MOE Signed Permit 4565

Dear Permittee:

Enclosed is Amended Permit 4565 issued under the provisions of the Environmental Management Act. Your attention is respectfully directed to the terms and conditions outlined in the permit. An annual fee will be determined according to the Permit Fees Regulation.

This permit does not authorize entry upon, crossing over, or use for any purpose of private or Crown lands or works, unless and except as authorized by the owner of such lands or works. The responsibility for obtaining such authority rests with the permittee. This permit is issued pursuant to the provisions of the Environmental Management Act to ensure compliance with Section 120(3) of that statute, which makes it an offence to discharge waste, from a prescribed industry or activity, without proper authorization. It is also the responsibility of the permittee to ensure that all activities conducted under this authorization arc carried out with regard to the rights of third parties, and comply with other applicable legislation that may be in force.

This decision may be appealed to the Environmental Appeal Board in accordance with Part 8 of the Environmental Management Act. An appeal must be delivered within 30 days from the date that notice of this decision is given. For further information, please contact the Environmental Appeal Board at (250) 387-3464.

Administration of this permit will be carried out by staff from the Lower Mainland Region.   Plans, data and reports pertinent to the permit are to be submitted to the Regional Manager, Environmental  Protection, at Ministry of Environment, Regional Operations, Lower Mainland Region, 2nd Floor, 10470 -152 Street, Surrey, BC V3R0Y3.

Yours truly,

Steffanie Warriner, P.Eng.
for Director, Environmental Management Act
Lower Mainland Region

Enclosure

cc:   Environment Canada
Dr. Sarah Barkowski, Catalyst Paper, General Partnership 5775 Ash Avenue, Powell River, BC V8A 4R3
Cranberry Ratepayers Association Townsite Ratepayers Association Wildwood Ratepayers Association Sliammon First Nation

PERMIT
4565
Under the Provisions of the Environmental Management Act
Catalyst Paper Corporation and
Catalyst Pulp Operations Limited dba
Catalyst Paper, General Partnership
2nd Floor
3600 Lysander Lane
Richmond BC V7B 1C3

is authorized to discharge refuse to the ground from a pulp and paper mill located at 5775 Ash Avenue, Powell River, British Columbia, subject to the terms and conditions listed below. Contravention of any of these conditions is a violation of the Environmental Management Act and may lead to prosecution.

This Permit supersedes and amends all previous versions of Permit 4565 issued under Part 2, Section 14 of the Environmental Management Act.

1     AUTHORIZED DISCHARGE

1.1       This section applies to the discharge of REFUSE FROM A PULP AND PAPER MILL. The site reference number for this discharge is E208453.

1.1.1    The maximum authorized rate of discharge is 25,000 cubic metres per year (uncompactcd volume). The total volume of refuse discharged to the landfill must not exceed 620,000 cubic metres (uncompacted volume).

1.1.2    The components of the refuse which may be discharged are:
Flyash
Waste asbestos
Miscellaneous mill waste, Subject to section 2.9, to a maximum of 3000
cubic metres per year (uncompacted volume)

1.1.3    The authorized works are a landfill operation including a 6.1 ha landfill with a 1.5 mm high density polyethylene liner^ a leachate management system consisting of a leak detection system, leachate collection system, Icachate pond, pumping and conveyance system, surface water diversion ditches, surface water infiltration pit, truck wash facility, and related appurtenances approximately located as shown on Site Plan A, dated April 2,2008.

1.1.4    The authorized works for the landfill expansion, in the area outside of the existing mini-landfill, must be complete and operational prior to the discharge of refuse.
During construction of the authorized works for the expanded landfill, discharge is authorized to the mini-landfill area. The permittee shall continue to ensure that all leachate and runoff from the mini-landfill area is collected for treatment.

1.1.5    The location of the facilities from which the discharge originates is L3088 (PID 015-890-333), L7212 (PID 004-781-821), L7213 (P1D 004-781-856), L6071, WaterL6174, L6237A, L5922, L5923, LS924, L4071, L4072, L3437 (PID 015-875-121), L3090 (PID 015-890-325), L3091(PE> 015-890-317), Lot A2, Ref. Plan 490, DL 3091 (PID 015-890-309), Part Of Block 43 (PID 002-554-682), Block 44 (PID 010-264-469), and Block 46 (PID 002-560-194) of DL 450, Plan 8096, New Westminster District..

The location of the point of discharge is Part of Block 55, DL 450, Plan 8096 (PID 010-237-321) and Part of Block 48, DL 1901 A, Plan 8096 (PID 010-267-361), Group 1, New Westminster District..

2.   GENERAL REQUIREMENTS

2.1    Maintenance of Works and Emergency Procedures

The permittee shall inspect the authorized works regularly and maintain them in good working order. In the event of an emergency or condition beyond the control of the permittee which prevents effective operation of the authorized works or leads to unauthorized discharge, the Permittee shall comply with all applicable statutory requirements, including the Spill Reporting Regulation, immediately notify the Regional Manager, Environmental Protection, and take appropriate remedial action for the prevention or mitigation of pollution. The Director may reduce or suspend operations to protect the environment until the authorized works have been restored and/or corrective steps have been taken to
prevent unauthorized discharges.

2.2    Maintenance of Contiguous Point - Part of Block 55 and Block 48 with Block 43
The permittee shall ensure that Part of Block 55, DL 450 (Pit) 010-267-361),Plan 8096, Group 1, NWD, and Block 48, DL1901 A, Plan 8096, Group 1, NWD remain contiguous with Block 43, DL 450, Plan 8096, NWD. The permittee shall notify the Regional Manager, Environmental Protection in writing at least 90 days prior to any subdivision of Part of Block 55, DL 450 (PID 010-267-361), Plan 8096, Group 1, NWD or Block 48, DL1901 A, Plan 8096, Group 1, NWD or Block 43, DL 450, Plan 8096, NWD.

2.3     Bypasses
The discharge of contaminants which have bypassed the authorized treatment works is prohibited unless the prior approval of the Director is obtained and confirmed in writing.

2.4     Process Modifications
The Regional Manager, Environmental Protection, shall be notified prior to implementing changes to any process that may adversely affect the quality and/or quantity of the discharge.

2.5     Site Security
The permittee shall maintain an inner and an outer perimeter fence and secure access to the landfill authorized in Section 1.1 during the active life of the landfill. A sign, acceptable to the Director, including the name and contact information of the owner/operator shall be posted at the entrance of the landfill.

2.6     Buffer Zone
The permittee shall maintain a minimum 50 metre buffer zone between the perimeter of the discharge area and the closest property boundary.

2.7    Inspections
Once each quarter, the permittee shall inspect the area between the landfill and the inner perimeter fence, determine the extent of any noted problem, and notify the Regional Manager, Environmental Protection of any evidence of potential environmental impact on adjacent properties.

2.8    Waste Reduction and Alternate Disposal
The Ministry of Environment has adopted a policy to reduce, recycle and reuse solid wastes. The Permittee is encouraged to segregate for recycling and reuse, where possible, materials destined for disposal at this site.
The permittee shall continue to explore options for the use of flyash as a product, in order to reduce or eliminate the need for landfilling of that material. Details of the efforts made shall be included in the Annual Report required in Section 3.7.

2.9    Miscellaneous Mill Waste
The miscellaneous mill waste authorized for discharge in Section 1.1.2 shall include dirt contaminated wood chips, road sweepings, asphalt and concrete rubble from minor demolition/construction projects, elemental sulphur, spent activated carbon, lime, lime mud and lime dregs, effluent treatment solids, boiler feedwater treatment resins and fiberglass. The discharge of any other types of miscellaneous mill wastes shall be approved by the Director.

2.10  Refuse Deposition and Prohibitions
All refuse shall be placed in a manner determined by a qualified professional registered in British Columbia and as specified in the Design and Operating Plan required in Section 2.15. Refuse shall be discharged in lifts not exceeding 3 metres in height. Each lift shall cover all of Ihc available disposal area prior to the commencement of the next lift. Miscellaneous mill waste as defined in Section 2.9 shall be discharged in layers of 0.6 metres or less, compacted to the smallest practical volume, and covered with a minimum of 0.3 metres of suitable cover material at least once every thirty days.
The overall profile from the outer edge of the landfill must not exceed a maximum side slope of 1:3 (verticahhorizonlal) at any time. The final side slopes of the landfill cover must not exceed a slope of 1:3 (vertical ihorizontal). The working face shall be confined to the smallest practical area. The permittee shall take all necessary actions to minimize dust from the landfill, including but not limited to, more frequent application of cover material.
Waste asbestos authorized for discharge in section 1.1.2 shall be managed in accordance with the Hazardous Waste Regulation.
The discharge of the following waste is prohibited:
*  Wood waste contaminated with wood preserving chemicals, or wastes that contain chemicals that penetrate the high density polyethylene liner;
*  Hazardous waste, other than waste Asbestos, as defined in the Hazardous Waste Regulation.

2.11   Leachate Management
The permittee shall, to the satisfaction of the Director, take measures to minimize leachate generation, including but not limited to, providing effective surface water diversion and optimizing the amount of water used in producing the flyash slurry. Measures taken, their effectiveness and any proposed measures shall be detailed in the Annual Report required in Section 3.7.
The leachate detection and collection works shall be maintained in accordance with an approach designed by a qualified professional registered in British Columbia.
The leachate containment pond shall be lined to prevent infiltration of leachate into groundwater. A minimum level of 1.0 metres of freeboard shall be maintained in the leachate containment pond to prevent overflow from the pond to the environment. Freeboard is defined as the difference in elevation between the contained liquid level and the top of the berm structure at its lowest point.

2.12  Slope Stability and Settlement
The permittee shall retain a qualified professional registered in British Columbia to design a slope stability and settlement monitoring program, to the satisfaction of the Director, for the landfill authorized in Section 1.1. Areas of primary focus shall include, but are not limited to:
•   Slope stability of the south-cast slope of the Phase 1 portion of the landfill.
•   Settlement across the base of the Phase 2 portion of the landfill.
The details of the monitoring program shall be included in the Design and Operating Plan required in Section 2.15. Monitoring results shall form part of the Annual Report required in Section 3.7.

2.13  Fugitive Participate Kmission
The permittee shall control fugitive paniculate emissions generated from the property. Should the Director have reasonable grounds to believe that fugitive paniculate emissions cause pollution outside the property boundary; the permittee shall undertake additional measures and/or curtail operations to control the emissions.

2.14  Ambient Air Quality
The permittee shall evaluate ambient air quality, PM10 and PM2.5, in the adjacent community of Wildwood, with respect to the applicable criteria on a continual basis. Notify the Regional Manager, Environmental Protection, if the data indicates deterioration of the ambient air quality. A summary of the evaluation shall form part of the Annual Report required in Section 3.7.
2.15  Design and Operating Plan

The permittee shall operate the landfill authorized in Section 1,1 in accordance with a design and operating plan, certified by a qualified professional registered in British Columbia and acceptable to the Director. The plan shall include, but is not limited to, information regarding:
•   a fill plan for the design capacity of the landfill. The plan shall incorporate the concept of progressive closure and take into consideration environmental protection measures and the proposed end use of the site,
•   a contingency to close the landfill, including funding, prior to the design capacity being achieved should early closure be required for any reason,
•   estimated elevations at 5 year intervals,
•   cell size, progressive closure and intermediate and final cover details including types of materials used,
•   details of how refuse will be managed/discharged,
•   surface water diversion measures,
•   measures to minimize leachate generation,
•   leachate detection/collection maintenance details,
•   operational hours, internal road network and truck wash facility,
•   measures to prevent dust,
•   contingencies to address slope stability issues and settlement issues should monitoring indicate slope movement or settling,
•   contingencies to address environmental protection issues, including leachate management, settlement and slope stability, in the event of an earthquake or any other emergency, and
•  estimated closure/ post-closure costs and details of how the closure/ post-closure funds will be accrued
The permittee shall review the plan on an annual basis to determine if changes are required. Any revisions to the plan, certified by a qualified professional, registered in British Columbia, shall be submitted to the Regional Manager, Environmental Protection as part of the Annual Report required in Section 3.7.

2.16 Environmental Assessment Report
The permittee shall submit an Environmental Assessment Report of the landfill authorized in Section 1.1, acceptable to the Director, by December 31, 2013 and every 5 years thereafter for the life of the landfill. Terms of reference for each update shall be submitted to the Regional Manager, Environmental Protection at least 6 months prior to the due date. The Environmental Assessment Report shall include, but is not limited to:
1.    a review of all monitoring data collected since the date that discharge to the expanded landfill, in the area outside of the existing mini-landfill, commenced,
2.    a comparison to baseline data which is established, by a qualified professional, registered in British Columbia, as being representative of conditions prior to the date when discharge to the expanded landfill commenced,
3.     an evaluation of the overall impact on the receiving environment as a result of the expanded landfill operation.
Data for this assessment shall include, but is not limited to, monitoring data from groundwater wells, recovery wells, surface water, leachate, dustfall canisters, and ambient monitoring stations as well as slope stability and settlement measurements.
The Environmental Assessment Report and subsequent updates shall be conducted by a qualified professional registered in British Columbia.  Actions recommended as a result of these updates shall be incorporated into the Design and Operating Plan required in Section 2.15.
Should any Environmental Assessment Report, or any other information, indicate that there is an adverse impact on the receiving environment, the Director may at his/her discretion require that the permittee immediately cease the discharge authorized in Section 1.1.1 and close the landfill in accordance with the Closure Plan required in Section 2.18.

2.17 Completed Areas of the Landfill
The permittee shall apply final cover to any area of the landfill which will not receive any further refuse. The design, method and frequency of application of final cover shall be determined by a qualified professional registered in British Columbia and be acceptable to the Director.

2.18  Closure Plan
The permittee shall submit a closure plan for the landfill authorized in Section 1.1 at least 6 months prior to the closure of the landfill to the Director for approval. The plan shall be prepared by a qualified professional registered in British Columbia and include information regarding:
•     estimated total waste volume and the closure date,
•     a topographical plan showing the final elevation contours of the landfill and surface water diversion and drainage controls,
•     design of the final cover including the thickness and permeability of barrier layers, drainage layers details and information on topsoil, vegetative cover and erosion prevention controls,
•     proposed end use of the property after closure,
a post-closure monitoring program for groundwater, surface water, erosion and settlement for a minimum period of 25 years, and "    contingencies to address environmental impact concerns which may arise during the minimum post-closure period of 25 years.

2.19  Closure/Post-closure Funding
The permittee shall record a financial obligation on its books, consistent with relevant provisions of the current Canadian Generally Accepted Accounting Principles ("GAAP"), to reflect future closure and other regulatory requirements related to the landfill. The estimated cost of meeting these requirements, and how this cost is determined, shall be included in the Design and Operating Plan required in Section 2.15. The estimated cost of future closure, post closure and other regulatory requirements will be reviewed annually and reflected appropriately in the accrued obligation in the permittee's books. The outcome of this annual review will be reported to the Regional Manager, Environmental Protection as part of the Annual Report required in Section 3.7.

2.20 Site Decommissioning
In accordance with the Environmental Management Act and its regulations, the permittee shall submit a site profile to the Regional Manager, Environmental Protection not less than 10 days prior to decommissioning the landfill authorized in Sectionl.l.

2.21 Legal Survey
The permittee shall, upon closure of the landfill, register a covenant or other legal notification, acceptable to the Director that the property described in Section 1.1.6 was used for the purpose of refuse disposal as a charge against the title of the property. Notify the Regional Manager, Environmental Protection of the covenant or legal notification.

3.   MONITORING AND REPORTING REQUIREMENTS

3.1    Discharge Monitoring

3.1.1    Leachate Monitoring
The permittee shall obtain representative grab samples of the leachate collected in the mini- landfill sump and from the expanded landfill and have the samples analyzed for the following parameters.
Parameter_________________Frequency
pH                                        Semi-annually
Specific conductivity                Semi-annually
Biochemical Oxygen Demand    Semi-annually
Dioxins & Furans                    Annually

The leakage detection/collection system shall be monitored semi-annually for the presence of flow. Should any groundwater be collected by the leakage detection/collection system, the collected groundwater shall also be analyzed for the same parameters and on the same frequency as listed above.
Proper care should be taken in sampling, storing and transporting the samples to adequately control temperature and avoid contamination, breakage, etc.

3.1.2 Discharge Quantities
The permittee shall record the types and volumes (uncompactcd cubic metres) of refiise discharged to the landfill (not including cover material).

3.2 Receiving Environment Monitoring

3.2.1 Dustfall Monitoring
In order to determine compliance with Section 2.13, the permittee shall conduct an annual dustfall monitoring program, acceptable to the Director. The program shall include a minimum of 4 dustfall sampling locations and one PM10 sampling location that take into consideration the horizontal and vertical aspects of the landfill.

3.2.2 Groundwater Monitoring
The permittee shall maintain at least six (6) groundwater monitoring wells and at least six (6) groundwater recovery wells. The water collected in the groundwater pumping wells shall be directed to the effluent treatment system. The exact design and location of the groundwater monitoring and groundwater recovery wells shall be designed by a qualified professional registered in British Columbia, and be acceptable to the Director.

3.2.3 Analysis
For the groundwater monitoring wells specified in Section 3.2.2, the permittee shall obtain grab samples for each of the wells and analyze the samples for the following contaminants at the specified frequencies:

*  Snap shot monitoring wells: upgradient well 93-2B and downgradient wells 94-16 (11m, 38 m, regional and bedrock flow zones), 94-17 (regional and bedrock flow zones), 94-18 (38 m and regional flow zones), 94-19 (38 m, regional and bedrock flow zones)

The abbreviations used in this section are described in Section 3.2.4.

3.2.4    Abbreviations- Analysis

3.3 Sediment Study
The permittee is to conduct a sediment sludy, designed by a Qualified Professional registered in British Columbia, similar to that conducted by HBT AGRA Limited, titled "Wildwood Landfill Sediment Sampling Program", and dated December 21, 1993. The terms of reference for the sediment sludy shall be acceptable to the Director. The study is to be submitted as specified in Section 3.7.

3.4 Fish Sampling Study
The permittee is to conduct a fish sampling study, designed by a Qualified Professional registered in British Columbia, similar to that conducted by HBT AGRA Limited, titled "Fish Sampling Program, Powell Lake, Haslam Lake, Powell River, BC", and dated May, 1993. The terms of reference for the sampling program shall be acceptable to the Director. The study is to be submitted as specified in Section 3.7.

3.5 Sampling Procedures
Sampling is to be carried out in accordance with the procedures described in the most recent edition of the "British Columbia Field Sampling Manual for Continuous Monitoring Plus the Collection of Air, Air-Emission, Water, Wastewatcr, Soil, Sediment, and Biological Samples", or by suitable alternative procedures as authorized by the Director.
A copy of the above manual may be purchased from the Queen's Printer Publications Centre, P. O. Box 9452, Stn. Prov. Gov't. Victoria, British Columbia, V8W 9V7 (1-800-663-6105 or (250) 387-6409). A copy of the manual is also available for review at all Regional Environmental Protection offices.

3.6 Analytical Procedures
Analyses are to be carried out in accordance with procedures described in the most recent edition of the "British Columbia Laboratory Methods Manual for the Analysis of Water, Wastewatcr, Sediment, Biological Materials and Discrete Ambient Air Samples", or by suitable alternative procedures as authorized by the Director.
A copy of the above manual may be purchased from the Queen's Printer Publication Centre, P. (X Box 9452, Stn. Prov. Govt. Victoria, British Columbia, V8W 9V7 (1 800-663-6105 or (250) 387-6409). The manual is also available for review at all Regional Environmental Protection offices.

3.7    Reporting
An annual report shall be prepared by the permittee and submitted to the Regional Manager, Environmental Protection. The report shall include, but is not limited to the following items:
1.   remaining design capacity of the landfill (uncompacted cubic metres) and an estimation of closure date at the current rate of disposal,
2.   efforts made in waste reduction and alternate disposal as required in Section 2.8,
3.   measures taken to minimize leachate generation, their effectiveness and any proposed measures as required in Section 2.11,
4.   an evaluation of slope stability and settlement monitoring as required in Section 2.12,
5.   an evaluation of air quality, PM10 and PM2.5, in the adjacent community of Wildwood as required in Section 2.14,
6.   any changes to the design and operating plan as required in Section 2.15,
7.   estimated costs of closure and post-closure activities as required in Section 2.19.
8.   monitoring data as required in Section 3.1.1,
9.   types and volumes (uncompacted cubic metres) of refuse discharged as required in Section 3.1.2,
10. details of the proposed dustfall monitoring program for the coming year.
The initial Design and Operating Plan specified in Section 2.15 shall be submitted by December 31, 2008. The Sediment Study and the Fish Sampling Program specified in Sections 3.3 and 3.4 respectively, are to be submitted by March 31,2009.
The following information is to be posted on the company web page at the specified frequencies:
1.   Ambient Monitoring data graphs - within 30 calendar days of the end of each month;
2.   Dustfall and Hivol monitoring results - within 30 calendar days following receipt of the data;
3.   Groundwater Update Report, Annual Report (Section 3.7), Sediment Study (Section 3.3), and Fish Sampling Study (Section 3.4) each within 30 calendar days following receipt of the report.

Attachments:
Signed Permit
Ministry Assessment
Ministry Assessment attachments