Water Resources Division

Qimugjuk Building

P.O. Box 2200

Iqaluit, Nunavut
X0A 0H0	Your file - Votre référence

Tel: (867) 975-4548	NWB1BOS9801

Our file - Notre référence

July 24, 2001

Andrea Carter

A/Licensing Administrator

Nunavut Water Board

P.O. Box 119

Gjoa Haven, Nunavut

X0B 1J0

Dear Ms. Carter:

Re: Hope Bay Joint Venture - Renewal

The Water Resources Division has reviewed the written submission regarding the renewal application for water licence NWB1BOS9801 . The position of the Department of Indian Affairs and Northern Development ( DIAND ) remains unchanged. This letter will serve as a response to the other submissions received by the Board.

The position of the interveners on the subject of acid rock drainage ( ARD ) and metal leaching appears to be unified. There is a lack of understanding of the ARD potential of the material stored on surface and the evident metal leaching. Existing data from the Licensee suggests that the stored rock is leaching metals, possibly in neutral conditions, and that the neutralization potential of the ore may be decreased by the presence of iron carbonates. The report submitted by the KIA also eludes to these problems and recommends that a correction be applied to the acid-base accounting results to provide a greater understanding of the actual neutralization potential.

It is essential that the Licensee take measures to fully understand the long term ARD potential at this site and develop methods to mitigate the impacts of this and metal leaching. Consistent with other interveners, DIAND recommends further analysis to ensure adequate knowledge is available to evaluate the conditions of this site and develop effective monitoring and site management plans.

In terms of the security deposit, the KIA states that the conditions were intended to avoid the possibility that a "licensee on private land might have to post security both with the landowner and with the Crown under a water licence". This is precisely the point DIAND is trying to make - the NWB has no authority to require a licensee to post security for damages to private land under a water licence. That is the responsibility of the land owner, i.e. the KIA, and not the NWB, as part of a commercial transaction between two private parties. In addition, there appears to be an incorrect assumption that the water licence security would only be used to compensate the KIA and DIAND. This security is also available to compensate any person adversely affected by the issuance of the water licence, ss.17(2) of the Northwest Territories Waters Act. There is no evidence before the NWB that it has the authority to impose the conditions that it has concerning the security deposit.

Should you have any questions or comments, please do not hesitate to contact me at the number above or by e-mail at johnsonmi@inac.gc.ca.

Sincerely,

Michelle Johnson

Kivalliq/Kitikmeot Regional Coordinator