Commissioner at Bay Street, Toronto, Ontario M5S 2B1 by the earlier of: days after the day on which the appeal before the Tribunal was commenced; and days after service on you of this Order. 5.6 Pursuant to subsection 47(7) of the EBR, the Tribunal may permit any person to participate in the appeal, as a party or otherwise, in order to provide fair and adequate representation of the private and public interests, including governmental interests, involved in the appeal. 5.7 For your information, under section 38 of the EBR, any person resident in Ontario with an interest in this Order may seek leave to appeal the Order. Under section 40 of the EBR, the application for leave to appeal must be made to the Tribunal by the earlier of: days after the day on which notice of this Order is given in the EBR registry; and if you appeal, 15 days after the day or which your notice of appeal is given in the EBR registry. Issued at Toronto this day of, 2008 GEORGE ROCOSKI Director, Section 7 of the EPA Draft Director s Control Order Number JJRUB Page 9 of 9

16 Ontario Ministry of the Environment Ministère de l Environnement Provincial Officer's Report Order Number JJRUB Main Doc. Ref. No JJRS9 Incident Report No JJRQT Collingwood Ethanol GP Ltd. 201 MacDonald Road Collingwood, ON L9Y 4J1 Site 201 MacDonald Road Town of Collingwood, County of Simcoe Observations 1. Authority to Issue Order This Provincial Officer s Report is issued to set out the findings necessary to support a control order under sections 7 and 124 of the Environmental Protection Act, R.S.O. 1990, c. E. 19, as amended (the EPA ). I reasonably believe that Collingwood Ethanol GP Ltd. ( Collingwood Ethanol ) is contravening subsection 14(1) of the EPA, as it is continuing to discharge contaminants, namely odour and noise, into the natural environment that cause or are likely to cause an adverse effect. Adverse effect is defined in the EPA to include impairment of the quality of the natural environment for any use can be made of it, harm or material discomfort to any person,... loss of enjoyment of normal use of property, and interference with the normal conduct of business. Contaminant is defined in the EPA to include odour, sound, vibration, or combination of any of them resulting directly or indirectly from human activities that causes or may cause an adverse effect. I also reasonably believe that Collingwood Ethanol is contravening section 33, clauses (a), (b) and (c) of O. Reg. 419/05, Air Pollution-Local Air Quality, as amended, made under the EPA. Page 1 of 6

17 2. Definitions For the purposes of this Report, the following terms have the meanings described below: Collingwood Ethanol means Collingwood Ethanol GP Ltd., the corporation that is the general partner of Collingwood Ethanol, LP, the limited partnership, that carries on the business at the Site. EPA means the Environmental Protection Act, R.S.O. 1990, c. E. 19, as amended. Ministry means the Ontario Ministry of the Environment. Site means the property where the Collingwood Ethanol business is carried out, which is municipally known as 201 MacDonald Road,, Canada, L9Y 4J1, and is legally described as Part of Lot 42, Concession 7, Nottawasaga, Parts 2, 5, 8 & 9 on Plan 51R35155; Collingwood; PIN LT. 3. Collingwood Ethanol and Site Description Collingwood Ethanol, L.P, is a limited partnership registered in the Province of Ontario as business identification number to carry on the business of operation of ethanol facility at 201 MacDonald Road,, L9Y 4J1 (the Site ). According to the Collingwood Ethanol website ( the partners are Chandler Ethanol Inc. and The Riverstone/Carlaw Group. Collingwood Ethanol GP Ltd., a Nova Scotia limited company having Ontario Corporation Number (Collingwood Ethanol) is the general partner that manages the Collingwood Ethanol facility. The Collingwood Ethanol facility is located in the Collingwood East Industrial Park. Collingwood Ethanol converted the former Nacan Products Plant into an ethanol plant using a wet milling process to produce ethanol as a fuel as well as a number of coproducts. Collingwood Ethanol GP Ltd. purchased the Site on July 5, Because Collingwood Ethanol received federal grants for the conversion project a screening level environmental assessment was undertaken in accordance with the federal Environmental Assessment Act. Natural Resources Canada determined on November 30, 2006 that the project is not likely to cause significant adverse environmental effects and approved the project subject to mitigation measures and a follow up program as described in the environmental assessment. The follow up program for noise and odours is estimated to conclude on December 31, Report Number: JJRUB Page 2 of 6

18 Collingwood Ethanol started limited production in June 2007 and reached its rated capacity, full production in June Since then Collingwood Ethanol has continued to experience various operational problems that have limited production from time to time. The Site is approximately 37 acres in size and consists of a warehouse, boiler house, ethanol storage tanks, main wet milling plant, main office building, scale house, waste water treatment facility, and other assorted buildings. Immediately to the west of the Site is Canadian Mist Distillers Limited. To the north and east of the Site is Highway 26. Southeast of the Site is the Pilkington Glass of Canada Ltd. plant, and 250 metres to the north and east of the Site, on the other side of Highway 26, is a residential area and in particular the Blue Shores Development. 4. Collingwood Ethanol Plan, Protocol and Odour Abatement Collingwood Ethanol submitted a Noise and Odour Abatement Plan to the Ontario Ministry of the Environment (the Ministry ) on August 27, The plan describes the Site and the steps that Collingwood Ethanol has taken and intends to take to address odour and noise concerns. On August 29, 2008, Collingwood Ethanol proposed a protocol to address what actions we will take after August 31 should Collingwood Ethanol be the source of the discharge that contravenes Section 14 of the EPA. The Ministry responded on August 29, 2008 by indicating that the protocol did not sufficiently address all actions to be taken to ensure that further adverse effects would not be experienced. The Ministry also indicated that if contraventions occurred following August 31, 2008, further actions would be taken to ensure compliance. 5. Noise and Odour Complaints since August 31, 2008 Since August 31, 2008, Ministry staff have regularly attended the Site to observe the operations at Collingwood Ethanol and follow up on complaints regarding any noise and/or odour issues. The Ministry has confirmed an adverse effect originating from Collingwood Ethanol on the following dates: A. Weekend of September 6 and 7, 2008 The Ministry and Collingwood Ethanol received a number of complaints from residents in the vicinity of Collingwood Ethanol on the weekend of September 6 th, and September 7 th, During a visit to the Blue Shores community on September 7 th, 2008 at approximately 6:30 pm, I confirmed the existence of strong odours in the community, primarily along Hwy 26, and the west side of the Blue Shores community (Newport, Clubhouse Drive, and parts of Waterfront Circle). It is my opinion that these odours did Report Number: JJRUB Page 3 of 6

19 have an adverse effect on people on the community, particularly, a loss of enjoyment of normal use of property. On September 8, 2008, I attended the Site to discuss the weekend odours with several of the residents in the Blue Shores community. Several residents interviewed, described very strong odours on Sunday, September 7 th, Residents indicated that they were forced to close their windows, had been unable to sleep, and suffered from headaches, eye irritation, and severe stress. B. September 23, 2008 On September 23 rd, 2008, at approximately 10:00 pm, Ministry staff attended the area of the East Collingwood Industrial Area and observed a strong odour in the area of Highway 26 and St. Clair Street. Odour was described as a musty, corn silage odour strong enough to result in adverse effect, particularly, a loss of enjoyment of normal use of property. Ministry staff did meet with a resident of Blue Shores, who confirmed adverse effect as a result of both odour and noise emissions from Collingwood Ethanol. C. September 24, 2008 The Ministry and Collingwood Ethanol received numerous complaints from residents in the vicinity of Collingwood Ethanol on the evening of September 24 th, During a visit to the Site at approximately 9:00 pm, Ministry staff attended the area of the East Collingwood Industrial Area and observed a strong odour in the residential area to the North East of Collingwood Ethanol. The odour was described as a sweet odour, so intense that people outside and exposed to this odour had to seek shelter indoors. This odour was strong enough to result in an adverse effect, specifically, loss of enjoyment of normal use of property. D. September 30, 2008 On September 30, 2008 Ministry staff noted a strong odour along Highway 26 from the entrance to the Blue Shores community to the East end of the property owned by Pilkington Glass. The odour was described as a sour odour, strong enough to force people indoors and adversely affect their use and enjoyment of their property. E. October 2, 2008 On October 2, 2008 at approximately 7:10 am, I noticed a strong odour along Highway 26 and into the Blue Shores community. The odour was consistent with a fermentation type odour. In my opinion, this odour was sufficient to result in an adverse effect. The Ministry and Collingwood Ethanol received complaints from residents of Blue Shores on the morning of October 2, 2008 confirming that they had been impacted by the odours. Report Number: JJRUB Page 4 of 6

20 Odours were again confirmed on the afternoon of October 2, 2008 in the vicinity of Collingwood Ethanol, and the Blue Shores community. Complaints were received at the same time as observations were being made by Ministry staff. Ministry staff confirmed the odours in area of Blue Shores, as well as along Highway 26 at the West Entrance to the Blue Shores community. The Ministry staff member was of the opinion that these odours are sufficient to result in an adverse effect, specifically, loss of enjoyment of normal use of property. 6. Contraventions I am of the opinion that the discharges from Collingwood Ethanol are contributing to the noises and odours being experienced downwind of the East Collingwood Industrial Area, resulting in an adverse effect, specifically, loss of enjoyment of normal use of property. The table below sets out the provisions of the EPA and O. Reg. 419/05 that I reasonably believe that Collingwood Ethanol is contravening. I believe that Collingwood Ethanol must take action to prevent the continuation or repetition of these contraventions. By use of a control order, the Ministry may impose a variety of controls on the operation of Collingwood Ethanol including the jurisdiction to stop the discharge of the contaminant into the natural environment, (i) permanently, (ii) for a specified period, or (iii) in the circumstances set out in the order. Report Number: JJRUB Page 5 of 6

21 Suspected Violation(s)/Offence(s): Act - Regulation - Section, Description {General Offence} 1) EPA - 14 (1), No person shall discharge a contaminant or cause or permit the discharge of a contaminant into the natural environment, if the discharge causes or may cause an adverse effect. {186 (1)} 2) EPA - Reg. 419/05-33 (a), No person shall cause or permit to be caused the emission of any air contaminant to such extent or degree as may cause discomfort to persons. {186 (1)} 3) EPA - Reg. 419/05-33 (b), No person shall cause or permit to be caused the emission of any air contaminant to such extent or degree as may cause loss of enjoyment of normal use of property. {186 (1)} 4) EPA - Reg. 419/05-33 (c), No person shall cause or permit to be caused the emission of any air contaminant to such extent or degree as may interfere with normal conduct of business. {186 (1)} Jason Lehouillier, Provincial Officer Badge Number: 941 Date: 2008/10/03 District Office: Barrie District Office Report Number: JJRUB Page 6 of 6