NOTICE OF COMMENCEMENT

of an Environmental Assessment

Wanatango Falls Hydroelectric Generating Station, Frederick House River, Mann Township

Wanatango Falls (ON)

July 18, 2011 — Fisheries and Oceans Canada and Transport Canada are required to ensure that a screening is conducted commencing on July 11, 2011 in relation to the development proposal: Wanatango Falls Hydroelectric Generating Station, Frederick House River, Mann Township.

Xeneca Power Development Inc. is proposing to construct and operate a hydroelectric generating station on the Frederick House River, located in Mann Township, 26 km northwest of Iroquois Falls and 22 km south of Cochrane, Ontario. The site is approximately 10 km downstream of the existing Frederick House Lake Control Dam and approximately 600 m upstream of Zeverly’s Road. The proposed facility will have a generating capacity of 4.67 MW and will operate based on the natural run of water upstream of the facility, with some daily flow modifications. Water would be directed from the Frederick House River through a 110 m open approach channel on the west shore of the river to the powerhouse and tailrace. Two 50 m long embankment dams will flank the 14 m x 14 m powerhouse. The headwork structure would involve the construction of a 35 m long fill embankment, 40 m long control dam, 215 m long overflow dam and a 35 m long concrete spill way. The proposed project would capture a surveyed gross head of either 7.5 m or 9.0 m, and would result in the flooding of approximately 7.8 ha or 64.8 ha of riparian lands, respectively, up to 0.5 km or 8.2 km upstream of the spillway dam, respectively. The final proposed surveyed gross head and the area of inundation will depend on the proponent’s negotiations with potentially affected private land owners upstream of the development site. The proposed project would connect to the electrical grid via a new 42 km, 27.6 kV feeder connection to the Hoyle Transformer Station. The power line would be supported by wooden poles along its entire length. The required right-of-way for the power line corridor would extend from 10-30 m, depending on site characteristics. One pad mount transformer would be required adjacent to the powerhouse. Access to the proposed site would require a combination of road upgrades and construction of new roads. Construction of a new approximately 870 m road on the west side of the river would be required to access the powerhouse. A new 170 m long road located on the east side of the river would be required to access the dam.

The scope of project for the Wanatango Falls Hydroelectric Generating Station project has been identified as: all physical works and activities associated with the construction and operation of the proposed hydroelectric generating facility, including the headwork structure (fill embankments, control dam, overflow dam and spillway), intake channel, powerhouse and tailrace, associated storage sites, working areas, platforms, new transmission line and associated structures, new access roads, upgrades to existing access roads and any other works or undertakings directly associated with the hydroelectric project, including those that are temporary.

Under section 5 of the Canadian Environmental Assessment Act, an environmental assessment is required because, for the purpose of enabling the project to be carried out in whole or in part, Fisheries and Oceans Canada may take action in relation to subsection 35(2) of the Fisheries Act, may take action in relation to section 32 of the Fisheries Act, may take action in relation to subsection 22(3) of the Fisheries Act and may take action in relation to subsection 22(1) of the Fisheries Act and because Transport Canada may take action in relation to section 5 of the Navigable Waters Protection Act.

This project is also subject to the environmental assessment requirements of the Government of Ontario.

The Canadian Environmental Assessment Agency will act as the Federal Environmental Assessment Coordinator for this environmental assessment.

For further information on this environmental assessment, please contact:
DFO – CEA Registry Office -Central & Arctic Region – Ontario Area
P.O. Box 5050
867 Lakeshore Road
Burlington  ON  L7R 4A6
Telephone: 905-336-4508
Email: CEARCNAON-RCEERCAON@dfo-mpo.gc.ca

and refer to Registry reference number 11-01-62994