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IGRS EAST LANDFILL: LANDFILL GAS RECOVERY PROJECT

3/24/2012 Revision 2.1

2011 PROJECT DOCUMENT

East Landfill: Landfill Gas Recovery Project 2011 ISO 14064-2 Project Document

3/23/2012 Page i Revision 2.0

Table of Contents: Table of Contents: ................................................................................................................................................. ii

List of Figures ....................................................................................................................................................... ii

List of Tables ......................................................................................................................................................... ii

List of Appendices ................................................................................................................................................. ii

1. Introduction ................................................................................................................................................... 1

2. Project and Proponent Identification ............................................................................................................ 3

2.1 Project ................................................................................................................................................. 3

2.2 Project Proponent ............................................................................................................................... 3

3. Project Description ........................................................................................................................................ 4

3.1 Project Scope ....................................................................................................................................... 4

3.2 Project Site Description ...................................................................................................................... 4

3.3 Baseline Conditions............................................................................................................................. 6

3.4 Project Condition ................................................................................................................................ 6

3.5 Actions Taken...................................................................................................................................... 7

3.6 Project Eligibility Criteria ................................................................................................................. 10

3.7 Identification of Risks ....................................................................................................................... 10

3.8 Other Project Information................................................................................................................. 11

3.8.1 Other Ownership Info ....................................................................................................... 11 3.8.2 Environmental Impact Assessment .................................................................................. 11 3.8.3 Stakeholder Consultations ................................................................................................ 11 3.8.4 Socio-Economic Impact of Project .................................................................................... 11

4. Identification and Justification of Baseline .................................................................................................. 12

4.1 GHG Assessment Boundaries ............................................................................................................ 12

4.2 Sources Sinks and Reservoirs ........................................................................................................... 12

5. Quantification of Emission Reductions ........................................................................................................ 14

5.1 Relevant Equations and Calculations ................................................................................................ 14

5.2 Data Management .............................................................................................................................. 17

5.3 Monitoring and Quality Assurance / Quality Control (QAQC) Plan .................................................. 19

5.3.1 Equipment List and Inspection/Maintenance Schedule ................................................... 19

5.4 Emission Reduction Inventory Management .................................................................................... 21


03/23/2012 Page ii Revision 2.0

List of Figures Figure 1 IGRS – EAST LANDFILL – Process Flow Diagram

Figure 2 IGRS – EAST LANDFILL - Project Geographic Location and Orientation

Figure 3 IGRS – EAST LANDFILL – Wellfield – Overall System Layout

Figure 4 IGRS – EAST LANDFILL – Enbridge Metering Station Site Plan

List of Tables Table 1 Project Timeline

Table 2 Project Eligibility Criteria

Table 3 Sources, Sinks and Reservoirs

Table 4 Equipment List

List of Appendices Appendix A Ontario Regulation 232/98 Exemption Documents

Appendix B LFG Right Lease, between Niagara Waste Systems Ltd. (Lessor) & Integrated Gas Recovery Systems (Lessee)

Appendix C Agreement for the Sale and Purchase of Landfill Gas, between IGRS Partner Companies & Abitibi Consolidated Inc.

Appendix D 2011 Emission Reduction Claim Summary

Appendix E IGRS Methodology: Verification

Appendix F IGRS Methodology: Emission Reduction Inventory Management


3/24/2012 Page 1 of 21 Revision 2.1

1. Introduction

This Project Document for the East Landfill – Landfill Gas Recovery Project has been developed in accordance with the ISO 14064-2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements.

IGRS implemented an ISO 14064 approach to greenhouse gas (GHG) emission management at the project level starting in 2009, with the expectation that the system and methodology provided by the International Standards Organization will benefit the project, project stake-holders and emission reduction beneficiaries. Benefits include additional clarity and consistency for quantifying, monitoring, reporting and validating or verifying GHG inventories and projects.

Specifically, ISO 14064 provides for:

- Enhanced environmental integrity of the GHG quantification;

- Enhanced credibility, consistency, and transparency of GHG quantification, monitoring and reporting, including GHG project emission reductions and removal enhancements;

- The ability to track performance and progress in the reduction of GHG emissions and/or increase in GHG removals; and,

- More transparent crediting and trade of GHG emission reductions.

With the exception of the project not being located in the province of Alberta, the project is also consistent with the Quantification Protocol for Landfill Gas Capture and Combustion, 2007, developed as part of the Specified Gas Emitters Regulation (SGER) by Alberta Environment (ABENV).

As per the Alberta Environment’s Quantification Protocol for Landfill Gas Capture and Combustion, 2007, the baseline condition represents the emissions of GHGs from waste decomposition in a landfill that would have been released to the atmosphere without landfill gas (LFG) capture and combustion under controlled conditions. The baseline condition is thus dependent on the volume of LFG captured and combusted, and not on the size, waste composition, operational method or other characteristics of the project landfill.

This protocol does not attempt to estimate or quantify the total GHG emissions from a landfill. The GHG reduction calculation is based on the measurement of the volume of LFG collected and the assumption that all of the LFG collected would have been released in the absence of an LFG collection system. Thus the calculation of the total volume of methane generated in the landfill, using modeling or other calculation methods, is not required under this protocol

As per typical landfill gas recovery projects, methane is the only GHG that is of material significance. Other GHGs that are required to be quantified for emission reduction projects such as nitrous oxides and refrigerants are considered immaterial when quantifying the GHG impact of a landfill gas project.



Evidence is provided to support that:

1. Combustion is carried out under controlled conditions as demonstrated by a description of the LFG end use and specifications of the combustion device in use;

2. LFG is not vented directly to atmosphere under the project condition once it is gathered as demonstrated by operational records and/or an affirmation by IGRS;

3. Metering of gas volumes takes place upstream of collection within a reasonable distance of either the combustion device or point of inclusion in the off-site pipeline network such that the meter will account for the potential for fugitive emissions as demonstrated by a project schematics;

4. The quantification of reductions achieved by the project is based on actual measurement and monitoring; and,

5. The project meets other identified requirements as detailed in section 3.6.

Overall IGRS and its GHG Management Program are committed to the following principles:

- Relevance: Selecting the GHG sources, GHG sinks, GHG reservoirs, data and methodologies appropriate to the needs of the intended user.

- Completeness: Including and/or addressing all relevant GHG emissions and removals. Include all relevant information to support criteria and procedures.

- Consistency: Enabling meaningful comparisons in GHG-related information.

- Accuracy: Reducing bias and uncertainties as far as is practical.

- Transparency: Disclosing sufficient and appropriate GHG-related information to allow intended users to make decisions with reasonable confidence.

- Conservativeness: Using conservative assumptions, values and procedures to ensure that GHG emission reductions or removal enhancements are not over-estimated.

The Project Document is revised annually and issued with annual emission reduction claim summaries for the project. It is within the emission reduction claim summery (located in Appendix D) that the annual volume of emission reductions is documented.

This is the third edition of the Project Document listed on the CSA CleanProjects Registry; the expectation is that this project will continue to produce similar volumes of emissions reductions on an annual basis until the project completion date of December 31st 2016.

The Project Document provides context for the claim summary and background to explain the use of certain approaches or decisions taken. Explanation will generally include documentation of the following:

- How approaches were used or decisions taken.

- Why approaches were chosen or decisions made.



2. Project and Proponent Identification

2.1 Project

The project facilities are located at the East Landfill of Niagara Waste Systems Limited in Niagara Falls, Ontario and at the Abitibi Consolidated Recycled Paper Mill in Thorold, Ontario.

2.2 Project Proponent

Integrated Gas Recovery Services Inc. (IGRS) is a partnership between Comcor Environmental Limited (Comcor) and Integrated Municipal Services Inc. (IMS) that builds on the working relationship developed between the two companies over the last ten years. Integrated Gas Recovery Services Inc. (IGRS) is a full-service, landfill gas utilization company offering complete design, build, own and operating solutions for landfill gas utilization, control and emission reduction projects.

Primary Carbon Contact:

Kirsten Groody Business Manager – Renewable Energy Telephone: 905.680.3742 Fax: 905.680.1916 E-mail: [email protected]

Kyle Monteith Project Technician Telephone: 905.227.4143 Fax: 905.680.3699 E-mail: [email protected]

IGRS Management/Executive Contacts:

Walter Graziani Director Telephone: 519.621.6669 (Ext. 225) Fax: 519.621.9944 E-mail: [email protected]

IGRS has engaged ICF Consulting Canada, Inc. (ICF Marbek) to provide a third-party verification of the emission reductions asserted by IGRS related to the project activities discussed herein.

ICF Marbek Contact:

Chris Caners, P.Eng.

Manager

227 Wellington Street W. Suite 808

Toronto, ON M5V 3E4

E-mail: [email protected]

mailto:[email protected]�





3. Project Description

3.1 Project Scope

Integrated Gas Recovery Services Inc. (IGRS) operates the IGRS East Landfill – Landfill Gas Utilization Project, a facility designed for the collection, capture and recovery of LFG originating at Niagara Waste System’s East Landfill.

After collecting the LFG, IGRS cleans, dehydrates and compresses the recovered LFG and transmits the processed LFG through a pipeline (which is owned and operated by Enbridge Gas Distribution Inc. (EGD) to the Abitibi Consolidated Recycled Paper Mill at Thorold, Ontario located on Allanburg Road.

At Abitibi the processed LFG gas is conveyed to one of two boilers located in the mill’s steam plant where it is combusted in conjunction with natural gas, to achieve the target blended heat rate that Abitibi sets to ensure compliance with its boiler operating and product quality objectives. The consumption of the LFG in Abitibi’s boilers significantly reduces Abitibi’s requirement for natural gas.

This project document reports the emission reductions associated with the operation of the project between January 1st, 2011 and December 31st, 2011.

3.2 Project Site Description

The LFG system is located at Niagara Waste System Landfill; 2800 Thorold Townline Road, Niagara Falls, Ontario L2E 6S4, The Abitibi Mill is located at 2 Allanburg Road, P.O. Box 1040, Thorold Ontario, L2V 3Z5. The project boundary is indicating in the process flow diagram, FIGURE 1, which also indicates the location of the collection, processing, metering, analysis and transmission equipment for the Project. Geographic location and orientation of the site is provided in FIGURE 2, which shows the layout of the East Landfill, IGRS Gas Plant, Pipeline, and relative location of the Abitibi Consolidated Mill.

Project Latitude: 43.122271

Project Longitude: -79.172518



East Landfill Wellfield

IGRS East Landfill Plant

IGRS Gas Analyzer #1 (Abitibi Gas)

IGRS LFG Flow Meter

Tag # 246781

Flare #1

ABITIBI Steam Plant

Enbridge Pipeline 8”

GGUI Genset

IGRS Flare Flow Meter

Northland Power

Cogeneration Plant

Enbridge Pipeline 12”

Enbridge Metering Station

LANDFILL GAS UTILIZATION PROJECTEQUIPMENT & DATA ACQUISITION

PROCESS FLOW DIAGRAM

Project Boundary

Flare #2

SiloxaneSkid

Purge Flare

GGUI Gas Analyzer V8 301Blower Skid

East

Lan

dfill

Wel

lfiel

d

GGUI Flow Meter

Tag # 241697

IGRS Flare Flow MeterTag # 291399-A

Figure 1 - IGRS – EAST LANDFILL – Process Flow Diagram

Figure 2 - IGRS – EAST LANDFILL - Project Geographic Location and Infrastructure Orientation



3.3 Baseline Conditions

Prior to the implementation of the project, there were no collection and destruction facilities at the site, and LFG was allowed to naturally vent to the atmosphere. Reductions are calculated, therefore, from a baseline of continued natural venting of LFG emissions to the atmosphere at the Landfill.

3.4 Project Condition

The project condition is defined as the operation of a LFG recovery, processing and distribution facility as well as the combustion of the LFG at the Abitibi facility or flaring station, as constructed 2011.

An upset condition or shut-down at the Abitibi mill could affect GHG emission reductions or removal enhancements by preventing the sale and distribution of gas, and thus stopping methane destruction from occurring in the Abitibi boilers. Consequently, IGRS maintains a back-up, controlled and enclosed flaring station at the Landfill for safety purposes. This flaring station serves as redundant methane destruction capacity. Any gas which is not distributed to Abitibi is flared, ensuring that no venting of LFG to atmosphere occurs.



3.5 Actions Taken Table 1: Project Timeline

November, 2000 Agreement signed with Abitibi Consolidated Inc., establishing that IGRS has the right but not the obligation to deliver processed LFG to a point of delivery that is located on Mill property. Additionally this agreement establishes that any reductions relating to the collection and elimination of methane emissions at the Landfill remain the property of IGRS.

2001 Construction: Wellfield, Phase 1.

2001 Construction: Building and Mechanical Process, Phase 1.

March, 2002 Integrated Gas Recovery Services Inc. (IGRS) commences operations of the IGRS East Landfill – Landfill Gas Utilization Project.

Operations rely on a lease agreement with Niagara Waste Systems Limited (NWS) dated March 1, 2002. In exchange for a royalty payment to NWS, IGRS has the right, but not the obligation to recover, flare or resell the LFG.

All right, title and interest in the LFG remains with NWS until such time as the LFG enters the LFG collection system. Once collected, IGRS assumes all right, title and interest in the LFG.

2002 Construction: Enbridge Pipeline, Phase 1.

Pipeline dedicated for compressed LFG conveyance to End-User.

2003 Construction / expansion: Wellfield, Phase 2.

2003 Construction / expansion: Building and Mechanical Process, Phase 2.

2003 Construction: End-user Boiler Retrofit/Modification.



2007 Construction / expansion: Enbridge Pipeline, Phase 2.

July, 2007 Amending agreement Abitibi Consolidated Inc., IGRS has the right but not the obligation to deliver processed LFG to a point of delivery that is located on Mill property.


2009 Construction / expansion: Wellfield, Phase 5. (As-built of total wellfield system depicted in Figure 3.0).


Additional Roflo Compressor added to increase processing capacity.

2009 An additional flare installed to accommodate anticipated and additional Abitibi shut-down conditions. Siloxane treatment system and associated purge flare also installed. Monitoring equipment relocated to optimize functionality and additional metering installed where required as per the process flow diagram (Figure 1.0).

2009 Civil Works and Site Upgrade.

2010 Construction / expansion: Wellfield, Phase 6 (5 new wells and header extension).

Initial Phase 7 drilling (9 new wells, 4 drainage and 2 re-drill).

2011 Construction / expansion: Wellfield, Phase 7 and 8



2012 Completion of Phase 9. Ongoing landfill closure. It is noted that the wellfield will be expanded in future years in response to increased landfill gas production. TSSA Flare upgrades will be done. South landfill LFG integration will begin. Enbridge will be upgrading meters.

2016 Emission reduction project ends December 31st, 2016



Figure 3 - Wellfield - Overall System Layout


3/24/2012 Page 10 of 21 Revision 2.1

3.6 Project Eligibility Criteria

Table 2: Project Eligibility Criteria

Subject Eligibility Criteria Criteria Satisfied

Commencement of methane destruction.

(Start Date)

Projects Must have an effective start date on or after January 1st, 2002. As per Alberta Offset System Guidance, start date is defined as the first period in which Landfill Gas was combusted under controlled conditions.

Yes. Project was installed in 2001-2002, and commissioned in March 2002 (Start Date).

Landfill gas collection and control regulation.

(Surplus)

LFG collection and control system must not be required under Ontario Regulations, NSPS (New Source Performance Standards), EG, or NESHAP programs for project to be eligible.

If landfill is, or will be, subject to LFG control requirements or regulations and plans to install LFG collection and control systems in advance of regulatory requirements, the site must provide information demonstrating voluntary installation and anticipated regulatory compliance date.

Yes. The emission reductions created as a result of this project are surplus to any regulation. The collection, capture and recovery of LFG at the Landfill are currently not required by law as acknowledged in a confirmation letter from the Ontario Ministry of Environment in APPENDIX ‘A’. Therefore, all reductions are surplus.

Ownership of landfill gas and any green or environmental attributes of the landfill gas.

Must demonstrate ownership of LFG. Must certify that GHG reductions offered under the Standard of Practice from the collection and control of LFG are not used in other GHG markets. If end-use application of LFG (e.g., electrical generation) is participating in green or alternative energy market, project must demonstrate that reductions offered under the Standard of Practice are not participating in another program.

Contractual arrangements entitle IGRS to all reductions created by methane destruction within the project boundary. References: APPENDIX ‘B’ & APPENDIX ‘C'

Real, Demonstrable, and Quantifiable.

Must demonstrate that the project produces emission reductions which are real, demonstrable, and quantifiable.

All emission reductions quantified in this project are the result of measured volumes and concentrations of methane gas sent to functioning destruction equipment.

3.7 Identification of Risks

IGRS understands that there are risks that could substantially affect the project’s GHG emissions reductions, these include:

• Force Majeure - Events that involve damage to installed infrastructure.

• Significant changes in landfill waste mix, specifically substantial reduction in/diversion of organic waste (This likely wouldn't manifest as a project impact for 3-5 years).

• Construction projects that change project fundamentals and/or require taking the project offline to allow for development.


3/24/2012 Page 11 of 21 Revision 2.1

3.8 Other Project Information

3.8.1

Other Ownership Info

There are no other elements of this project that affect the validity of the reductions or IGRS’ ability to claim ownership.

3.8.2

Environmental Impact Assessment

An environmental impact assessment was not required by the IGRS East Landfill – LFG Utilization Project.

3.8.3

Stakeholder Consultations

IGRS is not required by legislation or regulation to carry out public and/or other stakeholder consultations. Stakeholders are made aware, however, of the project through obligatory and voluntary consultative activities carried out by related project partners and interested parties including Niagara Waste Systems Limited (NWS), Abitibi Consolidated Inc., and Enbridge Gas Distribution Inc. (EGD).

3.8.4

Socio-Economic Impact of Project

In addition to emission reductions and natural gas offsets, the IGRS East Landfill – LFG Utilization Project confers a significant economic benefit to the Abitibi Paper Mill and, consequently, to the host community. The Abitibi Mill benefits from a long-term fixed price energy contract, with energy priced below the market value of natural gas on a $/GJ basis. More affordable energy over the long term translates into increased economic viability and market competitiveness of the Thorold Mill. The project’s host community, as a result, benefits from jobs at the Mill for local area residents and ongoing demand by the Mill for products and services from other local businesses.


3/24/2012 Page 12 of 21 Revision 2.1

4. Identification and Justification of Baseline

Reductions are calculated, therefore, from a baseline of emissions that would have been emitted from continued venting of LFG to the atmosphere at the Landfill.

4.1 GHG Assessment Boundaries

The GHG assessment boundary for the project includes all relevant emission sources from the operation of the landfill gas collection system to the ultimate destruction of the landfill gas. CO2 emissions associated with the generation and destruction of landfill gas are considered biogenic emissions (as opposed to anthropogenic) and will not be included in the GHG reduction calculation. This is consistent with the Intergovernmental Panel on Climate Change’s (IPCC) guidelines for captured landfill gas.

Not included within the project boundary, the GGUI Genset is a 1 MW landfill gas fired generator that produces electricity for distribution into the local electricity grid. This project is owned by Glenridge Gas Utilization Inc. (GGUI), and was commissioned on December 18th, 2007. Given that the generator's produced electricity is sold under an Ontario Power Authority Standard Offer Contract, the green attributes of the GGUI operation are not included in this quantification.

4.2 Sources Sinks and Reservoirs

The following are identified as relevant sources, sinks and reservoirs to be included in the quantification of a project’s net GHG emissions in CO2e:

• Destruction of methane via boiler for thermal energy.

• Destruction of methane via flare/flaring system.

• Emissions resulting from grid derived electrical energy used by compressors, blowers and other fossil fuel powered equipment at the LFG processing plant/stage. (Plant parasitic load emissions.)

The following is a comprehensive list of sources, sinks and reservoirs controlled by, affected by or related to the project, and how they relate to the baseline condition. Emission sources, sinks and reservoirs are classified as either being included in the baseline condition or additional to the baseline condition as a result of project implementation and ongoing operations.

Note that all sources, sinks and reservoirs related to waste collection and landfill operations are considered to be outside of the project boundary as they would have occurred in the absence of the project activity, and, therefore, are not considered in this project-specific list of GHG sources, sinks and reservoirs. This is consistent with the detailed treatment of Sources, Sinks, and Reservoirs detailed in tables 2.1 and 2.2 of Alberta Environment’s Quantification Protocol for Landfill Gas Capture and Combustion, 2007.


3/24/2012 Page 13 of 21 Revision 2.1

Table 3: Sources, Sinks and Reservoirs

GHG Source Category

GHG Source, Sink or Reservoir

GHG Gas

Included in Project Boundary

Included in Baseline

Scenario

Controlled Related Affected

Comment

1. Landfill Source: Fugitive emissions from landfill surface.

CO2 Yes Yes Related Emissions would have occurred absent of the project. 1CH4 Yes Yes Related

Reservoir: Temporary methane storage.

CH4 No No Related Temporary, net zero storage. Consideration, therefore, not required.

2. Landfill Gas Collection System

Source: Fugitive emissions from well heads and collection headers.

CO2 Yes Yes Related Emissions would have occurred absent of the project.1 CH4 Yes Yes Related

Source: Emissions resulting from grid derived electrical energy used by compressors, blowers and other fossil fuel powered equipment.

CO2 Yes No Related Emissions considered based on total kWh consumed by the facility multiplied by the grid factor for the province of Ontario as stated by Environment Canada. A minor amount of propane is consumed by the project for flare starts and siloxane purge gas; this is quantified on a volume basis and the propane emission factor provided by Environment Canada. Refer to Quantification section for calculation method.

CH4 Yes No Related N2O Yes No Related

Source: Fugitive emissions from conduit to destruction device.

CO2 Yes Yes Related Emissions would have occurred absent of the project. 1 CH4 Yes Yes Related

3. Flare Source: Emissions of Methane

CH4 Yes Yes Controlled The reduction of this emission source forms the basis of emission reductions achieved by this project.

Source: Emissions resulting from the destruction of landfill gas in flare.

CO2 No No Controlled Biogenic emissions are excluded.2

CH4

Yes Yes Controlled Emissions due to incomplete destruction would have occurred absent of the project. 1

4. Abitibi Boiler

Source: Emissions of Methane

CH4 Yes Yes Controlled The reduction of this emission source forms the basis of emission reductions achieved by this project.

Source: Emissions resulting from the destruction of landfill gas in boiler.

CO2 No No Controlled Biogenic emissions are excluded.2 CH4 Yes Yes Controlled Emissions due to incomplete

destruction would have occurred absent of the project.

5. Engine for Electricity Generation

Sink: Destruction of Methane

CH4 No No Controlled Environmental attributes belong to the Ontario Power Authority as per Standard Offer Contract. Source: Emissions

resulting from the destruction of landfill gas in Engine.

CO2 No No Controlled CH4 No No Controlled

1 Refer to project baseline scenario as described herein. 2 IPCC, Guidelines for National Greenhouse Gas Inventories, Volume 5, Waste, 2006.


3/24/2012 Page 14 of 21 Revision 2.1

5. Quantification of Emission Reductions

The East Landfill Project creates a net reduction in GHG emissions that is real and not the result of a shutdown or cessation of an activity. The emission reductions related to the facility’s operations are quantifiable based on metered and measured data. Where assumptions or estimates must be made in lieu of empirical data, IGRS chooses the most precise factor or calculation approach available. Then, in the event of equal precision, IGRS chooses the most conservative factor or approach.

The calculation of the emission reductions from this project takes guidance from the following documents:

• Specified Gas Emitters Regulation, Alberta Environment, Quantification Protocol for Landfill Gas Capture And Combustion, 2007

• ISO 14064-2 Greenhouse gases — Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements, 2006

5.1 Relevant Equations and Calculations

Consistent with the protocol defined by Alberta Environment and summarized in Section 1, the following equations represent the East Landfill Project’s approach to emission reduction calculations. Insofar as this methodology considers the baseline condition as identified in Section 1, the quantification is also consistent with the methodological approach detailed in the ISO 14064-2 Specification.

Total ERCEmission Reductions = Baseline Emissions – Project Emissions

Total ERC claim = ERFlares + ERUtilization - PEParasitic

Where,

ERFlares = GHG Emission Reductions Resulting from LFG Collection and CH4 Destruction at Flares

ERUtilization = GHG Emission Reductions Resulting from LFG Collection and CH4 Destruction at the Abitibi Boiler

PEParasitic = Total Parasitic Emissions Resulting from Project Operations and Activities

ERFlares = ERF1 + ERF2 + ERFS

Destruction of Methane: Flare

Where,

ERF1 = GHG Emission Reductions Resulting from LFG Collection and CH4 Destruction at Flare 1

ERF2 = GHG Emission Reductions Resulting from LFG Collection and CH4 Destruction at Flare 2

ERFS = GHG Emission Reductions Resulting from LFG Collection and CH4 Destruction at the Siloxane Destruction Flare.

* For the vintage year 2011, Siloxane Flare emission (ERFS) reductions have not been included in the overall project emission reductions claim.


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And,

ERF#X = CCH4 x VLFG-F# x ρCH4 x EffFL x GWPCH4

Where,

CCH4 = Methane Concentration (%, mass basis) Empirical value as measured and recorded by the gas analyzer and discussed in the data

management section of this Project Document.

VLFG-F#X = Volume of Landfill Gas Flared in cubic meters as measured by the flow meter at Flare #X, where X = 1, or 2

ρCH4 = 0.665 kg/m3 At IGRS flow meter reference temperature and pressure, where (TIGRS-FM, PIGRS-FM) = (21.1ºC, 14.7 PSIA). For methane density calculation break-down, please see below.

EffFL = 97.7%, for Flares 1, & 2 As per AP42 AP-42, Volume I, Fifth Addition, Table 2.4-3 Control Efficiencies for LFG NMOC and

VOC. In addition, the enclosed flare is designed and operated to maximize destruction efficiencies

(i.e. fully automated temperature logic controls ensure required combustion temperatures and flows).

GWPCH4 = 21 Radiative potential of CH4 as identified by the IPCC.

ERUtilization = CCH4 x VLFG-BC x ρCH4x EffBC x GWPCH4

Destruction of Methane through Utilization: Boiler for Thermal Energy

Where,

CCH4 = Methane Concentration (%, mass basis) Empirical value as measured and recorded by the gas analyzer and discussed in the data

management section of this Project Document.

VLFG-BC = Volume of Landfill Gas Flared cubic meters as measured by the Enbridge flow meter.

ρCH4 = 0.677 kg/m3

At Enbridge flow meter reference temperature and pressure, where (TENBRIDGE-FM, PENBRIDGE-FM) = (60 ºF, 14.7 PSIA). For methane density calculation break-down, please see below.

EffBC = 98.6% As per AP-42, Volume I, Fifth Addition, Table 3-11 NMOC CONTROL EFFICIENCY DATA ANALYSIS

SUMMARY.

GWPCH4 = 21 Radiative potential of CH4 as identified by the IPCC.


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Density of methane at the reference temperature and pressure ρCH4 = P / (R * T) * MW CH4

Where,

ρCH4 = Density of methane (kg/m3)

P = Pressure in atmospheres

R = Gas constant (82.05 cm3 * atm / mole * ºK)

T = Temperature (ºK)

MWCH4 = Molecular weight of methane

ST98 – IGRS Flow Meter Enbridge Flow Meter Standard Temperature (STT)

21.1ºC = 294.1ºK 60 ºF = 288.7 ºK

Standard Pressure (STP) 14.7 PSIA = 101.325 kPa 14.7 PSIA = 101.325 kPa Molar Mass of Methane 16.0425 g/mol Ideal Gas Constant 8.314472 m3Pa/molºK Ideal Gas Law PV = n R T

ρ = Density = (PM) / (RT) = ((101325Pa) *

(0.0160425 kg/mol)) / ((8.314472 m3Pa/molºK) * 294.1 ºK)

= ((101325Pa) * (0.0160425 kg/mol)) / ((8.314472 m3Pa/molºK) * 288.7 ºK)

ρ = Density 0.664748702 kg/ m3 0.677185 kg/ m3 ρ @ 3 Significant Figures 0.665 kg/ m3 0.677 kg/ m3

Plant Parasitic Emissions PEParasitic = Emissions related to consumed grid electricity at LFG processing stage (in CO2e) +

Emissions from propane combustion

PEParasitic = kWhParasitic x FGHGIntensity + VC3H8 x FGHGC3H8

Where,

kWhParasitic = Plant Electrical Consumption, as metered and invoiced by utility (empirical). The electrical consumption of some small facilities outside the project boundary is included in

the total kWh considered parasitic for the IGRS East Landfill Project.

Due to the utility metering set‐up it is not possible to distinguish electricity use at the IGRS East Landfill Project from the electricity use at these other small facilities. Therefore, in order to be conservative, IGRS deducts from its ERC claim total emissions related to total electrical consumption (Project + outside facilities, measured in kWh) as invoiced by the utility.

FGHGIntensity = Greenhouse Gas Intensity Factor for Ontario Grid Sourced Electricity

= 110 g CO2e/kWh Table A13-7: Electricity Generation and GHG Emission Details for Ontario, from the Environment Canada National Inventory Report, Part 3, 2011


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VC3H8 = Plant Propane Consumption, as metered and invoiced by supplier (Praxair).

FGHGC3H8 = 1510 g CO2/L x 1 + 0.024 g CH4/L x 21 + 0.108 g N20/L x 310= 1544.0gCO2e/L Table A8–3 Emission Factors for Natural Gas Liquids, National Inventory Report, Part 2, 2011.

5.2 Data Management

IGRS has established data collection practices to ensure the data capture is sufficient to rigorously support mass and energy balance calculations. The intent is to minimize the need for assumptions and use of contingency procedures when tabulating project-related GHG emission reductions. The data accumulation process for the project is detailed below, followed by an overview of record management practices used to preserve data integrity. Thereafter, an explanation is provided detailing data quality assessment practices and data control tests and checks that are used to ensure accuracy and precision.

Data Sources

Measuring and monitoring for the project occurs as follows:

LFG gets combusted in industrial boilers at a destruction efficiency of 98.6%, and in any of the flares at 97.7%. This assumption is based on information provided in AP-42, Volume I, Fifth Edition. In addition, the enclosed flare is designed and operated to maximize destruction efficiencies (i.e. fully automated temperature logic controls ensure required combustion temperatures and flows).

EGD maintains the gas flow meter at the mill, which serves as the primary metering station for emission reduction claims related to utilization of the landfill gas. The flow meter is Daniels Orifice Meter, series #316ss, Company # DCPO1-404. It is calibrated by the manufacturer or an external certified third-party calibration service every five years or as per manufacturer’s guidelines, whichever is more frequent. In addition, both IGRS and Abitibi maintain flow meters at their respective facilities to further document LFG flows.


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Figure 4 - IGRS – EAST LANDFILL – Enbridge Metering Station Site Plan

IGRS monitors methane content of the landfill gas at the gas plant. The gas analysis equipment is Siemens Ultramat23. It was inspected in March 2011 with associated records being kept on file. Though never required at anytime during the 2011 project period, IGRS retains back-up capacity to monitor flows using IGRS’ LFG flow metering station in the event that the EGD flow metering station becomes unavailable. The IGRS LFG flow metering station can be normalized using historical trended data from both meters. The IGRS LFG utilization flow meter is an FCI ST98 Flexmaster model, and was inspected in March 2011.

LFG sent to the flares is metered using metering stations installed as detailed in the process flow diagram (Figure 1.0). The IGRS LFG flare flow meters are also FCI ST98 Flexmaster models, and were inspected in March 2011.

The meter data is corrected for temperature and pressure. The gross heating value of the processed LFG flowing through the LFG plant meter is determined based on the continuous cycle composition determined by gas infrared analysis.

The unit of volume for measurement of processed LFG delivered is cubic meters of dry processed LFG at a base temperature of 15.5 degrees Celsius and at a pressure base of one atmosphere. All of these constants, observations, records and procedures used in determining the quantity of processed LFG delivered are in accordance with the standards prescribed by the Canadian Gas Association.

2 Allanburg Road – Thorold – AbitibiStation Labels

Meter Runs Overview

Station - # 3146849 – Run 6

Station - # 3146850 – Run 5

Station - #3146851 – Run 4

Station # 3146851 – Run 4- Orifice Size – 7.80" I.D.- Company Meter #937010- Transducer – Rosemount Mod # 3095- Serial # 0230625, Company # 937009

Station #3146850 – Run 5- Orifice Size – 4.000" I.D.- Company Meter #937012- Transducer – Rosemount Mod # 3095- Serial # 0071894, Company # 937011

Station # 3146849 – Run 6- Orifice Size – 7.80" I.D.- Company Meter #937014- Transducer – Rosemount Mod # 3095- Serial # 0230625, Company # 937013

LF Gas Metering Runs

Flow

8" LF Gas

12" LF Gas

Telemetry Build

Telemetry Building Contains:

- Radio Telemetry Unit

- Daniel Flow Computer

- IMU – for Run 4 – AIS # E014 Serial # C729169

- CPA – for Run 5 – AIS # E300 Serial # B1172-037

- IMU – for Run 6 – AIS # E028 Serial # C729127


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Record Keeping and Manual Data Review

Record keeping practises include:

Record keeping practises include:

a. Every 120 seconds the project monitoring system records a primary data point that includes, but is not limited to, the following information: interval start time in seconds, instantaneous methane concentration measured in % methane, and instantaneous lfg flow rate. Secondary data representing physical variables that may affect the primary data is also logged and stored.

b. Primary or raw data is stored in two locations and is also sent on for automatic processing into a web-interfaced database.

c. The web-interfaced database processes the daily data set and produces the following data points for every day: a total daily flow of gas to the end-user, a totally daily flow of gas to the flaring system, and a flow-weighted methane concentration of gas for the day.

d. The PLC database runs confirmation calculations alongside data accumulation and raises a warning in the event that the check does not reconcile with the standard data set.

e. The daily summaries produced by the web-interfaced database are used for billing purposes and are reviewed on a monthly basis to ensure proper execution of algorithms and to provide a second check to ensure proper uptake of data from monitoring equipment.

f. All records are maintained electronically and in print for auditing purposes.

g. An annual claim summary is produced at year end to summarize the total emission reduction impact of the project.

5.3 Monitoring and Quality Assurance / Quality Control (QAQC) Plan

5.3.1 Equipment List and Inspection/Maintenance Schedule Table 4: Equipment List

IGRS Gas Analyzer Siemens Ultramat23

Serial: Mo 254

Range: 0 – 100% Methane

Tag: ELF (Gas analyzer)

S/C #: 378

System #: 0013466P

Auto-calibrates every 2 hours for O2

Cleaned and inspected Annually as per manufacturer’s recommendations.

Calibrated by the manufacturer or an external certified third-party calibration service every five years or as per manufacturer’s guidelines, whichever is more frequent. If a field check on the piece of equipment reveals accuracy outside of a +/- 5% threshold, calibration by the manufacturer or a certified service provider is required.

Field checked for accuracy using a portable instrument.


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GGUI Gas Analyzer Siemens Ultamat23

Serial: V8 301

Range: 0 – 100% Methane

Tag: GGUI (Gas analyzer)

S/C #: 557

System #: 741104

Auto-calibrates every 2 hours for O2

Cleaned and inspected Annually as per manufacturer’s recommendations.



IGRS Flow Meter FCI ST98 Flexmaster Tag # 246781 Cleaned and inspected annually as per manufacturer’s recommendations.



Flare #1 Flow Meter FCI ST98 Flexmaster Tag # 241697 Cleaned and inspected annually as per manufacturer’s recommendations.




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Flare #2 Flow Meter FCI ST98 Flexmaster Tag # 291399-A Cleaned and inspected annually as per manufacturer’s recommendations.



Purge Flare Flow Meter FCI ST98 Flexmaster Tag # 308829 Cleaned and inspected annually as per manufacturer’s recommendations.



EGD Gas Flow Meter Daniels Orifice Meter, Series #316ss,

Company # DCPO1-404

5.4 Emission Reduction Inventory Management Consistent with the ISO 14064-2 principles, IGRS follows strict methodologies to manage emission reduction inventory, insuring that each unit of emission reductions claimed by the project is unique. IGRS sets out firm and conservative projects boundaries to ensure that all emission reductions created within the project boundary contractually belong to IGRS.

Furthermore, to ensure that the same unit of emissions reductions is not counted by more than one entity, IGRS has strict administrative methodologies to prevent double counting as outlined in Appendix F, IGRS Methodology: Emission Reduction Inventory Management.

Appendix A

ONTARIO REGULATION 232/98 EXEMPTION DOCUMENTS

Appendix B EXERPT: LFG RIGHT LEASE

Appendix C

EXERPT: AGREEMENT FOR THE SALE AND PURCHASE OF LANDFILL GAS

Appendix D 2011 CLAIM SUMMARY

3/24/2012

A. Reporting Periodfrom to

1-Jan-11 31-Dec-11

B. Gross GHGs Reduced due to Combustion of GHGsVolume of LFG Mass of Methane Gross GHGs Weighted

Metered LFG Delivered (SCM) at 1 Methane Delivered Reduced Average %Delivered (scf) atmospheric pressure (kilograms) (tonnes CO2e) Methane Content

(note 1) (note 2) (note 3) (note 4) (note 5)

Gross Reductions due to Utilization 1,077,942,900 30,535,966 10,716,195 221,889.5 51.84%Gross Reductions due to Flaring 1,160,834,383 32,895,347 11,282,208 231,477.1 51.57%Portion due to compliance with regulations 0 0 0 0.0 0.00%Electrical Consumption Emissions 0 0 0 (525.5) -Propane Consumption Emissions 0 0 0 (0.3) -

Total Net GHGs Reduced 2,238,777,283 63,431,314 21,998,403 452,840.8

C. (1) Type of Meter System Measuring LFG Flow - UTILIZATIONEnbridge Meter IGRS Meter

Tag Number 246781manufacturer, type FCI ST98date of installation July 2004date of most recent inspection/test March. 15, 2011test results on file yes yesthis meter corrects to (degrees Centigrade) 60 Degrees F 21.1

C. (2) Type of Meter System Measuring LFG Flow - FLARINGFlare #1 Flare #2 Purge Flare

Tag Number 241697 291399-A 308829manufacturer, type FCI ST98 FCI ST98 FCI ST98date of installation October 2003 July 2009 December 2009date of most recent inspection/test March. 15, 2011 March. 15, 2011 March. 15, 2011test results on file yes yes yesthis meter corrects to (degrees Centigrade) 21.1 21.1 21.1

D. Instrument Employed to Monitor Methane ContentIGRS GGUI

manufacturer, type Siemens Ultramat 23 Siemens Ultramat 23Tag Number Mo 254 V8 301date of installation January 2002 November 2007date of most recent inspection/test March. 15, 2011 March. 15, 2011

E. Landfill Gas Characteristics for Billing Periodlowest methane content revealed over reporting period 49.97%highest methane content revealed over reporting period 49.70%flow weighted average methane content for reporting period 51.8%methane content estimation error, +/- 2.0%total landfill gas combusted over billing period (SCM at 1 atm) 63,431,314% landfill gas combustion that is incremental 100.0%total methane combustion due to GHG reduction project (tonnes) 21,998Global Warming Potential used in this report 21.0GHGs reduced (tonnes CO2e) 452,841

Notes1 Utilization volume measured by Enbridge meter at Abitibi, Flaring volume measured by IGRS meter at Landfill Gas Plant2 Conversion from scf to SCM (multiply by 0.028328 SCM/scf)3 Conversion from SCM LFG to SCM methane to kg methane (multiply by weighted average % methane content then by density of methane in kg/scm)4 Conversion from kg methane to tonnes CO2e (multiply by Gross Warming Potential = 21 then by .001kg/tonne)5 Weighted average of monthly weighted average % methane content

Ref: Calibration Reports

January 1, 2011 to December 31, 2011 ERC Claim Summary Rev 2.1

IGRS - East Landfill Gas Recovery ProjectAbitibi Project

Appendix E

VERIFICATION METHODOLOGY

IGRS Greenhouse Gas Management System Verification Methodology


IGRS Verification Methodology

1. Introduction

The emission reduction assertion made by IGRS related to a particular project is a result of the avoided emissions of methane produced by the anaerobic decomposition of waste, when it is placed in a landfill. As the system that collects the landfill gas (LFG) and the associated system control and monitoring equipment require the use of some electrical energy and propane, the realized emission reductions are the net of the avoided methane emissions less associated project emissions from electricity and fossil fuel use.

Integrated Gas Recovery Services Inc. (IGRS) develops the necessary documentation detailing project activities to support their annual claim for emission reductions. Annually IGRS engages a third party verifier to provide an objective verification of the emission reductions asserted by IGRS related to project activities.

The quantification of the emission reductions associated with a Landfill Gas Capture and Utilization operation is defined by the Project Document.

Verifications are performed annually and each verification engagement pertains to a single calendar year vintage.

2. The Verification Objective

The primary objective of the verification is to determine if the project described in the Project Document resulted in the greenhouse gas (“GHG”) emission reduction reported in the Claim Summary (“GHG Assertion”). This assessment will be based on the verification criteria defined by the scope of the project and the Audit Plan or Verification Plan as provided by the third party verifier.

3. Scope

3.1. Boundaries

During the initial verification planning, the organizational boundaries and the sources, sinks and reservoirs (“SSRs”) defined in the Project Document are reviewed for conformity with the available guidance for projects of this type. The procedures utilized to review the emission reductions reported in the GHG Assertion are designed to support a reasonable level of assurance. These procedures systematically review:

• the relevant contracts between IGRS, its project partners, and landlords;

• the project activity covered by the quantification;

• the equipment covered by the quantification;

• the facility(ies) covered by the quantification;

• the systems utilized for recording, tracking and safeguarding the data associated with the quantification;

IGRS Greenhouse Gas Management System Verification Methodology


• the methodology applied for the quantification;

• the Project Document; and

• the GHG Assertion.

3.2. Verification Criteria

The verification criteria employed in the development of the review procedures documented in the verification plan include:

• Assertions made in the Annual Project Document.

• The verification is conducted in accordance with ISO 14064‐3:2006.

3.3. Gases

The emission reduction accounts for three greenhouse gases: Carbon Dioxide, Methane and Nitrous Oxide.

3.4. Reporting Period

The GHG Assertion includes emission reductions realized for the year specified in the Project Document and Emission Reduction Claim Summary, Januray 1 through December 31 inclusive.

4. Principles

ISO 14064‐3:2006 defines six principles that should be upheld in the development of the GHG Assertion. These principles “are intended to ensure a fair representation and a credible and balanced account of GHG emission reductions and removal enhancements from projects” (ISO 14064‐3:2006). The verification procedures developed and executed during the course of this verification present evidence such that each of these principles is satisfied.

a. Relevance

b. Completeness

c. Consistency

d. Accuracy

e. Transparency

f. Conservativeness

Appendix F IGRS METHODOLOGY: EMISSION REDUCTION INVENTORY MANAGEMENT

IGRS Greenhouse Gas Management System Methodology: Emission Reduction Inventory Management


IGRS Methodology: Emission Reduction Inventory Management

Consistent with the ISO 14064-2 principles, IGRS follows strict methodologies to manage emission reduction inventory, ensuring that each unit of emission reductions claimed by the project is unique. IGRS sets out firm and conservative projects boundaries to ensure that all emission reductions created within the project boundary contractually belong to IGRS.

Furthermore, to ensure that the same unit of emissions reductions is not counted by more than one entity, IGRS has strict administrative methodologies to prevent double counting

Once an annual Emission Reduction Inventory has been verified, each credit is tracked independently to prevent double counting. Inventory reports are reviewed by financial auditors.

Emission reductions may be registered and transferred via a recognized emission reduction registry such as the Canadian Standard Association GHG CleanProjectsTM Registry. Project Document and Verification Report are uploaded annually to the CSA CleanProjectsTM Registry under the project’s assigned unique identification number. Through its serialization engine, the GHG CleanProjects™ Registry tags each listed tonne of verified emission reductions/removal with a unique serial number.

The verification audit is carried out to confirm that the projects meet a 14064-2 reasonable level of assurance. Other registry-specific stipulations and requirements requested by clients are addressed separately and independently from the ISO 14064-2 audit.