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WHEREAS the Government of Canada is committed to improving the federal environmental assessment (EA) and regulatory review processes for major resource projects to enable a more effective assessment and mitigation of potential environmental effects, while protecting the health and safety of Canadians and promoting innovation and competitiveness within the Canadian resource industry sectors;
AND WHEREAS the Government of Canada is committed to undertaking a process of early, effective and meaningful engagement and consultation with Canada’s Aboriginal peoples concerning contemplated Crown conduct with respect to, among other things, major resource projects that may adversely affect established or potential Aboriginal and treaty rights under Section 35 of the Constitution Act, 1982;
AND WHEREAS the Government of Canada has created the Major Projects Management Office (MPMO) for the purpose of overseeing and tracking the federal review and Aboriginal engagement and consultation for major resource projects;
AND WHEREAS Terrane Metals Corporation (the Proponent) has submitted a Project Description in support of its proposal to develop a gold-copper mine 155 kilometres northwest of Prince George, British Columbia;
AND WHEREAS Fisheries and Oceans Canada (DFO) and Natural Resources Canada (NRCan) may have regulatory and statutory duties in relation to the development proposal;
AND WHEREAS the Minister of the Environment (the Minister) has determined that the EA in relation to the development proposal should proceed by way of a comprehensive study pursuant to the Canadian Environmental Assessment Act (CEAA);
AND WHEREAS nothing in this Project Agreement (Agreement) fetters the powers, statutory authorities and functions of federal departments / agencies and their respective Ministers;
NOW THEREFORE the signatories (Parties) to this Agreement commit to work together to facilitate an effective, accountable, transparent, timely and predictable federal review in relation to the proposed project and to contribute to the discharging of any duty to consult with Aboriginal groups.
As the EA of this Project commenced prior to the commencement of the MPMO Initiative, this Agreement describes the main remaining activities of the federal review process and outlines the key roles and responsibilities of the Parties. For further clarity, the Agreement shall be read together with the Annexes, which form part of this Agreement. The federal review includes EA, regulatory review(s) and Aboriginal engagement and consultation activities.
The development proposal consists of a large open pit gold-copper mine in British Columbia. The proposed project would have a production capacity of 60,000 tonnes per day of ore and produce 88 million pounds of copper and 217,000 ounces of gold per year over the 15.3 year mine life. In addition to the mine, associated tailings and waste rock areas, the proposed project would include the development of an onsite mill and supporting infrastructure, a 92-kilometre long power transmission line, an explosives factory and magazine, and upgrade of the 29-kilometres of access road connecting the mine site and Highway 27. The proposed project would require the listing of King Richards Creek and Alpine Creek as a Tailings Impoundment Area under Schedule 2 of the Metal Mining Effluent Regulations (Fisheries Act).
The Project for the purposes of the federal review may be different from the development proposal, as described in section 4.0.
Based on the information provided by the Proponent, the following federal departments and agencies have identified an interest in the Project, and will participate in the federal review as follows:
DFO has regulatory and statutory responsibilities under the Fisheries Act and,pursuant to the CEAA, is a Responsible Authority (RA). DFO may be in possession of specialist or expert information or knowledge with respect to the Project and, on request, shall make available that information or knowledge to RAs;
NRCan has regulatory and statutory responsibilities under the Explosives Act and,pursuant to the CEAA, is an RA. NRCan may be in possession of specialist or expert information or knowledge with respect to the Project and, on request, shall make available that information or knowledge to RAs;
Environment Canada (EC) is a Federal Authority (FA) pursuant to CEAA and is in possession of specialist or expert information with respect to the Project (expert FA), and, upon request, shall make available that information or knowledge to the RAs. EC also has responsibilities to amend the Metal Mining Effluent Regulations under the Fisheries Act;
Health Canada (HC) is an FA pursuant to CEAA and may be in possession of specialist or expert information with respect to the Project (expert FAs), and, upon request, shall make available that information or knowledge to the RAs;
Aboriginal Affairs and Northern Development Canada (INAC) also has advisory responsibilities to support the Government of Canada’s Aboriginal engagement and consultation activities in relation to the Project;
The CEA Agency has administrative and advisory responsibilities pursuant to the CEAA in support of the EA. The CEA Agency will act as the Federal Environmental Assessment Coordinator (FEAC) for the EA in relation to the Project; and,
The MPMO has administrative and advisory responsibilities under the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects and the associated Memorandum of Understanding (MOU). The MPMO will provide oversight and advice throughout the entire federal review in relation to the Project to ensure adherence to the service standards and roles and responsibilities of all Parties.
For further information regarding the roles and responsibilities of the Parties, please see applicable Annexes.
The Project was subject to a cooperative EA with the British Columbia Environmental Assessment Office (BC EAO) pursuant to the Canada-British Columbia Agreement for Environmental Assessment Cooperation (2004). The BC EAO completed and made its EA decision on March 18, 2009.
As proposed by the RAs, the scope of the Project includes:
The RAs will be responsible for each component of the scope that meets their own areas of federal responsibility. The RAs have determined that the type of EA required is a comprehensive study.
Annex I shows a Gantt chart of the federal review process. Annex II shows the key milestones and service standards for the EA as well as Aboriginal engagement and consultation.
Through the EA process, RAs will confirm any regulatory decisions required in relation to the Project. If no regulatory decisions are required for a department or agency, it will end its participation in the EA as an RA, but may, upon request from an RA, continue to participate as an expert FA should it be in possession of specialist or expert information or knowledge with respect to the Project. Similarly, expert FAs will continue to review information provided by the Proponent, as it becomes available and as the project evolves and changes, in order to confirm whether a regulatory approval may be required based on this updated and/or new information. In this case, an expert FA may become an RA and continue its participation in the EA on that basis.
The Parties are committed to a “Whole of Government” approach to Aboriginal engagement and consultation in the context of major resource projects to ensure that Aboriginal groups are sufficiently consulted, and where appropriate accommodated, when the Government of Canada contemplates actions that may adversely affect established or potential Aboriginal and treaty rights. The Parties will apply a coordinated approach to seeking and considering comments from Aboriginal groups on the Environmental Impact Statement and Comprehensive Study Report and will work together toward supporting consultation that is integrated with the regulatory review processes.
The proposed Aboriginal engagement and consultation roles and responsibilities are identified in Annex III.
The target timelines for the federal review are detailed in the Gantt chart in Annex I, and are as follows, starting from the date of the Minister of the Environment’s decision on whether the project should continues as a comprehensive study or be referred to a review panel (EA Track Decision):
The above timelines have been established on the basis of a number of assumptions, such as activities of participants to the review that are not signatories to this Agreement. Should events unfold in a manner that is different from what has been assumed, the timelines will necessarily be different.
The MPMO Tracker will provide for transparent and publicly accessible monitoring of the progress of the federal review.
The RAs will work with FAs, and the Proponent, to ensure that mitigation measures related to their areas of responsibility that were identified through the EA, and any conditions attached to licences and approvals, are effectively implemented.
For those mitigation strategies within federal jurisdiction that were identified through the EA but that are not related to the RAs’ regulatory responsibilities, the FAs will provide assistance to ensure the mitigation and follow-up strategies related to areas within their mandate are adhered to and effectively implemented by the Proponent.
The milestones, timelines and service standards set out in this Agreement, subject to any amendments, will provide the basis against which the MPMO will monitor the progress of the federal review and report on this progress in the MPMO Tracker.
The following are examples of situations where the MPMO may pause the timelines of the federal review:
The Parties will use their best efforts to resolve any differences of opinion in the interpretation or application of this Agreement in an effective and timely manner.
Issues relating to the federal review for the Project will be resolved through direct discussions and collaboration between the involved Parties, supported by the MPMO.
Should issues remain outstanding, they will be referred to the appropriate senior level committee established through the MPMO Initiative.
The Parties will participate in an informal evaluation of the effectiveness of the federal review in relation to the Project within 90 days of the completion of the regulatory review. The level of effort and format of the evaluation will be appropriate to the scale of the issues encountered.
The Parties may recommend to the MPMO whether a change to the federal review or to the project warrants an amendment to the Agreement. Where there is agreement that an amendment is warranted, and where such amendment is considered significant, the MPMO, on behalf of the Parties, will provide the proposed amendment to the Major Projects Deputy Ministers for consideration.
Unless otherwise determined by the MPMO in collaboration with the Parties, amendment of the Agreement shall not cause the federal review to stop with respect to any Agreement-related activities that might be ongoing at the time when the need for amendment is identified.
The Parties hereto have signed the Project Agreement, in counterpart, on the dates indicated below.
| Original Signed by Cassie Doyle Deputy Minister Natural Resources Canada |
October 02, 2009 Date |
| Original Signed by Peter Sylvester President Canadian Environmental Assessment Agency |
July 24, 2009 Date |
| Original Signed by Claire Dansereau Deputy Minister Fisheries and Oceans Canada |
October 07, 2009 Date |
| Original Signed by Ian Shugart Deputy Minister Environment Canada |
September 21, 2009 Date |
| Original Signed by Michael Wernick Deputy Minister Indian and Northern Affairs |
August 04, 2009 Date |
Annex I – Gantt Chart - Target Timelines for the Federal Review of the Project
Annex III – Aboriginal Engagement and Consultation Approach and Roles and Responsibilities
Annex V – Natural Resources Canada: Roles, Responsibilities, Key Milestones and Service Standards
Annex VI – Environment Canada: Roles, Responsibilities, Key Milestones and Service Standards
Annex VII – Other Departments and Agencies: Roles and Responsibilities
| Description/Activity | Lead | Support As Needed | Service Standard, or Completion Date |
|---|---|---|---|
| Post Notice of Minister of the Environment’s Environmental Assessment (EA) Track Decision | CEA Agency | May 15, 2009 (Completed) | |
| Post the Final Scope on the Canadian Environmental Assessment Registry (CEAR) | CEA Agency | May 15, 2009 (Completed) | |
| Commencement of Aboriginal engagement on EA | DFO | CEA Agency, NRCan, EC, HC | Within one week of Minister’s Track decision being posted |
| Award Participant Funding | CEA Agency | May 21, 2009 (Completed) | |
| Public comment period on EA (Environmental Impact Statement) | DFO | CEA Agency, EC, NRCan, HC | May 25 to June 23, 2009 (Completed) |
| Approve and submit Comprehensive Study Report (CSR) to the Minister of the Environment | DFO, NRCan, | EC, HC, CEA Agency, Proponent | September 30, 2009 (Completed) |
| Provide translated copy of CSR | Proponent | October 1, 2009 | |
| Release CSR for 30 day public comment period | CEA Agency | DFO, NRCan, EC, HC | Within 1 day of receipt of the translated CSR |
| Continue Aboriginal engagement | DFO, NRCan, CEA Agency, EC | HC | During the public comment period on the CSR |
| Post notice of Minister of the Environment’s EA Decision Statement on the CEAR, including summary of Aboriginal and public comment on the CSR | Minister of the Environment | CEA Agency | Within 3 weeks of close of public comment period on CSR |
| Post Notice of EA Decision(s) on the CEAR | DFO, NRCan | CEA Agency | Within 1 week of the Minister of the Environment’s EA Decision Statement being posted |
| Commencement of Aboriginal Community Consultation on Course of Action Decision(s) | DFO, NRCan | CEA Agency | Commencing within 1 week of the Minister of the Environment’s EA Decision Statement being posted |
The Government of Canada consults with Aboriginal people for reasons of good governance, sound policy development and decision-making as well as for legal reasons. Canada has statutory, contractual and common law obligations to consult with Aboriginal groups. The common law duty to consult with Aboriginal groups applies when the Crown contemplates actions that may adversely affect established or potential Aboriginal and treaty rights. These rights are recognized and affirmed in Section 35 of the Constitution Act, 1982.
The Government of Canada will take a “Whole of Government” approach to Aboriginal consultation in the context of major resource projects to ensure that Aboriginal groups are sufficiently consulted, and where appropriate accommodated, when it contemplates actions that may adversely affect established or potential Aboriginal and treaty rights. This approach is mandated by both the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects and the associated Memorandum of Understanding(MOU) (June, 2007). The Directive states that Parties will work together towards a coordinated approach for Aboriginal consultation that is integrated with the EA, to the extent possible. The approach for federal consultation of Aboriginal groups for major resource projects was created in accordance with Aboriginal Consultation and Accommodation: Interim Guidelines for Federal Officials to Fulfill the Legal Duty to Consult (INAC/Department of Justice; February 2008).
The “Whole of Government” approach for Aboriginal engagement and consultation activities will be implemented throughout the remaining steps in the EA and subsequent regulatory review processes as the federal review of the Project commenced prior to the commencement of the MPMO Initiative. As such, the Federal Crown Consultation Process will differ from that of other major resource projects subject to the MPMO Initiative.
Where accommodation is required, the Crown will monitor and determine whether mitigation measures identified through either the environmental assessment or subsequent regulatory processes reasonably address concerns regarding potential adverse impacts on established or potential Aboriginal and treaty rights. The Crown may also examine the role of third parties in addressing adverse impacts on established or potential Aboriginal and treaty rights. The Crown will work with Aboriginal groups and attempt to identify options or solutions that balance the interests of those Aboriginal groups with other societal interests.
CEA Agency will:
Fisheries and Oceans Canada (DFO) will:
Natural Resources Canada (NRCan) will:
Environment Canada (EC) will:
Federal Authorities and Expert Departments will:
The Major Projects Management Office will:
The Department of Justice (DOJ) and INAC will:
Note: The following milestones represent the key activities associated with the regulatory process for the Project and are not intended to reflect the entire work plan schedule associated with this Project. Furthermore, these milestones may need to be adjusted as additional information is made available.
| MILESTONE | ACTIVITIES/DESCRIPTION | LEAD | SERVICE STANDARD |
|---|---|---|---|
| Receipt from Proponent of an application for a Subsection 35(2) Fisheries Act authorization | DFO receives application from the Proponent for authorization of impacts to fish and fish habitat under section 32 and subsection 35(2) of the Fisheries Act complete with adequate plans, maps, reports and data to support the review. This may include a Fish Habitat Compensation Plan to support the Fisheries Act review and the compensation plan for the Tailings Impoundment Area as required under section 27.1 of the Metal Mining Effluent Regulations. | Proponent | Completed. |
| DFO response to Proponent regarding impacts to fish and fish habitat and the Fish Habitat Compensation Plan | DFO reviews the proposed Fish Habitat Compensation Plan and associated financial security, if applicable, for adequacy to support the Fisheries Act review. DFO requests further information, if required, to proceed with the review of the application. | DFO | Completed. |
| Receipt of additional information from Proponent | DFO receives additional information from Proponent | Proponent | Dependent on timing of the submission of additional information by the Proponent. |
| Decision by DFO regarding issuance of Subsection 35(2) Fisheries Act authorization | If appropriate, DFO issues a Fisheries Act authorization to Proponent for impacts to fish and fish habitat. | DFO | DFO issues an authorization contingent on EA Course of Action Decision under paragraph 37(1)(a) of CEAA. The Course of Action decision must be consistent with the Minister of the Environment’s EA Decision Statement.DFO issues the authorization 90 calendar days after receipt of an acceptable Fish Habitat Compensation Plan (including financial security) and the discharge of any legal Aboriginal consultation obligations associated with the authorization(s). Issuance of the authorization will also consider the Proponent’s timing needs for the authorization in that, should the authorization not be required until much later than the timeline above, DFO will issue it when it is appropriate. Issuance of the authorization may also be dependent on the timing of Governor in Council’s decision regarding the listing of the headwaters of King Richards Creek and Alpine Creek as a TIA on Schedule 2 of the Metal Mining Effluent Regulations. |
Note: The following milestones represent the key activities associated with the regulatory process for the Project and are not intended to reflect the entire work plan schedule associated with this Project. Furthermore, these milestones may need to be adjusted as additional information is made available.
| MILESTONE | ACTIVITIES/DESCRIPTION | LEAD | SERVICE STANDARD |
|---|---|---|---|
| Submission of project description & information on explosives factory and magazine to NRCan | NRCan liaises with Project Proponent regarding explosives factories and magazines | Proponent | Ongoing |
| Determination whether licence under Explosives Act s.s. 7(1)(a) is required | NRCan reviews Proponent’s answers the explosives questionnaire | NRCan | Completed |
| Submission of application for an Explosives Act Licence | The Supplier compiles information and submits an application to NRCan for a Licence under Explosives Act s.s. 7(1)(a) for an explosives factory or magazine. | Explosives Supplier selected by Proponent | Start timing. N.B.: the timing of receiving the application may not necessarily be aligned with the EA process. |
| Review of the Application: | NRCan reviews the proponent’s application to ensure that all of the required information is included. | NRCan | If the application is complete, requires 30 days to review and process application and issue the Explosives Act Licence.If application is incomp-lete, federal clock stops. |
| Request Clarification or Additional Information | If there are aspects of the application that are unclear, or if additional information is required, NRCan will request clarification or additional information from the Explosives supplier | NRCan | Within 15 days of receipt of application. |
| Re-submission of a complete Application for an Explosives Act Licence | Explosives supplier re-submits a completed application for an Explosives Act Licence | Supplier | |
| Review Supplier’s revised Application | NRCan continues its review of the application which includes clarifications or additional information requested | NRCan | Within 30 days from receipt of the revised application |
| Issuance of Explosives Act s.s. 7(1)(a) Licence | Once a determination under the CEAA has been rendered and a Notice of Decision has been posted on the CEA Agency’s Registry, NRCan can issue a Licence under Explosives Act s.s.7(1)(a) for an explosives factory or magazine. Licences may include Terms and Conditions, as appropriate, relating to mitigation measures or follow up requirements identified during the EA review phase of the Project. | NRCan | Within 30 days if no additional clarification or information was required in the initial application; OrWithin 45 days if additional clarification or information was requested. |
| ACTIVITY | LEAD | TARGET TIMELINE |
|---|---|---|
| Submission of letter to EC from DFO requesting amendment to MMER schedule 2 | DFO | Less than one month after Course of Action decisions pursuant to the CEAA, s. 37, posted on the CEARIS |
| Development of regulatory package | EC | Less than 2 months after receipt of DFO letter |
| Publication in Canada Gazette I | EC | Less than 2 months from development of regulatory package |
| Publication in Canada Gazette II | EC | 3-4 months after publication in Canada Gazette I |
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ROLES / RESPONSIBILITIES |
|---|---|
Aboriginal Affairs and Northern Development Canada |
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Health Canada |
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Canadian Environmental Assessment Agency |
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Major Projects Management Office |
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