In accordance with the Manitoba Environment Act (C.C.S.M. c. E125)

THIS LICENCE IS ISSUED TO:

WILLIAM & CARMEN SCHON; "the Licencee"

GENERAL TERMS AND CONDITIONS
This Section of the Licence contains requirements intended to provide guidance to the Licencee in implementing practices to ensure that the environment is maintained in such a manner as to sustain a high quality of life, including social and economic development, recreation and leisure for present and future Manitobans.
1. The Licencee shall ensure that all used petroleum products and other hazardous wastes generated by the machinery used in the construction and operation of the Development are collected and disposed of in accordance with Manitoba Environment and legislative requirements.

2. The Licencee shall, prior to construction, provide a copy of this Licence to the contractor involved in the Development.
   SPECIFICATIONS, LIMITS, TERMS AND CONDITIONS

3. The Licencee shall, prior to construction, arrange a meeting with the Department of Natural Resources Regional staff, to assess the presence of small white lady slippers within the development property and, as required, to reach an agreement on a management plan to protect and enhance the species.

4. The Licencee shall, during construction, backfill and grout all well test holes and cement in the casings of all permanent wells.

5. The Licencee shall ensure that sewage systems associated with the Development are designed by a qualified engineer and comply with the requirements of Manitoba Regulation 95/88R respecting Private Sewage Disposal Systems and Privies. Plans for sewage disposal systems shall receive the approval of the Director before construction on the systems occurs.

6. The Licencee shall obtain an annual Pesticide Use Permit and comply with the requirements of Manitoba Regulation 94/88R respecting the storage, handling and application of pesticides in conjunction with the golf course operation.

7. The Licencee shall not use any mercury based fungicides or Diazinon on the Development.

8. The Licencee shall line the retention pond with clay to prevent seepage from the retention pond entering the groundwater aquifer.

9. The Licencee shall retain drainage from the Development on-site.

10. The Licencee shall locate a pesticide storage facility in a dry, well ventilated separate building in an area that shall not flood and shall contain runoff from the complete pesticide storage area. The pesticide storage facility shall be enclosed with a security fence.

11. The Licencee shall, during the full term of the construction of the Development, cleanup and deposit all debris from the construction site at a Waste Disposal Ground operating under the authority of a permit issued pursuant to Manitoba Regulation 150/91 respecting Waste Disposal Grounds.

REVIEW AND REVOCATION
1. If, in the opinion of the Director, the Licencee has exceeded or is exceeding or has or is failing to meet the specifications, limits, terms, or conditions set out in this Licence, the Director may, temporarily or permanently, revoke this Licence.

2. If the construction of the Development has not commenced within three years of the date of this Licence, the Licence is revoked.

3. If, in the opinion of the Director, new evidence warrants a change in the specifications, limits, terms or conditions of this Licence, the Director may require the filing of a new proposal pursuant to Section 11 of The Environment Act.

Client File No.: 4195.00