PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on September 17, 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 IL 97-14 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 September 17 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, September 18, 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. JULY 23, 1997 Brian Hudson, Manager EDMONTON, AB Mineral Agreements ============================================================================= 1997 SEPTEMBER 17 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A Page 1 of 1 DEVELOPMENT LEASES D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ COLD LAKE OIL SANDS AREA ------ OS 864M 256.00 4 2 057: 8 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 865M 128.00 4 2 057: 17N APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 866M 256.00 4 2 057: 20 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 867M 128.00 4 2 057: 29S APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 868 256.00 4 7 057: 8 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 869 128.00 4 7 057: 16E OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 870 256.00 4 7 057: 32 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 871 256.00 4 7 058: 1 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 8 1,664.00 ha Total END ============================================================================= Page 1 of 1 1997 SEPTEMBER 17 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 END ============================================================================ ADDENDA AND CONTACTS APPLICABLE TO THE 1997 SEPTEMBER 17 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 APPENDIX 3 (DEVELOPMENT LEASES) OS 864M THE LANDS IN THIS LEASE IS/ARE WITHIN A METIS SETTLEMENT. 0S 865M OS 866M THE SUCCESSFUL BIDDER MUST ENTER INTO A DEVELOPMENT AGREEMENT OS 867M 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 AUGUST 6, 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