1. Presentation to Synergy Alberta Conference 2008 October 28 th, 2008 By Laurie J. Danielson Executive Director

2. Presentation Outline Overview of NCIA; AENV Cumulative Effects Initiative; –Air –Water Fort Air Partnership and Air Monitoring; Regional Groundwater Management (AENV); Regional Noise Management (ERCB); and Regional Odour Complaint Response (AENV).

3. Who We Are The Northeast Capital Industrial Association (NCIA) is a not-for-profit cooperative representing industry located in the municipalities of: –Strathcona County, –Sturgeon County, –the City of Fort Saskatchewan and –Lamont County. Canada’s largest chemical and petro-chemical processing centre.

4. Who We Are Large integrated global chemical and petro-chemical industries, to industrial service companies. Employ approximately 3,200 people (not including contract employees) and $416 million spent on goods and services in the region annually, not including utilities and feed stocks. Current Industrial Investment exceeds $25 Billion. $20 to $40 Billion in investment possible over the next 10 to 20 years.

5. Who We Are Agrium Fort Saskatchewan Agrium Redwater Air Liquide Canada Aux Sable Canada BA Energy BP Canada Energy Company Dow Chemical Canada Inc. Enbridge Pipelines Evonik Degussa Canada Guardian Chemicals Gulf Chemical & Metallurgical Hazco Environmental Services Keyera Energy KinderMorgan Canada Marsulex ME Global North West Upgrading Petro-Canada Praxair Canada Provident Energy Shell Canada Shell Chemicals Canada Sherritt International StatoilHydro Sulzer Metco (Canada) Total E&P Canada Umicore Canada

7. NCIA Vision To be recognized and respected as an association that promotes sustainable industrial growth and high quality of life through environmental, socio-economic, and public safety programs.

8. NCIA Mandate The NCIA Board and Executive Committee are comprised of business leaders and professionals who represent the interests of industry in Alberta’s Heartland Area. As the respected voice of industry, NCIA will work with other associations, government organizations, and community groups, at the provincial, regional and local levels to address environmental, health, safety, infrastructure and community issues. By these actions, NCIA seeks to ensure that the community understands, appreciates and welcomes the benefits and contributions provided by industry located in the region to community members.

9. Board of Directors Executive Committee Public Affairs Committee Safety, Security & Emergency Response Committee Socio-economics Impacts Committee Environmental & Health Committee Industry Representatives on: FAP NSWA Air Quality Objectives Working Group Upgrader sub-committee Industry Representatives on: NR CAER Industry Representatives on: AIHA Eco-Industrial Master Plan IHCARI Land Trust Society Education Committee Audit Committee Executive Director

10. Cumulative Effects Management On the October 2, 2007 Alberta’s new cumulative effects management framework was announced. It: –Recognized the current approach to managing and mitigating the impacts of individual projects as being limited in its ability to address the cumulative effects of various individually regulated projects. –Recognized that the 470-square kilometer area just northeast of Edmonton known as Alberta’s Industrial Heartland is the site of significant proposed industrial development. –The Minister for Alberta Environment, the Honourable Rob Renner, tasked advisory committees to advise him on new integrated frameworks for water and air for the region. –These Frameworks are part of the government’s broad new approach to address cumulative effects on the environment. –Will be input to the Capital Region Integrated Growth Management Plan.

11. Regional Projects in the Heartland – Cumulative Effects: AIR Vision: Economic and social development in the Industrial Air Management Area within the natural carrying capacity of the environment. Mission: To develop a world-class air management system that achieves the vision.

12. Regional Projects in the Heartland – Cumulative Effects: AIR Participating with key stakeholders in Government, Municipalities, other industries and NGO’s NCIA and its members have contributed to the development of a framework for air management in the heartland. The framework will focus on NOx and SO 2 annual emissions in the Air Management Area (see next slide). The key design elements of the framework include: –Regional Approach –Meet the airshed management thresholds –Sustainable, system-based thinking The Minister is now considering all of the inputs provided by the Air Working Group and will render a decision on the framework shortly.

13. 1.Part of the Edmonton Census Metropolitan Area. 2.Contains existing and proposed air emissions sources and increasing urban emissions. 3.A larger area than the Industrial Heartland will be used, comprising the city of Fort Saskatchewan; parts of Lamont, Sturgeon and Strathcona counties; parts of Elk Island National Park; and the City of Edmonton east of 50 th Street. 4.This is due to potential impact of sources outside the “Industrial Heartland” on air quality of the area, and also potential impact of the Industrial Heartland emissions on a broader region. 5.The map at right outlines the IAMA. 6.Industrial facilities within this IAMA that emit more than ~100 tonnes/year of NO X or SO 2 will be affected by the Air Management Framework.

14. Regional Projects in the Heartland – Cumulative Effects: Water Vision: A world-class integrated water management system within the North Saskatchewan River to sustainably support the environment, and social and economic development.

15. Regional Projects in the Heartland – Cumulative Effects: Water Municipalities, Provincial Government and Industry in the broader Heartland area (from Devon to Pakan) are working together to responsibly manage the North Saskatchewan River (NSR) quality and quantity. In December of 2007 the government issued the Water Framework for the region which provides over arching principals for the management of river water from Devon to Pakan. Link to framework: http://www.environment.alberta.ca/2276.html

16. NSR from Devon to Pakan

17. Regional Projects in the Heartland – Cumulative Effects: Water PHASE 1 (NOW TO 2009) Phase 1 will allow for short term needs to be met while starting a process to build toward the Industrial Heartland integrated supply network. An Oversight Committee will be created to begin working on governance and funding to implement the Framework. An Implementation Committee will create an operative Framework Implementation Plan. Projects currently in the regulatory queue will go ahead. During this timeframe steps and planning to improve water quality will continue. There will be no further degradation in water quality in the North Saskatchewan River.

18. Regional Projects in the Heartland – Cumulative Effects: Water PHASE 2 (2009 – 2012) Phase 2 will create a foundation for long term sustainability. By this phase, new and future planned upgraders will have moved through the regulatory phase. Detailed engineering designs and studies will be completed for the Framework. The governance structure will be functioning.

19. Regional Projects in the Heartland – Cumulative Effects: Water PHASE 3 (2012 – 2041) Phase 3 will ensure sustainability. Within this timeframe it is expected that water management for the Industrial Heartland and Capital Region will be world-class. The Framework will result in continuous improvement. Water quality in the North Saskatchewan will have improved.

20. Regional Projects in the Heartland – Cumulative Effects: Water Industry will have secure long term access to water to continue to be economically viable. Municipalities (business and residential) need growing amounts of water to sustain and grow. The river is a valuable resource that needs to be managed and protected. NCIA supports the governments Water Framework and is continuing to provide input to government and all working teams established under that framework, on how the recommendations can best be implemented to ensure sustainable economic growth in the Industrial Heartland region.

21. Fort Air Partnership Fort Air Partnership (FAP) is a registered not- for-profit society established in 1997 to operate an air monitoring network in a 4,500 square kilometer area that includes: –Fort Saskatchewan, Gibbons, Bon Accord, Bruderheim, Lamont, Redwater, Waskatenau, Thorhild and Elk Island Park. In November 2000, FAP became the fourth airshed in Alberta recognized by the Clean Air Strategic Alliance (CASA).

22. Fort Air Partnership FAP is a multi-stakeholder group with members from industry, government, health care, and the public who live in the airshed. FAP is responsible for Ambient Air Monitoring and reporting to AENV. Link to FAP Website: http://www.fortair.org/

23. Regional Projects in the Heartland – Groundwater Management NCIA, in concert with the Alberta Government, began a study of the Beverly Channel Aquifer in 2002. The Regional Groundwater Investigation project is intended to provide a framework for regional scale management of groundwater quality and quantity issues in the Industrial Heartland area. The focus of this project is to develop management tools to address groundwater quality issues. Many of these tools could be used to address groundwater quantity issues as well.

26. Regional Projects in the Heartland – Groundwater Management The project has been subdivided into four phases. Phase I (Completed in 2004): Development of a database for hydrogeological data storage and subsequent analysis. Spatial analysis of existing data to determine where the data gaps are. Recommendations for drilling locations required to address the aforementioned data gaps.

27. Regional Projects in the Heartland – Groundwater Management Phase II (completed in 2006): Development and implementation of a field drilling program to obtain lithological and hydrochemical information in areas where data gaps were identified. Interpretation of existing and new data to develop a regional hydrogeologic framework for the project area.

28. Regional Projects in the Heartland – Groundwater Management Phase III (In Progress): Development of a numerical groundwater flow and contaminant transport model. Calibration and verification of the model. Determination of strategic locations for the permanent regional groundwater monitoring system using the model.

29. Regional Projects in the Heartland – Groundwater Management Phase IV: Development and implementation of the regional groundwater monitoring system, long term monitoring strategy, and response plan.

30. Regional Projects in the Heartland – Noise Management Regional Noise Management Plan (RNMP) with ERCB. NCIA and the ERCB (formerly the EUB) have been working together on finding a practical approach to ensuring that industrial noise levels comply with the EUB’s Noise Control Directive 038. NCIA is developing a Regional Noise Management Plan in collaboration with the ERCB to address noise control.

31. Regional Projects in the Heartland – Noise Management The Framework NCIA members participating in the RNMP are required to implement the following framework: NOISE CONTROL COMMITTMENT STATEMENT: NCIA member-company senior management sets clear expectations for management of noise compliance at their site(s).

32. Regional Projects in the Heartland – Noise Management SITE NOISE MANAGEMENT PLAN: NCIA member-company develops and implements a documented SITE NOISE MANAGEMENT PLAN (NMP) that integrates occupational and environmental objectives. The plan uses an auditable management system model and includes the following elements at minimum: –Source Identification –Assessment (routine and planned) –Abatement strategies

33. Regional Projects in the Heartland – Noise Management SELF AUDITS: NCIA member-company –Surveys to confirm program effectiveness –Verification process to track and report on site implementation progress DISCLOSURE OF IMPROVEMENT INITIATIVES TO NCIA: NCIA member-company shares results of annual NMP implementation with NCIA on annual basis REGIONAL NOISE MODEL: Support the development of a Regional Noise Model or alternate noise tracking program for region (RFP issued and proposals received in 2008). PUBLIC COMMUNICATION: Communicate and engage public feedback on the RNMP.

34. Regional Projects in the Heartland – Noise Management Compliance Compliance with D-38 is to be demonstrated through conformance with the RNMP Compliance to the RNMP will be determined on a basis of “Due Diligence”. –Due Diligence – taking all reasonable steps to reduce a given impact –Compliance will be based on: Regional Model baseline Receptor impact RNMP conformance

35. Regional Projects in the Heartland – Odour Complaints The Industrial Heartland Odour Complaint Protocol (established in May of 2004) is a responsible and cooperative program between industry and regulators. Objectives –To better understand the extent, nature and reasons for odour complaints in the Industrial heartland area by having industry and the regulators cooperate in the implementation of the protocol, and to provide a timely, more efficient approach for resolution of the complaints. –To have industry cooperate with Alberta Environment (AENV) on requests for field checks of odour complaints received by both AENV and the Energy Resources Conservation Board (ERCB) where the source is known. –To maintain a database for tracking the odour complaint calls received along with the resulting follow-up. –The tracking will be for statistical purposes and an Annual report will be generated.

36. Regional Projects in the Heartland – Odour Complaints Responsibilities Industry will provide a timely response to AENV’s request for field checking odour complaints in the Alberta Industrial Heartland. This Protocol is only intended to follow up odour complaints. The Industrial Heartland is divided into 5 areas of responsibility: –1) Agrium – Redwater area –2) Dow – East Fort Saskatchewan area –3) Sherritt International – West Fort Saskatchewan area –4) Shell – Scotford area –5) Alberta Environment – North of North Saskatchewan river near the W-4 Industrial Park and near the residential sub-divisions that are outside of the protocol boundaries.

38. Concluding Comments NCIA is a partnership of industrial members working together for a “safe, healthy, prosperous community”. NCIA is engaged in partnerships with government and NGO’s related to Alberta’s Industrial Heartland on: –Air (with AENV and FAP); –North Saskatchewan River Water (with AENV and NSWA); –Groundwater (with AENV and the community); –Noise (with the ERCB and the community); and –Odour (with AENV and the community).

39. Laurie Danielson, Executive Director Northeast Capital Industrial Association Suite 204, 9902 – 102 Street Fort Saskatchewan, Alberta T8L 2C3 ncia@telusplanet.net www.ncia.ab.ca 780.992.1463