2007 OCTOBER 03 PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS ENERGY PUBLIC OFFERING CONTROL COUNTS FOR 2007.10.03 From To Total Area LEASES: L0466 L0480 15 45,242.7200 ha. PERMITS: P0000 P0000 0 0.0000 ha. -------------------------- 15 45,242.7200 ha. PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS BIDDING DEADLINE Offers to purchase oil sands leases and/or permits contained in this public offering will not be accepted after 12 noon on 2007 October 03. HOW TO SUBMIT BIDS 1. E-Bidding is mandatory for the submission of bids for all oil sands parcels offered. 2. Bid requests must be submitted using the Department of Energy's Electronic Transfer System (ETS). AMOUNT OF PAYMENT 1. Your total bid includes the bonus, rent at $3.50/ha or $50.00, whichever is the greater, and a fee of $625.00. 2. A bonus offer of less than $2.50/ha for a lease and $1.25/ha for a permit will not be considered. 3. The department reserves the right to reject any bid. FORM OF PAYMENT 1. Payments must be made by electronic funds transfer (EFT) only. 2. 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. POINTS TO REMEMBER 1. The bidder is responsible for having sufficient funds in their EFT bank account to cover all bids on the day of the sale. 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 parcel(s). The requestor will be charged a penalty of $625.00 plus GST for each unsold parcel. 3. The Government of Alberta's "First Nations Consultation Policy on Land Management and Resource Development" may apply to surface activities proposed as a result of acquiring Crown mineral rights. For information contact Aboriginal Relations Business Unit, Alberta Energy at (780)427-5110. ATTACHMENTS TO THIS PUBLIC OFFERING WHEN APPLICABLE APPENDIX 1 - Contains applicable Zone Designations (ZD(s)). APPENDIX 2 - Contains applicable Deeper Rights Reversion Zone Designations (DRRZDs). 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. Results of the public offering will be available 2007 October 03 in the afternoon on the Department's website at http://www.energy.gov.ab.ca. 2. All agreements are issued electronically in accordance with the Mines & Minerals Act and its regulations. 2007 August 08 Steve Tkalcic - Director Operations EDMONTON, Alberta Oil Sands Development LEASE SCHEDULE OIL SANDS LEASES 2007, OCTOBER 03 LEASE HECTARES LAND DESCRIPTION ----- -------- ---------------- --- ATHABASCA OS AREA --- L0466 2304 (CRG000145) 4-25-094: 15;22;23;25-27;34-36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0467 1978.72 (CRG000145) 4-25-094: 16;17E,WF;20E,WF;21;28;29E,WF;32E,WF;33 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0468 256 (CRG000114) 4-04-095: 8 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0469 256 (CRG000114) 4-04-095: 18 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0470 256 4-04-095: 20 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0471 768 4-04-095: 22;26;28 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0472 2048 (CRG000141) (CRG000142) 4-21-095: 5-8 4-22-095: 1;2;11;12 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0473 2048 (CRG000142) 4-22-095: 3-10 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0474 1536 (CRG000143) 4-23-095: 1-3;10-12 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0475 1536 (CRG000143) 4-23-095: 4-9 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0476 1536 (CRG000144) 4-24-095: 1;2;11-14 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0477 3072 (CRG000144) 4-24-095: 3-10;15-18 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- --- PEACE RIVER OS AREA --- L0478 9216 (MTS000701-34-M002) TRACT ONE 5-12-080: 19-36 5-13-080: 19;20S,NW;21S;22S;23S;24;25;29W;30;31;32N, SW;33N;34N;35N;36 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) TRACT TWO 5-13-080: 20NE;21N;22N;23N;26-28;29E;32SE;33S;34S;35S OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) EXCEPTING OIL SANDS IN THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0479 9216 (MTS000701-34-M002) TRACT ONE 5-12-081: 1-30;34-36 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) TRACT TWO 5-12-081: 31 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE TOP OF THE DEBOLT FM (DRRZD 42) TRACT THREE 5-12-081: 32;33 OIL SANDS BELOW THE BASE OF THE PEACE RIVER FM (DRRZD 40) TO THE TOP OF THE DEBOLT FM (DRRZD 42) ------------------------------------------------------------------------------------- L0480 9216 (MTS000701-34-M002) TRACT ONE 5-13-081: 1S,NE;2S;3S;4S;5S,NW;6;7;8W;12E;13N,SE;14N; 15N;16N;17N,SW;18-24;29-31 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) TRACT TWO 5-13-081: 1NW;2N;3N;4N;5NE;8E;9-11;12W;13SW;14S;15S; 16S;17SE OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) EXCEPTING OIL SANDS IN THE BLUESKY-BULLHEAD (DRRZD 21) TRACT THREE 5-13-081: 25-28;32-36 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE TOP OF THE DEBOLT FM (DRRZD 42) ------------------------------------------------------------------------------------- 15 45,242.72 HA TOTALS END APPENDIX 2 DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 2007, OCTOBER 03 PUBLIC OFFERING NOTICE 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: 21 ZONE: 3052 BLUESKY-BULLHEAD INTERVAL: 2,754.00 - 3,043.00 FEET KEY WELL: 00/10-32-081-01W6/0 LOG TYPE: DUAL INDUCTION SPHERICALLY FOCUSED ------------------------------------------------------------------------------------- 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: 42 ZONE: 6120 DEBOLT FM INTERVAL: 4,444.00 - 5,294.00 FEET KEY WELL: 00/10-11-080-03W6/0 LOG TYPE: DUAL INDUCTION-LATEROLOG ------------------------------------------------------------------------------------- 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 2007, OCTOBER 03 PUBLIC OFFERING NOTICE CRG000114 LEASE L0468 LEASE L0469 ALL LAND(S) IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: BILL BLACK LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV ATHABASCA OFFICE - RANGELAND DISTRICT-LANDS DIVISION 4901 50 ST ATHABASCA AB T9S 1E2 (780) 675-8168 ------------------------------------------------------------------------------------- CRG000141 LAND DESCRIPTION LEASE L0472 4-21-095: 5-8 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: THERESE YACYSHYN FOREST OFFICER DEPT. OF SUSTAINABLE RESOURCE DEV HIGH PRAIRIE OFFICE - LAND USE AREA -LANDS DIVISION PO BOX 149 HIGH PRAIRIE AB T0G 1E0 (780) 523-6524 ------------------------------------------------------------------------------------- CRG000142 LAND DESCRIPTION LEASE L0472 4-22-095: 1;2;11;12 LEASE L0473 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: THERESE YACYSHYN FOREST OFFICER DEPT. OF SUSTAINABLE RESOURCE DEV HIGH PRAIRIE OFFICE - LAND USE AREA -LANDS DIVISION PO BOX 149 HIGH PRAIRIE AB T0G 1E0 (780) 523-6524 ------------------------------------------------------------------------------------- CRG000143 LEASE L0474 LEASE L0475 ALL LAND(S) IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: THERESE YACYSHYN FOREST OFFICER DEPT. OF SUSTAINABLE RESOURCE DEV HIGH PRAIRIE OFFICE - LAND USE AREA -LANDS DIVISION PO BOX 149 HIGH PRAIRIE AB T0G 1E0 (780) 523-6524 ------------------------------------------------------------------------------------- CRG000144 LEASE L0476 LEASE L0477 ALL LAND(S) IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: THERESE YACYSHYN FOREST OFFICER DEPT. OF SUSTAINABLE RESOURCE DEV HIGH PRAIRIE OFFICE - LAND USE AREA -LANDS DIVISION PO BOX 149 HIGH PRAIRIE AB T0G 1E0 (780) 523-6524 ------------------------------------------------------------------------------------- CRG000145 LAND DESCRIPTION LEASE L0466 LEASE L0467 4-25-094: 16;17E,WF;20E,WF;21;28;29E,WF;32E,WF;33 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: THERESE YACYSHYN FOREST OFFICER DEPT. OF SUSTAINABLE RESOURCE DEV HIGH PRAIRIE OFFICE - LAND USE AREA -LANDS DIVISION PO BOX 149 HIGH PRAIRIE AB T0G 1E0 (780) 523-6524 ------------------------------------------------------------------------------------- MTS000701-34-M002 LEASE L0478 LEASE L0479 LEASE L0480 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 THE GIFT LAKE ENVIRONMENTAL GUIDELINES; APPLICABLE 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 TIMBER LOSS, CULTURAL LOSS, SURFACE ACCESS AND DAMAGES, INCLUDING INFRASTRUCTURE DAMAGE, 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, DARLENE CARIFELLE, POSTING COORDINATOR FOR THE METIS SETTLEMENTS GENERAL COUNCIL, AT (780) 822-4068. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DARLENE CARIFELLE METIS SETTLEMENTS GENERAL COUNCIL 10335 172 ST NW SUITE 200 EDMONTON AB T5S 1K9 (780) 822-4068 ------------------------------------------------------------------------------------- END