§ 21-1001. The Great Lakes-St. Lawrence River Basin Water Resources

Compact.

GREAT LAKES-ST. LAWRENCE RIVER BASIN WATER RESOURCES COMPACT

ARTICLE 1

SHORT TITLE, DEFINITIONS, PURPOSES AND DURATION

Section 1.1. Short Title. This act shall be known and may be cited as
the "Great Lakes-St. Lawrence River Basin Water Resources Compact."

Section 1.2. Definitions. For the purposes of this Compact, and of any
supplemental or concurring legislation enacted pursuant thereto, except
as may be otherwise required by the context:

Adaptive Management means a Water resources management system that
provides a systematic process for evaluation, monitoring and learning
from the outcomes of operational programs and adjustment of policies,
plans and programs based on experience and the evolution of scientific
knowledge concerning Water resources and Water Dependent Natural
Resources.

Agreement means the Great Lakes-St. Lawrence River Basin Sustainable
Water Resources Agreement.

Applicant means a Person who is required to submit a Proposal that is
subject to management and regulation under this Compact. Application has
a corresponding meaning.

Basin or Great Lakes-St. Lawrence River Basin means the watershed of
the Great Lakes and the St. Lawrence River upstream from Trois-Rivieres,
Quebec within the jurisdiction of the Parties.

Basin Ecosystem or Great Lakes-St. Lawrence River Basin Ecosystem
means the interacting components of air, land, Water and living
organisms, including humankind, within the Basin.

Community within a Straddling County means any incorporated city, town
or the equivalent thereof, that is located outside the Basin but wholly
within a County that lies partly within the Basin and that is not a
Straddling Community.

Compact means this Compact.

Consumptive Use means that portion of the Water Withdrawn or withheld
from the Basin that is lost or otherwise not returned to the Basin due
to evaporation, incorporation into Products, or other processes.

Council means the Great Lakes-St. Lawrence River Basin Water Resources
Council, created by this Compact.

Council Review means the collective review by the Council members as
described in article 4 of this Compact.

County means the largest territorial division for local government in
a State. The County boundaries shall be defined as those boundaries that
exist as of December 13, 2005.

Cumulative Impacts mean the impact on the Basin Ecosystem that results
from incremental effects of all aspects of a Withdrawal, Diversion or
Consumptive Use in addition to other past, present, and reasonably
foreseeable future Withdrawals, Diversions and Consumptive Uses
regardless of who undertakes the other Withdrawals, Diversions and
Consumptive Uses. Cumulative Impacts can result from individually minor
but collectively significant Withdrawals, Diversions and Consumptive
Uses taking place over a period of time.

Decision-Making Standard means the decision-making standard
established by Section 4.11 for Proposals subject to management and
regulation in Section 4.10.

Diversion means a transfer of Water from the Basin into another
watershed, or from the watershed of one of the Great Lakes into that of
another by any means of transfer, including but not limited to a
pipeline, canal, tunnel, aqueduct, channel, modification of the
direction of a water course, a tanker ship, tanker truck or rail tanker
but does not apply to Water that is used in the Basin or a Great Lake
watershed to manufacture or produce a Product that is then transferred
out of the Basin or watershed. Divert has a corresponding meaning.

Environmentally Sound and Economically Feasible Water Conservation
Measures mean those measures, methods, technologies or practices for
efficient water use and for reduction of water loss and waste or for
reducing a Withdrawal, Consumptive Use or Diversion that (i) are
environmentally sound, (ii) reflect best practices applicable to the
water use sector, (iii) are technically feasible and available, (iv) are
economically feasible and cost effective based on an analysis that
considers direct and avoided economic and environmental costs and (v)
consider the particular facilities and processes involved, taking into
account the environmental impact, age of equipment and facilities
involved, the processes employed, energy impacts and other appropriate
factors.

Exception means a transfer of Water that is excepted under Section 4.9
from the prohibition against Diversions in Section 4.8.

Exception Standard means the standard for Exceptions established in
Section 4.9.4.

Intra-Basin Transfer means the transfer of Water from the watershed of
one of the Great Lakes into the watershed of another Great Lake.

Measures means any legislation, law, regulation, directive,
requirement, guideline, program, policy, administrative practice or
other procedure.

New or Increased Diversion means a new Diversion, an increase in an
existing Diversion, or the alteration of an existing Withdrawal so that
it becomes a Diversion.

New or Increased Withdrawal or Consumptive Use means a new Withdrawal
or Consumptive Use or an increase in an existing Withdrawal or
Consumptive Use.

Originating Party means the Party within whose jurisdiction an
Application or registration is made or required.

Party means a State party to this Compact.

Person means a human being or a legal person, including a government
or a non-governmental organization, including any scientific,
professional, business, non-profit, or public interest organization or
association that is neither affiliated with, nor under the direction of
a government.

Product means something produced in the Basin by human or mechanical
effort or through agricultural processes and used in manufacturing,
commercial or other processes or intended for intermediate or end use
consumers. (i) Water used as part of the packaging of a Product shall be
considered to be part of the Product. (ii) Other than Water used as part
of the packaging of a Product, Water that is used primarily to transport
materials in or out of the Basin is not a Product or part of a Product.
(iii) Except as provided in (i) above, Water which is transferred as
part of a public or private supply is not a Product or part of a
Product. (iv) Water in its natural state such as in lakes, rivers,
reservoirs, aquifers, or water basins is not a Product.

Proposal means a Withdrawal, Diversion or Consumptive Use of Water
that is subject to this Compact.

Province means Ontario or Quebec.

Public Water Supply Purposes means water distributed to the public
through a physically connected system of treatment, storage and
distribution facilities serving a group of largely residential customers
that may also serve industrial, commercial, and other institutional
operators. Water Withdrawn directly from the Basin and not through such
a system shall not be considered to be used for Public Water Supply
Purposes.

Regional Body means the members of the Council and the Premiers of
Ontario and Quebec or their designee as established by the Agreement.

Regional Review means the collective review by the Regional Body as
described in Article 4 of this Compact.

Source Watershed means the watershed from which a Withdrawal
originates. If Water is Withdrawn directly from a Great Lake or from
the St. Lawrence River, then the Source Watershed shall be considered
to be the watershed of that Great Lake or the watershed of the St.
Lawrence River, respectively. If Water is Withdrawn from the watershed
of a stream that is a direct tributary to a great lake or a direct
tributary to the St. Lawrence River, then the Source Watershed shall be
considered to be the watershed of that Great Lake or the watershed of
the St. Lawrence River, respectively, with a preference to the direct
tributary stream watershed from which it was Withdrawn.

Standard of Review and Decision means the Exception Standard,
Decision-Making Standard and reviews as outlined in Article 4 of this
Compact.

State means one of the states of Illinois, Indiana, Michigan,
Minnesota, New York, Ohio or Wisconsin or the Commonwealth of
Pennsylvania.

Straddling Community means any incorporated city, town or the
equivalent thereof, wholly within any County that lies partly or
completely within the Basin, whose corporate boundary existing as of the
effective date of this Compact, is partly within the Basin or partly
within two Great Lakes watersheds.

Technical Review means a detailed review conducted to determine
whether or not a Proposal that requires Regional Review under this
Compact meets the Standard of Review and Decision following procedures
and guidelines as set out in this Compact.

Water means ground or surface water contained within the Basin.

Water Dependent Natural Resources means the interacting components of
land, Water and living organisms affected by the Waters of the Basin.

Waters of the Basin or Basin Water means the Great Lakes and all
streams, rivers, lakes, connecting channels and other bodies of water,
including tributary groundwater, within the Basin.

Withdrawal means the taking of water from surface water or
groundwater. Withdraw has a corresponding meaning.

Section 1.3. Findings and Purposes.

The legislative bodies of the respective Parties hereby find and
declare:

1. Findings:

a. The Waters of the Basin are precious public natural resources
shared and held in trust by the States;

b. The Waters of the Basin are interconnected and part of a single
hydrologic system;

c. The Waters of the Basin can concurrently serve multiple uses. Such
multiple uses include municipal, public, industrial, commercial,
agriculture, mining, navigation, energy development and production,
recreation, the subsistence, economic and cultural activities of native
peoples, Water quality maintenance, and the maintenance of fish and
wildlife habitat and a balanced ecosystem. And, other purposes are
encouraged, recognizing that such uses are interdependent and must be
balanced;

d. Future Diversions and Consumptive Uses of Basin Water resources
have the potential to significantly impact the environment, economy and
welfare of the Great Lakes-St. Lawrence River region;

e. Continued sustainable, accessible and adequate Water supplies for
the people and economy of the Basin are of vital importance; and,

f. The Parties have a shared duty to protect, conserve, restore,
improve and manage the renewable but finite Waters of the Basin for the
use, benefit and enjoyment of all their citizens, including generations
yet to come. The most effective means of protecting, conserving,
restoring, improving and managing the Basin Waters is through the joint
pursuit of unified and cooperative principles, policies and programs
mutually agreed upon, enacted and adhered to by all Parties.

2. Purposes:

a. To act together to protect, conserve, restore, improve and
effectively manage the Waters and Water Dependent Natural Resources of
the Basin under appropriate arrangements for intergovernmental
cooperation and consultation because current lack of full scientific
certainty should not be used as a reason for postponing measures to
protect the Basin Ecosystem;

b. To remove causes of present and future controversies;

c. To provide for cooperative planning and action by the Parties with
respect to such Water resources;

d. To facilitate consistent approaches to Water management across the
Basin while retaining State management authority over Water management
decisions within the Basin;

e. To facilitate the exchange of data, strengthen the scientific
information base upon which decisions are made and engage in
consultation on the potential effects of proposed Withdrawals and losses
on the Waters and Water Dependent Natural Resources of the Basin;

f. To prevent significant adverse impacts of Withdrawals and losses on
the Basin's ecosystems and watersheds;

g. To promote interstate and State-Provincial comity; and,

h. To promote an Adaptive Management approach to the conservation and
management of Basin Water resources, which recognizes, considers and
provides adjustments for the uncertainties in, and evolution of,
scientific knowledge concerning the Basin's Waters and Water Dependent
Natural Resources.

Section 1.4. Science. 1. The Parties commit to provide leadership for
the development of a collaborative strategy with other regional partners
to strengthen the scientific basis for sound Water management decision
making under this Compact.

2. The strategy shall guide the collection and application of
scientific information to support:

a. An improved understanding of the individual and Cumulative Impacts
of Withdrawals from various locations and Water sources on the Basin
Ecosystem and to develop a mechanism by which impacts of Withdrawals may
be assessed;

b. The periodic assessment of Cumulative Impacts of Withdrawals,
Diversions and Consumptive Uses on a Great Lake and St. Lawrence River
watershed basis;

c. Improved scientific understanding of the Waters of the Basin;

d. Improved understanding of the role of groundwater in Basin Water
resources management; and,

e. The development, transfer and application of science and research
related to Water conservation and Water use efficiency.

ARTICLE 2

ORGANIZATION

Section 2.1. Council Created.

The Great Lakes-St. Lawrence River Basin Water Resources Council is
hereby created as a body politic and corporate, with succession for the
duration of this Compact, as an agency and instrumentality of the
governments of the respective Parties.

Section 2.2. Council membership.

The Council shall consist of the Governors of the Parties, ex officio.

Section 2.3. Alternates.

Each member of the Council shall appoint at least one alternate who
may act in his or her place and stead, with authority to attend all
meetings of the Council and with power to vote in the absence of the
member. Unless otherwise provided by law of the Party for which he or
she is appointed, each alternate shall serve during the term of the
member appointing him or her, subject to removal at the pleasure of the
member. In the event of a vacancy in the office of alternate, it shall
be filled in the same manner as an original appointment for the
unexpired term only.

Section 2.4. Voting.

1. Each member is entitled to one vote on all matters that may come
before the Council.

2. Unless otherwise stated, the rule of decision shall be by a simple
majority.

3. The Council shall annually adopt a budget for each fiscal year and
the amount required to balance the budget shall be apportioned equitably
among the Parties by unanimous vote of the Council. The appropriation of
such amounts shall be subject to such review and approval as may be
required by the budgetary processes of the respective Parties.

4. The participation of Council members from a majority of the Parties
shall constitute a quorum for the transaction of business at any meeting
of the Council.

Section 2.5. Organization and Procedure.

The Council shall provide for its own organization and procedure, and
may adopt rules and regulations governing its meetings and transactions,
as well as the procedures and timeline for submission, review and
consideration of Proposals that come before the Council for its review
and action. The Council shall organize, annually, by the election of a
Chair and Vice Chair from among its members. Each member may appoint an
advisor, who may attend all meetings of the Council and its committees,
but shall not have voting power. The Council may employ or appoint
professional and administrative personnel, including an Executive
Director, as it may deem advisable, to carry out the purposes of this
Compact.

Section 2.6. Use of Existing Offices and Agencies.

It is the policy of the Parties to preserve and utilize the functions,
powers and duties of existing offices and agencies of government to the
extent consistent with this Compact. Further, the Council shall promote
and aid the coordination of the activities and programs of the Parties
concerned with Water resources management in the Basin. To this end, but
without limitation, the Council may:

1. Advise, consult, contract, assist or otherwise cooperate with any
and all such agencies;

2. Employ any other agency or instrumentality of any of the Parties
for any purpose; and,

3. Develop and adopt plans consistent with the Water resources plans
of the Parties.

Section 2.7. Jurisdiction.

The Council shall have, exercise and discharge its functions, powers
and duties within the limits of the Basin. Outside the Basin, it may act
in its discretion, but only to the extent such action may be necessary
or convenient to effectuate or implement its powers or responsibilities
within the Basin and subject to the consent of the jurisdiction wherein
it proposes to act.

Section 2.8. Status, Immunities and Privileges.

1. The Council, its members and personnel in their official capacity
and when engaged directly in the affairs of the Council, its property
and its assets, wherever located and by whomsoever held, shall enjoy the
same immunity from suit and every form of judicial process as is enjoyed
by the Parties, except to the extent that the Council may expressly
waive its immunity for the purposes of any proceedings or by the terms
of any contract.

2. The property and assets of the Council, wherever located and by
whomsoever held, shall be considered public property and shall be immune
from search, requisition, confiscation, expropriation or any other form
of taking or foreclosure by executive or legislative action.

3. The Council, its property and its assets, income and the operations
it carries out pursuant to this Compact shall be immune from all
taxation by or under the authority of any of the Parties or any
political subdivision thereof; provided, however, that in lieu of
property taxes the Council may make reasonable payments to local taxing
districts in annual amounts which shall approximate the taxes lawfully
assessed upon similar property.

Section 2.9. Advisory Committees.

The Council may constitute and empower advisory committees, which may
be comprised of representatives of the public and of federal, State,
tribal, county and local governments, water resources agencies,
water-using industries and sectors, water-interest groups and academic
experts in related fields.

ARTICLE 3

GENERAL POWERS AND DUTIES

Section 3.1. General.

The Waters and Water Dependent Natural Resources of the Basin are
subject to the sovereign right and responsibilities of the Parties, and
it is the purpose of this Compact to provide for joint exercise of such
powers of sovereignty by the Council in the common interests of the
people of the region, in the manner and to the extent provided in this
Compact. The Council and the Parties shall use the Standard of Review
and Decision and procedures contained in or adopted pursuant to this
Compact as the means to exercise their authority under this Compact.

The Council may revise the Standard of Review and Decision, after
consultation with the Provinces and upon unanimous vote of all Council
members, by regulation duly adopted in accordance with Section 3.3 of
this Compact and in accordance with each Party's respective statutory
authorities and applicable procedures.

The Council shall identify priorities and develop plans and policies
relating to Basin Water resources. It shall adopt and promote uniform
and coordinated policies for Water resources conservation and management
in the Basin.

Section 3.2. Council Powers.

The Council may: plan; conduct research and collect, compile, analyze,
interpret, report and disseminate data on Water resources and uses;
forecast Water levels; conduct investigations; institute court actions;
design, acquire, construct, reconstruct, own, operate, maintain,
control, sell and convey real and personal property and any interest
therein as it may deem necessary, useful or convenient to carry out the
purposes of this Compact; make contracts; receive and accept such
payments, appropriations, grants, gifts, loans, advances and other
funds, properties and services as may be transferred or made available
to it by any Party or by any other public or private agency, corporation
or individual; and, exercise such other and different powers as may be
delegated to it by this Compact or otherwise pursuant to law, and have
and exercise all powers necessary or convenient to carry out its express
powers or which may be reasonably implied therefrom.

Section 3.3. Rules and Regulations.

1. The Council may promulgate and enforce such rules and regulations
as may be necessary for the implementation and enforcement of this
Compact. The Council may adopt by regulation, after public notice and
public hearing, reasonable Application fees with respect to those
Proposals for Exceptions that are subject to Council review under
Section 4.9. Any rule or regulation of the Council, other than one which
deals solely with the internal management of the Council or its
property, shall be adopted only after public notice and hearing.

2. Each Party, in accordance with its respective statutory authorities
and applicable procedures, may adopt and enforce rules and regulations
to implement and enforce this Compact and the programs adopted by such
Party to carry out the management programs contemplated by this Compact.

Section 3.4. Program Review and Findings.

1. Each Party shall submit a report to the Council and the Regional
Body detailing its Water management and conservation and efficiency
programs that implement this Compact. The report shall set out the
manner in which Water Withdrawals are managed by sector, Water source,
quantity or any other means, and how the provisions of the Standard of
Review and Decision and conservation and efficiency programs are
implemented. The first report shall be provided by each Party one year
from the effective date of this Compact and thereafter every 5 years.

2. The Council, in cooperation with the Provinces, shall review its
Water management and conservation and efficiency programs and those of
the Parties that are established in this Compact and make findings on
whether the Water management program provisions in this Compact are
being met, and if not, recommend options to assist the Parties in
meeting the provisions of this Compact. Such review shall take place:

a. 30 days after the first report is submitted by all Parties; and,

b. Every five years after the effective date of this Compact; and,

c. At any other time at the request of one of the Parties.

3. As one of its duties and responsibilities, the Council may
recommend a range of approaches to the Parties with respect to the
development, enhancement and application of Water management and
conservation and efficiency programs to implement the Standard of Review
and Decision reflecting improved scientific understanding of the Waters
of the Basin, including groundwater, and the impacts of Withdrawals on
the Basin Ecosystem.

ARTICLE 4

WATER MANAGEMENT AND REGULATION

Section 4.1. Water Resources Inventory, Registration and Reporting.

1. Within five years of the effective date of this Compact, each Party
shall develop and maintain a Water resources inventory for the
collection, interpretation, storage, retrieval, exchange, and
dissemination of information concerning the Water resources of the
Party, including, but not limited to, information on the location, type,
quantity, and use of those resources and the location, type, and
quantity of Withdrawals, Diversions and Consumptive Uses. To the extent
feasible, the Water resources inventory shall be developed in
cooperation with local, State, federal, tribal and other private
agencies and entities, as well as the Council. Each Party's agencies
shall cooperate with that Party in the development and maintenance of
the inventory.

2. The Council shall assist each Party to develop a common base of
data regarding the management of the Water Resources of the Basin and to
establish systematic arrangements for the exchange of those data with
other States and Provinces.

3. To develop and maintain a compatible base of Water use information,
within five years of the effective date of this Compact any Person who
Withdraws Water in an amount of 100,000 gallons per day or greater
average in any 30-day period (including Consumptive Uses) from all
sources, or Diverts Water of any amount, shall register the Withdrawal
or Diversion by a date set by the Council unless the Person has
previously registered in accordance with an existing State program. The
Person shall register the Withdrawal or Diversion with the Originating
Party using a form prescribed by the Originating Party that shall
include, at a minimum and without limitation: the name and address of
the registrant and date of registration; the locations and sources of
the Withdrawal or Diversion; the capacity of the Withdrawal or Diversion
per day and the amount Withdrawn or Diverted from each source; the uses
made of the Water; places of use and places of discharge; and, such
other information as the Originating Party may require. All
registrations shall include an estimate of the volume of the Withdrawal
or Diversion in terms of gallons per day average in any 30-day period.

4. All registrants shall annually report the monthly volumes of the
Withdrawal, Consumptive Use and Diversion in gallons to the Originating
Party and any other information requested by the Originating Party.

5. Each Party shall annually report the information gathered pursuant
to this Section to a Great Lakes - St. Lawrence River Water use data
base repository and aggregated information shall be made publicly
available, consistent with the confidentiality requirements in Section
8.3.

6. Information gathered by the Parties pursuant to this Section shall
be used to improve the sources and applications of scientific
information regarding the Waters of the Basin and the impacts of the
Withdrawals and Diversions from various locations and Water sources on
the Basin Ecosystem, and to better understand the role of groundwater in
the Basin. The Council and the Parties shall coordinate the collection
and application of scientific information to further develop a mechanism
by which individual and Cumulative Impacts of Withdrawals, Consumptive
Uses and Diversions shall be assessed.

Section 4.2. Water Conservation and Efficiency Programs.

1. The Council commits to identify, in cooperation with the Provinces,
Basin-wide Water conservation and efficiency objectives to assist the
Parties in developing their Water conservation and efficiency program.
These objectives are based on the goals of:

a. Ensuring improvement of the Waters and Water Dependent Natural
Resources;

b. Protecting and restoring the hydrologic and ecosystem integrity of
the Basin;

c. Retaining the quantity of surface water and groundwater in the
Basin;

d. Ensuring sustainable use of Waters of the Basin; and,

e. Promoting the efficiency of use and reducing losses and waste of
Water.

2. Within two years of the effective date of this Compact, each Party
shall develop its own Water conservation and efficiency goals and
objectives consistent with the Basin-wide goals and objectives, and
shall develop and implement a Water conservation and efficiency program,
either voluntary or mandatory, within its jurisdiction based on the
Party's goals and objectives. Each Party shall annually assess its
programs in meeting the Party's goals and objectives, report to the
Council and the Regional Body and make this annual assessment available
to the public.

3. Beginning five years after the effective date of this Compact, and
every five years thereafter, the Council, in cooperation with the
Provinces, shall review and modify as appropriate the Basin-wide
objectives, and the Parties shall have regard for any such modifications
in implementing their programs. This assessment will be based on
examining new technologies, new patterns of Water use, new resource
demands and threats, and Cumulative Impact assessment under Section
4.15.

4. Within two years of the effective date of this Compact, the Parties
commit to promote Environmentally Sound and Economically Feasible Water
Conservation Measures such as:

a. Measures that promote efficient use of Water;

b. Identification and sharing of best management practices and state
of the art conservation and efficiency technologies;

c. Application of sound planning principles;

d. Demand-side and supply-side Measures or incentives; and,

e. Development, transfer and application of science and research.

5. Each Party shall implement in accordance with Paragraph 2 a
voluntary or mandatory Water conservation program for all, including
existing, Basin Water users. Conservation programs need to adjust to new
demands and the potential impacts of cumulative effects and climate.

Section 4.3. Party Powers and Duties.

1. Each Party, within its jurisdiction, shall manage and regulate New
or Increased Withdrawals, Consumptive Uses and Diversions, including
Exceptions, in accordance with this Compact.

2. Each Party shall require an Applicant to submit an Application in
such manner and with such accompanying information as the Party shall
prescribe.

3. No Party may approve a Proposal if the Party determines that the
Proposal is inconsistent with this Compact or the Standard of Review and
Decision or any implementing rules or regulations promulgated
thereunder. The Party may approve, approve with modifications or
disapprove any Proposal depending on the Proposal's consistency with
this Compact and the Standard of Review and Decision.

4. Each Party shall monitor the implementation of any approved
Proposal to ensure consistency with the approval and may take all
necessary enforcement actions.

5. No Party shall approve a Proposal subject to Council or Regional
Review, or both, pursuant to this Compact unless it shall have been
first submitted to and reviewed by either the Council or Regional Body,
or both, and approved by the council, as applicable. Sufficient
opportunity shall be provided for comment on the Proposal's consistency
with this Compact and the Standard of Review and Decision. All such
comments shall become part of the Party's formal record of decision, and
the Party shall take into consideration any such comments received.

Section 4.4. Requirement for Originating Party Approval.

No Proposal subject to management and regulation under this Compact
shall hereafter be undertaken by any Person unless it shall have been
approved by the Originating Party.

Section 4.5. Regional Review.

1. General.

a. It is the intention of the Parties to participate in Regional
Review of Proposals with the Provinces, as described in this Compact and
the Agreement.

b. Unless the Applicant or the Originating Party otherwise requests,
it shall be the goal of the Regional Body to conclude its review no
later than 90 days after notice under Section 4.5.2 of such Proposal is
received from the Originating Party.

c. Proposals for Exceptions subject to Regional Review shall be
submitted by the Originating Party to the Regional Body for Regional
Review, and where applicable, to the Council for concurrent review.

d. The Parties agree that the protection of the integrity of the Great
Lakes - St. Lawrence River Basin ecosystem shall be the overarching
principle for reviewing Proposals subject to Regional Review,
recognizing uncertainties with respect to demands that may be placed on
Basin Water, including groundwater, levels and flows of the Great Lakes
and the St. Lawrence River, future changes in environmental conditions,
the reliability of existing data and the extent to which Diversions may
harm the integrity of the Basin Ecosystem.

e. The Originating Party shall have lead responsibility for
coordinating information for resolution of issues related to evaluation
of a Proposal, and shall consult with the Applicant throughout the
Regional Review Process.

f. A majority of the members of the Regional Body may request Regional
review of a regionally significant or potentially precedent setting
Proposal. Such Regional Review must be conducted, to the extent
possible, within the time frames set forth in this Section. Any such
Regional Review shall be undertaken only after consulting the Applicant.

2. Notice from Originating Party to the Regional Body.

a. The Originating Party shall determine if a Proposal is subject to
Regional Review. If so, the Originating Party shall provide timely
notice to the Regional Body and the public.

b. Such notice shall not be given unless and until all information,
documents and the Originating Party's Technical Review needed to
evaluate whether the Proposal meets the Standard of Review and Decision
have been provided.

c. An Originating Party may:

i. Provide notice to the Regional Body of an Application, even if
notification is not required; or,

ii. Request Regional Review of an application, even if Regional Review
is not required. Any such Regional Review shall be undertaken only after
consulting the Applicant.

d. An Originating Party may provide preliminary notice of a potential
Proposal.

3. Public Participation.

a. To ensure adequate public participation, the Regional Body shall
adopt procedures for the review of Proposals that are subject to
Regional Review in accordance with this Article.

b. The Regional Body shall provide notice to the public of Proposal
undergoing Regional Review. Such notice shall indicate that the public
has an opportunity to comment in writing to the Regional Body on whether
the Proposal meets the Standard of Review and Decision.

c. The Regional Body shall hold a public meeting in the State or
Province of the Originating Party in order to receive public comment on
the issue of whether the Proposal under consideration meets the Standard
of Review and Decision.

d. The Regional Body shall consider the comments received before
issuing a Declaration of Finding.

e. The Regional Body shall forward the comments it receives to the
Originating Party.

4. Technical Review.

a. The Originating Party shall provide the Regional Body with its
Technical Review of the Proposal under consideration.

b. The Originating Party's Technical Review shall thoroughly analyze
the Proposal and provide an evaluation of the Proposal sufficient for a
determination of whether the Proposal meets the Standard of Review and
Decision.

c. Any member of the Regional Body may conduct their own Technical
Review of any Proposal subject to Regional Review.

d. At the request of the majority of its members, the Regional Body
shall make such arrangements as it considers appropriate for an
independent Technical Review of a Proposal.

e. All Parties shall exercise their best efforts to ensure that a
Technical Review undertaken under Sections 4.5.4.c and 4.5.4.d does not
unnecessarily delay the decision by the Originating Party on the
Application. Unless the Applicant or the Originating Party otherwise
requests, all Technical Reviews shall be completed no later than 60 days
after the date the notice of the Proposal was given to the Regional
Body.

5. Declaration of Finding.

a. The Regional Body shall meet to consider a Proposal. The Applicant
shall be provided with an opportunity to present the Proposal to the
Regional Body at such time.

b. The Regional Body, having considered the notice, the Originating
Party's Technical Review, any other independent Technical Review that is
made, any comments or objections including the analysis of comments made
by the public, First Nations and federally recognized Tribes, and any
other information that is provided under this Compact shall issue a
Declaration of Finding that the Proposal under consideration:

i. Meets the Standard of Review and Decision;

ii. Does not meet the Standard of Review and Decision; or,

iii. Would meet the Standard of Review and Decision if certain
conditions were met.

c. An Originating Party may decline to participate in a Declaration of
Finding made by the Regional Body.

d. The Parties recognize and affirm that it is preferable for all
members of the Regional Body to agree whether the Proposal meets the
Standard of Review and Decision.

e. If the members of the Regional Body who participate in the
Declaration of Finding all agree, they shall issue a written Declaration
of Finding with consensus.

f. In the event that the members cannot agree, the Regional Body shall
make every reasonable effort to achieve consensus within 25 days.

g. Should consensus not be achieved, the Regional Body may issue a
Declaration of Finding that presents different points of view and
indicates each Party's conclusions.

h. The Regional Body shall release the Declarations of Finding to the
public.

i. The Originating Party and the Council shall consider the
Declaration of Finding before making a decision on the Proposal.

Section 4.6. Proposals Subject to Prior Notice.

1. Beginning no later than five years of the effective date of this
Compact, the Originating Party shall provide all Parties and the
Provinces with detailed and timely notice and an opportunity to comment
within 90 days on any Proposal for a New or Increased Consumptive Use of
5 million gallons per day or greater average in any 90-day period.
Comments shall address whether or not the Proposal is consistent with
the Standard of Review and Decision. The Originating Party shall provide
a response to any such comment received from another Party.

2. A Party may provide notice, an opportunity to comment and a
response to comments even if this is not required under Paragraph 1 of
this Section. Any provision of such notice and opportunity to comment
shall be undertaken only after consulting the Applicant.

Section 4.7. Council Actions.

1. Proposals for Exceptions subject to Council Review shall be
submitted by the Originating Party to the Council for Council Review,
and where applicable, to the Regional Body for concurrent review.

2. The Council shall review and take action on Proposals in accordance
with this Compact and the Standard of Review and Decision. The Council
shall not take action on a Proposal subject to Regional Review pursuant
to this Compact unless the Proposal shall have been first submitted to
and reviewed by the Regional Body. The Council shall consider any
findings resulting from such review.

Section 4.8. Prohibition of New or Increased Diversions.

All New or Increased Diversions are prohibited, except as provided for
in this Article.

Section 4.9. Exceptions to the Prohibition of Diversions.

1. Straddling Communities. A Proposal to transfer Water to an area
within a Straddling Community but outside the Basin or outside the
source great lake Watershed shall be excepted from the prohibition
against Diversions and be managed and regulated by the Originating Party
provided that, regardless of the volume of Water transferred, all the
Water so transferred shall be used solely for Public Water Supply
Purposes within the Straddling Community, and:

a. All Water Withdrawn from the Basin shall be returned, either
naturally or after use, to the Source Watershed less an allowance for
Consumptive Use. No surface water or groundwater from outside the Basin
may be used to satisfy any portion of this criterion except if it:

i. Is part of a water supply or wastewater treatment system that
combines water from inside and outside of the Basin;

ii. Is treated to meet applicable water quality discharge standards
and to prevent the introduction of invasive species into the Basin;

iii. Maximizes the portion of water returned to the Source Watershed
as Basin Water and minimizes the surface water or groundwater from
outside the Basin;

b. If the Proposal results from a New or Increased Withdrawal of
100,000 gallons per day or greater average over any 90-day period, the
Proposal shall also meet the Exception Standard; and

c. If the Proposal results in a New or Increased Consumptive Use of 5
million gallons per day or greater average over any 90-day period, the
Proposal shall also undergo Regional Review.

2. Intra-Basin Transfer. A Proposal for an Intra-Basin Transfer that
would be considered a Diversion under this Compact, and not already
excepted pursuant to Paragraph 1 of this Section, shall be excepted from
the prohibition against Diversions, provided that:

a. If the Proposal results from a New or Increased Withdrawal less
than 100,000 gallons per day average over any 90-day period, the
Proposal shall be subject to management and regulation at the discretion
of the Originating Party.

b. If the Proposal results from a New or Increased Withdrawal 100,000
gallons per day or greater average over any 90-day period and if the
Consumptive Use resulting from the Withdrawal is less than five million
gallons per day average over any 90-day period:

i. The Proposal shall meet the Exception Standard and be subject to
management and regulation by the Originating Party, except that the
Water may be returned to another Great Lake watershed rather than the
Source Watershed;

ii. The Applicant shall demonstrate that there is no feasible, cost
effective, and environmentally sound water supply alternative within the
Great Lake watershed to which the Water will be transferred, including
conservation of existing water supplies; and,

iii. The Originating Party shall provide notice to the other Parties
prior to making any decision with respect to the Proposal.

c. If the Proposal results in a New or Increased Consumptive Use of 5
million gallons per day or greater average over any 90-day period:

i. The Proposal shall be subject to management and regulation by the
Originating Party and shall meet the Exception Standard, ensuring that
Water Withdrawn shall be returned to the Source Watershed;

ii. The Applicant shall demonstrate that there is no feasible, cost
effective, and environmentally sound water supply alternative within the
great lake watershed to which the Water will be transferred, including
conservation of existing water supplies;

iii. The Proposal undergoes Regional Review; and,

iv. The Proposal is approved by the Council. Council approval shall be
given unless one or more Council Members vote to disapprove.

3. Straddling Counties. A Proposal to transfer Water to a Community
within a Straddling County that would be considered a Diversion under
this Compact shall be excepted from the prohibition against Diversions,
provided that it satisfies all of the following conditions:

a. The Water shall be used solely for the Public Water Supply Purposes
of the Community within a Straddling County that is without adequate
supplies of potable water;

b. The Proposal meets the Exception Standard, maximizing the portion
of water returned to the Source Watershed as Basin Water and minimizing
the surface water or groundwater from outside the Basin;

c. The Proposal shall be subject to management and regulation by the
Originating Party, regardless of its size;

d. There is no reasonable water supply alternative within the basin in
which the community is located, including conservation of existing water
supplies;

e. Caution shall be used in determining whether or not the Proposal
meets the conditions for this Exception. This Exception should not be
authorized unless it can be shown that it will not endanger the
integrity of the Basin Ecosystem;

f. The Proposal undergoes Regional Review; and,

g. The Proposal is approved by the Council. Council approval shall be
given unless one or more Council Members vote to disapprove.

A Proposal must satisfy all of the conditions listed above. Further,
substantive consideration will also be given to whether or not the
Proposal can provide sufficient scientifically based evidence that the
existing water supply is derived from groundwater that is hydrologically
interconnected to Waters of the Basin.

4. Exception Standard. Proposals subject to management and regulation
in this Section shall be declared to meet this Exception Standard and
may be approved as appropriate only when the following criteria are met:

a. The need for all or part of the proposed Exception cannot be
reasonably avoided through the efficient use and conservation of
existing water supplies;

b. The Exception will be limited to quantities that are considered
reasonable for the purposes for which it is proposed;

c. All Water Withdrawn shall be returned, either naturally or after
use, to the Source Watershed less an allowance for Consumptive Use. No
surface water or groundwater from the outside the Basin may be used to
satisfy any portion of this criterion except if it:

i. Is part of a water supply or wastewater treatment system that
combines water from inside and outside of the Basin;

ii. Is treated to meet applicable water quality discharge standards
and to prevent the introduction of invasive species into the Basin;

d. The Exception will be implemented so as to ensure that it will
result in no significant individual or cumulative adverse impacts to the
quantity or quality of the Waters and Water Dependent Natural Resources
of the Basin with consideration given to the potential Cumulative
Impacts of any precedent-setting consequences associated with the
Proposal;

e. The Exception will be implemented so as to incorporate
Environmentally Sound and Economically Feasible Water Conservation
Measures to minimize Water Withdrawals or Consumptive Use;

f. The Exception will be implemented so as to ensure that it is in
compliance with all applicable municipal, State and federal laws as well
as regional interstate and international agreements, including the
Boundary Waters Treaty of 1909; and,

g. All other applicable criteria in Section 4.9 have also been met.

Section 4.10. Management and regulation of New or Increased
Withdrawals and Consumptive Uses.

1. Within five years of the effective date of this Compact, each Party
shall create a program for the management and regulation of New or
Increased Withdrawals and Consumptive Uses by adopting and implementing
Measures consistent with the Decision-Making Standard. Each Party,
through a considered process, shall set and may modify threshold levels
for the regulation of New or Increased Withdrawals in order to assure an
effective and efficient Water management program that will ensure that
uses overall are reasonable, that Withdrawals overall will not result in
significant impacts to the Waters and Water Dependent Natural Resources
of the Basin, determined on the basis of significant impacts to the
physical, chemical, and biological integrity of Source Watersheds, and
that all other objectives of the Compact are achieved. Each Party may
determine the scope and thresholds of its program, including which New
or Increased Withdrawals and Consumptive Uses will be subject to the
program.

2. Any Party that fails to set threshold levels that comply with
Section 4.10.1 any time before 10 years after the effective date of this
Compact shall apply a threshold level for management and regulation of
all New or Increased Withdrawals of 100,000 gallons per day or greater
average in any 90 day period.

3. The Parties intend programs for New or Increased Withdrawals and
Consumptive Uses to evolve as may be necessary to protect Basin Waters.
Pursuant to Section 3.4, the Council, in cooperation with the Provinces,
shall periodically assess the Water management programs of the Parties.
Such assessments may produce recommendations for the strengthening of
the programs, including without limitation, establishing lower
thresholds for management and regulation in accordance with the
Decision-Making Standard.

Section 4.11. Decision-Making Standard.

Proposals subject to management and regulation in Section 4.10 shall
be declared to meet this Decision-Making Standard and may be approved as
appropriate only when the following criteria are met:

1. All Water Withdrawn shall be returned, either naturally or after
use, to the Source Watershed less an allowance for Consumptive Use;

2. The Withdrawal or Consumptive Use will be implemented so as to
ensure that the Proposal will result in no significant individual or
cumulative adverse impacts to the quantity or quality of the Waters and
Water Dependent Natural Resources and the applicable Source Watershed;

3. The Withdrawal or Consumptive Use will be implemented so as to
incorporate Environmentally Sound and Economically Feasible Water
Conservation Measures;

4. The Withdrawal or Consumptive Use will be implemented so as to
ensure that it is in compliance with all applicable municipal, State and
federal laws as well as regional interstate and international
agreements, including the Boundary Waters Treaty of 1909;

5. The proposed use is reasonable, based upon a consideration of the
following factors:

a. Whether the proposed Withdrawal or Consumptive Use is planned in a
fashion that provides for efficient use of the water, and will avoid or
minimize the waste of Water;

b. If the proposal is for an increased Withdrawal or Consumptive Use,
whether efficient use is made of existing water supplies;

c. The balance between economic development, social development and
environmental protection of the proposed Withdrawal and use and other
existing or planned withdrawals and water uses sharing the water source;

d. The supply potential of the water source, considering quantity,
quality, and reliability and safe yield of hydrologically interconnected
water sources;

e. The probable degree and duration of any adverse impacts caused or
expected to be caused by the proposed Withdrawal and use under
foreseeable conditions, to other lawful consumptive or non-consumptive
uses of water or to the quantity or quality of the Waters and Water
Dependent Natural Resources of the Basin, and the proposed plans and
arrangements for avoidance or mitigation of such impacts; and,

f. If a proposal includes restoration of hydrologic conditions and
functions of the Source Watershed, the Party may consider that.

Section 4.12. Applicability.

1. Minimum Standard. This Standard of Review and Decision shall be
used as a minimum standard. Parties may impose a more restrictive
decision-making standard for Withdrawals under their authority. It is
also acknowledged that although a Proposal meets the Standard of Review
and Decision it may not be approved under the laws of the Originating
Party that has implemented more restrictive Measures.

2. Baseline. a. To establish a baseline for determining a New or
Increased Diversion, Consumptive Use or Withdrawal, each Party shall
develop either or both of the following lists for their jurisdiction:

i. A list of existing Withdrawal approvals as of the effective date of
the Compact;

ii. A list of the capacity of existing systems as of the effective
date of this Compact. The capacity of the existing systems should be
presented in terms of Withdrawal capacity, treatment capacity,
distribution capacity, or other capacity limiting factors. The capacity
of the existing systems must represent the state of the systems.
Existing capacity determinations shall be based upon approval limits or
the most restrictive capacity information.

b. For all purposes of this Compact, volumes of Diversions,
Consumptive Uses, or Withdrawals of Water set forth in the list(s)
prepared by each Party in accordance with this Section, shall constitute
the baseline volume.

c. The list(s) shall be furnished to the Regional Body and the Council
within one year of the effective date of this Compact.

3. Timing of Additional Applications. Applications for New or
Increased Withdrawals, Consumptive Uses or Exceptions shall be
considered cumulatively within ten years of any application.

4. Change of Ownership. Unless a new owner proposes a project that
shall result in a Proposal for a new or Increased Diversion or
Consumptive Use subject to Regional Review or Council approval, the
change of ownership in and of itself shall not require Regional Review
or Council approval.

5. Groundwater. The Basin surface water divide shall be used for the
purpose of managing and regulating New or Increased Diversions,
Consumptive Uses or Withdrawals of surface water and groundwater.

6. Withdrawal Systems. The total volume of surface water and
groundwater resources that supply a common distribution system shall
determine the volume of a Withdrawal, Consumptive Use or Diversion.

7. Connecting Channels. The watershed of each Great Lake shall include
its upstream and downstream connecting channels.

8. Transmission in Water Lines. Transmission of Water within a line
that extends outside the Basin as it conveys Water from one point to
another within the Basin shall not be considered a Diversion if none of
the Water is used outside the Basin.

9. Hydrologic Units. The Lake Michigan and Lake Huron watersheds shall
be considered to be a single hydrologic unit and watershed.

10. Bulk Water Transfer. A Proposal to Withdraw Water and to remove it
from the Basin in any container greater than 5.7 gallons shall be
treated under this Compact in the same manner as a Proposal for a
Diversion. Each Party shall have the discretion, within its
jurisdiction, to determine the treatment of Proposals to Withdraw Water
and to remove it from the Basin in any container of 5.7 gallons or less.

Section 4.13. Exemptions.

Withdrawals from the Basin for the following purposes are exempt from
the requirements of Article 4.

1. To supply vehicles, including vessels and aircraft, whether for the
needs of the persons or animals being transported or for ballast or
other needs related to the operation of the vehicles.

2. To use in a non-commercial project on a short-term basis for
firefighting, humanitarian, or emergency response purposes.

Section 4.14. U.S. Supreme Court Decree: Wisconsin et al. v. Illinois
et al.

1. Notwithstanding any terms of this Compact to the contrary, with the
exception of Paragraph 5 of this Section, current, New or Increased
Withdrawals, Consumptive Uses and Diversions of Basin Water by the State
of Illinois shall be governed by the terms of the United States Supreme
Court decree in Wisconsin et al. v. Illinois et al. and shall not be
subject to the terms of this Compact nor any rules or regulations
promulgated pursuant to this Compact. This means that, with the
exception of Paragraph 5 of this Section, for purposes of this Compact,
current, New or Increased Withdrawals, Consumptive Uses and Diversions
of Basin Water within the State of Illinois shall be allowed unless
prohibited by the terms of the United States Supreme Court decree in
Wisconsin et al. v. Illinois et al.

2. The Parties acknowledge that the United States Supreme Court decree
in Wisconsin et al. v. Illinois et al. shall continue in full force and
effect, that this Compact shall not modify any terms thereof, and that
this Compact shall grant the parties no additional rights, obligations,
remedies or defenses thereto. The Parties specifically acknowledge that
this Compact shall not prohibit or limit the State of Illinois in any
manner from seeking additional Basin Water as allowed under the terms of
the United States Supreme Court decree in Wisconsin et al. v. Illinois
et al., any other party from objecting to any request by the State of
Illinois for additional Basin Water under the terms of said decree, or
any party from seeking any other type of modification to said decree. If
an application is made by any party to the Supreme Court of the United
States to modify said decree, the Parties to this Compact who are also
parties to the decree shall seek formal input from the Canadian
Provinces of Ontario and Quebec, with respect to the proposed
modification, use best efforts to facilitate the appropriate
participation of said Provinces in the proceedings to modify the decree,
and shall not unreasonably impede or restrict such participation.

3. With the exception of Paragraph 5 of this Section, because current,
New or Increased Withdrawals, Consumptive Uses and Diversions of Basin
Water by the State of Illinois are not subject to the terms of this
Compact, the State of Illinois is prohibited from using any term of this
Compact, including Section 4.9, to seek New or Increased Withdrawals,
Consumptive Uses or Diversions of Basin Water.

4. With the exception of Paragraph 5 of this Section, because Sections
4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12 (Paragraphs 1, 2, 3,
4, 6 and 10 only), and 4.13 of this Compact all relate to current, New
or Increased Withdrawals, Consumptive Uses and Diversions of Basin
Waters, said provisions do not apply to the State of Illinois. All other
provisions of this Compact not listed in the preceding sentence shall
apply to the State of Illinois, including the Water Conservation
Programs provision of Section 4.2.

5. In the event of a Proposal for a Diversion of Basin Water for use
outside the territorial boundaries of the Parties to this Compact,
decisions by the State of Illinois regarding such a Proposal would be
subject to all terms of this Compact, except Paragraphs 1, 3 and 4 of
this Section.

6. For purposes of the State of Illinois' participation in this
Compact, the entirety of this Section 4.14 is necessary for the
continued implementation of this Compact and, if severed, this Compact
shall no longer be binding on or enforceable by or against the State of
Illinois.

Section 4.15. Assessment of Cumulative Impacts.

1. The Parties in cooperation with the Provinces shall collectively
conduct within the Basin, on a Lake watershed and St. Lawrence River
Basin basis, a periodic assessment of the Cumulative Impacts of
Withdrawals, Diversions and Consumptive Uses from the Waters of the
Basin, every 5 years or each time the incremental Basin Water losses
reach 50 million gallons per day average in any 90-day period in excess
of the quantity at the time of the most recent assessment, whichever
comes first, or at the request of one or more of the Parties. The
assessment shall form the basis for a review of the Standard of Review
and Decision, Council and Party regulations and their application. This
assessment shall:

a. Utilize the most current and appropriate guidelines for such a
review, which may include but not be limited to Council on Environmental
Quality and Environment Canada guidelines;

b. Give substantive consideration to climate change or other
significant threats to Basin Waters and take into account the current
state of scientific knowledge, or uncertainty, and appropriate Measures
to exercise caution in cases of uncertainty if serious damage may
result;

c. Consider adaptive management principles and approaches,
recognizing, considering and providing adjustments for the uncertainties
in, and evolution of science concerning the Basin's water resources,
watersheds and ecosystems, including potential changes to Basin-wide
processes, such as lake level cycles and climate.

2. The Parties have the responsibility of conducting this Cumulative
Impact assessment. Applicants are not required to participate in this
assessment.

3. Unless required by other statutes, Applicants are not required to
conduct a separate cumulative impact assessment in connection with an
Application but shall submit information about the potential impacts of
a Proposal to the quantity or quality of the Waters and Water Dependent
Natural Resources of the applicable Source Watershed. An Applicant may,
however, provide an analysis of how their Proposal meets the no
significant adverse Cumulative Impact provision of the Standard of
Review and Decision.

ARTICLE 5

TRIBAL CONSULTATION

Section 5.1. Consultation with Tribes.

1. In addition to all other opportunities to comment pursuant to
Section 6.2, appropriate consultations shall occur with federally
recognized Tribes in the Originating Party for all Proposals subject to
Council or Regional Review pursuant to this Compact. Such consultations
shall be organized in the manner suitable to the individual Proposal and
the laws and policies of the Originating Party.

2. All federally recognized Tribes within the Basin shall receive
reasonable notice indicating that they have an opportunity to comment in
writing to the Council or the Regional Body, or both, and other relevant
organizations on whether the Proposal meets the requirements of the
Standard of Review and Decision when a Proposal is subject to Regional
Review or Council approval. Any notice from the Council shall inform the
Tribes of any meeting or hearing that is to be held under Section 6.2
and invite them to attend. The Parties and the Council shall consider
the comments received under this Section before approving, approving
with modifications or disapproving any Proposal subject to Council or
Regional Review.

3. In addition to the specific consultation mechanisms described
above, the Council shall seek to establish mutually agreed upon
mechanisms or processes to facilitate dialogue with, and input from
federally recognized Tribes on matters to be dealt with by the Council;
and, the Council shall seek to establish mechanisms and processes with
federally recognized Tribes designed to facilitate on-going scientific
and technical interaction and data exchange regarding matters falling
within the scope of this Compact. This may include participation of
tribal representatives on advisory committees established under this
Compact or such other processes that are mutually-agreed upon with
federally recognized Tribes individually or through duly-authorized
intertribal agencies or bodies.

ARTICLE 6

PUBLIC PARTICIPATION

Section 6.1. Meetings, Public Hearings and Records.

1. The Parties recognize the importance and necessity of public
participation in promoting management of the Water Resources of the
Basin. Consequently, all meetings of the Council shall be open to the
public, except with respect to issues of personnel.

2. The minutes of the Council shall be a public record open to
inspection at its offices during regular business hours.

Section 6.2. Public Participation.

It is the intent of the Council to conduct public participation
processes concurrently and jointly with processes undertaken by the
Parties and through Regional Review. To ensure adequate public
participation, each Party or the Council shall ensure procedures for the
review of Proposals subject to the Standard of Review and Decision
consistent with the following requirements:

1. Provide public notification of receipt of all Applications and a
reasonable opportunity for the public to submit comments before
Applications are acted upon.

2. Assure public accessibility to all documents relevant to an
Application, including public comment received.

3. Provide guidance on standards for determining whether to conduct a
public meeting(s) or hearing(s) for an Application, time and place of
such a meeting or hearing, and procedures for conducting of the same.

4. Provide the record of decision for public inspection including
comments, objections, responses and approvals, approvals with conditions
and disapprovals.

ARTICLE 7

DISPUTE RESOLUTION AND ENFORCEMENT

Section 7.1. Good Faith Implementation.

Each of the Parties pledges to support implementation of all
provisions of this Compact, and covenants that its officers and agencies
shall not hinder, impair, or prevent any other Party carrying out any
provision of this Compact.

Section 7.2. Alternative Dispute Resolution.

1. Desiring that this Compact be carried out in full, the Parties
agree that disputes between the Parties regarding interpretation,
application and implementation of this Compact shall be settled by
alternative dispute resolution.

2. The Council, in consultation with the Provinces, shall provide by
rule procedures for the resolution of disputes pursuant to this section.

Section 7.3. Enforcement.

1. Any Person aggrieved by any action taken by the Council pursuant to
the authorities contained in this Compact shall be entitled to a hearing
before the Council. Any Person aggrieved by a Party action shall be
entitled to a hearing pursuant to the relevant Party's administrative
procedures and laws. After exhaustion of such administrative remedies,
(i) any aggrieved Person shall have the right to judicial review of a
Council action in the United States District Courts for the District of
Columbia or the District Court in which the Council maintains offices,
provided such action is commenced within 90 days; and, (ii) any
aggrieved Person shall have the right to judicial review of a Party's
action in the relevant Party's court of competent jurisdiction, provided
that an action or proceeding for such review is commenced within the
time frames provided for by the Party's law. For the purposes of this
Paragraph, a State or Province is deemed to be an aggrieved Person with
respect to any Party action pursuant to this Compact.

2. a. Any Party or the Council may initiate actions to compel
compliance with the provisions of this Compact, and the rules and
regulations promulgated hereunder by the Council. Jurisdiction over such
actions is granted to the court of the relevant Party, as well as the
United States District Courts for the District of Columbia and the
District Court in which the Council maintains offices. The remedies
available to any such court shall include, but not be limited to,
equitable relief and civil penalties.

b. Each Party may issue orders within its respective jurisdiction and
may initiate actions to compel compliance with the provisions of its
respective statutes and regulations adopted to implement the authorities
contemplated by this Compact in accordance with the provisions of the
laws adopted in each Party's jurisdiction.

3. Any aggrieved Person, Party or the Council may commence a civil
action in the relevant Party's courts and administrative systems to
compel any Person to comply with this Compact should any such Person,
without approval having been given, undertake a New or Increased
Withdrawal, Consumptive Use or Diversion that is prohibited or subject
to approval pursuant to this Compact.

a. No action under this subsection may be commenced if:

i. The Originating Party or Council approval for the New or Increased
Withdrawal, Consumptive Use or Diversion has been granted; or,

ii. The Originating Party or Council has found that the New or
Increased Withdrawal, Consumptive Use or Diversion is not subject to
approval pursuant to this Compact.

b. No action under this subsection may be commenced unless:

i. A Person commencing such action has first given 60 days prior
notice to the Originating Party, the Council and Person alleged to be in
noncompliance; and,

ii. Neither the Originating Party nor the Council has commenced and is
diligently prosecuting appropriate enforcement actions to compel
compliance with this Compact.

The available remedies shall include equitable relief, and the
prevailing or substantially prevailing party may recover the costs of
litigation, including reasonable attorney and expert witness fees,
whenever the court determines that such an award is appropriate.

4. Each of the Parties may adopt provisions providing additional
enforcement mechanisms and remedies including equitable relief and civil
penalties applicable within its jurisdiction to assist in the
implementation of this Compact.

ARTICLE 8

ADDITIONAL PROVISIONS

Section 8.1. Effect on Existing Rights.

1. Nothing in this Compact shall be construed to affect, limit,
diminish or impair any rights validly established and existing as of the
effective date of this Compact under State or federal law governing the
Withdrawal of Waters of the Basin.

2. Nothing contained in this Compact shall be construed as affecting
or intending to affect or in any way to interfere with the law of the
respective Parties relating to common law Water rights.

3. Nothing in this Compact is intended to abrogate or derogate from
treaty rights or rights held by any Tribe recognized by the federal
government of the United States based upon its status as a Tribe
recognized by the federal government of the United States.

4. An approval by a Party or the Council under this Compact does not
give any property rights, nor any exclusive privileges, nor shall it be
construed to grant or confer any right, title, easement, or interest in,
to or over any land belonging to or held in trust by a Party; neither
does it authorize any injury to private property or invasion of private
rights, nor infringement of federal, State or local laws or regulations;
nor does it obviate the necessity of obtaining federal assent when
necessary.

Section 8.2. Relationship to Agreements Concluded by the United States
of America.

1. Nothing in this Compact is intended to provide nor shall be
construed to provide, directly or indirectly, to any Person any right,
claim or remedy under any treaty or international agreement nor is it
intended to derogate any right, claim, or remedy that already exists
under any treaty or international agreement.

2. Nothing in this Compact is intended to infringe nor shall be
construed to infringe upon the treaty power of the United States of
America, nor shall any term hereof be construed to alter or amend any
treaty or term thereof that has been or may hereafter be executed by the
United States of America.

3. Nothing in this Compact is intended to affect nor shall be
construed to affect the application of the Boundary Waters Treaty of
1909 whose requirements continue to apply in addition to the
requirements of this Compact.

Section 8.3. Confidentiality.

1. Nothing in this Compact requires a Party to breach confidentiality
obligations or requirements prohibiting disclosure, or to compromise
security of commercially sensitive or proprietary information.

2. A Party may take measures, including but not limited to deletion
and redaction, deemed necessary to protect any confidential, proprietary
or commercially sensitive information when distributing information to
other Parties. The Party shall summarize or paraphrase any such
information in a manner sufficient for the Council to exercise its
authorities contained in this Compact.

Section 8.4. Additional Laws.

Nothing in this Compact shall be construed to repeal, modify or
qualify the authority of any Party to enact any legislation or enforce
any additional conditions and restrictions regarding the management and
regulation of Waters within its jurisdiction.

Section 8.5. Amendments and Supplements.

The provisions of this Compact shall remain in full force and effect
until amended by action of the governing bodies of the Parties and
consented to and approved by any other necessary authority in the same
manner as this Compact is required to be ratified to become effective.

Section 8.6. Severability.

Should a court of competent jurisdiction hold any part of this Compact
to be void or unenforceable, it shall be considered severable from those
portions of the Compact capable of continued implementation in the
absence of the voided provisions. All other provisions capable of
continued implementation shall continue in full force and effect.

Section 8.7. Duration of Compact and Termination.

Once effective, the Compact shall continue in force and remain binding
upon each and every Party unless terminated.

This Compact may be terminated at any time by a majority vote of the
Parties. In the event of such termination, all rights established under
it shall continue unimpaired.

ARTICLE 9

EFFECTUATION

Section 9.1. Repealer.

All acts and parts of acts inconsistent with this act are to the
extent of such inconsistency hereby repealed.

Section 9.2. Effectuation by Chief Executive.

The Governor is authorized to take such action as may be necessary and
proper in his or her discretion to effectuate the Compact and the
initial organization and operation thereunder.

Section 9.3. Entire Agreement.

The parties consider this Compact to be complete and an integral
whole. Each provision of this Compact is considered material to the
entire Compact, and failure to implement or adhere to any provision may
be considered a material breach. Unless otherwise noted in this Compact,
any change or amendment made to the Compact by any Party in its
implementing legislation or by the U.S. Congress when giving its consent
to this Compact is not considered effective unless concurred in by all
Parties.

Section 9.4. Effective Date and Execution.

This Compact shall become binding and effective when ratified through
concurring legislation by the states of Illinois, Indiana, Michigan,
Minnesota, New York, Ohio and Wisconsin and the Commonwealth of
Pennsylvania and consented to by the Congress of the United States. This
Compact shall be signed and sealed in nine identical original copies by
the respective chief executives of the signatory Parties. One such copy
shall be filed with the Secretary of State of each of the signatory
Parties or in accordance with the laws of the state in which the filing
is made, and one copy shall be filed and retained in the archives of the
Council upon its organization. The signatures shall be affixed and
attested under the following form:

In Witness Whereof, and in evidence of the adoption and enactment into
law of this Compact by the legislatures of the signatory parties and
consent by the Congress of the United States, the respective Governors
do hereby, in accordance with the authority conferred by law, sign this
Compact in nine duplicate original copies, attested by the respective
Secretaries of State, and have caused the seals of the respective states
to be hereunto affixed this____ day of (month), (year)