1. The Independent Environmental Monitoring Agency The Independent Environmental Monitoring Agency

2. Regulatory Instruments & Agreements for BHP Ekati Mine n DIAND mineral claims, land lease & land use permits n NWT Water Board License n Authorisation under Fisheries Act- Fish Habitat Compensation Fund n Navigable Waters Protection Act Approval n Natural Resources Canada Explosives Permits n Environmental Agreement n Socio-Economic Agreement with GNWT n Impact and Benefit Agreements with Aboriginal Organizations

3. n n A condition of mine approval n n Signatories: BHP, NWT, Canada n n Legally binding and enforceable n n Involvement of Aboriginal organisations n n BHP to monitor effects on air quality, aquatic effects and wildlife n n Full consideration of Traditional Knowledge and Scientific Knowledge n n Responsibility towards Aboriginal organisations and public Environmental Agreement

4. Purpose of the Environmental Agreement n To respect and protect land, water and wildlife and the land base economy, essential to the way of life and well being of Aboriginal Peoples; n To facilitate the use of holistic and ecosystem based approaches for the monitoring, management, and regulation of the project; n To provide advice to BHP to assist BHP in managing the project consistent with these purposes (Cont’d…)

5. Purpose of the Environmental Agreement (cont’d) n to maximize the effectiveness and co-ordination of environmental monitoring and regulation of the Project; and n to facilitate the effective participation of the Aboriginal Peoples and the general public in the achievement of the above purposes;

6. n n Independent public watchdog for environmental management at EKATI™ n n Mandate set by the Environmental Agreement n n Seven directors: four appointed by Aboriginal Organizations, three appointed by BHP, Canada, and NWT n n Public registry and resource centre for EKATI™ Project The Monitoring Agency

7. Board Membership n Dr. Fikret Berkes--Director-appointed by the North Slave Metis Alliance, expertise in Traditional Knowledge research and its application in resource management; n Dr. Peter McCart--Director- appointed by Canada/NWT/BHP, expertise in fisheries and aquatic ecosystems; n Dr. François Messier-Secretary/Treasurer- appointed by Canada/NWT/ BHP, expertise in wildlife biology;

8. Board Membership (cont’d) n Dr. Tony Pearse-Director- appointed by Dogrib Treaty 11 Tribal Council, expertise in geology and mineral development; n Red Pedersen-Chairperson-appointed by Kitikmeot Inuit Association, former Minister of Renewable Resources, Government of the NWT; and n Dr. Bill Ross-Vice-Chairperson-appointed by Canada/NWT/BHP, expertise in environmental assessment and cumulative effects.

9. Mandate of the Agency n To provide an integrated approach to achieving the purpose of the Agreement; n a public watchdog of the regulatory process and the implementation of this Agreement;

10. Mandate of the Agency (cont’d) n To compile and analyze relevant Environmental Quality data in order to review, report or make recommendations concerning: –environmental effects monitoring, including short and long-term, as well as, cumulative impacts –government and BHP reports on compliance, including the BHP Annual Reports and Impact Reports (every 3 years) –environmental plans and programs, including the integration of TK and experience of Aboriginal Peoples –monitoring, regulatory and related management programs and activities of Canada and the GNWT

11. Mandate of the Agency (cont’d) n an intervenor in regulatory and other legal processes respecting environmental matters, as well as, dispute resolution process under this Agreement; n To provide an accessible and public repository of environmental data, studies and reports relevant to the Monitoring Agency n programs for the effective dissemination of information to the Aboriginal Peoples and the general public about the Project, its’ monitoring and regulation.

12. Meeting These Goals n The Agency is a registered Society; its membership includes Dogrib Treaty 11, Akaitcho Treaty 8 (Yellowknife Dene First Nation & Lutsel K’e First Nation), North Slave Metis Alliance, Kitikmeot Inuit Association, BHP, DIAND and GNWT. n Meetings and Annual General meetings n Publications, including Annual Reports, Aboriginal Issues Report and Ekati Monitor newsletter

13. Meeting the Goals through Co-operation n Mechanism which facilitate an integrated approach: –Organised an inter-regulatory meeting to discuss results of 1999 seepage survey, April 2000 –Co-hosted a TK Workshop, Dec. 1998 in N’Dilo –BHP hosts Ekati Environmental Management Workshops for the Aquatic and Wildlife Effects Monitoring Programs –Inter-Agency Coordinating Team to discuss the requirements of BHP’s permits, licenses and the Agreement

14. Seepage Survey Meeting April 26 th 2000

15. Year in Review Third year: April 1, 1999 - March 31, 2000 n Second AGM of the Society held & 1998-1999 Annual Report of the Agency released n Comments on BHP’s Annual Report, Framework for Impact 2000,MVEIRB terms of reference, amendment requests, seepage,… n Facilitate discussion on Traditional Knowledge Working Group n Provide technical expertise on Fish Habitat Compensation, BHP monitoring programs and TK projects n Prepared BHP Environmental Agreement Compliance Report

16. Year in Review (Continued) n Participate in regulatory process n Site visit to EKATI ™ n Update of website n Ekati Monitor Newsletter continued publication n Hiring of full-time staff n Changing office locations n Holiday Public Open House

17. Annual Report: Key Issues Independent Environmental Monitoring Agency 1999 - 2000

18. Annual Report Contents: n Introduction n Year in Review n Listening to Our Members- Macleod Institute Evaluation Report n Assessment of Environmental Management at Ekati, including BHP Environmental Agreement Compliance Report n Key Issues: TK, wildlife, aquatic, waste, cumulative effects & project expansion n Financial Statements & Summary of 1999- 2001 Core Budget and Work Plan

19. Recommendations on BHP Annual Report & OEMP n BHP’s 1999 Annual Report: n  BHP’s future annual reports should provide a more considered discussion of the findings of its monitoring and research programs, the significance of the results for environmental management, and describe how lessons learned have modified and will modify the individual programs and/or the Environmental Management System. n  Future annual reports should also include an updated, consolidated and comprehensive summary of the mine development schedule, as currently planned, over the lifetime of the project, not just for the next year. n  Future annual reports should also include an updated, consolidated and comprehensive summary of the mine development schedule, as currently planned, over the lifetime of the project, not just for the next year. n OEMP: BHP should institute a process for evaluating the results of the separate plans and programs that comprise the Operating Environmental Monitoring Program. The evaluations could be conducted at regular intervals (say, every three years), and should be conducted by an independent evaluator. The results of the evaluations should be published in the annual report. BHP should institute a process for evaluating the results of the separate plans and programs that comprise the Operating Environmental Monitoring Program. The evaluations could be conducted at regular intervals (say, every three years), and should be conducted by an independent evaluator. The results of the evaluations should be published in the annual report. BHP should develop and institute QA/QC procedures for the collection of aquatic baseline data to ensure consistency and quality of data collected by different consultants. A review of past baseline surveys should also be made to demonstrate that they have been conducted under equivalent protocols. BHP should develop and institute QA/QC procedures for the collection of aquatic baseline data to ensure consistency and quality of data collected by different consultants. A review of past baseline surveys should also be made to demonstrate that they have been conducted under equivalent protocols.

20. Traditional Knowledge n Phase II Studies- various stages of completion: –KIA- completing computer mapping for land-use planning; –Lutsel K’e-collecting knowledge for computer mapping; –Yellowknives- Weledeh report being revised; –NSMA- negotiation of study agreement; and –Dogrib- vegetation mapping.

21. Phase II Studies

22. Traditional Knowledge (Continued) n Application of Traditional Knowledge in BHP’s environmental management- e.g. Elder visits-road, airstrip, fish- out, wolverine studies n TK Working Group- still in creation stage

23. Recommendations: TK n 1.The Agency recommends that Aboriginal organisations and BHP continue to collaborate in establishing an Ekati Traditional Knowledge Working Group. The Agency will assist and coordinate, as requested, with such initiatives. n n 2.The Agency recommends that BHP document the inputs of Elders and Lands and Environment Committees who collaborate with BHP personnel at the project site. Information provided to BHP from the Elders, the way the information is incorporated in the environmental management of the Mine, as well as, the comments, observations and recommendations put forward by the Elders during the site visits should be recorded in the management plans reports.

24. Wildlife Effects n Elders’ input and traditional knowledge is being used to develop wildlife-friendly roads and airstrips n Overall, the Agency believes WEMP must be implemented consistently to be effective in order to assess immediate impacts of the mine on wildlife. Analysis of data needs to be presented clearly. n Assessing cumulative effects of the Bathurst caribou herd should be a coordinated effort, with GNWT as the lead.

25. Recommendations:Wildlife

26. Aquatic Effects n Aquatic Effects Monitoring Program- concentration of metals (i.e. copper & aluminium) may be increasing. n Special Effects Monitoring Program- –Panda Diversion Channel Monitoring Studies- fish are using the channel and it was better maintained in 1999. –Kodiak Lake Sewage Effects Study- pumping oxygen in winter is still needed, but it is working to decrease effects of depositing sewage into lake. n Snow Chemistry- needs to be studied more effectively.

27. Aquatic Effects (Continued) n Fish Out Studies- DFO needs to analyse data. n Lake Habitat Compensation Fund- project proposals are being assessed by Stakeholder Advisory Committee and DFO. Agency has offered technical expertise. Overall, the Agency notices a trend of increasing metals in the Koala drainage system. BHP, the regulators and the Agency will have to watch these levels, snow chemistry and waste rock seepage information closely to ensure metal concentrations are not increasing and will not adversely effect the aquatic environment. the aquatic environment.

28. Recommendations: Aquatic Effects 1. Initiate a study to determine relative contribution of nutrients and contaminants from various potential sources. BHP suggested abandoning the Aquatic Effects Monitoring Program sampling program on Lac de Gras at the Aquatic Effects Monitoring Program Workshop, February 2000. The Agency recommends keeping the sampling program and possibly changing it to better assess the effects of the Ekati Project separately from those of the up-coming Diavik Project. 1. Initiate a study to determine relative contribution of nutrients and contaminants from various potential sources. BHP suggested abandoning the Aquatic Effects Monitoring Program sampling program on Lac de Gras at the Aquatic Effects Monitoring Program Workshop, February 2000. The Agency recommends keeping the sampling program and possibly changing it to better assess the effects of the Ekati Project separately from those of the up-coming Diavik Project. 2. The Special Effects Monitoring Program for Kodiak Lake is scheduled to end with the 1999 studies, after which Kodiak Lake will, presumably, join the ranks of lakes included in the Aquatic Effects Monitoring Program. Our recommendation is that Kodiak Lake be given a special status, and assigned a level of study detail somewhere between these two monitoring programs, especially with regard to studies of nutrient loadings, sediment quality, primary production and fish. 2. The Special Effects Monitoring Program for Kodiak Lake is scheduled to end with the 1999 studies, after which Kodiak Lake will, presumably, join the ranks of lakes included in the Aquatic Effects Monitoring Program. Our recommendation is that Kodiak Lake be given a special status, and assigned a level of study detail somewhere between these two monitoring programs, especially with regard to studies of nutrient loadings, sediment quality, primary production and fish. 3. DFO should analyze and report on the results and significance of the fish-out studies it required. 3. DFO should analyze and report on the results and significance of the fish-out studies it required.

31. Waste from the Mine n Waste Rock Management- –Seepage Survey shows acid water near waste rock piles– need more investigation into the cause of acid –BHP should implement the Operational Geochemical Testing Program n Tailings Management n Kimberlite Toxicity Studies

32. Recommendations: Waste Rock Management n 1. BHP should undertake the necessary further mineralogical and geochemical tests to better define and resolve the emerging water quality issues associated with the development of waste rock piles on site. The MVLWB[1] should not amend BHP’s class A licence to accommodate the low pH values currently observed in waste rock seepage at the site. The causes of the poor quality drainage should be properly determined, and the implications for management properly considered, before contemplating an amendment to the licence. [1] The new Mackenzie Valley Land and Water Board has assumed the administration of BHP’s class A water licence from the NWT Water Board as of April 1, 2000. The MVLWB[1] should not amend BHP’s class A licence to accommodate the low pH values currently observed in waste rock seepage at the site. The causes of the poor quality drainage should be properly determined, and the implications for management properly considered, before contemplating an amendment to the licence. [1] The new Mackenzie Valley Land and Water Board has assumed the administration of BHP’s class A water licence from the NWT Water Board as of April 1, 2000.[1]

33. Cumulative Effects n Potential impacts on the Bathurst Caribou Herd n Potential impacts on the drainage systems, for example the Coppermine drainage system n Framework for Managing Cumulative Effects in the NWT- Dec. conference, created a Working Group. n Need to design site-specific monitoring to be useful for regional cumulative effects monitoring

34. Recommendations: Cumulative Effects n Caribou Cumulative Effects Workshop: The Agency recommends that the Government of the Northwest Territories, in consultation with the Government of Nunavut, for a workshop for the development and implementation of a cumulative effects monitoring program for the Bathurst caribou herd. The Agency recommends that the Government of the Northwest Territories, in consultation with the Government of Nunavut, for a workshop for the development and implementation of a cumulative effects monitoring program for the Bathurst caribou herd.

35. Project Expansion n BHP submitted a project description to the MVEIRB for the proposed Beartooth, Pigeon and Sable kimberlite pipes in Nov. of 1999. n Terms of Reference for the environmental assessment were issued in Dec. 1999. n The Agency prepared the BHP Environmental Agreement Compliance Report, as requested by the terms of reference. n BHP’s environmental assessment document was submitted to MVEIRB in April 2000. The MVEIRB set deadlines for its assessment. Technical comments are due Aug. 18 th and the public registry closes Sept. 2 nd.

37. Financial Report The Independent Environmental Monitoring Agency 1999-2000

38. Summary of Work Plan 1999-2001 n Greater emphasis on community interaction and public communication; n Continue tracking environmental issues for making improvements and problem-solving; n Continue meeting with aboriginal organisations, regulators and BHP; n Maintain expanding resource library, website & newsletter. n New project proposals require more resources; and, n Building relationships with new Boards.

39. Focus as per Work Plan n The Consultations and communications with Aboriginal communities and organizations. n The integration of Traditional Knowledge into environmental management at Ekati. n Facilitate the use of integrated regional (ecosystem based) approaches for monitoring, management and regulation of the Project. n Project changes through applications for new leases and licence amendments.

40. What to look for in the near future? n 1999-2000 Agency Annual Report & new Ekati Monitor Newsletter n Comments on Impact 2000 Report- 3 year comprehensive report of environmental management at Ekati n Proposed Sable, Pigeon and Beartooth Expansion Project- currently under environmental assessment by the Mackenzie Valley Environmental Impact Review Board

41. Past vs. Present Core Budget 1999-2001 Year Funds Agreement Source Year Funds Agreement Source 1997-1998$450,000pre-set DIAND,GNWT, BHP 1998-1999$450,000pre-set DIAND,GNWT, BHP 1999-2000$493,600negotiated BHP 2000-2001$461,900negotiated BHP

42. Financial Statement:1999-2000 n Contributions ($K) –Core Budget (BHP)493.6 –Moving (BHP) 13.9 –Rent & equipment leases(BHP) 11.9 –Fund balance, 1999 13.8 –On the Job Program Training (GNWT) 3.4 536.6 n Expenditures ($K) –Office Operations 70.3 –Consultation + Communications 79.2 –Board Support146.2 –Travel Expenses 58.2 –Outside Contracts (Office mgmt inc.) 63.5 –Staff 55.1 472.5

43. Budget Comparison Operations ($K) 1997 1998 1999 1997 1998 1999 n Rent, utilities, insurance 18 28 10.6 n Auditing & bookkeeping 6 7 7.8 n Office equipment 7 6 11.1 n Supplies & postage 6 7 2.3 n Communications 2 37 46.4 n Community consultation 0 27 38.4 Total 39 112 116.6

44. 1997 1998 1999 1997 1998 1999 n Travel, hotel & meal 69 66 57.7 n Honouraria 152 204 146.1 Total 221 270 203.8 Budget Comparison Board Support ($K)

45. Budget Comparison Office Management & Contracts ($K) 1997 1998 1999 1997 1998 1999 n Management by consultant 105 119 80.8 n Management by staff - - 50.3 n Other Contracts 10 10 9.6 Total 115 129 140.7

46. Agency Contact Information Manager, Alexandra Thomson Communications Administrator, John Holman 5004 Franklin Ave. Lower Level of 50/50 Mini-Mall Lower Level of 50/50 Mini-Mall p) 669-9141, f) 669-9145 monitor@yk.com n Web site: “www.monitoringagency.net”