REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT

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1 October 2, 2014 REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT ON KINDER MORGAN PROPOSAL TO ADJUST PROVINCIAL PARK BOUNDARIES WITHIN THE LAC DU BOIS GRASSLANDS PURPOSE To seek Council's support for Kinder Morgan Canada's (Kinder Morgan) proposed use of the Lac du Bois Grasslands Protected Area to accommodate the twinning of a portion of the existing Trans Mountain pipeline (TMP) as opposed to routing the new pipe through the Westsyde neighbourhood. Kinder Morgan has proposed an amendment to the Lac du Bois Grasslands Protected Area to the BC Ministry of Environment (MOE), and as part of the consultation process, the MOE has asked for the City's input. SUMMARY Kinder Morgan's proposed TMP expansion project includes the twinning of the entire TMP right-of-way, including the portion that runs through Westsyde. Currently, there are two primary routing options for the twinning of the section of the TMP pipeline: Option 1: Installation of a second pipeline parallel to the existing pipeline through Westsyde. Option 2: Installation of a pipeline right-of-way through the Lac du Bois Grasslands Protected Area immediately west of Westsyde. A map illustrating these two routing options is attached for reference (Attachment "A"). The current level of commercial and residential development in Westsyde will present significant challenges to the City and the residents of the Westsyde community if Option 1 is chosen. These challenges include, but are not limited to, the following: Over 40 crossings of City utility infrastructure (water, sewer, sanitary); Impact on future development, specifically at the north end of Westsyde; and Significant disruption to the residents as the area is entirely developed. With more than 40 utility crossings, the impact on the City's staffing and financial resources would be significant. There would be the potential for infrastructure damage during construction, as well as a need to move existing water and sewer piping to avoid the oil pipeline. Not only would there be disruptions to the City's underground utility system, there would also be significant traffic delays incurred during construction from large portions of Westsyde Road and other local roads in the area being dug up. T:\PWU\ENVIRO SVS\REP\2014\Kinder Morgan Proposal Lac du Bois.docx 25

2 KINDER MORGAN PROPOSAL TO ADJUST PROVINCIAL October 2, 2014 PARK BOUNDARIES WITHIN THE LAC DU BOIS GRASSLANDS Page 2 The impact on future development from the addition of a second pipeline in the current right-of-way would be restrictive due to the need to increase the setback requirements adjacent to the right-of-way. Specifically, development could be constrained near The Dunes at Kamloops golf course and the vacant property adjacent to Westsyde Secondary School. The majority of Westsyde is fully developed, which presents other challenges as they relate to this proposed route. Most importantly, the increased strain on existing neighbourhoods will be significant. There are numerous sheds, fences, and gardens that have encroached onto the existing right-of-way that would be impacted. There would be continued disruption with large equipment creating a heavy industrial worksite in the backyards of over 100 property owners in the Westsyde community. There would be impact not only on the property owners, but on the two schools, the community park, and local businesses along the Westsyde corridor as well. There would be continued stress for the property owners who would be impacted by the construction phase of the project, as well as the ongoing hazard, either perceived or real, of a second pipeline close to the existing structures and residences. Under the Provincial Protected Area Boundary Adjustment Policy, Process and Guidelines, Kinder Morgan has submitted an application to the MOE to remove the land required for its pipeline expansion from the Lac du Bois Grasslands Protected Area. Following completion of the expansion project construction, the lands removed from the park through the boundary adjustment may be returned to park or protected area status with pipeline operations authorized under a Park Use Permit issued by the MOE. Kinder Morgan has engaged the City in dialogue regarding the potential use of the Lac du Bois Grasslands Protected Area since November 2012, including invitations to participate in the public consultation program. The City, the public, and interested stakeholders were invited to the program, which included, but was not limited to, four specific events: Environmental and Socio-economic Assessment (ESA) Workshop - March 6, 2013; Community Workshop - June 6, 2013; Lac du Bois Grasslands Protected Area Site Tour - September 24, 2013; and Protected Areas Workshop - April 2, Throughout the public consultation program, an opportunity was given to provide comment regarding concerns over several aspects of the proposed use of the Lac du Bois Grasslands Protected Area. While there may be some negative aspects to installing a pipeline through the Lac du Bois Grasslands Protected Area, many, if not all, will be mitigated by restoration work undertaken by TMP. The actual and potential downsides to the alternative routing option through Westsyde could prove insurmountable. The comment period for the use of the Lac du Bois Grasslands Protected Area proposed by Kinder Morgan ends on October 12, 2014, as described within the letter received from BC Parks (Attachment "B"). T:\PWU\ENVIRO SVS\REP\2014\Kinder Morgan Proposal Lac du Bois.docx 26

3 KINDER MORGAN PROPOSAL TO ADJUST PROVINCIAL October 2, 2014 PARK BOUNDARIES WITHIN THE LAC DU BOIS GRASSLANDS Page 3 RECOMMENDATION: That Council authorize a letter be sent to the BC Ministry of Environment expressing support for Kinder Morgan Canada's proposed pipeline route through the Lac du Bois Grasslands Protected Area if all applicable regulatory requirements are met. COUNCIL POLICY There is no applicable Council policy. J. Fretz, P.Eng. Public Works and Utilities Director Approved for Council Consideration: Author: A. Michener, P.Ag., Environmental Services Supervisor Reviewed by: G. Farrow, BBA, Streets and Environmental Services Manager AM/tb/dla/kjm Attachments T:\PWU\ENVIRO SVS\REP\2014\Kinder Morgan Proposal Lac du Bois.docx 27

4 McCauley Creek Attachment "A" Jamieson Creek Yellowhead Lanes Creek TRANS MOUNTAIN PIPELINE LAC DU BOIS GRASSLANDS AREA KAMLOOPS BRITISH COLUMBIA Legend Existing Trans Mountain Pipeline Proposed TMEP Route Option Following Existing Fibre Optic Line First Nations Dairy Creek Parks Seven O Creek FEB KAMLOOPS DUBOIS OPTION.MXD 800 McQueen Creek LAC DU BOIS GRASSLANDS Westsyde Rd 810 North Thompson River KAMLOOPS 1 KAMLOOPS Thompson River 820 Valleyvie 28

5 Attachment "B" 29

6 30

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