Paci ic Coast Terminals Co. Ltd. Environmental Review...

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Paciic Coast Terminals Co. Ltd. Environmental Review Document Canola Oil System Installation and Operation Submitted by : Kent Smith, P.Eng. Pacic Coast Terminals Co. Ltd. 2300 Columbia Port Moody, BC V3H 5J9 Prepared by: Andrew MacKay, M.E.S., EP Envirochem Services Inc. 310 East Esplanade North Vancouver, BC V7L 1A4 July 18, 2013 Prepared for: Port Metro Vancouver 1900 Granville Square 200 Granville Street Vancouver, BC V6C 2P9

Transcript of Paci ic Coast Terminals Co. Ltd. Environmental Review...

Paci�ic Coast Terminals Co. Ltd. Environmental Review Document Canola Oil System Installation and Operation

Submitted by: Kent Smith, P.Eng. Pacific Coast Terminals Co. Ltd. 2300 Columbia Port Moody, BC V3H 5J9 Prepared by: Andrew MacKay, M.E.S., EP Envirochem Services Inc. 310 East Esplanade North Vancouver, BC V7L 1A4

July 18, 2013

Prepared for:

Port Metro Vancouver1900 Granville Square200 Granville StreetVancouver, BCV6C 2P9

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TABLE OF CONTENTS

1.0 INTRODUCTION ........................................................................................................................ 1

2.0 EXISTING OPERATIONS AND INFRASTRUCTURE LOCATION AND HISTORY ....... 2

2.1 CURRENT SITE OPERATIONS: SULPHUR AND MEG ....................................................................... 2

2.1.1 Sulphur Operations Profile ........................................................................................ 3

2.1.2 MEG Operations Profile ............................................................................................ 3

2.2 CURRENT SYSTEM CONTROLS ................................................................................................... 4

2.2.1 Automatic Controls ................................................................................................... 4

2.2.2 Site Water Management .......................................................................................... 4

2.2.3 Spill Containment: MEG Rail Car Unloading Area .................................................... 6

2.2.4 Spill Containment: Tank Farm ................................................................................... 6

2.2.5 Spill Containment: Ship Loading Area ....................................................................... 6

2.2.6 Procedures and Training ........................................................................................... 6

2.3 ENVIRONMENTAL SETTING ...................................................................................................... 7

2.3.1 Schoolhouse Creek .................................................................................................... 7

2.3.2 Foreshore .................................................................................................................. 7

2.3.3 Vegetation and Wildlife ............................................................................................ 7

2.4 MUNICIPAL PLANNING COMPATIBILITY ...................................................................................... 8

3.0 PROPOSED PROJECT.............................................................................................................. 10

3.1 PROJECT RATIONALE ............................................................................................................ 10

3.2 PLANNED IMPROVEMENTS AND MITIGATION MEASURES ............................................................. 10

3.2.1 Railcar Unloading Area ........................................................................................... 12

3.2.2 Railcar Area Mitigation Measures .......................................................................... 12

3.2.3 Storage Tanks .......................................................................................................... 13

3.2.3.1 New Storage Tanks .......................................................................................... 13

3.2.3.2 New Storage Tank Mitigation Measures ......................................................... 14

3.3 PIPELINES ........................................................................................................................... 14

3.3.1 Pipeline Mitigation Measures ................................................................................. 15

3.4 MARINE LOADING AREA ....................................................................................................... 15

3.4.1 Marine Loading Area Mitigation Measures ............................................................ 18

3.5 POWER SUPPLY AND ELECTRICAL INSTALLATIONS ....................................................................... 18

3.6 CANOLA OIL PROPERTIES ...................................................................................................... 18

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4.0 CONSTRUCTION ENVIRONMENTAL MANAGEMENT ................................................... 19

4.1 WASTE MANAGEMENT ......................................................................................................... 20

4.1.1 Demolition Waste ................................................................................................... 20

4.1.2 Construction Waste ................................................................................................. 21

4.2 EXCAVATED SOILS ................................................................................................................ 21

4.3 SURFACE DRAINAGE ............................................................................................................. 22

4.4 NOISE ............................................................................................................................... 22

4.5 DUST ................................................................................................................................ 22

4.6 TRAFFIC ............................................................................................................................. 22

4.7 SPILLS ............................................................................................................................... 23

5.0 OPERATIONS ENVIRONMENTAL MANAGEMENT ......................................................... 24

5.1 AIR EMISSIONS.................................................................................................................... 24

5.2 HISTORICAL AIR EMISSIONS SUMMARY .................................................................................... 25

5.2.1 Air Emission Projections for Canola System ............................................................ 25

5.3 NOISE ............................................................................................................................... 28

5.4 RAIL CAR DELIVERY FREQUENCY ............................................................................................. 28

5.5 MARINE VESSEL VISITS ......................................................................................................... 29

5.6 VISUAL IMPACT ................................................................................................................... 29

5.7 SURFACE WATER TREATMENT ................................................................................................ 34

5.8 SYSTEM MAINTENANCE AND WASTE MANAGEMENT .................................................................. 34

5.9 MARINE SPILLS ................................................................................................................... 34

6.0 PUBLIC CONSULTATION ....................................................................................................... 36

7.0 CONCLUSION ............................................................................................................................ 36

LIST OF TABLES

TABLE 1: STORAGE TANK INVENTORY ............................................................................................... 13

TABLE 2: KEY PRODUCT CHARACTERISTICS ......................................................................................... 19

TABLE 3: CANOLA SYSTEM CONSTRUCTION ........................................................................................ 20

TABLE 4: DEMOLITION AREAS AND MATERIALS .................................................................................. 21

TABLE 5: OPERATIONS FORECASTS ................................................................................................... 24

TABLE 6: PCT EMISSIONS INVENTORY 1985 TO BASELINE (2005) RAIL AND MARINE INCLUDED ............... 25

TABLE 7: PCT ANNUAL AIR EMISSIONS (TONNES) ALL COMMODITIES ..................................................... 26

TABLE 8: FORECASTED EMISSIONS FROM CANOLA OPERATIONS IN 2013-2014 ....................................... 27

TABLE 9: PROJECTED RAILCAR DELIVERIES, 2012-2014 ...................................................................... 28

TABLE 10: HISTORICAL RAILCAR DELIVERIES, ALL COMMODITIES, 2000 TO 2011 ...................................... 29

TABLE 11: HISTORICAL AND PROJECTED VESSEL TRAFFIC ........................................................................ 29

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LIST OF FIGURES

FIGURE 1: PCT INSET AND AERIAL MAPS .............................................................................................. 2

FIGURE 2: CURRENT PCT OPERATIONS SITE MAP................................................................................... 5

FIGURE 3: PORT MOODY OFFICIAL COMMUNITY PLAN ............................................................................ 9

FIGURE 4: SITE MAP WITH CANOLA SYSTEM ........................................................................................ 11

FIGURE 5: PROPOSED DOCK MODIFICATIONS ...................................................................................... 17

FIGURE 6: GRAPH OF PCT AIR EMISSIONS 2001 TO 2014 .................................................................... 27

FIGURE 7: RENDERING OF CANOLA TANKS FROM NORTHWEST AT PCT ..................................................... 30

FIGURE 8: RENDERING OF CANOLA TANKS FROM SOUTH AT ROCKY POINT (BOATHOUSE RESTUARANT) .......... 31

FIGURE 9: RENDERING OF CANOLA TANKS FROM EAST AT OLD ORCHARD PARK ......................................... 32

FIGURE 10: RENDERING OF CANOLA TANKS FROM RESIDENTIAL AREA ABOVE BARNETT HIGHWAY .............. 33

FIGURE 11: CONCEPTUAL PLAN FOR MARINE BOOM CONTAINMENT ...................................................... 35

LIST OF APPENDICES

I Pacific Coast Terminals Canola Handling Facility Design Basis), David Pfeil and Derek Smith, Sacre-Davey Engineering, July 10, 2013.

II Bunge Canada, Material Safety Data Sheet, Crude Super De-gummed Canola Oil.

III Proposed Harbour Boom Construction Specifications, Crockett Contracting, January, 2012.

REFERENCE DOCUMENTS

Proposed MEG Tank Expansion, Environmental Appraisal Document, December, 1998, Simons.

Port Moody Official Community Plan, January 25, 2011, Section 9.

Air Emission Inventories for Pacific Coast Terminals 2001-2010, Bryan McEwan and Dan Hrybenyk, Senes Consultants, December, 2006.

Air Emission Inventory for Pacific Coast Terminals, Past, Present and Future, Bryan McEwan and Dan Hrybenyk, Senes Consultants, January, 2007.

Port Metro Vancouver Vegetable Oil Marine Terminal Operational Practices Study, Best Practices Manual, Draft, May 2012

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1.0 INTRODUCTION

Established in Port Moody in 1960, Pacific Coast Terminals Co. ltd. (PCT) is a bulk commodity marine shipping terminal located at the east end of Burrard Inlet; an area commonly referred to as Port Moody Arm (see Figure 1). Located on Port Metro Vancouver leased land, PCT has handled a variety of bulk cargoes including: beet pellets, coal, wood chips, gypsum, styrene, phosphate rock, potash, zinc concentrates, sand, urea & other bulk fertilizers. Currently PCT primarily handles sulphur and monoethylene glycol (MEG) and occasionally small amounts of coal. These products originating in Alberta, British Columbia and Washington State are transferred by rail and truck to PCT for export.

Monoethylene glycol throughput at PCT has decreased approximately 40% since 2007 and because of this, PCT management have aggressively pursued other business opportunities to recover and enhance terminal throughput. Building on a successful and safe track record as a bulk liquid marine terminal, PCT has reached agreement with a new customer to install and operate new canola handling facilities at the terminal. The proposed canola handling system will involve modifications to existing infrastructure as well as adding new equipment predominantly located in the site uplands. Key system and product attributes include:

Storing and handling Canola (vegetable) oil which is a non-toxic, non-flammable and non-reactive food grade commodity.

Modification of the existing MEG rail car unloading facility to accommodate canola railcars.

Installation of three (3) new tanks (15,000 MT each) for a planned total storage capacity of 45,000 MT (new tanks amount to a 26% increase in the terminal’s liquid storage capacity).

New carbon steel above ground pipe installations including interstitially monitored double-walled piping at two sensitive locations: Schoolhouse Creek and dock loading area.

Installation of 15 steel piles, concrete foundation (slab poured in situ), two dolphins (one mooring, one berthing) and a new oil marine loading arm at Berth 1.

Commodity transfer during existing work hours and within the existing rail network.

100% electrical (clean) BC Hydro powerbase for all material handling and transfer.

Maintaining operations air emissions below historical levels.

As part of the Port Metro Vancouver (PMV) project approval process, PCT has submitted this document to provide an environmental assessment of the proposed works. Mitigation measures, including numerous fail-safe engineered system controls and updated procedures (operating and emergency), will effectively minimize environmental risk and impact to acceptable (low) levels.

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2.0 EXISTING OPERATIONS AND INFRASTRUCTURE LOCATION AND HISTORY

The PCT site is located in Port Moody Arm at the east end of Burrard Inlet on industrial-zoned property leased from Port Metro Vancouver. The 108 acre site is bordered by railcar marshalling yards, industrial and commercial buildings (south and southwest) and Barnet Highway (west). Key industrial operations nearby include Reichhold Chemicals (resins manufacturer) to the south and Mill & Timber Sawmill (formerly Flavelle) directly east across the intertidal bay (Figure 1).

FIGURE 1: PCT INSET AND AERIAL MAPS

Construction of the PCT site began in the late 1950’s with the creation of uplands areas using fill materials generated from harbour dredging operations. The first ship was loaded at PCT in 1960 and the terminal continued to grow with subsequent expansions to handle coal, chemical fertilizers, wood chips, gypsum and sulphur. In the mid 1980’s PCT re-invented itself as a specialized handling facility focused primarily to ship liquid monoethylene glycol (MEG) and bulk elemental sulphur.

2.1 CURRENT SITE OPERATIONS: SULPHUR AND MEG

The proposed canola handling system will be installed on the PCT site and complements current commodities of elemental sulphur and MEG. The system will utilize existing infrastructure that was created for previous MEG & Styrene customers. Styrene operations ceased in 2000 and one of PCT’s MEG customers stopped international export of their cargo in 2010. See Figure 2 for current operations site map.

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2.1.1 Sulphur Operations Profile

Current sulphur operations involve the following activities:

Rail delivery to site by Canadian Pacific Railway (unit trains up to 115 cars).

Open-topped gondola cars are unloaded at the rotary dumper located at the east side of the terminal adjacent to CP Rail’s mainline rail right-of-way.

Conveyance of sulphur can be loaded direct to ship or to an outdoor storage area with a storage capacity of up to 220,000 MT.

An automated stacker/reclaimer (StakRake) traverses the piles and sulphur is either stockpiled or reclaimed to the Quadrant Shiploader via contained conveyor system to PCT’s Berth #2. This berth is dedicated to loading bulk cargos and is specially designed to handle sulphur. Berth #1 is dedicated to liquids loading; however it can be used as a lay-by berth for larger vessels.

Both berths can accommodate Panamax-sized vessels up to 70,000 dead-weight tonnes (DWT).

Since handling a peak sulphur throughput of 4.4 million MT in 2004, sulphur handling volumes have gradually declined by over 50% to 1.7 million MT in 2012.

2.1.2 MEG Operations Profile

Handling and transfer of MEG at PCT is done through a closed loop system as follows:

Rail transfer to site by Canadian Pacific Railway to a contained unloading station that can receive up to 40 tank cars, each with an 85-95 MT capacity.

Glycol is currently bottom unloaded from the railcars through two gravity assisted pumps and then pumped to six (6) storage tanks T1, T2, T21 & T22,T31&T32 through above ground stainless steel pipelines.

From storage tanks glycol is pumped to a vessel at Berth 1 at a rate of up to 1,000MT/hr by two primary marine loading pumps and two midpoint booster pumps. The pipeline crossing Schoolhouse Creek is double-walled with interstitial monitoring to detect potential loss of containment (leaks / spills).

Glycol is loaded onto a vessel at Berth 1 via a manually deployed and counter balanced marine loading arm (MLA).

A surge tank located at Berth 1 provides surge protection for the piping system should any sudden pressure fluctuations be experienced at the end of the discharge line. A glycol recovery vessel at Berth 1 allows for the capture of residual glycol in the MLA when the arm is drained after shiploading activities are complete. Glycol is purged out of the MLA with pressurized nitrogen and into the recovery vessel.

Nitrogen is stored in two (2) 23,000 L tanks, one for MEG storage tanks and one at the ship loading area. At the MEG tanks, nitrogen is used to maintain an oxygen-free atmosphere which maintains product purity. At the ship loading area, nitrogen is used

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to clear the loading arm, purge and blanket the vessel storage tanks prior to vessel departure. Note: no additional nitrogen capacity will be added for use in the canola railcar unloading, tank storage and marine unloading areas.

2.2 CURRENT SYSTEM CONTROLS

The proposed canola system will utilize many controls and infrastructure already in place at PCT to protect the environment. Accordingly, the construction and operational phases of the proposed canola system will with modifications use these assets.

2.2.1 Automatic Controls

Design Engineers state that the proposed canola system will mirror the existing MEG system for efficiency and operator familiarity. The current MEG system is controlled using state-of-the-art industrial control processors includes numerous pre-programmed “fail-safe” features:

Storage tanks with automated valves on inlets and outlets that close on power failures and emergency shutdown; high level alarms and automatic pump shutdown to prevent overfilling.

Interlocks between rail car unloading pump and high tank levels to prevent overfilling.

Variable speed pumps to automatically adjust system pressure to prevent overpressuring

Emergency shutdown stations at all operator stations: railcar unloading, marine loading and at the control building.

Portable and mobile control system tablet interfaces allowing supervisors to continuously monitor systems while roaming the site.

A portable emergency shutdown given to vessels to stop shore-side pumps and close valves during an emergency.

2.2.2 Site Water Management

Concrete and asphalt curbs have been installed to prevent surface drainage from entering any waterway including Schoolhouse Creek and the foreshore. All surface runoff and handling operations waste water is collected in a system of 15 sumps located throughout the site and pumped to a primary settling pond where suspended solids are removed using screens and gravity separation. Additional suspended solids are removed in the secondary settling pond. Using the site control system, Caustic Soda is added to the wastewater to neutralize pH before water is either recycled on site or discharged to the Metro Vancouver sanitary sewer system. Discharges to the sanitary sewer are monitored and managed to meet GVS&DD (Metro Vancouver) permit limits (#SC-1151). In addition to operations, surface water collection and treatment system will be an important control requirement during construction (e.g., process residual soil during excavation) and operations.

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FIGURE 2: CURRENT PCT OPERATIONS SITE MAP

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2.2.3 Spill Containment: MEG Rail Car Unloading Area

Drip pans are installed at each of the unloading stations to catch minor drips and spills. Minor spills flow by gravity from the pans through a buried pipe to a 4,500 L concrete vaulted underground storage tank equipped with a high level alarm. Once the tank is half-full, contents are directed to an off-spec MEG rail tank car using a dedicated portable pump. The off-spec glycol is returned to Alberta for reprocessing. There are two dedicated stations for loading off-spec product to rail tank cars.

The entire railcar area is surrounded by a concrete curb and underlain by a 300 mm layer of glacial till and a clay liner that is protected by a 300 mm layer of gravel. The sealed unloading area contains a runoff / spill sump and pump, which is on a manual start and automatic low level shutdown. In the event of a tank car spill, MEG would be contained within the sealed area and pumped from the sump into the contained tank farm basin. The spilled MEG would then be pumped from the sump in the tank farm into an off-spec rail tank car which is again sent to Alberta for reprocessing. No major spills have occurred to date in the rail unloading area.

2.2.4 Spill Containment: Tank Farm

Existing MEG tanks are surrounded by 2.47 m (8.2 ft) high reinforced concrete dykes and underlain by a clay liner. Each tank grouping forms a containment basin with a capacity of 110% of the volume of a single tank. A sump inside each basin collects run-off and any potential spillage from the rail unloading area (as previously stated in section 2.3.5). Glycol collected in the sump would be tested if concentration exceeds 90 mg / L, the glycol would be pumped to an off-spec rail car. If below 90 mg / L, the glycol is sent to the secondary settling pond.

2.2.5 Spill Containment: Ship Loading Area

Similar to the rail unloading area, drip pans are used to collect spills during ship loading operations. The collected spill is pumped to a 3,800 L holding tank located beneath the wharf at Berth #1. A high level alarm on the tank triggers an operator to initiate pumping to an off-spec rail car or tank truck for shipment to Alberta for reprocessing.

2.2.6 Procedures and Training

PCT maintains an active environmental management system (EMS) and regularly updated emergency response (Contingency) plan. The EMS provides guidance to both management and contractors for continual environmental performance improvement. The site contingency plan describes the organization and procedures to follow in numerous scenarios including fire and product loss. PCT has retained Quantum Murray to act as first responders to an environmental emergency. For potential marine incidents, other externally contracted services such as Burrard Clean are available on an “as needed” basis.

PCT has a comprehensive employee-training programme including WHMIS, fire and safety, EMS, Transportation of Dangerous Goods and emergency response.

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2.3 ENVIRONMENTAL SETTING

Today’s 108-acre industrial-zoned property at PCT was created in the late 1950’s by numerous sequences of mud flat reclamation involving extensive backfill material from various harbour dredging operations of the day. The vast majority of the site (over 95%) has been resurfaced with asphalt and concrete as well as assorted engineered materials (glacial till and gravel) placed beneath the bulk liquid storage tanks. Existing environmental features and their condition are described below.

2.3.1 Schoolhouse Creek

The lower reach of Schoolhouse Creek emerges to daylight on the central-east portion of the site bisecting existing glycol storage tank farms. The creek is a slow moving, low gradient groundwater, which is supplemented by an extensive storm system discharges from the municipality, upstream of PCT. The creek mouth forms a wetland of approximately 19 hectares, which has been classified as 80% tidal water and 20% estuarine low marsh (Anon, 1997). The reach downstream of the Barnet Highway was relocated in 1978. Studies have indicated that water flow and quality are good enough to support minimum requirements for salmonoids. However, increases in slopes of the creek and many obstructions minimize the potential for salmonoids to use spawning areas upstream of PCT. Numerous activities have been undertaken to improve fish passage, including culvert installations in the lower reaches to assist salmonoids at various life cycle stages.

2.3.2 Foreshore

Port Moody Arm fronts the north side of PCT. The area south of Schoolhouse Creek is dominated by mudflat consisting of fine grained silt (mud) with high water content (Fluor Daniel, 1992). Recent ponar (surficial) seabed sampling conducted by Envirochem (January 2012) in the vicinity from Reed Point to the Port Moody Basin indicated 71% silt, 21% clay and 7% sand. Most of the mudflat is covered with dense microalgae / diatom growth. Several low depth (<15 cm) tidal channels meander the mudflat. Habitat compensation efforts by PCT continue in the area today.

2.3.3 Vegetation and Wildlife

Vegetation at PCT is found in three distinct zones. Mixed ornamental deciduous and coniferous trees are located on the south property perimeter. Additional aesthetic planting was done in the soil berm that runs the length of the tank farm on the east side of Schoolhouse Creek. Over time a dense stand of deciduous trees and shrubs has developed on the berm in conjunction with the ornamental species. The third area is a riparian zone opposite the tank farms in the lower Schoolhouse Creek reach. This area has been attributed the highest wildlife value on site (Hatfield 1998). The trees provide nesting and roosting opportunities for songbird species; fruit bearing shrubs provide food for small birds and mammals and the occasional muledeer; and creekside vegetation can also provide perching riverine birds such as the Belted Kingfisher to raptors such as bald eagles, hawks and owls.

Note that none of the vegetation zones will be affected by the proposed canola system during construction or operations.

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2.4 MUNICIPAL PLANNING COMPATIBILITY

With respect to the current (2011) Port Moody Official Community Plan, PCT is located on land designated as “general industrial” (see Figure 3). The OCP which defines the general industrial designation as “development of heavy industrial uses such as manufacturing and port related uses” remains compatible with the PCT operation. Furthermore, the OCP industrial policy states that, “the future employment needs of Port Moody will be met by a number of strategies such as …supporting existing industrial businesses”.

Since operations began in 1960, PCT has undertaken many initiatives to support the local community. Actions range from investments exceeding $90 million in terminal upgrades with a focus on environmental protection to numerous community outreach programs including local organizations and the Port Moody Ecological Society. Consequently, the community vision and goals identified during OCP public consultation appears compatible with PCT’s continued presence. Those goals include:

“Encouraging developments that respect the community and are functional, universally accessible, architecturally sympathetic and environmentally sound”; and,

“Encouraging and maintaining a strong and diversified economy and tax base”.

For over 50 years, PCT has provided economic stability in Port Moody. This currently involves generating over $20 million a year in taxes, salaries and purchasing in the local (and regional) community. The planned $35,000,000 canola system project alone is expected to generate numerous economic benefits including the creation of over 300 man (person) years of work, local and regional materials purchasing and an additional tax revenue stream (long-term). At the same time the company has been mindful to minimize potential nuisance associated with industrial sites. Steps taken ranges from noise barrier installations; community notification in advance of planned maintenance activities that may generate non-continuous noises; working within Port Moody noise by-law limits; and contractor workforce staging to minimize local traffic.

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FIGURE 3: PORT MOODY OFFICIAL COMMUNITY PLAN

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3.0 PROPOSED PROJECT

3.1 PROJECT RATIONALE

Proposed Canola throughout at PCT is reliable as existing and aged infrastructure at Neptune are unable to meet the growing demand for liquids shipping services. As Neptune grows its business to handle additional coal and potash, berth availability has reduced to levels making continued liquids shipping there a challenge. Building new state of the art and expanded canola oil facilities at PCT will allow shippers to enjoy faster unloading of railcars and vessel loading. Expanded tank storage volume will allow shippers to load larger tankers providing increased efficiency. The general concept is to ship approximately 400,000MT of canola oil annually from PCT to markets in Asia. To achieve this objective, PCT proposes to modify and add to existing infrastructure (see Figure 4), including:

Modification of the existing railcar unloading area including new pumps.

Installing three new tanks with a common containment area. 45,000MT

Installing dedicated product pipelines between railcar unloading and tanks and from tanks to Berth 1 (including double walled interstitially monitored pipeline crossing at Schoolhouse Creek).

Installing a marine loading station at Berth 1.

For a complete list of all planned installations, please see the Canola Handling Facility Design Basis by David Pfeil and Derek Smith, Sacre Davey Engineering in Appendix I.

3.2 PLANNED IMPROVEMENTS AND MITIGATION MEASURES

The proposed canola system will closely mirror the existing (and modified) MEG operation and alignment (). However, to prevent cross contamination of MEG and canola oil, separate unloading, storage and vessel loading systems for canola oil will be required.

In general, the planned canola system will involve the following operational sequence:

Railcar reception and unloading at a planned transfer rate of 600 MT / hr. to storage tanks which will be achieved within a single eight (8) hour shift.

Canola storage in three (3) tanks with a combined new capacity of 45,000 MT.

Pipeline transfer from tank storage to Berth 1 which will accommodate vessels ranging from Parcel Tankers at 12,500 Deadweight Tonnes (DWT) to larger handy-sized chemical tankers at 45,000 DWT.

Transfer to vessels via one new marine loading arm at a planned rate of 1000 MT / hr.

The proposed areas have been cleared for industrial use. No vegetation will be removed or affected by the proposed canola system.

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FIGURE 4: SITE MAP WITH CANOLA SYSTEM

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3.2.1 Railcar Unloading Area

The railcar unloading area will be redesigned to enable simultaneous unloading of both glycol and canola tankers. Planned upgrades in this area include:

Modification of existing railcar platforms to accommodate various sized railcars.

Retrofitting existing railcar bottom unloading system for canola use.

Installation of new top unloading system for unloading glycol railcars.

New pumping stations for canola railcar unloading to storage.

New electric motors and pumps for glycol unloading.

Railcars used to transport canola oil are not fitted with suction tubes and as such are not suitable for top unloading. MEG railcars are fitted with suction tubes allowing top unloading. It is intended that the current bottom unloading system now used for MEG be converted to canola oil service. This will include the existing glycol suction manifold and suction hoses that will be converted to canola oil service. Two new gravity assisted canola oil unloading pumps (P5, P6) will be installed with associated discharge manifolds to pump the canola oil to the proposed canola oil storage tanks (T41, T42, T43). The existing unloading hoses lengths may have to be extended in particular locations to accommodate variations in canola railcar lengths.

To replace the bottom unloading system for MEG, a new top unloading system will be installed. New piping and unloading arms will be installed for forty MEG unloading stations. Two sets of stainless steel suction piping at 12” diameter will be installed overhead on existing access platforms. The existing two glycol unloading pumps (P1, P2) and 10” discharge headers will be re-configured for the top unloading application. MEG suction headers will not be drained between unloading cycles, keeping the unloading headers primed. The unloading arms will have a sensor which detects a lack of product, thereby closing an automated valve to prevent loss of prime. The top of each MEG and canola oil railcars will be accessed via modified access platforms and gangways. Access to the top of canola oil railcars is required to open atmospheric vents during unloading and access to the MEG cars will be to deploy and connect articulating top unloading arms.

Modifications will be required to the overhead platforms and gangways to accommodate the wide variation in railcar lengths. Larger canola oil railcars will result in 34-36 cars being offloaded compared to the 40 MEG cars. This is due to platform and track length limitations.

3.2.2 Railcar Area Mitigation Measures

Canola railcars will be unloaded within the existing sealed and contained unloading area. Additional mitigations measures, primarily for spill control are described below.

Due to the large variation in railcar length for canola oil, drips, slops and runoff water will be captured in continuous drip trays. Canola oil slops and water mixture from the drip trays will be captured and stored in a new collection sump equipped with an oil skimmer. Separated oil will be directed to slops tanks while water will be pumped to the site waste water treatment system with the water from the sumps in the secondary containment The water from tank

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containment area of canola storage tanks (T41, T42 & T43) will be pumped to an oil/water skimmer system where after it will be discharged into sump #4 by gravity for disposal into PCT’s water treatment system. The residual canola oil from the oil/water separator and skimmer will be extracted by means of a vacuum truck and disposed of by an authorized waste management service provider.

All pump locations, including the rail unloading area, will have a control station with control over each pump and emergency shutoff buttons.

Glycol slops/drips from the new top unloading arms will be captured and stored in portable chemical totes which can be placed and/or removed by forklifts or Hiab truck.

Pump areas will be contained with drips captured and directed to a central oil/water skimmer as described above.

All waste water regardless of orgin or primary treatment will be ultimately treated at PCT’s waste water treatment system prior to discharge to Metro Vancouver sanitary sewer system.

3.2.3 Storage Tanks

Planned new capacity of 45,000 MT for Canola storage will be achieved by building three new tanks (each 15,000 MT). As a result of the three new tanks, total bulk liquid storage on site, including both MEG and Canola, will increase 68% as detailed in Table 1 below.

TABLE 1: PRODUCT STORAGE TANK INVENTORY (MEG AND PROPOSED CANOLA)

Inventory Tank Contents Tank Numbers Combined Tank Capacity (MT)

Existing Tanks Wastewater Storage T5,6 29,254

Monoethylene Glycol (MEG) T1,2,21,22,31,32 58,200

Planned Tanks Canola T41, 42, 43 45,000

Total Tank Capacity 132,454

3.2.3.1 New Storage Tanks

The proposed canola tanks will be open to atmospheric pressure and built to API 650 specifications and all applicable Codes and Standards for environmental protection (including earthquake resistance) and worker health and safety. These include: the Canadian Council of Ministers of the Environment (CCME) Code of Practice for Above Ground Tank Systems (for secondary containment); Canadian Electrical Code and the National Building Code of Canada.

The tanks will be constructed of steel. Designs will allow for expansion and contraction during variable seasonal temperature as well as for settlement when the tank levels change from full to empty & vice versa. Dimensions will be approximately 36m diameter and 21.5m high. The new tanks (T-41, T-42 and T-43) will be located adjacent to and west of tanks existing tanks T-31 and T-32.

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3.2.3.2 New Storage Tank Mitigation Measures

Tank farm concrete containment will include impermeable liners to prevent potential product losses to soil and groundwater. Containment volume will be designed for 110% of one tank (110% of 15,000m3).

Surface water in the containment area sumps will be visually checked before being directed the existing main site collection sump #4. From here the surface water can either be directed to the existing PCT water treatment system for reuse on site or to the Metro Vancouver sanitary sewer.

Tank overfill protection will be achieved automatically through pre-set tank level indicators on the operator-monitored control system. Additionally, as previously mentioned, each pump in the system will have a control station with full control over the pump and emergency stop buttons. Furthermore, Tanks will be equipped with automated isolation valves (i.e. shutoff valves) at both inlet and outlet of each tank in order to ensure containment if connecting pipe ruptures, as well as overfill protection.

Downstream of each automated shutoff, the tank piping will be equipped with expansion joints. This is to reduce any unwanted stresses in the shell of the tank and reduce the risk of spillage.

An appropriate depth of fill soil in the area will be removed to make way for engineered fill to be placed under the tanks and containment walls. Ground densification using Rapid Impact Compaction (RIC) will be done in the areas under each tank to compact loose fill materials at depth. RIC compaction may result in limited vibrations felt in the vicinity, however duration of the activity will be restricted to daytime hours. If groundwater is collected in the work area, it will be directed to the terminal’s water treatment facility for treatment prior to discharge to the sanitary sewer system.

3.3 PIPELINES

New pipelines will begin at the converted rail unloading area, cross the existing pipeline bridge, turn north on the existing pipeline rack, cross over containment for tanks T31 and T32, under the maintenance road (open contained trench – see details below) and connect to the contained bulk canola storage tanks T41,42,43. There will be two new canola oil rail car unloading pumps (P8, P9) installed in the railcar unloading area.

Canola will be pumped from storage tanks to ocean-going vessels at Berth 1 via a 16” marine shipping line using two marine loading pumps (P10, P11) and two mid-point booster pumps (P7A, P8A). Loading will be at a design rate of 1,000MT/h. Suction lines from the tanks to the marine loading pump manifold have been designed at 16” diameter which will require that two tanks be discharged simultaneously to obtain a flow rate of 1000Mt/h. The marine discharge line will be above ground including the open pre-fabricated concrete trench crossing beneath the maintenance road for approximately 30m between the new tank containment area and tanks T-31 and T-32 containment. The pipeline will lie in a trench, with grated covers.

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In order to prevent canola from gumming-up inside pipelines during periods of low ambient temperature or extended periods between shipments, the process will include the recirculation of product in the marine loading line via a smaller (6” diameter) recirculation line where cargo will be directed back to any of the storage tanks.

All pipelines will be located above ground and made of carbon steel. Pipe material specifications will be mild steel for all pipes containing canola. The portion of the shipping line over water to the dock will be placed in the existing interstitially monitored enclosed tray from Berth 2 to Berth 1. A 6” line back to tank will be installed in the same tray to allow for recirculation of canola oil at low temperatures and to maintain product quality. Storage tanks have been designed such that canola oil can be pumped from one tank to the other by manipulating control valves on suction and discharge headers.

Main ship loading pumps P-07 and P-08 will be located adjacent to the new tank containment

wall and can run together or independently. Booster pumps P-07A and P-08A will be located

beside the existing nitrogen storage tank and evaporator adjacent to Berth #2. These pumps

will be powered and controlled by a combination of VFD’s and Soft Start starters.

3.3.1 Pipeline Mitigation Measures

Measures to prevent pipelines losses include:

Double walled piping with interstitial monitoring for leak detection on the section of pipe crossing Schoolhouse Creek.

All new pipeline will be located above ground which will enable visual monitoring and access in the event of a spill.

Placement of pipeline on the existing pipeline bridge across Schoolhouse Creek (no riparian disturbance during construction).

Automatic and manual (emergency shut-off) controls for system pumps. Additionally, variable frequency drive (VFD) starters will limit pressure spikes when starting for smoother operation.

Piping over marine foreshore areas (Berth #2 to Berth #1) will be enclosed within an interstitially monitored containment tray system.

Tank piping will include expansion joints to reduce the potential for spills.

Articulating and counter-balanced MLA providing pipe connection to vessels (no flexible hoses to manage).

3.4 MARINE LOADING AREA

From the marine loading manifold, canola oil will be loaded onto vessels via a new 10” articulated loading arm designed for a maximum marine loading rate of 1,000 MT / hr. The marine loading arm (MLA) will be installed adjacent and to the west of the glycol MLA to allow for larger tanker vessels to be loaded. The dock, fenders and mooring facilities can currently

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accommodate vessels of 180m in length and will require an additional mooring dolphin to accommodate 200m length vessels. This will involve some in-water work (pile driving) and other installations as follows:

Marine Loading Arm – flange connection between ship and MLA hose, similar to the existing glycol system (see picture inset). To accommodate the new MLA, minor modifications to the existing dock structure are required. The existing dock is designed to accommodate this second MLA and will simply be secured to the existing deck.

A new berthing dolphin is required at position “1B” (see Figure 5 below) to provide berthing support and lines bollards for vessels. Construction will include the placement of nine (9) new capped steel piles and concrete pile cap identical in configuration to existing berthing dolphins. All piles will be driven from a marine barge.

To accommodate bow mooring lines for larger tankers a new mooring dolphin will be constructed west of the existing mooring dolphin 1A. This dolphin “0” will include the placement of five (5) new concrete capped steel piles identical in construction and configuration of the existing mooring dolphin 1A.

To facilitate construction of this additional dock infrastructure, the current west water lease lot boundary will require movement to the west by approximately 33m.

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FIGURE 5: PROPOSED DOCK MODIFICATIONS

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3.4.1 Marine Loading Area Mitigation Measures

Marine booms will be deployed prior to and for the duration of vessel loading operations. A permanent harbour boom has been set along the entire PCT dock face. An additional section of 325m of boom, including buoys, will be set from the bow along the starboard side of the vessel and around the stern to where it will be linked to the permanent boom for vessel containment (See Operations section 5.6 Marine Spills, for more details).

A surge suppressor vessel will be installed at Berth 1 to accommodate any sudden line pressure surges which may occur during vessel loading. The pressure vessel is partially filled with nitrogen to dissipate sudden pressure shock waves.

The canola oil marine loading pipeline has been designed with a provision to use pipeline pigs in the future to clean and purge lines if required. A pig launcher will be stationed at Berth 1 and a pig receiver adjacent to marine loading pumps P7 & P8 as pigging will take place towards the tank farm. Existing nitrogen supply at Berth 1 will be used to propel the pig through the pipe. A flow meter will record the quantity of nitrogen used during the pigging process.

A canola oil slop tank (4,500 L, steel, double-walled, above ground) will be installed at Berth 1 to collect slops from maintenance activities of the surge absorber drum, pig launcher, pipeline and MLA. The slops tank will be cleaned by means of a vacuum truck and disposed of by an approved waste services contractor.

A vibro hammer will be used to place the piles at Berth 1. Vibro hammers have substantially lower peak sound levels than impact hammers. Accordingly they generate less noise and can reduce potential disturbances to fish (hydroacoustic effects). The process involves a series of counter-rotating weights designed to “cancel out” horizontal vibrations while vertical vibrations are transmitted into the pile.

3.5 POWER SUPPLY AND ELECTRICAL INSTALLATIONS

The entire canola handling system will be powered by electricity from the BC Hydro grid. Existing power distribution equipment has sufficient capacity to handle the increased load of the proposed canola system. No additional power is required from the grid.

Key electrical installations will include a refurbished Motor Control Centre (MCC) 12 room adjacent to the existing glycol equipment. New variable frequency drives (VFD), remote PLC and additional instrumentation will be installed in this room and will be physically separate from the glycol systems.

A new permanent MCC will be located at the north containment wall of tanks-41/42/43 to power marine shipping pumps and valves associated with the tanks.

3.6 CANOLA OIL PROPERTIES

PCT will be handling crude super de-gummed canola oil. Canola oil is a non-toxic, non-flammable food grade product. Ingredients are exclusively canola oil (mixed triglycerides). It is derived from processing seeds from Canola grown in the Canadian Prairies. Key product characteristics are profiled in Table 2 below and in Appendix II (Canola Oil MSDS).

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TABLE 2: KEY PRODUCT CHARACTERISTICS

Parameter Characteristics

Specific Gravity 0.91-0.92

Flash Point 175oC

Colour Amber Opaque

Odour Mild Characteristic of Vegetable Oil

Solubility Not soluble

Stability Stable, Non-reactive

Hazardous Polymerization None

Tank specifications have taken into account canola expansion and contraction with seasonal temperature variation.

Canola oil in the marine environment will oxidize and polymerize to form semi-solid rubbery strings and clumps. Depending on concentration in the receiving environment, it can form a persistent anoxic layer having potentially lethal effects on benthic species. It can also compromise insulating properties of bird feathers and mammalian fur potentially causing death. From a regulatory perspective, canola oil is deemed a deleterious substance under the Migratory Birds Convention Act and is listed under category Y (Hazardous Product) under Annex ii of the MARPOL Convention.

4.0 CONSTRUCTION ENVIRONMENTAL MANAGEMENT

Canola system construction will occur over a twelve to fourteen month period with planned completion and commissioning in Q3 2014. In summary, key milestones for the Canola system construction are shown in Table 3 below.

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TABLE 3: CANOLA SYSTEM CONSTRUCTION

Construction Activity Elapsed

Construction Period*

Comments

Railcar Unloading Area Conversion (Glycol)

1.5 months

Structural, mechanical, electrical

Foundations

Demolition

Railcar Unloading Area Conversion (Canola)

2.5 months

Structural and electrical

Mechanical and piping

Drip trays

Ship Loading Area

3 months

Demolition

Piping

Pile Driving (dolphins)

Loading Arm installation

Mechanical and electrical

Canola Bulk Storage Tank Construction

7 months

Prepare tank farm ground

Foundations and Containment Walls

Field erection, coating and testing new tanks (T-41/42/43)

*note that elapsed construction periods will overlap in many instances for a total construction period of twelve (12) months

Construction will not involve vegetation removal, riparian area intrusion or excavations that could disrupt groundwater. In addition to implementing controls to prevent deleterious material of any sort entering receiving waterbodies, all waste materials will be segregated and recycled where possible. The potential environmental issues and corresponding mitigation measures from construction activities are discussed below.

4.1 WASTE MANAGEMENT

Upwards of 90-95% of waste generated from demolition and construction is expected to be recycled. No hazardous material is expected.

4.1.1 Demolition Waste

In advance of demolition, a hazardous materials assessment will be conducted as required by Work Safe BC OH&S Regulation (s.20.112). Although the potential presence of hazards is low, the assessment will check for materials such as asbestos (mastic) and lead-based coatings. Where hazardous materials are encountered, demolition materials will either be processed for

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potential recovery or disposed as hazardous waste in a licensed facility. Relatively minor scale demolition is anticipated as shown in Table 4 below.

TABLE 4: DEMOLITION AREAS AND MATERIALS

Area Demolished Materials / Equipment

Railcar Styrene pipe, existing drip pans, existing glycol hose system, fire water building interior and control valves, abandoned foam tank, electrical equipment (MCC 12), fire monitor at tank t-5/6.

Marine Loading Styrene pipe

All steel, metal and alloys from demolition will be recycled by a local steel salvage company. This will involve use of existing scrap steel bins and direct removal of larger structures such as gangways and pipe.

Electrical equipment will be segregated and sent to a reputable electronics recycling or waste management company.

4.1.2 Construction Waste

Wood waste generated while framing (e.g., concrete platform for marine loading arm) and packing / pallets will be recycled locally. Amount is not expected to exceed five (5) forty yard bins.

Blast grit, using sand, will be generated when preparing tanks for painting. Grit will be used to remove mill scale within each of these tanks. The combined solids will not be hazardous waste.

Solid non-hazardous waste that cannot be recycled will be placed in existing site bins and disposed in a licensed local landfill (e.g., City of Vancouver landfill).

4.2 EXCAVATED SOILS

Excavation will be required for the proposed canola system as follows:

For the new canola tanks (T-41, T-42, T-43), an area of approximately 7,850m2, located north of existing tank T-31/32; and,

Railcar unloading underground suction piping to pumps and underground slops tank for canola.

Footings required for pump brakes, pipe racks and collection sumps.

Excavation depths are planned between 1.5 to 2.0 metres. Depending on actual excavation depths and volume returned to the pipeline trench for backfilling, an estimate of between 10,000 m3 to 15,000m3 of excavated soil will be generated.

It is known that the general area was backfilled with random material. Additionally, preliminary soil investigations (Simons 1998) indicated the presence of coal, sulphur and minor traces of metals in six test pits in the vicinity of tanks T-31 and T-32. Therefore, some subsurface contamination is anticipated in the vicinity of the proposed new canola tanks and the south end of the underground pipeline trench.

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Any excavated soil for off-site disposal will be stockpiled (covered) and analyzed for applicable parameters according to the CCME Soil Quality Guidelines and provincial Contaminated Site Regulation Standards. Analytical results will dictate the final destination of excavated soils (e.g., from possible re-use on site to licensed landfill for disposal).

4.3 SURFACE DRAINAGE

The existing surface water treatment system will continue to operate during construction. Run-off including dirt / dust from excavation will be collected and treated to control TSS to levels where the water can be recycled / re-used on site or discharged to the sanitary sewer under Metro Vancouver issued permit to PCT.

Concrete will be poured into wood forms to build berthing facilities and mooring at Berth 1. Temporary containment and vigilant concrete injection will prevent concrete slurry losses to Inlet waters directly below.

4.4 NOISE

Construction will be scheduled between 7:00 am to 8:00 pm in compliance with the City of Port Moody’s “Sound Level Bylaw” (#1399) to help minimize noise disturbance to local citizens. The bylaw does include a contingency to work outside these hours if needed, however, such circumstances will be avoided as much as possible.

As a courtesy to local citizens and businesses, PCT will advise of potentially noisy construction periods through public media (e.g., newspapers, websites). Non-continuous noise from RIC under the tanks and pile driving at Berth 1, sand blasting and possibly demolition / demolition materials handling will be the most likely sources. Larger trucks (e.g., tandems for soil removal) may also generate occasional noise though within existing background levels, particularly in this industrial zone. As previously mentioned, relatively less noisy vibro hammers will be used for pile driving for up to three consecutive days.

Additional coordination for public notice may also be required pending construction activities for the Evergreen transit line in the immediate vicinity.

4.5 DUST

Potential dust issues will be minimized by controlling or eliminating sources. For instance, soil stockpile(s) will be covered and shall remain on site for minimal duration as possible. During dryer days, the site sprinkler will be used to control dust when necessary.

4.6 TRAFFIC

The peak number of contractor vehicles coming to and from the site is expected to be low, similar to PCT shift change (e.g., 35-50 vehicles). Therefore, additional traffic generated through construction will likely not have a material effect on local traffic near PCT (e.g., Moody and Murray intersection; Moody overpass). With expected delays caused by Evergreen Line construction (particularly along Clarke Street), management will adjust work schedules where possible to help minimize PCT construction related traffic during this period.

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4.7 SPILLS

Spill kits will be available and made known to contractors in the unlikely event of hydrocarbon (e.g., fuel, hydraulic fluid) spills on site. As part of the indoctrination process, contractors will be informed of the PCT Environment Policy and spill reporting requirements.

The probability of hydrocarbon spills to the marine environment while pile driving is extremely low. Should they occur, small volume spills (e.g., broken hydraulic lines) will be tended to by the contractor; however, PCT or the contractor can otherwise trigger prompt marine spill response services by Western Canada Marine Response Corporation (formerly Burrard Clean) if required.

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5.0 OPERATIONS ENVIRONMENTAL MANAGEMENT

The Canola Oil system is scheduled for commissioning in late Q3 2014. As previously mentioned, the system will be designed to maintain fluid pressures to ensure safe operating conditions. Several engineered contingencies, a fully functional EMS and a routinely updated Emergency Response Plan, will help prevent and / or minimize losses to the environment during unlikely upset conditions (i.e., spills). At the same time, careful consideration has been given to address potential long-term impacts such as visual intrusion and noise resulting from new equipment installations.

From the perspective of overall commodity throughput at PCT (including proposed Potash), Canola will be a relatively minor component. Projections to 2020 for all five commodities, including Potash are shown in Table 5 below. The total tonnage by 2020 will be approximately 4.6 Million MT, 15% below the peak tonnage of 5.4 Million MT in 2004. Forecasts through 2020 are indicated in below.

TABLE 5: OPERATIONS FORECASTS

Year Commodities / Volume (Metric Tonnes)

Sulphur Coal Potash Glycol Canola

2013 1,620,000 400,000 650,000 0

2014 1,540,000 500,000 675,000 175,000

2015 1,460,000 600,000 700,000 425,000

2016 1,380,000 600,000 36,000 725,000 475,000

2017 1,300,000 1,000,000 750,000 540,000

2018 1,220,000 1,250,000 775,000 575,000

2019 1,140,000 1,500,000 800,000 575,000

2020 1,060,000 2,000,000 825,000 575,000

Described in the following sections are the potential environmental issues that may arise during canola system operations and related mitigation measures under the care and control of PCT.

5.1 AIR EMISSIONS

The canola system will not generate any point source emissions. Marine vessels and rail engines will be the primary mobile emission sources.

As previously mentioned, canola transfer and storage operations will be powered exclusively by clean (emission-free) renewable hydroelectric energy obtained from the BC Hydro grid. Commodity transportation by rail (CP Rail) and marine vessels will otherwise generate the vast majority of emission sources. PCT has no direct control of vessels or rail operations other than the scheduling frequency for commodity transportation. However, rail and marine vessel scheduling efficiency is a vital component in terminal planning logistics including effectively managing costs. Furthermore, the marine and rail transportation industries are separately

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governed to manage air emissions (including the PMV Air / Eco-Action programmes which involve using low sulphur fuels while in port.

5.2 HISTORICAL AIR EMISSIONS SUMMARY

The 2005 Emissions Inventory for PCT report (Senes Consultants, January 29, 2007) shows air emissions from all sources (including marine and rail) declined (SO2 excepted) between 1985 and the baseline year 2005 as seen in Table 6 below.

TABLE 6: PCT EMISSIONS INVENTORY 1985 TO BASELINE (2005) RAIL AND MARINE INCLUDED

5.2.1 Air Emission Projections for Canola System

Forecasted emissions for the period 2012-2014, including marine and rail, for all commodities (coal, sulphur, glycol and canola) are shown in Table 7 below and graphed in Figure 6. With a planned increase in commodity tonnage throughput, air emissions will increase but remain below historical levels (i.e., 2001-2008).

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TABLE 7: PCT ANNUAL AIR EMISSIONS (TONNES) ALL COMMODITIES

Year Throughput NOx CO SO2 VOC PM10 PM2.5 NH3 CO2 CH4 N20 PM

(Dust)

2001 3,981,823 116.8 16.0 58.2 6.0 6.8 6.3 0.05 5,531 0.60 0.18 166

2002 4,334,465 123.2 17.1 60.4 6.4 7.2 6.6 0.05 5,774 0.63 0.19 175

2003 4,602,443 121.2 16.8 57.9 6.4 7.0 6.4 0.05 5,699 0.60 0.19 188

2004 5,407,626 150.1 19.8 74.1 7.7 8.8 8.0 0.06 6,988 0.75 0.23 218

2005 4,962,498 144.8 19.4 71.8 7.4 8.5 7.8 0.06 6,776 0.73 0.22 197

2006 4,888,408 137.8 18.8 68.3 7.1 8.1 7.4 0.06 6,471 0.69 0.21 199

2007 4,422,869 126.3 17.7 61.9 6.6 7.4 6.8 0.05 5,911 0.64 0.20 170

2008 3,769,015 106.7 14.4 52.6 5.5 6.1 5.6 0.05 5,095 0.57 0.17 143

2009 3,325,443 94.6 13.2 46.4 4.9 5.4 4.9 0.05 4,543 0.52 0.15 124

2010 2,914,998 82.4 11.7 40.7 4.2 4.7 4.3 0.04 4,022 0.47 0.13 115

2011 2,808,835 79.6 11.4 39.2 4.1 4.5 4.2 0.04 3,891 0.46 0.13 102

2012 2,610,442 74.4 10.9 36.4 3.9 4.2 3.9 0.04 3,647 0.44 0.12 86

2013E 2,670,000 76.3 11.1 37.3 4.0 4.3 4.0 0.04 3,728 0.45 0.12 81

2014E 2,890,000 83.3 11.8 40.4 4.3 4.7 4.3 0.04 4,017 0.47 0.13 77

2015E 3,185,000 92.6 12.7 44.5 4.8 5.2 4.8 0.05 4,405 0.50 0.15 73

2016E 3,216,000 93.9 12.8 45.0 4.8 5.2 4.8 0.05 4,450 0.51 0.15 69

2017E 3,590,000 104.2 13.8 50.2 5.3 5.8 5.4 0.05 4,917 0.55 0.17 65

2018E 3,820,000 110.6 14.5 53.4 5.6 6.2 5.7 0.05 5,205 0.58 0.17 61

2019E 4,015,000 115.9 15.0 56.1 5.9 6.5 6.0 0.05 5,447 0.60 0.18 57

2020E 4,460,000 127.7 16.2 62.3 6.5 7.2 6.6 0.06 5,995 0.65 0.20 53

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This data, including projections, was obtained and / or based on data from the Air Emissions Inventories for Pacific Coast Terminals report 2001 - 2010 (Senes Consulting, December 13, 2006). Coal and Sulphur were treated the same since handling operations are the same. Similarly, Glycol and Canola were treated the same for since they too will be handled by similar operations.

FIGURE 6: GRAPH OF PCT AIR EMISSIONS 2001 TO 2020

Table 8 below shows that air emissions derived exclusively from canola operations are proportionately a small component of the overall forecasted emissions in 2013 and 2014.

TABLE 8: FORECASTED EMISSIONS (%) FROM CANOLA OPERATIONS IN 2013-2020

Year Through-

put NOx CO SO2 VOC PM10 PM2.5 NH3 CO2 CH4 N20

PM (Dust)

2013E 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% n/a

2014E 175,000 6.9% 4.8% 6.1% 6.7% 6.4% 6.4% 3.3% 5.8% 4.3% 6.2% n/a

2015E 425,000 15.1% 10.9% 13.5% 14.7% 14.0% 14.1% 7.7% 12.9% 9.8% 13.6% n/a

2016E 475,000 16.6% 12.1% 14.9% 16.2% 15.5% 15.6% 8.5% 14.3% 10.9% 15.0% n/a

2017E 540,000 17.1% 12.7% 15.2% 16.7% 15.8% 15.9% 9.1% 14.7% 11.4% 15.5% n/a

2018E 575,000 17.1% 12.9% 15.2% 16.8% 15.8% 15.9% 9.3% 14.8% 11.6% 15.6% n/a

2019E 575,000 16.3% 12.5% 14.5% 16.1% 15.1% 15.2% 9.1% 14.1% 11.2% 14.9% n/a

2020E 575,000 14.8% 11.6% 13.1% 14.7% 13.6% 13.7% 8.5% 12.8% 10.4% 13.6% n/a

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With respect to SO2, forecasted emissions are reasonably expected to be lower with the introduction and combustion of ultra-low sulphur fuels in rail engines and marine vessel auxiliary boilers.

5.3 NOISE

With similar design and operating activities, the proposed canola system is expected to have the same low noise profile as the existing glycol system. Canola operations including offloading and transfer pumps are not expected to generate noise levels above background. Railcar delivery and marine vessel transiting and docking can create noises (continuous and non-continuous) above background that may be noticed by local citizens.

Although these sounds are part of PCT’s history and present day operations, the company takes reasonable steps to attenuate noise, including:

Working with CP on operating practices.

Rail lubrication.

Sound barriers.

Equipment upgrades (plastic conveyor rollers, electric motor upgrades, etc.

Even though rail and marine vessels are the most common sources of noise from PCT, throughput projections (2012) show that the potential frequency of associated noises will be lower than in previous years.

5.4 RAIL CAR DELIVERY

Within the forecasted commodity throughput for 2012-2014, the number of railcars delivered to the site will increase from 6% in 2013 to 11.4% in 2014 of all railcars delivered. Table 9 below indicates the number of projected railcar deliveries from 2012-2014 for all commodities.

TABLE 9: PROJECTED RAILCAR DELIVERIES, 2012-2014

Year Sulphur Railcars

Coal Railcars

Glycol Railcars

Canola Railcars

Total Projected Railcars

2012 16,597 2,766 7,049 - 26,412

2013 15,728 3,846 7,471 - 27,046

2014 14,951 4,808 7,759 1,842 29,360

The total projected number of railcars delivered to and processed on site for all commodities (including coal) between 2012 and 2014 will increase over this period but will fall well below historical peak levels (e.g., in 2004) as shown in Table 10 below.

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TABLE 10: HISTORICAL RAILCAR DELIVERIES, ALL COMMODITIES, 2000 TO 2011

5.5 MARINE VESSEL VISITS

As previously mentioned, liquid tanker capacity for carrying canola will vary from 25,000MT to 45,000MT. Conservatively, we have chosen to use the smaller capacity vessels which result in a higher number of transits. Total forecasted vessel traffic is expected to stay well below historical levels (2000-2009). See Table 11 below.

TABLE 11: HISTORICAL AND PROJECTED VESSEL TRAFFIC

Year Drybulk Vessels

Liquid Tankers

Total Vessels

Year Drybulk Vessels

Liquid Tankers

Total Vessels

2000 97 61 158 2010 58 53 111 2001 84 64 148 2011 53 51 104

2002 91 64 155 2012 54

43

97

2003 93 69 162 2013E 54

45

99

2004 104 78 182 2014E 47

53

100

2005 97 82 179 2015E 47 60 106 2006 91 69 160 2016E 47 61 107 2007 84 72 156 2017E 45 63 107 2008 77 73 150 2018E 55 63 118 2009 57 68 125 2019E 58 63 122

2020E 62 63 125

*assumes smallest canola vessel capacity of 25,000 MT / per transit; actual number of tankers may vary pending available capacity at the time of pickup.

5.6 VISUAL IMPACT

Visual impacts resulting from the project, namely the three canola storage tanks, will be very low to negligible. The tanks will be located on the level lot area adjacent to existing tanks and sulphur stockpiles, are similar dimension to existing glycol tanks and the exterior shells will be painted dark green to help blend in with the exiting site surroundings and foliage. See rendering images below:

Year Total # of Railcars

Year Total # of Railcars

2000 42,672 2006 49,995

2001 40,445 2007 45,547

2002 44,201 2008 38,901

2003 46,872 2009 34,385

2004 55,250 2010 29,942

2005 50,729 2011 28,532

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FIGURE 7: RENDERING OF CANOLA TANKS FROM NORTHWEST AT PCT

Note that new tank roofs remains at or below typical sulphur pile crown and background of Port Moody horizon is not obstruction.

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FIGURE 8: RENDERING OF CANOLA TANKS FROM SOUTH AT ROCKY POINT (BOATHOUSE RESTAURANT)

Due to tank size, placement and colour, valued visual features as seen from this public location will not be affected.

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FIGURE 9: RENDERING OF CANOLA TANKS FROM EAST AT OLD ORCHARD PARK

Canola tanks (new and converted) largely blend within existing conditions – no valued visual features will be affected from this pubic location (park).

PCT Canola Oil System - EA

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FINAL PCT Canola EA Project Review Document.doc

FIGURE 10: RENDERING OF CANOLA TANKS FROM RESIDENTIAL AREA ABOVE BARNETT HIGHWAY

Canola Tanks will be visible from above Barnett Highway (e.g., Gore Street) but not obstruct valued sightlines.

PCT Canola Oil System - EA

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5.7 SURFACE WATER TREATMENT

The existing water collection and treatment system will be fully functional during canola and other terminal operations. Canola spills in particular will, as previously stated, involve inspection of key areas including the spill source, collection sumps and the oil water separator. Recovered canola oil will be disposed off-site to an appropriate (permitted) facility (e.g., Westcoast Reduction). Treatment water affected by a canola spill will subsequently be diverted to a new oil/water separator and then to the site water treatment facility before either recycled or discharged to the sanitary sewer (under permit). The PCT EMS document will be modified with new procedures for canola operations, emergencies (spills) and maintenance.

5.8 SYSTEM MAINTENANCE AND WASTE MANAGEMENT

The canola system components will be entered into a site-wide computerized maintenance management system (CMMS) (Maximo by IBM) to ensure inspection and preventive maintenance activities are done on a timely basis for optimal operations while preventing upset conditions. Additionally PCT will participate in the PMV lead development of best practices for canola oil handling.

Waste canola will be generated during pipeline maintenance, slop tank content disposal, spill tray clean-up and removing skim layer in the oil / water separator. Waste canola will be disposed off-site to an appropriate (permitted) facility.

5.9 MARINE SPILLS

PCT will deploy containment booms for every canola vessel before marine loading begins. Containment will be achieved by linking the existing “pond boom” set on the inside of the dock face (see pictures) with a new 325m section of harbour boom set on the outside (starboard side) of the vessel.

Boom specifications will include:

Belt: 30” (76cm) conveyor belting (ATi 350 cxc black PVC), 30m sections.

Floats: foam filled polyethylene dry roto-molded with UV inhibitor.

Connectors: aluminum and stainless steel.

Fittings: stainless steel.

See Appendix III for complete boom specifications. The containment system will also include buoys to keep the boom in position up to 10m off the starboard side to optimize containment configuration. See Figure 11 below, which illustrates the concept for boom containment.

As previously mentioned, the Emergency Response procedures will be developed for potential canola marine spills. Employees will subsequently be trained in the procedure.

PCT Canola Oil System - EA

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FIGURE 11: CONCEPTUAL PLAN FOR MARINE BOOM CONTAINMENT

PCT Canola Oil System - EA

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6.0 PUBLIC CONSULTATION

PMV have indicated to PCT that a full scale public consultation for the canola project is not required since the project does not involve significant in-water works, is complementary to existing facilities and does not represent a significant increase in emissions. That said, PCT has taken numerous steps to actively inform and engage the public and First Nations on the project as follows:

PCT website: project information describing the facility in detail posted with company contact to obtain feedback.

City of Port Moody: PCT has met with the Mayor and Counsellors regarding PCT’s planned site development and has full support for the proposed canola project. Further meetings will be held at the request of the City Planning Department if required.

First Nations – PCT has conducted preliminary and voluntary discussions with local First Nations to discuss terminal expansion projects including navigation channel dredging and construction of the Canola System. An in person meeting was held with Squamish Nation representatives and the Tsleil-Waututh Nation has been invited to meet and review the canola project with the PCT project team.

Local Industry – PCT have spoken directly with the various members of the Port Moody Industrial Group and the Tri-Cities Chamber of Commerce and all members are supportive of PCT’s plans.

Newspapers/Channels – PCT will inform local citizens of the project using direct mail-out bulletins, ads in the local newspaper and using PCT’s Community Newsletter “Channels”.

Open House – PCT held a public open house attended by an estimated 1,000 citizens on July 1, 2013 to review proposed terminals expansion plans including the Canola System.

All communications between PCT and interested parties will be recorded and addressed, including process and procedural modifications where warranted and practical. PCT will coordinate posting project information on the PMV website with links to PCT’s website for further information and to address inquiries.

7.0 CONCLUSION

The relatively small scale of the project combined with engineered controls, efficient planning and a proven environmental management system, will result in minor or no residual impacts resulting from expanded operations. The vast majority of the project will occur upland with only small-scale and routine foreshore work to be undertaken. Balanced with socio-economic benefits including additional local taxation and job creation, the proposed canola project fits well with current City of Port Moody planning objectives as well as the PMV Vision for “an efficient and sustainable Gateway”.

Pacific Coast Terminals Co. Ltd. - Environmental Assessment Canola Oil System Installation and Operation

APPENDIX I

Pacific Coast Terminals Canola Handling Facility

Design Basis, Sacre-Davey Engineering, July 10, 2013

Pacific Coast Terminals

Canola Handling Facility

Design Basis

Prepared for:

Pacific Coast Terminals Co Ltd

Prepared by:

David Pfeil, P.Eng.

Derek Smith, P.Eng.

Sacré-Davey Engineering

Sacré-Davey Project Number: 4943

Revision B

July 10th, 2013

Table of Contents Table of Contents .......................................................................................................................................... 1

1. EXECUTIVE SUMMARY ....................................................................................................................... 2

2. PROPOSED FACILITY UPGRADES ..................................................................................................... 2

2.1. GLYCOL SYSTEM – PROPOSED EXPANSION LAYOUT ............................................................... 3

2.1.1. Rail Car Unloading System - Glycol ................................................................ 3

2.1.2. Storage System – Glycol ................................................................................ 3

2.1.3. Marine Loading System - Glycol ..................................................................... 3

2.2. CANOLA SYSTEM - PROPOSED EXPANSION LAYOUT ................................................................ 3

2.2.1. Rail Car Unloading – Canola Oil ..................................................................... 3

2.2.2. Storage – Canola Oil ....................................................................................... 4

2.2.3. Marine Loading System – Canola Oil .............................................................. 6

2.2.4. Utilities ............................................................................................................ 6

3. ELECTRICAL AND INSTRUMENTATION COMPONENTS .................................................................. 7

3.1.1. Marine Loading ............................................................................................... 7

3.1.2. The Site .......................................................................................................... 7

4. ENVIROMENTAL CONTROLS .............................................................................................................. 7

5. SUMMARY ............................................................................................................................................ 8

4943 - PCT Design Basis Rev B .doc Page 2 of 9

1. EXECUTIVE SUMMARY

Sacré-Davey Engineering (SDE) is performing detailed engineering to construct and modify facilities at

Pacific Coast Terminals (PCT) to enable them to receive, store and ship canola oil. The project is estimated

to be completed in the third quarter (Q3) of 2014. Procurement of the storage tanks is the critical path for

this project. Using Rapid Impact Compaction for geotechnical preparation for the new tanks would allow the

additional storage to be commissioned in Q3 2014. Standard soil pre-loading would extend the overall

project completion by approximately 5 months based on PCT’s prior experience at their site.

SDE has designed the canola oil system to be able to unload 40 (90 MT each) rail cars in less than 6

hours, have adequate storage to load a 40,000 DWT Handy (or Handymax) vessel and be able to shipload

at a rate of 1,000 MTPH .

A number of different storage capacity options have been examined with the base case being installing

three new tanks at PCT. Alternative options were reviewed which involved repurposing and increasing the

height of existing storage.

Accommodating the various sizes of railcars is challenging due to the length of mismatched railcars

currently used in canola oil and glycol service. In order to provide safe access to the tops of railcars

without uncoupling, the length of four gangway tracks can be lengthened to allow 20 railcars of all sizes

quoted to be spotted and unloaded at one time. The canola oil system has been designed and costs

provided for unloading railcars at a maximum rate of 600 MTPH.

2. PROPOSED FACILITY UPGRADES

The new glycol railcar unloading system has been engineered to unload a volumetric flow rate of 749 m³/hr.

(853 metric tonnes per hour (MTH) at 6.5°C). It will take four (4) hours and forty (40) minutes to fully unload

the product into storage. Both, the glycol storage capacity and ship loading rate will remain unchanged.

Modifications to the overhead railcar racking will allow glycol to be unloaded from the top of the railcars.

PCT existing underground rail car bottom unloading network will be repurposed in order to unload a

volumetric flow rate of 734 m³/hr. (681 metric tonnes per hour (MTH) at 6.5°C). It will take five (5) hours

and forty (40) minutes to fully unload the product into storage. Canola oil will be stored in three (3) new

tanks with a nominal storage capacity 15,000 metric tonnes each. The new canola oil ship loading system

has been engineered to ship load at a rate of 1,000 MTH onto 40,000 deadweight tonnage (DWT) vessels

through a counter-balanced articulating marine loading arm (MLA).

4943 - PCT Design Basis Rev B .doc Page 3 of 9

2.1. GLYCOL SYSTEM – PROPOSED EXPANSION LAYOUT

2.1.1. Rail Car Unloading System - Glycol

The current glycol rail car unloading system accepts up to forty 51’-4” railcars which are used to transport

glycol. Longer 55’-9” railcars can be spotted in five car lengths for a total of twenty cars per spot. Each car

has its own unloading station where glycol is drained from the belly of the car via a flexible hose that is

manually connected to the rail car drain valve. From the flex hose, glycol from each of the connected cars

fills the underground collection line and is pumped via two unloading pumps through a manifold to storage

tanks. The existing bottom unloading glycol system will be converted for unloading canola oil and a new top

unloading system will be installed to unload glycol. Top Unloading Arms will be installed at forty (40)

overhead stations located on the existing elevated access platforms. New pumps (P-1 and P-2) have been

selected to meet the glycol unloading rate requirements. The new pumps P-1 and P-2 will be installed

along the Southwest corner of tanks T-5 and T-6 containment wall.

The new glycol top unloading system is designed to unload forty (40) rail cars in 4 hours and 40 minutes.

Due to limitations of gangway travel, 55’-9” railcars will be limited to twenty.

2.1.2. Storage System – Glycol

The glycol storage system will remain unchanged.

2.1.3. Marine Loading System - Glycol

The glycol marine loading system will remain unchanged.

2.2. CANOLA SYSTEM - PROPOSED EXPANSION LAYOUT

The proposed canola oil system has been based on the existing glycol system with regards to

instrumentation and configuration. Carbon steel piping will be used for above ground piping or piping

installed in trenches. No underground piping will be installed, therefore no stainless steel piping is required.

2.2.1. Rail Car Unloading – Canola Oil

The existing glycol rail car unloading system described in Section 2.1.1 will be converted to unload canola

oil. In order to achieve this, the rail car drain valve connections, hoses, pipe, pumps and valves will all have

to be cleaned and flushed to be re-used. Discharge from unloading pumps P-8 and P-9 will be tied into a

piping system distributing the canola oil to the proposed new three (3) storage tanks.

It is a requirement that terminal operators access the top of the railcars to open a vent prior to unloading

and also to shut the vent after unloading is complete.

4943 - PCT Design Basis Rev B .doc Page 4 of 9

An extensive study was completed to determine the number of railcars of different sizes which could be

accommodated with the existing gangway tracks. Various permutations were examined including

increasing maximum track length of the platform gangways to 4,900mm.

The following can be accomplished with minimal changes by only increasing four gangway tracks to

4,900mm from 2,500mm:

• 55’ - 5” 23,470 US Gal (Bunge) cars: 20 railcars

A total of 36 rail cars of the size can be unloaded at once

• 60’ - 2 ½” 25,790 US Gal (Bunge) cars: 12 railcars

A total of 34 rail cars of this size can be unloaded at once

• 58’ 6 - ½” 28,700 US Gal (Bunge) cars: 12 railcars

A total of 36 rail cars of this size can be unloaded at once

• 60’ 7 - ½” 29,188 US Gal (Cargill) cars: 12 railcars

A total of 34 rail cars of this size can be unloaded at once

The option was considered to install grade level vent valves on all the canola oil railcars; however initial

cost estimates are $10,000 to convert each railcar, and an additional $10,000 to remove the vent valves

when each railcar is removed from lease. It was therefore decided to review the options around further

modifications to the gangway tracks instead.

Gangway supplier, Northern Platforms stated that gangway tracks could be increased to a practical

maximum length of 6,400mm. The limit on gangway track length is the force required to roll gangways

along the track. Increased length would require motorized/powered assist and an upgrade to structural

components of the platform. Lengthening four gangway tracks to approximately 6,400mm, platforms would

allow access to twenty railcars being spotted for all of the oil cars listed above. For 60’-1½” railcars, the

required gangway track length is 6,730mm. Preliminary discussions with Northern Platforms suggest that

this could be achieved.

2.2.2. Storage – Canola Oil

After canola oil has been unloaded from railcars, it will be stored in tanks until loaded onto a vessel. To

leverage lower ocean freight rates with larger tanker shipments, it is desired to load a full 40,000 DWT

vessel. In order to practically ship 40,000 tonnes of canola, storage of approximately 45,000MT is required.

Achieving this storage inventory will require 3 new storage tanks. Each tank will be of identical design and

4943 - PCT Design Basis Rev B .doc Page 5 of 9

able to store 15,000 MT each. Tanks will be equipped with automated isolation valves (i.e. shutoff valves)

at both inlet and outlet of each tank in order to ensure containment if connecting pipe ruptures, as well as

overfill protection.

Containment walls and area membranes will be installed to ensure if a tank ruptures that any spilled liquid

will be contained. A new sump pump (P-122) will be installed and tied into the existing facility waste water

collection system. New area lighting and storage controls will be required. Downstream of each automated

shutoff, the tank piping will be equipped with expansion joints. This is to reduce any unwanted stresses in

the shell of the tank and reduce the risk of spillage.

Each tank will be fitted with two agitators which will operate intermittently to avoid product settling and

gumming up of the system between tank filling and vessel loading cycles. Rapid Impact Compaction for

geotechnical preparation has been considered which allows for a shorter and more predictable duration for

tank foundation preparation.

Tank Description Current Commodity

Existing

[m3]

New Tanks

[m3]

T-1 Glycol 6,360

T-2 Glycol 6,360

T- 5 Waste Water 6,360 -

T- 6 Waste Water 6,360 -

T- 21 Glycol 9,540 -

T- 22 Glycol 9,540 -

T- 31 Glycol 9,540 -

T- 32 Glycol 9,540 -

T- 41 New Canola Storage Tank - 15,000

T- 42 New Canola Storage tank - 15,000

T- 43 New Canola Storage Tank - 15,000

Total [MT at 6.5°C] 63,600 45,000

Table 1 Tank capacities at PCT facility in Port Moody, B.C.

4943 - PCT Design Basis Rev B .doc Page 6 of 9

2.2.3. Marine Loading System – Canola Oil

Canola oil will be pumped from storage to ocean going tankers primarily through above ground piping with

the exception of one section run in a prefabricated concrete trench. Routing the pipe through the trench

was selected by PCT in order to protect it from mobile equipment and disruption from possible future

expansion. Existing styrene pipes running out to Berth 1 and 2 in a pipe tray and along the pipe rack will be

removed to provide adequate room for the new canola oil piping. A 6-inch return/recirculation line, which

follows the routing of the marine loading pipeline, is provided from the dock back to the storage tanks. This

recirculation line is for circulation of the product to aid in maintaining product quality.

The selected marine loading pipe size is 16 inches. Engineering provisions have been made for the canola

oil marine loading line to be fully piggable.

The new marine loading pumps (P-10 and P-11), will be located to the west of the T-41, T-42 and T-43

containment wall, whereas the new booster pumps (P-10A and P-11A) will be located close to the nitrogen

storage located East of the quadrant ship loader, will draw canola oil from the storage tanks and pump it

through a new MLA to be installed on Berth 1.

The proposed location for the new marine loading arm will site vessels further west, requiring the execution

of marine works. A new Mooring Dolphin #0 and new Berthing Dolphin #1B will be constructed, as well as

minor modifications in order to allow installation of the new MLA. A containment boom will be installed as

part of the containment in the event of any spills during product loading.

2.2.4. Utilities

Additional fire hydrants will be installed for fire protection for the canola storage tank containment area.

Although tanks for crude canola oil storage do not normally require nitrogen blanketing, the design of the

canola storage tanks will be able to accommodate the future inclusion of a nitrogen padding system. A

slops tank (T-7A) has been included at the Berth 1 at the loading end of the pipeline for any contaminated /

discarded product. This slops tank will have a pump out connection for product removal via vacuum truck.

The liquid cargo unloading tracks H, I, J and K will be provided with In-track continuous collection pans in

order to contain potential canola oil slops that may occur during canola oil rail car unloading operations.

These containment pans are open; therefore water and snow will be collected in them. A new oil and water

primary decanter (OWPD-01) will be installed below grade in order to provide for adequate separation and

collection of both oil and water. The decanted water will be collected in a Pump Box to be pumped into the

general area sump number 4 taking all of the PCT’s wastewater to a central wastewater treatment facility.

The waste oil that accumulates on the surface of the OWPD-01 decanter is removed by means of an oil

skimmer (OSK-01) that collects the waste oil into a tote for off-site disposal.

4943 - PCT Design Basis Rev B .doc Page 7 of 9

There is available an underground holding tank (ST-04) previously used in styrene service that could be

used to store waste canola oil. This holding tank is located along the Southwest corner of tanks T-5 and T-6

containment wall and, has a pump out connection for product removal via vacuum truck.

See attached Process Flow Diagrams (PFDs) and Piping and Instrumentation Diagrams (P&IDs) for

additional information.

3. ELECTRICAL AND INSTRUMENTATION COMPONENTS

Canola Oil handling equipment and their associated electrical loads will be connected to the terminal's

existing power distribution system. Power for pumps and equipment at the railcar unloading area will be

supplied via the existing Tank Farm MCC 12. Power for agitators, valves and shipping pumps associated

with the tank area will be supplied from a new MCC14 fed from Substation 'C'.

3.1.1. Marine Loading

The starters for Canola Oil Marine Loading Booster pumps will be added to the existing MCC 3 and MCC 4

in the Substation B. The MCCs have a sufficient capacity to handle the added connected load of about 200

kVA each.

3.1.2. The Site

The current Maximum Recorded Demand of 3610 kVA would be raised by operation of all added Canola

Oil connected loads to a level possibly over the limit of power service. At present, the simultaneous marine

loading of both products is not expected. The product handling anticipates the Rail Car Unloading of both

Canola Oil and Glycol simultaneously and with the Marine Loading of only one at a time; Canola Oil or

Glycol.

4. ENVIROMENTAL CONTROLS

To ensure that this project can proceed with the upmost consideration for the local environment, the

following considerations were given in the preliminary design stage.

- Creek crossings for pipes will make use of a double-walled pipe construction to ensure no product leakage to the creek in the case of a pipe failure.

- Containment areas will be installed surrounding any new tank installations. These containment areas will also make use of an impermeable liner bottom to prevent any spillage from seeping into soil and ground water.

4943 - PCT Design Basis Rev B .doc Page 8 of 9

- Containment areas will be equipped with sumps, pumps and oil/water decanter to remove and separate rain water that may collect inside the berm.

- All new tanks, structural or mechanical installations will be designed to current National Building Code of Canada standards.

- Any contaminated oil or spills will be collected and removed from site via vacuum truck in accordance with PCT current operating procedures.

- Containment boom for Berth #1 will be installed for vessel loading to prevent egress into the Burrard Inlet.

5. SUMMARY

Rail car unloading will require conversion of the glycol system to top unloading by modifying the gangway

platforms and installation of unloading arms and new piping network to two new glycol pumps. Existing

mono ethylene glycol (MEG) unloading piping will be cleaned-up and converted to canola unloading

service. Two new canola unloading pumps will be used to transfer canola product to three new tanks with a

total storage capacity of 45,000 MT, complete with new containment wall designed to current environmental

codes.

Glycol will be top unloaded from the rail cars and piped to two 12-inch headers (each header serves two

unloading tracks). The two new 12-inch unloading headers run along the walkway steel structures located

in the rail car unloading area, and merge into a common 16-inch suction line leading to the new glycol

unloading pumps P-01 and P-02 each pumping 50% of the total design flow rate of 750 m³/hr. P-01 and P-

02 tie in the existing 10-inch pipe distribution system to the glycol storage tanks T-01, T-02, T-21, T-22, T-

31 and T-32. Up to 39 rail cars containing glycol can be unloaded at once. The design unloading rate of

750 m³/hr. is based on 36 rail cars, which corresponds to the maximum cumulative volume of glycol that

could be unloaded at once.

The table below summarizes the glycol product unloading requirements:

Total Pumping TimeFull Flow Pumping

Time

Half Flow Pumping

TimeFlow Rate (Total)

36 Rail Cars3,240 m³

(856,800 USGAL)4 hrs 40 minutes 4 hrs   40 min

749 m3/hr

(3,298 GPM)

Number of Railcars

39 81.3 m³ 3,172 m³

21,490 USGAL 838,110 USGAL

36 90.0 m³ 3,240 m³

23,800 USGAL 856,800 USGAL

Cumulative Volume to be Unloaded

Glycol Cumulative Volume Unloading Combinations

Design Case Maximum Unloading Volume

Combination

Rail Car Size

Table 2 Summary of Glycol rail car capacity combinations and unloading rates.

4943 - PCT Design Basis Rev B .doc Page 9 of 9

Canola oil is bottom unloaded from the rail cars through the existing underground unloading pipe network.

The common suction header of the existing system will be upsized from 12 inches to 16 inches in order to

ease both pressure losses and pump suction velocity to accommodate a fluid that is approximately 4 times

more viscous that glycol. Canola oil will be bottom unloaded by means of two new canola oil unloading

pumps P-08 and P-09 each pumping 50% of the total design flow rate of 734 m³/hr. P-08 and P-09

discharge into a new 12-inch pipeline taking the product to the new canola oil storage tanks T-41, T-43 and

T-43. Up to 36 rail cars containing canola oil can be unloaded at a time. The design unloading rate of 734

m³/hr. is based on 36 rail cars, which corresponds to the maximum cumulative volume of canola oil that

could be unloaded at once.

The table below summarizes the canola oil product unloading requirements:

Total Pumping TimeFull Flow Pumping

Time

Half Flow Pumping

TimeFlow Rate (Total)

36 Rail Cars3,911 m³

(1,033,200 USGAL)5 hrs 40 minutes 5 hrs   40 min

734 m3/hr

(3,231 GPM)

Number of Railcars

36 88.8 m³ 3,198 m³

23,470 USGAL 844,920 USGAL

36 108.6 m³ 3,911 m³

28,700 USGAL 1,033,200 USGAL

34 97.6 m³ 3,319 m³

25,790 USGAL 876,860 USGAL

34 1,150.0 m³ 39,100 m³

29,188 USGAL 992,392 USGAL

Rail Car Size Cumulative Volume to be Unloaded

Canola Oil Cumulative Volume Unloading Combinations

Design Case Maximum Unloading Volume

Combination

Table 3 Summary of Canola rail car capacity combinations and unloading rates.

A new pipeline will be installed from the new storage tanks leading to the new marine loading arm for the purpose of loading ocean going vessels at a maximum design flow rate of 1,000 MTH of canola oil at 6.5°C. The suction pipe to the new canola oil marine loading pumps P-08 and P-09 is 24 inches, the size is reduced to 16 inches from the discharge of P-10 and P-11 all the way to the connecting flange of the new marine loading arm. A new mooring dolphin and berthing dolphin will be installed due to vessel siting required by the new marine loading arm location.

³

³

³

³

Pacific Coast Terminals Co. Ltd. - Environmental Assessment Canola Oil System Installation and Operation

APPENDIX II

Material Safety Data Sheet (MSDS)

Super De-Gummed Canola Oil, Bunge Canada

Bunge Canada 2190 South Service Road West, Oakville, Ontario, Canada L6L 5N1

MATERIAL SAFETY DATA SHEET

Identity Crude, Super De-gummed Canola Oil CAS# 120962-03-0

SECTION I - MANUFACTURER

Bunge Canada

2190 South Service Road West

Oakville, Ontario

L6L 5N1

Emergency Telephone Number Ted Hamill Bus. (905) 825-7983 or (905) 577-8057 Res. (905) 878-9323 E-mail: [email protected] Phone Number for Information (905) 825-7959

Date Prepared/Revised February 14, 2011

SECTION II - HAZARDOUS INGREDIENTS/IDENTITY INFORMATION

Hazardous Components

OSHA

ACGIH

PEL

TLV

None

Other Limits N/A %

Recommended (Optional)

Specific Chemical Identity

(Common Name)

Mixed triglycerides (vegetable oil)

SECTION III - PHYSICAL/CHEMICAL CHARACTERISTICS

Boiling Point N/A

Vapor Pressure (mm hg) Less than 0.1 mm at 300°C

Vapor Density (Air = 1) N/A

Specific Gravity (H20 = 1) 0.91 - 0.92

Melting Point Liquid above 0°C

Evaporation Rate (Butyl Acetate = 1) N/A

Solubility in Water Insoluble

Appearance and Odor Amber liquid with mild characteristic odour

SECTION IV - FIRE AND EXPLOSION HAZARD DATA

Flash Point >175 °C

Flammable Limits

LEL

UEL

Not Established

Extinguishing Media Dry chemical or C02 preferred

Special Fire Fighting Procedures Stop spill, start fire fighting efforts immediately. Limit

spread of oil. Treat as an oil (edible fat) fire

Unusual Fire and Explosion Hazards Ignition temperature approx. 345°C (653°F).

If product begins to smoke, reduce heat.

Page 1 of 2

SECTION V - REACTIVITY DATA

Stability [ ] Unstable [ X ] Stable

Conditions to Avoid

Incompatibility (Materials To Avoid) Avoid flames and strong oxidizers

Hazardous Decomposition of Byproducts N/A

Hazardous Polymerizations [ ] May occur [ X ] Will Not Occur

Conditions to Avoid

SECTION VI - HEALTH HAZARD DATA

Route(s) of Entry Inhalation Skin Ingestion

No hazard No hazard No hazard

Health Hazards (Acute and Chronic) None

Carcinogenicity: NTP IARC Monographs OSHA Regulated

None

Signs & Symptoms of Exposure N/A

Medical Conditions Generally Aggravated by Exposure

None

Emergency First Aid Procedures N/A

SECTION VII - PRECAUTIONS FOR SAFE HANDLING AND USE

Steps To Be Taken in Case Material is Released or Spilled

Use oil adsorbent and dispose properly (either sand or vermiculite floor adsorbent)

Waste Disposal Method Do not put into sewer lines. Dispose of in accordance with local regulations

Precautions to be Taken in Handling and Storing Keep away from fire or open flames. Do not overheat. If product begins to smoke, reduce heat.

Other Precautions Consult federal and/or local authorities for approved disposal procedures

SECTION VIII - CONTROL MEASURES

Respiratory Protection (specify type) Not necessary under normal conditions of use

Ventilation Local exhaust: normal ventilation. Special - If product is used at elevated temperatures a fume collection system is suggested

Protective Gloves Impervious gloves suggested for repeated or prolonged contact

Eye Protection As necessary for particular use

Other Protection Clothing or Equipment Evaluate need based on particular application

Work/Hygienic Practices Normal work and hygienic practices for handling non-hazardous liquid material for eventual food use

NOTE: The information in this MSDS is compiled from sources considered to be accurate to the best of our knowledge and applies to activities within the scope of the intended use of the product as a vegetable oil. No warranty is expressed or implied with respect to completeness or continuing accuracy of the information given here. Users should satisfy themselves that they have all current data relevant to their particular use.

Page 2 of 2

Pacific Coast Terminals Co. Ltd. - Environmental Assessment Canola Oil System Installation and Operation

APPENDIX III

Proposed Harbour Boom Construction Specification

Crockett Contracting - January, 2012