Participant Funding Program – Regular Funding Envelope
Funding Review Committee's Report

Allocation of Federal Funds for the Environmental Assessment of the Hammond Reef Gold Mine Project

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

A Funding Review Committee (FRC) independent of the environmental assessment (EA) was established for the Hammond Reef Gold Mine Project (the Project). The EA of the Project is being conducted by means of a comprehensive study (CS). The FRC's purpose was to assess funding applications received under the PFP – Regular Funding Envelope (RFE) for the proposed project, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided, and if so, in what amount.

Under the RFE for this project, a total of $50,000 was made available to support public participation in the EA, including:

• review and comment on the Environmental Impact Statement (EIS)
• review and comment on the Comprehensive Study Report (CSR); and
• participate in open houses to consider the proposed project.

The deadline to submit an application was September 22, 2011. One application was received requesting a total of $44,610.

On October 7 and November 21, 2011, the FRC met to review the application. The FRC members were: Mr. Bruce Young, retired Director of Panel Management with the Agency, acting as FRC Chairperson; Mr. Patrick Duxbury, Environmental Assessment Consultant; and Ms. Patricia Larkin, Environmental Health Specialist.

Background

Osisko Hammond Reef Gold Ltd. (the proponent) proposes to develop an open pit gold mine, located approximately 23 kilometres northeast from the Town of Atikokan. The operation of the proposed mine would take approximately 14 years with a rate of production of approximately 50,000 tonnes per day.

On July 28, 2011, the EA commenced as a CS. An EA is required in relation to this project because Fisheries and Oceans Canada, Transport Canada and Natural Resources Canada identified themselves as having section 5 responsibilities under the Canadian Environmental Assessment Act. The Project, as proposed by the proponent, is also listed on the Comprehensive Study List Regulations: a gold mine, other than a placer mine, with an ore production capacity of 600 tonnes per day or more [ss 16 (c)].

The Agency is responsible for exercising the powers, and performing the duties and functions of the responsible authorities until a CSR is submitted to the Minister of the Environment. Procedures of the Major Projects Management Office are being implemented. As the Crown Consultation Coordinator, the Agency continues to engage and consult with the potentially affected Aboriginal groups.

As the Project is also undergoing an individual EA under the Ontario Environmental Assessment Act, the Agency intends to coordinate the federal and provincial EA processes and Aboriginal consultation activities, to the extent possible, with the proponent, the Ontario Ministry of the Environment as well as the Ontario Ministry of Northern, Development and Mines who leads the provincial one window coordination process for mineral developments.

Eligibility

Under the PFP – RFE, funding may be provided to support applicants' input to an EA with the federal government. These activities must be linked to the EA of a proposed project through a CS, mediation or review panel.

Eligible recipients must be able to demonstrate that they meet at least one of the following eligibility criteria:

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

The applicant was deemed to have met the eligibility criteria.

In its subsequent deliberations, the FRC made the recommendation, based on the Agency's consultation plan and proposed consultation activities, that one of the applicants from the PFP – Aboriginal Funding Envelope be considered for funding under the RFE. That applicant was also deemed to have met the eligibility criteria.

Under the PFP – RFE, applicants can request funding for costs related to:

• professional fees;
• staff salaries and benefits;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the EA;
• administrative and reporting costs;
• local collection and/or distribution of information;
• office supplies and telephone charges;
• rental of office space and meeting rooms;
• legal fees;
• general media advertising and/or promotion;
• purchase of information material, with supporting documentation; and
• other detailed expenses.

Rationale for Allocation

In reviewing the two applications and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors including the following:

the ability of the applicants to demonstrate that they had met one or more of the eligibility criteria listed above;

• the quality, clarity and content of the application and the applicant's proposed EA participation work plan;
• the eligible activities under the PFP – RFE for the Project, which include reviewing and commenting on the EIS and on the CSR as well as participating in open houses; and
• the recommended funding allocation framework developed by the Agency, including amounts, based on the participation opportunities offered, the eligible activities for those opportunities, the expected deliverables and the diversity of issues likely to be involved in the EA process.

Recommendation

The FRC based allocations on the recommended funding levels provided to the FRC by the Agency for the participation opportunities being offered.

The FRC recommends allocating $22,200 of the available RFE funding to support the two applicants as follows:

• $15,000 to the Atikokan Sportsmen's Conservation Club and the Ontario Federation of Anglers and Hunters; and
• $7,200 to the Ontario Coalition of Aboriginal People.

The FRC further recommends that any funding allocation be conditional on a provision of written comments to the Agency, by the applicants, on the EIS and the CSR.

The Funding Review Committee
Hammond Reef Gold Mine Project
Regular Funding Envelope

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Bruce Young, Committee Chairperson, retired Director of Panel Management with the Agency

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Patrick Duxbury, Environmental Assessment Consultant

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Patricia Larkin, Environmental Health Specialist

Recommended Participant Funding Allocations
Hammond Reef Gold Mine Project
Regular Funding Envelope

Applicant	Total Allocation Amount Recommended
Atikokan Sportsmen's Conservation Club and the Ontario Federation of Anglers and Hunters	$15,000
Ontario Coalition of Aboriginal People	$7,200
TOTAL	$22,200