Kitsumkalum Agreement-in-Principle 9. The volume of flow approved in a Water Licence issued under paragraph 6 will be deducted from the unrecorded volume of flow in the Kitsumkalum water reservation established under paragraph 1. 10. If a Water Licence issued pursuant to paragraph 6 is cancelled, expires or otherwise terminates, the volume of flow in that Water Licence will be added back to the unrecorded volume of flow in Kitsumkalum’s water reservation established under paragraph 1. 11. The total volumes of flow under the Water Licences applied against Kitsumkalum’s water reservation established in paragraph 1 for each Stream will not exceed the monthly percentage of the Available Flow of that Stream as listed in a Schedule to the Final Agreement. 12. The Final Agreement will not preclude Kitsumkalum or Kitsumkalum Members from applying for additional Water Licences under Provincial Law not provided for under the water reservation established under paragraph 1. 13. British Columbia will Consult with Kitsumkalum respecting applications for Water Licences made after the Effective Date where the applicant may reasonably require access across or an interest in Kitsumkalum Lands. 14. If a person other than Kitsumkalum, or a Kitsumkalum Public Institution has a Water Licence and reasonably requires access across, or an interest in Kitsumkalum Lands for the construction, maintenance, improvement or operation of works authorized under the Water Licence, Kitsumkalum may not unreasonably withhold consent, and will take reasonable steps, to ensure that access or the granting of that interest, if the licence holder offers fair compensation to the owner of the estate or interest affected. 15. If Kitsumkalum, Kitsumkalum Public Institution, Kitsumkalum Corporation or a Kitsumkalum Member has a Water Licence approved under paragraph 6 and reasonably requires access across, or an interest in, Crown land for the construction, maintenance, improvement or operation of work authorized under the licence, British Columbia or Canada, as the case may be, will grant the access or interest on reasonable terms in accordance with Provincial Law. 16. British Columbia or Kitsumkalum may refer a dispute arising under paragraph 14 to be finally determined by arbitration in accordance with the Dispute Resolution Chapter. For the purposes of this paragraph, British Columbia will act on behalf of the third party on such terms and conditions as they may agree. 17. Sections 27, 28, 29 and 30 of the Water Act respecting a licencee’s right to expropriate land do not apply on Kitsumkalum Lands. 18. For greater certainty, paragraph 14 does not apply to works, or access to works, on Kitsumkalum Lands which are: 19. a) authorized under the associated Water Licences referred to in Appendix C-3 Part 2 of this Agreement; and b) continue as provincial permits of occupation in accordance with provincial law or are replaced by Kitsumkalum under paragraph 24 of the Lands Chapter. For greater certainty, the provisions of the Water Act regarding access for the construction, maintenance, improvement or operation of works across fee simple lands off Kitsumkalum Lands apply with respect to Water Licences issued in accordance with paragraph 6. Page 48 of 140

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