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 .