REPORT - Environment

December 2008

PROJECT PROPOSAL

Proposed PotashCorp Cory Red Product Expansion 2008

REPO

RT

Report Number: 08-1361-0543 Distribution: 16 Copies - Ministry of Environment, Regina, Saskatchewan (+1 CD) 6 Copies - PotashCorp Cory Mine, Saskatoon, Saskatchewan 2 Copies - Golder Associates Ltd., Saskatoon, Saskatchewan

Submitted to:Saskatchewan Ministry of Environment Environmental Assessment Branch 486 - 3211 Albert Street Regina, Saskatchewan S4S 5W6

December 2008 Report No. 08-1361-0543

Executive Summary

Potash Corporation of Saskatchewan Inc. owns and operates the Cory Mine. The Cory Mine site is located approximately 7 km west of Saskatoon, Saskatchewan, along Highway No. 7. The Cory Mine has been in operation since 1968. In responding to recent increases in worldwide fertilizer market demands for crop production and a shift in demand to a granular grade of potash, the Cory Mine is proposing to undertake changes in their mining methods. These changes include considerable debottlenecking of underground operations, as well as shifting into the production of red potash products.

Potash Corporation of Saskatchewan Inc. previously submitted a Project Proposal to regulatory agencies in July 2007, which outlined their proposed increase in the milling rate from 800,000 tonnes per year to 2,000,000 tonnes per year at the Cory Mine. Following receipt of approvals, Potash Corporation of Saskatchewan Inc. began construction in the fall of 2007. However, based on current business forecasting, Potash Corporation of Saskatchewan Inc. is seeking regulatory approval to further increase the milling rate at the Cory Mine from 2,000,000 tonnes per year to 3,000,000 tonnes per year as part of the Red Product Expansion 2008 Project.

Construction activities associated with the increase in the milling rate and milling of red potash, if approved, is schedule to begin in the early winter of 2009. Construction is anticipated to be completed by March 2010, allowing the operation to commence in the summer of 2010. While the majority of the previously approved infrastructure has the capacity to support this increased milling rate expansion, the Red Product Expansion 2008 Project will require minor changes and/or additions to the infrastructure at the Cory Mine, all of which are within the existing mine footprint and on lands currently owned or leased by Potash Corporation of Saskatchewan Inc.

The objectives of this Project Proposal are to describe:

the preferred Red Product Expansion 2008 Project, which includes the expansion of the mill needed to accommodate the Red Product Expansion 2008 Project (Section 2.0);

the existing biophysical, cultural, and socio-economic environment potentially affected by the Red Product Expansion 2008 Project (Sections 3.0 and 5.0); and

the potential effects (positive and negative) of the Red Product Expansion 2008 Project, together with appropriate mitigation and resultant residual effects (i.e., impacts remaining after mitigation has been considered).

In considering all environmental components, it is anticipated that the Red Product Expansion 2008 Project will have limited residual effects on air quality, noise, terrain and soils, vegetation, wildlife habitat, and land use. These residual effects consider that the majority of the Red Product Expansion 2008 Project will occur within the existing Cory Mine footprint.

December 2008 Report No. 08-1361-0543 i

Table of Contents

1.0 INTRODUCTION...............................................................................................................................................................1

1.1 General Overview ................................................................................................................................................1

1.2 Project Need ........................................................................................................................................................1

1.3 Report Objectives.................................................................................................................................................1

1.4 Contact Information..............................................................................................................................................4

2.0 PROJECT DESCRIPTION ................................................................................................................................................4

2.1 Background..........................................................................................................................................................4

2.2 Project Overview..................................................................................................................................................5

2.3 Project Components and Structures ....................................................................................................................7

2.4 Inputs .................................................................................................................................................................12

2.5 Ancillary Projects ...............................................................................................................................................13

2.6 By-products........................................................................................................................................................13

2.6.1 Tailings .........................................................................................................................................................13

2.6.1.1 Coarse Tailings .........................................................................................................................................14

2.6.2 Brine.............................................................................................................................................................14

2.6.3 Air Emissions................................................................................................................................................15

2.7 Decommissioning and Reclamation ...................................................................................................................15

2.8 Project Schedule................................................................................................................................................15

3.0 EXISTING ENVIRONMENT ............................................................................................................................................15

3.1 Climate...............................................................................................................................................................16

3.2 Geology..............................................................................................................................................................16

3.2.1 Regional Summary.......................................................................................................................................16

3.2.2 Upper Cretaceous Bedrock ..........................................................................................................................16

3.2.3 Tertiary and Quaternary Deposits ................................................................................................................19

3.2.3.1 Empress Group.........................................................................................................................................19

3.2.3.2 Sutherland Group......................................................................................................................................19

3.2.3.3 Saskatoon Group ......................................................................................................................................19

3.3 Hydrogeology.....................................................................................................................................................20

December 2008 Report No. 08-1361-0543 ii

Table of Contents (continued)

3.3.1 Aquifers ........................................................................................................................................................20

3.3.1.1 Judith River Formation Aquifer..................................................................................................................20

3.3.1.2 Tyner Valley Aquifer (Empress Group) .....................................................................................................22

3.3.1.3 Sutherland Intertill Aquifers .......................................................................................................................22

3.3.1.4 Lower Floral Sand Aquifer.........................................................................................................................22

3.3.1.5 Floral Intertill Aquifer .................................................................................................................................22

3.3.1.6 Surficial Aquifers .......................................................................................................................................22

3.3.2 Aquitards ......................................................................................................................................................22

3.3.3 Groundwater Flow ........................................................................................................................................23

3.4 Topography........................................................................................................................................................23

3.5 Hydrology...........................................................................................................................................................23

3.6 Soils ...................................................................................................................................................................25

3.7 Vegetation..........................................................................................................................................................25

3.8 Vegetation..........................................................................................................................................................25

3.9 Wildlife Habitat and Wildlife................................................................................................................................28

3.10 Fish and Fish Habitat .........................................................................................................................................30

3.11 Heritage Resources ...........................................................................................................................................30

3.12 Land Use............................................................................................................................................................30

3.13 Air Quality ..........................................................................................................................................................30

4.0 ENVIRONMENTAL SCREENING ...................................................................................................................................33

4.1 Project Scope.....................................................................................................................................................33

4.2 Potential Environmental Impacts and Proposed Mitigation ................................................................................33

5.0 SOCIO-ECONOMICS......................................................................................................................................................38

6.0 PUBLIC CONSULTATION..............................................................................................................................................38

7.0 CONCLUSION ................................................................................................................................................................39

8.0 CLOSURE.......................................................................................................................................................................40

9.0 REFERENCES................................................................................................................................................................41

December 2008 Report No. 08-1361-0543 iii

Table of Contents (continued)

TABLES Table 2-1: Approximate Yearly Production Rates of Products Manufactured at PotashCorp Cory - Current and

Proposed 2008 Expansion.........................................................................................................................................7 Table 2-2: Proposed Project Schedule .....................................................................................................................................15 Table 3-1: Federally Listed Wildlife Species that May Occur Within the Proposed Project Region, 2008 ................................31 Table 4-1: Potential Environmental Impacts and Mitigation Measures .....................................................................................34 Table 4-2: Impact Description Criteria for Considering the Importance of Residual Effects .....................................................37 Table 4-3: Definition of the Assessed Levels of Importance of Residual Effects ......................................................................37 Table 4-4: Residual Effects and Assessed Environmental Importance ....................................................................................37

FIGURES Figure 1-1: Location of PotashCorp Cory Mine Site ...................................................................................................................2 Figure 1-2: Existing Mine Facilities .............................................................................................................................................3 Figure 2-1: Proposed Site Plan Expansion.................................................................................................................................6 Figure 2-2: Proposed Process Flow Diagram Associated with the Cory Red Product Expansion 2008 .....................................8 Figure 3-1: Stratigraphic Column of Regional Geology in the PotashCorp Cory Area..............................................................17 Figure 3-2: Regional Geologic Cross Sections for the PotashCorp Cory Mine Area ................................................................18 Figure 3-3: General Hydrostratigraphy of the PotashCorp Cory Mine Area..............................................................................21 Figure 3-4: Topography of Area and Location of Nearest Surface Waterbodies ......................................................................24 Figure 3-5: Soils Map ...............................................................................................................................................................26 Figure 3-6: Habitat Map............................................................................................................................................................27

December 2008 Report No. 08-1361-0543 1

1.0 INTRODUCTION 1.1 General Overview The Potash Corporation of Saskatchewan Inc. (PotashCorp) Cory Mine (the Mine) is owned and operated by the PotashCorp. PotashCorp is the world’s largest integrated producer of potash, phosphate, and nitrogen products that are used by fertilizer, feed, and industrial customers on six continents. PotashCorp currently owns and operates five potash mines in Saskatchewan. The Cory Mine has been in operation since 1968. It is located 7 km west of Saskatoon, Saskatchewan (Figure 1-1), within the rural municipalities of Corman Park and Vanscoy along Highway No. 7. The legal land description is LSD 6, Section 18, Township 36, Range 6, West of the Third Meridian. Figure 1-2 illustrates the site layout of the Mine.

In July 2007, PotashCorp submitted a Project Proposal, titled Project Description and Environmental Screening of the PotashCorp Cory Red Product Expansion 2008 Project (the Project) (Golder Associates Ltd. [Golder] 2007) to regulatory agencies that outlined a proposed increase in the milling rate from 800,000 tonnes per year (tpy) to 2,000,000 tpy at the Mine. On September 19, 2007, PotashCorp received approval from Saskatchewan Environment, now Ministry of Environment (MOE), to proceed with the proposed expansion at the Mine (Seguin, pers. comm. 2007), and following receipt of these approvals, the expansion began in the fall of 2007.

However, based on current business forecasting, PotashCorp is proposing to further increase the milling rate at the Mine from 2,000,000 tpy to 3,000,000 tpy as part of the Project. Consequently, PotashCorp is in the process of seeking regulatory approval for this additional increase at the Mine. While the majority of the infrastructure that was installed as part of the previously approved expansion has the capacity to support the proposed expansion, the Project will require minor changes and/or additions to the infrastructure at the Mine, all of which are within the existing mine footprint and on lands currently owned or leased by PotashCorp (see Section 2.0). Nevertheless, MOE has requested that PotashCorp submit a Project Proposal for the proposed Project.

1.2 Project Need The need for the Project has been generated by an increase in worldwide fertilizer demand for crop production and a shift in demand from the finer grades of potash to granular material for use in blended fertilizers. This shift is evident in North American and offshore markets and has resulted in an overall imbalance in production capacity. To meet this current demand, PotashCorp has deemed it necessary to further expand their milling rate of red product at the Mine.

1.3 Report Objectives PotashCorp retained Golder to prepare and submit this Project Proposal report for submission to the regulatory agencies. The purpose of this report is to present details for the Project where, subject to regulatory approvals, PotashCorp intends to construct and operate the Mine at an increased milling rate. The objectives of the Project Proposal are, therefore, to describe:

the proposed expansion, which includes additions to the mill that are necessary to accommodate the Project;

the existing biophysical, cultural, and socio-economic environment that could be affected by the Project; and

the potential effects (positive and negative) of the Project, together with appropriate mitigation and resultant residual effects (i.e., impacts remaining after mitigation has been considered).

SASKATOON

PRINCE ALBERT

REGINA

NORTHBATTLEFORD

LLOYDMINSTER

SWIFT CURRENT

YORKTON

LA RONGE

FOND-DU-LAC

Rge 6 W3MRge 7 W3M

Twp35

Twp36

Reference :NTS Mapsheet 73B/2,3NAD27 Zone 13

LOCATION OF POTASHCORPCORY MINE SITE

FIGURE: 1-1

Twp37

PotashCorpCory Mine

Coarse Tailings Pile

FreshwaterBypass Ditch

Seepage CollectionDitch

West Drain

East Drain

Brine Pond

Fine TailingsCell #2

SouthContainment

Pond

Disposal WellPumphouse

DisposalWell

DisposalWell

Fine TailingsCell #1

Flood ContainmentPond Expansion

Slurry Cutoff Wall

Collection Pond

EXISTING MINE FACILITIES

.

FIGURE: 1-2


Pending regulatory approval, initiation of the construction phase of the Project is scheduled for early 2009 and it is anticipated that the Project will commence operation in the summer of 2010.

1.4 Contact Information The key contact information for the Project is as follows:

Name of Owner: Potash Corporation of Saskatchewan Inc. Contact Name: Clark Bailey, P.Eng., Senior Vice President Technical Services Address: Suite 500, 122 – 1st Avenue South Saskatoon, SK S7K 7G3 Phone: (306) 933-8596

2.0 PROJECT DESCRIPTION 2.1 Background Potash has been mined and refined at the Mine since 1968. At that time, a mine and refinery (the Duval Mine) were constructed, and service facilities were brought on-line. Facilities were also constructed for storing the waste, which is the non-usable portion of the potash ore. In 1976, the Duval Mine was acquired by the then newly formed Potash Corporation of Saskatchewan Mining Ltd. and is presently operated as PotashCorp Cory.

The Mine uses conventional underground room and pillar mining techniques, mining ore from ‘rooms’ separated by wide pillars left to support the overburden. Continuous borer mining machines, capable of cutting a 3.3 m x 5.5 m path, mine approximately 600 tonnes of ore per hour. The ore is loaded on conveyors attached to the mining machine, transported to underground bins and hoisted to the surface. The milling process starts with crushing the ore, which then goes to thermal leach tanks where it is dissolved and suspended in solution. The brine is clarified and pumped to crystallizers where it is cooled, precipitating a white, high-purity potassium chloride (KCl) product. The product slurry is centrifuged to remove brine, dried and sent to the screening area. The potash, graded for application as fertilizer and industrial products such as the water softener Softouch and an ice melt product, is stored in four warehouses, with a combined capacity of 179,000 tonnes. Production varies with market conditions, but in 2005 and 2006, about 0.825 and 0.77 million tonnes of potash were produced, respectively.

Tailings consist primarily of common salt (90% to 92% sodium chloride, NaCl), with clay minerals and fine salts representing the remaining 4% to 8%. Approximately 2% to 4% of the solid tailings consist of unrecovered potash salt (KCl). Run-off and the use of some water during the refining process, dissolves a considerable quantity of the tailings solids to produce a nearly saturated brine. The brine is stored in one brine pond and the excess is disposed of by deep well injection into the Deadwood Formation. The Deadwood Formation is located roughly 1,600 m below the surface and contains a naturally occurring brine, similar in concentration to the brine that is injected.

Wastes are stored in a tailings management area (TMA) of about 419 ha, which consists of a coarse tailings pile of about 152 ha, fine tailings ponds (Cell #1 and Cell #2) of 27 ha, and about 119 ha of brine ponds. The pumphouse pond and associated ditches occupy about 30 ha. The coarse tailings pile contains about 15.8 million m3 of material, which is mostly composed of salt.

Coarse tailings are transported to the TMA via a pipeline as a brine slurry, the solids deposit on the pile with brine flowing to the adjacent brine pond. Fine tailings are transported to the TMA as a slurry where they are discharged into fine tailings Cell #2, where solids settle and excess brine drains to the brine ponds. Reclaim brine is pumped to the mill from the brine pond for tailings slurrying, brine makeup, and crystallizer cooling. Excess brine is currently injected into the Deadwood Formation by three brine disposal wells.


Exhaust gases from each of the product dryers pass through cyclones and scrubbers to remove particulate matter before they are discharged to the environment.

Water for process requirements is obtained from the South Saskatchewan River, located about 9 km southeast of the Mine. The pumping station and pipeline are operated by SaskWater. The Mine receives potable water from a separate SaskWater pipeline.

The majority of the land around the Mine is owned by PotashCorp. There is some private land to the east of the Mine, which is currently planted with cereal crops, and there is some pastureland to the north. Remnant natural vegetation of the area is described as “moist mixed grassland”, which consists of open grasslands and trees.

Since the initial construction, the Mine has undergone little change except that the waste storage area has been expanded to accommodate more tailings. It is expected that mining will continue for an additional 100 years.

PotashCorp’s management is committed to maintaining the status that the Mine does not cause significant regional environmental impact. Local conditions are being monitored to avoid transport of salts to the regional environment. In the late 1990s, the Saskatchewan Potash Industry agreed with the MOE, that a plan should be prepared for decommissioning potash mines so that it could be done in an environmentally acceptable manner should circumstances change, in the case where a mine might be forced to cease production long before it is planned. In 2006, the Mine submitted a decommissioning plan for the facility and this plan will be up-dated every five years after review by the government (PotashCorp 2006).

2.2 Project Overview The Project will involve debottlenecking of underground operations, as well as expansion of production facilities for the red potash products. The majority of the Project-related infrastructure will be constructed within the existing infrastructure on the current Mine site footprint, with the remaining components installed adjacent to the footprint on lands owned by PotashCorp (Figure 2-1).

The main components of the Project (see Figure 2-1) consist of the following:

addition of two underground mining machines and associated ancillary support equipment;

installation of a hoist with 45 tonne capacity and new 41 tonne skips;

increase in the surface raw ore storage facility capacity by 4,000 tonnes;

increase in capacity of the existing flotation plant including desliming, flotation, centrifuging, and drying facilities to accommodate an additional 1,000,000 tpy red product;

addition of one new compaction circuit within the red compaction plants, similar to those used in the PotashCorp Rocanville, PotashCorp Allan, and PotashCorp Lanigan upgrades;

increase in red granular product storage from 90,000 tonnes to 120,000 tonnes;

addition of a 22,712 m3 (6,000,000 US gallons) raw water reservoir; and

addition of one brine injection (disposal) well and associated brine pipelines.

Existing Disposal Well

Existing Facilities

Proposed Expansion

Existing Facilities


Approximate Location ofProposed Disposal Well

Legend

PROPOSED SITE PLAN EXPANSION

.

FIGURE: 2-1


2.3 Project Components and Structures The increased production capacity of the Mine will be achieved through the expansion of the flotation and compaction plants while retaining the existing crystallizer circuit. The white crystallizer plant will maintain its current 800,000 tpy white capacity producing white soluble muriate (WSM) 1.0 soluble fines, WSM 0.2 chicklets, and K-prills white products while compacted granular production will be moved to the new red flotation plant. The expansion of the flotation plant will add an additional 1.0 million tpy of red standard and granular product. Overall, nominal production capacity of the plant will increase by 1,000,000 tpy for a total production capacity of 3,000,000 million tpy.

The Mine currently produces four white products, including soluble fines, compacted white granular, refined chicklets, and a prilled product. After the expansion, the white crystallizer circuit will continue to produce all products with the exception of compacted white granular product. Red granular production will replace the white compacted granular, as the white granular compaction circuit will be decommissioned. Any red potash not used in the red compaction circuit or as crystallizer feed will become red standard. The product mix before and after the debottlenecking process is shown in Table 2-1.

Table 2-1: Approximate Yearly Production Rates of Products Manufactured at PotashCorp Cory - Current and Proposed 2008 Expansion

Product Pre-Expansion (000’s of tonnes/yr)

2007 Expansion (000’s of tonnes/yr)

Proposed 2008 Expansion

(000’s of tonnes/yr)

WSM 1.0 Ag Soluble Fines 250 465 465

WSM 1.0 White Granular (SGN 285) 350 - -

WSM 0.2 Chicklets 175 300 300

Prills 25 35 35

Granular (SGN 285) - 720 1,320

Standard (SGN 100) - 480 880

Total White Production 800 800 800

Total Red Production - 1,200 2,200

Total Annual Production 800 2,000 3,000

Note: WSM = white soluble muriate of potash; SGN = size guide number.

The following sections describe the changes required as part of the expansion to the various components and structures of the Mine. Where applicable, these sections also describe the mining process to provide the reader with a general understanding of how the potash is prepared and refined to a finished product. This process is also outlined in schematic form in Figure 2-2. As part of this Project Description, key environmental design features that are anticipated to eliminate or reduce potential environmental effects from the Project have also been included for the applicable components.

PROPOSED PROCESS FLOW DIAGRAMASSOCIATED WITH THE CORY RED

PRODUCT EXPANSION 2008

FIGURE: 2-2

Ore Raw OreStorage

Dry Crushingand Screening

PrimaryScrubbing

Wet Crushingand Screening

SecondaryScrubbing and

Desliming

Cyclones(Fine Salt Recovery)

Thickening

ScavengerFlotation

Fine TailsStorage

CoarseReagentizing

CoarseRougherFlotation

Rougher TailsScreens

Centrifuging

HydroflotColumn Flotation

FinesReagentizing

Fines ColumnFlotation

Tails Disposal Coarse TailsStorage

Brine Pond

Deep WellInjection

CrystallizerRepulp Tank

Rotary KilnDryers

StandardScreening

Red Standard

Compaction

Primary Screeningand Crushing

Secondary Screeningand Crushing

Product QuenchDryer

Polishing Screens

Red Granular

ExistingCrystallization

Circuit

FineTails

Brine

Fine

Ore

Coarse Ore

ConcentrateTails

Concentrate

ConcentrateTails

O/S

Tails

Tails

FineMaterial

CoarseMaterial


Mining and Hoisting Changes To accommodate the Project, the following changes are necessary to the underground mining operations:

an additional two mining machines, for a total of ten machines;

an additional conveying capacity to handle production from ten mining machines;

additional mining machine ancillary support equipment;

an additional underground storage bin will be added to support the increased hoisting rate;

additional manpower will be hired to support the operation of six mining machines; and

upgrades to the electrical, mine communication, and mine pumping systems.

To accommodate the increased production capacity of the Mine, hoisting capacity will be increased to 45 tonnes per skip with the following improvements:

the production hoisting speed will be increased from 13 m/sec to 18 m/sec (3,600 fpm), and the acceleration/deceleration rates will be adjusted;

the hoist drum will be replaced and a new hoist motor will be installed;

production hoist related equipment will be upgraded;

the loading pocket surge and weigh bins will be rebuilt;

the controls on the production and service hoists will be upgraded; and

new 41 tonne skips will be installed.

Process Changes The process changes that are outlined below are what was required to increase overall production at PotashCorp Cory by 1,000,000 tpy. This would bring the total Mine production to 3,000,000 tpy. The changes that are outlined in this Project Description detail what circuit changes are required to increase the ore throughput tonnage from 850 tonnes per hour (tph) to 1,200 tph.

Ore Storage Area As part of the expansion, an additional 4,000 tonne capacity will be added to the coarse ore storage bin located on the north side of the existing mill and coarse ore bins. A plough feeder is used to recover coarse ore from the bin for feeding to the mill. Belt galleries are used to move ore from the No. 1 head frame to the coarse ore bin and from the coarse ore bin to the mill.

Dry Ore Crushing Area The coarse ore from the coarse ore storage bin is dry screened and the larger fraction is crushed in hammer mills. Both fractions are then recombined in a fine ore bin. A weigh belt is used to meter the mill feed from the fine ore bin to wet crushing and desliming.


Feed Preparation and Desliming The fine ore from the fine ore bin is metered out to the pulper tank where brine is added to create a slurry. The pulper tank overflows into parallel high density attrition scrubbers to remove the insoluble material from the surface of the salts. A closed, wet crushing circuit reduces the size of the ore to the appropriate size for the flotation process.

As part of the expansion, two new wet screens will be installed to handle the additional throughput. The ore is fed to secondary scrubbers where any insoluble material liberated in the wet crushing circuit is removed from the ore’s surface. The ultra fine salts and insoluble material are separated from the main ore stream by two stage cyclones and by cross-flow separators. Hydrocyclones, rather than hydro separators, are used to separate the ultra fine salts from the insoluble material. The ultra fine salts are processed in a scavenger column flotation cell to enhance mill recovery. The left over insoluble material is thickened and pumped out to the fine tailings ponds.

Environmental design considerations:

new technology will reduce water requirements of wet screens;

a high efficiency desliming circuit will improve potash recovery; and

hydrocyclones and scavenger flotation will capture fine salts for use in the crystallizer circuit, enhancing mill recovery and reducing fine tailing volumes.

Flotation The coarse ore flotation circuit takes its feed from the underflow of the cross-flow separator. The coarse flotation circuit consists of four conventional rougher cells. The concentrate from the coarse roughers goes forward to centrifuging and drying. Tails from the coarse roughers are refloated in four hydro-float column cells to produce a low grade concentrate, made-up of mostly unliberated ore that is then fed to the crystallizer leaching circuit.

The fines flotation circuit processes the combined flows from the cross-flow separator overflow and the underflow from the secondary cyclones. The fines roughers are column style flotation cells. The concentrate from the fines-roughers goes forward to centrifuging and drying while the tails from the fines-roughers are disposed of in the tailings disposal circuit. As part of the expansion of the Project, the existing 3.05 m (10 foot) diameter fines-rougher flotation columns will be replaced with 3.66 m (12 foot) diameter columns.

Product Dewatering and Drying The concentrate from the coarse flotation circuit feeds into a set of cyclones that control the density in the centrifuge feed tank. The fine flotation concentrate is preferentially fed to the crystallizer screen bowl centrifuge with any extra centrifuge feed overflowing into the main centrifuge feed tank. The scavenger cell concentrate, the hydro-float concentrate and the centrate scavenger cell concentrate are fed to a centrifuge to minimize fines losses to the centrate, which deliver its cake to the crystallizer circuit. The three centrifuges not feeding the crystallizer circuit send their cake to two natural gas fired rotary kiln dryers. As part of the expansion of the Project, the existing 3.35 m (11 foot) diameter rotary kiln dryers will be upgraded to 4.11 m (13.5 foot) dryers.


Air emissions abatement equipment for the rotary kiln dryers consist of high efficiency cyclones in series with a fluid bed scrubber rather than the baghouse and venturi scrubber. The fluid bed scrubber consists of a fibreglass body housing two perforated plates, which constrain a large number of plastic turboids. The dryer exhaust air, entering from the bottom perforated plate, fluidizes the turboids, resulting in an extremely high level of turbulence in the fluidizing zone. The scrubbing medium is introduced downwards via a set of spray nozzles located at the top of the vessel. The high level of turbulence in the fluidizing zone enhances the likelihood of particle to fluid contact. The fluid bed scrubber has several advantages over traditional scrubber designs including the ability to use brine as a scrubbing fluid, low water consumption, and the ability to be used as a heat transfer unit to recover heat from stack exhaust gases.

Tails and Brine Handling A fine salt thickener is used to capture any of the finer salts that end up in the overflow of the cyclones and thicken them for disposal in the TMA. These residual salts are disposed of in the TMA via separate high density polyethylene (HDPE) tailings and brine pipelines. These pipelines are contained in a lined ditch providing secondary containment in case of line failure.

Red Product Screening Once the product has been dried, it is processed through a product screening circuit that consists of four multideck Rotex screens, gravity feed chutes, and associated materials handling equipment within the mill. Multideck screens have been installed, which reduce the energy and dust collection requirements by eliminating the materials handling equipment typically associated with single deck screens.

Compaction The west section of the mill building houses the red compaction circuit. As part of the expansion of the Project, one additional compaction circuit will be installed in the compaction plant. The compaction plant produces a premium red granular product conforming to the size guide number 285 specification, with a uniformity index of 50.0. The compaction plant is fed with fines and standard from the product screening circuit, which meet the chemical requirements for granular product. Fines and standard are formed into material meeting the required size specifications by compaction with subsequent screening and crushing. The product is then treated and quench dried to reduce degradation during shipping.

The compactors are located in a closed circuit with the screens and crushers. They are fed from a drag conveyor using the flooded feed principal, which requires that feed to the drag conveyor exceeds the requirements at the compactors, with the excess being recycled through a surge bin.

Primary crushing is carried out by two stage, roll crushers, mounted directly below the compactors. Secondary and tertiary crushing are conducted by cage mills.

The product from the compaction screens is wetted and then dried in a quench dryer. The heat required for the quenching process is supplied by reusing hot air from the product dryers. This process is proven as a means of enhancing product durability. Dried product is then sent to the granular dispatch bin before being conveyed out to the product storage building.


Product Storage and Loading The product storage building and associated dispatch and reclaim belt galleries are located to the north of the existing No. 1 warehouse to house red granular product. Loading facilities are located on the loadout building to handle red product loading. Truck loading facilities will be located on the east side of the loadout building. Empty car storage will be located on the north end of the loadout building and loaded car storage will be located on the west side of the building. This will allow for the loading of an entire unit train (approximately 124 cars) in a single day without having to have one of the railways at the Mine to pull cars. The maintenance and storage facility has the capacity to house two large track mobiles that are used to move cars from the full track to the storage tracks to the west of the loading facility.

Additional Facilities Raw Water Storage Reservoir As part of the proposed expansion, a new 22,712 m3 (6 million US gallons) raw water supply reservoir will be excavated on the east side of the ATCO cogeneration plant and cooling towers (Figure 2-1). The reservoir will be located on land owned by PotashCorp, but is leased for use as perennial forage (hay production).

This reservoir is intended to reduce the amount of water required from the South Saskatchewan River at any given point in time. Water will be pumped from the river via the existing SaskWater supply lines and stored in the reservoir to be used as needed. The reservoir will be excavated and it is anticipated to be lined with a compacted clay liner; however, an optional HDPE liner may be used to line the reservoir.

Associated with the addition of the raw water reservoir will be a series of water pipelines that connect the reservoir to the existing infrastructure at the Mine. These will be installed by conventional trenching construction methods using a trackhoe to excavate a trench in which the water pipelines would be installed.

Disposal Well To accommodate the increased milling rate, an additional disposal well will be required to dispose of the resulting additional brine produced. The well is anticipated to be located in LSD 4-19-36-6 W3M, approximately 1,200 m north of the existing disposal well located in 13-17-36-6 W3M (Figure 2-1). The new disposal well will be drilled to a depth of approximately 6,100 m into the Deadwood Formation, the same formation that brine is currently injected into, using a standard rotary drill rig. The well will be drilled to the top of the disposal zone where 21.8 cm (8 5/8”) casing will be run and cemented.

Once the disposal well has been drilled and completed, it will be tied-in to the existing brine pipeline infrastructure. The additional brine pipeline will be located along the surface with secondary containment when located outside the TMA. The location of the proposed pipeline has not been finalized at this point, but will likely be routed across cultivated lands in W½ 18-36-6 W3M and LSD 4-19-36-3 W3M.

2.4 Inputs Water Water is currently obtained from the South Saskatchewan River via a SaskWater pipeline; no groundwater is used at the Mine. Extra water use as part of the expansion is anticipated to be 1.04 m3 per product tonne per year. About 40% of the fresh water volume that is used in the mill is in the crystallizer circuit. As part of this expansion, production from this circuit will not change and water consumption will remain unchanged. The remaining 60% of the total water use will be used in the flotation plant. This water is used in clean-up, washing equipment, flushing tails lines, mixing of plant reagents, quench water for the compacted product and scrubber wash nozzles. Where applicable, water conserving equipment has previously been installed, and water used for equipment cooling is reused. The water system will be reviewed and monitoring of water use will be improved with additional water meters tied into the distributed control system.


As of 2006, the Mine used approximately 450,000 m3 of waste water per year from the ATCO/SaskPower cogeneration plant for salt dissolution in the fine tailings to reduce the volume of fine tailings deposited in the TMA.

Water consumption in 2006 was 1.45 million m3. A 142% increase in water consumption will bring demand to 3.51 million m3. Currently, the maximum water supply under contract with SaskWater is 2.19 million m3 per year (480 million US gallons per year). SaskWater has indicated that the increased usage could be supplied to the Mine with additional reservoir and booster pumps. These up-grades will be the responsibility of PotashCorp.

Electricity Electrical power for the Mine is currently provided from a 138 kV SaskPower service drop. Normal power consumption for the entire operation is 20.0 MW with occasional peaks to 24.0 MW. Following completion of the work described in this document, power consumption will increase to a normal level of approximately 30 MW with occasional peaks to 35 MW. There will be an increase in power consumption associated with the additions to the expanded underground operations, the hoist upgrade, the flotation plant, and the compaction circuit.

Natural Gas It is estimated that the overall site natural gas usage will increase by approximately 6%, largely for use in the red product dryers. .

Reagents Several reagents will be required for the flotation process; however, all of these were used previous to the conversion to a crystallization process in 1988, and are currently being used within the industry. Additional reagents required for the new mill will include collector, extender oil, depressant, flocculent and neutralizer. It is also possible that an additional anti-caking amine may be used on the red product depending on the results of on-going test work. There are no chemicals required for the compaction process.

2.5 Ancillary Projects There are no ancillary projects associated with the proposed Project.

2.6 By-products 2.6.1 Tailings There will be an increase in the rate of tailings deposition as a result of the overall capacity increase; however, the tailings deposition intensity (tonnes of tailings/tonne of product) will decrease due to the increased mill recovery for reasons described in the process description. The potential rate of net tailings to surface storage will increase from 2,500,000 tpy (2,100,000 tpy as coarse tailings and 400,000 tpy as fine tailings) to 3,960,000 tpy. This value is based on what the Mine will be producing at the planned increase rate of 3,000,000 tpy of product.

Additional tailings generated as part of this Project will be stored in the existing TMA boundary, no expansions to the TMA boundary are planned as a result of the Project. Additional details on the estimated storage capacity for the coarse and fine tailings are presented in subsequent sections.


2.6.1.1 Coarse Tailings PotashCorp has been investigating the coarse tailings pile stability over the past number of years, and the results of these investigations and ongoing monitoring have been used to assess coarse tailings pile heights. Information with respect to the investigation and analysis of pile stability and projections of potential pile heights is presented by MDH Engineered Solutions Corporation (MDH) (2005). Results of the stability assessment in this study indicate that stable pile heights of 75 m can be attained with pile benching, furthermore, stable heights of 100 m are possible with an additional bench.

At least 25 years of additional storage is available within the existing coarse tailings pile footprint at the expanded mill rate and a maximum pile height of 100 m.

2.6.1.2 Fine Tailings PotashCorp will be using subaerial deposition as an alternate management approach with respect to fine tailings. Current fine tailings management consists of discharge of slurried fine tailings into surface containment ponds usually in subaqueous (below brine) conditions. Subaerial deposition would result in a higher degree of consolidation and lower hydraulic conductivity of the deposited fine tailings through operations. It is anticipated the lifespan of the fine TMA is approximately 25 years.

Transition from subaqueous deposition methods to subaerial deposition will assist in producing increased consolidation of fine tailings during operations. For subaerial deposition, free brine will need to be removed from the fine tailings surface as it decants from the deposited fine tailings. One method of removing free brine would be the use of a granular filter drain, which would serve to keep fine tailings solids in the pond while allowing free brine to seep through the granular material to a sump.

The Saskatchewan Potash Producers Association (SPPA) evaluated a number of potential filter media in a benchscale testing program at PotashCorp’s Pilot Plant. The study concluded that a granular filter media could successfully be used to decant free brine from deposited fine tailings.

PotashCorp constructed a field trial for subaerial deposition to further evaluate potential subaerial deposition scenarios in three test cells at PotashCorp Lanigan. A key objective of the field trials was to further evaluate effectiveness of granular materials to filter brine to produce a clear brine suitable for use in the mill circuit. The effectiveness of subaerial deposition techniques in enhancing the in-situ properties of fine tailings through deposition is also being assessed in a field trial.

Upstream dyke construction is a design methodology for increasing the height of deposited fine tailings within the existing fine tailings cell footprint by founding the dyke on the consolidated deposited fine tailings. Increasing the height of deposited fine tailings within the cells will also be beneficial in increasing the degree of consolidation of fine tailings, particularly near the base of the cell. This procedure will also decrease in-situ hydraulic conductivity of the fine tailings at the base of the cell and throughout, and achieve the management objective of minimizing advective fluxes through the deposited fine tailings and limit the mass flux from the fine tailings to a diffusive flux.

2.6.2 Brine The expected increase in the rate of brine injection as a result of this Project will be approximately 0.03 m3/minute (523 USGPM), corresponding to the calculated increase in water consumption (based upon the capacity of the brine injection wells). The current injection well configuration has an excess capacity of approximately 25% based on an availability of 90%. The capacity of the existing injection wells can be increased 25% by upgrading the smaller of the two injection pumps to 1,200 HP pumps, and to increase the well-head pressure and through additional fracturing and acidizing of the existing injection wells.


As mentioned previously in Section 2.2, an additional disposal well will be required to dispose of the resulting additional brine produced. The well is anticipated to be located in LSD 4-19-36-6 W3M, approximately 1,200 m north of the existing disposal well located in 13-17-36-6 W3M (Figure 2-1). The existing brine pond and flood containment pond will not be altered as part of this Project.

2.6.3 Air Emissions To follow-up from the Project Proposal that was submitted as part of the original expansion of the Mine to 2,000,000 tpy (Golder 2007), PotashCorp has decided to install turbo scrubbers (previously referred to as fluid bed scrubbers in the 2007 report). As mentioned previously in the 2007 report, this type of scrubber has been successfully used in the potash industry in Europe, and provides the opportunity for heat recovery and uses a minimal amount of water.

White dryer stack emissions for the plant for 2004, 2005, and 2006 were 561 mg/drm3, 405 mg/drm3, and 388 mg/drm3, respectively. It is estimated, based on test work at PotashCorp Rocanville, that if the red dryers were equipped with turbo scrubbers, then the emissions would be approximately 200 mg/drm3. With the fluid bed scrubber, there is potential to further reduce the dryer stack emissions levels, recover heat for use in the crystallization process and reduce the water requirements over traditional venturi scrubbers. Wet crushing in the flotation circuit will eliminate exposure to dust in the crushing area. New and larger compaction and screening equipment is better sealed and requires significantly less dust collection pick-up points. In addition, fewer pieces of materials handling equipment will be required, reducing the amount of dust generation due to product handling.

2.7 Decommissioning and Reclamation In April 2006, PotashCorp provided a decommissioning and reclamation plan (D&R plan) to MOE for the Mine (PotashCorp 2006). The Project will be accounted for in the next revised D&R plan to be submitted to the MOE after 2011.

2.8 Project Schedule Table 2-2 presents the proposed Project construction schedule and major construction milestones associated with each time period. This is the preferred schedule, however, it is recognized that construction initiation will be dependent on regulatory approval.

Table 2-2: Proposed Project Schedule Time Period Project Milestone

November 2008 Start of mechanical, piping, electrical and utilities work.

March 2010 Construction completed.

April 2010 Final tie-ins and commissioning of expansion.

Summer 2010 Gradually ramp up to production at 3,000,000 tonnes per year.

3.0 EXISTING ENVIRONMENT General and site-specific biophysical features of the Project area are described in the following sections. For this assessment, the existing environment includes information pertaining to climate, geology, terrain, soil, vegetation, wildlife, aquatic resources (including hydrology and fish), land use, and heritage resources. For the purposes of this report, the Project area is defined as a 1.0 km buffer extending beyond the current Mine footprint, and the Project region is defined as a 10 km buffer extending beyond the Project area.


3.1 Climate The climate of the Saskatoon region can be described as semi-arid, characterized by long cold winters and hot, dry summers (PotashCorp 2006). Total annual precipitation averages 347 mm for Saskatoon. Low groundwater infiltration rates are inferred from the high rate of evapotranspiration (>700 mm/yr) over much of the area. As a result, the majority of groundwater infiltration occurs as depression-focused recharge beneath the many surface water bodies. The mean July temperature is 18.6°C and mean January temperature is 17.5°C (PotashCorp 2006).

3.2 Geology 3.2.1 Regional Summary The following summary of the regional geology and hydrogeology at the Mine was compiled from previous consulting reports, drilling programs, resource exploration borehole logs, and SaskWater groundwater borehole records.

In the Project region, the uppermost bedrock stratigraphy, in ascending order, consists of the Lea Park Formation, the Judith River Formation, and the Bearpaw Formation, all of the Upper Cretaceous Montana Group (Figure 3-1). Structurally, the bedrock units dip to the south, towards the centre of the Williston Basin, which is located near Bismarck, North Dakota. The lateral distribution of these formations has been affected by erosion and salt collapse. The Lea Park Formation is underlain by more than 1,000 m of sedimentary rocks, then the Precambrian crystalline basement. Because the Lea Park Formation forms a thick aquitard, only it and the overlying formations are discussed here.

The Cretaceous bedrock units are overlain by unconsolidated sediments. These include the Tertiary-aged pre-glacial Empress Group, the Early and Middle Pleistocene Sutherland Group till and intertill sequences, the Late Pleistocene Saskatoon Group till and intertill sediments, and the post-glacial Surficial Stratified Deposits (SSD). The SSD are included as part of the Saskatoon Group and are Holocene in age (Figure 3-2).

3.2.2 Upper Cretaceous Bedrock The near-surface bedrock units are Upper Cretaceous in age and include in ascending order, the Lea Park Formation, Judith River Formation, and Bearpaw Formation, all of the Montana Group. The bedrock surface elevation in the vicinity of the Mine ranges from 430 metres above sea level (masl) to 450 masl, representing a local bedrock high.

The Upper Cretaceous Lea Park Formation consists of 250 m to 275 m of grey, highly plastic, marine silt, and clay shale, with scattered bentonite beds. The upper portion is non-calcareous, while the lower portion consists of calcareous shale. Over the regional Project area, the Lea Park Formation is laterally continuous. The Lea Park Formation forms the bedrock surface in areas where the overlying formations have been removed by post-depositional erosion. It forms the bedrock surface in the Tyner Valley bedrock valley located west and northwest of the Mine. East of the Mine, the Lea Park Formation is also exposed in subcrop and may form a tributary of the Tyner Valley.

The Judith River Formation overlies the Lea Park Formation. This formation consists largely of non-marine deltaic and very fine to medium-grained sand with silt and clay. The Judith River Formation forms the bedrock surface over most of the regional area, except where eroded to expose the Lea Park Formation or where remnants of the overlying Bearpaw Formation exist.

The Bearpaw Formation consists of non-calcareous, over-consolidated, highly plastic, marine silt and clay shale, similar in composition to the Lea Park Formation. Regionally, the Bearpaw Formation exists as discontinuous erosional remnants, as it has been affected by glacial and fluvial erosion. A thin (approximately 2 m to 3 m) remnant of the Bearpaw Formation exists beneath a portion of the TMA.

TIME UNITS ENVIRONMENTSTRATIGRAPHICUNITS POTASHCORP CORY AREA

QU

ATE

RN

AR

YTE

RTI

AR

Y

HOLOCENE

LATEWISCONSIN

MIDDLEWISCONSIN

EARLYWISCONSIN

SANGAMON

ILLINOIAN

LATE

PLE

ISTO

CEN

E

SA

SK

ATO

ON

GR

OU

P

BATTLEFORDFORMATION

PRE-ILLINOIAN

EAR

LY A

ND

MID

DLE

PLE

ISTO

CE

NE

PLI

OC

ENE

SU

THE

RLA

ND

GR

OU

PE

MP

RE

SS G

RO

UP

GLACIAL

DEGLACIAL

POSTGLACIAL SOIL AND STRATIFIED DEPOSITS

FLO

RA

L FO

RM

ATIO

NW

ARM

ANFO

RM

ATI

ON

DU

ND

UR

NFO

RM

ATI

ON

MENNONFORMATION

PROGLACIAL

PROGLACIAL

PROGLACIAL

PROGLACIAL

PROGLACIAL

GLACIAL

GLACIAL

NONGLACIAL

NONGLACIAL

NONGLACIAL

BATTLEFORD FORMATION till

FLORAL FORMATION upper till

FLORAL FORMATION lower till

WEATHERED ZONE

RIDDELL MEMBER

LOWER FLORAL SAND ANDWEATHERED ZONE

2

1

PROGLACIAL

PROGLACIAL

PROGLACIAL

PROGLACIAL

PROGLACIAL

PREGLACIAL

GLACIAL

GLACIAL

GLACIAL

NONGLACIAL

NONGLACIAL

PROGLACIAL

STRATIFIED DEPOSITS

UNDIFFERENTIATED

CR

ETA

CE

OU

S

MAA

STR

ICH

TIAN

MO

NTA

NA

GR

OU

P

MARINE BEARPAW FORMATION SHALE(silt and clay)

CAM

PAN

IAN

BEARPAWFORMATION

DELTAIC JUDITH RIVER FORMATION(silt and sand)

JUDITHRIVER

FORMATION

MARINE LEA PARK FORMATION SHALE(silt and clay)

LEA PARKFORMATION

STRATIGRAPHIC COLUMN OF REGIONALGEOLOGY IN THE POTASHCORP CORY AREA

.

FIGURE: 3-1Reference:After Christiansen, 1992, Saskatchewan Industry and ResourcesStratigraphic Correlation Chart and PCS, 2006.

W

N

E

S

PotashCorpCory Mine

W E

N S

SURFICIAL STRATIFIED DEPOSITS

SASKATOON GROUP TILLS

STRATIGRAPHIC COLOUR LEGEND

INTERTILL AQUIFER

LOWER FLORAL SAND

SUTHERLAND GROUP TILLS

EMPRESS GROUP SANDS AND GRAVELS

BEARPAW FORMATION SHALE

JUDITH RIVER FORMATION SILT & SAND

LEA PARK FORMATION SHALE

REGIONAL GEOLOGIC CROSS SECTIONSFOR THE POTASHCORP CORY MINE AREA

.

FIGURE: 3-2

Rge 6 W3M

Twp34

Reference:Cross sections adapted from MDH, 2004.

Rge 7 W3MRge 8 W3M

Twp35

Twp36

Twp37

20x Vertical Exaggeration

20x Vertical Exaggeration


3.2.3 Tertiary and Quaternary Deposits Regionally, the Upper Cretaceous bedrock is overlain by Tertiary and Quaternary age sediments. The pre-glacial Empress Group sediments were deposited in the Tertiary period and are overlain by the Quaternary Sutherland and Saskatoon Groups deposited in the Pleistocene and Holocene ages. The till sequences that characterize much of the regional Quaternary stratigraphy in the region were deposited by the successive retreat and advance of continental glaciers. The till sequences are overlain by postglacial deposits termed the SSD. In the vicinity of the Mine, the Tertiary and Quaternary sediments range in thickness from approximately 45 m to 75 m.

3.2.3.1 Empress Group The pre-glacial Tertiary sediments of the Empress Group were deposited between the bedrock surface and the oldest local till unit (Sutherland Group). The Empress Group was named by Whitaker and Christiansen (1972). It consists of two units: the lower, proglacial stratified deposits, which are confined to valleys incised into the bedrock surface, and the upper unit which consists of blanket-like deposits consisting of metamorphic, igneous and carbonate rock fragments (Sauer and Christiansen 1996).

Sediments of the Empress Group are absent directly beneath the TMA. However, these sediments infill the Tyner Valley bedrock valley west of the Mine, where they are up to 70 m thick.

3.2.3.2 Sutherland Group The Sutherland Group was deposited between the Empress Group and Saskatoon Group (Christiansen 1968). The Sutherland Group is approximately 20 m to 30 m thick in the vicinity of the TMA (MDH 2004). This group of sediments is differentiated from the overlying Saskatoon Group by carbonate content, stratigraphic sequence, texture, colour, Atterburg Limits, electrical resistance, and the presence of weathering zones, where present (Sauer and Christiansen 1996). Regionally, it consists of three formations of till and intertill sand deposits in ascending order: the Mennon, the Dundurn, and the Warman Formations. Generally, the till formations of the Sutherland Group are undifferentiated in the vicinity of the Mine.

Intertill sand units exist beneath the TMA. These units are generally 5 m to 10 m thick where they exist, and may reach a maximum thickness of 20 m. Work by AGRA Earth and Environmental Ltd. (AGRA) and the Saskatchewan Research Council (SRC) (AGRA and SRC 1995), suggests that these sediments form a channel beneath the existing surficial meltwater channel, which trends northwest to southeast. This surficial channel may be an expression of older channels that exist at depth.

3.2.3.3 Saskatoon Group The Saskatoon Group comprises all sediments lying between the Sutherland Group and the ground surface (Christiansen 1968). The Saskatoon Group consists of the Floral Formation, the Battleford Formation, and the SSD in ascending order.

Floral and Battleford Formations The Floral Formation is subdivided into an upper and lower till unit with intertill sands and gravels. In the vicinity of the Mine, the Floral Formation is roughly 20 m to 35 m thick. Both of the Floral Formation tills have similar geophysical log-signatures and lithologic composition. Regionally, the upper and lower till units are hard, pale olive to grey, dense, and are composed of sandy to silty clays, with high carbonate contents (MDH 2004). The upper unit of the Floral Formation is overconsolidated and often jointed with iron and manganese staining on the joint faces.


Postglacial sediments from the lower sand unit at the base of the Floral Formation are part of a regional valley fill aquifer system termed herein as the Lower Floral sand. Locally, these sand deposits form a channel beneath the TMA that has been interpreted as trending the same direction as the surficial meltwater channel on-site. In the vicinity of the Mine, the Lower Floral sand is generally 5 m to 10 m thick where present, but can be up to 22 m in thickness.

Occasionally, a sand unit separates the upper and lower tills of the Floral Formation. This unit is officially named the Riddell member (Sauer and Christiansen 1996), but can only be conclusively identified by fossil evidence. More generally, the unit is termed the Floral intertill sand, and consists of iron- and manganese-stained sands. Where it is interpreted to exist at the Mine, it is up to 16 m thick (MDH 2004).

The Battleford Formation was deposited between the Floral Formation and the overlying SSD. In contrast to the Floral Formation sediments, the overlying oxidized Battleford Formation till is generally highly iron stained, but not jointed (Sauer and Christiansen 1996). The Battleford Formation consists of grey to light olive grey, massive, unstained, soft, friable till. It varies in thickness from 0 m to approximately 15 m in the vicinity of the Mine.

Surficial Stratified Deposits The SSD are located between the uppermost (Battleford Formation) and the ground surface, and typically extend 2 m to 10 m below ground surface. In the vicinity of the Mine, the SSD soil texture and type changes dramatically over short lateral and vertical distances, ranging from glaciolacustrine silts and clays to glaciofluvial and deltaic silts, sands, and gravels. In general, there exists a 0.3 m to 1.0 m sand and gravel layer overlying the uppermost till, over which there lies sandy or clayey deposits with clay or sand lenses of varying thickness.

3.3 Hydrogeology 3.3.1 Aquifers The principal aquifers identified in the vicinity of the Mine include (Figure 3-3):

Judith River Formation Aquifer;

Tyner Valley Aquifer (Empress Group);

Sutherland Group Intertill Aquifers;

Lower Floral Sand Aquifer;

Floral Intertill Aquifer; and

Surficial Sand/Silt/Gravel Aquifer.

The low-permeability bedrock formations such as the Lea Park and Judith River Formations, as well as the till and silt and clay sediments, act as aquitards in the region.

3.3.1.1 Judith River Formation Aquifer The Judith River Formation is found almost continuously throughout the region, except where it has been affected by collapse features and erosion. The hydraulic conductivity of the Judith River aquifer ranges between approximately 6 x 10-6 m/s and 1 x 10-5 m/s (MDH 2004).

LEA PARK FORMATIONSHALE

BATTLEFORDFORMATION TILL

EMPRESS GROUPSANDS AND GRAVELS

LOWER FLORALFORMATION TILL

SUTHERLANDGROUP TILLS

UPPER FLORALFORMATION TILL

LOWER FLORAL SANDAQUIFER

SURFICIAL STRATIFIED DEPOSITS

JUDITH RIVERFORMATIONSILT & SAND

SA

SK

ATO

ON

GR

OU

PS

UTH

ER

LAN

D G

RO

UP

MO

NTA

NA

GR

OU

P

FLORAL INTERTILLAQUIFER AQUIFER

AQUITARD

AQUITARD

AQUITARD/AQUIFER

AQUITARD

AQUIFER

SUTHERLANDINTERTILL AQUIFER

SUTHERLANDINTERTILL AQUIFER

AQUITARD

AQUITARD

AQUITARD

AQUIFER

AQUIFER

AQUIFER

AQUIFER

AQUITARD

AQUITARD

SILT and CLAY SILT, SANDand GRAVEL

BEARPAWFORMATION

SHALE

GENERAL HYDROSTRATIGRAPHY OFTHE POTASHCORP CORY MINE AREA

.

FIGURE: 3-3


3.3.1.2 Tyner Valley Aquifer (Empress Group) The Tyner Valley aquifer is a major buried valley aquifer system in Saskatchewan. It is connected to the Battleford Valley, which eventually drains into the North Saskatchewan River. This buried valley aquifer is located approximately 1.4 km west of the Mine TMA, and is up to 70 m thick. The Tyner Valley bedrock valley is infilled with sands and gravels of the Empress Group. The Tyner Valley was cut into the Judith River Formation, and the two function as a single hydrogeologic unit. The hydraulic conductivity of the Tyner Valley Aquifer ranges from approximately 8 x 10-5 m/s to 1 x 10-4 m/s (MDH 2004).

3.3.1.3 Sutherland Intertill Aquifers Thin intertill beds of sand exist in the Sutherland Group tills. These aquifers are generally small and discontinuous in the vicinity of the Mine. In general, these units are located 30 m to 40 m below the ground surface and are 5 m to 10 m thick, but may be up to 20 m thick. AGRA and SRC (1995) suggest that these sediments form a channel beneath the existing surficial meltwater channel, trending northwest to southeast beneath the TMA. Hydraulic properties of these deposits are not well known due to the lack of wells completed in these sands (MDH 2004).

3.3.1.4 Lower Floral Sand Aquifer The Lower Floral Sand Aquifer consists of sands, gravels, and occasional thin interfingers of till and clay. In the vicinity of the Mine, the Lower Floral sand is generally 5 m to 10 m thick where present, but can be up to 22 m in thickness (AGRA and SRC 1995). The hydraulic conductivity of this unit may range from 1 x 10-4 m/s to 1 x 10-5 (MDH 2004).

Regionally, the Dalmeny Aquifer is equivalent stratigraphically to the Lower Floral Sand Aquifer. According to mapping and cross-sections from Christiansen et al. (1970), it appears that there is no connection between the Lower Floral Sand Aquifer at the Mine and the Dalmeny Aquifer, located 6 km to the north.

3.3.1.5 Floral Intertill Aquifer The Floral Intertill Aquifer consists of sand units within the Floral Formation, which includes the sands of the Riddell Member. This aquifer occurs as hydraulically discontinuous scattered deposits in the vicinity of the Mine, and may be up to 16 m thick (MDH 2004). Hydraulic properties of this deposit are not well known due to the lack of wells completed in this unit (MDH 2004).

Regionally, these intertill sands form an important aquifer known as the Tessier Aquifer, located 6.5 km west of the Mine. It is unlikely that the sands in the vicinity of the TMA are hydraulically connected to the Tessier Aquifer.

3.3.1.6 Surficial Aquifers Near the Mine, the lateral extent of surficial sands and gravels is very complex. However, the sandy units of the SSD have been interpreted as largely continuous (MDH 2004), and may represent a brine migration pathway from the TMA.

3.3.2 Aquitards The main aquitards that control vertical brine migration in the area of the Mine TMA are the clays of the SSD, and the Battleford and Floral tills that overlay the Floral aquifers. The main aquitards are 15 m to 30 m thick (on average 25 m thick) in the vicinity of the Mine (MDH 2004). Tills in the Sutherland Group and Saskatoon Group impede vertical groundwater flow to and from the Tyner Valley, the Sutherland and Floral Intertill Aquifers and underlying units.


Typical hydraulic conductivity values for Saskatchewan tills are summarized in a report written for the SPPA (Maathuis and van der Kamp 1994). Generally, thick, unfractured tills in the Saskatoon and Sutherland Groups have hydraulic conductivities between 1 x 10-11 m/s to 1 x 10-10 m/s. The shallower, fractured and unoxidized tills possess hydraulic conductivities that range between 1 x 10-9 m/s to 1 x 10-8 m/s. Hydraulic conductivities of 1 x 10-8 m/s to 1 x 10-7 m/s are usual for shallow, oxidized and fractured tills within the Floral Formation.

3.3.3 Groundwater Flow Potentiometric head contours indicate that groundwater in the SSD and Floral Formation aquifers flow towards the south and drain into Moon Lake and the South Saskatchewan River (MDH 2004). Groundwater flow in the Saskatoon Group and Sutherland Group intertill aquifers is unknown, but may also flow towards the south, following the same trend as the overlying channels. In the Judith River Formation, groundwater flow is to the north and east. Regional aquifers such as the Tyner Valley, Tessier, and Dalmeny Aquifers flow to the north, towards the North Saskatchewan River (Maathuis 2005; Christiansen et al. 1970).

3.4 Topography The topography in the Project region is classified as gently undulating (Christiansen et al. 1970). The difference in topographic relief for the Project region ranges from about 480 masl in the area of Moon Lake and the South Saskatchewan River, with a maximum elevation of approximately 530 masl situated southwest of the Mine (Figure 3-4). There is a major topographic high located between the Mine and Agrium’s Vanscoy Potash Mine located approximately 18 km to the west. This topographic feature causes surface water on the east side of this high to drain towards the South Saskatchewan River, while drainage west of this elevated area flows towards Rice Lake (Figure 3-4).

The TMA is located on a shallow, former meltwater, river channel feature that forms an important drainage feature in the Project region. This drainage feature is outlined by the 500 m contour (Figure 3-4). The ground elevation rises approximately 25 m to the west of the Mine, which forms a watershed divide 5 km west of the Mine. This surface feature allows surface water to drain through this channel toward the South Saskatchewan River on an intermittent basis (i.e., during major storm events and spring melt).

The topography in the Project area is characterized as undulating with sandy to clayey glacio-lacustrine plain features (Acton and Ellis 1978). Slopes range from 0.5% to 5% and were developed on outwash plains, glacial drainage channels, or shallow lacustrine plains with knoll and depression patterns (Acton and Ellis 1978).

3.5 Hydrology Surface water flow in the vicinity of the Mine typically occurs on a seasonal intermittent basis during spring melt run-off periods or during a major storm event. The direction of surface water flow is from northwest to southeast along the meltwater channel. During most of the year, the stream channels in the vicinity of the Mine are dry.

The most significant local surface water body in the area is the South Saskatchewan River, which flows from south to north. Generally, surface water drainage in the vicinity of the Mine is directed towards the South Saskatchewan River. Most of the local groundwater recharge occurs through these water-filled depressions (sloughs) by a process known as “depression-focussed recharge”. In other areas, recharge occurs in other topographic lows. Numerous seasonal and permanent surface water bodies exist throughout the Project region. This indicates that the water table is located close to the ground surface.

PotashCorpCory Mine

Rice Lake

Moon Lake

South Saskatchewan River

TOPOGRAPHY OF AREA AND LOCATIONOF NEAREST SURFACE WATERBODIES

FIGURE: 3-4

Rge 6 W3MRge 7 W3MRge 8 W3M

Twp35

Twp36

Reference :NTS Mapsheet 73B/2,3NAD27 Zone 13


3.6 Soils Soil development in the Project region has been influenced primarily by glaciolacustrine and glaciofluvial depositional patterns. As illustrated in Figure 3-5, the Mine is situated on the Asquith, Bradwell, and Elstow soil associations (Acton and Ellis 1978). These associations are typically formed from glacio-fluvial and lacustrine deposits with a predominance of sorted gravel, sand, silt, or clay textures (Acton and Ellis 1978). The following summarizes each of the soil associations and are based on Acton and Ellis (1978):

Asquith – these soils are predominantly Orthic Dark Brown Chernozems and were formed in coarse to moderately coarse textured glacio-fluvial deposits with significant carbonated and/or saline variants. Asquith soils occur primarily in undulating topography on glaciofluvial plains. The surface textures of Asquith soils range from loamy sand to sandy loam and are generally free of stones except where glacial till is near the surface. Approximately half the Project area is comprised of Asquith soils (Figure 3-5).

Bradwell - these soils are Orthic Dark Brown Chernozems with significant instances of Eluviated Dark Brown soils occurring. Bradwell soils developed in medium to moderately fine textured, glacio-lacustrine deposits and occur primarily on nearly level and undulating topography. The surface textures are predominantly loam to very fine sandy loam or mixtures thereof. These soils are generally stone-free; however, where glacial till is near the surface a slight to moderate amount of stones may occur. Bradwell soils are located primarily along the eastern portion of the Project area (Figure 3-5).

Elstow – these soils are comprised of Orthic Dark Brown Chernozems with significant instances of Eluviated Dark Brown soils occurring. Elstow soils developed in medium to moderately fine textured, silty glacio-lacustrine deposits and occur primarily on glaciolacustrine plains with undulating topography. The primary surface texture is loam. These soils are generally stone-free, however, where glacial till is close to the surface, stone content may vary from slight to moderate. Elstow soils are found in the northeast corner of the Project area (Figure 3-5).

3.7 Vegetation The Mine is located on the Saskatoon Plain landscape area of the Moist Mixed Grassland Ecoregion in the Prairie Ecozone (Acton et al. 1998). This ecoregion signifies the northern extension of open grassland in the province. As shown in Figure 3-5, the landscape within the Project area is a mosaic of native vegetation, introduced perennial forage crops, and cultivated lands.

3.8 Vegetation The Mine is located on the Saskatoon Plain landscape area of the Moist Mixed Grassland Ecoregion in the Prairie Ecozone (Acton et al. 1998). This ecoregion signifies the northern extension of open grassland in the province. As shown in Figure 3-5, the landscape within the Project area is a mosaic of native vegetation, introduced perennial forage crops, and cultivated lands.

In May 2007, a field survey was completed by Beryl Wait (vegetation specialist, Golder). The survey was completed in areas outside the current Mine footprint where the proposed expansion activities were be planned as part of the 2007 and 2008 expansions of the Mine. The results of the survey are provided below and a habitat map for the Project area is provided in Figure 3-6.

PotashCorpCory Mine

Rge 6 W3M

Twp36

Twp35

Rge 7 W3M

Group Name Description

Soil Association

AsquithA1 - Dominate Orthic Dark Brown

A3 - Dominate Orthic Dark Brown, Significant Carbonated and/or Saline Chernozemic Dark Brown soils

BradwellBr3 - Dominate Orthic Dark Brown, Significant Eluviated Dark Brown

Br5 - Dominate (Chernozemic Dark Brown and Carbonated and/or Saline Chernozemic Dark Brown soils)

Elstow E3 - Dominate Orthic Dark Brown, Significant Eluviated Dark Brown

Unconformity Clay C - Clay

Texture

fl fine sandy loam

l loam

ls loamy sand

sl sandy loam

Landforms

F Glacio-Fluvial Plains - Unpatterned, outwash plains

Fd Glacio-Fluvial Plains - Dissected outwash plains or glacial drainage channels

La Glacio-Lacustrine Plains - Shallow lacustrine plains with knoll and depression patter

Ld Glacio-Lacustrine Plains - Dissected

Slope Class2 Slope = 0.5 - 2%

3 Slope = 2 - 5%

E5lHy3lLa3

Significant TextureSignificant Soil AssociationDominate Texture

Dominate Soil Association

Slope ClassType of Landform

Major Landform

SOILS MAP

.

FIGURE: 3-5


C

MG

MG

C

C

C

C

W

TA/TS

TS

TA/TS

W

TA/TS

MG

C

C

MG/SS

SS/MG

C

C

TA

TA

NG

Existing Facilities

Proposed Expansion

Existing Facilities


Approximate Location ofProposed Disposal Well

Legend

HABITAT MAP

.

FIGURE: 3-6

C

MG

NG

SS

TS

TA

W

Cultivated

Modified Grassland

Native Grassland

Short Shrub

Tall Shrub

Trembling Aspen

Wetland


The majority of the Project area consists primarily of cultivated fields (C) and modified grasslands (MG) that are dominated by introduced plant species, including smooth brome (Bromus inermis), quack grass (Elymus repens), Kentucky bluegrass (Poa pratensis ssp. pratensis), sweet clover (Melilotus alba and M. officinale), and Canada thistle (Cirsium arvense). The idle land located in the W½ 19-36-6 W3M, north of the Mine, has been subject to a burn in the past and supports a dense area of regenerating aspen suckers and shrubs, with some dead snags, surrounding a wetland depression. Also located in this area is modified grassland left idle or used as pasture, with junk piles including old trucks, metal drums, and fencing wire present.

Remnant native vegetation communities are comprised of small, isolated treed bluffs (TA), tall shrub (TS), short shrub (SS), and adjacent native grassland (NG) patches. Woody species include trembling aspen (Populus tremuloides), balsam poplar (P. balsamifera), western snowberry (Symphoricarpos occidentalis), prickly rose (Rosa acicularis), silverberry (Eleagnus commutata), red osier dogwood (Cornus sericea ssp. stolonifera), and willows (Salix spp.). Native plant species such as common yarrow (Achillea millefolium), goldenbean (Thermopsis rhombifolia), pasture sage (Artemisia frigida), and goldenrod (Solidago spp.), are present either through persistence or re-establishment but do not dominate the native communities.

Small, ephemeral and semi-permanent wetlands (W) sporadically located throughout the Project area supported of emergent wetland species such as sedges (Carex spp.), canary reedgrass (Phalaris arundinacea), marsh reedgrass (Calamogrostis canadensis), slough grass (Beckmannia syzigachne), and common cattail (Typha latifolia).

A search of the Saskatchewan Conservation Data Centre (SKCDC) (2008), revealed no historical records of any species listed federally by the Committee on the Status of Endangered Wildlife in Canada (COSEWIC) (2008) within the Project area, nor any provincially tracked species (MOE 2008). No federally or provincially tracked plant species were observed during the May 2007 field survey and the potential for listed or tracked plant species to occur is considered to be low. This is based on the presence of highly modified habitats within and adjacent to the Project area, combined with the prevalence of introduced, weedy species which tend to out-compete many of the native plant communities.

3.9 Wildlife Habitat and Wildlife Within the Project region, there are no lands legislated under the Wildlife Habitat Protection Act (WHPA) (Government of Saskatchewan 2005). WHPA lands are Crown lands legislated for protection and management for agriculture and wildlife and in this case, “wildlife” is not restricted to game species. Based on Stewart (1980), several areas of classified wildlife habitat for white-tailed deer and sharp-tailed grouse (Tympanuchus phasianellus) can be found along the southern extent of the Project region. Classified wildlife habitat is defined as the best habitat within the map area for the species listed, that may be of seasonal or year-round importance and is essential to the maintenance of current populations (Stewart 1980). No Saskatchewan Fish and Wildlife Development Fund or Saskatchewan Wildlife Federation Habitat Trust Lands are located in the Project region (MOE 2008).

While a large portion of the Project region has been previously disturbed or altered by the mining operation and adjacent agricultural use and expansion, suitable habitat for use by wildlife remains. Approximately 240 ha within PotashCorp Cory’s land holdings are currently maintained in a natural condition as an effort to preserve habitat. Based on previous assessments (PotashCorp 2006), habitat types within the Project area likely support a variety of wildlife species, including ungulates, furbearers, rodents, waterfowl and a number of upland breeding birds. In general, the Mine site and surrounding cultivated lands have low potential to support wildlife species.

Remnant aspen bluffs, wetland basins and grassland habitats are considered to have moderate to high potential to support wildlife.


With the abundance of perennial forage crops in proximity to woody patches (i.e., trembling aspen clones), white-tailed deer (Odocoileus virginianus) are commonly found in the Project region. Other common wildlife species that may find suitable habitat in the Project region include coyote (Canus latrans), red fox (Vulpes vulpes), American badger (Taxidea taxus), striped skunk (Mephitis mephitis), white-tailed jackrabbit (Lepus townsendii), and Richardson’s ground squirrel (Spermophilus richardsonii).

Evidence of deer, rabbits, and porcupine using the wooded habitat in the north end of the Project area was noted during the May 2007 field survey. A skunk was observed in the junk piles in the NW 18-36-6 W3M and northern pocket gopher mounds were observed on the slopes of the railroad tracks.

The Project region contains several wetlands and shallow lakes used by a variety of waterfowl and shorebird species. Common species found typically include mallard (Anas platyrhynchos), gadwall (Anas strepera), northern pintail (Anas acuta), blue-winged teal (Anas discors), northern shoveler (Anas clypeata), American coot (Fulica americana), Wilson’s phalarope (Phalaropus tricolor), killdeer (Charadrius vociferous), American avocet (Recurvirostra americana), and lesser yellowlegs (Tringa flavipes) (PotashCorp 2006).

Upland birds in the Project region would typically include gray partridge (Perdix perdix), eastern kingbird (Tyrannus tyrannus), western meadowlark (Sturnella neglecta), song sparrow (Melospiza melodia), and Vesper sparrow (Pooecetes gramineus). Raptors commonly found in the Project region include Swainson’s hawk (Buteo swainsoni), red-tailed hawk (Buteo jamaicensis), northern harrier (Circus cyaneus), and great horned owl (Bubo virginianus).

During the May 2007 field survey, American coots, blue-winged teal, northern pintail, and mallard were observed in the wetlands located in the SW 19-36-6 W2M and NW 18-36-6 W3M. Other avian species birds seen or heard calling in the modified grasslands, cultivated fields, and wetland basins within and adjacent to the Project area included red-winged blackbird, western meadowlark, killdeer, gulls (Larus spp.), Canada geese, gray partridge, and vesper sparrow.

Eight wildlife species listed by COSEWIC (2008) have historical breeding ranges that overlap with the proposed Project area and include:

endangered - piping plover (Charadrius melodus);

threatened - loggerhead shrike (Lanius ludovicianus), Sprague’s pipit (Anthus spragueii), common nighthawk (Chordeiles minor); and

species of concern - long-billed curlew (Numenius americanus), short-eared owl (Asio flammeus), northern leopard frog (Rana pipiens), and monarch butterfly (Danaus plexippus).

None of the listed species were identified during the field survey. However, based on the habitat types present within the Project area, it is anticipated that only the loggerhead shrike, Sprague’s pipit, common nighthawk, short-eared owl, and monarch butterfly potentially could be encountered.

A number of other wildlife species whose population numbers are being monitored by MOE and the associated SKCDC database (MOE 2008), such as the great blue heron (Ardea herodias), Baird’s sparrow (Ammodramus bairdii), prairie long-tailed weasel (Mustela frenata), American badger, and prairie shrew (Sorex cinerius), may also occur in the Project area. However, none of these species were noted during the field survey; habitat potential on the Mine would be considered negligible, and low in the Project area.

A historical observation of the olive-backed pocket mouse (Perognathus fasciatus) was recorded approximately 4.5 km northwest of the Mine. This species has a provincial rare species ranking of S3 (vulnerable and may be susceptible to extirpation by large scale disturbances). This record dates back to 1965 and no current observations have been recorded (MOE 2008). This species prefers grazed and ungrazed meadows on sandy soils in shortgrass habitat types. Suitable habitat for this species is not likely to be found in the Project area.


3.10 Fish and Fish Habitat The Mine is situated approximately 9 km west of the of the South Saskatchewan River and about 10 km northwest of Moon Lake, an oxbow lake created from this river system. There are no permanent watercourses or waterbodies located in the Project area, or that receive run-off or discharges from the Mine; therefore, no potential fish habitat is expected to be present.

3.11 Heritage Resources As per Section 66 of the Heritage Property Act (Government of Saskatchewan 2006), all heritage resources on privately owned land, Provincial Crown Land and those Prairie Farm Rehabilitation Administration lands that are leased from Ministry of Agriculture are considered to be property of the Crown. These sites are managed by the Heritage Resources Branch at the Department of Culture, Youth and Recreation. Section 63 of the Heritage Property Act (Government of Saskatchewan 2006) empowers the Minister to require a developer to conduct a Heritage Resources Impact Assessment (HRIA) for any project that has the potential to impact significant heritage resources. It is the responsibility of the company to submit all proposed operations for regulatory review; developers are obligated to commission a qualified archaeologist to conduct any required assessment or mitigative procedures.

A letter was sent to the Heritage Resources Branch informing them of the Project (File 07-930). As there are no known heritage resources located in potential conflict with the Project and the area has been previously disturbed, there is low potential for heritage resources to occur. Therefore, an HRIA is not required for the Project (Seguin, pers. comm. 2007).

3.12 Land Use Land use in the Project region is primarily agricultural, with cereal grains being the main crop. There are some extensive areas of pasture land and non-productive land south of the Mine (Christiansen et al. 1970). Recreational areas are found 10 km to 20 km south and east of the Mine near Pike Lake, Moon Lake, and the South Saskatchewan River. Other than farm dwellings and acreages, the closest population centres are the City of Saskatoon, located approximately 7 km east of the Mine and the Town of Vanscoy, approximately 12 km southwest of the Mine.

There are several acreages within 10 km of the Mine. The acreages extend northwest around the village of Grandora, southwest towards Vanscoy, and southeast towards Pike Lake. The Moon Lake golf course is situated near Moon Lake, and market gardens and nurseries are located closer to the South Saskatchewan River.

There are no designated areas within the Project region. Therefore, no International Biological Program sites, provincial or regional parks or Ducks Unlimited Projects will be impacted by the Project.

The land owned by PotashCorp Cory is zoned as commercial or pasture, while the remainder is zoned agricultural.

3.13 Air Quality Air emissions from the Mine are regulated by the Clean Air Act (Government of Saskatchewan 1989) and the Potash Refining Air Emissions Regulations (Government of Saskatchewan 1983). Dryer scrubber emissions are tested annually to document whether air emissions are less than the specified maximum of 570 mg/drm3. A certified contractor is hired to perform the testing. A copy of the test results is forwarded to MOE yearly to verify that the Mine is complying with the regulations. In 2004, 2005 and 2006, the emissions from the white dryer stack were 561 mg/drm3, 405 mg/drm3, and 388 mg/drm3, respectively.


Table 3-1: Federally Listed Wildlife Species that May Occur Within the Proposed Project Region, 2008

Common

Name Scientific Name

National

Status1

Provincial

Status2 Habitat Potential for Occurrence in the Project Area3

Piping plover Charadrius melodus Endangered S3B

Piping plover’s nests are shallow depressions in sand or gravel, lined with small pebbles (Hartley and Hay, in Saskatchewan Natural History Society 2002).

Low - suitable habitat may be present associated with the brine ponds. This species has been recorded as breeding in the Saskatoon area (Smith 1996), but there are no historical sightings of this species in the Project region (MOE 2008).

Loggerhead shrike

Lanius ludovicianus excubitorides

Threatened S4B

Loggerhead shrikes typically inhabit open areas having shrub and hedgerow vegetation utilized for hunting and nesting habitat (Godfrey 1986; Telfer et al. 1989).

Moderate - although confirmed breeding records for this species are available within the region west of Saskatoon (Smith 1996), this species has not been documented as breeding in the Project region (MOE 2008). There is limited habitat available in the Project region.

Sprague’s pipit Anthus spragueii Threatened S4B

Sprague’s pipits are typically found in prairie grasslands that have not been burned or ploughed (Godfrey 1986). They can also be found in areas of native grassland with intermediate vegetation height and litter depth, or in moderately grazed areas (Smith 1996).

Low - no historical sightings were listed for this species in the Project region by the SKCDC (MOE 2008), although this species has been confirmed as breeding in the 73 B/2 map area (Smith 1996). There is limited habitat in the Project region.

Common nighthawk Chordeiles minor Threatened

S5B S5M

This species forages in the air over cities or open country. They roost in trees in open woodlands, fence posts in open areas, or on the ground. Nests on the ground in woodland openings and clearings, natural open areas, burnt lands (Godfrey 1986; Smith 1996).

Low - Smith (1996) records this species as a breeder within the 73 B/2 map area, but there is limited habitat in the Project region.

Short-eared owl Asio flammeus Special

Concern S3B S2N

Short-eared owls typically prefer open grassland and hayland areas, particularly adjacent to wetlands and wet meadows (Godfrey 1986).

Moderate - no historical sightings were listed for this species in the Project region (MOE 2008); however, this species has been identified as a confirmed breeder and winter resident in the 73 B/2 map area (Smith 1996). There is limited habitat in the Project region.


Table 3-1: Federally Listed Wildlife Species that May Occur Within the Proposed Project Region, 2008 (continued)

Common

Name Scientific Name

National

Status1

Provincial

Status2 Habitat Potential for Occurrence in the Project Area3

Monarch butterfly Danaus plexippus Special

Concern S3B

Exist primarily wherever milkweed (Asclepius) and wildflowers exist. This includes abandoned farmland, along roadsides, and other open spaces where these plants grow (Layberry et al. 1998).

Low - milkweed plants were not identified in the Project region.

Note: 1 COSEWIC (April 2008); ² SKCDC (2008); 3 Potential based on Smith (1996) and Golder database. Provincial Rank Definitions S1 Extremely Rare – 5 or fewer occurrences in Saskatchewan, or very few remaining individuals. S2 Rare – 6 to 20 occurrences in Saskatchewan, or few remaining individuals. S3 Rare/Uncommon – 21 to 100 occurrences in Saskatchewan; may be rare and local throughout province or may occur in a restricted provincial range (may be abundant in places). S4 Common – more than 100 occurrences; generally widespread and abundant, but may be rare in parts of its range. S5 Very Common – more than 100 occurrences widespread and abundant, but may be rare in parts or its range. SH – Historically known from Saskatchewan, but not verified recently (typically not recorded in the province in the last 20 years, Suitable habitat is thought to be still present in the

province and there is reasonable expectation that the species may be rediscovered. B – for a migratory species, rank applies to the breeding population in the province. M – for a migratory species, rank applies to the transient population in the province. N – for a migratory species, rank applies to the non-breeding population in the province.


4.0 ENVIRONMENTAL SCREENING The Project environmental screening identifies potential “likely effects” that may occur as a result of the Project. The significance of these potential impacts is predicted after a consideration of the corresponding environmental protection or mitigation measures to be implemented.

First, the spatial and temporal scope of the screening assessment is defined according to the interaction of the proposed activity and the environment. The potential effects to the environment from this interaction are considered, and the appropriate mitigation measures applied. The residual effects that may occur after the mitigation measures are implemented are then assessed using best professional judgment of experienced environmental assessment specialists, supplemented by available data.

4.1 Project Scope The scope of the Project environmental screening is defined both spatially and temporally by the construction and operation of the Project. PotashCorp has developed decommissioning and closure plans (PotashCorp 2006) that are regularly updated and submitted to regulatory agencies. Any information pertaining to the decommissioning and closure of the Project would be included as part of the next updated submission.

The spatial scope of the Project environmental screening (defined by the Project area) is determined based on the environmental effects potentially caused by various Project activities. It is anticipated that the Project effects will remain within the area that has been, and continues to be, used for industrial and agricultural activities.

4.2 Potential Environmental Impacts and Proposed Mitigation The assessment of potential environmental impacts involves consideration of the Project activities (described in Section 2.0) with respect to their effects on the environmental components (described in Section 3.0). In considering that the majority of the construction and operational phases of the Project will remain within the existing Mine footprint, it is anticipated that there will be no incremental impact on the following environmental components:

groundwater resources;

hydrology;

aquatic resources;

historical resources; and

noise.

Table 4-1 notes the anticipated “no residual effect” associated with the above environmental components.

Therefore, this section addresses the potential adverse environmental impacts to air quality, terrain and soils, vegetation, wildlife habitat and wildlife, and land use that may occur as a result of the Project. In addition, this section will identify the corresponding environmental protection or mitigation measures that will be implemented to avoid or limit the impacts on these environmental components (Table 4-1).

A level of importance is assessed for the predicted residual effects, which is evaluated as a function of the impact description criteria (Table 4-2). Professional judgment is used to assess the importance of the predicted residual effect, using the following definitions as guidelines. Table 4-3 defines the levels of importance of the residual effects, and Table 4-4 summarizes the residual effects, and assessed environmental importance of residual effects for the proposed Project.


Table 4-1: Potential Environmental Impacts and Mitigation Measures

Component Potential Issue Proposed Mitigation Predicted Residual Effect

Groundwater

Increased impacts to groundwater resources resulting from the installation of the raw water reservoir and new disposal well.

No changes in the brine pond and tailings footprints associated with the Project; as a result, it is expected that there will be no impacts to groundwater. Brine from the proposed disposal well will be injected into the Deadwood Formation. This is the same formation into which the brine is currently injected. The proposed disposal well will be cased to prevent brine migration into groundwater aquifers. Existing groundwater monitoring program will be continued throughout operations.

No residual effect anticipated.

Hydrology Alteration to local drainage system.

Existing ditches around the Mine site will continue to divert surface water away from the Mine site. Existing surface water monitoring program will be continued throughout operations.


Aquatic Resources

Alteration to water quality and fish habitat.

No treated water is discharged from the Mine site. There are no permanent watercourses or waterbodies located in the Project area; no potential fisheries habitat identified.


Terrain and Soils

Alteration to terrain and slope profiles. Disturbance to the soil profile (i.e., soil loss under infrastructure, compaction). Soil contamination from spills and wastes.

Construction and operation phases of the Project will remain within the existing Mine footprint or within previously disturbed areas. During the construction of the raw water reservoir, topsoil will be stripped and salvaged for replacement and reclamation, and will be kept separate from the subsoil to prevent admixing during excavation activities. The excavated subsoils will be used to construct the berms surrounding the reservoir. Slopes of the reservoir berms will be designed for stability. Appropriate reclamation (e.g., seeding) will be implemented and based on site-specific conditions and issues. Areas of concern will be promptly addressed by implementing appropriate stabilization measures. Any spills will be isolated and cleaned up immediately. In the event of a spill, an appropriate soil remediation program will be implemented that addresses site-specific conditions (e.g., soil type, chemical properties of the spill material, etc.). Further, a Contingency Plan will be prepared by the construction contractor prior to the commencement of activities and followed in the event of an emergency.

Alteration to terrain and soils.


Table 4-1: Potential Environmental Impacts and Mitigation Measures (continued)


Vegetation Loss and/or disturbance of vegetation communities.

Construction and operation phases of the Project will remain within the existing Mine footprint or within previously disturbed areas. The raw water reservoir will be located on land that is hayed and supports introduced, perennial forage plant species, and the proposed injection well route will be located on cultivated lands (i.e., no native vegetation communities present). Stripping and storage of topsoil prior to construction of the reservoir is expected to preserve growing medium for later replacement and reclamation, and enhance the natural regeneration once the various infrastructure components have been constructed.

Loss of perennial forage vegetation.

Wildlife Habitat and Wildlife

Loss and/or alteration of potential wildlife habitat. Loss and/or disturbance to listed wildlife species. Increased vehicle-wildlife collisions.

Construction and operation phases of the Project will remain within existing Mine footprint or within previously disturbed areas. Pre-Project survey was completed to identify sensitive wildlife habitat locations for avoidance or mitigation. The raw water reservoir, brine injection well, and associated pipelines will be located on land currently used for the production of perennial forage crops (hay) or agricultural crops, which is considered to be of low quality for wildlife (potential foraging habitat for ungulates and nesting habitat for grassland birds and waterfowl). Vehicle operators will be instructed to be aware of wildlife and safe speed limits will be enforced.

Loss of low quality wildlife habitat.

Heritage Resources

Disturbance to known or previously undiscovered heritage and archaeological resources.

Construction and operation phases of the Project will remain within existing Mine footprint or within previously disturbed areas. An Heritage Resources Impact Assessment is not required.


Land Use Disruption to land use.

Construction and operation phases of the Project will remain within existing mine footprint or be within previously disturbed areas owned or leased by PotashCorp. Land on which the raw water reservoir and brine injection well and associated above-ground pipeline will be constructed will be converted from agricultural use to industrial (associated with the Mine).

A change in land use, from agricultural to industrial.

Noise Increased noise levels from construction and operation activity.

There will likely be increased noise through the construction period as a result of the Project. Noise levels at the Mine are regulated by Saskatchewan Occupational Health and Safety Regulations. This Project will continue to comply with these Regulations.

Increase in noise levels.


Table 4-1: Potential Environmental Impacts and Mitigation Measures (continued)


Air Quality Change in air emissions associated with an increase in the milling rate.

Enhanced mill processing equipment will be installed as part of the Project. Vehicles and equipment will be properly maintained to emissions standards. Dryer scrubber emissions will continue to be tested annually by a third-party. All production and operation processes (including the emission control devices) will comply with current regulations.



Table 4-2: Impact Description Criteria for Considering the Importance of Residual Effects Criteria Description

Magnitude

A measure of the change that can occur as the Project proceeds, which can be low (above background conditions, but within established criteria or scientific threshold and the range of natural variability), medium (substantially above background conditions, but within established criteria or scientific threshold and the range of natural variability), or high (predicted to exceed established criteria or scientific threshold and will likely cause detectable change beyond the range of natural variability).

Spatial extent The area potentially affected, whether it is the site, locally (i.e., the Project area), the region, or beyond regional.

Occurrence

The frequency of the impact over the specified duration, whether it occurs infrequently, frequently, or continuously. Occurrence may also refer to the probability of an occurrence (i.e., the risk of an occurrence), which is described as none, very unlikely, unlikely or likely. The probability of an occurrence typically applies to an accident.

Duration

The length of time over which an effect occurs, which can be immediate (occurring only during construction), short-term (lasting longer than construction, but less than three years after), medium-term (lasting the life of the Project), and long-term (remaining after Project closure). Some effects can be reversed after the Project activity is halted, such as the remediation and reclamation of a site.

Table 4-3: Definition of the Assessed Levels of Importance of Residual Effects Level Definition

High Potential impact could threaten sustainability of the resource and should be considered a management concern. Research, monitoring, and/or recover initiatives should be considered.

Medium Potential impact could result in a decline in the resource to lower-than-baseline but stable levels in the study area after Project closure and into the foreseeable future. Regional management actions such as research, monitoring, and/or recovery initiatives may be required.

Low Potential impact may result in a slight decline in the resource in study area during the life of the Project. Research, monitoring, and/or recovery initiatives would not normally be required.

Minimal Potential impact may result in a slight decline in the resource in study area during construction phase, but the resource should return to baseline levels.

Table 4-4: Residual Effects and Assessed Environmental Importance

Predicted Residual Effect Direction Magnitude Duration Occurrence Geographic Extent

Assessed Importance

Alteration to terrain and soils. Negative Low Medium-term Likely Local Low

Loss of perennial forage vegetation. Negative Low Medium-

term Likely Local Low

Loss of low quality wildlife habitat. Negative Low Medium-term Likely Local Low

A change in land use, from agricultural to industrial. Negative Low Medium-

term Likely Local Low

Increased noise levels. Negative Low Immediate Likely Regional Minimal


5.0 SOCIO-ECONOMICS In 2005, PotashCorp identified their most current corporate sustainability goals and targets (PotashCorp 2005). These included improving the socio-economic well-being of the nearby community and strengthening the company relationship with the community. Plans for achieving these goals will be accomplished by continuing to identify opportunities for increased local sourcing at each of the PotashCorp mine sites, continuing to engage Aboriginal representatives at the Saskatchewan mine sites, and continue to be engaged with community support projects at each of the PotashCorp mine sites.

There are currently 233 employees at the Mine. PotashCorp attempts to hire local residents at its operations, which has resulted in the majority of the company’s employees residing in and around its host communities. The peak construction employment associated with the Project will be approximately 450 persons. During the operation of the Project, the permanent employment at the Mine is anticipated to reach approximately 380 people. These employment opportunities will include administrative, trades, engineering, and, skilled, and non-skilled labourers. Saskatoon is the nearest (approximately 7 km east) major centre to the Mine and as of 2006, had a population of 233,923 (Statistics Canada 2007).

In 2007, PotashCorp Cory provided cash donations of $8,895 to local community social organizations. Major donations are handled by the corporate office in Saskatoon, and donations in 2007 totalled $3.5 million in cash and non-cash donations. In 2007, 67% ($18.2 million) of purchases at PotashCorp Cory were from Saskatchewan businesses. This amount is expected to increase in association with the Project.

More than 90% of the final product is transported off-site via rail. Canadian National and Canadian Pacific railways are used to transport the product throughout North America. In addition, a portion of the product is exported via ships from the Canadian West Coast, the Great Lakes, and the Gulf of Mexico. From 2004 to 2006, on average, a train left the Mine every six days with the final product. Associated with the operation of the Project, this frequency will increase to approximately, one train leaving the Mine every day.

B-train trucks (approximately 45 tonne) are used to transport the final product locally. From 2004 to 2006, the average number of trucks leaving the Mine was approximately four per day. This number may increase to six trucks per day with the operation of the Project. However, the amount of product transported off-site fluctuates within a year depending on the Mine production level.

6.0 PUBLIC CONSULTATION As part of the initial expansion project (PotashCorp 2006), a public meeting was held on May 30, 2007 to discuss the proposed Project. This meeting, held in the town hall of Vanscoy, Saskatchewan, from 4 pm to 7 pm, was designed to introduce the Project to the community.

The meeting format was informal and on a ‘come-and-go’ basis. Representatives of PotashCorp (Mr. Gary Phillips, Mr. Don Larmour, Mr. Brent Cherkas, Mr. Mark Getzlaf, Mr. Trevor Berg, Mr. Cory Hirsch, and Mr. Bill Johnson) and Golder (Mr. Greg Misfeldt and Ms. Sheri Stark) informed members of the public about the Project and answered Project-related questions. In addition, Mr. Richard Snider from MOE (Project Officer for PotashCorp Cory) attended the meeting.

The meeting notice was posted in the Saskatoon Star Phoenix for three days prior to the meeting date. Fifteen community members attended the meeting. The names of the attendees was documented and in addition to verbal communication, all attendees were provided the opportunity to complete a questionnaire about the meeting.

Some of the concerns raised by the Public at the meeting were:

the height and aesthetics of the tailings pile;


the impact of the TMA on groundwater quality;

if applicable, PotashCorp plans for handling a situation if the water quality in a local landowner’s well is impacted by the Mine;

why can’t tailings be placed underground;

are groundwater quality monitoring results available to the public;

has PotashCorp recently purchased property to the south of Highway No. 7;

safety for underground workers and mill workers;

tremors caused from mining activity;

Project schedule;

the purpose of the red product;

landowner would like advance notice of future aerial electro-magnetic surveys;

decommissioning plans for the tailings pile; and

what are the employment opportunities associated with the Project.

The majority of the questions/concerns were addressed at the meeting. PotashCorp will follow-up with respective members of the public in relation to the following:

access to emergency hoist; and

status of the potential PotashCorp land purchase south of Highway No. 7.

Since the initial meeting in May 2007, PotashCorp submitted press releases on May 2, 2007 and July 17, 2008. These press releases summarized PotashCorp’s intent to expand the Mine, the latter referring to the proposed expansion to 3,000,000 tpy.

To date, there has been no direct opposition to the Project.

7.0 CONCLUSION Through environmental diligence and pro-active planning, PotashCorp intends to restrict the scale and consequences of disturbance potentially caused by the construction and operation of the proposed Project.

Potential Project-related residual effects are associated with terrain and soils, vegetation, wildlife habitat and wildlife, land use, noise, and air quality. With the majority of the expansion, occurring within existing Mine infrastructure and the remaining components being installed on previously disturbed lands, it is anticipated that the residual effects to the above listed environmental components will be limited, and not significant. No residual effects are anticipated for other environmental components.


8.0 CLOSURE The material contained in this report reflects Golder’s best judgment based on the information available and provided at the time of preparation. Golder has relied upon the representations or opinions of persons contacted and reports reviewed during the preparation of this report. The accuracy of these representations and opinions will affect the accuracy of this report.

The reported information is believed to provide a reasonable representation of the general environmental conditions at the Project location. Any use of this report or any reliance on, or decisions based on this report by a third party is the responsibility of such third parties. Golder will not be held responsible or liable for any damages to the physical environment, any property, or to life, which may have occurred from actions of decisions based upon any of the information within this report.

We trust the above meets your approval. If you have questions or comments, please contact the undersigned at 306-665-7989.

GOLDER ASSOCIATES LTD.

Cameron Jackson, M.Sc. Daryl Johannesen, M.Sc., P.Eng. Wildlife Ecologist Principal

Greg Misfeldt, M.Sc., P.Eng. Principal, Senior Geotechnical Engineer

CJ/DJ/GAM/ldmg

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9.0 REFERENCES Acton, D. F., G.A. Padbury, and C.T. Stushnoff. 1998. The Ecoregions of Saskatchewan. Prepared and edited

by: Saskatchewan Environment Resource Management.

Acton, D.F. and J.G. Ellis. 1978. The Soils of the Saskatoon Map Area 73-B Saskatchewan. Extension Publication 306. Saskatchewan Institute of Pedology Publication S4. University of Saskatchewan, Saskatoon, Saskatchewan.

AGRA Earth and Environmental and Saskatchewan Research Council. 1995. Regional geological and hydrogeological framework – PotashCorp Cory Division. Prepared for PotashCorp, January 1996.

Christiansen, E.A. 1968. Pleistocene Stratigraphy of the Saskatoon Area, Saskatchewan. Canadian Journal of Earth Sciences 5: 1167-1173.

Christiansen, E.A., S.H. Whitaker, W.A. Meneley, and C.G. Elias. 1970. Physical Environment of Saskatoon, Canada. National Research Council Publication No. 11378.

Committee on the Status of Endangered Wildlife in Canada. 2008. Species Assessments from the April 2008 COSEWIC Meeting. Committee on the Status of Endangered Wildlife in Canada. 3 pp.

Godfrey, W.E. 1986. The Birds of Canada. National Museum of Canada. 595 pp.

Golder Associates Ltd. 2007. Project Description and Environmental Screening of the PotashCorp Cory Red Product Expansion 2008 Project. Prepared for PotashCorp Cory. 62 pp. plus appendices.

Government of Saskatchewan. 1983. The Potash Refining Air Emissions Regulations.

Government of Saskatchewan. 1989. The Clean Air Act.

Government of Saskatchewan. 2005. The Wildlife Habitat Protection Act.

Government of Saskatchewan. 2006. The Heritage Property Act.

Layberry, R.A., P.W. Hall, and J.D. Lafontaine. 1998. The Butterflies of Canada. University of Toronto.

MDH Engineered Solutions Corporation. 2004. PCS Cory TMA Groundwater and Transport Model. Report submitted to Potash Corporation of Saskatchewan Inc., May 2004.

MDH Engineered Solutions Corporation. 2005. PCS Cory TMA Management and Optimization Study. 2004 Summary Report submitted to Potash Corporation of Saskatchewan Inc., Cory Division.

Potash Corporation of Saskatchewan Inc. 2005. Sustainability Report.

Potash Corporation of Saskatchewan Inc. Cory Division. 2006. Decommissioning Plan. Report submitted to Saskatchewan Environment.

Maathuis, H. 2005. Review of Pumping and Recovery Data for the Tyner Valley Aquifer and Impact of Pumping on the Tessier Aquifer. Saskatchewan Research Council Publication 10417-2E05. February 2005.

Maathuis, H. and G. van der Kamp. 1994. Subsurface brine migration at potash waste disposal sites in Saskatchewan. SRC Publication No. R-1220-10-E-94.

Saskatchewan Conservation Data Centre. 2008. Saskatchewan Tracked Species Lists June 2007. http://www.biodiversity.sk.ca/Docs/sk-est-trk-latin-order.pdf.


Ministry of Environment. 2008. http://gisweb1.serm.gov.sk.ca/imf/imf.jsp?config= http://gisweb1.serm.gov.sk.ca/imf/sk/sites/Wildlife/Wildlife.xml. Accessed October 2008.

Saskatchewan Natural History Society. 2002. Birds of the Saskatoon Area.

Sauer E.K. and E.A. Christiansen. 1996. Geological Site Characterization: A Framework for Geohydrological and Geotechnical Applications in Saskatchewan. Saskatchewan Environment and Resource Management.

Seguin, R. 2007. Director, Ministry of Environment. Environmental Assessment Branch, Regina, Saskatchewan. Personal Communication, Letter September 19, 2007.

Smith, A.R. 1996. Atlas of Saskatchewan Birds. Special Publication No. 22. Environment Canada. Nature Saskatchewan.

Statistics Canada. 2007. Saskatoon, Saskatchewan (table). 2006 Community Profiles. 2006 Census. Statistics Canada Catalogue no. 92-591-XWE. Ottawa. Released March 13, 2007. http://www12.statcan.ca/english/census06/data/profiles/ community/Index.cfm?Lang=E.

Stewart, R.R. 1980. Terrestrial Wildlife Habitat Inventory, Saskatoon (73-B), Critical Wildlife Habitat. Map. Saskatchewan Parks and Renewable Resources, Wildlife Research Division.

Telfer, E.S., C. Adam, K. DeSmet, and R. Wershler. 1989. Status and distribution of the Loggerhead Shrike in western Canada. Canadian Wildlife Service. Progress Notes, No. 184.

Whitaker, S.H. and E.A. Christiansen. 1972. The Empress Group in Southern Saskatchewan. Canadian Journal of Earth Sciences, vol. 9, p. 353 to 360.

Golder Associates Ltd. 1721 8th Street East Saskatoon, Saskatchewan, Canada S7H 0T4 Canada T: +1 (306) 665 7989

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