ARCHIVED - Contaminated Sites Program - Performance Report 2001 - 2002

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Date: November 2002
ISBN: 0-662-33376-4

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Table of Contents

Table of Figures


Management Statement

I am pleased to present the first annual Performance Report of the Northern Affairs Program (NAP), Contaminated Sites Program (CSP). This document reports progress on managing contaminated sites from former military sites and abandoned mines in Canada's three territories north of 60° latitude for the fiscal year 2001 - 02

CSP is committed to managing contaminated sites in a cost-effective and consistent manner, to reduce and eliminate, where possible, risk to human and environmental health and liability associated with these sites.

It has achieved a number of results at priority sites over the last year, including:

Overall, the pace of progress has been steady: the CPS has fully completed three of the four Sustainable Development Strategy 2001 commitments directed at contaminated sites management and has partially achieved the fourth. Major achievements include: consolidating CSP's inventory database; calculating liabilities and contingencies; drafting a contaminated sites management policy; and developing a detailed Contaminated Sites Management Framework to guide the CSP in the future.

That is not to say there have not been challenges in securing sufficient funding to support the increased level of responsibilities of the CSP continues to be a major concern. The rapid increase in liabilities from inherited abandoned mines, as well as ongoing liabilities from former military sites poses a challenge from both a financial and a human resources perspective.

Nevertheless, staff will continue to work towards effectively managing CSP's responsibilities. Issues that are priorities and next steps for the Program include:

This Performance Report gives readers an in-depth perspective on CSP's achievements over the past year, as well as on its goals for the years to come. To ensure continued improvement, I invite readers to provide comments and feedback on this report. Thank you for your interest in our Program.

James R. Moore
Assistant Deputy Minister
Northern Affairs Program
Indian and Northern Affairs Canada

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Executive Summary

Flags of Yukon, NWT and Nunavut

The Contaminated Sites Program (CSP) has been working to effectively manage its environmental and socio-economic responsibilities. This report details the CSP's achievements, successes and challenges to date. Its purpose is to apprise senior management of significant environmental and human health issues associated with contaminated sites in the North, to report on progress and to facilitate management decisions on issues of importance.

Over the past few years, the CSP has been making a concerted effort to manage its key impacts and improve its performance. There has been a major effort to develop a Contaminated Sites Policy and a Management Framework, which both currently awaiting approval. The basic element of the framework, has been developed, and over the next year the CSP will be moving to complete implementation of the core elements of the framework.

Significant work also went into information management in the past year, including developing the detailed CSP inventory database that includes pertinent information on each site under the CSP's responsibility, as well as calculating INAC's liabilities and contingencies by site. An important element to build into information management systems in the coming year is the systematic monitoring of social and economic benefits derived from the operations and activities of the CSP in the Regions.

Program committees, such as the Contaminated Sites Management Steering Committee (CSMSC) and the Contaminated Sites Management Working Team (CSMWT) have been established and met five times during the reporting period. These committees provide overall direction and are instrumental to the successful implementation of the CSP. Information management systems have been established to facilitate the flow of Regional information into the Performance Report process. This report represents the first full cycle of this newly established reporting process.

The report is divided into four major sections. The introductory section includes the executive summary, report coverage and a profile of the CSP's scale of operations. The management section describes the vision and strategy for the future, the importance of incorporating sustainable development into decision making processes and operations, the governance structure and program development. Then third section of the report focuses on specific objectives and progress achieved. Finally, the last section of the report addresses the future direction of the CSP in managing its liabilities.

Report Coverage

This report presents the results and outcomes of CSP's management of contaminated sites in Canada's three territories for the period ending March 31, 2002. This is the CSP's first annual Performance Report and therefore it also contains historical/contextual information that will not be included in future reports.




Profile of NAP Contaminated Sites Program

Small Yukon Map





Small NWT Map
The NAP CSP has responsibilities and obligations for managing contaminated sites in Canada's three territories - the Northwest Territories (NWT), Nunavut and the Yukon. Most contaminated sites in the North are located in remote areas, and result from former military sites, and abandoned and insolvent mines. Because most public lands in the three territories are federal Crown lands managed and administered by Indian and Northern Affairs Canada (INAC), land administration associated with some former military sites and abandoned mines reverts to INAC

In general, the transfer of administration of former military sites to INAC control occurred at a time when environmental regulations were non-existent or inadequate by current standards.The sites contained many contaminants unrecognized at that time, such as PCBs, hydrocarbons, lead and mercury. Some sites have contaminants at levels that may pose a risk to human health and safety, and/or the environment.

Small Nunavut Map

From 1997 to 2000, economic conditions caused major mines in Canada's territories to become insolvent, for example, Giant and Colomac Mines in the NWT and the Faro Mine in the Yukon, reverted to federal government responsibility through bankruptcy proceedings by their parent companies. Most of the bigger mine sites have become the responsibility of INAC as a result of insolvency of owners.

INAC is now responsible for 1,818 sites. Of these, 63 sites are known to contain contamination accounting for a total liability of $723 million; most of the liability is associated with 37 sites, which have accordingly been designated as high priority sites. Figure 1 illustrates the locations of priority sites in Canada's North.

NAP has been managing northern federal contaminated sites since 1991. Since 1999, however, when it inherited a number of large abandoned mines, that expanded the scope of the Program's activities and responsibilities has expanded considerably. Over $131 million has been directed to environmental site assessment, risk management and remediation over the last 11 years. As of March 31, 2002:

The CSP operates under one of INAC's key operating principles, which emphasizes:

A long-term focus seeking to preserve and enhance economic, social and natural capital in order to improve the quality of people's lives and to contribute a legacy for the future.

Consequently, priority is assigned to sites with:

CSP employs a team of 19 staff members, located at INAC in Gatineau, Quebec (2) and in three Regional offices, including NWT (12.5), Nunavut (1.5) and the Yukon (3).

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Vision and Strategy

Canada's vision for the North includes:

Fostering self-sufficient and prosperous regions in which Northerners manage their own affairs and make strong contributions to the federation.

Figure 1: Map of Priority Sites [Note 1].

Map of Northern Region

In addition, the Governor General's 2001 Speech from the Throne committed the government to strengthening its relationship with Aboriginal people and to strengthening Aboriginal entrepreneurial and business

expertise to ensuring a clean, healthy environment for Canadians; and to building strong and safe communities. [Note 2]

INAC is the principal federal department responsible for carrying out the federal government's vision and meeting its constitutional, political and legal responsibilities in the North, including responsibility for most of the North's natural resources. Accordingly, NAP is the custodian and resource manager for an area occupying 40 percentof Canada's land mass and 10 percent of its freshwater supply. INAC's role in the North is extremely broad and includes settling and implementing land claims, negotiating self-government agreements, advancing political evolution, managing natural resources, protecting the environment and fostering leadership in sustainable development both domestically and among circumpolar nations.

INAC's approach in managing these responsibilities is based on partnership and the principles of sustainable development. In 2001, INAC's second Sustainable Development Strategy (SDS)3 was tabled in Parliament and included four specific commitments related to contaminated sites as follows:

The CSP has fully completed three of these commitments and partially achieved the fourth. The prioritization system for contaminated sites was updated within the set time frame. In both July of 2000 and July of 2001, the CSP submitted comprehensive proposals to the Federal Contaminated Sites Assessment Initiative (FCSAI) to conduct Phase II/III environmental assessments.
These requests were funded in the amount just over $2.9 million. Using this money, 16 sites were assessed, (10 in 2000, and 6 in 2001). The PCB-contaminated soils project at Resolution Island has also been established. The only SDS commitment that has not been fully achieved is development of a Contaminated Sites Management Framework. However, a framework has been developed for submission for approval late in the Fall of 2002.

Consistent with the longer-term vision of NAP - to provide a safer and cleaner northern environment within the principles and practices of sustainable development is CSP's vision which states:

The CSP is committed to managing contaminated sites in a cost-effective and consistent manner, to reduce and eliminate, where possible, risk to human and environmental health and liability associated with these sites.

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NAP contaminated Sites Management

Program Governance Structure

The CSP is a decentralized program, with each Region responsible for implementing program policy through operational activities in their respective regions. By comparison, Headquarters provides policy direction and communications support, a performance management framework and standardized reporting systems. Overall responsibility for the CSP rests with the Deputy Minister, and decision making is conducted through a committee process in three key decisionmaking bodies. Figure 2 below illustrates the roles and relationships of the principle governing bodies.

photo of village

photo of regional operational activities

 

Figure 2: CSP Governance Structure

Graphic illustration of CSP Governance Structure

The key corporate governance body in the CSP is the Northern Management Committee (NMC). Chaired by the Assistant Deputy Minister (ADM) of Northern Affairs and comprising regional and sector Directors General and Directors, this committee brings together senior operational and financial executives. These executives are responsible for NAP, as well as for establishing and reviewing CSP policies and standards, and identifying and approving new policies and processes where required.

The NMC approves and funds plans which are then executed under the overall direction of the NAP Contaminated Sites Management Steering Committee (CSMSC) and the NAP Contaminated Sites Management Working Team (CSMWT) by committee members in their respective regions. During the 2001-02 reporting period, the CSMSC and the CSMWT met five times.

The CSP is implemented in the Regions, and primary line responsibility rests there, while Headquarters provides regional support and strategic direction. Headquarters is responsible for the CSP being implemented and managed in accordance with policy and program objectives, and for the CSP supporting departmental goals and horizontal initiatives where possible. Headquarters will also provide regular progress reports on implementation and management, monitor optimal delivery and management of the CSP and participate in regular audits and evaluations.

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Performance Measurement

Objectives

The CSP has established the following strategic objectives to guide its activities. These objectives relate to the broad direction for contaminated sites management provided by Treasury Board (see "Policy and Regulations" sub-section). The CSP's strategic objectives are:

All CSP planning is carried out in conformity with these strategic objectives and targets, including the long-term (25-year) management plan, annual work plans and project level plans. This performance report assesses the extent to which these objectives and targets are being met.

Photo of Northern Lights

Progress Achieved

Several factors influence the CSP's progress. The following factors have the greatest impact on the CSP in terms of establishing future direction and initiatives:

Environment, health and safety

The risk to health, safety and the environment 9s a major consideration; for example, contamination may migrate into the food chain or a community's water supply.

Legislative framework

While there is no comprehensive regulatory framework for contaminated sites at the federal level, there are a number of pieces of legislation that apply.

Policy framework

There is an evolving Treasury Board and departmental policy framework related to contaminated sites that requires specific approaches and deliverables.

Financial

Site contamination is not only costly to address, it has a significant effect on the value of an asset, from both a land value and development perspective.

Public awareness and confidence

A significant factor for dealing with contaminated sites is the concern of affected individuals and the general public, as well as the impact on the reputation of the Government of Canada if it does not handle contaminated sites in an appropriate manner.

Land use and claim obligations

The regime for determining the degree to which a site is "contaminated" is related to its land use; as a result, this factor often determines the approach taken, i.e., the standards of clean-up levels. Land claim agreements also contain specific commitments to remediate contaminated sites; if these commitments are not met, Aboriginal organizations may seek arbitration or court action.

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Future Directions

Performance Measurement cont'd

This is the Contaminated Sites Program's first annual Performance Report. It provides an overview of the CSP's evolution, as well as the progress the CSP has made in managing contaminated sites responsibilities. Approving and integrating the Contaminated Sites Management Framework into the existing structure of the CSP will be a significant challenge in the next year. It is also imperative that appropriate resources are allocated to ensure that the CSP responsibilities are met.

The CSP will be concentrating its future efforts in the following areas:

The CSP has developed a strong Management Framework that will provide the systems to minimize the environmental and health effects from the contaminated sites that are the INAC's responsibility. However, to continually improve performance and maintain effective management, the CSP will need to ensure the efficient and effective use of resources to adequately address the issues identified in this report.

If you have any questions about this report or require further information, please contact Joanna Ankersmit, Manager, Contaminated Sites Program at (819) 997-7247 or ankersmitj@ainc-inac.gc.ca

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Figure 3: Overview of Contaminated Sites Management Framework

Performance Measurement cont'd

Colomac Mine

Colomac Mine is an abandoned gold mine located northwest of Yellowknife in the Northwest Territories. INAC has been operating the mine in care and maintenance mode since 1999 when Royal Oak Mines became insolvent. The most significant issues at the mine are related to the tailings containment area (TCA). Since the mine shut down in 1997, the TCA, which was designed not to discharge to the environment, has been filling up with natural run-off and precipitation. Activities over the past two years have focused on avoiding an overflow of tailings water contaminated with cyanide, ammonia and metals. Care and maintenance costs over the last two years have been approximately $3 million per year.

Accomplishments achieved at Colomac during the reporting period cover a range of work, such as:

  • conducting baseline studies;
  • developing (with PWGSC) a detailed cost estimate for care and maintenance and remediation activities;
  • holding public hearings (February and May 2001) regarding the Colomac Water Licence; as well as regular consultation meetings with the Dogrib First Nation;
  • evaluating long-term water management options, e.g., capital and operating cost estimates have been developed for five water treatment alternatives;
  • facilitating a technical workshop in December 2001 to examine all of the alternatives for water management at the Colomac Mine. (The workshop led to detailed work plans for the investigations needed to arrive at a defensible selection of water management measures); conducting investigations to support selection of water management measures;
  • conducting investigations to support selection of water management measures;
  • Water Licence approval received November 2001;
  • construction of three ditches to divert clean water away from the tailings area;
  • general clean-up of reagents (lime, acid, etc.) and debris;
  • construction of berms around pits;
  • decontamination of 24 ATCO trailers and removal of Wayco buildings;
  • landfill cleaned and sorted;
  • established Surveillance Network Program (as part of the Water Licence) to take water quality samples from 38 stations, analyse and report results to the Water Board in an Annual Report; and
  • INAC has developed a strong partnership with the Dogrib community, who have been heavily involved in developing a remediation plan for the site.
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Performance Measurement (cont'd)

Priority Sites

As of March 31, 2002, there were a total of 1,818 sites in Northern Canada under Program management. Of these 1,818 sites:

Port Radium Mine

The abandoned Port Radium mine site is located on a peninsula on the eastern shore of Great Bear Lake in the Northwest Territories. Mining operations took place at Port Radium almost continuously between 1932 and 1982. Radium, uranium and silver ores were mined and milled at various times at this site. Past mining operations have raised community concerns about potential contamination of the environment and about Déline residents' exposure to radiation, both as traditional land users in the area and as labourers who handled the ore and concentrate bags at the site and at a portage along the Bear River. A three-year Action Plan was developed to describe the scope of activities and recommend studies that, when completed, will provide the information necessary to enable the Canada/Déline Uranium Table (CDUT) to make informed decisions about the long-term management of the Port Radium mine site. For example, a screening-level human health and ecological risk assessment was undertaken in 2001-02, along with ongoing community consultations to ensure community concerns are being addressed in an appropriate manner. The cost of the assessment and consultations amounted to over $1.7 million in the 2001-02 fiscal year.

The CSP has identified 63 sites as being contaminated. The 37 highest priority sites include abandoned mines (14), former military installations (22) and one other. The 63 priority sites are classified in Figure 4 below according to the CCME classification mentioned earlier:

Class 1: Action Required;
Class 2: Action Likely Required;
Class 3: Action May be Required;
Class N: Action Not Likely Required; and
Class I: Insufficient Information.

Figure 4: CCME Classification of Sites

Class Major Mines Mines DEW Line Military Non-DEW Line Other
  Colomac Giant Faro        
1 X X X 15 16 5 5
2       9 3 0 2
3       5 0 0 0
N       0 0 0 0
I       0 0 0 0
TOTAL       29 19 5 7

In setting priorities under the CCME system, the CSP's Management Framework employs the Northern Environmental Risk Assessment Strategy (NERAS), an internal NAP tool used to prioritize sites.

Based on the NERAS assessment of each site, plans, in the form of project planning and approval documents (PP&As), are developed and updated annually. These plans allows INAC to develop and approve options for each site, allocate and track resource expenditures per site on an annual and ongoing basis, and maintain a current inventory of funding requirements.

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Figure 5: CSP Ten-Step Flow Diagram

Performance Measurement cont'd

Figure 5 CSP Ten-Step Flow Diagram

However, a number of factors distinguish NAP's CSP from most other contaminated sites management programs in the federal government. Two of the most notable are: the need to have an ongoing presence at these sites to operate critical systems and monitor conditions and controls; and the need to obtain regulatory approvals with major environmental impact assessment and public consultation requirements to proceed with proposed remediation activities. To reflect these differences, NAP's PP&A for contaminated sites has integrated these additional activities into the ten-step process and requires program managers to describe completed and planned activities for all NCS 1 sites according to the following six components:

Care and Maintenance/Urgent Works - required at sites, primarily abandoned mines, where continual water treatment and maintenance work is essential to prevent migration of pollutants offsite, or to prevent structural failure, to protect human health and the environment, and to keep the liability from exponentially increasing. At times urgent work is required to immediately address an environmental risk.

On-site monitoring activities

Investigation and Assessment (CSMWG Steps 1 to 7) - necessary to determine and quantify risk, develop management options and produce cost estimates for management options.

Regulatory Approvals - obtaining permits and licences required to implement care and maintenance and longer-term management options, including remediation or risk management, at sites where it is known that action is needed. Public communication is a requirement of most regulatory activity.

Consultation - informing Northerners about site remediation options and integrating their views and concerns into options.

Remediation (CSMWG Step 8 and 9) - clean-up activities that contribute to the reduction of both liability and risk.

Monitoring (CSMWG11 Step 10) - monitoring activities to verify that contaminants are not migrating off site and that management options, whether temporary or longer term, are working.

Project Management - those activities employed to ensure the efficient and effective management of personnel and resources at the project level in support of overall Program objectives

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Figure 6: Current Status of Priority Class 1 Sites

Performance Measurement cont'd

Figure 6 below illustrates the status of priority - NCS Class 1 - contaminated sites according to the CSMWG ten-step process.

Site 1 2 3 4 5
Identify Site Histo-
rical Review
Initial Testing Classify
Site
Detailed Testing
Faro          
Mount Nansen          
Ketza River          
Clinton Creek          
Hydro-
metric Stations
         
Giant Mine          
Colomac Mine          
Port Radium          
Tundra - Taurcanis          
Silver Bear Mines (4)          
Kittigazuit Bay          
Contact Lake Mine          
Discovery Mine          
Atkinson Point          
Tununuk
Axe Point          
Radio Island          
Resolution Island          
Bear Island          
Padloping Island          
Ekalugad Fjord          
Durban Island          
Cape Christian          
Nadluardjuk Lake          
Bray Island          
Keith Bay          
Simpson Lake          
Rowley Island          
Roberts Bay Mine          
Cape Peel          
Ross Point          
Bernard Harbour          
Clifton Point          
Sarcpa Lake          
         
: Completed    
: In Progress    


Site 6 7 8 9 10
Reclassify
Site
Develop Remediation
Risk Mgt. Strategy
Implement
Strategy
Confirmatory
Sampling & Final Report
Long-
term Moni-
toring
Faro          
Mount Nansen          
Ketza River          
Clinton Creek          
Hydro-
metric Stations
         
Giant Mine          
Colomac Mine          
Port Radium          
Tundra - Taurcanis          
Silver Bear Mines (4)          
Kittigazuit Bay          
Contact Lake Mine          
Discovery Mine          
Atkinson Point          
Tununuk          
Axe Point          
Radio Island          
Resolution Island          
Bear Island          
Padloping Island          
Ekalugad Fjord          
Durban Island          
Cape Christian          
Nadluardjuk Lake          
Bray Island          
Keith Bay          
Simpson Lake          
Rowley Island          
Roberts Bay Mine          
Cape Peel          
Ross Point          
Bernard Harbour          
Clifton Point          
Sarcpa Lake          
           
: Completed    
: In Progress    

Current activities vary slightly depending on regional and site-specific conditions. In the Yukon, the focus is on addressing the major mining properties that pose an imminent risk to human health and the environment. In Nunavut, the focus is on addressing military sites, particularly DEW Line sites. In the NWT, the major activities address both mines and military sites.

Care and maintenance projects are ongoing at three Class 1 sites in the Yukon and three sites in the NWT. Urgent works projects were necessary at one site in the Yukon and three in the NWT. Regulatory approvals have successfully been obtained for necessary work at Faro Mine and Mount Nansen (Yukon), as well as the Giant Mine and Port Radium (NWT). To date consultations have taken place at four Class 1 sites - Faro Mine, Giant Mine, Port Radium and Resolution Island. At present there is no standard approach to regulatory approvals and consultations between or within Regions. NAP initiated action at a number of the major mines on an emergency basis under the authority of the respective Water Acts. The status of the INAC from a regulatory perspective under these situations is complex, and CSP staff have sought legal advice to establish guidelines for moving sites from this status to one more suited to ongoing management.

FARO MINE

The Faro Mine consists of waste rock dumps, ore processing facilities, water treatment plants, tailings disposal facilities, and offices, shops and miscellaneous buildings. The Faro Mine began operations in 1969 and was one of the largest open-pit lead and zinc mines of its day. It was later mined underground. Mining continued, with interruptions, until 1998 when the operator, Anvil Range Mining Corporation, declared bankruptcy. Currently a receiver, Deloitte and Touche Inc., is managing the site with funding from INAC. Legal challenges by creditors are preventing the receiver from selling off remaining assets and declaring the site abandoned.

Significant care and maintenance activities took place in the last year at Faro to prevent the discharge of contaminated water. These activities include pumping and treating water from the pit mines, environmental monitoring programs (physical stability, biological activity, water quality), site management and reporting, maintenance to physical structures, and all related activities. Performance of these activities provides environmental protection to the surrounding environment and follows the terms of the water licences. Over $3.2 million was spent during the reporting period on care and maintenance activities. Site remediation activities also took place, including a Phase 1 assessment of the site and a number of projects that gathered and contributed information related to final closure / abandonment plans as well as a risk-based priority list for future activities. The cost of these activities amounted to $1.6 million.

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Performance Measurement (cont'd)

GIANT MINE

The Giant Mine is situated five kilometres north of Yellowknife, within city limits, adjacent to Great Slave Lake along the western shore of Yellowknife Bay. The mine has operated nearly continuously since 1948 and included underground, as well as open pit mining operations. Miramar Giant Mine Ltd (MGML) is currently operating at the site, however, due to historical issues, the federal government retains responsibility for pre-existing environmental liabilities on the property prior to MGML operations.

Previous ore processing at the site resulted in the production of over two million tonnes of tailings. Tailings from the first years of operations were discharged in an uncontrolled area and/or into Yellowknife Bay, where they remain. Subsequently, most of the tailings were stored on the surface in four ponds covering approximately 150 hectares. Arsenic trioxide dust was another by-product of the ore processing and approximately 237,000 tonnes of the dust is stored underground.

Screening level risk assessments evaluating the human health risks associated with the underground arsenic trioxide dust and the contaminated soils have taken place at the Giant Mine site. A number of consultations have also taken place, including: three major arsenic management technical sessions (1997, 1999, 2001); a number of open houses and public sessions (with special attention to the aboriginal community in the Yellowknife area); as well as the publication of a number of both technical and public information packages. During the 2001-2002 fiscal year a variety of work has been conducted at the Giant Mine site, including:

  • Care and maintenance - $1.2 million spent;
  • Regulatory approvals - $100,000 spent;
  • Public consultations - $100,000 spent;
  • Site investigation and assessment - $1.7 million spent;
  • Site remediation - $600,000 spent; and
  • Monitoring - $50,000 spent.

Financial Report

Since 1991, INAC has been systematically identifying, assessing and managing contaminated sites north of 60° latitude. From 1991-96, the majority of funds were obtained from the Arctic Environmental Strategy and devoted to developing an inventory of contaminated and waste sites across the North, as well as to addressing a large number of the unsightly waste sites near communities. A number of environmental site assessments were carried out, primarily at former military installations, such as the DEW Line sites.

Initially, INAC's concerns related mainly to DEW Line sites. However, INAC was only able to fund assessments and two site remediations for DEW Line sites. The focus has, therefore, continued to be on maintenance activities.

In fiscal year 1996-97 the focus began to shift from assessment to remediation of the most contaminated military sites. External circumstances also caused a shift in the focus from DEW Line sites to mine sites. Figure 7 below illustrates how, over time, expenditures have shifted significantly to mines, which have become the highest proportion of CSP expenditures. The shift in resource allocations to mine sites has meant that the DEW Line sites are deteriorating further.


Figure 7: Historical Expenditure by Type of Site, 1998-02

Historical Expenditure by Type of Site, 1998-02

Since fiscal year 1991-92, over $130 million has been spent on contaminated sites; almost $70 million of this amount has been spent since 1998-99 when responsibility for large insolvent mines began to revert to INAC. The major mines, including Giant, Colomac and Faro, have more than tripled the resource requirements of the CSP over the past three years. The insolvency of the mine owners precludes further action to recover costs of remediation. In addition to the significant costs of final remediation, each of these sites requires ongoing expenditures for maintenance activities. Figures on the following pages illustrate expenditures by Region (see Figure 8), as well as by the proportion of expenditures for large mines (see Figure 9), and a breakdown of expenditures by site (see Figure 10).

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Figure 8: CSP Management Expenditures by Region, 1991-2002

Performance Measurement cont'd

Fiscal Year NWT Yukon Nunavut Total
1991 to 1992 $3,074,000   $560,000 $3,634,000
1992 to 1993 $2,911,000   $1,871,000 $4,782,000
1993 to 1994 $8,050,000   $2,948,000 $10,998,000
1994 to 1995 $9,138,000   $2,320,000 $11,458,000
1995 to 1996 $7,283,000   $2,329,000 $9,612,000
1996 to 1997 $9,265,000   $4,770,000 $14,035,000
1997 to 1998 $6,162,000   $1,403,000 $7,565,000
1998 to 1999 $9,027,000   $1,255,000 $10,282,000
1999 to 2000 $7,328,747   $2,540,000 $9,868,747
2000 to 2001 $7,235,700 $10,018,000 $4,885,907 $22,139,607
2001 to 2002 $14,226,298 $8,419,695 $4,574,607 $27,220,600
Total $83,700,745 $38,433,695 $9,460,514 $131,594,954

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Figure 9: Share of Total Expenditures by Type of Site, 1998-02

Share of Total Expenditures by Type of Site, 1998-02

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Figure 10: Management Expenditures by Site, 2001-02

Site Name Spent Type of Activity
Faro Mine $8,263,000 C&M*, UW**, Assessment, Remediation
Giant Mine $5,218,000 C&M, UW, Assessment, Remediation
Colomac $5,382,455 C&M, Assessment, Remediation
Mount Nansen $2,050,000 C&M, UW, Assessment
Port Radium $1,775,000 Assessment
UKHM $850,000 C&M
Resolution Island $4,235,202 Remediation
Ketza River $125,000 Assessment
Clinton Creek $140,000 Assessment
Cape Christian $91,905 Assessment
Radio Island $83,000 Assessment
Padloping Island $91,500 Assessment
Bear Island $73,000 Assessment
Axe Point $152,694 Assessment
Rayrock Mine $206,000 Monitoring
Contact Lake $11,043 C&M
Arctic Gold & Silver $24,000 Monitoring
Peel River $986,000 Remediation
Brooks Brook $77,000 Remediation
Snag $5,000 Monitoring
Venus Tailings $2,000 Monitoring
Cat & Grainger Camp $464,374 Assessment
Tundra Mine $135,000 UW
Discovery $90,000 Monitoring
Total $30,531,173 6 C&M 4 UW; 13 Assessment;

6 Remediation; 5 Monitoring

* C&M = care and maintenance

INAC has never received resources sufficient to deal with all remediation costs related to its full portfolio of contaminated sites. The current liability of the department for maintenance and remediation of all known contaminated sites stands at approximately $723 million; for contingent liability estimates stand at approximately $79 million (March 2002). Figure 11 illustrates liability and contingency costs by Region. For all 63 known contaminated sites for which INAC is responsible, most of the total liability of $723 million is associated with 37 high-priority sites: five sites in particular - Faro Mine (Yukon); Giant, Colomac, Port Radium (NWT), and Resolution Island (Nunavut) - account for over 70 percent of the total liability.

Of necessity, the majority of CSP funds are spent on maintenance, even as new liabilities occur from new site assessments, and new mine sites are also added to the inventory. Figure 12 illustrates the budget forecast for the 2002-03 fiscal year, which shows that maintenance absorbs a higher percentage of the budget than remediation.

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Figure 11: Liability and Contingency by Region

Performance Measurement cont'd

Region Estimated Cost of Evaluation
and Remediation
  Liability Contingency
Yukon $226,851,400 $55,042,000
NWT $341,730,000 $24,350,000
Nunavut $154,653,000 $0
Total $723,234,400 $79,392,000

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Figure 12: Budget Forecast by Activity 2002-2003

Budget Forecast by Activity 2002-03

Sources of funds for CSP activities between 1999 and 2002 are shown in Figure 13 below. A-Base funding was not provided after the end of the Artic Environmental Strategy, therefore, INAC has had to reallocate much of the CSP's funding from its Indian and Inuit Affairs Program to deal with the environmental and human health risks posed by contaminated sites. TBS's Federal Contaminated Sites Assessment Initiative (FCSAI) did provide an injection of funds over the 2000-02 fiscal years. However, in fiscal year 2002-03, it is estimated that the majority of funding will have to come from internal allocations. Yearly internal negotiations and concerns about the impact on other programs limit INAC's ability to fully fund the CSP. The funding that is available leads to minimal efforts that address only the highest priorities and most urgent situations. Developing an effective risk-based approach to program delivery requires a predictable and programmed level of funding.

Historically, funding has been allocated to the CSP based on need, either by annual funding requests to TBS or internal reallocations within INAC. Annual negotiations and the uncertain access to funding have created concerns about the cost-effectiveness of program delivery.

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Figure 13: Source of Funds 1999-02

Source 1999-2000 2000-2001 2001-2002 Total
FMC (Internal Reallocation) $9,868,747 $21,139,607 $8,621,000 $65,047,454
Program Integrity $0 $0 $19,023,435 $24,262,000
FCSAI $0 $1,000,000 $1,925,000 $2,925,000
TOTAL $9,868,747 $22,139,607 $ 29,569,435 $92,234,454


Resolution Island

Resolution Island is located at the southeastern tip of Baffin Island, approximately 310 kilometres southeast of Iqaluit, in Nunavut. It was originally part of the Pole Vault Line, used to transmit intercepted northern signals to southern military stations. The site was operated from 1953 to 1972, when the U.S. Air Force vacated the site. Over 20 buildings, eight dump sites, 4,000 barrels and large amounts of visible debris were left on site. A series of environmental assessments conducted from 1985 to 1997 identified and delineated significant contamination on the site. Included in the types of contamination were polychlorinated biphenyls (PCBs), asbestos, hydrocarbons, lead, cobalt, mercury and copper.

The Contaminated Sites Program has initiated an extensive remediation project at Resolution Island. Working with its partners, the various types of remediation activities being undertaken include:

  • excavation, containerization and temporary storage of soil contaminated by heavy metals and excavat PCBs;
  • construction and monitoring of barriers to prevent PCB migration;
  • demolition of buildings that are unsafe, contain asbestos or are contaminated with PCBs; and demolition
  • collection and removal off-site of PCB liquids and other contaminated materials.

Community consultations have been an important part of the project and will continue to be an important forum for informing the communities closest to Resolution Island of INAC's progress and developments at the island.



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Footnotes

  1. Priority sites map developed from CSP database inventory.(return to source paragraph)

  2. Governor General's Speech from the Throne to open the first session of the 37th Parliament of Canada, January 30, 2001, Ottawa.(return to source paragraph)
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