Town of Collingwood, Ontario, Canada

The Ministry of the Environment has issued a Control Order (number 3810-7JJRUB) under Section 7 of the Environmental Protection Act, R.S.O. 1990, c. E 19 (“EPA – Environmental Protection Act) to Collingwood Ethanol GP Limited.

A Provincial Officer’s Report, submitted on January 29th, 2009, by Jason Lehouillier, Provincial Offer, from the Barrie District Office of the Ministry of the Environment, has outlined the key background facts, issues and concerns regarding this matter and the reasons for the order. “I am of the opinion that the discharges from Collingwood Ethanol are contributing to the noise and odours being experienced downwind of the East Collingwood Industrial Park, resulting in an adverse effect, specifically, loss of enjoyment of normal use of property and discomfort to persons” Lehouiller stated in his report. “I believe that Collingwood Ethanol must take action to prevent any continuation or repetition of these contraventions” he added.

By use of a control order, the Ministry may impose a variety of controls on the operation of Collingwood Ethanol including the jurisdiction “to stop the discharge of the contaminant into the natural environment,

(i) permanently,

(ii) for a specified period, or

(iii) in the circumstances set out in the order.

Last fall, a draft of the Order was posted on the Environmental Registry on October 6, 2008. Over one hundred comments were received. Most of the comments were from persons who had either personally experienced the adverse effects of noise and odour in the area or were employed by Collingwood Ethanol.

On Tuesday, January 20, 2009, Mr. Lehouiller visited Collingwood and met with representatives of the Town of Collingwood, the Collingwood East Environmental Action Committee, Collingwood Ethanol and the neighbouring business Canadian Mist Distillers Limited. Lehouiller said that he has also discussed the significance of a control order with the provincial and federal agencies that provide financial support to Collingwood Ethanol.

"The Report finds that Collingwood Ethanol is discharging contaminants, namely odour and noise, into the natural environment and that these contaminants are causing an adverse effect, in contravention of subsection 14(1) of the EPA and section 33, clauses (a), (b), and (c) of O. Reg. 419/05. Accordingly, having reviewed the Report, I am of the opinion that I am authorized to issue this Order under Section 7 of the EPA against Collingwood Ethanol” Lehouiller states in his written submission.

The Order provides a mechanism whereby the Ministry will continue to work with Collingwood Ethanol to better address the odour and noise issues in the area.

Lehouiller outlined the observations of various Ministry of the Environment observations and samplings, including the most recent findings observed Wednesday January 21st and Thursday January 22nd of this year. “On the evening of Wednesday, January 21, 2009 and on the morning of January 22, 2009, I observed very strong odours in and around the Blue Shores Community, having a putrid, sour odour. Winds were light and from the West. On both occasions, the Ministry received numerous complaints of strong odours in the vicinity of Blue Shores. On each of the two days, I observed a slight odour on MacDonald Road, upwind of Collingwood Ethanol, but this odour was not the same strength or characteristic as the odours that I observed downwind of the industrial area” Lehouiller reported. “In my opinion Collingwood Ethanol was contributing to downwind odours and they were sufficient to result in an adverse effect, particularly, loss of enjoyment of property” Lehouiller added.

Part two of Mr. Lehouiller’s report outlines “Work Ordered” as a result of the findings:

2.1

Persuant to the authority vested in me under section 7 and subsection 196(1) of the EPA, I hearby order you to do, or cause to be done, the following:

A) Effective immediately, cease any contravention of subsection 14(1) of the EPA and section 33, clauses (a), (b) and (c) of O. Reg. 419/05, Air Pollution-Local Air Quality, as amended, made under the EPA.

B) Effective immediately, within 24 hours of receipt from the Ministry of any written notification that Collingwood Ethanol may be a source of a contaminant that is causing and adverse effect, provide to the Director a written report an any discharges at the Site that may have contributed to the adverse effect and any measures being taken, and/or to be taken, by Collingwood Ethanol to control any discharge of any contaminants causing an adverse effect.

C) Within the time limits specified by the Director, carry out the requirements set out in a response to the actions taken and/or material provided by Collingwood Ethanol pursuant to Item B.

Any response by the Director shall be in writing. The response requirements shall be specified in detail and may include any one or more of the items listed in subsection 124(1) of the EPA including a requirement to stop the discharge of a contaminant into the natural environment.

The requirements will include that operations at the Site be shut down to stop the discharge from the Site into the natural environment of any contaminant cuasing an adverse effect, if such discharges are not effectively addressed by the actions taken and/or material provided by Collingwood Ethanol pursuant to Item B.

The Ministry of the Environment continues to observe and conduct odour sampling.