Lands & Waters Aggregate & Petroleum Resources March 15, 2006

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1 Subject: Policy No.: New: Ministry of Natural Resources Ministère des Richesses naturelles Licences: General A.R Yes Compiled by Branch: Section: Date Issued: Lands & Waters Aggregate & Petroleum Resources March 15, 2006 Guiding Principle The extraction of aggregate from a pit or quarry on private land designated by regulation, in the Province of Ontario, requires the issuance of a licence. The issuance of a licence serves several purposes, including the management of the aggregate resources, control and regulation of aggregate operations, requiring the rehabilitation of lands from which aggregate is removed and minimizing adverse environmental impacts from aggregate operations. Policy "Pit" and "Quarry" are defined in the Aggregate Resources Act (ARA) as land or land under water from which unconsolidated (e.g. sand, gravel) /consolidated (bedrock) aggregate is being or has been excavated, and has not been rehabilitated. This does not include an excavation for a building or structure on the site or where the Minister (delegated to the Manager, Aggregate & Petroleum Resources Section) has determined that the excavation is not a pit/quarry for the purposes of the Act. It is sometimes difficult to determine whether a (proposed) excavation is a pit and/or quarry and consequently, whether or not a licence is required. For further explanation and guidance in those circumstances, see A.R There are two types of licences issued under the ARA: a Class B licence which allows for the removal of 20,000 tonnes or less annually; and a Class A licence which allows for the removal of more than 20,000 tonnes annually (usually a specified amount indicated at the time of application). Established Operations in Newly Designated Areas In accordance with subsection 71(1), the provisions of the ARA and the regulations apply to every established pit and quarry in newly designated parts of Ontario. An "established pit or quarry" means, "a pit or quarry from which a substantial amount of material has been removed within the two-year period before the part of Ontario in which the pit or quarry is located was designated, or land that was leased under the Mining Act throughout the two-year period before the part of Ontario in which the land is located was designated " A person who is operating an established pit or quarry may continue to operate without a licence for the six-month period following the date of designation. If an application for a licence is not made by the expiry of the six-month period, then operations must cease. Failure to comply (i.e. cease) is an offence under the Act and any person(s) operating may be subject to prosecution. Policy A.R Page 1 of 5

2 If a person applies for a licence during the six-month period following the date of designation, an established pit or quarry may continue to operate without a licence until such time as the licence is either issued or refused, or until the twelve-month period following the date of designation expires, whichever occurs first. The exception being, where the Minister (delegated to the District Manager) has served notice on the applicant under subsection 12.1(2) and the applicant has made application to a Superior Court of Justice for a judgment declaring that no zoning bylaw prohibits the site being used for the making, establishment or operation of pits or quarries. The applicant must make application within 30 days of being served with a notice. In this case, the applicant can continue operating the site beyond the twelve months (i.e. while the court decision is pending) until such time as the licence is either issued or refused. Sections 9 and 12, and subsections 11(1)-(8) and 11(10)-(15) of the Act, which refer to the report requirements, public notification and consultation, application appeal process, and matters to be considered by the Minister, do not apply where a licence application for an established pit or quarry is made during the six-month period following the date of designation. Applications made during the six-month to two-year period following the date of designation must comply with section 9, unless the Minister (not delegated) waives or varies the report requirements. Once a person has been issued a licence for an established pit or quarry, that person is deemed to be a licensee from the date of designation. Annual licence fees are calculated from the date of designation (see A.R ). See A.R for the complete licence application procedure in newly designated areas. New Properties in Designated Areas If the pit or quarry or land does not meet the definition of an established pit or quarry under section 1 of the Act (i.e. substantial amount of material removed or land under a mining lease for the entire two year period prior to the date of designation), or the application for an established pit or quarry was not made within the two-year period following the date of designation, then it is considered a new property. Therefore, the applicant must meet all requirements under the Aggregate Resources Act, regulations and the Aggregate Resources of Ontario Provincial Standards. See A.R for the complete licence application procedure for new properties. Licence Application Process Applications for a Class A or Class B licence are classified into 8 categories based on the nature of the undertaking, as described in the Provincial Standards. The 8 categories of application are as follows: Category 1: Class A Pit Below Water Category 2: Class A Quarry Below Water Category 3: Class A Pit Above Water Category 4: Class A Quarry Above Water Category 5: Class B Pit Below Water Category 6: Class B Quarry Below Water Category 7: Class B Pit Above Water Category 8: Class B Quarry Above Water Policy A.R Page 2 of 5

3 All licence applications must be made on the application form provided (see Appendix E). An application for a licence to operate a pit or quarry must be: a) in the name of one or more persons; b) in the name of a corporation; or c) in the name of persons (naming them) carrying on business in partnership under the firm name and style of (name of firm). Proof of ownership of the land (i.e. copy of deed) and a copy of a lease (if applicable) must accompany the application form. If the applicant is a company/corporation, the company/corporation must provide proof of incorporation/amalgamation (e.g. Articles of Incorporation). If warranted, MNR may independently verify the corporate name by conducting a corporate search through the Ministry of Consumer and Business Services. Fees All licence applications require payment of a non-refundable application fee to the Minister of Finance (see A.R ). Conditions All new licences are subject to the Prescribed Conditions specific to the category being applied for under the Provincial Standards. The Prescribed Conditions should be distinguished on the licence from any additional conditions applied to address concerns raised (e.g. Ontario Municipal Board Chairperson, objectors, circulated agencies) during the application process. Prescribed Conditions must be attached to the licence as a Schedule A and any additional conditions as a separate Schedule B. Additional licence conditions may be amended; however, Prescribed Conditions cannot be rescinded, varied or amended (see A.R ). If the application is referred to a Joint Board for adjudication at the request of the applicant under the Consolidated Hearing Act, any conditions resulting from the hearing cannot be altered in anyway. These conditions are either placed as licence conditions or site plan notes, with the exact wording as stated in the decision. Site Plans It is a requirement under subsection 8(1) of the Act that all applications for a licence have a site plan. The site plan must be prepared in accordance with Section 1.0 Site Plan Standards (for the category being applied for under the Provincial Standards), and be submitted as part of the application package. All site plans become the property of the Crown once the licence is issued. This is important when transferring licences. If the transferor cannot provide a copy of the site plan to the new licensee (transferee), MNR can provide a copy from the file or authorize a copy to be produced at the transferee s expense. Note: During the application process, the site plans are public information and can be viewed by any interested party at the local MNR office or the local municipality where the site is located. However, site plans do not become the property of the Crown until the Policy A.R Page 3 of 5

4 licence is issued, therefore, the MNR cannot produce copies for interested parties without the written consent of the applicant or their agent. Technical Reports It is a requirement under subsection 9(1) of the Act that all licence applications shall include all appropriate reports. The reports must be prepared in accordance with Section 2.0 Report Standards (i.e. Summary Statement, Technical Reports) for the category being applied for under the Provincial Standards and be submitted as part of the application package (see A.R through A.R ). All reports become the property of the Crown once the licence is issued. Note: During the application process, the reports are public information and can be viewed by any interested party at the local MNR office or the local municipality where the site is located. However, reports do not become the property of the Crown until the licence is issued, therefore, the MNR cannot produce copies for interested parties without the written consent of the applicant or their agent. Furnish Additional Information Only the Minister (not delegated) may request additional information under subsection 7(5) of the Act. This section allows the Minister to require additional information (e.g. technical reports) that is not normally required by the Provincial Standards. Requests for additional information should be rare and should only be considered if there are exceptional circumstances relating to the application site (e.g. the site is located immediately adjacent to a sensitive receptor). Operational Standards All licences are subject to the Operational Standards That Apply To Licences as listed in the Provincial Standards, unless specifically varied by the site plan. Duration The extraction of a licenced property is driven by market conditions, and therefore licences are issued without an expiry date. In rare circumstances, a licence may be issued with a termination date as a condition of the licence. Municipal Zoning No licence can be issued if a zoning by-law prohibits the site from being used for the operation of a pit or quarry pursuant to subsection 12.1(1) of the Act. In newly designated areas, legal non-conforming use is equivalent to proper zoning. All lands proposed to be extracted within a licensed pit or quarry property must be zoned under an Extractive/Industrial Zoning designation by the appropriate planning authority. However, there may be instances where another zoning designation may be required on a portion of a proposed licensed site to protect a particular natural heritage feature (e.g. Environmentally Sensitive or Environmental Protection zoning designation to protect a provincially significant wetland or deer yard). There is merit for including sensitive features within the licenced boundary to protect the feature through the requirements of the site plan. In these situations, a note should be added to the plan to reference the fact that any future proposed amendment to the plan to allow for extraction outside of any lands zoned Extractive/Industrial would require a zone Policy A.R Page 4 of 5

5 change through the appropriate planning authority. Each of these cases must be evaluated on a site specific basis and the municipality must be in agreement with the feature being included within the licenced boundary. Within the Niagara Escarpment Plan Area, zoning is controlled by the issuance of a development permit. Any application for a new licenced pit or quarry producing more than 20,000 tonnes annually requires an amendment to the Plan in order to obtain a development permit (see A.R ). The applicant must provide proof of proper zoning (excerpt from the zoning by-law) or legal non-conforming use during the application process before the licence is sent to the Minister for signing. Issuance or Refusal If the licence application is not referred to the Ontario Municipal Board (OMB) for a hearing, the Minister may decide, under subsection 11(9) of the Act, whether to issue or refuse to issue the licence. Consideration for issuance/refusal must be based on matters under subsection 12(1) of the ARA. Refusal to issue the licence by the Minister is appealable, by the applicant, to the OMB. This decision may also be subject to a 3 rd party appeal under the Environmental Bill of Rights (see A.R ). If the licence application is referred to the OMB for a hearing, under subsection 11(5) of the ARA, the OMB may direct the Minister to issue a licence under clause 11(8)(1) or 11(8)(3) or refuse to issue under clause 11(8)(2) of the ARA. The OMB, in considering the issuance/refusal, must have regard to the matters under subsection 12(1) of the ARA (see A.R ). Transfers A licence may be transferred upon submission of a completed Transfer form, appropriate fee and other supporting documentation (e.g. deed, extraction agreement). The authority to transfer a licence is delegated to the District Manager (see A.R ). Enforcement The Act contains provisions for the suspension and revocation of licences and the ability to charge for contraventions of the Act, the regulations, the site plan or a condition of the licence. Also, where inadequate progressive and final rehabilitation has been performed on the site, the use of subsection 48(2) rehabilitation orders can be utilized to obtain compliance. Production Reporting All aggregate operations under the Aggregate Resources Act (ARA) must keep detailed records of sales and shipment of aggregate material that is removed from the site in any calendar year. Production must be recorded on a monthly basis and reported annually to the Ontario Aggregate Resources Corporation (TOARC) by January 31 of each year, for the previous year s production. Policy A.R Page 5 of 5