2004 OCTOBER 13 12 noon, CALGARY PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS ENERGY PUBLIC OFFERING CONTROL COUNTS FOR 2004.10.13 From To Total Area LEASES: L0001 L0015 15 24,446.1200 ha. PERMITS: P0000 P0000 0 0.0000 ha. -------------------------- 15 24,446.1200 ha. PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on 2004 October 13,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 $625.00 per parcel. 3. The minimum acceptance 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 TYPE I AND BID TYPE II. The type of bid and its format are identified in attachments to Information Letter 99-12. 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: "2004 October 13, --- 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, 801-6 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. It can take up to midnight on the day following the sale to see your funds debited from your bank account for an accepted offer. 2. 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 penalty of $625.00 plus GST for each unsold parcel. 3. 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. ATTACHMENTS TO THIS PUBLIC OFFERING WHEN APPLICABLE 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 contracts 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 2004 October 14 at 9:00 a.m. at the two addresses shown under the section above entitled "HOW TO SUBMIT BIDS", and on the Internet. 2. All agreements are issued in accordance with the Mines & Minerals Act and its regulations. 2004 August 18 Steve Tkalcic - Director Operations EDMONTON, Alberta Oil Sands Development LEASE SCHEDULE OIL SANDS LEASES 2004, OCTOBER 13 LEASE HECTARES LAND DESCRIPTION ----- -------- ---------------- --- COLD LAKE OS AREA --- L0001 138.4 4-01-054: 2S,NP PORTION(S) LYING OUTSIDE MAKAOOS INDIAN RESERVE NO. 120. OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- --- ATHABASCA OS AREA --- L0002 768 (CRG000119) 4-09-079: 3-5 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0003 768 (CRG000119) 4-09-079: 8-10 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0004 512 (CRG000119) 4-09-079: 16;21 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0005 768 (CRG000119) (CRG000120) 4-09-079: 17;18 4-10-079: 13 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0006 768 (CRG000119) (CRG000120) 4-09-079: 19;20 4-10-079: 24 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0007 512 (CRG000119) 4-09-079: 30;31 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0008 1024 (CRG000120) 4-10-079: 14;15;22;23 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0009 512 (CRG000120) 4-10-079: 25;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0010 1024 (CRG000120) 4-10-079: 26;27;34;35 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0011 5120 (CRG000119) (CRG000120) 4-09-082: 14-23;26-31 4-10-082: 13;24;25;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- --- PEACE RIVER OS AREA --- L0012 1536 5-11-078: 19;20;29-32 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- L0013 1536 5-11-078: 21;22;27;28;33;34 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- L0014 1536 (WLT001701) (WLT001702) 5-11-078: 23-26;35;36 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- L0015 7923.72 (MTS000701-32-M002) (WLT001701) 5-11-079: 1-24;26S,NWP,NE;27S PORTION(S) LYING OUTSIDE UTIKOOMAK LAKE INDIAN RESERVE NO. 155. NWP PORTION(S) LYING OUTSIDE UTIKOOMAK INDIAN RESERVE NO. 155. NEP;28S,NP;29-32;33WP PORTION(S) LYING OUTSIDE UTIKOOMAK LAKE INDIAN RESERVE NO. 155. OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- 15 24,446.12 HA TOTALS END APPENDIX 2 DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 2004, OCTOBER 13 PUBLIC OFFERING NOTICE DRRZD: 4 ZONE: 2480 MANNVILLE GRP INTERVAL: 2,557.00 - 2,985.00 FEET KEY WELL: 00/06-16-041-08W4/0 LOG TYPE: INDUCTION ELECTRICAL ------------------------------------------------------------------------------------- DRRZD: 6 ZONE: 2140 VIKING FM INTERVAL: 2,600.00 - 2,680.00 FEET KEY WELL: 00/10-10-042-14W4/0 LOG TYPE: INDUCTION ELECTRICAL ------------------------------------------------------------------------------------- DRRZD: 40 ZONE: 2280 PEACE RIVER FM INTERVAL: 3,760.00 - 4,008.00 FEET KEY WELL: 00/07-09-076-08W6/0 LOG TYPE: BOREHOLE COMPENSATED SONIC ------------------------------------------------------------------------------------- DRRZD: 174 ZONE: 6420 PEKISKO FM INTERVAL: 6,468.00 - 6,654.00 FEET KEY WELL: 00/10-27-067-22W5/0 LOG TYPE: ELECTRICAL ------------------------------------------------------------------------------------- DRRZD: 258 ZONE: 7040 WOODBEND GRP INTERVAL: 1,284.00 - 2,251.00 FEET KEY WELL: 00/10-29-077-18W4/0 LOG TYPE: SONIC ------------------------------------------------------------------------------------- END APPENDIX 3 ADDENDA AND CONTACTS APPLICABLE TO THE 2004, OCTOBER 13 PUBLIC OFFERING NOTICE CRG000119 LAND DESCRIPTION LEASE L0002 4-09-079: 3N,SEP,SW;4N,SEP,SW;5N,SE,SWP LEASE L0003 LEASE L0004 LEASE L0005 4-09-079: 17;18 LEASE L0006 4-09-079: 19;20 LEASE L0007 LEASE L0011 4-09-082: 14-23;26-31 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- CRG000120 LAND DESCRIPTION LEASE L0005 4-10-079: 13N,SE,SWP LEASE L0006 4-10-079: 24S,NP LEASE L0008 4-10-079: 14EP;23EP LEASE L0009 4-10-079: 25SP,NWP,NE;36 LEASE L0010 4-10-079: 26NP;27NEP;34SP,NWP,NE;35 LEASE L0011 4-10-082: 13;24;25;36 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- MTS000701-32-M002 LAND DESCRIPTION LEASE L0015 5-11-079: 1-23;24NP,SEP,SW;26NP,SEP,SW;27S,NP;28S,NP; 29;30;31NP,SE,SWP;32S,NWP,NE;33WP 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 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 OF THE 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 THE METIS SETTLEMENTS GENERAL COUNCIL. FURTHER INFORMATION CAN BE OBTAINED BY CONTACTING SUSAN LADOUCEUR, POSTING COORDINATOR FOR THE METIS SETTLEMENTS GENERAL COUNCIL AT (780) 822-4096. POTENTIAL BIDDERS SHOULD NOTE THAT FURTHER INFORMATION AND DETAILS REGARDING THE ABOVE TERMS AND CONDITIONS WILL BE AVAILABLE ON SEP 01, 2004. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: SUSAN LADOUCEUR METIS SETTLEMENTS GENERAL COUNCIL 10335 172 ST NW SUITE 200 EDMONTON AB T5S 1K9 (780) 822-4096 ------------------------------------------------------------------------------------- WLT001701 LAND DESCRIPTION LEASE L0014 5-11-078: 25EP;36EP LEASE L0015 5-11-079: 24NP,SEP;26NP,SEP IS/ARE WITHIN A "WETLANDS FOR TOMORROW" PROJECT. SURFACE ACCESS IS NOT PERMITTED FOR FURTHER INFORMATION, PLEASE CONTACT: MARK HECKBERT WILDLIFE BIOLOGIST DEPT. OF SUSTAINABLE RESOURCE DEV HIGH PRAIRIE OFFICE - FISH AND WILDLIFE PROVINCIAL BUILDING 5226 53 AVE PO BOX 1500 HIGH PRAIRIE AB T0G 1E0 (780) 523-6520 ------------------------------------------------------------------------------------- WLT001702 LAND DESCRIPTION LEASE L0014 5-11-078: 23;24;25EP,W;26;35;36EP,W IS/ARE WITHIN A "WETLANDS FOR TOMORROW" PROJECT. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: MARK HECKBERT WILDLIFE BIOLOGIST DEPT. OF SUSTAINABLE RESOURCE DEV HIGH PRAIRIE OFFICE - FISH AND WILDLIFE PROVINCIAL BUILDING 5226 53 AVE PO BOX 1500 HIGH PRAIRIE AB T0G 1E0 (780) 523-6520 ------------------------------------------------------------------------------------- END