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SUMMARY OF THE PROJECT DESCRIPTION Prepared for: LNG Canada Development Inc. 595 Burrard Street, PO Box 49162 Vancouver, BC V7X 1J1 Prepared by: Stantec Consulting Ltd. 4370 Dominion Street Burnaby, BC V5G 4L7 Tel: (604) 436-3014 Fax: (604) 436-3752 Stantec Project No: 1231-10458 Date: March 21, 2013 LNG CANADA PROJECT

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SUMMARY OF THE PROJECT DESCRIPTION

Prepared for:

LNG Canada Development Inc.

595 Burrard Street, PO Box 49162

Vancouver, BC V7X 1J1

Prepared by:

Stantec Consulting Ltd.

4370 Dominion Street

Burnaby, BC V5G 4L7

Tel: (604) 436-3014 Fax: (604) 436-3752

Stantec Project No: 1231-10458

Date:

March 21, 2013

LNG CANADA

PROJECT

SUMMARY OF THE PROJECT DESCRIPTION

Table of Contents

March 21, 2013

S-i

Table of Contents – Summary of the Project Description

1 General Information and Contact(s) .................................................................................... 1

2 Project Information ................................................................................................................ 2

2.1 Project Activities ............................................................................................................. 6

2.1.1 Construction .................................................................................................... 6

2.1.2 Commissioning and Start-up ........................................................................... 8

2.1.3 Operation ......................................................................................................... 8

2.1.4 Decommissioning and Reclamation ................................................................ 9

2.2 Emissions, Discharges and Wastes ............................................................................... 9

2.3 Project Scheduling ....................................................................................................... 10

3 Project Location ................................................................................................................... 12

4 Federal Involvement ............................................................................................................ 16

5 Environmental Effects ......................................................................................................... 17

5.1 Environmental Setting .................................................................................................. 17

5.1.1 Climate and Air Quality .................................................................................. 17

5.1.2 Aquatic Resources ........................................................................................ 19

5.1.3 Vegetation Resources ................................................................................... 19

5.1.4 Wildlife Resources ......................................................................................... 20

5.2 Potential Project Effects ............................................................................................... 21

6 Aboriginal Groups ............................................................................................................... 23

7 Consultation with the Public and Other Parties ............................................................... 27

List of Tables

Table of Concordance ........................................................................................................................... iii

List of Photographs

Photo 1: Proposed LNG facility site and adjacent facilities ..................................................... 13

Photo 2: Proposed LNG Canada marine terminal .................................................................. 13

List of Figures

Figure 2-1: Proposed Project Site Map ......................................................................................... 4

SUMMARY OF THE PROJECT DESCRIPTION

Table of Contents

March 21, 2013

S-ii

Figure 2-1A: Proposed and Alternative Project Site Map ................................................................ 5

Figure 2-2: Marine Access Route to the Port of Kitimat .............................................................. 11

Figure 3-1: LNG Canada Regional Map ...................................................................................... 14

Figure 3-2: Zoning Map ............................................................................................................... 15

Figure 5-1: Regional Environmental Setting ............................................................................... 18

Figure 6-1: Asserted Traditional Territory Overview Map ........................................................... 24

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-iii

Table of Concordance

Clause Requirement Section Notes

REGULATION SOR/2012-148

1.0 General Information

1 The nature of the project 1

1 The proposed location of the project 3

1 The name of the project 1

2 The proponent’s name and contact information and the name and contact information of their primary representative for the purpose of the description of the project

1

3 A description of and the results of any consultations undertaken with any jurisdictions and other parties including Aboriginal peoples and the public

6

4(a) Other relevant information, including the environmental assessment and regulatory requirements of other jurisdictions

1,2,4

4(b) Information concerning any environmental study that is being or has been conducted of the region where the project is to be carried out.

3

2.0 Project Information

5 A description of the project’s context and objectives 2

6 The provisions in the schedule to the Regulations Designating Physical Activities describing the project in whole or in part.

2

7 A description of the physical works that are related to the project including their purpose, size and capacity

2

8 The anticipated production capacity of the project and a description of the production processes to be used, the associated infrastructure and any permanent or temporary structures.

2

9 A description of all activities to be performed in relation to the project. 2

10 A description of any solid, liquid, gaseous or hazardous waste that is likely to be generated during any phase of the project and of plans to manage those wastes.

2

11 A description of the anticipated phases of and the schedule for the project’s construction, operation, decommissioning, and abandonment.

2

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-iv

Clause Requirement Section Notes

3.0 Project Location Information

12 A description of the project’s location, including: 3

12(a) Geographic coordinates 3

12(b) Site maps produced at an appropriate scale in order to determine the project’s overall location and

the spatial relationship of the project components

Photos 1 and 2;

Figure 2-1

12(c) The legal description of land to be used for the project, including the title, deed or document and

any authorization relating to a water lot Figure 3-2

12(d) The project’s proximity to any permanent, seasonal or temporary residences 3

12(e) The project’s proximity to reserves, traditional territories as well as lands and resources currently

used for traditional purposes by Aboriginal peoples 3

12(f) The project’s proximity to any federal lands 3

4.0 Federal Involvement

13 A description of any financial support that federal authorities are, or may be, providing to the project 4 No federal funding for

the project

14 A description of any federal land that may be used for the purpose of carrying out the project 4 No federal land

involved in the Project

15 Any federal legislative or regulatory requirements that may be applicable including a list of permits, licenses or other authorizations that may be required in order to carry out the project.

4

5.0 Environmental Effects

16 A description of the physical and biological setting 5

17 (a) A description of any changes that may be caused, as a result of carrying out the project, to fish as defined in section 2 of the Fisheries Act and fish habitat as defined in subsection 34(1) of that Act;

5.2

17(b) A description of any changes that may be caused, as a result of carrying out the project to aquatic species, as defined in subsection 2(1) of the Species at Risk Act

5.2

17(c) A description of any changes that may be caused, as a result of carrying out the project to migratory birds, as defined in subsection 2(1) of the Migratory Birds Convention Act, 1994

5.2

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-v

Clause Requirement Section Notes

18 A description of any changes to the environment that may occur, as a result of carrying out the project, on federal lands, in a province other than the province in which the project is proposed to be carried out or outside of Canada

5 None

19

Information on the effects on Aboriginal peoples of any changes to the environment that may be caused as a result of carrying out the project, including effects on health and socio-economic conditions, physical and cultural heritage, the current use of lands and resources for traditional purposes or on any structure, site or thing that is of historical, archaeological, paleontological or architectural significance.

5

CEAA PROJECT DESCRIPTION GUIDANCE DOCUMENT

1.0 General Information and Contact(s)

1 Describe the nature of the designated project, and proposed location (2–3 paragraphs; note that additional location details are to be provided in section 3).

2, 3

2 Provide proponent contact information:

Name of the designated project.

Name of the proponent.

Address of the proponent.

Chief Executive Officer or equivalent (include name, official title, email address, and telephone number).

Principal contact person for purposes of the project description (include name, official title, email address and telephone number).

1

3 Provide a list of any jurisdictions and other parties including Aboriginal groups and the public that were consulted during the preparation of the project description. (A description of the result of any consultations undertaken is to be provided in sections 6 and 7).

6, 7

4 Provide other relevant information:

Provide information on whether the designated project is subject to the environmental assessment and/or regulatory requirements of another jurisdiction(s).

Provide information on whether the designated project will be taking place in a region that has been the subject of a regional environmental study. Proponents are advised to contact the Agency during the preparation of the project description for information regarding any regional environmental studies that may be relevant.

1, 2, 4

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-vi

Clause Requirement Section Notes

2.0 Project Information

1 Provide a general description of the project, including the context and objectives of the project. 2

2 Indicate the provisions in the Regulations Designating Physical Activities setting out the designated activities that describe the project in whole or in part.

2

2.1 Provide a description of the components associated with the proposed project, including:

Physical works associated with the designated project (e.g., large buildings, other structures, such as bridges, culverts, dams, marine transport facilities, mines, pipelines, power plants, railways, roads, and transmission lines) including their purpose, approximate dimensions, and capacity. Include existing structures or related activities that will form part of or are required to accommodate or support the designated project.

Anticipated size or production capacity of the designated project, with reference to thresholds set out in the Regulations Designating Physical Activities, including a description of the production processes to be used, the associated infrastructure, and any permanent or temporary structures.

If the designated project or one component of the designated project is an expansion, the percent of increase in size or capacity from the existing project (relative to the thresholds set out in the Regulations Designating Physical Activities).

A description of all activities to be performed in relation to the designated project.

2

No expansion

2.2 Provide a description of any solid, liquid, gaseous or hazardous wastes likely to be generated during any phase of the designated project and of plans to manage those wastes, including the following:

Sources of atmospheric contaminant emissions during the designated project phases (focusing on criteria air contaminants and greenhouse gases, or other non-criteria contaminants that are of potential concern) and location of emissions.

Sources and location of liquid discharges.

Types of wastes and plans for their disposal (e.g., landfill, licensed waste management facility, marine waters, or tailings containment facility).

2

2.3 Provide a description of the timeframe in which the development is to occur and the key project phases, including the following:

Anticipated scheduling, duration and staging of key project phases, including preparation of the site, construction, operation, and decommissioning and abandonment.

Main activities in each phase of the designated project that are expected to be required to carry out the proposed development (e.g., activities during site preparation or construction might include, but are not limited to, land clearing, excavating, grading, de-watering, directional drilling, dredging and disposal of dredged sediments, infilling, and installing structures).

2

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-vii

Clause Requirement Section Notes

3.0 Project Location

1 Coordinates (i.e. longitude/latitude using international standard representation in degrees, minutes, seconds) for the centre of the facility or, for a linear project, provide the beginning and end points

3

2 Site map/plan(s) depicting location of the designated project components and activities. The map/plan(s) should be at an appropriate scale to help determine the relative size of the proposed components and activities

Photos 1 and 2;

Figure 2-1

3 Map(s) at an appropriate scale showing the location of the designated project components and activities relative to existing features, including but not limited to:

3(a) Watercourses and waterbodies with names where they are known Figure 2-1

3(b) Linear and other transportation components (e.g., airports, ports, railways, roads, electrical power transmission lines and pipelines)

Figure 2-1

3(c) Other features of existing or past land use (e.g., archaeological sites, commercial development, houses, industrial facilities, residential areas and any waterborne structures)

Figure 2-1

3(d), 6(b)

Location of Aboriginal groups, settlement land (under a land claim agreement) and, if available, traditional territory

Figure 2-1

3(e), 6(c)

Federal lands including, but not limited to National parks, National historic sites, and reserve lands Figure 2-1

3(f) Nearby communities Figure 2-1, Figure 3-2

3(g) 6(a)

Permanent, seasonal or temporary residences Figure 2-1

3(h) Fisheries and fishing areas (i.e., Aboriginal, commercial and recreational) Information is being developed in consultation with First Nations and Stakeholders

3(i) Environmentally sensitive areas (e.g., wetlands, and protected areas, including migratory bird sanctuary reserves, marine protected areas, and National Wildlife areas)

Figure 2-1

3(j) Provincial and international boundaries Figure 3-1 None in the vicinity of the project

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-viii

Clause Requirement Section Notes

4 Photographs of work locations to the extent possible Photo 1, Photo 2

5 Legal description of land to be used for the designated project, including the title, deed or document and any authorization relating to a water lot.

Figure 3-2

3.1 To the extent that is known at this time, describe the ownership and zoning of land and water that may be affected by the project, including the following:

3.1(a) Zoning designations 3

3.1(b) Current land ownership, including sub-surface rights 3

3.1(c) Any applicable land use, water use (including ground water), resource management or conservation plans within and near the project site.

None

3.1(d) For the proposed construction, operation, decommissioning and abandonment of a marine terminal, state whether or not the lands are routinely, and have been historically, used as a marine terminal, or are designated for such use in a land use plan that has been the subject of public consultation

3

3.1(e) If the project is to take place within the waters or lands administered by a Canada Port Authority under the Canada Marine Act and its regulations, describe applicable land status and zoning under the Port Land Use Plan.

3

3.1(f) Describe whether the designated project is going to require access to, use or occupation of, or the exploration, development and production of lands and resources currently used for traditional purposes by Aboriginal peoples

3, 6

4.0 Federal Involvement—Financial Support, Lands, and Legislative Requirements

1 Describe if there is any proposed or anticipated federal financial support that federal authorities are, or may be, providing to the designated project

4 No federal funding for the project

2 Describe any federal lands that may be used for the purpose of carrying out the designated project. This is to include any information on any granting of interest in federal land (i.e., easement, right of way, or transfer of ownership)

4 No federal land involved in the Project

3 Detail any federal legislative or regulatory requirements that may be applicable, including a list of permits, licenses or other authorizations that may be required to carry out the designated project.

4

5.0 Environmental Effects

1 A description of the physical and biological setting, including the physical and biological components in the area that may be adversely affected by the project (e.g., air, fish, terrain, vegetation, water, wildlife,

5

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-ix

Clause Requirement Section Notes

including migratory birds, and known habitat use).

2 A description of any changes that may be caused as a result of carrying out the designated project to:

2(a) Fish and fish habitat, as defined in the Fisheries Act 5

2(b) Aquatic species, as defined in the Species at Risk Act 5

2(c) Migratory birds, as defined in the Migratory Birds Convention Act, 1994 5

3 A description of any changes to the environment that may occur, as a result of carrying out the designated project, on federal lands, in a province other than the province in which the project is proposed to be carried out, or outside of Canada

5

4 A description of the effects on Aboriginal peoples of any changes to the environment that may be caused as a result of carrying out the designated project, including effects on health and socio-economic conditions, physical and cultural heritage, the current use of lands and resources for traditional purposes, or any structure, site or thing that is of historical, archaeological, paleontological or architectural significance

5

6.0 Proponent Engagement and Consultation with Aboriginal Groups

1 A list of Aboriginal groups that may be interested in, or potentially affected by, the designated project, including contact information (location, name, mailing address, email address, and fax and telephone numbers).

6

2 A description of the engagement or consultation activities carried out to date with Aboriginal groups, including:

6

2(a) Names of Aboriginal groups engaged or consulted to date with regard to the project 6

2(b) Date(s) each Aboriginal group was engaged or consulted 6

2(c) Means of engagement or consultation (e.g., community meetings, mail or telephone). 6

3 An overview of key comments and concerns expressed by Aboriginal groups identified or engaged to date, including any responses provided to these groups.

6

4 An overview of information on current use of lands and resources for traditional purposes by Aboriginal groups or peoples (e.g., information provided verbally or in writing, and past or present studies).

6

5 A consultation and information-gathering plan that outlines the ongoing and proposed Aboriginal engagement or consultation activities, the general schedule for these activities and the type of information to be collected (or, alternatively, an indication of why such engagement or consultation is not required).

6

SUMMARY OF THE PROJECT DESCRIPTION

Table of Concordance

March 21, 2013

S-x

Clause Requirement Section Notes

7.0 Consultation with the Public and Other Parties (other than Aboriginal consultation included above)

1 A list of stakeholders that may be interested and potentially affected by the carrying out of the designated project. In addition, please describe consultation activities carried out to date with stakeholders, including:

7

1(a) Names of stakeholders previously consulted 7

1(b) Date(s) each stakeholder was consulted 7

1(c) Means of consultation (e.g., community meetings, mail or telephone) 7

2 An overview of key comments and concerns expressed to date by stakeholders and any responses that have been provided.

7

3 An overview of any ongoing or proposed stakeholder consultation activities. 7

4 A description of any consultations that have occurred with other jurisdictions that have environmental assessment or regulatory decisions to make with respect to the project.

7

SUMMARY OF THE PROJECT DESCRIPTION

Section 1: General Information and Contact(s)

March 21, 2013

S-1

1 GENERAL INFORMATION AND CONTACT(S)

The LNG Canada Export Terminal Project (“the Project”) is a proposed natural gas liquefaction facility

and marine terminal for the export of liquefied natural gas (“LNG”), to be located in the District of Kitimat,

British Columbia (BC). The proponent is LNG Canada Development Inc. (“LNG Canada”), an operating

entity established by its four project owners (“the Project Owners”): Shell Canada Energy, Diamond LNG

Canada Ltd. (an affiliate of Mitsubishi Corporation), Kogas Canada LNG Ltd. (an affiliate of Korea Gas

Corporation), and Phoenix Energy Holdings Limited (an affiliate of PetroChina Investment (Hong Kong)

Limited).

The mailing address for LNG Canada is:

LNG Canada Development Inc.

595 Burrard Street, PO Box 49162

Vancouver, BC V7X 1J1

The lead executive of LNG Canada is:

Mr. Victor A. Ojeda

All communications regarding the Project should be sent to the following:

Primary Contact:

Darcy Janko, LNG Canada – Regulatory and Environment Manager

Telephone: (403) 384-6375

Email: [email protected]

Alternate Contact:

Russell Morrison, LNG Canada - Senior Environmental Planner

Telephone: (403) 691-3047

Email: [email protected]

It is expected the Project will require an environmental assessment (“EA”) under both the British

Columbia Environmental Assessment Act (BCEAA) and the Canadian Environmental Assessment Act

2012 (CEAA 2012).

SUMMARY OF THE PROJECT DESCRIPTION

Section 2: Project Information

March 21, 2013

S-2

2 PROJECT INFORMATION

The LNG exported from the Project will connect the abundant natural gas resources in the Western

Canadian Sedimentary Basin ("WCSB") and the growing worldwide demand for LNG, including in the

Asia-Pacific region. The North American gas market has experienced a dramatic shift in recent years,

where North American gas supply now exceeds forecasted near and long-term demand. Increased gas

production from new gas fields in the United States, such as the Barnett, Haynesville, and Marcellus

plays, have significantly reduced the share of the continental gas market served by the WCSB. In

addition, unconventional gas plays in Western Canada have significantly enhanced the resources

potential of the WCSB.

Concurrent with the dramatic increase in gas supply in North America and productive potential in the

WCSB, demand for natural gas is expected to continue to increase around the world. Canada can provide

a politically stable, major new supply source of LNG with ready access to investors throughout the value

chain. The Project will allow access to global markets for LNG, including the Asia-Pacific region for which

the WCSB represents one of the closest and most attractive long-term supply sources.

To enable the export of LNG, LNG Canada is proposing a Project consisting of the following major

components, all located in the Province of British Columbia, as shown in Figure 2-1 and 2.1A:

a natural gas receiving and LNG production facility (“LNG facility”) that, at full build-out, will

require approximately 104 million m3/day (3.7 Billion standard cubic feet/day (Bcf/day) or 3.9

PetaJoules/day (PJ/day) of natural gas of which approximately 96 million m3/day (3.4 Bcf/day or

3.57 PJ/day) will be processed into approximately 24 million tonnes per annum (mtpa) of LNG

and approximately 8 million m3/day (0.3 Bcf/day or 0.32 PJ/day) will be used for fuel;

a marine terminal (“marine terminal”) able to accommodate two LNG carriers each with a

capacity between 130,000 m3 (approximately 64,000 Dead Weight Tonnage (DWT)) and 265,000

m3 (approximately 122,000 DWT);

supporting infrastructure and facilities including power supply and handling, water supply and

handling, and waste collection and treatment; and

temporary infrastructure and facilities (located outside of the facility site).

Based on the Project processing capacity (up to 69,000 tonnes/day of LNG) and storage capacity

(450,000 m3 of LNG; equivalent to approximately 10.5 PJ of potential energy) at full build out (with four

LNG trains), the Project is a “designated project” under the Canadian Environmental Assessment Act

2012 (CEAA 2012). The following sections of the Regulations Designating Physical Activities likely apply

to the Project:

Section 2(a)-- Depending on final electrical power option selected, the Project may involve

construction and operation of a fossil fuel-fired electrical generating station with a production capacity

of 200 MW or more,

SUMMARY OF THE PROJECT DESCRIPTION

Section 2: Project Information

March 21, 2013

S-3

Section 13(d)—The construction, decommissioning and abandonment of a facility for the

liquefaction, storage or regasification of liquefied natural gas, with a liquefied natural gas

processing capacity of more than 3,000 t/d or a liquefied natural gas storage capacity of more

than 50,000 t;

Section 13(f)—The construction, decommissioning and abandonment of a liquefied petroleum

gas storage facility with a capacity of more than 100,000 m3; and

Section 27(c)—The construction, operation, decommissioning and abandonment of a marine

terminal designed to handle vessels larger than 25,000 DWT unless the terminal is located on

lands that are routinely and have been historically used as a marine terminal or that are

designated for such use in a land-use plan that has been the subject of public consultation.

The proposed marine terminal for the Project involves modifications to the existing RTA “B” Wharf. LNG

Canada continues to evaluate an alternative marine terminal that involves the installation of a new facility

adjacent to District Lots 88 and 89. The proposed cryogenic rundown and vapour return pipelines would

connect the LNG facility site with the selected marine terminal.

A number of sites are being considered for temporary Construction Camps. The potential Camp(s) and

associated staff transportation will be considered in the EA. There is currently one preferred Camp site

which is located immediately adjacent to the LNG facility site within lands currently being used by RTA as

a construction camp.

Douglas Channel(Kitimat Arm)

KITIMAT

NECHAKO

MinetteBay

K i t i m a t R i v e r

KITAMAATVILLAGE

Proposed Marine Terminal

Existing Shell Kitimat Terminal Site

Rio Tinto Alcan Plant

GaTd-3

GaTd-3

FlTd-5

GaTd-5

GaTe-3

Wathl Creek

Moore Creek

Anderson Creek

PineC

reek

Morrison Creek

LN G CAN ADAKITIMAT, BRITISH COLUMBIA 2-1

N AD 83

UTM9 SHS4370 Dom inion StreetBurna b y, British Colum b iaV5G 4L7Tel. (604) 436 3014 Fa x. (604) 436 3752

Sta ntec

SWDATE

DRAW N BY

FIGURE N O.

PROJECTION

DATUM CHECKED BY

Source: BC TRIM Topographic Database

PROPOSED PROJECT SITE MAP

15-MAR-13 3/15/2

013 -

11:52

:37 AM

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W a terc ourseExisting Ha ul Roa d – to b e up gra d edExisting W a ter Infra struc ture -to b e up gra d edExisting Construc tion Ca m pExisting High Volta ge Tra nsm issionLine Corrid orProp osed Fa c ility SiteProp osed Cryogenic Pip eline Corrid orArc ha eologic a l SitesFirst N a tions ReserveW etla nd

±

0 500 1,000 1,500Metres

1:40,000

SUMMARY OF THE PROJECT DESCRIPTION

Douglas Channel(Kitimat Arm)

KITIMAT

NECHAKO

MinetteBay

K i t i m a t R i v e r

KITAMAATVILLAGE

Alternative Marine Terminal

Proposed Marine Terminal

Existing Shell Kitimat Terminal Site

Rio Tinto Alcan Plant

GaTd-3

GaTd-3

FlTd-5

GaTd-5

GaTe-3

Wathl Creek

Moore Creek

Anderson Creek

PineC

reek

Morrison Creek

LN G CAN ADAKITIMAT, BRITISH COLUMBIA 2-1a

N AD 83

UTM9 SHS4370 Dom inion StreetBurna b y, British Colum b iaV5G 4L7Tel. (604) 436 3014 Fa x. (604) 436 3752

Sta ntec

SWDATE

DRAW N BY

FIGURE N O.

PROJECTION

DATUM CHECKED BY

Source: BC TRIM Topographic Database

PROPOSED AND ALTERNATIVE PROJECT SITE MAP

15-MAR-13 3/15/2

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W a terc ourseExisting Ha ul Roa d – to b e up gra d edExisting W a ter Infra struc ture -to b e up gra d edExisting Construc tion Ca m pExisting High Volta ge Tra nsm issionLine Corrid orProp osed Fa c ility SiteProp osed Cryogenic Pip eline Corrid orAlterna tive Cryogenic Pip eline a ndTenta tive Tunnel Corrid orArc ha eologic a l SitesFirst N a tions ReserveW etla nd

±

0 500 1,000 1,500Metres

1:40,000

SUMMARY OF THE PROJECT DESCRIPTION

SUMMARY OF THE PROJECT DESCRIPTION

Section 2: Project Information

March 21, 2013

S-6

2.1 Project Activities

2.1.1 Construction

Upon receipt of the necessary regulatory approvals and permits, construction will commence. This phase

will include the following main steps:

LNG facility site preparation involving vegetation clearing and grubbing, rock or material removal

or fill, grading and levelling, compaction, potential installation of retention or erosion control

structures, and potentially some paving in designated areas;

site preparation for staging areas and (where necessary) the Camp(s), including vegetation

clearing and grubbing, rock or material removal or fill, grading and levelling, compaction; and the

set-up of temporary facilities such as trailers, maintenance buildings, approved sanitary facilities

and may also include the installation of temporary water collection structures;

modifications and upgrades to the existing RTA (former Eurocan) haul road to accommodate the

transfer of large LNG modules and equipment from the material offloading area to staging areas

or the LNG facility site;

shipping of LNG facility modules, supplies, and equipment by barge or other vessel to the

material offloading area at the marine terminal;

transportation of construction materials, supplies and equipment by transport truck or rail to the

LNG facility site;

installation of necessary utilities for both the LNG facility site and marine terminal (including

electrical power, industrial and potable water systems, industrial and municipal wastewater

collection, industrial and municipal wastewater treatment, fire protection system, storm water

collection, vehicle fuelling station, and oil-water separator);

construction of suitable foundations including installation of piles where required;

construction of the natural gas treatment facilities, and NGL extraction and storage facilities

(including construction of a rail car staging area and loading facilities in coordination with CN Rail);

construction of the natural gas liquefaction facilities (including trains, refrigeration compressors,

and relevant infrastructure);

construction of up to two 225,000 m3 LNG storage tanks;

construction of plant piping, process cooling towers and facility site flare system;

construction of a larger water intake structure on the Kitimat River and larger connecting water

pipeline to the LNG facility site;

construction of a larger wastewater pipeline from the LNG facility site to an outlet in the Kitimat

Arm;

SUMMARY OF THE PROJECT DESCRIPTION

Section 2: Project Information

March 21, 2013

S-7

construction of ancillary support facilities such as facility administrative offices, storage, and

maintenance facilities;

installation of additional temporary or permanent access roads into the LNG facility site and into the

marine terminal;

construction of the proposed marine terminal, would involve modifications to the existing RTA “B”

Wharf and would include:

modifying the wharf to accommodate two LNG carriers and a material offloading area

including:

removal of portions of the existing wharf to accommodate two berths;

installation of sheet piling, additional pilings and relevant support structures (e.g.,

mooring and berthing dolphins);

installation of material offloading and laydown areas;

installation of transfer piping and electrical infrastructure;

construction and installation of the cryogenic rundown and vapour return pipelines

connecting the LNG facility site with the marine terminal; and

dredging of the harbour berth areas and transportation of dredge materials to approved

containment/disposal areas.

construction of the alternative marine terminal would include the construction of two new wharves

adjacent to District Lots 88/89 to accommodate two LNG carriers and would include:

installation of piles, decking and relevant support structures (e.g., mooring and berthing

dolphins);

installation of transfer piping and electrical infrastructure;

construction of a cut and cover tunnel from the LNG facility site west across the north

side of the RTA site and underneath the existing road and railway infrastructure;

boring of a tunnel between a suitable entry area northwest of the RTA site and a suitable

exit point in District Lot 89 near the marine terminal site;

blasting / excavation of areas in Lot 89 near the tunnel exit;

transportation and containment/disposal of blast rock/excavated materials;

installation of support piles as necessary;

installation of containment structures where required;

installation of the cryogenic rundown and vapour return pipelines;

installation of a secondary flare system;

modification and upgrades to the Methanex Jetty to accommodate material offloading;

and

dredging of the proposed berth areas and transportation of dredge materials to approved

containment/disposal areas.

SUMMARY OF THE PROJECT DESCRIPTION

Section 2: Project Information

March 21, 2013

S-8

Construction workers will be transported between the Terrace-Kitimat Regional airport (during

crew changes), the Camp(s), and the LNG facility site/marine terminal by buses or other suitable

group transportation method (e.g., rail transportation on the existing CN Rail corridor from

Terrace).

2.1.2 Commissioning and Start-up

During the commissioning and start-up (CSU) phase, Project components will be tested (including

hydrotesting of piping and vessels) and optimized (including repeated starting and stopping of various

components, testing of emergency shutdown procedures and repeated facility flaring).

2.1.3 Operation

During regular operation of the Project, the following key activities will occur:

gas treatment to remove trace amounts of CO2, H2S, mercury, water, and other impurities;

NGLs extraction, storage, and transfer onto rail cars;

LNG production;

LNG transfer to storage tanks;

LNG loading onto LNG carriers;

piloting of LNG carriers along the marine access route;

shipping of LNG to global markets;

maintenance of the LNG facility and marine terminal;

maintenance of water intake infrastructure on the Kitimat River;

maintenance of the wastewater outfall in the Kitimat Arm;

shipping of supplies and equipment by barge or other vessel to the material offloading area at the

marine terminal;

transportation of supplies and equipment by transport truck or rail to the LNG facility site;

solid and liquid industrial and municipal waste management including collecting and testing of

storm water and wastewaters, and the collecting and transfer of solid wastes to approved

disposal facilities; and

monitoring of LNG facility emissions.

The marine access route is from near the Triple Island Pilotage Station through Principe Sound, Douglas

Channel to the Kitimat Arm as shown on Figure 2-2. At full build-out, the Project would expect between

170 and 350 carrier visits per year depending on carrier size.

SUMMARY OF THE PROJECT DESCRIPTION

Section 2: Project Information

March 21, 2013

S-9

2.1.4 Decommissioning and Reclamation

At the end of the Project’s operational life, the LNG facility and marine terminal will be decommissioned in

accordance with the applicable regulations at the time. Currently there are no regulations for

decommissioning of LNG facilities in BC, but LNG Canada expects requirements will be established

through discussions with the BC Oil and Gas Commission as part of permitting.

2.2 Emissions, Discharges and Wastes

All construction, CSU, and operation emissions, discharges and wastes will be managed to ensure

compliance with applicable policies and regulations. The emissions, discharges, and wastes are

expected to include:

expected atmospheric emissions include:

emissions from combustion sources such as turbines, generators, flares would include

CO, SOx (sulphur oxides), and NOx (mono-nitrogen oxides), GHG’s and potentially

particulate matter (PM10, PM2.5);

; and

fugitive hydrocarbons.

expected liquid wastes include:

sewage from the Camp, construction offices, LNG facility;

wastewater from the cooling towers and industrial wastewater from gas dehydration

process;

site gathered storm water,

wastewater discharge locations are expected to include the Kitimat River (for clean storm

water discharge) and the Kitimat Arm marine waters; and

allowable ballast water discharges (in accordance with legislation and best management

practices).

expected solid wastes include:

contaminated soil/materials excavated from Project footprint;

dredged material from the harbour berth pocket(s);

solid wastes from shipment of project components, including packing materials;

solid wastes from construction of project components, including materials from tunnel and

marine terminal;

solid municipal or industrial wastes from the Camp;

solid municipal and industrial wastes from LNG facility operation and maintenance; and

solid wastes from LNG carriers including plastic ash and packaging materials.

The disposal of solid project wastes is being evaluated. Options include municipal waste disposal at the

local District of Kitimat landfill (contracted removal by truck), industrial or contaminated waste disposal at

SUMMARY OF THE PROJECT DESCRIPTION

Section 2: Project Information

March 21, 2013

S-10

a licensed waste management facility located elsewhere (contracted removal by rail car or truck), dredge

material disposal within approved containment areas at or near the facility site or marine terminal site

(that meet regulations) or possibly through disposal at sea (potential sites to be determined in discussion

with regulators and local First Nations).

2.3 Project Scheduling

Project construction is expected to start in 2015, pending receipt of the necessary regulatory approvals,

with construction of the first phase expected to be completed in 2019 / 2020. The life of the Project is

expected to be a minimum of 25 years, with operations continuing until decommissioning in 2045 or later.

See Section 2.1 for a description of construction, operation, decommissioning and abandonment phase

activities.

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Project Site

LNG CANADAKITIMAT, BRITISH COLUMBIA 2-2

NAD 83

NP4370 Dominion StreetBurnaby, British ColumbiaV5G 4L7Tel. (604) 436 3014 Fax. (604) 436 3752

Stantec

WPDATE

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DATUM CHECKED BY

Source: BC TRIM Topographic Database

MARINE ACCESS ROUTETO THE PORT OF KITIMAT

13-MAR-13 3/13/2

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! Existing Power Transmission Line (Overhead)International BorderExisting PipelineWatercourse/Waterbody/Marine AreaWater BodyCompulsory Pilotage Areas

!.

UTM9SUMMARY OF THE PROJECT DESCRIPTION

Triple Island Pilot Station

SUMMARY OF THE PROJECT DESCRIPTION

Section 3: Project Location

March 21, 2013

S-12

3 PROJECT LOCATION

The Project will be located on approximately 300-350 hectares of private fee-simple property within the

District of Kitimat. A schematic view of the Project is shown in Figure 2-1 and 2.1A. The majority of the

lands and water lots supporting and adjacent to the Project are designated “Industrial, M1 -

Manufacturing” in the current zoning. For the lands designated Industrial, approved uses include industrial

and marine activities, as well as temporary construction camps. The LNG facility site does abut and in

small areas overlap lands zoned as “Greenbelt, G6-A Special Area, Environmentally Sensitive” (District of

Kitimat 2012). The areas zoned Greenbelt are generally a 100 m buffer on the western edge of the Kitimat

River, following Fisheries and Oceans Canada (DFO) development restrictions in the District (District of Kitimat

1992). Figure 3-1 provides an overview of the region. Zoning is shown in Figure 3-2. The Project is

approximately 2.25 km from the closest residential areas located in the town of Kitimat and 4 km from the

Haisla Nation Kitamaat Village. Directly to the east across the Kitimat River is Haisla Indian Reserve No.

1.

The LNG facility and supporting infrastructure will be located near the existing RTA aluminum smelter in

Kitimat. Approximately 10% of the LNG facility site was previously developed for methanol production,

storage, and transshipment (former Methanex Corporation facility), and for condensate transshipment

(Cenovus Energy Inc.). The former Methanex site is owned by Shell (“Shell site”) on behalf of the Project

Owners. Coordinates for the approximate center of the Shell site are:

Latitude/Longitude—54.029229/-128.68809

Universal Transverse Mercator—Zone 9U East 520431.7386 North 5986818.7386

BC Oil and Gas Grid—D-36-B and C-35-B/103-I-2

The marine terminal will be located within the private Port of Kitimat. The proposed marine terminal for the

Project involves modifications to the existing RTA “B” Wharf. LNG Canada continues to evaluate an

alternative marine terminal that involves the installation of a new facility adjacent to District Lots 88 and

89. The proposed cryogenic rundown and vapour return pipelines would connect the LNG facility site

with the selected marine terminal. Photos 1 and 2 show overviews of the site and marine terminal.

Several assessments have been conducted in close proximity to the Kitimat area including those in

support of the following projects or initiatives:

Kitimat LNG Terminal Project (2004 to 2006);

BC LNG Export Cooperative Project (2010 to 2012);

Pacific Trail Pipelines (formerly Kitimat to Summit Lake Pipeline Loop) Project (2005 to 2008);

Enbridge Northern Gateway Project (2004 to 2012);

Crab/Europa Hydroelectric Development (2007 to 2008);

Chu Molybdenum Mine Project (2009 to 2010); and

RTA smelter facility and other activities or facilities within the RTA site adjacent to the Project.

SUMMARY OF THE PROJECT DESCRIPTION

Section 3: Project Location

March 21, 2013

S-13

Photo 1: Proposed LNG facility site and adjacent facilities

Photo 2: Proposed LNG Canada marine terminal

Existing Shell Site

Proposed LNG Canada

Facility Site

Former Eurocan Pulp Site now Kitimat LNG

Existing Rio Tinto Alcan

Site

Existing RTA “A” Wharf

Proposed marine terminal -

Existing RTA “B” Wharf

Existing Rio

Tinto Alcan Site

Proposed LNG Canada Facility

Site

±

LNG CANADAKITIMAT, BRITISH COLUMBIA 3-1

NAD 83

BC Albers NP4370 Dominion StreetBurnaby, British ColumbiaV5G 4L7Tel. (604) 436 3014 Fax. (604) 436 3752

Stantec

DATE

DRAWN BY

FIGURE NO.

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DATUM CHECKED BY

Source: BC TRIM Topographic Database 08-NOV-12 11/8/

2012

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Kelowna

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Kamloops

Vancouver

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Project Site

LNG CANADA REGIONAL MAPSUMMARY OF THE PROJECT DESCRIPTION

SW

Douglas Channel(Kitimat Arm)

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Proposed Marine Terminal

LN G CAN ADAKITIMAT, BRITISH COLUMBIA 3-2

N AD 83

UTM9 SHS4370 Do m inio n StreetBurna b y, British Co lum b iaV5G 4L7Tel. (604) 436 3014 Fa x. (604) 436 3752

Sta ntec

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ZONING MAP

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SUMMARY OF THE PROJECT DESCRIPTION

SUMMARY OF THE PROJECT DESCRIPTION

Section 4: Federal Involvement

March 21, 2013

S-16

4 FEDERAL INVOLVEMENT

No federal financial support for the Project is proposed or anticipated, and no federal lands will be used

for carrying out the Project. Anticipated supporting federal permitting requirements for the Project would

be governed by DFO (Fisheries Act Authorization), Transport Canada (Navigable Waters Protection Act

or Navigation Protection Act Approval), and Environment Canada (Disposal at Sea Permit). LNG Canada

also expects to pursue the federal government led Technical Review Process of Marine Terminal

Systems and Transshipment (better known as “TERMPOL”) concurrently with the pursuit of regulatory

permitting.

SUMMARY OF THE PROJECT DESCRIPTION

Section 5: Environmental Effects

March 21, 2013

S-17

5 ENVIRONMENTAL EFFECTS

5.1 Environmental Setting

The “Kitimat area” (including the District of Kitimat and Kitamaat Village) is located at the head of Kitimat

Arm at the mouth of the Kitimat River. The Kitimat area is located between two parallel mountain

belts, the St. Elias-Insular Mountains and the Coast-Cascade Mountains. The Douglas Channel, which

lies immediately south of Kitimat Arm, and Kitimat Arm together form one of BC’s largest fjords and

provides a deep water, sheltered harbour approximately 140 km from the open ocean. The Kitimat River

valley is more than 5 km wide and extends north toward Terrace. The following sections provide an

overview of the environmental setting of the Kitimat Area as shown in Figure 5-1.

5.1.1 Climate and Air Quality

The Kitimat area is influenced by Pacific air streams that result in mild winters and summers, with small

seasonal temperature differences. Temperatures hover around freezing in winter and seldom exceed 30°C

in summer. Mean annual precipitation in the Kitimat area ranges from 2,200 to 2,400 millimetres (mm).

Daily precipitation maximums generally occur in October and December and are in the range of 129 to 145

mm. The average annual wind speed reported at the Kitimat townsite climate station is 18 km/h. The

windiest month is March with average wind speeds of 20 km/h. The prevailing winds are from the south

or southwest in summer and from the northwest in winter (Environment Canada 2011).

Air quality in the Kitimat area has been influenced by the existing or former industrial facilities for many

years but with the prevailing winds, air quality is generally very good. Due to the industrial history of

Kitimat, local air quality and meteorological data have been (for more than 20 years) and continue to be

extensively monitored. There are currently four active monitoring stations in or near the Kitimat townsite

and Kitamaat Village. At one location near the RTA site, SO2, H2S, NOx, PM10, PM2.5, and ozone (O3) are

monitored on a continuous basis.

"

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Terrace

Lakelse Lake

Kitimat

Loretta Is.

HawkesburyIsland

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PittIsland

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StephensIsland

McCauleyIsland

BanksIsland

TrutchIsland

DewdneyIs.

Campania Is.

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FinIs.

AristazabalIsland

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Is.

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SmithIsland

PrescottIs.

MelvilleIsland

DigbyIs.

Prince Rupert

Kitkatla

Klemtu

FarrantIs.

GribbellIsland

Maitland Is.

RennisonIs.

Beauchemin Channel

LaredoSound

Laredo Channel

Estevan Sound

Squally Channel

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NepeanSound

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Project Site

LNG CANADAKITIMAT, BRITISH COLUMBIA 5-1

NAD 83

UTM9 SHS4370 Dominion StreetBurnaby, British ColumbiaV5G 4L7Tel. (604) 436 3014 Fax. (604) 436 3752

Stantec

SWDATE

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Source: BC TRIM Topographic Database

REGIONAL ENVIRONMENTAL SETTING

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0 10 20 30 40 50Kilometres

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SUMMARY OF THE PROJECT DESCRIPTION

SUMMARY OF THE PROJECT DESCRIPTION

Section 5: Environmental Effects

March 21, 2013

S-19

5.1.2 Aquatic Resources

The Kitimat River and its tributaries support regionally important populations of salmon, trout, and char.

All five species of Pacific salmon are found in the river and its tributaries (Chinook, chum, coho, pink, and

sockeye). Dolly Varden char, bull trout, cutthroat trout, and rainbow/steelhead trout are also found in the

river and its tributaries. Anderson Creek and Moore Creek are two of the larger creeks flowing into the

lower Kitimat River in the vicinity of the LNG facility site. Anderson Creek supports chum salmon, pink

salmon, cutthroat trout, and Dolly Varden char. Moore Creek supports coho salmon and pink salmon.

Dolly Varden and cutthroat trout are of special conservation concern and are provincially blue-listed.

Eulachon also use the Kitimat River, but in the early 1990s there was a significant decline in the local

population and it has yet to recover. The population decline has been attributed to effluent outfalls installed

in the Kitimat River during the 1970s and 1980s (Derksen, 1981, Moody, 2008). Eulachon are currently

listed as endangered by the Committee on the Status of Endangered Wildlife in Canada (COSEWIC) and

are provincially blue-listed (BC Conservation Data Centre (BC CDC), 2012a).

Douglas Channel, Kitimat Arm, and the Kitimat River estuary support a broad diversity of marine aquatic

resources. Notable fish species with recreational and commercial value in Kitimat Arm include Pacific

herring; coho, chum, pink, sockeye and Chinook salmon; sea-run Dolly Varden char; English sole; halibut;

and Dungeness crab. Marine mammals that occur in Douglas Channel include killer whales (resident and

Bigg’s), humpback whales, Steller sea lion, Dall’s porpoise, harbour porpoise, and harbour seal. Under

the Species at Risk Act (SARA), northern resident killer whales and humpback whales are listed as

threatened and Steller sea lions and harbour porpoises are listed as special concern.

5.1.3 Vegetation Resources

The area surrounding the lower Kitimat River is in the Sub-montane variant of the Coastal Western

Hemlock (CWH) Very Wet Maritime Subzone (vm1). Forests in this area are typically comprised of

Western hemlock, Amabilis fir, western red cedar, Sitka spruce and yellow cedar. Western hemlock and

Amabilis fir dominate the canopy of late seral stands. Sitka spruce is common, but seldom dominant, and

occurs mainly on alluvial soils. Deciduous trees are uncommon in mature forest communities but are

found on floodplains, fluvial terraces and landslide scars where disturbances expose mineral soil, leading

to red alder and black cottonwood being common.

Within the wetter microhabitats of the lower portions of the Kitimat Valley, vegetation cover ranges from

herbaceous to pole/sapling and young forests. There is a predominance of shrubby habitat in the

lowlands where common understory species include devil’s club, salmonberry, lady fern, oak fern, skunk

cabbage, and sphagnum mosses. Non-forested fens, marshes and bogs are the most common wetland

type and occur in scattered small depressions and occasionally on slopes. Some of these sites support

unique plant communities that contain fern-leaved goldthread, tufted clubrush, beaked sedge and sphagnum

mosses.

SUMMARY OF THE PROJECT DESCRIPTION

Section 5: Environmental Effects

March 21, 2013

S-20

The BC CDC (2012b) identifies three plants of special conservation status documented in the lower

Kitimat River valley:

1. Bog adder’s-mouth orchid (Blue-listed);

2. White adder’s-mouth orchid (Blue-listed); and

3. Cryptic paw lichen (Blue-listed and Special Concern on Schedule 1 of SARA).

In addition, the BC CDC (2012a) reports 11 provincially-listed plant communities that potentially to occur

in the Kitimat Valley lowlands. Three red-listed communities occur in the CWHvm1 and Kalum Forest

District:

4. Dune wildrye—beach pea community, Ecological Unit CWHvm1/00;

5. Sitka spruce/Salmonberry, Ecological Unit CWHvm1/09; and

6. Sitka sedge/peat moss wetland fen, Wetland community Wf51.

Eight blue-listed communities occur in the CWHvm1 and Kalum Forest District:

7. Western hemlock—western redcedar/Salal very wet maritime, Ecological unit CWHvm1/03;

8. Western redcedar—western hemlock/sword fern, Ecological unit CWHvm1/04;

9. Western hemlock—amabilis fir/Deer fern, Ecological Unit CWHvm1/06;

10. Amabilis fir—Sitka spruce/Devil's club, Ecological Unit CWHvm1/08;

11. Black cottonwood—red alder/Salmonberry, Ecological Unit CWHvm1/10;

12. Western redcedar—Sitka spruce/skunk cabbage, Ecological unit CWHvm1/14;

13. Labrador tea/western bog-laurel bog/ peat mosses, Wetland community Wb50; and

14. Sitka willow/Sitka sedge swamp, Wetland community Ws06.

5.1.4 Wildlife Resources

The Kitimat River estuary supports a number of large and small mammal species, including black-tailed

deer, moose, grizzly bear, black bear, American marten, and snowshoe hare. Amphibian species

occurring in the estuary include northwestern salamander and western toad. The estuary also supports

migrating and resident species of songbirds, raptors, waterfowl, and sea birds. It is an important staging

and over-wintering site for birds during migration, and supports large seasonal concentrations of

shorebirds and waterfowl. There are sixteen potentially occurring species of conservation concern in the

Kalum Forest District (BC CDC 2012a), including fourteen species with red or blue list designations in BC,

and eleven species listed on Schedule 1 of the Species at Risk Act (SARA). It is expected that only a

fraction of these species occur in the vicinity of the Project due to the availability of specific habitat

requirements within the estuary. Recent studies indicate that species of conservation concern occurring in

the Kitimat River estuary include western toad (BC blue list; SARA Special Concern), marbled murrelet

(BC blue list; SARA Threatened), tundra swan (BC blue list), western grebe (BC red list; SARA

Threatened), pelagic cormorant (BC red list), double-crested cormorant (BC blue list), great blue heron

SUMMARY OF THE PROJECT DESCRIPTION

Section 5: Environmental Effects

March 21, 2013

S-21

fannini subspecies (BC blue list; SARA Special Concern), short-billed dowitcher (BC blue list), red-necked

phalarope (BC blue list), California gull (BC blue list), and grizzly bear (BC blue list).

The north coast of BC supports large and diverse populations of seabirds. Many species breed at

established nesting sites on islets and shores from Haida Gwaii to the mainland coast. Within the

confined channels of the shipping route including Douglas Channel, Principe Sound and associated

sounds, bays and crossing areas, there are potentially 11 seasonally occurring provincially red-listed and

23 blue-listed marine bird species.

5.2 Potential Project Effects

Under CEAA 2012, the Project Description must address the potential for changes to fish and fish habitat,

aquatic species, and migratory birds, as well as potential for environmental changes on federal lands, and

effects of environmental changes on Aboriginal peoples. These are summarized as follows:

Fish and Fish Habitat. Changes to fish and fish habitat, as defined in the Fisheries Act, may

include Permanent Alteration and Destruction (“PAD”) of habitat through interactions between the

Project footprint and aquatic or riparian areas of the Kitimat River estuary side channels and

tributaries;

Aquatic Species. Changes to aquatic species, as defined in the SARA, may include changes to

the behaviour of aquatic species due to vessel activity and potential injury or mortality from ship

strikes;

Migratory Birds. Changes to migratory birds, as defined in the Migratory Birds Convention Act,

1994, could occur through clearing of vegetation during construction, leading to loss of habitat or

mortality;

Federal and Other Lands. As a result of carrying out the Project, no environmental effects are

anticipated on federal lands, in a province other than the province in which the project is

proposed to be carried out, or outside of Canada; and

Effects of Environmental Changes on Aboriginal Peoples. Potential effects of environmental

changes on Aboriginal peoples could result in human health effects, socioeconomic effects,

effects on traditional and cultural activities, and effects on heritage resources. Examples of

potential effects to Aboriginal peoples are:

human health effects such as:

o degradation of local air quality through combustion of fossil fuels, acid gas

incineration, and potential flaring, with the potential to contribute to inhalation-

based health effects; and

o sensory disturbance and or degradation due to exposure to noise.

socio-economic effects such as:

o economic benefits for Aboriginal peoples, including employment and contracting

opportunities;

SUMMARY OF THE PROJECT DESCRIPTION

Section 5: Environmental Effects

March 21, 2013

S-22

o sensory disturbances such as noise affecting traditional lifestyle values; and

o potential effects from increased traffic along local roads and Highway 37 and

shipping activity.

effects to heritage resources through:

o damage to or destruction of terrestrial archaeological or heritage sites as a result

of ground disturbing activities associated with site preparation.

change to traditional harvesting activities through loss of vegetation resources from:

o loss of community diversity (e.g. old forest, listed ecosystems, wetlands) through

site clearing; and

o loss of species diversity (e.g. listed species, traditional use plants) through site

clearing.

change to traditional harvesting activities through effects to wildlife resources including:

o change in habitat availability from site clearing that may result in either direct

habitat loss, habitat isolation or habitat fragmentation;

o reduced habitat use caused by sensory disturbance during construction and

operations;

o increased direct wildlife mortality as a result of interactions with Project activities,

including site clearing and increased traffic; and

o loss of wildlife movement corridors.

change to traditional harvesting of aquatic resources through:

o change in marine mammal and fish behaviour due to underwater noise;

o change in risk of mortality to marine mammals due to risk of vessel strikes; and

o change in habitat availability through PAD of habitat through interactions between

the Project footprint and aquatic or riparian areas of the Kitimat River estuary side

channels and tributaries.

change to traditional activities along the marine access route through:

o increasing amount of larger marine traffic affecting local vessels;

o increasing noise disturbance due to increasing marine traffic; and

o changes to air quality through marine traffic emissions.

effects to historical, archaeological, paleontological or architectural resources through:

o loss or modification of culturally modified trees (CMT), shell middens, lithic

scatter, and petroforms (e.g. canoe skids, fish traps, and clam gardens); and

o loss of access to or changes to asserted traditional use areas.

Potential for environmental effects to Aboriginal people will be assessed through ongoing engagement

and traditional use studies. In the event that there are potential environmental effects that cannot be

avoided, mitigation options will be developed through ongoing engagement with First Nations, and the

potential environmental effects will be minimized to the greatest extent possible.

SUMMARY OF THE PROJECT DESCRIPTION

Section 6: Aboriginal Groups

March 21, 2013

S-23

6 ABORIGINAL GROUPS

There are eight First Nations and one Aboriginal Group that may be affected by the Project and associated

marine shipping or land transportation activities:

Many of the First Nations are members of the Coastal First Nations organization/Great Bear Initiative

(CFN organization). The Project lies within the asserted traditional territory of the Haisla Nation as shown

in Figure 6-1. As noted, the LNG facility site will be located on private, fee-simple lands adjacent to the

RTA site. These lands are expected to have had traditional use in the past. However, given the past

privatization of this land and long-standing industrial use, any current or recent use of these lands for

traditional purposes is not expected. LNG Canada also recognizes that the Gitga’at First Nation and

Gitxaala Nation, as well as others, may have an interest in the Project, particularly from a marine

transportation or construction-related logistics perspective. It is expected that some or all of the marine

access route has been and likely continues to be used for traditional or cultural purposes. LNG Canada

has been engaging directly with First Nations or through the CFN organization to provide preliminary

information on the project and identify potential interests of First Nations in the region.

Preliminary discussions with First Nations have focused on providing basic information about the LNG

industry and the Project as well as the negotiation of protocol agreements with Haisla, Gitga’at and

Gitxaala Nations. Engagement and consultation activities will continue, following the consultation plan

developed to fulfill provincial and federal consultation and engagement requirements.

During the preparation of this Project Description, the following groups were engaged:

Haisla Nation Gitga’at First Nation

CFN organization Gitxaala Nation

Haisla Lax Kw’alaams Haida

Gitxaala Metlakatla Kitsumkalum

Gitga’at Kitselas Métis Nation of BC

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SUMMARY OF THE PROJECT DESCRIPTION

_̂ T riple Isla nd Pilot Sta tion

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Approa ch RoutePotentia l Pilot Boa rding Z oneGitga 'a t T ra ditiona l T erritory*Gitga ’a t Ma rine U se Pla nning Area **Gitxa a la T ra ditiona l T erritory***Ha isla T ra ditiona l T erritory****W a tercourseW a ter Body

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Source: * Government of British Columbia (2006a )**Gitga ’a t First Na tion (2011)*** Government of British Columbia (2006c)**** Government of British Columbia (2006b)Publica tion of this ma p does not imply tha t First Na tions,the Province of British Columbia , or the Government of Ca na da ha ve a greedto the bounda ries shown.

SUMMARY OF THE PROJECT DESCRIPTION

Section 6: Aboriginal Groups

March 21, 2013

S-25

Through the engagement process to date, First Nations have identified a number of concerns including:

Facility:

air quality and GHG’s;

project interactions with fisheries (in Douglas Channel, Kitimat Arm and Kitimat River), including

effects of shipping and dredging in the harbour area;

site safety setback requirements;

port design and layout;

cultural heritage; and

economic opportunities.

Shipping

First Nations located along the marine access route have raised concerns related to proposed increase in

shipping activity. Areas of interest and/or concern include:

potential impacts on:

o traditional use and culture;

o traditional governance;

o food supply and subsistence lifestyle;

o marine mammals, abalone, etc.; and

o overall ecosystem.

current economic use (forestry, fishing, aquaculture & tourism);

potential for shoreline wake impacts (e.g. seaweed harvesting areas, historic cultural sites, etc.;

air quality;

ship emissions and waste disposal;

introduction of foreign species;

potential for marine accidents and/or fuel spills;

marine emergency response;

noise; and

opportunities for local benefits - financial, renewable power, community infrastructure, jobs, new

businesses (particularly in the area of marine services such as tugs, towing, repairs, etc).

SUMMARY OF THE PROJECT DESCRIPTION

Section 6: Aboriginal Groups

March 21, 2013

S-26

LNG Canada will continue to work with First Nations throughout the regulatory process to undertake

baseline data collection, complete assessments, better understand community interests and concerns,

develop mitigation strategies, and identify opportunities to ensure local benefits associated with project.

SUMMARY OF THE PROJECT DESCRIPTION

Section 7: Consultation with the Public and Other Parties

March 21, 2013

S-27

7 CONSULTATION WITH THE PUBLIC AND OTHER PARTIES

Engagement with government and regulatory agencies began in 2011, and has included ongoing

engagement and discussion with municipal, provincial, and federal regulators or representatives, as well

as some key environmental groups. To date, discussions with the local government and the community

have been fairly high level and focused on building understanding of LNG and introducing the LNG

Canada project. From a stakeholder and community perspective, the majority of inquires and questions

have focused on jobs and economic opportunities. While the focus has been primarily economic, safety

and environmental performance have also been areas of interest at the local level (e.g. Kitimat). An

engagement and consultation plan is being developed to address regulatory requirements. During

preparation of this Project Description, the following groups were consulted:

Fisheries and Oceans Canada Transport Canada

Canadian Environmental Assessment

Agency

BC Ministry of Forests, Lands, and

Natural Resource Operations

BC Ministry of Aboriginal Relations and

Reconciliation

City Administrators in Kitimat and

Terrace

BC Environmental Assessment Office BC Ministry of Energy and Mines

BC Oil and Gas Commission Mayor of Kitimat and Town Council

Rio Tinto Alcan Mayor of Terrace and Town Council

Pembina Institute Tides Canada

Terrace Economic Development

Association Kitimat Chamber of Commerce

Kitimat Terrace Industrial Development

Society Regional District of Kitimat-Stikine

LNG Canada will continue to work with local communities and other stakeholders throughout the

regulatory process to undertake baseline data collection, complete assessments, better understand

community interests and concerns, develop mitigation strategies, and identify opportunities to maximize

local benefits associated with project.