Schedule B

(The following text reflects 1999 amendments)

THIS AGREEMENT is made in quadruplicate this THIRTIETH day of OCTOBER, 1969, A.D.

BETWEEN:

HER Majesty, the Queen, in right of Saskatchewan, represented herein by the Minister in charge of The Water Resources Commission Act of the said Province (Hereinafter called "Saskatchewan)

- and -

HER Majesty, the Queen, in right of Manitoba, represented herein by the Minister in charge of The Water Control and Conservation Branch Act of the said Province (Hereinafter called "Manitoba")

WHEREAS under natural conditions the waters of the watercourses hereinafter referred to arising in or flowing through the Province of Saskatchewan would flow into the Province of Manitoba;

AND WHEREAS the parties hereto deem it to be in their mutual interest and in the interest of Alberta that an agreement in principle be reached among the said three Provinces as to the apportionment of interprovincial waters among them;

AND WHEREAS the parties hereto are of the opinion that an equitable apportionment of such waters as between the adjoining Provinces of Saskatchewan and Manitoba would be to permit the Province of Saskatchewan to make a net depletion of one-half the natural flow of water arising in, and one-half the flow of water flowing into, the Province of Saskatchewan, and to permit the remaining one-half of the flow of water of each such water-course to flow into the Province of Manitoba, subject to certain rights as may hereafter be mutually agreed upon in writing;

AND WHEREAS on the basis of the forgoing apportionment as between the Provinces of Saskatchewan and Manitoba, the parties hereto are of the opinion that in a similar manner, an equitable apportionment of the natural flow of the said watercourses arising in or flowing through the Province of Alberta would be to permit the Province of Alberta to make a net depletion of one-half thereof, subject to such prior rights as may be mutually acknowledged by the said Provinces of Alberta, Saskatchewan and Manitoba;

AND WHEREAS the parties hereto recognize the continuing need for consultation and co-operation as between themselves and with Alberta with respect to the matters herein referred to so that the interests of all said Provinces are best served;

NOW THIS AGREEMENT witnesseth as follows:

1. IN THIS AGREEMENT:

(a) "Natural flow' means the quantity of water which would naturally flow in any watercourse had the flow not been affected by human interference or human intervention.

(b) "Watercourse" means any river, stream, creek, inter-provincial lake, or other natural channel which, from time to time, carries a flowing body of water from the Province of Saskatchewan to the Province of Manitoba, and includes all tributaries of each such river, stream, creek, inter-provincial lake, or other natural channel which do not themselves cross the common boundary between the Provinces of Saskatchewan and Manitoba. Such tributaries as do themselves cross the common boundary between the Provinces of Saskatchewan and Manitoba shall be deemed to be ?watercourses? for the purpose of this agreement.

(c) "Inter-provincial lake" means any lake that is situated on or intersected by the common boundary between the Provinces of Saskatchewan and Manitoba which either has no outlet or, if it does have an outlet, drains from time to time into a river, stream, creek, lake, or other natural channel situated in the Province of Manitoba, or into a river, stream, creek, lake, or other natural channel situated in Saskatchewan and which carries a flowing body of water from the Province of Saskatchewan to the Province of Manitoba.

2. (a) The parties hereto shall mutually establish a method by which to determine the natural flow of each watercourse flowing across their said common boundary.

(b) For the purpose of this agreement, the said natural flow shall be determined at a point as near as reasonably may be to their said common boundary.

3. Saskatchewan shall permit in each watercourse the following quantity of water to flow into the Province of Manitoba during the period from January 1 of each year to the following December 31 of that year, a quantity of water equal to the natural flow for that period determined at the point referred to in paragraph 2(b) hereof, less:

(a) one-half the water flowing into the Province of Saskatchewan in that watercourse from the Province of Alberta; and

(b) any water which would form part of the natural flow in that watercourse but does not flow into the Province of Saskatchewan because of the implementation of any provision of any subsisting water apportionment agreement made between Alberta and Saskatchewan and approved by Manitoba; and

(c) one-half of the natural flow arising in the Province of Saskatchewan.

The actual flow shall be adjusted from time to time by mutual agreement on an equitable basis during such period but this shall not restrict or prohibit Saskatchewan from diverting, storing or consuming any quantity of water from any watercourse, provided that Saskatchewan diverts water to which it is entitled of comparable quality from other streams or rivers into such watercourse to meet its commitments to Manitoba with respect to each watercourse.

4. Saskatchewan shall be entitled during such period to consume or to divert or store for its consumptive use the water it is not required to permit to flow into Manitoba in each watercourse under paragraph 3 hereof, but such consumption or diversion shall be made equitably depending on the actual flow of water in each watercourse and the requirements of each Province from time to time, but Saskatchewan shall permit sufficient water to flow into Manitoba to meet its commitments during such period under paragraph 3 hereof.

5. The parties hereto shall work together and co-operate to the fullest extent, each with the other, for the use of waters flowing from the Province of Saskatchewan into the Province of Manitoba, including the construction and operation of approved projects of mutual advantage to the said Provinces on a cost-share basis proportionate to the benefits derived therefrom by each Province (the approval of which projects shall not be unreasonably withheld by either of the parties hereto) and shall enter into such other arrangements, agreements or accords with each other, and with the Governments of Canada and other Provinces to best achieve the principles herein agreed upon.

6. If at any time any dispute, difference or question shall arise between the parties or their representatives touching this agreement or the construction, meaning and effect thereof, or anything therein, or the rights or liabilities of the parties or their representatives thereunder or otherwise in respect thereto then every such dispute, difference or question shall be referred for determination to the Federal Court of Canada under the provisions of the Federal Court Act of Canada, and each of the parties hereto agrees to maintain or enact the necessary legislation to provide the Federal Court of Canada with jurisdiction to determine any such dispute, difference or question in the manner provided under the Federal Court Act of Canada.

7. This agreement shall become effective upon the execution of an agreement by Canada, Alberta, Manitoba and Saskatchewan relative to the apportionment of waters referred to in this agreement.

IN WITNESS WHEREOF Saskatchewan has caused these presents to be executed by its Minister in charge of The Water Resources Commission Act, and Manitoba has caused these presents to be executed by its Minister in charge of The Water Control and Conservation Branch Act on the day and year first above mentioned.

Harold W. Pope
Witness to the signature of the Minister in charge of The Water Resources Commission Act

Allan R. Guy
Minister in charge of The Water Resources Commission Act

Thomas E. Weber
Witness to the signature of the Minister in charge of The Water Control and Conservation Branch Act

Leonard S. Evans
Minister in charge of The Water Control and Conservation Branch Act.

Sections 1(b), 1(c), 3 and 6 amended on October 1, 1999.