The release of phosphorus from the Icy Waters fish farm on Fish Lake Road is altering the natural habitat downstream, according to submissions from the territorial government to the Yukon Territory Water Board.

Government officials told board members Wednesday there is no evidence the nutrient-enhancing material is killing natural fish stocks in the McIntyre Creek and Porter Creek systems.

There is ample evidence, however, that the additional phosphorus above natural levels is increasing the growth of plants and algae downstream, Bob Truelson of the Department of the Environment told the board.

Truelson said the government is recommending the board not allow Icy Waters Ltd. any increase in the limits of total phosphorus set out in its existing licence, if nutrient levels at Pumphouse Pond and Hidden Lake are to remain the same or be reduced.

'For now, what we are saying if you want to hold the trophic status or reduce it, you probably do not want any increase in total phosphorus,' Truelson said.

The government does agree the water licence should be changed to reflect the volumes of water used by the fish farm. However, it does maintain the total amount of phosphorus should not be allowed to rise, even if water volumes are expanded.

It's also recommending that the board provide Icy Waters with a two-year window from the date of the new licence to get its phosphorus concentrations in compliance with licence limits.

Evidence put before the board by Truelson shows the fish farm failed to meet its licence limit for phosphorus numerous times since 1995 in both summer and winter months.

Icy Waters president John Rose told regulatory authorities this morning the fish farm would like an allowance for phosphorus three times more than the existing licence permits for the first two years of the new licence.

It would like allowances for total phosphorus of .18 milligrams per litre in year one and two, .15 mg/l in year three, .13 mg/l in year four and .1 mg/1 in five. The government is asking the board to keep the licence limit for phosphorus at .065 mg/l.

Rose was asked if the company would be willing to assist in measures downstream from the farm to help reduce impacts.

He said Icy Waters most certainly would, in keeping with its mandate to be a good corporate citizen. The company, he said during the hearings, would assist with downstream mitigating measures even if there was no evidence to show the Arctic char facility was responsible for the impact.

Rose also noted that above-average temperatures in 1997, '98 and last year may have combined with natural levels of phosphorus to produce algae blooms larger than normal.

Truelson told the board there needs to be much more research into the creek systems to understand more precisely the impacts the fish farm is having on the natural habitat.

Icy Waters applied for an amendment to its water licence to increase the allowance for phosphorus concentrations, as well as expand the limits of water volumes to reflect the amount of water that flows through the farm system naturally.

The company is also requesting a number of other changes that it maintains will help manage the facility on a day-to-day basis without having to contact the water board each time it wants to make improvements onsite.

Board chair Shanon Cooper opened the three days of hearings yesterday, noting the board does not normally hold a public hearing for licence amendments. It was only after there were several calls in February 2003 for a public hearing that the board decided to hold one, she said.

While there were numerous written submissions, Cooper added, only a handful requested intervenor status at the hearing.

Icy Waters opened the hearing with its application, followed yesterday and this morning by the government.

Environment Canada, together with the Department of Fisheries and Oceans, were scheduled for submissions today. Their position is largely in agreement with the Yukon government's.

Also scheduled, however, is a submission from the Experiential Science 11 class which has been monitoring Porter Creek and Hidden Lake for the past decade.

The class' written submission on file with the board said nutrients released by Icy Waters has caused algae blooms on more than 70 per cent of Hidden Lake during the summer.

The paper also suggests the presence of Arctic char in Porter Creek and Hidden Lake is evidence of regular escapement of fish from the facility.

The Fish Lake Road facility has been producing Arctic char since 1987.

Fish grown at the farm are sold around the world.