In December 2013, the Attorney General of Canada filed a Request for Direction regarding the implementation of the 2006 Indian Residential Schools Settlement Agreement (IRSSA) by the Corporation of Catholic Entities Party to the Indian Residential School Settlement (CCEPIRSS). Specifically, Canada sought clarity on CCEPIRSS’ deduction of its legal fees from its financial payments under IRSSA. During the resulting negotiations between CCEPIRSS and Canada, CCEPIRSS came to believe that it had reached a new agreement with Canada. Canada disagreed, and CCEPIRSS filed its own Request for Direction (RFD #2). CCEPIRSS asked the Court for guidance on its contention that Canada and CCEPIRSS had reached a settlement during negotiations. This is Canada’s response to RFD #2. It was submitted by William F. Pentney, Deputy Attorney General of Canada, per Wayne Schafer, Q.C., counsel for the Attorney General of Canada. In its response, Canada denies that a settlement agreement had been reached. The response includes an itemized and dated summary of the key correspondence regarding the potential new settlement between Canada and CCEPIRSS.