O.C. 405/2004

September 8, 2004

Appendix B: Form of Approval

THE PROVINCE OF ALBERTA

NATURAL RESOURCES CONSERVATION BOARD ACT

NATURAL RESOURCES CONSERVATION BOARD

APPROVAL NO. NR-2004 -01

WHEREAS the extension of an existing phosphogypsum storage area at its Redwater, Alberta nutrient product plant by Agrium Products Inc. (hereinafter called “Agrium”) is a reviewable project under s.4(f) of the Natural Resources Conservation Board Act being chapter N-3 of the Statutes of Alberta, 2000; and

WHEREAS the Natural Resources Conservation Board is prepared to grant approval to the application by Agrium, subject to the conditions herein contained, and the Lieutenant Governor in Council has given authorization, hereto attached.

THEREFORE, the Natural Resources Conservation Board hereby orders as follows:

1. The project of Agrium, for construction of the northern extension to the phosphogypsum storage area as described in Application No. 0301, from Agrium to the Board, including any descriptive material supporting the Application marked as exhibits at the hearing of the Natural Resources Conservation Board held from February 23, 2004 to March 12, 2004 including undertakings of the Applicant, is approved, subject to the terms and conditions herein contained.

2. Agrium shall undertake or commission studies to improve its understanding of the factors, including but not limited to moisture content and temperature, that determine the chemical composition and quantity of fluoride emissions from all parts of the existing phosphogypsum stack and shall develop a statistically credible procedure to estimate fluoride emissions for the current and extended phosphogypsum stacks. This work shall be conducted to the satisfaction of Alberta Environment and shall be completed on a timeline determined by Alberta Environment to assist them with establishing long-term licensing requirements. Agrium shall use the upper confidence limits of its emission estimates or another conservative assumption acceptable to Alberta Environment as input to its dispersion model and shall conduct screening level health and environmental risk assessments based on the new input. This work shall be conducted to the satisfaction of Alberta Environment and on a timeline determined by Alberta Environment. If the revised assessments indicate that the predicted fluoride emissions pose a risk to the environment or to human health, Agrium shall develop and implement a mitigation plan to the satisfaction of Alberta Environment.

3. Agrium shall submit a conceptual reclamation plan of the phophogypsum stack for review by Alberta Environment by December 9, 2005. The conceptual plan shall contain, at a minimum, a statistically defensible comprehensive characterization of the phosphogypsum stack material, shall identify the key factors that Agrium believes need to be investigated prior to finalizing a reclamation plan, and shall contain a timeline to which Agrium commits, setting out delivery dates for the research that Agrium believes needs to be accomplished in order to reclaim the stack within five years of the final additions of waste product to the stack. Agrium shall have another phosphogypsum producer that has successfully reclaimed a similar stack in North America, review Agrium’s conceptual plan, prior to submission to Alberta Environment, and shall submit the written comments from that party to Alberta Environment.

Made at the City of Edmonton, in the Province of Alberta, this day of , 2004.

NATURAL RESOURCES CONSERVATION BOARD

William Young Kennedy Sheila Leggett Robert Powell

Panel Chair Member Acting Member