Kitsumkalum Agreement-in-Principle 32. If British Columbia issues a Water Licence under paragraph 31, the water reservation established under paragraph 29 33. will terminate in respect of that Stream. Water Management 34. Kitsumkalum may participate in water planning processes in the Kitsumkalum Area. 35. With respect to the management of water within the Kitsumkalum Area, Kitsumkalum and Canada or British Columbia may negotiate agreements to: a) define respective roles and responsibilities of the Parties; b) coordinate activities related to: c) 36. i) flood response and public safety; ii) protection of water quality; iii) water conservation; iv) Groundwater management and regulation; v) resource inventory; vi) monitoring of water quality and quantity; vii) management of and access to information; viii) water management objectives and planning; ix) any other matters as agreed to by the Parties; and identify watersheds that require water management planning. If a watershed includes both Kitsumkalum Lands and provincial Crown land, and if Kitsumkalum or British Columbia considers that the watershed is an important source of drinking water, British Columbia and Kitsumkalum may negotiate agreements on the protection of drinking water in the area. Page 50 of 140

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