Media Relations
Agriculture and Agri-Food Canada
Ottawa
ph: (613)759-7972

Communications Services Manitoba
Paul White
Winnipeg
ph: (204) 945-8124

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An $8 million Canada-Manitoba funding agreement has been signed to provide compensation to upstream land owners in Saskatchewan, to acquire additional upstream land in Saskatchewan, to study downstream impacts in Manitoba, and to upgrade the Shellmouth Dam.

Compensation is being paid upstream in Saskatchewan on lost income to farmers due to seeding delays as a result of reservoir operation. A compensation package is being implemented with respect to past damages, and land control is being obtained to preclude future claims.

Downstream impacts in Manitoba as a result of the operation of the Shellmouth Dam, particularly the reach of river from the dam to Provincial Trunk Highway (PTH) 16, will be studied in detail under this agreement, including costs for mitigation.

In regards to the dam itself, the proposal calls for the addition of gates to the crest of the spillway to enhance downstream water supply and flood control.

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Water supply enhancement is not needed today on the Assiniboine River, but it is projected that, at some point in the future, demand for water may outstrip supply. For example, the needs of existing vegetable processors, plans for future potato processing plant expansion, establishment of potential ethanol production facilities and requirements for municipal water supply expansion could consume the estimated current unallocated annual water supply of 20,000 acre-feet. It is important to plan for the future to ensure that Manitoba is poised to capture economic growth in the agriculture sector, while at the same time providing flows in the river to maintain water quality and support aquatic life, and providing flood protection.

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The Shellmouth Dam was originally constructed to reduce flood risk and improve security of water supplies for Manitobans who live and work on the Assiniboine River. The proposed project would further benefit downstream municipalities, industry, farmers and irrigators through enhanced flood control and water supply.

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The project began in the summer of 2003. It is expected that the detailed environmental and engineering studies, including public consultations, will be completed by early 2005, followed by one year of construction. The project is expected to be completed by March 31, 2006.

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The $8 million funding agreement calls for a 50/50 cost-sharing formula between Canada and Manitoba. The actual funding breakdown is as follows:

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The upstream issue in Saskatchewan on lost income to farmers due to seeding delays as a result of reservoir operation was confirmed. A compensation package is being implemented with respect to past damages and land control.

The downstream issues in Manitoba, including the reach of river from the dam to PTH 16, will be studied in detail under this agreement, including definition and costs for mitigation. Canada and Manitoba will consult with individuals and communities downstream of the dam, including First Nations, farm groups, Metis, municipalities, and other interested parties throughout the course of the project.

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Over the past several decades many options for enhancement of Assiniboine River water management have been studied, including the merits of adding gates to the dam. It initially appears that adding gates to the crest of Shellmouth Dam to improve operational flexibility may be the best option, based upon cost and benefit analysis. However, a detailed review of past studies and environmental issues associated with options for Assiniboine River management will be undertaken to determine whether the installation of gates is the best option for this project.

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The dam would have to be operated differently to achieve the anticipated benefits. It is currently operated by drawing it down in winter to make room for storage of spring flood flows. The level of draw-down is managed so that enough water remains to be released over the following summer. In spring time the dam is allowed to fill while downstream flows are held low to reduce flood flows. Adding gates to the main works of the dam will extend the range of operation, and improve the storage capacity for flood control and water supply.

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The project is likely to require both federal and provincial approvals. A project description is being prepared which will be submitted to federal and provincial authorities for determination of the environmental assessment process. It is anticipated that a detailed environmental impact assessment will be required. As such, work has already begun in identifying potential environmental effects.

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One of the project management team's first steps will be to engage in public consultation - to explain the project development process and to gauge public concern. Follow-up consultations will take place during the detailed environmental assessment phase of the project. There will also be opportunity for public input during the regulatory review stage of the assessment.

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It has not yet been determined what the impacts may be. However, the reservoir will certainly have to be operated at higher levels to improve water supply and flood control potential. As part of the study, a range of operating scenarios and potential impacts will be studied, in consultation with local residents. It is possible that some existing works on the reservoir would have to be altered as a result of changes to reservoir operation.

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Changes to the operation of Lake of the Prairies and possible impacts to the fishery will be studied in detail before any commitment to changing reservoir works or operation are made. Although additional water supply / capacity may serve to enhance prospects with respect to downstream aquatic life, it is unknown at this time whether improved storage potential would be a benefit or a detriment to the fishery.