2. For purposes of this Chapter, energy goods refer to those goods classified in the Harmonized System under:

1. Subject to the further rights and obligations of this Agreement, the Parties affirm their respective rights and obligations under the General Agreement on Tariffs and Trade (GATT) with respect to prohibitions or restrictions on bilateral trade in energy goods.

2. The Parties understand that the GATT rights and obligations affirmed in paragraph 1 prohibit, in any circumstances in which any other form of quantitative restriction is prohibited, minimum export-price requirements and, except as permitted in enforcement of countervailing and antidumping orders and undertakings, minimum import-price requirements.

3. In circumstances where a Party imposes a restriction on importation from or exportation to a third country of an energy good, nothing in this Agreement shall be construed to prevent the Party from:

4. In the event that either Party imposes a restriction on imports of an energy good from third countries, the Parties, upon request of either Party, shall consult with a view to avoiding undue interference with or distortion of pricing, marketing and distribution arrangements in the other Party.

5. The Parties shall implement the provisions of Annex 902.5.

Neither Party shall maintain or introduce any tax, duty, or charge on the export of any energy good to the territory of the other Party, unless such tax, duty, or charge is also maintained or introduced on such energy good when destined for domestic consumption.

Either Party may maintain or introduce a restriction otherwise justified under the provisions of Articles XI:2(a) and XX(g), (i) and (j) of the GATT with respect to the export of an energy good of the Party to the territory of the other Party, only if:

Article 905: Regulatory and Other Measures

1. If either Party considers that energy regulatory actions by the other Party would directly result in discrimination against its energy goods or its persons inconsistent with the principles of this Agreement, that Party may initiate direct consultations with the other Party. For purposes of this Article, an "energy regulatory action" shall include any action, in the case of Canada, by the National Energy Board, or its successor, and in the case of the United States of America, by either the Federal Energy Regulatory Commission or the Economic Regulatory Administration or their successors. Consultations with respect to the actions of these agencies shall include, in the case of Canada, the Department of Energy, Mines, and Resources and, in the case of the United States of America, the Department of Energy. With respect to a regulatory action of another agency, at any level of government, the Parties shall determine which agencies shall participate in the consultations.

2. In addition, the Parties shall implement the provisions of Annex 905.2.

Both Parties have agreed to allow existing or future incentives for oil and gas exploration, development and related activities in order to maintain the reserve base for these energy resources.

Neither Party shall maintain or introduce a measure restricting imports of an energy good from, or exports of an energy good to, the other Party under Article XXI of the GATT or under Article 2003 (National Security) of this Agreement, except to the extent necessary to:

The Parties intend no inconsistency between the provisions of this Chapter and the Agreement on an International Energy Program (IEP). In the event of any unavoidable inconsistency between the IEP and this Chapter, the provisions of the IEP shall prevail to the extent of that inconsistency.

For purposes of this Chapter:

consumed means transformed so as to qualify under the rules of origin set out in Chapter Three, or actually consumed;

restriction means any limitation, whether made effective through quotas, licenses, permits, minimum price requirements or any other means;

total export shipments means the total shipments from total supply to users located in the territory of the other Party; and

total supply means shipments to domestic users and foreign users from

1. The United States of America shall exempt Canada from any restriction on the enrichment of foreign uranium under section 161v of the Atomic Energy Act.

2. Canada shall exempt the United States of America from the Canadian Uranium Upgrading Policy as announced by the Minister of State for Mines on October 18, 1985.

3. The United States of America shall exempt Canada from the prohibition on the exportation of Alaskan oil under section 7(d) of the Export Administration Act of 1979, as amended, up to a maximum volume of 50 thousand barrels per day on an annual average basis, subject to the condition that such oil be transported to Canada from a suitable location within the lower 48 states.

1. Of the tests set out under subparagraph 6(2)(z) of the National Energy Board Part VI Regulations on the export of energy goods to the United States of America, Canada shall eliminate the "least cost alternative test", described in subparagraph 6(2)(z)(iii).

2. The United States of America shall cause the Bonneville Power Administration to modify its Intertie Access Policy so as to afford British Columbia Hydro treatment no less favourable than the most favourable treatment afforded to utilities located outside the Pacific Northwest.

3. No other policy of the Bonneville Power Administration or law authorizing such policy need be changed insofar as such law or policy concerns energy sales, transmission of energy and related business arrangements between the Bonneville Power Administration and British Columbia Hydro.

4. It is understood that the implementation of this Chapter includes the administration of any "surplus tests" on the export of any energy good to the other Party in a manner consistent with the provisions of Articles 902, 903 and 904.

5. The Parties fully expect that the Bonneville Power Adminis-tration and British Columbia Hydro will continue to negotiate mutually beneficial arrangements consistent with the objectives of this Agreement and separately to seek any additional authorities that may be needed.