for the operation of the Development being a water supply system consisting of a water intake in the Churchill River, a raw water pumping facility (CR-30 Pumphouse), a pipeline from the CR-30 Pumphouse to the Town of Churchill, a booster pumping facility and reservoir (Lake Pumphouse), a water treatment plant and pumping facility (Town Pumping Station) and an access road to the CR-30 Pumphouse. The operation of this system shall be in accordance with the Proposal filed under The Environment Act dated October 25, 2000, 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, in addition to any of the following specifications, limits, terms and conditions specified in this Licence, upon the request of the Director:

1. sample, monitor, analyse or investigate specific areas of concern regarding any segment, component or aspect of pollutant storage, containment, treatment, handling, disposal or emission systems, for such duration and at such frequencies as may be specified;
2. determine the environmental impact associated with the release of any pollutants from the said water supply system;
3. conduct specific investigations in response to the data gathered during environmental monitoring programs; or
4. provide the Director, within such time as may be specified, with such reports, drawings, specifications, analytical data, flow rate measurements and such other information as may from time to time be requested.

2. The Licencee shall ensure that the operation of the municipal water supply is in accordance with Manitoba Regulations under the Public Health Act and all operating requirements as recommended by Manitoba Conservation.
   
   
3. The Licencee shall ensure that the operation of the Development is carried out by individuals properly trained or qualified to do so.
   
   
4. The Licencee shall ensure that all used oil products and other regulated hazardous wastes generated by the machinery used in the operation of the Development are collected and disposed of in accordance with applicable Manitoba Conservation and legislation requirements.

5. The Licencee shall notify the Northeast Region of Manitoba prior to undertaking any alterations to the Development. The notification shall include the nature of the proposed alteration and the anticipated timeframe for the implementation of the alteration.
   
   
6. The Licencee shall comply with Department of Fisheries and Oceans requirements respecting fish monitoring in the vicinity of the water intake of the Development and intake screening. Copies of relevant correspondence concerning these matters shall be provided to the Director and to the Environment Officer responsible for the administration of this Licence.
   
   
7. The Licencee shall ensure that, during operation of the Development, spills of fuels or other contaminants are reported to an Environment Officer in accordance with the requirements of Manitoba Regulation 439/87 respecting Environmental Accident Reporting.
   
   
8. The Licencee shall ensure that the volume of water withdrawn from the Churchill River for the operation of the Development does not exceed 863 dam³/year.
   
   
9. The Licencee shall report, by March 31 of each year, monthly and annual water withdrawal volumes from the Churchill River for the operation of the Development in the previous year. This information shall be reported to the Water Branch and to the regional Manitoba Conservation office in Thompson.

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, 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 Serge Scrafield for:"
Larry Strachan, P. Eng.
Director
Environment Act