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Show 438 INTERNATIONAL TREATIES "SECTION 3. PAYMENT BY CSPE "Contemporaneously with the exchange of the instruments of rati- fication, CSPE is causing to be paid to Canada the sum, in United States funds, of $254,400,000.00 as of October 1, 1964, subject to ad- justment in the event of an earlier payment thereof to the then present worth at a discount rate of 4^ percent per annum, which sum shall be applied towards the cost of constructing the Treaty projects through a transfer of the sum by Canada to the Government of British Columbia pursuant to arrangements entered into between Canada and British Columbia. The Authority acknowledges that the receipt by Canada of the said sum is consideration for all the covenants of the authority in this Agreement and particularly the covenants to con- struct and operate the Treaty projects and is a complete discharge of CSPE for the full purchase price for the sale effected in Section 2 of this Agreement. "SECTION 4. COVENANTS "(1) The Authority covenants and agrees with CSPE that it will undertake all requisite construction work in a good and workmanlike manner and that the storages described in Article II of the Treaty shall be fully operative for power purposes under this Agreement by the following dates : (a) The Duncan Lake storage, April 1, 1968. (b) The Arrow Lakes storage, April 1, 1969. (c) The Mica Creek storage, April 1, 1973. To be fully operative the facilities for such storages shall be completed to the extent that storages are available and outlet facilities are oper- able for regulating flows in accordance with flood control and hydro- electric operating plans as contemplated by the Treaty. "(2) The Authority covenants and agrees with CSPE that it will operate and maintain the Treaty storages in a good and workmanlike manner and in accordance with the provisions of the Treaty and any arrangements made pursuant to the Treaty and that it will not take any action prohibited by the Treaty. "SECTION 5. FLOOD CONTROL "Nothing in this Agreement affects or alters the obligations, rights, and privileges of the entities under the Treaty relating to operation and compensation for flood control and without restricting the gen- erality of the foregoing, it is expressly agreed that any reduction in generation in the United States brought about by operation for flood control under the Treaty or any flood control arrangements made pur- suant to the Treaty shall not be a reduction in the Canadian Entitle- ment for which compensation is required under this Agreement. "SECTION 6. COMPENSATION "In the event the Canadian Entitlement is reduced as a result of a failure to comply with Section 4 of this Agreement: "(1) If the failure results other than from wilful omission by the Authority to fulfill its obligations under this Agreement, the United |
