for the construction and operation of the Development being a natural gas pipeline loop from Carman to the Morden/Winkler area, in accordance with the Proposal filed under The Environment Act dated January 27, 2003, and subject to the following specifications, limits, terms and conditions:

This Section of the Licence contains requirements intended to provide guidance to the Licencee in implementing practices to ensure that the environment is maintained in such a manner as to sustain a high quality of life, including social and economic development, recreation and leisure for present and future Manitobans.

1. The Licencee shall collect and dispose of all used oil products and other regulated hazardous wastes generated by the machinery used in the construction and operation of the Development in accordance with applicable Manitoba Conservation and legislation requirements.
   
   
2. The Licencee shall construct waterway crossings on flowing waterways by augering, tunnelling or boring. Open cut crossings on flowing waterways shall not be made unless prior consultation with Manitoba Conservation and Department of Fisheries and Oceans staff has occurred and the prior written approval of the Director has been obtained. Dry or non-flowing natural and artificial waterways may be crossed with open cut techniques where approval has been obtained from the provincial or municipal authority responsible for the channel.
   
   
3. The Licencee shall revegetate soil exposed during the construction of the Development with native or introduced grasses or legumes. Native species shall be used to revegetate areas where native species existed prior to construction. Revegetation is not required for pipelines installed by chain trenching or ploughing on previously disturbed ground including road allowances.
   
   
4. The Licencee shall, during construction of the Development, implement all necessary measures to prevent the erosion of exposed soil into any waterbodies. Construction adjacent to waterbodies shall not occur during high rainfall events.
   
   
5. The Licencee shall:

1. prepare "As Constructed" drawings for the Development and shall label the drawings "As Constructed"; and
2. provide to the Director, within six months of the completion of construction of the Development, two sets of "As Constructed" drawings.

6. The Licencee shall notify the Red River Region of Manitoba Conservation not less than two weeks prior to beginning construction of the Development. The notification shall include the intended starting date of construction and the name and telephone number of the contractor responsible for the construction.
   
   
7. The Licencee shall separate and replace topsoil from backhoe and trenching operations in accordance with the methodology described in Figures 1, 2 and 3 attached to this Licence. This requirement is not applicable where the topsoil has been previously disturbed due to the construction of roads or drains.
   
   
8. Notwithstanding Clause 2 of this Licence, the Licencee shall not undertake open cut stream crossings associated with the Development before June 15 of any year.
   
   
9. The Licencee shall construct open cut stream crossings associated with the Development in accordance with the methodologies described in the November, 1999 publication "Watercourse Crossings Second Edition", published by the Canadian Pipeline Water Crossing Committee.
   
   
10. The Licencee shall not undertake construction of the Development in wetland areas and in riparian zones adjacent to waterways between May 1 and July 31 in any year.
    
    
11. The Licencee shall, during construction of the Development, minimize disturbance to vegetation in wetlands and in riparian zones adjacent to waterways. Where directional boring is undertaken to cross waterways, consideration shall be given to boring across the riparian zone, as well as under the waterway.
    
    
12. The Licencee shall not alter surface drainage patterns or wetlands during construction of the Development.
    
    
13. The Licencee shall construct and operate the Development in accordance with the requirements of The Gas Pipeline Act and appropriate standards of the Canadian Standards Association.
    
    
14. The Licencee shall, during construction and operation of the Development, report spills of fuels or other contaminants to an Environment Officer in accordance with the requirements of Manitoba Regulation 439/87 respecting Environmental Accident Reporting or any future amendment thereof.
    
    
15. The Licencee shall, at all times during the construction of the Development, maintain materials to contain and recover spills of fuel and other fluids associated with construction machinery at construction sites.
    
    
16. The Licencee shall establish fuel storage and equipment servicing areas for the construction and operation of the Development:

1. a minimum distance of 100 metres from any waterbody; and
2. in compliance with the requirements of Manitoba Regulation 188/2001 respecting Storage and Handling of Petroleum Products and Allied Products or any future amendment thereof.

1. If, in the opinion of the Director, the Licencee has exceeded or is exceeding or has or is failing to meet the specifications, limits, terms, or conditions set out in this Licence, the Director may, temporarily or permanently, revoke this Licence.
   
   
2. If construction of the development has not commenced within three years of the date of this Licence, the Licence is revoked.
   
   
3. If, in the opinion of the Director, new evidence warrants a change in the specifications, limits, terms or conditions of this Licence, the Director may require the filing of a new proposal pursuant to Section 11 of The Environment Act.

"original signed by"
Larry Strachan, P. Eng.
Director
Environment Act

(Figures 1, 2, and 3 please refer to file copy.)