shand south extension project proposal

Shand South Extension Project Proposal

Submitted to: Saskatchewan Environment –

Environmental Assessment Branch

Prepared by: Prairie Mines and Royalty Ltd. and

Stantec Consulting Ltd.

January 2007

Blaine Renkas, Environmental Planner

Boundary Dam, Bienfait Mines P.O. Box 3000

Estevan, Sk, S4A 2W2 Phone: (306) 636-5252/Fax: (306) 634-7590

Cell: (306)421-3502 E-mail: [email protected]

Kim Hallard January 18, 2007 Project Manager Saskatchewan Environment Environmental Assessment Branch 486-3211 Albert Street Regina, SK, S4S 5W6 Dear Ms. Hallard: Please find attached for your consideration Prairie Mines and Royalty Ltd. (PMRL) project proposal to expand its Boundary Dam Mine and amend its existing Permit to Operate file #: S25010-50/BO/03/O to include 3237 ha of adjacent lands. PMRL has provided an additional 25 copies of the Project Proposal for distribution to the Review Committee. The Project Proposal is submitted to Saskatchewan Environment in accordance with the Saskatchewan Environmental Assessment Act and Saskatchewan Environmental and Protection Act. The proposal has been prepared with the aim of identifying the environmental concerns and subsequent mitigative measures for the amendment area and provides a broad view of what the expansion entails. PMRL has outlined the environmental studies required to facilitate the development of the project area, including those required for SaskWater approval and reclamation planning. PMRL has held coal rights for virtually all the proposed amendment area and a portion of the surface rights for the express purpose of mining for many years. In PMRL view, this area represents the next logical area for mine expansion and future development of a coal field. PMRL is prepared to cooperate fully with SE, SaskWater Corporation and the RM of Estevan throughout the approval process. We look forward to your early response in this matter. Thank you, Blaine Renkas Senior Environmental Planner Boundary Dam / Bienfait Mine Prairie Mines and Royalty Ltd.

Shand South Extension Project Proposal

Table of Contents

1.0 INTRODUCTION ................................................................................................................1.1 1.1 PROPOSAL DESCRIPTION ..............................................................................................1.1 1.2 THE PROPONENT.............................................................................................................1.1 1.3 PROJECT SETTING ..........................................................................................................1.2 1.4 PROJECT RATIONAL .......................................................................................................1.2

2.0 PROJECT DESCRIPTION .................................................................................................2.1 2.1 MINE DEVELOPMENT.......................................................................................................2.1

2.1.1 Mine Plan .............................................................................................................2.1 2.1.2 Infrastructure........................................................................................................2.1 2.1.3 Coal Loading and Hauling....................................................................................2.1 2.1.4 Equipment and Manpower ...................................................................................2.2

2.2 ENVIRONMENTAL PROTECTION PLANS.......................................................................2.2 2.2.1 Reclamation .........................................................................................................2.2 2.2.2 Surface Water Management ................................................................................2.4 2.2.3 Air Quality Management ......................................................................................2.4 2.2.4 Noise....................................................................................................................2.5

3.0 COAL RIGHTS AND SURFACE OWNERSHIP.................................................................3.1 3.1 COAL RIGHTS ...................................................................................................................3.1 3.2 SURFACE OWNERSHIP ...................................................................................................3.1

4.0 THE GEOGRAPHIC SETTING...........................................................................................4.1 4.1 INTRODUCTION ................................................................................................................4.1 4.2 BIOPHYSICAL OVERVIEW...............................................................................................4.1

4.2.1 Moist Mixed Grassland Ecoregion .......................................................................4.1 4.2.2 Land Systems ......................................................................................................4.2 4.2.3 Climate.................................................................................................................4.7 4.2.4 Soils .....................................................................................................................4.8 4.2.5 Wildlife .................................................................................................................4.8 4.2.6 Rare and Endangered Species............................................................................4.9 4.2.7 Surface Hydrology .............................................................................................4.10

4.3 GEOLOGY........................................................................................................................4.10 4.4 EXISTING HYDROGEOLOGIC ENVIRONMENT ............................................................4.11

4.4.1 Glacial Aquifers..................................................................................................4.11 4.4.2 Lignite Seam Aquifers........................................................................................4.12 4.4.3 Channel Sand Aquifers ......................................................................................4.12

4.5 HERITAGE RESOURCES................................................................................................4.13 4.6 SOCIOECONOMIC ENVIRONMENT ...............................................................................4.14

4.6.1 Population and Economic Characteristics .........................................................4.14

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SHAND SOUTH EXTENSION PROJECT PROPOSAL

4.6.2 Land Use............................................................................................................4.14

5.0 PUBLIC CONSULTATION .................................................................................................5.1

6.0 POTENTIAL EFFECTS AND THEIR MITIGATION ...........................................................6.1 LIST OF TABLES Table 4.1 Land Systems ......................................................................................................4.3 Table 4.2 Average Monthly Wind Speed .............................................................................4.8 Table 4.3 Rare Species within the Region.........................................................................4.10 Table 4.4 Known Archaeological Resources Near Shand South.......................................4.13 Table 4.5 Selected Population Characteristics ..................................................................4.16 Table 6.1 Potential Environmental Effects 6.2 Table 6.2: Mitigation Measures and Residual Effects 6.5 LIST OF FIGURES

Follows page Figure 1.1 Boundary Dam Mine – Shand South Extension 1.1 Figure 1.2 Shand South Extension Application Boundary 1.1 Figure 2.1 Shand South Extension Mine Plan 2.1 Figure 2.2 Coal Mining Stages 2.2 Figure 2.3 Shand South Extension Typical Reclaim Cross Section 2.3 Figure 2.4 Shand South Extension Conceptual Water Management Plan 2.4 Figure 3.1 Shand South Extension Coal Rights 3.1 Figure 3.2 Shand South Extension Surface Ownership 3.1 Figure 4.1 Regional Study Area 4.1 Figure 4.2 Land Systems 4.2 Figure 4.3 Average Monthly Precipitation 4.7 Figure 4.4 Soil Capability for Agriculture 4.8 Figure 4.5 Soil Capability for Wildlife (Ungulates) 4.8 Figure 4.6 Geological Cross Section Key Map 4.11 Figure 4.8a Typical Geological Cross Sections of Shand South (A-A’) 4.11 Figure 4.8b Typical Geological Cross Section (B-B’) 4.11 Figure 4.8c Typical Geological Cross Section (C-C’) 4.11 Figure 4.8d Typical Geological Cross Section (D-D’) 4.11

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1.0 Introduction

1.1 PROPOSAL DESCRIPTION

Prairie Mines & Royalty Ltd. (PMRL) is proposing to expand its Boundary Dam Mine operations. The Boundary Dam Mine is an approved coal mine (Permit to Operate File: N2-7-3) located in southeastern Saskatchewan, approximately 5 km south of the City of Estevan (Figure 1.1).

PMRL is submitting this project proposal for the Shand South Extension area to Saskatchewan Environment (SE) in accordance with the Saskatchewan Environmental Assessment Act and Saskatchewan Environmental Management and Protection Act, 2002. The purpose of this proposal is to describe PMRL’s intention to expand the existing Approval to include approximately 3237 ha of additional land, located east of the Boundary Dam Mine South East Extension approval that was completed in 1993. The application area consists of the following sections: NE 9, N½10, NW11, W½14, 15, 16, E ½ 17, 20, 21, 22, 23, S½26, S½27, 28, 29, 32, S½33 all in Twp 1, Rge 7 W2M (Figure 1.2).

PMRL proposes the expansion for the Shand South Mining area to be completed in four phases. The submittal of this Project Proposal is the first phase that initiates the environmental approval process to add the Shand South Extension Area to Boundary Dam Mine’s existing Permit to Operate. The second phase will be the completion of the Environmental Impact Assessment based on Project Specific Guidelines that will be developed by SE from the information provided in this Project Proposal. The third phase involves project application, submission and approval that will outline all operating conditions and requirements. The fourth phase is the incorporation of the Shand South Extension area into the existing Boundary Dam Mine Permit to Operate.

This proposal describes in detail the mine development, environmental protection plans, and potential environmental impacts and mitigation measures identified with developing the Extension area.

1.2 THE PROPONENT

PMRL is a 50 / 50 joint venture ownership between Sherritt International and the Ontario Teachers Union. PMRL is the largest thermal coal producer in Canada, producing over 90% of all the thermal coal in Canada. PMRL operates eight surface mines, three in Saskatchewan and five in Alberta. All the mines, other than Bienfait are located adjacent to electrical generating stations and, as such, are considered “mine-mouth” operations. Together, PMRL operations produce on average 37 million tonnes of coal annually.

The Boundary Dam Mine reserves are dedicated to SaskPower’s Boundary Dam and Shand generating stations. Mining in the Estevan area has been ongoing since the late 1800’s with numerous mines and operators. PMRL, formally know as Luscar Ltd., is the only active mining

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SHAND SOUTH EXTENSION PROJECT PROPOSAL Introduction

company in the area at this time. The Boundary Dam Mine is a combination of a number of mines that were previously operated by both Luscar Ltd. and Manalta Coal Inc.. In 1998 the two companies merged to form one company that encompassed all the mines.

Currently the Boundary Dam Mine produces approximately 6 million tonnes of lignite coal annually. The Boundary Dam Generating Station burns approximately 4½ million tonnes of coal annually and the Shand Generation Station burns approximately 1½ million tonnes of coal annually. These power stations supply a significant portion of the Province’s electricity.

PMRL also operates the Bienfait Mine (Permit to Operate File: N2-4-3) in the Estevan area. The Bienfait Mine produces approximately 1.8 million tonnes of coal annually and supplies coal to Ontario Power, other domestic customers and also produces approximately 120,000 tonnes of char annually for the manufacture of barbecue briquettes.

1.3 PROJECT SETTING

The Boundary Dam Mine is located in southeastern Saskatchewan, approximately 10 km south of the City of Estevan. The general location of the Boundary Dam Mine in Saskatchewan is illustrated in Figure 1.1. The location for the proposed Shand South Extension area can be seen in Figure 1.2.

The current Boundary Dam Mine and the Proposed Shand South Extension are located in the Rural Municipality (R.M.) of Estevan #5.

The Souris River located along the northern edge of the proposed application area is the only major watercourse located near the application area. PMRL does not plan to disturb the walls of the river valley, but they are included within the proposed application area because the legal section lines were used to identify the project boundary.

The southern edge of the proposed application area is 2.4 km from the international boundary with the United States of America.

1.4 PROJECT RATIONAL

Power demand in Saskatchewan is forecasted to steadily increase in the future. It has been estimated that the province will not have sufficient power generating capacity to meet demand by 2011 to 2013. As a result, SaskPower is evaluating different options of generating power for this projected shortfall. One option proposed is the construction of an additional, near zero emissions, power generating unit in the Estevan area. PMRL would require additional coal reserves outside the existing permitted area to supply fuel for this unit.

Within the Shand South Extension area, the Estevan coal seam dips to a depth where PMRL does not currently mine. In order to maximize the coal reserves in the Estevan area PMRL has developed a method to mine the deeper Estevan seam. To efficiently recover these reserves a mine plan has been developed which extends outside of the existing permit boundary. If the


SHAND SOUTH EXTENSION PROJECT PROPOSAL Introduction

construction of the new power generating unit does not occur, the Shand South area would still be required in order to maximize coal recoveries by mining to the deeper Estevan coal seam.

The Shand South Extension area has always been considered by PMRL as part of the long term mining plan in the Estevan area. Extending the mine limit to include the Application area will increase the coal reserves by approximately 75 millions tonnes of recoverable reserves and would extend the life of the Boundary Mine for up to 10 more years. This will allow PMRL:

• To provide assurance of a secure and long term supply of coal for the area’s thermal power generating stations;

• To develop its coal resources in an orderly and efficient manner;

• To maximize coal recoveries over the long term.

In summary the Shand South Extension is required to recover the deeper Estevan Coal seam (avoid sterilization of the seam) and provide reserve capacity for SaskPower’s proposed net 300 megawatt addition to their existing Shand Generating Station.



2.0 Project Description

2.1 MINE DEVELOPMENT

2.1.1 Mine Plan

A long term stripping plan is shown in Figure 2.1. This plan is based on coal releases of 1.4 to 3.8 million tonnes of coal annually. Higher tonnages will result in a more rapid advance of excavation. Mining is scheduled to start in 2009 and finish in 2040. The draglines used will be the M8750, W1800, B.E.1570, and one new 100 yd3 machines phased in over the 31 years of operation.

Mining in the Extension Area is scheduled to start in 2009, with the M8750 dragline mining along the north edge of the pit (section 32). The pit will be oriented east-west and advance to the south through sections 32, 29, 28, 23, 22, 21, 20, 16, 15, and 14. The pit will be mined as a continuation of the pit located to the west in the Boundary South East Extension Area.

Mining in the Extension Area is planned to continue to 2040.

2.1.2 Infrastructure

Infrastructure requirements resulting from developing the Extension Area will consist of:

• Coal haul roads constructed in stages from 2009 to 2030 for the transport of coal to stockpiles or power generating stations (Figure 2.1);

• Power lines and transformers to supply power to draglines, shovels, wells, and pump (Figure 2.1); and

• Water pipelines and water management facilities.

The existing mine services building at the Boundary Dam Mine will continue to be used.

Access to the current Mine Services Building will continue to be provided by the existing paved RM road.

2.1.3 Coal Loading and Hauling

Coal will be loaded in pit by front end loaders and power shovels. Coal will be hauled out of pit by 150-tonne trucks on the haul roads shown (Figure 2.1). Where possible all existing roads will be used.


SHAND SOUTH EXTENSION PROJECT PROPOSAL Project Description

2.1.4 Equipment and Manpower

The manpower requirements for the Shand South Mine will be dependent on production; however, the size of the workforce is expected to increase approximately by 10 employees.

Major equipment purchases for the Long Range Plan involve the purchase of one new dragline (100 yd3 class) as well as a prestrip fleet. Normal replacement of the mobile fleet will continue through the mining years.

2.2 ENVIRONMENTAL PROTECTION PLANS

2.2.1 Reclamation

The mining method that will be employed in the Shand South Extension area will be open pit strip mining. Figure 2.2 illustrates a typical strip mining sequence and shows that mining and reclamation is an integrated operation. The sequence begins with the cover soils being salvaged in advance of mining. The overburden is then removed to expose the underlying coal seams and placed in the adjacent pit. The coal is removed and the subsequent open pit is backfilled with the overburden from the next open cut. Spoil piles are then recontoured and the salvaged cover soils are replaced on the recontoured spoil piles and revegetated to predetermined end land use. All conservation and reclamation activities for the Extension area will follow the requirements set out in SE’s Reclamation and Approvals Guidelines, Saskatchewan Strip Mined Coal Lands.

A reclamation plan will be developed and submitted to SE for approval for the Extension area in accordance with Reclamation and Approval Guidelines. It will address pre- and post-mining land uses, native prairie assessment, soil quality, soil salvage, wetland classification, final reclamation topography, soils replacement, and vegetation re-establishment.

Post-Mining Land use

PMRL’s objective for post mining land use for the Extension area is to re-establish the majority of the land into agriculture productivity in a timely manner. Areas of native grassland will be inventoried in the pre-mining assessment to determine post-mining re-establishment requirements as outlined in the Reclamation and Approval Guidelines. Areas that are not re-established to agriculture will be re-contoured into wildlife habitat/wetland areas.

Soils Salvage and Replacement

A detailed soils survey will be conducted of the Extension area prior to mining to ensure that all available soil resources will be utilized. Both cover soil and subsoil will be surveyed for quantity and quality. Cover soil is defined as a mixture of the A and B soil horizons including the layer of organic matter.

All available soils that are required as outlined in the Reclamation and Approval Guidelines will be salvaged and replaced directly on leveled disturbed land or placed in stockpiles for replacement after mining and leveling activities are completed.


1. Before mining begins all suitable soils are salvaged and hauled to areas undergoing reclamation or retained in stockpiles for future use.

2. The dragline removes the overburden to expose the coal seam. The overburden is placed in the adjacent mined-out cut. The coal seam is uncovered.

3. Coal is loaded into large-capacity trucks for transport to the power station.

4. Bulldozers re-contour the overburden removed by the dragline. This step is the first stage in land reclamation.

5. Soils salvaged prior to mining is replaced on the re-contoured overburden.

6. The land is re-vegetated and returned to agriculture production or other acceptable land use as defined in the operating approvals.

Figure 2.2 – Typical Mining Process


Native grassland soil will be salvaged separately from agriculture lands and used primarily for the re-establishment of native grasslands. The native grassland cover soil contains a diverse seed bank, which will assist in native grassland reclamation. The amount of time that the cover soil remains stockpiled will be minimized to preserve the viability of the seedbank and propagules within the cover soil. If applicable, the cover soil will be placed directly onto the leveled overburden to eliminate the stockpile stage.

Leveling/Re-contouring

Leveling practices at the proposed Shand South Extension will be consistent with those currently being utilized at Boundary Dam Mine. All areas with the exception of ramps, box cut spoils or end pits will be graded to a gently rolling slope generally less than 10%. Contouring will develop suitable drainage patterns that promote positive drainage. Once leveling and contouring have been completed, cover soil will be replaced and the area revegetated.

Box Cut Spoil and End Pit Reclamation

In preparation for the initial opening box cut in the mining sequence, cover soil will be salvaged from the box cut, the box cut spoil pile and the box cut spoil recontouring areas. The spoil from the initial box cut will be deposited on adjacent land. Overburden from all subsequent turnover cuts will be placed by the dragline into the previous adjacent mined out cuts. As a consequence, the final contour of the box cut spoil will create a ridge running parallel to the original mine pit. The slopes of the box cut spoil ridge will be contoured to less than a 15% grade. Cover soil will then be placed on the contoured spoil and the newly created soil profile revegetated.

The final cut of the mining sequence will leave an open end pit with spoil piles on one side and the pit highwall on the other. Both the spoil and highwall slopes will be contoured to a maximum 20% grade as shown in Figure 2.3. These endcut depressions in the reclaimed topography will probably become permanent water bodies since they will receive surface water runoff and could possibly intersect the post-mining water table. These endcut depressions will provide a permanent water source for livestock and wildlife, and a habitat for waterfowl. Cover soil will be placed only above the expected high-water line of the contoured endcut depressions and the area then revegetated.

Revegetation

Following the replacement of cover soil material on mined lands, revegetation operations will closely resemble standard farm management practices. Consistent with the Reclamation Guidelines, emphasis will be placed on quickly establishing a vegetation cover to control erosion and achieve a self-sustaining plant cover.

Revegetation operations will normally take place in the same growing season in which cover soil is replaced. Once the cover soil has been replaced, surface rock and debris will be removed and the seedbed (cultivated to loosen and level) prepared. A cereal cover crop such as fall rye, oats, wheat or barley (Canada no. 1 certified) will be planted with the pre-determined seed mixes for the following end land uses:



• Cereal Crop Production – Cover soiled disturbed land that is designated for cereal crop production will be seeded to an agronomic grass-legume mix with a cereal cover crop. After several years of forage production that will redevelop the root zone of the soil profile, the reclaimed land can be broken up and seeded to annual cereal crops. Management of these lands will follow standard cereal crop rotations for southeastern Saskatchewan, which, depending upon the moisture regime, will either be continuous cropping or one year of summer fallow followed by two years of crop.

• Forage Crop /Pasture Production – Land designated for forage crop production will be seeded to an agronomic grass-legume mixture with a cereal cover crop.

• Native Grassland Reclamation – Land designated for native prairie re-establishment will be seeded to a pre-determined mix with a cereal cover crop. The guideline produced by Saskatchewan Agriculture, entitled “Restoration of Saskatchewan’s Agricultural Crown Rangelands” will be used to help determine the native prairie seed mix(s), along with the data collected in the pre-mining vegetation inventory study. A seed mix(s) will be included as part of the reclamation plan that will be submitted to SE for approval as outlined in the Reclamation and Approval Guidelines for Saskatchewan Strip Mined Coal Lands.

2.2.2 Surface Water Management

Surface drainage in the Shand South Extension area is poorly developed, with small sloughs and man-made features. Due to climatic, drainage, and surface conditions, there are no large permanent water bodies within the project area. In years of low precipitation depressional areas can be completely dry.

The primary concern from surface water runoff is the degradation of receiving water due to high sediment loading. Whenever possible, surface water not affected by mining operations will be diverted away from the active pit areas to drainage channels for release.

Mine water discharges are controlled by in pit ditches, sumps and pumping. This allows flexibility in the timing and rate of discharge, therefore minimizing the potential for uncontrolled releases from the site. Pit water will be removed from the mining area via surface drainage ditches or buried pipelines. The removed pit water will be directed to old reclaimed end cuts or to settling ponds until such time where acceptable water quality is achieved and then discharged through approved discharge sites. Plan specifications of the surface water handling program will be submitted to SE for approval prior to construction. Appropriate approvals to construct and operate the water system will be obtained as mine development progresses through the Extension area. Figure 2.4 illustrates the conceptual water handling system for the Shand South area.

2.2.3 Air Quality Management

Most dust generated during mine operations is attributed to the transportation of coal from the pits to the power generating stations or stockpiles. Coal dust generation during the hauling



process is minimal. The major source of dust emission comes from trucks driving along haul roads. All haul roads are located on the mine property.

Major sources of dust include:

• Dust generated by vehicles travelling on haul roads;

• Generation of dust by the handling of overburden;

• Soil salvage and replacement activities;

• Cultivation, seeding operations and tilling of reclaimed areas;

• Wind erosion of exposed overburden and soil surfaces; and

• Coal dust emissions arising from the coal stockpile;

PMRL is a member of the Southeast Saskatchewan Airshed Association. The concept of this airshed is a geographic region sharing the same air quality characteristics. The association is a non-profit, multi-stakeholder, consensus driven organization providing regional management of an air quality monitoring program. The objectives are to:

• Monitor ambient air quality and evaluate collected data to better understand contributing factors and evaluate trends.

• Communicate air quality data and information to stakeholders and the public;

• Develop a voluntary, locally sponsored strategy for the protection of public health and the local environment;

• Involve industry, government, and the public in the development of visions and goals for managing regional air quality; and

• Meet regulatory ambient air quality reporting requirements.

2.2.4 Noise

Noise from the proposed project will be generated 24 hours a day corresponding to its hours of operation. Sound levels will vary with wind conditions. Sources of noise from the proposed mine include:

• Current operations;

• Coal haul trucks, water truck and other truck traffic;

• Draglines – bucket produces loud thuds in the bottom of the pits and cold weather causes bearings to squeak; and

• Dozers, graders and scrapers.



3.0 Coal Rights and Surface Ownership

3.1 COAL RIGHTS

Ownership of the freehold coal rights and the lessees of the crown coal rights for the Shand South Extension area are shown on Figure 3.1. SaskPower and PMRL presently control over 72% (2331 ha) of the coal rights for the proposed mine development area. The majority of these SaskPower and PMRL coal rights are located where PMRL plans to start its mining operations. As mining advances, negotiations for the acquisition or lease of the coal rights to the remaining 906 ha will be made on an as required basis.

3.2 SURFACE OWNERSHIP

Ownership of the surface rights for the Shand South Extension area is shown on Figure 3.2. SaskPower and PMRL own over 40% of the surface rights for the Extension area. Another 20 landowners control the remaining surface rights.

The acquisition of the surface rights will occur on an incremental basis approximately five years in advance of mining. The existing procedure that has been developed by SaskPower and PMRL will be utilized for the acquisition of the surface rights in the Extension area. The land acquisition plan will take into account any municipal bylaw restrictions.

Upon completion of mining, reclamation and a land management period, the majority of the reclaimed mined land will be leased for agricultural purposes and eventually disbursed. The return of the reclaimed mined land to agricultural and other land uses will occur on an incremental basis.


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