PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS DEADLINE After 12:00 noon on February 05, 1997, 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 (permits). 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 94-21. 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: '1997 February 05 -OIL 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 either the Calgary or Edmonton address: 3rd. Floor, Monenco Place 2nd Floor, North Petroleum Plaza 801-6 Ave. SW 9945-108 Street Calgary, ALBERTA T2P 3W2 Edmonton, Alberta T5K 2G8 BIDS ARE ACCEPTED UNTIL 12:00 NOON ON THE PUBLIC OFFERING DATE. NO EXCEPTIONS. POINTS TO REMEMBER 1 . Those who request a specific parcel(s) to be posted in a public offering are expected to bid on the posting(s). If the parcel(s) is not sold, the person or company that requested the posting may be charged a fee of $450 for each unsold parcel. 2. The full name of the person(s) or corporation(s) submitting a bid and their official address for service must be identified. 3. The maximum undivided interest is seven decimal places. Anything greater than this will be rounded to the seventh decimal place. ATTACHMENTS TO THIS PUBLIC OFFERING APPENDIX 2 - Contains applicable Deeper Rights Reversion Zone Designations (Drrzd's). APPENDIX 3 - Contains applicable addenda and contacts. RESULTS OF THIS PUBLIC OFFERING 1 . Accepted bids will be published on Thursday, February 06, 1997 at 10:00 a.m. at the two addresses shown under the section entitled "HOW TO SUBMIT BIDS." 2. All agreements are issued in accordance with the Mines & Minerals Act and its regulations. December 11, 1996 Brian Hudson, Manager EDMONTON, AB Mineral Agreements 1997 FEBRUARY 05 SCHEDULE A OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 DEVELOPMENT LEASES D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION COLD LAKE OIL SANDS AREA OS 688 256.00 4 5 053: 6 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 689 256.00 4 5 053: 18 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 690 256.00 4 6 053: 16 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 691 M 512.00 4 2 058: 16;17 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 692M 1,024.00 4 2 058: 18-21 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 693 256.00 4 3 058: 13 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 - ATHABASCA OIL SANDS AREA OS 694 512.00 4 23 076: 26;27 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD6 TO THE BASE OF THE WOODBEND DRRZD 258 OS 695 512.00 4 23 076: 33 4 23 077: 4 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD6 TO THE BASE OF THE WOODBEND DRRZD 258 OS 696 512.00 4 23 076: 34 4 23 077: 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD6 TO THE BASE OF THE WOODBEND DRRZD 258 9 4,096.00 ha END Page 1 of 1 1997 FEBRUARY 05 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPENDIX 2 DRRZD:4 Zone: 2480 MANNVILLE GROUP INTERVAL: 2 557.00 - 2985.00 FEET KEY WELL: 00/06-16-041-08W4/0 LOG TYPE: INDUCTION ELECTRICAL DRRZD:6 Zone: 2140 VIKING FM INTERVAL: 2 600.0 - 2 680.0 FEET .KEYWELL: 00/10-10-042-14W4/0 LOG TYPE: INDUCTION ELECTRICAL DRRZD:258 Zone: 7040 WOODBEND GRP INTERVAL: 1 284.0 - 2 251.0 FEET KEY WELL: 00/10-29-077-18W4/0 LOG TYPE: SONIC END ADDENDA AND CONTACTS APPLICABLE TO THE 1997 FEBRUARY 05 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 2 APPENDIX 3 (DEVELOPMENT LEASES) D.LEASE PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 691 m 4 2 058: 16EP ONE OF TWO CONTAIN(S) PRIVATELY-OWNED LAND WITH RESTRICTIVE TOPOGRAPHIC AND/0R GROUND CONDITIONS ASSOCIATED WITH A RESERVOIR OR LAKE. PRIOR TO ANY SURFACE DISTURBANCE AND/OR SITE DEVELOPMENT, CONTACT THE RECLAMATION INSPECTOR SHOWN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: SENIOR RECLAMATION INSPECTOR RW. ONCIUL 3RD FLOOR, OXBRIDGE PLACE ENVIRONMENTAL PROTECTION 9820 -106 STREET N.W. LAND RECLAMATION DIVISION EDMONTON AB T5K 2J6 ENVIRONMENTAL REGULATORY SERVICE (403) 427-6212 OS 692M 4 2 058: 21 E ONE OF TWO CONTAIN(S) PRIVATELY-OWNED LAND WITH RESTRICTIVE TOPOGRAPHIC AND/OR GROUND CONDITIONS ASSOCIATED WITH A RESERVOIR OR LAKE. PRIOR TO ANY SURFACE DISTURBANCE ANDIOR SITE DEVELOPMENT, CONTACT THE RECLAMATION INSPECTOR SHOWN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: RECLAMATION INSPECTOR TERRY LESKIW 3RD FLOOR, PROVINCIAL BUILDING ENVIRONMENTAL PROTECTION BOX 308, 5025-49 AVENUE LAND RECLAMATION DIVISION ST. PAUL AB TOA 3A0 ENVIRONMENTAL REGULATORY SERVICE (403)427-6212 TWO OF TWO ADDENDA AND CONTACTS APPLICABLE TO THE 1997 FEBRUARY 05 OIL SANDS PUBLIC OFFERING NOTICE Page 2 of 2 APPENDIX 3 (DEVELOPMENT LEASES) OS 691M OS 692M THE LANDS IN THIS LEASE IS/ARE WITHIN A METIS SETTLEMENT. THE SUCCESSFUL BIDDER MUST ENTER INTO A DEVELOPMENT AGREEMENT WITH THE METIS SETTLEMENTS GENERAL COUNCIL AND THE AFFECTED SETTLEMENT THAT INCLUDES NEGOTIATED COMMITMENTS TO: 1. ENSURE THE PROTECTION OF THE ENVIRONMENT IN THE SETTLEMENT AREA IN ACCORDANCE WITH PROVINCIAL STANDARDS AND SETTLEMENT BYLAWS. 2. CONDUCT OPERATIONS IN A WAY THAT MAINTAINS THE SOCIAL AND CULTURAL ORDER OF THE SETTLEMENT AREA AND CONFORMS WITH THE DEVELOPMENT PLANS AND LAND USE RESTRICTIONS ESTABLISHED BY THE SETTLEMENT COUNCIL. 3 EMPLOY, TRAIN, AND PROVIDE BUSINESS OPPORTUNITIES TO SETTLEMENT MEMBERS, TO AN EXTENT THAT IS PRACTICAL, DURING THE CONSTRUCTION, OPERATION, RECLAMATION AND ABANDONMENT PHASES OF ITS OPERATIONS IN THE SETTLEMENT AREA. 4. PAY APPLICABLE SETTLEMENT LICENCE FEES AND TAXES. 5 PROVIDE FAIR AND REASONABLE COMPENSATION FOR SURFACE ACCESS AND DAMAGES, INCLUDING INFRASTRUCTURE DAMAGE, TIMBER LOSS, AND OTHER SPECIAL DAMAGES. 6. RECOGNIZE THE GENERAL COUNCIL'S RIGHT TO AN OVERRIDING ROYALTY AND 25% PARTICIPATION OPTION AS PROVIDED FOR IN THE CO-MANAGEMENT AGREEMENT (SCHEDULE 3 OF THE METIS SETTLEMENTS ACT). 7. ADHERE TO THE PROCEDURES CONTAINED IN THE CO-MANAGEMENT AGREEMENT (METIS SETTLEMENTS ACT) AND INFORMATION LETTER 92-19. POTENTIAL BIDDERS SHOULD NOTE THAT FURTHER INFORMATION AND DETAILS REGARDING THE ABOVE TERMS AND CONDITIONS WILL BE AVAILABLE ON JANUARY 8,1997. FOR THIS PURPOSE, PLEASE CONTACT: MR. ROBERT L'HIRONDELLE 3RD FLOOR MAYFIELD BUSINESS CENTRE METIS SETTLEMENT GENERAL COUNCIL 10525 - 170 STREET EDMONTON AB T5P 4W2 (403) 427-1122 END