M-35.1.2, r. 1 - Order in council respecting the publication of the Agreement concerning a new Relationship between le Gouvernement du Québec and the Crees of Québec

Schedule Disposition versions

2012-09-01

SCHEDULE H

FINANCIAL PROVISIONS ILLUSTRATION

INTRODUCTION

The objective of this Schedule is to provide more detailed indications pertaining to the application of the indexation formula described in Chapter 7 of the Agreement as well as on the data sources used within the framework of the said indexation formula.

SUMMARY DESCRIPTION OF THE INDEXATION FORMULA

The annual contribution of $70,000,000 for the Financial Year 2004-2005 will be subject to an annual indexation commencing in the Financial Year 2005-2006 according to an indexation factor which measures the evolution in the value of production in the sectors of hydroelectricity, forestry and mining in the Territory contemplated by Chapter 7 of this Agreement. The indexation will reflect the evolution in the volumes and prices over the previous 5 calendar years in relation to a fixed reference Base determined in accordance with the value of production in these sectors for the reference period of 1 January 1999 to 31 December 2003, as set out in section 7.6.

DATA COLLECTION AND COMPUTATION OF PRODUCTION VALUES:

1. HYDROELECTRICITY

1.1 Data Sources

a) Annual Report of Hydro-Québec published in the second quarter following the year end of 31 December;

b) Monthly meter readings by plant operators verified through KWHmetre software, Hydro-Québec.

1.2 Production in the Territory (in MWh, net of plant stations services consumption)

Year 1     Year 2     Year 3     Year 4     Year 5 etc.
 2000       2001       2002       2003       2004

List of production units
TOTAL (PHVolumet)
       

1.3 Average Price

The price of electricity used within the framework of the indexation formula represents the implicit average unit price resulting from the sales of electricity by Hydro-Québec in Québec and elsewhere in Canada and in the United States.

The implicit average unit price for a given year is obtained by dividing the value of electricity sales (in millions of dollars) by Hydro-Québec in Québec and elsewhere in Canada and in the United States during the course of that year by the quantity of electricity sold (in MWh) on these same markets during that same year.

1.4 Value of hydroelectricity production

The value of the hydroelectricity production in the Territory for a given year is measured by applying the implicit average unit price (in $/MWh) obtained by Hydro-Québec for its electricity sales in Québec and elsewhere in Canada and in the United States (PHPrice, as set out in 1.3) to the volume (in MWh) of the net electricity production in the Territory (PHVolume described at 1.2) during the course of this same year.

For example, for the 2005-2006 Financial Year, the value of production for the civil years 2000 to 2004, as measured above, would be used as indexation factor for the electricity sector.

2. MINING

2.2 Data Sources:

Ministère des Ressources naturelles du Québec (MRN), Recensement annuel des mines, des carrières et des sablières.

2.2 Value of shipments in the Territory as reported by producers (in M$)

3. FORESTRY

3.1 Data Sources

a) Statistics Canada, Logging industry (Catalogue 25-201).

b) Forestry register of the ministère des Ressources naturelles du Québec.

3.2 Production in the Territory as reported by le ministère des Ressources naturelles (shipments in M m3, public forests)

3.3 Average price per m3 in Québec (public and private forests)

Year 1     Year 2     Year 3     Year 4     Year 5
 2000       2001       2002       2003       2004    

a) Value of shipments in Québec (determined by Statistics Canada)

b) Volume of wood harvested (determined by the ministère des Ressources naturelles du Québec)

Average price per m3 (3.3a ÷ 3.3b)

3.4 Production value for Forestry (3.2 x 3.3).

O.C. 507-2002, Sch. H.