12. (20) The parties agree that the area east of the Babbage River extending to the jurisdictional boundary between the Yukon Territory and the Northwest Territories, but not including the adjacent nearshore and offshore waters, shall be designated as an area in which controlled development may take place, subject to the provisions of this Agreement and to laws of general application.

12. (21) Any development activity proposed for the area referred to in subsection (20) shall be subject to the screening and review process set out in section 11.

12. (22) Any development activity proposed for the adjacent nearshore and offshore waters shall be subject to the normal government process and the wildlife compensation provisions of section 13.

12. (23) The appropriate review board shall take into account the following criteria in its consideration of any development proposal:

(a) analysis of the significance of the part or parts of the Yukon North Slope proposed for development use from the standpoint of conservation and harvesting interests;

(b) evaluation of practical alternative locations and of the relative commercial and economic merits of and environmental impact on such locations compared to the part or parts of the area proposed for utilisation in the application;

(c) evaluation of the environmental and social impacts of the proposed development;

(d) weighing of the interests of users, conservationists and harvesters in the Yukon North Slope against public convenience and necessity for development;

(e) evaluation of the ability of the applicant to demonstrate that he has, or will acquire, the proven capability to carry out the project in accordance, with established standards of performance, safeguard and other requirements and to carry out the necessary environmental mitigation and restoration; and

(f) requirements for effective machinery to ensure that the development proceeds in accordance with any established terms and conditions.