PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on August 20, 1997, offers to purchase oil sands development leases contained in this public offering will not be accepted. AMOUNT OF PAYMENT (Canadian Funds Only) 1. The total dollar offer should be stated 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 any bid. FORM OF PAYMENT 1. ELECTRONIC FUNDS TRANSFER (EFT) - The Department prefers this method of payment (see IL97-14 for information on EFT). 2. Cheque. - Company or personal cheques are acceptable. Note - if this form of payment is used, each bid should be accompanied by an individual cheque attached to the back of the letter. 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 II. The type of bid and its format are identified in attachments to Information Letter 97-14. 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 August 20 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 9th 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, August 21, 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. JUNE 25, 1997 Brian Hudson, Manager EDMONTON, AB Mineral Agreements =============================================================================== 1997 AUGUST 20 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A Page 1 of 3 DEVELOPMENT LEASES D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ COLD LAKE OIL SANDS AREA ------ OS 822 256.00 4 5 053: 2 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 823 256.00 4 5 053: 4 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 824 256.00 4 5 053: 10 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 825 256.00 4 5 053: 16 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 826 256.00 4 8 055: 34 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 827 256.00 4 8 055: 35 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 828 256.00 4 4 056: 6 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 829 768.00 4 4 056: 18 4 5 056: 14;24 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 830 256.00 4 5 056: 22 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 831 256.00 4 8 056: 1 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 1997 AUGUST 20 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 2 of 3 D.LSE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 832 256.00 4 8 056: 2 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 833 256.00 4 8 056: 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 834 256.00 4 8 056: 10 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 835 256.00 4 8 056: 11 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 836 512.00 4 6 057: 27;34 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 EXCEPTING OIL SANDS IN THE GRAND RAPIDS FM ZD 3787 OS 837 512.00 4 6 057: 28;33 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 EXCEPTING OIL SANDS IN THE GRAND RAPIDS FM ZD 3787 OS 838M 128.00 4 2 059: 20N APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 839M 128.00 4 2 059: 29S APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 840M 128.00 4 2 059: 29N APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 1997 AUGUST 20 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 3 of 3 D.LSE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 841M 128.00 4 2 059: 30S APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 842M 128.00 4 2 059: 30N APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 843 512.00 4 1 061: 6;7 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 844 256.00 4 3 064: 14 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 23 6,528.00 ha total END ============================================================================== Page 1 of 1 1997 AUGUST 20 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 ZD 3787: Zone: 2620 GRAND RAPIDS FM INTERVAL: 442.00 - 540.60 METRES KEY WELL: 00/06-14-057-05W4/0 LOG TYPE: DUAL INDUCTION END =============================================================================== ADDENDA AND CONTACTS APPLICABLE TO THE 1997 AUGUST 20 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 3 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 830 4 5 056: 22NP IS/ARE WITHIN THE COLD LAKE INTEGRATED RESOURCE PLAN SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST ENVIRONMENTAL PROTECTION LAKELAND DISTRICT NORTHEAST BOREAL REGION BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 (403) 623-5263 OS 844 4 3 064: 14NP;SEP ONE OF IS/ARE WITHIN THE COLD LAKE INTEGRATED RESOURCE PLAN TWO SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST ENVIRONMENTAL PROTECTION LAKELAND DISTRICT NORTHEAST BOREAL REGION BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 (403) 623-5263 OS 844 4 3 064: 14NEP TWO OF IS/ARE WITHIN A PROVINCIAL RECREATION AREA TWO SURFACE ACCESS IS NOT PERMITTED FOR FURTHER INFORMATION PLEASE CONTACT: J. MALCOLM SMITH LAND REFERRALS CO-ORDINATOR ENVIRONMENTAL PROTECTION 8TH FL, STANDARD LIFE CENTRE ALBERTA PARKS SERVICES 10405 JASPER AVENUE N.W. MANAGEMENT SUPPORT DIVISION ALBERTA PARKS SERVICES EDMONTON AB T5J 3N4 (403)427-7009 ADDENDA AND CONTACTS APPLICABLE TO THE 1997 AUGUST 20 OIL SANDS PUBLIC OFFERING NOTICE Page 2 of 3 APPENDIX 3 (DEVELOPMENT LEASES) OS 838M THE LANDS IN THIS LEASE IS/ARE WITHIN A METIS SETTLEMENT. OS 839M OS 840M THE SUCCESSFUL BIDDER WILL HAVE TO: OS 841M OS 842M 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 THIS 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. ADDENDA AND CONTACTS APPLICABLE TO THE 1997 AUGUST 20 OIL SANDS PUBLIC OFFERING NOTICE Page 3 of 3 APPENDIX 3 (DEVELOPMENT LEASES) 10. CONDUCT OPERATIONS IN SUCH A MANNER AS TO MAINTAIN THE SOCIAL AND CULTURAL ORDER AS REQUIRED BY THE SETTLEMENT COUNCIL. 11. NEGOTIATE MUTUALLY ACCEPTABLE SURFACE RELATED COMPENSATION AT THE TIME OF NEGOTATION OF A DEVELOPMENT AGREEMENT. 12. ADHERE TO THE PROCEDURES CONTAINED IN THE CO-MANAGEMENT AGREEMENT (METIS SETTLEMENT 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 JULY 09, 1997. FOR THIS PURPOSE, PLEASE CONTACT: MR. ROBERT L'HIRONDELLE 3RD FLOOR MAYFIELD BUSINESS CENTRE METIS SETTLEMENTS GENERAL COUNCIL 10525 - 170 STREET EDMONTON AB T5P 4W2 (403) 427-1122 END #############################################################################