1. In order to avoid potential time conflict regarding the conduct of observation flights over the same State Party, each State Party having the right to conduct observation flights following the annual distribution of active quotas may notify all other States Parties, no later than 1 November of each year, of its plans to utilize all or part of its active quota during the following year. The notification shall indicate the number of observation flights that the notifying State Party plans to conduct over the territory of other States Parties during each quarter of that year.

2. In no case shall the total number of observation flights planned and notified in accordance with paragraph 1 of this Annex over the territory of any one State Party during a given quarter exceed 16. Except as provided for in Article VI, Section I, paragraph 3, no State Party shall be obliged to accept more than one observation flight at any time during the period specified in Article VI, Section I, paragraph 9 of the Treaty.

3. States Parties that have notified, in accordance with paragraph 1 of this Annex, their plans to utilize one or more active quotas for observation flights over the territory of the same State Party during a given quarter or quarters shall hold consultations, if necessary, to avoid any conflict in their planned observation flights. In the event that agreement on avoidance of conflict cannot be reached through consultation among the States Parties involved, the issue shall be resolved by the drawing of lots by such States Parties. The first of those consultations, regarding observation flights in the quarter beginning 1 January of the following year, shall begin promptly following receipt of the notification provided for in paragraph I of this Annex. Subsequent consultations among the States Parties involved shall be conducted between 1 February and 15 February for the quarter beginning 1 April; between 1 May and 15 May for the quarter beginning 1 July; and between 1 August and 15 August for the quarter beginning 1 October. The States Parties involved shall notify the resulting sequence of observation flights established in these consultations to all States Parties no later than 15 November, 15 February, 15 May and 15 August, respectively.

4. No later than seven days after the notification of the sequence of observation flights established pursuant to paragraph 3 of this Annex, each State Party shall notify all States Parties planning to conduct observation flights over its territory during that quarter of each flight for which it intends to exercise the right to provide its own observation aircraft.

5. Each State Party that has not provided a notification pursuant to paragraph 1 of this Annex or has not notified its plans to utilize all of its active quotas, or has not conducted an observation flight during the quarter for which it had notified such planned flight, shall have the right to utilize such remaining active quotas, provided that such observation flights have been accommodated within the existing agreement reached pursuant to paragraph 3 of this Annex.