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THIS AGREEMENT MADE IN QUARUPLICATE the 16th day of
December A.D 1977

BETWEEN:

THE GOVERNMENT OF MANITOBA, ("Manitoba"),

- and -

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THE MANITOBA HYDRO-ELECTRIC BOARD ("Hydro")
  
       
 
- and -
  
       
 
THE NORTHERN FLOOD COMMITTEE, INC.,
 
 
a corporation acting with the financial support of Canada, which was incorporated by the Indian Bands of Nelson House, Norway House, Cross Lake, Split Lake and York Factory, and negotiated on their behalf ("Committee").
  
 
   
 
WHEREAS:
  
 
 
 
A.
Hydro and Manitoba are engaged in the development of hydro-electric power through projects commonly known as the Lake Winnipeg Regulation and Churchill River Diversion Project ("the project" as hereinafter defined):
 
 
 
 
B.
As a result of the Project, the water regime of certain waters, rivers, lakes and streams has been, or will be modified;
  
 
 
 
C.
As result of the modification of the water regime, adverse effects have occurred, and may continue to occur, on the lands, pursuits, activities and lifestyles, of the residents, individually and collectively, of the Reserves of Cross Lake, Nelson House, Split Lake and York Landing ("the Reserves" as hereinafter defined);
  
 
 
 
D.
The parties wish to ensure that all persons as defined herein, who may be, or have been, directly or in-directly, adversely affected by the Project shall be dealt with fairly and equitably;
  
 
 
 
E.
Uncertainty as to the effects of the Project, with respect not only to the Project as it exists at the date of this Agreement but also as it may develop in the future, is such that it is not possible to foresee all the adverse results of the Project nor determine all those persons who may be affected by it, and, therefore it is desirable to establish through the offices of a single arbitrator a continuing arbitration instrument, to which any person adversely affected may submit a claim, and as well as to fully empower such arbitrator to fashion a just and apporpriate remedy;
  
 
 
 
F.
Canada and Manitoba acknowledge the need to set forth the principles on which compensation will be based in respect of those matters set forth in this Agreement;
  
 
 
 
G.
Canada, by virtue of its jurisdiction and responsibility for Indians and lands reserved for Indians, is committed to playing an active role in providing opportunity for the continued viability of the communities and, in particular but without limitation, in making available resources and expertise to the communities in planning and improving the social and economic conditions of the communities, and in ensuring that the special rights of Indians, including those arising from Treaty 5, are adequately protected;
  
 
 
 
H.
Canada agrees that it is necessary to coordinate its normal program responsibilities for the Bands or the members thereof with the benefits and measures provided by and/or pursuant to this Agreement.
  
     
 
NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the premises and of the covenants herein contained, the sufficiency of all of which is hereby acknowledged, the parties mutually covenant and agree as follows:
  
     
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