ENVIRONMENTAL ACCORD

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Charleen Tyler
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1 ENVIRONMENTAL ACCORD BETWEEN: AND: PACIFIC TRAILS PARTNERSHIP and PACIFIC NORTHERN GAS ( PNG ) (hereinafter referred to collectively as PTP ) THE CARRIER SEKANI TRIBAL COUNCIL and its members the Burns Lake Indian Band, Saik uz Indian Band, Tl azt en Indian Band, Nadleh Whut en Indian Band, Wet suwet en Indian Band, Nak azdli Indian Band, Takla Lake Indian Band, and Stellat en Indian Band (hereinafter referred to collectively as CSTC ) WHEREAS: A. PTP wishes to construct a pipeline from Kitimat to Summit Lake (the KSL Project or KSL pipeline ), including a right- of- way through the traditional territory and aboriginal title lands of the CSTC and its member Bands; B. PTP and the Province intend to enter into a Benefits Agreement with the member Bands of the CSTC as part of the process of consultation and accommo d ation; C. The CSTC has prepared an Environmental Assessment Report for the proposed project which includes sixteen recommendations for environmental protections and mitigation and PTP has indicated its willingness to endorse and implement those Recommen dations; D. The CSTC and PTP wish to enter into this Environmental Accord as a binding and enforceable agreement recording PTP s environmental commitment s as a companion agreement to the Benefits Agreements. THEREFORE PTP hereby agrees and promises as follows: 1. Cumulative Effects Asses s m e nt 1.1 PTP will support in principle a First Nations- led Cumulative Effects Assessment, focused on the proposed pipeline corridor, before any further pipeline proposals are authorized in the general vicinity of the proposed

2 - 2 - KSL Project pipeline corridor, and agrees that PTP will co- operate and assist in the Cumulative Effects Assessment as reasonably required in respect of information and impacts from the KSL Project. 1.2 PTP will actively encourage the provincial Crown to assist in and financially support a First Nations- led Cumulative Effects Assessment with the temporal and geographic scope required by the CSTC in the Environmental Assessment Report, and will not allow, support or encourage any future pipelines in the vicinity of the KSL pipeline until such Cumulative Effects Assessment has been completed. 1.3 Once the Crown and the CTSC have reached an agreement to undertake the Cumulative Effects Assessment, and following a decision by PTP to proceed with the KSL Project, the PTP will contribute financially to the Cumulative Effects Assessment study in an amount equal to the contribution of the Crown or the CSTC up to a maximum of $75, CSTC Environmental Monitors 2.1 Project Phase : PTP will enter into a contract with CSTC to enable CSTC to hire a CSTC member as a fulltime Environmental Monitor for up to two years employment, plus all reasonable expenses, to enable an Environmental Monitor to participate in planning for the logging/clearing phase, permitting and construction/restoration, once PTP has made the decision to proceed with the KSL Project,. 2.2 PTP will in good faith negotiate the timing, organization structure and roles and responsibilities of a CSTC Environmental Monitor with CSTC once the project schedule is confirmed. 2.3 In the event that construction is undertaken simultaneously at more than one location in CSTC territory simultaneously, then funding for a second, shorter term position will be negotiated to enable the presence of a CSTC Environmental Monitor on- site at all construction activities and at all active times, if so desired by CSTC. 2.4 PTP will cooperate fully with the CSTC Environmental Monitor, assuring full access to the site, logistical assistance, and all necessary information. 2.5 The CSTC Environmental Monitor will monitor construction and planning operations to identify issues of environmental or cultural concern to the CSTC and its member Bands. In the event that the CSTC identifies an issue of environmental or cultural concern, PTP will provide direct access to the senior foreman on site, and higher decision- making personnel if requested, and will make all reasonable efforts necessary to resolve matters that arise in an expeditious matter.

3 PTP will make available a short training program for an Environmental Monitor in respect of pipeline construction techniques and issues prior to the commenceme n t of construction. 2.7 Operational Phase: Following construction and commencement of operations, PTP will also contract with CSTC on an annual basis to review the project right- of- way and to provide a report with recommendations and remedial measures that are required. 2.8 The Operational Monitoring program will include assessment and monitoring of: (a) (b) (c) Project effects that may not have been fully considered within the scope of the application; The success of restoration measures and achieving their objectives; The degree to which access management plans are achieving their objectives. 2.9 During the initial five year term following construction, the Monitoring program will be more comprehensive, involving at lease 2 4 weeks of monitoring work (est. cost $20,000). CSTC and PTP may negotiate a combined approach to monitoring if PTP creates an active monitoring program During subsequent years, and to conclusion of the project, the monitoring will be less comprehensive (est. cost $10,000 annually). The CSTC may choose to use existing program staff for monitoring, or to hire temporary project staff. The Parties may consider more comprehensive periodic reviews as an alternative to annual reviews in later years PTP will promptly respond to reports with remedial recommendations and will negotiate in good faith with CSTC to determine an effective and reasonable response. 3. Environmental Management Plan 3.1 PTP will draft an Environmental Management Plan, to be drafted jointly with the CSTC in relation to all aspects of the Environmental Management Plan relevant to CSTC traditional territory. PTP will not finalize the Environmental Management Plan until issues raised by the CSTC have been resolved to CSTC s satisfaction, which is not to be unreasonably withheld. 4. Restoration Plan 4.1 PTP will draft a Restoration Plan, to be drafted jointly with the CSTC in relation to all aspects of the Restoration Plan relevant to CSTC traditional territory. PTP will not finalize the Restoration Plan until issues raised by

4 - 4 - the CSTC have been resolved to CSTC s satisfaction, which is not to be unreasonably withheld. 5. Acces s Management Plan 5.1 PTP will draft an Access Management Plan, to be drafted jointly with the CSTC in relation to all aspects of the Access Management Plan relevant to CSTC traditional territory. PTP will not finalize the Access Management Plan until issues raised by the CSTC have been resolved to CSTC s satisfaction, which is not to be unreasonably withheld. 5.2 PTP will respond promptly to all access management issues raised by CSTC during the life of the project, and will in good faith implement all reasonable recommendations for remedial action on access as proposed by the access hunting and fishing committee (as established pursuant to para. 14 herein) and through monitoring reports (as referenced in para. 2.7 to 2.11 herein). 6. Fisheries HADD Compen sation Measures 6.1 PTP will fully engage the CSTC immediately in development of HADD fisheries compensation measures with DFO. PTP will immediately provide a copy of draft plans to the CSTC Fisheries Department (Brian Toth), and use all reasonable efforts to ensure that DFO identifies compensation measures to the satisfaction of CSTC. 7. Stuart River Crossing 7.1 PTP will ensure that the Stuart River crossing is conducted by Horizontal Direction Drilling (HDD) and avoid all in- stream work or impacts. 7.2 In the event that HDD is not reasonably possible, based on independent engineering studies, PTP will commit to an aerial crossing of the Stewart River, with no in- stream work or impacts. 7.3 PTP will meet forthwith with the Nak azdli Band to discuss in detail the Stuart River Crossing and the flow isolation techniques proposed for the Salmon River Crossing, and will ensure that these crossings are undertaken through means and plans satisfactory to the Nak azdli Band. 8. Social Cultural Impact Assessment 8.1 PTP will support CSTC to conduct a further study into the socio- cultural impacts of the proposed KSL pipeline through funding in the amount of $30,000. Funds up to the amount of $30,000 will be paid by PTP to CSTC, once the decision to proceed by PTP has been finalized, and upon submission of a study proposal by CSTC to PTP. 9. Right of First Refusal on Contract Work

5 PTP will establish a process, well prior to the beginning of construction, to identify and pre- qualify CSTC and other First Nation contractors, and to identify specific contract work for logging, right of way clearing, fisheries technical staff and mitigation and restoration, as well as other suitable subcontracting opportunities, and fully publicize those opportunities within CSTC commu nities. 9.2 PTP commits to offering the identified subcontracting opportunities through either sole source contracts or rights of first refusal to prequalified CSTC contractors in CSTC territory, or equally to pre- qualified CSTC contractors and other First Nation contractors in overlap areas. 9.3 The pre- qualification process will clearly identify standards of training and accreditation, financial and contracting capability and WCB or other necessary government requirements, and PTP will reasonably pre- qualify all such CSTC contractors who meet such standards. PTP will attempt, where reasonably possible, to assist First Nation contractors to meet the pre- qualification standards. 10. Restoration 10.1 Prior to the commencement of construction, PTP will consult with CSTC staff to resolve restoration techniques in wetlands, flood plains and other habitats identified as significant by the CSTC PTP will provide specific examples of restored areas using the proposed restoration techniques for CSTC review, through either photographic means or direct observation As part of the process of resolving a satisfactory Restoration Plan (under para. 4 herein) PTP will ensure that CSTC acceptance of the proposed restoration techniques has been obtained. 11. Herbicides and Pesticides 11.1 PTP firmly commits to not use herbicides or pesticides for the purpose of vegetation control during normal pipeline operations and maintenance following restoration of the right of way As a limited exception to clause 11.1, PTP may propose the use of the herbicide glyphosate for the purpose of initial noxious weed management in restoration efforts in the first two years after pipeline construction, if no other reasonable alternative exists, but may only proceed with such application with the express written consent of the CSTC, after full consultation, discussion and agreement. 12. Wildlife

6 PTP will develop, in consultation with CSTC, updated mitigated and compensation plans related to mountain goad and grizzly bear habitat, and to offset any loss in old growth management areas, wetlands, and other wildlife habitat PTP will establish, in conjunction with provincial government agencies, a Wildlife and Wildlife Habitat Committee for the purpose of identifying and monitoring the necessary mitigation and compensation measures, and will invite CSTC to be a full participating member of the Committee, at the discretion of CSTC. 13. Wetlands Impacts of Natural Gas Leaks 13.1 PTP will develop further information on the impacts of natural gas leaks on wetlands, and provide such information to the CSTC prior to the final determination of construction techniques, or commencement of construction in any wetlands areas within CSTC territory. 14. Acces s, Hunting and Fishing Committee 14.1 PTP will encourage the provincial Crown to establish a joint CSTC BC Ministry of Environment Committee relative to the KSL Project impacts, and will assist the Committee to implement any management measures that may be determined by that Committee as necessary to protect the priority harvesting rights of First Nations. 15. Existing Right- of- Way Restoration 15.1 Following a decision by PTP to proceed with the KSL Project, PTP commits to the development of a Restoration Plan in conjunction with the CSTC for the existing PNG right- of- way in CSTC territory and to contract with the CSTC on an annual basis to review the pipeline during operations and provide a report with recommendations to PTP for any remedial work the CSTC believes is required. 16. Improved Communication and Notification 16.1 PTP will commit to direct notification in a timely and effective manner to all CSTC communities in the event of any accidents, malfunctions and advance notification of all routine maintenance operations on both the existing PNG pipeline and the proposed KSL Pipeline in CSTC territory PTP will consult with CSTC as to the preferred means of effective communication with each community, and will adopt notification procedures satisfactory to the CSTC.

7 PTP commits to include the notification procedures in its published operating procedures and protocols, and to ensure its personnel are trained in the notification procedures PTP commits to periodic review of the notification procedures and protocols with CSTC, and periodic updating of communications details. 17. Archaeological Impact Asses s m e nt 17.1 PTP will prepare a supplementary Archaeological Impact Assessment Report to address in detail the issues raised in section 10 of the CSTC Environmental Assessment Report, including specific attention to the 15 listed sites PTP acknowledges and agrees that avoidance of archaeological sites will be the primary mitigation measure taken during construction for all sites PTP will provide further funding to the Nak azdli Band to enable an additional archaeological assessment at the Stuart River Crossing in the amount of $10,000 once the crossing method and location of impact have been confirmed. 18. CSTC Heritage Trails - Virtual Fly- Over DVD 18.1 PTP commits to assist in the financial and technical support in the develop men t of Virtual Fly- Over DVD of CSTC heritage trails and other features PTP will provide matching funding of up to $10,000 to assist in a DVD following a decision to proceed with the KSL Project, upon receipt of a CSTC project proposal identifying the targeted heritage trails and upon confirmation of matching funds from the CSTC or the Crown. 19. No Other Pipelines 20. PTP will not authorize any other use of its right- of- way except for the proposed KSL Pipeline, and will not authorize any other person or corporation to enter upon, cross or use any portion of the right- of- way for the construction of any pipeline. 21. General 21.1 This agreement is intended to be binding, and may be enforced by the CSTC or any affected member Band of the CSTC, through arbitration or court order at the discretion of the CSTC or such member Band This agreement is intended to operate independently of any Environmental Assessment Certificate or any provincial regulatory process, and in the event of any difference or conflict in obligations under this agreement or

8 - 8 - provincial regulatory scheme, this agreement shall govern on any application for enforcement by the CSTC or its member Bands of this agreement The parties may agree to establish a dispute resolution mechanism, and if so established, the CSTC or its member Band will first make reasonable attempts to use the dispute resolution process, unless there are exigent circumsta nces This agreement is intended by the parties to form part of the accommodation to the CSTC for the PTP Pipeline, and compliance with this agreement is a condition of CSTC approval of the Pipeline This agreement is solely for the benefit of the CSTC and its member Bands, and may not be relied upon or enforced by an individual or any other First Nation Band without the express consent of the CSTC. This agreement may be waived by the CSTC, and shall not be construed as to impose any obligations on the CSTC. PACIFIC TRAILS PARTNERSHIP Authorized Signatory DATED this day of, PACIFIC NORTHERN GAS Authorized Signatory CARRIER SEKANI TRIBAL COUNCIL Authorized Signatory

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