Nascall River Hydroelectric Project Project Description

Submitted to: British Columbia Environmental Assessment Office 386 Yates Street, 1st Floor Victoria, BC V8W 9V1 January 21, 2008

Table of Contents Table of Contents................................................................................................................ ii Proponent Information ........................................................................................................ 1 General Background Information ....................................................................................... 2 Project Overview ................................................................................................................ 3 Lower Nascall Site.......................................................................................................... 3 Lower Nascall Access Roads...................................................................................... 3 Lower Nascall Intake and Dam................................................................................... 4 Lower Nascall Tunnel and Penstock........................................................................... 4 Lower Nascall Generation Facilities........................................................................... 4 Lower Nascall Staging and Spoil Areas ..................................................................... 4 Lower Nascall Plant Capacity..................................................................................... 4 Upper Nascall Site .......................................................................................................... 5 Access Roads .............................................................................................................. 5 Intake........................................................................................................................... 5 Tunnel and Penstock ................................................................................................... 5 Generation Facilities ................................................................................................... 5 Powerline Connection................................................................................................. 6 Staging and Spoil Areas.............................................................................................. 6 Project Capacity .......................................................................................................... 6 Transmission Lines ......................................................................................................... 6 Potential Project Impacts ................................................................................................ 7 Environmental............................................................................................................. 7 Economic .................................................................................................................... 7 Heritage....................................................................................................................... 7 Social and Health Effects............................................................................................ 7 Land Use Setting................................................................................................................. 9 Location .......................................................................................................................... 9 First Nations.................................................................................................................... 9 Land Tenure .................................................................................................................... 9 Conservancy.................................................................................................................... 9 Transmission Line Park Crossing ................................................................................. 10 Consultation ...................................................................................................................... 11 Project Timing .................................................................................................................. 12 Anticipated Permits........................................................................................................... 13 Appendix A....................................................................................................................... 14

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Proponent Information The proponent for the Nascall River Hydroelectric Project is: Name:

445026 BC Ltd.

Address:

3302 Cedar Crescent Vancouver, BC V6J 2R3

Telephone:

(604) 230-7116

Facsimile:

(604) 733-7917

E-mail:

[email protected]

Company Representative: Ms. Lee Rennison Technical Consultant: Ms. Lara Taylor, Sigma Engineering Ltd. (604) 688-8271 ext. 381; [email protected] Company Incorporation and Structure: 445026 BC Ltd. was incorporated in British Columbia in 1993. The company is wholly owned by Primex Investments Ltd. Primex is a family owned Vancouver based investment company that was incorporated in 1972.

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Project Description

General Background Information The Nascall River Hydroelectric Project (the Project) is a two-site hydroelectric project with a combined capacity of 71 MW (Table 1). A 57km long, single transmission line will connect the project with the existing BC Hydro powerline at Bella Coola. A transmission line connecting the community of Anahim Lake to Bella Coola will also be built as part of the project. The Project constitutes a reviewable project pursuant to Part 4 of the Reviewable Projects Regulation (B.C. Reg. 370/02) as the proposed Project is a new hydroelectric power plant facility with a rated nameplate capacity of 50 MW or more of electricity. The Project will be located on two reaches of the Nascall River; the Nascall River is located approximately 50km west of Bella Coola. The intake for the Lower Nascall site will be located at the outlet of Nascall Lake (127o 17’ 46” W, 52o 29’ 33” N) and the intake for the Upper Nascall site will be located at the outlet of Ikesumkah Lake (127o 25’ 31” W, 52o 33’ 12” N). Figure 1 shows the Project layout. Access to the project area by boats and anadromous fish is blocked by a large set of falls at the outlet of Nascall Lake. It is anticipated that energy generated by the Project will be sold to BC Hydro and/or other users. Bella Coola and Anahim Lake are both non-integrated areas whose energy needs are met using diesel generation in combination with hydroelectricity. Eliminating the need for diesel generation would eliminate the release of greenhouses gases and particulate matter created through the combustion of diesel fuel. The British Columbia provincial government has called for a 33% reduction in greenhouse gases by the year 2020; eliminating fossil fuel energy generation can be an important step towards achieving this target.

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Project Overview The Project is composed of two major hydro power sites; one in the lower reach of the Nascall River (Lower Nascall site) and the other in the middle reach of the Nascall River (Upper Nascall site). It will also include the construction of two transmission lines from the Project site to Bella Coola and between Bella Coola and Anahim Lake. The Project sites are summarized below and described in greater detail in the following sections. Table 1 summarizes the design flow and the energy production for the Projects; Table 2 summarizes the preliminary Project arrangements. Photographs of the Project area are included in Appendix A. Table 1: Hydrology and energy generation

Reach Upper Nascall Lower Nascall Total

Design Flow (m3/s) 65 75

Capacity (MW) 40 31 71

Table 2: Preliminary project arrangements

Reach Upper Nascall Lower Nascall

Intake Elevation (m) 125 45

Powerhouse Elevation (m) 55 10

Tunnel Length (m) 1600 100

Penstock Length (m) 1200 130

Lower Nascall Site The proposed Lower Nascall site will have a capacity of 31 MW, and will be designed to utilize the naturally occurring flows from Nascall River and storage available at Nascall Lake. The Proponent has applied for a water license on Nascall Lake for Power – General (Application Number: Z121240). The only other water license for Nascall Lake is also held by the Proponent; this application is for Power – Commercial (Application Number: Z108952). The Lower Nascall site will consist of an intake, dam, tunnel, steel pipe and access roads. A single 57km long transmission line will connect the powerhouse to the existing BC Hydro powerline at Bella Coola (described in a following section). Figure 3 shows the layout for the Lower Nascall site. The design will consider principal visual and aesthetic issues such as: location, size and shape of each component feature, and visual quality. The Lower Nascall site (intake, penstock, powerhouse) is on private land owned by the Proponent. A short description of the Lower Nascall site components follows. Lower Nascall Access Roads Access to the powerhouse will be via an existing 2.1km long road from the barge landing site near the mouth of Nascall Bay. An existing 0.75km long road provides access to the intake from the powerhouse.

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Lower Nascall Intake and Dam The proposed intake location is 0.6km upstream of the mouth of Nascall River, just upstream of the natural falls at the outlet of Nascall Lake. The intake will be at an approximate elevation of 45m above mean sea level (AMSL). The concrete dam will have a crest elevation of 60m. The intake will be a concrete structure approximately 10m wide by 20m long by 10m high. A trash rack will prevent the intake from becoming blocked and fish screening will be used if necessary. The dam will utilize the storage potential of Nascall Lake, which forms a 480 ha natural reservoir for the Lower Nascall site. The present average lake level is 46m AMSL. The proposed Lower Nascall dam would create storage up to 60m AMSL. Most of Nascall Lake has very steep shores with the exception of the upstream end of the lake and a bay on the south east shore. It is estimated that roughly 60ha of additional land would be flooded. Detailed mapping of the Project area is currently underway; the maps will be used to delineate the flooded areas. The Proponent has also installed water level and temperature recorders at two locations on Nascall Lake. Lower Nascall Tunnel and Penstock Figure 1 shows the tunnel and penstock route as well as the overall Lower Nascall site layout. The 100m long tunnel will have a horseshoe shaped cross section, 5.0m wide and 5.5m high. The 130m long, above ground steel penstock will be approximately 4.5m in diameter and will serve to direct water from the tunnel to the powerhouse. Lower Nascall Generation Facilities The powerhouse will be a metal clad, steel frame building on a concrete foundation located at approximately 12m AMSL. The powerhouse dimensions will be roughly 45m long by 15m wide and 10m high; it will house three turbine/generator units (each producing 9.3 MW) and the associated controls. A transformer will be installed outdoors in a fenced 32m by 7m area. As additional information becomes available, the exact location and area required will be updated. Lower Nascall Staging and Spoil Areas A staging area, approximately 50m by 50m in size, will be located adjacent to the powerhouse for use during construction. Spoil areas will be determined as the Lower Nascall site design advances and more accurate volume estimates become available. It is uncertain at this stage of design whether gravel extraction will be required. Lower Nascall Plant Capacity The drainage area of Nascall Lake at the Lower Nascall intake is 383km². The mean annual flow (MAF) at the intake site is 62.8m³/s. The MAF was based on 19 complete years of daily flow data from the Water Survey of Canada (WSC) Nascall River near Ocean Falls gauge (WSC No.08FC002; years 1923-1956). The WSC gauge was located near the proposed Lower Nascall powerhouse location. The design flow for the Lower Nascall component is 75 m³/s and the design flow was selected to fully develop the potential of the site. The estimated annual generation is 143GWh/year (using a minimum instream flow release of 5%, subject to review by government agencies).

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Upper Nascall Site The Upper Nascall site will have a capacity of 40MW; it will use the naturally occurring flows from the Nascall River and storage available at Ikesumkah Lake. The Proponent has applied for a water license application on Ikesumkah Lake for Power – General (Application Number: Z121239). There are not currently any other water licenses on Ikesumkah Lake. The Upper Nascall site will consist of an intake, dam, tunnel, steel pipe, powerhouse, transmission line and access roads. A 9.2km long transmission line will connect the Upper Nascall powerhouse to the Lower Nascall site substation. Figure 2 shows the Upper Nascall site layout. The Upper Nascall site design will consider principal visual and aesthetic issues such as: location, size and shape of each site feature, and visual quality. Most of the Upper Nascall site is on Crown Land. The powerline crosses property owned by the Proponent. The Upper Nascall site lies on 94ha of Crown Land (Lands File No. 5407131). The area of the lands application may be decreased as the Upper Nascall site location is finalized. A short description of the Upper Nascall components follows. Access Roads Access to the powerhouse will be by barge through Nascall Lake from the intake of the Lower Nascall site. A 3.6km road will be constructed as part of the Project; the road will provide access to the intake from the powerhouse. Intake The Upper Nascall intake location is near the outlet of Ikesumkah Lake, about 13km upstream of the mouth of the Nascall River. The intake will be at an elevation of approximately 125m AMSL. A short concrete weir at the outlet of the lake will allow water flow into the intake structure. The proposed intake structure location is approximately 400m southwest of the natural lake outlet and will be a concrete structure approximately 10m wide x 20m long x 10m high. A trash rack will prevent the intake from becoming blocked and fish screening will be used if necessary. Tunnel and Penstock Figure 1 shows the Upper Nascall tunnel and penstock route as part of the overall Project layout. The 1.6km long tunnel will have a horseshoe shaped cross-section, 5.0m wide and 5.5m high. The 1.2km long above ground steel penstock will be approximately 4.3m in diameter and will direct water from the tunnel to the powerhouse. Generation Facilities The Upper Nascall generation facilities will be located at approximately 60m AMSL. The powerhouse will be a metal clad steel frame building on a concrete foundation. The powerhouse dimensions will be approximately 60m by 20m by 10m high; it will house three turbine/generator units (each producing 13.3 MW) and the associated controls. A transformer will be installed outdoors in a 32m by 7m fenced area.

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Powerline Connection A transmission line will connect the powerhouse to the Lower Nascall substation, subject to review by BC Hydro. The powerline will be approximately 9.2km long and will consist of woodpole structures with three conductors. Staging and Spoil Areas A staging area, approximately 50m by 50m in size, will be located adjacent to the powerhouse for use during construction. Spoil areas will be determined as the Upper Nascall site design advances and more accurate volume estimates become available. It is uncertain at this stage of design whether gravel extraction will be required. Project Capacity The Upper Nascall intake drainage area is 273km². The mean annual flow (MAF) at the intake site is estimated to be 44.8m³/s. The MAF was based on 19 complete years of daily flow data from the Water Survey of Canada (WSC) Nascall River near Ocean Falls gauge (WSC No.08FC002; years 1923-1956). The intake flows were calculated by prorating the WSC gauge flows based on drainage areas. The design flow for the Upper Nascall site is 65m³/s; it was selected to fully develop the potential of the site. The estimated annual generation is 176 GWh/year (using a minimum instream flow release of 5%, subject to review by government agencies).

Transmission Lines There will be two transmission lines built as part of the Project. One transmission line will connect the Lower Nascall site with the Bella Coola powerline. The other transmission line will connect the Bella Coola powerline with the Anahim Lake powerline. A 57km long transmission line will connect the Lower Nascall powerhouse to the existing BC Hydro powerline at Bella Coola, subject to approval by BC Hydro. The transmission line will consist of woodpole structures with three conductors. A new transformer and local system improvements may be required. The transmission line crosses the Dean Channel as shown in Figures 1 and 4. The transmission line crossing of Dean Channel will be an overland crossing. The crossing will consist of two spans (2,000m and 300m long respectively) using Nascall Island as a stepping stone. Design review will determine the parameters required to comply with Transport Canada’s Navigable Waters Protection Act. The transmission line crossing will consider visual and aesthetic issues as well as Transport Canada regulations. The transmission line, which delivers power from the Project to Bella Coola, crosses Crown Land and other private properties. The portion of the transmission lines which is located on Crown Land is included in the Lower Nascall site application (File No. 5407130). The total area for this application is 389 ha. The area of the lands application may be decreased as the Lower Nascall site layout is finalized. A transmission line will join the community of Anahim Lake to the Bella Coola powerline. This transmission line would allow the Project to supply electricity to Anahim Lake and other local users as well as well as Bella Coola. The Bella Coola powerline currently extends 61km east of Bella Coola, and the Anahim Lake powerline extends 17km west of Anahim Lake. 48.5km of new transmission line would be required to join the two powerlines. Figure 4 shows the powerlines (existing and proposed) in the Project area. Nascall River Hydroelectric Project Project Description

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The transmission line will follow Highway 20 between Bella Coola and Anahim Lake. The transmission line will be on Crown Land and in the highway right-of-way. The land required for the transmission line corridor is included with the Crown Land application for the Lower Nascall River Hydroelectric Project (File No. 5407130).

Potential Project Impacts Environmental Detailed fisheries studies began in October 2006 and are ongoing. The fisheries studies will determine which species are present in the Project area as well as the areas that these species are utilizing. Although anadromous fish are unable to reach the Project area due to the falls at the outlet of Nascall Lake other fish species, including cutthroat trout and kokanee, are found in the Nascall River watershed upstream of Nascall Falls. A lake survey is being conducted in conjunction with the fisheries study to collect baseline water quality data. Wildlife and vegetation baseline bio-inventory studies will commence in 2007. These studies will document the species present in the Project area and will focus on provincial red and blue listed animals and plant communities, species of regional concern, and species of concern to the local First Nations. Wildlife and vegetation studies will also document any species protected under the federal Species at Risk Act (SARA). Economic The Project is anticipated to cost in the $100 to $200 million range. The economic benefits to the central coast will be numerous. Benefits will be created in construction jobs, operating jobs and in the increased long term attractiveness of employers doing business in the area. During construction, there will be approximately one hundred person-years of employment created. After construction, there will be employment for six full time operators as well as numerous service/repair contracts. By bringing power to the communities of Anahim Lake and Bella Coola the Project will open doors for significant local economic development and prosperity that would otherwise not have been available with the current limited and expensive supply of power. Heritage Archaeology studies will be conducted in accordance with the BC Archaeological Impact Assessment Guidelines. Social and Health Effects The Nascall River Hydroelectric Project will create employment and training opportunities for the communities of Bella Coola and Anahim Lake and will also create the opportunity for future growth in the communities by providing ample low cost power. The improved career opportunities that are created by the Project and by the opportunities that will become available in the communities as a result of the Project are expected to improve morale in the communities and may help to reduce the number of young people leaving the community to find work.

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The communities of Bella Coola and Anahim Lake as well as local industries currently derive most of their power from diesel generation. From a health perspective, the Project will displace energy generated by fossil fuels and thereby reduce the release of carbon dioxide and particulate matter into the atmosphere. The communities of Bella Coola and Anahim Lake switching to clean power will eliminate the combustion of tens of millions of litres of diesel fuel and the accompanying pollution each year. The Proponent will consult with local First Nations groups to determine the location of heritage sites and culturally sensitive areas.

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Land Use Setting Location The Nascall River is a tributary to the Dean Channel, located approximately 50km west of Bella Coola; it is located within the Central Coast Regional District. The Nascall River is contained within the area regulated by the Central Coast land use decision. There is no road access to the Nascall River; access to the river outlet is available by either boat or by air. Neither Nascall Lake nor Ikesumkah Lake is accessible by boat due to the falls at the outlet of Nascall Lake (Appendix A – Photo 2). The outlet of Nascall Lake is located approximately 600m upstream of the mouth of the Nascall River. The lake’s average elevation is 45m. Nascall Lake has a surface area of 480ha and a maximum depth of approximately 90m. The outlet of Ikesumkah Lake is located approximately 13km upstream of the mouth of the Nascall River. The lake’s average elevation is 129m. Ikesumkah Lake has a surface area of 416 ha and a maximum depth of approximately 100 m.

First Nations The Project sites lie within the traditional territory of the Nuxalk and Heiltsuk First Nations. The transmission line between Bella Coola and Anahim Lake crosses the traditional territory of the Nuxalk and Ulkatcho First Nations.

Land Tenure There are no mineral claims or tree farm licences in the Nascall River watershed.

Conservancy 24 conservancies have recently been established on BC’s central and northern coasts. About 86 additional conservancies are currently proposed. Parts of the Nascall River basin and the proposed power line route fall within proposed central coast conservancies. In 2006, the Park Act was amended to create a “conservancy” designation. Under the Park (Conservancy Enabling) Amendment Act of 2006, “10) A park use permit must not be issued to authorize the following activities in a conservancy: (c) hydro electric power generation, other than local run-of-the-river projects;” "local run-of-the-river projects", in relation to a conservancy, means run-of-the-river projects supplying power for use only (a) in the conservancy, or (b) by communities, including first nation communities, that do not otherwise have access to hydro electric power.” The Nascall River Project will serve local communities as well as the BC Hydro grid. While a part of the project is run-of-the-river, a part of it will also include a small storage component.

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The Proponent has undertaken a number of meetings and phone calls with representatives from the Ministry of Environment (MOE) to discuss the project in the context of the conservancy. On November 9, 2006, the Proponent met with MOE representatives in Williams Lake. During this meeting the project plan was discussed. The Proponent has also had telephone and e-mail conversations with numerous MOE representatives. Conversations with MOE representatives have indicated that the proposed conservancy has not proceeded through the legislative process for two key reasons. The first is that there is not currently agreement with the local First Nations regarding the location and scope of the proposed conservancies. Secondly, there are proposed projects, including the Nascall River project, that are in conflict with the proposed conservancies. MOE representatives have indicated that the conservancy designation would not be going ahead until there was agreement with First Nations and Independent Power Producers (IPP) in the area. In order to help with their decision, the ministry has requested information regarding inundation areas as well as basic baseline environmental information. We are in the process of gathering this information for the Environmental Assessment process and plan to share it with the MOE representatives when the information becomes available.

Transmission Line Park Crossing The transmission line linking the Bella Coola powerline with the Anahim Lake powerline will cross Tweedsmuir-South Provincial Park. The transmission line will follow the existing road (Highway 20) right-of-way through the park to minimize the impact on the park. The length of transmission line to be constructed in the park will be approximately 33 km. The transmission line will use single wood poles.

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Consultation Preliminary First Nations consultation has been initiated with the Nuxalk First Nation. The Nuxalk First Nations are aware of the Project and the potential benefits to the Bella Coola valley. Very preliminary discussions have been undertaken with the Heltsuik First Nation of Bella Bella. An information meeting was conducted with the directors of the Central Coast Regional District (CCRD) and the chief of the Heltsuik First Nation in Bella Coola on April 13, 2006. Feedback from the meeting was positive. A meeting to introduce the Project to Provincial ministries took place on November 9, 2006 in Williams Lake. Eight Ministry of Environment representatives were present as was an Environment Canada representative. Several senior Provincial Ministry of Environment officials, including Hon. Barry Penner visited the site in August 2006. Feedback from the visit was very positive.

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Project Timing The proponent expects to submit the final study Terms of Reference to the Environmental Assessment Office in 2008 and the Project Application in late 2008 or 2009. Pending the necessary approvals, permits and agreements, construction could be expected to commence in 2010 and be completed in 2012.

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Anticipated Permits Concurrent permitting will be sought for the following Provincial licenses and tenures: •

Water Act – Water Licenses



Land Act – Land Tenures

Federally, it is possible that a permit may be required under the Navigable Waters Protection Act for the transmission line crossing of the Dean Channel and an authorization may be required under the Fisheries Act. Provincial and local permits and approvals will be required for construction. These permits will be sought once construction is ready to begin.

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Appendix A Photo 1: Upper Nascall River Hydroelectric Project diversion reach

Photo 2: Falls at the outlet of Nascall Lake just downstream of intake location

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Photo 3: Lower Nascall River Hydroelectric Project diversion reach just upstream of the powerhouse

Photo 4: Proposed tailrace location for the Lower Nascall River Hydroelectric Project

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