REPORT ON NON-FARM USE WITHIN THE

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1 PEACE RIVER REGIONAL DISTRICT DEVELOPMENT SERVICES REPORT ON NON-FARM USE WITHIN THE AGRICULTURAL LAND RESERVE (ALR) FILE NO. 020/2014 ALL MEMBERS PARTICIPATE OWNER: Zero Emission Septimus Creek Limited Partnership DATE: February 13 th, 2014 AGENT: Hatch Ltd. AREA: Crown Land LEGAL: Theoretical Sec 27, 29, 32, 33,34,35 & 36 TWP 81, RGE 19 W6M Theoretical Sec 4, 5 & 6 TWP 82, RGE 18 W6M Theoretical SEC 1, 2, 4, & 5, TWP 82, RGE 19 W6M LOT SIZE: 916 ha ( acres ) LOCATION: South West of Taylor PROPOSAL Construction and operation of a seven tower wind turbine farm. RECOMMENDATION: OPTION 1 THAT the Regional Board support and authorize the application to proceed to the Agricultural Land Commission. OPTIONS OPTION 1: THAT the Regional Board support and authorize the application to proceed to the Agricultural Land Commission. OPTION 2: THAT the Regional Board refuse authorization for the application to proceed to the Agricultural Land Commission. LAND USE POLICIES AND REGULATIONS OFFICIAL COMMUNITY PLAN (OCP): Outside the PRRD Rural OCP Bylaw No. 1940, 2011 ZONING: Outside the Dawson Creek Rural area Zoning Bylaw No. 479, 1986 AGRICULTURAL LAND RESERVE (ALR): Within BUILDING INSPECTION AREA: Outside the PRRD voluntary permit area SITE CONTEXT The subject property is located southwest of The District of Taylor, on the south side of the Peace River and west side of Highway 97N. The area is known as the Septimus Creek area and lies within unsurveyed Crown Lands. Forestry and oil & gas activities are found within the area. SITE FEATURES LAND: The land is Unsurveyed Crown lands. STRUCTURES: Oil and Gas wellsites and associated structures including possible forestry structures. ACCESS: The proposed access route will be on Sunset Road and Septimus Creek Forest Road. Both are currently used in connection with Louisiana Pacific operations in the area. The Applicant will obtain a Road Use Agreement with Louisiana Pacific LP prior to the start of construction. Page 1 of 5 Printed on: 17-Feb-14 11:02:13 AM Department Head CAO Report prepared by: Kole Casey, South Peace Land use Planner

2 SOIL: FIRE: File No. 020/2014 Class 5cp. Class 5 soils have very severe limitations that restrict their capability in producing perennial forage crops, and improvement practices are feasible. Subclass c denotes adverse climate. Subclass p denotes stoniness Outside all Fire Protection Areas PREVIOUS APPLICATIONS SUBJECT PROPERTY APPLICANT: Texaco Canada Resources Ltd. LEGAL: Theoretical Legal Subdivision 6 od Section 2, Township 82, Range 19, W6M PROPOSAL: Construction of a wellsite, temporary campsite and access road. DECISION: Ministry of Crown Lands issues Letter of Consent on March 2 nd, APPLICANT: Wainoco Oil Corporation LEGAL: Theoretical Legal Subdivision 9 of Section 36, Township 81, Range 19, W6M PROPOSAL: Construction of a wellsite and access roads. DECISION: Ministry of Crown lands approves Letter of Consent permit on January 18 th PREVIOUS APPLICATIONS PROPERTIES WITHIN 100 M APPLICANT: Andrew Glen Kilgour LEGAL: W½ & NE¼ of Section 3, Township 82, Range 18, W6M PRD PROPOSAL: Tenure Lease of Crown Land DECISION: Ministry of Forestry and Lands issued land tenure lease on March 1 st, 1988 APPLICANT: Esso Resources Canada Limited LEGAL: Theoretical Legal Subdivision 6 of Section 7, Township 82, Range 19, W6M PROPOSAL: Construction of a wellsite, temporary campsite and access roads. DECISION: Ministry of Crown lands approves TUP permit on February 14 th APPLICANT: Canadian Natural Resources Ltd. LEGAL: Unsurveyed Crown Land: the SE¼ of Section 22, Township 81, Range 19, W6M PRD PROPOSAL: Non-farm Use for a proposed plant site. DECISION: ALC approves application with conditions. Resolution # 698/2008 COMMENTS AND OBSERVATIONS APPLICANT It is the intent of the applicant to utilize an area of approximately ha ( acres) for the construction and operation of a seven turbine wind farm. The area proposed is approximately 460 ha ( acres) that will be used for development of the project. The applicant states the reason for the permit to be of a larger area is for future project flexibility. Infrastructure for the permit will consist of seven wind turbine generators, a collection network, new access roads, and a lay down area for the generators and equipment that will later be converted into the yard building. The overall design would be subject to change if the plan can show more optimization of the project area or environmental impact can be reduced. Work will also be partnered with CNRL to manage construction around existing gas wells and lines on site and along collection line. Page 2 of 5

3 ALR: OCP: ZONING: IMPACT ANALYSIS The subject property lies within the Agricultural Land Reserve. Therefore, Agricultural Land Commission approval is required. File No. 020/2014 Note: Pursuant to the Agricultural Land Commission Act, an application may not be considered by the ALC unless the Regional Board authorizes the proposal to proceed to the ALC. This is intended to provide local governments with latitude to consider and weigh the local community interests of each application, in addition to its zoning and official community plan. Should the Regional District forward the application to the ALC, the information and recommendation offered by the Regional District is taken into consideration by the Commission but should not be construed as being binding on the Commission s opinions or decisions. The subject property lies outside all PRRD OCP areas and therefore not subject to any such planning regulations of the Peace River Regional District The subject property lies outside all PRRD Zoning Bylaws areas and therefore not subject to any such planning regulation of the Peace River Regional District AGRICULTURE: The proposal will have minimal impact on agricultural productivity. Based on the applicant consultation process and internal review, agricultural land tenures within the project area were not identified. This area also includes a high percentage of stoniness in the soil which hinders agricultural use. CONTEXT: This area consists of essentially Unsurveyed Crown Lands with area of oil production and forestry practices POPULATION & TRAFFIC: Employment from the project will range from 5 to 80 workers over the course of the construction phase. Once the project is complete the project will employ around 10 fulltime and part-time workers. Traffic will be managed through Louisiana Pacific that owns permits for the roads and in agreement with EPC contractor, CNRL and other road users. Page 3 of 5

4 File No. 020/2014 Agricultural Land Reserve (094A.006) N ALR SUBDIVISION REPORT MAPS FILE NO. 020/2014 CLI-Soil Classification (094A/02) N 7 6 tr6 4 t 5cp 5 6 c4 4 x 3 6 x4 4 t Page 4 of 5

5 File No. 020/2014 ALR SUBDIVISION REPORT MAPS FILE NO. 020/2014 Air Photo N Page 5 of 5

6 APPLICATION BY LAND OWNER NOTE: The information required by this form and the documents you provide with it are collected to process your application under the Agricultural Land Commission Act and regulation. This information will be availablefor review by any member of the public. Ifyou have any questions about the collection or use of this information, contact the Agricultural L.and Commission and askfor the staff member who will be handling your application. TYPE OF APPLICATION (Check appropriate box) EXCLUSION under Sec. 30(1) of the Agricultural Land Commission Act INCLUSION under Sec. 17(3) of the Agricultural Land Commission Act SUBDIVISION in the ALR under Sec. 21(2) of the Agricultural Land Commission Act Non-farm USE in the ALR under Sec. 20(3) of the Agricultural Land Commission Act APPLICANT Registered Owner: Agent: Zero Emission Septimus Creek Limited Partneship Hatch Ltd. Address: Address: 3273 l37a Street West Haisting Street Postal Code Postal Code Surrey BC V4P 2B5 Vancouver BC V6E 3X2 Tel. (home) (604 ) (work) ( ) Tel. (604 ) Fax ( ) Fax( ) aking@zeroemissiondevelopments.com dvecei@hatch.ca LOCAL GOVERNMENT JURISDICTION (Indicate name of Regional District or Municipality) Peace Region Regional District LAND UNDER APPLICATION (Show land on plan or sketch) Title Number Size of Each Parcel Date of Purchase (Ha.) Month Year Crown Land in Vacinity of Septimus Creek N/A N/A OWNERSHIP OR INTERESTS IN OTHER LANDS WITHIN THIS COMMUNITY (Show information on plan or sketch) If you have interests in other lands within this community complete the following: Title Number(s): N/A Application by a Land Owner

7 PROPOSAL (Please describe and show on plan or sketch) Zero Emission Energy Developments Inc. is proposing to build a wind farm that consists of 7 turbines, project is located on the crown land in the fhcinity of Septimus Creek area (see Appendix 1 for more details). The proposed wind farm will supply electricity to BC Hydro. The project will be interconnected to BC Hydro grid via collection line (See attached Map 1 and Map 2 for more details on proposed project infrastureture layout). The MFLNRO granted GALOO for the Septimus Creek Project in September 2013 (see attached Appendix 2). CURRENT USE OF LAND (Show information on plan or sketch) List gil existing uses on the parcel(s) and describe all buildings Oil and gas development, forestry industry. USES ON ADJACENT LOTS (Show information on plan or sketch) North East South West Oil and gas development, forestry industry Oil and gas development, forestry industry Oil and gas development, forestry industry Oil and gas development, forestry industry DECLARATION 1]we consent to the use ofthe information provided in the application and all supporting documents to process the application in accordance with the Agricultural Land Commission Act and regulation. Furthermore, I/we declare that the information provided in the application and all the supporting documents are, to the best of my/our knowledge, true and correct. 1/we understand that the Agricultural Land Commission will take the steps necessary to confirm the accuracy of the information and documents provided. jo1/9lo q Date SignatureQ fowner or Agent Print Name Date Signature ofowner or Agent Print Name Date Signature ofowner or Agent Print Name Please ensure the following documents are enclosed with your application: a Application fee payable to the Local Government Certificate of Title or Title Search Print a Agent authorization (if using agent) Map or sketch showing proposal & adjacent uses Proof ofnotice of Application *(See instructions) a Photographs (optional) Application by a Land Owner

8 Appendix 1 Project Details Legal Description of Crown Land for Septimus Creek Project: Project infrastructure is located on unsurveyed Crown Land in the vicinity of Septimus Creek (within Theoretical Sections 27, 29, 32, 33, 34, 35 & 36, Township 81, Range 19, Theoretical Sections 04, 05, & 06, Township 82, Range 18 and Theoretical Sections 01, 02, 04 & 05, Township 82, Range 19, West of the 6th Meridian), Peace River District containing ha, more or less. It is anticipated that only limited area of approximately 460ha within the permitted area will be develop. The larger area within the permit allows for flexibility in the design. Project Infrastructure: Main project infrastructure components are: 7 wind turbine generators, collection network (underground and overhead), new roads and lay-down area that after construction will contain yard building. Please see attached Map 1 and Map 2 for more details. Please note that maps show preliminary design, some components like collection line, new roads and potentially turbine location might be relocated when more information like geotech studies become available and detail design is completed. In general infrastructure layout will be optimized to minimize impact on environment and optimize cost of the project. Estimated disturbed soil volumes by component with description: Wind Turbine Area of the land proposed to be used for nonfarm _ 500m 2 per turbine; 3,500 m2 3,500m for 7 turbine 2 New Roads 2,025m by 5m 10,125 m2 Underground collection line 4,307m by 2m 8,614 m2 Crane pads for 7 turbines 45m by 25m 7,875 m2 Lay-down area that includes yard Total area permitted 4,725 m2 building Overhead collection line (m) Option rd P01 11,l6Ombyl5m 167,400m Option 2 alternative Shell P01 1 0,400m by 5m 156,000 m2 Total estimatewarea proposed to Li d for non-farm use (with 1 overhead collection line Option 1): Total estimated area proposed to be used for non-farm use (with overhead colledion line Option 2): 190,839 m2 2

9 Wind turbine pads: Total area required for construction of turbine pad is up to 500m 2. The top surface of the pad will be covered with layer of soil. New roads for turbine access: Road will be constructed according to engineering design. Finished width of the new road will be 5m, Current design anticipates total length of 2,025 m of new roads. Collection line underground: The underground collection line will be used near wind turbine generators. The collection line will be installed underground and then be covered with excavated soil. Collection line overhead: Currently there are two options to interconnect project to BC Hydro grid. The preferred option is marked as 230rd and alternative option Shell P01 on Map 1. The final decision on point of interconnection (P01) will be made after BC Hydro s interconnection study is completed. Note only one of the two options for collection line will be chosen. The final route and installation technique will be determined once geotech studies and detail design for overhead line is completed. Crane Pad: It will be constructed next to turbine pad. Top soil layer will be compacted in order to be to support the load of the crane during installation. Lay down area and yard building: Top soil layer will be compacted in order to support the load of turbine components and other equipment that will be temporary stored in this area during construction. After construction, portion of the lay-down area will house yard building and remaining area will be return into previous condition.

10 I ASSIGNMENT/ASSUMPTION I Licence. No.: File No: Disposition No.: THIS AGREEMENT is dated for reference October BETWEEN: ZERO EMISSION ENERGY DEVELOPMENTS, INC. (Inc. No. BC ) A St Surrey,BC V4P2BS AND: OF THE FIRST PART (herein the Assignor ) ZERO EMISSIONS SEPTIMUS CREEK LIMITED PARTNERSHIP (LP ) 3273-I 37A St Surrey, BC V4P 2B5 OF THE SECOND PART (herein the Assignee AND: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA, represented by the minister responsible for the LandAcs, Parliament Buildings, Victoria, British Columbia OF THE THIRD PART (herein the Province ) WITNESS THAT WHEREAS: The Assignor and the Province entered into a Wind Power Extensive Intensive Licence - DP (herein called the Document ) over those lands more particularly known and described as: ASSIONMENTIASSUMPTION Page 1of

11 AssignmeaUAssumptio. File Nod: Disposition No.: THAT PARCEL OR TRACT OF UNSURVEYED CROWN LAND TN THE ViCINITY OF SEPTIMTJS CREEK (WITHIN ThEORETICAL SECTIONS 27,29, 32,33,34,35 & 36, TOWNSHIP 81, RANGE 19, THEORETICAL SECTIONS 04.05, & 06, TOWNSHIP 82, RANGE 18 AND ThEORETICAL SECTIONS 01,02,04 & 05, TOWNSHIP 82, RANGE 19, WEST OF THE 6TH MERIDIAN), PEACE RIVER DISTRICT, CONTAINING HECTARES, MORE OR LESS. NOW THEREFORE ThIS AGREEMENT WITNESSETH that for good and valuable consideration paid by the Assignee to the Assignor and by the Assignee and the Assignor to the Province, the receipt and sufficiency ofwhich is hereby acknowledged by both the Assignor and the Province, the parties agree as follows: ARTICLE I - ASSIGNMENT 1.1 The Assignor assigns all of his right, title, interest and estate in and to the Document to the Assignee. ARTICLE II- ASSUMPTION 2.1 The Assignee covenants with the Province to assume and be bound by all the terms, conditions, covenants, obligations and agreements contained in the Document. ARTICLE Ifl - CONSENT 3.1 The Province consents to the execution and delivery of this agreement and the Assignment. 3.2 The Province releases and discharges the Assignor from all the terms, conditions, covenants, obligations and agreements contained in the Document ARTICLE IV - WARRANTIES AND REPRESENTATIONS 4.1 The Assignee warrants and represents to the Province, with the intent that the Province will rely thereon, that the Assignee: (a) is a corporation duly formed under laws of the Province of British Columbia and has tiled all necessary documents under such laws and has complied with alt requirements of the Buslnesc Corporations 4c1; ASSIONMENTUSSUMPTION Page 2 of

12 obligations contemplated herein, all ofwhich have been duly and validly authorized by all necessary proceedings; and (b) has the power, capacity and authority to enter into this agreement and to carry out its ASSIGNMENTIASSUMFFION Page 3 of 6.5 In this agreement, unless the context otherwise requires, the singular includes the plural and the ofbritish Columbia. 6.4 This agreement shall be governed by and construed in accordance with the laws ofthe Province ofthe Document. 63 This agreement may not be assigned by the Assignee except in accordance with the provisions Ml force and effect. 62 The parties to this agreement confirm that the terms ofthe Document remain and continue in and permitted assigns. 6.1 ThIs agreement shall entire to the benefit ofthe parties hereto and their respective successors ARTICLE VI- MISCELLANEOUS be the address specified for the Assignee on the first page ofthis agreement. 5.1 The address ofthe Assignee for the service ofnotices or documents under the Document shall ARTICLE V - NOTICE the entire agreement. this agreement or the land, and the hnprovements (if any) situate thereon, which arc the subject ofthe Document except as expressed herein and that this agreement constitutes (c) there are no representations, warranties, collateral agreements or conditions affecting (b) the Assignee has reviewed and inspected all municipal and regional by-laws, regulations and policies concerning the use and development ofthe land which is the subject of the Document; and (a) the Assignee has inspected the land, and the improvements (ifany) situate thereon, which are the subject ofthe Document and is fishy aware ofthe condition ofthat land, and the improvements (if any) situate thereon, and accepts same in its current state; 42 The Assignee acknowledges to the Province and to the Assignor that (c) is in good standing with respect to the filing ofreturns in the Office ofthe Registrar of Companies ofbritish Columbia. Disposition No.: Licence. No.: File No.:

13 Licence. No.: File No.: Disposition No,: masculine includes the feminine gender and corporation as the case may be. 6.6 The captions and headings contained in this agreement are for convenience only and are not to be construed as defining or in anyway limiting the scope or intent of the provisions hereof. 6.7 Where there is a reference to an enactment of the Province of British Columbia in this agreement of British Columbia of like effect, and, unless the context otherwise requires, all statutes referred to herein are enactments of the Province of British Columbia. 1 that reference shall include a reference to any subsequent enactment of the Province 6.8 If any section of this agreement or any part ofa section is found to be illegal or unenforceable, that part or section as the case may be, shall be considered separate and severable and the remaining parts shall be enforceable to the fullest extent permitted by law. 6.9 All schedules attached to this agreement form an integral part of this agreement. IN WITNESS WHEREOF the Assignor and Assignee have executed this agreement1 and the Province has consented thereto, the day and year first above written. SIGNED on behalf of HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA by the minister responsible for the Land Act or the minister s authorized representative /, Minister respoable for the Land Act or the minister s authorized representative SIGNED BY. ZERO EfvHSSIONENERGY DEVELOPMENTS, INC. Assignor ASSIGNMENT/ASSUMPTION Page 4 of

14 ASSIGNMENT/ASSUMPTION Pages of Assignor BY: I by its genl partner ZERO EMISSION PROJECTS CORPORATION SIGNED on behalf of ZERO EMISSIONS SEPTIMUS CREEK LIMITED PARTNERSHIP Disposition No.: Licence. No.: File No.:

15 Natural TRIM 11/ Septimus Creek Overview With ALR Boundaries Legend A wind Turbine A A Met Mast ZJ ARLAdm1n Boundary Contour Overhead Collection to Shell P01 Overhead Collection to 230 Rd = Underground Collection Existing Road to be maintained Gravel Road Overgrown or Forest Road Paved Road Rough Road Local Road Regional Road Watercourse Wetland Waterbody Vegetation Turbine model: RePower MM MW Number of turbines: 7 Site cupucity: MW Turbine ruted power: 2.05 MW Hub height: 100 m File reference: Srptimos_LuyMM92_l7april2Ol 3.shp Not for use for plan and construction I Km I I 1: Projectiort UTMZ1 ON - NAD83 Source: N7DB - Resource Canada 1: GEOBC - data 1: ZED HATCW Rnnlsion Date: Prnpamd by: Jan. 20, 2014 Chnsbfle Sure b,..*10..r.k. ãq 51., I..,.(.m, _I1, bl...i I *00.11,!lr P*4Y 10.1

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