PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.RESDEV.GOV.AB.CA:) DEADLINE After 12:00 noon on 2000 November 01, offers to purchase oil sands leases and/or permits 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 annual rental is $3.50 per hectare or $50.00 whichever is the greater. The issuance fee is $500 per parcel. 3. The minimum acceptable offer is $2.50 per hectare (leases) and $1.25 per hectare (permits). 4. The Department reserves the right to reject any bid. FORM OF PAYMENT 1. ELECTRONIC FUNDS TRANSFER (EFT). 2. Payment by cheque will be accepted if it meets the criteria for exception mentioned in Information Letter 99-3. 3. Companies and individuals that do not have a GST registration number are liable for payment of the Goods and Services Tax on various charges. All registrants must ensure that their GST number is provided in writing to Financial Services Branch @ Fax No. (780) 422-4281. HOW TO SUBMIT BIDS 1. The types of acceptable bids are BID TYPE1 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: "2000 November 01, --- OIL SANDS LEASE BIDS', for 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 address: - 3rd Floor Monenco Place, 801 - 6th Avenue SW, T2P 3W2 or the Edmonton address - 7th Floor, Petroleum Plaza North Tower, 9945 - 108 Street, T5K 2G6. BIDS ARE ACCEPTED UNTIL 12:00 NOON ON THE PUBLIC OFFERING DATE. NO EXCEPTIONS. POINTS TO REMEMBER 1. Requestors of parcel(s) posted in a public offering are expected to bid on the posting(s). If the parcel(s) is not sold, the requestor will be charged a fee of $500 plus GST for each unsold parcel. 2. Effective January 01, 2000, all Oil Sands Agreements acquired include Solution Gas. Please refer to information letter 99-38 for the definition of Solution Gas and any other relevant information. · INDICATES ATTACHMENTS TO THIS PUBLIC OFFERING APPENDIX 1 - Contains applicable Zone Designations (zd=s). · 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 offers will be published on the first available publishing date after the Metis negotiations are complete 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 06, 2000 Linda White Edmonton, AB Business Unit Leader Oil Sands Development 2000 NOVEMBER 01 SCHEDULE A OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 LEASES LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------COLD LAKE OIL SANDS AREA ------ OS 001M 128.00 4 2 057: 29N APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 002M 128.00 4 2 057: 31S APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 003M 128.00 4 2 057: 32S APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 004M 128.00 4 2 057: 33S APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 4 512.00 ha total Page 1 of 1 2000 NOVEMBER 01 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 ADDENDA AND CONTACTS APPLICABLE TO THE 2000 NOVEMBER 01 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 APPENDIX 3 LEASE ( LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 001M THE LANDS IN THIS LEASE IS/ARE WITHIN A METIS SETTLEMENT. TO OS 004M THE SUCCESSFUL BIDDER MUST ENTER INTO A DEVELOPMENT AGREEMENT WITH THE METIS INCL 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 OPERATION 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 AND INFORMATION LETTER 92-19 8 THE SUCCESSFUL BIDDER WILL BE REQUIRED TO SIGN AN AGREEMENT IN THE FORM THE A MASTER DEVELOPMENT AGREEMENT, THE TEMPLATE OF WHICH IS AVAILABLE FROM THE GENERAL COUNCIL UPON REQUEST. PLEASE NOTE: UNDER THE MASTER DEVELOPMENT AGREEMENT, THE SUCCESSFUL BIDDER WILL BE A JOINT VENTURE PARTNER WITH RESCO OIL & GAS LTD., A COMPANY OWNED BY THE SETTLEMENTS AND REPRESENTING THE GENERAL COUNCIL'S INTEREST. ADDITIONAL INFORMATION CAN BE OBTAINED FROM THAT COMPANY. FOR THIS PURPOSE, PLEASE CONTACT: LORI DUROCHER POSTING COORDINATOR METIS SETTLEMENT GENERAL COUNCIL # 201 - 18335 - 105 AVENUE EDMONTON AB T5S 2K9 (780) 483-7370 POTENTIAL BIDDERS SHOULD NOTE THAT FURTHER INFORMATION AND DETAILS REGARDING THE ABOVE TERMS AND CONDITIONS WILL BE AVAILABLE ON NOVEMBER 15, 2000.