stage 2 preliminary site investigation

PHH ARC Environmental Ltd. Suite 406 - 13251 Delf Place, Richmond, BC V6V 2A2

Tel: (604) 244-8101 Fax: (604) 244-8491 Toll-free: (877) 322-4744 www.phharcenv.com

STAGE 2 PRELIMINARY SITE INVESTIGATION

218 BAYVIEW AVENUE, LADYSMITH, BRITISH COLUMBIA

TransGlobe Property Management Services 5310 Explorer Drive Mississauga, Ontario

L4W 4J6

Attention: Mr. Daniel Drimmer

PINCHIN FILE: 41389.001

COPYRIGHT © 2007 BY PHH ARC ENVIRONMENTAL LTD.

PHH ARC Environmental Ltd. Page i

EXECUTIVE SUMMARY

PHH ARC Environmental Ltd. (PHH ARC) was retained by Pinchin Environmental (Pinchin) on behalf of TransGlobe Property Management Services to complete a Stage 2 PSI for a residential property located on Bayview Avenue in Ladysmith, BC (the “Site”). The general Site location is illustrated in Figure 1.

The purpose of the Stage 2 PSI was to determine the presence or absence of Potential Contaminants of Concern (PCOC) in the soil and/or groundwater on the Site at concentrations that exceed pertinent standards in the BC Contaminated Sites Regulation (CSR) and/or hazardous waste regulation. The Area of Potential Environmental Concern (APEC) and associated PCOC for this Stage 2 PSI were identified in a Phase I Environmental Site Assessment (ESA) completed by PHH ARC in July 2007.

The field work for the Stage 2 PSI was completed on July 9 2007. A total of three boreholes were drilled on the Site. The boreholes were advanced by a solid stem auger using a truck mounted rig. Soil samples were submitted for PCOC analyses.

The soil analytical results were compared to applicable standards in the CSR and HWRs summarized below:

1. Soil: Schedule 4 and 5 residential land use (RL) standards. Schedule 10 Practical Quantification Limits (PQLs) and Industrial Soil Standards, Schedule 5 human health and ecological site specific factors include:

a. Groundwater flow to surface water used by aquatic life (marine) b. Toxicity to soil invertebrates and plants

PHH ARC concludes that all soil results are below the Residential Land Use standards applicable to the Site. Therefore, no further investigation is necessary at this time.

PHH ARC Environmental Ltd. Page i

TABLE OF CONTENTS

1.0 INTRODUCTION..................................................................................................1 1.1 Purpose.........................................................................................................1 1.2 Scope of Work .............................................................................................1

2.0 BACKGROUND INFORMATION .....................................................................2 2.1 General Site Information .............................................................................2 2.2 Phase I Environmental Site Assessment Results .........................................2

3.0 FIELD INVESTIGATION METHODS ..............................................................3 3.1 Ground penetrating radar .............................................................................3 3.2 Borehole Location Rationale .......................................................................3 3.3 Borehole Drilling .........................................................................................3 3.4 Soil Sampling...............................................................................................3 3.5 Soil Vapour Concentrations.........................................................................3 3.6 BOREHOLE MAPPING .............................................................................4

4.0 FIELD INVESTIGATION RESULTS ................................................................5 4.1 Stratigraphy..................................................................................................5 4.2 Combustible Vapour Concentrations in Soil ...............................................5 4.3 Laboratory Analyses ....................................................................................5

4.3.1 Types of Analyses ......................................................................5 4.3.2 Regulatory Framework..............................................................5 4.5.3 Soil Analytical Results...............................................................7

4.6 Quality Assurance and Quality Control (QA/QC).......................................7 4.6.1 Field QA/QC Activities.............................................................7 4.6.2 Laboratory QA/QC....................................................................8 4.6.3 Reliability of Laboratory Results ..............................................8

4.7 Results and Discussion ................................................................................8 5.0 CONCLUSIONS AND RECOMMENDATIONS...............................................9 6.0 LIMITATIONS....................................................................................................10 7.0 CLOSURE ............................................................................................................11 8.0 REFERENCES.....................................................................................................12

TABLE OF CONTENTS CONTINUED

PHH ARC Environmental Ltd. Page ii

LIST OF TABLES

Table 1: BTEX, VPH, LEPH, HEPH, MTBE in Soil Table 2: PAH in Soil Table 3: Metals in Soil

LIST OF FIGURES

Figure 1: Site Location Figure 2: Site Plan Showing On-Site APECs Figure 3: Site Plan Showing Borehole Locations

LIST OF APPENDICES

Appendix A: Borehole Logs Appendix B: Laboratory Analysis Certificates

TransGlobe Property Management Services August 3, 2007 218 Bayview Avenue, Ladysmith, BC Pinchin File: 41389.001

© 2007 PHH ARC Environmental Ltd. Page 1

1.0 INTRODUCTION

PHH ARC Environmental Ltd. (PHH ARC) was retained by Pinchin Environmental (Pinchin) on behalf of TransGlobe Property Management Services to complete a Stage 2 PSI for a commercial property located on Bayview Avenue in Ladysmith, BC (the “Site”). The general Site location is illustrated in Figure 1.

1.1 PURPOSE

The purpose of the Stage 2 PSI was to determine whether or not Potential Contaminants of Concern (PCOC) exist in the soil and/or groundwater on the Site at concentrations that exceed pertinent standards in the BC Contaminated Sites Regulation (CSR) and/or hazardous waste regulation. The Areas of Potential Environmental Concern (APECs) and associated PCOC for this Stage 2 PSI were identified in a Phase I Environmental Site Assessment (ESA) completed by PHH ARC in July 2007.

1.2 SCOPE OF WORK

The scope of work for this Stage 2 PSI included:

• Drilling three boreholes to obtain soil samples for laboratory testing of PCOC.

• Preparation of a written report summarizing all findings, conclusions and recommendations.



2.0 BACKGROUND INFORMATION

2.1 GENERAL SITE INFORMATION

The following table summarizes general information pertaining to the Site:

Summary of Site Information Current Site Tenants Apartment building Latitude and Longitude of Centre of Site

48o59’16.4” N 123o28’44.6” W

Number of Buildings on Site One Surface Description Building – 40%, parking – 40%, landscaped – 20% Area of Site 0.55 hectares (1.37 acres) Zoning Residential Utilities Electricity, natural gas, sanitary, storm, water Source of Potable Water Municipal water supply obtained from reservoirs and piped distribution

system Topography Slopes down to the south Geology Sand, gravel and silt

2.2 PHASE I ENVIRONMENTAL SITE ASSESSMENT RESULTS

A Phase I ESA was completed on the Site by PHH ARC in July 2007. The report completed for Phase I ESA stated that the Site had been occupied by residential properties since current residential building was constructed in 1973. An underground storage tank was located on the Site from 1973 to 1990.

The Areas of Potential Environmental Concern (APECs) identified in Phase I ESA was the former on-Site heating oil underground storage tank (UST). PHH ARC recommended a Stage 2 PSI to investigate the above noted APEC. The APEC locations are depicted in Figure 2.



3.0 FIELD INVESTIGATION METHODS

3.1 GROUND PENETRATING RADAR

A ground penetrating radar search was conducted at the Site on July 5, 2007 by IPS, based in Vancouver, BC. The search did not find any signs of an underground storage tank.

3.2 BOREHOLE LOCATION RATIONALE

Boreholes 07-BH101 through 07-BH103 were advanced in and adjacent to the tank nest of a former diesel UST to investigate for soil contamination and fill quality.

3.3 BOREHOLE DRILLING

Boreholes were advanced on the Site on July 9, 2007 by Beck Drilling, based in Victoria, BC. The boreholes were advanced by solid stem auger methods using a truck mounted rig. The total depth of investigation was 4.6m below surface grade (bsg).

The borehole locations are depicted in Figure 3. The borehole details are shown on the borehole logs in Appendix A.

3.4 SOIL SAMPLING

Soil samples were obtained by hand from the augers. In order to avoid cross contamination, care was exercised not to obtain soil samples that were in direct contact with the borehole annulus walls.

Soil samples were generally recovered at changes in stratigraphy or where field observations indicated the potential for soil contamination. Each recovered sample was visually inspected for evidence of contamination such as free product, staining or discoloration. Olfactory monitoring was performed to enhance the visual observation results. A total of 20 soil samples were obtained during the Stage 2 PSI.

Recovered soil samples were retained in clean laboratory provided glass containers and placed in a cooler prior to being submitted to an analytical laboratory. All soil samples and containers were handled wearing disposable latex gloves and any sampling tools utilised were cleaned with distilled water between uses. Based on the field screening results, selected soil samples were submitted to CARO Environmental Services (CARO), an accredited laboratory of the Canadian Association of Environmental Analytical Laboratories (CAEAL), for analyses of PCOC.

3.5 SOIL VAPOUR CONCENTRATIONS

A duplicate of every soil sample was placed into a clean plastic bag and allowed to equilibrate to ambient temperature for 15 to 20 minutes. The combustible vapour concentration in the headspace above the soil sample was then measured in the plastic



bag using a Gastech Model 1238ME Gastechtor Hydrocarbon Surveyor (Gastechtor) that was calibrated to hexane and equipped with methane elimination1.

3.6 BOREHOLE MAPPING

Borehole locations were horizontally surveyed relative to Site building boundaries using a tape measure.

1 The Gastechtor can detect combustible hydrocarbon vapours at levels as low as 12.5 part per million by volume (ppm/v) and as high as 12,500 ppm/v, or 100% of the lower explosive limit (LEL) for hexane.



4.0 FIELD INVESTIGATION RESULTS

4.1 STRATIGRAPHY

Soil profile encountered during the drilling indicated that there was fill material consisting of sand and some silt in 07-BH101, 07-BH102, and 07-BH103 with depths ranging from approximately 0.0 to 1.8 mbg. Sandy silt was observed in all boreholes from approximately 1.8m to 3.4m. Sand and gravel was observed in all boreholes from approximately 3.4m to 4.0m. Silty sand and gravel was observed in all boreholes from approximately 4.0m to 4.6m. There were no indications of contamination in the soil cuttings from any of the boreholes. The borehole logs are provided in Appendix A.

4.2 COMBUSTIBLE VAPOUR CONCENTRATIONS IN SOIL

The combustible vapour concentrations measured from borehole soil samples are presented in the test pit logs in Appendix A. All vapour concentrations were below 500 ppm, which are relatively low and do not indicate potential impact of volatile hydrocarbons.

The vapour readings for each borehole sample are presented on the borehole logs in Appendix A.

4.3 LABORATORY ANALYSES

4.3.1 Types of Analyses Selected soil samples were analysed for Benzene, Toluene, Ethylbenzene, Xylenes (BTEX), Volatile Petroleum Hydrocarbons (VPH), Methyl-tertiary Butyl Ether (MTBE), Light and Heavy Extractable Petroleum Hydrocarbons (LEPH and HEPH), Polycyclic Aromatic Hydrocarbons (PAH), and metals. A summary of the analytical testing procedures is presented on the laboratory certificates enclosed in Appendix C.

4.3.2 Regulatory Framework Environmental matters pertaining to contaminated sites in British Columbia fall under the jurisdiction of the BC Ministry of Environment (MOE), pursuant to the Environmental Management Act (EMA). The two key regulations under the EMA relating to assessment and remediation of contaminated sites are the Contaminated Sites Regulation (CSR), and the Hazardous Waste Regulation (HWR). The CSR sets out legal procedures for screening sites, determining if a site is a contaminated site, liability, remediation processes, and sets standards for site remediation and soil relocation. The HWR sets out legal procedures for the identification, handling, storage, transportation and disposal of hazardous wastes.



4.3.3 Applicable Soil Standards For a given substance in soil, the CSR provides either generic or matrix numerical standards. Generic standards are listed in Schedules 4 and 10 of the regulation, and consist of concentrations that apply regardless of site specific factors. Matrix standards take into account site specific factors, and the applicable standard for a substance is determined by using the lowest applicable concentration in Schedule 5 of the regulation. The site specific standards account for human exposure by intake of contaminated soil and groundwater used for drinking water. Other factors include whether there is exposure by other environmental receptors such as soil invertebrates, livestock, and aquatic life, and whether the water at the contaminated site will be used for irrigation.

In accordance with protocols developed by MOE, the aquatic life protective soil standards apply to sites situated within 1 km of fresh or marine water used by aquatic life, unless site specific data can be used to show that the groundwater travel time between the site and the aquatic environment exceeds fifty years. Similarly, drinking water protective soil standards apply to sites situated within 1.5 km of a groundwater or surface water supply source, unless site specific data can be used to show that the groundwater travel time between the site and the source exceeds one hundred years.

In accordance with the HWR, soil is considered to be hazardous waste if it meets the criteria for Class 2, 3, 4, 5, 6, 8, or 9 of the federal dangerous goods regulations, contains leachable toxic waste, or meets the HWR definition of waste containing perchloroethylene (Perc), PCB, dioxins, PAH, asbestos, pesticides or waste oil. There are some exceptions where a site containing a substance that otherwise meets the definition of a hazardous waste is deemed not to contain a hazardous waste (CSR Section 13).

An examination of conditions was undertaken to determine the appropriate water use conditions at the Site so that the appropriate soil standard from the CSR could be determined. Since the current zoning of the Site is residential, the Residential Land Use (RL) standards apply. In terms of the Site specific matrix standards within Schedule 5, the strictest of the following standards apply:

• Toxicity to soil invertebrates and plants (applicable at all sites); • Groundwater flow to surface water used by aquatic life (marine) as Ladysmith

Harbour is located 300 m east of the Site; and, • Column 5 Practical Quantification Limits (PQLs) and Column 4 Industrial Soil

Standards from Schedule 10 of the CSR also apply for the Site.

Drinking water to the Site is supplied via a piped distribution system from Holland Creek and Stocking Lake which is approximately 2.5km away from the Site. Therefore, standards to protect drinking water do not apply for the Site.



4.5.3 Soil Analytical Results The soil chemical test results are presented in the laboratory certificates included in Appendix C and are summarised in Tables 1 through 3 along with applicable CSR and HWR standards.

4.5.3.1 BTEX, VPH, LEPH, HEPH and MTBE in Soil

The BTEX, VPH, LEPH, HEPH and MTBE analytical results in soil are presented in Table 1.

All sample results are below RL standards.

4.5.3.2 PAH in Soil

The PAH analytical results in soil are presented in Table 2.


4.5.3.3 Metals in Soil

The metals analytical results in soil are presented in Table 3.


4.6 QUALITY ASSURANCE AND QUALITY CONTROL (QA/QC)

4.6.1 Field QA/QC Activities The following points summarize the Quality Assurance and Quality Control (QA/QC) measures employed for the Stage 2 PSI field work.

• All field sampling methods were in general accordance with CSA Standard Z769-00 for Phase II Environmental Site Assessments (March 2000) and BC MOE recommended procedures.

• All field personnel were properly trained to conduct the investigation work. • All instrumentation was cleaned and calibrated before the investigation by trained

PHH ARC equipment technicians. Instrumentation may have been periodically calibrated in the field if conditions dictated. All instrumentation was operated according to the manufacturer’s instructions.

• All sampling equipment was routinely cleaned using a water and alconox solution and rinsed with distilled water to limit the possibility of cross-contamination between samples.

• Nitrile gloves were worn by field personnel and changed between sample intervals and locations to prevent sample cross-contamination.

• Soil samples were placed in clean, laboratory provided glass containers and placed in a cooler with ice packs prior to being submitted to a CAEAL accredited analytical laboratory.



• Chain of custody forms were completed and accompanied all submitted samples to the laboratory.

4.6.2 Laboratory QA/QC All samples were analysed by, a CAEAL accredited laboratory. All laboratory QA/QC is provided in Appendix C with the laboratory results.

One blind duplicate soil sample, labelled 07-BH-DUP, was collected from 07-BH101 and tested for BTEX, VPHw, LEPHw and HEPHw. The relative percent difference between the sample concentrations was calculated using the following formula:

Relative Percent Difference (RPD) = 2×ABS [(X-Y)/(X+Y)] × 100%

Where: ABS = Absolute value X = Concentration of original sample Y = Concentration of blind duplicate sample

Any relative percent difference (RPD) value greater than 30% is deemed unacceptable by PHH ARC QA/QC standards2. High RPD values require further investigation into the cause for these discrepancies. Inquires are made to the analytical laboratory and field staff regarding batch quality control, reporting errors, sampling methods and inherent field errors in order to explain why the discrepancy occurred.

All RPD values were below 30% or could not be calculated due to the results being below the laboratory detection limits.

4.6.3 Reliability of Laboratory Results The laboratory results for the Stage 2 PSI are considered to be reliable as:

1. Appropriate soil sampling techniques were used by experienced field staff.

2. All soil samples were stored in a cooler that was packed with ice prior to and during shipment to CARO.

3. No QA/QC issues were reported by CARO, a CAEAL accredited laboratory.

All RPD values were below 30%.

4.7 RESULTS AND DISCUSSION

Soil results indicated that the concentrations of hydrocarbon constituents of concern and metals did not exceed the applicable CSR standards.

2 For results greater than five times the laboratory detection limit.



5.0 CONCLUSIONS AND RECOMMENDATIONS

PHH ARC concludes that all soil results are below the Residential Land Use standards applicable for the Site. Therefore, no further investigation is necessary at this time.



6.0 LIMITATIONS

The work performed by PHH ARC Environmental Ltd. was conducted in accordance with generally accepted engineering or scientific practices current in this geographical area at the time the work was performed. No warranty is either expressed or implied by furnishing written reports or findings. The Client acknowledges that subsurface and concealed conditions may vary from those encountered or inspected. PHH ARC Environmental Ltd. can only comment on the environmental conditions observed on the date(s) the assessment is performed. The work is limited to those areas of concern identified by the Client or outlined in our proposal. Other areas of concern may exist but were not investigated within the scope of this assignment.

Samples that were collected and found to be other than non-hazardous waste may be returned to the Client at the sole discretion of PHH ARC Environmental Ltd.

PHH ARC Environmental Ltd. makes no other representations whatsoever, including those concerning the legal significance of its findings, or as to other legal matters touched on in this report, including, but not limited to, ownership of any property, or the application of any law to the facts set forth herein. With respect to regulatory compliance issues, regulatory statutes are subject to interpretation and these interpretations may change over time. PHH ARC Environmental Ltd. accepts no responsibility for consequential financial effects on transactions or property values, or requirements for follow-up actions and costs.

The liability of PHH ARC Environmental Ltd. or its staff will be limited to the lesser of the fees paid or actual damages incurred by the Client. PHH ARC Environmental Ltd. will not be responsible for any consequential or indirect damages. PHH ARC Environmental Ltd. is only liable for damages resulting from negligence of PHH ARC Environmental Ltd. All claims by the Client shall be deemed relinquished if not made within two years after last date of services provided. Information provided by PHH ARC Environmental Ltd. is intended for Client use only. PHH ARC Environmental Ltd. will not provide results or information to any party unless disclosure by PHH ARC Environmental Ltd. is required by law. Any use by a third party of reports or documents authored by PHH ARC Environmental Ltd. or any reliance by a third party on or decisions made by a third party based on the findings described in said documents, is the sole responsibility of such third parties. PHH ARC Environmental Ltd. accepts no responsibility for damages suffered by any third party.



7.0 CLOSURE

This report was prepared in accordance with all requirements in the BC Environmental Management Act, Contaminated Sites Regulation and Hazardous Waste Regulation. The authors of this report have over 15 years of combined experience in contaminated sites investigation and remediation. Mr. Stewart McBride completed the field work and the reporting for this Project. Mr. Hafeez Chishti completed a review of the report.

PHH ARC appreciated the opportunity to work on this project and if we can provide clarification of any part of this report, please do not hesitate to contact the undersigned.

This report was prepared by: This report was reviewed by:

PHH ARC Environmental Ltd. PHH ARC Environmental Ltd.

Per: Per:

___________________________ Stew McBride, A.Sc.T. Hafeez Chishti, Ph.D. Technologist Senior Environmental Specialist Environmental Management Group This report was reviewed by:

PHH ARC Environmental Ltd.

Per:

Paul Loney, P.Eng. Senior Client Manager Environmental Assessment & Transactional Due Diligence [email protected] J:\41000s\41389 TransGlobe\Phase II ESA\41389.001 TransGlobe PHII ESA Bayview, Ladysmith Aug 2 2007.doc



8.0 REFERENCES

1. BC Environmental Management Act, Contaminated Site Regulation, BC Reg 76/2005, March 7, 2005

2. BC Environmental Management Act, Hazardous Waste Regulation, BC Reg 464/2004, October 22, 2004

3. BC Ministry of Environment, Technical Guidance on Contaminated Sites 1, Site Characterization and Confirmation Testing, July 2005

4. PHH ARC Environmental, Phase I Environmental Site Assessment, 218 Bayview Avenue, Ladysmith, BC. July 3, 2007.

TABLES

07-BH101-3 07-BH102-3 07-BH103-3Parameters 1.8 - 2.1m 1.8 - 2.1m 2.1 - 2.4m

9-Jul-07 9-Jul-07 9-Jul-07Benzene 10 0.04 < < <Ethylbenzene 6000 0.05 < < <Styrene 5 0.05 < < <Toluene 40 0.05 < < <Xylenes 5 0.10 < < <VPH 200 100 < < <EPH 10-19 ns 200 < < <EPH 19-32 ns 200 < < <LEPH 1000 200 < < <HEPH 1000 200 < < <MTBE ns 0.2 < < <

Notes:Values in ug/g unless otherwise stated- = not analyzed < = less than the detection limit

XXX.XX = Exceeds Applicable Soil Standard

BTEX = Benzene, Toluene, Ethylbenzene, XylenesVPH = Volatile Petroleum HydrocarbonsLEPH = Light Extractable Petroleum Hydrocarbons, corrected for PAHEPH10-19 - LEPH, uncorrected for PAHHEPH Heavy Extractable Petroleum Hydrocarbons, corrected for PAHEPH19-32 - HEPH, uncorrected for PAHMTBE = Methyl Tertiary Butyl Ether

** For regulatory purposes, the BC Ministry of the Environment (MOE) considers

*** Schedule 10 Column IV Practical Quantification Limit

* Residential Land Use standards provided in Schedules 4, 5 and 10 of the B.C. Contaminated Sites Regulation. Schedule 5 Site specific factors include …….

Table 1: BTEX, VPH, LEPH, HEPH and MTBE in SoilJob Number: 11349BSite: 218 Bayview Ave, Ladysmith, BCClient: TransGlobe

Detection Limit (Unless Otherwise

Stated) CSR Soil Standards *

11349B_Analytical BTEX-VPH-LEPH-HEPH-MTBE-Soil

Checked by:__________

Page 1 of 1

Table 2: PAH in SoilJob Number: 11349BSite: 218 Bayview Ave, Ladysmith, BCClient: TransGlobe

07-BH101-3 07-BH102-3 07-BH103-3Parameters 1.8 - 2.1m 1.8 - 2.1m 2.1 - 2.4m

9-Jul-07 9-Jul-07 9-Jul-07Naphthalene 5 0.05 < < <2-Methylnaphthalene ns 0.05 < < <Acenaphthene ns 0.04 < < <Acenaphthylene ns 0.05 < < <Fluorene ns 0.05 < < <Phenanthrene 5 0.05 < < <Anthracene ns 0.05 < < <Fluoranthene ns 0.05 < < <Pyrene 5 0.05 < < <Benzo[a]anthracene 1 0.05 < < <Crysene ns 0.05 < < <Benzo[b]fluoranthene 1 0.05 < < <Benzo[k]fluoranthene 1 0.05 < < <Benzo[a]pyrene 1 0.05 < < <Indeno[1,2,3-cd]pyrene 1 0.05 < < <Dibenz[a,h]anthracene 1 0.05 < < <Benzo(g,h,i)perylene ns 0.05 < < <

Notes:Values in ug/g unless otherwise stated- = not analyzed ns = no standard< = less than the detection limit


PAH = Polycyclic Aromatic Hydrocarbons

* Residential Land Use standards provided in Schedules 4 and 5 of the B.C. Contaminated Sites Regulation. Schedule 5 Site specific factors include …….

CSR Soil Standards *

Detection Limit (Unless Otherwise

Stated)

11349B_Analytical PAH-Soil


Page 1 of 1

Table 3: Metals in SoilJob Number: 11349BSite: 218 Bayview Ave, Ladysmith, BCClient: TransGlobe

07-BH102-3 07-BH103-3Parameters 1.8 - 2.1m 2.1 - 2.4m

9-Jul-07 9-Jul-07pH 7.27 7.43Antimony 20 10 < <Arsenic 25 5 5.9 <Barium 500 1 75.1 72.3Beryllium 4 0.5 < <Cadmium 2 0.5 < <Chromium 60 2 36.2 34.6Cobalt 50 2 13.2 12.6Copper 150 1 55.4 52.6Lead 500 30 < <Mercury 15 0.05 0.055 0.056Molybdenum 10 4 < <Nickel 100 5 23.5 22.7Selenium 3 2 < <Silver 20 2 < <Tin 50 5 < <Vanadium 200 2 97.9 93.4Zinc 150 1 45.5 44.5

Notes:Values in ug/g unless otherwise stated- = not analyzed ns = no standard< = less than the detection limit


CSR Soil Standards *Detection Limit

(Unless Otherwise Stated)

* Residential Land Use standards provided in Schedules 4 and 5 of the B.C. Contaminated Sites Regulation. Schedule 5 Site specific factors include …….

11349B_Analytical Metals-Soil


Page 1 of 1

FIGURES

Topographic Map

Date: July 30, 2007

Drawn By: GN

Checked By: Project No: 11349B

Project: Stage 2 PSI Location: 218 Bayview Avenue,

Ladysmith, BC Scale: N/A

Dwg No:

Figure #

1

SITE

APPENDIX A BOREHOLE LOGS

07-BH10141389.001

Stage 2 PSI

Transglobe

218 Bayview, LadysmithStew McBride

Ground SurfaceSand and Silt

Brown SAND and SILT, moist, soft, no odour, no staining

SiltGrey sandy SILT, moist, dense, no odour, no staining.Wet at 6.5'

Sand and GravelGrey SAND and GRAVEL, wet, dense, no odour, no staining

Silty SandGrey silty, gravelly SAND, wet, dense, no odour, no staining

End of Borehole

1

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20 40 60 80% LEL

100 200 300 400PPMv

Beck

Solid Stem Auger

July 9, 2007

Log of Borehole:Project No.:

Project:

Client:

Location:Engineer:

Drilled By:

Checked:Drill Method:

Drill Date:

Sheet: 1 of 1

SUBSURFACE PROFILE SAMPLE

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Combustible Soil Vapours

Remarks

07-BH10241389.001

Stage 2 PSI

Transglobe




SiltGrey sandy SILT, moist, dense, no odour, no staining.Wet at 5.5'

Sand and GravelGrey SAND and GRAVEL, wet, dense, no odour, no staining


End of Borehole

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20 40 60 80% LEL

100 200 300 400PPMv

Beck

Solid Stem Auger

July 9, 2007


Project:

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Location:Engineer:

Drilled By:


Drill Date:

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07-BH10341389.001

Stage 2 PSI

Transglobe




SiltGrey sandy SILT, moist, dense, no odour, no staining.Wet at 7'


End of Borehole

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20 40 60 80% LEL

100 200 300 400PPMv

Beck

Solid Stem Auger

July 9, 2007


Project:

Client:

Location:Engineer:

Drilled By:


Drill Date:

Sheet: 1 of 1


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APPENDIX B LABORATORY ANALYSIS CERTIFICATES

ANALYTICAL REPORT

Reported On: 13-JUL-07 10:38 AM

THIS REPORT SHALL NOT BE REPRODUCED EXCEPT IN FULL WITHOUT THE WRITTEN AUTHORITY OF THE LABORATORY.ALL SAMPLES WILL BE DISPOSED OF AFTER 30 DAYS FOLLOWING ANALYSIS. PLEASE CONTACT THE LAB IF YOUREQUIRE ADDITIONAL SAMPLE STORAGE TIME.

Timothy Guy CrowtherGeneral Manager, Vancouver

11349B

Comments:

Job Reference: Project P.O. #:

Other Information:

Legal Site Desc: CofC Numbers:

1988 Triumph Street, Vancouver, BC V5L 1K5Phone: +1 604 253 4188 Fax: +1 604 253 6700 www.alsglobal.com

A Campbell Brothers Limited Company

10-JUL-07Lab Work Order #: L527901 Date Received:

PHH ARC ENVIRONMENTAL LTD.

#406 - 13251 DELF PLACE

RICHMOND BC V6V 2A2

ATTN: AARON PEDERSON

For any questions about this report please contact your Account Manager:

Jerry Holzbecher

____________________________________________

13-JUL-07 10:36

Sample ID Description

Client ID

Sampled Date

Grouping Analyte

Sampled Time

ALS LABORATORY GROUP ANALYTICAL REPORT

L527901 CONTD....

2PAGE of 5

SOIL

09-JUL-07 09-JUL-07 09-JUL-07

07-BH101-3 07-BH102-3 07-BH103-3

L527901-1 L527901-2 L527901-3

% Moisture (%)

pH (pH)

Antimony (Sb) (mg/kg)

Arsenic (As) (mg/kg)

Barium (Ba) (mg/kg)

Beryllium (Be) (mg/kg)

Cadmium (Cd) (mg/kg)

Chromium (Cr) (mg/kg)

Cobalt (Co) (mg/kg)

Copper (Cu) (mg/kg)

Lead (Pb) (mg/kg)

Mercury (Hg) (mg/kg)

Molybdenum (Mo) (mg/kg)

Nickel (Ni) (mg/kg)

Selenium (Se) (mg/kg)

Silver (Ag) (mg/kg)

Tin (Sn) (mg/kg)

Vanadium (V) (mg/kg)

Zinc (Zn) (mg/kg)

Benzene (mg/kg)

Ethylbenzene (mg/kg)

Methyl t-butyl ether (MTBE) (mg/kg)

Styrene (mg/kg)

Toluene (mg/kg)

meta- & para-Xylene (mg/kg)

ortho-Xylene (mg/kg)

Xylenes (mg/kg)

Volatile Hydrocarbons (VH6-10) (mg/kg)

VPH (C6-C10) (mg/kg)

Surrogate: 4-Bromofluorobenzene (SS) (%)

Surrogate: 2,4-Dichlorotoluene (SS) (%)

Surrogate: Fluorobenzene (SS) (%)

Acenaphthene (mg/kg)

Acenaphthylene (mg/kg)

Anthracene (mg/kg)

Benz(a)anthracene (mg/kg)

Benzo(a)pyrene (mg/kg)

Benzo(b)fluoranthene (mg/kg)

19.9 19.5 16.7

7.27 7.43

<10 <10

5.9 <5.0

75.1 72.3

<0.50 <0.50

<0.50 <0.50

36.2 34.6

13.2 12.6

55.4 52.6

<30 <30

0.055 0.056

<4.0 <4.0

23.5 22.7

<2.0 <2.0

<2.0 <2.0

<5.0 <5.0

97.7 93.4

45.5 44.5

<0.040 <0.040

<0.050 <0.050

<0.20 <0.20

<0.050 <0.050

<0.050 <0.050

<0.050 <0.050

<0.050 <0.050

<0.10 <0.10

<100 <100

<100 <100

98 99

97 109

91 91

<0.040 <0.040 <0.040

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

Physical Tests

Metals

Non-Halogenated Volatiles

Polycyclic Aromatic Hydrocarbons

13-JUL-07 10:36

Sample ID Description

Client ID

Sampled Date

Grouping Analyte

Sampled Time

ALS LABORATORY GROUP ANALYTICAL REPORT

L527901 CONTD....

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SOIL

09-JUL-07 09-JUL-07 09-JUL-07

07-BH101-3 07-BH102-3 07-BH103-3

L527901-1 L527901-2 L527901-3

Benzo(g,h,i)perylene (mg/kg)

Benzo(k)fluoranthene (mg/kg)

Chrysene (mg/kg)

Dibenz(a,h)anthracene (mg/kg)

Fluoranthene (mg/kg)

Fluorene (mg/kg)

Indeno(1,2,3-c,d)pyrene (mg/kg)

2-Methylnaphthalene (mg/kg)

Naphthalene (mg/kg)

Phenanthrene (mg/kg)

Pyrene (mg/kg)

Surrogate: d8-Naphthalene (SS) (%)

Surrogate: d10-Acenaphthene (SS) (%)

Surrogate: d10-Phenanthrene (SS) (%)

Surrogate: d12-Chrysene (SS) (%)

EPH10-19 (mg/kg)

EPH19-32 (mg/kg)

LEPH (mg/kg)

HEPH (mg/kg)

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

<0.050 <0.050 <0.050

80 86 127

100 108 156

80 89 127

80 93 143

<200 <200 <200

<200 <200 <200

<200 <200 <200

<200 <200 <200

Polycyclic Aromatic Hydrocarbons

Extractable Hydrocarbons

EPH-TUMB-FID-VA

HG-CSR-CVAFS-VA

LEPH/HEPH-CALC-VA

MET-CSR-FULL-ICP-VA

MOISTURE-VA

PAH-TUMB-H/A-MS-VA

PH-1:2-VA

VH-MET-DI-FID-VA

Reference Information

EPH in Solids by Tumbler and GCFID

CVAFS Hg in Soil by CSR SALM

LEPHs and HEPHs

Metals in Soil by ICPOES (CSR SALM)

% Moisture

PAH by Tumbler HEX/ACE with GCMS

CSR pH by 1:2 Water Leach

CSR VH by MeOH with DI GCFID

Methods Listed (if applicable):

ALS Test Code Test Description

Soil

Soil

Soil

Soil

Soil

Soil

Soil

Soil

BCMELP CSR

BCMELP CSR SALM Method 8

BC MOE LABORATORY MANUAL (2005)

BCMELP CSR SALM METHOD 8

ASTM METHOD D2794-00

EPA METHODS 3570 & 8270.

BC WLAP METHOD: PH, ELECTROMETRIC, SOIL

BCMELP CSR Analytical Method 2

Analytical Method Reference(Based On) Matrix

Extractable Hydrocarbons in Sediment/SoilThis analysis is carried out in accordance with the British Columbia Ministry of Environment, Lands and Parks (BCMELP) Analytical Method for Contaminated Sites "Extractable Petroleum Hydrocarbons in Solids by GC/FID, Version 2.1 July 1999". The procedure uses a mechanical shaking technique to extract a subsample of the sediment/soil with a 1:1 mixtureof hexane and acetone. The extract is then solvent exchanged to toluene or kept in hexane/acetone and analyzed by capillary column gas chromatography with flame ionization detection (GC/FID). EPH results include Polycyclic Aromatic Hydrocarbons (PAH) and are therefore not equivalent to Light and Heavy Extractable Petroleum Hydrocarbons (LEPH/HEPH).

This analysis is carried out using procedures from CSR Analytical Method 8 "Strong Acid Leachable Metals (SALM) in Soil", BC Ministry of Environment, Lands and Parks, 26 June 2001, and procedures adapted from "Test Methods for Evaluating Solid Waste", SW-846 Method 3050B United States Environmental Protection Agency (EPA). The sample is manually homogenized, dried at 60 degrees Celsius, sieved through a 2 mm (10 mesh) sieve, and a representative subsample of the dry material is weighed. The sample is then digested at 90 degrees Celsius for 2 hours by block digester using a 1:1 ratio of concentrated nitric and hydrochloric acids. Instrumental analysis is by atomic fluorescence spectrophotometry (EPAMethod 7000 series).

Method Limitation: This method is not a total digestion technique. It is a very strong acid digestion that is intended to dissolve those metals that may be environmentally available. By design, elements bound in silicate structures are not normally dissolved by this procedure as they are not usually mobile in the environment.

Light and Heavy Extractable Petroleum Hydrocarbons in Solids. These results are determined according to the British Columbia Ministry of Environment, Lands, and Parks Analytical Method for Contaminated Sites "Calculation of Light and Heavy Extractable Petroleum Hydrocarbons in Solids or Water". According to this method, LEPH and HEPH are calculatedby subtracting selected Polycyclic Aromatic Hydrocarbon results from Extractable Petroleum Hydrocarbon results. To calculate LEPH, the individual results for Naphthalene and Phenanthrene are subtracted from EPH(C10-19). To calculate HEPH, the individual results for Benz(a)anthracene, Benzo(b)fluoranthene, Benzo(k)fluoranthene, Benzo(a)pyrene, Dibenz(a,h)anthracene, Indeno(1,2,3-c,d)pyrene, and Pyreneare subtracted from EPH(C19-32). Analysis of Extractable Petroleum Hydrocarbons adheres to all prescribed elements of the BCMELP method "Extractable Petroleum Hydrocarbons in Solids by GC/FID" (Version 2.1, July 20, 1999).

This analysis is carried out using procedures from CSR Analytical Method 8 "Strong Acid Leachable Metals (SALM) in Soil", BC Ministry of Environment, Lands and Parks, 26 June 2001, and procedures adapted from "Test Methods for Evaluating Solid Waste", SW-846 Method 3050B United States Environmental Protection Agency (EPA). The sample is manually homogenized, dried at 60 degrees Celsius, sieved through a 2 mm (10 mesh) sieve, and a representative subsample of the dry material is weighed. The sample is then digested at 90 degrees Celsius for 2 hours by block digester using a 1:1 ratio of concentrated nitric and hydrochloric acids. Instrumental analysis is by inductively coupled plasma - optical emission spectrophotometry (EPA Method 6010B).

Method Limitation: This method is not a total digestion technique. It is a very strong acid digestion that is intended to dissolve those metals that may be environmentally available. By design, elements bound in silicate structures are not normally dissolved by this procedure as they are not usually mobile in the environment.

This analysis is carried out gravimetrically by drying the sample at 105 C for a minimum of six hours.

Polycyclic Aromatic Hydrocarbons in Sediment/SoilThis analysis is carried out using procedures adapted from "Test Methods for Evaluating Solid Waste" SW-846, Methods 3570 & 8270, published by the United States Environmental Protection Agency (EPA). The procedure uses a mechanical shaking technique to extract a subsample of the sediment/soil with a 1:1 mixture of hexane and acetone. The extract is then solvent exchanged to toluene. The final extract is analysed by capillary column gas chromatography with mass spectrometric detection (GC/MS). Surrogate recoveries may not be reported in cases where interferences from the sample matrix prevent accurate quantitation.

This analysis is carried out in accordance with procedures described in the BC WLAP method: pH, Electrometric, Soil and Sediment. The procedure involves mixing the dried (at <60°C) and seived (10 mesh/2mm) sample with deionized/distilled water at a 1:2 ratio of sediment to water. The pH of the solution is then measured using a standard pH probe.

This analysis involves the extraction of a subsample of the sediment/soil with methanol. Aliquots of the methanol extract are then analyzed for VolatileHydrocarbons (VH) by capillary column gas chromatography with flame-ionization detection (GC/FID). The methanol extraction and VH analysis are carried out in accordance with the British Columbia Ministry of Environment, Lands and Parks (BCMELP) Analytical Method for Contaminated Sites

13-JUL-07 10:36

L527901 CONTD....

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VOC7-MET-DI-MS-VA

VPH-MET-DI-CALC-VA

XYLENES-CALC-VA

Reference Information

BTEX by MeOH with DI GCMS

CSR VH by MeOH with DI GCFID

CSR VOC7 by MeOH with DI GCMS

Methods Listed (if applicable):

ALS Test Code Test Description

Soil

Soil

Soil

EPA 8260b & 524.2

BC MOE LABORATORY MANUAL (2005)

EPA 8260B & 524.2

Analytical Method Reference(Based On)

** Laboratory Methods employed follow in-house procedures, which are generally based on nationally or internationally accepted methodologies.The last two letters of the above ALS Test Code column indicate the laboratory that performed analytical analysis for that test. Refer to the list below:

Matrix

Laboratory Definition Code Laboratory Location Laboratory Definition Code Laboratory Location

VA ALS LABORATORY GROUP - VANCOUVER, BC, CANADA

"Volatile Hydrocarbons in Solids by GC/FID" (Version 2.1 July 1999).

Volatile Organic Compounds (VOC) are extracted from sediment or soil with methanol, following a procedure from the British Columbia Ministry of Water Land and Air Protection (BCWLAP) Analytical Method for Contaminated Sites "Volatile Hydrocarbons in Solids by GC/FID" (Version 2.1 July 1999). Aliquots of the extract are analyzed by direct injection capillary column gas chromatography with mass spectrometric detection (GC/MS), usingprocedures adapted from "Test Methods for Evaluating Solid Waste" SW-846, Method 8260B, published by the United States Environmental Protection Agency (EPA). Surrogate recoveries may not be reported in cases where interferences from the sample matrix prevent accurate quantitation.

These results are determined according to the British Columbia Ministry of Environment, Lands, and Parks Analytical Method for Contaminated Sites "Calculation of Volatile Petroleum Hydrocarbons in Solids or Water" (Version 2.1, July 20, 1999). According to this method, the concentrations of specific Monocyclic Aromatic Hydrocarbons (Benzene, Toluene, Ethylbenzene, Xylenes and Styrene) are subtracted from the collective concentration of Volatile Hydrocarbons (VH) that elute between n-hexane (nC6) and n-decane (nC10). Analysis of Volatile Hydrocarbons adheres to all prescribed elements of BCMELP method "Volatile Hydrocarbons in Solids by GC/FID" (Version 2.1, July 20, 1999).

Calculation of Total Xylenes

Total Xylenes is the sum of the concentrations of the ortho, meta, and para Xylene isomers. Results below detection limit (DL) are treated as zero. The DL for Total Xylenes is set to a value no less than the square root of the sum of the squares of the DLs of the individual Xylenes.

GLOSSARY OF REPORT TERMSSurr - A surrogate is an organic compound that is similar to the target analyte(s) in chemical composition and behavior but not normally detected in enviromental samples. Prior to sample processing, samples are fortified with one or more surrogate compounds.The reported surrogate recovery value provides a measure of method efficiency. mg/kg (units) - unit of concentration based on mass, parts per millionmg/L (units) - unit of concentration based on volume, parts per millionN/A - Result not available. Refer to qualifier code and definition for explanation

Test results reported relate only to the samples as received by the laboratory.UNLESS OTHERWISE STATED, ALL SAMPLES WERE RECEIVED IN ACCEPTABLE CONDITION.Although test results are generated under strict QA/QC protocols, any unsigned test reports, faxes, or emails are considered preliminary.

ALS Laboratory Group has an extensive QA/QC program where all analytical data reported is analyzed using approved referenced procedures followed by checks and reviews by senior managers and quality assurance personnel. However, since the results are obtained from chemical measurements and thus cannot be guaranteed, ALS Laboratory Group assumes no liability for the use or interpretation of the results.

L527901 CONTD....

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PROJECT NAMENO.:

P.O. NO.: QUOTE NO.:

DATE ALS SUBMITTED: CONTACT:

LAB USE ONLY

SAMPLE IDENTIFICATION DATE TILIE COLLECTED '

Y M D MATRIX NOTES

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stage 2 preliminary site investigation

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