The Atlin Hydro Project

1

• The Atlin Hydro Project

September 30, 2009
Peter Kirby Stuart Simpson
2
Combining 3 Important Goals

• The TRTFN are actively building a working model
  that can help sustain our people for many
  generations to come.
• Revival of cultural values and sustenance
• Responsible management of resources
• Sustainable economic development

The Atlin Hydro Project is a critical component
of achieving this vision
3
Sustainable Development
4
TRTFN Development Corporations
Taku River Tlingit First Nation
5
Structure Limited Liability Partnership
Main objective - to protect the Nation and its
citizens from any liability that may result from
the development and ownership of the Project.
TRT First Nation
Owns 99.99 of Partnership Units
Owns 100 of Shares
Owns 0.01 of partnership units
Limited Liability Partnership (LLP) Formed
under the B.C. Partnership Act (Single Limited
Partner)
General Partner (GP) B.C. Incorporated
Company Board of Directors elected by
Shareholders
Operates LLP
Owns 100 of the Project
Loan from Financial Institution Secured only by
LLP and GP Assets by way of Mortgage, General
Security Agreement, etc.

Hydro Project Assets like Generator, Turbine and
EPA
6
The Atlin CEP (Community Energy Plan)

• A joint TRTFN and BC Hydro initiative for the
  whole community, completed in 2003/04
• Electricity Demand Assessment
• 20-Year Demand Projection
• Energy Efficiency Recommendations
• Power Supply Options Assessment
• Wind study (wind towers)
• Connection to Yukon power grid (YEC)
• Hydro (pre-feasibility study, 3 scenarios)

7
CEP Results Atlin Diesel Generating Station

• Prime power source for Atlin.
• Built 1978, high maintenance costs.
• Burns about 1.3 million litres of diesel per
  year.
• Environmental risks of transporting/storing
  fuel.
• Greenhouse gas emissions of about 4,000 tonnes
  per year, increasing as energy demand increases.
• Over 150,000 tonnes of GHGs in next 25 years
• Costs far more to produce electricity than
  customers pay for it, resulting in rate subsidy
  to NIA (off-grid) communities in BC.

8
Hydro Project

• 2.1 MW Hydro project on Pine Creek to replace
  diesel generators and supply Atlin.
• 711,000 feasibility-licensing phase (in 2005/06)
• 900,000 design, tender and finance phase (06/07)
• TRTFN did much of work in-house have secured an
  experienced development team
• Very high government interest and support
• Positive community support

9
Project Timeline

• Project Milestones Anticipated Completion Date
• Public Consultation Information (ongoing)
• Completion of Strategic Plan 2001 (compleTed)
• Approach BC Hydro to initiate CEP 2002
  (completed)
• Community Anergy Planning Project 2003
  (completed)
• Apply for Water LicEnce - LWC 2004
  (completed)
• Secure Development Financing 2004-2006
• Project Permitting StudieS 2005 (completed)
• Develop Proposal tO BC Hydro 2005 (completed)
• Submit FinAl Development(completed)
• Federal Approvals, Permitting 2006 (completed)
• Negotiate DPA with BC Hydro 2005-06 (completed)
• _at_2ovincial Apprgvals, Permitting 2006
  (completed)
• Capital Financing 2006 (completed)
• Final Design and Tenders 2006 (completed)
• Construction 2007-09 (completed)
• Commercial Operation Date (COD) 2008 April 1
  2009

10
Main Areas of Project Management Effort 2004 to
2006
Feasibility Study Design Engineering
Financing
Energy Purchase Agreement (EPA) Negotiations
Environmental Assessment and Permitting
11
Technical Support during the Development Phase
TAKU LAND CORPORATION
BC Hydro (E.P.A.)
Potential Partners (only if required)
Atlin Tlingit Development Corp. (coordination,
admin)
Sigma Engineering (design, feasibility)
Sargent Vaughn (mechanical)
Via-Sat Data Systems (hydrology)
Elite Engineering Ltd. (electrical)
Fisheries North (biological)
Northwest Hydraulics (fish passage design)
EBA Engineering Ltd. (geotechnical)
David Austin (legal)
Culminex Inc. (financial)
12
Permitting Agencies

1. Land and Water BC
2. Canadian Environmental Assessment Act (CEAA)
3. Taku River Tlingit First Nation
4. Department of Fisheries and Oceans
5. BC Ministry of Transportation
6. BC Ministry of Forests

1. BC Ministry of Community Services
2. Atlin Advisory Planning Commission
3. Indian Northern Affairs
4. Transport Canada Navigable Waters
5. Ministry of Energy, Mines and Petroleum Resources
6. Environment Canada

13
Inter-Agency Site Visit at Surprise Lake Control
Site.
14
Biological Impact Assessment
Study Design
Wildlife
Hydrology
Fish Distribution
Aquatic Habitat
Fish Migration
15
Biological Impact Assessment Description of
Results
Lower Pine Creek
Upper Pine Creek
Surprise Lake Tribs.
Location of intake site down to Atlin Lake.
Lake body and its 11 major tributaries.
Existing bridge at Surprise Lake outlet , down to
intake site.
16
Project Description

• Project Elements (moving downstream)
• Discharge control structure and fish ladder at
  Surprise Lake bridge
• Intake on Pine Creek, east of Discovery
• 48 inch Penstock-pipeline 3.9 km from intake to
  powerhouse
• Powerhouse and switch-yard near confluence of
  Pine and Spruce Creeks
• 4 km Powerline from powerhouse to interconnection
  with existing grid

17
Project Location
Surprise Lake
Intake headpond
Penstock pipeline
Storage Control
Powerhouse
ATLIN Lake
18
Google Earth Looking East
Surprise Lake Control Structure
Intake
Penstock
Powerhouse
Powerline
Diesel Generating Station (local grid)
19
Surprise Lake
Will be used for seasonal water storage. Area
31 square km.
20
Surprise Lake Road
Discovery
Spruce Creek Road
21
Typical Intake Weir
Furry Creek, Sigma Engineering
22
Penstock Pipeline

• 3.66 km length
• 105 m gross vertical head
• 48 diameter high density polyethylene
• Buried 2 m deep, minimal impacts
• to wildlife and human movement

23
Penstock Plan and Profile
24
Powerhouse and Powerline

• Located just above confluence of Pine and Spruce
  Creeks
• 2.1 MW Pelton turbine generator
• Tailrace channel back into Pine Creek
• Transformer and Switchyard
• 4 km of 25kV powerline connecting to existing
  local grid at Diesel Plant
• Land tenures required
• Will cross active mining tenures

25
Airport Industrial Lots
Pine Creek
Spruce Creek
Public Panning Area
26
Employment and Contracting

• 25 jobs during construction
• Some subcontracting opportunities
• Operations have hired TRTFN employees
  interested in technical training and post
  secondary education, to assist with operating the
  hydro plant and, in the future, the diesels on
  backup.

27
Looking Ahead a Generation

• 25 years of steady revenue stream to TRTFN, not
  tied down with government restrictions and
  reporting requirements.
• Source of TRTFN business investment money, equity
  to leverage funding, community projects, TRTFN
  citizens benefit.

28
Looking Ahead Several Generations

• 25 years to pay off the loan, then negotiate a
  new agreement with BC Hydro increased future
  revenue stream (50-75 years).
• We only use as much of our hydro generating
  capacity as Atlin needs. This means there is a
  surplus of energy-making capacity in our hydro
  plant especially at nights and during the
  summers. We can start thinking about what
  business ideas we can use a lot of cheap energy
  for any ideas?

29
Investing in COMMUNITYwhat TRT is doing

• Sustainable Development, resource management
• Reviving Culture
• Development Corporations
• To create a healthier community
• To create a better future for our citizens
• To create pride

30
Investing in COMMUNITYwhat TRT is doing

• Sustainable Development, resource management
• Taku Wild, Xeitl Limited Partnership
• Negotiations with BC and Canada regarding
  decision making in our homeland
• More control of fishery on Taku River

31
Investing in COMMUNITYwhat TRT is doing

• Reviving Culture
• Created new Department of Culture
• Dance Groups, adult and children, performed at
  Atlin Music Festival, Canada Games, and have been
  invited to Olympics (pride in dance group and in
  community)
• Language instruction and investment in materials
• Recording our history from Elders, creating
  lasting legacies with books to reinforce our
  connection to the land to others who do not yet
  understand

32
Investing in COMMUNITYwhat TRT is doing

• Corporations
• Success in major projects and community
  infrastructure instills pride and can do attitude
• Success demonstrates, both inside and outside the
  community WE CAN so people are willing to invest
  their time and money in larger projects
• Success allows the creation of more permanent
  jobs that allow security for those who work for
  TRT and corporations
• Continuity, consistency, and equity in all
  operations and decisions allows security for
  investors and for employees

33
Citizen Benefits

• More pride
• More security for employees and citizens
• More demonstrated ability in community
• More willingness to chip in
• More participation from citizens and from a
  broader range of citizens
• More citizen belief in what we can do
• A step toward a healthier community

34
Culture and Recreation

• Camps, trail maintenance
• Tlingit Art, Music, Dance, Language, Regalia
• Artifact preservation, storage, display
• Cemetery maintenance
• Tlingit Celebrations in Juneau (travel)

35
Community Infrastructure

• Five Mile Marina upgrades
• Skating rink, playgrounds, picnic areas, camps
• Gaps in OM budget
• Equity to leverage additional funds for capital
  projects new infrastructure, housing, etc

36
For More Information

• President CEO Peter Kirby
• Phone [phone]
• Atlin Tlingit Development Corporation
• Taku Wild Products Limited
• Xeitl Limited Partnership
• Box 408, Atlin BC, V0W1A0

37

• GUNACHEESH