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Environmental Performance Report




Environmental Policy and Guiding Principles All Nalcor Energy companies will help

of electricity, and the operation of its facilities,

sustain a diverse and healthy environment

and promote efficient use of electricity by

for present and future Newfoundlanders


and Labradorians by maintaining a high

• Maintain an adequate level of emergency

standard of environmental responsibility and

preparedness in order to respond quickly and

performance through the implementation

effectively to environmental emergencies.

of a comprehensive environmental management system.

• Recover, reduce, reuse and recycle waste materials whenever feasible.

COMPLY WITH LEGISLATION • Comply with all applicable environmental laws and regulations, and participate in the Canadian Electricity Association’s Sustainable

The following guiding principles set out Nalcor Energy companies’ environmental responsibility, actions and decision-making. PREVENTION OF POLLUTION

IMPROVE CONTINUALLY • Audit facilities to assess potential environmental risks and to identify opportunities for continual improvement of environmental performance. • Establish environmental objectives and targets,

• Implement reasonable actions for prevention of pollution of air, water, and soil and minimize the impact of any pollution which is accidental or unavoidable. • Use the province’s natural resources in a wise and efficient manner. • Use energy as efficiently as possible during the generation, transmission, and distribution

and monitor environmental performance. • Integrate environmental considerations into decision-making processes at all levels. • Empower employees to be responsible for the environmental aspects of their jobs and

Electricity Program. • Periodically report to the Board of Directors, Leadership Team, employees, government agencies, and the general public on environmental performance, commitments and activities. • Monitor compliance with environmental laws and regulations, and quantify predicted environmental impacts of selected activities on the environment. • Respect the cultural heritage of the people

ensure that they have the skills and knowledge

of the province and strive to minimize the

necessary to conduct their work in an

potential impact of company activities on

environmentally-responsible manner.

heritage resources.



About Nalcor Energy Nalcor Energy’s business includes the development, generation, transmission

NEWFOUNDLAND AND LABRADOR HYDRO As the province’s main electricity provider, Newfoundland and Labrador Hydro (Hydro) is

and sale of electricity; the

focused on providing a safe, reliable and cost-

exploration, development,

effective electricity supply to meet current electricity

production and sale of

needs and accommodate future growth. Hydro’s

oil and gas; industrial

primary business is to generate and deliver electricity

fabrication; and,

in Newfoundland and Labrador to utility, industrial,

energy marketing.

residential and commercial customers in over 200 communities across the province.

Focused on sustainable growth, the company is leading the development of the province’s energy

Hydro has an installed generating capacity

resources and has a corporate-wide framework

of 1,637 megawatts (MW). Every year, Hydro

which facilitates the prudent management of its

generates and transmits over 80 per cent of the

assets while continuing an unwavering focus on

electrical energy consumed by Newfoundlanders

the safety of its workers and the public.

and Labradorians, 80 per cent of which in 2011 was clean, hydroelectric generation. In 2011,

Nalcor currently has five lines of business: Newfoundland and Labrador Hydro; Churchill Falls;

Hydro supplied over 6,757 gigawatt hours (GWh)

25 diesel plants (55.4 MW). In addition, Hydro has entered into a number of power purchase agreements with non-utility generators to supplement its own generation capacity including two wind developments on the island (54 MW). Hydro is focused on strengthening and ensuring the integrity of its core business of power generation, transmission and distribution. The company’s goal of business excellence focuses on delivering value to its customers and executing its strategy with an uncompromising commitment to safety, environmental stewardship, operational excellence, its people and the communities where it operates. CHURCHILL FALLS

of energy for use by residential, commercial and

Nalcor’s flagship operation in Churchill Falls is

industrial customers on the island and Labrador.

one of the largest underground hydroelectric powerhouses in the world with a rated capacity

Lower Churchill Project; Oil and Gas; and, Bull Arm Fabrication.

plant (490 MW), four gas turbines (142 MW) and

Hydro’s power generating assets consist of nine

of 5,428 megawatts (MW). The Churchill Falls

hydroelectric plants (939 MW), one oil-fired

generating station provides clean, renewable



electricity to millions of consumers throughout North America. A significant portion of that electricity is being sold to Hydro-Québec through a long-term power purchase agreement with additional sales to Hydro and Twin Falls Power Corporation to meet the needs of residential and industrial customers on the Labrador Interconnected electricity system. Churchill Falls focuses on safety excellence, delivering reliable electricity to customers and ensuring future generations benefit from this world-class resource through long-term asset management. OIL AND GAS



The Lower Churchill Project is the most attractive

Bull Arm Fabrication is Atlantic Canada’s largest

undeveloped hydroelectric project in North America

fabrication site. Close to international shipping

and is a key component of the province’s energy

lanes and Europe, this site has unobstructed, deep

warehouse. The Project’s two proposed installations

water access to the Atlantic Ocean. This world-

at Gull Island and Muskrat Falls will have a combined

class facility spans over 6,300 acres and has fully

capacity of over 3,000 MW. The clean, stable,

integrated and comprehensive infrastructure to

renewable electricity provides the opportunity

support fabrication and assembly of three key

for the province to meet its own domestic and

project functions, simultaneously, in three separate

industrial needs in an environmentally-sustainable

theatres: Topsides Fabrication and Assembly;

way, and also export electricity to other jurisdictions

Dry-dock Fabrication and Construction; and,

where the demand for clean, renewable energy

Deepwater Construction and Integration Site.

continues to grow. Nalcor is progressing Phase One of the development, Muskrat Falls, and associated transmission links to Newfoundland and Nova Scotia.

ENERGY MARKETING AND OTHER ENERGY ACTIVITIES In addition to Nalcor’s five lines of business, the

Nalcor is currently a partner in three developments

company is involved in energy marketing and

in the Newfoundland and Labrador offshore oil

other energy activities, including non-regulated

and gas industry: the Hebron oil field; the White

electricity generation, wind energy, and research

Rose Growth Project; and, the Hibernia Southern

and development. Nalcor’s current energy

Extension. Oil and Gas has also developed an

marketing portfolio includes recall power not

extensive strategy to help advance exploration of

required by Hydro and will continue to grow over

Newfoundland and Labrador’s offshore.

the coming years.



Message from the CEO The company is dedicated to environmentallysound practices and good stewardship of our natural resources as well as environmental reporting. Over the last few years, we’ve continued to advance our environmental performance, while maintaining the safe and reliable delivery of energy. Our commitment to being an environmental leader helps ensure a healthy and sustainable environment for future generations of Newfoundlanders and Labradorians. I am proud of our work and grateful to our

Nalcor Energy’s 2011 Environmental Performance Report provides an update to our stakeholders on our environmental activities.

dedicated team of employees for the positive contribution they have made to help protect our environment. I encourage you to read this year’s report and welcome your feedback.

It highlights our environmental commitments, accomplishments, partnerships and energy conservation activities. The report also identifies areas of improvement to further our commitment to being an environmental leader.






The Ramea Wind-Hydrogen-Diesel project,

During the fall of 2011, Bull Arm Fabrication

operated by Hydro on behalf of Nalcor, continued

signed a lease agreement with ExxonMobil Canada

making progress in 2011. Success of the proposed

with respect to the use of the site for the Hebron

project will put Hydro in a leading position in

Project. Upon signing of the lease, the Hebron

the Canadian and North American electrical

Project team immediately began preparing the

industry with respect to the ability to develop and implement a renewable energy supply to serve isolated and remote areas.


site for construction related activities.

Nalcor Energy Churchill Falls is environmentally

Through Nalcor’s commitment to a high standard

guided by an ISO 14001 certified Environmental

of environmental responsibility and performance,

In 2011, Hydro individually commissioned

Management System, and this past year marked

an environmental management framework

equipment including the Energy Management

four consecutive years of completing 100 per cent

consistent with the corporate policy and guiding

System (EMS). The EMS automatically controls

of its environmental targets and milestones.

principles was developed. The framework

and monitors the site operations in order to

One significant accomplishment in 2011, was the

documents and outlines the systems and

deliver electricity to customers in Ramea in a

successful completion of the five-year Construction

processes which provide the primary means by

safe, efficient and reliable manner. In 2012,

Debris Cleanup Program. Since 2007, the company

which Nalcor will ensure consistent environmental

Hydro will embark on the demonstration phase

has dedicated efforts to promote recycling and

management of the Bull Arm Fabrication site

of the project. This multi-year phase involves

recover debris from abandoned construction sites

under the terms of the lease agreement.

studying the operation of the entire system,

in and around Churchill Falls in an effort to reduce

analyzing collected data, optimizing operations,

its environmental impact. It is estimated that

and exploring key questions with regards to this

approximately 2,000 tonnes of scrap metal was

technology and the role it can play in isolated

removed for recycling during the duration of

electrical systems around the world.

the program.



LOWER CHURCHILL PROJECT The lower Churchill River is one of the most attractive undeveloped hydroelectric sites in North America and is a key component of the province’s energy warehouse. The Project’s two proposed installations at Muskrat Falls and Gull Island will have a combined capacity of over 3,000 megawatts (MW). The development of Muskrat Falls (824 MW) with a transmission link to the island is being proposed as part of Phase One of the Project to provide much needed power to

The development of Muskrat Falls has the

When it comes to developing the Lower Churchill

potential to:

Project, environmental sustainability is critical.

• deliver the least-cost power for homes and

Nalcor’s Environmental Policy and Guiding

businesses in the province; • provide long-term rate stability for Newfoundlanders and Labradorians;

diverse and healthy environment for present and future Newfoundlanders and Labradorians by maintaining a high standard of environmental

• support industrial development in Labrador;

responsibility, including the cultural heritage of the

• bring significant business and employment

people of the province.

benefits to the province; and, • power the province with 98% renewable energy.

Nalcor has two projects which were required to be reviewed under the federal and provincial

island electricity consumers and to facilitate and support industrial development in Labrador.

Principles highlight commitments to sustain a

If sanctioned by the Government of Newfoundland

environmental assessment processes:

and Labrador, after Muskrat Falls is constructed,

1 Lower Churchill Hydroelectric Generation Project

and once export markets are secured, Nalcor will

(generation project), which consists of Muskrat

be in a position to proceed with the development

Falls, Gull Island and transmission lines from

of Gull Island (2,250 MW), which may be used for

Muskrat Falls to Churchill Falls; and,

industrial developments in Newfoundland and

2 Labrador-Island Transmission Link (transmission

Labrador as well as for export. Until that time, the

project), which includes a 1,100 kilometre

focus remains on developing Muskrat Falls to meet

transmission system from Muskrat Falls in

the province’s own energy needs.

central Labrador to Soldiers Pond, on the island’s Avalon Peninsula.



In 2011, significant progress was made for both

will incorporate the conditions required as part of

for the transmission project was submitted for

the generation project and transmission project

the project’s release into its planning and design

government and public review in April 2012.

environmental assessments.

work as the generation project moves forward. Consultation with public stakeholders and

The environmental assessment process for the

Throughout 2011, Nalcor also continued its

Aboriginal groups has been an important

generation project was initiated in 2006 with Nalcor

work on the environmental assessment for the

component of the environmental assessment

registering the project with the federal and provincial

transmission project. In 2011, environmental

process to-date. Throughout the process, Nalcor

environmental regulatory bodies. Over the last five

studies for the transmission project were

has held public open houses and stakeholder

years this project has been intensely studied and

submitted under the environmental assessment

meetings across the province. During this

there has been significant stakeholder engagement

process including studies on vegetation, caribou,

consultation process, Nalcor shared information

and public input into the planning process.

avifauna, furbearers, moose, black bear, marine

with participants and stakeholders, providing

fish and fish habitat, marine fisheries, marine

Nalcor with valuable input which has been

In August 2011, the federal-provincial Joint Review

mammals, freshwater fish and fish habitat, historic

incorporated into the environmental assessment

Panel released their environmental assessment

resources, land and resource use, and viewscapes.

process for both projects.

report on the proposed generation project, and in

The results of these studies, along with

March 2012 both levels of government released

information obtained through consultation with

For information on the environmental

the generation project from the environmental

public and Aboriginal stakeholders are integral to

assessments, visit for the

assessment process. The environmental assessment

the environmental assessment, specifically the

generation project and

process is an important planning tool, and Nalcor

Environmental Impact Statement (EIS). The EIS

for the transmission project.



OIL AND GAS In 2009, Nalcor Energy announced its plan to proceed with the Parsons Pond onshore exploration program on the province’s West Coast, involving three exploration permits. The first two wells of the program, Seamus and Finnegan, were completed in 2010. In February 2011, Nalcor and its partners announced their intention not to pursue drilling of the Darcy well. As part of an extensive environmental approval process Nalcor submitted an Environmental Preview Report (EPR) to the Minister of Environment and Conservation in early 2010. The Minister subsequently released the project subject to conditions. These conditions included the submission of an Environmental Protection Plan (EPP) and an Environmental Effects Monitoring plan (EEM), and stipulations on when road construction could be performed.

The EPP and EEM extensively outlined Nalcor’s

monitoring of the caribou movement by satellite.

mitigation plans and processes to minimize the

This analysis will be focused on identifying any

environment impact, which included impacts on

disruption in caribou movement in the area that

the woodland caribou. Nalcor worked closely with

may be attributed to project activities.

the Department of Environment and Conservation’s Wildlife Division to implement environmental

Nalcor also committed to two helicopter surveys

protection during construction, designed to

to monitor caribou presence in the study area.

minimize impact on the environment and wildlife

The surveys were completed in March and July

in this area.

of 2011 with provincial wildlife personnel. The purpose of these surveys was to determine if

In 2011, Nalcor Energy continued with the

the number of caribou viewed in targeted areas

implementation of the commitment outlined in

correspond with the collar monitoring program.

the EPP and EEM. In 2011, in consultation with the Department of To fulfill their commitments in the EPP and EEM,

Environment and Conservation, a disposal method

Nalcor committed to the analysis of caribou

for drill cuttings at the Seamus and Finnegan drill

movement data and in 2011 issued a request

sites and a decommissioning strategy for the

for proposal for the Management of Northern

access road to the Darcy drill site were identified.

Peninsula Caribou Herd Satellite Collar Information.

In 2012, Nalcor will continue to follow through

The provincial wildlife division manages a

with all environmental commitments outlined in

monitoring program, where 25 caribou in the

the EPP and EEM.

local herd wear radio transmitter collars that allow

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In 2011, Nalcor received significant external In 2011, Hydro received the 2010 Canadian

recognition for our commitment to the

Electricity Association’s Environmental


Commitment Award for the Wind-Hydrogen-Diesel Project in Ramea. The award is considered a


great honour across the electricity industry. In the fall of 2011, Nalcor and Ed Martin, President

The Environmental Commitment Award is

and CEO, were recognized for environmental

presented to a company for demonstrating

efforts by being named one of “Canada’s 2012

outstanding environmental stewardship in

Clean50 and Clean16” from Corporate Knights

minimizing the adverse environmental impacts

Magazine and the Delta Management Group.

of its facilities, operations and businesses.

The Clean50 recognizes 50 people in Canada who

In 2011, the Ramea Wind-Hydrogen-Diesel project

have made the greatest contribution to sustainable

continued to make progress. Its success will put

development and clean capitalism in the country

Hydro, which operates the project on behalf of

over the past two years. The Clean16 are the

Nalcor, in a leading position in the Canadian and

individuals who have had the most impact in

North American electrical industry in terms of

each of the 16 categories of the Clean50. Martin,

developing and implementing a renewable energy

on behalf of Nalcor, was recognized as one of the

supply to serve isolated and remote areas.

Clean16 in the Traditional Energy category. Nalcor President and CEO Ed Martin with the Clean16 award, recognizing the company’s commitment to environmental sustainability.

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Our People The MR Committee keeps a global watch over the progress and development of Environmental Management Programs (EMP) within each MA to ensure the overall approach and philosophy of Nalcor’s commitment to environmental responsibility and responsiveness is upheld every day. The successful completion of the registration process for ISO 14001 across the company was MANAGEMENT REPRESENTATIVES COMMITTEE Nalcor Energy’s Environmental Management System (EMS) allows for the management

The MR Committee meets on a regular basis and provides: • an open exchange of information, approaches

of its environmental affairs and is applied to

and ideas related to EMS development and

activities, products and services across Nalcor


Energy companies that can have an impact on the environment. Overseeing the operational management of the EMS is the Management

• a consistent application of company EMS procedures; • a single point of communication between the

Representatives (MR) Committee with

Leadership Team and Management in each MA;

representatives from each of the Management


Areas (MA) within the EMS.

reflective of the efforts of Nalcor’s MR Committee.

• a forum for training and mentoring newly appointed Management Representatives.

In 2011, the MR Committee included: Frank Ricketts, Corporate MA; Rob Bartlett, Hydro Plant Operations MA; Cindy Michelin, Nalcor Energy Churchill Falls MA; Rod Healey, Services MA; Michael Manuel, Holyrood Thermal Generating MA; and Paul Smith and Dennis O’Grady, Transmission and Rural Operations MA.

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While everyone at Nalcor Energy plays an


important role in ensuring the organization meets its environmental commitments, Nalcor’s

Churchill Falls holds Nalcor’s commitment to the

Environmental Services Department has the

environment in high esteem. Since 2010, the

lead responsibility for environmental reporting,

Environmental Stewardship Award is presented

environmental training and awareness,

to an individual in Churchill Falls in recognition

environmental impact and site assessment,

of their commitment to the environment and

environmental inspection and auditing, identifying

demonstration of environmental leadership.

appropriate environmental standards and tracking environmental issues. As well, the Department

Last year’s recipient was Florence Hynes, Tool Crib

provides advice and service to all Nalcor Energy

Attendant. Florence is an active volunteer in the

companies and departments to assist them with

community’s recycling initiative through her efforts

their legislative compliance responsibilities.

with the Lions Club. She promotes recycling in the community and is always encouraging community members to get involved. Florence Hynes, Tool Crib Attendant, was the 2011 Environmental Stewardship Award winner. Florence (left) works with Kevin Burt, Manager Support Services, and Marion Priddle, Lion’s Club Member to through recycling during last years Acts of Kindness Week at the Churchill Falls Lion’s Club.

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Environmental Management Systems Nalcor Energy has chosen the ISO 14001

The six designated MAs within Nalcor Energy

While the company made progress in reducing

certified EMSs to drive the continual

manage their environmental aspects through the

its impact on the environment in 2011, Nalcor

improvement of the company’s

EMS (Figure 1). Each EMS is certified and registered

Energy will continue to develop long-term plans

environmental performance. The EMS

by an independent Registrar, Quality Management

to achieve its environmental targets and goal of

governs the environmental activities in

Institute (QMI – SAI Global). More information can

becoming an environmental leader. Throughout

Nalcor Energy’s electricity businesses, Hydro

be found at Nalcor has

the year, Nalcor continued tracking and reporting

undertaken a comprehensive and phased approach

EMS performance to the Leadership Team and

to environmental management within the

achieved 94 per cent completion of EMS targets

company and has registered and maintained EMSs

and milestones. Additional accomplishments

at its six existing MAs over the period since 1999.

resulting from the EMP in each of the MAs in 2011

and Churchill Falls. Nalcor is committed to the use of the EMS for its other lines of business. An EMS provides a management framework for

are detailed in this section.

an organization’s environmental responsibilities and is an integral component of the organization’s business operations. Programs developed under the EMS cover a broad range of areas: alternative


Input Ouput

Senior Leadership Team

energy and conservation; emissions control; waste management and recycling; spill prevention and

MR Committee

management; environmental site assessment and remediation; and, species and habitat diversity. OPERATIONAL MANAGEMENT AREAS

These systems include specific performance measures and a commitment to continual improvement.

Services Service input to Operational Management Areas

Thermal Plant Operations

Hydro Generation

Figure 1: Structure of Nalcor Energy’s Environmental Management System

Churchill Falls

TRO Operations

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The Corporate MA consists of the Leadership Team

Nalcor Energy has developed a corporate strategy

and a committee of managers with responsibilities

that sets the stage for performance and guides the

for facilities and operations with environmental

direction of all Nalcor Energy companies.

aspects. The goal of this MA is to co-ordinate the

This strategy involved developing goals, objectives

entities and lines of business under an EMS fully

development and maintenance of the overall EMS

and targets for the company.

compliant with the ISO 14001 standard by 2014.

• maintain the number of environmental leadership targets accomplished at or greater than 95% each year for the next five years; and, • have all current non-regulated generating

for Nalcor Energy and to identify environmental aspects appropriate to the Leadership Team’s

The following objectives are reviewed annually

From these objectives, targets were set in each

activities and responsibilities. Although the

and are established to support Nalcor Energy’s

line of business in 2011, including increasing the

operational and services EMS are managed

environmental goal – to be an environmental

number of Leadership Team approved EMS targets

independently, a common and consistent


and objectives accomplished across the company,

Corporate Environmental Policy and Guiding

• reduce emissions per unit of energy delivered

Principles set the standard for all Nalcor Energy

by achieving not more than 10% variance from

companies. Periodic reviews of activities and

ideal production schedule at Holyrood Thermal

issues are conducted to ensure consistency with

Generating Station through 2015;

corporate standards.

reducing emissions per unit of energy delivered at the Holyrood Thermal Generating Station, and completing EMS implementation and compliance audit closure plans for the new lines of business.

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SERVICES MANAGEMENT AREA Environmental aspects are an element of a department’s activities, products, or services that can interact with the environment. Currently

In 2011, the Services MA managed 17 environmental management programs. Some results included: • controlled release of over 146 million cubic metres

there are five departments within the Services

of water from reservoirs, as part of long-term

MA that have identified environmental aspects.

agreements with the Department of Fisheries and

These groups include Systems Operations,

Oceans for fish and fish habitat protection;

Corporate Relations, Project Execution and

• completing a waste audit at Hydro Place;

Technical Services, Supply Chain Management

• launching new components of the Conservation

and Environmental Services.

and Demand Management (CDM) program for residential, commercial and industrial customers;

• completing internal energy audits at selected sites; • improving load and implementing wind generation forecasting; • initiating the optimization of Exploits Generation through detailed VISTA modeling; and, • developing EMSs for new lines of business.

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OPERATIONAL MANAGEMENT AREA THERMAL The Holyrood Thermal Generating Station is a

• reduced fuel consumption through completion of the first phase of work to improve synchronous

releasing water for fisheries compliance obligation

condenser operation of Unit 3 to minimize

reasons and implementing actions required at the

switch from generation to voltage support.

Paradise River Hydroelectric Generating Station to

490 megawatt (MW) plant located in Holyrood, Conception Bay. The Holyrood plant’s EMS was initially registered in January 1999 and successfully completed a re-registration in January 2011. In 2011, the Holyrood Thermal Generating Station made progress on 12 environmental targets, resulting in: • achieved uptime targets for ambient air monitoring sites at 98.6 per cent; • improved guide curve performance for plant efficiency at dispatch load; • improved marine terminal operations and spill mitigation with a completed marine terminal guidelines document; • improved recycling through improved electronic filing and initiatives supporting a future nonrechargeable battery recycling program; and,

• development of operating procedures for

minimize fish entrainment effects; HYDRO OPERATIONS

• fuel storage tank improvements;

The Bay d’Espoir MA consists of eight generating

• purchasing emergency response spill equipment

stations on the island with a total installed

and improved fleet vehicle preventative

capacity of 939 MW.

maintenance check sheets to include a more detailed inspection of possible oil leaking

In 2011, some of the Environmental Management Program results included: • assessment of opportunities for the

devices; and, • improvements in the management of hazardous liquid waste.

implementation of energy efficiency and conservation applications such as installing motion light devices and also developed a request for proposal for an Energy Audit; • implementing actions to monitor and evaluate

TRANSMISSION AND RURAL OPERATIONS (TRO) The TRO division operates three gas turbines, three interconnected diesel generating stations, and 22 isolated diesel generating and

the effectiveness of previous initiatives associated

distribution systems. Hydro also maintains 54

with oil losses and investigating options to

high-voltage terminal stations, 34 lower-voltage

reduce oil changes on diesel generators;

interconnected distribution substations, 3,742 km of interconnected high-voltage transmission lines and 3,398 km of distribution lines.

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In 2011, significant EMS programs completed in

• conducted the trial use of a new vegetation

Environmental targets and programs were

TRO included:

control product with the potential to reduce

developed at Churchill Falls as part of the EMS.

• a focus on spill/leak reduction by replacing

herbicide use; and,

Some results of 2011 targets were:

160 distribution transformers and providing

• establishment of an internal energy

employee awareness training for the promotion

efficiency program for improvements to TRO’s

of non-reportable spills/leaks to be used for

infrastructure energy usage.

trend analysis. • implementation of a five-year plan for

management system targets; • established a gap closure plan to phase out PCB contaminated equipment to ensure compliance


improvements to prevent potential

The Churchill Falls Hydroelectric Generating Station

environmental impacts from fuel storage

has an installed capacity of 5,428 MW. Associated

systems with the installation of four new fuel

with this development is approximately 1,200 km

storage tanks;

of high-voltage transmission lines, an airport

• testing of electrical equipment potentially

• 100% completion of 39 environmental

and the Town of Churchill Falls. Environmental

containing Polychlorinated Biphenyls (PCB) and

aspects of these facilities are included in the

the implementation of a 15-year replacement

EMS. The environmental aspects of the former

plan for sealed equipment;

Twin Falls Hydroelectric Generating Station are

with the PCB regulations; • performed extra work on units no. 6 and no. 11 turbines to reduce oil loss; • assessed fuel system deficiencies and planned for future upgrades and improvements; • continuation of a multi-year contaminated lands program; • continuation of a multi-year program for clean-

also managed through the Churchill Falls EMS.

up of old construction related sites by removal

measurement of area(s) treated under the

The EMS was registered in 2000 and successfully

of debris from five large sites; and,

vegetation management program;

completed a surveillance audit in 2011.

• integration of GPS/GIS technology in the

• continuation of a multi-year program for reduction of oil leaks from switchyard transformers by repairing apparent leaks on three transformers.

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At Bull Arm Fabrication, an environmental

In 2011, Exploits Generation initiated the

management framework consistent with the

process of addressing its EMS gap closure plan.

Nalcor has decided on a staged approach to

corporate policy and guiding principles was

Environmental aspects were identified and

developing and implementing an EMS across the

developed. The framework documents and

documented related to their activities and

new lines of business. The new operating facilities

outlines the systems and processes which provide

procedures were developed for the management

and lines of business for which EMS requirements

the primary means by which Nalcor will ensure

of environmental objectives, targets and programs,

are being developed include: Nalcor Energy Oil and

consistent environmental management of the

and for the management of their legal and other

Gas; Bull Arm Fabrication; Menihek Hydroelectric

Bull Arm Fabrication site under the terms of the

activities. The Environmental Emergency Response

Generating Station; Exploits Generation; and, Star

lease agreement.

Plan was also implemented and tested and personnel were trained in the procedures dealing

Lake Hydroelectric Generating Station. The Menihek Hydroelectric Generating Station

with oil spills and leaks.

In 2011, Nalcor Energy Oil and Gas initiated the

has been working towards the development of

development of an ISO 14001 compliant EMS.

an EMS since 2008. In 2011, sections of the ISO

In 2012, the Star Lake Hydroelectric Generating

In 2012, they will continue to follow the EMS gap

standard dealing with nonconformity, corrective

Station will be incorporated into the existing EMS

closure plan and by 2014, anticipates having an

and preventative action, communications and

for Hydro Generation.

EMS in place and suitable for an independent

control of documents were developed. Testing of

audit review.

the Environmental Emergency Response Plan and a review of spill response materials also occurred in 2011.

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The Holyrood Thermal Generating Station’s

Hydro has a mandate to meet the province’s

wastewater treatment plant treats the wastewater

growing electricity needs. In 2011, approximately

resulting from the combustion of fuel and

84 per cent of this electricity was generated from

run-off from an on-site solid waste landfill.

clean hydroelectric power. However, to meet

Components of the wastewater are measured and

the growing electricity demands on the Avalon

compared to regulatory limits. Once all aspects

Peninsula, between 15 and 25 per cent of the

of the wastewater meet provincial regulatory

island’s electricity comes from fossil-fuel fired

requirements, it is released in the plant’s cooling

generation at the Holyrood Thermal Generating

water discharge and into Conception Bay. In 2011,

Station each year. Hydro also operates 25 diesel

3.07 million litres of wastewater were treated and

plants across the province.

discharged, significantly less than the 4.56 million litres of wastewater treated and discharged in

The company continues to incorporate alternative

2010. The difference is related to a drier year in

sources of energy into the province’s energy supply

2011 and fewer air heater washes.

to reduce emissions from burning fossil fuels. In 2011, Hydro purchased 197,964 megawatt hours of clean energy from the island’s two wind projects. That’s enough green energy to power over 13,300 homes – which is equivalent to burning 314,000 barrels of oil at the Holyrood plant, and is a reduction of more than 154,000 tonnes of greenhouse gas emissions.

Overall, thermal production at the Holyrood Thermal Generating Station increased in 2011 by 10 per cent from 2010, primarily due to increased requirements from the plant for Avalon transmission support. The Holyrood plant produced just over 14 per cent of the energy supplied by Hydro in 2011, up slightly from 13 per cent in 2010. The increased energy production from the Holyrood plant in 2011 resulted in a 2.2 per cent increase in sulfur dioxide (SO2) emissions and a nine per cent increase in carbon dioxide (CO2) emissions. The increases in SO2 and CO2 emissions are directly attributed to more fuel being consumed. Overall, energy received into the system from non-utility generating stations decreased by nearly two per cent in 2011, primarily due to decreased production from Exploits Generation facilities. This reduction was offset somewhat by increased generation at the two wind projects. Energy supply requirements increased by more than five per cent in 2011, which was primarily due to an increase in utility load, offset somewhat by reduced industrial customer requirements. Hydro’s hydroelectric

| 20



production on the island was up by nearly six per cent from 2011, due primarily to the reduced


energy received into the system and increased


turbine facilities and isolated diesel generating stations are calculated using formulas approved by the Department of Environment and Conservation. Nalcor’s overall air emissions are dominated by

Hydraulic Production (GWh)

and SO2 for the Holyrood Generating Station, gas


1,600 1,400


1,200 1,000


800 2,000


those resulting from production at the Holyrood Generating Station. Emissions of CO2, NOx and SO2




for the Labrador Isolated Diesel System, Labrador Interconnected System, and the Island Isolated Diesel System, were calculated to be approximately 41, 1.2 and 0.05 kilotonnes respectively. Emissions for the Island Interconnected System, including the Holyrood Generating Station, and interconnected gas turbines and the standby diesel plants are outlined in the following graphs:


0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Hydraulic Production

Island Interconnected Emissions

Emissions (kilotonnes)

customer load requirements. Total emissions for CO2, nitrogen oxides (NOx)


| 21







4.5 5,000

3.0 2.5


2.0 2,000

1.5 1.0



4,000 15 3,000 10 2,000 5


05 0

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Hydraulic Production

Island Interconnected Emissions


0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Hydraulic Production

Island Interconnected Emissions

Emissions (kilotonnes)



Hydraulic Production (GWh)

4.0 Emissions (kilotonnes)

Hydraulic Production (GWh)


| 22


UNIT 3 SYNCHRONOUS CONDENSER UPGRADE The Holyrood Thermal Generating Station (HTGS) burns number 6 fuel oil to operate three generating units with a combined capacity of 490 MW. The plant is operated primarily for energy and peaking requirements. However, Unit 3 is converted to synchronous condenser mode (normally in the early spring to late fall) for voltage support when the system energy and peak demand requirements can be supplied by a combination of the other two HTGS units, nonutility generators and NLH hydroelectric facilities.

The synchronous condenser upgrade is a two

under minimum Holyrood operating requirements,

year project, which was initiated in 2011, and is

could have been operating at a minimum load of

required to reduce vibration levels in unit 3 during

70 MW and burning fuel for voltage support.

synchronous condenser operation. The project will

For example, based on the operating data

reduce the time, and in turn emissions, during

from April 2011, when Unit 3 is converted to

the conversion of Unit 3 from generation to

synchronous condenser mode and provides for the

synchronous condenser mode.

shutdown of one of the other units, the deferred CO2 emissions would be 1,416 tonnes daily.

The improvement in air emissions is related to

That equates to reducing 5,664 tonnes of CO2

a quicker conversion to synchronous condenser

emissions through faster synchronous condenser

mode (approximately 4 days, compared to 8 to 10

conversion when the project is completed.

days) which permits the shutdown of a unit that,

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Waste Management POLYCHLORINATED BIPHENYLS (PCB) PCB are the most significant waste management issue in the electric utility industry. This substance was commonly used in electrical equipment prior to the late 1970s, when PCB production was banned. The effect of this ban on Hydro and many other utilities was two-fold. The amount of PCB inservice declined as new PCB-free equipment was installed, and inventories of PCB-contaminated wastes increased as older equipment was retired. Hydro had a PCB management program in place since early 1980s to reduce risks associated with in-service equipment containing PCB. The earlier focus of this program was to remove all highconcentration (greater than 10,000 part per million (ppm)) PCB equipment from service and to reduce the concentration of PCBs in larger volume oil filled equipment to less than 50 ppm.

In 2011, Hydro continued with a program to test

PCB phase out programs have been developed

all other oil-filled equipment that were not sealed

to include identification of sealed equipment

such as reclosers, voltage regulators, tap changer

that could have PCB contamination greater than

compartments, oil circuit breakers, and station

500Â ppm. In 2011, Churchill Falls continued to

service transformers. At the end of 2011, Hydro

improve the database for in-use PCB equipment

sampled over 400 units and 13 were identified

and its PCB phase out program.

to contain greater than 50 mg/kg of PCB. This equipment will be removed from service prior to

In 2011, 21 Pyranol filled surge capacitors which

the regulated 2025 deadline.

had been granted an end-of-use extension by Environment Canada, were removed from the Bay

New Federal PCB regulations brought into effect in

d’Espoir Hydroelectric Generating Station and sent

2008 focused on removal of higher concentration

to an approved facility for destruction. TRO worked

PCB equipment from service by planned dates,

on its PCB phase-out program as defined in their

and more restrictive handling of PCB waste.

end-of-use extension, with some minor changes.

The limits for identifying high-concentration PCBs

As in 2010, most of the changes to the phase-out

was also lowered to any equipment having a PCB

program were around timelines for removal of

concentration greater than 500 ppm. In response

sealed in-use equipment. With the exception of

to these requirements, both Hydro and Churchill

some light ballasts, none of the TRO or Churchill Falls

Falls have put programs in place to improve

equipment removed from service in 2011 was found

databases for tracking both in-use PCB equipment

to have a PCB concentration of 500 ppm or above.

and PCB equipment taken out of service. Revised

| 24


Nalcor Energy submitted its third set of online PCB

2010 Tonnes

2011 Tonnes

Total inventory of high-level PCB material in storage



Total inventory of low-level PCB material in storage



were submitted under Sections 33(2) and 33(3) of

Total amount of high-level PCB material sent for destruction



the PCB Regulations.

Total amount of low-level PCB material sent for destruction



Total amount of high-level PCB material taken out of service



Total amount of low-level PCB material taken out of service



2010 Tonnes

2011 Tonnes

Total estimated inventory of high-level PCB material in service



Total estimated inventory of low-level PCB material in service



reports under the PCB Regulations for the year 2011 for the Bishop’s Falls PCB Waste Disposal Facility, the Churchill Falls PCB Facility and the Bay

PCB Material in Storage (Bishop’s Falls PCB Waste Disposal Facility)

d’Espoir Hydroelectric Generating Station. Reports

Hydro operates one approved PCB waste storage facility at its Bishop’s Falls area office and inventory storage yard. In 2011, there were 1.45 tonnes of low-level PCB material and 0.75 tonnes of high-level PCB material transported to an approved facility for destruction. It is recognized that some older equipment such

PCB Material in Service (TRO)

as capacitors and fluorescent light ballasts, which may contain high levels of PCB, remain in service. It is estimated that there is less than one tonne of PCB contained in this equipment.

Table 1: PCB material in storage and in service in Bishop’s Falls and TRO in 2010 and 2011.

| 25


Churchill Falls operates one approved PCB waste storage facility. Table 2 provides an inventory of PCB material in storage and in service at this facility at the end of 2011. At present, there is

PCB Material in Storage (Churchill Falls)

2010 Tonnes

2011 Tonnes













2010 Tonnes

2011 Tonnes

Total estimated inventory of high-level PCB material in service



Total estimated inventory of low-level PCB material in service



Total inventory of high-level PCB material in storage Total inventory of low-level PCB material in storage

nothing stored in the Churchill Falls PCB waste storage facility. There were 0.43 tonnes of low

Total amount of high-level PCB material sent for destruction

level PCB materials destroyed in 2011. These

Total amount of low-level PCB material sent for destruction

materials, which consisted of light ballasts and capacitors that came out of service in 2011, were temporarily stored and then destroyed at an

Total amount of high-level PCB material taken out of service Total amount of low-level PCB material taken out of service

approved destruction facility. PCB materials known to be in service are fluorescent light ballasts and capacitors; however, there is no inventory completed of this electrical equipment to date, and therefore indicated as

PCB Material in Service (Churchill Falls)

â&#x20AC;&#x153;unknownâ&#x20AC;? in table 2. Churchill Falls is continuing to develop the inventory database for oil-filled equipment and a phase-out program for equipment that has the potential to have PCB contamination.

Table 2: PCB material in storage and in service in Churchill Falls in 2010 and 2011.

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Used Oil Type

Volume (litres)

Storage Type

Certified Waste Company

Diesel Plants

lubricating oil


205 litre drums and storage tanks

Crosbie Industrial Services

Hydroelectric Generating Stations

lubricating oil


205 litre drums and storage tanks

Crosbie Industrial Services


lubricating oil


205 litre drums

Pardy’s Waste Management


oil/water mixture


205 litre drums

Pardy’s Waste Management

Bishop’s Falls

insulating oil


Storage tank

Stark Oil and Newalta

Churchill Falls

lubricating and insulating oil


205 litre drums

Atlantic Industrial Services

Churchill Falls

oil/water mixture


205 litre drums

Atlantic Industrial Services

Exploits Generation

lubricating oil


storage tanks

Pardy’s Waste Management

Menihek Generating Station

lubricating oil


205 litre drums

Phoenix Environmental Services

Menihek Generating Station

oil/water mixture


205 litre drums

Phoenix Environmental Services

USED OIL Nalcor has a waste oil management system for handling and disposing of used oil. On an annual basis, facilities record the amounts of used oil generated and new oil purchased. Used oil is stored in either 205 litre drums or storage tanks and collected by a certified waste oil handler for either recycling or reuse. Table 3 summarizes used oil information by location, used oil type, volume collected, storage type and waste management company contracted to collect and properly dispose of the used oil.

Table 3: Volumes and types of used oil collected by location.

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At Hydroâ&#x20AC;&#x2122;s central maintenance facility in Bishopâ&#x20AC;&#x2122;s

At Churchill Falls, all used lubricating and

Falls, insulating oil from transformers brought in

insulating oil and oil/water mixtures are stored

for servicing is collected in oil storage tanks and

at a designated waste oil storage building prior to

During 2011, all fuel ash produced at the Holyrood

processed for recycling if suitable. If the quality

removal. The oil is usually collected twice during

Thermal Generating Station was disposed of in an

of the oil is not suitable for recycling, the oil is

the year by a government certified waste handler

on-site, controlled solid waste landfill. The amount

collected by a certified waste handler for proper

for reuse, recycling or proper disposal.

of total ash produced and disposed of at the

disposal. In 2011, the total volume of insulating oil taken from transformers was recycled. This represents a 100 percent recycling of insulating oil at the central maintenance facility in 2011.

landfill in 2011 was 206 tonnes. This is consistent WOOD POLE LINE MANAGEMENT PROGRAM As part of its transmission line network, Hydro manages approximately 26,000 poles of varying

with the amount of ash disposed in 2010. SCRAP METAL RECYCLING AND REUSE

age. Wooden poles have an in-service lifespan

During 2011, Hydro decommissioned 283

of 50 years and with proper management,

distribution transformers, and 11 voltage

maintenance and refurbishment the life can be

regulators, all of which contained non-PCB oil.

extended by 10 years or more. Core samples

The transformers were drained and sold to a

taken from some poles in 1998 indicated that the

transformer manufacturer for reuse, while the

preservative retention level was not adequate.

voltage regulators were sold to a local scrap

As a result, Hydro initiated a Wood Pole Line

metal dealer.

Management Program in 2003 and it is expected to continue as a long-term asset management and

At the Menihek Generating Station, six non-PCB

life-extension program. In 2011, Hydro treated

distribution transformers were shipped off-site for

1,665 poles with boron rods to provide extra

recycling in 2011.

protection and extend the in-service life expectancy of new poles. Since the start of the program approximately 20,645 poles have been treated.

| 28



WASTE MANAGEMENT STUDY In 2010, the Environmental Services Department

In 2006, Churchill Falls management received

worked with personnel at the Holyrood Thermal

funding approval from its Board of Directors for

Generating Station, Hydro Generation and

a five-year clean-up program to remove the

the central regional office in Bishopâ&#x20AC;&#x2122;s Falls to

debris from abandoned construction camps that

implement new waste management initiatives.

were used during the original construction of the

Each of these areas are now participating in the

Churchill Falls project in the late 1960s and early 1970s. There is a substantial amount of debris located at sites spread over a large geographical area, running approximately 300 kilometres north to south from Sail Lake to the QuĂŠbec border, and 180 kilometres west to east from Esker to Churchill Falls. Over a five-year period, Churchill Falls has committed to cleaning up the large sites with the aid of contractors, and the smaller sites with Churchill Falls internal resources.

Call2Recycle program, whereby rechargeable In 2011, approximately 400 tonnes of scrap metal was recovered from debris sites and shipped out for recycling. Since 2007, approximately 2,100 tonnes of scrap metal has been recovered from debris sites. Areas where debris was removed in 2011 include: the Winter Dump; Lobstick East Dykes; 230 kV transmission line right of way and line camps; Orma and Sail Lake access roads; and, miscellaneous items at Orma and Sail Lake Camp sites, Twin Falls Dykes and Twin Falls abandoned runway.

batteries (lithium ion, nickel cadmium, nickel metal hydride and small sealed lead acid batteries) and cellphones are collected and sent to a free of charge recycling program funded by product manufacturers. In 2011, four of the regional TRO offices, Whitbourne, Port Saunders, Goose Bay, and Stephenville, also began recycling their rechargeable batteries and cell phones under this program. The Holyrood Thermal Generating Station also began corrugated cardboard recycling in 2010. All areas are very interested in new and improved waste management practices and are working toward continual improvement.

| 29



“We became involved to help the community,

the current recycling program, and identified

On August 30, 2011, Bull Arm employees teamed

we care about the communities in the Bull Arm

options to reduce waste generation and divert

up with Southern Harbour community members

area,” said Shauna Clark, Office Manager, Bull Arm

solid waste from the landfill. The waste reduction

to participate in the community’s second annual

Fabrication. “I enjoyed the beach cleanup. It was a

options included composting of cafeteria wastes,

Southern Beach cleanup. The cleanup team

beautiful day and a wonderful opportunity to help

paper towels and coffee grounds, installing

travelled to Southern Beach where they worked

the environment and get to know people of the

additional hand dryers and removing paper

together to remove the garbage. Thirty-four bags

communities in which we work.”

towels from washrooms and engaging a company

of garbage were collected during a group effort

to shred and recycle mixed paper streams (not

lead by Bull Arm Fabrication to clean up Southern

only the white paper stream). The study also

Beach. The day ended with a social barbeque

recommended increased education around

provided by Nalcor.

Hydro Place completed a Solid Waste Study in 2011. The study evaluated solid waste generation,

existing recycling programs. All recommendations in the waste study will be evaluated in 2012 and an action plan developed for moving forward. In 2011, Nalcor budgeted for a similar Solid Waste Study to be completed at Hydro Generation in 2012. Plans are in place to implement similar studies in other operational areas in the future, if the 2011 and 2012 studies are shown to be beneficial and result in waste reduction.

demonstrate our commitment and show that

After collecting 34 bags of garbage to clean up Southern Beach, members of the Bull Arm team and the community proud of their accomplishment.

| 30


Spills and Other Incidents The very nature of our work to generate and

Nalcor Energy’s lines of business had a total of

Churchill Falls had one reportable incident in 2011.

transmit electricity requires handling and

14 reportable spill and leak incidents in 2011:

The incident involved the release of 32 kg of

use of a variety of potential environmental

Hydro reported ten; Churchill Falls reported one;

refrigerant from a heat recovery unit.

contaminants such as fuel oils, lubricating

Exploits Generation reported two; and, Menihek

oils and chemicals. Each year, Hydro uses

Generation reported one. The approximate volume

Exploits Generation had two reportable spill

approximately 300 million litres of fuel to

for all reportable spills was 716 litres. All but one

incidents in 2011. Approximately 13 litres of

reportable spill involved petroleum products or its

lubricating oil (hydraulic and bearing oil) were

derivatives. One reportable incident at Churchill

released into the tailrace at the Bishop’s Falls

Falls involved the release of 32 kg of refrigerant.

Generating Station. In one incident, the units were

About 548 litres, or 76 per cent of the total volume

shutdown and absorbents were used to capture

was transformer insulating oil, 23 per cent was

the spilled oil. In the other incident, attempts were

hydraulic oil and the remainder was bearing oil.

made to absorb the oil, but the units were running

generate electricity. The company strives to reduce the potential for leaks and spills. Being prepared for such an incident is critical to mounting a quick and effective response in order to minimize impacts on people and the environment. Nalcor Energy and its lines of business have developed Environmental Emergency Response Plans (EERPs) to quickly, effectively and safely deal with such incidents. All personnel who handle or work around petroleum products receive training related to the EERP and, where applicable, specific operating procedures have been developed to facilitate the safe handling of the products used.

and the oil quickly dissipated. Hydro Operations accounted for approximately 702 litres which was spilled or leaked. Five spills

One reportable incident occurred at the Menihek

involved spills or leaks of transformer insulating oil

Generating Facility in 2011. Approximately 1 litre

with an overall approximate volume of 548 litres.

of lubricating oil escaped to the tailrace during the

None of these incidents involved the release of

filling of the governor on Unit no. 3. Absorbent

PCB contaminated oil. Three incidents involved

materials were used to capture the oil sheen from

spills of a total of 152 litres of hydraulic oil from

the surface of the water.

mobile equipment. Two incidents involved less than two litres of hydrocarbon into waterbodies.

| 31


It should be noted that all spills and leaks were responded to promptly with spill response equipment and contaminated materials were collected in suitable containers for appropriate disposal. Appropriate sampling was also undertaken, where applicable, to ensure adequate clean-up was completed. Table 4 outlines the details of Nalcor’s more significant spill incidents.



STORAGE TANK IMPROVEMENT PROGRAM Hydro Generation has a Storage Tank Improvement Program which aims to reduce the risk associated with storage and handling of fuel systems. In 2011, the second diesel fuel monitoring system was installed at the Ebbegunbaeg Control Structure. The fuel system provides continuous leak detection and alarm

points back to the Energy Control Center and can be viewed online in the Energy Management System in real time. This particular fuel monitoring system is important due to the remoteness and surrounding sensitivities associated with the Ebbegunbaeg fuel storage area. In addition, Hydro Generation have taken a responsible approach towards completing a


Response /Status

March 8

Oil released from transformers during an ice storm.

240 L

Spill occurred approximately 25 metres from a protected water supply. A crew was immediately on the scene to contain the spill and start recovery of free oil and contaminated snow/ice. A vacuum truck was also called to assist in the clean-up. A small amount of soil was removed from the area, and sampling confirmed the cleanup was complete.

April 15

Hydraulic oil associated with hydraulic generating unit fire at Bishop’s Falls Powerhouse.

10 L

270 litres of oil was released, but it was estimated that only 10 litres was released to the tailrace via cracks in the turbine pit floor. Attempts were made to absorb the sheen, but it quickly dissipated. EERP reporting was completed. Provincial GSC investigated and was satisfied with the spill clean-up.

November 21

Unit #3 governor oil tank at the Menihek Hydroelectric Station.


A valve was not fully closed during refilling the governor oil tank on unit number 3. Approximately 200 litres of oil escaped inside the plant and a small sheen appeared on the tailrace. Absorbents and pumps were used to recover the oil inside the plant. An absorbent boom was used to capture the oil sheen on the tailrace.

Table 4: Details of Nalcor’s more significant spill incidents.

| 32


condition assessment of some older fuel storage

To support the spill prevention and management

Also, recommendations from the River Spill Study

systems to ensure the asset replacements are

program, a review of the transformer gallery

Report, that was completed in 2010, were further

identified within the five to 20-year capital budget

sump pump design was undertaken. The existing

evaluated and a plan developed to implement

plan. This approach enables Hydro Generation to

transformer gallery sump system is designed

the accepted recommendations from the report.

utilize its assets to their full life expectancy and

to mitigate any release of oil to the surge

These recommendations included improving the

accurately budget for replacement before system

chamber and tailrace under normal and expected

spill response materials and equipment, such as

failures are encountered.

emergency scenarios.

having a mobile storage trailer, boating equipment and increasing the spill response supplies on site.


The original design drawings, failure reports, control drawings and discussions with

The work done on improving the spills prevention

It is realized that oil spill response in the Churchill

maintenance staff regarding the transformer

and management program in 2011 and the

River is difficult given the high flows and is nearly

gallery sump pump design were reviewed and

subsequent work recommended for 2012 and

impossible, due to safety reasons, when the

recommendations were provided for possible

beyond, reinforces Churchill Fallsâ&#x20AC;&#x2122; commitment to

river is ice covered. In 2011, as part of Churchill

areas for improvement.

minimize the risks and potential consequences of spills entering the Churchill River.

Fallsâ&#x20AC;&#x2122; spill prevention and management program, a significant effort was put into limiting the

These recommendations included installing a

likelihood of any oil being discharged into the

low level alarm, reviewing and improving the

Churchill River from the powerhouse and to

preventive maintenance of the sump operations,

improve the response measures in place.

interlocking the cable shaft deluge controls and the sump pump controls, and implementing a study of the cable shaft deluge system.

| 33


Environmental Site Assessment and Remediation In 2000, Hydro implemented an ESA program for all properties it owns or operates. The ESA process the company follows is illustrated in Figure 2.

Regulator Input

Remediation Action Plan

List of Sites


Completion Remediation Phase Assessment Phase Communication and Input Reporting

Remediation Contract Management


Phase I

Phase II

Risk Assessment

Phase III


Regulator Input


No Further Work Required

Notification to Stakeholder

Figure 2: Environmental Site Assessment Process

Annual Report

Regulator Input

No Further Work Required

Notification to Stakeholder

Confirmatory Sampling

No Further Work Required

Notification to Stakeholder

| 34


The objectives of the ESA program are to:

Following the recommendations of previous

The company’s ESA program continues to be

• evaluate the potential for environmental

ESA-related work at Hydro, complete phase II

successful in identifying and managing the

assessments were performed at four sites, a

potential environmental contamination associated

limited phase II assessment was completed at

with Nalcor’s past and present operations.

contamination; • undertake sampling to characterize and delineate any contamination; • assess the potential risks and liabilities associated with any contamination identified;

one site and additional delineation, soil and groundwater sampling and monitoring programs were continued or completed on six properties, four on the island and two in Labrador.

Phase l – review of information and records, site visit and interviews

In 2011, the Churchill Falls ESA program continued

Phase II – characterization of a site for physical aspects and potential contamination

• identify sites requiring monitoring or remediation; and, • develop and implement remediation programs when necessary.

at nine sites with the completion of two phase II site assessments, ongoing ground water monitoring and free product recovery at six sites, and additional delineation with monitoring well installation at one site. Five sites were located in remote areas while the other four sites were located around the town site and airport infrastructure.

Risk-based corrective action (RBCA) – a methodology that identifies a site-specific target level of contamination that has an acceptable risk to human health Remediation – site cleanup to a specified regulatory standard

| 35


Species and Habitat Diversity was approximately $6.5 million and resulted in a potential increase of 149 tonnes of sulphur dioxide emissions and 35,000 tonnes of carbon dioxide emissions. RAPTOR PROTECTION PROGRAM For more than 20 years, Hydro has managed a Raptor protection program. In keeping with Nalcor’s Environmental Management System and the corporate Environmental Policy and Guiding Principals, surveys are undertaken by FISHERIES COMPENSATION WATER RELEASE In 2011, as part of long-term agreements with the Department of Fisheries and Oceans, Hydro released approximately 146 million cubic metres of water at its fisheries compensation facilities. The water released at White Bear River, Grey River, Granite Canal, Upper Salmon and Hind’s Lake was performed at established times throughout the year for habitat protection and fish migration.

Because of the isolated nature of the island’s

Hydro’s Environmental Services Division on the

electrical system, lost hydroelectric energy

transmission lines in Labrador for the presence of

production associated with these water releases,

active raptor nests. This is an annual survey that is

under normal conditions, must be provided by

undertaken in consultation with the Department

thermal generation from the Holyrood Generating

of Environment and Conservation, Wildlife Division.

Station. The amount of thermal production

These nests are primarily osprey, with smaller

required to offset the amount of water released

numbers of northern ravens, red tailed hawks and

in 2011 was nearly 43 gigawatt hours. When the

bald eagles. Surveys are undertaken early in the

thermal conversion rate and average cost of fuel

egg laying stage of the breeding season at which

are considered, the equivalent value of the water

time nests that would be active for the year are

released at all fisheries compensation facilities

usually occupied or show signs of occupancy.

| 36


Surveys were undertaken in late June 2011 and there were a total of 152 nests on the


three transmission line corridors in Labrador.

Several types of plants present on the Tablelands are specially adapted to serpentine soil, hence are overall, rare species. Marcescent sandwort

This data was provided to work crews in Labrador

In the early 1960’s, a distribution line was built

(Minuartia marcescens), Newfoundland chickweed

immediately following completion of the surveys

leading from the community of Shoal Brook to

(Cerastium terrae-novae), intermediate wild oat-grass

to allow for planning of maintenance activities on

Trout River. A portion of the line was upgraded

(Danthonia intermedia), Aleutian maidenhair fern

these transmission lines. Structures with active

in 1983, however, today, there is the need for

(Adiantum aleuticum) and Arctic willow (Salix arctica)

nests are avoided until after the breeding season,

a major upgrade of this line. To accommodate

are only known to occur on serpentine substrates

usually after August 15. This allows line crews to

this, in 2012, Hydro is proposing to replace most

within Newfoundland.

avoid potential negative impacts on these species

of the poles between the communities of Shoal

during the critical periods within the breeding

Brook and Trout River. While replacement of old

The original distribution line was constructed

regime, which in turn ensures compliance with

poles across Newfoundland and Labrador Hydro’s

before the creation of Gros Morne National Park.

wildlife legislation regarding migratory birds in

distribution system occurs on a regular basis, the

Poles were placed quite a distance back from the

Newfoundland and Labrador.

problem in this region is the unique habitat.

road, among the undisturbed serpentine barrens. Also, poles were placed on the Tablelands side of

Raptor nests are also found on Hydro’s transmission

Much of the upgrade will take place along the

and distribution structures on the island of

serpentine barrens of the Tablelands. This habitat

Newfoundland, but there are not nearly as many

type is quite rare in Newfoundland, found mainly

Hydro works in conjunction with government

as on Labrador structures. Active nests on island

in the Tablelands of Gros Morne National Park.

and other agencies to accomplish environmental

structures are also surveyed periodically to assess

The rocks located in these areas are serpentinized

protection standards. In this circumstance, Hydro

status and potential conflicts with Hydro’s operations.

peridotite, the material that comprises the oceanic

consulted with Parks Canada about the proposed

crust. Peridotite is an ultra-basic rock which surface

distribution line upgrade. It was decided, where

oxidizes to a characteristic orange-rust colour and

possible, for new poles to be erected adjacent to

is toxic to most plants.

Highway 431. This area was already disturbed

the highway (the most photographed portion).

| 37


The Tablelands, Gros Morne National Park maintenance would access the poles from the highway, minimizing any plant disturbances along the highway shoulder. From an aesthetics point, the new distribution line will be erected on the north side of Highway 431, allowing future tourists to take unobstructed photos of the Tablelands. The only exception will be a short 1.3 km portion beyond the Green Garden-Wallace Brook parking lot where the steepness of the roadside makes erection of poles on the north side impractical. The Memorial University of Newfoundland Botanical Garden has collaborated with Hydro on several activities relating to this work. A survey of plant species that may be impacted by the proposed distribution line between Winterhouse Brook and Trout River in 2011 is the most recent collaboration between the Botanical Garden and Hydro. The survey identified rare plants (as noted above) in the vicinity of new and existing during road construction and thus would have the

distribution pole locations that will have to be

least chance of encountering sensitive serpentine

avoided during the construction of the new and

flora. Machinery needed for installation and

decommissioning of the existing distribution line.

| 38



The Bateau Barrens area is not known to be home

region completed in 2011 by Memorial University

to any Species at Risk (SARA listed species) within

of Newfoundland Botanical Garden documented

Newfoundland but could potentially be areas for

the presence/absence of rare plants that could be

provincially rare species. The botanical survey of this

potentially impacted upon by Hydro’s activities.

Great Northern Peninsula is well known for its significant number of endangered and threatened plant species, as well as species which are provincially rare. Several of these plants are known to occur along and around Hydro’s transmission and distribution installations. To minimize future disturbances to these plants, Hydro has documented any significant plant locations that may be impacted by its transmission and distribution line maintenance activities. If any such plants should be found near work sites, Hydro can adjust its activities accordingly. Over the past few years Hydro has had botanical surveys done along all transmission lines and trail access points along the limestone barrens region. The only significant region left to be surveyed was the Bateau Barrens region located just south and north of the community of Bellburns. The Bateau Barrens – Great Northern Peninsula

| 39


PRESERVING THE ATLANTIC SALMON RUN Exploits Generation staff manage a very successful Atlantic salmon diversion system on the Exploits River in Central Newfoundland. In partnership with the Department of Fisheries and Oceans, fish biologists and the Environmental Resource Management Association, an Atlantic salmon enhancement project that started in the early 1960s has seen the natural adult salmon run grow from 1200 strong to an adult incoming run in the range of 40,000 today. Every year, spring runoff brings with it adult salmon that have migrated downstream from the spawning grounds. Some of these adult salmon will enter the power canal at the Grand Falls hydroelectric plant. Barriers prevent the salmon from entering the power generation turbines once they reach the power canal. Without assistance, they can be delayed in their migration downstream. A group from Finland visited Exploits Generation in August 2011 to learn more about successful fish passage on the Exploits River.

Exploits Generation staff begin visually monitoring

state owned power utility and scientists, visited

the power canal at the end of April when water

Exploits Generation in the summer of 2011

temperature begins to rise. Through a cooperative

to learn firsthand about the achieved success

effort which started in 1997, local fishermen and

experienced on the Exploits River. One of the

Exploits Generation employees remove salmon from

positive outcomes is the great cooperation with

the power canal and transport them downstream.

the Environmental Resources Management Association (ERMA) who operate the fishway and

2011 was another successful year for fish passage

salmonoid interpretation center at Grand Falls

at Exploits Generation. The number of adult

during the passage of the upstream migrating

salmon migrating upstream at Bishopâ&#x20AC;&#x2122;s Falls

salmon. As part of the 2011 capital program

was only slightly lower than the record set in

at Exploits Generation, new fish louvers were

2010. The Exploits River is getting international

constructed for use in the Grand Falls forebay as

attention for it success story around Atlantic

part of the fish diversion system which helps keep

salmon. A group from Finland representing the

juvenile salmon from entering the turbine intakes.

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WIND-HYDROGEN-DIESEL ENERGY PROJECT While the province has an abundance of

Hydro is demonstrating its commitment as an

renewable resources, many coastal isolated

environmental leader. In 2009, in an effort to

communities rely on diesel-fueled generation

reduce emissions from burning fossil fuels, Hydro

systems for electricity generation. In its efforts to

increased its renewable generation. Hydro has

reduce reliance on fuel-fired generation, Nalcor

power purchase agreements for 54 megawatts

has built one of the first projects in the world

of clean, renewable wind energy. The integration

to integrate generation from wind, hydrogen

of wind power in Newfoundland has broadened

and diesel in an isolated electricity system. The

Hydro’s energy mix and allowed the company to

Wind-Hydrogen-Diesel Energy Project in Ramea

continue providing electricity at a reasonable cost.

is a research and development project that uses renewable energy sources to supplement the

Wind generation is an environmentally-friendly, pollution-free and endless source of energy. It is clean and leaves a small environmental footprint on the province. On the island, wind generation will help reduce fossil-fired generation at Hydro’s thermal generating station in Holyrood. On average, the annual environmental benefits from the wind farms in St. Lawrence and Fermeuse are:

• reduction in fuel consumption by about

diesel requirements of the island community.

300,000 barrels; • reduction in sulphur dioxide emissions by over 660 tonnes; • reduction in carbon dioxide emissions by over 147,000 tonnes; and, • generation of green energy for the equivalent of up to 12,700 homes.

This unique project has attracted attention from around the world. Nalcor continues to promote the renewable energy and energy storage benefits of the project through presentations at various workshops and conferences.

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The Coastal Labrador Alternative Energy study is a

System (EMS). The EMS automatically controls

Nalcor is also investigating renewable energy

of Newfoundland and Labrador. In 2009,

and monitors the site operations in order to

sources for diesel communities. In late 2010,

Government invested approximately $250,000

deliver electricity to customers in Ramea in a

the Government of Newfoundland and Labrador

for Hydro to investigate the potential for the

safe, efficient and reliable manner. In 2012,

announced $2.5 million to further study small-

integration of alternative energy sources, including

Nalcor will embark on the demonstration phase

scale hydroelectric projects for some Labrador

solar, wind and micro, mini and small hydroelectric

of the project. This multi-year phase involves

coastal communities.

facilities into isolated communities that rely on

In 2011, Nalcor individually commissioned equipment including the Energy Management

studying the operation of the entire system,

joint venture between Hydro and the Government

diesel generation as a primary means of electricity.

analyzing collected data, optimizing operations,

Further to this announcement, in March 2011, the

Seven communities selected for the study were:

and exploring key questions with regards to this

government provided Hydro with $2.5 million to

Cartwright, Charlottetown, Hopedale, Makkovik,

technology and the role it can play in isolated

carry out further study of small-scale hydroelectric

Maryâ&#x20AC;&#x2122;s Harbour, Nain and Port Hope Simpson.

electrical systems around the world.

projects, and in addition, provided $900,000 to conduct an assessment of the wind resource for

This initiative is primarily guided by the two

some Labrador coastal communities. Throughout

main objectives outlined in the Newfoundland

2012 to 2015, Hydro will complete further analysis

and Labrador Energy Plan: protection of the

of potential hydro generation sites and wind

environment through the reduction of emissions;

power potential in this region. The hydroelectric

and, the development of energy projects in the best

study is focused on potential hydroelectric

long-term interests of residents of the province.

sites near Maryâ&#x20AC;&#x2122;s Harbour, Port Hope Simpson, Charlottetown, Makkovik, and Hopedale. The wind resource study is focused on wind power potential near Cartwright, Makkovik, Hopedale, and Nain.

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Energy Efficiency and Conservation TAKECHARGE ENERGY CONSERVATION PROGRAM takeCHARGE is a joint initiative between Hydro and Newfoundland Power that is aimed at providing Newfoundlanders and Labradorians with information, tools and rebate programs to assist them in using energy wisely. In 2011, all takeCHARGE initiatives experienced growth, particularly in the residential sector. Significant growth was made in the energy

increase awareness and interest in energy efficiency overall. It also allowed for Hydro and Newfoundland Power to explore a new method of customer engagement. The program had the additional benefit of further educating and engaging retailers and retail staff on energy efficiency, which provides additional support to customers looking to conserve energy. Since the inception of this program, Hydro has seen an increase in the interest of retailers in working with Hydro to promote energy efficiency

COASTAL LABRADOR ENERGY EFFICIENCY PILOT PROJECT Mary’s Harbour and Nain takeCHARGE to live greener In the fall of 2011, takeCHARGE, with funding from the Department of Natural Resources, helped make Newfoundland and Labrador houses become a little greener through the second phase of The Coastal Labrador Energy Efficiency Pilot Project in Mary’s Harbour and Nain.

education and products.

savings associated with the insulation rebate

“The project explores conservation and efficiency

program, in large part due to a targeted promotion

opportunities for residential and commercial

in the fall of 2011. The commercial sector saw very

properties,” says Elaine Cole, Energy Efficiency

strong growth in 2011 as well, due to an increase

Advisor with Newfoundland and Labrador Hydro.

in the number of participating lighting distributors

“Its objective is to enable customers to take action

and the installation of eligible lighting systems in

today, to conserve energy now and into the future,

some schools in Hydro’s service area.

regardless of their energy source.”

A Coupon Program Pilot was launched in the

Program representatives also promoted the

fall of 2010 and ended in the spring of 2011.

Newfoundland and Labrador EnerGuide for Houses

This initiative raised homeowner awareness of a

A field representative hands out takeCHARGE! coupons

Program and the Residential Energy Efficiency

wide range of energy efficiency technologies and

during the “A Buck A Bulb” event in Labrador City.

Program (REEP). The programs offer homeowners

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subsidies and grants to help retrofit their houses to

Alton Rumbolt,

make them more energy efficient.

Field Representative, installs a low-flow

With project representatives on the ground,

showerhead to help

takeCHARGE helped homeowners identify ways

a Mary’s Harbour

to become more energy efficient, and took

homeowner save

an opportunity to increase the level of energy

energy and water.

conservation knowledge. Both Mary’s Harbour

business owners to identify deeper energy efficiency measures for their operations. “takeCHARGE is giving these two communities the information and tools they need to use energy wisely,” says Elaine. “They now know that it starts with simple things like remembering to flick the switch to turn off lights and appliances and slow the flow with low-flow shower heads. There are many easy ways to save energy and money.”

energy use tracking, walkthrough audits of facilities, supports the evaluation of energy efficiency options for capital projects and provides education on energy use to employees. In 2011, a number of initiatives were implemented, including installation in the Nain Diesel Plant (potential savings of

which resulted in saving energy and money for takeCHARGE will also work with commercial

Hydro’s Internal Energy Efficiency Advisor conducts

of a Waste Heat Recovery System for space heating

and Nain showed great interest in the project, community residents. As part of the project,



60 MWh/yr); implementation of further low-cost measures identified in the 2012 Bishop Falls audit

In 2011, Hydro introduced the Industrial Energy

(potential savings of 55 MWh/yr); and, optimization

Efficiency Program (IEEP) under the takeCHARGE

of the temperature settings on a pipe line at the

brand with three projects. These are the first

Holyrood Generation Station which transports

capital retrofits to be incented through the

number 6 fuel oil from tanker ships to the tank farm

program. One project began generating savings

for storage (potential savings of 114 MWh/yr).

before the end of 2011 and the other two are expected to see savings in 2012. Significant effort

takeCHARGE mascot at

was required to generate this participation in the

Hydro Place promoting

IEEP, and there remains a great need for strong hands-on support to enable customers to manage their daily operational priorities while examining energy efficiency and developing efficiency plans.

energy efficiency to Nalcor employees.

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Hydro is dedicated to the promotion of

youth throughout the province! Though the three

environmental awareness and preservation

projects in Happy Valley-Goose Bay, Flower’s

of Newfoundland and Labrador’s unique

Cove, and Millertown all had a different focus,

In Flower’s Cove, the Team was sponsored by

environment. A priority for Hydro is to

they all shared a common goal, as do all Green

Hydro and engaged in restoration activity at Sandy

build and cultivate partnerships with other

Teams, which is to provide meaningful youth

Cove Provincial Ecological Reserve. Throughout

agencies and organizations to achieve

employment opportunities with an environmental

the summer they engaged in the removal of the

and cultural focus.

invasive Coltsfoot weed from Threatened Fernald’s

common environmental objectives. These partnerships maximize human and financial resources to generate a body of knowledge and experience that can be used for environmental decision-making in a variety of applications. CONSERVATION CORPS NEWFOUNDLAND AND LABRADOR


They also assisted in the delivery of ATV education

Happy Valley-Goose Bay’s Green Team, sponsored

Species at Risk plants and assisted with other

by Nalcor Energy and in partnership with the

stewardship activities in an effort to address

Town of Happy Valley – Goose Bay, focused on

ongoing stewardship of the Limestone Barrens.

trail development in 2011. The Team built upon the work completed by the 2010 Green Team and continued work on the Mud Lake Walking Trail.

Since 1996, Hydro has supported 23 Green Teams through Conservation Corps Newfoundland and Labrador’s Green Team Program, employing 91 youth and contributing nearly $309,000 to support local employment opportunities for

The Team cleared debris along the existing road and also planted trees. They spread crushed stone and carried out all aspects of developing the remaining five kilometres of trail along the Churchill River.

as it relates to the Limestone Barrens and its

| 45


MILLERTOWN – MARY MARCH WILDERNESS TRAIL ENHANCEMENT The Millertown Green Team, sponsored by Nalcor Energy, performed trail enhancement on the Mary March Wilderness Trail and worked on two cultural restoration projects. The Team placed rock to reduce erosion and finished the trail with gravel and sand, designed signage to place on the trail and constructed two pit toilets. The Team also focused on cultural restoration projects by making repairs to replicas of a Beothuk Mamateek and



Since the early 1990s, the Nature Conservancy

Envirothon is an environmental education

of Canada (NCC) has protected 22 properties

competition for youth that raises awareness

encompassing 2,549 acres of Newfoundland’s

of environmental issues through hands-on

natural habitat, such as Sandy Point and Lloyd’s

learning and outdoor competitions in five subject

River Escarpment. Hydro’s support over the

areas: Aquatic Ecology; Forestry; Soils and

last number of years has helped the NCC, a

Land Use; Wildlife; and, Current Environmental

conservation land trust organization which protects

Issue (selected annually). This competition is

the country’s most ecologically significant land,

organized by Model Forest Newfoundland and

acquire 145 acres of land in the internationally

Labrador, a not-for-profit corporation working on

recognized Grand Codroy Estuary Ramsar site.

the implementation of activities that advance

Smoke House.

sustainable forest management and communitybased economic development utilizing forest resources. Hydro has been a proud supporter of this initiative for several years, and in 2011 continued its support as a bronze partner.

In 2011, Millertown Green Team members (L-R) Stephen Butt, Jill Maloney, Whesley Hynes, and Renée Harris (Team Leader) enhanced the Mary March Wilderness Trail and two cultural restoration projects.

| 46



develop a recovery plan for these species. Through

this region in 2011 by Memorial University of

this support, the Botanical Garden has been

Newfoundland Botanical Garden documented the

Hydro owns and operates transmission and

involved in off-site (or ex situ) conservation.

presence/absence of rare plants that could be potentially impacted by Hydro’s activities.

distribution line facilities on the Great Northern Peninsula. Some of the environments in this area

In 2011, ex situ activities included replanting

are the limestone barrens habitat which contains

cuttings from the Barren’s Willow and collecting

A survey of plant species that may be impacted by

rare and endangered plants (e.g., Barrens willow,

seeds from Long’s Braya and planting a portion

the proposed distribution line upgrade between

Fernald’s braya and Long’s braya) protected by

of the seeds in an experimental sand bed at the

Winterhouse Brook and Trout River in Gros Morne

the Federal Species at Risk Act and Provincial

Botanical Garden.

National Park was also performed in 2011 by Memorial University of Newfoundland Botanical

Endangered Species Act. Over the past few years, Hydro has also had

Garden. The survey identified rare plants in the

As part of Hydro’s commitment to protecting

botanical surveys done along all transmission

vicinity of new and existing distribution pole

species of the limestone barrens, a strong

lines and trail access points along the limestone

locations that will have to be avoided during the

partnership has been in place with Memorial

barrens region. The only significant region left

construction of the new and decommissioning of

University’s Botanical Garden for several years.

to be surveyed was the Bateau Barrens region

the existing distribution line.

In 2011, Hydro’s financial support and guidance

located just south and north of the community

was focused on the Botanical Garden’s efforts to

of Bellburns. The botanical survey completed of


Profile for Nalcor Energy

2011 Environmental Performance Report  

Nalcor Energy 2011 Environmental Performance Report

2011 Environmental Performance Report  

Nalcor Energy 2011 Environmental Performance Report

Profile for nalcor