Cities Index.
Att 3 - City Council Agenda Item 7E, July 18, 2023 Meeting

San Clemente City Council
March 19, 2024

Document
Att 3 - City Council Agenda Item 7E, July 18, 2023 Meeting
Meeting
March 19, 2024
Body
San Clemente City Council
Pages
27
Original file
112.1 MB
Text extracted from the city's file for reading and search. Open the original on san-clemente.legistar1.com. That file is the official record.

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 7/18/2023 Agenda Item: (
Department: Public Works
Prepared By Kiel Koger, Public Works Director/City Engineer Subject:

CONSIDERATION OF A RESOLUTION APPROVING UNITED STATES ARMY CORPS OF

ENGINEERS (USACE) COASTAL STORM DAMAGE REDUCTION PROJECT IN SAN CLEMENTE; ADOPTING THE FINAL FEASIBILITY STUDY AND CERTIFYING THE FINAL

ENVIRONMENTAL IMPACT STATEMENT / FINAL ENVIRONMENTAL IMPACT REPORT AND

SUPPLEMENTAL ENVIRONMENTAL ASSESSMENT AND FINDING OF NO SIGNIFICANT IMPACT; ADOPTING THE MITIGATION MONITORING AND REPORTING PROGRAM, AND FINDINGS OF FACT AND STATEMENT OF OVERRIDING CONSIDERATIONS; AND

AUTHORIZING ENTRY INTO A STATE LANDS LEASE
Summary:

Coastal erosion is a very significant problem in the City of San Clemente (City) that threatens the public beaches, coastal public access, existing structures, and critical public infrastructure. In July 2001, the City of San Clemente entered into a Federal Cost Share Agreement (FCSA) with the United States Army Corps of Engineers (USACE) for purposes of collaborating on the Coastal Storm Damage Reduction Project (Project) Feasibility Study. The Project Feasibility Study was originally authorized under the Energy and Water Development Appropriations Act of 2000.

The City has been participating in Project development efforts with Federal and State agency partners for more than 20 years. The State of California, through the State Parks, Division of Boating and Waterways, has been a steadfast partner through the California Public Beach Restoration Act Program since 2000.

The Project is intended to reduce coastal storm damages to property and infrastructure along the study area shoreline for a period of 50-years; improve public safety in the study area by providing a wider sandy beach which serves as a natural wave buffer; and reduce coastal erosion and shoreline narrowing to improve public recreational opportunities for beach users within the City for the next 50 years.

The purpose of this item is to formally complete and conclude the California Environmental Quality Act (CEQA) process for the City in its capacity as the CEQA Lead Agency for the Project.

Specifically, the City Council is asked to conduct a public hearing and, following the public hearing, adopt the Resolution, that would:

1. Approve the Project in San Clemente;

2. Adopt the Final Feasibility Study and certify the joint Final Environmental Impact Statement / Final Environmental Impact Report (FEIS/FEIR) and Supplemental Environmental Assessment CITY OF SAN CLEMENTE Page 1 of 8 Printed on 7/13/2023
powered by Legistar™ 1
Attachment 3
Meeting Date: 7/18/2023 Agenda Item: (
(SEA) and Finding of No Significant Impact (FONSI);

3. Adopt the Mitigation Monitoring and Reporting Program (MMRP) and Findings of Fact and Statement of Overriding Considerations;

4. Authorize the filing of a Notice of Determination with the County Clerk; and

5. Authorize entry into a lease with the State Lands Commission.

Taking these actions will enable the beach nourishment project to move forward commencing later this year.

Background:

The Project Feasibility Study was initiated in 2000 to: 1) identify problems and opportunities to reduce storm damages, improve public safety, increase recreation opportunities, and protect the environment; 2) formulate and evaluate an array of alternatives; and 3) identify the most technically feasible and economically beneficial “recommended plan” that addresses the problems while also complying with local, state, and Federal laws and regulations.

The Project study area encompassed the entirety of the City’s shoreline from San Mateo Point in the south at the southern boundary of the City to Dana Point Harbor in the north. The original study area was divided into ten reaches based on locations of development and the condition of the stone revetment that runs along various stretches of the existing railroad tracks. After analysis of each section, the USACE determined that Reach 6 (from Paseo de Cristobal to Linda Lane) had the greatest potential for an economically justified Federal project.

The USACE initially considered a broad range of alternatives, including:
• No Action Alternative (i.e., the Do-Nothing Alternative) • Managed Retreat
• Beach Nourishment
• Revetment
• Seawall
• Groins
• Visible Offshore Breakwater
• Submerged Reef
After reviewing the alternatives, beach nourishment emerged as the optimal alternative being both economically feasible and environmentally acceptable. All other alternatives were dropped from further consideration due to a variety of considerations including cost, potential environmental effects, or lack of local support. The USACE then further evaluated 12 beach width scenarios (from 33 to 115 feet) to assess the expected storm damage reduction benefits and costs associated with each beach width scenario.

USACE policy requires it to identify the National Economic Development (NED) plan which is the alternative that maximizes the potential economic benefits to the Nation. Of the 12 beach width scenarios, the 50-foot wide (i.e., 15-meter) beach fill alternative was identified as the NED plan. The USACE was also required to identify a Least Environmentally Damaging Practicable Alternative (LEDPA) which is the alternative that has the fewest potential effects and still meets the Project purpose and objectives. Based on this, the USACE also identified the 50-foot beach width alternative CITY OF SAN CLEMENTE Page 2 of 8 Printed on 7/13/2023
powered by Legistar™ 2
Meeting Date: 7/18/2023 Agenda Item: (
as its Recommended Plan, which is the alternative that was forwarded for authorization and funding by Congress in 2012.

The Project will nourish an estimated length of 3,412 feet of shoreline at a 50-foot width. The beach compatible sand needed for the nourishment will be taken from a designated borrow site located offshore of the City of Oceanside that will be hauled to San Clemente and placed by hopper dredge on the beach. The southern limit of the proposed beach fill is located immediately south of the TStreet overpass and the northern limit immediately north of the City’s Marine Safety Headquarters. A taper would continue an additional 330 feet to the north and south to merge with the existing shoreline.

For the hopper method, sand is combined with seawater until it reaches the consistency of slurry. At the receiver beach, the dredge is attached to a moored floating section of pipeline extending approximately 1,500 feet to the shoreline. The material is re-suspended and discharged through its on-board pumping system to the receiver site. Existing sand at the receiver site can be used to build a berm to anchor the sand placement operations.

When slurry is pumped onto the beach, it is pumped between this berm and toe. This berm reduces ocean water turbidity by allowing all the sand to settle out inside the bermed area while the seawater is channeled just inside the long berm until it reaches the open end where it drains across the shore platform and into the ocean. Temporary dikes within this berm will direct the pumped sand for settlement in designated areas. Once a section of berm is filled in with sand, another berm is created, the pipeline is moved or extended into the new berm area, and the process begins again. As the material is deposited behind the berm, the sand is usually spread using two bulldozers and one frontend loader to direct the flow of the sand slurry and form a gradual slope to the existing beach elevation. The berms will be subject to the forces of the waves and weather once constructed and will eventually settle down to a natural grade for the beach.

Re-nourishment cycles would be performed approximately every 6 years thereafter over a 50-year project life (2023-2073). Sand placement would occur during off-season winter months and would require temporary closure of small sections of the beach (200-300 feet) during sand placement activities to ensure public safety.

At a March 15, 2011 San Clemente City Council hearing, the City expressed its support for the Project recommended by the USACE in the EIR/EIS. The recommendation was based in part on the support from the City’s Beaches, Parks & Recreation Commission and Coastal Advisory Committee.

This milestone set the stage for Feasibility Study and Project approval by the USACE.

The Project was heard by the USACE Civil Works Review Board (CWRB) in Washington DC at a public meeting on May 12, 2011. The Draft EIS/EIR was filed with the U.S. Environmental Protection Agency and was made available to interested parties for public review and comment pursuant to regulations of the President's Council on Environmental Quality for implementing NEPA (40 CFR Parts 1500-1508) as well as the State Clearinghouse/Governor’s Office of Planning and Research for a 45-day public review period beginning on August 9, 2011 and ending on September 23, 2011. The Project was assigned a State Clearinghouse (SCH) Number (SCH # 2010084002). Responses to the comments are included in the Final EIR/EIS.

The Project received agency approval from the California Coastal Commission (CCC) in November CITY OF SAN CLEMENTE Page 3 of 8 Printed on 7/13/2023
powered by Legistar™ 3
Meeting Date: 7/18/2023 Agenda Item: (
2011 and a federal Consistency Determination (CD-029-11) was issued for the Project. The USACE has designed the Project to be resilient to future sea level rise (SLR) over its 50-year life under various scenarios consistent with the 2018 CCC Sea Level Rise Policy Guidance document which recognizes beach nourishment is a preferred SLR adaptation strategy for developed coastlines.

The USACE Chiefs Report approving the Project was issued on April 15, 2012 and the final NEPA action of publishing the Record of Decision (ROD) occurred on September 6, 2012. These approvals signaled the formal conclusion of the Project’s NEPA process and the “Feasibility Phase” which enabled the Project to progress to the “Pre-Construction Engineering and Design” (PED) phase beginning in June 2018. The Project’s PED Phase concluded in 2020 following the collection of preconstruction baseline data.

During the PED phase for the Project, all required pre-construction monitoring tasks were completed for the purpose of establishing baseline conditions to support Project implementation and postconstruction monitoring.

The Regional Water Quality Control Board issued a Clean Water Act Section 401 Water Quality Certification and Waste Discharge Requirements Order No. 2003-0017-DWQ for the Project on November 3, 2022 and filed a CEQA Notice of Determination with the State Clearinghouse as a CEQA Responsible Agency in November 2022.

The final agency approval for the project is issuance of a land lease for the area offshore of the City below the mean high tide line. The California State Lands Commission (CSLC) has scheduled the City’s land lease application for the August 17, 2023 meeting. Obtaining this final approval enables the Project to move to contracting by the USACE and a planned construction start later in 2023.

The action before City Council formally complete and conclude the CEQA process for the City as the CEQA Lead Agency by approving the Project, certifying all the Project environmental documents, and adopting the MMRP and Findings of Fact Statement of Overriding Considerations. This would result in filing a Notice of Determination (NOD) with the County Clerk following adoption of the Resolution, thus formally concluding the CEQA process for the Project.

The proposed Resolution also authorizes the City Manager to enter into a project lease with the State Lands Commission enabling the lease to be approved by the California State Lands Commission meeting on August 17, 2023. This is the final agency approval needed for the Project and will support the project contracting by the USACE and planned construction start of the Project later this year.

Council Options:
 Adopt Resolution 23-74, approving the Project; certifying all the environmental Project documents; adopting the MMRP and Findings of Fact and Statement of Overriding Considerations; authorizing the filing of a Notice of Determination with the County Clerk and thus formally concluding the CEQA process for the Project; and authorizing entry into a state lands lease for the Project.
 Modify and adopt Resolution 23-74.
 Continue the Item and direct staff to provide additional information. Note: Any continuance of CITY OF SAN CLEMENTE Page 4 of 8 Printed on 7/13/2023
powered by Legistar™ 4
Meeting Date: 7/18/2023 Agenda Item: (
this Item will not allow the CSLC enough time to review and approve the land lease application at their August 17, 2023 meeting and would place the Project in jeopardy or, at minimum, delay the Project for at least a year due to the timing of the projects in the Cities of Encinitas and Solana Beach.
 Do not adopt the Resolution and provide alternative direction.

Fiscal Impact:

None at this time. The City has already contributed all required local match funds and passed through the construction grant funding from State Parks to the USACE in support of the Project.

Environmental Review/Analysis:

This Project is subject to both the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA). The USACE is the Lead Agency for NEPA and the City of San Clemente is the CEQA Lead Agency for the Project.

As discussed in the joint FEIS/FEIR, SEA/FONSI, MMRP, Findings of Fact and Statement of Overriding Considerations, all potentially significant impacts of the Project can be avoided or reduced to a level below significance by the implementation of mitigation measures and/or conditions of approval as required by the regulatory agencies including the CCC, RWQCB, NOAA/NMFS and USFWS in their project respective conditions of approval with the exception of potentially significant and unavoidable impacts to surfgrass located on rocky vegetated reefs offshore of the City.

Potentially cumulatively considerable impacts of the project may occur to short term air quality and recreation impacts.

Public notice of the Draft Supplemental Environmental Assessment (SEA) was posted on the USACE, Los Angeles District on September 30, 2022. The SEA addressed the Section 7 Endangered Species Act consultation with NOAA/NMFS on issues related to the potential for green sea turtle effects. The SEA also documented that a Clean Water Act Section 401 water permit from the RWQCB has been obtained for the Project in 2022. Continued consultation under Section 106 with the State Historic Preservation Office was addressed regarding the San Clemente municipal pier which was constructed in 1928. The Project will have no impact on the City’s Municipal Pier. Lastly, the SEA noted a reduction in the dimensions of the borrow site (located on City of Oceanside Granted Tidelands) by narrowing the borrow area and creating a 300-foot offset to the CDFW Oceanside Artificial Reef.

The USACE publicly circulated the SEA and issued a Public Notice on September 30, 2022. The USACE published a notice that the Final SEA and FONSI were available for review to the mailing list recipients included in Attachment A to the SEA/FONSI. The Final SEA/FONSI was published on the USACE LA District website on June 29, 2023 and sent to the State Clearinghouse for publication.

The USACE has received no requests for additional information and no comments were received on the SEA/FONSI.

As the City and the USACE have been in a “Project Partnership Agreement” for more than 20 years for this Project, preparing supplemental documentation for green sea turtles is unwarranted as the process completed by the USACE covers the entirely of the Project for both NEPA and CEQA purposes. The regulatory agencies with jurisdiction for green sea turtles (namely NOAA/NMFS) have CITY OF SAN CLEMENTE Page 5 of 8 Printed on 7/13/2023
powered by Legistar™ 5
Meeting Date: 7/18/2023 Agenda Item: (
already weighed in and issued an incidental take permit for the Project and have signed off on the adequacy of the environmental documentation prepared to date and provided the measures that are contained within the MMRP to ensure avoidance of impacts to green sea turtles. There are no new significant impacts and previous impact conclusions have remained unchanged from 2011 and the City will rely on the already completed NEPA process for the SEA/FONSI for the green sea turtles pursuant to CEQA §15222, §15223, §15225 and §15226.

The potentially significant impacts and the mitigation measures are fully described in the FEIS/FEIR and SEA/FONSI. All mitigation measures, project design features and best management practices (BMP’s) also are set forth in the Mitigation Monitoring and Reporting Program (MMRP) that that is included as Attachment 11.

Copies of the Final Feasibility Study, FEIS/FEIR, SEA/FONSI, MMRP, Findings of Fact and Statement of Overriding Considerations and other documents and materials that constitute the administrative record of proceedings upon which staff is recommending this decision be based have been available for public review from the custodian of these records, the Department of Public Works at City Hall.

The City Council must independently review, analyze and consider the Final Feasibility Study, FEIS/FEIR, SEA/FONSI, MMRP, Findings of Fact and Statement of Overriding Considerations and other documents and materials that constitute the administrative record of proceedings and all public comments, written and oral, received before making a decision.

The City Council is being asked to certify the Final EIS/EIR included as Attachments 2 and 3, incorporating the mitigation measures attached as Attachment 11. The Council is also asked to considering the Final EIS/EIR and in conjunction with making its findings pursuant to Section 15092 of the CEQA Guidelines, that approval of the Project has the potential to result in significant effects on the environment; however, the City eliminated or substantially lessened these significant effects where feasible, and can determine that the remaining potentially significant effects are found to be unavoidable under Section 15091 and acceptable under Section 15093.

Attachment 13 (Findings of Facts and Statement of Overriding Considerations) and Attachment 11 (Mitigation Monitoring and Reporting Program) provide findings required under Section 15091 of the CEQA Guidelines for potentially significant effects of the Project for Council to consider. Attachment 13 (Findings of Facts and Statement of Overriding Considerations) also provides the findings required under Section 15093 of the CEQA Guidelines relating to accepting the adverse impact of the Project due to overriding considerations.

The Council is being asked to balance the economic, legal, social, technological, and other benefits of the Project against the unavoidable environmental risks that may result and find that the specific economic legal social technological and other benefits outweigh the potential for unavoidable adverse environmental effects.

CITY OF SAN CLEMENTE Page 6 of 8 Printed on 7/13/2023
powered by Legistar™ 6
Meeting Date: 7/18/2023 Agenda Item: (
Recommended Actions:

Staff Recommendation
STAFF RECOMMENDS THAT the City Council:

1. Conduct the public hearing: Open the Public Hearing; report any disclosures; receive staff and public comment; close the Public Hearing.

After the public hearing, adopt Resolution No. 23-74, which would:

2. Approve the Project and implement public beach restoration activities placing 251,000 cubic yards of sand on the City’s beaches in 2023/2024 with future beach sand replenishment events over the next 50 years (through 2073/2074);

3. Adopt the Final Feasibility Study and certify the FEIS/FEIR and SEA/FONSI;

4. Adopt the Mitigation Monitoring and Reporting Program;

5. Adopt the Findings of Fact and Statement of Overriding Considerations;

6. Authorize staff to file the CEQA Notice of Determination with the County Clerk; and

7. Authorize the City Manager to enter into a State Lands Lease with the California State Lands Commission in support of the Project.

Attachments:

1. Resolution No. 23-74
Final Feasibility Study & FEIS/FEIR for the USACE Coastal Storm Damage Reduction Project

2. San Clemente Final EIS-EIR Vol 1 July 2011

3. San Clemente Final EIS-EIR Vol 2 July 2011
NEPA Supplemental Environmental Assessment & FONSI (Attachments 4-10)

4. San Clemente SEA and FONSI

5. Supplemental Environmental Assessment

6. Clean Water Act Section 401 Water Quality Certification

7. California Coastal Commission Revised Staff Commendation

8. Conservation and Management Act Essential Fish Habitat Response

9. Department Of Parks and Recreation Office of Historic Preservation Letter

10.EJScreen Report (Version 2.11)

11.Mitigation Monitoring and Reporting Program

12.USACE Record of Decision

13.Findings of Fact and Statement of Overriding Considerations

14.State Lands Lease
CITY OF SAN CLEMENTE Page 7 of 8 Printed on 7/13/2023
powered by Legistar™ 7
Meeting Date: 7/18/2023 Agenda Item: (
Notification:

Public Hearing Notice
CITY OF SAN CLEMENTE Page 8 of 8 Printed on 7/13/2023
powered by Legistar™ 8
 $77$&+0(17

Y
RESOLUTION NO. 23-74

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, APPROVING USACE

COASTAL STORM DAMAGE REDUCTION PROJECT IN
SAN CLEMENTE; ADOPTING THE FINAL FEASIBILITY

STUDY AND CERTIFYING THE FINAL EIS/EIR AND
SEA/FONSI; ADOPTING THE MMRP, FINDINGS OF FACT
AND STATEMENT OF OVERRIDING CONSIDERATIONS;

AUTHORIZING THE FILING OF A NOTICE OF
DETERMINATION TO SUPPORT THE PROJECT; AND

AUTHORIZING ENTRY INTO A STATE LANDS LEASE
WHEREAS &RDVWDO HURVLRQ LV D YHU\ VLJQLILFDQW SUREOHP LQ WKH &LW\ RI 6DQ &OHPHQWH WKDW WKUHDWHQV WKH SXEOLF EHDFKHV DQG FRDVWDO SXEOLF DFFHVV NH\ SXEOLF IDFLOLWLHVH[LVWLQJVWUXFWXUHVDQGFULWLFDOSXEOLFLQIUDVWUXFWXUH DQG
WHEREAS,LQWKH&LW\RI6DQ&OHPHQWHHQWHUHGLQWRD)HGHUDO&RVW6KDUH $JUHHPHQW
)&6$
 ZLWK WKH 8QLWHG 6WDWHV $UP\ &RUSV RI (QJLQHHUV 86$&(
 IRU
SXUSRVHV RI FROODERUDWLQJ RQ WKH 6DQ &OHPHQWH &RDVWDO 6WRUP 'DPDJH 5HGXFWLRQ )HDVLELOLW\6WXG\3URMHFW
3URMHFW

DQG
WHEREAS WKH 3URMHFW ZDV RULJLQDOO\ DXWKRUL]HG XQGHU WKH (QHUJ\ DQG:DWHU 'HYHORSPHQW$SSURSULDWLRQV$FWRIDQGWKH&LW\KDVEHHQSDUWLFLSDWLQJLQ3URMHFW GHYHORSPHQWHIIRUWVZLWK)HGHUDODQG6WDWHDJHQF\SDUWQHUVIRUPRUHWKDQ\HDUV DQG
WHEREAS,WKH6WDWHRI&DOLIRUQLDWKURXJKWKH6WDWH3DUNV'LYLVLRQRI%RDWLQJ DQG:DWHUZD\VKDVEHHQDVWHDGIDVW6WDWHSDUWQHUWKURXJKWKH&DOLIRUQLD3XEOLF%HDFK 5HVWRUDWLRQ$FW3URJUDP
DQG
WHEREASWKH3URMHFWLVLQWHQGHGWRUHGXFHFRDVWDOVWRUPGDPDJHWRSURSHUW\ DQGLQIUDVWUXFWXUHDORQJWKHVWXG\DUHDVKRUHOLQHIRUDSHULRGRI\HDUV LPSURYHSXEOLF
VDIHW\LQWKHVWXG\DUHDE\SURYLGLQJDZLGHUVDQG\EHDFKZKLFKZLOOVHUYHDVDQDWXUDO ZDYH EXIIHU
 DQG UHGXFH FRDVWDO HURVLRQ DQG VKRUHOLQH QDUURZLQJ WR LPSURYH SXEOLF UHFUHDWLRQDORSSRUWXQLWLHVIRUEHDFKXVHUVZLWKLQWKH&LW\IRUWKHQH[W\HDUV DQG
WHEREASWKH3URMHFWLQFOXGHVFRQVWUXFWLRQRIDIRRWZLGHEHDFKILOODORQJD IRRWORQJ VWUHWFK RI VKRUHOLQH 7KH 3URMHFW ZRXOG SODFH DQ LQLWLDO  FXELF \DUGV RI FRPSDWLEOH VHGLPHQW RQ WKH EHDFK  2YHU WKH \HDU OLIH RI WKH 3URMHFW UHQRXULVKPHQWZRXOGRFFXUHYHU\\HDUV
DQG

WHEREASPDWHULDOIRUWKHEHDFKILOOZLOOEHGUHGJHGIURPDERUURZVLWHORFDWHG ZLWKLQWKH2FHDQVLGH/LWWRUDOFHOOORFDWHGRIIWKHFRDVWVRXWKRIWKH3URMHFWVLWH DQG
WHEREASWKH3URMHFWLVDQWLFLSDWHGWREHWKHILUVWHQWLUHO\QHZ86$&(VXSSRUWHG SXEOLFEHDFKUHVWRUDWLRQSURMHFWLQ&DOLIRUQLDLQPRUHWKDQIRXUGHFDGHVDQGZRXOGSURYLGH 9 5HVROXWLRQ1R  3DJH

Y
ORFDO FRDVWDO VWRUP GDPDJH UHGXFWLRQ EHQHILWV DQG ORFDO UHJLRQDO VWDWH DQG IHGHUDO HFRQRPLFEHQHILWV
DQG
WHEREASWKH3URMHFWKDVEHHQGHVLJQHGWREHUHVLOLHQWWRIXWXUHVHDOHYHOULVH RYHU LWV  \HDU OLIH XVLQJ YDULRXV VHD OHYHO ULVH VFHQDULRV DQG LV FRQVLVWHQW ZLWK WKH &DOLIRUQLD &RDVWDO &RPPLVVLRQ 6HD /HYHO 5LVH 3ROLF\ *XLGDQFH GRFXPHQW ZKLFK UHFRJQL]HV EHDFK QRXULVKPHQW DV SUHIHUUHG VHD OHYHO ULVH DGDSWDWLRQ VWUDWHJ\ IRU GHYHORSHGFRDVWOLQHV
DQG
WHEREAS, WKH'UDIW(,6(,5ZDVLVVXHGLQDQGUHFRPPHQGHGWKH³1DWLRQDO (FRQRPLF'HYHORSPHQW´
1('
SODQ
DQG
WHEREAS, DW D 0DUFK  6DQ &OHPHQWH &LW\ &RXQFLO KHDULQJ WKH &LW\ H[SUHVVHGLWVVXSSRUWIRUWKH3URMHFWUHFRPPHQGHGE\WKH86$&(LQWKH)HDVLELOLW\6WXG\ DQGHYDOXDWHGLQWKH(,5(,6DQGWKLVPLOHVWRQHVHWWKHVWDJHIRU3URMHFWDSSURYDOE\WKH 86$&(
DQG
WHEREASWKH3URMHFWLVFRQVLVWHQWZLWK)HGHUDO6WDWHZLGHUHJLRQDODQGORFDO VKRUHOLQHPDQDJHPHQWJRDOVZKLFKUHFRJQL]HWKHLPSRUWDQFHRISXEOLFEHDFKUHVWRUDWLRQ DORQJ WKH 6RXWK 2UDQJH &RXQW\ VKRUHOLQH DV WKH SUHIHUUHGPHWKRG RI DGGUHVVLQJ WKH FULWLFDOFRDVWDOHURVLRQSUREOHPVFDXVHGE\DODFNRIVHGLPHQWVXSSO\ DQG
WHEREAS, LQWKHDEVHQFHRIWKH3URMHFWFRQWLQXHGKDUGVKRUHOLQHSURWHFWLRQLV H[SHFWHGWRRFFXU
DQG
WHEREASZLWKLPSOHPHQWDWLRQRIWKH3URMHFWWKH&LW\6WDWHDQG86$&(ZLOOEH SURYLGLQJD YLDEOHQDWXUHEDVHGJUHHQ VRIW VROXWLRQDVDPHDQVRIDGYDQFLQJQDWXUDO LQIUDVWUXFWXUHSURWHFWLRQ
DQG
WHEREAS,WKH3URMHFW)HDVLELOLW\6WXG\LGHQWLI\LQJWKHUHFRPPHQGHG3URMHFWIRU 6DQ&OHPHQWHZDVDSSURYHGE\WKH86$&(&LYLO:RUNV5HYLHZ%RDUG&:5%RQ0D\ 
DQG
WHEREAS,WKH)LQDO(,6(,5ZDVILOHGZLWKWKH86(QYLURQPHQWDO3URWHFWLRQ $JHQF\DQGZDVPDGHDYDLODEOHWRLQWHUHVWHGSDUWLHVIRUUHYLHZDQGFRPPHQWSXUVXDQW WRUHJXODWLRQVRIWKH3UHVLGHQW
V&RXQFLORQ(QYLURQPHQWDO4XDOLW\IRULPSOHPHQWLQJ1(3$

 &)5 3DUWV 
 DV ZHOO DV WKH 6WDWH &OHDULQJKRXVH*RYHUQRU¶V 2IILFH RI 3ODQQLQJDQG5HVHDUFKIRUDGD\SXEOLFUHYLHZSHULRGEHJLQQLQJRQ$XJXVW 
DQGHQGLQJRQ6HSWHPEHU
DQG
WHEREAS,WKH3URMHFWZDVDVVLJQHG6WDWH&OHDULQJKRXVH1XPEHU DQGUHVSRQVHVWRWKHSXEOLFFRPPHQWVDUHLQFOXGHGLQWKH)LQDO(,5(,6 DQG
WHEREAS, WKH )LQDO (,6(,5 GHWHUPLQHG WKDW DOO EXW WZR RI WKH SRWHQWLDO VLJQLILFDQWLPSDFWVRIWKH3URMHFWFDQEHDYRLGHGRUUHGXFHGWRDOHYHOEHORZVLJQLILFDQFH E\ WKH LPSOHPHQWDWLRQ RI IHDVLEOH PLWLJDWLRQ PHDVXUHV DV RXWOLQHG LQ WKH 0LWLJDWLRQ 10 5HVROXWLRQ1R  3DJH

Y
0RQLWRULQJDQG5HSRUWLQJ3URJUDP
0053

DQG
WHEREAS, LQ1RYHPEHUWKH&LW\DQGWKH86$&(UHFHLYHGDSSURYDOIURP WKH&&&ZKHQWKH\LVVXHGWKHLU&RQVLVWHQF\'HWHUPLQDWLRQ &'

IRUWKH3URMHFW

DQG
WHEREAS, WKH86$&(&KLHIV5HSRUWDSSURYLQJWKH)HDVLELOLW\6WXG\3URMHFWZDV LVVXHGRQ$SULODQGWKHILQDO1(3$DFWLRQRISXEOLVKLQJWKH5HFRUGRI'HFLVLRQ

52'
RFFXUUHGRQ6HSWHPEHU
DQG
WHEREAS, WKHVH DSSURYDOV VLJQDOHG WKH IRUPDO FRQFOXVLRQ RI WKH 3URMHFW¶V ³)HDVLELOLW\ 3KDVH´ ZKLFK HQDEOHG WKH 3URMHFW WR SURJUHVV WR WKH ³3UH&RQVWUXFWLRQ (QJLQHHULQJDQG'HVLJQ´
3('
SKDVHEHJLQQLQJLQ-XQH7KH3URMHFW¶V3('3KDVH FRQFOXGHGLQIROORZLQJWKHFROOHFWLRQRISUHFRQVWUXFWLRQEDVHOLQHGDWD DQG
WHEREAS, WKH5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUGLVVXHGD&OHDQ:DWHU$FW 6HFWLRQ:DWHU4XDOLW\&HUWLILFDWLRQDQG:DVWH'LVFKDUJH5HTXLUHPHQWV2UGHU1R ':4IRUWKH3URMHFWRQ1RYHPEHU
DQG
WHEREAS, WKH 86$&( SUHSDUHG D 6XSSOHPHQWDO (QYLURQPHQWDO $VVHVVPHQW DQG)LQGLQJRI1R6LJQLILFDQW,PSDFW
6($)216,
LQWRDGGUHVVJUHHQVHDWXUWOHV

DQG
WHEREAS, FRSLHV RI WKH )LQDO )HDVLELOLW\ 6WXG\  )(,6)(,5 6($)216, 0053 )LQGLQJV RI )DFW DQG 6WDWHPHQW RI 2YHUULGLQJ &RQVLGHUDWLRQV DQG RWKHU GRFXPHQWVDQGPDWHULDOVWKDWFRQVWLWXWHWKHDGPLQLVWUDWLYHUHFRUGRISURFHHGLQJVXSRQ ZKLFK WKLV GHFLVLRQ LV EDVHG DUH DQG KDYH EHHQ DYDLODEOH IRU SXEOLF UHYLHZ IURP WKH FXVWRGLDQ RI WKHVH UHFRUGV WKH 'HSDUWPHQW RI 3XEOLF :RUNV DW &LW\ +DOO  &DOOH
1HJRFLR6DQ&OHPHQWH&$

DQG
WHEREAS, WKH &LW\ &RXQFLO RI WKH &LW\ RI 6DQ &OHPHQWH KDV LQGHSHQGHQWO\ UHYLHZHG DQDO\]HG DQG FRQVLGHUHG WKH )LQDO (,6(,56($)216, 0053 DQG RWKHU GRFXPHQWVDQGPDWHULDOVWKDWFRQVWLWXWHWKHDGPLQLVWUDWLYHUHFRUGRISURFHHGLQJVDQGDOO SXEOLFFRPPHQWVZULWWHQDQGRUDOUHFHLYHGEHIRUHPDNLQJWKLVGHFLVLRQ DQG
WHEREASRQ-XO\WKH&LW\&RXQFLOKHOGDGXO\QRWLFHGSXEOLFKHDULQJ DQGKHDUGDQGFRQVLGHUHGLQIRUPDWLRQSUHVHQWHGE\VWDIIDQGWKHSXEOLF  NOW THEREFOREWKH&LW\&RXQFLORIWKH&LW\RI6DQ&OHPHQWH&DOLIRUQLDGRHV KHUHE\ILQGGHWHUPLQHDQGUHVROYHDVIROORZV

 7KDWWKHIRUHJRLQJUHFLWDWLRQVDUHWUXHDQGFRUUHFWDQGLQFRUSRUDWHG KHUHLQ
 7KDWWKH86$&(SUHSDUHGD)HDVLELOLW\6WXG\LGHQWLI\LQJWKH86$&( UHFRPPHQGHG3URMHFWLQ6DQ&OHPHQWH
 7KDWWKH)LQDO(,6(,5DQG6($)216,ZHUHSUHSDUHGWRHYDOXDWH 11 5HVROXWLRQ1R  3DJH

Y
WKHSRWHQWLDOHIIHFWVRILPSOHPHQWDWLRQRIWKH3URMHFWDVLGHQWLILHGLQWKH86$&( 3URMHFW)HDVLELOLW\6WXG\DQGUHYLHZHGLQFRPSOLDQFHZLWKWKHSURYLVLRQVRI&(4$ DQGWKH&(4$*XLGHOLQHVDQGWKH&LW\¶VORFDO&(4$SURFHGXUHV  7KDW VXEVWDQWLDO HYLGHQFH LQ WKH UHFRUG DV D ZKROH VXSSRUWV WKH GHFLVLRQVLQWKLVUHVROXWLRQ
 7KDWWKH)LQDO(,6(,5FRQVWLWXWHVDQDGHTXDWHDFFXUDWHREMHFWLYH DQGFRPSOHWH(,6(,5LQFRPSOLDQFHZLWKDOOOHJDOVWDQGDUGV  7KDWWKHLQIRUPDWLRQDQGDQDO\VLVFRQWDLQHGLQWKH)LQDO(,6(,5DQG 6($)216, UHIOHFWV WKH &LW\
V LQGHSHQGHQW MXGJPHQW DQG DQDO\VLV DV WR WKH
HQYLURQPHQWDOFRQVHTXHQFHVRIWKH3URMHFW
 7KDWWKH&LW\&RXQFLORIWKH&LW\RI6DQ&OHPHQWHKHUHE\DGRSWVWKH )LQDO )HDVLELOLW\ 6WXG\ DWWDFKHG DV ([KLELW $ DQG FHUWLILHV WKH )LQDO (,6(,5 DWWDFKHGDV([KLELW%LQFRUSRUDWLQJWKHPLWLJDWLRQPHDVXUHVDWWDFKHGDV([KLELW& DQGGLUHFWVWKHILOLQJRID1RWLFHRI'HWHUPLQDWLRQZLWKWKH&RXQW\&OHUN 
 7KDW RIWKH &LW\ RI6DQ &OHPHQWH KHUHE\ FHUWLILHVWKH 6($)216, DWWDFKHGDV([KLELW'

 7KDW DIWHU FRQVLGHULQJ WKH )LQDO (,6(,5 DQG LQ FRQMXQFWLRQ ZLWK PDNLQJ WKHVH ILQGLQJV WKH &LW\ &RXQFLO KHUHE\ ILQGV WKDW SXUVXDQW WR 6HFWLRQ 
 RIWKH &(4$*XLGHOLQHV DSSURYDO RIWKH3URMHFW ZLOO UHVXOW LQ VLJQLILFDQW HIIHFWVRQWKHHQYLURQPHQW
KRZHYHUWKH&LW\HOLPLQDWHGRIVXEVWDQWLDOO\OHVVHQHG WKHVH VLJQLILFDQW HIIHFWV ZKHUHIHDVLEOH DQGKDV GHWHUPLQHGWKDWWKH UHPDLQLQJ VLJQLILFDQW HIIHFWV DUH IRXQG WR EH XQDYRLGDEOH XQGHU 6HFWLRQ   DQG
DFFHSWDEOHXQGHU6HFWLRQ

 7KDW ([KLELW (
)LQGLQJV RI )DFWV DQG 6WDWHPHQW RI 2YHUULGLQJ
&RQVLGHUDWLRQV
DQG([KLELW&
0LWLJDWLRQ0RQLWRULQJDQG5HSRUWLQJ3URJUDP
RI
WKLV 5HVROXWLRQ SURYLGH ILQGLQJV UHTXLUHG XQGHU 6HFWLRQ   RI WKH &(4$
*XLGHOLQHVIRUVLJQLILFDQWHIIHFWVRIWKH3URMHFW
 7KDW([KLELW&RIWKLV5HVROXWLRQSURYLGHVWKHILQGLQJVUHTXLUHGXQGHU 6HFWLRQ
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
 7KDWWKH&LW\&RXQFLODSSURYHVWKH86$&(3URMHFWLQ6DQ&OHPHQWH  7KDWWKH&LW\0DQDJHURUKLVGHVLJQHHLVDXWKRUL]HGDQGGLUHFWHGWR HQWHU LQWR D 6WDWH /DQGV /HDVH IRU WKH 3URMHFW ZLWK WKH &DOLIRUQLD 6WDWH /DQGV &RPPLVVLRQLQDIRUPVXEVWDQWLDOO\VLPLODUWRWKDWDWWDFKHGWRWKLV5HVROXWLRQDV 12 5HVROXWLRQ1R  3DJH

Y
([KLELW)RUZLWKVXFKFKDQJHVDVDUHQHFHVVDU\WRLPSOHPHQWWKHSXUSRVHDQG LQWHQWRIWKLV5HVROXWLRQ
 7KDW&LW\VWDIILVDXWKRUL]HGDQGGLUHFWHGWRWDNHVXFKDFWLRQVDVDUH QHFHVVDU\ RU SURSHU WR IXOILOO WKH SXUSRVH DQG LQWHQW RI WKLV 5HVROXWLRQ DQGRU SURFHHGZLWKWKH3URMHFW
 7KDWWKH&LW\&OHUNVKDOOFHUWLI\WRWKHSDVVDJHDQGDGRSWLRQRIWKLV 5HVROXWLRQDQGHQWHULWLQWRWKHERRNRIRULJLQDOUHVROXWLRQV 3$66('$1'$'237('WKLVWKGD\RI-XO\
$77(67

BBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBB &LW\&OHUNRIWKH&LW\RI 0D\RURIWKH&LW\RI6DQ
6DQ&OHPHQWH&DOLIRUQLD &OHPHQWH&DOLIRUQLD
67$7(2)&$/,)251,$

&2817<2)25$1*(
†
&,7<2)6$1&/(0(17(

,/$85$&$03$*12/2&LW\&OHUNRIWKH&LW\RI6DQ&OHPHQWH&DOLIRUQLDGRKHUHE\ FHUWLI\WKDW5HVROXWLRQ1RZDVDGRSWHGDWDUHJXODUPHHWLQJRIWKH&LW\&RXQFLORIWKH &LW\RI6DQ&OHPHQWHKHOGRQWKHBBBBBBBGD\RIBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB E\WKHIROORZLQJYRWH

$<(6

12(6

$%6(17

,1:,71(66:+(5(2),KDYHKHUHXQWRVHWP\KDQGDQGDIIL[HGWKHRIILFLDOVHDORIWKH &LW\RI6DQ&OHPHQWH&DOLIRUQLDWKLVBBBBBGD\RIBBBBBBBBBBBBBBBBBBBBBBBBB  BBBBBBBBBBBBBBBBBBBBBBBBBB
 &,7<&/(5.RIWKH&LW\RI
 6DQ&OHPHQWH&DOLIRUQLD
$SSURYHGDVWRIRUP

BBBBBBBBBBBBBBBBBBBBBBBBBBB
(OL]DEHWK$0LWFKHOO&LW\$WWRUQH
13 ),1$/
-2,17(19,5210(17$/,03$&767$7(0(17
(19,5210(17$/,03$&75(3257
9ROXPH,
6$1&/(0(17(6+25(/,1(3527(&7,21352-(&7
6DQ&OHPHQWH&$
3UHSDUHGIRU

/RV$QJHOHV'LVWULFW
86$UP\&RUSVRI(QJLQHHUV
(QYLURQPHQWDO5HVRXUFHV%UDQFK

:LOVKLUH%OYG
/RV$QJHOHV&$

3UHSDUHGE\

&+$0%(56*5283,1&
+XWWRQ&HQWUH'ULYH6XLWH
6DQWD$QD&$





LQ$VVRFLDWLRQZLWK
1REOH&RQVXOWDQWV,QF
-XO\
$77$&+0(17
14 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
(6
(;(&87,9(6800$5<
7KLV)LQDO-RLQW(QYLURQPHQWDO,PSDFW6WDWHPHQW(QYLURQPHQWDO,PSDFW5HSRUW )LQDO(,6(,5

KDVEHHQSUHSDUHG IRUWKH/RV$QJHOHV'LVWULFWRIWKH86$UP\&RUSVRI(QJLQHHUV 86$&(

DQGWKH&LW\ RI 6DQ&OHPHQWH
/RFDO QRQ)HGHUDO VSRQVRU
WR DQDO\]H SRWHQWLDO HQYLURQPHQWDO
LPSDFWVDVVRFLDWHGZLWKWKHSURSRVHGDFWLRQDQGDOWHUQDWLYHVIRUSURYLGLQJVKRUHOLQHSURWHFWLRQWR DSSUR[LPDWHO\  IHHW
>IW@  PHWHUV >P@
 RI WKH 6DQ &OHPHQWH VKRUHOLQH IURP FRDVWDO
VWRUPV
7KH 86$&( LV WKH )HGHUDO OHDG DJHQF\ UHVSRQVLEOH IRU FRPSOLDQFH ZLWK WKH 1DWLRQDO (QYLURQPHQWDO 3ROLF\ $FW
1(3$
 RI 


 86& † 




 DQG WKH &LW\ RI 6DQ
&OHPHQWH
&LW\
LVWKHOHDGDJHQF\XQGHUWKH&DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW &(4$
RI


&DO3XE5HV&RGH†HWVHT
DVDPHQGHG7KLV)LQDO(,6(,5KDVEHHQSUHSDUHG
DWWKHSURMHFWOHYHORIGHWDLODQGFRPSOLHVZLWKWKHUHTXLUHPHQWVRIERWK1(3$DQG&(4$ 352-(&7$5($
7KH &LW\ RI 6DQ &OHPHQWH LV ORFDWHG DORQJ WKH FRDVW RI VRXWKHUQ &DOLIRUQLD DERXW  PLOHV

NLORPHWHUV
VRXWKRI/RV$QJHOHVDWWKHVRXWKHUQHQGRI2UDQJH&RXQW\QHDUWKHERUGHURI 6DQ'LHJR&RXQW\7KHVWXG\DUHDLVHQFRPSDVVHGZLWKLQWKH&LW\RI6DQ&OHPHQWHDQGH[WHQGV DSSUR[LPDWHO\  IW
 P
 IURP /LQGD /DQH WR 76WUHHW DQG LV ORFDWHG ZLWKLQ WKH 6DQ &OHPHQWH PLQXWH 86 *HRORJLFDO 6XUYH\
86*6
WRSRJUDSKLF TXDGUDQJOHLQ 6HFWLRQ  RI
7RZQVKLS
6RXWKDQG5DQJH:HVW
29(59,(:
%HDFKHURVLRQLVDQRQJRLQJSUREOHPDORQJWKH6DQ&OHPHQWHVKRUHOLQH2YHUWKHSDVW\HDUV DYHUDJHEHDFKZLGWKVLQWKH&LW\¶VEHDFKHVKDYHEHHQJUDGXDOO\UHGXFHGWRDERXWIW P
D
UHGXFWLRQRIPRUHWKDQSHUFHQWFRPSDUHGWREHDFKPHDVXUHPHQWVIURP DQG
6DQ
&OHPHQWHEHDFKHVZHUHHVSHFLDOO\LPSDFWHGE\WKH(O1LxR6RXWKHUQ2VFLOODWLRQ (162
VWRUPV
RI 
 DQG 

  %RWWRP HOHYDWLRQ VXUYH\V FRQGXFWHG VLQFH 
 DORQJ WKH 6DQ &OHPHQWH
0XQLFLSDO3LHU
3LHU
LQGLFDWHWKDWWKHFURVVVKRUHLV GHHSHQHGZLWKDPD[LPXP IOXFWXDWLRQ RI DERXWIW
P
DWYDULRXVORFDWLRQV&KDQJHVWRWKHEHDFKVKRUHOLQHFDXVHGE\HURVLRQKDYH UHGXFHG UHFUHDWLRQDO RSSRUWXQLWLHV DQG DUH WKUHDWHQLQJ WKH VWDELOLW\ RI &LW\ IDFLOLWLHV SULYDWH SURSHUW\DQGDPDMRUVRXWKHUQ&DOLIRUQLDFRPPXWHUUDLOFRUULGRU 5XQQLQJDORQJWKHHQWLUHOHQJWKRIWKH6DQ&OHPHQWHVKRUHOLQHDSRUWLRQRIWKH/RV$QJHOHVWR 6DQ'LHJR
/266$1
UDLOURDGFRUULGRUDPDMRUSDVVHQJHUUDLOOLQHOLQNLQJWKHFRDVWDOFLWLHVRI VRXWKHUQ &DOLIRUQLD LQFOXGLQJ /RV $QJHOHV DQG 6DQ 'LHJR UXQV EHWZHHQ WKH EHDFK DQG WKH FRDVWDO EOXIIV WKURXJK 6DQ &OHPHQWH DQG LV RZQHG E\ WKH 2UDQJH &RXQW\ 7UDQVSRUWDWLRQ $XWKRULW\
2&7$
7KLV QDWLRQDOO\ VWUDWHJLF UDLOFRUULGRULVDPRQJWKH EXVLHVWLQWKHFRXQWU\ 5LSUDSDORQJWKHVHDZDUGVLGHRIWKHUDLOFRUULGRUSURYLGHVVRPHSURWHFWLRQWRWKHWUDFNV7KLV FRUULGRULVRSHUDWHGE\WKH6RXWKHUQ&DOLIRUQLD5HJLRQDO5DLO$XWKRULW\ 6&55$
/RVVRIVKRUH
SURWHFWLRQDQGUHFUHDWLRQDOEHDFKZLGWKWKUHDWHQVWKHUDLOURDGDQGLVDFRQWLQXRXVSUREOHPIRUWKH &LW\RI6DQ&OHPHQWH
15 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
(6
7KH SXUSRVH RI WKH 6DQ &OHPHQWH 6KRUHOLQH 3URWHFWLRQ 3URMHFW 3URMHFW
 LV WR SURYLGH VKRUH
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
E
 $QDO\VLV RI WKH :DWHU
5HVRXUFHV 'HYHORSPHQW $FW RI 

:5'$ 
 ZDV SUHSDUHG DV DQ LQLWLDO UHVSRQVH WR WKH
(QHUJ\DQG:DWHU$SSURSULDWLRQV$FWRI3XEOLF/DZ 6HSWHPEHU

ZKLFK
UHDGVDVIROORZV

³7KH &RPPLWWHH UHFRPPHQGDWLRQ LQFOXGHV IXQGV IRU WKH &RUSV RI (QJLQHHUV WR FRQGXFWDUHFRQQDLVVDQFHVWXG\LQYHVWLJDWLQJVKRUHOLQHSURWHFWLRQDOWHUQDWLYHVIRU 6DQ&OHPHQWH&DOLIRUQLD´
352326('352-(&7
7ZRVFDOHVRIWKH%HDFK)LOO$OWHUQDWLYHZHUHDQDO\]HG
ERWKFRQVLVWRIGUHGJLQJPDWHULDOIURP
RIIVKRUH2FHDQVLGHWKHQKDXOLQJDQGSODFLQJLWDW6DQ&OHPHQWH%HDFK7KHSURSRVHG3URMHFWLV DIRRW
P
UHVXOWDQWEHDFKZLGWK%HDFKILOOZRXOGEHIW
P
ORQJZLWKDIW

P
 FUHVW HOHYDWLRQ 7KH GUHGJH YROXPHLV HVWLPDWHGWR EH DSSUR[LPDWHO\  FXELF \DUGV

 P

  'UHGJH PDWHULDO JUDGDWLRQ LV  WR  SHUFHQW RI ILQHV  WR  SHUFHQW RI JUDYHOFREEOHV DQG WKH UHVW LV VDQG  0DWHULDO FODVVLILFDWLRQ DVVXPHG LV  SHUFHQW ILQHV  SHUFHQW VDQG DQG  SHUFHQW JUDYHO  0DLQWHQDQFH QRXULVKPHQW HIIRUWV ZLOO RFFXU ZKHQ WKH VKRUHOLQHUHDFKHVWKHIWEDVHEHDFKZLGWK
LHDSSUR[LPDWHO\IW>P@
RYHUWKHSURMHFWOLIH
RI\HDUV0DLQWHQDQFHQRXULVKPHQWHIIRUWVZRXOGUHWXUQWKHEHDFKWRWKHGHVLJQEHDFKZLGWK  IW
P
 DQG ZRXOG LQYROYH XS WR DSSUR[LPDWHO\  F\ 
 P

 RI PDWHULDO
&RQVWUXFWLRQIRULQLWLDOILOOLVDQWLFLSDWHGWREHJLQLQ &RQVWUXFWLRQ0HWKRG
7KH SURSRVHG 3URMHFW ZLOO EH FRQVWUXFWHG ZLWK KRSSHU GUHGJLQJ HTXLSPHQW ZLWK SXPS DVKRUH FDSDELOLW\ DQG FRQYHQWLRQDO HDUWKPRYLQJ HTXLSPHQW  7\SLFDO /RV $QJHOHV 'LVWULFW EHDFK ILOO SURMHFWV UHTXLUH ODUJH FDSDFLW\ RSHQRFHDQ FDSDEOH GUHGJHV  $ PHGLXPVL]HG KRSSHU GUHGJH

HJ6XJDU,VODQG
ZRXOGEHXVHG7KHKRSSHUGUHGJHHIIHFWLYHFDSDFLW\LVHVWLPDWHGDWF\

P

DQGORDGVSHUGD\7KHKRSSHUGUHGJHZRXOGSXPSRXWWKHGUHGJHPDWHULDOYLDD LQFKSLSHOLQHDWF\KU
PKU
7KHKRSSHUGUHGJHZLOOEHILOOHGDWWKHGHVLJQDWHG
ERUURZ VLWHDSSUR[LPDWHO\ RQHPLOH RIIVKRUH RI2FHDQVLGHDQG KDXOHGDSSUR[LPDWHO\ PLOHV

NP
WR6DQ&OHPHQWH$WWKHUHFHLYHUEHDFKWKHGUHGJHZLOOEHDWWDFKHGWRDPRRUHGIORDWLQJ VHFWLRQ RI SLSHOLQH H[WHQGLQJ  IW
 P
 WR WKH VKRUHOLQH  7KH PDWHULDO ZRXOG EH UH
VXVSHQGHGDQGGLVFKDUJHGWKURXJKWKHRQERDUGSXPSLQJV\VWHPWRWKHUHFHLYHUVLWH 7KHKRSSHUGUHGJHUHTXLUHVDPRQREXR\WRGLVFKDUJHLWVVDQGRQWRWKHEHDFK$PRQREXR\LVD IORDWLQJSLSHOLQHFRQQHFWLRQSODWIRUPWKDWLVPRRUHGWRWKHVHDIORRUDQGLVXVHGWRLQWHUFRQQHFW 16 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
(6
ZLWK D VWHHO VLQNHU SLSHOLQH WKDW FDUULHV WKH VOXUU\ DORQJ WKHVHDIORRU WR WKH EHDFK  )RU WKLV 3URMHFWWKHPRQREXR\ZRXOGEHDQFKRUHGLQDWOHDVWIW P
RIZDWHUEHWZHHQDQG
 IW
 WR  P
 IURP VKRUH DQG LQ WKH DSSURSULDWH ORFDWLRQ LQ UHODWLRQ WR VHQVLWLYH UHVRXUFHVDQGHQJLQHHULQJFRQVLGHUDWLRQV)URPRQHPRQREXR\ORFDWLRQVDQGFDQEHSXPSHG GLUHFWO\RQVKRUHDQGXSWRDSSUR[LPDWHO\IW
P
DORQJVKRUHLQHLWKHUGLUHFWLRQ
'UHGJLQJZRXOGEHSHUIRUPHGKRXUVDGD\GD\VDZHHN6KRUHHTXLSPHQWZRXOGZRUN KRXUVDGD\GD\VDZHHN7KHSURSRVHG3URMHFWGXUDWLRQLVHVWLPDWHGDWZRUNLQJGD\VRYHU WKHFRXUVHRIPRQWKV
2QVKRUH3ODFHPHQW0HWKRG
6DQGZRXOGEHFRPELQHGZLWKVHDZDWHUXQWLOLWUHDFKHVWKHFRQVLVWHQF\RIVOXUU\,WWKHQZRXOG EHFRQYH\HGWRWKHEHDFKHLWKHUYLDSLSHOLQHRUDFRPELQDWLRQRIKRSSHUGUHGJHDQGSLSHOLQHDV GHVFULEHGDERYH
([LVWLQJVDQGDWWKHUHFHLYHUVLWHZRXOGEHXVHGWREXLOGDVPDOO³/´VKDSHGEHUPWRDQFKRUWKH VDQG SODFHPHQW RSHUDWLRQV  7KH VKRUW VLGH RIWKH ³/´ ZRXOG EHWUDQVYHUVH

FURVVZLVH
WRWKH
VKRUHOLQHDQGZRXOGEHDSSUR[LPDWHO\IW
P
ORQJ7KHORQJVLGHZRXOGEHVKRUHSDUDOOHO
DWWKHVHDZDUGHGJHDQGZRXOGEHDSSUR[LPDWHO\IW
P
ORQJ%HUPFRQVWUXFWLRQPD\EH
DGMXVWHG IURP WKH GHVLJQ UHTXLUHPHQWV GXULQJ ILOO SODFHPHQW GHSHQGLQJ RQ DFWXDO ILHOG FRQGLWLRQV7KHFURVVZLVHVLGHRIWKHEHUPZRXOGEHFRQVWUXFWHGWRDOORZDORQJVKRUHODQGZDUG EHDFKDFFHVVIRUHPHUJHQF\DFFHVVDWDOOWLPHV
7KHVOXUU\ZRXOGEHSXPSHGRQWRWKHEHDFKEHWZHHQWKLVEHUPDQGWRH7KHEHUPUHGXFHVRFHDQ ZDWHUWXUELGLW\ E\ DOORZLQJ DOOWKH VDQGWR VHWWOHLQVLGHWKH EHUPHG DUHD ZKLOHWKH VHDZDWHULV FKDQQHOHG DORQJ WKH EHUP XQWLO LW UHDFKHV WKH RSHQ HQG ZKHUH LW GUDLQV LQWR WKH RFHDQ 7HPSRUDU\ GLNHVZLWKLQWKH EHUPZLOODOORZ VDQGWR VHWWOHLQ GHVLJQDWHGDUHDV2QFHD  IW

P
VHFWLRQRIEHUPLVILOOHGLQZLWKVDQGDQRWKHUIW P
RIEHUPZLOOEHFUHDWHGWKH
SLSHOLQH ZLOO EH PRYHG RU H[WHQGHG RQ WKH GU\ EHDFK RQO\ LQWR WKH QHZ EHUP DUHD DQG WKH SURFHVVZRXOGEHJLQDJDLQ
WKHSLSHOLQHDORQJWKHVHDIORRUZRXOGQRWEHPRYHG$VWKHPDWHULDO LVGHSRVLWHGEHKLQGWKHEHUPWKHVDQGZRXOGEHVSUHDGXVLQJWZREXOOGR]HUVDQGRQHIURQWHQG ORDGHU WR GLUHFW WKH IORZ RI WKH VDQG VOXUU\ DQG IRUP D JUDGXDO VORSH WR WKH H[LVWLQJ EHDFK HOHYDWLRQ7KHEHUPZRXOGEHVXEMHFWWRWKHIRUFHVRIWKHZDYHVDQGZHDWKHURQFHFRQVWUXFWHG DQGZLOOHYHQWXDOO\VHWWOHGRZQWRDQDWXUDOJUDGHIRUWKHEHDFK &RQVWUXFWLRQ$FFHVVDQG6WDJLQJ$UHDV
%HDFKDFFHVV IRUWKHFRQVWUXFWLRQHTXLSPHQWDQGFUHZZLOOEHVSOLWEHWZHHQRSHQVSDFHRQWKH EHDFKDQGD&LW\RZQHG SXEOLF SDUNLQJORW$Q RSHQDUHDH[LVWVDORQJWKH EHDFKLPPHGLDWHO\ DGMDFHQWDQGQRUWKRIWKH3LHUDQGLQWKHLPPHGLDWHYLFLQLW\RIWKH0DULQH6DIHW\+HDGTXDUWHUV ,W LV H[SHFWHG WKLV VLWH ZLOO EH XVHG IRU WKH FRQWUDFWRUV¶ RIILFH WUDLOHU SDUNLQJ DUHD IRU KHDY\ HDUWKPRYLQJ HTXLSPHQW DQG VWRUDJH DUHD IRU GUHGJH SLSH DQG RWKHU PLVFHOODQHRXV PDWHULDOV 7KLVVLWHLVXVHGH[WHQVLYHO\ IRUDFFHVVWRWKH0DULQH6DIHW\+HDGTXDUWHUVDQGRWKHUPXQLFLSDO RSHUDWLRQV  ,W SRVHV QR QHZ HQYLURQPHQWDO FRQVLGHUDWLRQV PLQLPL]HV GLVWXUEDQFH WR WKH HQYLURQPHQW DQGLVLGHDOO\ORFDWHG IRU FRQWUDFWRU HDVH RI RSHUDWLRQV $OWKRXJK DFFHVVWRWKLV 17 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
(6
DUHDLVFRQWUROOHGE\DVLJQDOFRQWUROOHGDWJUDGHUDLOURDGFURVVLQJLWLVDQWLFLSDWHGWKDWWKHUHZLOO EH QR VLJQLILFDQW UHVWULFWLRQV RQ XWLOL]DWLRQ RIWKLV SRUWLRQ RIWKH FRQWUDFWRUV ZRUN DQG VWRUDJH DUHD
7KHFRQWUDFWRUV¶GUHGJHDQGYHVVHOVZLOOUHTXLUHRIIVLWHPRRULQJDQGEHUWKLQJVSDFH7KHUHLVQR PRRULQJDUHDDYDLODEOHZLWKLQWKH&LW\RI6DQ&OHPHQWH7KHQHDUHVWVXLWDEOHPRRULQJDUHDLV 'DQD3RLQW+DUERUDVPDOOFUDIWKDUERUDSSUR[LPDWHO\PL NP
QRUWK
3XEOLF$FFHVV
)RUWKH EHDFK ILOO RSHUDWLRQ XSWR  IW

P
 RI EHDFKZRXOG EHLQDFFHVVLEOHWRWKH SXEOLF
DURXQGWKHGLVFKDUJHSLSHOLQHDQGEHUPV,QDGGLWLRQWKHUHZRXOGEHLQWHUPLWWHQWUHVWULFWLRQVRQ SXEOLFDFFHVVIRUDSSUR[LPDWHO\IW
P
RQHLWKHUVLGHRIWKLVGLVFKDUJH]RQH7KLVVSDFH
ZRXOGEHQHHGHGIRUPDQHXYHULQJKHDY\HTXLSPHQWGXULQJFRQVWUXFWLRQRIWKHWHPSRUDU\EHUPV )XWXUH3URMHFW%HDFK3URILOH0RQLWRULQJ
/RQJWHUP VKRUHOLQH HURVLRQDO SURFHVVHV FUHDWH GDPDJHV WKURXJK ORQJWHUP SURILOH WUDQVODWLRQ ODQGZDUG DQG WKH LQFUHDVLQJ SRWHQWLDO IRU ZDYH UHODWHG GDPDJHV  7KH ODQGZDUG DGYDQFLQJ VKRUHOLQHUHGXFHVWKHEHDFKZLGWKDYDLODEOHIRUVWRUPGDPDJHSURWHFWLRQWKHUHE\LQFUHDVLQJWKH SUREDELOLW\RIZDYH UHODWHGGDPDJHVWR IDFLOLWLHVDQGVWUXFWXUHV/RQJWHUPEHDFKHURVLRQDOVR UHVXOWV LQ WKH JUDGXDO UHGXFWLRQ RI WKH EHDFK VXUIDFH DUHD DYDLODEOH IRU UHFUHDWLRQ  7KH SHDN HURVLRQUDWHLV±IW\U
±P\U
WKHPD[LPXPHURVLRQUDWHLVIW\U
±P\U
DQG
WKHPD[LPXPDFFUHWLRQUDWHLVIW\U
P\U

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
0DLQWHQDQFHQRXULVKPHQWHIIRUWVZLOORFFXUZKHQWKHVKRUHOLQHUHDFKHVWKHIWEDVHEHDFKZLGWK

LHDSSUR[LPDWHO\ IW >P@
0DLQWHQDQFHQRXULVKPHQWHIIRUWVZRXOG UHWXUQWKHEHDFKWR WKHGHVLJQEHDFKZLGWKIW
P
DQGZRXOGLQYROYHXSWRDSSUR[LPDWHO\F\


P

 RI PDWHULDO  0DLQWHQDQFH QRXULVKPHQW HIIRUWV DOVR ZRXOG EH GHSHQGHQW XSRQ DYDLODEOH IXQGLQJDWWKHWLPHRIUHTXHVW
(19,5210(17$/&216(48(1&(6
,VVXHV WKDW ZHUH IRXQG QRW WR EH VLJQLILFDQW IRU WKH SURSRVHG 3URMHFW LQFOXGHG ODQG XVH DQG SROLF\  ,VVXHV WKDW ZHUH IRXQG WR EH OHVV WKDQ VLJQLILFDQW ZLWKRXW WKH QHHG IRU PLWLJDWLRQ PHDVXUHVZHUHJHRORJ\DQGWRSRJUDSK\QRLVHWUDQVSRUWDWLRQDHVWKHWLFVDQGSXEOLFKHDOWKDQG VDIHW\7KHFRQVWUXFWLRQDQGORQJWHUPPDLQWHQDQFHRIWKHSURSRVHG3URMHFWZRXOGQRWKDYHD 18 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
(6
VLJQLILFDQW HIIHFW RQ WKHVH HOHPHQWV DQG WKH DQDO\VHV RI WKHVH LVVXHV DUH GHWDLOHG LQ WKH HQYLURQPHQWDOFRQVHTXHQFHVVHFWLRQ
$OWKRXJKVLJQLILFDQWLPSDFWVWRELRORJLFDOUHVRXUFHV
LHVXUIJUDVV
DQGUHFUHDWLRQ
LHVXUILQJ

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
DUWLILFLDOVXUILQJUHHIKDVQRW\HWEHHQVXFFHVVIXORIIWKHFRDVWRI&DOLIRUQLD (QYLURQPHQWDO-XVWLFH
7KHFRQVWUXFWLRQDQGORQJWHUPPDLQWHQDQFHRIWKHSURSRVHG3URMHFWZRXOGQRWEHH[SHFWHGWR KDYHDQ\QHJDWLYHHIIHFWRQPLQRULW\RUORZLQFRPHSRSXODWLRQV,QDGGLWLRQWKHH[SDQVLRQRI WKH EHDFK ZLGWK ZRXOG EH D SXEOLFLPSURYHPHQWWKDW ZRXOG EHQHILW UHVLGHQFHV DQG EXVLQHVVHV DOLNH
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
(6
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³ORZVXOIXUGLHVHO IRUFRQVWUXFWLRQHTXLSPHQWDQGGLHVHOSDUWLFXODWH ILOWHUV IRUGLHVHO HTXLSPHQWDQGWUXFNV´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
,PSOHPHQWDWLRQ RI WKH SURSRVHG 3URMHFW ZRXOG QRW UHVXOW LQ DQ\ HQYLURQPHQWDO LPSDFWV WKDW ZRXOG VLJQLILFDQWO\ QDUURZWKH UDQJH RI EHQHILFLDO XVHV RIWKH HQYLURQPHQW RU SRVHORQJWHUP ULVNVWRKHDOWKVDIHW\RUWKHJHQHUDOZHOIDUHRIWKHSXEOLFFRPPXQLWLHVVXUURXQGLQJWKHEHDFKDW 6DQ&OHPHQWH3LHU5DWKHUWKH3URMHFWZRXOGSURYLGHIRUIXWXUHEHQHILFLDOEHDFKUHVRXUFHV HJ
UHFUHDWLRQDODFWLYLWLHVVDQG\VKRUHOLQHKDELWDW

38%/,&,192/9(0(17
7KLV)LQDO-RLQW(,6(,5ZLOOEHFLUFXODWHGIRUDSXEOLFUHYLHZSHULRGRIGD\VWRDSSURSULDWH UHVRXUFH DJHQFLHVORFDOLQWHUHVW JURXSV DQGLQGLYLGXDOV$OO FRPPHQWV DQG FRQFHUQVWKDW DUH UHFHLYHGGXULQJWKHUHYLHZSHULRGVKDOOEHLQFRUSRUDWHGLQWRWKHILQDO(,6(,5 6HQG&RPPHQWVWR

0U7KRPDV.HHQH\(FRORJLVW%LRORJLFDO6FLHQFHV0DQDJHU

:LOVKLUH%RXOHYDUGWK)ORRU
/RV$QJHOHV&$

3KRQH


20 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
L
7$%/(2)&217(176
(;(&87,9(6800$5< ,1752'8&7,21  6WXG\$UHD  3URMHFW%DFNJURXQG  'RFXPHQW2UJDQL]DWLRQ 1((')25$1'2%-(&7,9(62)352326('$&7,21  3XUSRVHDQG1HHG  6WRUP'DPDJHV  7KUHDWWRWKH5DLOURDG&RUULGRU  3XEOLF6DIHW\DQG/LDELOLW\  5HFUHDWLRQ2SSRUWXQLW\  3URMHFW2EMHFWLYH  6WXG\$XWKRULW\  &RPSOLDQFHZLWK$SSOLFDEOH5HJXODWRU\6WDWXWHVDQG3HUPLW5HTXLUHPHQWV

 )HGHUDO(QYLURQPHQWDO5HJXODWLRQV

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
LL
 6HGLPHQWV

 2FHDQRJUDSKLF&KDUDFWHULVWLFVDQG&RDVWDO3URFHVVHV  %LRORJLFDO5HVRXUFHV  7HUUHVWULDO6KRUHOLQH+DELWDW  0DULQH6KRUHOLQHDQG2IIVKRUH+DELWDWV  6SHFLDO6WDWXV/LVWHG6SHFLHV  &RQVHUYDWLRQ+DELWDW0DQDJHPHQW3ODQ  &XOWXUDO5HVRXUFHV  5HJXODWRU\6HWWLQJ  $UHDRI3RWHQWLDO(IIHFWV
$3(


 &XOWXUDO&RQWH[W  5HFRUGVDQG/LWHUDWXUH6HDUFK5HVXOWV  3HGHVWULDQ6XUYH\5HVXOWV  1DWLYH$PHULFDQ&RQVXOWDWLRQ  6HFWLRQ&RQVXOWDWLRQDQG&RRUGLQDWLRQ  *URXQGDQG9HVVHO7UDQVSRUWDWLRQ  *URXQG7UDQVSRUWDWLRQ  9HVVHO7UDQVSRUWDWLRQ  /DQG8VHDQG3ROLF\  /DQG8VH  3ROLF\  1RLVH  1RLVH7HUPLQRORJ\  5HJXODWRU\6HWWLQJ 
5HFUHDWLRQ 
 %HDFKHV 
 $QQXDO(YHQWV 
 %HDFKHV3DUNVDQG5HFUHDWLRQ'HSDUWPHQW  $HVWKHWLFV  3XEOLF+HDOWKDQG6DIHW\  6RFLRHFRQRPLFV(QYLURQPHQWDO-XVWLFH  /RFDO6RFLRHFRQRPLF&RQGLWLRQV  2QVLWH6RFLRHFRQRPLF&RQGLWLRQV (19,5210(17$/&216(48(1&(62)352326('$&7,21$1'
$/7(51$7,9(6  $LU4XDOLW\DQG0HWHRURORJ\  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWVRIWKH1R$FWLRQ$OWHUQDWLYH  *HRORJ\DQG7RSRJUDSK\  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH 22 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
LLL
 :DWHU5HVRXUFHV
:DWHU4XDOLW\6HGLPHQWVDQG2FHDQRJUDSK\

 6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH  %LRORJLFDO5HVRXUFHV  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH

 6XPPDU\RI%LRORJLFDO5HVRXUFHV(IIHFWVDQG,VVXHV  8SIURQWPLWLJDWLRQHQGRZPHQWVWKLUGSDUW\DJUHHPHQWVDQGLPSOHPHQWDWLRQ  &XOWXUDO5HVRXUFHV  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH  *URXQGDQG9HVVHO7UDQVSRUWDWLRQ  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH  /DQG8VHDQG3ROLF\  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH  1RLVH  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH 
5HFUHDWLRQ 
 6LJQLILFDQFH&ULWHULD 
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH 
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH 
 ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH  $HVWKHWLFV  6LJQLILFDQFH&ULWHULD  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH

 ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH 
 3XEOLF+HDOWKDQG6DIHW\ 
 6LJQLILFDQFH&ULWHULD 
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH 
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH

23 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
LY
 ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH 
 6RFLRHFRQRPLFV(QYLURQPHQWDO-XVWLFH 
 6LJQLILFDQFH&ULWHULD 
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH 
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH

 ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH 
&808/$7,9(,03$&7$1$/<6,6  'HVFULSWLRQRI&XPXODWLYH3URMHFWV  'DQD3RLQW+DUERU0DLQWHQDQFH'UHGJLQJ  6DQ2QRIUH1XFOHDU*HQHUDWLQJ6WDWLRQ.HOS5HHI3URMHFW  5DLOURDG2SHUDWLRQV  $QDO\VLVRI&XPXODWLYH,PSDFWV  $LU4XDOLW\DQG0HWHRURORJ\  *HRORJ\DQG7RSRJUDSK\  :DWHU5HVRXUFHV  %LRORJLFDO5HVRXUFHV  &XOWXUDO5HVRXUFHV  *URXQGDQG9HVVHO7UDQVSRUWDWLRQ  /DQG8VHDQG3ROLF\  1RLVH 
5HFUHDWLRQ  $HVWKHWLFV  3XEOLF+HDOWKDQG6DIHW\  6RFLRHFRQRPLFV(QYLURQPHQWDO-XVWLFH (19,5210(17$/&200,70(176 27+(51(3$&(4$5(48,5('$1$/<6(6  (IIHFWV)RXQG1RWWREH6LJQLILFDQW  8QDYRLGDEOH6LJQLILFDQW,PSDFWV  ,UUHYHUVLEOHDQG,UUHWULHYDEOH&RPPLWPHQWRI5HVRXUFHV  *URZWK,QGXFLQJ,PSDFWV  (QHUJ\5HTXLUHPHQWVDQG&RQVHUYDWLRQ3RWHQWLDORI$OWHUQDWLYHVDQG0LWLJDWLRQ 0HDVXUHV  5HODWLRQVKLSEHWZHHQ6KRUWWHUP8VHVRIWKH(QYLURQPHQWDQG0DLQWHQDQFHDQG (QKDQFHPHQWRI/RQJ7HUP3URGXFWLYLW\

38%/,&,192/9(0(17$1',17(5$*(1&<&225',1$7,21 

 5HTXLUHG&RRUGLQDWLRQ 

 3XEOLF,QYROYHPHQW 

 3XEOLF3DUWLFLSDWLRQ 

 ,QWHUDJHQF\&RRUGLQDWLRQ 

 86)LVKDQG:LOGOLIH6HUYLFH 

 86$UP\&RUSVRI(QJLQHHUV5HJXODWRU\%UDQFK 

 86(QYLURQPHQWDO3URWHFWLRQ$JHQF\ 

 1DWLRQDO0DULQH)LVKHULHV6HUYLFH 
24 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
Y

 &DOLIRUQLD&RDVWDO&RPPLVVLRQ 

 &DOLIRUQLD6WDWH/DQGV&RPPLVVLRQ 

 &DOLIRUQLD'HSDUWPHQWRI)LVKDQG*DPH 

 &DOLIRUQLD6WDWH+LVWRULF3UHVHUYDWLRQ2IILFHU$GYLVRU\&RXQFLORQ+LVWRULF 3UHVHUYDWLRQ 


5HJLRQDO:DWHU4XDOLW\&RQWURO%RDUG 

 2WKHU$JHQFLHV3XEOLF,QWHUHVW*URXSV 

 5HTXLUHG3HUPLWVDQG$SSURYDOV 
/,672)35(3$5(56$1'5(9,(:(56  5HYLHZHUV  86$UP\&RUSVRI(QJLQHHUV  3UHSDUHUV  86$UP\&RUSVRI(QJLQHHUV  &KDPEHUV*URXS,QF */266$5<$&521<06$1'$%%5(9,$7,216  $FURQ\PV  &KHPLFDO$EEUHYLDWLRQV  8QLWVRI0HDVXUHPHQW 5()(5(1&(6 ',675,%87,21/,67 5(63216(72&200(176 25 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
YL
/,672)7$%/(6
7DEOH 3DJH
7DEOH&RPSDULVRQRI0DQDJHPHQW0HDVXUHVWR(QYLURQPHQWDO(YDOXDWLRQ&ULWHULD 7DEOH$PELHQW$LU4XDOLW\0RQLWRULQJ6XPPDU\ 7DEOH$PELHQW$LU4XDOLW\6WDQGDUGVIRU3ULRULW\3ROOXWDQWV 7DEOH$WWDLQPHQW6WDWXVIRUWKH6&$%

7DEOHD*HQHUDO&RQIRUPLW\De Minimis/HYHOV

7DEOH&DOLIRUQLD2FHDQ3ODQ:DWHU4XDOLW\2EMHFWLYHV 7DEOH6DQ&OHPHQWH6KRUHOLQH3URMHFW±%RUURZ$UHD6HGLPHQW&RPSRVLWH6DPSOH 
&KHPLFDO5HVXOWV 7DEOH7LGDO'DWXP(OHYDWLRQVDW/D-ROOD&$ 7DEOH$QQXDO0D[LPXP:DYH+HLJKWVRII6DQ&OHPHQWH 


7DEOH
6HGLPHQW'LVFKDUJHIURP5LYHUVDQG6WUHDPV 7DEOH6HGLPHQW%XGJHWIRU2FHDQVLGH/LWWRUDO&HOO 1RUWK±6DQ&OHPHQWH
LQP

\U
 7DEOH/RQJ7HUP6KRUHOLQH&KDQJH5DWHVLQ6DQ&OHPHQWH$UHD 7DEOH6DQ&OHPHQWH$UHD%HDFK3URILOH7UDQVHFWV 7DEOH6XPPDU\RI5HFHQW/RQJ7HUP6KRUHOLQH&KDQJH5DWHV 7DEOH6XPPDU\RI6DQG7KLFNQHVV 7DEOH6XPPDU\RI5HFRUGHG$UFKDHRORJLFDO5HVRXUFHVZLWKLQ3URMHFW9LFLQLW\ 7DEOH6XPPDU\RI1DWLRQDO5HJLVWHU3URSHUWLHVZLWKLQ3URMHFW9LFLQLW\ 7DEOH$YHUDJH'DLO\7UDIILF
$'7
DORQJ/RFDO5RDGZD\V 7DEOH6RXQG/HYHOVRI7\SLFDO1RLVH6RXUFHVDQG1RLVH(QYLURQPHQWV 7DEOH
6DQ&OHPHQWH1RLVH6WDQGDUGV 7DEOH7KUHVKROGVRI6LJQLILFDQFH 7DEOH/RFDOL]HG&RQVWUXFWLRQ(PLVVLRQV&RQFHQWUDWLRQV 7DEOH5HTXLUHG%HVW$YDLODEOH&RQWURO0HDVXUHVIRU)XJLWLYH'XVW 7DEOH&RQWLQJHQF\&RQWURO0HDVXUHVIRU)XJLWLYH'XVW'XULQJ+LJK:LQGVLQ([FHVVRI 03+ 7DEOH&RPSDULVRQRI8QPLWLJDWHG3URMHFWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHVIRU IW%HDFK:LGWK$OWHUQDWLYH

7DEOH&RPSDULVRQRI0LWLJDWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHVIRUWKHIW %HDFK:LGWK$OWHUQDWLYH 7DEOH&RPSDULVRQRI8QPLWLJDWHG3URMHFWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHVIRU IW%HDFK:LGWK$OWHUQDWLYH 7DEOH&RPSDULVRQRI0LWLJDWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHV 7DEOH
6DQ&OHPHQWH1RLVH6WDQGDUGV 7DEOH6XPPDU\RIGHVLJQIHDWXUHVDQGPRQLWRULQJFRPPLWPHQWV 7DEOH
/LVWRI)HGHUDO6WDWHDQG/RFDO3URMHFW$SSURYDOV 

26 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
YLL
/,672)),*85(6
)LJXUH 3DJH
)LJXUH9LFLQLW\0DS )LJXUH/RFDWLRQ0DS 7DEOH&RPSDULVRQRI0DQDJHPHQW0HDVXUHVWR(QYLURQPHQWDO(YDOXDWLRQ&ULWHULD )LJXUH±2FHDQVLGH%RUURZ6LWH )LJXUH3ODQ9LHZRIIW
P
%HDFK:LGWK$OWHUQDWLYH )LJXUH3ODQ9LHZRIIW
P
%HDFK:LGWK$OWHUQDWLYH )LJXUH%HDFK$FFHVVDQG6WDJLQJ$UHDV )LJXUH6LJQLILFDQW:DYH+HLJKW+LVWRJUDPIRU:DYHVRII6DQ&OHPHQWH 


)LJXUH6LJQLILFDQW:DYH+HLJKW+LVWRJUDPRII6DQ&OHPHQWH:LQWHU'DWD 


)LJXUH6SHFWUDO3HDN3HULRG+LVWRJUDPIRU:DYHVRII6DQ&OHPHQWH 


)LJXUH:DYH'LUHFWLRQ+LVWRJUDPIRU:DYHVRII6DQ&OHPHQWH 


)LJXUH0DMRU5LYHUVDQG'UDLQDJH%DVLQV2FHDQVLGH/LWWRUDO&HOO )LJXUH5HFHQW6KRUHOLQH&KDQJH06/%HDFK:LGWK
P
 )LJXUH&URVV6KRUH3URILOHRI%HDFK

)LJXUH&URVV6KRUH3URILOHRI$UPRUHG6KRUHOLQH

)LJXUH
+LVWRULF.HOS&DQRS\DQG5HHI0DS )LJXUH6XUIJUDVV6XUYH\ 7DEOH6SHFLDO6WDWXV/LVWHG6SHFLHVWKDW0D\2FFXULQWKH6DQ&OHPHQWH3LHURU2FHDQVLGH  )LJXUH2YHUYLHZRI6DQ&OHPHQWH0XQLFLSDO3LHU
ORRNLQJZHVW

7DEOH$YHUDJH'DLO\7UDIILF
$'7
DORQJ/RFDO5RDGZD\V 7DEOH7KUHVKROGVRI6LJQLILFDQFH 7DEOH&RPSDULVRQRI8QPLWLJDWHG3URMHFWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHVIRU IW%HDFK:LGWK$OWHUQDWLYH

7DEOH&RPSDULVRQRI0LWLJDWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHVIRUWKHIW %HDFK:LGWK$OWHUQDWLYH 7DEOH&RPSDULVRQRI8QPLWLJDWHG3URMHFWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHVIRU IW%HDFK:LGWK$OWHUQDWLYH 7DEOH&RPSDULVRQRI0LWLJDWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHV )LJXUH6$1'$*2FHDQVLGH%HDFK)LOO3URILOHV
%HIRUHDQG$IWHU&RQVWUXFWLRQ


)LJXUH&URVV6HFWLRQ3URILOHRIWKHIW%HDFK:LGWK$OWHUQDWLYH )LJXUH&URVV6HFWLRQ3URILOHRIIW
P
%HDFK:LGWK$OWHUQDWLYH )LJXUH3ODQ9LHZRI76WUHHW6XUI%UHDN%DWK\PHWU\

)LJXUH&URVV6HFWLRQRI76WUHHW6XUI%UHDN%DWK\PHWU\ 'LVWDQFHVLQ)HHW

)LJXUH+LVWRULF$HULDO3KRWRJUDSKRI6DQ&OHPHQWH3LHU6KRUHOLQH )LJXUH8&6DQ'LHJR1HDUVKRUH0DSSLQJ3URJUDP )LJXUH8&6'1HDUVKRUH3URJUDP'DWD)HHW)URP6KRUHOLQH )LJXUH
8&6'1HDUVKRUH3URJUDP'DWD )LJXUH6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ0LWLJDWLRQ$OWHUQDWLYHV )LJXUH6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ0LWLJDWLRQ3ODQV )LJXUH3UR[LPLW\RI:KHHOHU1RUWK5HHIWR3URMHFW6LWH 7DEOH6XPPDU\RIGHVLJQIHDWXUHVDQGPRQLWRULQJFRPPLWPHQWV 7DEOH6XPPDU\RIGHVLJQIHDWXUHVDQGPRQLWRULQJFRPPLWPHQWV

FRQWLQXHG

27 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
YLLL
7DEOH6XPPDU\RIGHVLJQIHDWXUHVDQGPRQLWRULQJFRPPLWPHQWV

FRQWLQXHG

7DEOH6XPPDU\RIGHVLJQIHDWXUHVDQGPRQLWRULQJFRPPLWPHQWV

FRQWLQXHG

7DEOH6XPPDU\RIGHVLJQIHDWXUHVDQGPRQLWRULQJFRPPLWPHQWV

FRQWLQXHG

7DEOH
/LVWRI)HGHUDO6WDWHDQG/RFDO3URMHFW$SSURYDOV 
28 3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
L[
/,672)$33(1',&(6

9ROXPH,

$SSHQGL[$±
E



$SSHQGL[%±%LRORJLFDO5HVRXUFHV0RQLWRULQJ3ODQ

9ROXPH,,

$SSHQGL[&±$LU4XDOLW\$QDO\VLV5HSRUW
$SSHQGL['±&RDVWDO(QJLQHHULQJ5HSRUW
$SSHQGL[(±*HRWHFKQLFDO5HSRUW
$SSHQGL[)±$JHQF\&RRUGLQDWLRQDQG3XEOLF,QYROYHPHQW $SSHQGL[*±&RRUGLQDWLRQ$FW5HSRUW
29 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
 
 ,1752'8&7,21
7KLV)LQDO-RLQW(QYLURQPHQWDO,PSDFW6WDWHPHQW(QYLURQPHQWDO,PSDFW5HSRUW )LQDO(,6(,5

KDVEHHQSUHSDUHGIRUWKH/RV$QJHOHV'LVWULFWRIWKH86$UP\&RUSVRI(QJLQHHUV 86$&(

DQG WKH &LW\ RI 6DQ &OHPHQWH
/RFDO QRQ)HGHUDO VSRQVRU
 IRU WKH 6DQ &OHPHQWH 6KRUHOLQH
3URWHFWLRQ 3URMHFW
3URMHFW
  7KLV )LQDO (,6(,5 DQDO\]HV SRWHQWLDO HQYLURQPHQWDO LPSDFWV DVVRFLDWHG ZLWK WKH SURSRVHG DFWLRQ DQG DOWHUQDWLYHV IRU SURYLGLQJ VKRUHOLQH SURWHFWLRQ WR DSSUR[LPDWHO\  IHHW
>IW@  PHWHUV >P@
 RI WKH 6DQ &OHPHQWH VKRUHOLQH IURP FRDVWDO
VWRUPV
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
1(3$
 RI 


 86& † 




 DQG WKH &LW\ RI 6DQ
&OHPHQWH
&LW\
LVWKHOHDGDJHQF\XQGHUWKH&DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW &(4$
RI


&DO3XE5HV&RGH†HWVHT
DVDPHQGHG7KLV)LQDO(,6(,5KDVEHHQSUHSDUHG
DWWKHSURMHFWOHYHORIGHWDLODQGFRPSOLHVZLWKWKHUHTXLUHPHQWVRIERWK1(3$DQG&(4$  6WXG\$UHD
7KH&LW\RI6DQ&OHPHQWHLVORFDWHGDORQJWKHFRDVWRIVRXWKHUQ&DOLIRUQLDDERXWPLOHV >PL@
 NLORPHWHUV
>NP@
 VRXWK RI /RV $QJHOHV DW WKH VRXWKHUQ HQG RI 2UDQJH &RXQW\ QHDU WKH ERUGHURI6DQ'LHJR&RXQW\
)LJXUH
7KHVWXG\DUHDLVHQFRPSDVVHGZLWKLQWKH&LW\RI6DQ &OHPHQWH DQG H[WHQGV DSSUR[LPDWHO\  IW
 P
 IURP /LQGD /DQH WR 76WUHHW
)LJXUH

 DQG LV ORFDWHG ZLWKLQ WKH 6DQ &OHPHQWH PLQXWH 86 *HRORJLFDO 6XUYH\ 86*6

WRSRJUDSKLFTXDGUDQJOHLQ6HFWLRQRI7RZQVKLS
6RXWKDQG5DQJH:HVW7KHFRPPXQLWLHV
RI &DSLVWUDQR %HDFK DQG 'DQD 3RLQW DUH ORFDWHG XSFRDVW RI WKH VWXG\ DUHD  6DQ 2QRIUH 6WDWH
%HDFK3DUNDQGWKH0DULQH&RUSV%DVH&DPS3HQGOHWRQ
0&%&3
DUHORFDWHGWRWKHVRXWK7KH
VWXG\DUHDLVLQWKHWK&RQJUHVVLRQDO'LVWULFW$ERUURZDUHDDW2FHDQVLGHKDVEHHQLGHQWLILHG DVWKHSRWHQWLDOVRXUFHIRUEHDFKUHSOHQLVKPHQWPDWHULDO $ORQJWKHHQWLUHOHQJWKRIWKH6DQ&OHPHQWHVKRUHOLQHDSRUWLRQRIWKH/RV$QJHOHVWR6DQ'LHJR

/266$1
 UDLOURDG FRUULGRU D PDMRU SDVVHQJHU UDLOOLQHOLQNLQJWKH FRDVWDO FLWLHV RI VRXWKHUQ &DOLIRUQLDUXQVEHWZHHQWKHEHDFKDQGWKHFRDVWDOEOXIIVWKURXJK6DQ&OHPHQWHDQGLVRZQHGE\ WKH2UDQJH&RXQW\7UDQVSRUWDWLRQ$XWKRULW\
2&7$
7KLVQDWLRQDOO\VWUDWHJLF UDLOFRUULGRULV
DPRQJWKH EXVLHVWLQWKH FRXQWU\5LSUDS DORQJWKH VHDZDUG VLGH RIWKH UDLO FRUULGRU SURYLGHV VRPHSURWHFWLRQWRWKHWUDFNV7KHUDLOURDGVHDZDUGVORSHLQFRUSRUDWHVWKHFRQYHQWLRQDOEDOODVW FRQVWUXFWLRQDQG KDVD VORSH RI 
 KRUL]RQWDO
YHUWLFDO
+
9 7KLVFRUULGRULV RSHUDWHG E\WKH
6RXWKHUQ &DOLIRUQLD 5HJLRQDO 5DLO $XWKRULW\
6&55$
  /RVV RI EHDFK ZLGWK WKUHDWHQV WKH
UDLOURDGDQGLVDFRQWLQXRXVSUREOHPIRUWKH&LW\RI6DQ&OHPHQWH 30 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
 
)LJXUH9LFLQLW\0DS
31 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
 
)LJXUH/RFDWLRQ0DS
32 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
 
 3URMHFW%DFNJURXQG
7KH &LW\ RI 6DQ &OHPHQWH ZDV IRXQGHG LQ 
 LQFRUSRUDWHG LQ 
 DQG ZDV RULJLQDOO\
SURPRWHG DV ³7KH 6SDQLVK 9LOODJH´ GHVLJQHG WR EH D UHVLGHQWLDO VHWWOHPHQW IHDWXULQJ ZKLWH VWXFFRKRPHVZLWK UHGWLOH URRIVVLWHGRQZLGHPHDQGHULQJVWUHHWVZLWKRFHDQYLHZV7KH6DQ &OHPHQWH0XQLFLSDO3LHU
3LHU
H[WHQGVDSSUR[LPDWHO\ IW
P
LQWRWKH3DFLILF2FHDQ
DQGLV SDUW RIWKH UHFUHDWLRQDO DSSHDO IRUWRXULVWVYLVLWRUV RI 6DQ&OHPHQWH&LW\%HDFK DQGWKH DFUH
KHFWDUH
6WDWH%HDFKORFDOO\UHQRZQHGDVRQHRIWKHSUHPLHUVXUILQJORFDOHVLQWKH UHJLRQ
3ULRUWRXUEDQGHYHORSPHQWLQWKH

VWKHEHDFKHVZLWKLQWKHVWXG\DUHDUHPDLQHGUHODWLYHO\ VWDEOH EHFDXVH RI D EDODQFHG VHGLPHQW VXSSO\ GHOLYHUHG IURP WKH 6DQ -XDQ &UHHN WR WKH 2FHDQVLGHOLWWRUDOFHOO+RZHYHUGRFXPHQWHGKLVWRULFDOEHDFKZLGWKVDERYHWKH0HDQ6HD/HYHO

06/
OLQHEHWZHHQ76WUHHWDQG0DULSRVD3RLQWZHUHDVQDUURZDVP  IW
LQWKHZLQWHU
PRQWKV GXULQJ WKLV WLPH SHULRG
86$&(63/ 


  $V D FRQVHTXHQFH VWRUP GDPDJHV
RFFXUUHGLQWKHSDVW
HJ


DQG


DVWKHSURWHFWLYHEXIIHUEHDFKZLGWKZDV
QDUURZSDUWLFXODUO\LQWKHZLQWHUVHDVRQ
6LQFHWKH 

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
 'RFXPHQW2UJDQL]DWLRQ
7KLVGRFXPHQWLVRUJDQL]HGWRDVVLVWWKH UHDGHUWKURXJKWKHYDULRXVVWHSVWDNHQE\WKH86$&( DQG WKH &LW\ WR WKRURXJKO\ DQG DGHTXDWHO\ DQDO\]H WKH HQYLURQPHQWDO FRQVHTXHQFHV RI WKLV 3URMHFW  ,Q JHQHUDO WKLV GRFXPHQW GHILQHV WKH SUREOHP SUHVHQWV SRVVLEOH VROXWLRQV DQG GHVFULEHV WKH H[LVWLQJ FRQGLWLRQV DQG WKH FRQVHTXHQFHV RI HDFK DOWHUQDWLYH RQ EDVHOLQH 33 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV
 
FRQGLWLRQV  7KURXJK WKLV DQDO\VLV DQG RWKHU HFRQRPLF DQDO\VHV D SUHIHUUHG DOWHUQDWLYH ZDV VHOHFWHGDVWKHSURSRVHGDFWLRQ
7KHSXUSRVHQHHGDQGWKHREMHFWLYHVDVVRFLDWHGZLWKSURWHFWLRQRIWKH6DQ&OHPHQWHVKRUHOLQH DUH GHVFULEHG LQ 6HFWLRQ  RI WKLV MRLQW (,6(,5  $OWHUQDWLYHV DUH GHVFULEHG LQ 6HFWLRQ  %DVHOLQH HQYLURQPHQWDO FRQGLWLRQV DUH GHVFULEHG LQ 6HFWLRQ  DQG WKH HQYLURQPHQWDO FRQVHTXHQFHVDVVRFLDWHGZLWKHDFKDOWHUQDWLYHDUHGLVFXVVHGLQ6HFWLRQ'LIIHUHQWDVSHFWVRI LPSDFWDVVHVVPHQWVXFKDVFXPXODWLYHLPSDFWVXQDYRLGDEOHVLJQLILFDQWLPSDFWVDQGPLWLJDWLRQ PHDVXUHV DPRQJ RWKHUV DUH GLVFXVVHG LQ 6HFWLRQV  WKURXJK   2WKHU 1(3$ DQG &(4$
UHTXLUHGDQDO\VHVDUHSUHVHQWHGLQ6HFWLRQ3XEOLFDQGLQWHUDJHQF\LQYROYHPHQWLVGHVFULEHG LQ 6HFWLRQ   7KH SUHSDUHUV DQG UHYLHZHUV RIWKHMRLQW (,6(,5 DUHOLVWHGLQ 6HFWLRQ  5HIHUHQFHV DUH SURYLGHG LQ 6HFWLRQ   7KH DSSHQGLFHV SURYLGH EDFNJURXQG GDWD DQG VXSSRUWLQJGRFXPHQWDWLRQDQGDQDO\VHV
34 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 1((')25$1'2%-(&7,9(62)352326('$&7,21
 3XUSRVHDQG1HHG
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
$ QXPEHU RI SXEOLF FRQFHUQV ZHUH LGHQWLILHG GXULQJ WKH FRXUVH RI WKH UHFRQQDLVVDQFH VWXG\ ,QLWLDO FRQFHUQV ZHUH H[SUHVVHG LQ WKH VWXG\ DXWKRUL]DWLRQ  $GGLWLRQDO LQSXW ZDV UHFHLYHG WKURXJK FRRUGLQDWLRQ ZLWK WKH &LW\ DQG RWKHU DJHQFLHV  7KH SXEOLF LQWHUHVW UHODWHG WR WKH HVWDEOLVKPHQWRISODQQLQJREMHFWLYHVDQGSODQQLQJFRQVWUDLQWVDUH 
 7R UHGXFHWKH SRWHQWLDO IRU VWRUP GDPDJHVWRWKH/266$15DLO&RUULGRU UDLO IDFLOLWLHV DQGUDLOOLQHRSHUDWLRQVORFDWHGDORQJWKHEHDFKHVRIWKH&LW\RI6DQ&OHPHQWH 
 7RUHGXFHWKHSRWHQWLDOIRUVWRUPGDPDJHVWRSXEOLFEHDFKIDFLOLWLHV 
 7RUHVWRUHWKHUHFUHDWLRQEHDFKDORQJWKH3DFLILF&RDVWRIWKH&LW\RI6DQ&OHPHQWH 
 7R SUHVHUYH WKH QHDUVKRUH HFRV\VWHP WKDW VXSSRUWV FRPPHUFLDO OREVWHU ILVKHUPDQ DQG VQRUNHOLQJDFWLYLWLHV

 7RSUHVHUYHDQGHQKDQFHRSSRUWXQLWLHVIRUVXUILQJDORQJWKH6DQ&OHPHQWHFRDVW DQG
  7R LPSURYH SXEOLF DFFHVV DQG VDIHW\ WR WKH UHFUHDWLRQ EHDFK DUHDV RI WKH &LW\ RI 6DQ &OHPHQWH
 6WRUP'DPDJHV
3ULRU WR WKH 

V WKH EHDFKHV ZLWKLQ WKH VWXG\ DUHD ZHUH PDUJLQDOO\ VWDEOH DV VXIILFLHQW VHGLPHQW ZDV VXSSOLHG IURP 6DQ -XDQ &UHHNWRWKH 2FHDQVLGHOLWWRUDO FHOO  7KLV ZDV SULRUWR XSODQG XUEDQ GHYHORSPHQW WKDW GHSULYHG WKH VDQG VXSSO\ UHVXOWLQJ IURP WKH GDPPLQJ DQG FRQFUHWLQJ RI FUHHNV DQG ULYHUV DQG XUEDQ GHYHORSPHQW  $V D UHVXOW WKH EHDFKHV SURYLGH PLQLPDO SURWHFWLRQ DJDLQVW VWRUPLQGXFHG GDPDJHV WR WKH UDLOURDG DQG SXEOLF IDFLOLWLHV  7KH GRFXPHQWHGKLVWRULFDOEHDFKZLGWKDERYHWKH0HDQ6HD/HYHO 06/
OLQHEHWZHHQ76WUHHWDQG
0DULSRVD3RLQWZDVDVQDUURZDVPHWHUV
 IW
LQWKHZLQWHUPRQWKV
86$&(63/



$VDFRQVHTXHQFHVWRUPGDPDJHVRFFXUUHGLQWKHSDVW
HJ


DQG


DVWKH
SURWHFWLYHEXIIHUEHDFKZLGWKZDVQDUURZSDUWLFXODUO\LQWKHZLQWHUVHDVRQ 7KH QDUURZLQJ RI WKH EHDFKHV DORQJ WKH VKRUHOLQH KDV VXEMHFWHG WKH SXEOLF IDFLOLWLHV WR ZDYH LQGXFHG GDPDJHV  7KHVH IDFLOLWLHV LQFOXGH WKH 0DULQH 6DIHW\ %XLOGLQJ SXEOLF UHVWURRPV OLIHJXDUG VWDWLRQV SDUNLQJ DUHDV DQG FRQFHVVLRQ VWDQGV  7KHPHWHRURORJLFDO FRQGLWLRQV RI (O 1LQRRFFXUUHGLQWKH\HDUV

DQG

7KHPDMRULW\RIUHSDLUVLQWKH\HDUVRI

DQG 
 ZHUH GXHWR GDPDJHVWRWKH 6DQ&OHPHQWH 3LHU  7KH&LW\ VSHQW  LQ 3LHU
35 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

UHSDLUV LQ 
 DQG  LQ 
  ,Q DGGLWLRQ UHSDLU FRVWV IRU D UHYHWPHQW LQ WKH FRPPXQLW\RI&DSLVWUDQR6KRUHVWRWDOHG,QDGGLWLRQWKH&LW\LVVSHQGLQJSHU \HDUWRXVHDWUDFWRUWRUHGXFHWKHVWHHSQHVVRIWKHVKRUHOLQH  7KUHDWWRWKH5DLOURDG&RUULGRU
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
'2'
KDVGHVLJQDWHGWKLVULJKWRIZD\DVD6WUDWHJLF5DLO
&RUULGRUZLWKJUHDWVLJQLILFDQFHWR1DWLRQDOGHIHQVH'XULQJZLQWHUVWRUPHYHQWVWUDLQVHUYLFH KDV EHHQ GHOD\HG LQ RUGHU WR SURYLGH H[WUD SUHFDXWLRQDU\ PHDVXUHV WR PRYH WKH WUDLQV VDIHO\ WKURXJKWKHDUHD&UHZVDUHGLVSDWFKHGGXULQJKLJKWLGHDQGVWRUPFRQGLWLRQVWRYLVXDOO\LQVSHFW IRU WUDFN GDPDJH WKDW FRXOG FDXVH GHUDLOPHQWV  &RQWLQXHG HURVLRQ DORQJ WKH 6DQ &OHPHQWH VKRUHOLQHZLOOOHDGWRIXUWKHUGLVUXSWLRQRIUDLOVHUYLFH  3XEOLF6DIHW\DQG/LDELOLW\
$VD UHVXOWRIWKHFRQWLQXHGEHDFKHURVLRQWKURXJKRXWWKH&LW\¶VVKRUHOLQHDQXPEHURISXEOLF VDIHW\FRQFHUQVKDYHVXUIDFHG3XEOLFUHVWURRPVDUHORFDWHGRQWKHEHDFKVHDZDUG ZHVW
RIWKH
UDLOURDGWUDFNV
FRQWLQXHGGDPDJHVWRWKHVHIDFLOLWLHVPD\UHTXLUHWKHLUUHORFDWLRQWRWKHODQGZDUG VLGH
HDVW
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¶VOLDELOLW\KDVWKHSRWHQWLDOWREHVXEVWDQWLDO  5HFUHDWLRQ2SSRUWXQLW\
6DQ&OHPHQWHKDVDQDQQXDOWRXULVWYLVLWDWLRQRIDERXWWZRPLOOLRQSHRSOHRUDSSUR[LPDWHO\ SHUFHQWQRQUHVLGHQWV&RQWLQXRXVVKRUHOLQHUHWUHDWZLOOIXUWKHUGHJUDGHWKH&LW\¶VEHDFKHVDQG VLJQLILFDQWO\LPSDFWEHDFKUHFUHDWLRQWRXULVPDQGHFRQRPLFEHQHILWV 36 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 3URMHFW2EMHFWLYH
7KHREMHFWLYHRIWKH6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ3URMHFWLV 
 7RUHGXFHWKHSRWHQWLDOIRUVWRUPGDPDJHVWRIDFLOLWLHVORFDWHGDORQJWKHFRDVWRIWKH&LW\ RI 6DQ&OHPHQWHLQFOXGLQJ UHFUHDWLRQ EHDFK IDFLOLWLHV DQGWKH/266$15DLO&RUULGRU DQG
 7R UHVWRUH DQG PDLQWDLQ UHFUHDWLRQ XVH DORQJ WKH 3DFLILF &RDVW RI WKH &LW\ RI 6DQ &OHPHQWH
7KHVH REMHFWLYHV ZHUH DFFRPSOLVKHG E\ IRUPXODWLQJ DQG HYDOXDWLQJ DQ DUUD\ RI IHDVLEOH DOWHUQDWLYHV DQG LGHQWLI\LQJ WKH RQH WKDW PRVW HIIHFWLYHO\ UHGXFHV VWRUPUHODWHG ULVNV DQG GDPDJHV ZKLOH FRPSO\LQJ ZLWK /RFDO 6WDWH DQG )HGHUDO HQYLURQPHQWDOODZV DQG UHJXODWLRQV 7KH VFRSH RI WKLV )LQDO (,6(,5 GHVFULEHV WKH SK\VLFDO HQYLURQPHQWDO DQG VRFLRHFRQRPLF EDVHOLQHFRQGLWLRQVDQGLGHQWLILHVWKHHQYLURQPHQWDOFRQVHTXHQFHVRIWKHDOWHUQDWLYHVLQFOXGLQJ IXWXUHZLWKRXW3URMHFWFRQGLWLRQV
1R$FWLRQ$OWHUQDWLYH

 6WXG\$XWKRULW\
7KH 6DQ &OHPHQWH 6KRUHOLQH 5HFRQQDLVVDQFH 6WXG\ D 6HFWLRQ 
E
 $QDO\VLV RI WKH :DWHU
5HVRXUFHV 'HYHORSPHQW $FW RI 

:5'$ 
 ZDV SUHSDUHG DV DQ LQLWLDO UHVSRQVH WR WKH
(QHUJ\DQG:DWHU$SSURSULDWLRQV$FWRI3XEOLF/DZ 6HSWHPEHU

ZKLFK
UHDGVDVIROORZV

³7KH &RPPLWWHH UHFRPPHQGDWLRQ LQFOXGHV IXQGV IRU WKH &RUSV RI (QJLQHHUV WR FRQGXFWDUHFRQQDLVVDQFHVWXG\LQYHVWLJDWLQJVKRUHOLQHSURWHFWLRQDOWHUQDWLYHVIRU 6DQ&OHPHQWH&DOLIRUQLD´
,QDGGLWLRQ6HFWLRQRIWKH)ORRG&RQWURO$FWRI
VWDWHV

³7KH6HFUHWDU\RIWKH$UP\LVKHUHE\DXWKRUL]HGDQGGLUHFWHGWRFDXVHVXUYH\VIRU IORRG FRQWURO DQG DOOLHG SXUSRVHV LQFOXGLQJ FKDQQHO DQG PDMRU GUDLQDJH LPSURYHPHQWV DQG IORRGV DJJUDYDWHG E\ RU GXH WR ZLQG RU WLGDO HIIHFWV WR EH PDGH XQGHU WKH GLUHFWLRQ RI WKH &KLHI RI (QJLQHHUV LQ GUDLQDJH DUHDV RI WKH 8QLWHG 6WDWHV DQG LWV WHUULWRULDO SRVVHVVLRQV ZKLFK LQFOXGH WKH ORFDOLWLHV VSHFLILFDOO\QDPHGLQWKLVVHFWLRQ«&RDVWVRI:DVKLQJWRQ2UHJRQDQG&DOLIRUQLD WRGHWHUPLQHDGYLVDELOLW\RISURWHFWLRQZRUNDJDLQVWVWRUPDQGWLGDOZDYHV´ 7KLV )LQDO(,6(,5 VXSSRUWVWKH86$&( IHDVLELOLW\ VWXG\ IRUWKH 3URMHFW WKH IHDVLELOLW\ VWXG\
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
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


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
 1DWLRQDO(QYLURQPHQWDO3ROLF\$FWRI


3XEOLF/DZ


DVDPHQGHG

7KLV)LQDO(,6(,5KDVEHHQSUHSDUHGLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRIWKH1(3$RI 


86&DVDPHQGHG
DQGWKH&RXQFLORQ(QYLURQPHQWDO4XDOLW\
&(4
5HJXODWLRQVIRU
,PSOHPHQWLQJWKH3URFHGXUDO3URYLVLRQVRI1(3$
&RGHRI)HGHUDO5HJXODWLRQV>&)5@

 GDWHG  -XO\ 
  1(3$ UHTXLUHV WKDW DJHQFLHV RI WKH )HGHUDO *RYHUQPHQW VKDOO LPSOHPHQWDQHQYLURQPHQWDOLPSDFWDQDO\VLVSURJUDPLQRUGHUWRHYDOXDWHPDMRUIHGHUDODFWLRQV VLJQLILFDQWO\ DIIHFWLQJ WKH TXDOLW\ RI WKH KXPDQ HQYLURQPHQW´  $ PDMRU IHGHUDO DFWLRQ PD\ LQFOXGH SURMHFWV ILQDQFHG DVVLVWHG FRQGXFWHG UHJXODWHG RU DSSURYHG E\ D IHGHUDO DJHQF\ 1(3$UHJXODWLRQVZHUHIROORZHGLQWKHSUHSDUDWLRQRIWKLV(,6  (5&)50DUFK

7KLVHQJLQHHUUHJXODWLRQ
(5
SURYLGHVJXLGDQFHIRULPSOHPHQWDWLRQRIWKHSURFHGXUDOSURYLVLRQV RIWKH1(3$IRUWKH&LYLO:RUNV3URJUDPRIWKH86$&(,WVXSSOHPHQWV&(4UHJXODWLRQV &RGH RI )HGHUDO5HJXODWLRQV
&)5
 1RYHPEHU 
 
LQ DFFRUGDQFHZLWK&(4
UHJXODWLRQV :KHUHYHUWKH JXLGDQFHLQWKLV UHJXODWLRQLV XQFOHDU RU QRW VSHFLILFWKH UHDGHULV UHIHUUHGWRWKH&(4 UHJXODWLRQV7KLV UHJXODWLRQLVDSSOLFDEOHWRDOOWKH86$&( UHVSRQVLELOLW\ IRUSUHSDULQJDQGSURFHVVLQJHQYLURQPHQWDOGRFXPHQWVLQVXSSRUWRIFLYLOZRUNVIXQFWLRQV  &RDVWDO=RQH0DQDJHPHQW$FWRI
DQG&DOLIRUQLD&RDVWDO$FWRI

7KH&RDVWDO=RQH0DQDJHPHQW$FW
&=0$
SUHVHUYHVSURWHFWVGHYHORSVDQGZKHUHSRVVLEOH
UHVWRUHV RU HQKDQFHV WKH 1DWLRQ¶V FRDVWDO ]RQH UHVRXUFHV IRU WKLV DQG VXFFHHGLQJ JHQHUDWLRQV 7KLV)LQDO(,6(,5VKDOODFWDVWKH&RDVWDO&RQVLVWHQF\'HWHUPLQDWLRQ &&'
WRWKH&DOLIRUQLD
&RDVWDO&RPPLVVLRQ
&&&
LQ VDWLVIDFWLRQ RI&=0$ UHTXLUHPHQWV 6HFWLRQ  G
WR FHUWLI\
FRQVLVWHQF\ WR WKH PD[LPXP H[WHQW SUDFWLFDEOH ZLWK DQ DSSURYHG 6WDWH &RDVWDO =RQH 0DQDJHPHQW3ODQ7KH86$&(VKDOOVXEPLWWKH)LQDO(,6(,5WRWKH&&&IRUWKHLUUHYLHZDQG DSSURYDO  7KH 86$&( KDV GHWHUPLQHG WKDW WKH 3URMHFW LV FRQVLVWHQW WR WKH PD[LPXP H[WHQW SUDFWLFDEOH ZLWK WKH &=0$  7KH 86$&( VKDOO REWDLQ FRQFXUUHQFH IURP WKH &&& SULRU WR FRQVWUXFWLRQ
38 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 &OHDQ:DWHU$FWRI

3XEOLF/DZ


7KH &OHDQ :DWHU $FW
&:$
 JRYHUQV GLVFKDUJH RU GUHGJH RI PDWHULDOV LQ WKH ZDWHUV RI WKH 8QLWHG 6WDWHV DQGLW JRYHUQV SROOXWLRQ FRQWURO DQG ZDWHU TXDOLW\ RI ZDWHUZD\VWKURXJKRXWWKH 86,WVLQWHQWLQSDUWLVWRUHVWRUHDQGPDLQWDLQWKHELRORJLFDOLQWHJULW\RIWKH1DWLRQ¶VZDWHUV 7KHJRDOVDQGVWDQGDUGVRIWKH&:$DUHHQIRUFHGWKURXJKSHUPLWSURYLVLRQV 6HFWLRQRXWOLQHVWKHSHUPLWSURJUDPUHTXLUHGIRUGUHGJLQJRUILOOLQJWKH1DWLRQ¶VZDWHUZD\V 7KH 86$&( GRHV QRW LVVXH LWVHOI D SHUPLW IRU FLYLO ZRUNV SURMHFWV  7KHUHIRUH D 6HFWLRQ 
E


DQDO\VLVKDVEHHQSUHSDUHG86$&(KDVGHWHUPLQHGWKDWIXOOFRPSOLDQFHZLWK&:$ 6HFWLRQLVPHWDQGWKXVPD\LQYRNHLIQHHGHG&:$ U
RQFHWKHSURMHFWLVDXWKRUL]HG
E\&RQJUHVV6HFWLRQ
E


DGGUHVVHVSURMHFWUHODWHGLPSDFWVWRWKHZDWHUVRIWKH86DQG SURYLGHV DSSURSULDWH PLWLJDWLRQ PHDVXUHV WR PLQLPL]H LPSDFWV  6HFWLRQ  D
 RI WKH

E


 JXLGHOLQHV UHTXLUHV FRQVLGHUDWLRQ RI D ³SUDFWLFDEOH DOWHUQDWLYH WR WKH SURSRVHG GLVFKDUJHZKLFKZRXOGKDYHOHVVLPSDFWRQWKHDTXDWLFHFRV\VWHPVRORQJDVWKHDOWHUQDWLYHGRHV QRWKDYHRWKHUVLJQLILFDQWDGYHUVHHQYLURQPHQWDOFRQVHTXHQFHV´6HFWLRQ D


VWDWHVWKDW
³DQ DOWHUQDWLYH LV SUDFWLFDEOH LI LW LV DYDLODEOH DQG FDSDEOH RI EHLQJ GRQH DIWHU WDNLQJ LQWR FRQVLGHUDWLRQ FRVWV H[LVWLQJ WHFKQRORJ\ DQG ORJLVWLFV LQ OLJKW RI RYHUDOO SURMHFW SXUSRVHV´ 6HFWLRQ 
D


 VWDWHV³IRUDFWLRQV VXEMHFWWR1(3$ZKHUHWKH&RUSV RI(QJLQHHUVLVWKH SHUPLWWLQJ DJHQF\ WKH DQDO\VLV RI DOWHUQDWLYHV UHTXLUHG IRU 1(3$ HQYLURQPHQWDO GRFXPHQWV LQFOXGLQJVXSSOHPHQWDO&RUSV1(3$GRFXPHQWVZLOOLQPRVWFDVHVSURYLGHWKHLQIRUPDWLRQIRU WKHHYDOXDWLRQRIDOWHUQDWLYHVXQGHUWKHVH*XLGHOLQHV´ 7KH &LW\ PXVW IROORZ DOO WKH HQYLURQPHQWDO FRPPLWPHQWV LGHQWLILHG LQ WKH (,6(,5 ZKHUH DSSOLFDEOH7KH86$&(VKDOOFRQWLQXHWRFRRUGLQDWHZLWKWKH5HJLRQDO:DWHU4XDOLW\&RQWURO %RDUG
5:4&%
WKURXJKRXWWKH&:$SURFHVVDQGFRQVWUXFWLRQDFWLYLWLHV  5LYHUVDQG+DUERUV$FWRI


6HFWLRQRIWKH5LYHUVDQG+DUERUV$FWSURKLELWVWKHXQDXWKRUL]HGREVWUXFWLRQRUDOWHUDWLRQRI DQ\ QDYLJDEOHZDWHUV RIWKH8QLWHG6WDWHVDQGDXWKRUL]HVWKH86$&(WR UHJXODWHDOODFWLYLWLHV WKDWDIIHFWWKHFRXUVHFDSDFLW\RUFRRUGLQDWLRQRIZDWHUVRIWKH861DYLJDEOHZDWHUVRIWKH 86DUHGHILQHGLQ&)53DUW
DVWKRVHZDWHUVWKDWDUHVXEMHFWWRWKHHEEDQGIORZRIWKH WLGHDQGRUDUH SUHVHQWO\ XVHG RU KDYH EHHQ XVHGLQWKH SDVWRUPD\ EH VXVFHSWLEOH IRU XVHWR WUDQVSRUWLQWHUVWDWHRUIRUHLJQFRPPHUFH86$&(KDVFRPSOLHGZLWK5LYHUDQG+DUERUV$FWLQ WKHGHYHORSPHQWRIWKLV)LQDO(,6(,5
 )LVKDQG:LOGOLIH&RRUGLQDWLRQ$FWRI

3XEOLF/DZ86&
F


7KH)LVKDQG:LOGOLIH&RRUGLQDWLRQ$FW
):&$
SURWHFWVILVKDQGZLOGOLIHIURP)HGHUDODFWLRQV
WKDWUHVXOWLQWKHFRQWURORUPRGLILFDWLRQRIDQDWXUDOVWUHDPRUZDWHUERG\7KH):&$UHTXLUHV FRQVXOWDWLRQ ZLWK WKH 86 )LVK DQG:LOGOLIH 6HUYLFH 86):6
 WKH &DOLIRUQLD 'HSDUWPHQW RI
)LVKDQG*DPH
&')*
DQG1DWLRQDO2FHDQRJUDSKLFDQG$WPRVSKHULF$GPLQLVWUDWLRQ1DWLRQDO 0DULQH)LVKHULHV6HUYLFH
12$$)LVKHULHV
DOORIZKLFKKDVEHHQFRRUGLQDWHGZLWKGXULQJWKH
LQLWLDODQGFXUUHQW VWDJHVRISODQQLQJGHYHORSPHQWRIWKHSURSRVHGDOWHUQDWLYHVHQYLURQPHQWDO FRPPLWPHQWVDQGSRWHQWLDOPLWLJDWLRQPHDVXUHV7KH86$&(VKDOOFRQWLQXHWRFRRUGLQDWHZLWK 39 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

12$$ )LVKHULHV WKURXJKRXW WKH 1(3$ SURFHVV DQG FRQVWUXFWLRQ DFWLYLWLHV  7KH )LQDO &RRUGLQDWLRQ$FW5HSRUW
&$5
LVLQFOXGHGDV$SSHQGL[*
 )HGHUDO(QGDQJHUHG6SHFLHV$FWRI

7KH)HGHUDO(QGDQJHUHG6SHFLHV$FWRI

(6$
SURWHFWVHQGDQJHUHGDQGWKUHDWHQHGVSHFLHV
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
D


RIWKH(6$)HGHUDODJHQFLHVPXVWFRQVXOWZLWK)HGHUDOUHVRXUFHDJHQFLHV

LH 86):6 12$$ )LVKHULHV
 DQG SUHSDUH D %LRORJLFDO $VVHVVPHQW
%$
 LI OLVWHG VSHFLHV
DQGRU FULWLFDO KDELWDW DUH SUHVHQWLQ DQ DUHDWR EHLPSDFWHG E\ 3URMHFW DFWLYLW\  7KH 86):6 DQGRU12$$)LVKHULHVWKHQZRXOGSUHSDUHD%LRORJLFDO2SLQLRQ %2
RQKRZWKHDFWLRQZRXOG
DIIHFWWKHVSHFLHVDQGRULWVFULWLFDOKDELWDWDQGZRXOGVXJJHVWUHDVRQDEOHDQGSUXGHQWPHDVXUHV WRDYRLGMHRSDUGL]LQJWKHFRQWLQXHGH[LVWHQFH RIWKH VSHFLHV RUDGYHUVHO\PRGLI\LQJLWVFULWLFDO KDELWDW  ,I SULRU WR DQGRU GXULQJ FRQVWUXFWLRQ LW LV GHWHUPLQHG WKDW )HGHUDO HQGDQJHUHG DQG WKUHDWHQHG VSHFLHV ZRXOG EH DGYHUVHO\ LPSDFWHG WKH 86$&( ZRXOG LQLWLDWH 6HFWLRQ  FRQVXOWDWLRQ
 0DJQXVRQ6WHYHQV)LVKHU\0DQDJHPHQWDQG&RQVHUYDWLRQ$FWDVDPHQGHG



3XEOLF/DZ

)HGHUDO DJHQFLHV PXVW FRQVXOW ZLWK 12$$ )LVKHULHV RQ DFWLRQV WKDW PD\ DGYHUVHO\ DIIHFW (VVHQWLDO)LVK+DELWDW
()+
()+LVGHILQHGDVWKRVH³ZDWHUVDQGVXEVWUDWHQHFHVVDU\WRILVKIRU VSDZQLQJEUHHGLQJIHHGLQJRUJURZWKWRPDWXULW\´12$$)LVKHULHVHQFRXUDJHVVWUHDPOLQLQJ WKH FRQVXOWDWLRQ SURFHVV XVLQJ UHYLHZ SURFHGXUHV XQGHU 1(3$ ):&$ &:$ DQGRU (6$ SURYLGHG WKDW GRFXPHQWV PHHW UHTXLUHPHQWV IRU ()+ DVVHVVPHQWV XQGHU 6HFWLRQ  
J

()+DVVHVVPHQWVPXVWLQFOXGH

DGHVFULSWLRQRIWKHSURSRVHGDFWLRQ

DQDQDO\VLVRIHIIHFWV
LQFOXGLQJFXPXODWLYHHIIHFWV

WKH)HGHUDODJHQF\¶VYLHZV UHJDUGLQJWKHHIIHFWVRIWKHDFWLRQ RQ()+DQG

SURSRVHGPLWLJDWLRQLIDSSOLFDEOH7KHGHVFULSWLRQDQGHYDOXDWLRQRI()+IRU WKHFRDVWDO]RQHLVLQFOXGHGLQWKLV)LQDO(,6(,5LQ6HFWLRQ 
0DULQH0DPPDO3URWHFWLRQ$FWRI

7KH 0DULQH 0DPPDO 3URWHFWLRQ $FW
003$
 SURWHFWV PDULQH PDPPDOV DQG HVWDEOLVKHV D
PDULQH PDPPDO FRPPLVVLRQ WR UHJXODWH VXFK SURWHFWLRQ  7KH UHTXLUHPHQWV RI WKLV DFW ZHUH FRQVLGHUHG LQ WKH HYDOXDWLRQ RI HQYLURQPHQWDO FRQVHTXHQFHV RI WKH SURSRVHG 3URMHFW DQG DOWHUQDWLYHV
40 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 0LJUDWRU\%LUG7UHDW\$FWDVDPHQGHG
86&

7KH0LJUDWRU\%LUG7UHDW\$FW
0%7$
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
 ([HFXWLYH2UGHU


7KLV RUGHU UHTXLUHV WKDW JRYHUQPHQWDO DJHQFLHV LQ FDUU\LQJ RXW WKHLU UHVSRQVLELOLWLHV SURYLGH OHDGHUVKLSDQG³WDNHDFWLRQWRPLQLPL]HWKHGHVWUXFWLRQORVVRUGHJUDGDWLRQRIZHWODQGVDQGWR SUHVHUYHDQGHQKDQFHWKHQDWXUDODQGEHQHILFLDOYDOXHVRIZHWODQGV´7KLVRUGHUZDVFRQVLGHUHG LQWKHGHYHORSPHQWRIWKHSURSRVHG3URMHFWDQGDOWHUQDWLYHV  ([HFXWLYH2UGHU


7KLVRUGHULVUHODWHGWRWKHSURWHFWLRQDQGHQKDQFHPHQWRIHQYLURQPHQWDOTXDOLW\6HFWLRQRI WKLVRUGHUGLUHFWVWKH&(4WRLVVXHJXLGHOLQHVWR)HGHUDODJHQFLHV IRULPSOHPHQWLQJSURFHGXUDO SURYLVLRQV RI 1(3$



  7KH JXLGHOLQHV UHFRPPHQG HDUO\ (,6 SUHSDUDWLRQ DQG LPSDFW VWDWHPHQWV WKDW DUH FRQFLVH FOHDU DQG VXSSRUWHG E\ HYLGHQFH WKDW DJHQFLHV KDYH PDGH WKH QHFHVVDU\DQDO\VHV7KHVHJXLGHOLQHV
(5&)50DUFK

ZHUHIROORZHGLQ
WKHSUHSDUDWLRQRIWKLV)LQDO(,6(,5
 1DWLRQDO+LVWRULF3UHVHUYDWLRQ$FWRI
DVDPHQGHG
86&


6HFWLRQRIWKH1DWLRQDO+LVWRULF3UHVHUYDWLRQ$FW
1+3$
HVWDEOLVKHGWKH1DWLRQDO5HJLVWHU
RI+LVWRULF 3ODFHV
15+3
ZKLFKLV DPDVWHUOLVW RI KLVWRULF SURSHUWLHV RI QDWLRQDO 6WDWH DQG /RFDO VLJQLILFDQFH  8QGHU 6HFWLRQ  DJHQFLHV DUH UHTXLUHG WR FRQVLGHU WKH HIIHFWV RI WKHLU DFWLRQVRQSURSHUWLHVWKDWPD\EHHOLJLEOHIRURUDUHOLVWHGLQWKH15+37KH15+3HVWDEOLVKHG WKH $GYLVRU\ &RXQFLO RQ +LVWRULF 3UHVHUYDWLRQ
$&+3
 WR FRPPHQW RQ )HGHUDOO\ OLFHQVHG
IXQGHG RU H[HFXWHG XQGHUWDNLQJV DIIHFWLQJ 1DWLRQDO 5HJLVWHU SURSHUWLHV  5HJXODWLRQV RI WKH $&+3
 &)5  


 SURYLGH JXLGDQFH IRU )HGHUDO DJHQFLHV WR PHHW 6HFWLRQ  UHTXLUHPHQWV  7KLV SURFHVV LQYROYHV FRQVXOWDWLRQ ZLWK WKH 6WDWH +LVWRULF 3UHVHUYDWLRQ 2IILFHU

6+32
 WKH $&+3 DQG RWKHU LQWHUHVWHG SDUWLHV LQFOXGLQJ 1DWLYH $PHULFDQ 7ULEHV DV ZDUUDQWHG
 &OHDQ$LU$FWRI

7KH&OHDQ$LU$FW
&$$
UHJXODWHVHPLVVLRQVRIDLUSROOXWDQWVWRSURWHFWWKHQDWLRQ¶VDLUTXDOLW\ 7KH &$$LV DSSOLFDEOHWR SHUPLWV DQG SODQQLQJ SURFHGXUHV UHODWHGWRWKH GLVSRVDO RI GUHGJHG PDWHULDOVRQVKRUHDQGLQRSHQZDWHUVZLWKLQPL
NP
RIWKHQHDUHVWVKRUHOLQH6HFWLRQ
RIWKH&$$
86&
UHTXLUHVDOO)HGHUDODJHQFLHVHQJDJHGLQDFWLYLWLHVWKDWPD\UHVXOWLQ 41 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

WKH GLVFKDUJH RI DLU SROOXWDQWVWR FRPSO\ZLWK )HGHUDO DQG 6WDWHODZV DQGLQWHUVWDWH DQGORFDO UHTXLUHPHQWV UHJDUGLQJ FRQWURO DQG DEDWHPHQW RI DLU SROOXWLRQ  6HFWLRQ  F
 UHTXLUHV DOO
)HGHUDO SURMHFWV WR FRQIRUP WR 86 (QYLURQPHQWDO 3URWHFWLRQ $JHQF\ 86(3$
 DSSURYHG RU
SURPXOJDWHG 6WDWH ,PSOHPHQWDWLRQ 3ODQV
6,3V
 7KLV DFW ZDV FRQVLGHUHGLQWKH HYDOXDWLRQ RI
HQYLURQPHQWDO FRQVHTXHQFHV RIWKH SURSRVHG 3URMHFW DQG DOWHUQDWLYHV ,Q DGGLWLRQWKH 3URMHFW KDV EHHQ FRRUGLQDWHG ZLWK WKH 2II5RDG ,QYHQWRU\ DQG $VVHVVPHQWV 6HFWLRQ RI WKH $5% UHJDUGLQJ WKH PHWKRG RI GHWHUPLQLQJ HIIHFWV RI WKH GDLO\ UDLO DFWLYLW\  $ &$$ &RQIRUPLW\ $QDO\VLVZDVSUHSDUHGIRUWKLV3URMHFW
 ([HFXWLYH2UGHU
7KLV RUGHU UHTXLUHV )HGHUDO FRPSOLDQFH ZLWK DSSOLFDEOH SROOXWLRQ FRQWURO VWDQGDUGV FRQFHUQLQJ DLUDQGZDWHUSROOXWLRQDQGKD]DUGRXVPDWHULDOVDQGVXEVWDQFHV)HGHUDODJHQFLHVDUHGLUHFWHGWR FRQVXOWZLWK6WDWHDQG/RFDODJHQFLHVFRQFHUQLQJWKHEHVWWHFKQLTXHVDQGPHWKRGVDYDLODEOHIRU WKHSUHYHQWLRQFRQWURODQGDEDWHPHQWRIHQYLURQPHQWDOSROOXWLRQ7KLVRUGHUZDVFRQVLGHUHGLQ WKHGHYHORSPHQWRIWKHSURSRVHG3URMHFWDQGDOWHUQDWLYHV  ([HFXWLYH2UGHU

7KLV H[HFXWLYH RUGHU UHTXLUHVWKDWWKHMRLQW (,6(,5 DQDO\]HWKHLPSDFWV RI IHGHUDO DFWLRQV RQ PLQRULW\DQGORZLQFRPHSRSXODWLRQVDQGSURYLGHVRSSRUWXQLWLHVIRULQSXWRQWKHMRLQW(,6(,5 E\DIIHFWHGFRPPXQLWLHV7KHDOWHUQDWLYHVGHYHORSHGIRUWKH)LQDO(,6(,5ZHUHEDVHGRQDVHW RIFULWHULDWKDWGLGQRWGLVFULPLQDWHRQWKHEDVLVRIUDFHFRORURUQDWLRQDORULJLQ7KHSURSRVHG 3URMHFWZRXOGQRWKDYHDQLPSDFWRQPLQRULW\FRPPXQLWLHVRUORZLQFRPHSRSXODWLRQV  ([HFXWLYH2UGHU
7KLV RUGHU DGGUHVVHV ³(QYLURQPHQWDO +HDOWK DQG 6DIHW\ 5LVNV WR &KLOGUHQ´  7KLV RUGHU LV GHVLJQHGWRIRFXV)HGHUDODWWHQWLRQRQDFWLRQVWKDWDIIHFWKXPDQKHDOWKDQGVDIHW\FRQGLWLRQVWKDW PD\ GLVSURSRUWLRQDWHO\ DIIHFW FKLOGUHQ  7KH SURSRVHG 3URMHFW ZRXOG QRW GLVSURSRUWLRQDWHO\ LPSDFWFKLOGUHQLQWKHUHJLRQRILQIOXHQFH
 )HGHUDO:DWHU3URMHFW5HFUHDWLRQ$FW
3XEOLF/DZ

-XO\


7KLV DFW UHTXLUHV WKDW DQ\ )HGHUDO ZDWHU SURMHFW PXVW JLYH IXOO FRQVLGHUDWLRQ WR RSSRUWXQLWLHV DIIRUGHGE\WKHSURMHFWIRURXWGRRUUHFUHDWLRQDQGILVKDQGZLOGOLIHHQKDQFHPHQW7KHSURSRVHG 3URMHFWZRXOGSURYLGHRSSRUWXQLW\IRUUHFUHDWLRQDODFWLYLWLHVE\GHYHORSPHQWRIEHDFKLQFOXGLQJ UHFUHDWLRQDOXVHDUHDVZKLFKZRXOGEHSULPDULO\SDVVLYHLQQDWXUH  6WDWH(QYLURQPHQWDO5HJXODWLRQV
 &DOLIRUQLD(QYLURQPHQWDO4XDOLW\$FW
3XEOLF5HVRXUFHV&RGH6HFWLRQV


&(4$UHTXLUHVWKDW6WDWHDQG/RFDODJHQFLHVFRQVLGHUHQYLURQPHQWDOFRQVHTXHQFHVDQGSURMHFW DOWHUQDWLYHV EHIRUH D GHFLVLRQ LV PDGH WR LPSOHPHQW D SURMHFW UHTXLULQJ 6WDWH RU /RFDO 42 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

JRYHUQPHQWDSSURYDOILQDQFLQJRUSDUWLFLSDWLRQE\WKH6WDWHRI&DOLIRUQLD,QDGGLWLRQ&(4$ UHTXLUHV WKH LGHQWLILFDWLRQ RI ZD\V WR DYRLG RU UHGXFH HQYLURQPHQWDO GHJUDGDWLRQ RU SUHYHQW HQYLURQPHQWDO GDPDJH E\ UHTXLULQJ LPSOHPHQWDWLRQ RI IHDVLEOH DOWHUQDWLYHV RU PLWLJDWLRQ PHDVXUHV7KLVMRLQW(,6(,5ZDVSUHSDUHGLQDFFRUGDQFHZLWKWKLVUHJXODWLRQ  &DOLIRUQLD&RDVWDO$FWRI
DVDPHQGHG
7KH DFW VSHFLILHV EDVLF JRDOV IRU FRDVWDO FRQVHUYDWLRQ DQG GHYHORSPHQW UHODWHG WR SURWHFWLRQ HQKDQFHPHQW DQG UHVWRUDWLRQ RI FRDVWDO UHVRXUFHV JLYLQJ SULRULW\ WR ³FRDVWDOGHSHQGHQW´ XVHV DQGPD[LPL]LQJSXEOLFDFFHVVWR&DOLIRUQLDUHVLGHQWVDQGYLVLWRUV7KHDFWGHILQHVWKH³FRDVWDO ]RQH´ RI &DOLIRUQLD ZKLFK JHQHUDOO\ H[WHQGV  PL  NP
 RXW WR VHD DQG LQODQG JHQHUDOO\
\DUGV
>\G@
P
,WPD\EHH[WHQGHGIXUWKHULQODQGLQFHUWDLQFLUFXPVWDQFHV,WDOVRLV OHVVWKDQ\G

P
ZLGHLQVRPHXUEDQDUHDV(DFKFLW\DQGFRXQW\LQ&DOLIRUQLDRQWKH FRDVWPXVW SUHSDUH D/RFDO&RDVWDO 3URJUDP
/&3
 IRU DOO DUHDVZLWKLQWKH FRDVWDO ]RQH7KH
/&3 LQFOXGHV /DQG 8VH 3ODQV
/83V
 ]RQLQJ RUGLQDQFH DPHQGPHQWV DQG PDS FKDQJHV WR UHIOHFWWKH&RDVWDO$FWDQG/&3JRDOVDQGSROLFLHVDWWKHORFDOOHYHO7KLVDFWZDVFRQVLGHUHGLQ WKHSUHSDUDWLRQRIWKLVMRLQW(,6(,5
 3RUWHU&RORJQH:DWHU4XDOLW\&RQWURO$FWRI

&DOLIRUQLD:DWHU&RGH††




7KLVDFWPDQGDWHVWKDWDFWLYLWLHVWKDWPD\DIIHFWZDWHUVRIWKH6WDWHVKDOOEH UHJXODWHGWRDWWDLQ WKHKLJKHVWTXDOLW\7KH5:4&%SURYLGHV UHJXODWLRQV IRUD³QRQGHJUDGDWLRQSROLF\´WKDWDUH HVSHFLDOO\SURWHFWLYHRIZDWHUVZLWKKLJKTXDOLW\7KLVDFWZDVFRQVLGHUHGLQWKHHYDOXDWLRQRI FRQVHTXHQFHVRIWKHSURSRVHG3URMHFWDQGDOWHUQDWLYHV  &DOLIRUQLD6WDWH/DQGV&RPPLVVLRQ
7KH &DOLIRUQLD 6WDWH /DQGV &RPPLVVLRQ
&6/&
 KDV UHJXODWRU\ DXWKRULW\ WR DGPLQLVWHU VHOO
OHDVHRUGLVSRVHRIWKHSXEOLFODQGVRZQHGE\WKH6WDWHRUXQGHULWVFRQWUROLQFOXGLQJQRWRQO\ VFKRRO ODQGV EXW WLGHODQGV VXEPHUJHG ODQGV VZDPS DQG RYHUIORZHG ODQGV DQG EHGV RI QDYLJDEOHULYHUVDQGODNHV
&DOLIRUQLD3XEOLF5HVRXUFHV&RGH>35&@6HFWLRQ
7KH&6/&
FUHDWHG WKH &DOLIRUQLD &RDVWDO 6DQFWXDU\ ZKLFK LQFOXGHV DOO 6WDWH ZDWHUV VXEMHFW WR WLGDO LQIOXHQFHVXFKDVWKHVWXG\DUHD&DOLIRUQLD35&6HFWLRQUHTXLUHVWKDWD/HDVH$JUHHPHQW IRU 8WLOL]DWLRQ RI 6RYHUHLJQ /DQGV EH LVVXHG SULRU WR LQLWLDWLRQ RI DQ\ SURMHFW WKDW RFFXUV RQ 6WDWHRZQHGODQGV
 &DOLIRUQLD(QGDQJHUHG6SHFLHV$FW
&DOLIRUQLD)LVKDQG*DPH&RGH6HFWLRQV


7KH &DOLIRUQLD (QGDQJHUHG 6SHFLHV $FW
&(6$
 SDUDOOHOV WKH )HGHUDO (6$  $V D UHVSRQVLEOH
DJHQF\WKH&')*KDVUHJXODWRU\DXWKRULW\RYHU6WDWHOLVWHGHQGDQJHUHGDQGWKUHDWHQHGVSHFLHV ,IDSURSRVHG3URMHFWPD\DIIHFWVSHFLHVWKDWDUHOLVWHGDVWKUHDWHQHGRUHQGDQJHUHGXQGHUERWK WKH6WDWHDQG)HGHUDO(QGDQJHUHG6SHFLHV$FWVWKHQVXFK3URMHFWLVVXEMHFWWR&(4$DQG1(3$ UHYLHZ DQG WKH &')* VKDOO SDUWLFLSDWH WR WKH JUHDWHVW H[WHQW SUDFWLFDEOH LQ WKH )HGHUDO HQGDQJHUHGVSHFLHVFRQVXOWDWLRQ7KH6WDWHOHJLVODWXUHHQFRXUDJHVFRRSHUDWLYHDQGVLPXOWDQHRXV 43 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

ILQGLQJV EHWZHHQ6WDWHDQG)HGHUDODJHQFLHV)XUWKHUWKH*HQHUDO&RXQVHO IRUWKH&')* KDV LVVXHG D PHPRUDQGXP WR &')* UHJLRQDO PDQDJHUV DQG GLYLVLRQ FKLHIV FODULI\LQJ WKH &(6$ FRQVXOWDWLRQSURFHVVZKHUHLQLID)HGHUDO%2KDVEHHQSUHSDUHGIRUDVSHFLHVWKH&')*PXVW XVHWKLV%2LQOLHXRILWVRZQILQGLQJVXQOHVVLWLVLQFRQVLVWHQWZLWK&(6$&')*&RGH6HFWLRQ 
DXWKRUL]HVSDUWLFLSDWLRQLQ)HGHUDOFRQVXOWDWLRQDQGDGRSWLRQRID)HGHUDO%2%\DGRSWLQJ WKH)HGHUDO%2WKH&')*QHHGQRWLVVXHDWDNLQJSHUPLWSHU6HFWLRQRIWKH6WDWH&RGH,I WKH%2LVFRQVLVWHQWZLWK&(6$WKH&')*ZLOOFRPSOHWHD IRUPLQILQDOL]LQJWKHDGRSWLRQ
RIWKH%2 ,IWKH)HGHUDO%2LV IRXQGWREHLQFRQVLVWHQWZLWK&(6$WKH&')*ZLOOLVVXHLWV RZQ%2SHU6HFWLRQ
RIWKH6WDWH&RGHDQGPD\LVVXHDWDNHSHUPLWZLWKFRQGLWLRQVRI DSSURYDO7KHSURSRVHG3URMHFWZRXOGFRPSO\ZLWKWKLVDFW  /RFDO(QYLURQPHQWDO5HJXODWLRQV
7KH&LW\RI6DQ&OHPHQWHLVUHVSRQVLEOHIRUFRPSOLDQFHZLWKDQGH[HFXWLQJORFDODFWLRQVZLWKD QXPEHURIUHJLRQDOHQYLURQPHQWDOUHJXODWLRQV
 6RXWK&RDVW$LU4XDOLW\0DQDJHPHQW3ODQ
$403

6RXWK&RDVW$LU4XDOLW\
0DQDJHPHQW'LVWULFW
6&$40'
DQG6RXWKHUQ&DOLIRUQLD$VVRFLDWLRQRI
*RYHUQPHQWV
6&$*

7KH6&$40'LVLQWHQGHGWRSURYLGHFRPSOLDQFHZLWKWKH)HGHUDO&OHDQ$LU$FW(VVHQWLDOO\LW LQFRUSRUDWHVPHFKDQLVPVWRUHGXFHVRXUFHDQGPRELOHSROOXWDQWV7RIDFLOLWDWHFRPSOLDQFHZLWK WKH 6&$40' UHTXLUHPHQWV 6DQ &OHPHQWH LV SDUWLFLSDWLQJ DV D PHPEHU RI D FRXQW\ZLGH $LU 4XDOLW\7HFKQLFDO$GYLVRU\&RPPLWWHHZKLFKLVUHVSRQVLEOHIRUWKHLGHQWLILFDWLRQRIDSSOLFDEOH ORFDOLPSOHPHQWDWLRQPHFKDQLVPVDQGPRGHORUGLQDQFHV 44 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 $/7(51$7,9(6
7KLV VHFWLRQ SUHVHQWV WKH SURFHVV XVHG WR IRUPXODWH DOWHUQDWLYH SODQV DQG HYDOXDWLRQ FULWHULD OHDGLQJ WR WKH UHFRPPHQGDWLRQ RI WKH 3URSRVHG $FWLRQ IRU LPSOHPHQWDWLRQ  8QGHU 1(3$ UHDVRQDEOH DOWHUQDWLYHV DUH WKRVH WKDW DUH SUDFWLFDO RU IHDVLEOH IURP D WHFKQLFDO RU HFRQRPLF SHUVSHFWLYH DQG EDVHG RQ FRPPRQ VHQVH
 )HGHUDO5HJLVWHU  DV DPHQGHG  )HGHUDO 5HJLVWHU
8QGHU&(4$UHDVRQDEOHDOWHUQDWLYHVDUHWKRVHWKDWZRXOGIHDVLEO\DWWDLQPRVW RIWKHSURMHFWREMHFWLYHVEXWZRXOGDYRLGRUVXEVWDQWLDOO\OHVVHQDQ\RIWKHVLJQLILFDQWHIIHFWVRI WKH SURMHFW
&DOLIRUQLD &RGH 5HJXODWLRQV 7LWOH  † 
D

  )DFWRUV XVHG WR GHWHUPLQH
IHDVLELOLW\ LQFOXGH VLWH VXLWDELOLW\ HFRQRPLF OLPLWDWLRQV FRQVLVWHQF\ ZLWK ORFDO SODQV DQG SROLFLHVRWKHUSODQRUUHJXODWRU\OLPLWDWLRQVDQGMXULVGLFWLRQDOERXQGDULHV  3ODQ)RUPXODWLRQRI$OWHUQDWLYHV
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
$OWHUQDWLYHVZHUHIRUPXODWHGWRPD[LPL]HVWRUPGDPDJHUHGXFWLRQDQGPLQLPL]HFRVWDQGZHUH UHFRPPHQGHGZKHQWKHLUEHQHILWVH[FHHGHGWKHLUFRVWV,PSURYHPHQWVWRVDIHW\DQGUHFUHDWLRQDO RSSRUWXQLWLHVUHVXOWLQJIURPDQ\DOWHUQDWLYHZHUHFRQVLGHUHGLQFLGHQWDOWRWKHPDLQREMHFWLYHRI UHGXFLQJVWRUPGDPDJHV$OODOWHUQDWLYHVZHUHDQDO\]HGXQGHUERWKWKH1(3$DQGWKH&(4$ UHYLHZSURFHVVHV
 (YDOXDWLRQ&ULWHULD
,QJHQHUDOWKHSODQQLQJSURFHVVQHHGVWRFRQVLGHUPHDVXUHVWRDYRLGRUPLWLJDWHDQ\VLJQLILFDQW DGYHUVHLPSDFWVDVVRFLDWHGZLWKWKHSODQQLQJFRQVWUDLQWV7KHSODQQLQJFRQVWUDLQWVIRUWKLVVWXG\ DUHWKHIROORZLQJ

 D 3UHVHUYHWKHQHDUVKRUHHFRV\VWHPWKDWVXSSRUWVFRPPHUFLDOOREVWHUDQGILVKLQJLQGXVWULHV DQGVQRUNHOLQJDFWLYLWLHV

 E 3UHVHUYHWKHRSSRUWXQLWLHVIRUVXUILQJDORQJWKH3DFLILFFRDVWRIWKH&LW\RI6DQ&OHPHQWH 
 F 3UHVHUYH DQ\ FULWLFDO KDELWDW WKDW VXSSRUWV )HGHUDO RU 6WDWH WKUHDWHQHG DQG HQGDQJHUHG

VSHFLHV

 G 3UHVHUYHZDWHUTXDOLW\FKDUDFWHULVWLFVDORQJWKHFRDVWDQGQHDUVKRUHDUHDVRIWKH&LW\RI 6DQ&OHPHQWH

45 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 H 3UHVHUYHFXOWXUDODQGKLVWRULFIHDWXUHVORFDWHGLQWKHVWXG\DUHD 
 I 3UHVHUYHDLUTXDOLW\FRQGLWLRQVZLWKLQWKHVWXG\DUHD $ ZLGH YDULHW\ RI PHDVXUHV ZHUH FRQVLGHUHG DQG DVVHVVHG VRPH RI ZKLFK ZHUH IRXQG WR EH LQIHDVLEOH GXH WR WHFKQLFDO HFRQRPLF RU HQYLURQPHQWDO FRQVWUDLQWV  0HDVXUHV WKDW ZHUH FRQVLGHUHG IHDVLEOH GXULQJ WKH SODQ IRUPXODWLRQ SURFHVV ZHUH VFUHHQHG DQG GHYHORSHG LQWR SURMHFWDOWHUQDWLYHVIRUIXOODQDO\VLV
 6FUHHQLQJOHYHO&RPSDULVRQ
$OWHUQDWLYHV WR DGGUHVV WKH UHGXFWLRQ RI SRWHQWLDO VWRUP GDPDJHV ZHUH GHYHORSHG FRQVLGHULQJ GLIIHUHQWVFRSHVRISODQVE\YDU\LQJOHYHOVRISURWHFWLRQVXFKDVSURWHFWLQJRQO\DJDLQVWIUHTXHQW PLQRU VWRUP HYHQWV DV FRPSDUHG WR SURWHFWLQJ DJDLQVW WKH OHVV IUHTXHQW PDMRU VWRUP HYHQWV 3UHYLRXV FRQVLGHUDWLRQ ZDV JLYHQ WR SURWHFWLQJ VHYHUDO UHDFKHV RU WKH HQWLUH VWXG\ DUHD LH
HQWLUH 6DQ &OHPHQWH FRDVWOLQH
 DV FRPSDUHG WR FHUWDLQ UHDFKHV RI WKH VWXG\ DUHD  )RU WKH SODQQLQJREMHFWLYHLQYROYLQJUHVWRUDWLRQRIEHDFKDUHDIRUUHFUHDWLRQXVHFRQVLGHUDWLRQDOVRZDV JLYHQWRGLIIHUHQWOHYHOVRI UHVWRUDWLRQLQYROYLQJYHU\ZLGHEHDFKHVWKDWPD\EHQHHGHGRQWKH KLJKHVWSHDNXVHGD\VRQO\FRPSDUHGWRQDUURZHUEHDFKHVWKDWPD\EHXVHGPRUHIUHTXHQWO\RQ DYHUDJHSHDNXVHGD\V$OWHUQDWLYHVIRUWKLVREMHFWLYHDOVRZHUHORRNHGDWE\VWXG\UHDFKZKHUH VRPH UHDFKHV PD\ KDYH PLQLPDO XVH IRU UHFUHDWLRQ  6FUHHQLQJ RI WKHVH DOWHUQDWLYHV ZDV FRQVLGHUHGEDVHGRQWKHHYDOXDWLRQFULWHULDVWDWHGDERYHLQFOXGLQJHFRQRPLFFRVWVDQGEHQHILWV HQYLURQPHQWDOLPSDFWVDQGVLJQLILFDQWLPSDFWVWRWKHSODQQLQJFRQVWUDLQWV0LWLJDWLRQPHDVXUHV WRDYRLGRUPLQLPL]HWKHVHLPSDFWVZHUHLQFRUSRUDWHGLQWRWKHDOWHUQDWLYHSODQVDVQHFHVVDU\ 7KH GHVFULSWLRQV DQG UHVXOWV RI WKH HYDOXDWLRQV RI WKH PHDVXUHV FRQVLGHUHG LQ WKLV VWXG\ DUH SUHVHQWHG EHORZ  7KH GHWDLOHG DFFRXQWV RI WKH FRPSDULVRQV EHWZHHQ SURMHFW DOWHUQDWLYHV DUH LQFOXGHGLQWKH6DQ&OHPHQWH6KRUHOLQH)LQDO)HDVLELOLW\5HSRUW  1RQVWUXFWXUDO0HDVXUHV&RQVLGHUHG
$Q\WKLQJWKDWDFKLHYHVWKH3URMHFWREMHFWLYHVZLWKRXWDVWUXFWXUHLVFRQVLGHUHGDQRQVWUXFWXUDO DOWHUQDWLYH
0DQDJHG5HWUHDW
0DQDJHGUHWUHDWLVDWHUPFRPPRQO\XVHGWRGHVFULEHDSROLF\WKDWUHVWULFWVRURSSRVHVHIIRUWVWR FRQWURO ORQJWHUP UHWUHDW RI WKH VKRUHOLQH  ,W KDV EHHQ XVHG WR GHVFULEH SROLFLHV UDQJLQJ IURP FRPSOHWHUHPRYDORIDOOVKRUHSURWHFWLRQVWUXFWXUHVWRVLPSO\QRWDOORZLQJQHZVWUXFWXUHVWREH EXLOW
)RUWKLV 3URMHFW DUHD PDQDJHG UHWUHDW RI FRDVWDO GHYHORSPHQW ZRXOGLQFOXGH UHORFDWLRQ RIWKH UDLOURDGDQGEHDFK IDFLOLWLHVGXHWRWKHFRQWLQXHGHURVLRQRIWKH UHFUHDWLRQEHDFKDUHD$WWKLV WLPH PRVW RI WKH SXEOLF EHDFK IDFLOLWLHV DUH ORFDWHG DORQJ WKH EDFNVKRUH LQ WKH 3URMHFW DUHD &RQWLQXHG HURVLRQ DQG VWRUP ZDYH DWWDFN ZRXOGOLNHO\ HOLPLQDWH DQ\ EHDFK DUHD DYDLODEOH IRU UHFUHDWLRQ XVH DQG PD\ HOLPLQDWH WKH QHHG IRU IDFLOLWLHV RU UHORFDWH VRPH IDFLOLWLHV HJ

UHVWURRPV
 WR WKH ODQGZDUG VLGH RI WKH UDLOURDG  7KH UHORFDWLRQ RI WKH UDLOURDG ZRXOG EH 46 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

H[WUHPHO\ FRVWO\ DQG DQ\ GHFLVLRQ IRU VXFK UHORFDWLRQ LV EH\RQG WKH VFRSH DQG LQWHQW RI WKLV VWXG\0DQDJHGUHWUHDWLVQRWFRQVLGHUHGDYLDEOHQRQVWUXFWXUDOPHDVXUH  6WUXFWXUDO0HDVXUHV&RQVLGHUHG
6WUXFWXUDO PHDVXUHV FRQVLGHUHG LQFOXGH UHYHWPHQWV VKHHW SLOH VHDZDOOV EUHDNZDWHUV RIIVKRUH UHHIVDQGJURLQV
%HDFK)LOO
)RUWKHSXUSRVHRIWKLVGRFXPHQWEHDFKILOORUQRXULVKPHQWZDVWKHRQO\VRIWVWUXFWXUHPHDVXUH FRQVLGHUHGYLDEOHIRUWKLVDUHD%HDFKQRXULVKPHQWLQYROYHVSODFHPHQWRIFRPSDWLEOHVDQGIURP DERUURZDUHDWRHIIHFWLYHO\ZLGHQWKHEHDFK7KHEHDFKILOOPDWHULDODFWVDVDEXIIHUGLVVLSDWLQJ VWRUPZDYHVDQGUXQXSRYHUWKHZLGHUSURILOH
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
%HDFK QRXULVKPHQW PD\ XVH RIIVKRUH RU RQVKRUH ERUURZ VLWHV  ,Q WKH VWXG\ DUHD RIIVKRUH VRXUFHV KDYH KLVWRULFDOO\ EHHQ XVHG IRU VHYHUDO UHDVRQV  3ULRU RIIVKRUH VWXGLHV RI WKH DUHD FRQGXFWHG E\ WKH 86$&( KDYH LGHQWLILHG SRWHQWLDO VRXUFHV RI VDQG VXLWDEOH IRU DQ RIIVKRUH ERUURZVLWH7KHSRWHQWLDORIIVKRUHERUURZVLWHVLQWKHVWXG\DUHDZHUHLQYHVWLJDWHGIRUEHDFK FRPSDWLEOHVDQGORFDWHGE\SUHYLRXVLQYHVWLJDWLRQVRII2FHDQVLGHE\WKH6DQ'LHJR$VVRFLDWLRQ RI*RYHUQPHQWV
6$1'$*
DQG86$&(




)RUWKLV 3URMHFW RIIVKRUH GUHGJLQJZRXOG EH UHTXLUHG IRUWKH EHDFK ILOO DOWHUQDWLYH$YDLODEOH RIIVKRUH ERUURZ VLWHV H[LVW DQG VDQG ZRXOG EH GHOLYHUHG WR WKH EHDFK ILOO VLWHV XVLQJ KRSSHU GUHGJHV ZLWK SXPSRXW RU ODUJH FXWWHU VXFWLRQ GUHGJHV  )RU WKH KRSSHU GUHGJH ZLWK SXPSRXW WHPSRUDU\QHDUVKRUHSLSHOLQHDQGPRQREXR\VZRXOGEHSRVLWLRQHGDWDERXWWKHIW

P
GHSWK
FRQWRXUWRSHUPLWWKHGUHGJHWRSXPSHDFKORDGGLUHFWO\DVKRUH 5HYHWPHQWVDQG6HDZDOOV
5HYHWPHQWVDUH³IOH[LEOH´VWUXFWXUHV
LHQRWORFNHGLQFRQFUHWH
PDGHRISODFHGTXDUU\VWRQH
7KH\ DUHW\SLFDOO\ EXLOW RI WR WRQ VWRQH RYHU DOD\HU RI VPDOOHU VWRQH RYHU DOD\HU RI ILOO GHVLJQHGWRVWRSVKRUHOLQHUHWUHDWDQGWRSURWHFWODQGVOLGHLPSURYHPHQWVIURPGDPDJHE\ZDYH DFWLRQ5HYHWPHQWV DUH JHQHUDOO\ HIIHFWLYHLIPDLQWDLQHG EXWWKH\ HQFURDFK VLJQLILFDQWO\ RQWR WKHEHDFK7KHVHDZDOOVWUXFWXUDOPHDVXUHW\SLFDOO\UHTXLUHVOHVVVSDWLDODUHDDQGPDLQWHQDQFH 47 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

6KHHW SLOH ZDOOV DUH VWHHO RU SUHFDVW FRQFUHWH SDQHOV YHUWLFDOO\ SODFHG LQ WKH JURXQG WR IRUP FRQWLQXRXVVHDZDOOVIRUSURWHFWLQJEDFNEHDFKLPSURYHPHQWV 2IIVKRUH5HHIVDQG%UHDNZDWHUV
2IIVKRUHUHHIVRUVXEPHUJHGEUHDNZDWHUVZRXOGSURWHFWWKHVKRUHOLQHDJDLQVWGLUHFWZDYHDWWDFN DQG UHGXFHWKHWUDQVPLWWHGZDYHHQHUJ\WROHVVGDPDJLQJOHYHOVDORQJWKHEHDFK%UHDNZDWHUV DUH FRQFUHWH RU URFN ZDOOV EXLOW URXJKO\ SDUDOOHO WR WKH VKRUHMXVW EH\RQG WKH EUHDNHU ]RQH WR DEVRUE ZDYH HQHUJ\ E\ VWRSSLQJ WUDQVPLVVLRQ RU EUHDNLQJ WKH ZDYH EHIRUH LW KLWV WKH EHDFK 7KH\FDQEHSHUPHDEOHRUVROLGGHSHQGLQJRQGHVLUHGDPRXQWRIZDYHHQHUJ\DEVRUSWLRQYHUVXV UHIOHFWLRQ
6XEPHUJHG DUWLILFLDO UHHI W\SH GHVLJQV IRU WKH SXUSRVH RI VDQG UHWHQWLRQ DQG VWRUP GDPDJH UHGXFWLRQFRPHLQPDQ\IRUPVEXWPD\EHVLPSOLILHGLQWRVRIWDQGKDUGGHVLJQV,QWKHVRIW GHVLJQV QHDUVKRUH VDQG EHUPV DUH FRQVWUXFWHG RI GUHGJHG VDQG SODFHG SDUDOOHOWRWKH EHDFKLQ VKDOORZ ZDWHU  7KH VRIW EUHDNZDWHU UHGXFHV LQFLGHQW ZDYH KHLJKW DQG JUDGXDO RQVKRUH PLJUDWLRQ RIWKH VHGLPHQWFDQFRQWULEXWHWR UHQRXULVKPHQW RIWKHDGMDFHQW VKRUHOLQH SURYLGLQJ WKHEHUPLWVHOILVVWDEOHHQRXJKWRZLWKVWDQGWKHZDYHHQYLURQPHQW ³+DUG´ VXEPHUJHG EUHDNZDWHUV ZKLFK LQFOXGH ³DUWLILFLDO UHHIV´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¶V5HHIZDVFRQVWUXFWHG RIIRI(O6HJXQGR&DOLIRUQLDRXWRIODUJHJHRWXEHVDQGEDJVDVDQH[SHULPHQWDOVXUILQJUHHIWR PLWLJDWH LPSDFWV IURP FRQVWUXFWLRQ RI D JURLQ EXW ZDV XOWLPDWHO\ WRR VPDOO  WKLUWHHQWRQ
EDJVZLWKLQDQDUHDRIDSSUR[LPDWHO\IWE\
IW
DQGWRRIDURIIVKRUHWRKDYHDQ\QRWLFHDEOH
LPSDFW RQWKH VKRUHOLQH
0 1 6$1'$* 
  $Q DUWLILFLDO UHHI ZLWKWKH SXUSRVH RI VDQG UHWHQWLRQZRXOGUHTXLUHWREHFRQVWUXFWHGRQDPXFKODUJHUVFDOHWREHHIIHFWLYHDORQJWKHHQWLUH 3URMHFWOHQJWK
6KRUH3HUSHQGLFXODU6WUXFWXUHV
&URVVVKRUHVDQGUHWHQWLRQVWUXFWXUHVVXFKDVJURLQVDQGMHWWLHVDUHFRQVWUXFWHGSHUSHQGLFXODUWR WKHVKRUHWRIRUPILOOHWVWKDWFDQVORZEHDFKHURVLRQE\WUDSSLQJOLWWRUDOVHGLPHQW0RVWRIWKH OLWWRUDOGULIWRFFXUVLQVKRUHRIWKHQRUPDOEUHDNHUOLQHXQGHUSUHYDLOLQJZDYHFRQGLWLRQV DERXW
WKH  WR IW
 WR P
 GHSWK FRQWRXUV RQ WKH 3DFLILF FRDVW
  +HQFH H[WHQVLRQ RI VDQG
UHWHQWLRQVWUXFWXUHVEH\RQGDERXW0//:LVJHQHUDOO\XQHFRQRPLFDO 86$&(


7KHVKRUHSHUSHQGLFXODUVWUXFWXUHVDUHJHQHUDOO\XWLOL]HGWRSUHVHUYHDPLQLPXPEHUPZLGWKDQG VORZ HURVLRQ UDWHV VR WKDW UHQRXULVKPHQW YROXPHV PD\ EH VPDOOHU DQG HSLVRGHV OHVV IUHTXHQW 7KHDPRXQWRIVDQGWUDSSHGE\WKHVWUXFWXUHGHSHQGVRQWKHSHUPHDELOLW\KHLJKWDQGOHQJWKRI 48 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

WKH VWUXFWXUH DQG WKH DPRXQW RI VDQG LQ WKH OLWWRUDO V\VWHP  $V PDWHULDO DFFXPXODWHV RQ WKH XSGULIWVLGHRIWKHVWUXFWXUHVXSSO\WRWKHGRZQGULIWVLGHLVUHGXFHG7KLVUHVXOWVLQORFDOEHDFK DFFUHWLRQRQWKHXSGULIWVLGHRIWKHVWUXFWXUHDQGHURVLRQIRUVRPHGLVWDQFHGRZQVKRUH$IWHUWKH EHDFK QHDU WKH VWUXFWXUH DGMXVWV WR DQ ³HTXLOLEULXP´ VWDJH LQ DFFRUGDQFH ZLWK WKH ZDYH FRQGLWLRQVDOOOLWWRUDO GULIWHLWKHUZLOO SDVVWKHVWUXFWXUH GLUHFWO\ RYHULW RU GLYHUWHGDURXQGWKH VHDZDUG HQG RI WKH VWUXFWXUH  %HFDXVH RI WKH SRWHQWLDO DGYHUVH HIIHFWV RQ GRZQGULIW EHDFKHV JURLQV DQG VLPLODU VWUXFWXUHV VKRXOG EH XVHG RQO\ DIWHU FDUHIXO FRQVLGHUDWLRQ RI WKH IDFWRUV LQYROYHG
 &RPSDULVRQRI0DQDJHPHQW0HDVXUHVWR(YDOXDWLRQ&ULWHULD 8OWLPDWHO\ WKH DOWHUQDWLYH SODQV LGHQWLILHG LQ WKLV VWXG\ VKRXOG IROORZ WKH JHQHUDO JXLGHOLQHV OLVWHGEHORZ7KHUHIRUHWKHPDQDJHPHQWPHDVXUHVWKDWEHFRPHWKHDOWHUQDWLYHSODQVDOVRPXVW IROORZWKHIROORZLQJJXLGHOLQHV
7HFKQLFDO)HDVLELOLW\ 7KH UHFRPPHQGHG SODQ SUHVHQWHG VKRXOG EHFRPSOHWHDQG VRXQG DQGLQVXIILFLHQWGHWDLOWRDOORZGHYHORSPHQWRIHQJLQHHULQJSODQVDQGVSHFLILFDWLRQV (FRQRPLF )HDVLELOLW\  $Q\ SRWHQWLDO SURMHFWWKDWLVLQWKH )HGHUDOLQWHUHVW PXVW GLVSOD\ IHDVLELOLW\ E\ VDWLVI\LQJ EHQHILWFRVW
%&
 FULWHULD  *HQHUDOO\ WKLV UDWLR PXVW EH JUHDWHU WKDQ RQH WR DOORZ )HGHUDO SDUWLFLSDWLRQ LQ FRQWLQXHG VWXG\ DQG DQ\ SURMHFW SURSRVDO  ,Q DGGLWLRQ WKH VSRQVRULQJ DJHQF\ LV UHTXLUHG WR VKRZ WKHLU DELOLW\ DQG ZLOOLQJQHVV WR IXQG WKHLUVKDUHRIDQ\UHFRPPHQGHGSURMHFWDVUHTXLUHGE\WKH3ULQFLSOHVDQG*XLGHOLQHV (QYLURQPHQWDO ,PSDFWV  $SSOLFDEOH HQYLURQPHQWDO UHTXLUHPHQWV PXVW EH PHW IRU D IHDVLELOLW\ OHYHO VWXG\  (QYLURQPHQWDO DFFHSWDELOLW\ PXVW EH DVFHUWDLQHG  DQG DGYHUVH
LPSDFWV VKRXOG EH DYRLGHG LI SRVVLEOH RU PLQLPL]HG LI DYRLGDQFH LV QRW SRVVLEOH  7KH VFUHHQLQJ RI DOWHUQDWLYHV EDVHG RQ HQYLURQPHQWDO DFFHSWDELOLW\ OLPLWDWLRQV DUH FRQGXFWHG ZLWKUHVSHFWWR)HGHUDOHQYLURQPHQWDOVWDWXWHV)HGHUDOH[DPSOHVLQFOXGHWKH&RDVWDO=RQH 0DQDJHPHQW $FW
&=0$
 DQG WKH )LVK DQG :LOGOLIH &RRUGLQDWLRQ $FW
):&$
 7KH
&DOLIRUQLD &RDVWDO &RPPLVVLRQ FXUUHQWO\ LQWHUSUHWV WKH &=0$ LQ D PDQQHU WKDW IDYRUV DOPRVW DQ\ W\SH RI VKRUH SURWHFWLRQ RYHU URFN UHYHWPHQWV DQGRU VHDZDOOV HVSHFLDOO\ LQ DUHDV ZKHUH WKHUH LV D ORW RI SXEOLF EHDFK XVH DQG UHFUHDWLRQ $ UHYHWPHQW RI WKH VL]H QHFHVVDU\ DW WKLV VLWH ZRXOG KDYH YHU\ OLWWOH FKDQFH RI REWDLQLQJ D &RDVWDO &RQVLVWHQF\ 'HWHUPLQDWLRQ
3XEOLF$FFHSWDELOLW\7KHDOWHUQDWLYHRSWLRQVDQGSODQVVKRXOGEHDFFHSWDEOHWRWKHORFDO UHVLGHQWVDJHQFLHVRUJDQL]DWLRQDQGWKHQRQ)HGHUDO VSRQVRU V
DVZHOODVWKHLQWHUHVWHG
6WDWH DQG )HGHUDO DJHQFLHV  7KH ORFDO VSRQVRU KDV LQGLFDWHG WKDW WKH\ DUH VHYHUHO\ FRQVWUDLQHG E\ SXEOLF RSLQLRQ DQG FDQQRW VXSSRUW DQ\ UHFRPPHQGDWLRQ WKDW PHHWV ZLWK VHYHUHSXEOLFRSSRVLWLRQ8QDFFHSWDEOHSODQVLQFOXGHDQ\YLVLEOHRIIVKRUHVWUXFWXUHDQGDQ\ VWUXFWXUHWKDWVLJQLILFDQWO\LPSHGHVEHDFKDFFHVVVXFKDVURFNUHYHWPHQWV 7DEOHFRPSDUHVWKHPDQDJHPHQWPHDVXUHVWRWKHHYDOXDWLRQFULWHULD 49 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH&RPSDULVRQRI0DQDJHPHQW0HDVXUHVWR(QYLURQPHQWDO(YDOXDWLRQ&ULWHULD 0DQDJHPHQW0HDVXUH 0HHWV3XUSRVH
DQG1HHG
7HFKQLFDOO\
)HDVLEOH
(FRQRPLFDOO\
)HDVLEOH
(QYLURQPHQWDO
O\$FFHSWDEOH
$FFHSWDEOHWR
3XEOLF
%HDFKILOO <HV <HV <HV <HV 0D\EH
0DQDJHG5HWUHDW 0D\EH <HV 1R 1R 0D\EH
5HYHWPHQW 0D\EH <HV 0D\EH 1R 1R
6HDZDOO 1R <HV <HV 1R 1R
*URLQ <HV 0D\EH 1R 1R 1R
9LVLEOH2IIVKRUH
%UHDNZDWHU 0D\EH <HV 1R 1R 1R
6XEPHUJHG5HHI 0D\EH 1R 1R 0D\EH 0D\EH
%HDFK QRXULVKPHQW LV KLJKO\ HIIHFWLYH DW SURWHFWLQJ WKH FRDVWOLQH DV ORQJ DV WKH EHDFK LV PDLQWDLQHG$ZLGHEHDFKEHUPUHVXOWLQJIURPEHDFKILOOFDQHIIHFWLYHO\SURYLGHDEXIIHUDJDLQVW VWRUP ZDYH DWWDFN DQG LPSURYH UHFUHDWLRQDO VDIHW\ DQG RSSRUWXQLWLHV VLJQLILFDQWO\  %HDFK ILOO ZRXOGDGGUHVVDOORIWKHSUREOHPVDQGFRQFHUQV
5HYHWPHQWV DQG VKHHW SLOH ZDOOV ZRXOG HIIHFWLYHO\ DGGUHVV VWRUP GDPDJH FRQFHUQV  KRZHYHU
WKH\GRQRWDGGUHVVEHDFK UHFUHDWLRQFRQFHUQV6HDZDOOVDQG UHYHWPHQWVDUHSODFHGSDUDOOHOWR WKH VKRUHOLQH DV D ODVW OLQH RI GHIHQVH WR SURWHFW DGMDFHQW ODQG DUHDV IURP GLUHFW ZDYH DWWDFN IORRGLQJDQGHURVLRQ$VVXFKWKH\RIWHQSURYLGHWKHPRVWUHOLDEOHIRUPRIVKRUHOLQHSURWHFWLRQ 
KRZHYHUWKH\ GR QRWKLQJWRLQFUHDVH EHDFKZLGWK DQG FDQLPSHGH SXEOLF DFFHVVWRWKH EHDFK 5HYHWPHQWV DUH WKH PRVW HFRQRPLF VWUXFWXUDO PHDVXUHV  5HYHWPHQWV DUH OHVV DHVWKHWLFDOO\ SOHDVLQJ WKDQ EHDFK UHSOHQLVKPHQW RU VHDZDOO  5HYHWPHQWV DUH GLIILFXOW DQG KD]DUGRXV IRU SHGHVWULDQVWRFURVVDQGWKH\VHYHUHO\LPSHGHDFFHVVWRWKHEHDFK,QDGGLWLRQWKH\WDNHXSD VLJQLILFDQW SRUWLRQ RIWKH EHDFKZLGWKDQGLPSHGHDORQJVKRUHDFFHVVFRQVWLWXWLQJD VLJQLILFDQW LPSDFWWR SXEOLF DFFHVV5HYHWPHQWV ZRXOG H[WHQG VHDZDUG XSWR  IW P
 ZKLFK ZRXOG
UHVXOW LQ QR EHDFK LQ WKH ZLQWHU DQG ZRXOG VHYHUHO\ OLPLW DYDLODEOH EHDFK VSDFH LQ WKH VXPPHUWLPH
7KH&DOLIRUQLD&RDVWDO&RPPLVVLRQFXUUHQWO\LQWHUSUHWVWKH&RDVWDO$FWLQVXFKDZD\WKDWIDYRUV DOPRVW DQ\ W\SH RI VKRUH SURWHFWLRQ RYHU URFN UHYHWPHQW HVSHFLDOO\ LQ DUHDV ZLWK KLJK SXEOLF EHDFKXVHDQGUHFUHDWLRQ7KHVL]HRIWKLV3URMHFWZRXOGEHDFRQVWUDLQW/RFDOZHOORUJDQL]HG DQG ZHOOIXQGHG FLWL]HQV JURXSV LQFOXGLQJ 6XUIULGHU )RXQGDWLRQ KDYH H[SUHVVHG VWURQJ RSSRVLWLRQ WR UHYHWPHQWV ERWK LQ SXEOLF PHHWLQJV DQG LQ OLWLJDWLRQ  $Q\ SURSRVHG SURMHFW LQFOXGLQJUHYHWPHQWZRXOGHQFRXQWHUVHYHUHRSSRVLWLRQIURPWKHVHJURXSV *URLQVDUHFURVVVKRUHUHWHQWLRQVWUXFWXUHVWKDWDFWDVDEDUULHUWRDORQJVKRUHVHGLPHQWWUDQVSRUW 2IIVKRUH EUHDNZDWHUV DUH HIIHFWLYH DW UHWDLQLQJ VDQG EXW DUH H[SHQVLYH DQG UHTXLUH D KHDOWK\ VRXUFHRIOLWWRUDOVDQGWRSHUIRUPWKHLUVDQGWUDSSLQJIXQFWLRQ 50 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 0HDVXUHV(OLPLQDWHGIURP)XUWKHU6WXG\
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
7KHFRVWIRUEHDFKQRXULVKPHQWZLOOGHSHQGRQWKHVDQGYROXPHUHTXLUHGIRUUHFRQVWUXFWLRQWKH QHHGIRUUHWHQWLRQVWUXFWXUHVDQGWKHIUHTXHQF\RIUHQRXULVKPHQW5HYHWPHQWVZRXOGEHWKHOHDVW FRVWO\ DOWHUQDWLYH EXW WKH\ KDYH OLPLWHG EHQHILWV DGGUHVVLQJ SUREOHPV DVVRFLDWHG ZLWK 6DQ &OHPHQWH¶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
%HDFK QRXULVKPHQW LV KLJKO\ HIIHFWLYH DW SURWHFWLQJ WKH FRDVWOLQH DV ORQJ DV WKH EHDFK LV PDLQWDLQHG$ZLGHEHDFKEHUPUHVXOWLQJIURPEHDFKILOOFDQHIIHFWLYHO\SURYLGHDEXIIHUDJDLQVW VWRUPZDYHDWWDFNDQGLPSURYHUHFUHDWLRQDOVDIHW\DQGRSSRUWXQLWLHVVLJQLILFDQWO\%HDFKILOOLV WKHRQO\PHDVXUHWKDWPHWDOOWKHHQYLURQPHQWDOHYDOXDWLRQFULWHULDPHQWLRQHGDERYH 51 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 'HVFULSWLRQRI$OWHUQDWLYHV
 1R$FWLRQ
7KH 86$&( LV UHTXLUHG WR FRQVLGHU WKH 1R $FWLRQ RU )XWXUH ZLWKRXW 3URMHFW $OWHUQDWLYH WR FRPSO\ ZLWK WKH UHTXLUHPHQWV RI 1(3$  7KH 1R $FWLRQ $OWHUQDWLYH DVVXPHV WKDW QR SURMHFW ZRXOGEHLPSOHPHQWHGE\WKH)HGHUDOJRYHUQPHQWWRDFKLHYHWKHSODQQLQJREMHFWLYHV)RUWKH SXUSRVHV RI WKH LQLWLDO VFUHHQLQJ WKH 1R $FWLRQ $OWHUQDWLYH DVVXPHV WKH 6&55$¶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³HQJLQHHUHG´ VHDZDOO
 %HDFK)LOO$OWHUQDWLYH
7KH%HDFK)LOO$OWHUQDWLYHFRQVLVWVRIGUHGJLQJPDWHULDOIURPRIIVKRUH2FHDQVLGH )LJXUH

WKHQ KDXOLQJ DQG SODFLQJ LW DW 6DQ &OHPHQWH %HDFK 7KH ERUURZ VLWH %RUURZ $UHD 
 LV
DSSUR[LPDWHO\
 DFUHV ZLWK D  DFUH DUHDLQVWHDGWKH ERUURZ VLWH %RUURZ $UHD $
WKDW
FRQWDLQV WKH PRUH GHVLUDEOH PDWHULDO  7KH EHDFK ILOO GHVLJQ SDUDPHWHUV ZHUH GHWHUPLQHG E\ FRQVLGHULQJ YDULRXV FRPELQDWLRQV RI EHDFKILOO ZLGWKV LH EHWZHHQ  P DQG  P DW  P

LQWHUYDOV
DQGGLIIHUHQW UHSOHQLVKPHQWF\FOHV7KHVHFRPELQDWLRQVDUHVFDOHV HJPP
PHWF EHDFKZLGWK
 RIWKH VDPHDOWHUQDWLYH
LH EHDFK ILOO
7ZR EHDFKZLGWKV KDYH EHHQ
FKRVHQWKDW UHDVRQDEO\ UHSUHVHQWWKH VFDOHVWKDWZHUHPRGHOHG LHPDQGP
EXWZHUH
H[SHFWHGWRKDYHDSSDUHQWGLIIHUHQFHVLQHQYLURQPHQWDOLPSDFWVEDVHGRQSUHOLPLQDU\VFUHHQLQJ 7KH  P EHDFK ZLGWK ZDV FKRVHQ WR UHSUHVHQW WKH VPDOOHVW VFDOH EHDFK ZLGWK WKDW PHW WKH SURMHFWREMHFWLYHV7KHPEHDFKZLGWKZDVFKRVHQWRUHSUHVHQWWKHODUJHVWVFDOHEHDFKZLGWK WKDWPHWSURMHFWREMHFWLYHV$OWKRXJKLWLVUHFRJQL]HGWKDWWKHVHWZRZLGWKVDUHVFDOHVRIWKHVDPH DOWHUQDWLYHWKH\DUHDGGUHVVHGLQWKLVGRFXPHQWDVWZRVHSDUDWHDOWHUQDWLYHV 52 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


 &RPPRQ'HVLJQ(OHPHQWVRI$FWLRQ$OWHUQDWLYHV
7KH IROORZLQJ GHVLJQ HOHPHQWV ZHUH GHWHUPLQHG WR RSWLPL]H WKH HIIHFWLYHQHVV RI WKH EHDFK QRXULVKPHQW DOWHUQDWLYH  7KH PRGHO RXWSXWV DUH SULQFLSDOO\ HFRQRPLF YDOXHV DQQXDO QHW EHQHILWV DQG EHQHILW FRVW UDWLR
%&5
  $FFRUGLQJ WR 86$&( SODQQLQJ JXLGHOLQHV DQ
HFRQRPLFDOO\ MXVWLILHG SODQ VDWLVILHV WKH FRQGLWLRQV RI %&5 JUHDWHU WKDQ  DQG DQQXDO QHW EHQHILWVJUHDWHUWKDQ8QLTXHIHDWXUHVRIWKHWZRDOWHUQDWLYHVDUHGHVFULEHGLQ6HFWLRQ $ORQJVKRUH/HQJWK
$SSUR[LPDWHO\  IW
 P
 RI VKRUHOLQH ZLWKLQ WKH &LW\ DUH UHFRPPHQGHG IRU QRXULVKPHQW  7KH DUHD LV DSSUR[LPDWHO\ FHQWHUHG DERXW WKH 3LHU  WKH VRXWK OLPLW LV ORFDWHG
LPPHGLDWHO\VRXWKRIWKH76WUHHWRYHUSDVVZKLOHWKHQRUWKOLPLWLVORFDWHGLPPHGLDWHO\QRUWKRI WKH0DULQH6DIHW\+HDGTXDUWHUV$WDSHUFRQWLQXHVDQDGGLWLRQDOIW P
WRWKHQRUWKDQG
VRXWKWRPHUJHZLWKWKHH[LVWLQJVKRUHOLQH
%HUP&UHVW(OHYDWLRQ
7KH GHVLJQ EHUP HOHYDWLRQ IRU WKLV VWXG\ KDV EHHQ VHW DW  IHHW  P
 0//:  7KLV
HOHYDWLRQPDWFKHVWKH KHLJKW RIWKH QDWXUDO EHUP RI DGMDFHQW KHDOWK\ EHDFKHV ZKLFK KDV EHHQ HVWDEOLVKHG E\ QXPHURXV VXUYH\V RYHU WKH \HDUV  +LVWRULFDO EHDFK SURILOHV PHDVXUHG RYHU WKH \HDUVLQGLFDWH QDWXUDO VWDEOH EHUPHOHYDWLRQVDUHDSSUR[LPDWHO\IHHW P
0//:$
GHVLJQ EHUP ORZHU WKDQ WKH QDWXUDO EHUP ZLOO IRUP D ULGJH DORQJ WKH FUHVW ZKLFK ZKHQ RYHUWRSSHGE\KLJKZDWHUZLOOSURGXFHIORRGLQJDQGSRQGLQJRQWKHEHUP$GHVLJQEHUPKLJKHU WKDQWKH QDWXUDO EHUPZLOO SURGXFH D EHDFK IDFH VORSH VWHHSHUWKDQWKH QDWXUDO EHDFK DQGPD\ UHVXOWLQIRUPDWLRQRIVFDUSVWKDWLQWHUIHUHZLWKUHFUHDWLRQDOXVHDQGRWKHUHQYLURQPHQWDOXVHV )RUHVKRUH6ORSH
7KH GHVLJQ IRUHVKRUH VORSHLV HVWDEOLVKHG DW +
97KLV VORSHPDWFKHVWKH QDWXUDO IRUHVKRUH
VORSHRIDGMDFHQWEHDFKHVWKDWKDVEHHQHVWDEOLVKHGE\QXPHURXVVXUYH\VDQGPHDVXUHPHQWVRYHU WKH \HDUV'LUHFWPHDVXUHPHQWV REWDLQHG E\WKH&LW\ RI 6DQ&OHPHQWHLQGLFDWH QDWXUDO VWDEOH IRUHVKRUHVORSHVUDQJHEHWZHHQ+
9ZLWK+
9DVWKHPRVWFRPPRQYDOXH7KLVVORSH
KDVEHHQVKRZQWREHDVWDEOHPHDQYDOXHEHWZHHQWKHVHDVRQDOYDULDWLRQV 7KH FRQVWUXFWLRQ IRUHVKRUH VORSH LV HVWDEOLVKHG DW + 9  /RV $QJHOHV 'LVWULFW EHDFK ILOO
FRQVWUXFWLRQ H[SHULHQFH ZLWK VWDQGDUG HDUWKPRYLQJ HTXLSPHQW LQGLFDWHV WKDW VOLJKWO\ IODWWHU IRUHVKRUH VORSHVDUHHDVLHUWRFRQVWUXFW7KHSRVWFRQVWUXFWLRQ IRUHVKRUHLVH[SHFWHGWRHYROYH WKURXJK DQ DGMXVWPHQW SURFHVV NQRZQ DV HTXLOLEUDWLRQ1DWXUDOIRUHVKRUH SURFHVVHVZRXOG UH GLVWULEXWHDSRUWLRQRIWKHRULJLQDOILOOYROXPHWKURXJKRXWWKHSURILOH 6HGLPHQW4XDQWLW\
7KHYROXPHRIEHDFKFRPSDWLEOHVDQGIRUWKHGLIIHUHQWDOWHUQDWLYHVLVSURYLGHGLQ6HFWLRQ 7KHUHFRPPHQGHGTXDQWLW\ZDVGHULYHGIURPFRQVLGHUDWLRQRIWKHSODQIRUP LHSODQYLHZ
DUHD
DQGYROXPHDUHD UHODWLRQVKLSV7KHYROXPHDUHDYDOXHRI\G IW
PP
ZDVXVHGLQ
53 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

WKHSUHVHQWVWXG\
DYDOXHRI\G
IW
PP
KDVEHHQVKRZQWRUHVXOWLQUDSLGHURVLRQRI
WKH ILOO ZKLOH WKH UDQJH RI  \GIW
 PP
 W\SLFDOO\ \LHOGV PRUH UHDOLVWLF
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
RU%HDFK
:LGWK
7KH EHUPZLGWK IRUWKH GLIIHUHQW DOWHUQDWLYHVFRQVLGHUHGLV SURYLGHGLQ 6HFWLRQ %HUP ZLGWKLQWKLV VWXG\LVGHILQHGDVWKDWSRUWLRQRIWKHEHDFKEHWZHHQWKH IRUHVKRUHEHUPFRQWRXU DQGDIL[HGORFDWLRQRQWKHEDFNVKRUHRUWKH³GU\´SRUWLRQRIWKHEHDFKQRWVXEMHFWWRHURVLRQ,Q WKLV VWXG\ WKH VHDZDUG HGJH RI WKH UDLOURDG UHYHWPHQW LV FRQVLGHUHG WKH IL[HG SRLQW RQ WKH EDFNVKRUH6HYHUDOVFDOHV
HJPPPHWF
RIEHUPZLGWKZHUHRULJLQDOO\PRGHOHG
WR GHWHUPLQH WKH RSWLPDO ZLGWK IRU WKH SURSRVHG 3URMHFW  7ZR RI WKHVH EHUP ZLGWKV ZHUH FRQVLGHUHGIRUIXUWKHUDQDO\VLV
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
1RXULVKPHQW,QWHUYDO
$SHULRGLFQRXULVKPHQWLQWHUYDOLVQRWRSWLPL]HGH[SOLFLWO\EXWLVDUHVXOWRIWKHVDFULILFLDOEHDFK ZLGWKRSWLPL]DWLRQ7KHVDFULILFLDOEHDFKZLGWKUHSUHVHQWVDSHULRGRIWLPHEHWZHHQVXFFHVVLYH QRXULVKPHQWV7KHVDFULILFLDOEHDFKZLGWKGLYLGHGE\WKHPHDQORQJWHUPHURVLRQUDWHZLOO\LHOG DQDSSUR[LPDWHYDOXHIRUWKHQRXULVKPHQWLQWHUYDO)RUH[DPSOHDIW P
VDFULILFLDOEHDFK
ZLGWK GLYLGHG E\  IW\U
 P\U
 ORQJWHUP HURVLRQ UDWH DSSUR[LPDWHO\ HTXDOV D \HDU SHULRGLFQRXULVKPHQWLQWHUYDO7KHUHIRUHRSWLPL]DWLRQRIWKHVDFULILFLDOEHDFKZLGWKZLOO\LHOG WKHSHULRGLFQRXULVKPHQWLQWHUYDO
54 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH±2FHDQVLGH%RUURZ6LWH
55 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 8QLTXH)HDWXUHVRI$FWLRQ$OWHUQDWLYHV
IW
P
%HDFK:LGWK$OWHUQDWLYH
7KH GHVLJQ EHUP ZLGWK IRU WKLV DOWHUQDWLYH LV DSSUR[LPDWHO\  IW  P
  $W WKH WLPH RI
FRQVWUXFWLRQWKHDFWXDOLPPHGLDWHSRVWFRQVWUXFWLRQZLGWKLVH[SHFWHGWREHDSSUR[LPDWHO\IW

P
7KH UHFRPPHQGHGSODQZLOO UHTXLUHDSSUR[LPDWHO\F\ 
P

RIEHDFK
FRPSDWLEOHVDQG,QRWKHUZRUGVDSSUR[LPDWHO\F\ 
P

LQSODFHZLOOFUHDWHDQ
LPPHGLDWHSRVWFRQVWUXFWLRQGU\EHDFKZLGWKRIIW
P

)LJXUH
,WLVH[SHFWHGWKDWXS
WRIW
P
RIGU\EHDFKZLGWKZLOOEHGLVWULEXWHGIURPWKHIRUHVKRUHWRWKHSURILOHGXULQJWKH HTXLOLEUDWLRQSURFHVV7KLVDOWHUQDWLYHLVHVWLPDWHGWRWDNHZRUNLQJGD\VWRFRPSOHWH IW
P
%HDFK:LGWK$OWHUQDWLYH
7KH GHVLJQ EHUP ZLGWK IRU WKLV DOWHUQDWLYH LV DSSUR[LPDWHO\  IW  P
  $W WKH WLPH RI
FRQVWUXFWLRQ WKH DFWXDO LPPHGLDWH SRVWFRQVWUXFWLRQ ZLGWK LV H[SHFWHG WR EH DSSUR[LPDWHO\ IW
P
7KH UHFRPPHQGHGSODQZLOO UHTXLUHDSSUR[LPDWHO\F\ P

RI
EHDFK FRPSDWLEOH VDQG ,Q RWKHUZRUGV DSSUR[LPDWHO\  F\ P
LQSODFHZLOO
FUHDWH DQ LPPHGLDWH SRVWFRQVWUXFWLRQ GU\ EHDFK ZLGWK RI  IW  P

)LJXUH 
  ,W LV
H[SHFWHGWKDWXSWRIW
P
RIGU\EHDFKZLGWKZLOOEHGLVWULEXWHGIURPWKHIRUHVKRUHWRWKH SURILOHGXULQJWKHHTXLOLEUDWLRQSURFHVV7KLVDOWHUQDWLYHLVHVWLPDWHGWRWDNHZRUNLQJGD\VWR FRPSOHWH
 &RQVWUXFWLRQ0HWKRGIRU$FWLRQ$OWHUQDWLYHV
7KH SURSRVHG 3URMHFW UHJDUGOHVV RI WKH DFWLRQ DOWHUQDWLYH FKRVHQ ZLOO EH FRQVWUXFWHG ZLWK KRSSHU GUHGJLQJ HTXLSPHQW ZLWK SXPS DVKRUH FDSDELOLW\ DQG FRQYHQWLRQDO HDUWKPRYLQJ HTXLSPHQW7\SLFDO/RV$QJHOHV'LVWULFW EHDFK ILOO SURMHFWV UHTXLUHODUJHFDSDFLW\ RSHQRFHDQ FDSDEOHGUHGJHV
$PHGLXPVL]HGKRSSHUGUHGJH
HJ6XJDU,VODQG
ZRXOGEHXVHG7KHKRSSHUGUHGJHHIIHFWLYH
FDSDFLW\LVHVWLPDWHGDWF\
P

DQGORDGVSHUGD\7KHKRSSHUGUHGJHZRXOG
SXPSRXWWKHGUHGJHPDWHULDOYLDDLQFKSLSHOLQHDWF\KU PKU
7KHKRSSHU
GUHGJHZRXOGEHILOOHGDWWKHGHVLJQDWHGERUURZVLWHDW2FHDQVLGHDQGKDXOHGDSSUR[LPDWHO\ PLOHV
NP
WR6DQ&OHPHQWH$WWKHUHFHLYHUEHDFKWKHGUHGJHZRXOGEHDWWDFKHGWRDPRRUHG IORDWLQJVHFWLRQRISLSHOLQHH[WHQGLQJIW
P
WRWKHVKRUHOLQH7KHPDWHULDOZRXOGEH
UHVXVSHQGHGDQGGLVFKDUJHGWKURXJKWKHRQERDUGSXPSLQJV\VWHPWRWKHUHFHLYHUVLWH 7KHKRSSHUGUHGJHUHTXLUHVDPRQREXR\WRGLVFKDUJHLWVVDQGRQWRWKHEHDFK$PRQREXR\LVD IORDWLQJSLSHOLQHFRQQHFWLRQSODWIRUPWKDWLVPRRUHGWRWKHVHDIORRUDQGLVXVHGWRLQWHUFRQQHFW ZLWKDVWHHOVLQNHUSLSHOLQHWKDWFDUULHVWKHVOXUU\DORQJWKHVHDIORRUWRWKHEHDFK)RUWKLV3URMHFW WKHPRQREXR\ZRXOGEHDQFKRUHGLQDWOHDVWIW
P
RIZDWHUEHWZHHQDQGIW

PWRP
IURPVKRUHDQGLQWKHDSSURSULDWHORFDWLRQLQUHODWLRQWRVHQVLWLYHUHVRXUFHV DQG HQJLQHHULQJ FRQVLGHUDWLRQV  )URP RQH PRQR EXR\ORFDWLRQ VDQG FDQ EH SXPSHG GLUHFWO\ RQVKRUHDQGXSWRDSSUR[LPDWHO\IW
P
DORQJVKRUHLQHLWKHUGLUHFWLRQ
56 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

'UHGJLQJZRXOGEHSHUIRUPHGKRXUVDGD\GD\VDZHHN6KRUHHTXLSPHQWZRXOGZRUN KRXUV D GD\  GD\V D ZHHN  7KH 3URMHFW GXUDWLRQ LV HVWLPDWHG DW IRXU PRQWKV  $QWLFLSDWHG QXPEHURIZRUNLQJGD\VGLIIHUVEHWZHHQWKHDOWHUQDWLYHV&RQVWUXFWLRQLVDQWLFLSDWHGWREHJLQLQ 
2QVKRUH3ODFHPHQW0HWKRG
6DQGZRXOGEHFRPELQHGZLWKVHDZDWHUXQWLOLWUHDFKHVWKHFRQVLVWHQF\RIVOXUU\,WWKHQZRXOG EHFRQYH\HGWRWKHEHDFKYLDHLWKHUSLSHOLQHRUDFRPELQDWLRQRIKRSSHUGUHGJHDQGSLSHOLQHDV GHVFULEHGDERYH
([LVWLQJVDQGDWWKHUHFHLYHUVLWHZRXOGEHXVHGWREXLOGDVPDOO³/´VKDSHGEHUPWRDQFKRUWKH VDQG SODFHPHQW RSHUDWLRQV  7KH VKRUW VLGH RIWKH ³/´ ZRXOG EHWUDQVYHUVH

FURVVZLVH
WRWKH
VKRUHOLQHDQGZRXOGEHWKHSURSRVHGZLGWK7KHORQJVLGHZRXOGEHSDUDOOHOWRWKHVKRUHDWWKH VHDZDUG HGJH DQG ZRXOG EH DSSUR[LPDWHO\  IW
 P
 ORQJ  %HUP FRQVWUXFWLRQ PD\ EH
DGMXVWHG IURP WKH GHVLJQ UHTXLUHPHQWV GXULQJ ILOO SODFHPHQW GHSHQGLQJ RQ DFWXDO ILHOG FRQGLWLRQV7KHFURVVZLVHVLGHRIWKHEHUPZRXOGEHFRQVWUXFWHGWRDOORZDORQJVKRUHODQGZDUG EHDFKDFFHVVIRUHPHUJHQF\DFFHVVDWDOOWLPHV
7KHVOXUU\ZRXOGEHSXPSHGRQWRWKHEHDFKEHWZHHQWKLVEHUPDQGWRH7KHEHUPUHGXFHVRFHDQ ZDWHUWXUELGLW\E\DOORZLQJDOOWKHVDQGWRVHWWOHRXWLQVLGHWKHEHUPHGDUHDZKLOHWKHVHDZDWHULV FKDQQHOHG DORQJ WKH EHUP XQWLO LW UHDFKHV WKH RSHQ HQG ZKHUH LW GUDLQV LQWR WKH RFHDQ 7HPSRUDU\ GLNHVZLWKLQWKH EHUPZLOODOORZ VDQGWR VHWWOHLQ GHVLJQDWHGDUHDV2QFHD  IW

P
VHFWLRQRIEHUPLVILOOHGLQZLWKVDQGDQRWKHUIW P
RIEHUPZRXOGEHFUHDWHGWKH
SLSHOLQH ZRXOG EH PRYHG RU H[WHQGHG LQWR WKH QHZ EHUP DUHD DQG WKH SURFHVV ZRXOG EHJLQ DJDLQ  $V WKH PDWHULDO LV GHSRVLWHG EHKLQG WKH EHUP WKH VDQG ZRXOG EH VSUHDG XVLQJ WZR EXOOGR]HUVDQGRQHIURQWHQGORDGHUWRGLUHFWWKHIORZRIWKHVDQGVOXUU\DQGIRUPDJUDGXDOVORSH WR WKH H[LVWLQJ EHDFK HOHYDWLRQ  7KH EHUP ZRXOG EH VXEMHFW WR WKH IRUFHV RI WKH ZDYHV DQG ZHDWKHURQFHFRQVWUXFWHGDQGZRXOGHYHQWXDOO\VHWWOHGRZQWRDQDWXUDOJUDGHIRUWKHEHDFK 57 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH3ODQ9LHZRIIW
P
%HDFK:LGWK$OWHUQDWLYH
58 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH3ODQ9LHZRIIW
P
%HDFK:LGWK$OWHUQDWLYH
59 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

&RQVWUXFWLRQ$FFHVVDQG6WDJLQJ$UHDV
%HDFKDFFHVVIRUWKHFRQVWUXFWLRQHTXLSPHQWDQGFUHZZRXOGEHVSOLWEHWZHHQRSHQVSDFHRQWKH EHDFKDQGDFLW\RZQHGSXEOLFSDUNLQJORWDQGLVVKRZQLQ)LJXUH$QRSHQDUHDH[LVWVDORQJ WKHEHDFKLPPHGLDWHO\DGMDFHQWDQGQRUWKRIWKH3LHUDQGLQWKHLPPHGLDWHYLFLQLW\RIWKH0DULQH 6DIHW\ +HDGTXDUWHUV  ,WLV H[SHFWHGWKLV VLWH ZRXOG EH XVHG IRUWKH FRQWUDFWRUV¶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
7KHFRQWUDFWRUV¶GUHGJHDQGYHVVHOVZRXOGUHTXLUHRIIVLWHPRRULQJDQGEHUWKLQJVSDFH7KHUHLV QRPRRULQJDUHDDYDLODEOHZLWKLQWKH&LW\RI6DQ&OHPHQWH7KHQHDUHVWVXLWDEOHPRRULQJDUHDLV 'DQD3RLQW+DUERUDVPDOOFUDIWKDUERUDSSUR[LPDWHO\PL NP
QRUWK
)LJXUH%HDFK$FFHVVDQG6WDJLQJ$UHDV
60 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 3XEOLF$FFHVV
)RUWKH EHDFK ILOO RSHUDWLRQ XSWR  IW

P
 RI EHDFKZRXOG EHLQDFFHVVLEOHWRWKH SXEOLF
DURXQGWKHGLVFKDUJHSLSHOLQHDQGEHUPV,QDGGLWLRQWKHUHZRXOGEHLQWHUPLWWHQWUHVWULFWLRQVRQ SXEOLFDFFHVVIRUDSSUR[LPDWHO\IW
P
RQHLWKHUVLGHRIWKLVGLVFKDUJH]RQH7KLVVSDFH
ZRXOGEHQHHGHGIRUPDQHXYHULQJKHDY\HTXLSPHQWGXULQJFRQVWUXFWLRQRIWKHWHPSRUDU\EHUPV  )XWXUH3URMHFW%HDFK3URILOH0RQLWRULQJ
/RQJWHUP VKRUHOLQH HURVLRQDO SURFHVVHV FUHDWH GDPDJHV WKURXJK ORQJWHUP SURILOH WUDQVODWLRQ ODQGZDUG DQG WKH LQFUHDVLQJ SRWHQWLDO IRU ZDYH UHODWHG GDPDJHV  7KH ODQGZDUG DGYDQFLQJ VKRUHOLQHUHGXFHVWKHEHDFKZLGWKDYDLODEOHIRUVWRUPGDPDJHSURWHFWLRQWKHUHE\LQFUHDVLQJWKH SUREDELOLW\RIZDYH UHODWHGGDPDJHVWR IDFLOLWLHVDQGVWUXFWXUHV/RQJWHUPEHDFKHURVLRQDOVR UHVXOWV LQ WKH JUDGXDO UHGXFWLRQ RI WKH EHDFK VXUIDFH DUHD DYDLODEOH IRU UHFUHDWLRQ  7KH SHDN HURVLRQUDWHLV±IW\U
±P\U
WKHPD[LPXPHURVLRQUDWHLVIW\U
±P\U
DQG
WKHPD[LPXPDFFUHWLRQUDWHLVIW\U
P\U

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
0DLQWHQDQFHQRXULVKPHQWHIIRUWVZRXOGRFFXUZKHQWKHVKRUHOLQHUHDFKHVWKHEDVHEHDFKZLGWK

LHDSSUR[LPDWHO\IW>P@
%DVHGRQDPD[LPXPHURVLRQUDWHRIIHHWSHU\HDU 

P\U
 QRXULVKPHQW IRUWKH  IW
P
ZLGH EHDFKZRXOG EH UHTXLUHG DSSUR[LPDWHO\ HYHU\  \HDUVDQGQRXULVKPHQWIRUWKHIW
P
ZLGHEHDFKZRXOGEHUHTXLUHGDSSUR[LPDWHO\HYHU\
 \HDUV0DLQWHQDQFH QRXULVKPHQWHIIRUWVZRXOG UHWXUQWKH EHDFKWRWKH GHVLJQ EHDFKZLGWK HLWKHU  IW
P
 RU  IW
P
DQGZRXOGLQYROYH XSWRD VLPLODUDPRXQW RIPDWHULDODV RULJLQDO FRQVWUXFWLRQ EDVHG RQWKH GHVLJQ EHDFK ZLGWK 0DLQWHQDQFH QRXULVKPHQW HIIRUWV DOVR ZRXOGEHGHSHQGHQWXSRQDYDLODEOHIXQGLQJDWWKHWLPHRIUHTXHVW  &RPSDUDWLYH,PSDFWV&ULWHULDRI$OWHUQDWLYH3ODQV
$OWHUQDWLYHVZHUHFRPSDUHGXVLQJWKHIROORZLQJIRXUIRUPXODWLRQFULWHULDVXJJHVWHGE\WKH86 :DWHU5HVRXUFHV&RXQFLO
&RPSOHWHQHVV  &RPSOHWHQHVVLV D GHWHUPLQDWLRQ RI ZKHWKHU RU QRWWKH SODQLQFOXGHV DOO HOHPHQWVQHFHVVDU\WRDFKLHYHWKHREMHFWLYHVRIWKHSODQ ,WLVDQLQGLFDWLRQRIWKHGHJUHH WKDWWKHRXWSXWVRIWKHSODQDUHGHSHQGHQWXSRQWKHDFWLRQRIRWKHUV 61 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

(IIHFWLYHQHVV±$OORIWKHSODQVLQWKHILQDODUUD\SURYLGHVRPHFRQWULEXWLRQWRWKHSODQQLQJ REMHFWLYHV(IIHFWLYHQHVVLVGHILQHGDVDPHDVXUHRIWKHH[WHQWWRZKLFKDSODQDFKLHYHVLWV REMHFWLYHV
(IILFLHQF\±$OORIWKHSODQVLQWKHILQDODUUD\SURYLGHQHWEHQHILWV(IILFLHQF\LVDPHDVXUH RIWKHFRVWHIIHFWLYHQHVVRIWKHSODQH[SUHVVHGLQQHWEHQHILWV $FFHSWDELOLW\±$OORIWKHSODQVLQWKHILQDODUUD\PXVWEHLQDFFRUGDQFHZLWK)HGHUDOODZ DQGSROLF\7KHFRPSDULVRQRIDFFHSWDELOLW\LVGHILQHGDVDFFHSWDQFHRIWKHSODQWRWKHORFDO VSRQVRUDQGWKHFRQFHUQHGSXEOLF
 5HFRPPHQGHG3ODQ$OWHUQDWLYH
$OWHUQDWLYHV ZHUH FRQVLGHUHG WKDW PD\ KDYH IHZHU GLUHFW LQGLUHFW DQG FXPXODWLYH LPSDFWV WR DTXDWLF UHVRXUFHV WKDW VWLOO PHHW WKH 3URMHFW SXUSRVH  3RWHQWLDO SURMHFW UHODWHG LPSDFWV DUH SURYLGHGLQWKHDOWHUQDWLYHVDQDO\VLVLQ6HFWLRQRIWKLVUHSRUW7KHIW P
%HDFK:LGWK
$OWHUQDWLYHLVLGHQWLILHGDVWKHUHFRPPHQGHGSODQ
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
 %HDFK:LGWK
$OWHUQDWLYH
7KH UHFRPPHQGHG SODQ LV H[SHFWHG WR SHUIRUP LQ D PDQQHU FRQVLVWHQW ZLWK RWKHU UHFHQW ILOOV ZLWKLQWKHVRXWKHUQ&DOLIRUQLDUHJLRQ$VLPLODUEHDFKQRXULVKPHQWRSHUDWLRQZDVSHUIRUPHGLQ  E\ WKH 6DQ 'LHJR $VVRFLDWLRQ RI *RYHUQPHQWV 6$1'$* 
  7KH SURMHFW HQWDLOHG
GUHGJLQJPLOOLRQFXELF\DUGV
PLOOLRQFXELFPHWHUV
RIEHDFKFRPSDWLEOHVHGLPHQWVIURP
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ñ

PHGLDQ JUDLQ VL]H
 PP >LQ@
 DORQJVKRUHOHQJWK
 IW > P@
 DQG ILOO ZLGWK

 IW >P@
DUHFRPSDUDEOHWRWKH UHFRPPHQGHG SODQ RIWKLVVWXG\DQGLWV SHUIRUPDQFHLV GHHPHGUHSUHVHQWDWLYHRIH[SHFWHGSHUIRUPDQFHDW6DQ&OHPHQWH (VWLPDWHVEDVHGRQWKH6$1'$*PRQLWRULQJGDWDVXJJHVWWKH6DQ&OHPHQWH ILOOZLOOHURGHRQ DYHUDJHDWDUDWHRIIHHWSHU\HDU

P\U
$EHDFKILOOHURGHVDWVXEVWDQWLDOO\KLJKHUUDWHV
WKDQWKHQDWLYHEHDFK'XHWRWKHWLPHYDU\LQJQDWXUHRIWKHZDYHFOLPDWHVHGLPHQWVXSSO\WR WKHEHDFKDQGRWKHU IDFWRUVGULYLQJORQJVKRUH VHGLPHQWWUDQVSRUWLWLVH[SHFWHGWKDWWKHEHDFK 62 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


ZLOOHURGHDWDJUHDWHUUDWHLQVRPH\HDUVDWDVORZHUUDWHLQVRPH\HDUVDQGSRVVLEO\DFFUHWHLQ RWKHU\HDUV%DVHGRQDIW
P
ZLGHEHDFKDQGWKHIW\U

P\U
HURVLRQUDWHLWLV
DQWLFLSDWHGWKDWDILOOZLOOODVWDERXW\HDUVRQDYHUDJH 63 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 $))(&7('(19,5210(17
 0HWHRURORJ\DQG$LU4XDOLW\
 &OLPDWH0HWHRURORJ\
7KHSURSRVHG6DQ&OHPHQWH6KRUHOLQH3URMHFWOLHVLQWKH6RXWK&RDVW$LU%DVLQ 6&$%
ZLWKD
ERUURZDUHDORFDWHGLQWKH6DQ'LHJR$LU%DVLQ
 6RXWK&RDVW$LU%DVLQ
6&$%

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
ž)
:LWKDPRUH SURQRXQFHG RFHDQLFLQIOXHQFH
FRDVWDODUHDV VKRZOHVV YDULDELOLW\LQDQQXDOPLQLPXPDQGPD[LPXPWHPSHUDWXUHVWKDQLQODQG DUHDV7KHFOLPDWRORJLFDOVWDWLRQORFDWHGLQ/DJXQD%HDFK WRWKHQRUWK
UHSRUWVD\HDUO\DYHUDJH
RIž)7KHDYHUDJHORZLVUHSRUWHGDWž)LQ-DQXDU\ZKLOHWKHDYHUDJHKLJKLVž)LQ$XJXVW DQG6HSWHPEHU
,Q FRQWUDVW WR D YHU\ VWHDG\ SDWWHUQ RI WHPSHUDWXUH UDLQIDOO LV VHDVRQDOO\ DQG DQQXDOO\ KLJKO\ YDULDEOH  $OPRVW DOO UDLQ IDOOV IURP 1RYHPEHU WKURXJK $SULO  6XPPHU UDLQIDOO LV QRUPDOO\ UHVWULFWHGWRZLGHO\VFDWWHUHGWKXQGHUVKRZHUVQHDUWKHFRDVWZLWKVOLJKWO\KHDYLHUVKRZHUDFWLYLW\ LQWKHHDVWDQGRYHUWKHPRXQWDLQV5DLQIDOODYHUDJHVDURXQGLQFKHVSHU\HDULQWKH3URMHFW DUHDDJDLQDVPHDVXUHGDW/DJXQD%HDFK
$OWKRXJKWKH6&$%KDVDVHPLDULGFOLPDWHWKHDLUQHDUWKHVXUIDFHLVW\SLFDOO\PRLVWEHFDXVHRI WKHSUHVHQFHRIDVKDOORZPDULQHOD\HU([FHSWIRULQIUHTXHQWSHULRGVZKHQGU\FRQWLQHQWDODLU LVEURXJKWLQWRWKH6&$%E\RIIVKRUHZLQGVWKHRFHDQHIIHFWLVGRPLQDQW3HULRGVRIKHDY\IRJ HVSHFLDOO\ DORQJWKH FRDVWOLQH DUH IUHTXHQW
 DQGORZ VWUDWXV FORXGV RIWHQ UHIHUUHGWR DV ³KLJK IRJ´DUHDFKDUDFWHULVWLFFOLPDWLFIHDWXUH$QQXDODYHUDJHKXPLGLW\LVSHUFHQWDWWKHFRDVWDQG SHUFHQWLQWKHHDVWSRUWLRQVRIWKH6&$%
:LQG SDWWHUQV DFURVVWKH VRXWK FRDVWDO UHJLRQ DUH FKDUDFWHUL]HG E\ZHVWHUO\ DQG VRXWKZHVWHUO\ RQVKRUH ZLQGV GXULQJ WKH GD\ DQG HDVWHUO\ RU QRUWKHDVWHUO\ EUHH]HV DW QLJKW  :LQG VSHHG LV VRPHZKDWJUHDWHUGXULQJWKHGU\VXPPHUPRQWKVWKDQGXULQJWKHUDLQ\ZLQWHUVHDVRQ$QQXDOO\ W\SLFDOZLQGVLQWKHSURMHFWDUHDDYHUDJHDERXWWRPLOHVSHUKRXUGXULQJWKHGD\DQGWR PLOHVSHUKRXUGXULQJWKHQLJKW
64 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

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³PL[LQJ KHLJKW´  7KLV PL[LQJ KHLJKW FDQ FKDQJH XQGHU FRQGLWLRQV ZKHQ WKH WRS RI WKH LQYHUVLRQ GRHV QRW FKDQJH  7KH FRPELQDWLRQ RI ZLQGV DQG LQYHUVLRQVDUHFULWLFDOGHWHUPLQDQWVLQOHDGLQJWRWKHKLJKO\GHJUDGHGDLUTXDOLW\LQVXPPHUDQG WKHJHQHUDOO\JRRGDLUTXDOLW\LQWKHZLQWHULQWKHSURMHFWDUHD  6DQ'LHJR$LU%DVLQ
6'$%

7KH 6'$% FRYHUV  VTXDUH PLOHV DQG OLHV LQ WKH VRXWKZHVW FRUQHU RI &DOLIRUQLD DQG FRPSULVHVWKHHQWLUH6DQ'LHJRUHJLRQ7KHWRSRJUDSK\LQWKH6DQ'LHJRUHJLRQYDULHVJUHDWO\ IURP EHDFKHV RQ WKH ZHVW WR PRXQWDLQV DQG GHVHUW RQ WKH HDVW  0XFK RI WKH WRSRJUDSK\ LQ EHWZHHQFRQVLVWV RIPHVDWRSVLQWHUVHFWHG E\FDQ\RQDUHDV7KHWRSRJUDSK\LQWKH6DQ'LHJR UHJLRQDORQJZLWKORFDOPHWHRURORJ\LQIOXHQFHVWKHGLVSHUVDODQGPRYHPHQWRISROOXWDQWVLQWKH EDVLQ
7KH ZHDWKHU RI WKH 6DQ 'LHJR UHJLRQ DV LQ PRVW RI VRXWKHUQ &DOLIRUQLD LV LQIOXHQFHG E\ WKH 3DFLILF2FHDQDQGLWV VHPLSHUPDQHQW KLJKSUHVVXUH V\VWHPVWKDW UHVXOWLQ GU\ZDUP VXPPHUV DQGPLOG RFFDVLRQDOO\ ZHW ZLQWHUV  7KH DYHUDJHWHPSHUDWXUH UDQJHV IURPWKHPLG VWRWKH KLJK
V  0RVW RI WKH FRXQW\¶V SUHFLSLWDWLRQ IDOOV IURP 1RYHPEHU WR $SULO ZLWK LQIUHTXHQW

DSSUR[LPDWHO\WHQSHUFHQW
SUHFLSLWDWLRQGXULQJWKHVXPPHU
7KH LQWHUDFWLRQ RI RFHDQ ODQG DQG WKH 3DFLILF +LJK 3UHVVXUH =RQH PDLQWDLQV FOHDU VNLHV IRU PXFK RI WKH \HDU DQG GULYHV WKH SUHYDLOLQJ ZLQGV  /RFDO WHUUDLQ LV RIWHQ WKH GRPLQDQW IDFWRU LQODQGDQGZLQGVLQLQODQGPRXQWDLQRXVDUHDVWHQGWREORZWKURXJKWKHYDOOH\VGXULQJWKHGD\ DQGGRZQWKHKLOOVDQGYDOOH\VDWQLJKW
 $PELHQW$LU4XDOLW\
7KH IROORZLQJFKDUDFWHUL]DWLRQRIWKHEDVHOLQHDWPRVSKHULFHQYLURQPHQWLQFOXGHVDQHYDOXDWLRQ RIWKHDPELHQWDLUTXDOLW\DQGDSSOLFDEOHUXOHVUHJXODWLRQVDQGVWDQGDUGVIRUWKHDUHD%HFDXVH WKH 3URMHFW KDVWKH DELOLW\WR UHOHDVH JDVHRXV HPLVVLRQV RI FULWHULD SROOXWDQWV DQG GXVWLQWRWKH DPELHQWDLULWIDOOVXQGHUWKHDPELHQWDLUTXDOLW\VWDQGDUGVSURPXOJDWHGRQWKHORFDOVWDWHDQG IHGHUDOOHYHOV
65 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 %DVHOLQH$LU4XDOLW\
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¶V JURZWKLQSRSXODWLRQDQGYHKLFOHPLOHVWUDYHOHGZKLFKERWKFRQWULEXWHWRDLUSROOXWLRQSUREOHPV 7KLVLPSURYHPHQWLQDLUTXDOLW\FOHDUO\VKRZVWKDWHIIRUWVWRUHGXFHDLUSROOXWLRQDUHZRUNLQJ 3ROOXWDQWVHPLWWHGLQWRWKHDLUIURPVWDWLRQDU\DQGPRELOHVRXUFHVDIIHFWWKHDPELHQWDLUTXDOLW\ 6WDWLRQDU\VRXUFHVFDQEHGLYLGHGLQWRWZRPDMRUVXEFDWHJRULHV SRLQWVRXUFHVDQGDUHDVRXUFHV
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
KRZHYHUWKH\LQGLUHFWO\FDXVHWKHJHQHUDWLRQRIDLU
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
([LVWLQJOHYHOVRIDPELHQWDLUTXDOLW\DQGKLVWRULFDOWUHQGVDQGSURMHFWLRQVLQWKHSURMHFWDUHDDUH EHVW GRFXPHQWHG E\ PHDVXUHPHQWV PDGH E\ WKH 6&$40'  7KH VDQG SODFHPHQW LV ORFDWHG ZLWKLQWKHVRXWKHUQSRUWLRQRI6RXUFH5HFHSWRU$UHD
65$
&DSLVWUDQR9DOOH\7KHFORVHVW
PRQLWRULQJVWDWLRQWRWKH6DQ&OHPHQWHDUHDLVORFDWHGDW/DNH)RUHVW 6DGGOHEDFN9DOOH\65$


([FHSWLQJ12WKDWLVQRWPRQLWRUHGLQWKLVDUHDGDWDIURPWKHPRQLWRULQJVWDWLRQLQ65$ 
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
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

LQ WKDWH[FHHGHGWKH VWDQGDUGV IRUHLWKHU SROOXWDQW7KH&2DQG12 VWDQGDUGV KDYH QRW EHHQYLRODWHGLQWKHODVWILYH\HDUVDWWKLVVWDWLRQ
7DEOH$PELHQW$LU4XDOLW\0RQLWRULQJ6XPPDU\
3ROOXWDQW6WDQGDUG
1XPEHURI'D\V7KUHVKROGV:HUH([FHHGHGDQG
0D[LPXP/HYHOV'XULQJ6XFK9LRODWLRQV
    
2]RQH±/DNH)RUHVW
6WDWH+RXU!
SSP
6WDWH+RXU!SSP
)HGHUDO+RXU!SSP
)HGHUDO+RXU!SSP
0D[+RXU&RQF
SSP

0D[+RXU&RQF
SSP


1'






























2]RQH±&DPS3HQGOHWRQ 
6WDWH+RXU!
SSP
6WDWH+RXU!SSP
)HGHUDO+RXU!SSP
)HGHUDO+RXU!SSP
0D[+RXU&RQF
SSP

0D[+RXU&RQF
SSP



































&DUERQ0RQR[LGH±/DNH)RUHVW
6WDWH+RXU!
SSP
)HGHUDO+RXU!
SSP
0D[+RXU&RQF
SSP

0D[+RXU&RQF
SSP





















1LWURJHQ'LR[LGH±65$ 
6WDWH+RXU!SSP
0D[+RXU&RQF
SSP












1LWURJHQ'LR[LGH±&DPS3HQGOHWRQ
6WDWH+RXU!SSP
0D[+RXU&RQF
SSP












,QKDODEOH3DUWLFXODWHV
30


±/DNH)RUHVW
6WDWH+RXU!ȝJP
)HGHUDO+RXU!ȝJP
0D[+RXU&RQF
ȝJP

















,QKDODEOH3DUWLFXODWHV
30


±/DNH)RUHVW
)HGHUDO+RXU!ȝJP
0D[+RXU&RQF
ȝJP














 
12DVPHDVXUHGDWWKH1RUWK&RDVWDO2UDQJH&RXQW\PRQLWRULQJVWDWLRQ$OORWKHUSROOXWDQWVDVPHDVXUHGDW WKH6DGGOHEDFNPRQLWRULQJVWDWLRQ

3HUFHQWRIVDPSOHVH[FHHGLQJVWDQGDUG
SSP
SDUWVSHUPLOOLRQ
ȝJP

PLFURJUDPVSHUFXELFPHWHU
6RXUFH
6RXWK&RDVW$LU4XDOLW\0DQDJHPHQW'LVWULFW
67 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

$WWKH6'$*PRQLWRULQJVLWHVR]RQHSROOXWLRQVWD\HGIDLUO\VWHDG\EHWZHHQDQGDQG DFWXDOO\GHFUHDVHGEHWZHHQDQGZLWKDQDYHUDJHRIGD\VH[SHULHQFLQJDYLRODWLRQRI WKH6WDWHKRXUO\VWDQGDUGGXULQJWKRVHWKUHH\HDUV7KH12VWDQGDUGVKDYHQRWEHHQYLRODWHGLQ WKHODVWILYH\HDUVDWWKLVVWDWLRQ
 6HQVLWLYH5HFHSWRUV
6RPHODQG XVHV DUH FRQVLGHUHG PRUH VHQVLWLYHWR DLU SROOXWLRQWKDQ RWKHUV GXHWRWKHW\SHV RI SRSXODWLRQ JURXSV RU DFWLYLWLHV LQYROYHG  6HQVLWLYH SRSXODWLRQ JURXSV LQFOXGH FKLOGUHQ WKH HOGHUO\WKHDFXWHO\LOODQGWKHFKURQLFDOO\LOOHVSHFLDOO\WKRVHZLWKFDUGLRUHVSLUDWRU\GLVHDVHV 5HVLGHQWLDO DUHDV DUH FRQVLGHUHG WR EH VHQVLWLYH WR DLU SROOXWLRQ EHFDXVH UHVLGHQWV LQFOXGLQJ
FKLOGUHQDQGWKHHOGHUO\
WHQGWREHDWKRPHIRUH[WHQGHGSHULRGVRIWLPHUHVXOWLQJLQVXVWDLQHG H[SRVXUH WR DQ\ SROOXWDQWV SUHVHQW  6FKRROV DUH DOVR FRQVLGHUHG DV VHQVLWLYH DV FKLOGUHQ DUH SUHVHQWIRUH[WHQGHGGXUDWLRQVDQGHQJDJHLQUHJXODURXWGRRUDFWLYLWLHV5HFUHDWLRQDOODQGXVHV DUHFRQVLGHUHGPRGHUDWHO\ VHQVLWLYHWRDLU SROOXWLRQ EHFDXVHH[HUFLVH SODFHVD KLJK GHPDQG RQ UHVSLUDWRU\IXQFWLRQVZKLFKFDQEHLPSDLUHGE\DLUSROOXWLRQ6HQVLWLYHUHFHSWRUVLQWKH3URMHFW YLFLQLW\LQFOXGHVHYHUDOUHVLGHQWLDOQHLJKERUKRRGVDSSUR[LPDWHO\ IHHWIURPWKH3URMHFWVLWH
 5HJXODWRU\)UDPHZRUN
7KH IROORZLQJFKDUDFWHUL]DWLRQRIWKHEDVHOLQHDWPRVSKHULFHQYLURQPHQWLQFOXGHVDQHYDOXDWLRQ RIWKHDPELHQWDLUTXDOLW\DQGDSSOLFDEOHUXOHVUHJXODWLRQVDQGVWDQGDUGVIRUWKHDUHD%HFDXVH WKH 3URMHFW KDVWKH DELOLW\WR UHOHDVH JDVHRXV HPLVVLRQV RI FULWHULD SROOXWDQWV DQG GXVWLQWRWKH DPELHQWDLULWIDOOVXQGHUWKHDPELHQWDLUTXDOLW\VWDQGDUGVSURPXOJDWHGRQWKH/RFDO6WDWHDQG IHGHUDOOHYHOV
 &ULWHULD3ROOXWDQWV
)HGHUDODQG6WDWHODZVUHJXODWHWKHDLUSROOXWDQWVHPLWWHGLQWRWKHDPELHQWDLUE\VWDWLRQDU\DQG PRELOH VRXUFHV  7KHVH UHJXODWHG DLU SROOXWDQWV DUH NQRZQ DV ³FULWHULD DLU SROOXWDQWV´ DQG DUH FDWHJRUL]HG DV SULPDU\ DQG VHFRQGDU\ SROOXWDQWV  3ULPDU\ DLU SROOXWDQWV DUH WKRVH WKDW DUH HPLWWHGGLUHFWO\IURPVRXUFHV&DUERQPRQR[LGH
&2
UHDFWLYHRUJDQLFJDVHV
52*
QLWURJHQ
R[LGHV
12;
 VXOIXU GLR[LGH
62
 DQG PRVW ILQH SDUWLFXODWH PDWWHU
30 30
LQFOXGLQJ
OHDG
3E
DQGIXJLWLYHGXVW
DUHSULPDU\DLUSROOXWDQWV2IWKHVH&26230DQG30DUH FULWHULDSROOXWDQWV52*DQG12;DUHFULWHULDSROOXWDQWSUHFXUVRUVWKDWJRRQWRIRUPVHFRQGDU\ FULWHULDSROOXWDQWVWKURXJKFKHPLFDODQGSKRWRFKHPLFDOUHDFWLRQLQWKHDWPRVSKHUH2]RQH 2

DQGQLWURJHQGLR[LGH
12
DUHWKHSULQFLSDOVHFRQGDU\SROOXWDQWV$GHVFULSWLRQRIHDFKRIWKHVH SULPDU\ DQG VHFRQGDU\ FULWHULD DLU SROOXWDQWV DQG WKHLU NQRZQ KHDOWK HIIHFWV LV SUHVHQWHG LQ $SSHQGL[&
 7R[LF$LU&RQWDPLQDQWV
7KH SXEOLF
V H[SRVXUH WR WR[LF DLU FRQWDPLQDQWV
7$&V
 LV D VLJQLILFDQW HQYLURQPHQWDO KHDOWK
LVVXHLQ&DOLIRUQLD,Q
WKH&DOLIRUQLD/HJLVODWXUHHQDFWHGDSURJUDPWRLGHQWLI\WKHKHDOWK HIIHFWVRI7$&VDQGWRUHGXFHH[SRVXUHWRWKHVHFRQWDPLQDQWVWRSURWHFWWKHSXEOLFKHDOWK7KH +HDOWKDQG6DIHW\&RGHGHILQHVD7$&DV³DQDLUSROOXWDQWZKLFKPD\FDXVHRUFRQWULEXWHWRDQ 68 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

LQFUHDVHLQPRUWDOLW\ RULQ VHULRXVLOOQHVV RU ZKLFKPD\ SRVH D SUHVHQW RU SRWHQWLDO KD]DUGWR KXPDQKHDOWK´$VXEVWDQFHWKDWLVOLVWHGDVDKD]DUGRXVDLUSROOXWDQWSXUVXDQWWRVXEVHFWLRQ E

RI6HFWLRQRIWKH)HGHUDO$FW
86&6HF>E@
LVDWR[LFDLUFRQWDPLQDQW8QGHU6WDWH
ODZWKH&DOLIRUQLD(QYLURQPHQWDO3URWHFWLRQ$JHQF\DFWLQJWKURXJKWKH&$5%LVDXWKRUL]HGWR LGHQWLI\DVXEVWDQFHDVD7$&LILWGHWHUPLQHVWKHVXEVWDQFHLVDQDLUSROOXWDQWZKLFKPD\FDXVH RUFRQWULEXWHWRDQLQFUHDVHLQPRUWDOLW\RUDQLQFUHDVHLQ VHULRXVLOOQHVVRUZKLFKPD\SRVHD SUHVHQWRUSRWHQWLDOKD]DUGWRKXPDQKHDOWK
&DOLIRUQLD UHJXODWHV 7$&V SULPDULO\WKURXJK $%  7DQQHU $LU 7R[LFV $FW
 DQG $% 

$LU7R[LFV³+RW6SRW´,QIRUPDWLRQDQG$VVHVVPHQW$FWRI 
7KH7DQQHU$LU7R[LFV$FW
VHWV IRUWK D IRUPDO SURFHGXUH IRU &$5% WR GHVLJQDWH VXEVWDQFHV DV 7$&V  2QFH D 7$& LV LGHQWLILHG&$5%DGRSWVDQ³DLUERUQHWR[LFVFRQWUROPHDVXUH´ IRUVRXUFHVWKDWHPLWGHVLJQDWHG 7$&V ,IWKHUHLVDVDIHWKUHVKROG IRUDVXEVWDQFHDWZKLFKWKHUHLVQRWR[LFHIIHFWWKHFRQWURO PHDVXUHPXVWUHGXFHH[SRVXUHWREHORZWKDWWKUHVKROG,IWKHUHLVQRVDIHWKUHVKROGWKHPHDVXUH PXVWLQFRUSRUDWHWR[LFVEHVWDYDLODEOHFRQWUROWHFKQRORJ\ 7%$&7
WRPLQLPL]HHPLVVLRQV
$LU WR[LFV IURP VWDWLRQDU\ VRXUFHV DUH DOVR UHJXODWHG LQ &DOLIRUQLD XQGHU WKH $LU 7R[LFV ³+RW 6SRW´ ,QIRUPDWLRQ DQG $VVHVVPHQW $FW RI 
  8QGHU $%  WR[LF DLU FRQWDPLQDQW
HPLVVLRQVIURPLQGLYLGXDOIDFLOLWLHVDUHTXDQWLILHGDQGSULRULWL]HGE\WKHDLUTXDOLW\PDQDJHPHQW GLVWULFWRUDLUSROOXWLRQFRQWUROGLVWULFW+LJKSULRULW\IDFLOLWLHVDUHUHTXLUHGWRSHUIRUPDKHDOWK ULVNDVVHVVPHQWDQGLIVSHFLILFWKUHVKROGVDUHH[FHHGHGUHTXLUHGWRFRPPXQLFDWHWKHUHVXOWVWR WKHSXEOLFLQWKHIRUPRIQRWLFHVDQGSXEOLFPHHWLQJV 7RGDWHWKH&$5%KDVGHVLJQDWHGQHDUO\FRPSRXQGVDV7$&V$GGLWLRQDOO\WKH&$5%KDV LPSOHPHQWHG FRQWURO PHDVXUHV IRU D QXPEHU RI FRPSRXQGV WKDW SRVH KLJK ULVNV DQG VKRZ SRWHQWLDO IRU HIIHFWLYH FRQWURO  7KH PDMRULW\ RI WKH HVWLPDWHG KHDOWK ULVNV IURP 7$&V FDQ EH DWWULEXWHG WR D UHODWLYHO\ IHZ FRPSRXQGV WKH PRVW LPSRUWDQW EHLQJ SDUWLFXODWH PDWWHU IURP GLHVHOIXHOHGHQJLQHV
 2WKHU(IIHFWVRI$LU3ROOXWLRQ
-XVWDVKXPDQVDUHDIIHFWHGE\DLUSROOXWLRQVRWRRDUHSODQWVDQGDQLPDOV$QLPDOVPXVWEUHDWKH WKHVDPHDLUDQGDUHVXEMHFWWRWKHVDPHW\SHVRIQHJDWLYHKHDOWKHIIHFWV&HUWDLQSODQWVDQGWUHHV PD\DEVRUEDLUSROOXWDQWVWKDWFDQVWXQWWKHLUGHYHORSPHQWRUFDXVHSUHPDWXUHGHDWK 7KHUHDUHDOVRQXPHURXVLPSDFWVWRWKHKXPDQHFRQRP\LQFOXGLQJORVWZRUNGD\VGXHWRLOOQHVVD GHVLUH RQ WKH SDUW RI EXVLQHVV WR ORFDWH LQ DUHDV ZLWK D KHDOWK\ HQYLURQPHQW DQG LQFUHDVHG H[SHQVHVIURPPHGLFDOFRVWV3ROOXWDQWVPD\DOVRORZHUYLVLELOLW\DQGFDXVHGDPDJHWRSURSHUW\ &HUWDLQDLUSROOXWDQWVDUHUHVSRQVLEOHIRUGLVFRORULQJSDLQWHGVXUIDFHVHDWLQJDZD\DWVWRQHVXVHG LQEXLOGLQJVGLVVROYLQJWKHPRUWDUWKDWKROGVEULFNVWRJHWKHUDQGFUDFNLQJWLUHVDQGRWKHULWHPV PDGHIURPUXEEHU
 )HGHUDO$PELHQW$LU4XDOLW\6WDQGDUGV
$$46

7KH)HGHUDO&OHDQ$LU$FW$PHQGPHQWRI

&$$
HVWDEOLVKHGQDWLRQDO$PELHQW$LU4XDOLW\
6WDQGDUGV
$$46
 ZLWK VWDWHV UHWDLQLQJ WKH RSWLRQ WR DGRSW PRUH VWULQJHQW VWDQGDUGV RU WR 69 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

LQFOXGH RWKHU SROOXWLRQ VSHFLHV  7KHVH VWDQGDUGV DUH WKH OHYHOV RI DLU TXDOLW\ FRQVLGHUHG VDIH ZLWKDQDGHTXDWHPDUJLQRIVDIHW\WRSURWHFWWKHSXEOLFKHDOWKDQGZHOIDUH7KH\DUHGHVLJQHGWR SURWHFW WKRVH ³VHQVLWLYH UHFHSWRUV´ PRVW VXVFHSWLEOH WR IXUWKHU UHVSLUDWRU\ GLVWUHVV VXFK DV DVWKPDWLFVWKHHOGHUO\YHU\\RXQJFKLOGUHQSHRSOHDOUHDG\ZHDNHQHGE\RWKHUGLVHDVHRULOOQHVV DQG SHUVRQV HQJDJHG LQ VWUHQXRXV ZRUN RU H[HUFLVH  +HDOWK\ DGXOWV FDQ WROHUDWH RFFDVLRQDO H[SRVXUH WR DLU SROOXWDQW FRQFHQWUDWLRQV FRQVLGHUDEO\ DERYH WKHVH PLQLPXP VWDQGDUGV EHIRUH DGYHUVHHIIHFWVDUHREVHUYHG
%RWKWKH6WDWHRI&DOLIRUQLDDQGWKHIHGHUDOJRYHUQPHQWKDYHHVWDEOLVKHGKHDOWKEDVHG$$46IRU VL[ DLU SROOXWDQWV  $V VKRZQ LQ 7DEOH  WKHVH SROOXWDQWV LQFOXGH R]RQH FDUERQ PRQR[LGH QLWURJHQ GLR[LGH VXOIXU GLR[LGH VXVSHQGHG SDUWLFXODWH PDWWHU 30 30
 DQG OHDG  ,Q
DGGLWLRQWKH6WDWHKDVVHWVWDQGDUGVIRUVXOIDWHVK\GURJHQVXOILGHYLQ\OFKORULGHDQGYLVLELOLW\ UHGXFLQJ SDUWLFOHV  7KHVH VWDQGDUGV DUH GHVLJQHG WR SURWHFW WKH KHDOWK DQG ZHOIDUH RI WKH SRSXODFHZLWKDUHDVRQDEOHPDUJLQRIVDIHW\
,Q DGGLWLRQ WR SULPDU\ DQG VHFRQGDU\ $$46 WKH 6WDWH RI &DOLIRUQLD KDV HVWDEOLVKHG D VHW RI HSLVRGH FULWHULD IRU R]RQH FDUERQ PRQR[LGH QLWURJHQ GLR[LGHVXOIXU GLR[LGH DQG SDUWLFXODWH PDWWHU7KHVHFULWHULDUHIHUWRHSLVRGHOHYHOVUHSUHVHQWLQJSHULRGVRIVKRUWWHUPH[SRVXUHWRDLU SROOXWDQWVWKDWDFWXDOO\WKUHDWHQSXEOLFKHDOWK
 $LU4XDOLW\0DQDJHPHQW3ODQQLQJ
7KH 6&$40' DQG WKH 6RXWKHUQ &DOLIRUQLD $VVRFLDWLRQ RI *RYHUQPHQWV 6&$*
 DUH WKH
DJHQFLHV UHVSRQVLEOH IRU SUHSDULQJWKH $LU 4XDOLW\0DQDJHPHQW 3ODQ $403
 IRUWKH 6&$%
6LQFH

DQXPEHURI$403VKDYHEHHQSUHSDUHG7KH

$403XSGDWHGLQ

DQG
UHSODFHG LQ  ZDV EDVHG RQ WKH 

 $403 DQG XOWLPDWHO\ WKH 

 $403 DQG ZDV
GHVLJQHG WR FRPSO\ ZLWK 6WDWH DQG )HGHUDO UHTXLUHPHQWV UHGXFH WKH KLJK OHYHO RI SROOXWDQW HPLVVLRQVLQWKH6&$%DQGHQVXUHFOHDQDLUIRUWKHUHJLRQWKURXJKYDULRXVFRQWUROPHDVXUHV7R DFFRPSOLVKLWVWDVNWKH

$403UHOLHGRQDPXOWLOHYHOSDUWQHUVKLSRIJRYHUQPHQWDODJHQFLHV DWWKH)HGHUDO6WDWH UHJLRQDODQGORFDOOHYHO7KHVHDJHQFLHV LHWKH86(3$&$5%ORFDO
JRYHUQPHQWV6&$*DQG6&$40'
DUHWKHFRUQHUVWRQHVWKDWLPSOHPHQW$403SURJUDPV
7KH$403DGRSWHGLQ$XJXVWXSGDWHGWKHDWWDLQPHQWGHPRQVWUDWLRQIRUWKH)HGHUDO VWDQGDUGV IRUR]RQHDQG30
 UHSODFHGWKH

DWWDLQPHQWGHPRQVWUDWLRQ IRUWKH)HGHUDO&2
VWDQGDUG DQG SURYLGHG D EDVLV IRU D PDLQWHQDQFH SODQ IRU &2 IRU WKH IXWXUH  DQG XSGDWHG WKH
PDLQWHQDQFHSODQIRUWKH)HGHUDO12VWDQGDUGWKDWWKH6&$%KDVPHWVLQFH


7KHPRVW UHFHQWFRPSUHKHQVLYHSODQZDVDGRSWHGRQ-XO\7KHFRPSUHKHQVLYH SODQLVGHVLJQHGWRPHHWWKH6WDWHDQG)HGHUDO&$$SODQQLQJUHTXLUHPHQWVDQGIRFXVHVRQR]RQH DQG 30  7KH  FRPSUHKHQVLYH SODQLQFRUSRUDWHV VLJQLILFDQW QHZ HPLVVLRQVLQYHQWRULHV DPELHQWPHDVXUHPHQWVVFLHQWLILFGDWDFRQWUROVWUDWHJLHVDQGDLUTXDOLW\PRGHOLQJ $UHDVWKDWPHHWWKHDPELHQWDLUTXDOLW\VWDQGDUGVDUHFODVVLILHGDV³DWWDLQPHQW´DUHDVZKLOHDUHDV WKDWGRQRWPHHWWKHVHVWDQGDUGVDUHFODVVLILHGDV³QRQDWWDLQPHQW´DUHDV7KHFODVVLILFDWLRQVIRU R]RQHQRQDWWDLQPHQWLQFOXGHDQGUDQJHLQPDJQLWXGHIURP PDUJLQDOPRGHUDWHVHULRXVVHYHUH
DQGH[WUHPH7KHDWWDLQPHQWVWDWXVIRUWKH6&$%LVLQFOXGHGLQ7DEOH 70 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH$PELHQW$LU4XDOLW\6WDQGDUGVIRU3ULRULW\3ROOXWDQWV 3ROOXWDQW $YHUDJLQJ
7LPH
&DOLIRUQLD
6WDQGDUG
)HGHUDO
3ULPDU\
6WDQGDUG
0DMRU3ROOXWDQW6RXUFHV
2]RQH
2
 KRXU 
SSP
 0RWRUYHKLFOHVSDLQWVFRDWLQJV
KRXUV  SSP DQGVROYHQWV
&DUERQ
0RQR[LGH
&2

KRXU SSP SSP ,QWHUQDOFRPEXVWLRQHQJLQHV
SULPDULO\JDVROLQHSRZHUHG
PRWRUYHKLFOHV KRXUV
SSP
SSP
1LWURJHQ
'LR[LGH
12

$QQXDO
$YHUDJH
 SSP 0RWRUYHKLFOHVSHWUROHXP
UHILQLQJRSHUDWLRQVLQGXVWULDO
VRXUFHVDLUFUDIWVKLSVDQG
UDLOURDGV KRXU SSP

6XOIXU'LR[LGH

62

$QQXDO
$YHUDJH
 SSP )XHOFRPEXVWLRQFKHPLFDO
SODQWVVXOIXUUHFRYHU\SODQWV
DQGPHWDOSURFHVVLQJ KRXU SSP

KRXUV SSP SSP
6XVSHQGHG
3DUWLFXODWH
0DWWHU

30

$QQXDO
$ULWKPHWLF
0HDQ
PJP
 PJP
'XVWDQGIXPHSURGXFLQJ
FRQVWUXFWLRQLQGXVWULDODQG
DJULFXOWXUDORSHUDWLRQV
FRPEXVWLRQDWPRVSKHULF
SKRWRFKHPLFDOUHDFWLRQVDQG
QDWXUDODFWLYLWLHV
HJZLQG
UDLVHGGXVWDQGRFHDQVSUD\V

KRXUV PJP
 PJP
6XVSHQGHG
3DUWLFXODWH
0DWWHU

30

$QQXDO
$ULWKPHWLF
0HDQ
PJP
 PJP
'XVWDQGIXPHSURGXFLQJ
FRQVWUXFWLRQLQGXVWULDODQG
DJULFXOWXUDORSHUDWLRQV
FRPEXVWLRQDWPRVSKHULF
SKRWRFKHPLFDOUHDFWLRQVDQG
QDWXUDODFWLYLWLHV
HJZLQG
UDLVHGGXVWDQGRFHDQVSUD\V

KRXUV
 PJP
/HDG
3E

0RQWKO\ PJP
 3UHVHQWVRXUFH
OHDGVPHOWHUV
EDWWHU\PDQXIDFWXULQJ 
UHF\FOLQJIDFLOLWLHV3DVWVRXUFH

FRPEXVWLRQRIOHDGHGJDVROLQH
4XDUWHUO\
 PJP
6XOIDWHV
62
 KRXUV PJP
 ,QGXVWULDOSURFHVVHV
SSP
SDUWVSHUPLOOLRQ
PJP
PLFURJUDPVSHUFXELFPHWHU

 VWDQGDUGLVQRWXVHGIRUWKLVSROOXWDQWGXUDWLRQE\WKLVHQWLW\ 71 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


7DEOH$WWDLQPHQW6WDWXVIRUWKH6&$%
3ROOXWDQW 6WDWH6WDWXV )HGHUDO6WDWXV
2]RQH
KRXU
 ([WUHPH1RQDWWDLQPHQW ([WUHPH1RQDWWDLQPHQW
XQGHUWKHSULRU

VWDQGDUG

2]RQH
KRXU
 ([WUHPH1RQ$WWDLQPHQW ([WUHPH
30 6HULRXV1RQDWWDLQPHQW 6HULRXV1RQDWWDLQPHQW
30 1RQDWWDLQPHQW 1RQDWWDLQPHQW
&2 $WWDLQPHQW $WWDLQPHQW0DLQWHQDQFH
12 $WWDLQPHQW $WWDLQPHQW0DLQWHQDQFH
2Q$SULO(3$VLJQHGDILQDOUXOHWRJUDQWUHTXHVWVWRUHFODVVLI\6&$%IURPVHYHUH WRH[WUHPH7KH6&$%DOVRLVGHVLJQDWHGDVDWWDLQPHQWRIWKH&$$46IRU62OHDGDQG VXOIDWHV$UHDVWKDWDUHGHVLJQDWHGDV6HYHUHIRUWKHR]RQHVWDQGDUGPXVWPHHWDWWDLQPHQWRI WKHKRXUVWDQGDUGE\
LIUHFODVVLILHGWR([WUHPH
$UHDVFRQVLGHUHGDVVHULRXVQRQ
DWWDLQPHQW RI WKH 30 VWDQGDUGV PXVW KDYH UHDFKHG DWWDLQPHQW E\ WKH HQG RI  RU DV H[SHGLWLRXVO\DVSRVVLEOH7KH30DWWDLQPHQWGDWHLVWREHPHWLQWKH\HDU *HQHUDO&RQIRUPLW\
7KH(3$HVWDEOLVKHGWKH*HQHUDO&RQIRUPLW\5XOHRQ1RYHPEHU

7KHUXOHLPSOHPHQWV
WKH &$$ FRQIRUPLW\ SURYLVLRQ ZKLFK PDQGDWHV WKDW WKH )HGHUDO JRYHUQPHQW QRW HQJDJH VXSSRUWRUSURYLGH ILQDQFLDODVVLVWDQFH IRUOLFHQVLQJRUSHUPLWWLQJRUDSSURYHDQ\DFWLYLW\QRW FRQIRUPLQJWRDQDSSURYHG&$$LPSOHPHQWDWLRQSODQ7KHSXUSRVHRIWKH*HQHUDO&RQIRUPLW\ 5XOH ZDVWR HQVXUHWKDW )HGHUDO DFWLYLWLHV GR QRW KDPSHUORFDO HIIRUWVWR FRQWURO DLU SROOXWLRQ 7KHWRWDOTXDQWLILHGHPLVVLRQVRIQRQDWWDLQPHQWRUPDLQWHQDQFHSROOXWDQWVIURPERWKGLUHFWDQG LQGLUHFWVRXUFHVLVFRPSDUHGWRUDWHVOLVWHGLQ7LWOH3DUW6HFWLRQ E
FRQVLGHUHGWKH
de minimis OHYHOV ZKHUHLIWKH\ DUH GHWHUPLQHGWR H[FHHGWKRVHOHYHOVWKH )HGHUDO DJHQF\LV UHTXLUHGWRFRQGXFWD&RQIRUPLW\'HWHUPLQDWLRQ
6LQFHDOORQVKRUHDFWLYLWLHVDUHORFDWHGDWWKHPDLQSURMHFWVLWHLQ6DQ&OHPHQWHWKHde minimis OHYHOVDUHEDVHGRQDWWDLQPHQWGHVLJQDWLRQVFODVVLILFDWLRQVLQWKH6&$%7DEOHDVKRZVWKH *HQHUDO&RQIRUPLW\de minimisOHYHOV
7DEOHD*HQHUDO&RQIRUPLW\'H0LQLPLV/HYHOV
3ROOXWDQW &ODVVLILFDWLRQ 7RQV\U
2]RQH ([WUHPH 
30 6HULRXV 
&2 0DLQWHQDQFH 
12 0DLQWHQDQFH 
72 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 6WDQGDUG&RQGLWLRQVDQG8QLIRUP&RGHV
$OO SURMHFWV FRQVWUXFWHGLQWKH 6&$% DUH VXEMHFWWR 6WDQGDUG&RQGLWLRQV DQG 8QLIRUP&RGHV &RPSOLDQFHZLWKWKHVHSURYLVLRQVLVPDQGDWRU\DQGDVVXFKGRHVQRWFRQVWLWXWHPLWLJDWLRQXQGHU &(4$  7KRVH FRQGLWLRQV VSHFLILF WR DLU TXDOLW\ WKDW ZRXOG DSSO\ WR WKH 3URMHFW DUH LQFOXGHG EHORZ

x $GKHUHQFHWR6&$40'5XOHZKLFKVHWVUHTXLUHPHQWVIRUGXVWFRQWURO DVVRFLDWHGZLWKJUDGLQJDQGFRQVWUXFWLRQDFWLYLWLHV
x $GKHUHQFHWR6&$40'5XOHVDQGZKLFKUHTXLUHWKHXVHRIORZ VXOIXUIXHOIRUVWDWLRQDU\FRQVWUXFWLRQHTXLSPHQW
'XULQJ FRQVWUXFWLRQ WKH SURMHFW ZRXOG EH VXEMHFW WR 6&$40' 5XOH  IXJLWLYH GXVW

6&$40'5XOHGRHVQRWUHTXLUHDSHUPLWIRUFRQVWUXFWLRQDFWLYLWLHVSHUVHEXWUDWKHUVHWV IRUWKJHQHUDODQG VSHFLILF UHTXLUHPHQWV IRUDOOFRQVWUXFWLRQ VLWHV DVZHOODVRWKHU IXJLWLYHGXVW

VRXUFHV
 LQ WKH 6&$%  7KH JHQHUDO UHTXLUHPHQW SURKLELWV D SHUVRQ IURP FDXVLQJ RU DOORZLQJ HPLVVLRQVRIIXJLWLYHGXVWIURPFRQVWUXFWLRQ
RURWKHUIXJLWLYHGXVWVRXUFH
VXFKWKDWWKHSUHVHQFH
RIVXFKGXVWUHPDLQVYLVLEOHLQWKHDWPRVSKHUHEH\RQGWKHSURSHUW\OLQHRIWKHHPLVVLRQVVRXUFH 6&$40' 5XOH  DOVR SURKLELWV D FRQVWUXFWLRQ VLWH IURP FDXVLQJ DQ LQFUHPHQWDO 30 FRQFHQWUDWLRQ LPSDFW DW WKH SURSHUW\ OLQH RI PRUH WKDQ  PLFURJUDPV SHU FXELF PHWHU DV GHWHUPLQHGWKURXJK30KLJKYROXPHVDPSOLQJEXWWKHFRQFHQWUDWLRQVWDQGDUGDQGDVVRFLDWHG 30 VDPSOLQJ GR QRW DSSO\ LI VSHFLILF PHDVXUHV LGHQWLILHG LQ WKH UXOH DUH LPSOHPHQWHG DQG DSSURSULDWHO\GRFXPHQWHG
 *UHHQKRXVH*DV(PLVVLRQV
,QLQ UHFRJQLWLRQRI&DOLIRUQLD¶VYXOQHUDELOLW\WRWKHHIIHFWVRIFOLPDWHFKDQJH*RYHUQRU 6FKZDU]HQHJJHUHVWDEOLVKHG([HFXWLYH2UGHU6ZKLFKVHWVIRUWKDVHULHVRIWDUJHWGDWHVE\ ZKLFKVWDWHZLGHHPLVVLRQRIJUHHQKRXVHJDVZRXOGEHSURJUHVVLYHO\UHGXFHGDVIROORZV 
x %\UHGXFHJUHHQKRXVHJDVHPLVVLRQVWROHYHOV 
x %\UHGXFHJUHHQKRXVHJDVHPLVVLRQVWR

OHYHOV
DQG
x %\UHGXFHJUHHQKRXVHJDVHPLVVLRQVWRSHUFHQWEHORZ

OHYHOV
,Q  &DOLIRUQLD SDVVHG WKH &DOLIRUQLD *OREDO :DUPLQJ 6ROXWLRQV $FW RI  $% 

&DOLIRUQLD+HDOWKDQG6DIHW\&RGH'LYLVLRQ6HFWLRQVHWVHT ZKLFKUHTXLUHV&$5%
WRGHVLJQDQGLPSOHPHQWHPLVVLRQOLPLWVUHJXODWLRQVDQGRWKHUPHDVXUHVVXFKWKDWIHDVLEOHDQG FRVWHIIHFWLYH VWDWHZLGH JUHHQKRXVH JDV HPLVVLRQV DUH UHGXFHG WR 

 OHYHOV E\ 

UHSUHVHQWLQJDQDSSUR[LPDWHSHUFHQWUHGXFWLRQLQHPLVVLRQV 
'LVFUHWHHDUO\DFWLRQPHDVXUHVDUHPHDVXUHVWKDWZLOOEHLQSODFHDQGHQIRUFHDEOHE\-DQXDU\   7KH GLVFUHWH HDUO\ DFWLRQ LWHPV LQFOXGH


 D /RZ &DUERQ )XHO VWDQGDUGV IRU HWKDQRO
ELRGLHVHOK\GURJHQHOHFWULFLW\FRPSUHVVHGQDWXUDOJDVOLTXHILHGSHWUROHXPJDVDQGELRJDV 


73 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

UHVWULFWLRQVRQ+LJK*OREDO:DUPLQJ3RWHQWLDO5HIULJHUDQWV 

/DQGILOO0HWKDQH&DSWXUH



6PDUWZD\7UXFN(IILFLHQF\


3RUW(OHFWULILFDWLRQ


5HGXFWLRQRISHUIOXRURFDUERQVIURPWKH
VHPLFRQGXFWRULQGXVWU\


5HGXFWLRQ RI SURSHOODQWVLQ FRQVXPHU SURGXFWV


 7LUHLQIODWLRQ

DQG

6XOIXU+H[DIOXRULGH
6)
UHGXFWLRQVIURPQRQHOHFWULFLW\VHFWRU
7KH  WDUJHW UHGXFWLRQV DUH FXUUHQWO\ HVWLPDWHG WR EH  PLOOLRQ PHWULF WRQV RI FDUERQ GLR[LGH
&2
 HTXLYDOHQW
007&2(
  ,Q WRWDO WKH UHFRPPHQGHG HDUO\ DFWLRQV KDYH WKH SRWHQWLDO WR UHGXFH JUHHQKRXVH JDV HPLVVLRQV E\ DW OHDVW  007&2( HPLVVLRQV E\  UHSUHVHQWLQJDERXW  SHUFHQW RIWKHHVWLPDWHG UHGXFWLRQV QHHGHG E\ 7KH&$5%%RDUG DGRSWHG 5HVROXWLRQ  LQ 'HFHPEHU  DSSURYLQJ  007&2( DV WKH VWDWHZLGH JUHHQKRXVHJDVHPLVVLRQVOLPLWIRUZKLFKLVHTXLYDOHQWWRWKH

HPLVVLRQVOHYHO7KH
PHDVXUHV DUH LQ WKH VHFWRUV RI IXHOV WUDQVSRUWDWLRQ IRUHVWU\ DJULFXOWXUH HGXFDWLRQ HQHUJ\ HIILFLHQF\FRPPHUFLDOVROLGZDVWHFHPHQWRLODQGJDVHOHFWULFLW\DQGILUHVXSSUHVVLRQ  *HRORJ\DQG7RSRJUDSK\
7KLVGLVFXVVLRQRIWKHH[LVWLQJWRSRJUDSKLFDQGJHRORJLFIHDWXUHVRIWKH3URMHFWDUHDZDVEDVHG RQ WKH *HRWHFKQLFDO 5HSRUW SUHSDUHG E\ WKH *HRWHFKQLFDO %UDQFK RI WKH 86$&( 86$&(
E
DQGWKH&RDVWDO(QJLQHHULQJ$SSHQGL[WRWKH6DQ&OHPHQWH6KRUHOLQH)HDVLELOLW\6WXG\

86$&( 
$SSHQGL['
7KRVH UHSRUWV FRQWDLQ D VXPPDU\ RI JHRORJLF FRQGLWLRQVLQWKH 3URMHFWDUHDDVZHOODVWKHUHVXOWVRIVHGLPHQWWHVWLQJSHUIRUPHGE\WKH86$&(LQ

DQG
DQG6$1'$*LQ


7KHVKRUHOLQHLQWKH3URMHFWDUHDFRQVLVWVPDLQO\RIQDUURZJHQWO\WRPRGHUDWHO\VORSLQJVDQG\ EHDFKHVEDFNHGE\KLJKFRDVWDOEOXIIV7KLVVDQG\EHDFKJUDGHVLQWRDIRUHVKRUHFRQVLVWLQJRI FREEOHDQGJUDYHOSRFNHWVDWWKHZDWHU¶VHGJH$W0DULSRVD3RLQWORFDWHGVRPH IHHW

PHWHUV
QRUWKZHVWRIWKH6DQ&OHPHQWH3LHURIIVKRUHURFNVDQGERXOGHUVSURWUXGHIURPWKHKLJK LQWHUWLGDOVDQGEHDFKDQGEHFRPHWKHGRPLQDQWKDELWDWW\SHWKURXJKRXWWKHPLGDQGORZLQWHUWLGDO ]RQHV7KHH[WHQVLYHURFN\LQWHUWLGDOKDELWDWDW0DULSRVD3RLQWFRQVLVWVRIDVHULHVRIORZO\LQJ VKDOHUHHISODWIRUPVWKDWEHJLQPLGEHDFKDQGH[WHQGLQWRWKHVXEWLGDO]RQHDORQJZLWKLQGLYLGXDO KLJKUHOLHIERXOGHUV
 2IIVKRUH
7KHDUHDRIIVKRUHRI6DQ&OHPHQWHLVDSDUWRIWKH&DSLVWUDQR%LJKWORFDWHGDWWKHHDVWHUQHGJH RIWKH*XOIRI6DQWD&DWDOLQD7KLVDUHDLVGHVFULEHGDVWKDWSDUWRIWKH&DOLIRUQLDFRDVWNQRZQDV WKH³&RQWLQHQWDO%RUGHUODQG´DVWKHUHLVQRUHDOFRQWLQHQWDOVKHOILQWKLVSDUWRIWKHFRDVW7KH DUHD IURP'DQD3RLQW+DUERULQ2UDQJH&RXQW\GRZQFRDVWWR/D-ROODLQ6DQ'LHJR&RXQW\LV IXUWKHUGHILQHGDVWKH³2FHDQVLGH/LWWRUDO&HOO´6DQ&OHPHQWH%HDFKLVORFDWHGLQWKHH[WUHPH XSSHUSRUWLRQRIWKLV/LWWRUDO&HOO3XEOLVKHGLQIRUPDWLRQIRUWKHEHGURFNH[SRVXUHVRIPRVWRI WKH RIIVKRUH DUHD H[FOXVLYH RI 6DQ&OHPHQWH%HDFK DQGWKH&KDQQHO ,VODQGVLV VSDUVH DQGLV EDVHGXSRQVFDWWHUHGERWWRPVDPSOHVDQGUHFRQQDLVVDQFHW\SHJHRSK\VLFDOLQYHVWLJDWLRQV/RFDO OLIHJXDUGV DQG GLYHUV KDYHLQIRUPDOO\ VWDWHGWKDWWKH RFHDQ IORRU DUHD RIIVKRUH FRQWDLQHG RQO\ EHGURFNDQGWKHUHZHUHQRGHSRVLWVRIEHDFKVDQG
74 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,Q0D\EDWK\PHWULFVXUYH\VVHLVPLFVXUYH\VVXEERWWRPSURILOLQJDQGDVLGHVFDQVRQDU VXUYH\ZHUHFRQGXFWHGRIIVKRUHRI6DQ&OHPHQWH%HDFKWRGHWHUPLQHWKHSUHVHQFHRUDEVHQFHRI VKDOORZ EHGURFN  7KH EDWK\PHWULF VXUYH\ LQGLFDWHV WKDW WKH RFHDQ ERWWRP VORSHV JUDGXDOO\ VHDZDUGVIURPDQHOHYDWLRQ0HDQ/RZHU/RZ:DWHU
0//:
DWWKHVKRUHOLQHWRDQHOHYDWLRQ
GHHSHUWKDQIW
P
0//:DWDGLVWDQFHRIDERXW
PL
P
IURPVKRUH7KH
VHDIORRUVORSHGLUHFWLRQLVVRXWKZHVWQRUPDOWRWKHEHDFK7KHVHDIORRUJUDGLHQWDYHUDJHV 
SHUFHQW
VORSH+
9
EXWYDULHVORFDOO\7KHLQVKRUHJUDGLHQWEHWZHHQWRIW WRP

LVSHUFHQWRII6DQ&OHPHQWH%HDFKDQGGHFUHDVHVIDUWKHUWRWKHQRUWKZHVW 7KHJHRSK\VLFDOVXUYH\VIXUWKHULQGLFDWHGWKDWWKHRFHDQIORRULVDEHGURFNVXUIDFHFRYHUHGZLWK DWKLQYHQHHURIOLWWRUDOVHGLPHQWVWKDWYDU\LQWKLFNQHVVIURPDERXWWRDERXWIW P
RU
PRUHRXWWRDGLVWDQFHRI
IW
P
IURPWKHVKRUHOLQH7KLVVXUILFLDOVHGLPHQWFRYHU
OLNHO\FKDQJHVVHDVRQDOO\DVEHDFKVDQGVPLJUDWHFURVVVKRUH 6HYHUDOEHGURFNVSXUVH[WHQGRXWIURPVKRUH
WKHODUJHVWRQHLVWKHVHDZDUGH[WHQVLRQRIWKH6DQ
0DWHR3RLQW7KHVHVSXUVPD\ULVHVHYHUDOPHWHUVDERYHWKHLQWHUYHQLQJVZDOHV7KH6DQ0DWHR 5RFNVQRUWKZHVWRI6DQ0DWHR3RLQWDUHLVRODWHGDQGPD\EHUHPQDQWVSXUV%HGURFNRXWFURSV WKH VHDIORRULQ SODFHV EHWZHHQWKH VKRUH DQG DERXWWKH  IW P
LVREDWK:KHUH RXWFURSV
RFFXUWKH VHDIORRULV XQHYHQ IURPWKH UHVLVWDQW EHGURFNPRXQGV6RPH RIWKHODUJHU RXWFURSV ULVH DV PXFK DV  IW
 P
 DERYH WKH VXUURXQGLQJ VHDEHG  7KH WRSRJUDSK\ VHDZDUG RI WKH RXWFURSV LV D VPRRWK VHDIORRU ZLWK DQ HYHQ VORSH  7KH VPRRWK WH[WXUH LV WKH UHVXOW RI XQFRQVROLGDWHGUHFHQWVHGLPHQWGHSRVLWLRQ
7KHSURSRVHGERUURZDUHDIRUWKHEHDFKUHSOHQLVKPHQWLVORFDWHGDSSUR[LPDWHO\PL NP

GRZQFRDVW RI 6DQ &OHPHQWH %HDFK DSSUR[LPDWHO\  PL  NP
 QRUWK RI 2FHDQVLGH +DUERU
2FHDQVLGH&DOLIRUQLD7KHERUURZVLWHLVVDQGERWWRPDOWKRXJKVRPHDUWLILFLDOUHHIVKDYHEHHQ LGHQWLILHGLQWKHYLFLQLW\
6$1'$*

 2QVKRUH
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
)RUPDWLRQDVHULHVRIVLOW\VKDOHVPXGVWRQHVVLOWVWRQHVDQGFRDUVHVDQGVWRQHVRIODWH0LRFHQH DQGHDUO\3OLRFHQHDJH
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
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

PDULQH WHUUDFH GHSRVLWV RI 8SSHU 3OHLVWRFHQH DJH  7KH QRQPDULQH FRYHU FRQVLVWV RI SRRUO\ EHGGHG ILQHJUDLQHG VHGLPHQWV  7KH PDULQH WHUUDFH GHSRVLWV FRQVLVW RI SRRUO\ FRQVROLGDWHG VDQGV VDQGVWRQHV DQG FRQJORPHUDWHV  7KH EHDFK ZKLFK EHJLQV DW WKH IRRW RI WKH ZDYHFXW WHUUDFH LV FRPSRVHG RI ILQH WR PHGLXPJUDLQHG VDQGV DQG VLOW\ VDQGV  %HFDXVH RI YDULRXV VHDVRQDO F\FOHV RI VDQG GHSRVLWLRQ DQG HURVLRQ DQG WKH ODFN RI DGHTXDWH QDWXUDO EHDFK UH QRXULVKPHQWWKHEHDFKYDULHVLQZLGWKIURPWRIW WRP
:LWKLQWKH3URMHFWDUHDWKH
EHDFKZLGWKPHDQGHUV IURP IWZLGHWR IW
P
WR IWWR
 IW

P
DQGEDFNWR IW
DORQJWKHUHDFK
 *HRORJLF+D]DUGV
 /DQGVOLGHV
6HYHUDOODQGVOLGHVKDYHEHHQPDSSHGLQWKHKLOOVDQGPRXQWDLQVWKDWIRUPWKHHDVWHUQERXQGDU\ RI 6DQ&OHPHQWH%HDFK7KHVH DUH VKRZQ RQ DQ DFFRPSDQ\LQJ JHRORJLFPDS ³1DWXUDO 6ORSH 6WDELOLW\DV5HODWHGWR*HRORJ\6DQ&OHPHQWH$UHD2UDQJHDQG6DQ'LHJR&RXQWLHV&DOLIRUQLD 6SHFLDO5HSRUW
´SXEOLVKHGE\WKH&DOLIRUQLD'LYLVLRQRI0LQHVDQG*HRORJ\7KHJHRORJLF PDSLQGLFDWHVWKDWWKHUHDUHVHYHQVPDOODUHDVRIWKHEOXIIEHKLQGWKHEHDFKH[WHQGLQJIURPWKH 6DQ&OHPHQWH3LHUWR6DQ0DWHR3RLQWZKLFKFRQWDLQODQGVOLGHGHSRVLWV1RQHRIWKHVHVOLGHV H[WHQGDOORIWKHZD\RQWRWKHEHDFKVRWKH\DUHQRWDSRWHQWLDOSUREOHPIRUEHDFKQRXULVKPHQW 1HLWKHUWKHOLWHUDWXUH VHDUFK QRUWKH RIIVKRUH VHLVPLF DQG VLGHVFDQ VRQDU VXUYH\VLQGLFDWH DQ\ ODQGVOLGHVRIIVKRUHRIWKHEHDFK
 6HLVPLFLW\
$OO RI VRXWKHUQ &DOLIRUQLD LQFOXGLQJ WKH 6DQ &OHPHQWH DUHD LV VHLVPLFDOO\ DFWLYH  7KHUH DUH VHYHUDOPDMRUQRUWKZHVWVRXWKHDVWWUHQGLQJIDXOWVLQERWKWKHRQVKRUHDQGWKHRIIVKRUHDUHDVHDVW DQG ZHVW RI 6DQ &OHPHQWH  7KH :KLWWLHU(OVLQRUH $JXD &DOLHQWH 6DQ -DFLQWR DQG WKH 6DQ $QGUHDV)DXOW]RQHVDUHORFDWHGDSSUR[LPDWHO\PL
NP
PL
NP
PL
NP

DQG  PL
 NP
 QRUWKHDVW RI 6DQ &OHPHQWH UHVSHFWLYHO\  7KH 1HZSRUW,QJOHZRRG±5RVH &DQ\RQ )DXOWOLHV DSSUR[LPDWHO\  PL
 NP
 RIIVKRUH RIWKH EHDFK  7KH 3DORV 9HUGHV )DXOW ]RQHSDUDOOHOVWKH3DFLILF&RDVWRIIVKRUHIURPWKH6DQ3HGUR±/RQJ%HDFKDUHDWR/D-ROODDQG OLHV DERXW  PL

 NP
 IURP WKH FRDVWOLQH  7KH 6DQ &OHPHQWH ,VODQG )DXOW ]RQH OLHV DSSUR[LPDWHO\ PL
 NP
 RIIVKRUHDQGLV SDUDOOHOWRWKH1HZSRUW,QJOHZRRG5RVH&DQ\RQ )DXOW]RQH7KHVHWKUHHIDXOWVWUHQGSDUDOOHOWRWKHRQVKRUHIDXOWV7KH&KULVWLDQLWRV)DXOWZKLFK LV WKH FORVHVW IDXOW WR WKH 3URMHFW DUHD WUHQGV QRUWKZHVWVRXWKHDVW DQG SDVVHV WKURXJK WKH PRXQWDLQ UDQJHV EHKLQG WKH 6DQ &OHPHQWH DUHD DQG WUHQGV GRZQ 6DQ 0DWHR &UHHN DQG JRHV RIIVKRUHWRSDUDOOHOWKHFRDVWOLQHQHDU6DQ2QRIUHLQDVRXWKHUO\GLUHFWLRQSDVW2FHDQVLGH7KH IDXOWLVORFDWHGDSSUR[LPDWHO\WRPL
NP
RIIVKRUHRI6DQ&OHPHQWH%HDFK7KLVZHOO
VWXGLHG IDXOW LV FRQVLGHUHG WR EH LQDFWLYH  7KLV LQIRUPDWLRQ LV EDVHG RQ WKH DEVHQFH RI GLVSODFHPHQWRIWKHERXOGHUOD\HUMXVWDERYHWKHSODWIRUPDQGDOVRWKHODFNRIGLVSODFHPHQWRIWKH

IW
P
RIRYHUO\LQJGDUNEURZQDOOXYLDOGHSRVLWVDERYH
76 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 6RLOV
$FFRUGLQJWRGDWDSXEOLVKHGE\86'HSDUWPHQWRI$JULFXOWXUH6RLO6XUYH\WKHVKRUHOLQHVRXWK RI'DQD3RLQWWKURXJK6DQ&OHPHQWHLVLQGLFDWHGDV%HDFKHV 
ZLWKWKHH[FHSWLRQRIWKHDUHD
EHWZHHQ'DQD3RLQWDQG'DQD&RYH
ZLWKLQ'DQD3RLQW+DUERU
7KDWDUHDLVOLVWHGDV&LHQHED
VDQG\ ORDP

  WR  SHUFHQW VORSH HURGHG  $GMDFHQW VRLOV IURP DW RU QHDU 3DVR 'H &ULVWREDO VRXWKZDUGWR6DQ0DWHR3RLQWDUHFRPSRVHGRI0\IRUG6DQG\/RDP 

WR
SHUFHQWVORSHVHURGHG
)URP 3DVHR 'H &ULVWREDO QRUWKZDUG QHDU 6DQ &OHPHQWH 3LHU DGMDFHQW VRLOV DUH ;HURUWKHQWV ORDP\

FXWDQG ILOODUHDV WR  SHUFHQW VORSHV1RUWK RI6DQ&OHPHQWH3LHUDGMDFHQW VRLOV QHDU WKH RXWIDOO RI 6HJXQGD 'HVKHFKD
FUHHN
 DUH &DOOHJXDV &OD\ ORDP

 LQ WKH
1RUWKHUQPRVW SRUWLRQ  WR  SHUFHQW VORSHV HURGHG DQG 6RUUHQWR FOD\ ORDP 

  WR

SHUFHQWVORSHVWRWKHVRXWKRI&DOOHJXDV&OD\ORDPDQG$ORHFOD\ 
WRSHUFHQWVORSHV
VRXWKRI6RUUHQWRFOD\ORDP
$VPDOODUHDQHDU3RFKHORFDWHGQHDUDWUDLOHUSDUNFRQVLVWVRI5LYHUZDVK 

ZLWK&URSOH\
FOD\


WR
SHUFHQWVORSHVRQHDFKVLGH&DSLVWUDQR%HDFKVRXWKZDUGWR3RFKHLVOLVWHGDV &LHQHEDVDQG\ORDP

WRSHUFHQWVORSHVHURGHG1HDU6DQ-XDQ&DSLVWUDQR6DQ-XDQ &UHHN DQG 7UDEXFR &UHHN FRQYHUJH ZLWK WKHLU FRPELQHG RXWIDOO DW 'RKHQ\ 6WDWH %HDFK

&DSLVWUDQR%HDFK
7KHVHVRLOVDUHGHSLFWHGDV5LYHUZDVK


DQG0HW]ORDP\VDQG

RQ
ERWKVLGHVRIWKHRXWIDOO
 :DWHU4XDOLW\6HGLPHQWVDQG2FHDQRJUDSK\
:DWHU TXDOLW\ LV DIIHFWHG E\ D YDULHW\ RI IDFWRUV LQFOXGLQJ RFHDQRJUDSKLF SURFHVVHV FOLPDWLF FRQGLWLRQV DWPRVSKHULF IDOORXW ULYHU UXQRII PXQLFLSDO ZDVWHZDWHU RXWIDOOV PLQRU LQGXVWULDO RXWIDOOV QRQSRLQW VRXUFH UXQRII DQG YHVVHO GLVFKDUJHV  &XUUHQWV ZDYHV DQG VHDVRQDO YDULDWLRQVDVZHOODVHSLVRGLFHYHQWVVXFKDV(O1LxR6RXWKHUQ2VFLOODWLRQ (162
FRQGLWLRQV
DUHWKHPDLQIDFWRUVWKDWDIIHFWIOXFWXDWLRQVIURPVXUIDFHWRERWWRPZDWHUV 5LYHUV DQG VWUHDPV GLVFKDUJH DQG WUDQVSRUW IUHVKZDWHU VXVSHQGHG VHGLPHQWV WXUELGLW\

QXWULHQWV GHEULV DQG FRQWDPLQDQWV IURP DJULFXOWXUDO DQG XUEDQ UXQRII WR QHDUVKRUH ZDWHUV 2FHDQZDVWHZDWHURXWIDOOVGLVFKDUJHWUHDWHGVHZDJHHIIOXHQWZKLFKLQWURGXFHVVXVSHQGHGVROLGV DQGSROOXWDQWVWRWKHPDULQHHQYLURQPHQW6WRUPGUDLQVZLWKFRDVWDORXWOHWVLQWURGXFHQRQSRLQW VRXUFHLQSXWVRISROOXWDQWVDQGGHEULVWRWKHRFHDQ
7KHPRXWKVRIWZRVWUHDPVDUHZLWKLQPL
NP
RIWKHEHDFKSODFHPHQWDUHD
WKHPRXWKRI
3ULPD 'HVKHFKD&DxDGD&UHHN ZKLFKLV DSSUR[LPDWHO\ PL  NP
 QRUWKZHVW RIWKH VWXG\
DUHD ERXQGDU\ DQG GLVFKDUJHV WR WKH RFHDQ DW 3RFKH %HDFK DQG 6HJXQGD 'HVKHFKD &DxDGD &UHHN ZKLFK LV DSSUR[LPDWHO\  PL
 NP
 QRUWKZHVW RI WKH VWXG\ DUHD ERXQGDU\ DQG
GLVFKDUJHVWRWKH RFHDQ DW1RUWK%HDFK 6HYHUDO VWRUP GUDLQ RXWOHWV DUH DOVRZLWKLQWKH VWXG\ DUHD 7ZRPDMRU ULYHUV HQWHUWKH RFHDQ QHDUWKH 2FHDQVLGH ERUURZ VLWH 7KHVH DUHWKH 6DQWD 0DUJDULWD5LYHUDQGWKH6DQ/XLV5H\5LYHU,QDGGLWLRQWKH&LW\RI2FHDQVLGH¶V2FHDQRXWIDOO GLVFKDUJHVDQDYHUDJHRIDERXWPLOOLRQJDOORQVSHUGD\RIWUHDWHGVHZDJHWKURXJKDIRRW

P
ORQJGLIIXVHUVHFWLRQDWDGHSWKRIDSSUR[LPDWHO\IHHW P

77 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

6HYHUDOZDWHUTXDOLW\PRQLWRULQJSURJUDPVKDYHVWXG\ORFDWLRQVZLWKLQWKHVWXG\DUHDDQGLQWKH ZDWHUVKHGVZKLFKGUDLQLQWRWKHVWXG\DUHDLQRUGHUWRFRPSDUHFRQGLWLRQVRIWKHZDWHUVWRWKH ZDWHUTXDOLW\REMHFWLYHVVHWIRUWKE\WKH&DOLIRUQLD2FHDQ3ODQ 6:5&%
DQGUHTXLUHPHQWV
RIRWKHUUHJXODWLRQV7KHREMHFWLYHVHVWDEOLVKHGLQWKH&DOLIRUQLD2FHDQ3ODQWRSURWHFWPDULQH DTXDWLFOLIHDUHJLYHQLQ7DEOH7KHREMHFWLYHVUHSUHVHQWWKUHVKROGVEHORZZKLFKEHQHILFLDO XVHV RIZDWHUVZLOO EH XQLPSDLUHG5HOHYDQW EDVHOLQH SK\VLFDO DQG FKHPLFDO FKDUDFWHULVWLFV RI ZDWHUVZLWKLQWKHVWXG\DUHDDUHGHVFULEHGLQ6HFWLRQEDFWHULDOFKDUDFWHULVWLFVDUHGHVFULEHG LQ6HFWLRQDQGVHGLPHQWVDUHGHVFULEHGLQ6HFWLRQ $&:$
E


DQDO\VLVWKDWLVFRPSOHWHDQGLVSURYLGHGLQ$SSHQGL[$LQDFFRUGDQFHZLWK 6HFWLRQ
E


RIWKH)HGHUDO:DWHU3ROOXWLRQ&RQWURO$FW$PHQGPHQWVRI 
3XEOLF/DZ


DVDPHQGHG E\WKH&OHDQ:DWHU$FW RI 

3XEOLF/DZ

7KHLQWHQW RIWKH
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
D


8SRQUHYLHZRIWKHVXEPLWWDOWKH5:4&%ZRXOGHYDOXDWHLILVVXDQFHRID6HFWLRQ ZDWHU TXDOLW\ FHUWLILFDWLRQ LV DSSURSULDWH  86$&( ZLOO FRQWLQXH WR FRRUGLQDWH ZLWK WKH 5:4&% WKURXJKRXW WKH UHPDLQLQJ VWXG\ GHVLJQ DQG FRQVWUXFWLRQ SKDVHV RI WKLV SURMHFW 86$&(KDVGHWHUPLQHGWKDWIXOOFRPSOLDQFHZLWK&:$6HFWLRQLVPHWDQGWKXVPD\LQYRNH LIQHHGHG&:$
U
RQFHWKHSURMHFWLVDXWKRUL]HGE\&RQJUHVV
78 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH&DOLIRUQLD2FHDQ3ODQ:DWHU4XDOLW\2EMHFWLYHV $ %DFWHULDO&KDUDFWHULVWLFV
 :DWHU&RQWDFW6WDQGDUGV
  :LWKLQD]RQHERXQGHGE\WKHVKRUHOLQHDQGDGLVWDQFHRIIHHW PHWHUV
IURPWKHVKRUHOLQHRUWKHIRRW


PHWHU
 GHSWK FRQWRXU ZKLFKHYHULV IXUWKHU IURPWKH VKRUHOLQH DQGLQ DUHDV RXWVLGHWKLV ]RQH XVHG IRU ZDWHU FRQWDFW VSRUWV DV GHWHUPLQHG E\WKH5HJLRQDO%RDUG EXWLQFOXGLQJDOONHOS EHGVWKH IROORZLQJ EDFWHULDO REMHFWLYHV VKDOO EH PDLQWDLQHGWKURXJKRXWWKHZDWHUFROXPQ

  GD\*HRPHWULF0HDQ WKH IROORZLQJ VWDQGDUGVDUH EDVHG RQWKH JHRPHWULFPHDQ RIWKH ILYHPRVW UHFHQW VDPSOHV IURPHDFKVLWH

    7RWDOFROLIRUPGHQVLW\VKDOOQRWH[FHHGSHUPO 
    )HFDOFROLIRUPGHQVLW\VKDOOQRWH[FHHGSHUPO DQG
    (QWHURFRFFXVGHQVLW\VKDOOQRWH[FHHGSHUPO    6LQJOH6DPSOH0D[LPXP

    7RWDOFROLIRUPGHQVLW\VKDOOQRWH[FHHGSHUPO 
    )HFDOFROLIRUPGHQVLW\VKDOOQRWH[FHHGSHUPO 
    (QWHURFRFFXVGHQVLW\VKDOOQRWH[FHHGSHUPO DQG
   7RWDOFROLIRUPGHQVLW\VKDOOQRWH[FHHGSHUPOZKHQWKHIHFDOFROLIRUPWRWDOFROLIRUPUDWLRH[FHHGV    7KH³,QLWLDO'LOXWLRQ=RQH´RIZDVWHZDWHURXWIDOOVVKDOOEHH[FOXGHGIURPGHVLJQDWLRQDV³NHOSEHGV´IRUSXUSRVHVRI EDFWHULDOVWDQGDUGVDQG5HJLRQDO%RDUGVVKRXOGUHFRPPHQGH[WHQVLRQRIVXFKH[FOXVLRQ]RQHZKHUHZDUUDQWHGWRWKH 6WDWH %RDUG
IRU FRQVLGHUDWLRQ XQGHU &KDSWHU ,,,+
 $GYHQWLWLRXV DVVHPEODJHV RI NHOS SODQWV RQ ZDVWH GLVFKDUJH VWUXFWXUHV
HJRXWIDOOSLSHVDQGGLIIXVHUV
GRQRWFRQVWLWXWHNHOSEHGVIRUSXUSRVHGRIEDFWHULDOVWDQGDUGV  6KHOOILVK+DUYHVWLQJ6WDQGDUGV
   $W DOO DUHDV ZKHUH VKHOOILVK PD\ EH KDUYHVWHG IRU KXPDQ FRQVXPSWLRQ DV GHWHUPLQHG E\ WKH 5HJLRQDO %RDUG WKH IROORZLQJEDFWHULDOREMHFWLYHVVKDOOEHPDLQWDLQHGWKURXJKRXWWKHZDWHUFROXPQ 
   7KHPHGLDQWRWDOFROLIRUPGHQVLW\VKDOOQRWH[FHHGSHUPODQGQRWPRUHWKDQSHUFHQWRIWKHVDPSOHVVKDOO H[FHHGSHUPO
% %DFWHULDO$VVHVVPHQWDQG5HPHGLDO$FWLRQ5HTXLUHPHQWV 'HVFULEHVJXLGHOLQHVIRUPRQLWRULQJHQWHURFRFFXVEDFWHULD 6HH3ODQIRUIXOOGHVFULSWLRQ

& 3K\VLFDO&KDUDFWHULVWLFV
   )ORDWLQJSDUWLFXODWHVDQGJUHDVHDQGRLOVKDOOQRWEHYLVLEOH    7KHGLVFKDUJHRIWKHZDVWHVKDOOQRWFDXVHDHVWKHWLFDOO\XQGHVLUDEOHGLVFRORUDWLRQRIWKHRFHDQVXUIDFH    1DWXUDOOLJKWVKDOOQRWEHVLJQLILFDQWO\UHGXFHGDWDQ\SRLQWRXWVLGHWKHLQLWLDOGLOXWLRQ]RQHDVDUHVXOWRIWKHGLVFKDUJH RIZDVWH
   7KHUDWHRIGHSRVLWLRQRILQHUWVROLGVDQGWKHFKDUDFWHULVWLFVRILQHUWVROLGVLQRFHDQVHGLPHQWVVKDOOQRWEHFKDQJHGVXFK WKDWEHQWKLFFRPPXQLWLHVDUHGHJUDGHG
' &KHPLFDO&KDUDFWHULVWLFV
   7KH GLVVROYHG R[\JHQ FRQFHQWUDWLRQ VKDOO QRW DW DQ\ WLPH EH GHSUHVVHG PRUH WKDQ  SHUFHQW IURP ZKLFK RFFXUV QDWXUDOO\DVDUHVXOWRIWKHGLVFKDUJHRIR[\JHQGHPDQGLQJZDVWHPDWHULDOV    7KHS+VKDOOQRWEHFKDQJHGDWDQ\WLPHPRUHWKDQXQLWVIURPWKDWZKLFKRFFXUVQDWXUDOO\    7KH GLVVROYHG VXOILGH FRQFHQWUDWLRQ RI ZDWHUV LQ DQG QHDUVHGLPHQWV VKDOO QRW EH VLJQLILFDQWO\LQFUHDVHG DERYH WKDW SUHVHQWXQGHUQDWXUDOFRQGLWLRQV
   7KHFRQFHQWUDWLRQRIVXEVWDQFHVVHW IRUWKLQ&KDSWHU ,L7DEOH%LQPDULQHVHGLPHQWVVKDOOQRWEHLQFUHDVHGWROHYHOV ZKLFKZRXOGGHJUDGHLQGLJHQRXVELRWD
   7KH FRQFHQWUDWLRQ RI RUJDQLF PDWHULDOV LQ PDULQH VHGLPHQWV VKDOO QRW EH LQFUHDVHG WR OHYHOV ZKLFK ZRXOG GHJUDGH PDULQHOLIH
   1XWULHQWPDWHULDOVVKDOOQRWFDXVHREMHFWLRQDEOHDTXDWLFJURZWKVRUGHJUDGHLQGLJHQRXVELRWD ( %LRORJLFDO&KDUDFWHULVWLFV
   0DULQHFRPPXQLWLHVLQFOXGLQJYHUWHEUDWHLQYHUWHEUDWHDQGSODQWVSHFLHVVKDOOQRWEHGHJUDGHG    7KHQDWXUDOWDVWHRGRUDQGFRORURIILVKVKHOOILVKRURWKHUPDULQHUHVRXUFHVXVHGIRUKXPDQFRQVXPSWLRQVKDOOQRWEH DOWHUHG
   7KHFRQFHQWUDWLRQRIRUJDQLFPDWHULDOVLQILVKVKHOOILVKRURWKHUPDULQHUHVRXUFHVXVHGIRUKXPDQFRQVXPSWLRQVKDOO QRWEHELRDFFXPXODWHGWROHYHOVWKDWDUHKDUPIXOWRKXPDQKHDOWK ) 5DGLRDFWLYLW\
   'LVFKDUJHRIUDGLRDFWLYHZDVWHVKDOOQRWGHJUDGHPDULQHOLIH 79 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 :DWHU&ROXPQ3K\VLFDODQG&KHPLFDO&KDUDFWHULVWLFV  7HPSHUDWXUH
2IIVKRUH ZDWHUV VXFK DV WKRVH DW WKH ERUURZ VLWH W\SLFDOO\ DUH VWUDWLILHG GHYHORSPHQW RI
WKHUPRFOLQHS\FQRFOLQH
 GXULQJ WKH VXPPHU DQG IDOO XQVWUDWLILHG GXULQJ WKH ZLQWHU DQG WUDQVLWLRQDO
HJ VWUDWLILFDWLRQ ZHDNHQLQJ RULQFUHDVLQJ
LQODWH IDOO DQG VSULQJ  7KHUPRFOLQHV
UHSUHVHQWEDUULHUVWRPL[LQJEHWZHHQVXUIDFHDQGERWWRPZDWHUV:DWHUWHPSHUDWXUHVLQWKHVWXG\ DUHD UDQJH IURP WR  ž)
WR 
 GHJUHHV&HOVLXV >ž&@
 QHDUWKH VXUIDFH
86$&(

  'XULQJ VXPPHU VXUIDFH ZDWHUV DUH XSWR  ž)  ž&
 ZDUPHUWKDQLQ GHHSHU ZDWHU
6KDOORZ QHDUVKRUH ZDWHUV DUH JHQHUDOO\ XQVWUDWLILHG \HDU URXQG GXH WR WXUEXOHQW PL[LQJ DQG VKDOORZHUGHSWKV
 6DOLQLW\
6DOLQLW\OHYHOVUDQJHIURPWRSDUWVSHUWKRXVDQG SSW
ZLWKLQWKHVWXG\DUHD
86$&(

1HDUVKRUHRFHDQVDOLQLW\LVJHQHUDOO\XQLIRUPIURPDSSUR[LPDWHO\WRSSW6HDVRQDOO\WKH QHDUVXUIDFH VDOLQLW\FDQGHFUHDVHQHDUWKH3ULPD'HVKHFKDDQG6HJXQGD'HVKHFKDZDWHUVKHGV IROORZLQJVWRUPUHODWHGGLVFKDUJHVRI IUHVKZDWHUDQGRU KLVWRULFDOO\
LQWHUPLWWHQWGLVFKDUJHVRI
VHZDJHLQWRWKHULYHU
 'LVVROYHG2[\JHQ
'LVVROYHG R[\JHQ YDOXHV UDQJH IURP  WR  PLOOLJUDPV SHU OLWHU PJ/

86$&( 

1DWXUDOGHYLDWLRQVRIGLVVROYHGR[\JHQUHVXOWIURPDFRPELQDWLRQRIIDFWRUVLQFOXGLQJLQWUXVLRQV RI ZDWHU PDVVHV SULPDU\ SURGXFWLRQ
SK\WRSODQNWRQ EORRPV
 DQG XSZHOOLQJGRZQ ZHOOLQJ
HYHQWV&RQFHQWUDWLRQVRIGLVVROYHGR[\JHQLQVXUIDFHDQGQHDUVKRUHZDWHUVJHQHUDOO\DUHKLJK GXHWRPL[LQJDWWKHZDWHUDWPRVSKHUHLQWHUIDFHDQGFRQWLQXRXVZDYHDFWLRQ  S+
9DOXHVIRUS+UDQJHIURPWRZLWKLQWKHVWXG\DUHD 86$&(
6OLJKWO\KLJKHUS+
OHYHOV RFFXU GXULQJ0D\ WKURXJK 6HSWHPEHU ZKHQ ZDWHU WHPSHUDWXUHV DUH ZDUPHU 6$1'$*


 6XVSHQGHG3DUWLFXODWH0DWWHU
7XUELGLW\
DQG/LJKW7UDQVPLVVLRQ
/LJKW SHQHWUDWLRQ LQ VHDZDWHU LV WKH OLPLWLQJ IDFWRU DVVRFLDWHG ZLWK SKRWRV\QWKHWLF JURZWK RI SK\WRSODQNWRQNHOSDQGRWKHUPDULQHSODQWV:DWHUVWHQGWREHPRUHWXUELGLQWKHZLQWHUGXHWR JUHDWHU ZDYH HQHUJ\ VXUIDFH UXQRII DQG ULYHU GLVFKDUJHV  5XQRII UHODWHG GLVFKDUJHV DQG DVVRFLDWHGQDWXUDOWXUELGLW\RFFXULQSXOVHVUDWKHUWKDQDVFRQWLQXDOGLVFKDUJHV &RQWLQHQWDO6KHOI
$VVRFLDWHV

2WKHU VHDVRQDO UHGXFWLRQVLQZDWHUFODULW\PD\RFFXULQ VSULQJDQG VXPPHU GXH WR SODQNWRQ DQG VXVSHQGHG SDUWLFOHV FRQFHQWUDWLQJ QHDU WKH WKHUPRFOLQH  3K\WRSODQNWRQ EORRPV
HJUHGWLGHV
PD\UHGXFHOLJKWWUDQVPLWWDQFH
WUDQVPLVVLYLW\
OHYHOVLQVXPPHUPRQWKV
80 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

:DWHU FODULW\ LV PHDVXUHG XVLQJ D YDULHW\ RI PHWKRGV LQFOXGLQJ SHUFHQW OLJKW WUDQVPLWWDQFH VXVSHQGHG VROLGV FRQFHQWUDWLRQ DQGWKH QHSKHORPHWULFPHWKRG ZKLFKPHDVXUHV DQG FRPSDUHV OLJKW VFDWWHUHG E\DZDWHU VDPSOHDQGOLJKW VFDWWHUHG E\D UHIHUHQFH VROXWLRQ ,Q JHQHUDOOLJKW WUDQVPLWWDQFHWHQGVWRLQFUHDVHDQGVXVSHQGHGVROLGFRQFHQWUDWLRQVGHFUHDVHZLWKGLVWDQFHIURP VKRUH7UDQVPLVVLYLW\OHYHOVW\SLFDOO\UDQJHIURPWR SHUFHQWRIIVKRUH
0(&



6LPLODUWRWUDQVPLVVLYLW\YDOXHVWRWDOVXVSHQGHGVROLGV LHSDUWLFXODWH
FRQFHQWUDWLRQVDUHORZHU
RIIVKRUH WKDQ QHDUVKRUH  +LJKHVW FRQFHQWUDWLRQV JHQHUDOO\ DUHUHFRUGHG DIWHU VWRUP HYHQWV RU RFFDVLRQDOO\LQWKHVXPPHUSUREDEO\GXHWRSK\WRSODQNWRQEORRPV 0(&



1HDUVKRUHPHDVXUHPHQWV UDQJLQJ IURPOHVVWKDQWR1HSKHORPHWULF7XUELGLW\8QLWV 178

UHSUHVHQWW\SLFDOEDFNJURXQGYDOXHV
KRZHYHUYDOXHVRIWR178DOVRKDYHEHHQUHSRUWHG DW ORFDWLRQV LQ QRUWKHUQ 6DQ 'LHJR &RXQW\
86$&( D
  7KHVH QDWXUDOO\ RFFXUULQJ
HOHYDWLRQVLQWXUELGLW\ZHUHUHODWHGWRKLJKZDYHVDQGRUVWRUPV  1XWULHQWV
1XWULHQWFRQFHQWUDWLRQV IRUQHDUVKRUHZDWHUVW\SLFDOO\DUHKLJKHUQHDUWKHERWWRPWKDQQHDUWKH VXUIDFHH[FHSWGXULQJXSZHOOLQJSHULRGV1HDUVKRUHQXWULHQWFRQFHQWUDWLRQVPD\EHHOHYDWHGLQ DUHDVRIZDVWHZDWHUGLVFKDUJHDQGQHDUWKHRXWOHWRIULYHUVODJRRQVED\VDQGKDUERUV 7\SLFDOQXWULHQWFRQFHQWUDWLRQVLQQHDUVKRUHZDWHUVRIWKH6RXWKHUQ&DOLIRUQLD%LJKW 6&%
DUH
QLWUDWHVDWDSSUR[LPDWHO\WRQDQRPROHVSHUOLWHU
SKRVSKDWHVDWDSSUR[LPDWHO\WR
QDQRPROHVSHUOLWHU
DQGDPPRQLXPDWDSSUR[LPDWHO\QDQRPROHVSHUOLWHU (JDQKRXVHDQG
9HQNWHVDQ 


  'LVFKDUJHV IURP 3ULPD 'HVKHFKD &DxDGD &UHHN DQG 6HJXQGD 'HVKHFKD &DxDGD&UHHNOLNHO\UHSUHVHQWDQLPSRUWDQWVHDVRQDOVRXUFHRIQXWULHQWVWRQHDUVKRUHZDWHUVRII 6DQ&OHPHQWH8SZHOOLQJHYHQWVDOVRFRQWULEXWHQXWULHQWVWRVXUIDFHZDWHUV  %DFWHULDO&KDUDFWHULVWLFV
6HYHUDOVWRUPGUDLQVKDYHRXWOHWVRQWREHDFKHVZLWKLQWKHVWXG\DUHDDQGLWVYLFLQLW\7KH&LW\RI 6DQ&OHPHQWHDQGWKH&RXQW\RI2UDQJHKDYHEHHQUHTXLUHGWRPRQLWRUEDFWHULDOOHYHOVDWVWRUP GUDLQRXWOHWVDQGLQWKHDGMDFHQWVXUI]RQHVLQFH-DQXDU\DVSDUWRIWKH&RDVWDO6WRUP'UDLQ 2XWIDOO0RQLWRULQJ
&6'0
3URJUDP
&RXQW\RI2UDQJHHWDO
)RUWKH&6'03URJUDP
PRQLWRULQJZDVFRQGXFWHGRQERWKWKHGLVFKDUJHIURPWKHVWRUPGUDLQDQGWKHVXUI]RQH\DUGV

PHWHUV
XSFRDVWDQG\DUGV
PHWHUV
GRZQFRDVWRIWKHVWRUPGUDLQWRRFHDQLQWHUIDFH
*UDE VDPSOHV ZHUH FROOHFWHG ZHHNO\ IRU WKH DQDO\VLV RI WRWDO FROLIRUP IHFDO FROLIRUP DQG (QWHURFRFFXV EDFWHULD  $Q HVWLPDWH RI WKH IORZ UDWH IURP WKH VWRUP GUDLQ ZDV PDGH DQG WKH WHPSHUDWXUHVRIWKHVWRUPGUDLQGLVFKDUJHDQGWKHVXUI]RQHGRZQFRDVWZHUHPHDVXUHG &RXQW\
RI2UDQJHHWDO

'XULQJWKHPRQLWRULQJSHULRGRI-XO\WKURXJK-XQHEDFWHULDOHYHOVDWQLQHRXWRIWHQ PRQLWRULQJ VWDWLRQVZLWKLQWKH VWXG\ DUHD RUZLWKLQWZRPLOHV RILWV ERXQGDULHVPHW&DOLIRUQLD 2FHDQ 3ODQ VWDQGDUGV LQ
 SHUFHQW RU PRUH UHVXOWV  7KH WHQWKPRQLWRULQJ VWDWLRQ ORFDWHG DW 3RFKH%HDFKDSSUR[LPDWHO\WZRPLOHVQRUWKRIWKHVWXG\DUHDH[FHHGHG2FHDQ3ODQVWDQGDUGVLQ 81 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


 SHUFHQW RI UHVXOWV GXULQJWKHPRQLWRULQJ SHULRG &RXQW\ RI 2UDQJH HW DO 
  3RFKH
%HDFKLVDWWKHRXWOHWRIWKH3ULPD'HVKHFKD)ORRG&RQWURO&KDQQHO  6HGLPHQWV
7KHSULPDU\QDWXUDOVDQGVXSSO\ IRUWKHEHDFKHVRQWKH3DFLILF&RDVWLVSURYLGHGE\WKH ULYHUV DQG VWUHDPV ZKLFK WUDQVSRUW WKH VHGLPHQW WR WKH FRDVW GXULQJ WKH ZLQWHU DQG VSULQJ VWRUPV (URGLQJVHDFOLIIVDQGEOXIIVSURYLGHDVHFRQGDU\VRXUFHRIVHGLPHQW7KHZDYHVDQGFXUUHQWV GLVWULEXWHWKHVDQGDVLWDUULYHVDWWKHFRDVW7KHDGMDFHQWEHDFKHVDUHUHSOHQLVKHGDVWKHIORZRI VDQG PRYHV DORQJVKRUH  7KH SUHGRPLQDWH GLUHFWLRQ RI WKH VDQG PRYHPHQW DORQJ VRXWKHUQ &DOLIRUQLD EHDFKHVLV QRUWKWR VRXWK QRWZLWKVWDQGLQJ VHDVRQDOORFDO YDULDWLRQV  *HQHUDOO\WKH EHVWSODFHVWRILQGVXLWDEOHEHDFKVDQGIRUUHSOHQLVKPHQWDUHDWWKHGHOWDVRIWKHYDULRXVVWUHDPV WKDWHPSW\LQWRWKHRFHDQ7KHUHDUHQRVXFKVWUHDPVLQWKHYLFLQLW\RI6DQ&OHPHQWHH[FHSWIRU WKHPRXWKRI6DQ-XDQ&UHHNZKLFKHPSWLHVLQWRWKHRFHDQDW&DSLVWUDQR%HDFKVRXWKRI'DQD 3RLQWDQGQRUWKRI6DQ&OHPHQWH3ULRUH[SORUDWLRQE\RWKHUVKDVLQGLFDWHGWKDWWKHVHGLPHQWVDW WKLVORFDWLRQ DUHWRR ILQHJUDLQHG DQG DUH XQVXLWDEOH IRU EHDFK UHSOHQLVKPHQW$FFRUGLQJO\LQ -DQXDU\DYLEUDFRUHH[SORUDWLRQZDVILUVWFRQGXFWHGDERXWPL NP
RIIVKRUHRI6DQ
&OHPHQWH%HDFKIRUDGLVWDQFHRIDERXWPL
NP
SDUDOOHOWRWKHFRDVWOLQHWRGHWHUPLQHLI
VXLWDEOHVDQGZDVSUHVHQW7KHUHVXOWVZHUHQHJDWLYH
RQWKHVHFRQGGD\RIWKHH[SORUDWLRQWKH
YLEUDFRUH ZDV PRYHG RIIVKRUH QHDU WKH PRXWK RI WKH 6DQWD 0DUJDULWD 5LYHU D IHZ PLOHV QRUWKZHVWRI2FHDQVLGH+DUERU
7KHVHGLPHQWVLQWKH3URMHFWDUHDDUHGHVFULEHGDVVLOW\VDQGVDQGVDQG\VLOWVDVGHWHUPLQHGE\ ERWK WKH JHRSK\VLFDO VXUYH\V FRQGXFWHG LQ 6XPPHU  DQG FRUHVDPSOHV GHULYHG IURP VL[ YLEUDFRUHWHVWKROHVFRQGXFWHGLQ-DQXDU\7KHYLEUDFRUHKROHVZHUHSODFHGDQGVDPSOHGDW UDQGRPORFDWLRQV RIIVKRUH RIWKH&LW\ RI 6DQ&OHPHQWH IURPWKHYLFLQLW\ RIWKH 6DQ&OHPHQWH 3LHUGRZQFRDVWWR6DQ0DWHR3RLQW
LHWKH2UDQJH&RXQW\6DQ'LHJR&RXQW\/LQH
7KHWHVW
KROHVZHUHSODFHGDWOHDVWRQHPLOHRIIVKRUHLQRUGHUWRDYRLGWKHVKDOORZEHGURFNHQFRXQWHUHG E\WKHVHLVPLFVXUYH\7KHHOHYDWLRQVRIWKHPXGOLQHDWWKHKROHVYDULHGIURPIW P

0//: WR  IW
 P
 0//: ZKLFK LV WKH OLPLW RI WKH PRVW HFRQRPLFDO GUHGJLQJ RSHUDWLRQV7KHH[SORUDWLRQLQGLFDWHGWKDWDWPL
NP
VHDZDUGVRIWKHEHDFKWKHEHGURFN
LV VWLOO IDLUO\ VKDOORZDQGZDVHQFRXQWHUHGEHWZHHQ IW P
WR IW
P
EHORZWKH
PXGOLQH7KHVHGLPHQWVHQFRXQWHUHGRYHUO\LQJWKHEHGURFNZHUHVLOWVDQG ILQHJUDLQHGVDQGV YLVXDOO\ GHHPHG XQVXLWDEOH IRU EHDFK UHSOHQLVKPHQW  7KH H[SORUDWLRQ SURJUDP ZDV PRYHGWR 2FHDQVLGH QHDU WKH PRXWK RI WKH 6DQWD 0DUJDULWD 5LYHU ZKHUH SUHYLRXV UHFRQQDLVVDQFH H[SORUDWLRQKDGLQGLFDWHGVXLWDEOHPDWHULDO
,Q $XJXVW   DGGLWLRQDO WHVW KROHV ZHUH VDPSOHG ZLWK D YLEUDFRUH IRU D EHDFK UHSOHQLVKPHQWVWXG\DWWKH2FHDQVLGH%HDFKVLWH7KHSXUSRVHRIWKHVWXG\ZDVWRGHWHUPLQHLI WKHUH ZDV HQRXJK VXLWDEOH VDQG IRU D EHDFK UHSOHQLVKPHQW SURJUDP DW ERWK 6DQ&OHPHQWH DQG 2FHDQVLGH7KHGHSWKRIWKHKROHVYDULHGIURP
IW

P
WRIW
P
DQGDYHUDJHG
IW
P
7KHPXGOLQHHOHYDWLRQVRIWKHKROHVYDULHGIURPIW P
WRIW

P
0//:7KHVHKROHVZHUHH[SORUHGDQGVDPSOHGLQWKHVDPHSURSRVHGERUURZDUHDEXWZHUH SODFHGWRILOOLQWKHJDSVEHWZHHQSULRUKROHVDQGREWDLQPRUHLQIRUPDWLRQDERXWFHUWDLQUHDFKHV RIWKHDUHDLQPRUHGHWDLO
82 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,Q

6$1'$*H[SORUHGDQGVDPSOHGYLEUDFRUHKROHVLQWKLVVDPHSURSRVHGERUURZDUHD )URPWKHVHVLWHVWZRRIIVKRUHEHDFKFRPSDWLEOHVLWHVZHUHFKRVHQ VLWH62
ORFDWHGQRUWKRI
2FHDQVLGH+DUERUDQGVLWH62ORFDWHGVRXWKRI2FHDQVLGH+DUERU 6LWH62FRQWDLQHGRIWKHYLEUDFRUHKROHV7KHVHYLEUDFRUHKROHVYDULHGLQGHSWKIURPWR IW
WRP
7KHPXGOLQHHOHYDWLRQVRIWKHKROHVYDULHGIURPWRIW WR
P
0//:7KHVLWHLGHQWLILHGPLOOLRQFXELF\DUGV
PLOOLRQFXELFPHWHUV
RIILQH
JUDLQHG VRPHZKDW VLOW\ VDQG ZKLFKLV VXLWDEOH IRU EHDFK QRXULVKPHQW SXUSRVHV  7KLV VDQGLV ORFDWHGEHQHDWKWRIW
WRP
RIXQVXLWDEOHVDQG\VLOWDQGVLOW\VDQG
6LWH62
FRQWDLQHGYLEUDFRUHKROHV7KHVHYLEUDFRUHKROHVYDULHGLQGHSWKIURPWR IW
WRP
7KHPXGOLQHHOHYDWLRQVRIWKHKROHVYDULHGIURPWR IW
WRP

0//:7KHVLWHLGHQWLILHG
PLOOLRQFXELF\DUGV
PLOOLRQFXELFPHWHUV
RIVXLWDEOHILQHWR
PHGLXPJUDLQHGVDQGQHDUVKRUHWRIW

WRP
WKLFN$WWKH62
ERUURZVLWHWKUHH
OD\HUVRIVHGLPHQWVZHUHIRXQG
6$1'$*
7KHWRS

VXUILFLDO
OD\HUFRQVLVWVRIVDQG\VLOW
7KH JUDLQVL]H DQDO\VHV VKRZHGWKLV VXUILFLDOOD\HUWR EH DSSUR[LPDWHO\ WR  IW P
 GHHS
RYHUWKHGUHGJHVLWHDQGXQVXLWDEOHIRUEHDFKQRXULVKPHQWPDWHULDO%HQHDWKWKHVXUILFLDOVLOWLVD OD\HURIILQHWRPHGLXPJUDLQHGVDQGWKDWLVVXLWDEOHIRUEHDFKUHSOHQLVKPHQW7KLVVDQGOD\HULV WRIW
WR
P
WKLFNDQGLVH[SRVHGRQWKHVHDIORRUVXUIDFHDORQJWKHFHQWUDOUHJLRQRI WKHVLWH6$1'$*ODWHU UHPRYHGVRPHRIWKHPDWHULDOLQZDWHUGHHSHUWKDQIW P
DQG
SODFHGWKHPDWHULDORQYDULRXVSRUWLRQVRIWKHEHDFKLQ2FHDQVLGHDQGYLFLQLW\ $VSDUWRIWKHFRQWUDFWIRUWKH-DQXDU\SURJUDP*URXS'HOWDD*HRWHFKQLFDO(QJLQHHULQJ &RQVXOWDQW SURGXFHG D UHSRUW RI SURMHFW DFWLYLWLHV DQG UHVXOWV WKHUHLQ HQWLWOHG ³9LEUDFRUH ([SORUDWLRQ 3URJUDP 6DQ &OHPHQWH %HDFK 6KRUHOLQH 2UDQJH DQG 6DQ 'LHJR &RXQWLHV &DOLIRUQLD´
*URXS'HOWD
IRUWKH*HRWHFKQLFDO%UDQFKRIWKH/RV$QJHOHV'LVWULFW  6DQ&OHPHQWH
%RUURZ$UHD

6DPSOHGPDWHULDOVHQFRXQWHUHGZLWK%RUURZ6LWHZHUHJHQHUDOO\JUHHQLVKJUD\VLOW\YHU\ILQH JUDLQHG VDQGV DQG VDQG\ VLOWV ZLWK PLQRU DPRXQWV RI VKHOO IUDJPHQWV  $ VRIW PLFDFHRXV ZDFNHVWRQH EHGURFN ZDV HQFRXQWHUHG LQ SRVVLEO\ IRXU RI WKH KROHV FDXVLQJ UHIXVDO RI WKH YLEUDFRUH  7KHVH PDWHULDOV DSSHDUHG WR EH WRR ILQH JUDLQHG IRU EHDFK QRXULVKPHQW SXUSRVHV 6DPSOHV IRU FKHPLFDO DQDO\VLVZHUH QRWWDNHQ DVWKH UHFRYHUHGVHGLPHQWVZHUHWRR ILQHWR EH SODFHGRQWRWKHEHDFK
3K\VLFDOWHVWV ZHUH SHUIRUPHG RQ HLJKW VHOHFWHG VDPSOHV IURPWKLV ERUURZ DUHD  *URXS 'HOWD UHSRUWHG WKDW WKH VDPSOHV VKRZ DQ DYHUDJH RI   SHUFHQW JUDYHO  SHUFHQW VDQG DQG
SHUFHQW ILQHV SDVVLQJ WKH  VLHYH  7KH SHUFHQW ILQHV UDQJHG IURP  SHUFHQW WR  SHUFHQW7KHVHYDOXHVVKRZWKDWWKHVDPSOHGDUHDRIIRI6DQ&OHPHQWH%HDFKGRHVQRWFRQWDLQ VXLWDEOHFRPSDWLEOHEHDFKUHSOHQLVKPHQWPDWHULDO
83 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 2FHDQVLGH
%RUURZ$UHD

7KH VDPSOHG PDWHULDOV ZHUH JHQHUDOO\ ILQHJUDLQHG VDQGV ZLWK ORFDO VLOW\ LQWHUYDOV DQG PLQRU DPRXQWV RI VKHOO IUDJPHQWV  6LJQLILFDQWODWHUDOO\ GLVFRQWLQXRXV JUDYHOFREEOH EHGV DQGOHQVHV ZHUH HQFRXQWHUHGWKURXJKRXWWKH DUHD EXWWKHWKLFNQHVVHV JHQHUDOO\ DYHUDJHG  IW P
 RU
OHVV2IWHQWKHJUDYHOLQWHUYDOVSRVVHVVHGVXSSRUWLQJGHQVHVLOW\VDQGPDWHULDOZKLFKDFWHGDVD ³SDYHPHQW´ KROGLQJ WKH FREEOHV WLJKWO\ PDNLQJ WKH FRUH SHQHWUDWLRQ GLIILFXOW 6KHOO DQG VKHOO IUDJPHQWVZHUHHQFRXQWHUHGWKURXJKRXWWKHDUHD
3K\VLFDO WHVWV ZHUH SHUIRUPHG RQ
 VDPSOHV IURP WKLV ERUURZ DUHD 7KH VDPSOHV VKRZHG DQ DYHUDJHRISHUFHQWJUDYHOSHUFHQWVDQGDQGSHUFHQWILQHVSDVVLQJWKHVLHYH$ WRWDORIRXWRIWKHWHVWKROHVZLWKLQWKH2FHDQVLGHVLWHDUHEHDFKFRPSDWLEOHZLWKWKHWRWDO ILQHVRISHUFHQWRUOHVV
 6HGLPHQW4XDOLW\
&KHPLFDO WHVWLQJ RI WKH SURSRVHG ERUURZ DUHD RIIVKRUH 2FHDQVLGH KDV EHHQ GRQH E\ WKH 6DQ 'LHJR $VVRFLDWLRQ RI *RYHUQPHQWV
6$1'$* 
 DQG WKH 86$&(



 7KH DQDO\WLFDO
UHVXOWVDUHVXPPDUL]HGDQGFRPSDUHGWRWKH6HGLPHQW4XDOLW\*XLGHOLQHV 64*V
LQ7DEOH
7KH6HGLPHQW4XDOLW\*XLGHOLQHV
64*V
DUHEDVHGRQ3XJHW6RXQG'UHGJHG'LVSRVDO$QDO\VLV

366'$
DQG12$$JXLGHOLQHV7KH366'$VFUHHQLQJOHYHO
6/
LGHQWLILHVWKHFRQFHQWUDWLRQ
EHORZZKLFKVHGLPHQWLVH[SHFWHGWRKDYHQRXQDFFHSWDEOHDGYHUVHHIIHFWV7KHKLJKHUYDOXHLV WKH PD[LPXP OHYHO
0/
 DERYH ZKLFK HIIHFWV DUH OLNHO\ 7KH 12$$ SXEOLVKHG HIIHFWVEDVHG VHGLPHQWTXDOLW\YDOXHVIRUHYDOXDWLQJWKHSRWHQWLDOIRUFRQVWLWXHQWVLQVHGLPHQWWRFDXVHDGYHUVH ELRORJLFDOHIIHFWVDUHUHIHUUHGWRDV(IIHFWV5DQJH/RZ (5/
DQG(IIHFWV5DQJH0HGLDQ
(5
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
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH6DQ&OHPHQWH6KRUHOLQH3URMHFW±%RUURZ$UHD6HGLPHQW&RPSRVLWH6DPSOH 
&KHPLFDO5HVXOWV
6HGLPHQW4XDOLW\*XLGHOLQHV
64*V

$QDO\WLFDO
0HWKRG


0HWKRG
5HSRUWLQJ
/LPLW
'HWHFWLRQ
/LPLW
8QLWV


(5/ (50 6/ 0/ 86$&(

6$1'$*


/RQJHWDO



36''$



3+<6,&$/
&219(17,21$/6         
7RWDO6ROLGV
GU\
ZHLJKW

(3$

       
7RWDO9RODWLOH6ROLGV 60
(
       
S+ (3$

 S+
XQLWV
     
$PPRQLD1 60
1+)
 PJ/      
7RWDO2UJDQLF
&DUERQ
GU\ZHLJKW

3OXPE

(3$

      

'LVVROYHG6XOILGHV 60
6'
 PJ/    1' 1' 
2LODQG*UHDVH (3$  PJ/    1' 1' 
73+'LHVHO (3$
P
 PJNJ    1' 1' 
73+0RWRU2LO (3$
P
 PJNJ    1' 1' 
753+ (3$

 PJNJ    1' 1' 
0(7$/6      $OXPLQXP
$O
 (3$  PJNJ     
 
$QWLPRQ\
6E
 (3$  PJNJ       
$UVHQLF
$V
 (3$  PJNJ        %DULXP
%D
 (3$  PJNJ       
%HU\OOLXP
%H
 (3$  PJNJ       
&DGPLXP
&G
 (3$  PJNJ 
     
&KURPLXP
&U
 (3$  PJNJ    
  
&REDOW
&R
 (3$  PJNJ      

&RSSHU
&X
 (3$  PJNJ   
    
,URQ
)H
 (3$  PJNJ       
/HDG
3E
 (3$  PJNJ       

0DQJDQHVH
0Q
 (3$  PJNJ    

 
0HUFXU\
+J
 (3$  PJNJ        0RO\EGHQXP
0R
 (3$  PJNJ       
1LFNHO
1L
 (3$  PJNJ 
    
  
6HOHQLXP
6H
 (3$  PJNJ       
6LOYHU
$J
 (3$  PJNJ        6WURQWLXP
6U
 (3$  PJNJ       
7KDOOLXP
7O
 (3$  PJNJ       
7LQ
6Q
 (3$  PJNJ       
7LWDQLXP
7L
 (3$  PJNJ      
 
9DQDGLXP
92 (3$  PJNJ     
 
 
=LQF
=Q
 (3$  PJNJ        25*$1,&6        
3(67,&,'(6         
7RWDO&KORULQDWHG
3HVWLFLGHV


  XJNJ   
 
   1'
$OGULQ (3$  XJNJ     1' 1' 
DOSKD%+& (3$  XJNJ     1' 1' 
85 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

6HGLPHQW4XDOLW\*XLGHOLQHV
64*V

$QDO\WLFDO
0HWKRG


0HWKRG
5HSRUWLQJ
/LPLW
'HWHFWLRQ
/LPLW
8QLWV


(5/ (50 6/ 0/ 86$&(

6$1'$*


/RQJHWDO



36''$



DOSKD&KORUGDQH (3$  XJNJ     1' 1'  EHWD%+& (3$  XJNJ     1' 1' 
GHOWD%+& (3$  XJNJ     1' 1' 
'LHOGULQ (3$  XJNJ     1' 1'  (QGRVXOIDQ, (3$  XJNJ     1' 1' 
(QGRVXOIDQ,, (3$  XJNJ     1' 1' 
(QGRVXOIDQ6XOIDWH (3$  XJNJ     1' 1'  (QGULQ (3$  XJNJ     1' 1' 
(QGULQ$OGHOK\GH (3$  XJNJ     1' 1' 
JDPPD%+&
/LQGDQH
(3$  XJNJ     1' 1' 
JDPPD&KORUGDQH (3$  XJNJ     1' 1' 
+HSWDFKORU (3$  XJNJ     1' 1' 
+HSWDFKORU(SR[LGH (3$  XJNJ     1' 1'  0HWKR[\FKORU (3$  XJNJ     1' 1' 
0LUH[ (3$  XJNJ     1' 1' 
7R[DSKHQH (3$  XJNJ     1' 1' 
7UDQV1RQDFKORU (3$  XJNJ     1' 1' 
7RWDO''7

 (3$  XJNJ   
 
   
¶''' (3$  XJNJ     1' 1' 
¶''' (3$  XJNJ     1' 1' 
¶''' (3$  XJNJ     1' 1' 
¶''' (3$  XJNJ     1' 1' 
¶''( (3$  XJNJ     1' 1' 
¶''7 (3$  XJNJ     1' 1' 
25*$127,16        
7RWDO2UJDQRWLQV

 .URQHHW
DO


 XJNJ      
0RQREXW\OWLQ .URQHHW
DO


 XJNJ    1' 1' 
'LEXW\OWLQ .URQHHW
DO


 XJNJ    1' 1' 
7ULEXW\OWLQ .URQHHW
DO


 XJNJ    1' 1' 
7HWUDEXW\OWLQ .URQHHW
DO


 XJNJ  

  1' 1' 
3+7+$/$7(6        
7RWDOSKWKDODWHV

   XJNJ      
%LV
HWK\OKH[\O

SKWKDODWH
(3$  XJNJ      
%XW\OEHQ]\O
SKWKDODWH
(3$  XJNJ 
  1' 1' 
'LHWK\OSKWKDODWH (3$  XJNJ    1' 1'  'LPHWK\OSKWKDODWH (3$  XJNJ    1' 1'  'LQEXW\OSKWKDODWH (3$  XJNJ    1' 1'  'LQEXW\OSKWKDODWH (3$  XJNJ    1' 1'  32/<&+/25,1$7('
%,3+(1</6
3&%

      
7RWDO3&%V

   XJNJ       1'
$URFORU (3$  XJNJ    1' 1' 
$URFORU (3$  XJNJ    1' 1' 
$URFORU (3$  XJNJ    1' 1' 
$URFORU (3$  XJNJ    1' 1' 
$URFORU (3$  XJNJ    1' 1' 
$URFORU (3$  XJNJ    1' 1' 
86 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

6HGLPHQW4XDOLW\*XLGHOLQHV
64*V

$QDO\WLFDO
0HWKRG


0HWKRG
5HSRUWLQJ
/LPLW
'HWHFWLRQ
/LPLW
8QLWV


(5/ (50 6/ 0/ 86$&(

6$1'$*


/RQJHWDO



36''$



$URFORU (3$  XJNJ    1' 1' 
32/<18&/($5$520$7,&6+<'52&$5%216
3$+
    
7RWDO3$+V

  XJNJ       1'
0HWK\OQDSKWKDOHQH (3$  XJNJ    1' 1'  
0HWK\SKHQDQWKUHQH
(3$  XJNJ    1' 1' 

7ULPHWK\OQDSKWKDOHQH
(3$  XJNJ    1' 1' 

'LPHWK\OQDSKWKDOHQH
(3$  XJNJ    1' 1' 
0HWK\OQDSKWKDOHQH (3$  XJNJ    
 1' 1' 
$FHQDSKWKHQH (3$  XJNJ     1' 1'  $FHQDSKWK\OHQH (3$  XJNJ     1' 1'  $QWKUDFHQH (3$  XJNJ  
  1' 1' 
%HQ]R
D
DQWKUDFHQH (3$  XJNJ     1' 1'  %HQ]R
DH
S\UHQH (3$  XJNJ     1' 1'  %HQ]R
E

IOXRUDQWKHQ
H
(3$  XJNJ   
 1' 1' 
%HQ]R
N
IOXUDQWKHQH (3$  XJNJ   
 1' 1' 
%LSKHQ\O (3$  XJNJ    1' 1' 
&KU\VHQH (3$  XJNJ     1' 1'  'LEHQ]R
DK

DQWKUDFHQH
(3$  XJNJ    
 1' 1' 
)OXRUDQWKHQH (3$  XJNJ     1' 1'  )OXRUHQH (3$  XJNJ 
   1' 1' 
,QGHQR

&'
S\UHQH
(3$  XJNJ    1' 1' 
1DSKWKDOHQH (3$  XJNJ     1' 1'  3HUOHQH (3$  XJNJ    1' 1' 
3KHQDQWKUHQH (3$  XJNJ     1' 1'  3\UHQH (3$  XJNJ     1' 1'  3+(12/6        
7RWDO3KHQROV   XJNJ      1'

7ULFKORURSKHQRO
(3$  XJNJ  
  1' 1' 
'LFKORURSKHQRO (3$  XJNJ  
  1' 1' 
'LPHWK\OSKHQRO (3$  XJNJ  
  1' 1' 
'LQLWURSKHQRO (3$  XJNJ  
  1' 1' 
&KORURSKHQRO (3$  XJNJ    1' 1' 
0HWK\
GLQLWURSKHQRO
(3$  XJNJ    1' 1' 
1LWURSKHQRO (3$  XJNJ    1' 1' 
&KORUR
PHWK\SKHQRO
(3$  XJNJ    1' 1' 
1LWURSKHQRO (3$  XJNJ    1' 1' 
3HQWDFKORURSKHQRO (3$  XJNJ   
 1' 1' 
3KHQRO (3$  XJNJ    1' 1' 


 $QDO\WLFDO0HWKRG
  (3$ 8QLWHG6WDWHV(QYLURQPHQWDO3URWHFWLRQ$JHQF\   (3$0HWKRGVDUH(3$6:

UG(GLWLRQRU(3$
0DUFK

  $3+$ $PHULFDQ3XEOLF+HDOWK$VVRFLDWLRQ
  $3+$0HWKRGLV$3+$6WDQGDUG0HWKRGVWK(GLWLRQ


 3OXPE 3URFHGXUHIRU+DQGOLQJDQG&KHPLFDO$QDO\VLVRI6HGLPHQWDQG:DWHU6DPSOHV7HFK5HS86(3$&( 5XVVHOO+3OXPE-U



 8QLWV
PJNJ PLOOLJUDPVSHUNLORJUDPSDUWVSHUPLOOLRQ
GU\ZHLJKWXQOHVVRWKHUZLVHQRWHG

XJNJ PLFURJUDPVSHUNLORJUDPSDUWVSHUELOOLRQ GU\ZHLJKWXQOHVVRWKHUZLVHQRWHG

87 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV



 1' QRWGHWHFWHGLQWKLVDQDO\VLVRUOHVVWKDQ0HWKRG5HSRUWLQJ/LPLWYDOXHIRUWKHSDUWLFXODUFRPSRXQG V
RILQWHUHVW


 7RWDO&KORULQDWHG3HVWLFLGHV7RWDO2UJDQRWLQV7RWDO3KWKDODWHV7RWDO3&%V7RWDO3$+VDQG7RWDO3KHQROV VXPRIQDPHG FRPSRXQGVDQGWKHLUGHULYDWLYHV


 7RWDO''7 VXPRI¶''(¶'''
DQG¶''7
7KH WRWDO RUJDQLF FDUERQ FRQFHQWUDWLRQ ZDV  SHUFHQW LQ WKH 6$1'$* VDPSOHV DQG  SHUFHQW LQ WKH 86$&( VDPSOHV &RQWDPLQDQW FRQFHQWUDWLRQV RI PHWDOV SHVWLFLGHV SRO\FKORULQDWHG ELSKHQ\OV
3&%V
 SRO\F\FOLF DURPDWLF K\GURFDUERQV
3$+V
 SKWKDODWHV DQG
SKHQROV ZHUH QRQGHWHFWLEOH WR ORZ DQG ZHOO EHORZ DOO WKH WKUHVKROGV LQ WKH 64*V IRU ERWK VDPSOHVHWV1RGLFKORURGLSKHQ\OWULFKORURHWKDQH
''7
RUFKORULQDWHGSHVWLFLGHVZHUHGHWHFWHG
LQWKHVDPSOHV7KHEXONFKHPLVWU\GDWDLQGLFDWHGWKDWFKHPLFDOVGHWHFWHGZLWKLQWKHVHGLPHQWVDW WKH SURSRVHG ERUURZ VLWH DUH DW YHU\ORZOHYHOV DQG GR QRW H[FHHGWKH 64*V  7KHUHIRUHWKH ERUURZVRXUFHVHGLPHQWVDSSHDUVXLWDEOHIRUSODFHPHQWDWWKHUHFHLYLQJEHDFK  2FHDQRJUDSKLF&KDUDFWHULVWLFVDQG&RDVWDO3URFHVVHV :DWHU OHYHOV DQG ZDYH HQHUJ\ LQIOXHQFH WKH DPRXQW DQG HURVLYH IRUFH RI ZDWHU RQ WKH EHDFK

86$&( E
2FHDQRJUDSKLFFRQGLWLRQVDQGWKHWUDQVSRUW RI VHGLPHQWDORQJWKH VKRUHOLQH DQG RQ WKH EHDFKHV DUH GHVFULEHG LQ WKH IROORZLQJ VXEVHFWLRQV  $GGLWLRQDO GHVFULSWLRQ RI RFHDQRJUDSKLFFKDUDFWHULVWLFVLVLQWKH&RDVWDO(QJLQHHULQJ$SSHQGL[ $SSHQGL['

 :DWHU/HYHOV
:DWHUOHYHOVZLWKLQWKHVXUI]RQHYDU\DFFRUGLQJWRIRXUSULPDU\IDFWRUV 

DVWURQRPLFDOWLGHV


 VWRUP VXUJH DQGZDYH VHWXS

 FOLPDWLF YDULDWLRQ UHODWHGWR(162 HYHQWV DQG

ORQJ
WHUPFKDQJHVLQVHDOHYHO
7LGHV
7KHWLGHV DW 6DQ&OHPHQWH DUHPL[HG VHPLGLXUQDOWLGHVZLWKWZR XQHTXDO KLJKWLGHV DQGORZ WLGHVURXJKO\SHUGD\7LGDOYDULDWLRQVDUHFDXVHGE\WKHSDVVDJHRIWZRKDUPRQLFWLGDOZDYHV 
RQHZLWKDSHULRGRIKRXUVDQGRQHZLWKDSHULRGRIKRXUV7KLVFDXVHVDGLIIHUHQFHLQ KHLJKW EHWZHHQ VXFFHVVLYH KLJK DQG ORZ ZDWHUV  7KH UHVXOW LV WZR KLJK ZDWHUV DQG WZR ORZ ZDWHUVHDFKGD\FRQVLVWLQJRIDKLJKHUKLJKZDWHU
++:
DQGDORZHUKLJKZDWHU
/+:
DQGD
KLJKHUORZZDWHU
+/:
DQGDORZHUORZZDWHU
//:

$JUHDWHUWKDQDYHUDJHUDQJHEHWZHHQ++:DQG//:RFFXUVZKHQWKHPRRQVXQDQGHDUWKDUH DOLJQHGZLWKHDFKRWKHUWRFUHDWHDODUJHJUDYLWDWLRQDOHIIHFW7KLVVSULQJWLGHFRUUHVSRQGVWRWKH SKHQRPHQRQRIDQHZRUIXOOPRRQ1HDSWLGHVZKLFKRFFXUGXULQJWKHILUVWDQGWKLUGTXDUWHUV RIWKHPRRQKDYHDQDUURZHUUDQJHEHWZHHQ++:DQG//:,QWKLVVLWXDWLRQWKHPRRQVXQ DQG HDUWK DUH SHUSHQGLFXODU WR HDFK RWKHU WKHUHE\ UHGXFLQJ WKH JUDYLWDWLRQDO HIIHFWV RQ ZDWHU OHYHOV
7KHUHLVQRWLGDOGDWDDYDLODEOHIRUWKHLPPHGLDWH6DQ&OHPHQWHDUHDKRZHYHUWKHWLGDOGDWXP HOHYDWLRQVDW/D-ROOD&DOLIRUQLDDUHVKRZQLQ7DEOHDQGDUHDVVXPHGUHSUHVHQWDWLYHRIWKRVH DW6DQ&OHPHQWH7KHPHDQWLGDOUDQJHIRUWKH3URMHFWDUHDLVIW P
7KHWLGDOHSRFKLV
88 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


 WR  7KH /D -ROOD 1DWLRQDO 2FHDQ 6HUYLFH 126
 3ULPDU\ 7LGH 6WDWLRQ LV ORFDWHG
DSSUR[LPDWHO\  NP
 PLOHV
 IURP WKH 6DQ &OHPHQWH 3LHU ,Q VRXWKHUQ &DOLIRUQLD WLGHV W\SLFDOO\KDYHVSDWLDOFKDUDFWHULVWLFVRQWKHRUGHURIKXQGUHGVRINLORPHWHUV'DWXPLQIRUPDWLRQ IRUDQ126WLGDOVWDWLRQORFDWHGDW1HZSRUW%D\+DUERU VWDWLRQGLVFRQWLQXHGLQ


ORFDWHG
DSSUR[LPDWHO\NP

PLOHV
IURP6DQ&OHPHQWHLQGLFDWHV06/DQG0++:GLIIHUHQFHVRI  P DQG  P UHVSHFWLYHO\ 7KHUHIRUH WKH VHD OHYHO YDULDWLRQ EHWZHHQ /D -ROOD DQG 6DQ &OHPHQWHLVDVVXPHGWREHQHJOLJLEOH
7DEOH7LGDO'DWXP(OHYDWLRQVDW/D-ROOD&$
7LGDO'DWXP (OHYDWLRQIW
P

+LJKHVWREVHUYHGZDWHUOHYHO


 


0HDQ+LJKHU+LJK:DWHU
0++:
 


0HDQ+LJK:DWHU
0+:
 


0HDQ6HD/HYHO
06/
 


0HDQ7LGH/HYHO
07/
 


1RUWK$PHULFDQ9HUWLFDO'DWXP±

1$9'
 



0HDQ/RZ:DWHU
0/:
 



0HDQ/RZHU/RZ:DWHU
0//:
 
/RZHVWREVHUYHGZDWHUOHYHO

 


(OHYDWLRQVDUHUHIHUHQFHGWR0//:
6WRUP6XUJH
:DWHUOHYHOVPD\ EH KLJKHU GXULQJ VWRUPV EHFDXVH RIZLQGVDQGDWPRVSKHULF SUHVVXUH6WRUP VXUJHLVWKHVXSHUHOHYDWLRQRIWKHWLGDOOHYHODWWKHFRDVWGXHWRZLQGVWUHVVHVDQGDWPRVSKHULF SUHVVXUHIOXFWXDWLRQVDFWLQJXSRQWKHVHDVXUIDFH:LQGDQGDWPRVSKHULFIOXFWXDWLRQVDVVRFLDWHG ZLWK VWURQJ VWRUPV LQ VRXWKHUQ &DOLIRUQLD W\SLFDOO\ SURGXFH  IW  P
 VWRUP VXUJHV

$SSHQGL[ '
  'XH WR D QDUURZ FRQWLQHQWDO VKHOI DQG WKH DEVHQFH RI WURSLFDO VWRUPV DQGRU KXUULFDQHVVWRUPVXUJHKHLJKWVRQWKH&DOLIRUQLDFRDVWDUHVPDOOFRPSDUHGWRWKRVHRQWKHHDVW DQG*XOIFRDVWVZKHUHH[WUHPHVXUJHKHLJKWVRIIW P
DUHPRUHW\SLFDODQGDSHDN
IW
P
ZDVGRFXPHQWHGGXULQJ+XUULFDQH&DPLOOHLQ

:HVWFRDVWVWRUPVXUJHVW\SLFDOO\
KDYHWLPH VFDOHV RI RQHWRWKUHH GD\VZLWKORQJHU VXUJH HSLVRGHV SRVVLEOH GXHWR EXQFKLQJ RI VXFFHVVLYHVWRUPV
(O1LxR6RXWKHUQ2VFLOODWLRQ(YHQW
(162HYHQWVDUHJOREDOVFDOHFOLPDWLFYDULDWLRQVZLWKDGXUDWLRQODVWLQJIRUDSSUR[LPDWHO\WZR WRVHYHQ\HDUV7KH\UHSUHVHQWDQRVFLOODWRU\H[FKDQJHRIDWPRVSKHULFPDVVDVPDQLIHVWHGE\D GHFUHDVHLQVHDVXUIDFHSUHVVXUHLQWKHHDVWHUQWURSLFDO3DFLILF2FHDQDGHFUHDVHLQWKHHDVWHUO\ WUDGHZLQGVDQGDQLQFUHDVHLQVHDOHYHORQWKHZHVWFRDVWRI1RUWKDQG6RXWK$PHULFD 86$&(


7KHLQWHUDFWLRQ EHWZHHQWKH DWPRVSKHULF DQG RFHDQLF HQYLURQPHQW GXULQJWKHVH HYHQWV GULYHV FOLPDWLF FKDQJHV WKDW FDQ UHVXOW LQ VLJQLILFDQW PRGLILFDWLRQV RI ZDYH FOLPDWH DORQJ WKH ZRUOG¶VFRDVWV
89 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7KHVHYHUHZLQWHUVHDVRQVRI
WR
DQG

WR

ZKLFKSURGXFHGVRPHRIWKHPRVW
VHYHUHVWRUPVWRHYHULPSDFWWKHVRXWKHUQ&DOLIRUQLDFRDVWZHUHWKHUHVXOWRIWKHLQWHQVH(162 HYHQWV7KHDWPRVSKHULFGLVWXUEDQFHDVVRFLDWHGZLWKWKHVHWZRHYHQWVFDXVHGDEQRUPDOO\ZDUP ZDWHUWHPSHUDWXUHVDUHYHUVDORIWKHZHVWHUO\WUDGHZLQGVDQGDQLQFUHDVHLQWKHPRQWKO\PHDQ VHDOHYHOV
06/
E\DVPXFKDVIW
P
LQ
WR
DQGIW
P
LQ

WR


DW/D-ROODQHDU6DQ'LHJR
)OLFN



6HD/HYHO5LVH
5HODWLYHVHDOHYHOULVHKDV3URMHFWLPSDFWVIURPWZRSULPDU\FRQVLGHUDWLRQV 
ORQJWHUPEHDFK
HURVLRQDQG 
LQFUHDVHGZDYH UXQXSDQG RYHUWRSSLQJ$OWKRXJKWKHH[DFWPDJQLWXGH RIWKH IXWXUHVHDOHYHOULVHLVXQNQRZQWKHPDLQFRQWULEXWLRQVZLOOFRPHIURPERWKRFHDQZDWHUWKHUPDO H[SDQVLRQ DQG WKH PHOWZDWHU IURP FRQWLQHQWDO JODFLHUV DQG WKH $QWDUFWLF LFH VKHHW  7KH SURSRUWLRQ RI HDFK FRQWULEXWLRQ GHSHQGV ODUJHO\ XSRQ WKH DFWXDO JOREDO GLVWULEXWLRQ RI WKH WHPSHUDWXUHLQFUHDVHWKHUHVXOWLQJSUHFLSLWDWLRQDPRXQWVWKHJODFLDOUHVSRQVHDQGG\QDPLFVWKH WLPHVFDOHRIRFHDQLFPL[LQJDQGWKHVWDELOLW\RIWKHZHVW$QWDUFWLFLFHVKHHW 86$&(D

7KHSUHVHQWEHVWHVWLPDWHVUHJDUGLQJVHDOHYHOULVHZLWKLQVRXWKHUQ&DOLIRUQLDYDU\EHWZHHQ DQGIW
WRP
LQDWLPHVSDQRI\HDUV+LVWRULFWUHQGVDW6DQ'LHJR&DOLIRUQLD LQGLFDWH D SRVLWLYH VHD OHYHO ULVH RI  IW\U  P\U
 EDVHG RQ ZDWHU OHYHO
PHDVXUHPHQWV GXULQJ WKH SHULRG 



$SSHQGL[ '
  +RZHYHU EDVHG RQ WKH WZR
GLPHQVLRQDOPRGHORIWKH%UXXQ5XOHWKHORQJWHUPVKRUHOLQHFKDQJHDW6DQ&OHPHQWHGXHWRVHD OHYHOULVHLVHVWLPDWHGDWIW\U
P\U

 :DYHV
3HUKDSV PRUH WKDQ DQ\ RWKHU RFHDQRJUDSKLF IDFWRUV ZDYHV GHWHUPLQH WKH IDWH RI VHGLPHQW PRYHPHQW DQG WKH DVVRFLDWHG LPSDFWV WR WKH FRDVWDO HQYLURQPHQW  (VVHQWLDOO\ ZDYHV DUH WKH GULYLQJ IRUFH LQ JHQHUDWLQJ WKH DORQJVKRUH FXUUHQWV WKDW DUH UHVSRQVLEOH IRU PRYLQJ VDQG VXVSHQGHG E\ ZDYH DFWLRQ DORQJ WKH FRDVW
86$&( D
  ,Q VKDOORZ ZDWHU WKH FLUFXODU
PRWLRQZLWKLQWKHZDWHUFROXPQFDQLQGXFHWKHUHVXVSHQVLRQDQGWUDQVSRUWRIERWWRPVHGLPHQWV :DYHV HVSHFLDOO\LQ DVVRFLDWLRQ ZLWK KLJKWLGHV FDQ GDPDJH FRDVWDO VWUXFWXUHV:DYH KHLJKW DQGKLJKYHORFLW\VZHOOWHQGWREHPRVWSURPLQHQWGXULQJZLQWHUDQGVSULQJGXHWRVWRUPVIURP WKH1RUWK3DFLILF7KHJUHDWHUWKHZDYHHQHUJ\WKHPRUHULSFXUUHQWVGHYHORSFDXVLQJHOHYDWHG WXUELGLW\LQQHDUVKRUHZDWHU
:DYH3DWWHUQV
:LQGZDYHVDQGVZHOOZLWKLQWKHVWXG\DUHDDUHSURGXFHGE\VL[EDVLFPHWHRURORJLFDOZHDWKHU SDWWHUQV  7KHVH LQFOXGH H[WUDWURSLFDO VWRUP VZHOOV LQ WKH QRUWKHUQ KHPLVSKHUH QRUWK RU
QRUWKZHVW VZHOO
 ZLQG VZHOOV JHQHUDWHG E\ QRUWKZHVW ZLQGVLQWKH RXWHU FRDVWDO ZDWHUV ZLQG
VZHOO
ZHVWHUO\
ZHVWVHD
DQGVRXWKHDVWHUO\
VRXWKHDVWVHD
ORFDOVHDVWURSLFDOVWRUPVZHOOVDQG
KXUULFDQHV RIIWKH0H[LFDQ FRDVW DQG VRXWKHUO\ VZHOOV RULJLQDWLQJLQWKH VRXWKHUQ KHPLVSKHUH

VRXWKHUO\VZHOO

90 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7KH&KDQQHO,VODQGVDUFKLSHODJR
6DQ0LJXHO6DQWD5RVD6DQWD&UX]$QDFDSD6DQWD&DWDOLQD 6DQ1LFRODVDQG6DQ&OHPHQWH
SURYLGHVRPHVKHOWHULQJWRWKHFRDVWDOUHJLRQGHSHQGLQJRQWKH VZHOODSSURDFKGLUHFWLRQ7KHVZHOOZLQGRZZKLFKLVRSHQWRWKHVHYHUHH[WUDWURSLFDOVWRUPVRI WKHQRUWKHUQKHPLVSKHUHH[WHQGVIURPDSSUR[LPDWHO\GHJUHHVWRGHJUHHV7KHH[SRVXUH ]RQH RSHQ WR WKH VRXWKHUQ VZHOO DQG WURSLFDO VWRUP VZHOO H[WHQGV IURP DSSUR[LPDWHO\ GHJUHHVWR
GHJUHHV7KH6DQ&OHPHQWHFRDVWLVRSHQWRQRUWKZHVWZLQGVZHOODQGORFDO VHDV IURPWKH ZHVW DQG VRXWKHDVW  7KH EDVLF ZHDWKHU SDWWHUQVLQWKH VWXG\ DUHD DUH GHVFULEHG EHORZ
Extratropical Cyclone of the Northern Hemisphere (North or Northwest Swell) 7KLVZHDWKHU V\VWHP UHSUHVHQWVWKH FDWHJRU\ RIWKHPRVW VHYHUHZDYHV UHDFKLQJWKH&DOLIRUQLD FRDVW  1RUWKHUQ KHPLVSKHUH VZHOO ZDYHV DUH XVXDOO\ SURGXFHG E\ VSHFLILF UHPRWH PHWHRURORJLFDO GLVWXUEDQFHV LQFOXGLQJ $OHXWLDQ VWRUPV VXEWURSLFDO VWRUPV QRUWK RI +DZDLL WURSLFDO KXUULFDQHV DQG VWURQJ ZLQGV LQ WKH HDVWHUQ 1RUWK 3DFLILF  'HHSZDWHU ZDYH KHLJKWV UDUHO\H[FHHGIW
P
ZLWKZDYHSHULRGVUDQJLQJIURPWRVHFRQGV+RZHYHUGXULQJ H[WUHPHQRUWKHUQKHPLVSKHUH VWRUPHYHQWVZDYHKHLJKWVPD\H[FHHG IW P
ZLWKSHULRGV
UDQJLQJIURPWRVHFRQGV
Northwest Winds in the Outer Coastal Waters (Wind Swell) $QQXDOO\WKHSUHGRPLQDQWZDYHDFWLRQDORQJWKHVWXG\DUHDLVGXHWRWKHSUHYDLOLQJQRUWKZHVW ZLQGVQRUWKDQGZHVWRIWKHVRXWKHUQ&DOLIRUQLDFRDVWDOZDWHUV7KLVLVSDUWLFXODUO\WUXHGXULQJ WKHVSULQJDQGVXPPHUPRQWKV0RGHUDWHQRUWKZHVWHUVZLOOSURGXFHEUHDNHUKHLJKWVRIWRIW

WRP
ZKLOHVWURQJHYHQWVFDQJHQHUDWHEUHDNLQJZDYHKHLJKWVUDQJLQJIURPWR IW

WRP
ZLWKW\SLFDOSHULRGVUDQJLQJIURPDSSUR[LPDWHO\WRVHFRQGV West to Northwest Local Sea (West Sea)
:HVWHUO\ ZLQGV FDQ EH GLYLGHG LQWR WZR W\SHV


 WHPSHUDWXUHLQGXFHG VHD EUHH]HV DQG


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
Pre-frontal Local Sea (Southeast Sea)
7KHVWXG\DUHDFRDVWOLQHPD\EHYXOQHUDEOHWRVWRUPFRQGLWLRQVUHODWHGWRZLQGVEORZLQJVWURQJO\ IURPWKHVRXWKHDVWWRVRXWKZHVWDORQJWKHFRDVWSULRUWRDIURQWDOSDVVDJH7KHVHZLQGVW\SLFDOO\ WXUQ WRZDUG WKH VRXWKVRXWKHDVW WR VRXWK D VKRUW GLVWDQFH RIIVKRUH  :LQG ZDYHV ZLWK SHDN HQHUJLHVDYHUDJLQJEHWZHHQDQGVHFRQGVUHDFKWKHVKRUHZLWKPLQLPDOORVVHVGXHWRLVODQG VKHOWHULQJ RU UHIUDFWLRQ :DYH KHLJKWV DUH JHQHUDOO\ LQ WKH UDQJH RI  WR  IW  WR  P

([WUHPH ZDYH KHLJKWV DUH UDUH EHFDXVH WKH IHWFK DQG RIWHQ WLPHV WKH GXUDWLRQ RI WKHVH ZLQG ZDYHVDUHVKRUWOLYHG7KHIHWFKLVGHILQHGDVDUHJLRQLQZKLFKWKHZLQGVSHHGDQGGLUHFWLRQDUH UHDVRQDEO\FRQVWDQW
91 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


Tropical Storm Swell
7URSLFDO F\FORQHV DUH SURGXFHG E\WURSLFDO KXUULFDQHVWKDW FRPPRQO\ GHYHORS DWORZODWLWXGHV RIIWKHZHVWFRDVWRI0H[LFRIURP-XO\WR2FWREHU7KHVHVWRUPVILUVWPRYHZHVWDVWKH\GHSDUW WKH FRDVW RIPDLQODQG0H[LFRWKHQ FXUYH QRUWK DQG QRUWKHDVW EHIRUH GLVVLSDWLQJLQWKH FROGHU ZDWHUVRII%DMD&DOLIRUQLD7KHVZHOOZDYHVJHQHUDWHGE\WKHVHHYHQWVXVXDOO\GRQRWH[FHHGIW

P
LQKHLJKW+RZHYHURQUDUHRFFDVLRQVWKHRIIVKRUHZDWHUVDUHZDUPHQRXJKWRIDFLOLWDWH KXUULFDQH PLJUDWLRQ WR PRUH QRUWKHUQ ODWLWXGHV WKDQ XVXDO  ,Q 6HSWHPEHU  
 D KXUULFDQH
SDVVHG GLUHFWO\ RYHU VRXWKHUQ&DOLIRUQLD JHQHUDWLQJ UHFRUGHG ZDYH KHLJKWV RI   IW
P

7KLVVWRUPFDXVHGZLGHVSUHDGGDPDJHDORQJWKHFRDVW
Extratropical Cyclone of the Southern Hemisphere (Southerly Swell) )URPWKHPRQWKVRI$SULOWKURXJK2FWREHUDQGWRDOHVVHUH[WHQWWKHUHPDLQGHURIWKH\HDUODUJH 6RXWK 3DFLILF VWRUP V\VWHPV WUDYHUVLQJ WKH RFHDQ EHWZHHQ VRXWK ODWLWXGH  GHJUHHV DQG  GHJUHHVIURP$XVWUDOLDWR6RXWK$PHULFDVHQGVZHOOVQRUWKZDUGWRWKHZHVWFRDVWRI&HQWUDODQG 1RUWK$PHULFD7\SLFDOVRXWKHUQKHPLVSKHUHVZHOOUDUHO\H[FHHGVIW P
LQKHLJKWLQGHHS
ZDWHU EXWZLWK SHULRGV UDQJLQJ EHWZHHQ DQG  VHFRQGVWKH\FDQ EUHDNDW RYHUWZLFHWKDW KHLJKWZKHQWKH\UHDFKWKHFRDVW7KHVRXWKHUQVZHOODOVRFDXVHVDUHYHUVDOLQWKHSUHGRPLQDQWO\ VRXWKZDUG IORZ RI OLWWRUDO VDQG  'XULQJ VXPPHU PRQWKV WKHVH ZDYHV GRPLQDWH WKH OLWWRUDO SURFHVVHVRIWKHUHJLRQGULYLQJDORQJVKRUHFXUUHQWVQRUWKZDUGDVWKHQRUWKHUQKHPLVSKHUHVZHOOV DUHNHSWDWED\
:DYH&KDUDFWHULVWLFV2IIVKRUH6DQ&OHPHQWH
:DYHFOLPDWRORJ\LQIRUPDWLRQLVDYDLODEOHIRUWKHRIIVKRUHDUHDRI6DQ&OHPHQWHLQWKHIRUPRI GLUHFW PHDVXUHPHQWV DV SDUW RI WKH &RDVWDO 'DWD ,QIRUPDWLRQ 3URJUDP &',3
  7KH &',3
VKDOORZZDWHU VWDWLRQ PRVW DSSOLFDEOH WR 6DQ &OHPHQWH LV WKH 6DQ &OHPHQWH 6[\ VORSH DUUD\

6WDWLRQ ,'
ORFDWHGDSSUR[LPDWHO\ IW
P
RIIVKRUHRIWKH6DQ&OHPHQWH3LHULQ
IW
 P
 RI ZDWHU  7KH 6[\ VORSH DUUD\ LV D GLUHFWLRQDO ZDYH KHLJKW UHFRUGHU ZLWK D PRQWK UHFRUG GXULQJ WKH SHULRG 


 DW QRPLQDOO\ IRXU REVHUYDWLRQV SHU GD\  7KH KHLJKWDQGGLUHFWLRQGDWDUHFRUGVDUHLQWHUPLWWHQWUHSRUWLQJDSSUR[LPDWHO\PRQWKVRIWKH

DYDLODEOH
 RQHORQJ JDSWKDW RFFXUUHG GXULQJWKH SHULRG -XO\  WKURXJK -XO\ 

DFFRXQWV
IRU WKH PDMRULW\ RI PLVVLQJ UHFRUGV  7KHVH GDWD UHFRUGV DUH XVHG WR GHWHUPLQH WKH GDLO\ DQG DQQXDO ZDYH FOLPDWHWKH H[WUHPH ZDYH DQDO\VLV DQG GDWDLQSXWLQWR ZDYHWUDQVIRUPDWLRQ DQG VKRUHOLQHGDPDJHQXPHULFDOPRGHOV
7KHKLVWRJUDPIRUVLJQLILFDQWZDYHKHLJKWRII6DQ&OHPHQWHLVVKRZQLQ)LJXUH)LJXUH LOOXVWUDWHVWKDWWKHPRVW FRPPRQO\ RFFXUULQJ VLJQLILFDQWZDYH KHLJKWLVLQWKH UDQJH  IW

P
)LJXUH DOVRLOOXVWUDWHVWKHFRPSOHWHDEVHQFH RI YHU\ODUJH VLJQLILFDQWZDYH KHLJKWV
!IW>P@
7KHPD[LPXPUHFRUGHGVLJQLILFDQWZDYHKHLJKWLVIW P
7KH
ODFNRIKLJKHUUHFRUGHGZDYHVPD\EHGXHWRVHYHUDOFRQGLWLRQVLQFOXGLQJWKHIDFWWKDWWKH6[\ VORSHDUUD\PHDVXUHVWKHZDYHFOLPDWHLQIW
P
RIZDWHUZKHUHDVZDYHVREVHUYHGFORVHU
WRWKH EUHDNLQJ GHSWK ZLOO EHODUJHU GXHWR VKRDOLQJ  $OVRWKH ZDYH GDWD DUH VSHFWUDOHQHUJ\ EDVHG
+PR
 UDWKHUWKDQVWDWLVWLFDOO\EDVHG
+
ZKLFKWHQGVWRXQGHUUHSUHVHQWZDYHKHLJKWV
FRPSDUHGWRVWDWLVWLFDOO\EDVHGZDYHGDWD7KHZDYHFOLPDWHLVPHDVXUHGLQWKHYLFLQLW\RIWKH 3LHUDQGLVDVVXPHGUHSUHVHQWDWLYHRIWKHHQWLUH6DQ&OHPHQWH3URMHFWDUHD 92 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH6LJQLILFDQW:DYH+HLJKW+LVWRJUDPIRU:DYHVRII6DQ&OHPHQWH 


7KHZLQWHUZDYHFOLPDWRORJ\FDQEHGHYHORSHG IURPWKHPHDVXUHGZDYHFOLPDWH%HFDXVHWKH VHYHUHVW ZDYH FOLPDWH RFFXUV GXULQJ WKH ZLQWHU VHDVRQ WKH ZDYH FOLPDWRORJ\ ZDV GHYHORSHG EDVHGRQWKHZLQWHUZDYHSRSXODWLRQ7KHZDYHGDWDZDVFDWHJRUL]HGEDVHGRQWKH'HFHPEHU 0DUFKZLQWHUPHWHRURORJLFDOVHDVRQ7KHKLVWRJUDPVIRUWKHZLQWHUVLJQLILFDQWZDYHKHLJKWDUH VKRZQLQ)LJXUH
%DVHGRQWKHPHDVXUHGGDWDWKHDQQXDOPD[LPXPZDYHKHLJKWVIRUHDFK\HDUZHUHGHWHUPLQHG 7KH DQQXDO PD[LPXP ZDYH KHLJKWV DUH VKRZQ LQ 7DEOH  )LJXUH  LOOXVWUDWHV WKDW WKH GRPLQDQW ZDYH SHULRGV RII 6DQ &OHPHQWH DUH LQ WKH UDQJH  VHFRQGV ZLWK D VPDOOHU VHFRQGDU\SHDNDWVHFRQGV7KHWZRSHDNVLQWKHGLVWULEXWLRQGHPRQVWUDWHWKHGXDOVHDVZHOO QDWXUHRIWKHZDYHFOLPDWH6KRUWHUSHULRGZDYHVDUHW\SLFDOO\DVVRFLDWHGZLWKVHDFRQGLWLRQV 
ORQJHUSHULRGZDYHVDUHW\SLFDOO\DVVRFLDWHGZLWKVZHOOFRQGLWLRQV )LJXUHVKRZVGLUHFWLRQDODSSURDFKGDWDIRUZDYHVRII6DQ&OHPHQWH7KLVILJXUHLOOXVWUDWHV WKDWDSSUR[LPDWHO\
SHUFHQWRIWKHZDYHVDSSURDFKIURPWKHUHODWLYHO\QDUURZGHJUHHEDQG EHWZHHQžžDQGDOORWKHUDSSURDFKGLUHFWLRQVDUHPLQRURUQHJOLJLEOH6KRUHOLQHQRUPDO LQ WKH 6DQ &OHPHQWH DUHD LV ž  7KHUH LV D YHU\ VPDOO IUDFWLRQ RI ZDYHV  SHUFHQW

DSSURDFKLQJ IURP žž GLUHFWLRQV FRQVLGHUHG WR EH RI WURSLFDO GHSUHVVLRQ RU VRXWKHUQ KHPLVSKHUHRULJLQV6LJQLILFDQWO\WKHSUHGRPLQDQWZHVWHUO\ZDYHGLUHFWLRQHQYHORSVERWKORFDO VHDVDQGH[WUDWURSLFDOVZHOO
93 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH6LJQLILFDQW:DYH+HLJKW+LVWRJUDPRII6DQ&OHPHQWH:LQWHU'DWD 


7DEOH$QQXDO0D[LPXP:DYH+HLJKWVRII6DQ&OHPHQWH 


<HDU 0R'\ +VP
IW
 7S
VHF
 'LU
GHJ





































'HF
$SU
1RY

)HE
0DU
-DQ
1RY
-DQ
)HE
)HE
-DQ
2FW
'HF
-DQ













































































94 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH6SHFWUDO3HDN3HULRG+LVWRJUDPIRU:DYHVRII6DQ&OHPHQWH 


)LJXUH:DYH'LUHFWLRQ+LVWRJUDPIRU:DYHVRII6DQ&OHPHQWH 


95 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 /LWWRUDO3URFHVVHVDQG6HGLPHQW7UDQVSRUW
%HDFKHV DUH G\QDPLF HQYLURQPHQWV VXEMHFWWR VHDVRQDOPRYHPHQW RI VDQG RIIVKRUH GXULQJWKH ZLQWHU

HURVLRQ
 DQG RQVKRUH

DFFUHWLRQ
 GXULQJ WKH VXPPHU
86$&( D
  6DQG DOVR LV
WUDQVSRUWHGDORQJVKRUHGXULQJLWVRIIVKRUHRQVKRUHVHGLPHQWDWLRQF\FOH 2FHDQVLGH/LWWRUDO&HOO
6DQ&OHPHQWHLVZLWKLQWKH2FHDQVLGH/LWWRUDO&HOO7KH2FHDQVLGH/LWWRUDO&HOOH[WHQGVIRU PL
NP
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
7KHFHOOLVGLYLGHGLQWRWKUHHVXEFHOOVEDVHGRQQDWXUDOSK\VLRJUDSKLFXQLWV 

'DQD3RLQWWR
6DQ 0DWHR 3RLQW

 6DQ 0DWHR 3RLQW WR &DUOVEDG 6XEPDULQH &DQ\RQ DQG 
 &DUOVEDG
6XEPDULQH&DQ\RQWR3RLQW/D-ROOD7KH&LW\RI6DQ&OHPHQWHLVORFDWHGLQWKHQRUWKVXEFHOO 6HGLPHQW6RXUFHV
1XPHURXV ULYHUV DQG VPDOO VWUHDPV GLVFKDUJH VHGLPHQW LQWR WKH 2FHDQVLGH /LWWRUDO &HOO DV VKRZQLQ)LJXUH6DQ-XDQ&UHHNDQG6DQ0DWHR&UHHNDUHFRQVLGHUHGPDMRUULYHUV\VWHPV IRUWKHLQIOX[RIVHGLPHQWLQWRWKHQRUWKVXEFHOO7DEOH SURYLGHVDUDQJHRIHVWLPDWHVRIWKH
VHGLPHQWORDGVFDUULHGE\IOXYLDOV\VWHPVRIWKLVOLWWRUDOVXEFHOO 6HGLPHQW%XGJHW
$ VHGLPHQW EXGJHW IRU ZLWKRXWSURMHFW FRQGLWLRQV KDV EHHQ GHYHORSHG EDVHG SULPDULO\ RQ WKH &RDVWRI&DOLIRUQLD6WRUPDQG7LGDO:DYH6WXG\
&&67:686$&(


'HYHORSPHQWRIWKH
VHGLPHQW EXGJHW LQYROYHV GHILQLQJ WKH VHGLPHQW VRXUFHV VLQNV DQG ORVVHV  WUDQVSRUW PRGHV

HURVLRQDQGDFFUHWLRQUDWHV
DQGEDODQFLQJWKHUHVXOWDQWEXGJHW
7KHDQDO\VLVRIWKHEXGJHWRIVHGLPHQWIRUWKLVFHOOKDVEHHQFDUULHGRXWIRUWKUHHWLPHSHULRGV 


WKHSHULRGIURP
±


DPLOGXQLIRUPZHDWKHUSHULRGIURP
±
DQG

D
SHULRGRIPRUHYDULDEOHZDYHFOLPDWHFRYHUHGE\WKH&&67:6VWXGLHVIURP ±

7KH

±
³QDWXUDO´EXGJHWSHUPLWVDQXQFOXWWHUHGORRNDWWKHFHOODVLWSUHGDWHVFRQVWUXFWLRQRI GDPVDQG2FHDQVLGH+DUERUDOWKRXJKLWQHFHVVDULO\GUDZVRQVRPHILQGLQJVIURPODWHUVWXGLHV 7KHPLOG XQLIRUP SHULRG IURP 
 ± 
ZDV VHOHFWHGWRHYDOXDWHWKHHIIHFWV RI2FHDQVLGH +DUERUDWDWLPHZKHQWKHZDYHFOLPDWHZDVFRQVLVWHQWIURP\HDUWR\HDUDQGOHVVYDULDEOHWKDQ WKH SUHVHQW ZDYH FOLPDWH  7KH ODVW SHULRG RI PRUH YDULDEOH ZDYH FOLPDWH   ± 


HPSKDVL]HVWKHFKDQJHLQZDYHFOLPDWHIURPRQHWKDWJDYHDFRQVLVWHQWVWURQJVRXWKHUO\OLWWRUDO WUDQVSRUWWR RQHWKDW \LHOGV DPRUH YDULDEOHWUDQVSRUW ZLWK D QHW QRUWKHUO\ FRPSRQHQWLQ VRPH \HDUV7KHUHVXOWDQWVHGLPHQWEXGJHWIRUWKHWKUHHWLPHSHULRGVLVVKRZQLQ7DEOH 96 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH0DMRU5LYHUVDQG'UDLQDJH%DVLQV2FHDQVLGH/LWWRUDO&HOO 7DEOH
6HGLPHQW'LVFKDUJHIURP5LYHUVDQG6WUHDPV
6DQ-XDQ 6DQ&OHPHQWH 6DQ0DWHR
'UDLQDJH$UHDPL
KD
 





 


5LYHU6WUHDP
'LVFKDUJH5DWH\G

\U
P

\U

6WXG\  
0RIIDWW 1LFKRO
 


 


 


&&67:6


   


6LPRQV/L
 

  


&&67:6
6LPRQV/L


 

 

 



&&67:6


0RIIDWW 1LFKRO


 

  


&2(/$'

 



  
97 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH6HGLPHQW%XGJHWIRU2FHDQVLGH/LWWRUDO&HOO

1RUWK±6DQ&OHPHQWH
LQP

\U


 

 



,QSXW 2XWSXW ,QSXW 2XWSXW ,QSXW 2XWSXW
4O      
4Q      
4ER  
   
4D  
   
4UV      
7RWDO 
 
  
  
1HW
W

9˜˜   
W;˜˜
P\U
   
1RWHV

4 WRWDOVDQGWUDQVSRUWUDWHLQWRRURXWRIFHOOP

\U
D DUWLILFLDOQRXULVKPHQWE\SDVVLQJGUHGJLQJHWF
E EOXIIODQGVHURVLRQ
LQFOXGHVVHDFOLIIVJXOOLHVFRDVWDOWHUUDFHVOXPSVHWFDVGLVWLQFWIURPULYHUV O ORQJVKRUHWUDQVSRUWRIVDQGLQDQGQHDUWKHVXUI]RQH Q QHDUVKRUHWUDQVSRUWDORQJWKHFRDVWRXWVLGHWKHVXUI]RQH R RQVKRUHRIIVKRUHWUDQVSRUWDWWKHEDVHRIWKHVKRUHULVH U ULYHU\LHOGWRWKHFRDVW
V ORVWWRVXEPDULQHFDQ\RQV
˜9
˜W VDQGYROXPHFKDQJHUDWHP

\U
˜;˜W VKRUHOLQHFKDQJHUDWHP\U
7KH UHVXOWDQW VHGLPHQW EXGJHWLQGLFDWHVWKH VKRUHOLQHLVHVVHQWLDOO\LQ EDODQFH EHWZHHQHURVLRQ DQGDFFUHWLRQ7KHEXGJHWLVFRQVLGHUHGWREHLQEDODQFHZKHQWKHVKRUHOLQHFKDQJHUDWH ˜;˜W

FRPSXWHG IURP WKH YROXPH IOX[ LV OHVV WKDQ  IW\U  P\U
  7KH VKRUHOLQH LQGLFDWHV D
EDODQFHLQWKH³QDWXUDO´WLPHSHULRGDQGWKHPRVWUHFHQWYDULDEOHZDYHFOLPDWHWLPHSHULRG7KH QHWYROXPHIOX[LQGLFDWHVWKHEXGJHWLVYHU\VOLJKWO\DFFUHWLRQDOGXULQJWKHXQLIRUPZDYHFOLPDWH SHULRG
/RQJ7HUP6KRUHOLQH&KDQJH
+LVWRULFDO6KRUHOLQH&KDQJH
6KRUHOLQHFKDQJHVZLWKLQWKH2FHDQVLGH/LWWRUDO&HOOZHUHLQYHVWLJDWHGE\WKH&&67:6XVLQJ KLVWRULFDO PDSV DQG QDXWLFDO FKDUWV DHULDO SKRWRV DQG WKH UHVXOWV RI JURXQG DQG EDWK\PHWULF VXUYH\HIIRUWV7KHUHVXOWVRIWKHVHH[WHQVLYHHIIRUWVDUHVKRZQLQ7DEOH 7DEOHLQGLFDWHVWKHDORQJVKRUHYDULDWLRQRIVKRUHOLQHFKDQJHZLWKLQWKHLPPHGLDWHYLFLQLW\ RI6DQ&OHPHQWH7KH6DQ&OHPHQWHVWXG\DUHDLVEHWZHHQ6& 6WDWH%HDFK
DQG6&

6KRUHFOLIIV
7KHUHDUHFRQWUDGLFWRU\WUHQGVREVHUYHGLQWKHGDWD7KHGDWDVHWVDUHRXWRISKDVH ZLWKDGMDFHQWORFDWLRQV
DORFDWLRQLVHURVLRQDOZKLOHWKHDGMDFHQWWUDQVHFWLVDFFUHWLRQDODQGYLFH YHUVD7KHPHDQYDOXHVGXULQJWKH

DQG

SHULRGVDUHVLPLODULQPDJQLWXGH

WKHPHDQYDOXHVGXULQJWKH


SHULRGDUHUHPDUNDEO\KLJKHU'HWDLOHGLQVSHFWLRQRIWKH GDWDLQGLFDWHV D VKRUHOLQHWKDWLV HLWKHU HURVLRQDO EDODQFHG RU DFFUHWLRQDO  'XULQJ WKH SHULRG 

WKHVKRUHOLQHLQGLFDWHGHVVHQWLDOO\]HURFKDQJHZLWKDIW\U P\U
FKDQJH
98 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

LQWKHYLFLQLW\RI6&
/LQGD/DQH
'XULQJWKHSHULRG

WKHVKRUHOLQHYDFLOODWHG
DORQJVKRUH EHWZHHQ SRVLWLYH DQG QHJDWLYH  7KH VKRUHOLQH FKDQJH ZDV DSSUR[LPDWHO\ HTXDO EHWZHHQSRVLWLYHDQGQHJDWLYHUDQJLQJIURPIW\U
P\U
DQGIW\U
P\U

'XULQJ WKH SHULRG 


 WKH VKRUHOLQH ZDV SUHGRPLQDQWO\ SRVLWLYH ZLWK DFFUHWLRQ UDWHV UDQJLQJIURPIW\U
P\U
WRIW\U
P\U

DQHURVLRQYDOXHRIIW\U

P\U
ZDVUHFRUGHGDW6&
76WUHHW

7DEOH/RQJ7HUP6KRUHOLQH&KDQJH5DWHVLQ6DQ&OHPHQWH$UHD 0++:6KRUHOLQH&KDQJH5DWH
IW\U>P\U@
 0D[6HDVRQDO0++:
0RYHPHQW
IW>P@

/RFDWLRQ 

 

 


6XPPHU :LQWHU
6&
6&
6&
6&
'%
'%
'%

'%
































































































































&XUUHQW%HDFK:LGWK0RQLWRULQJ
7KH &LW\ RI 6DQ &OHPHQWH LQLWLDWHG D EHDFK PRQLWRULQJ SURJUDP WR GRFXPHQW FKDQJHV LQ WKH FRQGLWLRQ RI WKH VKRUH EHWZHHQ 'DQD 3RLQW +DUERU DQG 6DQ0DWHR 3RLQW  7KH UHVXOWV RI WKLV SURJUDP SURYLGH D EDVLV IRU HYDOXDWLQJ WKH LPSDFWV RI QDWXUDO HYHQWV DQG DQWKURSRJHQLF RSHUDWLRQV  7KH SURJUDP LQFOXGHV VHPLDQQXDO IXOO FURVVVKRUH SURILOH VXUYH\V DW  UHSUHVHQWDWLYHVLWHVDQGELPRQWKO\EHDFKZLGWKPHDVXUHPHQWVDW RIWKHSURILOHVLWHV
7UDQVHFW ORFDWLRQV DUH VKRZQ LQ 7DEOH   7KH  SURILOH ORFDWLRQV LQFOXGH  KLVWRULFDO ORFDWLRQVRULJLQDOO\HVWDEOLVKHGE\WKH&&67:6DQGORFDWLRQVHVWDEOLVKHGVSHFLILFDOO\IRUWKH EHDFKPRQLWRULQJSURJUDP
5HFHQW6KRUHOLQH&KDQJH5DWH
7KH VKRUHOLQH FKDQJH UDWH FDQ EH GHWHUPLQHG IURP WKH DJJUHJDWH PHDVXUHG GDWD FROOHFWHG LQ VXSSRUWRIWKH&&67:6DQGWKH&LW\RI6DQ&OHPHQWHEHDFKZLGWKPRQLWRULQJSURJUDP7KH GDWDLVDFRPSLODWLRQRIPHDVXUHPHQWVREWDLQHGLQWKH VWKURXJKWKHSUHVHQW
99 6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH6DQ&OHPHQWH$UHD%HDFK3URILOH7UDQVHFWV
6LWH
7UDQVHFW
'HVLJQDWLRQ /RFDWLRQ 2ULJLQ












'%
'%
6&
6&
6&
6&

6&
6&
6&
6&
6&
1'RKHQ\6WDWH%HDFK
1'RKHQ\6WDWH%HDFK
6KRUHFOLIIV
&DSLVWUDQR7UDLOHU&RXUW
1RUWK%HDFK
'LMH&RXUW
/LQGD/DQH
76WUHHW
/RVW:LQGV
6DQ&OHPHQWH6WDWH%HDFK
&RWWRQV3RLQW
&&67:6
&&67:6
&&67:6
(VW2FW
(VW2FW
(VW2FW
&&67:6
&&67:6
(VW2FW
&&67:6
(VW2FW
,WLVQRWHGWKDWWKLVEHDFKZLGWKGDWD VHWLVH[SUHVVHG UHODWLYHWRWKH06/FRQWRXU7KHEHDFK ZLGWKVDUHWKHGLVWDQFHEHWZHHQDIL[HGSRLQWRQWKHEDFNVKRUHDQGWKHDSSUR[LPDWHORFDWLRQRI WKH06/FRQWRXU7KLV06/ EHDFKZLGWKLQFRUSRUDWHVD SRUWLRQ RIWKH³ZHW´ EHDFK HJWKH
IRUHVKRUH EHWZHHQWKH06/ FRQWRXU DQGWKH EHUP
 ZKHUHDVWKH EHUP EHDFK ZLGWK GHILQLWLRQ
ZKLFKLVXVHGLQWKLVVWXG\LQFRUSRUDWHVRQO\WKH³GU\´SRUWLRQRIWKHEHDFK7KH06/EHDFK ZLGWKV ZLOO EH LQKHUHQWO\ JUHDWHU WKDQ WKH EHUP EHDFK ZLGWKV 7KH 06/ LQGLFDWHV D SRVLWLYH EHDFKZLGWKZKHUHWKHEHDFKKDVEHHQSUHYLRXVO\GHILQHGLQPDQ\UHDFKHVDVKDYLQJ]HURZLGWK %DVHG RQ D W\SLFDO EHDFK VORSH RI +
9 D EHUP HOHYDWLRQ RI  IW
 P
 DQG D06/
FRQWRXUHOHYDWLRQRIIW
P
WKHHVWLPDWHGKRUL]RQWDOEHDFKZLGWKDWWULEXWDEOHWRWKLV FRQWRXUHOHYDWLRQGLIIHUHQFHLVDSSUR[LPDWHO\IW
P
,WFDQEHVKRZQWKDWWKHGU\EHDFK
ZLGWK LV ]HUR DW /LQGD /DQH DQG QHDU ]HUR DW WKH RWKHU ORFDWLRQV  7KXV WKH GDWD VHWV DUH FRQVLVWHQWZLWKWKHFRQFOXVLRQVGHYHORSHGLQWKLVVWXG\,WLVDVVXPHGWKDWWKHWUHQGIRUWKHEHUP ZLGWKVZLOOFRLQFLGHZLWKWKHWUHQGIRUWKH06/GDWD )LJXUH  VKRZVWKHPHDVXUHG GDWD IRUWKH IRXUORFDWLRQVWKDW DUH KLVWRULFDOWRWKH&&67:6

VROLGOLQHV
7KHOLQHDUUHJUHVVLRQIRUHDFKGDWDVHWLVVKRZQDVGRWWHGOLQHV7KHVORSHRIWKH OLQHVUHSUHVHQWVWKHPHDQVKRUHOLQHWUHQGIRUHDFKUHVSHFWLYHGDWDVHW6WDWH%HDFK76WUHHWDQG /LQGD/DQH VKRZD GHFOLQLQJ EHDFKZLGWKZKLOHWKH EHDFKZLGWKWUHQGDW6KRUHFOLIIVLQGLFDWHV ZLGHQLQJ
7KHORQJWHUP VKRUHOLQHFKDQJH UDWH GDWD VHWVDUH VKRZQLQ7DEOH 7KHPHDVXUHG GDWDLV VKRZQIRUWKHIRXUORFDWLRQVWKDWDUHKLVWRULFDOWRWKH&&67:67KHVKRUHOLQHFKDQJHGDWDVHWV DUH FRQVLGHUHG WRJHWKHU WR REWDLQ UHSUHVHQWDWLYH YDOXHV IRU WKH HQWLUH VWXG\ DUHD  7KH PHDQ VKRUHOLQH FKDQJH UDWHLV ± IW\U
P\U
WKHPD[LPXP HURVLRQ UDWHLV ± IW\U

P\U
DQGWKHPD[LPXPDFFUHWLRQUDWHLVIW\U
P\U

7KHUHDUHFRQWUDGLFWRU\WUHQGVREVHUYHGLQWKHGDWD7KH6KRUHFOLIIVGDWDVHWLVRXWRISKDVHZLWK WKHRWKHUWKUHH7KHWKUHHGDWDVHWVDURXQGWKH3LHUDUHFRQVLVWHQWLQWUHQGDQGSKDVH7KHGDWD VHWV LQGLFDWH FRQVLVWHQW HURVLRQ DQG DFFUHWLRQ WUHQGV DW WKH VDPH WLPH  7KH PHDQ YDOXHV DUH VLPLODULQPDJQLWXGH7KHGDWDVHWDW6KRUHFOLIIVLVQHDUO\RSSRVLWHLQEHKDYLRU7KHEHDFKLV 100
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

HURVLRQDO DQGRU DFFUHWLRQDO ZKHQWKH RWKHUV DUH DFFUHWLRQDO DQGRU HURVLRQDO 7KH GDWDLQWKH 
VLVFRQVLVWHQWDPRQJGDWDVHWV$IWHUWKHORQJDEVHQFHRIGDWDLQWKH

VWKHGDWD
LQGLFDWHVDORVVRIEHDFKZLGWK
)LJXUH5HFHQW6KRUHOLQH&KDQJH06/%HDFK:LGWK
P

7DEOH6XPPDU\RI5HFHQW/RQJ7HUP6KRUHOLQH&KDQJH5DWHV /RFDWLRQ (URVLRQ5DWH
IW\U
P\U

6&6KRUHFOLIIV 


6&/LQGD/DQH 



6&7±6WUHHW 


6&6WDWH%HDFK 



&URVVVKRUH3URILOHV
&URVVVKRUHSURILOHVDUHFRPSLOHGIURPWKH/,'$5WRSRJUDSKLFGDWDDQGEDWK\PHWULFPHDVXUHG GDWD3URILOHVIURPWKHYLFLQLW\RI6DQ&OHPHQWH3LHUDQG0DULSRVD3RLQWDUHUHSUHVHQWDWLYHRI WKH EHDFK DQG WKH DUPRUHG VKRUHOLQH UHVSHFWLYHO\ WKDW DUH FKDUDFWHULVWLF LQ WKH 3URMHFW DUHD

)LJXUH DQG)LJXUH 
2QO\WKH SRUWLRQ RIWKH SURILOH IURPWKH EOXIIWRWKHZDWHUOLQHLV 101
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


VKRZQ WR EHWWHU LOOXVWUDWH WKH GHWDLO RI WKH IRUHVKRUH DQG EDFNVKRUH UHJLRQV  7KH SURILOH FHQWHUOLQHLVHVWDEOLVKHGDWWKHVHDZDUGUDLORIWKH6&55$UDLOURDG 7KH 3LHU DUHD EHDFK SURILOH LQGLFDWHV D W\SLFDO EHUP HOHYDWLRQ RI  IW  P
 D W\SLFDO
IRUHVKRUHVORSHRI+
9±+
9DQRIIVKRUHVORSHRI+
9DQGDUDLOURDGHOHYDWLRQRI
DSSUR[LPDWHO\  IW
 P
  7KH 0DULSRVD 3RLQW DUHD SURILOH LQGLFDWHV D PHDQ UHYHWPHQW HOHYDWLRQRI IW

P
W\SLFDO UHYHWPHQWVORSHRI+
9WRHHOHYDWLRQDWDSSUR[LPDWHO\
IWDQRIIVKRUHVORSHRI+
9DQGDUDLOURDGHOHYDWLRQRIDSSUR[LPDWHO\IW
P

)LJXUH&URVV6KRUH3URILOHRI%HDFK
)LJXUH&URVV6KRUH3URILOHRI$UPRUHG6KRUHOLQH
6HGLPHQW3URILOH7KLFNQHVV
'DWD FROOHFWHG IRUWKH 6DQG7KLFNQHVV 6XUYH\5HSRUW 86$&( 

 DOORZV HVWLPDWLRQ RIWKH
DYDLODEOH VHGLPHQW VXSSO\ DQG FRQVHTXHQWO\ DQ\ SRWHQWLDO OLPLWV WR HURVLRQ  7KLV VWXG\ FRQGXFWHG MHW SURELQJ DORQJ YDULRXV SURILOHV WR GHWHUPLQH WKH DYDLODEOH VHGLPHQW WKLFNQHVV 7KUHHSURILOHVLQWKH6DQ&OHPHQWHDUHDZHUHMHWSUREHGLQFOXGLQJ6& 6DQ&OHPHQWH6WDWH
%HDFK
6&
76WUHHW
DQG6&
&DSLVWUDQR6KRUHV
7KH VXUYH\ UHVXOWVLQGLFDWHWKH
VHGLPHQWWKLFNQHVVFURVVVKRUHDORQJWKHSURILOH7KHUHVXOWVDUHVXPPDUL]HGLQ7DEOH 2Q SURILOH6&WKH VHGLPHQWWKLFNQHVV UDQJHV IURP  IW P
7KHDYHUDJH
102
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

SURILOHLV FRQVLVWHQWO\WKLFN  IW
P
 DFURVVWKH EHDFKORFDWLRQV DQGLV QHDU ]HUR
IW
P
DFURVVWKHVHDZDUGSRUWLRQRIWKHSURILOH
2QSURILOH6&WKHVHGLPHQWWKLFNQHVVUDQJHVIURPIW P
7KHDYHUDJHSURILOH
LVFRQVLVWHQWO\WKLFN
IW
P
DFURVVWKHEHDFKORFDWLRQVDQGLVQHDU]HURIW

P
DFURVVWKHLQQHUVHDZDUGSRUWLRQRIWKHSURILOH7KHGDWDLQGLFDWHVDWKLFNQHVVRI IW
P
DWWKHIXUWKHVWRIIVKRUHORFDWLRQ
2QSURILOH6&WKHVHGLPHQWWKLFNQHVVUDQJHVIURPIW P
7KHDYHUDJHSURILOH
LVFRQVLVWHQWO\WKLFN
IW
P
DFURVVWKHEHDFKORFDWLRQVDQGLVQHDU]HURIW

P
DFURVVWKHVHDZDUGSRUWLRQRIWKHSURILOH
7KHPHDVXUHPHQWUHVXOWVLGHQWLILHGFREEOHVERXOGHUVDQGRWKHUKDUGVXEVWUDWHDWYDULRXVGHSWKV DORQJWKHSURILOH7KHREVHUYDWLRQVLQFOXGH³VRPHSHEEOHVVFDWWHUHGRQEHDFKVXUIDFHDQGVRPH ERXOGHUVYLVLEOHDWEDFNVKRUH´DQG³RIIVKRUHVDQGVWRQHRXWFURSVZLWKORFDOERWWRPUHOLHIRIIW

 P
´  7KLV LQIRUPDWLRQ LV FRQVLVWHQW ZLWK  JHRORJLF LQIRUPDWLRQ FROOHFWHG GXULQJ JHRSK\VLFDOVWXGLHVFRQGXFWHGDVSDUWRIWKLVVWXG\DQGUHSRUWHGLQWKH*HRWHFKQLFDO$SSHQGL[

$SSHQGL[(

7DEOH6XPPDU\RI6DQG7KLFNQHVV
3UREH/RFDWLRQ 6DQG7KLFNQHVV
5DQJH/LQH 1R
5DQJH
IW
P

(OHYDWLRQ

0//:

IW
P

IW
P
 IW
P

$YHUDJH
IW
P

6&  


 







 


6&  

 

 



 


6&  


 


 



 


6&  








 


6&  









 



6&  








 


6&  

 

 



 


6&  

 

 



 


6&  


 

 



 



6&  





 

 


6&  







 


6&  











 


6&  



 

 



 



6&  

 












6&  

 


 



 


6&  






 

 


6&  










 


6&  









 


103
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 %LRORJLFDO5HVRXUFHV
7KHVHVHFWLRQVGHVFULEHELRORJLFDOUHVRXUFHVIRXQGLQWKHYLFLQLW\RIWKHSURSRVHGEHDFKILOODQG ERUURZVLWHDUHDVDORQJWKH6DQ&OHPHQWHFRDVWOLQH7KHVHGHVFULSWLRQVDUHEDVHGXSRQH[LVWLQJ OLWHUDWXUH RQWKH 6RXWKHUQ &DOLIRUQLD %LJKW
6&%
 ZKLFKLQFOXGHVWKH HDVWHUQ FRDVWOLQH RIWKH
3DFLILF 2FHDQ IURP 3RLQW &RQFHSWLRQ &DOLIRUQLDWR %DMD &DOLIRUQLD DV ZHOO DVWKH UHVXOWV RI LQWHUWLGDODQGVXEWLGDOUHFRQQDLVVDQFHVLWHVXUYH\VFRQGXFWHGRQ0DUFKDQG-XQHE\ &RDVWDO5HVRXUFHV0DQDJHPHQW
&50
VXUIJUDVVVXUYH\VSHUIRUPHGE\&KDPEHUV*URXS
LQ0DUFKDQGDNHOSDQGVXUIJUDVVVXUYH\SHUIRUPHGE\&KDPEHUV*URXSLQ-XO\ $
WHUUHVWULDOELRORJ\VXUYH\ZDVSHUIRUPHGE\&KDPEHUV*URXSRQ0D\ 6XUIJUDVV
Phyllospadix torreyi DQG P. Scouleri
 DQG JLDQW NHOS
Macrocystis pyrifera
 DUH
FRQVLGHUHG WR EH SDUWLFXODUO\ YDOXDEOH PDULQH KDELWDWV E\ WKH UHVRXUFH DJHQFLHV EHFDXVH WKH\ SURYLGH VKHOWHU IRU ILVKHVDQGLQYHUWHEUDWHVDWWDFKPHQW VLWHVIRU VHVVLOHLQYHUWHEUDWHVDQG IRUP WKHEDVLVRIPDQ\PDULQHIRRGFKDLQVERWKDVOLYLQJPDWHULDODQGGHWULWXV6XUIJUDVVDQGJLDQW NHOS EHGV RFFXU LQ OLPLWHG DUHDV DORQJ WKH VRXWKHUQ &DOLIRUQLD FRDVW XVXDOO\ RQ KDUG ERWWRP VXEVWUDWHFRPSDUHGWRPXFKPRUHFRPPRQVRIWERWWRPKDELWDW  7HUUHVWULDO6KRUHOLQH+DELWDW
 9HJHWDWLRQ
5HVLGHQWLDODQGFRPPHUFLDOGHYHORSPHQWDWUDLQUDLOZD\UHFUHDWLRQDODFWLYLWLHVDQGLQWURGXFHG QRQQDWLYH H[RWLF SODQWV KDYH ODUJHO\ HOLPLQDWHG QDWLYH WHUUHVWULDO YHJHWDWLRQ DORQJ WKH 6DQ &OHPHQWHVKRUHOLQHDQGDGMDFHQWXSODQGDUHDV7KHEHDFKDUHDLVKHDYLO\XVHGIRUUHFUHDWLRQDQG XSODQG YHJHWDWLRQ LV OLPLWHG SULPDULO\ WR RUQDPHQWDOV DQG D IHZ SDWFKHV RI QDWLYH YHJHWDWLRQ 7KHYHJHWDWLRQLVW\SLILHGE\FRPPRQQRQQDWLYHVSHFLHVVXFKDVLFHSODQW Lampranthus spp

VHD URFNHW
Cakile maritima
 $IULFDQ GDLV\
Gazania spp
 DQG PDWXUH SDOP WUHHV  1DWLYH
YHJHWDWLRQFRQVLVWVSULPDULO\RIVDOWJUDVV
Distichlis spicata
DQGMLPVRQZHHG
Datura wrightii

7KHVH VDQG\ EHDFK EDFN EOXIIV DUH RXWVLGHWKH 3URMHFW DUHD  7KH 6DQ&OHPHQWH 3URMHFW VWXG\ ERXQGDU\GRHVQRWLQFOXGHDQ\RIWKHWHUUHVWULDOYHJHWDWLRQW\SHVHDVWRIWKHUDLOURDGWUDFNVDQG WKHUHIRUHWKHVHDUHRPLWWHGIURPIXUWKHUDQDO\VLV
 0DULQH6KRUHOLQHDQG2IIVKRUH+DELWDWV
7KH SUHGRPLQDQW LQWHUWLGDO KDELWDW DORQJ 6DQ &OHPHQWH¶V VKRUHOLQH LV VDQG\ EHDFK DOWKRXJK VRPH URFN\ RXWFURSVWKDW H[WHQG IURPPLGEHDFKWRWKHORZLQWHUWLGDO DUH SUHVHQW DW0DULSRVD 3RLQWQRUWKRI6DQ&OHPHQWH3LHU%H\RQGWKHVXUI]RQHWKHVHDIORRULVDPRVDLFRIVDQGDQG ORZWRKLJKUHOLHISDWFKUHHI6RPHSLQQDFOHVRIWKHUHHIDUHYLVLEOHLQWKHQHDUVKRUH]RQHDWORZ WLGHZKLOHWZR SURPLQHQW RIIVKRUH SLQQDFOHV EUHDNWKH VXUIDFH RIIVKRUH RI0DULSRVD 3RLQW DQG VRXWK RIWKH 6DQ &OHPHQWH 3LHU  2WKHU UHHI KDELWDWV DUHORFDWHG VRXWK RIWKH 3LHU RIIVKRUH RI 76WUHHW WKDW H[WHQGV ZHVW DQG WKHQ QRUWK DURXQG WKH HQG RI WKH 6DQ &OHPHQWH 3LHU

)LJXUH


104
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 5RFN\,QWHUWLGDO
$OWKRXJKWKHSUHGRPLQDQWLQWHUWLGDOKDELWDWDORQJ6DQ&OHPHQWH¶VVKRUHOLQHLVVDQG\EHDFKDQ DUHDRIVLJQLILFDQWURFN\LQWHUWLGDOLVSUHVHQWDW0DULSRVD3RLQWIW

P
QRUWKRIWKH6DQ
&OHPHQWH 3LHU DQG DSSUR[LPDWHO\  IW
 P
 QRUWK RI WKH QRUWKHUQ HQG RI WKH SURSRVHG
EHDFKILOOVLWHDW/LQGD/DQH%RXOGHUVDQGURFN\RXWFURSSLQJVLQWKLVDUHDVXSSRUWDYDULHW\RI DOJDO VSHFLHV
&50 
  ,Q WKH KLJK LQWHUWLGDO ERXOGHUV VXSSRUW ILODPHQWRXV JUHHQ DOJDH

EnteromorphaVSS
7KHPLGWRORZLQWHUWLGDODOJDHFRPSRVLWLRQLVGRPLQDWHGE\HQFUXVWLQJ UHG DOJDH
Lithophyllum VSSLithothamnion VSS
 HQFUXVWLQJ EURZQ DOJDH
Pseudolithoderma
VSS
DQGFRUDOOLQHDOJDH
CorallinaVSS
*UHHQDOJDH
EnteromorphaVSSDQGUlvaVSS
DQG
VHYHUDOVSHFLHVRIILODPHQWRXVUHGDOJDHDOVRRFFXULQWKHVH]RQHV/DUJHUEURZQDOJDHVSHFLHV FRORQL]HWKHEDVHRIWKHLQWHUWLGDOUHHIWKURXJKRXWWKHDUHDLQFOXGLQJSDOPNHOS Eisenia aborea

DQGIHDWKHUERDNHOS
Egregia menziesii
6XUIJUDVV
Phyllospadix torreyi
DQLPSRUWDQWVSHFLHV
WKDWHQKDQFHVWKHELRORJLFDOYDOXHRIQHDUVKRUHKDELWDWLVSUHVHQWLQWKHORZLQWHUWLGDOEHJLQQLQJ DSSUR[LPDWHO\  IW

 P
 RIIVKRUH RI WKH VDQG EHDFK  6XUIJUDVV VHUYHV DV D QXUVHU\ IRU &DOLIRUQLDVSLQ\OREVWHU
Panulirus interruptus
DQGSURYLGHVVKHOWHUIRUDYDULHW\RIMXYHQLOHDQG
DGXOWILVKHV6XUIJUDVVLVSUHVHQWWKURXJKRXWWKHORZLQWHUWLGDOSODWIRUPRI0DULSRVD3RLQWZKLFK LVXSFRDVWRXWVLGHRIWKHSURMHFWDUHD6XUIJUDVVRII0DULSRVD3RLQWRFFXUVDPLQLPXPRIWKUHH IHHWDERYHWKHVDQGOLQHZLWKQRPRUHWKDQRQHLQFKRIVDQGFRYHULQJWKHVXUIDFHRIWKH URFNV 6XUIJUDVVEODGHVLQWKLVDUHDDUHWRIW
WRP
LQOHQJWK
$ GLYHUVH PLGWRORZ LQWHUWLGDO LQYHUWHEUDWH FRPPXQLW\ LV IRXQG RQ ERXOGHUV DV ZHOO DV WKH VXUIDFHV RI WKH ORZO\LQJ SODWIRUP UHHIV DW 0DULSRVD 3RLQW &50 
  7KH PRVW FRPPRQ
VHVVLOH LQYHUWHEUDWH LQ WKLV DUHD LV WKH &DOLIRUQLD PXVVHO Mytilus caliornianus
 ZKLFK RFFXUV
WKURXJKRXWWKHPLGDQGORZLQWHUWLGDO]RQHVIRUPLQJPDVVHVRQWKHVLGHVDQGXSSHUVXUIDFHVRI WKHERXOGHUVDQGSODWIRUPUHHIV2WKHUFRPPRQWRDEXQGDQWLQYHUWHEUDWHVLQWKLVDUHDLQFOXGHWKH VROLWDU\DQGFRORQLDOIRUPVRIWKHDQHPRQH
Anthopleura aggregate
OLPSHWV
Collisella scabra
Tectura VSSCollisella digitalis
 FKLWRQV
Mopalia muscosa DQGNuttalina californica
 DFRUQ
EDUQDFOHV
Balanus glandula
DQGVQDLOV
Acanthina spirata
$OWKRXJKQRWFRPPRQWKHUHHI
EXLOGLQJ VDQGFDVWOH WXEHZRUP
Phragmatopoma californica
 ZDV IRXQG DURXQG WKH EDVH RI
VHYHUDOERXOGHUVLQWKHPLGLQWHUWLGDO]RQH
8SWRWHQVSHFLHVRI ILVKXWLOL]HWKHORZWRPLQXVWLGDO]RQHVRI URFN\LQWHUWLGDOKDELWDWVLQWKH 6&%
0(& 
  :RRO\ VFXOSLQ
Clinocottus analis
 LV RQH RI WKH PRUH FRPPRQO\
HQFRXQWHUHGILVKVSHFLHVLQWLGHSRROVEXWMXYHQLOHRSDOH\H Girella nigricans
URFNSRROEOHQQ\

Hypsoblennius gilberti
 VSRWWHG NHOSILVK
Gibbonsia elegans
 DQG &DOLIRUQLD FOLQJILVK

Gobiesox rhessodon
DOVRPD\EHSUHVHQW
&URVVDQG$OOHQ



105
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH
+LVWRULF.HOS&DQRS\DQG5HHI0DS
)LJXUHSURYLGHGE\6&(:KHHOHU1RUWK5HHI'HVLJQ3ODQ)HEUXDU\ 106
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 6DQG\,QWHUWLGDO
7KHVDQG\EHDFKDORQJWKH6DQ&OHPHQWHVKRUHLVYDULDEOHLQZLGWK7KHVKRUHOLQHDW0DULSRVD 3RLQWFRQVLVWVRIDULSUDSEDFNVKRUHHQYLURQPHQWWKDWSURWHFWVWKHUDLOURDGWUDFNV,PPHGLDWHO\ VHDZDUG RI WKH ULSUDS LV D YDULDEOHZLGWK DQG JHQWOHWRPRGHUDWH VORSLQJ VDQG\ EHDFK DSSUR[LPDWHO\WRIW
WRP
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
HWDO
 ,QWHUWLGDOLQYHUWHEUDWHVRIVDQG\EHDFKHVVKRZDFKDUDFWHULVWLF]RQDWLRQ UHODWHGWR WLGDOH[SRVXUH7KHFRPSRVLWLRQRIWKHLQYHUWHEUDWHFRPPXQLW\DWDJLYHQEHDFKDVZHOODVWKH ]RQDWLRQWHQGVWREHH[WUHPHO\G\QDPLFGXHWRWKHKLJKO\PRELOHQDWXUHRIWKHVDQG\VXEVWUDWH DQGWKH UHVRXUFHV RQZKLFKWKHVH DQLPDOV GHSHQG
'XJDQ DQG+XEEDUG 
0RVW H[SRVHG
VDQG\ EHDFKHV KDYHWZRWRWKUHH]RQHVLQKDELWHG E\ GLVWLQFW JURXSV RIPRELOHDQLPDOV7KHVH ]RQHV JHQHUDOO\ FRUUHVSRQG WR WKH UHODWLYHO\ GU\ VXEVWUDWH RI WKH XSSHU LQWHUWLGDO ]RQH DW DQG DERYH WKH GULIW OLQH WKH GDPS VDQG RI WKH PLGLQWHUWLGDO ]RQH DQG WKH ZHW VDQG RI WKH ORZHU LQWHUWLGDO]RQH
7KHORZHULQWHUWLGDO]RQH
VZDVK]RQH
LQVRXWKHUQ&DOLIRUQLDVDQG\EHDFKHVLVGRPLQDWHGE\WKH ILOWHUIHHGLQJPROHFUDEEmerita analogaZKLFKPRYHVXSDQGGRZQWKHEHDFKZLWKWKHWLGHV 7KH SRO\FKDHWH³EORRGZRUP´EuzonusDOVRLVFRPPRQLQWKHPLGWRORZHULQWHUWLGDO ,QWKH XSSHU LQWHUWLGDO GULIW NHOS LV DQ LPSRUWDQW VRXUFH RI IRRG IRU PDQ\ LQYHUWHEUDWHV  &RPPRQ RUJDQLVPVDVVRFLDWHGZLWKPDFURSK\WHZUDFNLQFOXGHEHDFKKRSSHUV MegalorchestiaVSS
NHOS
IOLHV
Coleopa vanduzeei
 LVRSRGV
Alloniscus perconvexus DQG Tylos punctata
 DQG YDULRXV
VSHFLHVRIEHHWOHV
7KHVDQG\LQWHUWLGDOLVDOVRXVHGE\DQHDUVKRUHILVKWKH&DOLIRUQLDJUXQLRQ Leuresthes tenuis

ZKLFKOD\VLWVHJJVLQWKHKLJKLQWHUWLGDO]RQHEHWZHHQ0DUFKDQG$XJXVW'XULQJWKHJUXQLRQ VSDZQLQJVHDVRQHJJVDQGGHYHORSLQJHPEU\RVDUHEXULHGLQWKHVDQGWRLQFXEDWHEHWZHHQWKH KLJKHVWWLGHVRIHDFKPRQWKDWWKHIXOODQGQHZPRRQ
0DUWLQ
7KHHJJVLQFXEDWHDIHZ
LQFKHVGHHSLQWKHVDQGDQGKDWFKDSSUR[LPDWHO\GD\VODWHUGXULQJWKHQH[WVHULHVRIKLJKWLGHV

&KDPEHUV *URXS 
  *UXQLRQ DUH NQRZQ WR VSDZQ RQ WKH EHDFK LQ WKH YLFLQLW\ RI 6DQ &OHPHQWH3LHU
.0DUWLQ3HSSHUGLQH8QLYHUVLW\SHUVFRPP

 6XEWLGDO+DUGERWWRP
7KHVKDOORZVXEWLGDO]RQHIRUPXFKRIWKH3URMHFWDUHDLVDPL[WXUHRIVDQGDQGERXOGHUVZLWK RFFDVLRQDO RXWFURSV RI H[SRVHG VKDOH EHGURFN
&50 
  +LVWRULFDOO\ RIIVKRUH NHOS EHGV
GRPLQDWHGE\JLDQWNHOS
Macrocystis pyrifera
ZLWKDQXQGHUVWRU\RIIHDWKHUERDNHOS
Egregia
107
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

menziesii
DQGSDOPNHOS
Eisenia arborea
KDYHEHHQSUHYDOHQWDORQJWKLVVHFWLRQRIFRDVWOLQH 7KHNHOSFDQRS\ZLWKLQWKHSURMHFWDUHDKDVIOXFWXDWHGFRQVLGHUDEO\RYHUWKHODVWGHFDGH)LJXUH 
 VKRZVWKH NHOSFDQRS\ EHWZHHQ 
DQG DQGLVDQLQGLFDWLRQ RI UHHI KDELWDW GHHSHU WKDQ DSSUR[LPDWHO\  IHHW
 PHWHUV
  'XULQJ VXUYH\V LQ -XQH  &50 IRXQG ORZ WR PRGHUDWH GHQVLW\ NHOS EHGV ZLWKOLWWOH RU QR VXUIDFH FDQRS\  IW P
 RII RI0DULSRVD
3RLQWDWGHSWKVEHWZHHQ
DQGIW

±DQG±P
0//:$QRWKHUEHGZDVREVHUYHG
IW

P
RII6DQ&OHPHQWH3LHU
76WUHHW
DWDGHSWKRIIW

P
LQ2FWREHU

7KLV
SDWFKZDVQRWREVHUYHGGXULQJWKH-XQHVXUYH\
&50
0XFKRIWKHNHOSREVHUYHGLQ
-XQH  ZDV UDJJHG DQG FRYHUHG ZLWK IRXOLQJ HFWRSURFWV Bryozoa

 KRZHYHU QHZO\ VHWWOHG
UHFUXLW SODQWV ZHUH DOVR SUHVHQW
&50 
  ,Q0DUFK  NHOS FDQRS\ ZDV VSDUVHLQWKH SURMHFWDUHD ,Q -XO\
DWKLFNNHOSEHGZDVREVHUYHGRQWKHFRQVLGHUDEOH UHHI IRUPDWLRQV RIIVKRUHDQGVRXWKRI6DQ&OHPHQWH3LHU)LJXUHVKRZVWKHNHOSPDSSHGLQ-XO\ 7KH
NHOSEHGLQ
FRUUHVSRQGVJHQHUDOO\ZLWKWKHKLVWRULFDONHOSPDSSHGSUHYLRXVO\ )LJXUH


7KHPRVWH[WHQVLYHUHHIIRUPDWLRQVLQWKHYLFLQLW\RI6DQ&OHPHQWH3LHUDUHORFDWHGRII0DULSRVD 3RLQW QRUWK RI WKH SURMHFW DUHD  7KH VKDOORZ VXEWLGDO UHHIV RII 0DULSRVD 3RLQW KDYH ZHOO GHYHORSHG PDFURSK\WH JURZWK LQFOXGLQJ GHQVH VWDQGV RI XQGHUVWRU\ VSHFLHV RI NHOS DQG VXUIJUDVV
&50
7KHVHLQVKRUHUHHIVDUHDSSUR[LPDWHO\WRIW

WRP
IURP
WKHVKRUHOLQHDQGVRPHRIWKHURFNVKDYHVHYHUDOIHHWRIYHUWLFDOUHOLHI0RVWKRZHYHUDUHVDQG LQXQGDWHGERXOGHUVOHVVWKDQWRIW
WRP
LQKHLJKW6XUIJUDVVRQWKHVHVKDOORZVXEWLGDO
UHHIVJURZVDPLQLPXPRI IW
P
DERYHWKHVDQGOLQHDQGKDYHEODGHVXSWR IW
P

ORQJ
7KH QHDUHVW KLJK UHOLHI UHHILVORFDWHG  IW P
 RIIVKRUH RI0DULSRVD3RLQW
:DVKURFN
5HHI
DW GHSWKV EHWZHHQ DQG  IW
DQG P
0//:$ IRRWE\ IRRW

PHWHUE\PHWHU
SDWFK
DFUHVRUVTXDUHPHWHUV
RIJLDQWNHOSZDVREVHUYHGLQVKRUH
RIWKH:DVKURFN5HHIMXVW QRUWK RIWKH 3LHU DW D GHSWK RI  IW P
LQ 2FWREHU 

 ZKLFK
SHUVLVWHGDWOHDVWWKURXJK-XQH
&50
7KHDSH[RI:DVKURFN5HHILVGRPLQDWHGE\
PXVVHOV
Mytilus californianus DQG M. edulis
  2WKHU FKDUDFWHULVWLF UHHI RUJDQLVPV REVHUYHG
GXULQJWKH&50-XQHVXUYH\LQFOXGHGJRUJRQLDQV
Muricea californicaDQGM. fructicosa

NH\KROHOLPSHW
Megathura crenulata
SXUSOHDQGUHGVHDXUFKLQ
Strongylocentrotus purpuratus
DQG S. franciscanus
 &DOLIRUQLD VHD FXFXPEHU
Parastichopus californicus
 .HOOHW
V ZKHON

Kelletia kelletii
 DQG VHD VWDUV
Pisaster brevispinus DQG P. giganteus
  )LVKHV REVHUYHG
LQFOXGHG VSRWWHG VDQG EDVV
Paralabrax maculofasciatus
 NHOS EDVV
P. clathratus
 VHQLRULWD

Oxyjulis californicus
 EDW UD\
Myliobatis californica
 DQG EODFN SHUFK
Embiotica jacksoni

2WKHUILVKHVWKDWDUHFRPPRQO\DVVRFLDWHGZLWKQHDUVKRUHUHHIKDELWDWVZLWKGHYHORSHGVWDQGVRI SHUHQQLDO YHJHWDWLRQ DERYH  IW
 P
 LQ KHLJKW DOVR ZRXOG EH H[SHFWHG WR RFFXU  ZLWKLQ WKH 3URMHFWDUHD6SHFLHVDVVRFLDWHGZLWKVRXWKHUQ&DOLIRUQLDQHDUVKRUHUHHIVLQFOXGHEDUUHGVDQGEDVV

P. nebulifer

 VKLQHU ZDOOH\H DQG GZDUI VXUISHUFKHV
Embiotocidae

 &DOLIRUQLD VKHHSKHDG

Semicossyphus pulcher

 JDULEDOGL
Hypsypops rubicundus

 MDFN PDFNHUHO
Trachurus
symmetricus

JLDQWNHOSILVK
Heterostichus rostratus

SDLQWHGJUHHQOLQJ
Oxylebius pictus

DQG
KDOIPRRQ
Medialuna californiensis

0(&7KRPSVRQHWDO



2IIVKRUHWKHQRUWKHUQHQGRIWKHSURSRVHGEHDFKILOOVLWHDW/LQGD/DQHORZUHOLHIERXOGHUVRFFXU DW GHSWKV JUHDWHU WKDQ
 IW
 P
 0//:
&50 
  %RXOGHUV DSSHDU WR EH IUHTXHQWO\
VFRXUHG DQG DUH FKDUDFWHUL]HG E\ JURZWK RI UHG WXUI DOJDH DQG FUXVWRVH FRUDOOLQHV  &RDVWDO 108
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

5HVRXUFHV0DQDJHPHQW REVHUYHG VXUIJUDVV DWWKLV GHSWK RIIWKH QRUWKHUQ SRUWLRQ RIWKH /LQGD /DQHDUHDDSSUR[LPDWHO\IW

P
IURPWKHVKRUHOLQH7KHVXUIJUDVVRFFXUUHGRQWKHXSSHU VXUIDFHVRIIW
P
KLJKERXOGHUV%ODGHVZHUHDSSUR[LPDWHO\WRIW
WR
P
ORQJ
&KDPEHUV*URXSVXUYH\HG IRUVXUIJUDVVLQWKH3URMHFWDUHDLQ0DUFKRI2IIVKRUHRIWKH QRUWKHUQ SRUWLRQ RI WKH SURSRVHG VDQG SODFHPHQW DUHD EHWZHHQ 6DQ &OHPHQWH 3LHU DQG /LQGD /DQHRQO\VFDWWHUHGSDWFKHVRIVXUIJUDVVZHUHREVHUYHG )LJXUH

6RXWKRI6DQ&OHPHQWH3LHUFREEOHDQGUHHIKDELWDWRFFXURIIVKRUHEHJLQQLQJDWDGHSWKRI WR
WRIW

P
0//:DQGH[WHQGLQJWRDWOHDVWIW
P
0//:
&50

6XUIJUDVVPHDGRZVDUHORFDWHGDSSUR[LPDWHO\IW

P
IURPWKHVKRUHOLQHRQ7VWUHHW5HHI
7KHVXUIJUDVVJURZVRQWRIW
WRP
KLJKERXOGHUVDQGKDVEODGHVWKDWDUHWRIW

WR
P
ORQJ)DUWKHURIIVKRUHVXUIJUDVVFRYHUGHFOLQHV6XUIJUDVVDWWKHGHHSHUGHSWKV IW
>  P@0//:
 ZDV JURZLQJ RQ  IW
 P
 KLJK ERXOGHUVLQXQGDWHG ZLWK VDQG  ,Q VRPH
FDVHVWZRWKLUGVRIWKHOHQJWKRIWKHVXUIJUDVVEODGHVZHUHFRYHUHGZLWKVDQGDQGRQO\IW 
P
 RI WKH EODGHV UHPDLQHG DERYH WKH VDQG OLQH  )LJXUH  VKRZV VXUIJUDVV PDSSHG E\ &KDPEHUV*URXSGXULQJWKH0DUFKVXUYH\6RXWKRI6DQ&OHPHQWH3LHUVXUIJUDVVJURZV RQWKH76WUHHW5HHIVWDUWLQJDWDZDWHUGHSWKRIEHWZHHQ DQG  IW DQGP
0//:
DQGH[WHQGLQJRIIVKRUHWRDZDWHUGHSWKRIEHWZHHQDQGIW DQG
P
0//:
7KHVXEWLGDOUHHIKDELWDWVRXWKRIWKH3LHULVH[WHQVLYHDQGDQJOHVDURXQGWKHWLSRI6DQ&OHPHQWH 3LHU7KLV UHHI IRUPDWLRQLV VKRZQ RQ)LJXUH /DUJHUPDFURSK\WHV REVHUYHG RQWKH UHHI LQFOXGHJLDQWNHOSIHDWKHUERDNHOS
Endarchne binghamiae
DQGEODGGHUFKDLQNHOS
Cystoseira
Halidrys

&50
$VPDOOSDWFKRIJLDQWNHOSFRQVLVWLQJRISODQWVZDVREVHUYHGIW


P
VRXWKRIWKH3LHUDWDGHSWKRIIW
P
LQ2FWREHU

EXWZDVQRWREVHUYHGLQ-XQH
.HOSFDQRS\ZDVREVHUYHGRQWKHHQWLUHUHHILQ-XO\ 
&DOLIRUQLD VSLQ\ OREVWHU
Panulirus interruptus
 LV FRPPRQ LQ WKH VXEWLGDO UHHI KDELWDW LQ WKH SURMHFWDUHD&RPPHUFLDOOREVWHUILVKHUPHQVHWWUDSVLQWKHDUHDGXULQJWKHOREVWHUILVKLQJVHDVRQ RI 2FWREHU WKURXJK PLG0DUFK DQG OREVWHU DOVR DUH ILVKHG LQ WKH DUHD E\ 6&8%$ GLYHUV $EDORQH
Haliotis rufescens
 KDYH EHHQ UHSRUWHG KLVWRULFDOO\LQWKH JHQHUDO SURMHFW DUHD %OXQW


EXWZHUHQRWREVHUYHGGXULQJDQ\RIWKHUHFHQWVXUYH\V  6XEWLGDO6RIWERWWRP
%HQWKLF LQYHUWHEUDWH VSHFLHV W\SLFDO RI 6RXWKHUQ &DOLIRUQLD QHDUVKRUH VRIW ERWWRP KDELWDWV LQFOXGH SRO\FKDHWH ZRUPV
HJ Diopatra spp., Loimia medusa, Pista pacifica
 VDQG GROODUV

Dendraster excentricus
FUDEV
Heterocrypta occidentalis, Portunis xantusii, Randallia ornata 
KHUPLW FUDEV
Pagurus spp., Pagurites spp
 PDULQH VQDLOV
Nassarius fossatus, Olivella
biplicata, Polinices spp
 FODPV
Ensis spp
 DUPRUHG VHD VWDUV
Astropecten armatus
 WXEH
DQHPRQHV
Harenactis attenuata, Zaolutus actius
VHDSHQV
Stylatula elongata
DQGVHDSDQVLHV

Renilla kollikeri

0(&7KRPSVRQHWDO



109
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5 3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV 
)LJXUH6XUIJUDVV6XUYH\
110
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LVK FRPPRQO\ IRXQG RYHU VKDOORZ VDQG\ VXEWLGDO KDELWDW OHVVWKDQ  IW RU
P
LQ VRXWKHUQ
&DOLIRUQLD LQFOXGH &DOLIRUQLD KDOLEXW
Paralichthys californicus
 VSHFNOHG VDQGGDEV

&LWKDULFKWK\V stigmaeus
 EDUUHG VXUISHUFK
Amphistichus argenteus
 ZKLWH FURDNHU

Genyonemus lineatus
EDWUD\
Myliobatus californica
DQGVKRYHOQRVHJXLWDUILVK
Rhinobatos
productus

0(&6$1'$*
1RUWKHUQDQFKRY\
Engraulis mordax
MDFNPDFNHUHO

Trachurus symmetricus
3DFLILFERQLWR
Sarda chiliensis
DQGWRSVPHOW
Athernops affinis
DUH
FRPPRQO\HQFRXQWHUHGLQWKHZDWHUFROXPQMXVW EH\RQGWKH VXUI]RQH 0(& 6$1'$*


7KHSURSRVHGERUURZVLWHRIIVKRUH2FHDQVLGH
62

ZDVGHVFULEHGE\6$1'$*

7KH
SURSRVHG ERUURZ VLWH FRQVLVWV RI VDQG ERWWRP KDELWDW DW EHWZHHQ  DQG  IW  DQG  P

ZDWHU GHSWK  )LVKHV DQG LQYHUWHEUDWHV IRXQG LQ WKH YLFLQLW\ RI WKH 2FHDQVLGH ERUURZ VLWH DUH W\SLFDORIWKHVHGHSWKVRQVRXWKHUQ&DOLIRUQLDRIIVKRUHVRIWERWWRPV 6$1'$*
7KHPRVW
DEXQGDQW LQYHUWHEUDWH WD[D LGHQWLILHG IRU WKH 2FHDQVLGH ERUURZVLWH LQFOXGH VHYHUDO VSHFLHV RI SRO\FKDHWH ZRUPV
Diopatra VSS Euclymeninae VS Melinna oculata Metasychis disparidentatus Paraprionospio pinnata Petalodymene pacifica Pista disjuncta, Spiophanes missionensis, Streblosoma VS
 DQG WKH DPSKLSRG Ampelisca cristata
6$1'$* 

$EXQGDQW ILVK VSHFLHVLQFOXGHORQJILQ VDQGGDE
Citharichthys xanthostigma
 EDUUHG VDQG EDVV

Paralabrax nebulifer
&DOLIRUQLDKDOLEXW&DOLIRUQLDOL]DUGILVK
Synodus lucioceps
DQGIDQWDLO
VROH
Xystreurys liolepis

6$1'$*

 (VVHQWLDO)LVK+DELWDW
,Q DFFRUGDQFH ZLWK WKH 

 DPHQGPHQWV WR WKH0DJQXVRQ6WHYHQV)LVKHU\0DQDJHPHQW DQG &RQVHUYDWLRQ $FW DQ DVVHVVPHQW RI (VVHQWLDO )LVK +DELWDW ()+
 ZDV FRQGXFWHG IRU WKH
SURSRVHG 3URMHFW12$$ )LVKHULHV SURYLGHG FRQVHUYDWLRQ UHFRPPHQGDWLRQV GXULQJWKH SXEOLF FRPPHQWSHULRGDQGWKHVHUHFRPPHQGDWLRQVDUHDGGUHVVHGLQ6HFWLRQRIWKLV)LQDO(,6(,5 7KH 3URMHFW LV ORFDWHG ZLWKLQ DQ DUHD GHVLJQDWHG DV ()+ IRU WZR )LVKHU\ 0DQDJHPHQW 3ODQV

)03V

  &RDVWDO 3HODJLF 6SHFLHV )LVKHU\ 0DQDJHPHQW 3ODQ DQG 3DFLILF &RDVW *URXQGILVK )LVKHU\ 0DQDJHPHQW 3ODQ  0DQ\ RI WKH  VSHFLHV IHGHUDOO\ PDQDJHG XQGHU WKHVH SODQV DUH NQRZQRUH[SHFWHGWRRFFXULQWKHDUHDDQGFRXOGEHDIIHFWHGE\WKHSURSRVHG3URMHFW$OORIWKH ILYHVSHFLHVPDQDJHGXQGHUWKH&RDVWDO3HODJLF6SHFLHV)LVKHU\0DQDJHPHQW3ODQDUHOLNHO\WR RFFXULQWKH3URMHFWDUHD7KHVHSHODJLFVSHFLHVDUHQRUWKHUQDQFKRY\3DFLILFVDUGLQH Sardinops
sagax) 3DFLILF PDFNHUHO
Scomber japonicus
 MDFN PDFNHUHO DQG PDUNHW VTXLG
Loligo
opalescens
  $SSUR[LPDWHO\  VSHFLHV PDQDJHG XQGHU WKH 3DFLILF &RDVW *URXQGILVK )LVKHU\ 0DQDJHPHQW3ODQDUHOLNHO\WR RFFXULQWKH3URMHFWDUHD7KHVH VSHFLHVLQFOXGHOHRSDUG VKDUN

Triakis semifasciata
ELJVNDWH
Raja binoculata
VSLQ\GRJILVK
Squalus acanthias
FDEH]RQ

Scorpaenichthys marmoratus
IRXUVSHFLHVRIIODWILVK
Pleuronichthys decurrens, Microstomus
pacificus, Pleuronectes vetulis, Citharichthys sordidus  DQG DW OHDVW HLJKW VSHFLHV RI URFNILVK

Sebastes chrysomelas, S. auriculatus, S. caurinus, S. rastrelliger, S. atrovirens, S. serranoides, S. serriceps and Scorpaena guttata

 %LUGV
$ GLYHUVH YDULHW\ RI UHVLGHQW DQG PLJUDWRU\ VHDELUGV DQG VKRUHELUGV DUH FRPPRQO\ REVHUYHG DORQJ VRXWKHUQ&DOLIRUQLD EHDFKHV DQG RIIVKRUH ZDWHUV  6HDELUGV VXFK DV SHOLFDQVWHUQV DQG 111
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


FRUPRUDQWVIRUDJHIRUILVKLQWKHQHDUVKRUHRFHDQ*XOOVDQGVKRUHELUGVXWLOL]HVDQG\XSSHUWLGDO EHDFKHV DV URRVWV*XOOV IHHG RQ ILVK DQGLQYHUWHEUDWHV SDUWLFXODUO\ QHDUWKH HGJH RIWKH NHOS FDQRS\6KRUHELUGVSUREH IRULQYHUWHEUDWHVLQWKHGDPSVDQGVRIWKHPLGGOHDQGORZLQWHUWLGDO ]RQHVDQGVRPHVSHFLHVDOVRIRUDJHIRUVPDOOILVKDQGLQYHUWHEUDWHVLQWKHURFN\LQWHUWLGDO.HOS DQGVXUIJUDVVWKDWKDYHZDVKHGDVKRUHKDUERULQYHUWHEUDWHVSURYLGHJRRGIRUDJLQJDUHDVIRUJXOOV DQGVKRUHELUGV
7KHVHDELUGVWKDWDUHPRVWFRPPRQO\REVHUYHGDORQJWKHEHDFKHVDQGRFHDQZDWHUVRIIVKRUHRI 2UDQJHDQG6DQ'LHJRFRXQWLHVLQFOXGH+HHUPDQ¶VJXOO
Larus heermanni
 ULQJELOOHGJXOO
L.
delawarensis
ZHVWHUQJXOO
L. occidentalis
&DOLIRUQLDEURZQSHOLFDQ
Pelecanus occidentalis
californicus) VXUI VFRWHU
Melinita perspicillata
 WHUQV
Sterna spp
 JUHEHV
Podicipedidae

DQG GRXEOHFUHVWHG
Phalacrocorax auritus
 DQG SHODJLF
P. pelagicus
 FRUPRUDQWV
&KDPEHUV
*URXS0(&

$YDULHW\RIVKRUHELUGVZRXOGEHH[SHFWHGWRXVHWKHEHDFKLQWKHYLFLQLW\RI6DQ&OHPHQWH3LHU &RPPRQO\REVHUYHGVSHFLHVLQFOXGHWKH IROORZLQJVKRUHELUGV PDUEOHGJRGZLW
Limosa fedoa

VDQGHUOLQJ
Calidris alba
 ZKLPEUHO
Numenius phaeopus
 ZLOOHW
Catoptrophorus
semipalmatus
EODFNEHOOLHGSORYHU
Pluvialis squatarola
ZHVWHUQVDQGSLSHU
Calidris mauri

DQGOHDVW VDQGSLSHU
Calidris minutilla

0F&RQQDXJKH\ DQG0F&RQQDXJKH\ 
&KDPEHUV
*URXS0(&

 0DULQH0DPPDOV
1RQ(QGDQJHUHG

7KHPDULQHPDPPDOVWKDWRFFXULQWKH6RXWKHUQ&DOLIRUQLD%LJKWKDYHEHHQGHVFULEHGLQGHWDLOLQ SUHYLRXV VWXGLHV DQG HQYLURQPHQWDO GRFXPHQWV
HJ %RQQHOO HW DO 
 

 %RQQHOO DQG
'DLOH\ 


 'RKO HW DO 
 

 $'/ 

 %DUORZ HW DO 

 


 %DUORZ DQG
*HUURGHWWH 


 .RVNL HW DO 


 'H/RQJ DQG 0HOLQ 
 6WHZDUW DQG <RFKHP 

$OWKRXJK DV PDQ\ DV  VSHFLHV RI PDULQH PDPPDOV LQKDELW RU YLVLW WKH 6RXWKHUQ &DOLIRUQLD %LJKWLQFOXGLQJ  VSHFLHV RI SLQQLSHGV
VHDOV DQG VHDOLRQV

 VSHFLHV RI FHWDFHDQV
ZKDOHV
SRUSRLVHV DQG GROSKLQV
 DQGWKH VHD RWWHU RQO\ DERXW  VSHFLHV DUH H[SHFWHGWR RFFXULQWKH QHDUVKRUH ZDWHUV RI WKH 6DQ &OHPHQWH VWXG\ DUHD RQ D UHJXODU EDVLV  7KHVH LQFOXGH WZR SLQQLSHGV RQH ZKDOH DQG WKUHH GROSKLQ VSHFLHV
GHVFULEHG EHORZ
  2WKHU VSHFLHV DOVR PD\
RFFXULQWKHVWXG\DUHDRQDQLUUHJXODUEDVLV
&DOLIRUQLDVHDOLRQ
7KH&DOLIRUQLDVHDOLRQ
Zalophus californianus
UDQJHVIURP%ULWLVK&ROXPELDWR0H[LFR7KH
FXUUHQW86SRSXODWLRQVL]HLVHVWLPDWHGDWDQLPDOV &DUUHWWDHWDO
 ,Q
WKH6RXWKHUQ&DOLIRUQLD%LJKW&DOLIRUQLDVHDOLRQVFXUUHQWO\EUHHGRQIRXULVODQGV 6DQ0LJXHO
6DQ 1LFRODV 6DQWD %DUEDUD DQG 6DQ &OHPHQWH  &DOLIRUQLD VHD OLRQV DUH FRPPRQ DORQJ WKH &DOLIRUQLDFRDVWDQGRFFXUZLWKLQWKHSURMHFWDUHD
+DUERUVHDOV
+DUERUVHDOV
Phoca vitulina
UDQJHIURP0H[LFRWRWKH$OHXWLDQV7KH1RUWK3DFLILFSRSXODWLRQ LV FHQWHUHG LQ $ODVND
+RRYHU 

 DQG DERXW  KDUERU VHDOV DUH IRXQG LQ &DOLIRUQLD 112
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


&DUUHWWD HW DO 
  3HDN KDUERU VHDO SRSXODWLRQV RQ ODQG RFFXU GXULQJ WKH VSHFLHV  VSULQJ
EUHHGLQJ DQG SXSSLQJ VHDVRQ DQG HDUO\ VXPPHU PROW  +DUERU VHDOV IRUDJH UHODWLYHO\ FORVH WR VKRUHDQGRFFDVLRQDOO\³KDXORXW´RQWRODQGDWYDULRXVWLPHVRIWKHGD\IRUDQLQGHILQLWHSHULRGRI WLPH
6HDZRUOG
+DUERUVHDOVUHJXODUO\KDXORXWRQODUJHH[SRVHGURFNVVRXWKRIWKH6DQ &OHPHQWHVDQGSODFHPHQWVLWH
*UD\:KDOH
7ZR VHSDUDWH SRSXODWLRQV RI JUD\ZKDOHV
Eschrichtius robustus
 DUH UHFRJQL]HG IRUWKH1RUWK
3DFLILF
WKHHDVWHUQRU&DOLIRUQLDQSRSXODWLRQDQGWKH.RUHDQRUZHVWHUQSRSXODWLRQ /H'XFHW
DO 
  *UD\ ZKDOHV DOVR H[LVWHG LQ WKH 1RUWK $WODQWLF XS WR WKH WK FHQWXU\ EXW WKLV SRSXODWLRQ EHFDPH H[WLQFW SUREDEO\ GXH WR ZKDOLQJ +HQGHUVRQ 

 7KH &DOLIRUQLDQ
SRSXODWLRQRIJUD\ZKDOHVPLJUDWHVWKURXJKVRXWKHUQ&DOLIRUQLDZDWHUVWZLFHD\HDURQLWVZD\ EHWZHHQ 0H[LFDQ EUHHGLQJ ODJRRQV DQG IHHGLQJ JURXQGV LQ WKH %HULQJ 6HD  7KH VRXWKERXQG PLJUDWLRQWKURXJKWKH6RXWKHUQ&DOLIRUQLD%LJKWEHJLQVLQ'HFHPEHUDQGODVWVWKURXJK)HEUXDU\ 
WKHQRUWKERXQGPLJUDWLRQLVPRUHSURORQJHGODVWLQJIURP)HEUXDU\WKURXJK0D\ZLWKDSHDNLQ 0DUFK
%RQQHOODQG'DLOH\


*UD\ZKDOHVDUHJHQHUDOO\DEVHQW IURPVRXWKHUQ&DOLIRUQLD ZDWHUVIURP$XJXVWWKURXJK1RYHPEHU0LJUDWLQJJUD\ZKDOHVJHQHUDOO\WUDYHODORQJWKHQHDU VKRUH VKDOORZ FRQWLQHQWDO VKHOI ZLWKLQ  PL
 NP
 RI WKH VKRUHOLQH RYHU PRVW RI WKH URXWH

*UDKDP


7KLVSUR[LPLW\WRVKRUHPDNHVJUD\ZKDOHVYXOQHUDEOHWRQXPHURXVWKUHDWVE\ KXPDQDFWLYLWLHVLQFOXGLQJLQGXVWULDODFWLYLWLHV RLOH[SORUDWLRQDQGH[WUDFWLRQ VKLSSLQJWUDIILF SROOXWLRQDQGZKDOHZDWFKLQJWRXULVP
&UDQH



%RWWOHQRVH'ROSKLQ
7KHUH DUH WZR &DOLIRUQLD SRSXODWLRQV RI ERWWOHQRVH GROSKLQV Tursiops truncatus
 FRDVWDO DQG
RIIVKRUH&RDVWDOERWWOHQRVHGROSKLQVZKLFKDUHWKHSRSXODWLRQWKDWLVPRVWOLNHO\WRRFFXULQWKH VWXG\DUHDJHQHUDOO\DUH IRXQGZLWKLQDSSUR[LPDWHO\DPLOH NP
RI VKRUHSULPDULO\ IURP
3RLQW &RQFHSWLRQ VRXWK LQWR 0H[LFDQ ZDWHUV  7KH FRDVWDO SRSXODWLRQ DSSHDUV WR IRUP VPDOO UHVLGHQW JURXSV WKDW UDQJH DORQJ WKH FRDVWOLQH HVSHFLDOO\ RII 2UDQJH DQG 6DQ 'LHJR FRXQWLHV

:HOOHUDQG'HIUDQ


7KHFRDVWDOSRSXODWLRQLVHVWLPDWHGDWDERXWDQLPDOV &DUUHWWDHW
DO

3DFLILF:KLWHVLGHG'ROSKLQ
3DFLILF ZKLWHVLGHG GROSKLQV
Lagenorhynchus obliquidens
 DUH IRXQG \HDUURXQG LQ VRXWKHUQ
&DOLIRUQLDDQGDUHZLGHO\GLVWULEXWHGLQWKH6RXWKHUQ&DOLIRUQLD%LJKW7KHGLVWULEXWLRQRIWKLV VSHFLHVVKLIWVVHDVRQDOO\DQGWKH\DUHPRVWDEXQGDQWLQLQVKRUHZDWHUVLQWKHVSULQJDQGVXPPHU

%RQQHOODQG'DLOH\


7KH\ZRXOGEHH[SHFWHGWRRFFXURFFDVLRQDOO\LQWKHSURMHFWDUHDDW WKHERUURZVLWHDQGRIIVKRUHWKHUHFHLYHUVLWH
&RPPRQ'ROSKLQ
6KRUWEHDNFRPPRQGROSKLQ
Delphinus delphis
DQGORQJEHDNFRPPRQGROSKLQD.bairdii
DUH
IRXQG \HDUURXQGLQ VRXWKHUQ &DOLIRUQLD ZDWHUV  7KH VKRUWEHDN FRPPRQ GROSKLQLVWKH PRVW DEXQGDQW FHWDFHDQ RII &DOLIRUQLD EXW JHQHUDOO\ RFFXUV IDU RIIVKRUH  7KH ORQJEHDN FRPPRQ 113
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

GROSKLQLVPRUHOLNHO\WRRFFXULQQHDUVKRUHZDWHUV(LWKHUVSHFLHVPD\RFFDVLRQDOO\RFFXULQWKH SURMHFWDUHDHLWKHUDWWKHERUURZVLWHRURIIWKH6DQ&OHPHQWHUHFHLYHUEHDFK  :LOGOLIH
:LOGOLIH VSHFLHV GHWHFWHG ZLWKLQ WKH PDMRULW\ RI WKH 3URMHFW DUHD DUH W\SLFDO RI WKH KLJKO\ GLVWXUEHG KHDYLO\ XWLOL]HG VDQG\ EHDFK KDELWDW  6KRUHELUGV DQG VHDELUGV DUH GHVFULEHG DERYH 7HUUHVWULDOZLOGOLIHWKDWZRXOG EH H[SHFWHGLQFOXGH$PHULFDQ FURZV Corvus brachyrhynchos

URFNGRYHV
Columba livia
DQG&DOLIRUQLDJURXQGVTXLUUHOV
Spermophilus beecheyi

$OWKRXJKWKHSURMHFWUHDFKLVZLWKLQKHDYLO\XUEDQL]HGGRZQWRZQ6DQ&OHPHQWHWKHUHDUHVRPH FDQ\RQV LQFOXGLQJ /LQGD /DQH WKH FDQ\RQ EHWZHHQ &D]DGRU /DQG DQG 7UDIDOJDU /DQH(VSODQDGHDQGWKHFDQ\RQMXVWVRXWKRI7VWUHHWWKDWZRXOGEHH[SHFWHGWRVXSSRUWXUEDQ DGDSWHG PDPPDOV LQFOXGLQJ FR\RWH
Canis latrans
 JUD\ IR[
Urocyon cinereoargenteus

UDFFRRQ
Procyon lotor
DQGRSRVVXP
Didelphis virginiana
7KHVHPDPPDOVPD\RFFDVLRQDOO\
ZDQGHURQWRWKHEHDFKDWQLJKWRUHDUO\PRUQLQJ
 6SHFLDO6WDWXV/LVWHG6SHFLHV
6HFWLRQ
F
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
 :KLWH$EDORQH
)HGHUDO(QGDQJHUHG

,Q0D\ZKLWHDEDORQH
Haliotis sorensoni
EHFDPHWKHILUVWPDULQHLQYHUWHEUDWHWREHOLVWHG
DVD)HGHUDOHQGDQJHUHGVSHFLHV:KLWHDEDORQHLVDPROOXVNWKDWRFFXUVRQURFN\KDELWDWIURP 3RLQW&RQFHSWLRQWR%DMD&DOLIRUQLD DW WR  IW WR P
 GHSWKV
+REGD\ DQG 7HJQHU

  :KLWH DEDORQH KDV EHHQ UHFRUGHG LQ ZDWHU DV VKDOORZ DV  IW  P
 LQ WKH 6DQWD
%DUEDUD &KDQQHO
$VSHQ 
 :KLWH DEDORQH W\SLFDOO\ LV IRXQG LQ RSHQ ORZ UHOLHI URFN RU ERXOGHUKDELWDWVXUURXQGHGE\VDQG
+REGD\DQG7HJQHU
7KHUHKDVEHHQDJUHDWHUWKDQ


SHUFHQWGHFOLQHLQERWKWKHDEXQGDQFHDQGGHQVLW\RIZKLWHDEDORQHLQ&DOLIRUQLDVLQFHWKH V

+REGD\DQG7HJQHU
7KHDEDORQHILVKHU\FRQWULEXWHGWRWKHGHFOLQHRIZKLWHDEDORQHE\ RYHUKDUYHVWLQJDQGUHGXFHGWKHGHQVLW\WRWKHSRLQWZKHUHUHFUXLWPHQWVXFFHVVKDVEHHQXQOLNHO\ :KLWH DEDORQH KDYH D ORZ SRWHQWLDO WR RFFXU LQ WKH VKDOORZ VXEWLGDO KDELWDW RIIVKRUH 6DQ &OHPHQWH$OWKRXJKWKLVVSHFLHVKDVEHHQIRXQGLQZDWHUDVVKDOORZDVIW P
RII6DQWD
%DUEDUDLWJHQHUDOO\LVLQZDWHUGHSWKVJUHDWHUWKDQIW P
HVSHFLDOO\LQWKHVRXWKHUQSDUWRI
LWVUDQJH1RZKLWHDEDORQHZHUHREVHUYHGGXULQJELRORJLFDOVXUYH\VRIWKH3URMHFWDUHD &50


114
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5 3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV 
7DEOH6SHFLDO6WDWXV/LVWHG6SHFLHVWKDW0D\2FFXULQWKH6DQ&OHPHQWH3LHURU2FHDQVLGH &RPPRQ
1DPH 6FLHQWLILF1DPH 6WDWXV *HQHUDO+DELWDW 'LVWULEXWLRQ 3RWHQWLDO)RU2FFXUUHQFH,Q3URMHFW$UHD ,QYHUWHEUDWHV:KLWH$EDORQH
Haliotis sorenseni )( 2SHQORZUHOLHIURFNRU
ERXOGHUKDELWDWVXUURXQGHGE\VDQGDWWRIW
WRP
GHSWKV
+REGD\DQG7HJQHU

3RLQW&RQFHSWLRQWR%DMD&DOLIRUQLD
/RZ
)LVKHV6RXWKHUQVWHHOKHDG
Oncorhynchusmykiss
)(

VRXWKRI
3RLQW
&RQFHSWLRQ

6SDZQLQFRROFOHDUZHOOR[\JHQDWHGVWUHDPV+LJKHUHOHYDWLRQKHDGZDWHUVDUHSULPDU\VSDZQLQJDQGUHDULQJDUHDV6RXWKHUQVWHHOKHDGOLNHO\KDYHJUHDWHUSK\VLRORJLFDOWROHUDQFHVWRZDUPHUZDWHUDQGPRUHYDULDEOHFRQGLWLRQV 7KH6RXWKHUQ&DOLIRUQLD(YROXWLRQDULO\6LJQLILFDQW8QLWRIVWHHOKHDGH[WHQGVIURPWKH6DQWD0DULD5LYHUWRWKH860H[LFR%RUGHU6WHHOKHDGKDYHUHFHQWO\EHHQUHSRUWHGIURP6DQ0DWHR&UHHNRQ&DPS3HQGOHWRQMXVWVRXWKRI6DQ&OHPHQWHDQGWKH6DQWD0DUJDULWDQHDUWKHERUURZVLWH /RZ
%LUGV:HVWHUQVQRZ\SORYHU
Charadriusalexandrinusnivosus
)7 %HDFKHV
PLJUDWLRQDQG

ZLQWHULQJ

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

115
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5 3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV 
&RPPRQ
1DPH 6FLHQWLILF1DPH 6WDWXV *HQHUDO+DELWDW 'LVWULEXWLRQ 3RWHQWLDO)RU2FFXUUHQFH,Q3URMHFW$UHD &DOLIRUQLDOHDVWWHUQ
Sterna antillarum browni
)(
6(

QHVWLQJ
FRORQ\

1HDUVKRUHZDWHUV
EUHHGLQJSRSXODWLRQVLQ&DOLIRUQLDDUHUHVWULFWHGWRFRDVWDOORFDWLRQV IRUDJHFORVHWRWKHLUEUHHGLQJFRORQLHVLQED\VKDUERUVDQGQHDUVKRUHRFHDQZDWHUV 1HVWLQJRFFXUVIURPWKH6DQ)UDQFLVFR%D\DUHDWR%DMD&DOLIRUQLD1HDUHVWQHVWLQJVLWHVDUHRQ&DPS3HQGOHWRQ $EVHQW3URMHFWZRXOGQRWRFFXUZKHQWKH\DUHSUHVHQWLQ&DOLIRUQLD 1RWHV
)( )HGHUDO(QGDQJHUHG67 6WDWH7KUHDWHQHG)7 )HGHUDO7KUHDWHQHG6( 6WDWH(QGDQJHUHG3RWHQWLDOIRU2FFXUUHQFH$EVHQW±VSHFLHVLVUHVWULFWHGWRKDELWDWVHQYLURQPHQWDOFRQGLWLRQVRUVHDVRQVWKDWGRQRWFRLQFLGHZLWKWKHSURMHFWVLWHRUWLPLQJ/RZ±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
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 7LGHZDWHU*RE\
)HGHUDO(QGDQJHUHG

7KH WLGHZDWHU JRE\ ZDV OLVWHG DV HQGDQJHUHG RQ )HEUXDU\  



 )5 

 DQG LV
FDWHJRUL]HGDVD&DOLIRUQLD6SHFLDO&RQFHUQ
&6&
VSHFLHVE\&')*$UHFRYHU\SODQIRUWKLV
VSHFLHVZDVILQDOL]HGLQ
86):6D
DQGFULWLFDOKDELWDWKDVEHHQSURSRVHG
86):6
E
  *RELHV DUH PRVWO\ FRDVWDO ODJRRQ ILVKHV WKDW SUHIHU VKDOORZ XVXDOO\ EUDFNLVK ZDWHU

/RYH


3ULPDU\WLGHZDWHUJRE\KDELWDWLVIRXQGLQVPDOOVKDOORZFRDVWDOODJRRQVWKDWDUH VHSDUDWHGIURPWKHRFHDQPRVWRIWKH\HDUE\EHDFKEDUULHUV7KLVLQFOXGHVVKDOORZDUHDVRIED\V DQGDUHDVQHDUVWUHDPPRXWKVLQXSSHUPRVWEUDFNLVKSRUWLRQVRIODUJHUED\V7KH86)LVKDQG :LOGOLIH6HUYLFHGHVLJQDWHGFULWLFDOKDELWDWIRUWKHWLGHZDWHUJRE\RQ1RYHPEHU )5




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
 6WHHOKHDG7URXW
)HGHUDO(QGDQJHUHG

7KH HIIHFWLYH GDWH IRUOLVWLQJWKH 6RXWKHUQ&DOLIRUQLD(YROXWLRQDULO\ 6LJQLILFDQW8QLW (68
 RI
ZHVW FRDVW VWHHOKHDG
Oncorhynchus mykiss
 DV HQGDQJHUHG DQG WKH 6RXWK &HQWUDO &DOLIRUQLD &RDVW (68 DV WKUHDWHQHG LV 2FWREHU  


 )5 


  6WHHOKHDGV IURP WKH 6RXWKHUQ
&DOLIRUQLD (68 KDYH DOUHDG\ EHHQ H[WLUSDWHG IURP PXFK RI WKHLU KLVWRULFDO UDQJH  7KHUH LV D VWURQJ FRQFHUQ DERXW WKH ZLGHVSUHDG GHJUDGDWLRQ GHVWUXFWLRQ DQG EORFNDJH RI IUHVKZDWHU KDELWDWVZLWKLQWKH UHJLRQDQGWKH SRWHQWLDO UHVXOWV RIFRQWLQXLQJ KDELWDW GHVWUXFWLRQDQGZDWHU DOORFDWLRQSUREOHPV7RWDODEXQGDQFHRIVWHHOKHDGLQWKH6RXWK&HQWUDO&RDVW(68LVH[WUHPHO\ ORZDQGGHFOLQLQJ5LVNIDFWRUVIRUWKLV(68DUHKDELWDWGHWHULRUDWLRQGXHWRVHGLPHQWDWLRQDQG IORRGLQJUHODWHGWRODQGPDQDJHPHQWSUDFWLFHV
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
0&%&3
 LQ FRRUGLQDWLRQ ZLWK WKH &')*
GHWHUPLQHGWKDW6DQ0DWHR&UHHNLQQRUWKHUQ6DQ'LHJR&RXQW\VWLOOVXSSRUWVDVPDOOSRSXODWLRQ RI WKH VRXWKHUQ &DOLIRUQLD VWHHOKHDG  7KLV LV EDVHG XSRQ ILHOG VXUYH\V FRPSOHWHG LQ  E\ ELRORJLVW IURP 0&%&3 DQG &')*
6 *ORZDFNL SHUV FRPP 
  (YHQ WKRXJK WKLV
VWHHOKHDG SRSXODWLRQLV UHODWLYHO\ VPDOOODUJH DGXOWV ZHUH IRXQG  6RXWKHUQ VWHHOKHDG DOVR KDV EHHQIRXQGLQWKH6DQWD0DUJDULWD5LYHUQHDUWKHERUURZVLWH 117
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 &DOLIRUQLD%URZQ3HOLFDQ
)HGHUDODQG6WDWH(QGDQJHUHG

7KH &DOLIRUQLD EURZQ SHOLFDQ ZDV GHOLVWHG IURP WKH )HGHUDO HQGDQJHUHG VSHFLHV OLVW RQ 1RYHPEHU
E\WKH86)LVKDQG:LOGOLIH6HUYLFH
)5


LWZDVGHOLVWHGIURP
WKH6WDWHHQGDQJHUHGVSHFLHVOLVWLQDYRWHE\)LVKDQG*DPH&RPPLVVLRQLQ)HEUXDU\ 
 &DOLIRUQLD/HDVW7HUQ
)HGHUDODQG6WDWH(QGDQJHUHG

7KH&DOLIRUQLDOHDVWWHUQZDVOLVWHGDVHQGDQJHUHGRQ2FWREHU 
)5
DQG6WDWH
OLVWHGDVHQGDQJHUHGLQ-XQH$ UHFRYHU\SODQ IRUWKHVSHFLHVZDVSXEOLVKHGLQ 

86):6

DQGZDVUHYLVHGLQ

86):6

&ULWLFDOKDELWDWZDVQHYHUGHVLJQDWHG
7KH EUHHGLQJ UDQJH RIWKH&DOLIRUQLDOHDVWWHUQ SRSXODWLRQ RFFXSLHV VSHFLILFORFDOL]HG EUHHGLQJ FRORQLHVIURPDERXW$SULOWR6HSWHPEHUHDFK\HDU&RORQLHVDUHXVXDOO\LQFORVHSUR[LPLW\WRD ODJRRQVRUHVWXDU\RU ULYHUFRQIOXHQFHVZLWKWKHRFHDQHQYLURQVZKHUHWKH\REWDLQPRVWRIWKH VPDOOILVKWKH\FRQVXPHDOWKRXJKWKH\PD\DOVRIRUDJHXSWRWRPL WRNP
IURPWKH
EHDFKLQWKH QHDU VKRUH/DUJH QXPEHUV RIOHDVWWHUQV EUHHG RQWKH0DULQH&RUSV%DVH&DPS 3HQGOHWRQ
0&%&3
WRPLOHVVRXWKRIWKH3URMHFWDUHD,QWKHUHZHUHQHVWLQJ SDLUVRIOHDVWWHUQVDW0&%&3
0DUVFKDOHN
0RVWRIWKHVH
SDLUV
GRFXPHQWHGLQWKH
EUHHGLQJVXUYH\ZHUHDWWKHPRXWKRIWKH6DQWD0DUJDULWD5LYHU7KHQHDUHVWFRORQLHVWR WKH3URMHFWDUHDZHUHDW:KLWH%HDFKDSSUR[LPDWHO\PL NP
VRXWKRIWKHSURSRVHGEHDFK
ILOOVLWHZKHUHSDLUVEUHGLQDQGDW5HG%HDFKDSSUR[LPDWHO\PL 
NP
VRXWKRI
WKH3URMHFWVLWHZKHUHSDLUVEUHG
0DUVFKDOHN
7KH2FHDQVLGHERUURZVLWHLVZLWKLQWKH
IRUDJLQJUDQJHRIWKH6DQWD0DUJDULWD5LYHUFRORQ\
/HDVWWHUQVDUHNQRZQWRXVHWKHQHDUVKRUHZDWHUV IRU IRUDJLQJDVWKH\PDNHWKHLUQRUWKERXQG DQG VRXWKERXQG PLJUDWLRQ WUHNV  7KHUH DUH QR NQRZQ UHFRUGV RI OHDVW WHUQV XVLQJ WKH 6DQ &OHPHQWH3LHUVDQG\EHDFKKDELWDWIRUQHVWLQJRUIRUQLJKWURRVWV 
 :HVWHUQ6QRZ\3ORYHU
)HGHUDO7KUHDWHQHG

7KH FRDVWDO SRSXODWLRQ RI WKH ZHVWHUQ VQRZ\ SORYHU ZDV OLVWHG DV WKUHDWHQHG LQ WKH )HGHUDO 5HJLVWHURQ0DUFK


)5
DQGLVD&6&$UHFRYHU\SODQIRUWKLVVSHFLHVZDV
ILQDOL]HGLQ
86):6D
'HVLJQDWLRQRIFULWLFDOKDELWDWZDVSXEOLVKHGLQWKH)HGHUDO 5HJLVWHURQ'HFHPEHU


)5
DQGODVWUHYLVHGLQ
86):6E
7KLV
SRSXODWLRQ LV GHILQHG DV WKRVH LQGLYLGXDOV WKDW QHVW DGMDFHQW WR WLGDO ZDWHUV DQG LQFOXGHV DOO QHVWLQJ ELUGV RQWKHPDLQODQG FRDVW SHQLQVXODV RIIVKRUHLVODQGV DGMDFHQW ED\V HVWXDULHV DQG FRDVWDOULYHUV7KHEUHHGLQJUDQJHRIWKHWKUHDWHQHGSRSXODWLRQH[WHQGVDORQJWKH3DFLILFFRDVWRI 1RUWK $PHULFD IURP VRXWKHUQ :DVKLQJWRQ WR VRXWKHUQ %DMD &DOLIRUQLD 0H[LFR  7KH ZLQWHU UDQJHLVVRPHZKDWEURDGHUDQGPD\H[WHQGWR&HQWUDO$PHULFD 3DJHHWDO



KRZHYHUPRVW
SORYHUVZLQWHUVRXWKRI&DOLIRUQLD
7KHQHVWLQJKDELWDWRIWKHFRDVWDOSRSXODWLRQLVPDLQO\GXQHEDFNHGEHDFKHVEDUULHUEHDFKHVVDOW IODWVDQGVDOWHYDSRUDWLRQSRQGV+DELWDWRIZLQWHULQJELUGVLQFOXGHVEHDFKHVZKHUHQHVWLQJLV QRWNQRZQWRRFFXU,QWKH86RYHUFXUUHQWO\XVHGRUKLVWRULFDOQHVWLQJDQGRUZLQWHULQJ DUHDVKDYHEHHQLGHQWLILHGPRVWRIZKLFK
DERXWSHUFHQW
DUHLQ&DOLIRUQLD6QRZ\SORYHUVGR
QRWQHVWZLWKLQWKH3URMHFWDUHDZKLFKFRQVLVWVRIEHDFKHVVXEMHFWHGWRDKLJKGHJUHHRIKXPDQ 118
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

XVH6DQ2QRIUH%HDFKDSSUR[LPDWHO\PLOHVVRXWKRIWKHSURSRVHG3URMHFWDUHDLQQRUWKHUQ 6DQ 'LHJR &RXQW\ KDV EHHQ GHVLJQDWHG DV &ULWLFDO +DELWDW IRU WKH ZHVWHUQ VQRZ\ SORYHU

86):6 E
  6QRZ\ SORYHUV QHVW RQ0&%&3 DW:KLWH%HDFK
DSSUR[LPDWHO\ PL >
NP@VRXWKRIWKH3URMHFWDUHD
DQGWKH6DQWD0DUJDULWD5LYHU
DERXWPL>NP@VRXWKRIWKH
EHDFKILOODUHD

3RZHOOHWDO

7KHFRDVWDOSRSXODWLRQFRQVLVWVRIERWKUHVLGHQWDQGPLJUDWRU\ELUGV6RPHELUGVZLQWHULQWKH EUHHGLQJDUHDVZKLOHRWKHUVPLJUDWHQRUWKRUVRXWKWRZLQWHULQJDUHDV&XUUHQWSRSXODWLRQGDWD IRU&DOLIRUQLDLVDGXOWSORYHUV
6HD DQG 6DJH $XGXERQ SHUIRUPHG D  ZLQWHU VXUYH\  6DQ &OHPHQWH %HDFKHV ZHUH QRW
LQFOXGHGEHFDXVHEHDFKKDELWDWZLWKLQWKHSURMHFWSODFHPHQW IRRWSULQWDVZHOODVLQ2FHDQVLGH DUHQDUURZDQGKHDYLO\XVHGE\SHRSOH3KLOLS8QLWW6DQ'LHJR1DWXUDO+LVWRU\0XVHXP%LUGV RI6DQ'LHJR&RXQW\0HPRLU  
 GRHV QRW VKRZ VQRZ\ SORYHUVLQ QRUWK SRUWLRQ RIWKH FRXQW\&DOLIRUQLD6WDWH3DUNVKDVWUDFNHGVQRZ\SORYHUVGXULQJZLQWHUZLQGRZVXUYH\VDQGKDV GULYHQ6DQ&OHPHQWH6WDWH%HDFKPDQ\WLPHVZLWK]HURSORYHUVREVHUYHGRYHUWKH\HDUV 'DYLG
3U\RUSHUVRQDOFRPPXQLFDWLRQ)HEUXDU\

 ;DQWXV
0XUUHOHW
6WDWH7KUHDWHQHG

;DQWXV¶PXUUHOHW UDQJH IURP%DMD&DOLIRUQLDWR2UHJRQDQG:DVKLQJWRQ 1DWLRQDO*HRJUDSKLF

;DQWXV¶PXUUHOHWVDUHFRPPRQVSULQJDQGVXPPHUUHVLGHQWVWRWKH&KDQQHO,VODQGVDQG QHDUVKRUHLVODQGVDQGRIIVKRUHPDLQODQGZDWHUV
/HKPDQ


7KH\QHVWFRORQLDOO\LQRQO\
WRORFDWLRQVLQFOXGLQJ6DQWD%DUEDUD$QDFDSD6DQ0LJXHO6DQWD&DWDOLQD6DQ&OHPHQWH DQG6DQWD&UX]LVODQGV6DQWD%DUEDUD,VODQGFRQWDLQVWKHODUJHVWEUHHGLQJFRQFHQWUDWLRQRIWKLV VSHFLHVLQWKHZRUOG
0F&KHVQH\HWDO%XUNHWWHWDO
$QHIIRUWWRUHPRYHEODFNUDWV
IURP$QDFDSD,VODQGKDVUHHVWDEOLVKHGQHVWLQJE\;DQWXV¶PXUUHOHWVWKHUH7KLVVSHFLHVIRUDJHV WKURXJKRXW WKH 6&% IURP WKHVH QHVW VLWHV SDUWLFXODUO\ LQ WKH DUHD EHWZHHQ 6DQWD %DUEDUD DQG 6DQWD &DWDOLQD LVODQGV DQG WKH PDLQODQG EXW GHQVLWLHV DUH ORZ 0LOOV HW DO 
  7KH\ DUH
UDUHO\ VHHQ FORVH WR VKRUH LQ 2UDQJH &RXQW\
+DPLOWRQ DQG :LOOLFN 


  8QLWW



PHQWLRQVDIHZVLJKWLQJVRII3RLQW/RPDWKDWPLJKWEHOHVVWKDQPL NP
IURPVKRUHEXW
LWLVQRWH[SOLFLWO\VWDWHG8QLWWVWDWHVWKDWPDQ\VLJKWLQJVDUHQRWGLVWLQJXLVKHGEHWZHHQ;DQWXV¶V DQG&UDYHUL¶VPXUUHOHWVEXWLWLVPRVWOLNHO\WKDWWKH\DUH;DQWXV¶VUDWKHUWKDQ&UDYHUL¶VEHFDXVH ;DQWXV¶VDUHPXFKPRUHFRPPRQLQWKH6&%
+DUU\&DUWHUSHUVFRPP0DUFK

 /LVWHG0DULQH0DPPDOV
7ZR VSHFLHV RI SLQQLSHG GHVLJQDWHG DV )HGHUDO 7KUHDWHQHG DQG VL[ VSHFLHV RI )HGHUDO (QGDQJHUHGZKDOHVKDYHDQXQOLNHO\SRWHQWLDOWRRFFXULQWKHQHDUVKRUHZDWHUVRII6DQ&OHPHQWH DQG2FHDQVLGH7KHWKUHDWHQHGSLQQLSHGVDUHWKH*XDGDOXSHIXUVHDO Arctocephalus townsendi

DQG WKH 6WHOODU VHD OLRQ
Eumetopias jubata
  7KH (QGDQJHUHG ZKDOHV DUH EOXH ZKDOH

Balaenoptera musculus
 VHL ZKDOH
B. borealis
 ILQ ZKDOH
B. physalus
 KXPSEDFN ZKDOH

Megaptera novaeangliae
 QRUWKHUQ ULJKW ZKDOH
Eubalaena glacialis
 DQG VSHUP ZKDOH

Physeter macrocephalus
7KHSUHVHQFHRIDQ\RIWKHVHVSHFLHVZLWKLQWKHSURMHFWDUHDLVQRW H[SHFWHG
119
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 &RQVHUYDWLRQ+DELWDW0DQDJHPHQW3ODQ
6DQ &OHPHQWH LV ZLWKLQ WKH 2UDQJH &RXQW\ 6RXWKHUQ 6XEUHJLRQ 1DWXUDO &RPPXQLWLHV &RQVHUYDWLRQ3ODQ
1&&3
7KHSXUSRVHRIWKH6RXWKHUQ1&&3LVWRSURWHFWGHVLJQDWHGRSHQ VSDFH DQG FRQVHUYH LGHQWLILHG OLVWHG DQG XQOLVWHG VSHFLHV &RYHUHG 6SHFLHV
 DQG DVVRFLDWHG
YHJHWDWLRQFRPPXQLWLHVLQFOXGLQJXSODQGDTXDWLFDQGULSDULDQUHVRXUFHV &RQVHUYHG9HJHWDWLRQ
&RPPXQLWLHV
 WKURXJK WKH ORQJWHUP PDQDJHPHQW RI WKH QDWXUDO FRPPXQLWLHV WKDW SURYLGH KDELWDWHVVHQWLDOWRWKHVXUYLYDORIWKHVHZLOGOLIHDQGSODQWVSHFLHV7KH6RXWKHUQ1&&30DVWHU 6WUHDPEHG$OWHUDWLRQ$JUHHPHQW+DELWDW&RQVHUYDWLRQ3ODQ 6RXWKHUQ1&&306$$+&3
KDV
EHHQ SUHSDUHG E\ WKH &RXQW\ RI 2UDQJH LQ FRRSHUDWLRQ ZLWK WKH &')* DQG WKH 86):6 LQ DFFRUGDQFHZLWKWKH SURYLVLRQV RIWKH6WDWH1DWXUDO&RPPXQLW\&RQVHUYDWLRQ3ODQQLQJ$FW RI 

6HFWLRQVHWVHTRIWKH&DOLIRUQLD)LVKDQG*DPH&RGHDQGWKH)HGHUDO(QGDQJHUHG 6SHFLHV$FW
(6$

 &XOWXUDO5HVRXUFHV
&XOWXUDO UHVRXUFHV LQFOXGH SUHKLVWRULF DUFKDHRORJLFDO VLWHV KLVWRULF DUFKDHRORJLFDO VLWHV DQG KLVWRULFVWUXFWXUHVDQGFRQVLVWRIDUWLIDFWVIRRGZDVWHVWUXFWXUHVDQGIDFLOLWLHVPDGHE\SHRSOH LQ WKH SDVW  3UHKLVWRULF DUFKDHRORJLFDO VLWHV DUH SODFHV WKDW FRQWDLQ WKH PDWHULDO UHPDLQV RI DFWLYLWLHVFDUULHGRXWE\WKHQDWLYHSRSXODWLRQRIWKHDUHD 1DWLYH$PHULFDQV
SULRUWRWKHDUULYDO
RI (XURSHDQV LQ VRXWKHUQ &DOLIRUQLD  $UWLIDFWV IRXQG LQ SUHKLVWRULF VLWHV LQFOXGH IODNHG VWRQH WRROV VXFK DV SURMHFWLOH SRLQWV NQLYHV VFUDSHUV DQG GULOOV  JURXQG VWRQHWRROV VXFK DVPDQRV
PHWDWHV PRUWDUV DQG SHVWOHV IRU JULQGLQJ VHHGV DQG QXWV  DQG ERQH WRROV VXFK DV DZOV
3UHKLVWRULFVLWHVDQGIHDWXUHVLQFOXGHKHDUWKVEHGURFNPRUWDUVURFNVKHOWHUVURFNDUWDQGEXULDOV +LVWRULFDUFKDHRORJLFDOVLWHVDUHSODFHVWKDWFRQWDLQWKHPDWHULDOUHPDLQVRIDFWLYLWLHVFDUULHGRXW E\SHRSOHGXULQJWKHSHULRGZKHQZULWWHQUHFRUGVZHUHSURGXFHGDIWHUWKHDUULYDORI(XURSHDQV +LVWRULFDUFKDHRORJLFDOPDWHULDOVXVXDOO\FRQVLVWRIUHIXVHVXFKDVERWWOHVFDQVDQGIRRGZDVWH GHSRVLWHG QHDU VWUXFWXUH IRXQGDWLRQV  $UFKDHRORJLFDO LQYHVWLJDWLRQ RI KLVWRULF SHULRG VLWHV LV XVXDOO\ VXSSOHPHQWHG E\ KLVWRULF UHVHDUFK XVLQJ ZULWWHQ UHFRUGV  +LVWRULF VWUXFWXUHV LQFOXGH KRXVHVFRPPHUFLDOVWUXFWXUHVLQGXVWULDOIDFLOLWLHVDQGRWKHUVWUXFWXUHVDQGIDFLOLWLHVPRUHWKDQ \HDUVROG
 5HJXODWRU\6HWWLQJ
 )HGHUDO/HYHO
6HFWLRQRIWKH1DWLRQDO+LVWRULF3UHVHUYDWLRQ$FWRI 
1+3$
UHTXLUHVIHGHUDODJHQFLHV
WR WDNH LQWR DFFRXQW WKH HIIHFWV RI WKHLU XQGHUWDNLQJV RQ FXOWXUDO UHVRXUFHV HOLJLEOH IRU WKH 1DWLRQDO 5HJLVWHU RI +LVWRULF 3ODFHV
1DWLRQDO 5HJLVWHU
 7KH DFWLRQ PXVW GHPRQVWUDWH
FRPSOLDQFHZLWKWKH1+3$3XEOLF/DZ

86&PDVDPHQGHG86&
EOQDQG&)5DVDPHQGHG
$XJXVW

&XOWXUDO UHVRXUFHV DUH LGHQWLILHG XVLQJ WZR SULQFLSDO PHWKRGV  %HIRUH VWDUWLQJ D SURMHFW D UHFRUGV DQG OLWHUDWXUH VHDUFK LV FRQGXFWHG DW UHSRVLWRULHV RI DUFKHRORJLFDO VLWH UHFRUGV  7KH VHDUFKPD\VKRZWKDWDQDUFKHRORJLFDORUKLVWRULFDOVXUYH\KDVEHHQFRQGXFWHGLQWKHSURMHFWDUHD 120
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

DQGWKDW FXOWXUDO UHVRXUFHV KDYH EHHQLGHQWLILHG 7KDWLQIRUPDWLRQPD\ EH HQRXJKWR SURFHHG ZLWKWKHVLJQLILFDQFHHYDOXDWLRQVWDJHRIWKHSURMHFW,IQRSUHYLRXVVXUYH\KDVEHHQGRQHRULID SUHYLRXVVXUYH\ZDVHLWKHURXWRIGDWHRULQDGHTXDWHDSHGHVWULDQVXUYH\RIWKHJURXQGVXUIDFH ZLWKLQ WKH SURSRVHG SURMHFW ERXQGDULHV PD\ EH FRQGXFWHG  6XEVXUIDFH WHVWLQJ PD\ DOVR EH SHUIRUPHGLIGHHPHGDSSURSULDWHE\WKHFXOWXUDOUHVRXUFHVSURIHVVLRQDO $IWHUDFXOWXUDOUHVRXUFH
V
KDVEHHQLGHQWLILHGGXULQJDVXUYH\RUUHFRUGDQGOLWHUDWXUHVHDUFKWKH IHGHUDODJHQF\RYHUVHHLQJWKHXQGHUWDNLQJSURFHHGVWRGHWHUPLQHZKHWKHUWKHFXOWXUDOUHVRXUFHLV HOLJLEOHIRUOLVWLQJLQWKH1DWLRQDO5HJLVWHURI+LVWRULF3ODFHV 1DWLRQDO5HJLVWHU
6HFWLRQRI
WKH 1DWLRQDO +LVWRULF 3UHVHUYDWLRQ $FW PDQGDWHV WKLV SURFHVV  7KH )HGHUDO 5HJXODWLRQ WKDW JXLGHVWKHSURFHVVLVIRXQGDW&)5
)RUDFXOWXUDOUHVRXUFHWREHGHWHUPLQHGHOLJLEOHIRUOLVWLQJLQWKH1DWLRQDO5HJLVWHULWKDVWRPHHW FHUWDLQ FULWHULD  7KH UHVRXUFH KDV WR EH HLWKHU PLQLPDOO\  \HDUV ROG RU H[KLELW H[FHSWLRQDO LPSRUWDQFH  $IWHU PHHWLQJWKH DJH UHTXLUHPHQW FXOWXUDO UHVRXUFHV DUH HYDOXDWHG DFFRUGLQJWR IRXUFULWHULD
DEFDQGG7KH1DWLRQDO5HJLVWHUFULWHULD IRUHYDOXDWLRQDVGHILQHGLQ&)5 DUH

7KH TXDOLW\ RI VLJQLILFDQFH LQ $PHULFDQ KLVWRU\ DUFKLWHFWXUH DUFKHRORJ\ HQJLQHHULQJ DQG FXOWXUH LV SUHVHQW LQ GLVWULFWV VLWHV EXLOGLQJV VWUXFWXUHV DQG REMHFWV WKDW SRVVHVV LQWHJULW\ RI ORFDWLRQGHVLJQVHWWLQJPDWHULDOVZRUNPDQVKLSIHHOLQJDQGDVVRFLDWLRQDQG D WKDW DUH DVVRFLDWHG ZLWK HYHQWV WKDW KDYH PDGH D VLJQLILFDQW FRQWULEXWLRQ WR WKH EURDG SDWWHUQVRIRXUKLVWRU\
RU
E WKDWDUHDVVRFLDWHGZLWKWKHOLYHVRISHUVRQVVLJQLILFDQWLQRXUSDVW RU
F WKDWHPERG\WKHGLVWLQFWLYHFKDUDFWHULVWLFVRIDW\SHSHULRGRUPHWKRGRIFRQVWUXFWLRQRU WKDWUHSUHVHQWWKHZRUNRIDPDVWHURUWKDWSRVVHVVKLJKDUWLVWLFYDOXHVRUWKDWUHSUHVHQWD VLJQLILFDQWDQGGLVWLQJXLVKDEOHHQWLW\ZKRVHFRPSRQHQWVPD\ODFNLQGLYLGXDOGLVWLQFWLRQ 
RU
G WKDW KDYH \LHOGHG RU PD\ EH OLNHO\ WR \LHOG LQIRUPDWLRQ LPSRUWDQW LQ SUHKLVWRU\ RU KLVWRU\
$IWHUDFXOWXUDOUHVRXUFHKDVEHHQGHWHUPLQHGHOLJLEOHIRULQFOXVLRQLQWKH1DWLRQDO5HJLVWHULWLV DFFRUGHGWKHVDPHOHYHORISURWHFWLRQDVDSURSHUW\WKDWLVLQFOXGHG ,WWKHQEHFRPHV IRUPDOO\ NQRZQDVD³KLVWRULFSURSHUW\´UHJDUGOHVVRIDJH
 6WDWH/HYHO
/LNH 1(3$ WKH &(4$ DOVR FRQVLGHUV WKH HIIHFWV RI D SURMHFW RQ FXOWXUDO UHVRXUFHV  &(4$ DSSOLHVWRDOOSURMHFWVXQGHUWDNHQE\DSXEOLFDJHQF\
6WDWHRU/RFDO
DQ\VSHFLDOGLVWULFW
HJD
VFKRRO GLVWULFW
 DQG DQ\ SXEOLF FROOHJH RU XQLYHUVLW\  7KH &(4$ *XLGHOLQHV DUH WKH LPSOHPHQWLQJ PHDVXUHV IRU &(4$  7KH &(4$ *XLGHOLQHV †  &DOLIRUQLD &RGH RI
5HJXODWLRQV >&&5@
LQGLFDWH D SURMHFWPD\ KDYH D VLJQLILFDQW HQYLURQPHQWDO HIIHFWLILW FDXVHV ³VXEVWDQWLDO DGYHUVH FKDQJH´ LQ WKH VLJQLILFDQFH RI DQ ³KLVWRULFDO UHVRXUFH´ RU D ³XQLTXH DUFKDHRORJLFDO UHVRXUFH´ DV GHILQHG RU UHIHUHQFHG LQ  &&5 † EF




  6XFK
121
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


FKDQJHVLQFOXGH³SK\VLFDOGHPROLWLRQGHVWUXFWLRQUHORFDWLRQRUDOWHUDWLRQRIWKHUHVRXUFHRULWV LPPHGLDWHVXUURXQGLQJVVXFKWKDWWKHVLJQLILFDQFHRIDQKLVWRULFDOUHVRXUFHZRXOGEHPDWHULDOO\ LPSDLUHG´
&&5†>E@

&XOWXUDO UHVRXUFHVDUHLGHQWLILHGDQGHYDOXDWHG IRUOLVWLQJLQWKH&DOLIRUQLD5HJLVWHURI+LVWRULF 5HVRXUFHV
&DOLIRUQLD5HJLVWHU
&XOWXUDOUHVRXUFHVWKDWKDYHEHHQGHWHUPLQHGHOLJLEOHIRUOLVWLQJ LQ WKH &DOLIRUQLD 5HJLVWHU DUH UHIHUUHG WR DV ³KLVWRULFDO UHVRXUFHV´  &(4$ 35& 6HFWLRQV

E
DQG
UHFRJQL]HVKLVWRULFDOUHVRXUFHVDVSDUWRIWKHHQYLURQPHQW7KH &DOLIRUQLD 5HJLVWHU LV DQ DXWKRULWDWLYH JXLGH WR WKH 6WDWH¶V KLVWRULFDO UHVRXUFHV DQG WR ZKLFK SURSHUWLHVDUHFRQVLGHUHGVLJQLILFDQWIRUSXUSRVHVRI&(4$7KH&DOLIRUQLD5HJLVWHU&ULWHULDRI 6LJQLILFDQFH DUH VLPLODU WR WKDW RI WKH 1DWLRQDO 5HJLVWHU  $Q KLVWRULFDO UHVRXUFH PXVW EH VLJQLILFDQWDWWKH/RFDO6WDWHRUQDWLRQDOOHYHOXQGHURQHRUPRUHRIWKHIROORZLQJIRXUFULWHULD 
 ,WLVDVVRFLDWHGZLWKHYHQWVWKDWKDYHPDGHDVLJQLILFDQWFRQWULEXWLRQWRWKHEURDGSDWWHUQV RIORFDORUUHJLRQDOKLVWRU\RUWKHFXOWXUDOKHULWDJHRI&DOLIRUQLDRUWKH8QLWHG6WDWHV RU
 ,WLVDVVRFLDWHGZLWKWKHOLYHVRISHUVRQVLPSRUWDQWWRORFDO&DOLIRUQLDRUQDWLRQDOKLVWRU\ 
RU
 ,W HPERGLHV WKH GLVWLQFWLYH FKDUDFWHULVWLFV RI D W\SH SHULRG UHJLRQ RU PHWKRG RI FRQVWUXFWLRQRUUHSUHVHQWVWKHZRUNRIDPDVWHURUSRVVHVVHVKLJKDUWLVWLFYDOXHV RU
 ,W KDV \LHOGHG RU KDV WKH SRWHQWLDO WR \LHOG LQIRUPDWLRQLPSRUWDQW WR WKH SUHKLVWRU\ RU KLVWRU\RIWKHORFDODUHD&DOLIRUQLDRUWKHQDWLRQ
 /RFDO/HYHO
7KH&LW\RI6DQ&OHPHQWH¶V*HQHUDO3ODQDGGUHVVHVKLVWRULFDOUHVRXUFHVLQLWV&XOWXUDO5HVRXUFHV (OHPHQW DGRSWHG LQ 

  7KH &LW\ RI 6DQ &OHPHQWH DOVR LV D &HUWLILHG /RFDO *RYHUQPHQW XQGHUWKH1+3$$VDUHVXOW6DQ&OHPHQWHLVUHTXLUHGWRPDLQWDLQDV\VWHPIRULQYHQWRU\DQG VXUYH\RIKLVWRULFSURSHUWLHVWKDWLVFRQVLVWHQWZLWKWKH&DOLIRUQLD2IILFHRI+LVWRULF3UHVHUYDWLRQ JXLGHOLQHV  7KH &LW\ RI 6DQ &OHPHQWH XVHV &DOLIRUQLD 5HJLVWHU FULWHULD IRU PDNLQJ GHWHUPLQDWLRQV RI VLJQLILFDQFH
KWWS
VDQFOHPHQWHRUJVFVWDQGDUGDVS["SDJHLG 

 DFFHVVHG
-DQXDU\

 $UHDRI3RWHQWLDO(IIHFWV
$3(

)RUWKHSXUSRVHRILGHQWLILFDWLRQRIH[LVWLQJFXOWXUDOUHVRXUFHVIRUWKLV3URMHFWWKH3URMHFW¶V$3( LQFOXGHVWKUHHQRQFRQWLJXRXVDUHDVZKLFKDUHORFDWHGERWKRQVKRUHDQGRIIVKRUH7KHRQVKRUH SRUWLRQ RIWKH$3(LQFOXGHVWKHDSSUR[LPDWHO\  IW P
ORQJDQG  IW
P
ZLGH
VWULS RI VKRUHOLQH FHQWHUHG DURXQG WKH 6DQ &OHPHQWH 0XQLFLSDO 3LHU IURP DSSUR[LPDWHO\ WKH 0DULQH6DIHW\+HDGTXDUWHUVEXLOGLQJWRMXVWVRXWKRIWKH76WUHHWRYHUSDVV7KHRIIVKRUHSRUWLRQ RIWKH$3(LQFOXGHVWKHRIIVKRUHERUURZVLWH$UHDORFDWHGRIIWKHFRDVWRI2FHDQVLGH /RFDOSUHKLVWRU\DQGKLVWRU\DUHEULHIO\VXPPDUL]HGKHUHLQRUGHUWRSURYLGHDFRQWH[WIRUIXUWKHU GLVFXVVLRQRIWKHNQRZQDUFKDHRORJLFDODQGKLVWRULFDOUHPDLQVZLWKLQWKH$3(DQGYLFLQLW\ 122
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 &XOWXUDO&RQWH[W
7KLVVHFWLRQVXPPDUL]HVWKHDUFKDHRORJ\ZLWKLQDQGDGMDFHQWWRWKHVRXWKHUQ&DOLIRUQLDFRDVWOLQH IURP 'RKHQ\ 6WDWH %HDFK WR 6DQ 0DWHR 3RLQW  $ YDULHW\ RI GLIIHUHQW UHJLRQDO FKURQRORJLHV RIWHQZLWKRYHUODSSLQJWHUPLQRORJ\KDYHEHHQXVHGLQFRDVWDOVRXWKHUQ&DOLIRUQLDDQGWKH\YDU\ IURP UHJLRQWR UHJLRQ7RGD\WKHSUHKLVWRU\RI2UDQJH&RXQW\LVJHQHUDOO\GLYLGHGLQWRWKUHH PDMRU WHPSRUDO SHULRGV
 3DOHRLQGLDQ $UFKDLF DQG /DWH 3UHKLVWRULF  7KHVH WLPH SHULRGV DUH FKDUDFWHUL]HGE\SDWWHUQVLQPDWHULDOFXOWXUHWKDWDUHWKRXJKWWRUHSUHVHQWGLVWLQFWUHJLRQDOWUHQGV LQWKH HFRQRPLF DQG VRFLDO RUJDQL]DWLRQ RI SUHKLVWRULF JURXSV ,Q DGGLWLRQ SDUWLFXODU VFKRODUV UHIHUULQJWRVSHFLILFDUHDVXWLOL]HDQXPEHURIFXOWXUDOWHUPVV\QRQ\PRXVO\ZLWKWKHVHWHPSRUDO ODEHOV)RUH[DPSOH:DUUHQ


LQUHIHUHQFHWRWKHVRXWKHUQ&DOLIRUQLDFRDVWDQGVSHFLILFDOO\ 2UDQJH&RXQW\SUHIHUV(QFLQLWDV7UDGLWLRQIRU$UFKDLFDQG6KRVKRQHDQIRU/DWH3UHKLVWRULF  3DOHRLQGLDQ3HULRG
7KH DQWLTXLW\ RI KXPDQ RFFXSDWLRQ LQ WKH 1HZ :RUOG KDV EHHQ WKH VXEMHFW RI FRQVLGHUDEOH GHEDWHRYHUWKHODVWIHZGHFDGHV7KHFXUUHQWO\DFFHSWHGPRGHOLVWKDWKXPDQVILUVWHQWHUHGWKH ZHVWHUQKHPLVSKHUHEHWZHHQDQG\HDUV%3 EHIRUHSUHVHQW
7KHUHLVFXUUHQWO\
QRILUPHYLGHQFHRIKXPDQRFFXSDWLRQLQFRDVWDOVRXWKHUQ&DOLIRUQLDSULRUWR%37KXV WKLVSHULRGEHJLQVZLWKWKH ILUVWHYLGHQFHRIKXPDQRFFXSDWLRQDQGHQGVZLWKWKHH[WLQFWLRQRI 3OHLVWRFHQH JDPH DURXQG
 %&
EHIRUH &KULVW
  1R 3DOHRLQGLDQ SHULRG VLWHV DUH NQRZQ
ZLWKLQ2UDQJH&RXQW\EXWVHYHUDOKDYHEHHQIRXQGLQ6DQ'LHJR&RXQW\:DUUHQ 

QDPHG
WKLVORFDOFXOWXUDOWUDGLWLRQWKH6DQ'LHJXLWR7UDGLWLRQ7KHDUWLIDFWDVVHPEODJH IRUWKLVSHULRG FRQVLVWV PRVWO\ RI OLWKLF
VWRQHURFN
 DUWLIDFWV
 ODUJH SURMHFWLOH SRLQWV VFUDSHUV DQG FKRSSHUV 3DOHRLQGLDQ VXEVLVWHQFH ZDV EDVHG RQ WKH KXQWLQJ RI ODUJH 3OHLVWRFHQH JDPH  6RFLDO JURXSVIDPLOLHVZRXOGKDYHVWD\HGZLWKDPDMRUNLOODVXQWLOLWZDVGHSOHWHGRIDOOLWVQXWULWLRQDO DQG IXQFWLRQDO YDOXH  5HVHDUFKHUV DUJXHWKDW VXFK DQ HFRQRP\ FRXOG RQO\ VXSSRUW JURXSV QR ODUJHUWKDQ H[WHQGHG IDPLOLHV$URXQG
%&WKH 3OHLVWRFHQH(SRFK HQGHG DQGWKHODUJH JDPHDQLPDOVEHFDPHH[WLQFW1RORQJHUDEOHWRFRQWLQXHWKHLUELJJDPHKXQWLQJWUDGLWLRQWKH 3DOHRLQGLDQSHRSOHZHUHIRUFHGWRXWLOL]HRWKHUUHVRXUFHVWRPHHWWKHLUHFRQRPLFQHHGV  $UFKDLF3HULRG
7KH$UFKDLFSHULRGLVFRPPRQO\VXEGLYLGHGLQWR(DUO\

%&
0LGGOH

%&
DQG/DWH$UFKDLFSHULRG
%&
,QDGGLWLRQ:DOODFH


UHIHUVWRWKLVDV
+RUL]RQ,,0LOOLQJ6WRQHDQG:DUUHQ


FDOOVLWWKH(QFLQLWDV7UDGLWLRQ6XEVLVWHQFHGXULQJ WKH(DUO\$UFKDLFFDPHSULPDULO\IURPSODQWVDQGVPDOODQLPDOVILVKLQJDQGVKHOOILVK%\WKH 0LGGOH$UFKDLFKDUGVHHGVZHUHLQFOXGHGLQWKHGLHWDVHYLGHQFHGE\WKHDEXQGDQFHRIPDQRV DQGPHWDWHVIRXQGZLWKLQWKHVHVLWHV%\WKH/DWH$UFKDLFVRFLDOJURXSVJUHZLQQXPEHUVDQG EHFDPHPRUHVHGHQWDU\*URXSVPLJUDWHGVHDVRQDOO\GHSHQGLQJRQIRRGDYDLODELOLW\UDWKHUWKDQ UDQGRPO\IROORZLQJJDPHDQLPDOV
 /DWH3UHKLVWRULF3HULRG
7KH/DWH3UHKLVWRULFSHULRGLVJHQHUDOO\FRQVLGHUHGWRKDYHEHJXQEHWZHHQDQG\HDUV DJR
0RUDWWR

 ,QJHQHUDOWKLVSHULRGKDVEHHQFKDUDFWHUL]HGE\WKHDSSHDUDQFHRIVPDOO 123
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

SUHVVXUHIODNHGDUURZSRLQWV
&RWWRQZRRG7ULDQJXODUDQG'HVHUW6LGHQRWFKHGSRLQWV
LQGLFDWLYH
RI ERZ DQG DUURZ WHFKQRORJ\ WKH DSSHDUDQFH RI FHUDPLFV WKH UHSODFHPHQW RI IOH[HG LQKXPDWLRQVZLWKFUHPDWLRQVWKHSRVVLEOHDSSHDUDQFHRIWKHPRUWDUDQGSHVWOHDQGDQHPSKDVLV RQ LQODQG SODQW IRRG FROOHFWLQJ DQG SURFHVVLQJ HVSHFLDOO\ RI DFRUQV  ,Q DGGLWLRQ VHGHQWDU\ YLOODJHVZLWKSRSXODWLRQVRIXSWRSHUVRQVDORQJZLWKGHFRUDWHGWRROVDQGRUQDPHQWVDUH DWWULEXWHG WR WKLV SHULRG  :DUUHQ


 FDOOHG WKLV SHULRG 6KRVKRQHDQ
 QDPHG DIWHU WKH
PLJUDWLRQ RI 6KRVKRQHDQVSHDNHUV NQRZQ DV WKH 6KRVKRQHDQ ZHGJH WR PRVWO\ ZKDW LV QRZ 2UDQJH&RXQW\ IURPWKHLQODQGGHVHUWVDERXW\HDUVDJR5HVHDUFKHUVKDYH UHFRUGHGWKLV PLJUDWLRQWRWKHRULJLQRIWKH/DWH3UHKLVWRULFSHULRG)ROORZLQJWKLVLQIOX[RIQHZSHRSOHWKH WULEDOODQGVFDSHLQWKH6RXWKHUQ&DOLIRUQLD&RDVWDOUHJLRQVZDVDOWHUHGE\GLIIHUHQWLDWLRQRIWULEHV LQWR WKH GLVFUHWH FXOWXUDO JURXSV WKDW ZHUH SUHVHQW DW WKH WLPH RI (XURSHDQ FRQWDFW :DOODFH



 3RVW&RQWDFW1DWLYH$PHULFDQ(WKQRKLVWRU\
7KH 3RVW&RQWDFW SHULRG EHJDQ LQ 
 $'
DIWHU &KULVW
 ZKHQ *DVSDU GH 3RUWROD OHG DQ
RYHUODQGH[SHGLWLRQIURP6DQ'LHJRWR0RQWHUH\&$7KHILUVWSHUPDQHQWVHWWOHPHQWLQ2UDQJH &RXQW\FDPHZKHQ6DQ-XDQ&DSLVWUDQRZDVVHOHFWHGDVWKHVLWH IRUDPLVVLRQLQWKHVSULQJRI 7KHHVWDEOLVKPHQWRIWKH6DQ-XDQ&DSLVWUDQR0LVVLRQLQDQGWKH6DQ/XLV5H\GH )UDQFLVFDQ 0LVVLRQ LQ 
 IXUWKHU LPSDFWHG WUDGLWLRQDO FRDVWDO VHWWOHPHQW V\VWHPV $FFXOWXUDWLRQ DVVLPLODWLRQ DQG WKH LQWURGXFWLRQ RI 2OG :RUOG GLVHDVHV JUHDWO\ GLVUXSWHG DQG UHGXFHG1DWLYH$PHULFDQ SRSXODWLRQVDQG E\WKHHDUO\ VWUDGLWLRQDOFRDVWDO YLOODJHVZHUH ODUJHO\DEDQGRQHG
7KLV3URMHFWDUHDIDOOVSULPDULO\ZLWKLQWKHWHUULWRU\RIWKH-XDQHxR7ULEH7KH\DUHNQRZQDVWKH -XDQHxR EHFDXVH RI WKHLU DVVRFLDWLRQ DQG SUR[LPLW\ ZLWK WKH 6DQ -XDQ &DSLVWUDQR 0LVVLRQ $FFRUGLQJ WR %HDQ DQG 6KLSHN


 WKH -XDQHxR DQG /XLVHxR DUH FRQVLGHUHG WR EH HWKQRORJLFDOO\ DQG OLQJXLVWLFDOO\ WKH VDPH EXW KDYH EHHQ VXEGLYLGHG GXH WR PLVVLRQL]DWLRQ GXULQJ WKH 6SDQLVK SHULRG   7RGD\ WKH -XDQHx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¶V ³&KLQLJFKLQLFK´ LV LQ WKH ZRUGV RI .URHEHU ³WKH PRVW LQWHQVLYH DQG EHVW ZULWWHQ DFFRXQW RIWKH FXVWRPV DQG UHOLJLRQ RI DQ\ JURXS RI&DOLIRUQLD ,QGLDQVLQWKHPLVVLRQ GD\V´



  7KH -XDQHxR SUDFWLFHG SXEHUW\ ULWHV DQG PRXUQLQJ ULWXDOV  %RWK WKHVH FHUHPRQLHV ZHUH KHOG ZLWKLQ D VDFUHG HQFORVHG VWUXFWXUH FDOOHG WKH :DQNHFK  8QLQLWLDWHG SHUVRQVZHUHQRWDOORZHGWRHQWHUWKLVVWUXFWXUHDQGRQFHLQVLGHYRLFHVZHUHNHSWWRDZKLVSHU 7KH VWUXFWXUH FRQWDLQHG DQ DOWDU FRQVLVWLQJ RI DQ HIILJ\ RI WKH JRG &KLQLJFKLQLFK DQG D VDQG 124
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

SDLQWLQJ$FFRUGLQJWR%URZQ³WKHFHQWHURIWKH-XDQHxRUHOLJLRQZDV&KLQLJFKLQLFKWKHODVWRI DVHULHVRIKHURLFP\WKRORJLFDOILJXUHV7KHKHURHVZHUHRULJLQDOO\IURPWKHVWDUVDQGWKHVDJDV WROGRIWKHPIRUPHGWKH-XDQHxRUHOLJLRXVEHOLHIV´




3XEHUW\ULWHVZHUHSUDFWLFHGIRUERWKER\VDQGJLUOV0DOHLQLWLDWLRQLQFOXGHGWKHXVHRIGDWXUDD KDOOXFLQRJHQLQRUGHUWR³VHH´WKHDQLPDOWKDWZRXOGKHOSSURWHFWWKHPIURPIXWXUHGDQJHUV7KH DQLPDOZDV XVXDOO\ D FR\RWH EHDU FURZ RU UDYHQ RU D UDWWOHVQDNH )HPDOHLQLWLDWLRQ UHTXLUHG WKDWWKHJLUOIDVWDQGOLHLQDSLWOLQHGZLWKKHDWHGVWRQHVIRUVHYHUDOGD\VZKLOHROGHUZRPHQVDQJ DQG \RXQJHU ZRPHQ GDQFHG DURXQG KHU  7KH PRXUQLQJ FHUHPRQ\ FRQVLVWHG RI FUHPDWLQJ WKH GHFHGHQW XVXDOO\ MXVW KRXUV DIWHU GHDWK  7KH S\UH ZDV OLW E\ D GHVLJQDWHG LQGLYLGXDO ZKR REWDLQHGWKLVSULYLOHJHE\GHVFHQW7KH-XDQHxRKDGPHGLFLQHPHQRUVKDPDQVEXWYHU\OLWWOHLV NQRZQ DERXWWKHP RUWKHLU SUDFWLFHV ,Q DGGLWLRQWKH -XDQHxRXVHG D FDOHQGDU$FFRUGLQJWR .URHEHU³WHQPRQWKVZHUHQDPHG«WKH\HDUZDVGHILQLWHO\GLYLGHGE\WKHVROVWLFHV«WKHPRQWK RU PRRQ LQ ZKLFK WKH VROVWLFH IHOO ZDV VRPHZKDW ORQJHU WKDQ WKH RWKHUV DIWHU ZKLFK WKHUH IROORZHGIRXUUHJXODUOXQDWLRQV«QRWKLQJOLNHWKLVDWWHPSWWRFRPELQHDOXQDUDQGVRODUFRXQWKDV \HW EHHQ UHSRUWHG IURP DQ\ RWKHU SHRSOH LQ &DOLIRUQLD´ 


  7KH RIILFH RI FKLHI ZDV
LQKHULWHGIURPSDWHUQDOOLQHDJH
 (XUR$PHULFDQ+LVWRU\
7KH+LVSDQLFHUDLQ&DOLIRUQLD¶VKLVWRU\LQFOXGHVWKH6SDQLVK&RORQLDO 

DQG0H[LFDQ
5HSXEOLF

 SHULRGV7KLV HUDZLWQHVVHGWKHWUDQVLWLRQ IURP D VRFLHW\ GRPLQDWHG E\ UHOLJLRXV DQGPLOLWDU\LQVWLWXWLRQV FRQVLVWLQJ RIPLVVLRQV DQGSUHVLGLRVWR D FLYLOLDQ SRSXODWLRQ UHVLGLQJRQODUJHUDQFKRVRULQSXHEORV
%\ WKH HDUO\ V &DOLIRUQLD FDPH XQGHU 0H[LFR¶V UXOH DQG LQ  WKH PLVVLRQV ZHUH VHFXODUL]HG  7KLV UHVXOWHG LQ SROLWLFDO LPEDODQFH DQG ,QGLDQ XSULVLQJV DJDLQVW WKH 0H[LFDQ UDQFKHURV  6HFXODUL]DWLRQ RI PLVVLRQ ODQGV EHJDQ VKRUWO\ DIWHU WKH GHFODUDWLRQ RI 0H[LFDQ ,QGHSHQGHQFHLQ1LQHWKRXVDQGDFUHVRIODQGLQFOXGLQJWKHDUHDRI6DQ&OHPHQWHZHUH JUDQWHGWR )LOLSH&DUULOORLQ  DV5DQFKR/RV'HVDHFKRV %URZQ 


&DUULOOR IDLOHGWR
VXEPLWKLVFODLPWRWKH86/DQG&RPPLVVLRQDIWHUWKH8QLWHG6WDWHVWRRNSRVVHVVLRQRIWKHDUHD IURP0H[LFRDQGDVDUHVXOWWKHUDQFKRFKDQJHGKDQGVVHYHUDOWLPHV %URZQ



1DPHGDIWHURQHRIWKHRIIVKRUHVRXWKHUQ&KDQQHO,VODQGVWKHFLW\RI6DQ&OHPHQWHZDVIRXQGHG E\DIRUPHUPD\RURI6HDWWOH2OH+DQVRQLQ

%URFN

6DQ&OHPHQWHZDVDPRQJWKH
ILUVW PDVWHU SODQQHG FRPPXQLWLHV EXLOW IURP WRWDOO\ RSHQ ODQG LQ WKH 8QLWHG 6WDWHV  %HIRUH HUHFWLQJ D VLQJOH VWUXFWXUH RQWKH UROOLQJ FRDVWDO KLOOV 2OH +DQVRQODLG RXW DQ H[SDQVLYH SODQ EDVHGRQWKH6SDQLVK&RORQLDODUFKLWHFWXUDOVW\OHLQFOXGLQJUHVWDXUDQWVDFOXEKRXVHUHVLGHQFHV SXEOLF SDUNV D SXEOLF SRRO D ILVKLQJ SLHU DQG HYHQ HTXHVWULDQ WUDLOV  +DQVRQ¶V UHVLGHQWLDO FRPPXQLW\ SURPRWHG DV ³7KH 6SDQLVK 9LOODJH´ IHDWXUHG ZLGH PHDQGHULQJ VWUHHWV WKDW FRQIRUPHGWRWKHFRQWRXUVRIWKHKLOOVKRXVHVVLWXDWHGWRSURYLGHDQRFHDQYLHZDQGPDQGDWRU\ ZKLWHVWXFFRH[WHULRUVDQGUHGWLOHURRIVIRUHYHU\EXLOGLQJ6DQ&OHPHQWHZDVLQFRUSRUDWHGLQ 
DQGJUHZUDSLGO\XQWLOWKH'HSUHVVLRQZKHQGHYHORSPHQWKDOWHG7KHJURZWKUDWHSLFNHG XSDJDLQGXULQJWKH
VDQGZDVODWHUERRVWHGE\FRQVWUXFWLRQRIWKH6DQ'LHJR)UHHZD\ 125
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

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¶VLQFUHDVLQJDSSUHFLDWLRQIRULWVSDVWLVWKHUHVWRUDWLRQ XQGHUZD\ DWWKH &DVD 5RPDQWLFD ZKLFK ZDV 2OH +DQVRQ¶V EOXIIWRS KRPH DWWKHWLPH RIWKH &LW\¶V IRXQGLQJ7KH&DVD5RPDQWLFDZDVFRPSOHWHGLQ  DQGDIWHU+DQVRQORVWLWWRWKH
EDQNGXULQJWKH*UHDW'HSUHVVLRQWKH&DVDSDVVHGWKURXJKYDULRXVRZQHUV7KHZHDUDQGWHDU RIWLPHDQGQHJOHFWWRRNLWVWROODQGDWRQHSRLQWWKHRXWVWDQGLQJODQGPDUNVHHPHGGHVWLQHGIRU GHPROLWLRQ)RUWXQDWHO\DJURXSRIORFDODFWLYLVWVSXVKHGKDUGIRUWKH&DVD5RPDQWLFD¶VUHVFXH DQGGLUHFWHGLWVGHVWLQ\DZD\IURPFRPPHUFLDODOWHUQDWLYHVDQGWRZDUGDXVHWKDWZLOOEHQHILWDOO RIWKHFRPPXQLW\²WKDWRID&XOWXUDO&HQWHUDQG*DUGHQV  5HFRUGVDQG/LWHUDWXUH6HDUFK5HVXOWV
,Q WKH86$&(
/\GLD/RSH]&UX]
FRQGXFWHGDFXOWXUDO UHVRXUFHV UHFRUGV VHDUFK RIWKH $3(DQGYLFLQLW\WKURXJKWKH&DOLIRUQLD+LVWRULFDO5HVRXUFHV ,QIRUPDWLRQ6\VWHPDWWKH6RXWK &HQWUDO&RDVWDO,QIRUPDWLRQ&HQWHU
&+5,66&&,&
DW&DOLIRUQLD6WDWH8QLYHUVLW\)XOOHUWRQWR
GHWHUPLQHLIWKH$3(

KDVEHHQVXUYH\HGIRUFXOWXUDOUHVRXUFHV
DQG

FRQWDLQVDQ\UHFRUGHG
FXOWXUDO UHVRXUFHV RU KLVWRULF SURSHUWLHV  0V /RSH]&UX] UHYLHZHG WKH &DOLIRUQLD 2IILFH RI +LVWRULF 3UHVHUYDWLRQ¶V +LVWRULF 5HVRXUFHV ,QYHQWRU\ ZKLFK LQFOXGHV WKH 1DWLRQDO 5HJLVWHU RI +LVWRULF 3ODFHV &DOLIRUQLD 5HJLVWHU RI +LVWRULFDO 5HVRXUFHV 6WDWH +LVWRULF /DQGPDUNV DQG 3RLQWVRI+LVWRULF,QWHUHVWOLVWLQJV
7KHUHFRUGVVHDUFKUHVXOWVLQGLFDWHWKDWWKH$3(KDVQRWEHHQVXUYH\HGIRUFXOWXUDOUHVRXUFHV,Q 

50:3DOHR$VVRFLDWHV,QFFRQGXFWHGDFXOWXUDOUHVRXUFHVVXUYH\IRUWKHSHGHVWULDQDQG ELF\FOHSDWKORFDWHGZLWKLQWKH$WFKLVRQ7RSHNDDQG6DQWD)H5DLOURDGULJKWRIZD\LPPHGLDWHO\ DGMDFHQWWRWKH$3(
%URZQ


1RFXOWXUDOUHVRXUFHVZHUHLGHQWLILHGGXULQJWKLVVXUYH\ &+5,66&&,& UHFRUGVLQGLFDWHGWKDWQR UHFRUGHGFXOWXUDO UHVRXUFHVRUKLVWRULFSURSHUWLHVKDYH EHHQUHFRUGHGZLWKLQWKH$3(:KLOHQRVLWHVKDYHEHHQUHFRUGHGZLWKLQWKH3URMHFWDUHDWKUHH SUHKLVWRULF VKHOOPLGGHQ VLWHV
&$25$  DQG 
 DQG RQHLVRODWHG SLHFH RI EDVDOW
IODNHGVWRQH

KDYHEHHQUHFRUGHGZLWKLQWKH3URMHFWDUHDYLFLQLW\
 
126
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH

127
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH6XPPDU\RI5HFRUGHG$UFKDHRORJLFDO5HVRXUFHVZLWKLQ3URMHFW9LFLQLW\ 5HVRXUFH 'HVFULSWLRQ /RFDWLRQ
PL


(YDOXDWHG
IRU15" 5HIHUHQFH
&$25$ 6KHOOPLGGHQ 6( 1R 6PHWKH

&$25$ 6KHOOPLGGHQ
YLOODJHVLWH
PDQRVERZOV
6( 1R :DOGHFN

&$25$ 6KHOOPLGGHQ
KDPPHUVWRQH
PDQRV
6( 1R :DOGHFN

 %DVDOW
GHQWLFXODU
IODNH
1: 1$ 0D[RQ


*Distance from San Clemente Municipal Pier
,QDGGLWLRQWKH1DWLRQDO5HJLVWHUOLVWVWZRSURSHUWLHVORFDWHGLQWKH3URMHFWDUHDYLFLQLW\ &DVD
5RPDQWLFDDQG6DQ&OHPHQWH%HDFK&OXE7KHVHKLVWRULFSURSHUWLHVDUHGHVFULEHGLQ7DEOH EHORZ
7DEOH6XPPDU\RI1DWLRQDO5HJLVWHU3URSHUWLHVZLWKLQ3URMHFW9LFLQLW\ 5HVRXUFH $GGUHVV /RFDWLRQ
PL


'DWHOLVWHG
RQ15
&DVD5RPDQWLFD $YHQLGD
*UDQDGD
1 


6DQ&OHPHQWH
%HDFK&OXE
$YHQLGD%RFD
'H/D3OD\D

1 


*Distance from San Clemente Municipal Pier
2QH ORFDOO\ VLJQLILFDQW KLVWRULF UHVRXUFH LV ORFDWHG ZLWKLQ WKH 3URMHFW DUHD  WKH 6DQ &OHPHQWH
0XQLFLSDO3LHU
)LJXUH
7KH&LW\¶VRULJLQDOSLHUZDVGHVLJQHGE\HQJLQHHU:LOOLDP$\HU DQGFRQVWUXFWHGE\WKH&LW\RI6DQ&OHPHQWHLQ

+5*
7KLVSLHUZDVGHPROLVKHGE\
VWRUPV LQ 

  :LOOLDP $\HU GHVLJQHG D QHZ SLHU ZKLFK ZDV EXLOW LQ  
 WKLV SLHU ZDV
VHYHUHO\GDPDJHGE\VWRUPVLQ
$VDUHVXOWWKHSLHUZDVVXEVWDQWLDOO\UHFRQVWUXFWHGDIWHU WKLVVWRUPHYHQW7KHUHIRUHWKHH[WDQWSLHUVWUXFWXUHGRHVQRWUHWDLQPXFKRULJLQDOFRQVWUXFWLRQ PDWHULDOEXWLWGRHVUHWDLQWKHVDPHIRUPDQGDSSHDUDQFHRIWKHRULJLQDO SLHU,QWKH
&LW\ RI 6DQ &OHPHQWH FRPPLVVLRQHG D KLVWRULF UHVRXUFHV VXUYH\ XSGDWH LQ RUGHU WR XSGDWH LWV +LVWRULF 6WUXFWXUHV OLVW
+5* 
  $W WKLV WLPH WKH 6DQ &OHPHQWH 0XQLFLSDO 3LHU ZDV IRUPDOO\ UHFRUGHG DQG HYDOXDWHG E\ +LVWRULF 5HVRXUFHV *URXS ,QF +5* 
  +5*
GHWHUPLQHGWKDWWKH3LHUZDVHOLJLEOHDWWKHORFDOOHYHOXQGHUFULWHULRQ$DQGLWLVOLVWHGRQWKH &LW\¶V+LVWRULF6WUXFWXUHV/LVW7KH86$&(KDVGHWHUPLQHGWKDW3LHULVQRWHOLJLEOHIRUOLVWLQJLQ WKH&DOLIRUQLD5HJLVWHURU1DWLRQDO5HJLVWHU
128
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH2YHUYLHZRI6DQ&OHPHQWH0XQLFLSDO3LHU
ORRNLQJZHVW

,Q RUGHU WR DVVHVV WKH FXOWXUDO VHQVLWLYLW\ RI WKH RIIVKRUH SRUWLRQV RI WKH $3( LH 2IIVKRUH
%RUURZ$UHDVDQG
WKH86$&(
$P\0+ROPHV
FRQWDFWHGQDXWLFDODUFKHRORJLVW+HDWKHU
0DF)DUODQHRI0DF)DUODQH$UFKDHRORJLFDO&RQVXOWDQWVLQ9HQWXUD&DOLIRUQLD0V0DF)DUODQH FRQVXOWHGKHUSHUVRQDOGDWDEDVHRI VXEPHUJHG UHVRXUFHLQIRUPDWLRQ IRUWKH VRXWKHUQ&DOLIRUQLD FRDVWDQGFRQVXOWHGZLWK0U-HII&DURWKHUVRI)8*52:HVWDJHRVFLHQFHVDQGPDULQHVXUYH\ ILUP$UHDVDQGKDYHQRWEHHQVXUYH\HGIRUVXEPHUJHGFXOWXUDOUHVRXUFHV,Q)8*52 :HVWSHUIRUPHGDERUURZVLWHVXUYH\IRUWKH86$&(EHWZHHQWKHVKRUHDQGWKHHDVWHUQHGJHRI $UHD
WKLVVXUYH\GLGQRWFRYHU$UHD
$UHDKDVORZVHQVLWLYLW\IRUVXEPHUJHGUHVRXUFHVDVQRNQRZQKLVWRULFVKLSZUHFNVDUHZLWKLQ WKH ERXQGDULHV RI$UHD $UHD LVPRGHUDWHO\ VHQVLWLYH IRU VXEPHUJHGFXOWXUDO UHVRXUFHVDV WKHUH LV D FOXVWHU RI VHYHQ KLVWRULF VKLSZUHFNV ZLWKLQ $UHD  RU LWV YLFLQLW\ 3HUVRQDO
&RPPXQLFDWLRQ+HDWKHU0DF)DUODQH-DQXDU\

 3HGHVWULDQ6XUYH\5HVXOWV
2Q -DQXDU\   WKH 86$&(
$P\ 0 +ROPHV
 FRQGXFWHG D SHGHVWULDQ VXUYH\ RI WKH
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
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 1DWLYH$PHULFDQ&RQVXOWDWLRQ
2Q -DQXDU\   WKH 86$&( FRQWDFWHG WKH &DOLIRUQLD 1DWLYH $PHULFDQ +HULWDJH &RPPLVVLRQ
1$+&
UHTXHVWLQJWKDWWKH\SHUIRUPDVHDUFKRIWKHLU6DFUHG/DQGV)LOHLQRUGHUWR LGHQWLI\DQ\1DWLYH$PHULFDQFXOWXUDOVLWHVLQVLGHRUZLWKLQWKHYLFLQLW\RIWKH$3(7KH1$+& SURYLGHG D OLVW RI 1DWLYH $PHULFDQ FRQWDFWV WKDW DUH DIILOLDWHG ZLWK WKH 6DQ &OHPHQWH DUHD &RSLHVRIWKHSXEOLFGUDIWRIWKLVGRFXPHQWZHUH VHQWWR UHSUHVHQWDWLYHVRIWKH -XDQHxRSHRSOH QDPHGRQ1$+&¶V1DWLYH$PHULFDQ&RQWDFW/LVWIRUUHYLHZDQGFRPPHQW1RFRPPHQWVZHUH UHFHLYHGGXULQJWKHFRPPHQWSHULRG
 6HFWLRQ&RQVXOWDWLRQDQG&RRUGLQDWLRQ
,QDFFRUGDQFHZLWK&)5WKH86$&( VHQWDQLQLWLDOOHWWHUWKH3XEOLF'UDIW(,6(,5 DQGZLOOVHQGWKH)LQDO(,6(,5WRWKH&DOLIRUQLD6WDWH+LVWRULF3UHVHUYDWLRQ2IILFHU 6+32
DQG
1DWLYH$PHULFDQ7ULEHVLQFOXGLQJWKH-XDQHQR%DQGRI0LVVLRQ,QGLDQVQDPHGE\WKH1$+& DGYLVLQJWKHPRIWKLVSURSRVHG3URMHFWDQGWKH&RUSV¶GHWHUPLQDWLRQV  *URXQGDQG9HVVHO7UDQVSRUWDWLRQ
/RFDO VWUHHWV URDGV DQG UDLOZD\ WUDQVSRUW PHWKRGV ZLOO QRW EH XVHG LQ WKH SURSRVHG 3URMHFW H[FHSWIRUFRQVWUXFWLRQFUHZFRPPXWLQJWRDQGIURPWKH3URMHFWVLWH,QVWHDGRIIVKRUHFROOHFWLRQ ORFDWLRQV RI EHDFK UHSOHQLVKPHQW PDWHULDO ZLOO EH PDGH DYDLODEOH YLD RIIVKRUH JDWKHULQJ RI RFHDQRJUDSKLFGHSRVLWLRQ7KLVZLOOEHDFFRPSOLVKHGXWLOL]LQJFROOHFWLRQEDUJHV  *URXQG7UDQVSRUWDWLRQ
 0DMRU+LJKZD\V
,QWHUVWDWH 
,
 ZKLFKLV D SULPDU\WUDQVSRUWDWLRQOLQN EHWZHHQ /RV $QJHOHV DQG 6DQ 'LHJR FRXQWLHV UXQVLQD QRUWKVRXWK GLUHFWLRQ SDUDOOHOWRWKHFRDVWOLQH UDQJLQJDSSUR[LPDWHO\ WR  PL
 WR  NP
 LQODQG IURP WKH FRDVW  , LV GHVLJQDWHG D IUHHZD\ WKURXJK 6DQ &OHPHQWHDQGFRQVLVWVRIHLJKWWUDYHOODQHV(O&DPLQR5HDO RU86+LJKZD\
UXQVSDUDOOHO
WRWKH3DFLILF2FHDQFRDVWOLQHLQDQRUWKVRXWKRULHQWDWLRQUDQJLQJDSSUR[LPDWHO\IWWR IW

WRP
IURPWKHFRDVW(O&DPLQR5HDOLVDIRXUODQHURDGZD\GHVLJQDWHGDVHFRQGDU\ URDGZD\
7KHSULQFLSDODFFHVVURXWHWRWKH6DQ&OHPHQWH3LHUIURP,LVYLDORFDOVWUHHWVIROORZLQJHLWKHU :HVW$YHQLGD3DOL]DGDRU$YHQLGD3UHVLGLRWR(O&DPLQR5HDOWR$YHQLGD9LFWRULD2WKHUORFDO VWUHHWV WKDW OHDG WR $YHQLGD 9LFWRULD LQFOXGH $YHQLGD 'HO 0DU DQG $YHQLGD 5RVD  3ULQFLSDO DFFHVVWR/LQGD/DQH 3DUN
3DUN

DSSUR[LPDWH QRUWKHUQ ERXQGDU\ RI 3URMHFW VLWH
LV YLD:HVW
$YHQLGD3DOL]DGDRU&DPLQR'HO0DUWR(QFLQR/DQHZLWKSDUNLQJDWWKH3DUN3ULQFLSDODFFHVV WR 76WUHHW EHDFK
DSSUR[LPDWH VRXWKHUQ ERXQGDU\ RI 3URMHFW VLWH
 LV YLD (O &DPLQR 5HDO WR
7UDIDOJDU/DQHWR(VSODQDGHZLWKSDUNLQJRQ:HVW3DVHRGH&ULVWREDO7DEOHSURYLGHVWKH DYHUDJHGDLO\WUDIILFIRUORFDOURDGZD\VOHDGLQJWRWKH3URMHFWVLWH 130
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH$YHUDJH'DLO\7UDIILF
$'7
DORQJ/RFDO5RDGZD\V
$'7
(O&DPLQR5HDO 
 %HWZHHQ$YHQLGD3DOL]DGDDQG$YHQLGD&DEULOOR 

 %HWZHHQ$YHQLGD&DEULOORDQG$YHQLGDGHO0DU   %HWZHHQ$YHQLGDGHO0DUDQG3DVHRGHO&ULVWREDO  $YHQLGD3DOL]DGD 
 %HWZHHQ,DQG$YHQLGDGHOD(VWUHOOD 
 %HWZHHQ$YHQLGDGHOD(VWUHOODDQG(O&DPLQR5HDO 

$YHQLGDGHO0DU%HWZHHQ(O&DPLQR5HDODQG2OD9LVWD  $YHQLGD9LFWRULD%HWZHHQ(O&DPLQR5HDODQG2OD9LVWD  2OD9LVWD%HWZHHQ$YHQLGD3DOL]DGDDQG3DVHRGHO&ULVWREDO  Source: City of San Clemente 2007
 5DLO6\VWHP
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
 9HVVHO7UDQVSRUWDWLRQ
&RPPHUFLDO ERDWV ILVKLQJ ERDWVDQG UHFUHDWLRQDO YHVVHOVFXUUHQWO\WUDYHUVHWKH RYHUDOO3URMHFW DUHDEHWZHHQWKHFRDVWVRI2UDQJHDQG6DQ'LHJRFRXQWLHV0RVWYHVVHOVRSHUDWHRXWRI'DQD 3RLQW+DUERUDSSUR[LPDWHO\PL

NP
XSFRDVWRIWKH3URMHFWVLWHDQG2FHDQVLGH+DUERU
DSSUR[LPDWHO\PL
NP
GRZQFRDVWRIWKH3URMHFWVLWH
 /DQG8VHDQG3ROLF\
 /DQG8VH
7KH &LW\ RI 6DQ &OHPHQWH LQFOXGLQJ WKH XQLQFRUSRUDWHG DUHD LV FRPSULVHG SULPDULO\ RI UHVLGHQWLDO LQGXVWULDO FRPPHUFLDO DJULFXOWXUDO DQG YDFDQW SURSHUWLHV  7KH SURSRVHG VLWH LV DORQJ WKH FRDVW DQG ZLWKLQ WKH ³3LHU %RZO´ GLVWULFW RI 6DQ &OHPHQWH  7KH 3LHU %RZO LV D 131
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


SHGHVWULDQRULHQWHG PL[HGXVH FHQWHU DFFRPPRGDWLQJ XVHV WKDW VXSSRUW FRDVWDO UHFUHDWLRQDO DFWLYLWLHV LQFOXGLQJ UHWDLO UHVWDXUDQW RIILFH FXOWXUDO KRWHOPRWHO EHG DQG EUHDNIDVW HVWDEOLVKPHQWVDQGUHVLGHQWLDO
7KH3DFLILF2FHDQERXQGVWKHVLWHWRWKHZHVW7KHEHDFKDQG3LHUDUHSXEOLFSDUNVDQGSXEOLFO\ RZQHGRSHQVSDFH
26
1RSK\VLFDOIHDWXUHVH[LVWWKDWGLYLGHWKHH[LVWLQJODQGXVHDORQJWKH 6DQ &OHPHQWH EHDFKHV  1RUWK DQG LQODQG RI WKH 3LHU WKH SURSRVHG VLWH LV ERUGHUHG E\ WKH 0HWUROLQN 6WDWLRQ DQG SDUNLQJ ORW FRDVWDO UHODWHG UHWDLO &5&S$
 PL[HGXVH LQFOXGLQJ
RYHUQLJKW DFFRPPRGDWLRQV
08 S$
 PL[HG XVHLQFOXGLQJ QHLJKERUKRRG DQG FRPPXQLW\
VHUYLQJFRPPHUFLDO
08S$
DQGSXEOLFDUHDV6RXWKDQGLQODQGRIWKH3LHUWKHSURSRVHG VLWH LV ERUGHUHG E\ SXEOLF DUHDV PL[HG XVH LQFOXGLQJ QHLJKERUKRRG DQG FRPPXQLW\ VHUYLQJ FRPPHUFLDO
08S$
DQGFRDVWDOUHODWHGUHWDLO
&5&S$

 3ROLF\
7KLV VHFWLRQ LGHQWLILHV WKH ORFDO ODQG XVH SROLFLHV LQ SDUWLFXODU WKH SROLFLHV RI WKH &DOLIRUQLD &RDVWDO $FW
&&$
 DORQJ ZLWKWKH DGRSWHG HQYLURQPHQWDO SODQV DQG JRDOV RIWKH&LW\ RI 6DQ &OHPHQWHLQDFFRUGDQFHZLWK&(4$*XLGHOLQHV
E


 &DOLIRUQLD&RDVWDO$FW
&&$3ROLF\
6FHQLFDQGYLVXDOTXDOLWLHV
7KHVFHQLFDQGYLVXDOTXDOLWLHVRIFRDVWDODUHDVVKDOOEHFRQVLGHUHGDQGSURWHFWHGDVDUHVRXUFHRI SXEOLFLPSRUWDQFH3HUPLWWHGGHYHORSPHQW VKDOOEH VLWHGDQGGHVLJQHGWRSURWHFWYLHZVWRDQG DORQJWKHRFHDQDQGVFHQLFFRDVWDODUHDVWRPLQLPL]HWKHDOWHUDWLRQRIQDWXUDOODQGIRUPVWREH YLVXDOO\FRPSDWLEOHZLWKWKHFKDUDFWHURIVXUURXQGLQJDUHDVDQGZKHUHIHDVLEOHWRUHVWRUHDQG HQKDQFHYLVXDOTXDOLW\LQYLVXDOO\GHJUDGHGDUHDV
&&$6HFWLRQ
0DULQHUHVRXUFHV
PDLQWHQDQFH
0DULQH UHVRXUFHV VKDOO EH PDLQWDLQHG HQKDQFHG DQG ZKHUH IHDVLEOH UHVWRUHG  6SHFLDO SURWHFWLRQVKDOOEHJLYHQWRDUHDVDQGVSHFLHVRIVSHFLDOELRORJLFDORUHFRQRPLFVLJQLILFDQFH 8VHV RI WKH PDULQH HQYLURQPHQW VKDOO EH FDUULHG RXW LQ D PDQQHU WKDW ZLOO VXVWDLQ WKH ELRORJLFDO SURGXFWLYLW\ RI FRDVWDO ZDWHUV DQG WKDW ZLOO PDLQWDLQ KHDOWK\ SRSXODWLRQV RI DOO VSHFLHVRIPDULQHRUJDQLVPVDGHTXDWHIRUORQJWHUPFRPPHUFLDOUHFUHDWLRQDOVFLHQWLILFDQG HGXFDWLRQDOSXUSRVHV
&&$6HFWLRQ%LRORJLFDOSURGXFWLYLW\
ZDWHUTXDOLW\
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
132
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

&&$6HFWLRQ
(QYLURQPHQWDOO\VHQVLWLYHKDELWDWDUHDV
DGMDFHQWGHYHORSPHQWV

D
(QYLURQPHQWDOO\ VHQVLWLYHKDELWDWDUHDV VKDOOEHSURWHFWHGDJDLQVWDQ\ VLJQLILFDQWGLVUXSWLRQ RIKDELWDWYDOXHVDQGRQO\XVHVGHSHQGHQWRQWKRVH UHVRXUFHVVKDOOEHDOORZHGZLWKLQWKRVH DUHDV

E
'HYHORSPHQW LQ DUHDV DGMDFHQW WR HQYLURQPHQWDOO\ VHQVLWLYH KDELWDW DUHDV DQG SDUNV DQG UHFUHDWLRQ DUHDV VKDOO EH VLWHG DQG GHVLJQHG WR SUHYHQW LPSDFWV ZKLFK ZRXOG VLJQLILFDQWO\ GHJUDGH WKRVH DUHDV DQG VKDOO EH FRPSDWLEOH ZLWK WKH FRQWLQXDQFH RI WKRVH KDELWDW DQG UHFUHDWLRQDUHDV&RDVWDO3ODQ3ROLF\


3ULRUWRWKHLVVXDQFH RID GHYHORSPHQW SHUPLWDOO SURMHFWV RQSDUFHOV VKRZQ RQ WKHODQGXVHSODQDQGRUUHVRXUFHPDSVZLWKD+DELWDW$UHDRYHUOD\GHVLJQDWLRQRU ZLWKLQ  IW RI VXFK GHVLJQDWLRQ RU SURMHFWV DIIHFWLQJ DQ HQYLURQPHQWDOO\ VHQVLWLYH KDELWDW DUHD >(6+$@ VKDOO EH IRXQG WR EH LQ FRQIRUPLW\ ZLWK WKH DSSOLFDEOHKDELWDWSURWHFWLRQSROLFLHVRIWKHODQGXVHSODQ$OOGHYHORSPHQWSODQV JUDGLQJ SODQV HWF VKDOO VKRZ WKH SUHFLVH ORFDWLRQ RI WKH KDELWDW V
 SRWHQWLDOO\
DIIHFWHG E\ WKH SURSRVHG SURMHFW  3URMHFWV ZKLFK FRXOG DGYHUVHO\ LPSDFW DQ HQYLURQPHQWDOO\VHQVLWLYHKDELWDWPD\EHVXEMHFWWRDVLWHLQVSHFWLRQE\DTXDOLILHG ELRORJLVWWREHVHOHFWHGMRLQWO\E\WKH&RXQW\DQGWKHDSSOLFDQW &&$6HFWLRQ
&RQVWUXFWLRQDOWHULQJQDWXUDOVKRUHOLQH
5HYHWPHQWVEUHDNZDWHUVJURLQVKDUERUFKDQQHOVVHDZDOOVFOLIIUHWDLQLQJZDOOVDQGRWKHUVXFK FRQVWUXFWLRQ WKDW DOWHUV QDWXUDO VKRUHOLQH SURFHVVHV VKDOO EH SHUPLWWHG ZKHQ UHTXLUHG WR VHUYH FRDVWDOGHSHQGHQWXVHVRUWRSURWHFWH[LVWLQJVWUXFWXUHVRUSXEOLFEHDFKHVLQGDQJHUIURPHURVLRQ DQG ZKHQ GHVLJQHG WR HOLPLQDWH RU PLWLJDWH DGYHUVH LPSDFWV RQ ORFDO VKRUHOLQH VDQG VXSSO\ ([LVWLQJPDULQHVWUXFWXUHVFDXVLQJZDWHUVWDJQDWLRQFRQWULEXWLQJWRSROOXWLRQSUREOHPVDQG ILVK NLOOVVKRXOGEHSKDVHGRXWRUXSJUDGHGZKHUHIHDVLEOH &&$6HFWLRQ
&RDVWDOGHYHORSPHQWSHUPLWIRUVDQGUHSOHQLVKPHQWUHTXLUHPHQWV

D
$ FRDVWDO GHYHORSPHQW SHUPLW IRU VDQG UHSOHQLVKPHQW UHTXLUHV WKH SURMHFW DSSOLFDQW WR SURYLGHRQVLWHPRQLWRULQJDQGVXSHUYLVLRQGXULQJWKHLPSOHPHQWDWLRQRIWKHSHUPLW $ SHUPLW VXEMHFW WR VXEGLYLVLRQ D
 PD\ QRW EH LVVXHG XQWLO WKH SURMHFW DSSOLFDQW SURYLGHV WKH LVVXLQJ DJHQF\ D SODQ IRU RQVLWHPRQLWRULQJ DQG VXSHUYLVLRQ GXULQJWKHLPSOHPHQWDWLRQ RIWKH SHUPLW
&&$ 6HFWLRQ 
  :KHUH GHYHORSPHQW ZRXOG DGYHUVHO\ LPSDFW DUFKDHRORJLFDO RU SDOHRQWRORJLFDO UHVRXUFHV DV LGHQWLILHG E\ WKH 6WDWH +LVWRULF 3UHVHUYDWLRQ 2IILFHU UHDVRQDEOH PLWLJDWLRQPHDVXUHVVKDOOEHUHTXLUHG
&&$6HFWLRQ
'HYHORSPHQWQRWWRLQWHUIHUHZLWKDFFHVV
,Q FDUU\LQJ RXW WKH UHTXLUHPHQW RI 6HFWLRQ  RI $UWLFOH ; RI WKH &DOLIRUQLD &RQVWLWXWLRQ PD[LPXP DFFHVVZKLFK VKDOO EH FRQVSLFXRXVO\ SRVWHG DQG UHFUHDWLRQDO RSSRUWXQLWLHV VKDOO EH SURYLGHGIRUWKHSHRSOHFRQVLVWHQWZLWKSXEOLFVDIHW\QHHGVDQGWKHQHHGWRSURWHFWSXEOLFULJKWV ULJKWVRISURSHUW\RZQHUVDQGQDWXUDOUHVRXUFHDUHDVIURPRYHUXVH 133
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

&&$6HFWLRQ
,PSOHPHQWDWLRQRISXEOLFDFFHVVSROLFLHV
OHJLVODWLYHLQWHQW
7KHSXEOLFDFFHVVSROLFLHVRIWKLVDUWLFOHVKDOOEHLPSOHPHQWHGLQDPDQQHUWKDWWDNHVLQWRDFFRXQW WKH QHHGWR UHJXODWHWKHWLPH SODFH DQG PDQQHU RI SXEOLF DFFHVV GHSHQGLQJ RQWKH IDFWV DQG FLUFXPVWDQFHVRIHDFKFDVHLQFOXGLQJEXWQRWOLPLWHGWRWKH IROORZLQJ ³«

7KHFDSDFLW\RI
WKHVLWHWRVXVWDLQXVHDQGDWZKDWOHYHORILQWHQVLW\ 
7KHDSSURSULDWHQHVVRIOLPLWLQJSXEOLF
DFFHVVWRWKH ULJKWWR SDVV DQG UHSDVV GHSHQGLQJ RQ VXFK IDFWRUV DVWKH IUDJLOLW\ RIWKH QDWXUDO UHVRXUFHVLQWKHDUHD«´
&&$6HFWLRQ
3URWHFWLRQRIFHUWDLQZDWHURULHQWHGDFWLYLWLHV
&RDVWDODUHDVVXLWHG IRUZDWHURULHQWHG UHFUHDWLRQDODFWLYLWLHVWKDWFDQQRW UHDGLO\EHSURYLGHGDW LQODQGZDWHUDUHDVVKDOOEHSURWHFWHGIRUVXFKXVHV
&&$6HFWLRQ
2FHDQIURQWODQG
SURWHFWLRQIRUUHFUHDWLRQDOXVHDQGGHYHORSPHQW
2FHDQIURQW ODQG VXLWDEOH IRU UHFUHDWLRQDO XVH VKDOO EH SURWHFWHG IRU UHFUHDWLRQDO XVH DQG GHYHORSPHQWXQOHVVSUHVHQWDQGIRUHVHHDEOHIXWXUHGHPDQGIRUSXEOLFRUFRPPHUFLDOUHFUHDWLRQDO DFWLYLWLHVWKDWFRXOGEHDFFRPPRGDWHGRQWKHSURSHUW\LVDOUHDG\DGHTXDWHO\SURYLGHGIRULQWKH DUHD
&&$ 6HFWLRQ 
  'LNLQJ ILOOLQJ RU GUHGJLQJ
 FRQWLQXHG PRYHPHQW RI VHGLPHQWV DQG
QXWULHQWV

D
7KHGLNLQJILOOLQJRUGUHGJLQJRIRSHQFRDVWDOZDWHUVZHWODQGVHVWXDULHVDQGODNHVVKDOOEH SHUPLWWHGLQDFFRUGDQFHZLWKRWKHUDSSOLFDEOHSURYLVLRQVRIWKLVGLYLVLRQZKHUHWKHUHLVQR IHDVLEOHOHVVHQYLURQPHQWDOO\GDPDJLQJDOWHUQDWLYHDQGZKHUHIHDVLEOHPLWLJDWLRQPHDVXUHV KDYH EHHQ SURYLGHGWRPLQLPL]H DGYHUVH HQYLURQPHQWDO HIIHFWV DQG VKDOO EHOLPLWHGWRWKH IROORZLQJ«


LQFLGHQWDOSXEOLFVHUYLFHV
HJEXU\LQJFDEOHVDQGSLSHV




PLQHUDO H[WUDFWLRQLQFOXGLQJ VDQG IRU UHVWRULQJ EHDFKHV H[FHSWLQ HQYLURQPHQWDOO\ VHQVLWLYHDUHDV



UHVWRUDWLRQSXUSRVHV


E
'UHGJLQJDQGVSRLOVGLVSRVDOVKDOOEHSODQQHGDQGFDUULHGRXWWRDYRLGVLJQLILFDQWGLVUXSWLRQ WR PDULQH DQG ZLOGOLIH KDELWDWV DQG ZDWHU FLUFXODWLRQ  'UHGJH VSRLOV VXLWDEOH IRU EHDFK UHSOHQLVKPHQWVKRXOGEHWUDQVSRUWHGIRUVXFKSXUSRVHVWRDSSURSULDWHEHDFKHVRULQWRVXLWDEOH ORQJVKRUHFXUUHQWV\VWHPV
 &RDVWDO(OHPHQWRI6DQ&OHPHQWH*HQHUDO3ODQ
9
'HVLJQDWHODQGVIRUWKHSURYLVLRQRIUHFUHDWLRQDORSHQVSDFHVRQWKH&RDVWDO/DQG8VH 3ODQ 0DS ZKLFK DUH VXIILFLHQW WR PHHW WKH QHHGV RI H[LVWLQJ DQG IXWXUH UHVLGHQWV *3 3ROLF\



9'HVLJQDWHODQGVIRUWKHSURYLVLRQRISDVVLYHDQGYLVXDORSHQVSDFHRQWKH&RDVWDO/DQG 8VH3ODQ0DSZKLFKSURYLGHDEDODQFHWRWKHXUEDQDQGVXEXUEDQGHYHORSPHQWRIWKH&LW\ *3
3ROLF\


134
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

9
  'HVLJQDWH ODQGV IRU WKH SURWHFWLRQ RI VLJQLILFDQW HQYLURQPHQWDO UHVRXUFHV DQG SURWHFWLRQRIOLIHDQGSURSHUW\ IURPHQYLURQPHQWDOKD]DUGVRQWKH&RDVWDO/DQG8VH3ODQ0DS

*33ROLF\


9
  3URYLGH IRU WKH GHYHORSPHQW RI DGGLWLRQDO RSHQ VSDFHV IRU UHFUHDWLRQDO SXUSRVHV LQ DFFRUGDQFHZLWKWKH3DUNVDQG5HFUHDWLRQ(OHPHQWDQG0DVWHU3ODQRI3DUNVDQG5HFUHDWLRQ *3
3ROLF\


9,,
7KHVFHQLFDQGYLVXDOTXDOLWLHVRIFRDVWDODUHDVVKDOOEHFRQVLGHUHGDQGSURWHFWHGDVD UHVRXUFHRISXEOLFLPSRUWDQFH3HUPLWWHGGHYHORSPHQWVKDOOEHVLWHGDQGGHVLJQHG 
D 7RSURWHFWSXEOLFYLHZVWRDQGDORQJWKHRFHDQDQGVFHQLFFRDVWDODUHD E 7RPLQLPL]HWKHDOWHUDWLRQRIFRDVWDOEOXIIVDQGFDQ\RQV F :KHUHIHDVLEOHWRUHVWRUHDQGHQKDQFHYLVXDOTXDOLW\LQYLVXDOO\GHJUDGHGDUHDV 35&


G 5HTXLUH WKDW SURMHFWV EH GHVLJQHG DQG GHYHORSHG WR DFKLHYH D KLJK OHYHO RI TXDOLW\ GLVWLQFWLYHFKDUDFWHUDQGFRPSDWLELOLW\ZLWKH[LVWLQJXVHVDQGGHYHORSPHQWLQDFFRUGDQFH ZLWKWKLV(OHPHQWDQGWKH8UEDQ'HVLJQ(OHPHQW
*33ROLF\

9,,
  :KHUH GHYHORSPHQW ZRXOG DGYHUVHO\ LPSDFW DUFKDHRORJLFDO RU SDOHRQWRORJLFDO UHVRXUFHV DV LGHQWLILHG E\ WKH 6WDWH +LVWRULF 3UHVHUYDWLRQ 2IILFHU UHDVRQDEOH PLWLJDWLRQ PHDVXUHVVKDOOEHUHTXLUHG
35&

9,
  5HTXLUH D %LRORJLFDO $VVHVVPHQW 5HSRUW IRU DQ\ GHYHORSPHQW ORFDWHG DORQJ D FRDVWDOFDQ\RQRUEOXIIZKHQWKHGHYHORSPHQWUHVXOWVLQWKHUHPRYDORIDQ\QDWLYHYHJHWDWLRQDQG ZKHQDQ,QLWLDO6WXG\KDVGHWHUPLQHGWKDWWKHUHLVDSRWHQWLDOIRUDVLJQLILFDQWDGYHUVHLPSDFWWR ELRORJLFDOUHVRXUFHV7KH%LRORJLFDO$VVHVVPHQW5HSRUWVKDOO 
D %H SUHSDUHG E\D TXDOLILHG SURIHVVLRQDODQGDGGUHVVHVWKH SURSRVHG SURMHFW VLPSDFW RQ
6WDWH DQG )HGHUDOO\ OLVWHG DQG FDQGLGDWH SODQWV DQG DQLPDOV  &DOLIRUQLD 'HSDUWPHQW RI
)LVKDQG*DPH
&')*
6SHFLDO$QLPDOV
QDWXUDOFRPPXQLWLHVRIKLJKLQYHQWRU\SULRULW\
ZLWKWKH&')*
V1RQJDPH+HULWDJH 3URJUDP DQG DQ\ RWKHU VSHFLDOLQWHUHVW VSHFLHV RU FRPPXQLWLHV LGHQWLILHG LQ WKH *HQHUDO 3ODQ 7HFKQLFDO %DFNJURXQG 5HSRUW RU WKRVH KHUHDIWHUQDPHGE\6WDWHRU)HGHUDOWUXVWHHDJHQFLHV

E ,GHQWLI\ PLWLJDWLRQ PHDVXUHV QHFHVVDU\ WR HOLPLQDWH VLJQLILFDQW DGYHUVH LPSDFWV WR VHQVLWLYHELRORJLFDOUHVRXUFHV
DQG
F 'HILQH D SURJUDP IRU PRQLWRULQJ DQG HYDOXDWLQJ WKH HIIHFWLYHQHVV RI WKH VSHFLILHG PLWLJDWLRQPHDVXUHV
*33ROLF\

,;
,PSURYHPHQWVWREHDFKIDFLOLWLHVDQGEHDFKDFFHVVSRLQWVZKLFKDUHDGPLQLVWHUHGE\ WKH &LW\ RI 6DQ &OHPHQWH VKDOO VSHFLILFDOO\ EH LQWHQGHG WR SURYLGH IRU WKH PDLQWHQDQFH DQG HQKDQFHPHQWRIPD[LPXPSXEOLFXVHRIWKHEHDFKDQGRFHDQ 135
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,;
  7KH PDLQWHQDQFH DQG HQKDQFHPHQW RI SXEOLF QRQYHKLFXODU DFFHVV WR WKH VKRUHOLQH VKDOOEHRISULPDU\LPSRUWDQFHZKHQHYDOXDWLQJDQ\IXWXUHSXEOLFRUSULYDWHLPSURYHPHQWVLQWKH &RDVWDO=RQH
,;
7KH&LW\
VILYHSULPDU\EHDFKDFFHVVSRLQWVDUH

‡6DQ&OHPHQWH%HDFK&OXE
‡/LQGD/DQH
‡0XQLFLSDO3LHU
‡76WUHHW
‡$YHQLGD&DODILD
6DQ&OHPHQWH6WDWH%HDFK

,;
  'HYHORS D FRPSUHKHQVLYH QHWZRUN RI LPSURYHG EHDFK DFFHVV IDFLOLWLHV DW DOO GHVLJQDWHG SULPDU\ EHDFK DFFHVV SRLQWV ZKLFK ZLOO XOWLPDWHO\ SURYLGH VDIH DFFHVV WR DOO &LW\ RZQHGEHDFKHV
*33ROLF\

,;
7KH&LW\RI6DQ&OHPHQWHVKDOOSURPRWHQRWRQO\LQFUHDVHGDFFHVVWRWKHVKRUHOLQH EXWLQFUHDVHG VDIHW\ RI DFFHVV ,PSURYHG DFFHVV IRUWKH KDQGLFDSSHG VKDOO EH SURYLGHG DWOHDVW RQHRIWKHSULPDU\DFFHVVSRLQWVDGPLQLVWHUHGE\WKH&LW\ ,;
3XEOLFDFFHVV IURPWKHQHDUHVWSXEOLF URDGZD\WRWKHVKRUHOLQHDQGDORQJWKHFRDVW VKDOOEHSURYLGHGLQQHZGHYHORSPHQWSURMHFWVH[FHSWZKHUH 
D ,WLVLQFRQVLVWHQW ZLWK SXEOLF VDIHW\PLOLWDU\ VHFXULW\ QHHGV RUWKH SURWHFWLRQ RI IUDJLOH FRDVWDOUHVRXUFHV

E $GHTXDWHDFFHVVH[LVWVQHDUE\
RU
F $JULFXOWXUHZRXOGEHDGYHUVHO\DIIHFWHG
,;
)RUSXUSRVHVRIWKLVVHFWLRQQHZGHYHORSPHQWGRHVQRWLQFOXGH G$Q\UHSDLURU
PDLQWHQDQFH DFWLYLW\ IRU ZKLFK WKH &RDVWDO &RPPLVVLRQ KDV GHWHUPLQHG SXUVXDQW WR 6HFWLRQ WKDWDFRDVWDOGHYHORSPHQWSHUPLWZLOOEHUHTXLUHGXQOHVVWKH&RPPLVVLRQGHWHUPLQHVWKDW VXFKDFWLYLW\ZLOOKDYHDQDGYHUVHLPSDFWRQODWHUDOSXEOLFDFFHVVDORQJWKHEHDFK ;,
&RDVWDODUHDVVXLWHGIRUZDWHURULHQWHGUHFUHDWLRQDODFWLYLWLHVLQFOXGLQJVXUILQJERG\ ERDUGLQJERG\VXUILQJDQGRWKHUDFWLYLWLHVWKDWFDQQRWUHDGLO\EHSURYLGHGDWLQODQGZDWHUDUHDV VKDOOEHSURWHFWHGIRUVXFKXVHV
35&

;,
'HVLJQDWHODQGVIRUWKHSURYLVLRQRIUHFUHDWLRQDORSHQVSDFHVRQWKH&RDVWDO/DQG8VH 3ODQ 0DS ZKLFK DUH VXIILFLHQW WR PHHW WKH QHHGV RI H[LVWLQJ DQG IXWXUH UHVLGHQWV *3 3ROLF\



;,
  3URWHFW WKH &LW\
V UHFUHDWLRQDO UHVRXUFHV LQFOXGLQJ WKH UHFUHDWLRQDO IDFLOLWLHV SDUNV VXUILQJDUHDVDQGFRPPXQLW\HYHQWVLGHQWLILHGLQVHFWLRQRIWKLVSODQ ;,
  3URYLGH IRU WKH DFTXLVLWLRQ DQG GHYHORSPHQW RI SDUNV DQG UHFUHDWLRQDO ODQGV DQG IDFLOLWLHVLQDFFRUGDQFHZLWKWKH*URZWK0DQDJHPHQW(OHPHQW ,,,DQG,

136
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

;,
  ([SDQG DQG FRQWLQXH H[LVWLQJ SXEOLF DQG SULYDWH FXOWXUDO DQG ILQH DUW IDFLOLWLHV DQG DFWLYLWLHV
*33ROLF\

;,

 ,QFUHDVHWKHFRPPXQLW\
VLQYROYHPHQWLQWKHXVHRI UHFUHDWLRQDOVSDFHVHQFRXUDJLQJ UHFUHDWLRQDORSSRUWXQLWLHVXQLTXHWR6DQ&OHPHQWHZKLFKZLOOFRQWULEXWHWRFRQWLQXLQJYLVLWDWLRQ DQGHFRQRPLFGHYHORSPHQW
*33ROLF\

;,
 0DLQWDLQ WKH YDOXDEOH EHDFK UHVRXUFHV DV D IXQGDPHQWDO HOHPHQW WR FRQVHUYH DQG GHYHORS VHQVLWLYHO\WKXVHQKDQFLQJWKHTXDOLW\DQGOLYDELOLW\RIWKH&LW\RI6DQ&OHPHQWH *3
3ROLF\

;,
/RFDWHDQGHQKDQFHWKHEHDFKDUHDVWKDWZLOODFFHSWOLPLWHGUHFUHDWLRQDOGHYHORSPHQW ZLWKRXWGHVWUR\LQJH[LVWLQJQDWXUDOEHDXW\
*33ROLF\

;,
(PSKDVL]HWKHSURWHFWLRQHQKDQFHPHQWDQGVHQVLWLYHGHYHORSPHQWRISDUNDQGRSHQ VSDFHDUHDVZKLFKSRVVHVVJUHDWVFHQLFHQYLURQPHQWDOKLVWRULFDQGFXOWXUDOYDOXHV ;,,
  3UHVHUYH WKH DHVWKHWLF UHVRXUFHV RI WKH &LW\ LQFOXGLQJ FRDVWDO EOXIIV YLVXDOO\ VLJQLILFDQWULGJHOLQHVDQGFRDVWDOFDQ\RQVDQGVLJQLILFDQWSXEOLFYLHZV *33ROLF\

;,,
  :RUN LQ FRQMXQFWLRQ ZLWK WKH &DOLIRUQLD &RDVWDO &RPPLVVLRQ ZLWK WKH H[SUHVVHG LQWHQWWRGHYHORSLPSOHPHQWDWLRQSURJUDPVWKDWZLOOSUHVHUYHDQGPDLQWDLQWKHSK\VLFDOIHDWXUHV RIWKH&RDVWDO=RQHLQFOXGLQJEOXIIVFDQ\RQVDQGEHDFKHV *33ROLF\

;,

3URPRWHWKHSUHVHUYDWLRQRIVLJQLILFDQWSXEOLFYLHZFRUULGRUVWRWKHRFHDQ *33ROLF\


;,9O
  0DULQH UHVRXUFHV VKDOO EH PDLQWDLQHG HQKDQFHG DQG ZKHUH IHDVLEOH UHVWRUHG 6SHFLDO SURWHFWLRQ VKDOO EH JLYHQ WR DUHDV DQG VSHFLHV RI VSHFLDO ELRORJLFDO RU HFRQRPLF VLJQLILFDQFH8VHVRIWKHPDULQHHQYLURQPHQWVKDOOEHFDUULHGRXWLQDPDQQHUWKDWZLOOVXVWDLQ WKH ELRORJLFDO SURGXFWLYLW\ RI FRDVWDO ZDWHUV DQG WKDW ZLOO PDLQWDLQ KHDOWK\ SRSXODWLRQV RI DOO VSHFLHV RI PDULQH RUJDQLVPV DGHTXDWH IRU ORQJWHUP FRPPHUFLDO UHFUHDWLRQDO VFLHQWLILF DQG HGXFDWLRQDOSXUSRVHV
35&30230).
;,9
  7KH ELRORJLFDO SURGXFWLYLW\ DQG WKH TXDOLW\ RI FRDVWDO ZDWHUV«DSSURSULDWH WR PDLQWDLQRSWLPXPSRSXODWLRQVRIPDULQHRUJDQLVPVDQGIRUWKHSURWHFWLRQRIKXPDQKHDOWKVKDOO EH PDLQWDLQHG DQG ZKHUH IHDVLEOH UHVWRUHGWKURXJK DPRQJ RWKHU PHDQV PLQLPL]LQJ DGYHUVH HIIHFWV RI ZDVWHZDWHU GLVFKDUJHV DQG HQWUDLQPHQW FRQWUROOLQJ UXQRII SUHYHQWLQJ  GHSOHWLRQ RI
JURXQG ZDWHU VXSSOLHV DQG VXEVWDQWLDO LQWHUIHUHQFH ZLWK VXUIDFH ZDWHUIORZ DQG HQFRXUDJLQJ ZDVWHZDWHUUHFODPDWLRQ
35&3023 

;,9
7KHGLNLQJILOOLQJRUGUHGJLQJRIRSHQFRDVWDOZDWHUVZHWODQGVHVWXDULHVDQGODNHV VKDOOEHSHUPLWWHGLQDFFRUGDQFHZLWKRWKHUDSSOLFDEOHSURYLVLRQVRIWKH&DOLIRUQLD&RDVWDO$FW DQGWKH&LW\ RI6DQ&OHPHQWH&RDVWDO(OHPHQWZKHUH IHDVLEOHPLWLJDWLRQPHDVXUHV KDYH EHHQ SURYLGHGWRPLQLPL]HDGYHUVHHQYLURQPHQWDOHIIHFWVDQGVKDOOEHOLPLWHGWRWKHIROORZLQJ 
137
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

x ,Q RSHQ FRDVWDO ZDWHUV IRU QHZ RU H[SDQGHG ERDWLQJ IDFLOLWLHV DQGRU SODFHPHQW RI VWUXFWXUDO SLOLQJV IRU SXEOLF UHFUHDWLRQDO SLHUV WKDW SURYLGH SXEOLF DFFHVV DQG SXEOLF UHFUHDWLRQDORSSRUWXQLWLHV
x ,QFLGHQWDO SXEOLF VHUYLFH SXUSRVHVLQFOXGLQJ EXW QRWOLPLWHGWR EXU\LQJ FDEOHV DQG SLSHVRULQVSHFWLRQRISLHUVDQGPDLQWHQDQFHRIH[LVWLQJLQWDNHDQGRXWIDOOOLQHV x 0LQHUDO H[WUDFWLRQ RQ &LW\ EHDFKHV VKDOO EH SURKLELWHG H[FHSW IRU VDQG XVHG IRU UHVWRUDWLYHSXUSRVHV
x 5HVWRUDWLRQSXUSRVHV
x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

;,9
3URYLGHDFOHDQDQGHQMR\DEOHPDULQHHQYLURQPHQWWKDWVXIILFLHQWO\PHHWVWKHQHHGV RIEHDFKXVHUV
*33ROLF\

;,9
0DLQWDLQDQGHQKDQFHWKH&LW\
VEHDFKHVDQGPDULQHUHVRXUFHV
*33ROLF\

;,9
3URYLGHDGHTXDWHPDULQHVDIHW\DQGPHGLFDODLGVHUYLFHV *33ROLF\

;,9
&RQWLQXHPRQLWRULQJVDQGPRYHPHQWUHVHDUFKLQJWKHLPSDFWVRIFRDVWDOHURVLRQDQG PHWKRGV RI PLWLJDWLQJ IXUWKHU FRDVWDO GDPDJH WR 6DQ &OHPHQWH V EHDFKHV HQYLURQPHQW
*3
3ROLF\


;,9
0DLQWDLQDKHDOWK\FRDVWOLQHSUHYHQWLQJGHJUDGDWLRQRIWKHFRPPXQLW\ VYLVXDODQG
HQYLURQPHQWDOUHVRXUFHV
*33ROLF\


;,9
&RQWLQXHWRVXSSRUWWKHFUHDWLRQRIDZLOGOLIHVDQFWXDU\IRUYDULRXVKDELWDWVDORQJ WKHFRDVWWRSUHVHUYHDQGSURWHFWWKHQDWXUDOEHDFKHQYLURQPHQW *33ROLF\


;,9
3HUPLWH[WUDFWLRQRIVLJQLILFDQWPLQHUDOUHVRXUFHVVXFKDVERUURZPDWHULDOZKLFK PD\EHXVHGIRUEHDFKUHSOHQLVKPHQWDVDQLQWHULPXVHSULRUWRGHYHORSPHQW *33ROLF\

;,9
'HVSLWHWKHIDFWWKDWPXFKRIWKHUHVSRQVLELOLW\IRUSURWHFWLRQRIZDWHUUHVRXUFHVOLHV ZLWK UHJLRQDO DQG 6WDWH DJHQFLHVWKHUH DUH VHYHUDO PHDVXUHVWKH &LW\ FDQWDNHWR KHOS IXUWKHU SURWHFWFRDVWDOZDWHUV7KHVHLQFOXGHWKHIROORZLQJ

138
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

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
*33ROLF\


;9
  (QYLURQPHQWDOO\ VHQVLWLYH KDELWDW DUHDV VKDOO EH SURWHFWHG DJDLQVW DQ\ VLJQLILFDQW GLVUXSWLRQRIKDELWDWYDOXHVDQGRQO\XVHVGHSHQGHQWRQVXFKUHVRXUFHVVKDOOEHDOORZHGZLWKLQ VXFK DUHDV (QYLURQPHQWDOO\ VHQVLWLYH DUHD PHDQV DQ\ DUHD LQZKLFK SODQW RU DQLPDO OLIH RU WKHLUKDELWDWVDUHHLWKHU UDUHRUHVSHFLDOO\YDOXDEOHEHFDXVHRIWKHLU VSHFLDOQDWXUHRU UROHLQDQ HFRV\VWHP DQG ZKLFK FRXOG EH HDVLO\ GLVWXUEHG RU GHJUDGHG E\ KXPDQ DFWLYLWLHV DQG GHYHORSPHQWV
35&
D


;9
'HYHORSPHQWLQDUHDVDGMDFHQWWRHQYLURQPHQWDOO\VHQVLWLYHKDELWDWDUHDVDQGSDUNV DQG UHFUHDWLRQ DUHDV VKDOO EH VLWHG DQG GHVLJQHGWR SUHYHQWLPSDFWV ZKLFK ZRXOG VLJQLILFDQWO\ GHJUDGH VXFK DUHDV DQG VKDOO EH FRPSDWLEOH ZLWK WKH FRQWLQXDQFH RI VXFK KDELWDW DUHDV 35&

E


;9
  'HVLJQDWH ODQGV IRU WKH SURWHFWLRQ RI VLJQLILFDQW HQYLURQPHQWDO UHVRXUFHV DQG SURWHFWLRQRIOLIHDQGSURSHUW\ IURPHQYLURQPHQWDOKD]DUGVRQWKH&RDVWDO/DQG8VH3ODQ0DS

*33ROLF\


;9
 5HTXLUH WKDW DSSOLFDWLRQV IRU GHYHORSPHQW LQ WKH DUHDV ZKLFK DQ ,QLWLDO 6WXG\ KDV GHWHUPLQHGWKHUHLV SRWHQWLDO IRU VLJQLILFDQW DGYHUVHLPSDFWVWR ELRORJLFDO UHVRXUFHV >WKHUHIRUH UHTXLULQJ DQ (QYLURQPHQWDO ,PSDFW 5HSRUW
(,5
 RU 0LWLJDWHG 1HJDWLYH 'HFODUDWLRQ
01'
@
VKDOOLQFOXGHD%LRORJLFDO$VVHVVPHQW5HSRUWZKLFK

D ,VSUHSDUHGE\DTXDOLILHGSURIHVVLRQDOZKLFKDGGUHVVHVWKHSURSRVHGSURMHFW VLPSDFWRQ
6WDWH DQG )HGHUDOO\ OLVWHG DQG FDQGLGDWH SODQWV DQG DQLPDOV  &DOLIRUQLD 'HSDUWPHQW RI
)LVKDQG*DPH
&')*
6SHFLDO$QLPDOV
QDWXUDOFRPPXQLWLHVRIKLJKLQYHQWRU\SULRULW\
ZLWKWKH&')*
V1RQJDPH+HULWDJH 3URJUDP DQG DQ\ RWKHU VSHFLDOLQWHUHVW VSHFLHV RU FRPPXQLWLHV LGHQWLILHG LQ WKH *HQHUDO 3ODQ 7HFKQLFDO %DFNJURXQG 5HSRUW RU WKRVH KHUHDIWHUQDPHGE\6WDWHRU)HGHUDOWUXVWHHDJHQFLHV

E ,GHQWLILHV PLWLJDWLRQ PHDVXUHV QHFHVVDU\ WR HOLPLQDWH VLJQLILFDQW DGYHUVH LPSDFWV WR VHQVLWLYHELRORJLFDOUHVRXUFHV
DQG
F 'HILQHV D SURJUDP IRU PRQLWRULQJ DQG HYDOXDWLQJ WKH HIIHFWLYHQHVV RI WKH VSHFLILHG PLWLJDWLRQPHDVXUHV
,,DQG,


;9
 5HYLHZ RI DOO SURMHFWV ZLWKLQ WKH &RDVWDO =RQH VKDOO LQFOXGH DQ DVVHVVPHQW RI WKH SRWHQWLDOLPSDFWRQQDWXUDOKDELWDWDUHDV
139
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

;9
7KH&LW\VKDOOSXUVXHJUDQWVDQGRWKHUIXQGLQJVRXUFHVWRSHUIRUPDELRORJLFDOVWXG\ RIWKHGHVLJQDWHGQDWXUDOKDELWDWDUHDVLQWKH&RDVWDO=RQH ;9
 7KH DQDO\VLV DQG HYDOXDWLRQ RI ODUJHVFDOH GHYHORSPHQW SURMHFWV VKDOO LQFOXGH D FRPSUHKHQVLYH LQYHQWRU\ RI ELRORJLF UHVRXUFHV SUHSDUHG E\ D TXDOLILHG ELRORJLVW $ GHWHUPLQDWLRQ VKRXOG EH PDGH RI WKH DUHD
V LPSRUWDQFH DV D QDWLYH KDELWDW LQFOXGLQJ
LGHQWLILFDWLRQRIUDUHDQGHQGDQJHUHGVSHFLHV
;9
  ,GHQWLI\ WKH NH\ EHDFK DUHDV ZKLFK DUH LPSRUWDQW WR SURWHFW WKURXJK ODQG XVH UHJXODWLRQEHFDXVHRIWKHLULQKHUHQWHQYLURQPHQWDOHFRORJLFDODQGRUDHVWKHWLFFRQWULEXWLRQV ;9
0DLQWDLQWKHSUHVHQFHRISDUNODQGVDQGRSHQVSDFHLQWKH&RDVWDO=RQHLQRUGHUWR FRQVHUYHDQGHQKDQFHWKHQDWXUDOHQYLURQPHQWWKHUHE\LPSURYLQJWKHTXDOLW\DQGOLYDELOLW\RIWKH &LW\RI6DQ&OHPHQWH
;9
,GHQWLI\WKRVHPDMRUDUHDVRIWKH&LW\ZKLFKDUHLPSRUWDQWWRSURWHFWWKURXJKODQG XVH UHJXODWLRQ RU SXEOLF RZQHUVKLS EHFDXVH RIWKHLULQKHUHQW HQYLURQPHQWDO HFRORJLFDO DQGRU DHVWKHWLFFRQWULEXWLRQWRWKHVFHQLFDQGQDWXUDOTXDOLWLHVRI6DQ&OHPHQWH ;9
2SHUDWHDQGPDLQWDLQ6DQ&OHPHQWH3DUNDQG5HFUHDWLRQIDFLOLWLHVWKURXJKSURJUDPV WKDWDUH GHVLJQHG IRUWKHPRVWHIIHFWLYH XVHDQGHQKDQFHPHQW RIWKH SDUN VLWHDWWKHPLQLPXP SRVVLEOHFRVW
 6DQ&OHPHQWH*HQHUDO3ODQ
*3 
 'HVLJQDWH ODQGV IRU WKH GHYHORSPHQW RI FRDVWDO UHODWHG FRPPHUFLDO UHFUHDWLRQDO ORGJLQJDQGVXSSRUWLQJXVHVRQWKH/DQG8VH3ODQ0DSDQGHVWDEOLVKVWDQGDUGVWRHQVXUHWKHLU FRPSDWLELOLW\ZLWKDGMDFHQWUHVLGHQWLDOQHLJKERUKRRGVDQGFRPPHUFLDOGLVWULFWV I 1.1, I 1.3, and I

1.5 
*3
$OORZIRUWKHFRQWLQXHGXVHRIWKH&LW\
VSXEOLFEHDFKHVIRUFRDVWDOUHFUHDWLRQDOXVHV
(I 1.1 and I 1.3)
*3 

 'HVLJQDWH ODQGV IRU WKH SURWHFWLRQ RI VLJQLILFDQW HQYLURQPHQWDO UHVRXUFHV DQG SURWHFWLRQRIOLIHDQGSURSHUW\IURPHQYLURQPHQWDOKD]DUGVRQWKH/DQG8VH3ODQ0DS(I 1.1, I

1.3, and I 1.5).
*3

$FFRPPRGDWHDFWLYHSDUNODQGVEHDFKHVRURWKHURSHQVSDFHXVHVLQDUHDVGHVLJQDWHG DV26
HQFRPSDVVHVSXEOLFO\RZQHGSURSHUWLHV
LQDFFRUGDQFHZLWKWKHVWDQGDUGVVWLSXODWHG
LQ7DEOHRIWKH*HQHUDO3ODQ(I 1.1, I 1.2, I 1.3, I 1.5, and I 1.6 ). *3
$FFRPPRGDWHWKHGHYHORSPHQWRISXEOLFUHFUHDWLRQDOXVHV(I 1.1, I 1.5, and I 1.8) *3
0DLQWDLQDFLW\ZLGHOHYHORIVHUYLFH
/26
QRWH[FHHGLQJ/26'IRULQWHUVHFWLRQV
GXULQJ WKH SHDN KRXUV ZLWK WKH H[FHSWLRQ RI WKH LQWHUVHFWLRQ RI WKH , VRXWKERXQG UDPSV DW $YHQLGD 3LFR XQOHVV WKH &LW\ GHWHUPLQHV DQ H[FHSWLRQ LV ZDUUDQWHG RQ DQ LQWHULP EDVLV LQ 140
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

DFFRUGDQFHZLWKWKHDGRSWHGH[FHSWLRQSURFHVVVSHFLILHGLQWKH*URZWK0DQDJHPHQW(OHPHQW

,

*3 
  0DLQWDLQ D FLW\ZLGH OHYHO RI VHUYLFH
/26
 IRU OLQNV QRW WR H[FHHG /26 & IRU
3ULPDU\ DUWHULDOV 6HFRQGDU\ DUWHULDOV DQG /RFDO VWUHHWV  QRW WR H[FHHG /26 ' IRU 0DMRU

DUWHULDOV
DQGQRWWRH[FHHG/26(IRU&RPPHUFLDOIDFLOLWLHV
,

*3
5HTXLUHWKDWQHZGHYHORSPHQWGRHVQRWGHJUDGHVXUIDFHRUJURXQGZDWHU I 6.1, I 6.3, I

6.4 and I 6.5

*3
&RQWLQXHPRQLWRULQJVDQGPRYHPHQWUHVHDUFKLQJWKHLPSDFWVRIFRDVWDOHURVLRQDQG PHWKRGVRIPLWLJDWLQJIXUWKHUFRDVWDOGDPDJHWR6DQ&OHPHQWH VEHDFKHVHQYLURQPHQW
I 7.18

*3

&RQWLQXHWRVXSSRUWWKHFUHDWLRQRIDZLOGOLIHVDQFWXDU\IRUYDULRXVKDELWDWVDORQJWKH FRDVWWRSUHVHUYHDQGSURWHFWWKHQDWXUDOEHDFKHQYLURQPHQW I 7.21

*3
,GHQWLI\WKHNH\EHDFKDUHDVZKLFKDUHLPSRUWDQWWRSURWHFWWKURXJKODQGXVHUHJXODWLRQ EHFDXVHRIWKHLULQKHUHQWHQYLURQPHQWDOHFRORJLFDODQGRUDHVWKHWLFFRQWULEXWLRQV I 8.16, I 8.17
and I 8.35

*3
/RFDWHDQGHQKDQFHWKHEHDFKDUHDVWKDWZLOODFFHSWOLPLWHGUHFUHDWLRQDOGHYHORSPHQW ZLWKRXWGHVWUR\LQJH[LVWLQJQDWXUDOEHDXW\
I 8.21

*3 
(QKDQFHWKH 3LHU DQG1RUWK%HDFK DUHDWR IXQFWLRQ DVWKH KXEV RI 6DQ&OHPHQWH EHDFKIDFLOLWLHV
I 8.21

*3 
 ,GHQWLI\WKRVHPDMRUDUHDV RIWKH&LW\WKDWDUHLPSRUWDQWWR SURWHFWWKURXJKODQG XVH UHJXODWLRQ RU SXEOLF RZQHUVKLS EHFDXVH RI WKHLU LQKHUHQW HQYLURQPHQWDO HFRORJLFDO DQGRU DHVWKHWLFFRQWULEXWLRQWRWKH VFHQLFDQG QDWXUDO TXDOLWLHV RI6DQ&OHPHQWH I 8.16, I 8.17 and I

8.35 
*3
3URYLGHFRRSHUDWLYHOHDGHUVKLSEHWZHHQSULYDWHLQWHUHVWVDQGRWKHUSXEOLFDJHQFLHVWR SURWHFWDQGHQKDQFHERWKODQGDQGZDWHUUHVRXUFHV
I 8.22

*3
$FTXLUHDQGPDLQWDLQWKHPRVWFXUUHQWLQIRUPDWLRQDYDLODEOHUHJDUGLQJWKHVWDWXVDQG ORFDWLRQ RI VHQVLWLYH ELRORJLFDO HOHPHQWV
VSHFLHV DQG QDWXUDO FRPPXQLWLHV
 ZLWKLQ WKH &LW\
I

10.1 
*3
5HTXLUHWKDWDSSOLFDWLRQVIRUGHYHORSPHQWLQWKH8$DQGIRUDUHDVZKLFKDQ,QLWLDO 6WXG\ KDV GHWHUPLQHGWKHUHLV SRWHQWLDO IRU VLJQLILFDQW DGYHUVHLPSDFWVWR ELRORJLFDO UHVRXUFHV >WKHUHIRUH UHTXLULQJ DQ (QYLURQPHQWDO ,PSDFW5HSRUW (,5
 RU0LWLJDWHG 1HJDWLYH 'HFODUDWLRQ

01'
@VKDOOLQFOXGHD%LRORJLFDO$VVHVVPHQW5HSRUWZKLFK

D ,VSUHSDUHGE\DTXDOLILHGSURIHVVLRQDOZKLFKDGGUHVVHVWKHSURSRVHGSURMHFW VLPSDFWRQ
6WDWH DQG )HGHUDOO\ OLVWHG DQG FDQGLGDWH SODQWV DQG DQLPDOV  &DOLIRUQLD 'HSDUWPHQW RI
)LVKDQG*DPH
&')*
6SHFLDO$QLPDOV
QDWXUDOFRPPXQLWLHVRIKLJKLQYHQWRU\SULRULW\
ZLWKWKH&')*
V1RQJDPH+HULWDJH 3URJUDP DQG DQ\ RWKHU VSHFLDOLQWHUHVW VSHFLHV RU 141
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


FRPPXQLWLHV LGHQWLILHG LQ WKH *HQHUDO 3ODQ 7HFKQLFDO %DFNJURXQG 5HSRUW RU WKRVH KHUHDIWHUQDPHGE\6WDWHRU)HGHUDOWUXVWHHDJHQFLHV

E ,GHQWLILHV PLWLJDWLRQ PHDVXUHV QHFHVVDU\ WR HOLPLQDWH VLJQLILFDQW DGYHUVH LPSDFWV WR VHQVLWLYHELRORJLFDOUHVRXUFHV
DQG
F 'HILQHV D SURJUDP IRU PRQLWRULQJ DQG HYDOXDWLQJ WKH HIIHFWLYHQHVV RI WKH VSHFLILHG PLWLJDWLRQPHDVXUHV
I 10.2, I 10.3, and I 10.9

*3 
  5HYLHZ SURSRVHG SURMHFWV LQ WKH 8$ WR HYDOXDWH WKHLU FRQIRUPDQFH ZLWK WKH IROORZLQJSROLFLHVDQGVWDQGDUGV
D 7KHGHYHORSPHQWSODQVKDOOIXOO\FRQVLGHUWKHQDWXUHRIELRORJLFDOUHVRXUFHVSUHVHQWDQG DOOUHDVRQDEOHPHDVXUHVVKDOOEHWDNHQWRDYRLGVLJQLILFDQWLPSDFWVLQFOXGLQJUHWHQWLRQRI VXIILFLHQWQDWXUDOVSDFHZKHUHDSSURSULDWH
E 7KHGHYHORSPHQWSODQVKDOOUHWDLQZDWHUFRXUVHVULSDULDQKDELWDWDQGZHWODQGVLQQDWXUDO FRQGLWLRQWRWKHPD[LPXPH[WHQWIHDVLEOH
F 7KHGHYHORSPHQWVKDOOLQFRUSRUDWHKDELWDWOLQNDJHV ZLOGOLIHFRUULGRUV
WRDGMDFHQWRSHQ
VSDFHVDVDSSURSULDWH
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
ULSDULDQKDELWDWLVWREHUHSODFHGE\ULSDULDQKDELWDW RIWKHVDPHW\SH)XUWKHUPRUH UHSODFHPHQWVKDOOEHEDVHGRQDUDWLRGHWHUPLQHGE\WKH &DOLIRUQLD6WDWH)LVKDQG*DPH'HSDUWPHQWDQGRU86):6LQ RUGHUWRDFFRXQW IRUWKH SRWHQWLDOO\ GLPLQLVKHG KDELWDW YDOXHV RI UHSODFHPHQW KDELWDW 6XFK UHSODFHPHQW VKRXOG RFFXURQWKHRULJLQDOGHYHORSPHQWVLWHZKHQHYHUSRVVLEOH$OWHUQDWLYHO\UHSODFHPHQWFDQ EH HIIHFWHG E\ SURWHFWLRQ RI VLPLODU LQWDFW KDELWDWV HOVHZKHUH RIIVLWH EXW SUHIHUDEO\
ZLWKLQWKH&LW\
V6SKHUHRI,QIOXHQFH
LQSHUSHWXLW\WKURXJKDFTXLVLWLRQDQGSURYLVLRQIRU
DQDSSURSULDWHFRQVHUYDWLRQHDVHPHQWRUGHGLFDWLRQ
I 10.2, I 10.3, and I 10.9

*3
3UHVHUYHZKHUHSRVVLEOHWKHKDELWDWRIVHYHUDOLQIDFWHQGDQJHUHGVSHFLHVLQFOXGLQJ WKRVHOLVWHGLQ7DEOH
RIWKH*HQHUDO3ODQ
DQGWKRVHZKLFKPD\EHFRQVLGHUHGE\WKH&LW\
LQWKHIXWXUH
I 10.2, and I 10.3

*3 
&RQWLQXHWR VXSSRUWWKH&LW\
V SDUWLFLSDWLRQ DQG HQUROOPHQWLQWKH 6WDWH
V1DWXUDO
&RPPXQLWLHV&RQVHUYDWLRQ3ODQQLQJ3URJUDP
1&3

I 10.4

*3 
  &RQWLQXH WKH LPSOHPHQWDWLRQ RI WKH &LW\
V H[LVWLQJ RUGLQDQFH IRU SUHVHUYDWLRQ RI
GHVLJQDWHG KLVWRULF VLWHVDQG VWUXFWXUHV$GRSWD3UHVHUYDWLRQ2UGLQDQFHWKDWZLOODXWKRUL]HWKH &LW\WRGHVLJQDWHDQ\YHJHWDWLRQRUDUFKDHRORJLFDOVLWHGHHPHGWREHRIKLVWRULFDODUFKDHRORJLFDO 142
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

RU FXOWXUDO VLJQLILFDQFH D 6DQ&OHPHQWH&LW\ +LVWRULFDO 3RLQW6LWH RU 'LVWULFW 6XFK RUGLQDQFH VKDOOFRQIRUPWR6WDWHDQG)HGHUDOFULWHULDIRUHVWDEOLVKLQJDSUHVHUYDWLRQRUGLQDQFH(I 10.16). *3 
  5HTXLUH WKDW DOO &LW\RZQHG SURSHUWLHV GHVLJQDWHG DV KLVWRULF UHVRXUFHV DUH PDLQWDLQHGLQDPDQQHUWKDWLVDHVWKHWLFDOO\DQGRUIXQFWLRQDOO\FRPSDWLEOHZLWKVXFKUHVRXUFHV(I

10.18 and I 10.19).
*3 

  5HTXLUH WKDW QHZ GHYHORSPHQW XWLOL]H DSSURSULDWH $40' DLU TXDOLW\ PLWLJDWLRQ PHDVXUHV
600VDQG%$00V
(I 10.32).
*3
,GHQWLI\WVXQDPLVXVFHSWLEOHDUHDVDQGUHTXLUHWKDWVSHFLILFPHDVXUHVEHWDNHQE\WKH GHYHORSHU EXLOGHU RU SURSHUW\ RZQHU DV QHFHVVDU\ WR SUHYHQW RU UHGXFH GDPDJH IURP WKHVH KD]DUGVDQGWKHULVNVXSRQKXPDQVDIHW\
I 13.1 and I 13.4

*3 
&RQVLGHUWKH&LW\
V SDUWLFLSDWLRQLQ DQG UHFHLSW RILQIRUPDWLRQ IURPWKH1DWLRQDO :HDWKHU6HUYLFH
V:HDWKHU:LUH6\VWHPIRU/RFDO7VXQDPL:DUQLQJV
I 13.5

*3
5HTXLUHWKDWLQDUHDVZKHUHH[LVWLQJRUIXWXUHQRLVHOHYHOVH[FHHGDQ/GQRIG%

$
 H[WHULRU DQG DQ /GQ RI  G%
$
 LQWHULRU DOO GHYHORSPHQW RI QHZ KRXVLQJ KHDOWK FDUH IDFLOLWLHV VFKRROV OLEUDULHV UHOLJLRXV IDFLOLWLHV DQG RWKHU QRLVH VHQVLWLYH ODQG XVHV LQFOXGH DSSURSULDWHEXIIHULQJDQGRUFRQVWUXFWLRQPLWLJDWLRQPHDVXUHVWKDWZLOOUHGXFHQRLVHH[SRVXUHWR OHYHOVZLWKLQDFFHSWDEOHOLPLWV
I 14.3, I 14.4 and I 14.5

*3 
  5HTXLUH QHZ LQGXVWULDO FRPPHUFLDO DQG UHODWHG ODQG XVHV RU WKH H[SDQVLRQ RI H[LVWLQJODQGXVHVGHPRQVWUDWHWKDWVXFKQHZRUH[SDQGHGXVHVZRXOGQRWEHGLUHFWO\UHVSRQVLEOH IRUFDXVLQJDPELHQWQRLVHOHYHOVWRH[FHHGDQG/GQRIG% $
H[WHULRUXSRQDUHDVFRQWDLQLQJ
KRXVLQJ VFKRROV KHDOWK FDUH IDFLOLWLHV RU RWKHU QRLVH VHQVLWLYH ODQG XVHV DV GHSLFWHG LQ WKH *HQHUDO3ODQ

I 14.4 and I 14.7

*3
5HTXLUHGHYHORSPHQWLQDOODUHDVZKHUHWKHDPELHQWQRLVHOHYHOH[FHHGVDQ/GQRI G%
$
 WR FRQGXFW DQ DFRXVWLFDO DQDO\VLV DQG LQFRUSRUDWH VSHFLDO GHVLJQ DQG FRQVWUXFWLRQ PHDVXUHVLQWKHLUFRQVWUXFWLRQDVQHFHVVDU\WRUHGXFHLQWHULRUQRLVHOHYHOVWRZLWKLQWKHG%

$
/GQOHYHO
I 14.3

*3 
  5HTXLUH WKDW DQ\ PXQLFLSDO YHKLFOHV RU QRLVHJHQHUDWLQJ PHFKDQLFDO HTXLSPHQW SXUFKDVHG RU XVHG E\ WKH &LW\ RI 6DQ &OHPHQWH FRPSO\ ZLWK QRLVH SHUIRUPDQFH VWDQGDUGV FRQVLVWHQW
ZLWKWKHEHVWDYDLODEOHQRLVHUHGXFWLRQWHFKQRORJ\
I 14.10

*3 
  (QVXUH WKDW WKH SURKLELWLRQV UHODWLYH WR OHJDO KRXUV RI RSHUDWLRQ IRU FRQVWUXFWLRQ DFWLYLWLHV FRQWDLQHG ZLWKLQ WKH H[LVWLQJ &LW\ RI 6DQ &OHPHQWH 1RLVH 2UGLQDQFH DQGRU DQ\ IXWXUHUHYLVHG1RLVH2UGLQDQFHEHVWULFWO\DGKHUHGWRDQGHQIRUFHG I 14.15

*3 
  5HTXLUHWKDW FRQVWUXFWLRQ DFWLYLWLHV DGMDFHQWWR UHVLGHQWLDOODQG XVHV DQG GZHOOLQJ XQLWV EH UHJXODWHG DV QHFHVVDU\ WR SUHYHQW WKH JHQHUDWLRQ RI DGYHUVH DQGRU H[FHVVLYH QRLVH LPSDFWV
I 14.15

143
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

*3 
  5HTXLUH FRQVWUXFWLRQ DFWLYLWLHV WR HPSOR\ IHDVLEOH DQG SUDFWLFDO WHFKQLTXHV DQG SUDFWLFHVZKLFKPLQLPL]HWKHJHQHUDWLRQRIDGYHUVHDQGRUH[FHVVLYHQRLVHLPSDFWVRQDGMDFHQW ODQGXVHV
I 14.15

 /RFDO&RDVWDO3URJUDP
*3,2QDGRSWLRQRIWKHXSGDWHG*HQHUDO3ODQLWZLOOEHQHFHVVDU\WRUHYLVHWKH&LW\RI6DQ &OHPHQWH
V /RFDO&RDVWDO (OHPHQW /&3
DV UHTXLUHG E\WKH&DOLIRUQLD&RDVWDO $FW
WR HQVXUH
FRQVLVWHQF\ EHWZHHQ WKH WZR GRFXPHQWV 7KH /&3 /DQG 8VH 3ODQ ZDV DGRSWHG LQ   DQG
XSGDWHG LQ 
 DQG WKH /RFDO ,PSOHPHQWLQJ 2UGLQDQFH KDV QRW EHHQ ILQDOL]HG /DQG XVH SURYLVLRQVRIWKH/&3ZLOOQHHGWREHDGMXVWHGWRUHIOHFWWKH/DQG8VH(OHPHQWLQFOXGLQJWKHXVH RIFRPPRQFODVVLILFDWLRQDQGGHYHORSPHQWVWDQGDUGV$PRQJWKHSROLFLHVZKLFKZLOOQHFHVVLWDWH UHYLHZ RI WKH /&3 DUH WKRVH IRU WKH 3LHU %RZO DQG 1RUWK %HDFK ZKLFK SHUPLW VRPH LQWHQVLILFDWLRQ RI FRDVWDOUHODWHG YLVLWRUVHUYLQJ XVHV 3ROLFLHV DQG VWDQGDUGV SHUWDLQLQJWR RSHQ VSDFHELRORJLFDOUHVRXUFHPDQDJHPHQWDQGHQYLURQPHQWDOKD]DUGVZLOODOVRUHTXLUHUHYLHZDQG SRWHQWLDO PRGLILFDWLRQ WR UHIOHFW WKH /DQG 8VH (OHPHQW DQG (QYLURQPHQWDO 5HVRXUFHV DQG +D]DUGV 6HFWLRQV ,Q FRQFHUW LW ZLOO EH QHFHVVDU\ WR FRPSOHWH WKH

XQILQLVKHG
 /RFDO
,PSOHPHQWLQJ 2UGLQDQFH %RWK GRFXPHQWV VKDOO EH VXEPLWWHG WR WKH &DOLIRUQLD &RDVWDO &RPPLVVLRQIRUUHYLHZDQGFHUWLILFDWLRQ
 1RLVH
7KH 3URMHFW EHDFK VLWHLV FXUUHQWO\ EHDFK SURSHUW\  5HVLGHQWLDOODQG XVHV H[LVW DSSUR[LPDWHO\ IW
PHWHUV
 QRUWKQRUWKHDVW DORQJ WKH PDMRULW\ RI WKH 3URMHFW OHQJWK LQWHUVSHUVHG ZLWK PLQLPDO DPRXQW RI FRPPHUFLDO SURSHUW\  7KH EHDFK FRQWLQXHV WR PHDQGHU DORQJ WKH VKRUH JHQHUDOO\ QRUWKZHVW DQG VRXWKHDVW RI WKH 3URMHFW VLWH DQG WKH 6DQ &OHPHQWH 3LHU DQG 3DFLILF 2FHDQDUHDGMDFHQWWRWKH3URMHFWVLWHWRWKHZHVW7KH3URMHFW¶VERUURZSLWVLWHLVDSSUR[LPDWHO\  IW
P
RIIVKRUHRIWKHFRDVWRI2FHDQVLGH+DUERU7KHQHDUHVW UHVLGHQWLDOSURSHUWLHV DUHORFDWHGDSSUR[LPDWHO\IW
P
HDVWRIWKHERUURZSLWORFDWLRQ
 1RLVH7HUPLQRORJ\
1RLVHLVGHILQHGDVXQZDQWHGRUREMHFWLRQDEOHVRXQG7KHHIIHFWVRIQRLVHRQSHRSOHFDQLQFOXGH JHQHUDO DQQR\DQFH LQWHUIHUHQFH ZLWK VSHHFK FRPPXQLFDWLRQ VOHHS GLVWXUEDQFH DQG LQ WKH H[WUHPH KHDULQJ LPSDLUPHQW  7KH XQLW RI PHDVXUHPHQW XVHG WR GHVFULEH D QRLVH OHYHO LV WKH GHFLEHO
G%
  7KH KXPDQ HDU LV QRW HTXDOO\ VHQVLWLYH WR DOO IUHTXHQFLHV ZLWKLQ WKH VRXQG VSHFWUXP  7KHUHIRUH WKH ³$ ZHLJKWHG´ QRLVH VFDOH ZKLFK ZHLJKWV WKH IUHTXHQFLHV WR ZKLFK KXPDQVDUHVHQVLWLYHLVXVHGIRUPHDVXUHPHQWV1RLVHOHYHOVXVLQJ$ZHLJKWHGPHDVXUHPHQWV DUHZULWWHQG%
$
RUG%$'HFLEHOVDUHPHDVXUHGRQDORJDULWKPLFVFDOHZKLFKTXDQWLILHVVRXQG LQWHQVLW\ LQ D PDQQHU VLPLODU WR WKH 5LFKWHU VFDOH XVHG IRU HDUWKTXDNH PDJQLWXGHV  7KXV D GRXEOLQJRIWKHHQHUJ\RIDQRLVHVRXUFHVXFKDVGRXEOLQJDWUDIILFYROXPHZRXOGLQFUHDVHWKH QRLVHOHYHO E\  G%$
 D KDOYLQJ RIWKH HQHUJ\ZRXOG UHVXOWLQ D G%$ GHFUHDVH7DEOH  VKRZVWKHUHODWLRQVKLSRIYDULRXVQRLVHOHYHOVWRFRPPRQO\H[SHULHQFHGQRLVHHYHQWV 144
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH6RXQG/HYHOVRI7\SLFDO1RLVH6RXUFHVDQG1RLVH(QYLURQPHQWV 1RLVH6RXUFH

DWD*LYHQ'LVWDQFH

6FDOHRI
$:HLJKWHG
6RXQG/HYHO
LQ'HFLEHOV 1RLVH(QYLURQPHQW
+XPDQ-XGJPHQWRI
1RLVH/RXGQHVV

5HODWLYHWRD5HIHUHQFH
/RXGQHVVRI
'HFLEHOV


0LOLWDU\-HW7DNHRIIZLWK$IWHUEXUQHU

IW>P@

&LYLO'HIHQVH6LUHQ
IW>P@

 &DUULHU)OLJKW'HFN
&RPPHUFLDO-HW7DNHRII
IW>P@
  $LUSRUW5XQZD\ 7KUHVKROGRI3DLQ

WLPHVDVORXG
3LOH'ULYHU
IW>P@
  5RFN0XVLF&RQFHUW
WLPHVDVORXG
$PEXODQFH6LUHQ
IW>P@

1HZVSDSHU3UHVV
IW>P@

3RZHU/DZQ0RZHU
IW>
P@

0RWRUF\FOH
IW>P@

3URSHOOHU3ODQH)O\RYHU
IW>
P@

'LHVHO7UXFNPSK
NPSK

IW
>P@

*DUEDJH'LVSRVDO
IW>
P@





%RLOHU5RRP
3ULQWLQJ3UHVV3ODQW
+LJK8UEDQ$PELHQW
6RXQG
9HU\/RXG

WLPHVDVORXG

WLPHVDVORXG

WLPHVDVORXG
3DVVHQJHU&DUPSK
NPSK

IW
>P@

/LYLQJ5RRP6WHUHR
IW>P@

9DFXXP&OHDQHU
IW>
P@

(OHFWURQLF7\SHZULWHU
IW>P@


%XV\6KRSSLQJ0DOO
,QGRRU6SRUWV3DUN
0RGHUDWHO\/RXG

G%

5HIHUHQFH/RXGQHVV

1RUPDO&RQYHUVDWLRQ
IW>P@

$LU&RQGLWLRQLQJ8QLW
IW>P@

 'DWD3URFHVVLQJ&HQWHU
'HSDUWPHQW6WRUH

DVORXG
/LJKW7UDIILF
IW>P@
  3ULYDWH%XVLQHVV2IILFH
DVORXG
%LUG&DOOV

GLVWDQW
  /RZHU/LPLWRI8UEDQ
$PELHQW6RXQG
4XLHW

DVORXG
6RIW:KLVSHU
IW>P@
  5XUDO5HVLGHQWLDO$UHD 
  4XLHW%HGURRP -XVW$XGLEOH
   7KUHVKROGRI+HDULQJ
$YHUDJHQRLVHOHYHOVRYHUDSHULRGRIPLQXWHVRUKRXUVDUHXVXDOO\H[SUHVVHGDVG%/HTRUWKH HTXLYDOHQWQRLVHOHYHOIRUWKDWSHULRGRIWLPH)RUH[DPSOH/HT 
ZRXOGUHSUHVHQWDWKUHHKRXU
DYHUDJH:KHQQRSHULRGLVVSHFLILHGDRQHKRXUDYHUDJHLVDVVXPHG1RLVHVWDQGDUGVIRUODQG XVHFRPSDWLELOLW\ZKLFKDUHDGGUHVVHGLQWKH+HVSHULD*HQHUDO3ODQ1RLVH(OHPHQWDUHVWDWHGLQ WHUPV RIWKH&RPPXQLW\1RLVH(TXLYDOHQW/HYHO
&1(/
(TXLYDOHQW1RLVH/HYHO
/(4
DQG
WKH'D\1LJKW$YHUDJH1RLVH/HYHO
/GQ
&1(/LV D KRXUZHLJKWHG DYHUDJHPHDVXUH RI
FRPPXQLW\ QRLVH  7KH FRPSXWDWLRQ RI&1(/ DGGV  G%$WRWKH DYHUDJH KRXUO\ QRLVHOHYHOV EHWZHHQ  SP DQG  SP
HYHQLQJ KRXUV
 DQG  G%$ WR WKH DYHUDJH KRXUO\ QRLVH OHYHOV EHWZHHQ  SP DQG 
 DP
QLJKWWLPH KRXUV
  7KLV ZHLJKWLQJ DFFRXQWV IRU WKH LQFUHDVHG
KXPDQ VHQVLWLYLW\WR QRLVHLQWKH HYHQLQJ DQG QLJKWWLPH KRXUV/GQLV D YHU\ VLPLODU KRXU ZHLJKWHGDYHUDJHWKDWZHLJKWVRQO\WKHQLJKWWLPHKRXUVDQGQRWWKHHYHQLQJKRXUV 145
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,W LV ZLGHO\ DFFHSWHG WKDW WKH DYHUDJH KHDOWK\ HDU FDQ EDUHO\ SHUFHLYH FKDQJHV RI  G%$ LQFUHDVHV RU GHFUHDVHV
 WKDW D FKDQJH RI  G%$ LV UHDGLO\ SHUFHSWLEOH DQG WKDW DQ LQFUHDVH

GHFUHDVH
RIG%$VRXQGVWZLFH
KDOI
DVORXG
&DOWUDQV



 5HJXODWRU\6HWWLQJ
7KH&LW\RI6DQ&OHPHQWHQRLVHVWDQGDUGVDUHLGHQWLILHGLQWKH&LW\¶V0XQLFLSDO&RGH &K
1RLVH&RQWURO
7KH0XQLFLSDO&RGHVWDWHVWKDWDPELHQWQRLVHOHYHOVVKDOOEHQRJUHDWHUWKDQWKH QRLVH OHYHOV LGHQWLILHG IRU HDFK ODQG XVH  7DEOH   LV D UHFUHDWLRQ RI WKH &LW\ RI 6DQ
&OHPHQWH¶V1RLVH6WDQGDUG7DEOH
7DEOH
6DQ&OHPHQWH1RLVH6WDQGDUGV

$0WR
30 
30WR
$0
5HVLGHQWLDO  
([WHULRU G%$ G%$
,QWHULRU G%$ G%$
&RPPHUFLDO G%$ G%$
,QGXVWULDO G%$ G%$
6HQVLWLYH5HFHSWRUV
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
PHWHUV
WRWKHQRUWKQRUWKHDVW
RIWKHEHDFKUHVWRUDWLRQVLWHIW
P
IURPWKHGUHGJH
ZKLOHWUDYHOLQJEHWZHHQERUURZ
SLW DQG EHDFK VLWH
 DQG  IW
 P
 WR WKH HDVW RI WKH ERUURZ SLW DUHD DUH WKH FORVHVW VHQVLWLYHUHFHSWRUVLQWKH3URMHFWDUHD

5HFUHDWLRQ
7KLV VHFWLRQ SUHVHQWV LQIRUPDWLRQ RQ UHFUHDWLRQDO DFWLYLWLHV DQG RSSRUWXQLWLHV ZLWKLQ WKH 6DQ &OHPHQWH %HDFK DUHD DQG VXPPDUL]HV WKH UHFUHDWLRQ VHWWLQJ  5HVLGHQWLDO DQG RSHQ VSDFH

LQFOXGLQJUHFUHDWLRQ
DUHWKHSUHGRPLQDQWODQGXVHVZLWKLQWKHVWXG\DUHD7KH%HDFKHV3DUNV DQG 5HFUHDWLRQ 'HSDUWPHQW DUH UHVSRQVLEOH IRU FLW\ZLGH PDLQWHQDQFH DQG PDQDJHPHQW RI UHFUHDWLRQDO SURJUDPV DQG IDFLOLWLHV  ,WV RSHUDWLQJ GLYLVLRQV LQFOXGH DPRQJ RWKHUV  0DULQH
6DIHW\%HDFKHVDQG3DUNV0DLQWHQDQFHDQG5HFUHDWLRQ 
 %HDFKHV
6DQ&OHPHQWHLVKRPHWRPLOHV
NP
RIZKLWHVDQG\EHDFKHVWKDWSDUDOOHOWKHVRXWKZHVW
VLGHRIWKH&LW\3RSXODUDFWLYLWLHVIRUEHDFKJRHUVDUHVXUILQJVXQEDWKLQJMRJJLQJVNLQGLYLQJ 146
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

VZLPPLQJERG\VXUILQJSLFQLFNLQJFDPSLQJDQGKLNLQJDORQJWKHPDQ\WUDLOVORFDWHGRQWKH EOXIIVRYHUORRNLQJWKHEHDFK%HFDXVHWKHUHDUHQRSDYHGSDWKVRQWKHEHDFKEHDFKZKHHOFKDLUV DUH DYDLODEOH DW WKH OLIHJXDUG VWDWLRQ DW WKH 3LHU :LWKLQ D PLOH RI WKH ERUURZ VLWH DUH &DPS 3HQGOHWRQDQG2FHDQVLGH%HDFKHV

 /LQGD/DQH
/LQGD/DQH3DUNLVWKHDSSUR[LPDWHQRUWKHUQERXQGDU\RIWKH3URMHFW VLWHDQGLVORFDWHGDWWKH HQG RI /LQGD /DQH  ,W KDV EHDFK DFFHVV WKURXJK D VKRUW WXQQHO XQGHU WKH UDLOURDG WUDFNV D

FKLOGUHQ
V SOD\ DUHD D JUDVV\ DUHD DQ RFHDQ YLHZ DQG SLFQLFWDEOHV EXW QR UHVWURRPV/LQGD /DQHKDVDPHWHUHGSDUNLQJDUHDDYDLODEOHEHWZHHQ
DPDQGSP

 6DQ&OHPHQWH%HDFKDQG3LHU
7KH6DQ&OHPHQWH&LW\%HDFKDQG)LVKLQJ3LHU
3LHU%RZO
LVDFFHVVLEOHWKURXJKDWXQQHOXQGHU
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
UHVLGHQWLDOVWUHHWVDOVRLVDYDLODEOHIRUEHDFKJRHUV
6DQ&OHPHQWH 3LHULV DQ DSSUR[LPDWHO\ 
 IW

P
ORQJ SLHU ZLWK IDQWDVWLF YLHZV RIWKH
3DFLILF2FHDQ7KH3LHUZDVEXLOWE\2OH+DQVRQLQ
,Q

DQGDJDLQLQ
VWURQJ
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

 76WUHHW
76WUHHWLVWKH DSSUR[LPDWH VRXWKHUQ ERXQGDU\ RIWKH 3URMHFW VLWH DQGLVORFDWHG DWWKH HQG RI (VSODQDGH IROORZLQJ7UDIDOJDU/DQH$FFHVVWRWKHEHDFKLVE\DQRYHUSDVVWRWKHWUDLQWUDFNV DQGDIOLJKWRIVWDLUV$ODUJHVDQGEDUPDNHVWKHZDWHUVKDOORZDQGWKHEHDFKSRSXODUIRUPRVW EHDFKJRHUV7KLVEHDFKDOVRSURYLGHVDVQDFNEDUUHVWURRPVOLIHJXDUGWRZHUDQGHDV\DFFHVVWR VKRSSLQJ76WUHHWKDVDPHWHUHGSDUNLQJDUHDDYDLODEOHEHWZHHQ DPDQGSP
147
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


 $QQXDO(YHQWV
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
 %HDFKHV3DUNVDQG5HFUHDWLRQ'HSDUWPHQW

 0DULQH6DIHW\
7KH 0DULQH 6DIHW\ 'LYLVLRQ LV UHVSRQVLEOH IRU WKH OLIHJXDUG RSHUDWLRQ RQ WKH &LW\ V  DFUHV

KHFWDUHV
 RI VDQG EHDFK  ,Q DGGLWLRQ WKH GLYLVLRQ PDQDJHV VHYHQ VQDFN EDUV UHVWDXUDQWV

LQFOXGLQJ WKH )LVKHUPDQ
V 5HVWDXUDQW
 EDLW DQG WDFNOH VKRSV DQG SLHU WHOHVFRSH FRQFHVVLRQ RSHUDWLRQV7KLV GLYLVLRQ SURYLGHV RFHDQ UHVFXH ILUVWDLGODZ HQIRUFHPHQWDQG YDULRXV SXEOLF HGXFDWLRQSURJUDPVLQFOXGLQJDMXQLRUOLIHJXDUGDQGLQVWUXFWLRQDOVXUILQJ2WKHUGXWLHVLQFOXGH PRQLWRULQJ UHODWHG HQYLURQPHQWDO LVVXHV VXFK DV RIIVKRUH RLO DQG FRDVWDO HURVLRQ DQG ZDWHU TXDOLW\ PRQLWRULQJ RQ DQ RQJRLQJ EDVLV  7KH GLYLVLRQ DOVR DVVLVWV LQ SODQQLQJ UHODWHG FDSLWDO LPSURYHPHQWSURMHFWV7KH0DULQH6DIHW\'LYLVLRQDOVRPDQDJHVEHDFKUHODWHGVSHFLDOHYHQWV 
 %HDFKDQG3DUN0DLQWHQDQFH
7KH %HDFKHV DQG 3DUNV 0DLQWHQDQFH 'LYLVLRQ SURPRWHV SURYLGHV DQG IDFLOLWDWHV SDUN DQG UHFUHDWLRQDOVHUYLFHV7KHGHSDUWPHQWLV UHVSRQVLEOH IRUWKHPDLQWHQDQFHRIWKH&LW\ VDFUHV

KHFWDUHV
RIEHDFKZKLFKLVWKHSULPDU\DWWULEXWHZLWKLQWKH3URMHFWDUHD7KHGHSDUWPHQWLV DOVRUHVSRQVLEOHIRURWKHUUHFUHDWLRQDOW\SHIDFLOLWLHVLQFOXGLQJDFUHV 
KHFWDUHV
DW
SDUNVDQGEHDFKDFFHVVHVWUHHVORFDWHGLQSDUNVDQGRQWKHEHDFKHVDQGWKH6DQ&OHPHQWH3LHU  $HVWKHWLFV
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
148
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7KH&DOLIRUQLD&RDVWDO$FWLQFOXGHVWKH SURWHFWLRQRIWKH VFHQLFDQG YLVXDO TXDOLWLHV RIFRDVWDO DUHDVLQFOXGLQJWKHSURWHFWLRQRIYLHZVWRDQGDORQJWKHRFHDQPLQLPL]DWLRQRIWKHDOWHUDWLRQRI QDWXUDO ODQGIRUPV DQG QHFHVVDU\ DFWLRQV WR UHVWRUH DQG HQKDQFH YLVXDO TXDOLW\ LQ YLVXDOO\ GHJUDGHGDUHDV7KH3URMHFWLVFRQVLVWHQWZLWK3ROLF\RIWKH&LW\RI6DQ&OHPHQWH*HQHUDO 3ODQ 1DWXUDO DQG +LVWRULF&XOWXUDO 5HVRXUFHV (OHPHQW ZKLFK SURPRWHV GHYHORSPHQW RI SURJUDPV ³WKDW ZLOO SUHVHUYH DQG PDLQWDLQ WKH SK\VLFDO IHDWXUHV RI WKH FRDVWDO ]RQH LQFOXGLQJ EOXIIVFDQ\RQVDQGEHDFKHV´
 3XEOLF+HDOWKDQG6DIHW\
)RUSXUSRVHVRIWKLV(,6(,5SXEOLFKHDOWKDQG VDIHW\LVVXHVDUHGHILQHGDVWKRVHWKDWGLUHFWO\ DIIHFW WKH FRQWLQXHG DELOLW\ WR SURWHFW DQG SUHVHUYH OLIH DQG SURSHUW\ DW ORFDWLRQV DORQJ WKH SURSRVHG3URMHFW VLWH6SHFLILFDOO\WKHVHLVVXHVDUHOLIHJXDUG VHUYLFHV UHFUHDWLRQDO VDIHW\DQG YHVVHOVDIHW\6HGLPHQWDQGFKHPLFDOFRPSDULVRQVRIGUHGJHGPDWHULDODQGWKH3URMHFWVLWHKDYH EHHQ FRPSOHWHG DQG WKHUH ZRXOG EH QR ULVN WR KHDOWK RU VDIHW\ 7KLV LVVXH LV QRW DGGUHVVHG IXUWKHU
7KH OLIHJXDUGV DUH UHVSRQVLEOH IRU DOO UHFUHDWLRQDO VDIHW\ PHDVXUHV DORQJ WKH EHDFK 6DIHW\ PHDVXUHV LQFOXGH PDQQHG OLIHJXDUG WRZHUV DQG UHJXODU YHKLFOH SDWUROV GXULQJ WKH VXPPHU PRQWKV  7KH 0DULQH 6DIHW\ 'LYLVLRQ LV QRUPDOO\ VWDIIHG IURP   DP XQWLO GXVN
FKDQJHV
VHDVRQDOO\
7KHPDLQOLIHJXDUGWRZHU RQWKH3LHULV QRUPDOO\PDQQHG E\  HDFKPRUQLQJ
ZLWKOLIHJXDUGWRZHUVRQWKHEHDFKVWDIIHGDVQHHGHGGXULQJWKHRIIVHDVRQ/LIHJXDUGWRZHUVDUH W\SLFDOO\PRUHKHDYLO\VWDIIHGRQZHHNHQGVGXULQJVXPPHUPRQWKV1RUPDOVXPPHUVWDIILQJIRU WKH3URMHFWVLWHLVOLVWHGEHORZ/LIHJXDUGWRZHUVEHWZHHQWKRVHOLVWHGEHORZRSHQODWHUDQGFORVH HDUOLHUGHSHQGLQJXSRQFURZGFRQGLWLRQV
7RZHU
/LQGD/DQH
±DPXQWLOSP
7RZHU
6RXWKVLGHRI3LHU
±DPXQWLOSP
7RZHU
76WUHHW
±
DPXQWLOSP
 6RFLRHFRQRPLFV(QYLURQPHQWDO-XVWLFH
 /RFDO6RFLRHFRQRPLF&RQGLWLRQV
6RFLRHFRQRPLF GDWD IRUWKH&LW\ RI 6DQ&OHPHQWH DUH VRXUFHG IURPWKH&LW\ RI 6DQ&OHPHQWH +RXVLQJ(OHPHQWRIWKH*HQHUDO3ODQODVWXSGDWHGLQ-XQH6DQ&OHPHQWHLVWKHVRXWKHUQ PRVWFLW\LQ2UDQJH&RXQW\,WVFRDVWDOVHWWLQJ0HGLWHUUDQHDQFOLPDWHDQGUROOLQJKLOOVSURYLGH D XQLTXH DQG DWWUDFWLYHOLYLQJ HQYLURQPHQW  7KLV UHVRUW VHWWLQJ DIIHFWVWKH &LW\¶V HPSOR\PHQW FKDUDFWHULVWLFVDQGHFRQRPLFEDVH
6DQ&OHPHQWHKDVEHHQRQHRIWKHIDVWHVWJURZLQJFLWLHVLQ2UDQJH&RXQW\ &RXQW\
VLQFH

7KLV JURZWK SHDNHG E\ 
 DQG 

 ZLWK D  SHUFHQW DQQXDO JURZWK UDWH FRPSDUHG WR 149
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

SHUFHQW IRUWKH UHVW RIWKH&RXQW\ DQG DOWKRXJK JURZWK VORZHG IROORZLQJWKLV SHULRG 6DQ &OHPHQWH¶VDYHUDJHDQQXDOJURZWKUDWHKDVEHHQVOLJKWO\KLJKHUWKDQWKH&RXQW\¶VJURZWKUDWHWR WKH SUHVHQW 6LQFH 
WKH&LW\¶V SRSXODWLRQ QHDUO\ GRXEOHGIURP  SHUVRQVWR  SHUVRQVLQ
+RXVLQJ GHYHORSPHQW JUHZ SURSRUWLRQDWHO\ZLWKWKLV IDVW SDFH RI JURZWK7KH&LW\¶V KRXVLQJ VWRFN JUHZ IURP  XQLWV LQ 
 WR  XQLWV LQ  ZLWK WKH ODUJHVW LQFUHDVH LQ KRXVLQJ JURZWK RFFXUULQJ EHWZHHQ 
 DQG 

%DVHG RQWKH'HSDUWPHQW RI+RXVLQJ DQG
8UEDQ'HYHORSPHQW
+8'
 ,QFRPH&DWHJRULHV IRU2UDQJH&RXQW\LQ  SHUFHQW RI6DQ &OHPHQWH KRXVHKROGV UDQJHG LQ WKH YHU\ ORZ

 WR PRGHUDWH
XS WR 
 LQFRPH
FDWHJRULHV  %DVHG RQ WKH 

 &HQVXV WKH UDWLR RI RZQHU WR UHQWHU LQ 6DQ &OHPHQWH ZDV 
SHUFHQWWRSHUFHQW+RXVHKROGVFRQVLVWHGRISHUFHQWIDPLOLHVSHUFHQWVLQJOHSHUVRQV DQG  SHUFHQW RWKHU  7KH UDFHHWKQLFLW\ UDWLR RI 6DQ &OHPHQWH UHVLGHQWV EDVHG RQ WKH 


&HQVXVZDV  SHUFHQW&DXFDVLDQ  SHUFHQW+LVSDQLF  SHUFHQW%ODFN  SHUFHQW$VLDQDQG SHUFHQW2WKHU
6DQ&OHPHQWHLVORFDWHGZLWKLQUHODWLYHO\HDV\FRPPXWLQJGLVWDQFHVIURPHPSOR\PHQWFHQWHUVLQ /RV$QJHOHVDQG2UDQJHFRXQWLHVDVZHOODVIDVWJURZLQJQRUWKHUQ6DQ'LHJR&RXQW\DQG&DPS 3HQGOHWRQ%DVHGRQWKH

&HQVXVSHUFHQWRI6DQ&OHPHQWHUHVLGHQWVZHUHHPSOR\HGLQ HLWKHUPDQDJHULDOSURIHVVLRQDOWHFKQLFDO VDOHV RU DGPLQLVWUDWLYH RFFXSDWLRQV ,Q FRQWUDVWWKH ODERU PDUNHW ZLWKLQ 6DQ &OHPHQWH LQ 

 ZDV SUHGRPLQDQWO\ UHWDLO
 SHUFHQW
 RU VHUYLFHV

SHUFHQW
  'XH WR WKH KLJKHU ZDJHV RIIHUHG LQ QHDUE\ DUHDV DQG WKH UHODWLYHO\ ORZ FRVW RI OLYLQJLQ6DQ&OHPHQWHWKH&LW\KRVWVDODUJHQXPEHURIFRPPXWHUV+RZHYHUDQHHGIRUORZHU ZDJH ODERU LQ WKH FRPPHUFLDO DQG VHUYLFH FHQWHUV FRQWLQXHV WR LQFUHDVH LQ 6DQ &OHPHQWH HVSHFLDOO\LQUHODWLRQWRWKHWRXULVPLQGXVWU\
,Q D VWXG\ E\ .LQJ DQG 6\PHV

 QLQH&DOLIRUQLD EHDFKHV ZHUH HYDOXDWHG EDVHG RQWKHLU HFRQRPLFLPSDFW RQ&DOLIRUQLD .LQJ DQG 6\PHV

 VXJJHVWWKDWWKH&DOLIRUQLD HFRQRP\
ZRXOG VXIIHUD QHWORVV RI ELOOLRQV RI GROODUVLI&DOLIRUQLD EHDFKHVZHUHWR GHFOLQHWRWKH SRLQW ZKHUHWRXULVPZDV VLJQLILFDQWO\DIIHFWHG%HDFK YLVLWRUV KHOSFUHDWHHPSOR\PHQWDWWKH EHDFK DQG RWKHU IDFLOLWLHV XVHG E\ YLVLWRUV  *LYHQ WKH LPSRUWDQFH RI WRXULVP LQ &DOLIRUQLD WHQV RI PLOOLRQVRIYLVLWVDQGELOOLRQVRIGROODUVSHU\HDUGHSHQGRQEHDFKHV .LQJDQG6\PHV

 2QVLWH6RFLRHFRQRPLF&RQGLWLRQV
7KH3URMHFWDUHDLVORFDWHGDORQJWKH6DQ&OHPHQWHVKRUHOLQHZKLFKLVFKDUDFWHUL]HGE\QDUURZ OLQHDUVDQG\EHDFKEDFNHGE\KLJKFRDVWDOEOXIIV7KXVGHYHORSPHQWZLWKLQWKHFRQILQHVRIWKH 3URMHFWDUHDERXQGDULHVLVJHQHUDOO\OLPLWHG
6HYHUDOFRPPHUFLDOVWUXFWXUHVDUHORFDWHGDORQJWKHVKRUHOLQHDQGZLWKLQWKH3URMHFWDUHD7KH IRFDOSRLQWRIWKHEHDFKLVD IW
P
 ILVKLQJSLHUZKLFKKRXVHVDEDLWDQGWDFNOH VKRS
DQGD IXOOVHUYLFH UHVWDXUDQW6HPLSHUPDQHQW UHQWDO VKRSVZKLFK RIIHU XPEUHOODV VXUIERDUGV ERG\ ERDUGV DQG RWKHU EHDFK DFFHVVRULHV DUH DOVRORFDWHG DORQJWKH EHDFK 6HYHUDO IDVWIRRG UHVWDXUDQWV DUH ORFDWHG DW 76WUHHW %HDFK  7KHVH FRPPHUFLDO XVHV SURYLGH HPSOR\PHQW RSSRUWXQLWLHV PRVWO\ LQ WKH UHODWLYHO\ ORZSD\LQJ UHWDLO DQG VHUYLFH VHFWRUV  0RVW RI WKHVH FRPPHUFLDOXVHVDUHGLUHFWO\UHODWHGWRWKHWRXULVWWUDGHDVVRFLDWHGZLWKEHDFKYLVLWRUV 150
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

3XEOLFIDFLOLWLHVZLWKLQWKH3URMHFWDUHDDUHRSHUDWHGDQGPDLQWDLQHGE\WKH&LW\RI6DQ&OHPHQWH DQGWKH2UDQJH&RXQW\'HSDUWPHQWRI+DUERUV%HDFKHVDQG3DUNV7KHVHIDFLOLWLHVLQFOXGHWKH 0DULQH6DIHW\%XLOGLQJSXEOLFUHVWURRPIDFLOLWLHVOLIHJXDUGVWDWLRQVSDUNLQJDUHDVDQGSDYLQJ QHDUWKH3LHU7KHVHIDFLOLWLHVDOVRSURYLGHHPSOR\PHQWRSSRUWXQLWLHVVLPLODUWRWKHFRPPHUFLDO XVHVDQGGLUHFWO\UHODWHGWREHDFKYLVLWRUV
6XUILQJ DVZHOO DV FDPSLQJ SLFQLFNLQJ DQG RWKHU GLVSHUVHG UHFUHDWLRQ DUH DODUJH UHFUHDWLRQDO HFRQRPLFEDVHWRWKHORFDODQGLQSDUWLFXODUWRWKH&LW\RI6DQ&OHPHQWHHFRQRPLHV6XUILQJLV DPDMRUFRPSRQHQWRI6DQ&OHPHQWH¶VUHFUHDWLRQDOEDVH6XUILQJKDVEHHQUHFRUGHGDWWKHQRUWK VLGHDQGVRXWKVLGHRI6DQ&OHPHQWH3LHULQFOXGLQJ76WUHHWVLQFHWKHHDUO\ V
151
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 (19,5210(17$/&216(48(1&(62)352326('$&7,21$1'
$/7(51$7,9(6
 $LU4XDOLW\DQG0HWHRURORJ\
 6LJQLILFDQFH&ULWHULD
3URMHFWHG DLU HPLVVLRQV DUH SUHSDUHG LQ DFFRUGDQFH ZLWK WKH PHWKRGRORJLHV SURYLGHG E\ WKH 6RXWK&RDVW$LU4XDOLW\0DQDJHPHQW'LVWULFW
6&$40'
DVLQFOXGHGLQLWVCEQA Air Quality
Handbook, April 1993
Handbook
DVZHOODVLWV,QWHUQHWXSGDWHVLQFOXGHGRQLWVZHEVLWH)RU WKH SXUSRVHV RIWKLV DQDO\VLV FRQVWUXFWLRQLV HVWLPDWHGWR RFFXULQ ZLWKWKH  IW P

%HDFK:LGWK $OWHUQDWLYHWDNLQJ DSSUR[LPDWHO\  ZRUNLQJ GD\V DQGWKH  IW  P
%HDFK
:LGWK$OWHUQDWLYHWDNLQJZRUNLQJGD\V7KLVDQDO\VLVDOVRFRQVLGHUHGWKHRQJRLQJGDLO\ RSHUDWLRQVRIWKHUDLOURDG
7KUHVKROGV RI VLJQLILFDQFH IRU LQGLYLGXDO SURMHFWV XVHG WKH 6&$40' Handbook DV ZHOO DV XSGDWHV LQFOXGHG RQ WKH 6&$40' ,QWHUQHW:HE VLWH  7KH Handbook UHFRPPHQGV DVVHVVLQJ HPLVVLRQV RI UHDFWLYH RUJDQLF FRPSRXQGV
52*
 DV DQ LQGLFDWRU RI R]RQH  )RU HDVH RI WKH
UHDGHUWKHLQFOXGHGDQDO\VLVIROORZVWKHRXWOLQHRIWKH&(4$&KHFNOLVW 7KH 6DQ 'LHJR $LU 3ROOXWLRQ &RQWURO 'LVWULFW GRHV QRW SURYLGH TXDQWLWDWLYH WKUHVKROGV IRU GHWHUPLQLQJ WKH VLJQLILFDQFH RI FRQVWUXFWLRQ RU PRELOH VRXUFHUHODWHG LPSDFWV +RZHYHU WKH 'LVWULFW VSHFLILHV $LU 4XDOLW\ ,PSDFW $QDO\VLV
$4,$
 WULJJHU OHYHOV IRU QHZ RU PRGLILHG
VWDWLRQDU\VRXUFHV,IWKHVHLQFUHPHQWDOOHYHOVIRUVWDWLRQDU\VRXUFHVDUHH[FHHGHGDQ$4,$PXVW EH SHUIRUPHG IRU WKH SURSRVHG QHZ RU PRGLILHG VRXUFH $OWKRXJK WKHVH WULJJHU OHYHOV GR QRW JHQHUDOO\ DSSO\ WR PRELOH VRXUFHV RU JHQHUDO ODQG GHYHORSPHQW SURMHFWV IRU FRPSDUDWLYH SXUSRVHV6DQ'LHJR&RXQW\KDVHVWDEOLVKHG$4,$VDV VFUHHQLQJOHYHOWKUHVKROGV 6/7V
7KH
&RXQW\KDVVWDWHGWKDWWKH6/7VPD\XVHGWRHYDOXDWHWKHLQFUHDVHGHPLVVLRQVZKLFKZRXOGEH GLVFKDUJHGWRWKH6'$%IURPSURSRVHGODQGGHYHORSPHQWSURMHFWV 7KHLQIRUPDWLRQRQ6DQ'LHJR¶VWKUHVKROGVDUHSUHVHQWHGIRULQIRUPDWLRQDOSXUSRVHVVLQFHDOORQ VKRUHHPLVVLRQVDUHORFDWHGLQWKH6&$%DQGRIIVKRUHVRXUFHVDUHQRWXQGHUWKHMXULVGLFWLRQRI WKHORFDODLUGLVWULFW¶VWKHUHIRUHQRWVXEMHFWWRWKUHVKROGV  5HJLRQDO7KUHVKROGVRI6LJQLILFDQFH
7KH IROORZLQJ VLJQLILFDQFHWKUHVKROGV
7DEOH 
 IRU DLU TXDOLW\ KDYH EHHQ HVWDEOLVKHG E\WKH
6&$40'RQDGDLO\EDVLVIRUFRQVWUXFWLRQDQGRSHUDWLRQVHPLVVLRQVDQG7DEOHDOVRVKRZV WKH6/7VIRU6DQ'LHJR&RXQW\

152
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH7KUHVKROGVRI6LJQLILFDQFH
6&$*5HJLRQDO 6'$*6FUHHQLQJ/HYHO
&RQVWUXFWLRQ
(PLVVLRQV
2SHUDWLRQV
(PLVVLRQV
7RWDO
(PLVVLRQV
7RWDO
(PLVVLRQV
7RWDO
(PLVVLRQV
3ROOXWDQW
OEVGD\

OEVGD\

OEVKU
 OEVGD\ WRQV\HDU
52*   
12[     
&2     
30     
30     
62[     
/HDGDQGOHDG
FRPSRXQGV
1$ 1$   
92& 1$ 1$   
'XULQJFRQVWUXFWLRQRURSHUDWLRQLIDQ\RIWKHLGHQWLILHGGDLO\6&$*DLUSROOXWDQWWKUHVKROGVDUH H[FHHGHG E\ WKH SURSRVHG 3URMHFW WKHQ WKH SURMHFW¶V DLU TXDOLW\ LPSDFWV PD\ EH FRQVLGHUHG VLJQLILFDQW7KH6&$40'LQGLFDWHVLQ&KDSWHURILWVHandbookWKDWLWFRQVLGHUVDSURMHFWWR EHPLWLJDWHGWRDOHYHORILQVLJQLILFDQFHLILWVSULPDU\HIIHFWVDUHPLWLJDWHGEHORZWKHWKUHVKROGV SURYLGHGDERYH
,QWKH 6'$*LQWKH HYHQWWKDW SURMHFW HPLVVLRQV H[FHHGWKH 6/7V VSHFLILF PRGHOLQJ ZLOO EH UHTXLUHG IRU 12 62 &2 DQG OHDG WR GHPRQVWUDWH WKDW WKH SURMHFW¶V JURXQGOHYHO FRQFHQWUDWLRQV LQFOXGLQJ DSSURSULDWH EDFNJURXQG OHYHOV GR QRW H[FHHG WKH 1$$46 DQG &$$46)RUR]RQHSUHFXUVRUV30DQG30H[FHHGDQFHVRIWKH6/7VUHVXOWVLQDVLJQLILFDQW LPSDFW
 /RFDOL]HG7KUHVKROGVRI6LJQLILFDQFH
/67

,QDGGLWLRQWRWKHPDVVGDLO\WKUHVKROGYDOXHVSUHVHQWHGDERYHWKH6&$40'KDVHVWDEOLVKHGWKH IROORZLQJ WKUHVKROG FULWHULD WR GHWHUPLQH LI D SURMHFW KDV WKH SRWHQWLDO WR FRQWULEXWH WR DQ H[FHHGDQFHRIWKH6WDWH$PELHQW$LU4XDOLW\6WDQGDUGVDVLQFOXGHGLQ7DEOH x &DOLIRUQLD6WDWHKRXU&2VWDQGDUGRISSP
x &DOLIRUQLD6WDWHKRXU&2VWDQGDUGRI
SSP
x &DOLIRUQLD6WDWHKRXU12VWDQGDUGRISSP
x 6&$40'KRXUFRQVWUXFWLRQ30/67RIȝJP
x 6&$40'KRXUFRQVWUXFWLRQ30/67RIȝJP
x 6&$40'KRXURSHUDWLRQDO30/67RIȝJP
x 6&$40'KRXURSHUDWLRQDO30/67RIȝJP
153
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7KH VLJQLILFDQFH RI ORFDOL]HG HPLVVLRQV LPSDFWV GHSHQGV RQ ZKHWKHU DPELHQW OHYHOV LQ WKH YLFLQLW\RIWKHSURMHFWDUHDERYHRUEHORZ6WDWHVWDQGDUGV,QWKHFDVHRI&2DQG12LIDPELHQW OHYHOV DUH EHORZ WKH VWDQGDUGV D SURMHFW LV FRQVLGHUHG WR KDYH D VLJQLILFDQW LPSDFW LI SURMHFW HPLVVLRQVUHVXOWLQDQH[FHHGDQFHRIRQHRUPRUHRIWKHVHVWDQGDUGV,IDPELHQWOHYHOVDOUHDG\ H[FHHG D 6WDWH RU IHGHUDO VWDQGDUG WKHQ SURMHFW HPLVVLRQV DUH FRQVLGHUHG VLJQLILFDQW LI WKH\ LQFUHDVHDPELHQWFRQFHQWUDWLRQVE\DPHDVXUDEOHDPRXQW7KLVZRXOGDSSO\WRERWK30DQG 30
 ERWK RI ZKLFK DUH QRQDWWDLQPHQW SROOXWDQWV  ,Q WKHVH FDVHV ORFDO HPLVVLRQV DUH FRQVLGHUHG VLJQLILFDQW LI WKH\ H[FHHG  ȝJP
 GXULQJ FRQVWUXFWLRQ RU  ȝJP GXULQJ WKH
VXEVHTXHQWRSHUDWLRQRIWKHVLWHERWKDVPHDVXUHGDWWKHSUR[LPDWHVHQVLWLYHUHFHSWRUORFDWLRQV  $GGLWLRQDO,QGLFDWRUV
7KH6&$40'UHFRPPHQGVWKDW³DGGLWLRQDOLQGLFDWRUV´VKRXOGEHXVHGDVVFUHHQLQJFULWHULDZLWK UHVSHFW WR DLU TXDOLW\  $GGLWLRQDO IDFWRUV UHOHYDQW WR WKH 3URMHFW DW KDQG LGHQWLILHG LQ WKH HandbookLQFOXGHWKHIROORZLQJVLJQLILFDQFHFULWHULD

x ,QWHUIHUHQFHZLWKWKHDWWDLQPHQWRIWKH IHGHUDORU6WDWHDPELHQWDLUTXDOLW\VWDQGDUGVE\ HLWKHUYLRODWLQJRUFRQWULEXWLQJWRDQH[LVWLQJRUSURMHFWHGDLUTXDOLW\YLRODWLRQ x (PLWFDUFLQRJHQLFRUWR[LFFRQWDPLQDQWVWKDWH[FHHGWKHPD[LPXPLQGLYLGXDOFDQFHUULVN RILQRQHPLOOLRQ
$JDLQWKH 6&$40'LQGLFDWHVLQ&KDSWHU  RILWVHandbookWKDWLW FRQVLGHUV D SURMHFWWR EH PLWLJDWHGWRDOHYHO RILQVLJQLILFDQFHLILWVHIIHFWVDUHPLWLJDWHG EHORZWKHWKUHVKROGV SURYLGHG DERYH
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH
,PSDFW$4
Conflict with or obstruct implementation of the applicable air quality plan 7KH3URMHFWDFWLRQUHSUHVHQWVWKHSODFHPHQWRIVDQGRQWKHEHDFK7KH3URMHFWZRXOGQRWUHVXOWLQ VLJQLILFDQWORFDOL]HGDLUTXDOLW\LPSDFWVDWWKHSUR[LPDWHUHFHSWRUORFDWLRQVDQGZRXOGLPSOHPHQW WKRVH PHDVXUHV LQFOXGHG LQ WKH $403 FRQVLGHUHG DV IHDVLEOH DQG DV VXFK WKH 3URMHFW LV FRQVLVWHQWZLWKWKHJRDOVRIWKH$403DQGGRHVQRWSUHVHQWDVLJQLILFDQWLPSDFW Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Violate any air quality standard or contribute substantially to an existing or projected air quality violation
$LU TXDOLW\ LPSDFWV PD\ RFFXU GXULQJ VLWH SUHSDUDWLRQ JUDGLQJ DQG VSRUDGLF PDLQWHQDQFH DFWLYLWLHV UHTXLUHG IRULPSOHPHQWDWLRQ RIWKH SURSRVHGODQG XVH0DLQWHQDQFHFRXOGWDNH SODFH RQFH HYHU\  \HDUV GHSHQGLQJ RQ QHHG DQG ILQDQFLDO DELOLW\  0DLQWHQDQFH ZRXOG UHVXOW LQ D UHSHWLWLRQ RI WKH LQLWLDO FRQVWUXFWLRQ DFWLYLWLHV  7KH 3URMHFW LQYROYHV DSSUR[LPDWHO\  DF RI 154
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

UHVXOWDQW GU\ EHDFK QRXULVKPHQW IRUWKH  IW%HDFK:LGWK$OWHUQDWLYH7KHUHDUH QR EXLOGLQJ FRQVWUXFWLRQ RU SDYLQJ DFWLYLWLHV DVVRFLDWHG ZLWK WKLV 3URMHFW  &RQVWUXFWLRQ ZRXOG RFFXU RYHU DSSUR[LPDWHO\ZRUNLQJGD\VRYHUDIRXUPRQWKSHULRG9DOXHVXVHGIRUDQDO\VLVDUHLQFOXGHG LQ$SSHQGL[&
/RFDOL]HG&RQVWUXFWLRQ,PSDFWV
,Q DGGLWLRQ WR WKH PDVV 3URMHFW DQG GDLO\ UHJLRQDO WKUHVKROGV 3URMHFW FRQVWUXFWLRQ KDV WKH SRWHQWLDO WR UDLVH ORFDO DPELHQW SROOXWDQW FRQFHQWUDWLRQV ZKLFK DUH H[LVWLQJ SROOXWDQW FRQFHQWUDWLRQV ZLWKLQ WKH 3URMHFW DUHD QRW LQFOXGLQJ WKH FRQVWUXFWLRQ DFWLYLWLHV RI WKH 3URMHFW

HJ H[KDXVW IURP UHJXODU WUDIILF WRIURP WKH EHDFK DORQJ WKH KLJKZD\V HWF   7KLV FRXOG
SUHVHQWDVLJQLILFDQWLPSDFWLIWKHVHFRQFHQWUDWLRQVZHUHWRH[FHHGWKHDOORZDEOHHPLVVLRQVDVD IXQFWLRQRIUHFHSWRUGLVWDQFHIURPWKHVLWHERXQGDU\
7KHDQDO\VLVPDNHVXVHRIPHWKRGRORJ\LQFOXGHGLQWKH6&$40'Final Localized Significance Threshold Methodology
Methodology
,QDFFRUGDQFHZLWKWKHMethodologyDQDO\VLVLVRQO\WR LQFOXGH H[KDXVW DQG GXVW HPLVVLRQV DVVRFLDWHG ZLWK WKRVH SLHFHV RI HTXLSPHQW WKDW DFWXDOO\ RSHUDWHRQVLWHDQGRPLWVYHKLFOHWULSVWKDWDUHGLVWULEXWHGRYHUDODUJHDUHD,QWKHMethodology WKH6&$40'QRWHVUHFHSWRUORFDWLRQVDV³RIIVLWHORFDWLRQVZKHUHSHUVRQVPD\EHH[SRVHGWRWKH HPLVVLRQV IURP SURMHFW DFWLYLWLHV  5HFHSWRU ORFDWLRQV LQFOXGH UHVLGHQWLDO FRPPHUFLDO DQG LQGXVWULDOODQGXVHDUHDV
DQGDQ\RWKHUDUHDVZKHUHSHUVRQVFDQEHVLWXDWHGIRUDQKRXURUORQJHU DWDWLPH´
,QDFFRUGDQFHZLWKWKHMethodologyUHFHSWRUORFDWLRQVDUHWRFRQVLGHUWKHDFWXDOORFDWLRQRIWKH UHFHSWRUV  ,I WKHVH ORFDWLRQV DUH XQNQRZQ RU YDULHG WKH\ PD\ EH DVVXPHG WR EH ORFDWHG DW GLVWDQFHV RI    DQG  IHHW
   DQG P
 ,QFDVHVZKHUH
SUR[LPDWHUHFHSWRUVPD\EHFORVHUWKDQIW
P
DVSHUWKH MethodologyDYDOXHRIIW

P
LVWR EH XVHGLQWKH DQDO\VLV DV D ZRUVWFDVH VFHQDULR%HFDXVHWKH FORVHVW UHFHSWRUWRWKH 3URMHFWDUHDLVDSSUR[LPDWHO\IW
P
DZD\WKHUHFRPPHQGHG6&$40'GHIDXOWGLVWDQFH
LVXVHGIRUWKLVDQDO\VLVFRPSDULVRQ
,QWKHFDVHV RI&2DQG12WKHSURMHFWHGFRQFHQWUDWLRQLVWKHQDGGHGWRDQDVVXPHGDPELHQW FRQFHQWUDWLRQ LQ RUGHU WR GHWHUPLQH LI WKH &$$46 ZRXOG EH H[FHHGHG  7KLV DPELHQW FRQFHQWUDWLRQ LV VRXUFHDUHD GHSHQGDQW DQG LV EDVHG RQ WKH SHDN YDOXH REVHUYHG RYHU WKH ODVW WKUHH \HDUV RI DFFXPXODWHG GDWD DW WKH QHDUHVW DLU PRQLWRULQJ VWDWLRQ SUHYLRXVO\ SURYLGHG LQ
7DEOH
%HFDXVH30DQG30DUHQRQDWWDLQPHQWSROOXWDQWVQRDPELHQWFRQFHQWUDWLRQLV DGGHG  ,QVWHDG LQ ERWK FDVHV D VKRUWWHUP FRQVWUXFWLRQ VWDQGDUG GHILQHG DV D PHDVXUDEOH LQFUHDVHRIȝJP
LVWREHDSSOLHGDWWKHSUR[LPDWHVHQVLWLYHUHFHSWRUORFDWLRQV7DEOH SUHVHQWV WKH GDLO\ SURMHFWHG HPLVVLRQV IURP RQVLWH FRQVWUXFWLRQ DV ZHOO DV WKH SURMHFWHG FRQFHQWUDWLRQVDWWKHYDULRXVGHIDXOWDQGDFWXDOUHFHSWRUGLVWDQFHV1RWHWKDWDOOFRQFHQWUDWLRQV DUHZLWKLQWKHLUUHVSHFWLYHFULWHULDDQGWKHLPSDFWLVOHVVWKDQVLJQLILFDQW 155
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH
/RFDOL]HG&RQVWUXFWLRQ(PLVVLRQV&RQFHQWUDWLRQV
'LVWDQFH
&2

+U
&RQF

&2

+U
&RQF

12

+U
&RQF

30

+U
&RQF

30

+U
&RQF

3HDN'DLO\2QVLWH
(PLVVLRQV
OEGD\
  


 
&RQFHQWUDWLRQDWP     
&RQFHQWUDWLRQDWP     
&RQFHQWUDWLRQDWP

1HDUHVW$FWXDO5HFHSWRU
     
&RQFHQWUDWLRQDWP     
&RQFHQWUDWLRQDWP     
&RQFHQWUDWLRQDWP    
 
$PELHQW$LU4XDOLW\
6WDQGDUG SSP
SSP SSP ȝJP
 ȝJP
([FHHGV6WDQGDUG" 12 12 12 12 12

&2DQG12DUHLQSSP30DQG30DUHLQȝJP  ,QFOXGHVDEDFNJURXQGFRQFHQWUDWLRQRISSP

,QFOXGHVDEDFNJURXQGFRQFHQWUDWLRQRISSP

,QFOXGHVDEDFNJURXQGFRQFHQWUDWLRQRISSP
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is in non-attainment under an applicable Federal or State ambient air quality standards.
6LWH&RQVWUXFWLRQ,PSDFWV
(PLVVLRQVDVVRFLDWHGZLWKRQVKRUHKHDY\HTXLSPHQWDUHEDVHGRQWKH2II5RDGPRGHOUXQV DV SURYLGHG E\WKH6&$40' RQWKHLU ,QWHUQHWZHE VLWH IRU \HDU FRQVWUXFWLRQHTXLSPHQW 7KH6&$40'SUHVHQWVHPLVVLRQVIRUPRVWSLHFHVRIKHDY\FRQVWUXFWLRQHTXLSPHQWDWGLIIHULQJ KRUVHSRZHUOHYHOVJHQHUDWHGXVLQJWKH2II5RDG&RPSXWHU0RGHO7KHDFWXDOKRUVHSRZHURI WKHDQWLFLSDWHGSLHFHVRIHTXLSPHQW
HJ&DW'GR]HUVDWKSDQG
)URQWHQGORDGHUVDW
 KS
 ZHUH WKHQ H[WUDSRODWHG IURP WKH WZR SLHFHV RI VLPLODU HTXLSPHQW ZLWK WKH QHDUHVW KRUVHSRZHUUDWLQJVDERYHDQGEHORZWKHH[SHFWHGSLHFHRIHTXLSPHQW 156
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

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
,QDFFRUGDQFHZLWK5XOHWKH6&$40'UHTXLUHVWKDWFRQWUDFWRUVLPSOHPHQW%HVW$YDLODEOH &RQWURO 7HFKQRORJ\
%$&7
 IRU FRQVWUXFWLRQ DFWLYLWLHV  5XOH  LGHQWLILHV D VHW RI VSHFLILF PHDVXUHV IRUSURMHFWVOHVVWKDQDFUHV7KHVH UHTXLUHPHQWVDVDSSOLFDEOHWRWKLV3URMHFWDUH LQFOXGHGLQ7DEOH1RWHWKDWWKHVHPHDVXUHVDUHUHJXODWRU\UHTXLUHPHQWVDQGDVVXFKGRQRW FRQVWLWXWHPLWLJDWLRQXQGHU&(4$7KHFRQGLWLRQVLQFOXGHGLQ7DEOHDSSO\WRFRQVWUXFWLRQ DFWLYLWLHVFRQGXFWHGGXULQJQRUPDOZLQGFRQGLWLRQV
LHZLWKZLQGJXVWVOHVVWKDQPSK
7KH
FRQWLQJHQF\ PHDVXUHV LQFOXGHG LQ 7DEOH  VKDOO EH DSSOLHG WR WKRVH SHULRGV ZKHQ LQVWDQWDQHRXVZLQGJXVWVPHHWRUH[FHHGPSK
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
157
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH
5HTXLUHG%HVW$YDLODEOH&RQWURO0HDVXUHVIRU)XJLWLYH'XVW

$SSOLFDEOHWR$OO&RQVWUXFWLRQ$FWLYLW\6RXUFHV

6RXUFH
&DWHJRU\
&RQWURO0HDVXUHV *XLGDQFH
'LVWXUEHGVRLO x 6WDELOL]HGLVWXUEHGVRLOWKURXJKRXW
WKHFRQVWUXFWLRQVLWH
DQG
x 6WDELOL]HGLVWXUEHGVRLOEHWZHHQ
VWUXFWXUHV
x /LPLWYHKLFXODUWUDIILFDQG
GLVWXUEDQFHVRQVRLOVZKHUH

SRVVLEOH

x ,ILQWHULRUEORFNZDOOVDUHSODQQHG
LQVWDOODVHDUO\DVSRVVLEOH

x $SSO\ZDWHURUDVWDELOL]LQJDJHQW
LQVXIILFLHQWTXDQWLWLHVWRSUHYHQW
WKHJHQHUDWLRQRIYLVLEOHGXVW
SOXPHV
DQG
x 7KLVPHDVXUHDSSOLHVWRERWK
LQDFWLYHDQGDFWLYHVLWHVGXULQJ
ZRUNGD\VZHHNHQGVKROLGD\VDQG
ZLQG\FRQGLWLRQV
(DUWKPRYLQJ
DFWLYLWLHV
x 3UHDSSO\ZDWHUWRGHSWKRI
SURSRVHGFXWV

x 5HDSSO\ZDWHUDVQHFHVVDU\WR
PDLQWDLQVRLOVLQDGDPSFRQGLWLRQ
DQGWRHQVXUHWKDWYLVLEOHHPLVVLRQV
GRQRWH[FHHGIHHWLQDQ\

GLUHFWLRQ

x 6WDELOL]HVRLOVRQFHHDUWKPRYLQJ
DFWLYLWLHVDUHFRPSOHWH
DQG
x /LPLWVSHHGRIHDUWKPRYLQJ
HTXLSPHQWWRPSK
x *UDGHHDFKSURMHFWSKDVH
VHSDUDWHO\WLPHGWRFRLQFLGHZLWK
FRQVWUXFWLRQSKDVH

x 8SZLQGIHQFLQJFDQSUHYHQW
PDWHULDOPRYHPHQWRQVLWH
DQG
x $SSO\ZDWHURUDVWDELOL]LQJDJHQW
LQVXIILFLHQWTXDQWLWLHVWRSUHYHQW
WKHJHQHUDWLRQRIYLVLEOHGXVW
SOXPHV
6WDJLQJDUHDV x 6WDELOL]HVWDJLQJDUHDVGXULQJXVH

DQG
x 6WDELOL]HVWDJLQJDUHDVRLOVDW
SURMHFWFRPSOHWLRQ
x /RFDWHFRQVWUXFWLRQHTXLSPHQWDQG
VWDJLQJ]RQHVDZD\IURPVHQVLWLYH
UHFHSWRUVDQGIUHVKDLULQWDNHVWR
EXLOGLQJVDQGDLUFRQGLWLRQHUV
x /LPLWVL]HRIVWDJLQJDUHD

x /LPLWYHKLFOHVSHHGVWRPLOHV
SHUKRXU
NLORPHWHUVSHUKRXU


DQG
x /LPLWQXPEHUDQGVL]HRIVWDJLQJ
DUHDHQWUDQFHVH[LWV
3DYHGURDG
WUDFNRXW
x &RYHUDOOKDXOYHKLFOHV x &RPSO\ZLWKWKHYHKLFOHIUHHERDUG UHTXLUHPHQWVRI6HFWLRQRI
WKH&DOLIRUQLD9HKLFOH&RGHIRU
158
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

ERWKSXEOLFDQGSULYDWHURDGV
7UDIILFDUHDVIRU
FRQVWUXFWLRQ
DFWLYLWLHV
x 6WDELOL]HDOORIIURDGWUDIILFDQG
SDUNLQJDUHDV

x 6WDELOL]HDOOKDXOURXWHV

x 'LUHFWFRQVWUXFWLRQWUDIILFRYHU
HVWDEOLVKHGKDXOURXWHV
DQG
x /LPLWVSHHGVWRPLOHVSHUKRXU

PSK

x $SSO\JUDYHOSDYLQJWRDOOKDXO
URXWHVDVVRRQDVSRVVLEOHWRDOO
IXWXUHURDGZD\DUHDV
DQG
x %DUULHUVFDQEHXVHGWRHQVXUH
YHKLFOHVDUHXVHGRQO\RQ
HVWDEOLVKHGSDUNLQJDUHDVKDXO
URXWHV
7DEOH
&RQWLQJHQF\&RQWURO0HDVXUHVIRU)XJLWLYH'XVW'XULQJ+LJK:LQGVLQ([FHVVRI03+ )XJLWLYH'XVW6RXUFH&DWHJRU\ &RQWURO0HDVXUHV
(DUWKPRYLQJ x &HDVHDOODFWLYHRSHUDWLRQV
RU
x $SSO\ZDWHUWRVRLOQRWPRUHWKDQPLQXWHVSULRUWR PRYLQJVXFKVRLO
'LVWXUEHGVXUIDFHDUHDV x $SSO\ZDWHUWRDOOXQVWDELOL]HGGLVWXUEHGDUHDVWKUHHWLPHV SHUGD\,IWKHUHLVDQ\HYLGHQFHRIZLQGGULYHQIXJLWLYH GXVWZDWHULQJIUHTXHQF\LVLQFUHDVHGWRDPLQLPXPRI
IRXUWLPHVSHUGD\
8QSDYHGURDGV x $SSO\ZDWHUWZLFHSHUKRXUGXULQJDFWLYHRSHUDWLRQ 2SHQVWRUDJHSLOHV x $SSO\ZDWHUWZLFHSHUKRXU
RU
x ,QVWDOOWHPSRUDU\FRYHULQJV
$OOFDWHJRULHV ([HFXWLYH2IILFHUDQGWKH86(3$DVHTXLYDOHQWWRWKH PHWKRGVVSHFLILHGLQWKLVWDEOHPD\EHXVHG
,QWKLVFDVHWKHWRWDOQXPEHURIYHKLFOHVZDVUDLVHGIURPWRWRDFFRXQWIRUWKHXVHRIWZR RQVLWHSLFNXSWUXFNVGXULQJWKHGD\$FWXDOPLOHVIRUWKHVHWZRSLFNXSVZRXOGEHOHVVWKDQWKH PLOH YDOXH XVHG LQ WKH DQDO\VLV EXW WKHVH HPLVVLRQV DUH PLQLPDO UHODWLYH WR WKRVH RI WKH RIIVKRUH DQG KHDY\ HTXLSPHQW DQG PRUH DFFXUDWH GDWD DV WR WKHLU XVH ZRXOG QRW FKDQJH WKH RXWFRPHRIWKHDQDO\VLV
7KHIW%HDFK:LGWK$OWHUQDWLYHZRXOGXVHWKHVDPHOHYHORIHTXLSPHQWRQDGDLO\EDVLV$V VKRZQLQ7DEOH12[52*DQG30HPLVVLRQVIRURQVKRUHVRXUFHVZRXOGQRWH[FHHG WKHLUUHVSHFWLYHWKUHVKROGVRIDQGSRXQGVSHUGD\2WKHURQVKRUHVRXUFHVLQWKH SURMHFWDUHDLQFOXGHWKHUDLOURDGRSHUDWLRQV
DQRIIURDGVRXUFH

SURMHFWHPLVVLRQVZRXOGQRW
FXPXODWLYHO\FRQWULEXWHWRWKHVHEDFNJURXQGHPLVVLRQVGXHWRWKHLQIUHTXHQWVWRSVDWWKLV SDUWLFXODUXQVWDIIHGSODWIRUPVWDWLRQ3URMHFWHPLVVLRQVWKHUHIRUHZRXOGQRWEHVLJQLILFDQW)RU LQIRUPDWLRQDOSXUSRVHVWKHRIIVKRUHVRXUFHHPLVVLRQVZRXOGEHGLYLGHGLQWRSHUFHQWLQWKH 6'$%DQGSHUFHQWLQWKH6&$%0RGHOUHVXOWVDSSHDULQ$SSHQGL[&%HFDXVHWKLV DOWHUQDWLYHZLOOQRWH[FHHGFULWHULDSROOXWDQWWKUHVKROGVQRFXPXODWLYHO\FRQVLGHUDEOHQHWLQFUHDVH RIDQ\FULWHULDSROOXWDQWZRXOGEHDQWLFLSDWHG,QDGGLWLRQWKLVDOWHUQDWLYHGRHVQRWH[FHHGWKH 159
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


JHQHUDOFRQIRUPLW\de minimisOHYHOVLGHQWLI\LQJLWDVDFRQIRUPLQJSURMHFWDQGGRHVQRWQHHGD &RQIRUPLW\'HWHUPLQDWLRQ
Mitigation Measures
 6LWH FRQVWUXFWLRQ PD\ DSSURDFK WKH GDLO\ WKUHVKROG IRU 12[ HPLVVLRQV $SSOLFDEOH PLWLJDWLRQ IRU 12[ LV LQFOXGHG EHORZ  7KH LQFOXGHG PHDVXUHV ZRXOG DOVR UHGXFH 52*DQG30IRURQVKRUHKHDY\HTXLSPHQWH[KDXVW
00$4
 7KH FRQVWUXFWLRQ FRQWUDFWRUV VKDOO XVH RQVKRUH KHDY\ HTXLSPHQW WKDW PHHWV 7LHU ,, RU KLJKHU DLU SROOXWDQW HPLVVLRQ VWDQGDUGV ZKHUH WKHVH VWDQGDUGV DUH DSSOLFDEOH DQG HTXLSPHQWDYDLODEOH
7DEOH&RPSDULVRQRI8QPLWLJDWHG3URMHFWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD 9DOXHVIRUIW%HDFK:LGWK$OWHUQDWLYH
&2 12[ 52* 62;
7RWDO
30
7RWDO
30 &2
/EV'D\
2Q6KRUH
(TXLSPHQW 

  
 
'XVW       
2Q6KRUH9HKLFOHV       

2II6KRUH6RXUFHV   
  

$OO6RXUFHV     
  

2Q6KRUH6RXUFHV 
     
'DLO\7KUHVKROG       17
6LJQLILFDQW" 12 12 12 12 12 12 12
7RQV\HDUSUHVHQWHGIRU&RQIRUPLW\SXUSRVHV
2Q6KRUH6RXUFHV       

'HPLQLPLVOHYHO    17  17 17
6LJQLILFDQW" 12 12 12 --- 12 ---  
$VVXPHVSHUFHQWFRQWUROHIILFLHQF\IRUZHWPDWHULDO 
%DVHGRQ

SHUFHQWRIWKH30IRURQURDGHPLVVLRQV
SHUFHQWRIWKH30IRURIIURDGHPLVVLRQVDQGSHUFHQW RIWKH30IRUIXJLWLYHGXVW

17±1R7KUHVKROG

7KUHVKROGVDSSO\RQO\WRRQVKRUHVRXUFHV
*HQHUDOFRQIRUPLW\de minimisOHYHOV
00$4
 $OO KHDY\ HTXLSPHQW VKDOO EH PDLQWDLQHG DQG WXQHG SHU PDQXIDFWXUHU V
VSHFLILFDWLRQVWR SHUIRUPDW&DOLIRUQLD$LU5HVRXUFHV%RDUG &$5%
DQGRU(3$FHUWLILFDWLRQ
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
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

&2 DQG 52* OHYHOV DVVRFLDWHG ZLWK RQVKRUH KHDY\ HTXLSPHQW FRQVWUXFWLRQ ZRXOG DOVR EH UHGXFHG ,IWKH  SHUFHQW UHGXFWLRQDVVRFLDWHGZLWK12[FRQWUROLVDOVRDSSOLHGWR52* RQ VKRUHKHDY\HTXLSPHQW52*ZRXOGEHUHGXFHGIURPWRSRXQGVSHUGD\ 7DEOHSUHVHQWVWKHUHVXOWVRIWKHPLWLJDWLRQ0RGHOLQJGHWDLOVDUHLQFOXGHGDV$SSHQGL[& 7DEOH&RPSDULVRQRI0LWLJDWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHVIRUWKH IW%HDFK:LGWK$OWHUQDWLYH
&2 12[ 52* 62;
7RWDO
30
7RWDO
30 &2
/EV'D\
2Q6KRUH(TXLSPHQW  
  
 
'XVW       
2Q6KRUH9HKLFOHV       

2II6KRUH6RXUFHV   
  

$OO6RXUFHV     
 
 

2Q6KRUH6RXUFHV    
  
'DLO\7KUHVKROG       17
6LJQLILFDQW" 12 12 12 12 12 12 12
7RQV\HDUSUHVHQWHGIRU&RQIRUPLW\SXUSRVHV
2Q6KRUH6RXUFHV       

'HPLQLPLVOHYHO    17  17 17
6LJQLILFDQW" 12 12 12  12   
$VVXPHVSHUFHQWFRQWUROHIILFLHQF\IRUZHWPDWHULDO 
%DVHGRQ

SHUFHQWRIWKH30IRURQURDGHPLVVLRQV
SHUFHQWRIWKH30IRURIIURDGHPLVVLRQVDQG
SHUFHQWRIWKH30IRUIXJLWLYHGXVW

17±1R7KUHVKROG

%DVHGRQZRUNLQJGD\V

%DVHGRQZRUNLQJGD\V

7KUHVKROGVDSSO\RQO\WRRQVKRUHVRXUFHV
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Expose sensitive receptors to substantial air pollutant concentrations $VGHPRQVWUDWHGLQ6HFWLRQGDLO\HPLVVLRQVIRU&212[30DQG30ZHUHPRGHOHG WR GHWHUPLQH WKHLU FRQFHQWUDWLRQ DQG FRQWULEXWLRQ WR WKH DPELHQW FRQFHQWUDWLRQV ZLWKLQ WKH 3URMHFW YLFLQLW\ DQG DV VKRZQ LQ 7DEOH  WKH FRQFHQWUDWLRQV RI HPLVVLRQV DUH EHORZ WKH ORFDOL]HG VLJQLILFDQFH WKUHVKROG FULWHULD  $V VXFK FRQVWUXFWLRQ DFWLYLWLHV ZLOO QRW UHVXOW LQ SRWHQWLDOH[SRVXUHRIVHQVLWLYHUHFHSWRUVWRVXEVWDQWLDOSROOXWDQWFRQFHQWUDWLRQV Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
161
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,PSDFW$4
Create objectionable odors affecting a substantial number of people 3URMHFWFRQVWUXFWLRQZRXOGLQYROYHWKHXVHRIKHDY\HTXLSPHQWFUHDWLQJH[KDXVWSROOXWDQWVIURP RQVLWH HDUWK :LWK UHJDUGV WR QXLVDQFH RGRUV DQ\ DLU TXDOLW\ LPSDFWV ZLOO EH FRQILQHG WR WKH LPPHGLDWH YLFLQLW\ RI WKH HTXLSPHQW LWVHOI  %\ WKH WLPH VXFK HPLVVLRQV UHDFK DQ\ VHQVLWLYH UHFHSWRU VLWHV DZD\ IURP WKH 3URMHFW VLWH WKH\ ZLOO EH GLOXWHG WR ZHOO EHORZ DQ\ OHYHO RI DLU TXDOLW\FRQFHUQ
6HGLPHQWVWREHSODFHGRQWKHEHDFKZRXOGQRWFRQWDLQDKLJKOHYHORIRUJDQLFGHEULVDQGWKXV ZKLOHDQRGRUPD\EHQRWHGLWZRXOGEHW\SLFDORIDQ\RGRUDVVRFLDWHGZLWKORZWLGHFRQGLWLRQV 7KLVLPSDFWLVWKHUHIRUHFRQVLGHUHGQRWVLJQLILFDQW Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Generate greenhouse gases
$WWKLVWLPHJUHHQKRXVHJDVHV
SULPDULO\&2
DUHQRWUHJXODWHGDVDFULWHULDSROOXWDQWDQGWKHUH
DUHQRVLJQLILFDQFHFULWHULDIRUWKHVHHPLVVLRQV)XUWKHUPRUHWKH)LQDO$403GRHVQRWVHW &(4$ WDUJHWV WKDW FDQ EH XVHG WR GHWHUPLQH DQ\ SRWHQWLDO WKUHVKROG YDOXHV  1HYHUWKHOHVV LQ RUGHUWRSURYLGHGHFLVLRQPDNHUVZLWKDVPXFKLQIRUPDWLRQDVSRVVLEOHWKLVDQDO\VLVTXDQWLILHV WR WKH H[WHQW IHDVLEOH SRWHQWLDO JUHHQKRXVH JDV HPLVVLRQV DVVRFLDWHG ZLWK WKH SURSRVHG GHYHORSPHQW
&RQVWUXFWLRQ DFWLYLWLHV ZRXOG FRQVXPH IXHO DQG UHVXOW LQ WKH JHQHUDWLRQ RI JUHHQKRXVH JDVHV &RQVWUXFWLRQ &2 HPLVVLRQV DVVRFLDWHG ZLWK WKH XVH RI RQVKRUH KHDY\ HTXLSPHQW DUH DV SURMHFWHG E\ WKH 2II5RDG PRGHO LQFOXGHG RQ WKH 6&$40' ,QWHUQHW ZHE VLWH  &2 HPLVVLRQV IRUWKH RFHDQJRLQJ YHVVHOV DUH EDVHG RQ IXHO XVH IDFWRUVLQFOXGHGLQ 7DEOH $ (

)XHO8VH(VWLPDWHV3HU+RUVHSRZHU+RXU
RIWKH6&$40'HandbookDQG&2HPLVVLRQVDUH
EDVHGRQWKH%$$40'GRFXPHQW6RXUFH ,QYHQWRU\RI%D\$UHD*UHHQKRXVH*DV(PLVVLRQV 7DEOH%
*HQHUDOL]HG*+*(PLVVLRQ)DFWRUV
/EV8VDJH8QLW
DQGDUHLQFOXGHGLQ7DEOH,Q
DFFRUGDQFHZLWKWKHFRQVWUXFWLRQVFKHGXOHDSSUR[LPDWHO\ OEV

WRQV
RI&2
ZRXOG EH SURGXFHG GXULQJ WKH  ZRUNLQJ GD\V DVVRFLDWHG ZLWK WKH  IW %HDFK :LGWK $OWHUQDWLYH
,QDFFRUGDQFHZLWKWKH $403WKHHPLVVLRQOHYHOVLQ&DOLIRUQLDDUHHVWLPDWHGWR EH  PLOOLRQPHWULFWRQV
VKRUWWRQV
&2HTXLYDOHQWIRU$WDSSUR[LPDWHO\
WRQV
WKH  IW%HDFK:LGWK $OWHUQDWLYH UHSUHVHQWV DERXW  SHUFHQW RIWKLV 6WDWH¶V DQQXDO&2 HPLVVLRQVEXGJHW
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
162
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH
,PSDFW$4
Conflict with or obstruct implementation of the applicable air quality plan 7KH3URMHFWDFWLRQUHSUHVHQWVWKHSODFHPHQWRIVDQGRQWKHEHDFK7KH3URMHFWZRXOGQRWUHVXOWLQ VLJQLILFDQWORFDOL]HGDLUTXDOLW\LPSDFWVDWWKHSUR[LPDWHUHFHSWRUORFDWLRQVDQGZRXOGLPSOHPHQW WKRVH PHDVXUHV LQFOXGHG LQ WKH $403 FRQVLGHUHG DV IHDVLEOH DQG DV VXFK WKH 3URMHFW LV FRQVLVWHQWZLWKWKHJRDOVRIWKH$403DQGGRHVQRWSUHVHQWDVLJQLILFDQWLPSDFW Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Violate any air quality standard or contribute substantially to an existing or projected air quality violation
$VZLWKWKHIW%HDFK:LGWK$OWHUQDWLYHDLUTXDOLW\LPSDFWVPD\RFFXUGXULQJVLWHSUHSDUDWLRQ JUDGLQJ DQG VSRUDGLFPDLQWHQDQFH DFWLYLWLHV UHTXLUHG IRULPSOHPHQWDWLRQ RIWKH SURSRVHGODQG XVH0DLQWHQDQFHFRXOGWDNHSODFHRQFHHYHU\\HDUVGHSHQGLQJRQQHHGDQGILQDQFLDODELOLW\ 0DLQWHQDQFH ZRXOG UHVXOW LQ D UHSHWLWLRQ RI WKH LQLWLDO FRQVWUXFWLRQ DFWLYLWLHV  7KH 3URMHFW LQYROYHV DSSUR[LPDWHO\
 DF RI UHVXOWDQW GU\ EHDFK QRXULVKPHQW IRU WKH  IW %HDFK :LGWK $OWHUQDWLYH  1R EXLOGLQJ FRQVWUXFWLRQ RU SDYLQJ DFWLYLWLHV DUH DVVRFLDWHG ZLWK WKLV 3URMHFW &RQVWUXFWLRQ ZRXOG RFFXU RYHU DSSUR[LPDWHO\  ZRUNLQJ GD\V RYHU D IRXU PRQWK SHULRG 9DOXHVXVHGIRUDQDO\VLVDUHLQFOXGHGLQ$SSHQGL[&
/RFDOL]HG&RQVWUXFWLRQ,PSDFWV
$VZLWKWKH IW%HDFK:LGWK$OWHUQDWLYH3URMHFWFRQVWUXFWLRQKDVWKHSRWHQWLDOWR UDLVHORFDO DPELHQWSROOXWDQWFRQFHQWUDWLRQVZKLFKDUHH[LVWLQJSROOXWDQWFRQFHQWUDWLRQVZLWKLQWKH3URMHFW DUHD QRWLQFOXGLQJWKH FRQVWUXFWLRQ DFWLYLWLHV RIWKH 3URMHFW HJ H[KDXVW IURP UHJXODUWUDIILF
WRIURP WKH EHDFK DORQJ WKH KLJKZD\V HWF
  7KLV FRXOG SUHVHQW D VLJQLILFDQW LPSDFW LI WKHVH FRQFHQWUDWLRQVZHUHWRH[FHHGWKHDOORZDEOHHPLVVLRQVDVD IXQFWLRQ RI UHFHSWRU GLVWDQFH IURP WKH VLWH ERXQGDU\  %HFDXVH FRQVWUXFWLRQ HTXLSPHQW ZLOO EH VLPLODU WR WKH  IW %HDFK:LGWK $OWHUQDWLYHRQDGDLO\EDVLVDOOFRQFHQWUDWLRQVDUHZLWKLQWKHLUUHVSHFWLYHFULWHULDDQGWKHLPSDFW LVOHVVWKDQVLJQLILFDQW
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is in non-attainment under an applicable Federal or State ambient air quality standards.
163
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

6LWH&RQVWUXFWLRQ,PSDFWV
$VZLWKWKHIW%HDFK:LGWK$OWHUQDWLYHHPLVVLRQVDVVRFLDWHGZLWKRQVKRUHKHDY\HTXLSPHQW DUH EDVHG RQWKH2II5RDGPRGHO UXQVDV SURYLGHG E\WKH6&$40' RQWKHLU ,QWHUQHWZHE VLWH IRU \HDU  FRQVWUXFWLRQ HTXLSPHQW7KHDFWXDO KRUVHSRZHU RIWKHDQWLFLSDWHG SLHFHV RI HTXLSPHQW
HJ&DW'GR]HUVDWKSDQG
)URQWHQGORDGHUVDWKS
IRUWKLV3URMHFW
ZHUHWKHQ H[WUDSRODWHG IURPWKHWZR SLHFHV RI VLPLODU HTXLSPHQW ZLWKWKH QHDUHVW KRUVHSRZHU UDWLQJVDERYHDQGEHORZWKHH[SHFWHGSLHFHRIHTXLSPHQW6RPHGXVWZLWKLWVDWWHQGDQW30DQG 30ZRXOG DOVR EH JHQHUDWHG IURPWKH RQVKRUHPRYHPHQW RI VDQG7KH  IW%HDFK:LGWK $OWHUQDWLYHZRXOGUHVXOWLQDSSUR[LPDWHO\
DFGU\EHDFK7KHDUHDRIGLVWXUEDQFHZRXOGRFFXU
RYHUDSSUR[LPDWHO\ZRUNGD\V
7KH 85%(0,6 PRGHO GHYHORSHG WR GHWHUPLQH WKH HPLVVLRQV DVVRFLDWHG ZLWK ODQGXVH SURMHFWVHVWLPDWHVWKDWHDFKDFUHGLVWXUEHGJHQHUDWHVSRXQGVRI30DQGWKDWSHUFHQWRIWKH FRQVWUXFWLRQDUHDLVDFWLYHDWDQ\RQHWLPH$VVXFKXVLQJWKH85%(0,6PRGHOZRXOGUHVXOWLQ  DFUH RI GLVWXUEDQFH GDLO\ IRU WKH  IW %HDFK :LGWK $OWHUQDWLYH  $V D FRQVHUYDWLYH DSSURDFK WKLV DQDO\VLV DVVXPHV D GLVWXUEDQFH RI DSSUR[LPDWHO\  DFUHV GDLO\ DQG LQ WKH DEVHQFHRIDQ\GXVWVXSSUHVVLRQSRXQGVRI30
/LNHDOOSURMHFWVLQWKH6RXWK&RDVW$LU%DVLQWKHFRQVWUXFWLRQZRXOGEHVXEMHFWWR6&$40' 5XOHUHTXLULQJGXVWFRQWURO7KH85%(0,6PRGHOHVWLPDWHVWKDWWZLFHGDLO\ZDWHULQJ UHGXFHGWKHGXVWE\DERXWSHUFHQWZKHUHDVWKULFHGDLO\ZDWHULQJUDLVHVWKLVYDOXHWRDERXW SHUFHQW  7KH PDWHULDOV WR EH SODFHG RQ WKH EHDFK DUH RFHDQ ERWWRP DQG DUH SXPSHG RQWR WKH EHDFKDVDVOXUU\%HFDXVHWKHPDWHULDOLVWRWDOO\VDWXUDWHGOLWWOHLIDQ\GXVWLVUHOHDVHGGXULQJLWV PRYHPHQW$VVXFKDFRQWUROHIILFLHQF\YDOXHRISHUFHQWZDVDVVXPHGIRUGXVWVXSSUHVVLRQ DVDFRQVHUYDWLYHHVWLPDWH
'DWD DQG HPLVVLRQV IRU WKH ZDWHUFUDIW DUH EDVHG RQ GDWD VXSSOLHG E\ 0RIIDWW  1LFKRO  7KH LQLWLDO EHDFK QRXULVKPHQW ZRXOG LQYROYH D EDUJH DQG DVVRFLDWHG WRZ ERDWV WUDYHOLQJ IURP 2FHDQVLGH+DUERUWRWKH3URMHFWVLWH7KHKRSSHUGUHGJHZLOOEHILOOHGDWWKHGHVLJQDWHGERUURZ VLWHDSSUR[LPDWHO\RQHPLOHRIIVKRUHRI2FHDQVLGHDQGKDXOHGDSSUR[LPDWHO\PLOHV NP
WR
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
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

E\ WKH WRWDO QXPEHU RI GDLO\ PLOHV E\ YHKLFOH W\SH DQG D JUDPVSHUPLOH E\ YHKLFOH W\SH LV GHWHUPLQHG0HPEHUVRIWKHFRQVWUXFWLRQFUHZDUHHDFKHVWLPDWHGWRWUDYHOPLOHVURXQGWULS LQ DFFRUGDQFH ZLWK WKH 85%(0,6 FRPSXWHU PRGHO IRU KRPHWRZRUN WUDYHO GLVWDQFHV LQ 2UDQJH&RXQW\
,QWKLVFDVHWKHWRWDOQXPEHURIYHKLFOHVZDVUDLVHGIURPWRWRDFFRXQWIRUWKHXVHRIWZR RQVLWHSLFNXSWUXFNVGXULQJWKHGD\$FWXDOPLOHVIRUWKHVHWZRSLFNXSVZRXOGEHOHVVWKDQWKH PLOH YDOXH XVHG LQ WKH DQDO\VLV EXW WKHVH HPLVVLRQV DUH PLQLPDO UHODWLYH WR WKRVH RI WKH RIIVKRUH DQG KHDY\ HTXLSPHQW DQG PRUH DFFXUDWH GDWD DV WR WKHLU XVH ZRXOG QRW FKDQJH WKH RXWFRPHRIWKHDQDO\VLV
7KHIW%HDFK:LGWK$OWHUQDWLYHZRXOGXVHWKHVDPHOHYHORIHTXLSPHQWRQDGDLO\EDVLV$V VKRZQLQ7DEOH12[52*DQG30HPLVVLRQVIRURQVKRUHVRXUFHVZRXOGQRWH[FHHGWKHLU UHVSHFWLYHWKUHVKROGVRIDQGSRXQGVSHUGD\2WKHURQVKRUHVRXUFHVLQWKHSURMHFW DUHD LQFOXGH WKH UDLOURDG RSHUDWLRQV
DQ RIIURDG VRXUFH

 SURMHFW HPLVVLRQV ZRXOG QRW
FXPXODWLYHO\ FRQWULEXWH WR WKHVH EDFNJURXQG HPLVVLRQV GXH WR WKH LQIUHTXHQW VWRSV DW WKLV SDUWLFXODU XQVWDIIHG SODWIRUP VWDWLRQ  3URMHFW HPLVVLRQV WKHUHIRUH ZRXOG QRW EH VLJQLILFDQW 0RGHOUHVXOWVDSSHDULQ$SSHQGL[&%HFDXVHWKLVDOWHUQDWLYHZLOOQRWH[FHHGFULWHULDSROOXWDQW WKUHVKROGV QR FXPXODWLYHO\ FRQVLGHUDEOH QHW LQFUHDVH RI DQ\ FULWHULD SROOXWDQW ZRXOG EH DQWLFLSDWHG
Mitigation Measures
,PSOHPHQW00$4DQG00$4
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de minimisOHYHOVLGHQWLI\LQJLWDVDFRQIRUPLQJSURMHFW DQGGRHVQRWUHTXLUHD&RQIRUPLW\'HWHUPLQDWLRQ
&2DQG52*OHYHOVDVVRFLDWHGZLWKRQVKRUHKHDY\HTXLSPHQWFRQVWUXFWLRQZRXOGDOVREH UHGXFHG,IWKHSHUFHQWUHGXFWLRQDVVRFLDWHGZLWK12[FRQWUROLVDOVRDSSOLHGWR52* RQVKRUHKHDY\HTXLSPHQW52*ZRXOGEHUHGXFHGIURPWRSRXQGVSHUGD\ 7DEOHSUHVHQWVWKHUHVXOWVRIWKHPLWLJDWLRQ0RGHOLQJGHWDLOVDUHLQFOXGHGDV$SSHQGL[& Summary of Significant Unavoidable Impacts
1RQH
165
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

7DEOH&RPSDULVRQRI8QPLWLJDWHG3URMHFWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD 9DOXHVIRUIW%HDFK:LGWK$OWHUQDWLYH
&2 12[ 52* 62;
7RWDO
30
7RWDO
30 CO2
/EV'D\
2Q6KRUH(TXLSPHQW 

  
 
'XVW       
2Q6KRUH9HKLFOHV       

2II6KRUH6RXUFHV   
  

$OO6RXUFHV     
  

2Q6KRUH6RXUFHV 
     
'DLO\7KUHVKROG       17
6LJQLILFDQW" 12 12 12 12 12 12 12
7RQV\HDUSUHVHQWHGIRU&RQIRUPLW\SXUSRVHV
2Q6KRUH6RXUFHV       
'HPLQLPLVOHYHO    17  17 17
6LJQLILFDQW" 12 12 12 --- 12 ---  
$VVXPHVSHUFHQWFRQWUROHIILFLHQF\IRUZHWPDWHULDO 
%DVHGRQ

SHUFHQWRIWKH30IRURQURDGHPLVVLRQV
SHUFHQWRIWKH30IRURIIURDGHPLVVLRQVDQGSHUFHQW RIWKH30IRUIXJLWLYHGXVW

17±1R7KUHVKROG

7KUHVKROGVDSSO\RQO\WRRQVKRUHVRXUFHV
*HQHUDOFRQIRUPLW\de minimisOHYHOV
7DEOH&RPSDULVRQRI0LWLJDWHG&RQVWUXFWLRQ(PLVVLRQVDQG&ULWHULD9DOXHV &2 12[ 52* 62;
7RWDO
30
7RWDO
30 CO2
/EV'D\
2Q6KRUH(TXLSPHQW  
  
 
'XVW       
2Q6KRUH9HKLFOHV       

2II6KRUH6RXUFHV   
  

$OO6RXUFHV     
 
 

2Q6KRUH6RXUFHV    
  
'DLO\7KUHVKROG
      17
6LJQLILFDQW" 12 12 12 12 12 12 12
7RQV\HDUSUHVHQWHGIRU&RQIRUPLW\SXUSRVHV
2Q6KRUH6RXUFHV       
'HPLQLPLVOHYHO    17  17 17
6LJQLILFDQW" 12 12 12 --- 12 ---  
$VVXPHVSHUFHQWFRQWUROHIILFLHQF\IRUZHWPDWHULDO 
%DVHGRQ

SHUFHQWRIWKH30IRURQURDGHPLVVLRQV
SHUFHQWRIWKH30IRURIIURDGHPLVVLRQVDQGSHUFHQWRIWKH 30IRUIXJLWLYHGXVW

17±1R7KUHVKROG

7KUHVKROGVDSSO\RQO\WRRQVKRUHVRXUFHV
*HQHUDOFRQIRUPLW\de minimisOHYHOV
166
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,PSDFW$4
Expose sensitive receptors to substantial air pollutant concentrations $V GHPRQVWUDWHGLQ 6HFWLRQ  DERYH GDLO\ HPLVVLRQV IRU&212[ 30 DQG 30ZHUH PRGHOHGWRGHWHUPLQHWKHLUFRQFHQWUDWLRQDQGFRQWULEXWLRQWRWKHDPELHQWFRQFHQWUDWLRQVZLWKLQ WKH 3URMHFW YLFLQLW\ DQG DV VKRZQLQ 7DEOH WKH FRQFHQWUDWLRQV RI HPLVVLRQV DUH EHORZWKH ORFDOL]HGVLJQLILFDQFHWKUHVKROGFULWHULD$VVXFK3URMHFWFRQVWUXFWLRQDFWLYLWLHVZLOOQRWUHVXOWLQ SRWHQWLDOH[SRVXUHRIVHQVLWLYHUHFHSWRUVWRVXEVWDQWLDOSROOXWDQWFRQFHQWUDWLRQV Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Create objectionable odors affecting a substantial number of people. 3URMHFWFRQVWUXFWLRQZRXOGLQYROYHWKHXVHRIKHDY\HTXLSPHQWFUHDWLQJH[KDXVWSROOXWDQWVIURP RQVLWH HDUWK :LWK UHJDUGV WR QXLVDQFH RGRUV DQ\ DLU TXDOLW\ LPSDFWV ZLOO EH FRQILQHG WR WKH LPPHGLDWH YLFLQLW\ RI WKH HTXLSPHQW LWVHOI  %\ WKH WLPH VXFK HPLVVLRQV UHDFK DQ\ VHQVLWLYH UHFHSWRU VLWHV DZD\ IURP WKH 3URMHFW VLWH WKH\ ZLOO EH GLOXWHG WR ZHOO EHORZ DQ\ OHYHO RI DLU TXDOLW\FRQFHUQ
6HGLPHQWVWREHSODFHGRQWKHEHDFKZRXOGQRWFRQWDLQDKLJKOHYHORIRUJDQLFGHEULVDQGWKXV ZKLOHDQRGRUPD\EHQRWHGLWZRXOGEHW\SLFDORIDQ\RGRUDVVRFLDWHGZLWKORZWLGHFRQGLWLRQV 7KLVLPSDFWLVWKHUHIRUHFRQVLGHUHGQRWVLJQLILFDQW
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW$4
Generate greenhouse gases
$VZLWKWKHIW%HDFK:LGWK$OWHUQDWLYHFRQVWUXFWLRQDFWLYLWLHVZRXOGFRQVXPHIXHODQGUHVXOW LQ WKH JHQHUDWLRQ RI JUHHQKRXVH JDVHV  ,Q DFFRUGDQFH ZLWK WKH 3URMHFW FRQVWUXFWLRQ VFKHGXOH DSSUR[LPDWHO\ OEV


WRQV
 ZRXOG EH SURGXFHG GXULQJWKH  ZRUNLQJ
GD\VDVVRFLDWHGZLWKWKHIW%HDFK:LGWK$OWHUQDWLYH ,QDFFRUGDQFHZLWKWKH $403WKHHPLVVLRQOHYHOVLQ&DOLIRUQLDDUHHVWLPDWHGWR EH  PLOOLRQPHWULFWRQV
VKRUWWRQV
&2HTXLYDOHQWIRU$WDERXW

WRQVWKH
IW %HDFK:LGWK $OWHUQDWLYH UHSUHVHQWV DERXW  SHUFHQW LI WKH 6WDWH¶V DQQXDO &2 HPLVVLRQV EXGJHW
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
167
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 ,PSDFWVRIWKH1R$FWLRQ$OWHUQDWLYH
7KH1R$FWLRQ$OWHUQDWLYHZRXOGQRWLQYROYHDQ\GUHGJLQJRUEHDFKQRXULVKPHQWDFWLYLW\DQGQR LPSDFWVWRDLUTXDOLW\ZRXOGRFFXUIURPWKHODFNRIWKHVHFRQVWUXFWLRQDFWLYLWLHV+RZHYHUXQGHU WKH 1R $FWLRQ $OWHUQDWLYH SRWHQWLDO PDLQWHQDQFH DFWLYLWLHV E\ 6&55$ PD\ FUHDWH HPLVVLRQV DVVRFLDWHGZLWKHTXLSPHQWXVHGWRPDLQWDLQDQGSURWHFWWKH UDLOURDGEDOODVWDQGWUDFNVVXFKDV HPHUJHQF\VHDZDOOV
 *HRORJ\DQG7RSRJUDSK\
 6LJQLILFDQFH&ULWHULD
$Q LPSDFW WR JHRORJ\ DQG WRSRJUDSK\ ZLOO EH FRQVLGHUHG VLJQLILFDQW LI D SURMHFW DOWHUQDWLYH UHVXOWVLQ

x 6XEVWDQWLDODGYHUVHPRGLILFDWLRQRIDQ\XQLTXHJHRORJLFIHDWXUHV 
x 6XEVWDQWLDODGYHUVHLQFUHDVHLQFRDVWDOHURVLRQ
DQGRU
x 6XEVWDQWLDODGYHUVHPRGLILFDWLRQRIEHDFKRUQHDUVKRUHWRSRJUDSK\  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH
,PSDFW(5
Substantial adverse modification of any unique geologic features. 7KHIW%HDFK:LGWK$OWHUQDWLYHZLOODOWHUWRSRJUDSK\E\H[FDYDWLQJVRIWERWWRPRIIVKRUHRI 2FHDQVLGHDQGSODFLQJWKHVHGLPHQWRQWKHEHDFKDW6DQ&OHPHQWHWRZLGHQWKHEHDFK1HLWKHU WKHUHODWLYHO\IHDWXUHOHVVRFHDQERWWRPRIIVKRUH2FHDQVLGHRUWKHVDQGEHDFKDW6DQ&OHPHQWHLV D XQLTXH JHRORJLF IHDWXUH  6XEWLGDO VRIW ERWWRP DUHDV DQG VDQG\ EHDFKHV DUH ZLGHVSUHDG LQ VRXWKHUQ&DOLIRUQLD7KHUHIRUHWKHIW%HDFK:LGWK$OWHUQDWLYHZRXOGQRWUHVXOWLQVXEVWDQWLDO DGYHUVHPRGLILFDWLRQRIDQ\XQLTXHJHRORJLFIHDWXUH
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW(5
Substantial adverse increase in coastal erosion.
&XUUHQWO\ EHDFKHURVLRQWKUHDWHQV&LW\ IDFLOLWLHVDQG SULYDWHSURSHUWLHVDVZHOODVWKH UDLOURDG 7KH SURSRVHG DFWLRQ ZRXOG SURYLGH VDQG WR 6DQ &OHPHQWH EHDFK WR RIIVHW EHDFK HURVLRQ DQG SURWHFW VWUXFWXUHV  7KHUHIRUH WKH LPSDFWV RI WKH  IW %HDFK:LGWK $OWHUQDWLYH ZRXOG RIIVHW FRDVWDOHURVLRQDQGZRXOGEHEHQHILFLDO
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
168
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,PSDFW(5
Substantial adverse modification of beach or nearshore topography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
7KHIW%HDFK:LGWK$OWHUQDWLYHZRXOGXVHWKHGUHGJHGVDQGWRZLGHQDSSUR[LPDWHO\IW

 P
 RI 6DQ &OHPHQWH %HDFK FRDVWOLQH  7KH LPPHGLDWH SRVWFRQVWUXFWLRQ ZLGWK RI WKH EHDFKZRXOGEHDSSUR[LPDWHO\IW
P
EXWWKURXJKZLQQRZLQJDQGDGMXVWPHQWWKHHYHQWXDO
EHDFKZLGWKZRXOGEHDERXWIW
P
)LJXUHVKRZVWKHFRQVWUXFWLRQIRRWSULQWDQGWKH HTXLOLEULXP IRRWSULQWRIWKH IW%HDFK:LGWK$OWHUQDWLYH7KHFRQVWUXFWLRQ IRRWSULQW IRUWKLV DOWHUQDWLYH ZRXOG EH DSSUR[LPDWHO\  DFUHV
DF

 P

  7KH HTXLOLEULXP IRRWSULQW
UHVXOWLQJ IURP VRPH RI WKH SODFHG VDQG PRYLQJ RIIVKRUH ZRXOG EH DSSUR[LPDWHO\  DF



P


7KH SURSRVHG ILOO ZRXOG EH H[SHFWHGWR KDYH YDU\LQJOHYHOV RI EXULDOLPSDFWV GXHWR VHDVRQDO FURVVVKRUHPRYHPHQWRI VHGLPHQW
$SSHQGL['
'XULQJWKH VXPPHUPRQWKVWKHHTXLOLEULXP
SURILOHLV H[SHFWHGWR EH ELDVHGWRZDUGVWKH VKRUHOLQH'XULQJWKH VXPPHUZKHQORZHUZDYH HQHUJ\FRQGLWLRQVDUHSUHYDOHQWVHGLPHQWW\SLFDOO\PLJUDWHVDFURVVWKHSURILOHIURPGHHSHUZDWHU WR VKDOORZHU ZDWHU UHVXOWLQJ LQ D QHW DFFXPXODWLRQ RI VHGLPHQW LQ WKH IRUHVKRUH  'XULQJ WKH ZLQWHUPRQWKVWKHHTXLOLEULXPSURILOHZRXOGEHELDVHGWRZDUGWKHRIIVKRUHEDU+LJKHUHQHUJ\ ZLQWHU ZDYH FRQGLWLRQV FDXVH VHGLPHQW WR PRYH DFURVV WKH SURILOH IURP VKDOORZHU ZDWHU WR GHHSHUZDWHUUHVXOWLQJLQDQHWJDLQRIVHGLPHQWWRZDUGVWKHRIIVKRUHWDLORIWKHSURILOH 7KHEHDFKILOOSURSRVHGIRU6DQ&OHPHQWHZRXOGEHH[SHFWHGWRSHUIRUPLQDPDQQHUFRQVLVWHQW ZLWK RWKHU UHFHQW EHDFK ILOOV  )LJXUH  VKRZV WKH SURILOH IRU D UHFHQW ILOO E\ 6$1'$* RI F\


P

DORQJIW
P
RIEHDFKDW2FHDQVLGH7KLVSURILOHVKRZVD
PRYHPHQWRIXSWRIW
P
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itigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
169
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


)LJXUH6$1'$*2FHDQVLGH%HDFK)LOO3URILOHV
%HIRUHDQG$IWHU&RQVWUXFWLRQ

170
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5 3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV 
)LJXUH&URVV6HFWLRQ3URILOHRIWKHIW%HDFK:LGWK$OWHUQDWLYH 171
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH
,PSDFW(5
Substantial adverse modification of any unique geologic features. 7KHIW%HDFK:LGWK$OWHUQDWLYHZLOODOWHUWRSRJUDSK\E\H[FDYDWLQJVRIWERWWRPRIIVKRUHRI 2FHDQVLGHDQGSODFLQJWKHVHGLPHQWRQWKHEHDFKDW6DQ&OHPHQWHWRZLGHQWKHEHDFK1HLWKHU WKHUHODWLYHO\IHDWXUHOHVVRFHDQERWWRPRIIVKRUH2FHDQVLGHRUWKHVDQGEHDFKDW6DQ&OHPHQWHLV D XQLTXH JHRORJLF IHDWXUH  6XEWLGDO VRIW ERWWRP DUHDV DQG VDQG\ EHDFKHV DUH ZLGHVSUHDG LQ VRXWKHUQ &DOLIRUQLD  7KHUHIRUH WKH  IW %HDFK :LGWK $OWHUQDWLYH ZRXOG QRW UHVXOW LQ VXEVWDQWLDODGYHUVHPRGLILFDWLRQRIDQ\XQLTXHJHRORJLFIHDWXUH Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW(5
Substantial adverse increase in coastal erosion
&XUUHQWO\ EHDFKHURVLRQWKUHDWHQV&LW\ IDFLOLWLHVDQG SULYDWHSURSHUWLHVDVZHOODVWKH UDLOURDG 7KHIW%HDFK:LGWK$OWHUQDWLYHZRXOGSURYLGHVDQGWR6DQ&OHPHQWHEHDFKWRRIIVHWEHDFK HURVLRQ DQG SURWHFW VWUXFWXUHV  7KHUHIRUHWKHLPSDFWV RIWKLV DOWHUQDWLYH ZRXOG EH EHQHILFLDO %HFDXVHWKHIW%HDFK:LGWK$OWHUQDWLYHZRXOGSURYLGHDZLGHUEHDFKWKDQWKHIW%HDFK :LGWK$OWHUQDWLYHWKHIW%HDFK:LGWK$OWHUQDWLYHZRXOGEHPRUHHIIHFWLYHLQRIIVHWWLQJWKH LPSDFWVRIEHDFKHURVLRQ
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW(5
Substantial adverse modification of beach or nearshore topography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
P
WKHFRQVWUXFWLRQEHDFKZLGWKZRXOGEHIW

 P
  7KLV VDQG ZLOO PRYH DORQJVKRUH
SULPDULO\ GRZQFRDVW
 DQG RIIVKRUH  )RUWKH  IW
%HDFK:LGWK$OWHUQDWLYHWKH VDQGZRXOGFRYHUDQDUHD RIDSSUR[LPDWHO\  DF
 P


DIWHU FRQVWUXFWLRQ  $W HTXLOLEULXPWKH VDQG ZRXOG FRYHU D IRRWSULQW RI  DF  P


)LJXUH 
 )LJXUH  VKRZVWKH FURVV VHFWLRQDO GLVWULEXWLRQ RIWKLV VHGLPHQW IRUWKH  IW %HDFK:LGWK$OWHUQDWLYH$WHTXLOLEULXPWKHGHSWKRIEXULDOZRXOGEHJUHDWHVWDWWKHVKRUHOLQH ZKHUHLWZRXOGEHXSWR
IW
P
WKLFN$WWKHVHDZDUGWRHRIWKHHTXLOLEULXPSURILOHEXULDO 172
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

ZRXOG UDQJH EHWZHHQ  WR  IW
 DQG  P
 WKLFN
$SSHQGL[ '
  7KH VHGLPHQW ZRXOG EH
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
LQGLFDWHGWKDW
EHORZDZDWHUGHSWKRI0//:WKHSURILOHVDIWHUWKHILOOHYHQWZHUHZLWKLQWKHVDPHUDQJHRI SURILOHV REVHUYHG SULRUWRWKH ILOO HYHQW ZKLFK ZDVLQ ZDWHU GHSWKV XSWR DERXW  IW P

6RPH RI WKH SRVWILOO SURILOHV ZHUH ZLWKLQ WKH XSSHU UDQJH RI SUHILOO GHSWKV REVHUYHG  ,W LV SRVVLEOHWKDWWKHJUHDWHUYROXPHRIILOOSURSRVHGIRUWKHIW%HDFK:LGWK$OWHUQDWLYH 
P
IRUWKLV3URMHFWFRPSDUHGWR

PIRU6$1'$*
FRXOGUHVXOWLQEXULDOEH\RQGH[LVWLQJ
SURILOHV,IWKHIW%HDFK:LGWK$OWHUQDWLYHPRGLILHVQHDUVKRUHEDWK\PHWU\LQVXFKDZD\DV WRUHVXOWLQEXULDODQGGHJUDGDWLRQRIURFN\VXEWLGDOKDELWDWLWZRXOGKDYHDVLJQLILFDQWDGYHUVH LPSDFWRQJHRORJ\DQGWRSRJUDSK\
Mitigation Measures

00(5
6HGLPHQWSURILOHV VKDOOEHPRQLWRUHG IROORZLQJWKHEHDFK ILOO ,I VLJQLILFDQW EXULDORIQDWXUDOUHHIRFFXUVIXWXUHILOOHYHQWVEH\RQGWKHLQLWLDOILOOVKDOOQRWRFFXU,IWKHUHHI GRHVQRWUHWXUQDQHTXLYDOHQWDPRXQWRIPLWLJDWLRQUHHIVKDOOEHFRQVWUXFWHGDWDZDWHUGHSWKWKDW ZRXOGFUHDWHQHDUVKRUHWRSRJUDSK\VLPLODUWRWKDWRI76WUHHWUHHI Summary of Significant Unavoidable Impacts
7KHIW%HDFK:LGWK$OWHUQDWLYHZRXOGUHVXOW
LQVXEVWDQWLDOEXULDORIUHHIWKDWZRXOGUHVXOWLQPRGLILFDWLRQRIWKHQHDUVKRUHWRSRJUDSK\7KHVH LPSDFWV ZRXOG RFFXU IRU XS WR  \HDUV  0RQLWRULQJ DQG GRFXPHQWDWLRQ RI LPSDFWV DQG WKH DYRLGDQFHRIIXWXUHEHDFKILOOVZRXOGDOORZWKHUHHIVRII6DQ&OHPHQWHWRHYHQWXDOO\UHFRYHUWR WKHLUH[LVWLQJYDOXHV&UHDWLRQRIDPLWLJDWLRQUHHIZRXOGUHSOLFDWHVRPHRIWKHWRSRJUDSK\ORVW WR WKH EHDFK ILOO EXW D PLWLJDWLRQ UHHI PD\ QRW VXSSRUW WKH ELRORJLFDO RU UHFUHDWLRQDO XVHV LW FXUUHQWO\VXVWDLQV
 ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH
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
173
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5 3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV 
)LJXUH&URVV6HFWLRQ3URILOHRIIW
P
%HDFK:LGWK$OWHUQDWLYH
174
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

8QGHUWKH1R$FWLRQ DOWHUQDWLYH HPHUJHQF\ VHDZDOOVPD\ EH FRQVWUXFWHGWR SURWHFW VWUXFWXUHV IURP ZDYH GDPDJH  &RQVWUXFWLRQ RI VHDZDOOV ZRXOG EH DQ DGYHUVH PRGLILFDWLRQ RI EHDFK WRSRJUDSK\+RZHYHUEHFDXVHDUHODWLYHO\VPDOODPRXQWRIEHDFKZRXOGEHDIIHFWHGWKHLPSDFW ZRXOGQRWEHVXEVWDQWLDODQGZRXOGQRWEHFRQVLGHUHGVLJQLILFDQW  :DWHU5HVRXUFHV
:DWHU4XDOLW\6HGLPHQWVDQG2FHDQRJUDSK\

 6LJQLILFDQFH&ULWHULD
,PSDFWVWRPDULQHZDWHUTXDOLW\DUHFRQVLGHUHGVLJQLILFDQWLIDQ\RIWKHIROORZLQJDSSO\ 
x 7KHZDWHUTXDOLW\REMHFWLYHVLQWKH&DOLIRUQLD2FHDQ3ODQ 6:5&%
DUHYLRODWHG

DQGRU
x 3URMHFWRSHUDWLRQVRUGLVFKDUJHVWKDWFKDQJHEDFNJURXQGOHYHOVRIFKHPLFDODQGSK\VLFDO FRQVWLWXHQWV RU HOHYDWH WXUELGLW\ ZRXOG SURGXFH ORQJWHUP FKDQJHV LQ WKH UHFHLYLQJ HQYLURQPHQW RI WKH VLWH DUHD RU UHJLRQ WKDW ZRXOG LPSDLU WKH EHQHILFLDO XVHV RI WKH UHFHLYLQJZDWHU
,PSDFWV DUH FRQVLGHUHG OHVV WKDQ VLJQLILFDQW LI WKH SURMHFW ZRXOG UHVXOW LQ HOHYDWLRQ RI FRQWDPLQDQWV EXWWKHOHYHOV UHPDLQ EHORZZDWHU TXDOLW\FULWHULD RULIHOHYDWLRQ RIFRQWDPLQDQW FRQFHQWUDWLRQVDERYHFULWHULDRFFXUVRQO\ZLWKLQDFRXSOHRIKXQGUHGIHHWRUOHVVRIWKHSRLQWRI GLVFKDUJHIRUDIHZKRXUVRUOHVV
$QLPSDFWWR RFHDQRJUDSKLFFRQGLWLRQV RUFRDVWDO SURFHVVHVZRXOG EHFRQVLGHUHG VLJQLILFDQWLI DQ\RIWKHIROORZLQJDSSO\

x 1HDUVKRUHZDYHFKDUDFWHULVWLFVDUHVXEVWDQWLDOO\DQGDGYHUVHO\DOWHUHG 
x 1HDUVKRUHVHGLPHQWWUDQVSRUWLVVXEVWDQWLDOO\DQGDGYHUVHO\DOWHUHG DQGRU
x 6KRUHOLQHHURVLRQLVVXEVWDQWLDOO\LQFUHDVHG
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH
,PSDFW:5
The water quality objectives in the California Ocean Plan (SWRCB 2005) are violated.
$VGHVFULEHGLQ6HFWLRQDQGVKRZQLQ7DEOHWKHVHGLPHQWDWWKH2FHDQVLGHERUURZVLWH KDVYHU\ORZOHYHOVRIFRQWDPLQDQWV7KHUHIRUHUHVXVSHQVLRQRIVHGLPHQWVGXULQJGUHGJLQJDQG UXQRIILQWRWKHRFHDQIURPVHGLPHQWVSODFHGRQWKHEHDFKDW6DQ&OHPHQWHZRXOGQRWUHVXOWLQ DQ LQFUHDVH LQ WKH FRQFHQWUDWLRQ RI FRQWDPLQDQWV LQ RFHDQ ZDWHUV RU FDXVH D YLRODWLRQ RI DQ\ ZDWHUTXDOLW\REMHFWLYHUHODWHGWRFRQWDPLQDQWV
'UHGJLQJ DQG EHDFK FRQVWUXFWLRQ DFWLYLWLHV ZLOO LQYROYH WKH XVH RI YHVVHOV DQG FRQVWUXFWLRQ YHKLFOHVRQDQGQHDUWKHRFHDQ$QDFFLGHQWRUWKHLPSURSHUKDQGOLQJRIPDWHULDOVFRXOGUHVXOWLQ 175
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

WKHLQWURGXFWLRQRIIXHOVRURWKHUKD]DUGRXVPDWHULDOWRWKHRFHDQ7KHLQWURGXFWLRQRIIXHOVRU RWKHUFRQWDPLQDQWVWRPDULQHZDWHUVZRXOGEHDSRWHQWLDOO\VLJQLILFDQWLPSDFW,PSDFWVPD\EH UHGXFHG WR QRW VLJQLILFDQW WKURXJK DGKHUHQFH WR D 6WRUPZDWHU 3ROOXWLRQ 3UHYHQWLRQ 3ODQ

6:333
DQGDQ2LO6SLOO3UHYHQWLRQDQG5HVSRQVH3ODQ
26353

7KHSULPDU\SRWHQWLDOIRUGHJUDGDWLRQRIZDWHUTXDOLW\IURPWKHSURSRVHGEHDFKQRXULVKPHQWLV WKURXJKWKH JHQHUDWLRQ RIWXUELGLW\ GXULQJ GUHGJLQJDQG VHGLPHQW GLVFKDUJHWRWKH EHDFK7KH &DOLIRUQLD2FHDQ3ODQVWDWHV1DWXUDOOLJKWVKDOOQRWEHVLJQLILFDQWO\UHGXFHGDWDQ\SRLQWRXWVLGH WKHLQLWLDOGLOXWLRQ]RQHDVWKHUHVXOWRIWKHGLVFKDUJHRIZDVWH7KHVHGLPHQWDWWKH2FHDQVLGH VRXUFH VLWH LV JHQHUDOO\ ILQHJUDLQHG VDQGV ZLWK ORFDO VLOW\ LQWHUYDOV 86$&( E
  7KH
FDOFXODWHG ILQHV FRQWHQW RIWKH FRPSRVLWH JUDGDWLRQLV  SHUFHQW%HFDXVHWKHPDWHULDO DWWKH ERUURZVLWHFRQVLVWVSULPDULO\RIVDQGVL]HGSDUWLFOHVWKDWVHWWOHUDSLGO\WKHVHSOXPHVZRXOGQRW EHH[WHQVLYH$VPDWHULDOLVORDGHGLQWRWKHKRSSHUELQVWKHGUHGJHPD\RYHUIORZHOXWULDWHGRZQ WKH FHQWHU RIWKH KXOOWKURXJK YHUWLFDO RYHUIORZ SLSHV  7KXVWKH KRSSHU GUHGJH PD\ FUHDWH D VXUIDFHWXUELGLW\SOXPHZKLFKXQGHUZRUVWFDVHFRQGLWLRQVPD\H[WHQGIRUIW P
RU
PRUH  6$1'$* HVWLPDWHG WKH DYHUDJH WXUELGLW\ SOXPHV H[SHFWHG IURP GUHGJLQJ DW WKH 2FHDQVLGHERUURZVLWHXVLQJWKHRYHUDOOPHDQJUDLQVL]HGLDPHWHUDQGWKHDYHUDJHFXUUHQWVSHHG

6$1'$* 
  7KH HVWLPDWHG DYHUDJH GRZQ FXUUHQW GLVWDQFH RI WKH WXUELGLW\ SOXPH ZDV HVWLPDWHGWREHWR
IW
WR

P

6$1'$*
7XUELGLW\PRQLWRULQJRIGUHGJLQJ
ZLWKD KRSSHU GUHGJH GXULQJWKH6$1'$*5HJLRQDO%HDFK6DQG SURMHFWLGHQWLILHG RQO\ VPDOO SOXPHVLQWKHYLFLQLW\RIWKHGUHGJH
$0(&

SOXPHVGLGQRWH[FHHG\G

P

7KHUHIRUH WKH DPRXQW RI WXUELGLW\ H[SHFWHG GXULQJ GUHGJLQJ DW WKH 2FHDQVLGH VRXUFH VLWH LV H[SHFWHGWR EHPLQRU+RZHYHULQDZRUVWFDVH VFHQDULRLIDVLOWOD\HULVHQFRXQWHUHG GXULQJ FRQGLWLRQVRIKLJKFXUUHQWVWKHFUHDWLRQRIH[WHQVLYHWXUELGLW\SOXPHVGXULQJGUHGJLQJZRXOGEH DVLJQLILFDQWLPSDFW
7XUELGLW\SOXPHVJHQHUDWHGGXULQJGLVFKDUJHRIRIIVKRUHVHGLPHQWVWRUHFHLYHUVLWHVDOVRKDYHWKH SRWHQWLDO WR GHJUDGH QHDUVKRUH ZDWHUV  +RZHYHU WXUELGLW\ SOXPHV ZRXOG EH H[SHFWHG WR EH FRQILQHG SULPDULO\WRWKH QDWXUDOO\WXUELG VXUI ]RQH DQG DVVRFLDWHG ULS FXUUHQWV  &RQVWUXFWLRQ PRQLWRULQJ GXULQJ WKH 6$1'$* SURMHFW LQ 6DQ 'LHJR &RXQW\ GRFXPHQWHG WKDW EHDFK ILOO RSHUDWLRQV JHQHUDWHG WXUELGLW\ SOXPHV WKDW UDQJHG EHWZHHQ  DQG  IW  DQG
P
DQGZHUHJUHDWO\LQIOXHQFHGE\ULSFXUUHQWV7KHWXUELGLW\SOXPHVUHPDLQHGLQWKHVXUI ]RQHXQOHVVULSFXUUHQWVFDUULHGWKHPRIIVKRUH
6$1'$*
7KHSURSRVHG3URMHFWPHWKRG
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
:DWHUTXDOLW\LPSDFWVGXHWRWXUELGLW\DWWKHERUURZVLWHGXULQJFRQVWUXFWLRQDUHH[SHFWHGWREH PLQRU DQG WHPSRUDU\ 7KH JHRWHFKQLFDO DQDO\VLV LQGLFDWHV WKDW YDULDWLRQV LQ VHGLPHQW TXDOLW\ RFFXUZLWKLQWKHERUURZVHGLPHQWV7KHERUURZDUHDWHQGVWRKDYHVPDOOSRFNHWVDQGRUOHQVHVRI VHGLPHQW WKDW FRQWDLQ KLJKHU ILQHV FRQWHQW WKDQ DUH FXVWRPDULO\ DFFHSWDEOH DV EHDFK ILOO +RZHYHU WKH RYHUDOO JUDGDWLRQ RI WKH ERUURZ DUHD DV D XQLW LQGLFDWHV WKH ERUURZ DUHD LV 176
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

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

P

HYHU\VL[\HDUVIRUDQHVWLPDWHGHLJKWUHQRXULVKPHQWF\FOHVRYHUWKH3URMHFWOLIH 'HJUDGDWLRQRIZDWHUTXDOLW\GXHWRSHULRGLFPDLQWHQDQFHLVQRWH[SHFWHGWRRFFXU KRZHYHULI
H[WHQVLYHWXUELGLW\ZHUHWRRFFXUWKHLPSDFWZRXOGEHSRWHQWLDOO\VLJQLILFDQWEXWWHPSRUDU\ Mitigation Measures

00:5
$ 6:333 DQG DQ 26353 VKDOO EH SUHSDUHG IRU DOO FRQVWUXFWLRQ DFWLYLWLHV 7KHVH SODQV VKDOO VSHFLI\ VSHFLILF PHDVXUHV WKDW VKDOO EH WDNHQ GXULQJ GUHGJLQJ DQG EHDFK FRQVWUXFWLRQWRDYRLGLQWURGXFLQJFRQWDPLQDQWVWRWKHRFHDQYLDOHDNVDQGVSLOOV$OOPHDVXUHV VKDOOEHDGKHUHGWRGXULQJ3URMHFWFRQVWUXFWLRQ
00:5
7XUELGLW\VKDOOEHPRQLWRUHGGXULQJGUHGJLQJ,IDYLVLEOHWXUELGLW\SOXPHLV REVHUYHG EH\RQG WKH LPPHGLDWH GUHGJLQJ DUHD GUHGJLQJ DFWLYLWLHV VKDOO EH PRGLILHG HJ
GHFUHDVHWKHUDWHRIGUHGJLQJPRYHWRDQHZGUHGJHORFDWLRQ XQWLOWKHWXUELGLW\SOXPHGLVSHUVHV
7XUELGLW\ DOVR VKDOO EH PRQLWRUHG GXULQJ EHDFK ILOO RSHUDWLRQV  ,I VLJQLILFDQW WXUELGLW\ LH D
YLVLEOHWXUELGLW\SOXPHEH\RQGWKHVXUI]RQHRUULSFXUUHQWDUHD LVREVHUYHGEHDFKILOORSHUDWLRQV
VKDOOEHPRGLILHG
HJE\VORZLQJWKHUDWHRIILOO
XQWLOWKHWXUELGLW\SOXPHGLVSHUVHV
Summary of Significant Unavoidable Impacts
1RQH

,PSDFW:5
Project operations or discharges that change background levels of chemical and physical constituents or elevate turbidity would produce long-term changes in the receiving environment of the site, area, or region that would impair the beneficial uses of the receiving water.
%HQHILFLDOXVHVRIRFHDQZDWHUVRII6DQ&OHPHQWHDQG2FHDQVLGHLQFOXGHPDULQHKDELWDWZLOGOLIH KDELWDW QDYLJDWLRQZDWHUUHODWHG UHFUHDWLRQWKDWLQYROYHV ERG\FRQWDFWZLWKZDWHU QRQFRQWDFW ZDWHU UHFUHDWLRQ DQG KDELWDW IRU WKUHDWHQHG DQG HQGDQJHUHG VSHFLHV 5:4&% 


  7KH
VHGLPHQW WKDW ZLOO EH GUHGJHG DW WKH 2FHDQVLGH VRXUFH VLWH DQG GLVFKDUJHG RQ 6DQ &OHPHQWH 177
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

%HDFK ZLOO QRW H[SRVH ZLOGOLIH PDULQH OLIH RU UHFUHDWLRQDO RFHDQ XVHUV WR HOHYDWHG OHYHOV RI SROOXWDQWV
%DVHGRQLQIRUPDWLRQGLVFXVVHGDERYHXQGHU,PSDFW:5WXUELGLW\GXULQJGUHGJLQJDWWKH 2FHDQVLGHVRXUFHVLWHLVH[SHFWHGWREHPLQLPDODQGWXUELGLW\GXULQJGLVFKDUJHRIVHGLPHQWVWR WKHEHDFKLVH[SHFWHGWREHFRQILQHGWRWKHVXUI]RQHDQGULSFXUUHQWV7KHSURSRVHG3URMHFWLV VFKHGXOHGWRRFFXUEHWZHHQODWH$XJXVWHDUO\6HSWHPEHUWKURXJK0DUFKRXWVLGHRIWKHOHDVWWHUQ EUHHGLQJ DQG JUXQLRQ VSDZQLQJ VHDVRQV  7KH FORVHVW EUHHGLQJ FRORQ\ WR WKH 6DQ &OHPHQWH %HDFKUHFHLYHUVLWHLVDW5HG%HDFKDSSUR[LPDWHO\PL 
NP
VRXWKRIWKHUHFHLYHUVLWH7KH
ODUJHOHDVWWHUQQHVWLQJFRORQ\DWWKH6DQWD0DUJDULWD5LYHULVZLWKLQDERXWPL NP
IURP
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itigation Measure
,PSOHPHQW00:5
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW:5
Nearshore wave characteristics are substantially and adversely altered. 'UHGJLQJ DW DQ RIIVKRUH ERUURZ VLWH PD\ KDYH WKH SRWHQWLDO WR DOWHU WKH QHDUVKRUH ZDYH FRQGLWLRQV RYHU WKH GHSUHVVLRQ  7KHRUHWLFDOO\ ZDYHV SDVVLQJ RYHU WKH GHHSHQHG SLW FRXOG LQFUHDVHRUGHFUHDVHLQKHLJKWFRPSDUHGWRWKHH[LVWLQJFRQGLWLRQ+RZHYHUWKHSURSRVHGGUHGJH ERUURZDUHD KDVD YHU\ VPDOO IRRWSULQWLQ UHODWLRQWRWKH RYHUDOO EDWK\PHWULF ILHOGWUDYHUVHG E\ ZDYHVDSSURDFKLQJVKRUH
86$&(&KDPEHUV*URXS
7KHUHIRUHWKHGUHGJHSLWZLOO
IXQFWLRQ DV D QHDUO\LPSHUFHSWLEOH YDULDWLRQWR DSSURDFKLQJ ZDYHV  6LPLODU RIIVKRUH GUHGJLQJ SURMHFWV KDYH RFFXUUHG RII 6RXWKHUQ &DOLIRUQLD ZLWK QR LPSDFWV WR ZDYHV &KDPEHUV *URXS

)RUH[DPSOHWKH86$&(UHJXODUO\GUHGJHVVDQGIRUEHDFKQRXULVKPHQWDW6XUIVLGHDQG 6XQVHW%HDFKHVLQ2UDQJH&RXQW\IURPDERUURZDUHDDWVLPLODUGHSWKWRWKH2FHDQVLGHVRXUFH VLWH1R SHUFHSWLEOHHIIHFWV KDYH EHHQ GRFXPHQWHGWRZDYHVWUDYHUVLQJWKH VLWH 3DWWHUVRQDQG
<RXQJ



$QRWKHUFRQFHUQLVWKDWHURVLRQRIVHGLPHQWIURPWKHEHDFKILOOZLOODOWHUQHDUVKRUHEDWK\PHWU\ DQGFKDQJHZDYHFKDUDFWHULVWLFV76WUHHWLVDSRSXODUVXUILQJVLWHORFDWHGLPPHGLDWHO\VRXWKRI 6DQ&OHPHQWH3LHUDQGGLUHFWO\RIIVKRUHRIWKH76WUHHWRYHUSDVV7KH76WUHHWEUHDNLVGXHWRD SHUPDQHQWKDUGERWWRPUHHIWKDWULVHVDERYHWKHVHDEHG $SSHQGL['
)LJXUHLVDSODQYLHZ
SORW RI WKH EDWK\PHWULF FRQWRXUV WKDW VKRZ WKLV VHDEHG IHDWXUH  7KH LPPHGLDWHO\ DGMDFHQW FRQWRXUVDUHVWUDLJKWDQGSDUDOOHOZKLOHWKHUHHIDW76WUHHWLVDVHDEHGSHUWXUEDWLRQVXFKWKDWLWV HOHYDWLRQVKDSHDQGRULHQWDWLRQWRLQFRPLQJZDYHVDUHDXQLTXHFRPELQDWLRQWKDWWHQGVWRVKRDO ZDYHV WR D SHDN ZLWK D UHVXOWLQJ SOXQJLQJ ³OHIW´ IURP WKH RFHDQ IDFLQJ WKH VKRUH ZDYH WKDW
EUHDNVIURPULJKWWROHIW
DQG³ULJKW´
IURPWKHRFHDQIDFLQJWKHVKRUHZDYHWKDWEUHDNVIURPOHIW 178
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

WR ULJKW
7KH VORSHRIWKHEHDFKDQGWKHW\SHVRIZDYHVDSSURDFKLQJWKH VXUI]RQHGHWHUPLQH ZKLFKW\SHRIEUHDNHU
LHIRUPRIWKHZDYHDWEUHDNLQJ
ZLOOEHSUHGRPLQDQW%HFDXVHRIWKH
KDUGERWWRPEDWK\PHWU\WKHUHLVDZLGHUDQJHRILQFLGHQWZDYHFRQGLWLRQV $SSHQGL['
7KH
FRQILJXUDWLRQ DQG RULHQWDWLRQ RI WKH UHHI WR LQFRPLQJ ZDYHV FUHDWH FRQVLVWHQW VXUILQJ ZDYHV PDNLQJ76WUHHWDSRSXODUEUHDNLQWKH2UDQJH&RXQW\FRDVWDODUHD+LJKVWHHSQHVVZDYHVUHVXOW LQ SOXQJLQJ EUHDNHUV ZKLFK DUH DVVRFLDWHG ZLWK EHDFKHV ZLWK VWHHSHU JUDGLHQWV  7\SHV RI EUHDNHUV LGHQWLILHG E\ *DOYLQ


 WKDW DUH GLVFXVVHG IRU WKLV 3URMHFW LQFOXGH VSLOOLQJ DQG SOXQJLQJ EUHDNV  6SLOOLQJ EUHDNHUV RFFXU JUDGXDOO\ RYHU D GLVWDQFH ZKHUH WKH ZDYH FUHVW EHFRPHV XQVWDEOH DQG FDVFDGHV
³VSLOOV´
 GRZQ WKH VKRUHZDUG IDFH RI WKH ZDYH SURGXFLQJ D IRDP\ ZKLWH ZDWHU VXUIDFH 3OXQJLQJ EUHDNHUV DUH ZDYHVWKDW RFFXU ZKHQWKH FUHVW DGYDQFHV IDVWHU WKDQ WKH EDVH RI WKH EUHDNHU FXUOV RYHU WKH VKRUHZDUG IDFH RI WKH ZDYH DQG WKHQ IDOOV IRUZDUGLQWRWKHWURXJKRIWKHZDYHUHVXOWLQJLQDKLJKVSODVK )LJXUH  LV D FURVV VHFWLRQ SORW RI WKH EDWK\PHWULF FRQWRXUV DW 76WUHHW  7KH PHDVXUHG EDWK\PHWU\ GDWD LQGLFDWH WKDW WKH UHHI H[WHQGV IURP WKH VKRUHOLQH WR DSSUR[LPDWHO\  IW

P
 RIIVKRUH  7KH VXUILQJ H[WHQGV IURP WKH EHDFK WR DERXW  IW  P
 RIIVKRUH DQG
W\SLFDOO\LVLQZDWHUGHSWKVOHVVWKDQIW
P
7KHVXUILQJDUHDLVFORVHUWRWKHEHDFKWKDQWKH
DFWXDO UHHI ORFDWLRQ DV LQFRPLQJ ZDYHV UHTXLUH WLPH DQG VSDFHWR EH WUDQVIRUPHG E\ WKH UHHI EDWK\PHWU\
6RPH RI WKH VDQG SODFHG RQ WKH EHDFK IRU WKH  IW %HDFK :LGWK $OWHUQDWLYH ZRXOG PRYH RIIVKRUH$W76WUHHWUHHIPRVWRIWKLVVDQGZRXOGDFFXPXODWHLQWKHVKDOORZHUSRUWLRQVRIWKH UHHI  7KH SRWHQWLDO HIIHFWV RQWKH QHDUVKRUH ZDYH FKDUDFWHULVWLFV FRXOG EH FRQVLGHUHG DGYHUVH GHSHQGLQJRQWKHZDYHXVHXQGHUFRQVLGHUDWLRQ
HJVXUILQJRUVDQGWUDQVSRUW
6DQGIURPWKH
IW%HDFK:LGWK$OWHUQDWLYHZRXOGEHSUHVHQWIRUXSWR\HDUVKRZHYHUWKHOHYHORIEXULDOLV H[SHFWHGWRVWHDGLO\GHFUHDVHGXULQJWKLVWLPHDWDERXWDIW P
ORVVSHU\HDUHURVLRQUDWH
6LPLODULPSDFWVZRXOGEHH[SHFWHGWRRFFXUGXULQJHDFKQRXULVKPHQWHYHQW7KHLPSDFWVWRZDYH FKDUDFWHULVWLFV DOWKRXJK SRWHQWLDOO\ DGYHUVH ZRXOG EH UHODWLYHO\ VKRUWWHUP DQG OHVV WKDQ VLJQLILFDQWIRUHDFKQRXULVKPHQWF\FOH
7KHLPSDFWVWR VXUILQJ IURPWKLV VDQGPRYHPHQW DUH QRW ULJRURXVO\ TXDQWLILDEOH%HFDXVHWKH HTXLOLEULXP IRRWSULQW ZRXOG QRW H[WHQG LQWR WKH RIIVKRUH SRUWLRQV RIWKH UHHILW ZRXOG QRW EH OLNHO\ WR PRGLI\ VLJQLILFDQWO\ WKH UHIUDFWLYH DELOLWLHV RI WKH PRVW VHDZDUG H[WHQW WR WKH UHHI +RZHYHUWKHIW%HDFK:LGWK$OWHUQDWLYHPD\KDYHLPSDFWVWRWKHVXUI]RQHUHJLRQEHWZHHQ WKHVKRUHOLQHDQGWKH³WDNHRII´]RQHRUWKHDUHDZKHUHVXUIHUVVWDUWWKHLUULGHDVWKHVXUIERDUGLV SURSHOOHG E\WKHZDYH7KH VXUILQJH[SHULHQFHPLJKWFRQVLVW RID QRUPDO³WDNHRII´ EXWWKHQ ³FORVHRXW´DVWKHZDYHHQFRXQWHUVWKHVWUDLJKWHQHGEDWK\PHWULFFRQWRXUVLQVKRUH $SSHQGL['


D³FORVHRXW´FRQGLWLRQLVZKHQDZDYHEUHDNVDORQJLWVHQWLUHOHQJWKDWRQFH$OWKRXJKLPSDFWV GXHWRWKHZLGHUEHDFKPD\RFFXUKLVWRULFDHULDOSKRWRJUDSKVRI6DQ&OHPHQWH%HDFKDWWKH3LHU

)LJXUH
LQGLFDWHWKDWWKHEHDFKZLGWKLQ

ZDVDSSUR[LPDWHO\IW
P
ZLGHDQGQR
UHFRUGVKDYHEHHQIRXQGWKDWLQGLFDWHVXUILQJFHDVHGZLWKLQWKH3URMHFWDUHDGXULQJWKDWWLPH 179
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


)LJXUH3ODQ9LHZRI76WUHHW6XUI%UHDN%DWK\PHWU\ 180
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5 3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV 
)LJXUH&URVV6HFWLRQRI76WUHHW6XUI%UHDN%DWK\PHWU\ 'LVWDQFHVLQ)HHW

181
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LJXUH+LVWRULF$HULDO3KRWRJUDSKRI6DQ&OHPHQWH3LHU6KRUHOLQH 182
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW:5
Nearshore sediment transport is substantially and adversely altered. 7KHSURSRVHGERUURZGUHGJH VLWHRIIVKRUHRI2FHDQVLGH+DUERULVDWDZDWHUGHSWKEH\RQGWKH GHSWKRIFORVXUH IRUVHGLPHQWWUDQVSRUWRII2FHDQVLGH 6$1'$*
7KHUHIRUHGHHSHQLQJ
WKHDUHDWRREWDLQVDQGZLOOQRWLQWHUUXSWWKHOLWWRUDOWUDQVSRUWRIVDQG ,WLVSRVVLEOHWKDWE\ZLGHQLQJWKHEHDFKDW6DQ&OHPHQWH3LHUDVDQGJURLQFRXOGEHFUHDWHGDQG VDQGPRYLQJGRZQFRDVWE\OLWWRUDOWUDQVSRUWFRXOGEHEORFNHGUHVXOWLQJLQHURVLRQRIGRZQFRDVW EHDFKHV
86$&( E
  +RZHYHU DQ\ VDQG EORFNHG RQ WKH XSFRDVW EHDFK ZRXOG EH FRPSHQVDWHGRQWKHGRZQFRDVWEHDFKE\WKHHURVLRQDQGGRZQFRDVWWUDQVSRUWRIWKHEHDFK ILOO &RQFOXVLRQVGUDZQIURPWKH6$1'$*PRQLWRULQJGDWDRIWKH2FHDQVLGH%HDFKILOOVXJJHVWVWKH SURSRVHG3URMHFWEHDFKILOOZLOOHURGHSULPDULO\LQWKHVRXWKORQJVKRUHGLUHFWLRQ $SSHQGL['

7KH 6$1'$* ORQJWHUP PRQLWRULQJ GDWD LQGLFDWHV WKDW EHDFKHV LQ WKH VRXWK 2FHDQVLGH DQG QRUWK&DUOVEDGUHJLRQVJDLQHGVLJQLILFDQWO\VLQFHSURMHFWFRQVWUXFWLRQ7KHGDWDIXUWKHUVXJJHVWV WKDWWKH 2FHDQVLGH ILOO KDV PHUJHG ZLWKWKH DGMDFHQW &DUOVEDG ILOO  &RQVLGHULQJWKDW &DUOVEDG %HDFK LV VRXWK RI 2FHDQVLGH %HDFK DQG WKDW WKH ORQJVKRUH GULIW LV SULPDULO\ LQ WKH VRXWKHUQ GLUHFWLRQ WKH EHDFK ZLGWK LQFUHDVH FDQ EH GLUHFWO\ DWWULEXWHG WR VRXWK GLUHFWHG ORQJVKRUH VHGLPHQWWUDQVSRUW RIWKH ILOOPDWHULDO7KHUHIRUHHYHQLIWKHZLGHQHG EHDFKDW6DQ&OHPHQWH LQWHUFHSWHGWKHGRZQFRDVWWUDQVSRUWRIVDQGQRDGYHUVHHIIHFWVZRXOGRFFXUEHFDXVHHURVLRQRI WKH6DQ&OHPHQWH%HDFKILOOZRXOGQRXULVKGRZQFRDVWEHDFKHV Mitigation Measure
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW:5
Shoreline erosion is substantially increased
$VGLVFXVVHGDERYHXQGHU,PSDFW:5WKHVDQGVRXUFHVLWHZLOOQRWUREWKHOLWWRUDOFHOORI VHGLPHQWEHFDXVHLWLVORFDWHGEH\RQGWKHGHSWKRIFORVXUHDQGWKHZLGHQLQJRIWKHEHDFKLQ6DQ &OHPHQWHLVH[SHFWHGWRQRXULVKGRZQFRDVWEHDFKHVQRWFDXVHHURVLRQ7KHEHDFKQRXULVKPHQW LVGHVLJQHGWRRIIVHWSUREOHPVFDXVHGE\EHDFKHURVLRQLQ6DQ&OHPHQWH7KHSURSRVHGEHDFK ILOOZRXOGSURWHFWVWUXFWXUHVDQGWKHUDLOURDGDQGZRXOGEHDEHQHILW Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
 ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH
,PSDFW:5
The water quality objectives in the California Ocean Plan (SWRCB 2005) are violated.
183
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

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
Mitigation Measures
,PSOHPHQW00:5DQG00:5
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW:5
Project operations or discharges that change background levels of chemical and physical constituents or elevate turbidity would produce long-term changes in the receiving environment of the site, area, or region that would impair the beneficial uses of the receiving water.
7KHIW%HDFK:LGWK$OWHUQDWLYHZRXOGQRWEHH[SHFWHGWRFDXVHORQJWHUPFKDQJHVLQZDWHU FROXPQFKDUDFWHULVWLFVWKDWZRXOGLPSDLUWKHEHQHILFLDOXVHVRIWKHUHFHLYLQJZDWHUV7KHIW %HDFK:LGWK$OWHUQDWLYHPD\HOHYDWHWXUELGLW\GXULQJWKHDSSUR[LPDWHO\ IRXUPRQWKVRIEHDFK FRQVWUXFWLRQ
Mitigation Measure
,PSOHPHQW00:5
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW:5
Nearshore wave characteristics are substantially and adversely altered 'UHGJLQJ IRU WKH  IW %HDFK :LGWK $OWHUQDWLYH DW WKH 2FHDQVLGH ERUURZ VLWH ZRXOG QRW EH H[SHFWHG WR DOWHU ZDYH FKDUDFWHULVWLFV 7KH GUHGJH SLW ZLOO IXQFWLRQ DV D QHDUO\ LPSHUFHSWLEOH YDULDWLRQWRDSSURDFKLQJZDYHV
+RZHYHU WKH  IW %HDFK :LGWK $OWHUQDWLYH FRXOG KDYH VLJQLILFDQW HIIHFWV RQ WKH ZDYH EUHDNLQJFKDUDFWHULVWLFVDWWKH76WUHHWUHHI)LJXUHVKRZVWKHH[SHFWHGHTXLOLEULXPSURILOH RIWKH  IW%HDFK:LGWK$OWHUQDWLYHDW76WUHHW UHHI1DWXUDO VHDVRQDOFURVVVKRUHWUDQVSRUW PHFKDQLVPVSRWHQWLDOO\FRXOGFKDQJHWKHVHDEHGXSWRIW P
$VDQGOD\HURIIWWKLFNQHVV
184
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

RQ 76WUHHW UHHI FRXOG KDYH XQTXDQWLILDEOH EXW VLJQLILFDQW HIIHFWV WR WKH ZDYH EUHDNLQJ FKDUDFWHULVWLFV
$SSHQGL[ '
  $V WKH UHHI ILOOV LQ IURP WKH VDQG WKH FKDUDFWHULVWLF UHHI VKDSH FRXOGEHPRGLILHGDQGRUORVWDVLWEHFRPHVFRYHUHGE\DVDQGEDU7KHUHIUDFWLYHDELOLWLHVRIWKH UHHIPD\ EHPRGLILHG RUORVWOHVVHQLQJWKH IRFXVLQJ HIIHFW RIWKH UHHI DQG FKDQJLQJWKH SRLQW EUHDNFKDUDFWHULVWLFVRI76WUHHW$VWKH UHHIFRQWLQXHVWR ILOOLQWKHRYHUDOOEDWK\PHWU\RIWKH DUHDPD\ EHJLQWR EHFRPH VWUDLJKW DQG SDUDOOHO DQGWKHZDYHZLOOORVHLWV DELOLW\WR ³IHHO´WKH UHHI  7KH ZDYH PD\ EHJLQ WR H[KLELW PRUH VSLOOLQJ FKDUDFWHULVWLFV QRUPDOO\ DVVRFLDWHG ZLWK EHDFK EUHDNV  7KH FRQVROLGDWHG ³WDNHRII´ ]RQH PD\ EH UHSODFHG E\ D PRUH GLVRUJDQL]HG VLWXDWLRQ FRQWDLQLQJ PDQ\ ³WDNHRII´ ]RQHV ZLWK VKRUWHU PRUH YDULHG EUHDN GLUHFWLRQV  7KH VWUDLJKWHQLQJ FRQWRXUVPD\ FDXVHWKHZDYHWRWHQGWR EUHDN DOODW RQFH FUHDWLQJ D ³FORVH RXW´ FRQGLWLRQ  )ODWWHQLQJ RI WKH VORSH LQ WKH UHHI DUHD GXH WR VHGLPHQWDWLRQ XOWLPDWHO\ KDV WKH SRWHQWLDOWRFKDQJHWKHFKDUDFWHULVWLFSOXQJLQJSRLQWEUHDNWRDTXDVLVSLOOLQJEHDFKEUHDN7KH VHGLPHQW IURP WKH  IW %HDFK:LGWK $OWHUQDWLYH ZRXOG HURGH IURP WKH UHHI RYHU WLPH EXW ZRXOGWDNHXSWR\HDUVWRGLVDSSHDUIURPWKHHTXLOLEULXPIRRWSULQW6XEVWDQWLDODOWHUDWLRQRI WKHZDYHFKDUDFWHULVWLFVDW76WUHHWUHHIIRUXSWR\HDUVZRXOGEHDVLJQLILFDQWDGYHUVHLPSDFW Mitigation Measure

00:5
:DYHFKDUDFWHULVWLFVDW76WUHHWVKRXOGEHPRQLWRUHGEHIRUHDQGDIWHUEHDFK FRQVWUXFWLRQ ,I VXUILQJLV GHJUDGHG DQG GRHV QRW UHFRYHUZLWKLQ  \HDUV IXWXUH QRXULVKPHQW HYHQWV VKRXOGQRWRFFXU ,I VXUIFKDUDFWHULVWLFV VWLOOGRQRWUHFRYHUDIWHU\HDUVDPLWLJDWLRQ VXUILQJUHHIVKDOOEHFRQVWUXFWHG
Summary of Significant Unavoidable Impacts
7KHIW%HDFK:LGWK$OWHUQDWLYHZRXOGUHVXOW
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
Nearshore sediment transport is substantially and adversely altered. 7KHSURSRVHGERUURZGUHGJH VLWHRIIVKRUHRI2FHDQVLGH+DUERULVDWDZDWHUGHSWKEH\RQGWKH GHSWKRIFORVXUH IRUVHGLPHQWWUDQVSRUWRII2FHDQVLGH7KHUHIRUHGHHSHQLQJWKHDUHDWRREWDLQ VDQGZLOOQRWLQWHUUXSWWKHOLWWRUDOWUDQVSRUWRIVDQG 
$VGHVFULEHG IRUWKH IW%HDFK:LGWK$OWHUQDWLYHZLGHQLQJRIWKHEHDFKQHDU6DQ&OHPHQWH 3LHUZRXOG QRW UHVXOWLQWKHHURVLRQ RI GRZQFRDVW EHDFKHV(YHQLIWKHZLGHQHG EHDFKDW6DQ &OHPHQWHLQWHUFHSWHGWKHGRZQFRDVWWUDQVSRUWRIVDQGQRDGYHUVHHIIHFWVZRXOGRFFXUEHFDXVH HURVLRQRIWKH6DQ&OHPHQWH%HDFKILOOZRXOGQRXULVKGRZQFRDVWEHDFKHV Mitigation Measure
1RQH
Summary of Significant Unavoidable Impacts
1RQH
185
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

,PSDFW:5
Shoreline erosion is substantially increased
$V GLVFXVVHGDERYHWKH VDQG VRXUFH VLWHZLOO QRW UREWKHOLWWRUDOFHOO RI VHGLPHQW EHFDXVHLWLV ORFDWHGEH\RQGWKHGHSWKRIFORVXUHDQGWKHZLGHQLQJRIWKHEHDFKLQ6DQ&OHPHQWHLVH[SHFWHG WR QRXULVK GRZQFRDVW EHDFKHV QRW FDXVH HURVLRQ  7KH  IW %HDFK :LGWK $OWHUQDWLYH LV GHVLJQHGWRRIIVHWSUREOHPVFDXVHGE\EHDFKHURVLRQLQ6DQ&OHPHQWH7KHSURSRVHGEHDFKILOO ZRXOGSURWHFWVWUXFWXUHVDQGWKHUDLOURDG
Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
 ,PSDFWV5HODWHGWRWKH1R$FWLRQ$OWHUQDWLYH
8QGHU WKH 1R $FWLRQ $OWHUQDWLYH WKHUH ZRXOG EH QR DGGLWLRQDO WXUELGLW\ LQ WKH 3URMHFW DUHD FDXVHGE\GUHGJLQJRII2FHDQVLGHDQGGLVFKDUJLQJWKHVHGLPHQWVWR6DQ&OHPHQWH%HDFK8QGHU WKH 1R $FWLRQ $OWHUQDWLYH WKH 3URMHFW DUHD ZRXOG VWLOO H[SHULHQFH HOHYDWHG WXUELGLW\ DW WLPHV IURPVWRUPUXQRIIIURPULYHUVDQGIORRGFRQWUROFKDQQHOVDQGUHVXVSHQVLRQRIVHGLPHQWVE\ZDYH DFWLRQ
8QGHUWKH1R$FWLRQDOWHUQDWLYHWKHUHZRXOGEHQRDOWHUDWLRQRIEDWK\PHWU\E\GUHGJLQJ VDQG IURPRIIVKRUH2FHDQVLGHRUGLVFKDUJLQJVDQGDW6DQ&OHPHQWHDQGWKHUHIRUHQRSRWHQWLDOWRDOWHU ZDYH FKDUDFWHULVWLFV  7KH VHGLPHQW DW WKH 2FHDQVLGH ERUURZ VLWH PD\ EH GUHGJHG IRU RWKHU SURMHFWV
8QGHUWKH1R$FWLRQDOWHUQDWLYHWKHEHDFKDW6DQ&OHPHQWHZRXOGFRQWLQXHWRHURGHUHVXOWLQJLQ DIXUWKHUORVVRIVDQGGHSWKDQGZLGWK7KHGHQXGHGEHDFKZRXOGSURYLGHOLWWOHSURWHFWLRQIRUWKH UDLOURDGDQGWRSXEOLFDQGSULYDWHVWUXFWXUHV'DPDJHWRVWUXFWXUHVPD\RFFXUXQGHUKLJKZDYH FRQGLWLRQV
8QGHUWKH1R$FWLRQDOWHUQDWLYHHPHUJHQF\VHDZDOOVPD\EHFRQVWUXFWHGWRSUHYHQWVXUIGDPDJH WRVWUXFWXUHV7KHVHVHDZDOOVPD\KDYHPLQRUHIIHFWVRQQHDUVKRUHVHGLPHQWWUDQVSRUWEXWWKHVH HIIHFWVZRXOGQRWEHVXEVWDQWLDO7KHLPSDFWVRIVHDZDOOVRQVHGLPHQWWUDQVSRUWZRXOGQRWEH VLJQLILFDQW
 %LRORJLFDO5HVRXUFHV
 6LJQLILFDQFH&ULWHULD
$QLPSDFWWRELRORJLFDOUHVRXUFHVZLOOEHFRQVLGHUHGVLJQLILFDQWLIDSURMHFWDOWHUQDWLYHUHVXOWVLQ 
x $GLUHFWDGYHUVHHIIHFWRQWKHSRSXODWLRQRIDWKUHDWHQHGRUHQGDQJHUHGVSHFLHVRUWKHORVV RUGLVWXUEDQFHRILPSRUWDQWKDELWDWIRUDOLVWHGVSHFLHV 
186
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

x $ ORQJWHUP QHW ORVV LQ WKH KDELWDW YDOXH RI D VHQVLWLYH ELRORJLFDO KDELWDW  )RU WKH SXUSRVHV RI WKLV DQDO\VLV NHOS EHGV DQG ZHOO GHYHORSHG URFN\LQWHUWLGDO DQG VXUIJUDVV EHGVDUHFRQVLGHUHGVHQVLWLYHELRORJLFDOKDELWDWV

x 6XEVWDQWLDOLPSHGHQFHWRWKHEUHHGLQJPRYHPHQWRUPLJUDWLRQRIILVKRUZLOGOLIH 
x 6XEVWDQWLDO ORVV WR WKH SRSXODWLRQ RI DQ\ QDWLYH ILVK ZLOGOLIH RU YHJHWDWLRQ  )RU WKH SXUSRVH RI WKLV DQDO\VLV VXEVWDQWLDO LV GHILQHG DV D FKDQJH LQ D SRSXODWLRQ WKDW LV GHWHFWDEOHRYHUQDWXUDOYDULDELOLW\IRUDSHULRGRIILYH\HDUVRUPRUH DQGRU
x 6XEVWDQWLDODGYHUVHLPSDFWRQ(VVHQWLDO)LVK+DELWDW  ,PSDFWV5HODWHGWRWKHIW
P
%HDFK:LGWK$OWHUQDWLYH
,PSDFW%5
A direct adverse effect on the population of a special status listed species or the loss or disturbance of important habitat for a listed species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
NP

VRXWK RIWKH UHFHLYHU VLWH 7KHODUJHOHDVWWHUQ QHVWLQJ FRORQ\ DWWKH 6DQWD0DUJDULWD5LYHULV ZLWKLQDERXWPL
NP
IURPWKH2FHDQVLGHERUURZVLWH7XUELGLW\JHQHUDWHGGXULQJVDQG SODFHPHQWRQ6DQ&OHPHQWH%HDFKZRXOGKDYHOLWWOHHIIHFWRQWKHIRUDJLQJDFWLYLW\RIOHDVWWHUQV EXW WXUELGLW\ JHQHUDWHG GXULQJ H[FDYDWLRQ RI VHGLPHQW DW WKH 2FHDQVLGH ERUURZ VLWH ZRXOG EH ZLWKLQ WKH IRUDJLQJ UDQJH RI QHVWLQJ OHDVW WHUQV  +RZHYHU EHFDXVH WKH SURSRVHG 3URMHFW LV VFKHGXOHGWRRFFXURXWVLGHRIWKH&DOLIRUQLDOHDVWWHUQEUHHGLQJVHDVRQWKHUHZRXOGEHQRLPSDFW RQEUHHGLQJOHDVWWHUQV
)HGHUDOWKUHDWHQHGZHVWHUQ VQRZ\ SORYHUV GR QRW EUHHGLQWKH YLFLQLW\ RI6DQ&OHPHQWH%HDFK DQGKDYHUDUHO\LIHYHUEHHQQRWHGIRUDJLQJLQWKH3URMHFWDUHDGXULQJWKHZLQWHU7KLVLVEDVHG XSRQVHYHUDOZLQWHULQJSORYHUVXUYH\VPRVWUHFHQWO\LQLQZKLFKQRVQRZ\SORYHUVZHUH REVHUYHG  7KH 86$&( /$' KDV FRQGXFWHG VHYHUDO EHDFK DQG VXUI ]RQH GLVSRVDO RSHUDWLRQV ZLWKLQ VQRZ\ SORYHU KDELWDW GXULQJ ERWK QHVWLQJ DQG ZLQWHULQJ VHDVRQV ZLWKRXW DQ\ REVHUYHG QHJDWLYHLPSDFW
86$&(
%HFDXVH6DQ&OHPHQWH%HDFKLVQRWDQLPSRUWDQWKDELWDW IRU VQRZ\SORYHUVWHPSRUDU\GLVWXUEDQFHLVQRWFRQVLGHUHGDVLJQLILFDQWLPSDFW 6HD DQG 6DJH $XGXERQ SHUIRUPHG D  ZLQWHU VXUYH\  6DQ &OHPHQWH %HDFKHV ZHUH QRW
LQFOXGHGEHFDXVHEHDFKKDELWDWZLWKLQWKHSURMHFWSODFHPHQW IRRWSULQWDVZHOODVLQ2FHDQVLGH DUHQDUURZDQGKHDYLO\XVHGE\SHRSOH3KLOLS8QLWW6DQ'LHJR1DWXUDO+LVWRU\0XVHXP%LUGV RI6DQ'LHJR&RXQW\0HPRLU  
 GRHV QRW VKRZ VQRZ\ SORYHUVLQ QRUWK SRUWLRQ RIWKH FRXQW\&DOLIRUQLD6WDWH3DUNVKDVWUDFNHGVQRZ\SORYHUVGXULQJZLQWHUZLQGRZVXUYH\VDQGKDV GULYHQ6DQ&OHPHQWH6WDWH%HDFKPDQ\WLPHVZLWK]HURSORYHUVREVHUYHGRYHUWKH\HDUV 'DYLG
3U\RUSHUVRQDOFRPPXQLFDWLRQ)HEUXDU\

187
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW%5
A long-term net loss in the habitat value of a sensitive biological habitat. For the purposes of this analysis, kelp beds, surfgrass beds, and well developed rocky intertidal are considered sensitive biological habitats.
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
WRP
IURPWKHEHDFK
)ROORZLQJLQLWLDOSODFHPHQWDSRUWLRQRIWKHVDQGPD\PRYHXSFRDVWGRZQFRDVWDQGRIIVKRUH GHSHQGLQJ RQ WKH PDJQLWXGH GLUHFWLRQ DQG SHULRG RI ZDYHV 0RVW RI WKH VDQG PRYHPHQW LV H[SHFWHG WR EH GRZQFRDVW DQG RIIVKRUH  7KH QHDUHVW VLJQLILFDQW URFN\ LQWHUWLGDO DUHD WR WKH SURSRVHG EHDFK ILOOORFDWLRQLVDW0DULSRVD3RLQWDSSUR[LPDWHO\  IW P
 QRUWK RIWKH
QRUWKHUQ HQG RI WKH EHDFK ILOO VLWH DW /LQGD /DQH  7KH QHW PRYHPHQW RI EHDFK VDQGV LQ WKH 3URMHFWDUHDLVH[SHFWHGWREHVRXWKHUO\EXWVRPHQRUWKHUO\PRYHPHQWPD\RFFDVLRQDOO\RFFXU %DVHGRQPRQLWRULQJRIWKH6$1'$*EHDFK ILOOSURMHFWDW2FHDQVLGHPRVWVDQGPRYHPHQWLV H[SHFWHG WR EH WRZDUG WKH VRXWK
$SSHQGL[ '
  7KHUHIRUH LW LV XQOLNHO\ WKDW VLJQLILFDQW
TXDQWLWLHV RI VDQG ZLOO EH WUDQVSRUWHG WR WKH QRUWK WR WKH URFN\ LQWHUWLGDO KDELWDW DW 0DULSRVD 3RLQW7KHHTXLOLEULXPIRRWSULQWIRUWKHIW%HDFK:LGWK$OWHUQDWLYHLQGLFDWHVWKDWVDQGZLOO QRWH[WHQGDVIDUXSFRDVWDV0DULSRVD3RLQW
)LJXUH
7KHUHIRUHWKHSURSRVHGDFWLRQZRXOG
QRWEHH[SHFWHGWRUHVXOWLQWKHQHWORVVRIKDELWDWYDOXHRIVHQVLWLYHURFN\LQWHUWLGDOKDELWDWDQG LPSDFWVWRURFN\LQWHUWLGDOKDELWDWZRXOGQRWEHVLJQLILFDQW 7KHDYDLODEOHHYLGHQFHDOVRVXJJHVWVWKDWWKHSURSRVHGDFWLRQZLOOQRWUHVXOWLQDORQJWHUPQHW ORVVLQKDELWDWYDOXHRIVXUIJUDVVEHGV)LJXUHVKRZVWKHSUHGLFWHGHTXLOLEULXPFURVVVHFWLRQ IRRWSULQWRIWKHIW%HDFK:LGWK$OWHUQDWLYHDW7VWUHHWUHHI7KLVSURILOHVXJJHVWVWKDWPRVWRI WKHVHGLPHQWDFFXPXODWLRQZLOORFFXULQWKHLQVKRUHDUHD6XUIJUDVVLQWKLVDUHDJURZVRQWR 188
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

IW
WRP
ERXOGHUVDQGKDVDYHUDJHEODGHOHQJWKVRIWRIW
WR
P
7KHUHIRUHWKH
HTXLOLEULXP IRRWSULQW RI WKH  IW %HDFK :LGWK $OWHUQDWLYH OLNHO\ ZRXOG UHVXOW LQ D UDQJH RI LPSDFWV EHWZHHQ QR EXULDO RI VXUIJUDVV RQ WKH ODUJHU URFNV DQG SDUWLDO EXULDO RQ WKH VPDOOHU ERXOGHUV%XULDORIVXUIJUDVVRQWKHRXWHUSRUWLRQVRI7VWUHHWUHHIZRXOGEHPLQLPDO6XUIJUDVV LVDGDSWHGWRSDUWLDOVDQGEXULDOURXWLQHO\VXUYLYHVVHDVRQDOVDQGEXULDORISDUWRILWVEODGHVDQG FDQUHFRYHUTXLFNO\YLDUHJURZWKLIWKHURRWV\VWHPLVLQWDFW KRZHYHUWKHGHJUHHRIVDQGEXULDO
VXUIJUDVV FDQ ZLWKVWDQG LV QRW ZHOO GRFXPHQWHG
6$1'$* 
  &50

 REVHUYHG
VXUIJUDVVLQWKHGHHSHVWSRUWLRQRI76WUHHWUHHIZLWKRILWVEODGHVFRYHUHGZLWKVDQGZKLFK VXJJHVWHGVXUIJUDVVFRXOGZLWKVWDQGWHPSRUDU\EXULDORIXSWRRILWVEODGHOHQJWK 7R SUHGLFW WKH SRWHQWLDO EXULDO RI VXUIJUDVV DW 6DQ &OHPHQWH &50 DQG 0RIIDWW DQG 1LFKRO DQDO\]HGLPSDFWVWR VXUIJUDVV IURPD VLPLODU SURSRVHG EHDFK ILOO SURMHFWDW/LQGD/DQHDQG7 6WUHHW
&50
7KHLUDQDO\VLVSUHGLFWHGWKDWSODFHPHQWRIF\ P

RIVDQG
DW/LQGD/DQHDQG76WUHHWZRXOGUHVXOWLQDPD[LPXPIW P
EXULDORIVXUIJUDVVIRUOHVV
WKDQ VL[PRQWKV$SSUR[LPDWHO\ IW
P
RIEXULDOZRXOGEXU\OHVVWKDQSHUFHQWRIWKH
VXUIJUDVV EODGH OHQJWK DW WKHVH VLWHV  %DVHG RQ REVHUYDWLRQ RI EXULDO RI H[LVWLQJ RIIVKRUH VXUIJUDVVLQWKHDUHD&50

SURSRVHGDFULWHULRQRIVDQGEXULDORIQRPRUHWKDQRIWKH EODGHOHQJWK IRU VL[PRQWKV RUOHVV DV DOHYHOWKDW VXUIJUDVV FDQZLWKVWDQG DQG FRQFOXGHGWKDW EXULDORIOHVVWKDQKDOIWKHEODGHOHQJWKVIRUOHVVWKDQVL[PRQWKVZRXOGQRWEHH[SHFWHGWRUHVXOW LQORQJWHUPGDPDJH
&50

$ UHFHQWODERUDWRU\ VWXG\ RIPhyllospadix scouoleri VXJJHVWHGWKDW VKRUWWHUP VDQG EXULDOPD\ UHVXOWLQVKRRWPRUWDOLW\GHFUHDVHGVKRRWFRXQWVDQG UHGXFHGJURZWKRIVXUIJUDVV &UDLJHWDO

7KHVWXG\IRXQGWKDWVKRRWGHQVLW\GHFUHDVHGFRPSDUHGWRFRQWUROVIRUDEXULDOGHSWKRI IHHW
FP
EXWQRWVKDOORZHUEXULDOGHSWKV0HDQVKRRWJURZWKUDWHGHFUHDVHGLQDOOEXULDO WUHDWPHQWV7KHUHIRUHWKHIW%HDFK:LGWK$OWHUQDWLYHPD\UHVXOWLQVRPHGHJUDGDWLRQRIWKH VKDOORZHUSRUWLRQRIWKHVXUIJUDVVKDELWDWEXWZRXOGQRWUHVXOWLQDVLJQLILFDQWORVVRIVXUIJUDVV )RUWKHIW%HDFK:LGWK$OWHUQDWLYHWKHVDQGIURPWKHEHDFKILOOLVSUHGLFWHGWRPRYHRXWRI WKHHTXLOLEULXPIRRWSULQWZLWKLQ\HDUV
&RQVLGHUDEOHUHHIKDELWDWWKDWVXSSRUWVJLDQWNHOSIHDWKHUERDNHOSJRUJRQLDQVSDOPNHOSDQG VSDUVHVXUIJUDVVLVORFDWHGDSSUR[LPDWHO\WRIW WRP
IURPVKRUH/LWWOHRU
QRQHRIWKHILOOIURPWKHIW%HDFK:LGWK$OWHUQDWLYHLVH[SHFWHGWRUHDFKWKLVDUHD7KH&50 DQG 0RIIDWW  1LFKRO DQDO\VLV SUHGLFWHG WKDW OHVV WKDQ  IW  P
 RI VDQG IURP WKH 6DQ
&OHPHQWH EHDFK ILOO ZRXOG DFFUHWH LQ WKH NHOS EHGV &50 
  6LPLODUO\ EHDFK SURILOH
PRQLWRULQJRIDVRPHZKDWODUJHUYROXPHRIVDQGSODFHGRQWKHEHDFKDW2FHDQVLGHGHWHFWHGYHU\ OLWWOHPRYHPHQWRIWKHVDQGDWIW
P
RUPRUHIURPVKRUH
$SSHQGL['
%DVHGRQWKLV
LQIRUPDWLRQLWLVXQOLNHO\WKDWWKHSURSRVHGDFWLRQZRXOGUHVXOWLQWKHWUDQVSRUWRIHQRXJKVDQG LQWRNHOSEHGDUHDVWRUHVXOWLQDORQJWHUPQHWORVVRIWKHKDELWDW %LRORJLFDOPRQLWRULQJRIVHQVLWLYHKDELWDWVLQFOXGLQJURFN\LQWHUWLGDOVKDOORZVXEWLGDOUHHIVDQG NHOS IRUHVWV ZDV FRQGXFWHG IROORZLQJLPSOHPHQWDWLRQ RIWKH 6$1'$*5HJLRQDO%HDFK 6DQG SURMHFW ZKLFK SODFHG VDQG RQ VHYHUDO EHDFKHV LQ 6DQ 'LHJR &RXQW\ $0(& 
  %HDFK
SURILOHDQGELRORJLFDOPRQLWRULQJGDWDLQGLFDWHGDJUHDWGHDORIVSDWLDODQGWHPSRUDOYDULDELOLW\LQ VHGLPHQW WUDQVSRUW  +LJK VDQG OHYHOV ZHUH REVHUYHG LQ WKH LQWHUWLGDO  PRQWKV DIWHU WKH SODFHPHQW RI  F\
P

 RI VDQG RQ&DUGLII 6WDWH%HDFK EXWWKH VDQG GHSRVLWLRQ 189
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV


ZDVDSSDUHQWO\XQUHODWHGWRWKHEHDFKQRXULVKPHQWHYHQWEHFDXVHVLPLODUO\KLJKVDQGOHYHOVZHUH GRFXPHQWHGDWWKHFRQWUROVLWH7KHUHZDVQRHYLGHQFHRIVDQGEXULDORUVFRXUHIIHFWVDWHLWKHU WKHVLWHQHDUWKHEHDFKILOORUWKHFRQWUROVLWHH[FHSWIRUDIHZEXULHGPXVVHOVDWWKHRIIVKRUHUHHI DWWKH&DUGLIIVLWH
2I  VKDOORZ VXEWLGDO UHHI ORFDWLRQV PRQLWRUHG WR DVVHVV SRWHQWLDO LPSDFWV RI WKH 6$1'$* SURMHFW RQO\ WKUHH VKRZHG DQ LQFUHDVH LQ VHGLPHQW FRYHU WKDW PD\ KDYH EHHQ D UHVXOW RI WKH SURMHFW
$0(& 
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
$0(&
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
&KDPEHUV*URXS
$SSUR[LPDWHO\F\

P

RIVDQG
ZDVSODFHGRQ*ROHWD%HDFKLQ7KHURFN\LQWHUWLGDODUHDVGRZQFRDVWIURP*ROHWD%HDFK LQFUHDVHGLQVDQGFRYHUDQGGHSWKDQGGHFUHDVHGLQVXUIJUDVVFRYHULQWKHZLQWHU IROORZLQJWKH EHDFK QRXULVKPHQW SURMHFW  7KHVH FKDQJHV PD\ KDYH EHHQ UHODWHG WR VDQG IURP EHDFK QRXULVKPHQW+RZHYHU VXUIJUDVVDQG VDQGFRYHU IROORZLQJWKHEHDFKQRXULVKPHQWHYHQWZHUH ZLWKLQWKHYDULDELOLW\ VKRZQDWWKH VLWHSULRUWREHDFKQRXULVKPHQW6XUIJUDVVFRYHU UHFRYHUHG UDSLGO\ODWHULQ  DV VDQGPRYHG RXW RIWKH DUHDLQGLFDWLQJWKDWWKH VDQG GHSRVLWLRQZDV D EULHIRFFXUUHQFH
1RHIIHFWVRIWKH6DQWD%DUEDUDEHDFKQRXULVKPHQWSURMHFWZHUHREVHUYHGRQWKH*ROHWD%D\NHOS EHGV XQWLO$SULO   \HDUV IROORZLQJWKH EHDFK ILOO &KDPEHUV*URXS 
 ,Q$SULO
IROORZLQJDZHWZLQWHUVWRUPVHDVRQVDQGLQFUHDVHGRQDOO*ROHWD%D\WUDQVHFWVDQGNHOS GHFOLQHG$OWKRXJKVRPHRIWKHVHGLPHQWREVHUYHGLQWKH*ROHWDNHOSEHGVSUREDEO\FDPHIURP WKH EHDFK QRXULVKPHQW SURMHFWWKH VHGLPHQW IURPWKH EHDFK ILOO SURMHFW ZDV GZDUIHG E\ RWKHU LQSXWVLQFOXGLQJGLVFKDUJHRIPDWHULDOGUHGJHGIURPVORXJKVE\WKH)ORRG&RQWURO'LVWULFWLQWR WKH VXUI ]RQH DQG VHGLPHQW LQSXW IURP *ROHWD 6ORXJK GXULQJ DQG IROORZLQJ WKH VWRUPV  %\ 190
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

6HSWHPEHUVDQGGHFUHDVHGRQWZRRIWKHVKDOORZVXEWLGDOWUDQVHFWVDQGNHOSZDVDWSUH SURMHFW GHQVLWLHV  7KH PRVW GRZQFRDVW WUDQVHFW FRQWLQXHG WR EH EXULHG E\ VDQG  %\ $XJXVW VHGLPHQW GHFUHDVHG RQWKHPRVW GRZQFRDVWWUDQVHFW DOWKRXJK VHGLPHQWZDV VWLOO DERYH SUHEHDFK ILOO OHYHOV
 DQG NHOS GHQVLW\ DOWKRXJK LQFUHDVLQJ ZDV VWLOO ORZ  7KH NHOS PRQLWRULQJLQGLFDWHGWKDWVHGLPHQWDWLRQ
IURPEHDFKILOOLQFRQMXQFWLRQZLWKRWKHUVRXUFHV
PD\
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
EHDFK QRXULVKPHQW SURMHFW
  7KH EHDFK ILOO IURP WKLV DOWHUQDWLYH ZRXOG KDYH RQO\ PLQLPDO HIIHFWVRQWKHFRQVLGHUDEOHUHHIDUHDQHDUWKHHQGRI6DQ&OHPHQWH3LHUDQGZRXOGQRWGHJUDGH WKDWKDELWDW IRUOREVWHUV7HPSRUDU\GHJUDGDWLRQRIDOLPLWHGDPRXQWRILQVKRUHOREVWHUKDELWDW ZRXOGQRWEHVLJQLILFDQW
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itigation Measures:
00%5
$Q XQGHUZDWHU VXUYH\ IRU NHOS DQG VXUIJUDVV VKDOO EH FRQGXFWHG E\ PDULQH ELRORJLVWVSULRUWRWKHLQLWLDWLRQRIEHDFKILOODFWLYLWLHV%DVHGRQWKHVXUYH\DPRRULQJORFDWLRQ DQGDSLSHOLQHURXWHVKDOOEHVHOHFWHGWKDWPLQLPL]HVFRQWDFWZLWKVXUIJUDVVDQGNHOSKDELWDW,I NHOS DQG VXUIJUDVV FDQQRW EH DYRLGHG FRPSOHWHO\ LPPHGLDWHO\ IROORZLQJ EHDFK ILOO DFWLYLWLHV 191
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

DQRWKHUVXUYH\RIWKHPRRULQJDQGSLSHOLQHDUHDVVKDOOEHFRQGXFWHGWRGHWHUPLQHZKHWKHUNHOS DQG VXUIJUDVV ZHUH GDPDJHG  ,I VXEVWDQWLDO GDPDJHWR VXUIJUDVV RU NHOS RFFXUV DQ DGGLWLRQDO VXUYH\VKDOOEHFRQGXFWHGVL[PRQWKVDIWHUWKHEHDFKILOOWRGHWHUPLQHLINHOSDQGVXUIJUDVVKDYH UHFRYHUHG,IVXEVWDQWLDOGDPDJHWRNHOSDQGHHOJUDVVLVVWLOOREVHUYHGUHVWRUDWLRQRIKDELWDWVKDOO EHLPSOHPHQWHGLQFRQVXOWDWLRQZLWKWKHUHVRXUFHDJHQFLHV 00%5
6KDOORZVXEWLGDOVXUIJUDVVEHGVLQWKHYLFLQLW\RI6DQ&OHPHQWH%HDFKVKDOOEH PRQLWRUHGWRGHWHUPLQHZKHWKHUWKHSURSRVHGDFWLRQDGYHUVHO\DIIHFWVVKDOORZVXEWLGDOUHHIVDQG VXUIJUDVV8QGHUZDWHUWUDQVHFWVVKDOOEHHVWDEOLVKHGRIIVKRUHDQGGRZQFRDVWIURPWKHSURSRVHG UHFHLYHU EHDFK &RQWURO WUDQVHFWV DOVR VKDOO EH HVWDEOLVKHG XSFRDVW RI WKH SURMHFW DUHD 7KH WUDQVHFWV VKDOO EH PRQLWRUHG E\ TXDOLILHG ELRORJLVWV EHIRUH DQG DIWHU WKH SURSRVHG DFWLRQ WR GHWHUPLQHZKHWKHUWKHEHDFKILOOUHVXOWVLQDORQJWHUPORVVRIVXUIJUDVVDQGRUUHHIKDELWDW7KH PLWLJDWLRQ DQG PRQLWRULQJ SODQ LV LQFOXGHG DV $SSHQGL[ %  ,I DGYHUVH VLJQLILFDQW LPSDFWV WR VXUIJUDVVDQGRUUHHIKDELWDWFRPSDUHGWRFRQWUROVDQGEDVHOLQHFRQGLWLRQVDUHREVHUYHGIURPWKH PRQLWRULQJ VXEVHTXHQW QRXULVKPHQW DFWLYLWLHV ZLOO EH PRGLILHG WR DYRLG RU PLQLPL]H WKHVH LPSDFWVDVSDUWRIDGDSWLYHPDQDJHPHQW ,IDGYHUVHVLJQLILFDQWLPSDFWVVWLOODUHREVHUYHGDIWHU DOO UHDVRQDEOH DWWHPSWV WR DYRLG RU PLQLPL]H LPSDFWV KDYH EHHQ H[KDXVWHG DGGLWLRQDO UHQRXULVKPHQW ZRXOG QRW RFFXU XQWLO LPSDFWHG VXUIJUDVV KDV UHFRYHUHG RU FRPSHQVDWRU\ PLWLJDWLRQLVFRPSOHWHG&RPSHQVDWRU\PLWLJDWLRQZLOOFRQVLVWRIWKHFUHDWLRQRIVKDOORZURFN\ KDELWDWLQWKH3URMHFWDUHDDWDVLWHWREHGHWHUPLQHGLQFRQVXOWDWLRQZLWK12$$)LVKHULHVDQG &')*5RFN\ UHHIKDELWDWZLOOEHFUHDWHGLQWKH3URMHFWDUHDDWD UDWLRRIDFUHRI URFN\ UHHI KDELWDWFUHDWHGIRUDFUHRIURFN\UHHIKDELWDWEXULHG,IWKHPRQLWRULQJGHWHUPLQHVWKDWVXUIJUDVV KDVEHHQDIIHFWHGE\WKH3URMHFWDQH[SHULPHQWDOVXUIJUDVVUHVWRUDWLRQZLOOEHLPSOHPHQWHG$ VXFFHVVIXO PHWKRG WR WUDQVSODQW VXUIJUDVV KDV QRW EHHQ GHPRQVWUDWHG EXW UHFHQW VWXGLHV E\ UHVHDUFKHUV DW WKH 8QLYHUVLW\ RI &DOLIRUQLD 6DQWD %DUEDUD KDYH GHPRQVWUDWHG VRPH VXFFHVV UHVWRULQJVXUIJUDVVXVLQJVSULJV
%XOOHWDO

Summary of Significant Unavoidable Impacts:
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
$SSHQGL[%

,PSDFW %5
 Substantial impedance to the breeding, movement or migration of fish or wildlife.
7KHZDWHUVRIIVKRUH6DQ&OHPHQWH%HDFKDUHXVHGIRUPLJUDWLRQE\JUD\ZKDOHV,WLVH[SHFWHG WKDW JUD\ZKDOHVZRXOGDYRLGWKHLPPHGLDWH YLFLQLW\ RIWKH GUHGJHDUHD7KHUHLVHYLGHQFH RI 192
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

PDULQH PDPPDOV DYRLGLQJ GUHGJLQJ RSHUDWLRQV
5LFKDUGVRQ HW DO 


  %HFDXVH WKH QRLVH
WXUELGLW\ DQG GLVWXUEDQFH RI GUHGJLQJ ZRXOG EH OLPLWHG WKH LPPHGLDWH DUHD VXUURXQGLQJ WKH GUHGJLQJDFWLYLWLHVWKHDUHDJUD\ZKDOHVZLOODYRLGZRXOGFRQVLVWRIDVPDOOSRUWLRQRIWKHJUD\ ZKDOH PLJUDWLRQ DUHD 7KHUHIRUH GUHGJLQJ ZRXOG QRW UHVXOW LQ D VXEVWDQWLDO LPSHGDQFH WR WKH PRYHPHQWRUPLJUDWLRQRIJUD\ZKDOHVRURWKHUPDULQHPDPPDOVWKDWPD\EHPLJUDWLQJWKURXJK WKHDUHD
*UXQLRQPD\XVHWKHEHDFKDW6DQ&OHPHQWH IRU VSDZQLQJ7KLV ILVKOD\VLWVHJJVLQWKHKLJK LQWHUWLGDO ]RQH EHWZHHQ0DUFK DQG $XJXVW  7KH EHDFK ILOO ZLOO QRW RFFXU GXULQJ WKH JUXQLRQ VSDZQLQJVHDVRQ7KHUHIRUHEHDFKFRQVWUXFWLRQZRXOGQRWLPSDFWJUXQLRQ Mitigation Measures
1RQH
Summary of Significant Unavoidable Impacts
1RQH
,PSDFW %5
 Substantial loss to the population of any native fish, wildlife or vegetation.

For the purpose of this analysis substantial is defined as a change in a population that is detectable over natural variability for a period of five years or more. 2IIVKRUH'UHGJLQJ
0RVW RI WKH EHQWKLF LQYHUWHEUDWHV ZLWKLQ WKH DUHD GUHGJHG IURP RIIVKRUH 2FHDQVLGH ZRXOG EH NLOOHG E\ WKH GUHGJLQJ  7KH ERUURZ VLWHV GHPHQVLRQV DUH ODUJH HQRXJK LQ ZKLFK EHQWKLFV LQYHUWHEUDWHVZLOOLQJUHVVIURPRWKHUQHDUVRXUFHSRSXODWLRQV7KHERUURZVLWH %RUURZ$UHD

ORFDWHG RIIVKRUH2FHDQVLGH
VKRZQLQ)LJXUH 
LVDSSUR[LPDWHO\
DFUHVZLWKD DFUH
DUHDLQVWHDGWKHERUURZVLWH
%RUURZ$UHD$
WKDWFRQWDLQVWKHPRUHGHVLUDEOHPDWHULDO6RPH
PRELOH RUJDQLVPV VXFK DV FUDEVPD\ HVFDSHWKH GUHGJH5HFRYHU\ RIWKH EHQWKLFLQYHUWHEUDWH FRPPXQLW\ ZRXOG EH H[SHFWHG WR EHJLQ DOPRVW LPPHGLDWHO\ ZLWK VHWWOHPHQW RI ODUYDH DQG LPPLJUDWLRQ RI PRELOH VSHFLHV IURP QHDUE\ XQDIIHFWHG DUHDV  5HFRYHU\ RI WKH LQIDXQDO FRPPXQLW\WRYDOXHVFRPSDUDEOHWRSUHGUHGJLQJOHYHOVPD\RFFXULQDVOLWWOHWLPHDVVL[PRQWKV RUDVORQJDVWZR\HDUVZLWKDQDYHUDJHRIDERXWRQH\HDU &6/&86):6DQG86$&(

,QVRPHVWXGLHVGLYHUVLW\DQGDEXQGDQFHRIEHQWKLFLQYHUWHEUDWHVLQFUHDVHGDIWHUGUHGJLQJDIWHUD VKRUW UHFRYHU\ SHULRG  3HULRGLF VDPSOLQJ IROORZLQJ WKH 

 GUHGJLQJ RIWKH 6XUIVLGH6XQVHW
ERUURZVLWHRII2UDQJH&RXQW\LQLWLDOO\IRXQGIHZHUPDFURLQYHUWHEUDWHVWKDQXQGUHGJHGFRQWURO DUHDVEXWZLWKLQOHVVWKDQ\HDUWKHUHZHUHQRGLIIHUHQFHVFRPSDUHGWRFRQWURODUHDV &KDPEHUV
*URXS 


  7KH 6XUIVLGH6XQVHW ERUURZ VLWH ZDV H[FDYDWHG DJDLQ LQ 

  %LRORJLFDO
VDPSOLQJRIWKHVLWHLQ

REVHUYHGPRUHPDFURLQYHUWHEUDWHVSHFLHVDQGDJUHDWHUDEXQGDQFHRI RUJDQLVPV DW WKH ERUURZ VLWH FRPSDUHG WR QHDUE\ FRQWURO DUHDV ' 'LHQHU 0(& $QDO\WLFDO
6\VWHPVSHUVRQDOFRPPXQLFDWLRQ
&KDPEHUV*URXS



VDPSOHGDERUURZSLWZLWKLQ
/RQJ %HDFK +DUERU DQG IRXQG WKDW WKH DEXQGDQFH QXPEHU RI WD[D DQG VSHFLHV FRPSRVLWLRQ ZLWKLQ WKH ERUURZ VLWH ZDV VLPLODU WR WKDW LQ VKDOORZHU DUHDV RXWVLGH WKH SLW  7KH LPSDFW RI GUHGJLQJ RQ LQYHUWHEUDWHV LV QRW VLJQLILFDQW EHFDXVH WKH DIIHFWHG DUHD ZRXOG EH VPDOO DQG WKH ELRWDZRXOGUHFRYHUTXLFNO\7KHUHZRXOGQRWEHDGLVFHUQLEOHLPSDFWRQWKHSRSXODWLRQRIDQ\ VSHFLHV
193
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

)LVKHVZRXOGEHH[SHFWHGWRDYRLGWKHGUHGJLQJDUHDGXULQJGUHGJLQJRSHUDWLRQV)LVKVDPSOLQJ ZDVFRQGXFWHG IROORZLQJGUHGJLQJLQ0DULQDGHO5H\+DUERUDQGDQXQXVXDOO\ORZQXPEHURI ILVK VSHFLHV ZDV FROOHFWHG FRPSDUHG WR SUHGUHGJLQJ VXUYH\V 6RXOH HW DO 


  7KH
LQYHVWLJDWRUV FRQFOXGHGWKDWWKH GUHGJLQJ KDG GLVWXUEHGWKH ILVKHV :LWKLQ D IHZ PRQWKVWKH QXPEHURIILVKVSHFLHVFROOHFWHGUHWXUQHGWRSUHGUHGJLQJOHYHOV/DERUDWRU\VWXGLHVKDYHIRXQG WKDWDOOOLIHVWDJHVRIHVWXDULQHDQGFRDVWDOILVKHVFDQVXUYLYHKLJKOHYHOVRIWXUELGLW\IRUKRXUV RUPRUH
/D6DOOHHWDO

&ODUNHDQG:LOEHU
)LVKHVZLWKLQWKH2FHDQVLGHVRXUFHVLWH
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

 GUHGJLQJ HSLVRGH EXW ZLWKLQ OHVV WKDQ D \HDU WKHUH ZHUH QR GLIIHUHQFHV FRPSDUHG WR FRQWURO DUHDV
&KDPEHUV *URXS 


  6DPSOLQJ RI WKH 6XUIVLGH6XQVHW ERUURZ
DUHDLQ

 IROORZLQJD

GUHGJLQJHSLVRGHGHWHFWHGDJUHDWHUQXPEHURI ILVK VSHFLHVEXW ORZHU WRWDO ILVK DEXQGDQFH DW WKH ERUURZ VLWH FRPSDUHG WR FRQWURO DUHDV ' 'LHQHU 0(&
$QDO\WLFDO 6\VWHPV SHUVRQDO FRPPXQLFDWLRQ 
  7HPSRUDU\ UHGXFWLRQ RI WKH SUH\ EDVH
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
'LVFKDUJHRIRIIVKRUHVDQGRQWRUHFHLYHUEHDFKHVZRXOGEXU\LQWHUWLGDOLQYHUWHEUDWHVOLYLQJLQWKH VDQGRIUHFHLYHUEHDFKHV0RVWVWXGLHVKDYHIRXQGWKDWWKHGLYHUVLW\ELRPDVVDQGDEXQGDQFHRI VDQG\ LQWHUWLGDO LQYHUWHEUDWHV GHFOLQHV IROORZLQJ EHDFK QRXULVKPHQW EXW WKDW WKH FRPPXQLW\ UHFRYHUVZLWKLQDIHZPRQWKV
5D\DQG&ODUNH3DUUHWDO

7KHUHIRUHWKHHIIHFWVRI
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
6HFWLRQ
3UHSDUHGE\&KDPEHUV*URXS,QF  )LQDO6DQ&OHPHQWH6KRUHOLQH3URWHFWLRQ(,6(,5  3UHSDUHGIRU86$UP\&RUSVRI(QJLQHHUV

KDYH D GLVFHUQLEOH LPSDFW RQ WKH SRSXODWLRQ RI DQ\ ILVK VSHFLHV DQG LPSDFWV ZRXOG QRW EH VLJQLILFDQW
,WLV H[SHFWHGWKDW VKRUHELUGV ZLOO DYRLGWKHLPPHGLDWH DUHDV ZKHUH SHRSOH DQG HTXLSPHQW DUH FRQVWUXFWLQJWKHEHDFK&KDPEHUV*URXS

PRQLWRUHGGUHGJLQJRIDVDQGEDULQWKH7DOEHUW
&KDQQHOLQ+XQWLQJWRQ%HDFKDQGSODFHPHQWRIWKHGUHGJHG VDQGLQWKHXSSHULQWHUWLGDORIWKH DGMDFHQW EHDFK  6KRUHELUGV DYRLGHG WKH LPPHGLDWH DUHDV ZKHUH WKH GUHGJLQJ DQG GLVSRVDO DFWLYLWLHVZHUHRFFXUULQJEXWIRUDJHGXQGLVWXUEHGLQWKHPLGWRORZHULQWHUWLGDORQWKHDGMDFHQW EHDFKHV+RZHYHU$0(&

QRWHGWKDWGXULQJWKH6$1'$*SURMHFWVRPHVKRUHELUGV
HJ
VDQGSLSHUV JRGZLWV FXUOHZV
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
3DUUHWDO

%HDFKILOOZRXOGRFFXURQO\RQDOLPLWHGSRUWLRQRIWKHDYDLODEOHVDQG\ EHDFK LQ WKH 6DQ &OHPHQWH DUHD  7KHUHIRUH WKH SURSRVHG DFWLRQ LV QRW H[SHFWHG WR KDYH D VLJQLILFDQWLPSDFWRQWKHSUH\EDVHIRUVKRUHELUGV7KHJUHDWHUDPRXQWRIVDQGRQ6DQ&OHPHQWH %HDFK IROORZLQJ EHDFK QRXULVKPHQW ZRXOG EH H[SHFWHG WR KDYH D EHQHILFLDO HIIHFW RQ PDULQH ELUGVE\LQFUHDVLQJUHVWLQJKDELWDW7KH6$1'$*SURMHFWDSSHDUHGWRKDYHKDGDSRVLWLYHHIIHFW RQELUGXVHRIUHFHLYHUEHDFKHVLQ(QFLQLWDV
6$,&
3ULRUWREHDFKQRXULVKPHQWIHZELUGV
ZHUHREVHUYHGRQEHDFKHVZLWKH[WHQVLYHFREEOHFRYHURUVKDOORZVDQGGHSWKVLQWKHXSSHUDQG PLGGOHLQWHUWLGDO]RQHV)ROORZLQJEHDFKQRXULVKPHQWWKHWRWDOQXPEHURIELUGVSHFLHVDQGELUG DEXQGDQFHLQFUHDVHGRQUHFHLYHUVLWHVDQGZDVKLJKHUWKDQRQQRQUHFHLYHUVLWHV7KHLQFUHDVHLQ ELUGXVHDWWKHVDQGSODFHPHQWVLWHV IROORZLQJEHDFKQRXULVKPHQWZDVWKRXJKWWREHD UHVXOWRI WKHJUHDWHUEHDFKZLGWKVFUHDWHGE\WKHEHDFKQRXULVKPHQWSURMHFW6LPLODUO\&=5,QFRUSRUDWHG

← All documents from this meeting