Little Bow Project/Highwood Diversion Plan Water Management Project

Introduction

In May 1997, the Natural Resources Conservation Board (NRCB) and the Canadian Environmental Assessment Agency (CEAA) agreed to operate a Joint Review Panel for the Little Bow Project/Highwood Diversion Plan Water Management Project. Alberta Public Works, Supply and Services (APWSS) has requested approvals for this project from both provincial and federal levels of government. Harmonizing the provincial and federal reviews resulted in financial and process efficiencies for all participants while providing a decision that reconciles the regulatory regimes of the two levels of government. This is the executive summary of the Decision Report of the NRCB/CEAA Joint Review Panel.

The Project

Background

The Highwood and Little Bow river basins have been physically linked for almost a century by diversions from the Highwood River to the Little Bow River. These diversions are essential to domestic, municipal and agricultural water users in the Little Bow basin. In the 1970s, the introduction of mechanized irrigation equipment resulted in a sudden, large increase in irrigated farming in the more arid Little Bow River basin. This increase coincided with a period of drought and low flows. As demands for irrigation water grew, increased diversions from the Highwood River were accompanied by incidences of fish kills in the lower Highwood River. Water supply and quality were also affected.

Regional communities have been working since the early 1980s to find a way to allow irrigation expansion while protecting the Highwood River. Low water conditions in the Highwood River in the mid-1980s led to a moratorium on irrigation licences in both the Little Bow and Highwood river basins. This moratorium remains in effect today.

Proposal

To address problems related to water supply and quality in the Little Bow River basin, APWSS proposes to construct a water management project (the project) to convey and store water diverted from the Highwood River during spring freshet. The project consists of four interrelated components and an operating plan.

1. Little Bow River Reservoir

The Little Bow River dam and reservoir would be constructed in the Municipal District of Willow Creek No. 26 and in the County of Vulcan No. 2, approximately 20 kilometres (km) [12 miles (mi)] west of Champion. The proposed $38.8 million dam would be 25 metres (m) [82 feet (ft)] high and create a reservoir that would hold 61,675 cubic decametres (dam³) [50,000 acre-feet (ac-ft)] of water. The reservoir would be filled from the natural runoff in the Little Bow River basin and water diverted from the Highwood River.

2. Highwood Diversion Works and Canal

A canal and diversion works would be created in the Town of High River and through the Municipal District of Foothills No. 31. This proposed $6.2 million component would triple the capacity of the existing canal from 2.83 to 8.50 cubic metres per second (cms) [100 to 300 cubic feet per second (cfs)] to allow more water to be diverted from the Highwood River to the Little Bow River during peak flows.

3. Clear Lake Diversion Works and Canal

The proposed $5.1 million Clear Lake diversion and canal would be constructed in the Municipal District of Willow Creek, about 15 km [9 mi] east of the Town of Stavely. The 10-km [6 mi] long canal would allow the lake and 12 wetlands along the route to be filled when flows in Mosquito Creek are high.

4. Expansion of Squaw Coulee Reservoir

The existing Squaw Coulee reservoir in the Municipal District of Foothills No. 31 would be enlarged from 361 to 6,283 dam³ [293 to 5,175 ac-ft] at a cost of $7.1 million, by constructing upper and lower dams and a 0.65 cms [23 cfs] return canal to the Highwood River.

5. The Highwood Diversion Plan

The Highwood Diversion Plan is the proposed operating plan for the water management structures described above, and for the existing Squaw Coulee diversion. The plan is based on an assessment of the flows required to service the existing and projected licence demands in the Highwood and Little Bow river basins and to protect the aquatic resources of the Highwood River.

Objectives

In its application, APWSS outlined how the proposed project and diversion plan would address the problems of water supply and quality in the Highwood/Little Bow river basins by meeting the following objectives:

• reduce diversions from the Highwood River during critical summer periods, improving water quality and instream flows to benefit fish and recreation in the lower Highwood River;
• secure water supplies for Vulcan, Carmangay and three water co-operatives;
• give Champion an alternative or second water source which would provide a year round supply and lower pumping costs;
• reduce turbidity in the raw water supply for Vulcan, Carmangay and three water co-operatives and reduce treatment costs;
• improve domestic and stock water supply for users along Mosquito Creek, the Little Bow River and around Clear Lake;
• secure water supplies for 4,660 hectares (ha) of existing irrigated farming and for 8,100 ha of additional irrigation; and
• restore and stabilize levels in Clear Lake and nearby wetlands for recreation, fish and wildlife habitat.

According to APWSS, the project and diversion plan would also reflect principles established by the Alberta Water Resources Commission for water management in the South Saskatchewan River Basin. APWSS believes the proposal would:

• use water to stabilize and maximize agricultural economies while sustaining natural resources;
• support multi-purpose use;
• secure domestic water supplies;
• enhance the use of water resources for fish and wildlife habitat and recreation needs;
• allow irrigation development, which in turn would help stabilize the agricultural community and lead to improved economic and social well-being for residents of the region;
• use water storage and flow regulation to stabilize variable water supplies; and
• sustain the integrity of the Highwood River ecosystem by improving instream flows during critical water supply periods.

Panel Jurisdiction and Review Process

Jurisdiction

In its examination of the issues, the Panel has considered all aspects of the two areas of jurisdiction - federal and provincial.

Under the Natural Resources Conservation Board Act, the NRCB reviews "projects that will or may affect the natural resources of Alberta in order to determine whether, in the Board's opinion, the projects are in the public interest, having regard to the social and economic effects of the projects and the effect of the projects on the environment."

Under the Canadian Environmental Assessment Act, the Minister of Fisheries and Oceans referred the proposed project to the federal Minister of the Environment for a Panel review, noting concerns about potential significant environmental effects and effects on the current use of lands and resources for traditional purposes by aboriginal peoples.

The purpose of the joint review is to avoid duplication of process and provide for public participation. This harmonization of the review process provides for effective, efficient and timely consideration of federal and provincial issues in one public forum.

The Review Process

The Panel initiated an issue-focused approach to the review of this project. The Panel pursued early disclosure and sharing of information among participants so that the hearing could focus on issues critical to the Panel's mandate. In particular, the Panel recognized a need to focus on project-related effects that are likely to be significant.

The issue-focused approach was incorporated into the Panel's Report of the Pre-Hearing Conference. The Pre-Hearing Conference which dealt with procedural and preliminary matters was held on June 3 and 4, 1997, in High River, Alberta. Copies of this report are available from the NRCB office in Edmonton and may also be downloaded from the NRCB website www.gov.ab.ca/nrcb.

A public hearing commenced on November 12, 1997, in the Town of Vulcan. During the 19 days of the hearing, which included three days in the Town of High River, the Panel heard the views of individual and group participants and received a total of 378 exhibits. The Panel decision reflects the input received in the review process.

The adequacy of project-related public consultation is a key concern of the Joint Panel Review process. In addition to establishing public advisory committees, APWSS conducted public meetings, group meetings and open houses to discuss various aspects of the project. APWSS also kept the public informed with newsletters and media releases. With the exception of consultation with First Nations regarding archeological sites and involvement of certain individuals affected by the Squaw Coulee component, the Panel is satisfied that potentially affected individuals and groups were well informed and had the opportunity to become involved at the project design stage.

Frame of Reference

The Panel believes that in the assessment of impacts of development, it is appropriate to determine the public interest within the framework of sustainable development. An ideal development would be one that brings long-term social and economic benefits and has a beneficial or neutral effect on the environment. Development should be planned and operated to minimize negative impacts on the environment. However, where negative effects on the environment are likely, the Panel believes that mitigative measures should be considered. Social or economic benefits should be weighed and balanced in terms of their environmental effects and risks after remedial measures have been developed.

In reviewing the proposed project, the Panel adopted a sustainable development frame of reference based on three key principles:

1. Water management projects must respect existing riparian rights and water licences, and should not result in the loss of or injury to existing water rights.
2. Water management projects must be able to meet basic environmental criteria to avoid significant adverse effects.
3. Water management projects must be able to meet current and future needs for domestic, riparian, and municipal needs, and other consumptive uses.

These environmental, social and economic considerations are basic to the determination of the public interest. The Panel believes that a project must be able to meet these three criteria to be worthy of detailed consideration with respect to project effects.

Project Need and Justification

The Panel has considered the reasons for the proposed project, as provided by APWSS, as well as the views of the review participants. The Panel concludes that current water management in the Highwood, Little Bow and Mosquito Creek basins is unsustainable. Action is required to address environmental and socio-economic concerns.

There is a need to protect the instream flow requirements of the Highwood River in terms of water quantity and quality, as well as the fishery. This need is particularly evident downstream of the proposed diversion works on the Highwood River. The Panel also accepts that there is a need to provide increased security of supply for existing municipal, domestic, livestock and irrigation water users, and a need to accommodate irrigation expansion. In addition, there is a strong local interest to restore and stabilize Clear Lake.

Panel Conclusions Regarding Current Conditions and Project Effects

Under the Natural Resources Conservation Board Act, the Panel is required to determine whether the proposed project is in the public interest, taking the social, economic and environmental impacts into account. After considering all the evidence presented, the Panel has reached the following conclusions:

Water Management

• The water management options within the Little Bow basin and at Clear Lake have been appropriately examined through a public planning process that included consideration of both structural and non-structural alternatives. The Panel particularly notes that many local participants directly affected by the first three components of the proposed project agreed that those components would be preferable to other water management options that were considered, including alternative locations.
• The current over-allocation of water resources and the failure to control water pollution have placed the natural environment, agriculture and communities that depend on water resources at some risk.
• The first priority for any further development is to effect a transition from current unsustainable practices to sustainable practices.
• The proposed Diversion Plan fails to meet current or future needs for water. The plan does not meet the basic criteria of a sustainable development because it would not meet existing licence commitments, it would not meet requirements for instream flow needs (IFN), and it would not meet ecosystem or consumptive needs due to the poor water quality associated with low conveyance flows. Decision on approval of the plan, other than diversions proposed for high flows, is deferred pending required revisions.
• In the context of sustainable development, there is a need for water storage for the Highwood basins. Although a super expanded Squaw Coulee reservoir would appear to meet most project objectives, the Panel requires further evidence to reach a final conclusion.
• The expanded Highwood Diversion Works component, the Little Bow River reservoir component and the Clear Lake project component could meet the basic characteristics of a sustainable water management project. Construction of this three-component project could proceed at the same time as the matter of the diversion plan for low flows is being resolved.

Environmental Effects

• The three-component project, including required mitigative measures, would have little or no effect on the current ecological conditions of the Highwood River. No change would be expected because increased diversions would occur during the spring freshet and because current operating guidelines would remain in place during low flow periods. The project would however initiate the process of improving water quality in the basins. Furthermore, the storage associated with the proposed project could improve the sustainability of the Little Bow River, Clear Lake and Mosquito Creek aquatic ecosystems.
• The three-component project with required mitigation would have a positive incremental impact on surface water supply and quality, and near neutral residual effects on fish and fisheries, and groundwater.
• The environmental impact of the three-component project on soils, land, vegetation and wildlife could be reduced so that the residual impact on the environment would be acceptable. There would be a significant adverse environmental impact on grasslands and some riverine areas which would require compensation.
• The three-component project will not mitigate all adverse cumulative environmental effects of prior developments and activities. Many of the anticipated benefits of the project will only be realized if the cumulative effects of those other activities, particularly those that harm water quality, are also addressed.

Social Effects

• The proposed project would provide significant and positive social benefits to the residents of Little Bow and Clear Lake basins, with some significant adverse social effects due to the relocation of the Hutterite colony and the flooding of aboriginal archeological sites.
• Relocation of the Little Bow Hutterite Colony is perhaps the largest single adverse social impact of the proposed Little Bow reservoir development. The Panel believes that the successful relocation of the Hutterite colony will require due care and attention on the part of the various parties involved, including APWSS, local jurisdictions, area residents and the colony itself.
• By providing a secure and stable water supply, the project would remove a significant barrier affecting the social stability and well-being of the residents of the basins.
• Although the social and environmental impacts of a dam failure would be significant, the potential risk of such a failure has been rendered negligible by use of the Probable Maximum Flood design standard. This provides a significant positive safety margin.
• Communities affected by the project have specific transportation issues, such as lost road connections in the Little Bow River reservoir area and local road re-location and upgrading. Mitigation of major project impacts on transportation is solely the responsibility of the Alberta government. A direct crossing of the proposed Little Bow River reservoir, at or near the existing secondary highway No. 529, would seem to be the most effective way to address the transportation issue for this particular location.
• Decisions about secondary route status and routing preferences related to subsequent road upgrading and/or construction rest with local community residents, the Applicant, the MD of Willow Creek, the County of Vulcan, and Alberta Transportation and Utilities.
• The proposed Little Bow River reservoir and Clear Lake project components are expected to have only a minor effect on the limited navigation on the Little Bow River and Mosquito Creek.

Economic Effects

• A cost-benefit analysis suggests that on balance, project benefits would exceed costs. The project benefits tend to improve when consideration is given to such results as increased security of water supply, enhanced flows below the reservoir, an increased ability to manage water, and a potentially higher water value in the future.
• The Panel does not believe that this project negatively affects the current or future economic well-being of either the Peigan or Blood First Nations.
• The costs incurred by farmers around Clear Lake to assess soil irrigability demonstrate sufficient commitment to proceed with developing this component. Implementing the anticipated irrigation withdrawals from a restored Clear Lake on a timely basis would expedite improving and stabilizing water quality.
• The construction and operation of the project would have a significant and positive impact on the economy of the surrounding area.

Commitments and Undertakings

The Panel considers commitments made in the application and undertakings given at the hearing to be integral parts of the proposed project. Many of these have been considered within the conditions of approval for the project.

APWSS is committed to continuing consultation with the parties affected by the project. APWSS also is committed to seeking the advice, direction and approval of appropriate government departments and agencies regarding measures in the proposal designed to mitigate the project's environmental impact. This government group includes Alberta Environmental Protection (Controller of Water Resources, Fisheries Management, Water Management), Alberta Community Development, Alberta Agriculture, Food and Rural Development, Alberta Transportation and Utilities, Fisheries and Oceans, Environment Canada, the Department of Indian and Northern Affairs Canada, the MD of Willow Creek, the Town of High River, the County of Vulcan, and other local authorities.

NRCB Decision Respecting the Public Interest

The Panel examined in detail only those components of the project that were able to meet the criteria for sustainable development, as previously described in Frame of Reference. The Panel has deferred decision on the Super Expanded Squaw Coulee project component and the Diversion Plan, pending receipt of further information. The Panel requires the following to be filed with the NRCB, the CEAA and the Environmental Assessment Division within 12 months of the release of this decision report:

• updated comparative analysis of the sites available for meeting the storage needs, including the Super Expanded Squaw Coulee site, Tongue Creek Site 4 and Stimson Creek Site 8;
• complete assessment of the environmental, social and economic effects of the Super Expanded Squaw Coulee project, including public consultation; and
• revisions to the Diversion Plan to meet the basic criteria of a sound water management project. Specifically, the revised plan should ensure that the science-based IFN is observed at all times in the Highwood River, existing licence commitments are upheld, adequate conveyance flows are maintained in both the upper Little Bow River and lower Mosquito Creek, known future demands can be met, and consideration is given for reserving water, if possible, for future requirements that are unknown at this time.

The Panel concludes that the proposed three-component project, even with substantial mitigation, would have some significant adverse environmental effects. The positive social effects of the project, combined with the economic benefits, more than outweigh the negative residual environmental effects, when mitigative measures and habitat compensation plans are taken into consideration. On balance, weighing the predicted adverse effects and the positive benefits, the Panel concludes that the three-component project is in the public interest and that the adverse effects are an acceptable cost to gain the benefits.

The Panel's decision is to approve construction of the Little Bow River dam and reservoir, the Highwood River diversion works and canal, and the Clear Lake diversion works and canal, as well as the interim operations of the freshet diversion. Construction of these components could proceed at the same time as the matters of the additional storage and a diversion plan for low flows are being resolved.

The Panel is prepared to make an order granting approval for the three-component project, with the authorization of the Lieutenant Governor in Council and subject to the conditions contained in the NRCB Draft Form of Approval (Appendix A).

Joint Review Panel Recommendations to the Federal Government

The Panel is required to fulfill the terms of reference and mandate established by the federal Minister of Environment. The Government of Canada is primarily interested in the impact of the project on navigation; fisheries and fish habitat; migratory birds; and vulnerable, threatened or endangered species; and in the concerns and interests of aboriginal people.

Navigation

The proposed Little Bow River reservoir and Clear Lake project components are expected to have only a minor effect on the limited navigation on the Little Bow River and Mosquito Creek. The Panel recommends that the Department of Fisheries and Oceans require the Applicant to provide a convenient portage around the diversion works, and that the works be designed and operated so as to minimize the risk of navigation hazards for canoeists or other small craft operators. The proposed Little Bow River reservoir and Clear Lake project will remain relatively clear for boating and the project includes the establishment of boating access facilities.

Fisheries and Fish Habitat

One of the NRCB conditions for approval of the project is the development and implementation of a detailed fisheries mitigation and enhancement plan, including a fisheries habitat compensation plan. This plan should enable the Department of Fisheries and Oceans to confirm that the project would meet the requirements of the no-net-loss fisheries habitat policy. The Panel recommends that the Department of Fisheries and Oceans, along with local residents, participate in the development and evaluation of the fisheries mitigation and enhancement plan.

Migratory Birds

The loss of mixed grass habitat will adversely effect songbirds, upland sandpipers, long-billed curlews and ferruginous hawks, among other grassland species. The Clear Lake project component could substantially compensate for loss of waterfowl habitat on the Little Bow River, but would do so by converting a substantial connected area of mixed grass prairie and shorebird habitat. Some rare and endangered species are among those that would be adversely affected. The Applicant has proposed to manage the north end of Clear Lake to provide waterfowl habitat. Also, the Panel agrees with Environment Canada's suggestion to manage the wetlands in the area of the Clear Lake canal for shorebird habitat. The Panel recommends that Environment Canada work closely with APWSS and Ducks Unlimited to establish these wetlands.

Threatened, Rare and Endangered Species

The Panel has concluded that the project will not result in significant adverse environmental effects to these species. Concerns about specific species were identified through the Environmental Impact Assessment (EIA) process and a habitat compensation program is proposed to reduce effects of the project. Specific attention will be given to minimize the residual effects of the project on the ferruginous hawk. The Panel also is satisfied that, subject to certain requirements, the effects on the Baird's sparrow, burrowing owls and other species of concern can be reduced. The Panel recognizes that the project will result in significant adverse environmental effects due to the loss of some grasslands that cannot be replaced. An advisory role is recommended for Environment Canada to support the mitigation and habitat compensation planning.

Aboriginal People

The Panel believes the primary effect of the project on the interests and concerns of aboriginal people, particularly the Peigan Nation and the Blood Tribe, relates to the loss of the sense of place. The Panel understands the following also to be major concerns of aboriginal people:

• In and around the proposed Little Bow River reservoir are aboriginal sites and artifacts that are, or may be, affected by the proposed project.
• The proposed Highwood Diversion works would affect flows in the Highwood River, Bow River and Oldman River, and could affect the interests of the Blackfoot First Nations and other Treaty Seven Nations.
• As a result of inappropriate consultation, aboriginal interests and concerns have not been adequately reflected in the assessment of the effects and impacts of the proposed project on this culture.

The Panel has placed specific conditions on the project to ensure that the sense and experience of loss of place is recognized through the mitigation process. Consultation will be undertaken to ensure that the spiritual and cultural significance of these places to the aboriginal people is recognized. The Panel recognizes that the ability of aboriginal people to obtain the beneficial use of those places will be lost if the project proceeds. Further discussions about the meaning and interpretation of these places will be held.

Panel Decision

The Panel has concluded that the proposed three-component project could result in positive effects on surface water supply and quality; near neutral residual effects on fish and fisheries, soils, land and groundwater; and significant adverse effects on vegetation, wildlife, and aboriginal historical resources. The Panel concludes that the positive social effects of the project, combined with the economic benefits, more than outweigh the negative residual environmental effects, when mitigative measures and habitat compensation plans are taken into consideration. On balance, weighing the predicted adverse effects and the positive benefits, the Panel concludes that the three-component project is in the public interest and that the adverse effects are an acceptable cost to gain the benefits.

The Panel recommends that the Little Bow River Reservoir, Highwood River Diversion Works, and the Clear Lake Projects receive regulatory approval from the Government of Canada (Appendix B).

APPENDIX A
Conditions from the NRCB Draft Form of Approval

1. The project of Her Majesty the Queen in Right of Alberta, hereinafter called "the Operator", for construction (as represented by Alberta Public Works, Supply and Services) and operation (as represented by Alberta Environmental Protection) of certain water management facilities on the Highwood River, on the Little Bow River, and on Mosquito Creek leading to Clear Lake, as described in Application No. 9601, from APWSS to the Board dated May 7, 1996 and descriptive material supporting the Application marked as exhibits at the joint hearing of the Natural Resources Conservation Board and the federal panel established under the Canadian Environmental Assessment Act held from November 12, 1997 to January 9, 1998 including undertakings of the Applicant, is approved, subject to the terms and conditions herein contained.
2. The construction and operation of the Little Bow River Reservoir capable of storing 50,000 ac-ft of water is approved, including all associated facilities as described in the Application.
3. The construction and operation of the diversion works on Mosquito Creek and the associated conveyance canal leading to Clear Lake is approved, including all associated facilities as described in the Application.
4. The construction of the works at High River for the diversion of water up to 300 cfs capacity from the Highwood River and the enlargement of the existing canal to the Little Bow River to a capacity of 300 cfs as described in the Application are approved. The consideration of the operating plan for these works pertaining to the operation during the low flow season of late July and August is deferred pending receipt and review of additional information as prescribed in NRCB Board Order 9601-1. The plans for the operation of these facilities during high flows are approved.
5. The consideration of the construction and operation of the expansion of the Squaw Coulee Reservoir and associated diversion works and return works is deferred pending receipt and review of additional information as prescribed in NRCB Board Order 9601-1.
6. The Operator shall, in a manner satisfactory to AEP, monitor and report on mercury levels in fish from the Little Bow River Reservoir and below the reservoir in the Little Bow River.
7. The Operator shall design the reservoir outlet works and shall carry out its operations in a manner, satisfactory to AEP, that minimizes the potential adverse effects of reservoir discharges on dissolved oxygen and ammonia levels in the Little Bow River.
8. The Operator shall incorporate fish screens in the design and construction of the diversion works on the Highwood River, and use the fish screens to minimize adverse effects on the fish during the operation of the diversion works.
9. The Operator shall, to the satisfaction of AEP, prepare and implement a fisheries mitigation and enhancement plan as an integral part of the project. The plan should address, among other relevant factors:
   • the feasibility and desirability of managing fisheries upstream of the Little Bow River Reservoir in the Little Bow River for cool-water species, taking into consideration the role of the diversion works on the Highwood River, diversion canal, and implications of flow fluctuations for cool-water species;
   • the feasibility and desirability of the establishment of a sustainable cool-water fishery in the reservoir, particularly pike and walleye, taking into consideration creating spawning habitat; the minimum water level and quality that would be required to ensure a sustainable fishery; the effect of mercury contamination; and the effect on reservoir water quality and fisheries of non-point sources of pollution;
   • the feasibility and desirability of managing fisheries downstream of the Little Bow River Reservoir, for cool-water species, taking into consideration the flows from the Little Bow River Reservoir works, the design of the outlet channel from the reservoir, the need for pike spawning habitat below the Little Bow River Reservoir, and the water quality discharged to the Little Bow River below the Little Bow River Reservoir;
   • plans to monitor salmonid entrainment in the Highwood diversion works, including an assessment of the feasibility of curtailing diversions during the peak of whitefish fry downstream migration;
   • the feasibility of maintaining a self-sustaining pike fishery in Clear Lake;
   • the fisheries habitat compensation requirement of the Department of Fisheries and Oceans; and
   • the ongoing monitoring of the effectiveness of mitigation and enhancement.
10. The Operator shall conduct such further modelling and water quality monitoring as is needed to confirm in a manner satisfactory to AEP that water released from the reservoir is of sufficient quality to meet water quality and fisheries management objectives established for the reach of the Little Bow River above Travers Reservoir.
11. The Operator shall, to the satisfaction of AEP, design and implement a program to establish pike and walleye spawning habitat in or above the Little Bow River Reservoir.
12. The Operator shall report on progress toward a Habitat Compensation Plan one year from the release of the decision report.
13. The Operator shall, to the satisfaction of AEP, prepare a field-oriented operations plan with a goal of ensuring all personnel involved in the construction and operations of the project would be informed of their responsibilities in implementing environmental mitigation measures.
14. The Operator shall, to the satisfaction of AEP:
    • mitigate the effects on lands adjacent to the River of the increased flow through the upper Little Bow River to accommodate flows up to 300 cfs; and
    • monitor water levels in groundwater wells and mitigate any project-related groundwater problems experienced by domestic users.
15. The Operator shall compile and present to all stakeholders, further comparative information on transportation alternatives, including a potential bridge and causeway crossing the Little Bow River Reservoir.
16. The Operator shall implement mitigation measures to address construction impacts, including dust control measures and identifying construction traffic routes that do not conflict with school bus routes or playground areas in local towns.
17. The Operator shall, to the satisfaction of AEP, manage the north end of Clear Lake for water fowl and shorebird habitat. Intensive recreational activities in this area shall be limited during times when these species are most prone to disturbance.
18. The Operator shall, to the satisfaction of AEP, manage the wetlands in the area of the Clear Lake canal for shorebird habitat.
19. The Operator shall, to the satisfaction of the Department of Fisheries and Oceans, establish a safe and convenient portage around the Highwood diversion works and the Little Bow River Reservoir dam head-works.
20. The Operator shall ensure the legal right to domestic water use from the reservoir is included in the land purchase agreements to be negotiated with landowners around the Little Bow River Reservoir.
21. The Operator shall, to the satisfaction of AEP, develop a plan to reduce livestock disturbances to riparian habitats and water quality along project-related water bodies.
22. The Operator shall mitigate or compensate landowners for any damages to structures, fences or stream crossings that are in compliance with existing laws and regulations. The Operator is required to address landowner concerns within five years after implementation of the revised diversion plan.
23. The Operator shall, as part of its final planning and design phase, prepare an Area Structure Plan for the lands in the immediate vicinity of the Little Bow River Reservoir. The Operator shall complete this plan and request amendments to the local land use by-laws from the M.D. of Willow Creek and the County of Vulcan prior to commencement of reservoir operations. Matters to be considered should include the following:
    • the basic road system adjacent to the reservoir and standards to safely and efficiently service the existing and future land uses adjacent to the reservoir;
    • the use of fragmented parcels that would result from the project;
    • the need for day use areas, boat launching areas, view points, the aboriginal culture interpretive area, and other similar features which may arise in the preparation of the area structure plan;
    • preservation and exhibition of areas of historical and archaeological interest, including the twin hearth teepee ring, in cooperation with Alberta Community Development, Treaty 7 aboriginal people, and other interested parties;
    • habitat compensation lands adjacent to the reservoir and the need for environmental reserve lands that might be set aside;
    • recreation and country residential development;
    • mitigation of the conflicts that may arise between the new land-uses and the existing agricultural community including air and water pollution or other conflicts for the lands in the vicinity of the reservoir that are to remain under agricultural land uses; and,
    • any extra or special administrative infrastructure that may be required and other normal items that need to be considered in an area structure plan of this nature.
24. The Operator and its contractors shall abide by all safety codes, regulations, engineering design standards, and established best management practices relevant to the construction, operation, and maintenance of the project.
25. The Operator shall:
    • follow up on the processing of the request to change the names of the Old Woman's Buffalo Jump and Squaw Coulee and inform the NRCB about any decisions made.
    • to the satisfaction of Alberta Community Development, conduct further archaeological work in the vicinity of the Clear Lake canal.
    • to the satisfaction of Alberta Community Development, conduct further archaeological work in and around the confluence of the Little Bow River and Mosquito Creek.
    • undertake a focussed ethnobotanical study within and around the proposed Little Bow River Reservoir to identify plants used by First Nations people and clarifying their use where it is possible.
    • develop an aboriginal interpretive area and program as part of the project. Aboriginal people should be given an opportunity to lead the development of this program.
    • move the two-hearth teepee ring to the location of the interpretive area to assist in the explanation of the importance of the area to aboriginal people.
26. The Operator shall, within one year from the release of the decision report, file a Mitigation Progress Report with the NRCB and CEAA that will include an update of the progress of various initiatives, including:
    • Negotiations with the Little Bow Hutterian Brethren (required)
    • Frank Lake Water Quality Mitigation Plan (recommended).
    • Process plan for completing the Highwood River Basin Water Management Plan (required).
    • Little Bow River Reservoir Water Quality Protection Plan (recommended).
    • Clear Lake Irrigation Development Plan (recommended).
    • Clear Lake Wildlife Management Plan (recommended).
    • Habitat Compensation Plan (required).
    • Fisheries Mitigation and Enhancement Plan (required).
    • Field-Oriented Operations Plan (required).
    • Information on Transportation Alternatives (required).
    • Regional Transportation Plan (recommended).
    • Plan to address livestock effects on riparian habitat and water quality (required).
    • Area Structure Plan for lands surrounding Little Bow River Reservoir (required).
    • Report on the actions taken with regard to the name change for Old Woman's Buffalo Jump and Squaw Coulee (required).
    • Actions and initiatives relating to the conditions and recommendations concerning the aboriginal interests (required).

The Mitigation Progress Report shall also provide an update of the construction and implementation of the facilities and mitigation initiatives that are referred to in the Approval. APWSS shall prepare and file this report annually with the NRCB until such time as APWSS have fulfilled the conditions of the Approval and have passed authority to AEP for the operation of the project-related facilities. AEP shall prepare and file the report annually with the NRCB for a period of five years from the date AEP assumes authority for the operations of the project-related facilities. The Panel directs that APWSS and AEP shall provide the report directly to the Public Advisory Committee, or its successor, to ensure the exchange of information.

APPENDIX B
Summary of Recommendations of the Canadian Environmental Assessment Panel

WHEREAS the federal Minister of the Environment established the Canadian Environmental Assessment/Natural Resources Conservation Board Joint Review Panel to consider the proposal of Alberta Public Works, Supply and Services to construct and operate the Little Bow Project/Highwood Diversion Plan, a water management project to convey and store water diverted from the Highwood River consisting of four interrelated components; and

WHEREAS the Panel had regard for the terms of reference provided the panel by the federal Minister of the Environment in the completion of its public review of the project.

NOW THEREFORE in response to the federal terms of reference, the Joint Review Panel makes the following recommendations to the federal government:

1. The Panel recommends the three-component project consisting of the enlargement of the diversion works and canal at High River, the Little Bow Reservoir, and the Clear Lake Project receive regulatory approval from the Government of Canada.
2. The Panel recommends that Department of Fisheries and Oceans require, where appropriate, a convenient means of portage passage around the works and outlet structure and require that the works be designed and operated in a manner so as to minimize the risk of navigation hazards to small craft users in the area.
3. The Panel recommends that the Department of Fisheries and Oceans take an active role in the development and evaluation of the fisheries mitigation and enhancement plan to be prepared by the Applicant, and especially with respect to the approval of the fisheries habitat compensation component of the plan and the design of fish screening devices.
4. The Panel recommends that Environment Canada work closely with the Applicant and appropriate groups, to provide its expertise and experience regarding the establishment of a permanent and managed wetlands in the Clear Lake area.
5. The Panel recommends that Environment Canada support the wildlife and vegetation habitat mitigation planning of the Applicant in an advisory capacity, providing expertise and advice that will improve the effectiveness of the mitigation measures required by the Panel.
6. The Panel recommends that the Department of Indian and Northern Affairs Canada support the Treaty 7 Coalition in developing an appropriate interpretative program to identify and acknowledge the loss of another important place to their culture.