ENVIRONMENTAL SCREENING REPORT

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ENVIRONMENTAL SCREENING REPORT Pursuant to the Canadian Environmental Assessment Act (CEA Act) SCREENING SUMMARY TransCanada PipeLines Limited (TransCanada) is proposing to conduct a contaminant sampling and remediation program located at Compressor Station 25 near Moosomin, Saskatchewan, (the Project). The Project will complete the remediation of soil that is contaminated with polychlorinated biphenyls and petroleum hydrocarbons, both inside and outside the boundaries of the station property. The NEB is of the view that, taking into account the implementation of TransCanada s proposed environmental procedures and mitigative measures, the proposed project is not likely to cause significant adverse environmental effects. PROJECT IDENTIFICATION Project Title: Section 58 Application for 2005 Construction No. 1 2005 Contaminant Sampling and Remediation Program Station 25 Physical Work/Activity: Applicant Name: Physical Activity TransCanada PipeLines Limited Application Date: 7 January 2005 CEA Act Registration Date: 13 January 2005 Project Location: 14 km northeast of Moosomin, Saskatchewan in 23-14-30 W1M CEA Act Law List Trigger: Section 58 of the NEB Act National Energy Board (NEB) File Number: 3400-T001-236 CEA Registry Number: 05-01-8701 Federal Environmental Assessment Coordinator: National Energy Board CEA Act Determination Date: 3 March 2005

1.0 SCOPE OF THE ENVIRONMENTAL ASSESSMENT Scope of the Project Physical Work and/or Activity Description Construction Phase Timeframe: Summer and Fall of 2005 Removal of PCB and hydrocarbon To be removed on Station 25 property and adjacent private land impacted soil Temporary road One temporary road on station property and a second on the neighboring landowner s property to access the off-site work area Temporary work space Will be required in the south slough area Rationale for the Project: To prevent or rectify any adverse impact to the environment caused by PCBs and petroleum hydrocarbons at Station 25 and on the adjacent lands. Scope of the Factors that were Considered: In conducting the environmental screening, the NEB considered the factors set out in paragraphs 16(1)(a) through (d) of the CEA Act. The scope of the environmental assessment includes the life cycle of the Project within the project area for those environmental elements listed in Section 4.3. 2.0 DESCRIPTION OF THE ENVIRONMENT Land-use Since 1958 the land use on the area of the proposed project has been industrial in all areas on the compressor station property and agricultural for the area adjacent to the south of the station. The proposed activity will not change the existing land use Biophysical Elements Outside the station boundary the area is low lying and wet and subject to regular flooding The Canada Land Inventory (CLI) (1971) has rated soils in the area as ranging from having moderate (Class 2) to severe (Class 5) limitations to agricultural production due to adverse soil characteristics and excess water due to poor drainage. Vegetation Native vegetation in the form of slough grasses are in the vicinity of the North and South Sloughs 2 of 11

3.0 CONSULTATION 3.1 Consultation Carried Out by TransCanada Government agency representatives were consulted, as part of the environmental assessment activities, to help identify any environmental concerns and/or potential timing constraints at the proposed Project site. Landowner consultation was conducted with the affected landowner regarding the extent of any contamination on his site and the intention to clean-up the contamination in the summer/fall of 2005. The Canadian Environmental Assessment Agency, in its role, coordinated provincial and federal authority involvement in the CEA Act process by sending out a letter to the Saskatchewan Environmental Assessment Branch. A letter was received by the NEB, dated 7 February 2005 that confirmed that there were no additional requirements for the Project under the Environmental Assessment Act. The NEB is not aware of any public concerns with respect to the environmental effects of the project. 3.2 Involvement of other Federal Authorities pursuant to the CEA Act The NEB, in its role as the FEAC, coordinated responsible authority and federal authority involvement in the CEA Act process by sending out a letter of notification on 14 January 2005. None of the Federal Government Agencies notified was triggered as a responsible authority for this Project. Environment Canada, as a federal authority provided expert advice on 8 February 2005, refer to Appendix A. 4.0 ENVIRONMENTAL EFFECTS ANALYSIS 4.1 Baseline Information and Sources The NEB s analysis is based on the information in the Application, letter dated 7 Februaty 2005 submitted by Saskatchewan Environmental Assessment Branch, letter dated 8 February 2005 submitted by Environment Canada and the response to information request from the applicant dated 15 February 2005. 4.2 Methodology of the NEB s Environmental Assessment In assessing the environmental effects of the project, the NEB used an issue-based approach. In its analysis within Section 4.3, the NEB identified interactions expected to occur between the proposed Project activities and the surrounding environmental elements. Also included were the consideration of potential accidents and malfunctions that may occur due to the Project and any change to the Project that may be caused by the environment. If there were no expected element/project interactions then no further examination was deemed necessary. Similarly, no further examination was deemed necessary for interactions that would result in positive or neutral potential effects. In circumstances where the potential effect was unknown, it was categorized as a potential adverse environmental effect. 3 of 11

In section 4.4, a further analysis was conducted for each potential adverse environmental effect. Section 4.4 includes a table listing all potential adverse environmental effects that are normally resolved through the use of standard design or routine mitigation measures. In these cases, mitigation measures are outlined or explanations are provided as to why mitigation measures are not required. 4 of 11

[Click here and type Project Title] NEB Environmental Screening Report 4.3 Project Environmental Interactions Environmental Element Project Interaction Y/N/U Description of Interaction (How, When, Where) Type of Potential Effect P/Ntl/ Potential erse Environmental Effects Soil and Soil Productivity Y a) During excavation on the agricultural land b) During stockpiling of contaminated soil a) Loss of soil productivity b) Additional contamination of soil Vegetation Y During excavation near the North and South Sloughs Weed infestation Water Quality and Quantity Y During excavation near the two shallow groundwater wells located adjacent to the bermed area to the east and south Loss of water quality and quantity Fish and Fish Habitat N Wetlands Y During excavation of contaminated sediment found within both the North and South Sloughs Loss of migratory bird habitat Wildlife and Wildlife Habitat Y During excavation of contaminated sediment found within both the North and South Sloughs Loss of migratory birds and nests Species at Risk (federal) U During excavation activities at both the North and South Sloughs Loss of species at risk and habitat Species of Special Status (provincial, territorial, local) U During excavation activities at both the North and South Sloughs Loss of species of concern and habitat Air Quality N Socio-Economic Human Occupancy/ Resource Use Heritage Resources N Traditional Land and Resource Use Socio and Cultural Well-being N N N 5 of 11

[Click here and type Project Title] NEB Environmental Screening Report Human Health/ Aesthetics N Other Accidents/Malfunctions Y Accidental spills of petroleum hydrocarbons and glycol from heavy equipment operations both on and off the station site Effects of the Environment on the Project N Soil and water contamination Legend: Y (Yes); N (No); U (Uncertain); P (Positive); Ntl (Neutral); (erse) 6 of 11

4.4 Analysis of potential adverse environmental effects that can be resolved through the use of standard design or mitigation measures Potential erse Environmental Effect Loss of soil productivity and additional soil contamination Proposed Standard Design or Mitigation Measures Salvage topsoil and segregate from subsoil, then replace in the correct order during reclamation Import additional topsoil on private land if required, the landowner will approve the source Segregate contaminated soil from uncontaminated soil in cells lined with impermeable material Weed infestation Restrict construction to the existing area of impact Restore native vegetation at the North and South Slough using an eco-region specific seed mix for reclamation Clean equipment will arrive onsite to reduce the introduction of weed seeds, imported topsoil will be inspected as a potential weed source and monitoring for weed infestation will be conducted post remediation Loss of water quality TCPL has installed additional shallow and deep groundwater wells on the site to monitor any potential contaminant impacts to groundwater from the area of impact Follow-up groundwater investigations will be undertaken when remediation is complete to determine if further investigations or remedial action is necessary A qualified hydro-geologic specialist will be retained to evaluate the situation and advise on appropriate construction procedures Runoff water that enters the excavation area will be tested to ensure compliance with freshwater guidelines, if the water exceeds the guidelines, treatment will be conducted on site or the water will be transported to an approved facility All drainage from the site has been redirected through a Granular Activated Carbon unit on site and released along the east side of the site away from the area of construction Loss of migratory bird habitat The shallow water wetland and the isolated basin marsh wetland (National Wetlands Working Group 1997) will be restored to the original configuration during reclamation of the site Loss of migratory birds and nests TCPL is not scheduled to conduct work during the restricted activity period for migratory birds between 15 April and 31 July. If work is to be conducted within the restricted period for migratory birds, a breeding bird survey will be conducted and mitigation will be developed in consultation with Environment Canada. Loss of species at risk, species of concern and related habitat TCPL will undertake a wildlife species at risk survey in 2005 prior to undertaking the remediation work as proposed by the Project. Soil and water contamination An environmental inspector will be on site to ensure the implementation of the appropriate procedures for clean-up and disposal Conduct refueling and servicing of the equipment a least 30 m away from the sloughs 7 of 11

Sediment and erosion control measures will be installed to prevent deleterious substances from entering the North and South Slough The NEB is of the view that for this project, if TransCanada follows the above-mentioned standard design or mitigative measures, these potential adverse environmental effects are not likely to be significant. 8 of 11

4.5 Cumulative Effects Assessment A cumulative effects assessment was not conducted as there are not other known projects or activities that have or will be carried out within the scope of this environmental assessment that have effects that could combine with adverse effects predicted for this Project. 4.6 Follow-Up Program The Project and its associated activities are routine in nature. The potential adverse environmental effects of the Projects are well understood based on past projects of a similar nature. No public concerns have been expressed related to environmental effects of the project. For these reasons, the NEB is of the view that a follow-up program would not be appropriate for this Project. 4.7 Proposed Conditions a) TransCanada shall implement or cause to be implemented all of the policies, practices, programs, mitigation measures, recommendations and procedures for the protection of the environment included in or referred to in its application and any subsequent filings. b) TransCanada shall file with the Board for approval a Species at Risk Survey, at least 14 days prior to work being conducted, the survey shall include: a) the results of the survey; b) evidence of consultation with Environment Canada regarding satisfaction with the proposed mitigation; and c) mitigation strategies to protect any identified Species at Risk. Construction shall not commence until TransCanada has received approval of its Species at Risk Survey from the Board. c) If the Project is to be conducted in the 15 April to 31 July restricted activity time period, TransCanada shall retain a qualified biologist to carry out a survey to identify any migratory birds and nests located near any Project activities. TransCanada shall file with the Board, prior to those activities, the results from the survey and all mitigation measures developed in consultation with Environment Canada. d) TransCanada shall file with the Board, at least 10 days prior to the commencement of the remediation work, a detailed activity schedule identifying major remediation activities and shall notify the Board of any modifications to the schedule as they occur. e) Within 30 days of the date that the remediation work associated with the Project is completed, TransCanada shall file with the Board a report describing the results of the verification sampling associated with the remediation activities. 9 of 11

f) Within 30 days of the date that the Project is completed, TransCanada shall file with the Board a groundwater sampling program that will include: a) the results of the shallow ground water verification sampling; and b) mitigation measures developed in consultation with Environment Canada. 5.0 THE NEB S CONCLUSION The NEB is of the view that if TransCanada s environmental protection procedures and mitigation measures are implemented as well as any conditions imposed by the NEB in any order that may be granted, the Project is not likely to cause significant adverse environmental effects. This represents a determination pursuant to section 20 (1) (a) of the CEA Act. This environmental screening report was approved by the NEB on the date specified on the cover page of this report under the heading CEA Act Determination Date. 6.0 NEB CONTACT Mr. Michel L. Mantha Secretary National Energy Board 444 Seventh Avenue S.W. Calgary, AB T2P 0X8 Facsimile (403) 292-5503 secretary@neb-one.gc.ca 10 of 11

Appendix A : Consultation Involvement of other Federal Authorities pursuant to the CEA Act Department/Agency Andrew Smart Environment Assessment Coordinator Environment Canada 300 Park Plaza 2365 Albert Street Regina, Saskatchewan S4P 4K1 Phone: 306.780.6544 Summary of Comments in Letter of ice Are hydrocarbon contaminants present in the sediments located off-site? Provide the name of the licenced landfill that the PCB contaminated material between 5 and 50 ppm will be transported to. Provide the name of the thermal destruction facility that the PCB contaminated material exceeding 50 ppm will be transported to. Environment Canada endorses the mitigation measures that have been proposed by the proponent to conduct a nesting survey for migratory birds if construction activity takes place between 15 April and 31 July. 11 of 11