Participant Funding Program Review Committee's Report
Regular Funding Envelope

Allocation of Funds for Participation in the Comprehensive Study of the KSM (Kerr–Sulphurets–Mitchell) Project

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act (the Act), which states: For the purposes of this Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels.

A funding review committee (FRC), independent of the environmental assessment (EA), was established to review funding applications and allocate up to $50,000 to applicants. On August 4, 2010, the FRC met to review one application received by the PFP–Regular Funding Envelope (RFE), requesting a total of $6,550 to participate in the comprehensive study process for the KSM (Kerr–Sulphurets–Mitchell) Project (the Project).

The FRC members were Paul Scott, retired Regional Director of the Canadian Environmental Assessment Agency's Pacific and Yukon Office, as Committee Chairperson; Dr. George Kupfer, Mediation and Environmental Consultant, Fresh Start Limited; and Raymond L. Crook, Environmental Assessment Consultant.

Background

Seabridge Gold Inc. (the proponent) proposes to develop gold and copper deposits located in the Kerr, Sulphurets and Mitchell Creek drainages, which are about 65 km northwest of Stewart, British Columbia.

The proponent and its consultants submitted a project description to the British Columbia Environmental Assessment Office (BCEAO) and the Canadian Environmental Assessment Agency (the Agency) on April 25, 2008, and to the Major Projects Management Office on May 5, 2008. The Project was one of the first projects to qualify for inclusion in the major resource projects initiative.

A Notice of Commencement of a federal environmental assessment pursuant to the Act was posted to the Canadian Environmental Assessment Registry Internet site on July 23, 2009. Based on the proposed mine extraction and milling capacities, the EA is proceeding by way of a comprehensive study.

The Project is also subject to review under British Columbia's Environmental Assessment Act. A cooperative EA is being coordinated with the BCEAO, with the Agency designated as the Federal Environmental Assessment Coordinator.

Eligibility

Individuals, Aboriginal groups and incorporated not-for-profit organizations who demonstrate that they meet at least one of the following criteria are eligible for participant funding under the program—they either:

• have a direct, local interest in the Project, such as living in or owning property in the project area;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA; or
• have expert information relevant to the anticipated environmental effects of the Project.

Parties who are for-profit, have a direct commercial interest in the Project, or represent a level of government other than an Aboriginal government are ineligible for participant funding.

The FRC concluded that the applicant met the eligibility criteria.

Rationale for Allocation

The FRC found that the one application received was well prepared and well presented. The application focused on activities associated with socio-economic effects, and proposed holding meetings to gather and communicate information and local knowledge, as well as reviewing documentation associated with the proposed Project, including reviewing the Environmental Impact Statement (EIS) and the comprehensive study report (CSR). The FRC believed that the work stemming from this application would be useful to the socio-economic component in the comprehensive study process.

For the KSM (Kerr–Sulphurets–Mitchell) Project PFP–RFE, the funding is intended to cover activities that follow the public consultation, now completed, on the scope of the project. The FRC understands that the next EA phase is to focus on providing comments on the EIS and the CSR.

The FRC recommended a funding amount that it deemed reasonable in light of the information provided in the application and the activities to be undertaken.

Recommendation

The FRC recommends awarding a total of $6,550 to the applicant to support the proposed activities, conditional on all activities to be funded under the PFP–RFE and related to community consultation be restricted to consulting within the applicant's own membership. In keeping with the expectation of the PFP–RFE program that funding awards will reflect the allocation of responsibilities more generally within the EA process, the FRC does not support the funding of broader public consultation by RFE applicants, since this is the responsibility of the proponent and the government.

The FRC recommends that any funding agreement entered into between the Agency and the applicant clearly state that the funding be limited to the following five activities:

• Holding meetings (within the applicant's own membership only) to collect local knowledge of the capacity of the community;
• Reviewing documentation relevant to the proposed Project;
• Reviewing the EIS submitted by the proponent;
• Reviewing the CSR; and
• Giving information to or collecting information from community members who belong to the applicant's own membership.

The FRC further recommends that a condition of the funding agreement be that the applicant provides written comments on the EIS and/or the CSR to the Agency.

The Funding Review Committee
Regular Funding Envelope

KSM (Kerr–Sulphurets–Mitchell) Project

_____________________________
Paul Scott, Chairperson
Retired Regional Director, Pacific and Yukon Office
Canadian Environmental Assessment Agency

_____________________________
Raymond L. Crook, Environmental Assessment Consultant

_____________________________
Dr. George Kupfer, Mediation and Environmental Consultant, Fresh Start Limited

Recommended Participant Funding Awards
Regular Funding Envelope

KSM (Kerr–Sulphurets–Mitchell) Project

Applicant	Total amount approved
K.T. Industrial Development Society (KTIDS)	$6,550