1996 NOVEMBER 13 12 noon, CALGARY PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS PUBLIC OFFERING TOTALS FOR 96.11.13 Parcels From To Total Area DEVELOPMENT OS 627 LEASE OS 6'29 3 4,608.00 ha PERMIT: OS OS 0 0.00 ha TOTAL: 3 4,608.00 ha A ia ENERGY PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS DEADUNE After 12:00 noon on November 13, 1996, offers to purchase oil sands development leases contained in this public offering will not be accepted. AMOUNT OF PAYMENT (Canadian Funds Only) 1 . State only the one total dollar amount submitted in your bid letter. A breakdown of the Bonus, Fee and Rent is not required. 2. The rent is $3.50 per hectare and the fee is $450 per parcel. 3. The minimum acceptable price is $2.50 per hectare (development leases) and $1.25 per hectare (permit). Offers lower than this will be rejected. 4. The Department reserves the right to reject a bid. FORM OF PAYMENT 1 . If you are using pre-authorized cheques at present, you are encouraged to change your method of payment to the Electronic Bank Debit System (see IL 95-16). 2. Company and personal cheques are also accepted, but personal cheques must be certified. Please do not submit cash or bank drafts. 3. All cheques should be made payable to: PROVINCIAL TREASURER HOW TO SUBMIT BIDS 1 . The types of acceptable bids are: BID TYPE I and BID TYPE 11. The type of bid and its format are identified in attachments to Information Letter @21. Bids may be rejected if they do not comply with these standards. 2. One envelope may contain more than one bid as long as they are for the same agreement type. 3. Bid(s) should be enclosed in a sealed envelope and clearly marked as follows: 'l 996 October 3@IL SANDS DEVELOPMENT LEASE BIDS' for Development Leases. 4. Bids should be deposited in the box marked 'OIL SANDS BIDS', or handed or mailed to any person acting for the manager at efther the Caigary or Edmonton address: Main Floor, @nnia Building 1 1 th Floor, South Petroleum Plaza 703-6 Ave. SW 99 1 5-1 08 Street Caigary, Alberta T2P OT9 Edmonton, Alberta T5K 2G8 BIDS ARE ACCEPTED UNTIL 12:00 NOON ON THE PUBUC OFFERING DATE. NO EXCEP7]ONS. POINTS TO REMEMBER 1 . Those who request a specific parcel(s) to be posted in a public offering are expected to bid on the posbng(s). If the parcel(s) is not sold, the person or company that requested the posing may be charged a fee of $450 for each unsold parcel. 2. The full name of the person(s) or corporadon(s) submitting a bid and their official address for service must be identified. 3. The ma)dmum undimed interest is four decimal places. Anything greater than this YAII be rounded to the fourth decimal place. ATTACHMENTS TO THIS PUBUC OFFERING APPENDIX 2 - Contains applicable Deeper Rights Reversion Zone Designabons (Drrzd's). APPENDIX 3 - Contains applicable addenda relating to surface access (See iL 89-1 5). RESULTS OF THIS PUBLIC OFFERING 1 . Accepted bids YAII be published on the first available publishing date after the Mets negotabons are complete at the two addresses shown under the section entftied 'HOW TO SUBMIT BIDS.' 2. All agreements are issued in accordance with the Mines & Minerals Act and its regulations. L. 1~ September 18,1996 Brian Hudson, Manager EDMONTON, AB Mineral Agreements 1996 NOVEMBER 13 OIL SANDS PUBLIC OFFERING NOTICE DEVELOPMENT LEASES SCHEDULEA D.LSE PARCELS HECTARES M RG TWP LAND DESCRIPTION - COLD LAKE OIL SANDS AREA OS 627M 2,048.00 4 02 057 4-9;16,17 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 628M 2,048.00 4 02 057 20;21;27-29;33-35 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 629M 512.00 4 02 057 31;32 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 3 4,608.00 ha total END DRRZD4 1996 NOVEMBER 13 APPUCABLE ZONE DESIGNATIONS Zone: 2480 MANNVILLE GRP INTERVAL: 2557.00 - 2985.00 FEET KEY WELL: 00106-16-041-08W4/0 LOG TYPE: INDUCTION ELECTRICAL APPENDIX 2 END PAGE 1 OF 2 ADDENDA AND CONTACTS APPLICABLE TO THE 1996 NOVEMBER 13 OIL SANDS PUBLIC OFFERING SOURCE APPENDIX 3 (DEVELOPMENT LEASES) OS 627M THE LANDS IN THIS LEASE ISIARE WITHIN A METIS SETTLEMENT. TO OS 629M THE SUCCESSFUL BIDDER WILL HAVE TO: 1 EMPLOY, TRAIN AND PROVIDE BUSINESS OPPORTUNITIES TO SETTLEMENT MEMBERS, TO AN EXTENT THAT IS PRACTICAL, DURING THE CONSTRUCTION, OPERATION, RECLAMATION AND ABANDONMENT PHASES OF HIS OPERATIONS ON SETTLEMENT LANDS. 2 ENSURE THE PROTECTION OF THE ENVIRONMENT IN SETTLEMENT LANDS IN ACCORDANCE WITH PROVINCIAL STANDARDS. 3 PAY TO METIS SETTLEMENTS GENERAL COUNCIL A MUTUALLY ACCEPTABLE OVERRIDING ROYALTY AT A RATE TO BE NEGOTIATED AT THE TIME THAT THE SUCCESSFUL BIDDER ENTERS INTO A DEVELOPMENT AGREEMENT PURSUANT TO ARTICLE 5 OF THE CO-MANAGEMENT AGREEMENT. 4 ALLOW THE METIS SETTLEMENTS GENERAL COUNCIL AN OPPORTUNITY TO NEGOTIATE A PARTICIPATION OPTION OF 25% AS PROVIDED FOR IN THE CO-MANAGEMENT AGREEMENT. 5 SUBJECT TO ITEM 4, ENTER INTO A CONFIDENTIALITY AGREEMENT WITH THE AFFECTED SETTLEMENT RESPECTING THE SHARING OF WELL DATA 6 UTILIZE ROAD ACCESS AS DIRECTED BY THE SETTLEMENT COUNCIL AND CONSTRUCT ANY NEW ROADS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF NEGOTIATED SURFACE LEASES. 7 WHERE APPLICABLE, CONFORM WITH SET-BACKS GREATER THAN THE STANDARD RELATIVE TO WELL SITES, WHERE SUCH WELL SITES ARE LOCATED WITHIN AREAS DESIGNATED BY THE SETTLEMENT COUNCIL AS RESIDENTIAL DEVELOPMENT. 8 REIMBURSE THE SETTLEMENT FOR ANY AND ALL LOSS RESULTING FROM THE OPERATOR'S ACTIVITIES. TIMBER LOSS WILL BE IDENTIFIED BY A LICENSED TIMBER SCALER AND ACCEPTED BY THE SETTLEMENT AND THE TIMBER SCALER WILL BE SELECTED AND AGREED TO BETWEEN THE PARTIES. 9 ADHERE TO RESTRICTIONS ON SURFACE ACCESS AND OPERATIONS WITHIN AREAS DESIGNATED BY THE SETTLEMENT AS RESERVED FOR HUNTING, FISHING, TRAPPING, GATHERING, RANCHING AND GRAVEL OPERATIONS. 1 0 CONDUCT OPERATIONS IN SUCH A MANNER AS TO MAINTAIN THE SOCIAL AND CULTURAL ORDER AS REQUIRED BY THE SETTLEMENT COUNCIL. 1 1 NEGOTIATE MUTUALLY ACCEPTABLE SURFACE RELATED COMPENSATION AT THE TIME OF NEGOTIATION OF A DEVELOPMENT AGREEMENT. PAGE 2 OF 2 ADDENDA AND CONTACTS APPLICABLE TO THE 1996 NOVEMBER 13 OIL SANDS PUBLIC OFFERING SOURCE APPENDIX 3 12 ADHERE TO THE PROCEDURES CONTAINED IN THE CO-MANAGEMENT AGREEMENT (METIS SETTLEMENTS ACT) AND INFORMATION LETTER 92-1 9. POTENTIAL BIDDERS SHOULD NOTE THAT FURTHER INFORMATION AND DETAJLS REGARDING THE ABOVE TERMS AND CONDITIONS WILL BE AVAILABLE ON OCTOBER 2,1996. FOR THIS PURPOSE, PLEASE CONTACT: 3RD FLOOR MAYFIELD BUSINESS CENTRE 10525 - 170 STREET EDMONTON AB T5P T5P 4W2 MR. ROBERT L'HIRONDELLE METIS SETTLEMENT GENERAL COUNCIL (403) 427-1122 @D