I did receive a response, here's what they said.
"Thank you for your message.
Scrapie has been confirmed in the quarantined sheep flock. This is the second case of scrapie associated with this farm.
[You must be registered and logged in to see this link.] Information on the protocols followed for all scrapie cases can be found at:
[You must be registered and logged in to see this link.] Compensation may be withheld if there are violations of the Health of Animals Act or Regulations during quarantine or disease control measures.
Thank you for using the CFIA web site."
This is taken from the second link they added.
"All sheep and goats aged 12 months and younger that may have been exposed to an infected birthing environment are ordered slaughtered at an abattoir. Meat from these animals may enter the marketplace. According to Health Canada, there is no known link between scrapie and human health.
Research shows that sheep with a particular genetic makeup are more at risk of developing scrapie. Therefore, exposed adult sheep are subjected to a blood test, and those determined to be at high risk for scrapie are destroyed and disposed of. The animals considered to be at low risk for the disease remain on the farm.
Genetic profiles that can consistently predict a high risk of developing scrapie have not yet been developed for goats, therefore all adult goats on the farm must be humanely destroyed and disposed of.
When the CFIA district veterinarian determines which animals on a farm must be destroyed, he or she issues an "order for destruction." It outlines what is to be destroyed, as well as the method of destruction and what will be provided to you in compensation.
Common disposal methods include slaughter at an abattoir for animals less than 12 months of age, burial on the farm or at another site*, controlled rendering or incineration. Within scrapie control procedures, all associated destruction, disposal and transportation costs may be covered by the CFIA."
So. Im still a little currious why the four lambs were recently also marked for testing/destruction, were they offspring of the infected sheep that died? And I'm interested to find information on this "Heritage Plan," if indeed it was a reasonable proposal, she is completely in the wrong. I'll e-mail them back and see what they say.