Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11 Town of the Blue Mountains OS OS February 2010

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Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11 Town of the Blue Mountains OS-08-060-41-OS February 2010 Prepared for: Mr. Dennis Breadner RR1 Clarksburg, ON N0H 1J0 Prepared by: GENIVAR Consultants LP 945 Third Avenue East, Suite 212 Owen Sound, Ontario N4K 2K8 Project No. OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 Table of Contents 1.0 INTRODUCTION...1-1 2.0 HYDROGEOLOGICAL SETTING...2-1 2.1 Site Description...2-1 2.2 Geological Mapping...2-2 2.3 Water Well Records...2-2 2.4 Field Reconnaissance for Water Wells...2-3 3.0 INVESTIGATION PROCEDURE...3-1 3.1 Initial Groundwater Level Monitoring...3-1 3.2 Test Pit Investigation...3-2 3.3 Additional Groundwater Level Monitoring...3-3 4.0 SUBSURFACE SOIL CONDITIONS...4-1 5.0 GROUNDWATER CONDITIONS...5-1 6.0 DISCUSSION...6-1 7.0 SUMMARY...7-1 8.0 LIMITATIONS...8-1 List of Tables Table 1 Summary of Water Level Data Table 2 Summary of Test Pit Conditions List of Figures Figure 1 Well Location Plan Figure 2 Site Plan Figure 3 Sections A-A and B-B Figure 4 Groundwater Contours Appendices Appendix A Ministry of Environment Well Record Summary and Individual Well Records Appendix B Borehole Logs and Water Level Data for the Adjacent Property to the South GENIVAR OS-08-060-41-OS i

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 1.0 Introduction Henderson Paddon & Associates (HPA), A Division of GENIVAR Consultants LP (GENIVAR), was retained by Mr. Dennis Breadner to carry out an investigation to assess the existing water table elevation at a property currently proposed for aggregate extraction operations. The subject property that would contain the proposed pit is described as Part Lot 28, Concession 11 in the Geographic Township of Collingwood, now in the Town of the Blue Mountains, Ontario. The location of the proposed pit is shown on Figure 1. It was understood that a Class A Licence, Category 3, under the Aggregate Resources Act was proposed for the subject property. Under Category 3, the pit operation is restricted to extracting aggregate material no closer than 1.5 metres above the established groundwater table. The Ministry of Natural Resources (MNR) defines the groundwater table as the surface of an unconfined water-bearing zone at which the fluid pressure in the unconsolidated medium is atmospheric. Generally, the groundwater table is the top of the saturated zone. If an applicant wishes to operate a gravel pit to excavate aggregate closer than 1.5 metres to the water table, then this type of extraction would generally be considered a below water application and would be licensed as a Category 1. A work plan for the proposed investigation was provided in a letter from GENIVAR to Mr. Breadner dated December 23, 2008. Written authorization to proceed with the investigation was provided by Mr. Breadner on January 12, 2009. GENIVAR OS-08-060-41-OS 1-1

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 2.0 Hydrogeological Setting 2.1 Site Description The subject property is located on the west side of Grey Road 13, approximately 1 kilometre southwest of the community of Clarksburg. Initially, an area of approximately 11.2 hectares (hereafter referred to as the Site) comprising approximately the eastern two-thirds of the subject property, on the east side of the Beaver River, was identified to GENIVAR by Cuesta Planning Consultants Inc. as the proposed area for aggregate extraction and this area was the subject of this investigation. The limits of the Site are shown on Figure 1. Subsequently, a slightly smaller area for the proposed aggregate extraction licence was identified to GENIVAR by Mr. Breadner. This area is shown on Figure 2. The Site is presently used for an apple orchard and we understand that the Site will be returned to use as an apple orchard after aggregate extraction. We understand that Mr. Breadner also owns a separate property located east of the Site and west of Grey Road 13, also legally described as Part Lot 28, Concession 11, Geographic Township of Collingwood, and municipally identified as 788227 Grey Road 13. That property contains Mr. Breadner s house and shop. The Beaver River generally flows from north to south, west of the Site. At its closest point, the Beaver River is located approximately 30 metres northwest of the northwest corner of the Site and approximately 220 metres northwest of the area proposed for aggregate extraction. Topographic mapping indicated that the Beaver River west of the Site is at approximate elevation 215 metres. Contours shown on Ontario Base Mapping (1:10,000 scale) indicated that the ground surface at the Site is highest in the western portion, at approximate elevation 235 metres. To the west, the ground surface slopes down toward the river. To the east, the ground surface slopes more gradually to an elevation of approximately 222.5 metres at the eastern margin of the Site. As shown on Figure 2, the western portion of the Site is bordered to the north by an existing gravel pit, operated by E.C. King Contracting Ltd. The eastern portion of the Site is bordered to the north by an existing orchard, in an area where it is understood that near surface gravel was previously extracted. To the east, the Site is bordered by an existing orchard owned by Mr. Breadner. To the west, the Site is bordered by the treed valley slope associated with the Beaver River. To the south, the Site is bordered by predominantly agricultural properties. The wastewater lagoons for an apple processing facility (Apple Valley Juice LP) are located on the property immediately south of the Site. These lagoons are associated with a processing facility located further to the south and accessed from Grey County Road 40. Until approximately June 2009, this facility and the associated lagoons were operated by Apple Valley Juice LP (Apple Valley). GENIVAR OS-08-060-41-OS 2-1

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 2.2 Geological Mapping The Site is located within the Beaver Valley physiographic region identified by Chapman and Putnam ("The Physiography of Southern Ontario", Third Edition, 1984). The authors noted that the Beaver Valley exhibits considerable complexity of landforms including lake plains, beaches, moraines, steep valley sides and vertical cliffs. The quaternary geology in the vicinity of the Site was mapped on Ontario Geological Survey Preliminary Map P.919, Quaternary Geology of the Collingwood-Nottawasaga Area (G.J. Burwasser, 1974). That mapping indicated that near-surface soils at the Site consist predominantly of glaciolacustrine deposits of sandy gravel. Beach ridges and/or near-shore bars of previous lake stages were shown crossing the Site in a northwest-southeast orientation. The bedrock beneath the Site is mapped as Lucas Formation dolomite associated with the Detroit River Group. Bedrock topography mapping indicated that the overburden thickness was approximately 23 metres in the vicinity of the Site. 2.3 Water Well Records In conjunction with this investigation, a request was submitted to the Ministry of the Environment (MOE) for a summary of provincial water well records from the water well information system (WWIS) for an area consisting of Lots 28 and 29 of Concessions 10, 11, and 12 in the Geographic Township of Collingwood. This search area encompassed the area located within approximately 500 metres of the Site boundaries. A copy of the well computer print out data summary is provided in Appendix A. The locations of the wells, based on the coordinates provided from the WWIS, are shown on Figure 1. The water well records search identified eight wells located within 500 metres of the Site. The locations of these wells are shown on Figure 1, together with the associated MOE well identification number. None of the records were associated with an on-site well. Three shallow, bored wells were identified at locations approximately 60 to 230 metres south of the Site (MOE well numbers 2507577, 2507578, 2507579). These wells were inferred to be associated with the apple processing facility located south of the Site and information provided to GENIVAR by a representative of Apple Valley indicated that the wells were actually located immediately north of the main building. Copies of the well records associated with these wells were requested from the MOE and are included in Appendix A. The records indicated that the wells were completed at depths ranging from 7.6 GENIVAR OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 to 9.8 metres. The more northerly and westerly two wells (2507578 and 2507579) reportedly encountered gravel to depths of 4.6 metres (15 feet), below which the wells encountered clayey soils. The wells were terminated in the clay at depths of 9.8 and 7.6 metres. The static water level in those two wells in June 1981 reportedly occurred at depths of 4.0 and 3.0 metres below ground surface, respectively. The southernmost of the three shallow bored wells (2507577) reportedly encountered gravel to a depth of 1.5 metres, underlain by sandy clay to a depth of 5.2 metres. Below the sandy clay, the third well reportedly encountered sand to 7.6 metres depth, underlain by clayey soil to a depth of 9.8 metres where the well was terminated. The static water level reportedly occurred at a depth of 6.4 metres in April 1981. A representative of Apple Valley indicated to GENIVAR that these three wells were previously abandoned, and that the water supply for the Apple Valley facility is currently obtained from the Beaver River. Two wells located further south (MOE well number 2511642) and southeast (MOE well number 2508910) of the Site were reportedly completed in sand and gravel strata within the overburden at depths of 25.0 and 17.1 metres, respectively. Information obtained by GENIVAR indicated that MOE well number 2511642 was associated with the Grey County Roads Department facility and it was inferred that the actual well location is west of the location recorded in the WWIS. Additional comments on MOE well number 2508910 are provided in the subsequent section of this report. The three wells located approximately 400 to 500 metres northeast of the Site were all reportedly completed in sand and gravel strata within the overburden at a depth of approximately 22 metres. 2.4 Field Reconnaissance for Water Wells Additional information on water wells in the vicinity of the Site was obtained by GENIVAR based on discussions with Mr. Breadner, adjacent property owners, and a field reconnaissance by GENIVAR. The approximate locations of the identified wells are shown on Figure 1. Two wells were identified on the Breadner property. The water supply for the Breadner house and shop, located east of the Site, is obtained from a shallow dug well located south of the house. This well was used in this assessment for water level monitoring and was identified as DB Well 1. The location of DB Well 1 is shown on Figure 2. Additional information on this well is provided in Section 3.1. A shallow dug well is located on the east side of the "bunkhouse" on the Breadner property, east of the Site, and is used for water supply for orchard workers. Three shallow wells were identified on the adjacent property to the north, which was not associated with a municipal number. This property is owned by Mr. J. Ardiel. Based on information provided to GENIVAR GENIVAR OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 by Mr. Ardiel, a dug well was identified in the north-central portion of the property that was used for irrigation water supply. A shallow dug well was also identified near the northeast corner of the property that was not in use. These wells were identified as JA Well 1 and JA Well 2, respectively, and were used in this assessment for water level monitoring (see Figure 2). Additional information on these wells is provided in Section 3.1. Based on information provided to GENIVAR by Mr. Breadner, who contacted the tenants, a shallow dug well is located on the west side of the house on the adjacent property to the north and is used for water supply for the house. One well was identified on the property at 788223 Grey Road 13, located approximately 200 metres east of the southeast corner of the Site. Observations from the Breadner property indicated that this well was located on the west side of the existing house at 788223 Grey Road 13. Information provided to GENIVAR by Mr. Breadner indicated that this was a drilled well approximately 23 metres deep. No MOE well record was identified for this well. Two water supply wells were identified on the adjacent property to the south of the Site, at 788201 Grey Road 13. Information on these wells was provided to GENIVAR by Mr. Breadner, based on his correspondence with the property owner. The locations of the wells were identified by GENIVAR based on field GPS measurements. Both a shallow dug well and a deeper drilled well were identified on this property. The dug well was reported to be approximately 7.3 metres in depth and was not in use at the time of the assessment. The drilled well was reportedly used for water supply for the house and farm buildings on the property. GENIVAR associated this well with MOE well number 2508910, and a copy of the well record is included in Appendix A. The field-measured location of this well was approximately 150 metres northwest of the location recorded in the WWIS, and the location shown on Figure 1 was adjusted accordingly. The well record indicated that this well encountered approximately 3.0 metres of sand and sand and gravel which was underlain by clayey soils to a depth of approximately 8.2 metres. The well was reportedly completed in a sand and gravel stratum at a depth of approximately 17.1 metres. GENIVAR OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 3.0 Investigation Procedure 3.1 Initial Groundwater Level Monitoring To assess the level of the groundwater table beneath the Site, water level monitoring was carried out using existing wells. Initially, four wells were identified for water level monitoring, described as follows: A monitoring well located near the south property boundary in the western portion of the Site. This monitoring well was reportedly installed on the Site by a consultant acting for the apple processing company located further to the south and was used for groundwater effects monitoring in conjunction with the operation of the wastewater lagoons on the adjacent property to the south. A borehole log for the monitoring well was obtained from Apple Valley Juice LP on December 2, 2008 and a copy of the log is included in Appendix B. The log identified the monitoring well as borehole 9 and indicated that it was installed by Terraprobe for Georgian Triangle Apples in June 1996. According to the log, the borehole was advanced to a depth of approximately 6.55 metres, encountering 2.2 metres of sand and gravel overlying clayey silt. The log indicated that the monitoring well was installed to a depth of approximately 2.7 metres, and was screened over the interface between the sand and gravel and the underlying clayey silt. The borehole log indicated that the groundwater level in the monitoring well was at a depth of 1.2 metres below ground surface on June 13, 1996. Additional information provided to GENIVAR by the consultant for Apple Valley, C.C. Tatham & Associates Ltd. (Tatham), indicated that this monitoring well had been re-designated as borehole 3 or monitoring well 3. For this assessment, this monitoring well was referred to as MW 3. The water supply well for the Breadner house, located east of the Site and identified as DB Well 1. The domestic well was located on the south side of the house, as shown on Figure 2. Mr. Breadner indicated that this was a relatively shallow dug well completed in the near surface granular soils. No water well record was identified for this well. An irrigation water supply well located on the adjacent property to the north, owned by Mr. J. Ardiel. Mr. Ardiel indicated that this was a dug well approximately 7.6 metres (25 feet) deep and constructed with concrete tiles. It was understood that this well is used seasonally for irrigation. This well was identified as JA Well 1. A second, relatively shallow well located on the adjacent property to the north. This well was not in use for water supply at the time of the investigation. According to Mr. Ardiel, this well consisted of a large-diameter, vertical steel tank-like section installed by excavation. This well was identified as JA Well 2. GENIVAR OS-08-060-41-OS 3-1

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 The well locations and elevations were determined by GENIVAR staff using GPS survey equipment on April 9, 2009. The elevations were referenced to a benchmark identified as Station 0011972U299 and described as "Highway No. 26 concrete bridge over Beaver River in town, tablet in east face of southwest concrete retaining wall, 1.92 m below top of steel guard rail and 66 cm north of south end of wall". The elevation of this benchmark was understood to be 187.695 metres, relative to geodetic datum. At the time of the survey, on April 9, 2009, water level elevations of ponded water contained within excavations in the adjacent gravel pit to the north were determined as were ground surface elevations at selected locations. In addition, the water level elevation of the Beaver River was determined at a location adjacent to Grey County Road 40, southwest of the Site. Ground surface elevations were also determined over a grid pattern in the eastern portion of the Site. Ground surface contours inferred from the survey data are shown on Figure 2. Groundwater levels were initially measured in the wells described above by GENIVAR staff on February 18 and April 9, 2009. The associated groundwater elevations are shown in Table 1. 3.2 Test Pit Investigation To further assess the subsurface soil conditions in the southwest portion of the Site, two test pits were excavated on July 14, 2009. The approximate locations of the test pits, identified as HPA TP 1 and HPA TP 2, are shown on Figure 2. The test pits were excavated with a tracked excavator supplied and operated by E.C. King Contracting. Soil and groundwater conditions in the test pits were observed and recorded by a representative of GENIVAR. The soil and groundwater conditions encountered in the test pits are summarized in Table 2. Approximate ground surface elevations at the test pit locations were inferred from the Site survey carried out by GENIVAR on April 9, 2009. Additional information on subsurface soil conditions at the Site was obtained from Mr. Breadner based on his notes from investigative test pits excavated on May 30, 2008. Mr. Breadner indicated that four test pits were excavated on that date using an excavator supplied and operated by E.C. King Contracting. The approximate locations of two of these test pits, designated DB TP 1 and DB TP 2, were obtained by GENIVAR based on field GPS measurements referenced to shallow standpipes installed in the test pits. The approximate location of a third test pit, designated DB TP 4, was inferred from the notes recorded by Mr. Breadner. The approximate locations of these test pits are shown on Figure 2. The fourth test pit was reportedly located northwest of the area currently proposed for aggregate extraction (generally north of MW 3) and is not shown on Figure 2. Approximate ground surface elevations at the test pit locations were inferred from the Site survey carried out by GENIVAR on April 9, 2009. GENIVAR OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 3.3 Additional Groundwater Level Monitoring To augment the groundwater level monitoring data for the southwest portion of the Site (i.e., MW 3), water level monitoring data for a series of monitoring wells located south of the Site was requested from Apple Valley. Water level data and information on those monitoring wells was provided to GENIVAR by Tatham on behalf of Apple Valley. The information provided indicated that six monitoring wells were installed at four locations around the perimeter of the wastewater treatment lagoons in 1996. One of those monitoring wells was the previously mentioned MW 3. The other monitoring wells were originally identified as boreholes 5a, 5b, 6, 8a and 8b and were subsequently identified by Tatham as BH or MW 1A, 1B, 2, 4B and 4A, respectively. Paired monitors (upper and lower) were installed by at the locations of MW 1 and MW 4. Copies of the borehole logs for these monitoring wells are provided in Appendix B. Groundwater level monitoring data for these monitoring wells were provided for three dates in 1996 (June 5, June 13 and September 17) and for two occasions in 2008 (June 27 and July 9). These data are summarized in Table B-1 in Appendix B. With the permission of the adjacent property owner to the south, provided to Mr. Breadner, GENIVAR measured the water levels in the off-site monitoring wells on August 12, 2009. These data are included in Table B-1. On the same date, water levels were also measured in the on-site monitoring well MW 3, the Breadner house well (DB Well 1), and the irrigation well on the adjacent property to the north (JA Well 1). These data are included in Table 1. JA Well 2 could not be located at the time of the August 12, 2009 monitoring event. GENIVAR OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 4.0 Subsurface Soil Conditions HPA test pits 1 and 2, excavated on July 14, 2009, encountered approximately 0.2 metres of surficial topsoil. Beneath the topsoil, HPA TP 1 encountered predominantly sand and gravel to a depth of approximately 4.0 metres below ground surface. HPA TP 2 encountered predominantly sand and gravel to a depth of approximately 3.4 metres below ground surface. Beneath the sand and gravel, both test pits encountered and were terminated in a stratum of silty clay. Based on the inferred ground surface elevations at the test pit locations, the silty clay stratum was encountered at approximate elevation 227.2 metres in HPA TP 1 and 227.5 metres in HPA TP 2. The borehole log for MW 3, located west of HPA TP 1 and south of HPA TP 2, indicated that a stratum of clayey silt was encountered beneath the surficial sand and gravel at that location at approximate elevation 229.1 metres. Based on the information provided to GENIVAR by Mr. Breadner, the following provides a general summary of the soil conditions encountered in the test pits excavated on the Site in May 2008. Breadner Test Pit Location Inferred Ground Elevation (m) Thickness of Sand & Gravel (m) DB TP 1 225.9 > 3.4 DB TP 2 228.8 2.7 DB TP 4 225.0 3.3 The sand and gravel encountered in the test pits was reportedly underlain by predominantly clayey soils. It is our understanding that it is Mr. Breadner's intention to extract the upper sand and gravel from above the silty clay / clayey silt stratum. The ground surface profile and the soil conditions encountered in the test pits and boreholes are shown on the subsurface cross-sections on Figure 3. The locations of the sections are shown on Figure 2. GENIVAR OS-08-060-41-OS 4-1

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 5.0 Groundwater Conditions As shown in Table 1, the identified groundwater level elevations for DB Well 1, JA Well 1 and JA Well 2 were generally similar for the monitoring events on February 18 and April 9, 2009. On February 18, 2009, the groundwater elevations at these three locations ranged from 220.16 metres at DB Well 1 to 218.02 metres at JA Well 2. On April 9, 2009, the groundwater elevations at these three locations were similar to February 18 and ranged from 220.19 metres at DB Well 1 to 218.12 metres at JA Well 2. For each monitoring event, the groundwater elevation identified at MW 3 on the Site was approximately 10 metres higher than the groundwater elevation at DB Well 1. This difference in elevation was not consistent with differences recorded at the other monitoring locations and suggested that the groundwater level recorded at MW 3 was indicative of a perched condition. As previously noted in this report, the borehole log for MW 3 indicated that the well was approximately 2.7 metres deep and was completed in clayey silt which was encountered beneath the surficial sand and gravel at a depth of 2.2 metres. It was inferred that the relatively shallow, low permeability clayey silt was resulting in a localized perched groundwater condition which was not consistent with the groundwater elevation elsewhere on the Site where the surficial sand and gravel strata are presumably thicker. On July 14, 2009, groundwater was encountered in HPA TP 1 and TP 2 at a depth of approximately 3.1 metres below ground surface, or approximate elevation 228.2 and 227.9 metres, respectively. The encountered groundwater in HPA TP 1 was approximately 0.9 metres above the silty clay stratum and the encountered groundwater in HPA TP 2 was approximately 0.3 metres above the silty clay stratum. On the same date, groundwater was detected in MW 3 at an elevation of approximately 229.19 metres. The groundwater encountered in HPA TP 1 had a noticeable odour that was similar to rotting apples. The presence of this odour suggested the potential for movement of shallow groundwater towards the test pit location from the wastewater treatment and infiltration lagoons located on the adjacent property to the south. It was our understanding that use of these lagoons for treatment of wastewater from the apple processing facility was terminated in June 2009. Groundwater levels recorded for the shallow off-site monitoring wells south of MW 3 on August 12, 2009 ranged from 2.2 to 5.7 metres below ground surface (or elevation 230.01 to 229.23 metres). In the two deeper monitors (MW 1A and MW 4B), completed at depths of approximately 9.2 and 6.4 metres, respectively, recorded groundwater levels were 8.1 and 6.2 metres below ground surface, or elevation 224.28 metres in MW 1A and 225.31 metres in MW 4B. The groundwater level in MW 4B, which was completed in a lower sand and gravel stratum, was approximately 4.0 metres lower than the groundwater level in the adjacent MW 4A, which was completed in an upper sand and gravel stratum. The granular GENIVAR OS-08-060-41-OS 5-1

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 strata were reportedly separated by a sandy silt unit. The groundwater level recorded in the deeper granular layer suggested that the groundwater in the upper granular layer was perched. A similar condition was indicated by the other available groundwater level data from 1996, as shown in Table B-1. Representative groundwater level data for the monitoring locations are shown on the stratigraphic sections on Figure 3. The available groundwater level data were used to infer potentiometric groundwater contours for the vicinity of the Site and these are shown on Figure 4. The inferred water table contours were based on water level data from April 9, 2009, which was considered to be generally representative of seasonal high conditions. The contours were inferred from measured water level data for DB Well 1, JA Well 1 and JA Well 2. In addition, a groundwater elevation of 226.6 metres was estimated for MW 4B, the closest of the two deeper monitoring wells located on the adjacent property to the south. The groundwater elevation at this location for April 9, 2009 was estimated based on the measured water level on August 12, 2009 (elevation 225.3 metres) plus approximately 1.3 metres, which was generally consistent with the difference in water levels recorded at the other monitoring locations between April 9 and August 12, 2009. The inferred water table contours for the Site indicated that the shallow groundwater flow direction was generally in a northerly to northeasterly direction. The inferred water table elevation ranged from approximately 223.8 metres near the southwest corner of the Site to approximately 219.8 metres near the northeast corner of the Site. The inferred water table contours near the southwest Site boundary were generally consistent with water level data reported on the well records for bored water supply wells previously located on the adjacent property to the south, as discussed in Section 2.3 of this report. On April 9, 2009, the water level in the Beaver River at a location immediately north of Grey Road 40, southwest of the Site, was determined to be at elevation 216.69 metres, approximately 7 metres lower than the groundwater level inferred for the southwest corner of the Site. The water level in the Beaver River immediately west of the Site would be somewhat lower. Also shown on Figure 4 are inferred potentiometric contours for a perched groundwater table in the southwest portion of the Site. The inferred perched water table contours were based on water level data for February 18, 2009, when a seasonally high groundwater level was recorded at MW 3. In addition to the water level data from MW 3, groundwater elevations of 229.4 and 229.1 metres were estimated for the locations of HPA TP 1 and HPA TP 2, respectively, based on the recorded groundwater levels at those locations on July 14, 2009 plus approximately 1.2 metres, which was consistent with the difference in water levels recorded at MW 3 between February 18 and July 14, 2009. The inferred perched groundwater contours were also generally consistent with available groundwater level data for the adjacent property to the south, in the vicinity of the lagoons. GENIVAR OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 6.0 Discussion It is our understanding that it is Mr. Breadner's intention to extract the surficial sand and gravel to a level at or near the first underlying clayey silt / silty clay stratum. We understand further that after extraction of the sand and gravel, the area of the gravel pit will be returned to use for an orchard. Based on the limited information on soil conditions at the Site available from test pits excavated by GENIVAR and by Mr. Breadner, the inferred maximum depth of extraction, based on the depth of the upper sand and gravel at the test pit locations, is shown approximately on the sections on Figure 3. Based on our investigation, the vertical separation between the bottom of the proposed pit and what appeared to be a perched water table on the underlying clayey silt stratum would be less than 1.5 metres. This scenario would potentially necessitate that the proposed pit be licensed as a Category 1 below water pit. Based on the results of our assessment, the vertical separation between the bottom of the proposed pit and the inferred groundwater table located below the upper perched water table would be 1.5 metres or greater. It was considered that extraction of sand and gravel from below the level of the perched groundwater table in the southwest portion of the Site would potentially encounter groundwater originating from the wastewater treatment lagoons on the adjacent property to the south. Further, extraction below the perched groundwater level would potentially result in enhanced movement of shallow groundwater from the area of the lagoons into the pit. As noted in this report, use of the lagoons for wastewater treatment was discontinued in June 2009. It is our understanding that the lagoons currently receive only stormwater from the vicinity of the former Apple Valley facility, and that disposal of stormwater will subsequently be discontinued and the lagoons will be decommissioned. Termination of the use of the lagoons for wastewater treatment and infiltration in June 2009 will potentially result in a decline in the level of the perched groundwater table from the levels identified in this report. The results of our assessment indicated that excavation of the proposed pit, at the estimated depth identified in this report, would not result in significant impacts to local groundwater and surface water resources and their uses. Shallow groundwater is used for domestic supply on the Breadner property, east of the Site, and on the adjacent property to the north for both irrigation and domestic supply. However, our investigation indicated that the bottom of the proposed pit would be more than 1.5 metres higher than the groundwater level identified at those well locations. Further, the existing pit on the adjacent property to the north is considerably deeper than the anticipated bottom elevation of the proposed pit on the Breadner property. GENIVAR OS-08-060-41-OS 6-1

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 7.0 Summary Groundwater levels in the vicinity of the Site were monitored at several locations in the period between February 18 and August 12, 2009, using existing wells. The groundwater level monitoring data for these locations, together with available information on soil conditions at and in the vicinity of the Site, were used to infer groundwater table contours for the Site. These groundwater contours, together with the associated groundwater elevations at the monitoring locations, are shown on Figure 4 of this report. Our investigation identified what appeared to be a relatively shallow perched groundwater table in the southwest portion of the Site. It was considered that infiltration from the lagoons on the adjacent property to the south, historically used for treatment of wastewater from an apple processing facility, would have contributed to the perched groundwater condition. Use of these lagoons for wastewater treatment was discontinued in June 2009, suggesting the potential for a decline in the level of the perched groundwater from the levels identified from this investigation. Based on our investigation, the vertical separation between the bottom of the proposed pit and what appeared to be a perched water table on the underlying clayey silt stratum would be less than 1.5 metres, and excavations for the pit would potentially encounter perched groundwater. This scenario would potentially necessitate that the proposed pit be licensed as a Category 1 below water pit. Based on the results of our assessment, the vertical separation between the bottom of the proposed pit and the inferred groundwater table located below the upper perched water table would be 1.5 metres or greater. Based on the results of our assessment, it was considered that extraction of sand gravel from within 1.5 metres of, or potentially below, the level of the perched groundwater result would not result in significant impacts to local groundwater and surface water resources and their uses. Extraction below the perched groundwater level in the southwest portion of the Site would potentially result in enhanced movement of shallow groundwater from the area of the lagoons into the pit; however, use of the lagoons for wastewater treatment was discontinued in June 2009. GENIVAR OS-08-060-41-OS 7-1

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 8.0 Limitations This report provides an assessment of hydrogeologic conditions and the water table elevation at the subject property located in part of Lot 28, Concession 11, Geographic Township of Collingwood in the Town of the Blue Mountains for the purpose of an application for a gravel pit. The report is intended for the exclusive use of the current property owner, Mr. Dennis Breadner. GENIVAR Consultants LP will not be responsible for any use of this report by any other party. Respectfully submitted: GENIVAR Consultants LP W. Brad Benson, P.Eng. Senior Hydrogeologist WBB/bb GENIVAR OS-08-060-41-OS 8-1

Table 1 SUMMARY OF WATER LEVEL DATA Proposed Gravel Pit Part Lot 28, Concession 11, Geographic Township of Collingwood, Town of the Blue Mountains February 18, 2009 April 9, 2009 July 14, 2009 August 12, 2009 Monitoring Ground Top of Casing Depth to Groundwater Depth to Groundwater Depth to Groundwater Depth to Groundwater Location Elevation Elevation Water Elevation Water Elevation Water Elevation Water Elevation (m) 1 (m) (mbgs) 2 (m) (mbgs) (m) (mbgs) (m) (mbgs) (m) MW 3 (prev BH 9) 230.73 231.29 0.30 230.43 0.54 230.19 1.54 229.19 2.11 228.62 DB Well 1 221.17 221.48 1.01 220.16 0.98 220.19 -- -- 1.71 219.46 JA Well 1 222.70 223.34 2.91 219.79 3.16 219.54 -- -- 4.40 218.30 JA Well 2 219.00 219.51 0.98 218.02 0.88 218.12 -- -- Gone NA HPA TP 1 231.2 NA -- -- -- -- 3.05 (Enc.) 228.2 -- -- HPA TP 2 230.9 NA -- -- -- -- 3.05 (Enc.) 227.9 -- -- Notes: 1. Elevation in metres relative to geodetic datum. 2. "mbgs" - metres below ground surface. 3. "NA" - not applicable; "--" - no measured value; "Enc." - encountered water level 4. Table to be read in conjunction with accompanying report. February 2010 G:\2008\100\108060\Reports\Table 1 - GW Level Data.xls

Table 2 SUMMARY OF TEST PIT CONDITIONS Proposed Gravel Pit Part Lot 28, Concession 11, Geographic Township of Collingwood, Town of the Blue Mountains Ground Elevation 2 Depth Interval (mbgs) 3 Sample Number Groundwater Conditions Test Pit Simplified Stratigraphy Remarks (m) 1 231.2 0-0.15 Brown sandy TOPSOIL, some gravel Dry 0.15-0.6 Brown SILTY SAND AND GRAVEL 1 Dry 0.6-0.9 Coarse GRAVEL, some sand and cobbles Dry 0.9-4.0 Brown SAND AND GRAVEL, some cobbles, trace silt 2 Dry; wet to saturated at 3.05 m 4.0-4.6 Brown CLAYEY SILT 3 Moist to wet Groundwater seepage at 3.05 m depth; little pooling in test pit. Slight "rotten apple" odour to groundwater. 2 230.9 0-0.2 Brown sandy TOPSOIL, some gravel Dry 0.2-0.4 Brown SILTY SAND AND GRAVEL Dry 0.4-3.4 Brown SAND AND GRAVEL, some cobbles, trace silt 1 Dry; wet to 2 saturated at 3.05 m Groundwater seepage at 3.05 m depth; pooling in test pit. 3.4-4.6 Red-brown SILTY CLAY, some mottling 3 Moist Notes: 1. Test pits excavated July 14, 2009. 2. Approximate elevations inferred from ground surface contours. Elevations referred to geodetic datum. 3. "mbgs" - metres below ground surface. 4. For test pit locations, see Figure 2. 5. Table to be read in conjunction with accompanying report. February 2010 G:\2008\100\108060\Reports\Table 2 - Summary of Test Pits.xls

George St 290 215 250 Matilda St 240 285 235 280 205 rest St bilee Dr orge St Faircrest Lane William St 195 Brook St 205 205 215 210 225 230 235 240 250 245 235 2507578 2507579 2507577 2511642 2506998 2507803 2507773 200 205 230 225 235 235 240 245 210 219 SCALE 1:12,500 234 GENIVAR CONSULTANTS LP FILE No. CIVIL & ENVIRONMENTAL ENGINEERING CONSULTANTS OS-08-060-41-OS 945 3 RD AVENUE EAST, SUITE 212 FIG. No. 239 229 OWEN SOUND, ONTARIO N4K 2K8 205 230 210 235 230 235 R R I V E R B E A V E 220 215 225 245 238 228 235 242 241 235 229 223 232 227 206 226 231 231 220 221 204 231 221 202 221 238 225 237 196 230 217 219 236 217 220 219 228 DIGITAL DATA SOURCE: BASE MAP DATA PROVIDED BY LAND INFORMATION ONTARIO, MINISTRY OF NATURAL RESOURCES QUEEN S 229 PRINTER FOR ONTARIO, 2008 230 233 255 260 270 260 265 271 267 267 257 247 213 216 220 218 228 237 220 227 235 232 239 228 232 216 219 220 HOUSE/BUILDING 229 Clark St Marsh St Hill St Slabtown Rd ret St N Margaret St S John St Hillcrest Dr Grey Road 13 Fulton St 10th Line 30th Sideroad 275 280 285 290 285 275 275 270 280 280 289 283 286 281 285 285 290 279 276 276 285 279 CLARKSBURG Grey Road 40 EXISTING PIT SUBJECT SITE 2508910 LEGEND SUBJECT SITE CONTOURS - 5m INTERVALS 500m RADIUS OF SUBJECT SITE SPOT HEIGHT (m) AREA OF WELL RECORD SEARCH PIT OR QUARRY MOE WELL (WELL ID WITHIN RADIUS) CONSERVATION AREA DRILLED WELL (FIELD SURVEY) WOODED AREA DUG WELL (FIELD SURVEY) 0 125 250 500 750 1,000 Metres 226 WELL LOCATION PLAN PROPOSED GRAVEL PIT PART LOT 28, CONCESSION 11 GEOGRAPHIC TOWNSHIP OF COLLINGWOOD DESIGN DRAWN APPROVED DATE JEG WBB SEPT 2009 1 The Blue Mountains-Euphrasia Townline Euphrasia-St Vincent Townline Grey Road 40 The Blue Mountains-Meaford Townline 265 275 285 295 290 285 295

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 APPENDIX A Ministry of the Environment Well Record Summary and Individual Well Records GENIVAR OS-08-060-41-OS

Hydrogeological Assessment Proposed Gravel Pit, Part Lot 28, Concession 11, Town of the Blue Mountains February 2010 APPENDIX B Borehole Logs and Water Level Data for the Adjacent Property to the South GENIVAR OS-08-060-41-OS

Table B-1 SUMMARY OF GROUNDWATER LEVEL DATA FOR VICINITY OF LAGOONS ON ADJACENT PROPERTY TO THE SOUTH Proposed Gravel Pit Part Lot 28, Concession 11, Geographic Township of Collingwood, Town of the Blue Mountains June 5, 1996 June 13, 1996 September 17, 1996 Monitoring Ground Top of Casing Depth to Groundwater Depth to Groundwater Depth to Groundwater Location Elevation Elevation Water Elevation Water Elevation Water Elevation (m) 1 (m) 1 (mbgs) 2 (m) (mbgs) (m) (mbgs) (m) MW 1A (previous BH 5a) - Lower 232.42 233.13 7.8 224.6 8.2 224.2 8.3 224.1 MW 1B (previous BH 5b) - Upper 232.40 232.91 1.8 230.6 1.8 230.6 2.2 230.2 MW 2 (previous BH 6) 235.06 235.66 5.0 230.1 5.0 230.1 5.3 229.8 MW 3 (previous BH 9) 230.73 231.29 1.2 229.5 1.2 229.5 2.0 228.7 MW 4A (previous BH 8b) - Upper 231.44 232.11 1.6 229.8 1.7 229.7 2.2 229.2 MW 4B (previous BH 8a) - Lower 231.48 232.28 6.5 225.0 5.8 225.7 6.3 225.2 June 27, 2008 July 9, 2008 August 12, 2009 Monitoring Ground Top of Casing Depth to Groundwater Depth to Groundwater Depth to Groundwater Location Elevation Elevation Water Elevation Water Elevation Water Elevation (m) 1 (m) 1 (mbgs) 2 (m) (mbgs) (m) (mbgs) (m) MW 1A (previous BH 5a) - Lower 232.42 233.13 -- NA -- NA 8.14 224.28 MW 1B (previous BH 5b) - Upper 232.40 232.91 1.62 230.78 1.69 230.71 2.39 230.01 MW 2 (previous BH 6) 235.06 235.66 4.99 230.07 5.18 229.88 5.66 229.40 MW 3 (previous BH 9) 230.73 231.29 0.33 230.40 0.43 230.30 2.11 228.62 MW 4A (previous BH 8b) - Upper 231.44 232.11 0.75 230.69 0.80 230.64 2.21 229.23 MW 4B (previous BH 8a) - Lower 231.48 232.28 -- NA -- NA 6.17 225.31 Notes: 1. Elevation in metres relative to geodetic datum, as provided by C.C. Tatham & Associates Ltd. (except MW 3). 2. "mbgs" - metres below ground surface. 3. "NA" - not applicable; "--" - no measured value 4. Table to be read in conjunction with accompanying report. February 2010 G:\2008\100\108060\Reports\Table B-1 - GW Level Data for Apple Valley MWs.xls