OCR Text |
Show 432 INTERNATIONAL TREATIES "5. The Purchaser shall have and may exercise the rights of the British Columbia Hydro and Power Authority relating to the nego- tiation and conclusion with the United States entity, of proposals relating to the exchanges authorized by Article VIII (2) of the Treaty with respect to any portion of Canada's entitlement to downstream power benefits sold to the Purchaser. "B. The Notes to be exchanged pursuant to Article VIII (1) of the Treaty shall contain, inter alia, provisions incorporating the follow- ing requirements: "1. As soon as practicable after start of construction of each Treaty project the Canadian and United States entities shall agree upon a program for filling the storage provided by the project. The filling program shall have the objective of having the storages de- scribed in Article 11(2) (c) and Article 11(2) (b) of the Treaty full by September 1 following the date when the storages become fully operative and the storage provided by the dam mentioned in Article 11(2) (a) of the Treaty full to 15 million acre-feet by September 1, 1975. This objective shall be reflected in the hydroelectric operating plans and shall take into account generating requirements at-site and downstream in Canada and the United States of America to meet loads. "2. In the event the United States of America becomes entitled to compensation in respect of a breach of the obligation under Article IV(6) of the Treaty to commence full operation of a storage, compen- sation payable to the United States of America under Article XVIII (5) (a) of the Treaty shall be made in an amount equal to 2.70 mills per kilowatt-hour, and 46 cents per kilowatt of dependable capacity for each month or fraction thereof, in United States funds, for and in lieu of the power which would have been forfeited under Article XVIII(5) (a) of the Treaty if Canada's entitlement to downstream power benefits had not been sold in the United States of America. Al- ternatively, Canada may, at its option, supply capacity and energy to the United States entity in an amount equal to that which would have been forfeited, together with appropriate adjustments to reflect trans- mission costs in the United States of America, delivery to be made when the loss would otherwise have occurred. "3. A diminution of Canada's entitlement to downstream power benefits sold in the United States of America which is directly attrib- utable to a failure to comply with paragraph A.I (a) or paragraph A.2 of this attachment, in the absence of compensation therefor by the British Columbia Hydro and Power Authority, constitutes a breach of the Treaty by Canada and Article XVIII (5) of the Treaty and the exculpatory provisions in Article XVIII of the Treaty do not apply to such breach. Compensation or replacement of power as specified in paragraph A.l(c) of this attachment shall be made by Canada and shall be accepted by the United States of America as complete satis- faction of Canada's liability under this paragraph. "4. For any year in which Canada's entitlement to downstream power benefits is sold in the United States of America, the United States entity may decide the amount of the downstream power benefits for purposes connected with the disposition thereof in the United States of America. This authorization, however, shall not affect the rights or relieve the obligations of the Canadian and United States |