1. Fisheries and Oceans Canada Intervention to the Nunavut Water Board on the Type A Water License Renewal for the Nanisivik Mine Project Fisheries and Oceans Canada (DFO ) Arctic Bay, Nunavut February 23, 2009

2. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 2 DFO VISION: Excellence in service to Canadians to ensure the sustainable development and safe use of Canadian waters. DFO MISSION: It is our mission, as DFO employees, to deliver to Canadians the following outcomes: –Safe and Accessible Waterways; –Healthy and Productive Aquatic Ecosystems; and –Sustainable Fisheries and Aquaculture. CONTEXT

3. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 3 SECTORS OF DFO Fisheries and Aquaculture Management Fisheries and Aquaculture Management Oceans, Habitat and Species at Risk Oceans, Habitat and Species at Risk Human Resources and Corporate Services Human Resources and Corporate Services Policy Policy Science Science Communications Communications

4. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 4 Oceans, Habitat and Species at Risk Habitat Management Program (HMP): HMP reviews development proposals for assessment of impacts to fish and fish habitat pursuant to the Fisheries Act and the Habitat Policy. Majority of proposals are reviewed under Section 35 but other provisions may also apply. If there are no residual effects after mitigation is applied, proponent may proceed with works/undertakings without a Fisheries Act Section 35(2) authorization.

5. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 5 HABITAT MANAGEMENT PROGRAM (HMP) If there are residual effects to fish habitat after standard mitigation has been applied then a Fisheries Act Section 35(2) authorization may be required. An environmental assessment under the NLCA would be conducted prior to issuing an authorization. DFO determines whether an authorization can be issued. If there are residual effects to fish habitat after standard mitigation has been applied then a Fisheries Act Section 35(2) authorization may be required. An environmental assessment under the NLCA would be conducted prior to issuing an authorization. DFO determines whether an authorization can be issued. DFO does do not Authorize a project or activity, only the Harmful Alteration, Disruption or Destruction (HADD) fish habitat resulting from the project. There is no requirement to request authorization. DFO does do not Authorize a project or activity, only the Harmful Alteration, Disruption or Destruction (HADD) fish habitat resulting from the project. There is no requirement to request authorization.

6. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 6 Human Resources and Corporate Services Real Property Management Branch: Manages infrastructure such as Arctic Port facilities, Coast Guard bases, Light stations, etc. Manages infrastructure such as Arctic Port facilities, Coast Guard bases, Light stations, etc. Administers divestitures of DFO federal real property Administers divestitures of DFO federal real property

7. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 7 DFO Real Property DFO administers the Dock Area (30.36 Acres) and the lease Property leased to Nanisivik Mines Limited from 1976 to 2003

8. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 8

9. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 9 Closure and Reclamation Plan Tank Farm and its Facility, Dock Area 7,500m 3 of hydrocarbon contaminated soil would be excavated and relocated. Anticipation of ownership transfer of tank farm facility to third party If transfer does not happen, tank farm and its facility will be removed and remediated. Fuel farm containment berm liner would be removed and disposed of.

10. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 10 Closure and Reclamation Tank Farm and its Facility The hydrocarbon contaminated soils were excavated and relocated to the underground mine workings. Tank farm remains in place.

11. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 11 Land Transfer August 2007 - Nanisivik will be new docking and fuelling facility February 2008 – DFO advised Applicant of land transfer to DND February 2008 – DFO requested update on works and expected date for removal of fuel tanks

12. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 12 Land Transfer June 2008 – DND inspected two largest tanks, Numbers 101 & 102 February 2009 – DND expressed disinterest in using the tank farm. DND recommended its full removal and remediation. February 2009 – CCG also does not have interest in using tank farm. CCG supported DND recommendation

13. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 13 Recommendation Tank Farm and its Facility DFO recommends that the tank farm and its facility be removed and that the soils underneath be remediated.

14. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 14 Recommendation Tank Farm and its Facility DFO recommends that the removal and remediation occur prior to December 31, 2009 with a restricted decommissioning period from August 15 to September 15, 2009.

15. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 15 Recommendation Tank Farm and its Facility DFO recommends that the Applicant provide details on the reclamation of the tank farm and its facility for review.

16. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 16 Conclusion It is anticipated that the recommendations will adequately address the identified concerns. It is anticipated that the recommendations will adequately address the identified concerns. DFO’s comments and recommendations are based on our areas of expertise and jurisdiction. We trust they are helpful to the Board as they consider the project before them. DFO’s comments and recommendations are based on our areas of expertise and jurisdiction. We trust they are helpful to the Board as they consider the project before them.

17. CONTEXT HABITAT MANAGEMENT PROGRAM HUMAN RESOURCES AND CORPORATE SERVICES DFO REAL PROPERTY DOCK AREA CLOSURE AND RECLAMATION LAND TRANSFER RECOMMENDATION CONCLUSION 17 Questions?