PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on November 12, 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 November 12 ---OIL SANDS DEVELOPMENT LEASE BIDS" for Development Leases. "1997 November 12 ---PERMIT BIDS" for Permits. 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 also terms and conditions for acquisition of parcel(s) within Metis Settlements (See IL 92-19). RESULTS OF THIS PUBLIC OFFERING 1. Accepted bids will be published on Thursday, November 13, 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. SEPTEMBER 17, 1997 Brian Hudson, Manager EDMONTON, AB Mineral Agreements ----------------------------------------------------------------------------- 1997 NOVEMBER 12 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 887 235.40 4 3 055: 8N,SE,SWP PORTION(S) LYING TO THE NORTH AND EAST OF THE RIGHT BANK OF THE SASKATCHEWAN RIVER AS SHOWN ON A TOWNSHIP PLAN APPROVED AND CONFIRMED BY THE SURVEYOR GENERAL AT OTTAWA ON 1906/06/29 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 888 256.00 4 3 055: 16 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 889M 512.00 4 1 059: 2,3 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 3 1003.40 END -------------------------------------------------------------------------- 1997 November 12 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE B Page 1 of 1 PERMITS PERMIT PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ ATHABASCA OIL SANDS AREA ------ 062 2816 4 6 094: 2-4;9-11;14-16;22;23 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 1 2816 Totals END --------------------------------------------------------------------------- 1997 NOVEMBER 12 Page 1 of 1 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 KEY WELL: 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 NOVEMBER 12 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 2 APPENDIX 3 (DEVELOPMENT LEASES) OS 889M THE LANDS IN THIS LEASE IS/ARE WITHIN A METIS SETTLEMENT. 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 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 THE AREAS DESIGNATED BY THE SETTLEMENT COUNCIL AS RESIDENTIAL DEVELOPMENT. 8. REIMBURSE THE SETTLEMENT FOR ANY AND ALL LOSS RESULTING FROM THE OPERATOR'S ACTIVITIES.T1MBER 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. 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 NEGOTIATION OF A DEVELOPMENT AGREEMENT. 12. 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 OCTOBER 1, 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 ADDENDA AND CONTACTS APPLICABLE TO THE 1997 NOVEMBER 12 OIL SANDS PUBLIC OFFERING NOTICE Page 2 of 2 APPENDIX 3 ( PERMIT) OS 062 THE LANDS IN THIS LEASE IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAN SLAGHT REGIONAL LAND MANAGEMENT OFFICER ENVIRONMENTAL PROTECTION PROVINCIAL BUILDING NORTHEAST BOREAL REGION BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 (403) 623-5240 END #########################################################################