ARTICLE 17: PURPOSES OF INUIT OWNED LANDS

PART 1

GENERAL

17.1.1

The primary purpose of Inuit Owned Lands shall be to provide Inuit with rights in land that promote economic self-sufficiency of Inuit through time, in a manner consistent with Inuit social and cultural needs and aspirations.

17.1.2

Inuit Owned Lands are expected to include areas with the following characteristics, not in order of priority:

(a)

areas of value principally for renewable resource reasons, including

(i)

principal or other wildlife harvesting areas,

(ii)

areas of significant biological productivity or of value for conservation purposes,

(iii)

areas of high potential for propagation, cultivation or husbandry,

(iv)

areas of current or potential occupation by outpost camps,

(v)

areas of value for sport camps or other tourist opportunities; and

(b)

areas of value principally for reasons related to the development of non-renewable resources, including

(i)

areas of known or potential mineral deposits,

(ii)

areas of value for various operations and facilities associated with the development of non-renewable resources;

(c)

areas of commercial value; and

(d)

areas of archaeological, historical or cultural importance.

17.1.3

Inuit Owned Lands shall, to the extent possible, provide for a mix of the characteristics outlined above in order to secure balanced economic development. However, the relative weighting of the characteristics with respect to any particular community or region shall turn on the actual and potential economic opportunities at hand and the particular community or regional preferences.

17.1.4

The Parties agree that the provisions of this Article have been complied with in respect of Inuit Owned Lands vested on the date of ratification of the Agreement.

17.1.5

Neither Government nor Inuit shall have a claim or a cause of action based on non- compliance with this Article in respect of Inuit Owned Lands vested on the date of ratification of the Agreement.

ARTICLE 18: PRINCIPLES TO GUIDE THE IDENTIFICATION OF INUIT OWNED LANDS

PART 1

GENERAL

18.1.1

The primary principle to guide the identification process of Inuit Owned Lands shall be to provide Inuit with maximum opportunity to identify such areas in pursuit of the purposes of Inuit Owned Lands. Subject to this primary principle, the identification process for Inuit Owned Lands shall reflect the following:

(a)

identification may take place in areas subject to third party interests; any rights or interests of third parties shall be dealt with equitably; the identification may be made on a case-by-case basis;

(b)

in general, identification shall not include areas subject to third party interests in the form of fee simple estates in private hands;

(c)

consistent with provisions dealing with community ownership of land, areas may be identified in or near communities, provided that identification of such areas shall not prevent a community from carrying out its regular community functions or prevent its growth;

(d)

areas may be identified in all lands currently required, or foreseeably required, for wildlife sanctuaries, Conservation Areas, Parks, archaeological sites or similar categories of lands dedicated for the protection of wildlife or wildlife habitat or for recreational or cultural purposes, provided that

(i)

such areas shall be subject to provisions dealing with wildlife, land management, and laws of general application, and

(ii)

certain areas within potential parks, and within areas of particular archaeological, historical or cultural significance, may not be identified; it is expected that the boundaries of Parks will emerge through the identification process;

(e)

identification in areas of overlapping use and occupation with other aboriginal peoples may not be finalized until issues relating to such overlap are resolved;

(f)

on a case-by-case basis, identification may not extend to certain areas required at present, or in the reasonably foreseeable future, for federal or territorial government facilities or operations;

(g)

on a case-by-case basis, identification may not extend to lands needed for public purposes or utilities, the need for which becomes apparent during the identification process;

(h)

on a case-by-case basis, identification may not extend to within a 100 feet of certain shorelines; and

(i)

in general, areas shall be identified so as to avoid undue fragmentation.

18.1.2

During the land identification process, Inuit shall have the right to identify lands containing known deposits of carving stone as Inuit Owned Lands.

18.1.3

The Parties agree that the provisions of this Article have been complied with in respect of Inuit Owned Lands vested on the date of ratification of the Agreement.

18.1.4

Neither Government nor Inuit shall have a claim or a cause of action based on non- compliance with this Article in respect of Inuit Owned Lands vested on the date of ratification of the Agreement.

ARTICLE 19: TITLE TO INUIT OWNED LANDS

PART 1

DEFINITIONS

19.1.1

In this Article:

"land titles office" means the office of the registrar;

"natural boundary" means a boundary described in relation to the position of a natural feature;

"property description" means

(a)

in the case of those lands that vest pursuant to Section 19.3.1, any of the maps titled Inuit Owned Lands, Ownership Map, in the series Nos. 1 to 237 or any plan replacing any of those maps pursuant to Section 19.8.4 or 19.8.12, and

(b)

in the case of those lands that vest pursuant to another section of the Agreement, the map or plan or other description of those lands;

"significant deposit" means a deposit of carving stone determined by the DIO to be suitable for the exercise of Inuit rights under Sections 19.9.2 and 19.9.7;

"Surveyor General" means the Surveyor General of Canada Lands appointed in the manner authorized by law or a person authorized by the federal Minister of Energy, Mines and Resources to carry out any or all of the duties of the Surveyor General.

PART 2

FORM OF TITLE

19.2.1

Inuit Owned Lands shall be held in either of the following forms:

(a)

fee simple including the mines and minerals that may be found to exist within, upon or under such lands; or

(b)

fee simple saving and excepting the mines and minerals that may be found to exist within, upon or under such lands, together with the right to work the same, but including the right to all specified substances.

19.2.2

The right to work minerals referred to in Sub-section 19.2.1(b) does not entail the right to empower a person to explore, develop, produce or transport minerals in, on or under Inuit Owned Lands except in accordance with Article 21.

19.2.3

Where a third party holds a mineral interest from the Crown in relation to lands, title to which is held by Inuit in the form referred to in Sub-section 19.2.1(a) or (b), the third party shall have the right to remove, work and use all or any specified substances in the lands subject to that mineral interest in the course of exercising the rights accorded by the interest, provided that such removal, working or use is strictly incidental to the working of the interest. No compensation shall be payable by the third party to the DIO for such specified substances except:

(a)

as may be provided under Part 7 of Article 21; and

(b)

where the specified substances are used for a purpose not directly related to the exercise of that mineral interest.

19.2.4

Any dispute as to the amount of any compensation payable or the circumstances in which it becomes payable under Section 19.2.3 may be referred by either the DIO or the third party to the Tribunal for resolution.

19.2.5

Unless otherwise provided in a property description, title to Inuit Owned Lands shall include title to those lands covered by water except where:

(a)

a bank of a river, stream, lake or other water body forms the boundary of a parcel of Inuit Owned Lands; or,

(b)

in the case of a lake or other water body, Inuit Owned Lands do not enclose the lake or water body.

19.2.5

Amended P.C. 2009-132 January 29, 2009

Unless otherwise provided in a property description,

(a)

where a river, stream, lake or other water body is wholly contained within the boundaries of a parcel of Inuit Owned Lands, title to that parcel of Inuit Owned Lands shall include the bed of that water body;

(b)

where a boundary of a parcel of Inuit Owned Lands crosses a river, stream, lake or other water body, title to that parcel of Inuit Owned Lands shall include the bed of the part of that water body within the boundaries of that parcel; and

(c)

where a bank of a river, stream, lake or other water body forms a boundary of a parcel of Inuit Owned Lands, title to that parcel of Inuit Owned Lands shall not include the bed of that water body.

19.2.6

Inuit Owned Lands shall not include areas described in Schedule 19-1 and shown on the map appended thereto for information purposes only, or marine areas.

19.2.7

Notwithstanding anything in Section 19.2.5, Government has the right, subject to the Agreement, to protect and manage water and land covered by water, and to use water in connection with such right, throughout the Nunavut Settlement Area for public purposes, including:

(a)

management and research in respect of wildlife, and aquatic habitat;

(b)

protection and management of navigation and transportation, establishment of navigation aid devices, and dredging of navigable water bodies;

(c)

protection of water resources from contamination and degradation; and

(d)

flood control and fire fighting.

PART 3

VESTING OF INUIT OWNED LANDS UPON RATIFICATION

19.3.1

Upon ratification of the Agreement, the Inuit Owned Lands totalling an area at least equal to the amounts specified in Schedules 19-2 to 19-7 and shown on the maps titled Inuit Owned Lands, Ownership Map, in the series Nos. 1 to 237 shall vest in the DIO in the form indicated on those maps and in accordance with the descriptions on those maps.

19.3.2

The maps referred to in Section 19.3.1 are those maps that were jointly delivered by the Parties to the registrar on the 15th day of April 1993.

19.3.3

A copy of the maps referred to in Section 19.3.1, certified by both Parties as true and accurate, shall be provided to each of the Parties prior to the delivery of the maps pursuant to Section 19.3.2.

19.3.4

The registrar shall record the fact of the vesting of title in the DIO of the Inuit Owned Lands referred to in Section 19.3.1 as soon as possible after the date of ratification of the Agreement.

PART 4

FUTURE INUIT OWNED LANDS

19.4.1

Government shall grant to the DIO, as Inuit Owned Lands in the form referred to in Sub-section 19.2.1(b), the lands described in an item of Part I or II of Schedule19-8:

(a)

in the case of Part I of the Schedule, six months after

(i)

the DIO provides Government with a letter obtained from the lessee referred to in that item stating that the lessee consents to its lease being located on Inuit Owned Lands, or

(ii)

the lease referred to in that item terminates,

whichever event first occurs, on the condition the consent is given or the lease terminates within two years of the date of ratification of the Agreement; and

(b)

in the case of Part II of the Schedule, when Government declares the lands to be surplus to its needs and the DIO pays Government their fair market value.

19.4.2

The lands described in an item of Part III of Schedule 19-8 shall vest in the DIO as Inuit Owned Lands in the form referred to in Sub-section 19.2.1(b) on the date or event specified in that item.

PART 5

FUTURE INUIT OWNED LANDS STATUS

19.5.1

Any portion of the lands in Pangnirtung described in an item of Schedule 19-9 shall become Inuit Owned Lands in the form referred to in Sub-section 19.2.1(b) when the DIO acquires the fee simple interest to that portion at no cost to Government.

PART 6

FUTURE GRANTS TO GOVERNMENT

19.6.1 - North Warning System Microwave Repeater Sites

The DIO shall grant to Government, at no cost to Government, for microwave repeater structures to be established as part of the North Warning System,

(a)

its full interest in the parcels of Inuit Owned Lands specified in Part I ofSchedule 19-10, and

(b)

up to two easements on the parcels of Inuit Owned Lands specified in Part IIof Schedule 19-10,

upon receipt by the DIO from Government of a description of the more precise locations of these parcels and that easement. Government shall survey the parcels granted under Sub-section (a).

19.6.2 - North Warning System Resupply Easement

The Inuit Owned Lands described in an item of Part III of Schedule 19-10 shall become subject to an easement, at no cost to Government, as a route for the winter resupply of the North Warning System between the places referred to in that item upon:

(a)

agreement between Government and the DIO granting to Government that easement; or

(b)

determination by an arbitration panel pursuant to Article 38 of the location of that easement and of the terms and conditions of use for that easement.

19.6.3 - Public Easements

The Inuit Owned Lands described in an item of Schedule 19-11 are subject to the easement described in that item except that the more precise location of the easement and the terms and conditions of its exercise may be determined by:

(a)

agreement between Government and the DIO; or

(b)

an arbitration panel, pursuant to Article 38, at the request of Government or the DIO.

PART 7

ALIENATION OF INUIT TITLE

19.7.1

Subject to Section 19.7.2, title to Inuit Owned Lands shall not be conveyed, transferred or otherwise disposed of by the DIO except to another DIO or the Government of Canada or as otherwise provided in the Agreement.

19.7.2

Within a municipality, title to Inuit Owned Lands may be conveyed, transferred or otherwise disposed of by the DIO to the Government of Canada, Territorial Government or a Municipal Corporation as appropriate.

19.7.3

Sections 19.7.1 and 19.7.2 shall not be construed as preventing the grant of leases, licences or any other interest less than fee simple title in or over Inuit Owned Lands by the DIO.

PART 8

PROPERTY DESCRIPTIONS, SURVEYS AND BOUNDARIES

19.8.1 - Descriptive Map Plans

Government shall prepare, and, within two years of the date of ratification of the Agreement, complete at no cost to the DIO, descriptive map plans for all Inuit Owned Lands vesting pursuant to Section 19.3.1 or Sub-section 19.4.1(a) that have not been surveyed and that are not required to be surveyed pursuant to Sub-section19.8.8(d).

19.8.2

Subject to Section 19.8.3, the descriptive map plans prepared pursuant to Section19.8.1 shall contain text incorporated directly onto plans derived from National Topographic Series maps with the necessary detail appearing at a scale not smaller than 1:250,000, describing in detail the boundaries of Inuit Owned Lands.

19.8.3

For the purpose of the descriptive map plans prepared pursuant to Section 19.8.1, the boundaries of Inuit Owned Lands within municipalities shall be described on1:2,000 scale municipal maps or on plans derived from the National Topographic Series maps with necessary detail appearing at a scale not smaller than 1:50,000.

19.8.4

Upon approval by the DIO and Government, the descriptive map plans prepared pursuant to Section 19.8.1 shall be jointly delivered by the Parties to the registrar at no cost to the DIO and shall, immediately upon delivery, become the property descriptions of Inuit Owned Lands, replacing the initial property descriptions, effective as of the date of ratification of the Agreement.

19.8.5

Upon delivery pursuant to Section 19.8.4 of any descriptive map plan for any parcel of Inuit Owned Lands that vests under Section 19.3.1 or Sub-section19.4.1(a), the Minister shall deposit with the registrar a notification that the parcel of Inuit Owned Lands has been vested in the DIO and this notification shall be accepted by the registrar and dealt with in all respects, including the issuance of a certificate of title, as if it were letters patent in favour of the DIO, even if there is no plan of survey and regardless of the size of the parcel.

19.8.6

A notification referred to in Section 19.8.5 shall specify that the title is subject to any qualifications provided by the Agreement.

19.8.7

After deposit of a notification under Section 19.8.5, a notice to the registrar from a DIO in which title to Inuit Owned Lands is vested that another DIO has full authority in respect of those lands shall be dealt with in all respects as if it were a grant of title from the former DIO to the other DIO.

19.8.8 - Surveys

The majority of Inuit Owned Lands will not require surveys to determine the boundaries, however:

(a)

the boundaries or part of the boundaries of Inuit Owned Lands shall be surveyed by Government when the DIO and Government agree that surveys are required to avoid or resolve conflicts with another title or interest holder;

(b)

the boundaries or part of the boundaries of Inuit Owned Lands may for any purpose be surveyed at Government's discretion;

(c)

the boundaries of the parcels excluded from Inuit Owned Lands described in Schedule 19-12 shall be surveyed by Government within one year of the date of ratification of the Agreement; and

(d)

the boundaries of Inuit Owned Lands within municipal boundaries that are described in Schedule 19-13 shall be surveyed by Government within three years of the date of ratification of the Agreement.

19.8.9

The Government of Canada shall be responsible for the cost of each legal survey which is conducted pursuant to Section 19.8.8 provided that this provision shall not prevent that Government from levying charges in respect of such surveys on any person whose lands abut Inuit Owned Lands.

19.8.10

Government shall not be responsible for the costs of surveys associated with the leasing or subdivision of Inuit Owned Lands.

19.8.11

Each boundary survey conducted pursuant to Section 19.8.8 shall be conducted and monuments shall be placed in accordance with the instructions of the Surveyor General and the Canada Lands Survey Act, as if the lands were still Crown lands.

19.8.12

Where a legal survey is completed for any boundary or any part of a boundary of Inuit Owned Lands, the plan of survey, when signed by the DIO and Government and delivered to the registrar, shall become the property description for that boundary or that part, replacing any previous property description of that boundary or that part, effective as of the date of ratification of the Agreement.

19.8.13 - Natural Boundaries

Natural boundaries of Inuit Owned Lands along waters shall be located at the ordinary high water mark, unless otherwise indicated in property descriptions.

19.8.14

Notwithstanding Sections 19.3.1, 19.8.4 and 19.8.12 and for greater certainty, natural boundaries, including offset natural boundaries, of Inuit Owned Lands shall move with the various natural processes of erosion and accretion, including isostatic rebound of coastal areas, and any other natural movement of the natural feature in relation to which the boundary is described that is gradual and imperceptible from moment to moment.

19.8.15

Subject to Section 19.8.12, where a survey of Inuit Owned Lands is being conducted and where any natural boundary of Inuit Owned Lands is found to be unclear, the Surveyor General shall have the authority to place a series of monuments approximating the mean position of the intended boundary.

19.8.16

Lands within 100 feet of the boundary of the Nunavut Settlement Area shall not be Inuit Owned Lands, except where the bank of a river or lake forms part of the boundary of the Nunavut Settlement Area and can be used to clearly locate the Inuit Owned Lands parcel as being within the Nunavut Settlement Area.

19.8.17 - Subsurface Boundary Disputes

Any dispute as to boundaries between the holders of recorded mineral claims, one or more of which is,

(a)

in existence at the date of ratification of the Agreement, or

(b)

recorded after the date of ratification of the Agreement but under the terms of a prospecting permit in effect on the date of ratification of the Agreement,

and which is located in whole or in part on Inuit Owned Lands held in the form referred to in Sub-section 19.2.1(a) shall be resolved in accordance with the provisions of the Canada Mining Regulations in existence at the date of ratification of the Agreement.

19.8.18

Any disputes as to boundaries between a holder of a recorded mineral claim described in Sub-section 19.8.17(a) or (b) and the holder of an interest created by the DIO in Inuit Owned Lands held in the form referred to in Sub-section 19.2.1(a) shall be resolved in accordance with the provisions of the Canada Mining Regulations in existence at the date of ratification of the Agreement.

19.8.19

The registrar shall, upon deposit of a decision pursuant to Section 19.8.17 or19.8.18 in the land titles office, reflect that decision in any documents registered in the office.

PART 9

RIGHTS TO CARVING STONE

19.9.1

Following the date of the ratification of the Agreement, Government shall notify the DIO of the discovery of any deposits of carving stone on Crown lands.

19.9.2

Following the date of the ratification of the Agreement, the DIO shall, subject toGovernment obligations respecting third party rights, have the right:

(a)

to obtain an exclusive quarry lease to significant deposits of carving stone; or

(b)

to acquire title to the land containing significant deposits of carving stone in exchange for other Inuit Owned Lands.

Lands acquired under Sub-section (b) shall be Inuit Owned Lands.

19.9.3

If Government and the DIO cannot agree on the lands to be exchanged pursuant toSub-section 19.9.2(b), the matter shall be referred to arbitration pursuant to Article 38

19.9.4

An Inuk shall have the right to remove up to 50 cubic yards per year of carving stone from Crown lands without a permit and the right may be exercised on Crown lands that are subject to other interests on condition that:

(a)

there be no significant damage; and

(b)

there be no significant interference with use and quiet enjoyment of the land by the interest holder.

19.9.5

In the event of any conflict between a DIO holding a permit or a lease to quarry carving stone and a person who has rights to explore for, develop or produce minerals other than specified substances, the conflict in respect of those rights shall be resolved by the Tribunal.

19.9.6

No person other than a DIO may be granted a permit or a lease to quarry carving stone on Crown lands for carving purposes, or to dispose of carving stone for carving purposes.

19.9.7

Prior to the establishment of a National Park in the Nunavut Settlement Area, the agency responsible for establishing the Park shall undertake at the request of Inuit in affected communities, when there is potential for carving stone, a detailed study to determine the location, the extent and quality of any deposit of carving stone within the proposed boundaries of the Park. At the request of Inuit, significant deposits of carving stone and routes of access shall be excluded from the boundaries of the Park, insofar as such exclusions would not appreciably detract from the park purpose or objectives.

19.9.8

Sections 19.9.1 to 19.9.6 do not apply within National Parks. Within National Parks, Inuit have the right to remove carving stone subject to the terms and conditions of an IIBA pursuant to Article 8 regarding technology, amount, physical access, the protection of the environment and integrity of the Park, and any other terms and conditions as may be appropriate. Except as permitted by the agency responsible, Inuit shall not extract carving stone in National Parks with powered tools or explosives.

19.9.9

Within Territorial Parks and Conservation Areas, Inuit rights under Sections 19.9.2 and 19.9.4 shall be exercised only as provided for in an IIBA pursuant to Article8 or 9.

PART 10

MUNICIPAL LAND DEVELOPMENT COSTS

19.10.1

The DIO shall reimburse the Territorial Government for the costs listed in Schedule 19-14, being costs incurred before the date of ratification of the Agreement in the development of each of the parcels of Inuit Owned Lands that are specified in the Schedule, payment to be made at the time that a development permit is issued in respect of that parcel.

PART 11

CONDITION OF VESTING

19.11.1

The vesting of title under Section 19.3.1 in respect of

(a)

parcel RE-28/46O,P on the Melville Peninsula is subject to any surface disturbances or improvements created, before the date of ratification of the Agreement, by Borealis Exploration Limited, and

(b)

Lot 52, Plan 737 (former RCMP post), Lake Harbour is subject to any improvements created, before the date of ratification of the Agreement, by the Royal Canadian Mounted Police, and Government is not liable to Inuit or the DIO for any loss or damage relating to or costs incurred in respect of those disturbances or improvements.

ARTICLE 20: INUIT WATER RIGHTS

PART 1

INUIT WATER RIGHTS

20.1.1

In this Article:

"geothermal resources" means steam, water and water vapour heated by the natural heat of the earth and all substances dissolved in the steam, water or water vapour;

""use of water"" includes the use of water power and geothermal resources.

PART 2

RIGHTS OF INUIT

20.2.1

In this Article, any rights vested in a DIO are vested in trust for the use and benefit of Inuit.

20.2.2

Subject to the Agreement and any exception identified in the property descriptions of Inuit Owned Lands, the DIO shall have the exclusive right to the use of water on, in, or flowing through Inuit Owned Lands.

20.2.3

Notwithstanding Section 20.2.2, any use of water on, in, or flowing through InuitOwned Lands must comply with the terms of Article 13.

20.2.4

Subject to Section 20.5.1, the DIO shall have the right to have water flow throughInuit Owned Lands substantially unaffected in quality and quantity and flow.

PART 3

COMPENSATION

20.3.1

No project or activity within the Nunavut Settlement Area which may substantially affect the quality of water flowing through Inuit Owned Lands, or the quantity of such water, or its flow, shall be approved by the NWB unless the applicant for a licence has entered into a compensation agreement with the DIO for any loss or damage which may be caused by the change in quality, quantity or flow of the water or the NWB has made a determination in accordance with Section 20.3.2.

20.3.2

The applicant and the DIO shall negotiate in good faith for the purpose of reaching an agreement on compensation referred to in Section 20.3.1, but in the event that they are unable to reach agreement, either may refer the determination of the appropriate compensation to the NWB, and the decision of the NWB shall be binding.

20.3.3

In determining the appropriate compensation for loss or damage under Section20.3.2, the NWB shall take into account the following:

(a)

the adverse effects of the change in quality, quantity or flow of water on Inuit Owned Lands, owned or used by the person or group affected;

(b)

the nuisance, inconvenience, disturbance or noise caused by the change in quality, quantity or flow of water to the person or group affected;

(c)

the adverse effects of the change in quality, quantity or flow of water in combination with existing water uses;

(d)

the cumulative effect of the change in quality, quantity or flow of water in combination with existing water uses;

(e)

the cultural attachment of Inuit to Inuit Owned Lands, including water, adversely affected by the change in quality, quantity or flow of water;

(f)

the peculiar and special value of Inuit Owned Lands, including water, affected by the change in quality, quantity or flow of water; and

(g)

interference with Inuit rights, whether derived from this Article or some other source.

20.3.4

Unless otherwise agreed by the DIO and the applicant, all awards shall provide for periodic payments and a periodic review for the purpose of adjustments, having due regard for the nature and duration of the water use. Costs of the DIO incurred in the determination process under Section 20.3.2 shall be borne by the applicant for water use unless otherwise determined by the NWB.

PART 4

PROJECTS OUTSIDE THE NUNAVUT SETTLEMENT AREA

20.4.1

Where a project or activity occurring outside the Nunavut Settlement Area but within the boundaries of the Northwest Territories as they exist immediately prior to the date of ratification of the Agreement may substantially affect the quality of water flowing through Inuit Owned Lands, or the quantity of such water, or its flow, the project or activity shall not be approved by the competent water authority unless the applicant has entered into a compensation agreement with the DIO for any loss or damage that may be caused by that change in quality, quantity or flow, or unless such compensation has been determined in accordance with Section20.4.2.

20.4.2

The applicant and the DIO shall negotiate in good faith for the purpose of reaching an agreement on compensation referred to in Section 20.4.1, but in the event that they are unable to reach agreement, either may refer the determination of the appropriate compensation for a joint determination by the NWB and the competent water authority, and the joint decision shall be binding. The decision shall be governed by Sections 20.3.3 and 20.3.4. When the NWB and the competent water authority are unable to make a joint determination, compensation shall be determined by the judge of the appropriate court.

20.4.3

Notwithstanding Section 20.4.1 the competent water authority may approve a project or activity at the time a reference is made for joint determination on compensation pursuant to Section 20.4.2.

PART 5

SAVINGS

20.5.1

Subject to the compensation provisions herein, the NWB shall retain the jurisdiction to approve water uses throughout the Nunavut Settlement Area.

20.5.2

Nothing in these provisions shall be interpreted so as to derogate from or to allow the attaching of conditions or charges to the exercise of public rights of navigation, rights of innocent public passage on water, or use of water for emergency purposes or the ability to use water for domestic use as defined in the Northern Inland Waters Act.

20.5.3

Where an operator working on Inuit Owned Lands has obtained from the NWB a right to use water, the operator shall not be required to obtain the consent of the DIO to use that water, but the use shall be subject to the payment of compensation where required by Sections 20.3.1 to 20.3.3, and existing Inuit water uses will take priority over the operator's requirements for water in Inuit Owned Lands.

20.5.4

For greater certainty, an operator who has obtained a water right may still be required to obtain a right of way agreement and pay compensation for that right of way.

20.5.5

This Article shall be subject to Section 21.3.3.

PART 6

APPLICATION

20.6.1

For greater certainty Sections 20.2.4 and Parts 3 and 4 shall apply where a body of water delineates a boundary between Inuit Owned Lands and other lands and that body of water is not located entirely on Inuit Owned Lands.

PART 7

STANDING

20.7.1

The DIO shall have standing at all times in a court of competent jurisdiction to seek a determination of the authority of any person to use water in the Nunavut Settlement Area or to change the quality, quantity or flow of water.

ARTICLE 21: ENTRY AND ACCESS

PART 1

DEFINITIONS

21.1.1

In this Article:

"foreshore" means that stretch of land between the edge of the water and the ordinary high water mark;

"navigable" means capable of navigation by boat or other craft for commercial or non-commercial purposes;

"surface rights" means, for the purpose of Section 21.7.11,

(a)

rights relating to land other than an interest in minerals, or

(b)

rights in respect of specified substances;

"third party interest" means, for the purpose of Sections 21.7.1 to 21.7.6, a right granted under the Territorial Lands Act or Public Lands Grants Act that is enforceable against the Crown, but does not include a prospecting licence in respect of Inuit Owned Lands held in the form referred to in Sub-section 19.2.1(a). For greater certainty, "third party interest" includes a land use permit and a permit to prospect;

use of water includes the use of water power.

PART 2

ACCESS ONLY WITH CONSENT

21.2.1

Except where otherwise provided in the Agreement persons other than Inuit may not enter, cross or remain on Inuit Owned Lands without the consent of the DIO.

PART 3

PUBLIC ACCESS

21.3.1

There shall be a public right of access for the purpose of travel by water, including travel associated with development activity making use of the strip incidental to travel by water, and for recreation to a 100 foot (approximately 30.5 metre) strip of Inuit Owned Lands bounding the sea coast, navigable rivers, navigable lakes that can be entered from the said rivers. The said strip shall be measured from the ordinary high water mark of the sea coast and the said navigable rivers, lakes and water bodies. The right of access includes access to the foreshore adjacent to the said strip.

173

21.3.2

A member of the public exercising the right of access referred to in Section 21.3.1 may harvest wildlife other than for commercial purposes, but subject always to laws of general application and Article 5.

21.3.3

A member of the public may harvest wildlife in the waters referred to in Section 21.3.1, but subject always to laws of general application and Article 5.

21.3.4

No person

(a)

exercising the right of access referred to in Section 21.3.1; or

(b)

harvesting wildlife pursuant to Section 21.3.2,

shall engage in any development activity, or establish camps or structures other than for merely casual or temporary purposes, on the said strip.

21.3.5

Where the DIO requires exclusive possession, the right of access referred to in Section 21.3.1, the right to harvest referred to in Section 21.3.2, and the right to cross Inuit Owned Lands referred to in Section 21.3.9 may be removed with the agreement of the DIO and Government.

21.3.6

Where the DIO and Government agree, the right to harvest referred to in Section21.3.3 may be removed.

21.3.7

A member of Parliament, the Legislative Assembly, or any municipal council or regional government, or a candidate for election to such bodies, or a person accompanying and assisting any such member or candidate, may enter on Inuit Owned Lands for the purpose of campaigning for an election.

21.3.8

A member of the public may enter and remain on Inuit Owned Lands for emergency purposes.

21.3.9

Members of the public may cross Inuit Owned Lands for the purpose of personal or casual travel, such as to go to or from their place of work or to or from a place of recreation. Whenever possible, crossings shall take place on routes designated by the DIO. The right to cross shall include the right to make any necessary stops.

21.3.10

There shall be a public right of access, as described in Schedule 21-1, on the InuitOwned Lands described in that Schedule.

21.3.11

With the consent of the DIO, persons conducting research for public knowledge shall:

(a)

have the same right of access to Inuit Owned Lands as agents, employees and contractors of Government; or

(b)

have a right of access to Inuit Owned Lands in accordance with terms and conditions imposed by the DIO, other than the payment of fees.

21.3.12

The right of access to Inuit Owned Lands set out in this Part is subject to the conditions that there be:

(a)

no significant damage caused;

(b)

no mischief committed; and

(c)

no significant interference with Inuit use and quiet enjoyment of the lands.

21.3.13

Persons exercising rights under this Part shall be:

(a)

liable for damages caused to the lands; and

(b)

deemed to be trespassers and may be removed from the land, if they fail to comply with the conditions of this Article.

21.3.14

The rights of access to Inuit Owned Lands under this Part are not subject to the payment of any fee, or any term or condition, except as provided in this Part.

PART 4

MILNE INLET TOTE ROAD PUBLIC ACCESS EASEMENT

21.4.1

There shall be a public right of access, as described in Schedule 21-2, on the InuitOwned Lands described in that Schedule.

PART 5

GOVERNMENT ACCESS

21.5.1

Agents, employees and contractors of Government and members of the Canadian Forces and members of the R.C.M.P. shall have the right, in accordance with this Article, to enter, to cross and to remain on Inuit Owned Lands and water on Inuit Owned Lands to carry out legitimate government purposes relating to the lawful delivery and management of their programs and enforcement of laws.

21.5.2

Should Government, the Canadian Forces or the R.C.M.P. require continuing use or occupancy of Inuit Owned Lands for more than two years, including use for unmanned facilities, the DIO may require Government to obtain an interest in the land.

21.5.3

Agents, employees and contractors of the user described in an item in Schedule 21-3 shall have a right to enter, cross and remain on the area identified in the property description in respect of the parcels of Inuit Owned Lands listed in that item, for the purpose specified in that item, including the right to do what is necessary for that purpose.

21.5.4

The right in Sections 21.5.1 and 21.5.3 shall be subject to Sub-section 21.3.12(b)and Section 21.3.13.

21.5.5

In a case where more than insignificant damage may be caused to the land, or where there may be more than insignificant interference with Inuit use and quiet enjoyment of the land, Government shall consult the DIO and seek its agreement regarding the procedures for exercising government access under Sections 21.5.1 and 21.5.3. Where agreement cannot be achieved, the matter shall be referred to the Arbitration Board for the determination of such procedures pursuant to Article 38. Activities identified in Schedule 21-4 shall not be subject to the requirements of this Section.

21.5.6

Without limiting the generality of this Section, procedures required under Section 21.5.5 for exercising government access shall ensure that:

(a)

environmental protection measures are consistent with the provisions of the Agreement;

(b)

information is provided; and

(c)

location, time and duration of access is addressed.

21.5.7

Government personnel need access to Inuit Owned Lands for the purpose of wildlife management and research. Notwithstanding Section 21.5.1, access to Inuit Owned Lands by Government personnel for the purposes of wildlife management and wildlife research shall be subject to the approval of the NWMB subsequent to consultation with the appropriate RWO.

21.5.8

The exercise of the right in Section 21.5.1 shall not be subject to the provision of a security bond, but may be subject to a fee if provided for in legislation.

21.5.9

In the event that any person exercising access under Section 21.5.1 causes damage to Inuit Owned Lands, and Government and the DIO are unable to agree on compensation for damages, the matter shall be referred to the Arbitration Board, for the determination of liability and fixing of appropriate compensation pursuant to Article 38.

21.5.10

The Department of National Defence (DND) shall have no greater rights to conduct military manoeuvres, including exercises and movements, on Inuit Owned Lands than it has with respect to other non-public lands under generally applicable legislation. For greater certainty, this section shall prevail over Sections 21.5.11 and 21.5.12.

21.5.11

The Minister of National Defence may authorize access to Inuit Owned Lands and water on Inuit Owned Lands for the execution of manoeuvres by the Canadian Forces pursuant to Section 257 of the National Defence Act and with the exception of Section 21.5.10 nothing in this Article applies to or affects such access authorized by the Minister of National Defence.

21.5.12

Other than access for those manoeuvres referred to in Section 21.5.11, access onto and across Inuit Owned Lands and water on Inuit Owned Lands for each manoeuvre shall only occur after the negotiation and conclusion of an agreement with the DIO dealing with contact persons, consultation mechanisms and timing thereof and compensation for damages, which agreement may be amended from time to time. Land use fees shall not be charged.

21.5.13

Reasonable advance notice, in Inuktitut, of military manoeuvres shall be given byDND to the inhabitants of any area affected.

21.5.14

The rights of access to Inuit Owned Lands under this Part, except under Section 21.5.2, are not subject to the payment of any fee, or any term or condition, except as provided in this Part.

21.5.15

In this Part, "Government" includes municipal corporations.

PART 6

SAND AND GRAVEL

21.6.1

Notwithstanding anything in Sub-section 19.2.1(b), if Government requires sand and gravel and other like construction materials from Inuit Owned Lands for public purposes, but the DIO refuses to permit Government to take the said materials, Government may apply to the Tribunal for an entry order enabling the removal of such material.

21.6.2

The Tribunal shall grant an entry order if, and only if, it determines that:

(a)

the materials are required for public purposes; and

(b)

no alternative supply is reasonably available.

21.6.3

If an entry order is granted, Government shall pay the DIO, for the materials removed, the greater of:

(a)

$1.00 per cubic metre, valued at the date of ratification of the Agreement and indexed by the Final Domestic Demand Implicit Price Index; or

(b)

the royalty rate imposed by the Crown, as amended from time to time, on the extraction of such materials from Crown lands.

21.6.4

The Tribunal shall determine the terms and conditions for access and compensation for access, and such compensation shall be determined in accordance with Section21.8.3. The calculation of compensation shall not take into account any amount mentioned in Section 21.6.3, or the payment of any entry fee required by legislation.

21.6.5

An entry order shall include terms and conditions to minimize the damage and interference with Inuit use, and shall also provide that Government rehabilitate the site.

PART 7

THIRD PARTY ACCESS

21.7.1 - Existing Interests

Where Inuit Owned Lands are subject to,

(a)

a third party interest other than an interest in minerals, or

(b)

a third party interest in respect of specified substances,

in existence immediately before the vesting of the Inuit Owned Lands in the DIO, the third party interest shall continue in accordance with its terms and conditions, but the DIO shall assume the rights and obligations of the Crown in relation to any such interest. The DIO shall receive whatever consideration is paid or payable by the interest holder for the use or exploitation of these lands and specified substances in respect of any period following the date of vesting.

21.7.2

Where Inuit Owned Lands held in the form referred to in Sub-section 19.2.1(a) are subject to a third party interest in minerals other than specified substances, in existence immediately before the vesting of the Inuit Owned Lands in the DIO, that interest shall continue in accordance with its terms and conditions, including rights granted to the interest holder under the legislation in force at the date of vesting pursuant to which the interest is held, or from any successor legislation applicable to similar interests on Crown lands. Any provisions of such successor legislation that would have the effect of diminishing the rights of the DIO shall only apply to Inuit Owned Lands with the consent of the DIO. The DIO shall receive whatever consideration is paid or payable by the interest holder for the use or exploitation of the minerals other than specified substances in respect of any period following the date of vesting.

21.7.3

Every third party interest referred to in Section 21.7.2 shall continue to be administered by Government in accordance with legislation applicable to similar interests in Crown lands. Subject to any consent from the DIO required by Section 21.7.2, such legislation, including any successor legislation, shall be deemed to apply to the third party interest unless the holder of that interest and the DIO agree to the administration of that interest by the DIO. Upon notification by the interest holder and the DIO of such an agreement, the legislation shall no longer be deemed to apply to that interest and Government shall do whatever is required to transfer administration to the DIO.

21.7.4

Subject to Section 21.7.5, all powers, discretions and authorities in relation to third party interests referred to in Section 21.7.2, affecting the interest of the DIO as title holder, shall be exercised by Government in consultation with the DIO.

21.7.5

Where Government has the discretion to reduce or waive a royalty payable by a third party interest holder referred to in Section 21.7.2, such discretion shall not be exercised without the written consent of the DIO.

21.7.6

Government shall share with the DIO any information received from a third party interest holder referred to in Section 21.7.2 which that party is required to provide by legislation, where such information is required to permit the DIO:

(a)

to verify the consideration paid or payable to Government by the interest holder for the use or exploitation of the minerals other than specified substances; or

(b)

to participate in consultation with Government regarding third party interests as provided for in this Article.

21.7.7

A DIO receiving any information or documentation pursuant to Section 21.7.6 shall not disclose that information or documentation.

21.7.8 - Exercise of Rights Respecting Minerals

An operator may exercise rights to explore, develop, produce or transport minerals, in, on or under Inuit Owned Lands only in accordance with the Agreement.

21.7.9

A person having a right to prospect for minerals and whose activities are of a nature that would not require a land use permit under the Territorial Land Use Regulations (SOR/77-210, March 4, 1977) if they were conducted on Crown lands, shall have a right of access to Inuit Owned Lands, for the purpose of conducting those activities, with the consent of the DIO, and the DIO shall grant its consent if the activities are conducted in a manner consistent with the code for expedited prospecting access approved pursuant to Section 21.7.10.

21.7.10

For the purpose of Section 21.7.9, the DIO shall propose, for review with Government and relevant industry organizations, a code to provide expedited prospecting access to Inuit Owned Lands, which code shall come into effect upon approval by Government and the DIO. The code shall reflect the need to provide confidentiality for prospectors.

21.7.11

Except where the operator is exercising a right of access under Section 21.7.1 or21.7.9, no operator may exercise the rights referred to in Section 21.7.8 until it has obtained the consent of the DIO for the exercise of surface rights to Inuit Owned Lands. If the operator is unable to obtain the consent of the DIO, it may apply to the Tribunal for an entry order for its required purpose.

21.7.12

A person having a right to prospect for minerals shall, when applying to the Tribunal, make a separate application in respect of each parcel of Inuit Owned Lands, as indicated by the parcel designator, on which that person intends to exercise a right of access. The Tribunal shall take into account the need to provide confidentiality for prospectors.

21.7.13

Where a person who has no other right of access under this Agreement, requires access to Inuit Owned Lands to exercise a right under legislation to explore, develop, produce or transport minerals on lands other than Inuit Owned Lands, the provisions of Part 8 shall apply where it is established before the Tribunal that such access is reasonably required.

21.7.14 - Other Commercial Purposes

Where the DIO has consented to permit a third party to cross Inuit Owned Lands for commercial purposes but they are unable to agree on appropriate compensation, the matter shall be referred to the Tribunal for resolution.

21.7.15

Where a person requires access across Inuit Owned Lands for commercial purposes, and is not otherwise covered in this Article, that person shall be permitted access, including on a seasonal basis where appropriate, with the consent of the DIO or, if such consent is not forthcoming after an arbitration panel, pursuant to Article 38, within 30 days of being presented with a request,

(a)

has established that the person attempted for a period of not less than 60 days, to negotiate the access in good faith,

(b)

has determined that the access is essential to the commercial purpose and access by any other means is physically or financially impractical, and

(c)

has determined the route such access will follow so as to minimize the damage and interference with Inuit use,

and, based on the arbitration panel's findings, the Tribunal, in keeping with Part 8, has issued an entry order. The entry order shall include terms and conditions to minimize damage and interference with Inuit use.

PART 8

SURFACE RIGHTS TRIBUNAL

21.8.1 - Establishment and Authority

A DIO has the right to require Government to establish and maintain an independent Surface Rights Tribunal ("Tribunal") which shall, within the Nunavut Settlement Area:

(a)

issue entry orders to operators to use and occupy lands to the extent necessary for their operations and subject to the payment of an entry fee to the owner or occupant in recognition of the forced nature of the taking, which fee shall be fixed by the appropriate legislation;

(b)

hold hearings to determine compensation payable to the surface rights holders;

(c)

periodically review the level of compensation payable under an entry order;

(d)

terminate an entry order, after a hearing, where lands are no longer being used for the purpose authorized; and

(e)

such other functions as may be provided for in the Agreement or legislation.

21.8.2

Where the DIO is the surface title holder, it shall not be required to cover any of the costs of establishing or operating the Tribunal. Government may establish and maintain the Tribunal notwithstanding the absence of a demand from a DIO, provided that the Tribunal fulfills the functions described in Section 21.8.1.

21.8.3

In determining the amount of compensation payable to the DIO in respect of InuitOwned Lands, the Tribunal shall consider,

(a)

the market value of the land,

(b)

loss of use to the DIO and Inuit,

(c)

the effect on wildlife harvesting by Inuit,

(d)

the adverse effect of the use or occupancy, upon other Inuit Owned Lands not so used or occupied,

(e)

damage which may be caused to the land used or occupied,

(f)

nuisance, inconvenience and noise to the DIO and Inuit,

(g)

the cultural attachment of Inuit to the land,

(h)

the peculiar and special value of the land to Inuit,

(i)

an amount to cover reasonable costs associated with DIO inspections as deemed appropriate by the Tribunal,

(j)

an amount to cover reasonable costs to the DIO associated with the application for an entry order and its processing, and

(k)

such other factors as may be provided for in legislation, but shall not consider the reversionary value or any entry fee payable.

21.8.4

Prior to exercising an entry order on Inuit Owned Lands, the applicant shall be required to pay the DIO the entry fee and 80% of its last compensation offer made to the DIO before it submitted the matter to the Tribunal.

21.8.5

The term DIO as used in Sections 21.8.3 and 21.8.4 shall include, where appropriate, any occupier of the land in question, and the Tribunal may apportion compensation between the DIO and the occupier.

21.8.6

With regard to Inuit Owned Lands, the period for review under Sub-section 21.8.1(c) shall be the lesser of five years or whatever period is provided in legislation. The DIO and the applicant may jointly waive the requirement for review.

21.8.7

The legislation shall provide that at least half of the members of any panel in any case dealing with Inuit Owned Lands shall be residents of the Nunavut Settlement Area.

21.8.8

The Tribunal shall conduct its business in Canada's official languages as required by legislation or policy, and upon request of any DIO, also in Inuktitut.

PART 9

EXPROPRIATION

21.9.1

Any person or authorized representative of any person, who has power of expropriation under federal or territorial legislation (expropriating authority), may exercise that power of expropriation in accordance with laws of general application as qualified by the Agreement.

21.9.2

Nothing in this Part shall be construed to give the Territorial Government more extensive powers of expropriation than are given to the legislatures of the Provinces.

21.9.3

An expropriation other than an expropriation referred to in Section 21.9.14, shall be approved by a specific order of the Governor in Council.

21.9.4

Any expropriation legislation coming into force after the date of ratification of the Agreement shall, insofar as it applies to Inuit Owned Lands, provide for the following minimum procedures:0

(a)

notice of intention to expropriate served on the DIO;

(b)

an opportunity for the DIO to object to the expropriation on the basis that the expropriating authority has not complied with the expropriation legislation, and an opportunity to be heard on that objection; and

(c)

the determination of compensation by negotiation and mediation and, failing that, by reference to an arbitration panel or committee referred to in Section 21.9.8.

21.9.5

Where the expropriating authority acquires an estate in fee simple, those lands shall no longer be Inuit Owned Lands. Lands acquired as compensation for expropriation shall be Inuit Owned Lands.Where lands which have been expropriated are no longer required, the DIO shall have an option for six months following such a determination to re-acquire those lands as Inuit Owned Lands. If the parties are unable to agree on a price, the matter shall be referred to the arbitration panel or committee referred to in Section 21.9.8.

21.9.6

Where Inuit Owned Lands are expropriated, the expropriating authority shall, if reasonably possible, offer compensation in the form of alternate lands of equivalent utility and value in the Nunavut Settlement Area, or in combination of lands and money.

21.9.7

The DIO shall not be required to take compensation in the form of alternate lands.

21.9.8

Where the DIO and the expropriating authority continue to disagree on compensation, and mediation, if provided for, fails, the final determination of any compensation payable shall be by arbitration:

(a)

as set out in Article 38, other than for expropriation under the NationalEnergy Board Act; or

(b)

for expropriation under the National Energy Board Act, by an arbitration committee appointed under the Act that shall include at least one nominee of the DIO. The Minister in establishing the arbitration committee shall choose members who have special knowledge of, and experience related to, the criteria set out in Section 21.9.9.

21.9.9

In determining the amount of compensation payable to the DIO the arbitration panel or committee shall be guided by:

(a)

the market value of the land;

(b)

loss of use to the DIO and Inuit;

(c)

the effect on wildlife harvesting by Inuit;

(d)

the adverse effect of the taking, upon lands retained by the DIO;

(e)

damage which may be caused to the land taken;

(f)

nuisance, inconvenience and noise to the DIO and Inuit;

(g)

the cultural attachment of Inuit to the land;

(h)

the peculiar and special value of the land to Inuit;

(i)

an amount to cover reasonable costs associated with DIO inspections as deemed appropriate by the arbitration panel or committee;

(j)

an amount to cover reasonable costs to the DIO associated with the arbitration; and

(k)

any other factors as may be provided for in legislation.

21.9.10

Where an expropriating authority would have a power of expropriation of Inuit Owned Lands, or an interest therein under Section 21.9.1, that power may not be executed if:

(a)

12% of all Inuit Owned Lands vesting on the date of ratification of the Agreement or an interest therein has already been and remains expropriated; or

(b)

within a Land Use Region referred to in any of Schedules 19-2 to 19-7, 12% of Inuit Owned Lands in that region vesting on the date of ratification of the Agreement or an interest therein has already been and remains expropriated.

21.9.11

In calculating the areas expropriated in Section 21.9.10, no account shall be taken of those situations in which the DIO accepted alternative lands pursuant to Section 21.9.6.

21.9.12

Where Government has a right under Section 21.9.1, as qualified by this Article, to expropriate Inuit Owned Lands which it requires for its public transportation purposes, Government need not pay compensation for the lands taken, except for improvements, up to an amount not exceeding,

(a)

in respect of each Inuit Owned Lands Parcel, five percent (5%) of that Parcel, or

(b)

two percent (2%) of Inuit Owned Lands in the Land Use Region, referred to in any of Schedules 19-2 to 19-7, where the lands taken are located.

Where lands taken under this Section are no longer required for the purpose for which they were taken, they shall revert to the DIO at no cost.

21.9.13

In calculating the areas expropriated under Section 21.9.10, lands taken pursuant to Section 21.9.12 shall be taken into account.

21.9.14

An expropriation of Inuit Owned Lands within municipal boundaries for municipal purposes must be approved by a specific order of the Commissioner-in-Executive Council. Inuit Owned Lands expropriated for municipal purposes shall be taken into account in calculating areas under Sections 21.9.10 and 21.9.12.

PART 10

APPLICATION AND SAVING

21.10.1 - Management

For greater certainty, any person exercising access rights referred to under this Article, except rights referred to under Part 3 and Sections 21.5.10 to 21.5.12, shall, where required, acquire the appropriate authorization as required under Article 12 and 13 prior to the exercise of those rights.

21.10.2 - Other

No person may acquire by prescription an estate or interest in Inuit Owned Lands.

21.10.3

Persons exercising rights under this Article have no right of action against the DIOfor alleged loss or damage arising from the exercise of those rights.

21.10.4

For greater certainty an Inuk may be the holder of a third party interest.

PART 11

ACCESS ON CROWN LANDS

21.11.1

Where there is no adequate public route available, Government shall not, through the enactment or administration of laws of general application, or through the management or alienation of Crown lands, deprive Inuit of reasonable access to Inuit Owned Lands through Crown lands for the beneficial use and enjoyment of those Inuit Owned Lands. The manner of exercising that access shall be subject to laws of general application.

ARTICLE 22: REAL PROPERTY TAXATION

PART 1

DEFINITIONS

22.1.1

In this Article:

"real property taxation" means any tax, levy, charge or other assessment against lands imposed for local government services or improvements including for schools and water;

"personal property" means chattels real and personal, including all choses in action and choses in possession.

PART 2

GENERAL

22.2.1

Subject to this Article and the Agreement, no federal, territorial, provincial or municipal charge, levy or tax of any kind whatsoever shall be assessable or payable on the value or assessed value of Inuit Owned Lands and, without limiting the generality of the foregoing, no capital, wealth, realty, school, water or business tax shall be assessable or payable on the value or assessed value of Inuit Owned Lands.

22.2.2

Subject to Section 22.2.5, Inuit Owned Lands within municipal boundaries that,

(a)

have improvements, or

(b)

do not have improvements, and lie within a planned and approved subdivision and are available for development,

shall be subject to real property taxation under laws of general application.

22.2.3

Subject to Section 22.2.5, Inuit Owned Lands outside municipalities on which improvements have been made shall be subject to real property taxation under laws of general application.Notwithstanding, where an improvement has been constructed, and an area of land for that improvement has not been demised, the assessor may assign an area no greater than four times the total ground area of the improvements.

22.2.4

For the purpose of Sections 22.2.2 and 22.2.3, improvements do not include:

(a)

improvements which result from government or public activity;

(b)

outpost camps;

(c)

any non-commercial structure associated with wildlife harvesting, including cabins, camps, tent frames, traps, caches, and weirs; or

(d)

any non-commercial structure associated with any other traditional activity.

22.2.5

Inuit Owned Lands shall not be subject to charge, pledge, mortgage, attachment, levy, seizure, distress or execution in respect of real property taxation for purposes of collection of tax arrears. The taxation authority may, however, execute upon all personal property of the DIO, or the Nunavut Trust, by way of seizure and sale or attachment, for purposes of collection of tax arrears.

22.2.6

Nothing in this Article, or in laws of general application, shall preclude a DIO and a municipal corporation from entering into a fee-for-services agreement to govern the supply of local government services to Inuit Owned Lands.

22.2.7

No federal, territorial, provincial or municipal charge, levy or tax shall be payable in respect of the vesting in a DIO of lands pursuant to Section 19.3.1.

ARTICLE 23: INUIT EMPLOYMENT WITHIN GOVERNMENT

PART 1

DEFINITIONS

23.1.1

In this Article:

"government employment" includes

(a)

positions in the federal Public Service for which Treasury Board is the employer,

(b)

positions in the territorial Public Service for which the Commissioner is the employer, which shall include positions in the Northwest Territories Housing Corporation, and positions for which a Municipal Corporation is the employer;

"government organization" means a department or similar body within Government in the Nunavut Settlement Area;

"in-service training" means training provided to persons working in government employment;

"Inuit employment plan" means a plan designed to meet the objective of these provisions in accord with the process set out in Part 4;

"pre-employment training" means training provided to persons not employed by Government in anticipation of government employment;

"representative level" means a level of Inuit employment within Government reflecting the ratio of Inuit to the total population in the Nunavut Settlement Area; this definition will apply within all occupational groupings and grade levels;

"systemic discrimination" means policies or practices, which are not intended to discriminate, but which have a disproportionate and adverse effect on members of designated groups, and for which there is no justification;

"under-representation" means a level of Inuit employment within Government in the Nunavut Settlement Area that is lower than the ratio of Inuit to the total population in the Nunavut Settlement Area.

PART 2

OBJECTIVE

23.2.1

The objective of this Article is to increase Inuit participation in government employment in the Nunavut Settlement Area to a representative level.It is recognized that the achievement of this objective will require initiatives by Inuit and by Government.

23.2.2

In pursuit of this objective, Government and the DIO shall cooperate in the development and implementation of employment and training as set out in the Agreement.

PART 3

INUIT LABOUR FORCE ANALYSIS

23.3.1

Within six months of the date of ratification of the Agreement and as a basis for the development of initiatives contemplated in this Article, the Government shall, with the participation of the NITC, undertake a detailed analysis of the labour force of the Nunavut Settlement Area to determine the availability, interest and level of preparedness of Inuit for government employment. The data shall be maintained and updated on an on-going basis.

23.3.2

The purpose of the analysis in Section 23.3.1 is to assess the existing skill level and degree of formal qualification among the Inuit labour force and to assist in formulating Inuit employment plans and pre-employment training.

23.3.3

It is understood that the analysis in Section 23.3.1 will incorporate and build upon existing data wherever possible.

PART 4

INUIT EMPLOYMENT PLANS

23.4.1

Within three years of the date of ratification of the Agreement, each government organization shall prepare an Inuit employment plan to increase and maintain the employment of Inuit at a representative level.

23.4.2

An Inuit employment plan shall include the following:

(a)

an analysis to determine the level of representation of Inuit in the government organization and to identify areas of under-representation by occupational grouping and level and regular full-time and regular part-time employment status;

(b)

phased approach, with reasonable short and medium term goals, in the form of numerical targets and timetables for employment of qualified Inuit in all levels and occupational groupings where under-representation has been identified; such goals to take into account the number of Inuit who are qualified or who would likely become qualified, projected operational requirements, and projected attrition rates;

(c)

an analysis of personnel systems, policies, practices and procedures in the organization to identify those which potentially impede the recruitment, promotion, or other employment opportunities of Inuit;

(d)

measures consistent with the merit principle designed to increase the recruitment and promotion of Inuit, such as

(i)

measures designed to remove systemic discrimination including but not limited to

- removal of artificially inflated education requirements,

- removal of experience requirements not based on essential consideration of proficiency and skill,

- use of a variety of testing procedures to avoid cultural biases,

(ii)

intensiverecruitmentprograms, including the distribution of competition posters throughout the Nunavut Settlement Area, with posters in Inuktitut as well as Canada's official languages as required,

(iii)

inclusion in appropriate search criteria and job descriptions of requirements for an understanding of the social and cultural milieu of the Nunavut Settlement Area, including but not limited to

- knowledge of Inuit culture, society and economy,

- community awareness,

- fluency in Inuktitut,

- knowledge of environmental characteristics of the Nunavut Settlement Area,

- northern experience,

(iv)

Inuit involvement in selection panels and boards or, where such involvement is impractical, advice to such panels and boards,

(v)

provision of counselling services with particular attention to solving problems associated with accessibility to such services,

(vi)

provision of in-service education assignment and upgrading programs adequate to meet employment goals,

(vii)

promotion of apprenticeship, internship and other relevant on-the-job training programs,

(viii)

special training opportunities,

(ix)

use of measures which are found to be successful in achieving similar objectives in other initiatives undertaken by Government, and

(x)

cross-cultural training;

(e)

identification of a senior official to monitor the plan; and

(f)

a monitoring and reporting mechanism on implementation of the plan.

23.4.3

All employment plans shall be posted in accessible locations for employee review.

23.4.4

Notwithstanding the overall objectives of this Article, it is understood that some organizations may employ so few persons in the Nunavut Settlement Area that strict application of the above measures may not be practicable.

PART 5

PRE-EMPLOYMENT TRAINING

23.5.1

The plans outlined in Part 4 will require special initiatives to provide some Inuit with skills to qualify for government employment. Government and the DIO shall develop and implement pre-employment training plans.

23.5.2

To the extent possible, the plans referred to in Section 23.5.1 shall be designed to meet the special needs of Inuit by various means, including:

(a)

instruction in Inuktitut;

(b)

training within the Nunavut Settlement Area;

(c)

distribution of training sites among communities, it being understood that circumstances may require that training take place in central locations within the Nunavut Settlement Area or in other locations outside the Area; and

(d)

the taking into account of Inuit culture and lifestyle.

PART 6

SUPPORT

23.6.1

Recognizing that active participation of Inuit in the employment and training programs will be required in order to meet the objective set out in Part 2, the DIO shall, to the extent possible, undertake, with assistance from Government, to play a primary role in the establishment and maintenance of support measures to enhance the potential for success of the measures undertaken pursuant to this Article.

PART 7

REVIEW, MONITORING AND COMPLIANCE

23.7.1

On the fifth anniversary of the date of ratification of the Agreement and at five-year intervals thereafter, or at such other dates as may be agreed upon by the Implementation Panel, the Panel shall arrange for an independent review of the Inuit employment plans and other measures under this Article.The Implementation Panel shall identify and recommend measures to correct any deficiencies in the implementation of this Article. With respect to pre-employment training plans under Part 5, the Panel shall consult with the NITC prior to identifying or recommending measures to correct any deficiencies in the implementation of Part 5.

23.7.2

The findings of the independent review and recommendations of the Implementation Panel shall be consolidated in the relevant annual report prepared by the Implementation Panel pursuant to Sub-section 37.3.3(h).

PART 8

CANADIAN FORCES AND RCMP

23.8.1

Although uniformed members of the Canadian Forces and the R.C.M.P. are excluded from the broad application of the provisions of this Article, it is understood that with respect to these categories of government employment, current policies for increasing recruitment, training and retention of Inuit shall continue, but will not necessarily reflect representative levels of the population in the Nunavut Settlement Area.

PART 9

SAVING

23.9.1

Notwithstanding any other provisions in this Article, Inuit shall continue to be eligible to benefit, on as favourable a basis as any other persons, from any special employment program, employment equity program, equal opportunity program or similar program that may exist, from time to time, for the purpose of increasing or otherwise promoting the employment of aboriginal people or other designated groups within or by Government.

ARTICLE 24: GOVERNMENT CONTRACTS

PART 1

DEFINITIONS

24.1.1

In this Article:

"Government" means the Government of Canada or the Territorial Government;

"government contract" means a contract, other than a contract for government employment as defined in Article 23, between the Government and a party other than Government or any other government for procurement of goods or services, and includes

(a)

contracts for the supply of goods,

(b)

construction contracts,

(c)

contracts for the supply of services, and

(d)

leases;

"Government of Canada" means all federal departments and departmental corporations listed in Schedules I and II, and parent Crown Corporations listed in Schedule III, Part I of the Financial Administration Act RSC 1985, Chapter F-11;

"Inuit firm" means an entity which complies with the legal requirements to carry on business in the Nunavut Settlement Area, and which is

(a)

a limited company with at least 51% of the company's voting shares beneficially owned by Inuit,

(b)

a cooperative controlled by Inuit, or

(c)

an Inuk sole proprietorship or partnership; ""invite"" means to call publicly for bids;representative level of employment means a level of employment in the Nunavut Settlement Area that reflects the ratio of Inuit to the total population of the Nunavut Settlement Area;

"solicit" means to request bids from a limited number of businesses based on some form of prequalification;

"Territorial Government" means all territorial government departments and all public agencies defined by the Financial Administration Act, S.N.W.T. 1987 (1), c.16, Part IX, and Schedules A, B, and C, but excluding the Northwest Territories Power Corporation.

PART 2

OBJECTIVE

24.2.1

The Government of Canada and the Territorial Government shall provide reasonable support and assistance to Inuit firms in accordance with this Article to enable them to compete for government contracts.

PART 3

PROCUREMENT POLICIES

24.3.1 - Government of Canada Policies

Consistent with this Article, the Government of Canada shall develop, implement or maintain procurement policies respecting Inuit firms for all Government of Canada contracts required in support of its activities in the Nunavut Settlement Area.

24.3.2

The Government of Canada shall develop or maintain its procurement policies in close consultation with the DIO, and shall implement the policies through legislative, regulatory or administrative measures.

24.3.3

The measures referred to in Section 24.3.2 shall be binding on the Government ofCanada, and shall be given effect:

(a)

in all cases, no later than one year following the date of the ratification of theAgreement; and

(b)

with respect to survey contracts, prior to the award of survey contracts arising from Article 19.

24.3.4 - Territorial Government Policies

Subject to Section 24.9.2, the Territorial Government shall maintain preferential procurement policies, procedures and approaches consistent with this Article for all Territorial Government contracts required in support of Territorial Government activities in the Nunavut Settlement Area. The Territorial Government will consult with the DIO when developing further modifications to its preferential policies, procedures and approaches in order that the provisions of this Article may be met.

24.3.5 - Adaptability Over Time

Procurement policies and implementing measures shall be carried out in a manner that responds to the developing nature of the Nunavut Settlement Area economy and labour force. In particular, the policies shall take into account the increased ability, over time, of Inuit firms to compete for and to successfully complete government contracts.

24.3.6 - Policy Objectives

Procurement policies and implementing measures shall reflect, to the extent possible, the following objectives:

(a)

increased participation by Inuit firms in business opportunities in the NunavutSettlement Area economy;

(b)

improved capacity of Inuit firms to compete for government contracts; and

(c)

employment of Inuit at a representative level in the Nunavut Settlement Area work force.

24.3.7 - Consultation

To support the objectives set out in Section 24.3.6, the Government of Canada and the Territorial Government shall develop and maintain policies and programs in close consultation with the DIO which are designed to achieve the following objectives:

(a)

increased access by Inuit to on-the-job training, apprenticeship, skill development, upgrading, and other job related programs; and

(b)

greater opportunities for Inuit to receive training and experience to successfully create, operate and manage Northern businesses.

PART 4

BID INVITATION

24.4.1

In cooperation with the DIO, the Government of Canada and the Territorial Government shall assist Inuit firms to become familiar with their bidding and contracting procedures, and encourage Inuit firms to bid for government contracts in the Nunavut Settlement Area.

24.4.2

In inviting bids on government contracts in the Nunavut Settlement Area, the Government of Canada and the Territorial Government shall provide all reasonable opportunities to Inuit firms to submit competitive bids, and, in doing so, shall take, where practicable and consistent with sound procurement management, the following measures:

(a)

set the date, location, and terms and conditions for bidding so that Inuit firms may readily bid;

(b)

invite bids by commodity groupings to permit smaller and more specialized firms to bid;

(c)

permit bids for goods and services for a specified portion of a larger contract package to permit smaller and more specialized firms to bid;

(d)

design construction contracts in a way so as to increase the opportunity for smaller and more specialized firms to bid; and

(e)

avoid artificially inflated employment skills requirements not essential to the fulfilment of the contract.

24.4.3

Where the Government of Canada or the Territorial Government intends to invite bids for government contracts to be performed in the Nunavut Settlement Area, it shall take all reasonable measures to inform Inuit firms of such bids, and provide Inuit firms with a fair and reasonable opportunity to submit bids.

PART 5

BID SOLICITATION

24.5.1

Where the Government of Canada or the Territorial Government solicits bids for government contracts to be performed in the Nunavut Settlement Area, it shall ensure that qualified Inuit firms are included in the list of those firms solicited to bid.

24.5.2

Where an Inuit firm has previously been awarded a government contract, and has successfully carried out the contract, that Inuit firm shall be included in the solicitation to bid for contracts of a similar nature.

24.5.3

In the absence of competitive bidding for government contracts, qualified Inuit firms will be given fair consideration.

PART 6

BID CRITERIA

24.6.1

Whenever practicable, and consistent with sound procurement management, and subject to Canada's international obligations, all of the following criteria, or as many as may be appropriate with respect to any particular contract, shall be included in the bid criteria established by the Government of Canada for the awarding of its government contracts in the Nunavut Settlement Area:

(a)

the existence of head offices, administrative offices or other facilities in theNunavut Settlement Area;

(b)

the employment of Inuit labour, engagement of Inuit professional services, or use of suppliers that are Inuit or Inuit firms in carrying out the contracts; or

(c)

the undertaking of commitments, under the contract, with respect to on-the- job training or skills development for Inuit.

24.6.2

Whenever practicable and consistent with sound procurement management, and subject to Canada's international obligations, all of the following criteria, or as many as may be appropriate with respect to any particular contract, shall be included in the bid criteria established by the Territorial Government for the awarding of its government contracts in the Nunavut Settlement Area:

(a)

the proximity of head offices, administrative offices or other facilities to the area where the contract will be carried out;

(b)

the employment of Inuit labour, engagement of Inuit professional services, or use of suppliers that are Inuit or Inuit firms in carrying out the contract; or

(c)

the undertaking of commitments, under the contract, with respect to on-the- job training or skills development for Inuit.

PART 7

LIST OF INUIT FIRMS

24.7.1

The DIO shall prepare and maintain a comprehensive list of Inuit firms, together with information on the goods and services which they would be in a position to furnish in relation to government contracts. This list shall be considered by the Government of Canada and the Territorial Government in meeting their obligations under this Article.

PART 8

EVALUATION AND MONITORING

24.8.1

The Government of Canada and the Territorial Government, in cooperation with the DIO, shall take the necessary measures to monitor and periodically evaluate the implementation of this Article.

PART 9

IMPLEMENTATION

24.9.1

The objectives of this Article shall be achieved through the allocation or re- allocation of government expenditures without imposing additional financial obligations on the Government of Canada or the Territorial Government.

24.9.2

The Territorial Government will carry out the terms of this Article through the application of Territorial Government preferential contracting policies, procedures and approaches intended to maximize local, regional and northern employment and business opportunities.

24.9.3

The Government of Canada, the Territorial Government and the DIO shall conduct a review of the effect of this Article within 20 years of its implementation. If the DIO and the Government of Canada or the Territorial Government, as the case may be, agree after the review that the objectives of this Article have been met, the obligations under this Article of the Government of Canada or the Territorial Government, as the case may be, shall cease within one year of the completion of the review. If the obligations of the Government of Canada or the Territorial Government under this Article remain in effect after the initial review, the Parties shall review the requirement to continue such provisions every five years or at such other times as they may agree.

ARTICLE 25: RESOURCE ROYALTY SHARING

PART 1

INUIT RIGHT TO ROYALTY

25.1.1

Inuit have the right, in each and every calendar year, to be paid an amount equal to:

(a)

fifty percent (50%) of the first two million dollars ($2,000,000) of resource royalty received by Government in that year; and

(b)

five percent (5%) of any additional resource royalty received by Government in that year.

PART 2

PAYMENT OF ROYALTY

25.2.1

Government shall pay to the Nunavut Trust the amounts payable under Section 25.1.1.

25.2.2

Amounts payable by Government pursuant to this Article shall be calculated on the basis of amounts due to and received by Government in respect of resources produced after the date of ratification of the Agreement.

25.2.3

Payments remitted to the Nunavut Trust shall be in quarterly payments on an as received basis.

25.2.4

Government shall annually provide the Nunavut Trust with a statement indicating the basis on which royalties were calculated for the preceding year.

25.2.5

On the request of the Nunavut Trust, Government shall request the Auditor- General to verify the accuracy of the information in the annual statements.

PART 3

CONSULTATION

25.3.1

Government shall consult with the DIO on any proposal specifically to alter by legislation the resource royalty payable to Government. Where Government consults outside of Government on any proposed changes to the fiscal regime which will change the resource royalty regime, it shall also consult with a DIO.

PART 4

AREA OF APPLICATION

25.4.1

This Article applies to the Nunavut Settlement Area and the Outer Land Fast IceZone.

ARTICLE 26: INUIT IMPACT AND BENEFIT AGREEMENTS

PART 1

DEFINITIONS

26.1.1

In this Article:

"capital costs" shall consist of expenditures for designing, procuring, constructing and installing all buildings, housing, machinery and equipment and infrastructure associated with a project, including any such costs incurred outside of the Nunavut Settlement Area in relation to the project; but shall not include financing costs;

"Crown corporation" means those Crown corporations that are not subject to Article 24;

"infrastructure" shall be considered as any transportation facilities directly in support of a project, such as a marine port, airport, road, railway, pipeline or power transmission line;

"Major Development Project" means any Crown corporation or private sector project that

(a)

is a water power generation or water exploitation project in the NunavutSettlement Area, or

(b)

is a project involving development or exploitation, but not exploration, of resources wholly or partly under Inuit Owned Lands,

and either entails, within the Nunavut Settlement Area during any five-year period, more than 200 person years of employment, or entails capital costs in excess of thirty-five million dollars ($35,000,000), in constant 1986 dollars, including, where Government is the proponent for a portion of a development project or directly- related infrastructure, the capital costs and employment projections for the government portion of the project;

""parties"" means parties to an IIBA or negotiations leading thereto.

PART 2

OBLIGATION TO FINALIZE

26.2.1

Subject to Sections 26.11.1 to 26.11.3, no Major Development Project may commence until an IIBA is finalized in accordance with this Article.

PART 3

PARAMETERS FOR NEGOTIATION AND ARBITRATION

26.3.1

An IIBA may include any matter connected with the Major Development Project that could have a detrimental impact on Inuit or that could reasonably confer a benefit on Inuit, on a Nunavut Settlement Area-wide, regional or local basis. Without limiting the generality of the foregoing, the matters identified in Schedule26-1 shall be considered appropriate for negotiation and inclusion within an IIBA.

26.3.2

An IIBA shall be consistent with the terms and conditions of project approval, including those terms and conditions established pursuant to any ecosystemic and socio-economic impact review.

26.3.3

Negotiation and arbitration of IIBAs shall be guided by the following principles:

(a)

benefits shall be consistent with and promote Inuit cultural goals;

(b)

benefits shall contribute to achieving and maintaining a standard of living among Inuit equal to that of persons other than Inuit living and working in the Nunavut Settlement Area, and to Canadians in general;

(c)

benefits shall be related to the nature, scale and cost of the project as well as its direct and indirect impacts on Inuit;

(d)

benefits shall not place an excessive burden on the proponent and undermine the viability of the project; and

(e)

benefit agreements shall not prejudice the ability of other residents of the Nunavut Settlement Area to obtain benefits from major projects in the Nunavut Settlement Area.

PART 4

NEGOTIATIONS

26.4.1 - Commencement

At least 180 days prior to the proposed start-up date of any Major Development Project, the DIO and the proponent, unless they otherwise agree, will commence negotiations, in good faith, for the purpose of concluding an IIBA.

26.4.2 - Written Contract

Where the proponent and the DIO agree on the contents of an IIBA, the agreement shall be written in the form of a contract. Once agreement has been reached, the parties shall send a copy to the Minister.

PART 5

VOLUNTARY ARBITRATION

26.5.1

At any time during the negotiations, the DIO and the proponent may submit any or all questions relating to the content of an IIBA to an arbitrator, in those cases where they can agree on the scope of the questions to be submitted and the identity of the arbitrator.

26.5.2

Where the parties reach agreement through voluntary arbitration, the agreement shall be written in the form of a contract and a copy sent to the Minister.

PART 6

COMPULSORY ARBITRATION

26.6.1 - Application to Minister

Where full agreement has not been reached, within 60 days after negotiation has been commenced, and where the DIO and the proponent are not engaged in voluntary arbitration, either party may apply to the Minister for the appointment of an arbitrator. The scope of the arbitration shall include the full range of benefits possible in an IIBA, unless the parties agree the range should be restricted.

26.6.2 - Obligation to Negotiate in Good Faith

In the event that a proponent or the DIO consider that the other party is not negotiating in good faith during the initial 60 days negotiation period referred to in Section 26.6.1, that party may immediately apply to the Minister for the appointment of an arbitrator.The arbitrator shall, within seven days of appointment, determine the validity of the allegation of bad faith. If the arbitrator upholds the allegation, the arbitrator shall proceed immediately in accordance with Section 26.6.4.

26.6.3 - Appointment of Arbitrator

Within 15 days of an application to the Minister for the appointment of an arbitrator, an arbitrator shall be appointed with the approval of the parties negotiating the IIBA.If the parties cannot agree on the appointment of an arbitrator, the arbitrator shall be appointed by the Minister from a standing list of arbitrators which has been approved jointly by the DIO and by those industry organizations determined by Government to be relevant.

26.6.4 - Decision of Arbitrator

An arbitrator, within 60 days of his or her appointment, or within 60 days of upholding an allegation of bad faith, shall:

(a)

ascertain the views and proposals of both the DIO and the proponent;

(b)

submit a decision in the form of a contract to the parties; and

(c)

send a copy of the decision to the Minister.

26.6.5

Costs of the arbitrator and the parties shall be borne equally by the parties, unless otherwise determined by the arbitrator. Costs of the DIO incurred in arbitration dealing with compensation pursuant to Section 26.11.4 shall be borne by the proponent of the Major Development Project, unless otherwise determined by the arbitrator.

PART 7

EXTENSIONS OF TIME

26.7.1

The parties negotiating an IIBA may agree to waive any of the time periods referred to in Parts 4 and 6, and the arbitrator may apply to the Minister for an extension of the time provided for in Section 26.6.4.

PART 8

COMING INTO EFFECT

26.8.1

An IIBA shall take effect 30 days after its receipt by the Minister unless the Minister has determined within that time that the IIBA does not conform to the provisions of Section 26.3.2 or the principles of Subsections 26.3.3(a) to (e), or that, with respect to an IIBA pursuant to Parts 5 or 6, an arbitrator has exceeded the arbitrator's jurisdiction.

26.8.2

If the Minister makes a determination pursuant to Section 26.8.1, the Minister shall provide written reasons and may provide direction for achieving conformity or remedying the excess of jurisdiction.

26.8.3

The parties with respect to a negotiated agreement, and the arbitrator with respect to an arbitrated agreement, shall take into account the Minister's reasons and revise the IIBA implementing any direction by the Minister to achieve conformity or to remedy the excess of jurisdiction.

26.8.4

The parties with respect to a negotiated agreement, and the arbitrator with respect to an arbitrated decision, shall submit the revised IIBA to the Minister and the parties within seven days of receipt of the Minister's written reasons.

26.8.5

The revised IIBA shall take effect seven days after its receipt by the Minister.

PART 9

ENFORCEMENT

26.9.1

An IIBA may be enforced by either party in accordance with the common law of contract. The parties may negotiate liquidated damages clauses for the eventuality of default and such a clause, however phrased, shall not be construed as constituting a penalty.In any deliberation as to the remedy of specific performance, due regard shall be given at all times to the desirability of protecting Inuit lifestyle and culture and providing Inuit with opportunities for economic advancement.

26.9.2

The negotiation and conclusion of an IIBA shall be without prejudice to the participation by the DIO, any other Inuit organization, and any Inuit in any hearings or other proceedings of NIRB, the National Energy Board, or any other administrative agency, or to the enforcement or contesting of any decision or order of such agency.

PART 10

RENEGOTIATION

26.10.1

Except where otherwise agreed by the proponent and the DIO, an IIBA shall provide for its renegotiation.

PART 11

OTHER MATTERS

26.11.1 - Agreement Not Required

The DIO and the proponent of a Major Development Project may agree that anIIBA is not required.

26.11.2 - Military or National Emergency

In cases of military or national emergency, the Minister may allow commencement of a Major Development Project prior to the conclusion of an IIBA.

26.11.3 - Early Project Start-up

If, once negotiations have begun on an IIBA, the proponent finds it necessary for the project to start sooner than the projected start-up date, the Minister may, if the project has received approval from the appropriate agencies, authorize the project to commence:

(a)

if the parties agree; or

(b)

if the delay would jeopardize the project.

Where the Minister proposes to exercise this authority, the Minister shall consult with the parties and, where one has been appointed, the arbitrator.

26.11.4

If, pursuant to Section 26.11.2 or 26.11.3, a Major Development Project commences prior to an IIBA being concluded, the arbitrator shall ensure that benefits received by Inuit shall include compensation, which may be in the form of replacement benefits, for the benefits lost through the early commencement of the Major Development Project.

26.11.5 - Other Government Requirements

Where an IIBA has been concluded which is at least equal to government requirements respecting the mitigation of impacts or provision of benefits for aboriginal peoples, Government may accept the IIBA as sufficient to satisfy those requirements.

ARTICLE 27: NATURAL RESOURCE DEVELOPMENT

PART 1

PETROLEUM

27.1.1 - Opening of Lands for Petroleum Exploration

Prior to opening any lands in the Nunavut Settlement Area for petroleum exploration, Government shall notify the DIO and provide an opportunity for it to present and to discuss its views with Government regarding the terms and conditions to be attached to such rights.

27.1.2 - Exercise of Petroleum Rights

Prior to the initial exercise of rights in respect of exploration, development or production of petroleum on Crown lands in the Nunavut Settlement Area, and in order to prepare a benefits plan for the approval of the appropriate regulatory authority, the proponent shall consult the DIO, and Government shall consult the DIO, in respect to those matters listed in Schedule 27-1.

PART 2

OTHER RESOURCES

27.2.1 - Other Resources

Prior to the initial exercise of rights in respect of development or production of resources other than petroleum on Crown lands in the Nunavut Settlement Area, the proponent shall consult the DIO in respect to those matters listed in Schedule 27-1.

27.2.2 - Nature of Consultation

The consultation provided for in this Part shall balance the needs of the DIO for information, an opportunity for discussion among Inuit, and the needs of Government and the proponent for timely and cost-effective decisions.

PART 3

EXISTING SUBSURFACE RIGHTS

27.3.1

The obligations to consult under Sections 27.1.2 to 27.2.2 shall apply mutatis mutandis to operators whose rights are continued under Section 21.7.2.

ARTICLE 28: NORTHERN ENERGY AND MINERALS ACCORDS

PART 1

GENERAL

28.1.1

The Territorial Government shall include representatives of the Tungavik in the Territorial Government team to develop and to implement northern energy and minerals accords with the Government of Canada.

28.1.2

Section 28.1.1 shall not impose any obligations on the Government of Canada or the Territorial Government to negotiate or to conclude northern energy or minerals accords.