Letter 44: PR-04565 - Catalyst breech of permit

File: PR-04565  -Catalyst breech of permit

Dear Mr. Fournier,

---Further to my letter to you of May 1, 2008.

1) The permit which authorizes Catalyst Paper Corporation- Powell River Division to operate the Wildwood landfill, has in paragraph “2.9 Maintenance of Contiguous Point- Block 48 and Block 43”, a requirement to maintain a contiguity of all land between the landfill and the point of discharge of any leachate into the environment.

2) Leachate is collected from the ‘mini-landfill’ and is conveyed through a stainless steel pipe to the waste water treatment system at the Catalyst Paper mill. This pipe follows a route that crosses Powell River along the top of the hydro-electric dam. That portion of the leachate that is recovered from the groundwater flow, is added to that which is pumped from the ‘mini-landfill’. This engineered flow, enters the waste water treatment system of the mill and is discharged to the general environment of the Gulf of Georgia.

3) That flow of leachate through the ground which is not collected, and accounts for one half, or more, of the ground water flow from the landfill, discharges into the receiving environment of Powell River as untreated leachate.

4) In February of 2001, Catalyst Paper created Powell River Energy Incorporated [PREI]. The purpose of PREI is to generate hydro-electricity. It is distinct from Catalyst Paper Corporation. PREI has its own distinct assets, its own administrative structure and its own office. The physical assets which are part of PREI include the hydro-electric dam in Powell River as well as land on each side of Powell River, from the dam to the Wildwood bridge. Catalyst has sold shares in PREI and can continue to sell any shares it owns at any time.

5) Powell River Energy Incorporated is not a party to this permit.

6) Land down slope from the landfill, to Powell River, is now owned by Powell River Energy Incorporated. This is also true of the route followed by the stainless steal pipe used to convey the leachate from the landfill. Much of the pipe is buried on land owned by PREI. It crosses Powell River on a hydro-electric dam also owned by PREI. The sampling well #98-5, used to monitor leachate from the landfill, is now on PREI land. This is also true for the spring, commonly referred to as Spring-S1. Any, and all, liquid that escapes the landfill must transit PREI land as it leaves the site.

7) By creating and selling their assets to Powell River Energy Incorporated, Catalyst Paper Corporation has breeched its permit requirement to keep a contiguous contact between the mill and the landfill. This loss of contiguity is undoubtedly the case along the route now utilized for any liquid leaving the site. The pipeline utilizes PREI assets. All escaping leachate must transit PREI lands. Catalyst has effectively marooned the landfill site.

8) The date of the formation of Powell River Energy Incorporated, approximately February, 2001, and the date on the most recent permit amendment, of August 2, 2006, would indicate that Catalyst Paper Corporation has also not informed you of any change to its assets that provide the contiguity of land. It indicates that the requirement of a notice of subdivision of at least 90 days prior to the event has not been given.

9) If a contiguous contact can be demonstrated to be maintained between the landfill and the mill along a route, other than that now utilized by the facilities in place along the ground, then Catalyst Paper would still be in breech of its permit requirements; as any escaping groundwater must transit PREI land before it reaches the receiving environment in Powell River.

10) If a contiguous contact can still be maintained between the landfill and the point of discharge to the environment, then Catalyst should be directed to follow that route for any liquid discharge from the landfill. Or, alternately, Catalyst should provide full water treatment on the waste site so as to discharge any waste water in a state matching the drinking water standards.

11) In any amendments to the permit which may be requested by Catalyst Paper, the land which is used to satisfy the requirement of contiguity should also be used to contain all physical structures to meet the functional requirements of that permit.

12) Since the contiguous contact requirement has been breeched, please inform Catalyst of that fact and direct them to immediately begin their closure plans so as to secure the site.

13) Neither the City of Powell River, nor the Province of British Columbia, need another ‘orphaned landfill’ site.

          Yours truly,

          David Harris.