Kitsumkalum Agreement-in-Principle CHAPTER 6 – WATER Water Reservation 1. Subject to there being sufficient Available Flow, the Final Agreement will provide for a water reservation under the Water Act in favour of Kitsumkalum. 2. The Kitsumkalum water reservation established under the Water Act for Kitsumkalum will specify the volume of unrecorded water, the Streams that are subject to the water reservation and the extent to which the water reservation applies to particular streams. 3. Water reserved pursuant to the Kitsumkalum water reservation may be used for domestic, industrial and agricultural purposes and excludes those purposes set out in paragraphs 28 to 32 of this Chapter. 4. The Final Agreement will provide that the Kitsumkalum water reservation will have priority over all Water Licences on that Stream, other than existing Water Licences on that Stream, Water Licences applied for on that Stream before a date to be agreed upon before the Final Agreement, and Water Licences issued from a water reservation established on that Stream before the date to be agreed upon before the Final Agreement. Water Licences 5. A person seeking a Water Licence for volumes of water to be applied against the Kitsumkalum water reservation must obtain written consent from Kitsumkalum before submitting that application to British Columbia. 6. If a person applies to British Columbia under paragraph 5 for a Water Licence for volumes of flow to be applied against the Kitsumkalum water reservation and: a) Kitsumkalum has consented to the application; b) the application conforms to provincial regulatory requirements; c) there is sufficient unrecorded volume of flow in the Kitsumkalum water reservation in accordance with paragraph 1; d) where required, the application includes provisions for storage where the monthly Available Flow during periods of low flow is insufficient to meet proposed consumption; and e) the application is for a volume of flow that, together with the total volume of flow licensed for that Stream under the Final Agreement, does not exceed the percentage of monthly Available Flow for that Stream as set out in the Final Agreement, then British Columbia will approve the application and issue the Water Licence. 7. A Water Licence issued to a person for use on Kitsumkalum Lands under paragraph 6 will not be subject to any rentals, fees, or other charges, except taxes, by British Columbia. 8. For greater certainty, a person may apply for Water Licences under paragraph 6 for use of water off Kitsumkalum Lands. Page 47 of 140

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