2013 SEPTEMBER 25 PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS PUBLIC OFFERING CONTROL COUNTS FOR 2013.09.25 From To Total Area LEASES: L0161 L0177 17 25,280.0000 ha. PERMITS: P0178 P0178 1 64.0000 ha. -------------------------- 18 25,344.0000 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 2013 September 25. 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. Addenda do not cover every access situation. Before bidding ensure that the public land manager is contacted for specific access constraints and for standard operating guidelines for that region. On privately owned lands, access approval is a confidential matter between the landowner and the mineral lessee. 4. 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 SREM Aboriginal Affairs Branch, Alberta Energy and Environment and Sustainable Resource Development at 780-644-8734. 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 2013 September 25 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. 2013 July 31 Jason Kwong - Manager(Acting) EDMONTON, Alberta Oil Sands Tenure - 780-422-5568 LEASE SCHEDULE OIL SANDS LEASES 2013, SEPTEMBER 25 LEASE HECTARES LAND DESCRIPTION ----- -------- ---------------- --- COLD LAKE OS AREA --- L0161 2304 (MTS000101-36-M03 ) 4-01-057: 13;14;23-26;35;36 4-01-058: 1 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0162 3072 (MTS000101-36-M03 ) 4-01-057: 15;22;27-29;32-34 4-01-058: 4-6 4-02-058: 1 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0163 1536 (MTS000101-36-M03 ) 4-02-057: 34;35 4-02-058: 2-4;10 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0164 2304 (MTS000101-36-M03 ) 4-01-058: 2;3;9-11;14;15;22;23 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0165 2304 (MTS000101-36-M03 ) 4-01-058: 7;8;17;18 4-02-058: 11-14;24 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0166 1536 (MTC000101) (MTS000101-36-M03 ) 4-02-058: 15;22;23;25-27 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0167 2304 (MTS000101-36-M03 ) 4-02-058: 28-36 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0168 3072 (MTS000201-36-M03 ) 4-01-059: 15-17;20-22;26-29;34;35 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0169 128 (MTS000201-36-M03 ) 4-02-059: 20S OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0170 512 4-05-059: 4;9 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0171 512 (IRS000602) 4-05-059: 19;20 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0172 3072 (MTS000201-36-M03 ) 4-01-060: 10;11;14-17;23-26;35;36 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0173 704 4-11-060: 24;25;26S,NE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0174 640 4-11-061: 8;17;20S OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0175 256 4-11-061: 28 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0176 768 4-11-062: 20-22 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- --- ATHABASCA OS AREA --- L0177 256 4-25-076: 5 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- 17 25,280.00 HA TOTALS END PERMIT SCHEDULE OIL SANDS PERMITS 2013, SEPTEMBER 25 PERMIT HECTARES LAND DESCRIPTION ------ -------- ---------------- --- COLD LAKE OS AREA --- P0178 64 4-02-060: 7NE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- 1 64.00 HA TOTALS END APPENDIX 2 DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 2013, SEPTEMBER 25 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: 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 2013, SEPTEMBER 25 PUBLIC OFFERING NOTICE IRS000602 LAND DESCRIPTION LEASE L0171 4-05-059: 19EP;20NP,SWP IS/ARE WITHIN THE COLD LAKE SUBREGIONAL INTEGRATED RESOURCE PLAN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND MANAGEMENT SPECIALIST LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE DEPT. OF SUSTAINABLE RESOURCE DEV PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- MTC000101 LAND DESCRIPTION LEASE L0166 4-02-058: 22;25 IS/ARE WITHIN A METIS SETTLEMENT. THE METIS GENERAL TERMS AND CONDITIONS DO NOT APPLY. SURFACE ACCESS IS NOT PERMITTED FOR FURTHER INFORMATION, PLEASE CONTACT: GRACE MATIAS DIRECTOR ALBERTA DEPARTMENT OF ENERGY 9945 108 ST EDMONTON AB T5K 2G6 (780) 422-9395 ------------------------------------------------------------------------------------- MTS000101-36-M03 LEASE L0161 LEASE L0162 LEASE L0163 LEASE L0164 LEASE L0165 LEASE L0166 LEASE L0167 GENERAL TERMS AND CONDITIONS THE SUCCESSFUL BIDDER MUST ENTER INTO A DEVELOPMENT AGREEMENT WITH THE METIS SETTLEMENTS GENERAL COUNCIL AND THE AFFECTED METIS SETTLEMENT COUNCIL THAT INCLUDES THE FOLLOWING STANDARD AND NEGOTIATED COMMITMENTS: STANDARD COMMITMENTS 1. ADHERE TO THE PROCEDURES CONTAINED IN THE CO-MANAGEMENT AGREEMENT. 2. CONFORM TO THE DEVELOPMENT PLANS AND LAND USE RESTRICTIONS ESTABLISHED BY THE SETTLEMENT COUNCIL. 3. ENSURE THE PROTECTION OF THE ENVIRONMENT IN THE SETTLEMENT AREA IN ACCORDANCE WITH PROVINCIAL STANDARDS AND SETTLEMENT BYLAWS. 4. PAY APPLICABLE SETTLEMENT LICENSE FEES AND TAXES. 5. PROVIDE FAIR AND REASONABLE COMPENSATION FOR SURFACE ACCESS AND RELATED DAMAGES, AS WELL AS ANY ACCIDENTAL DAMAGES ARISING OUT OF OPERATIONS. 6. CONDUCT OPERATIONS IN A WAY THAT MAINTAINS THE SOCIAL AND CULTURAL ORDER OF THE SETTLEMENT AREA. NEGOTIATED COMMITMENTS 1. RECOGNIZE THE GENERAL COUNCIL’S RIGHT TO AN OVERRIDING ROYALTY, AS PROVIDED FOR IN THE CO-MANAGEMENT AGREEMENT. 2. CONFIRM THE GENERAL COUNCIL’S RIGHT TO A PARTICIPATION OPTION, AS PROVIDED FOR IN THE CO-MANAGEMENT AGREEMENT. 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. SUCH OTHER MATTERS AS MAY BE NEGOTIATED BETWEEN THE PARTIES. COMPANIES SUBMITTING BIDS UNDER ANY PUBLIC OFFERING OF PETROLEUM AND NATURAL GAS AND OIL SANDS RIGHTS UNDERLYING METIS SETTLEMENT LANDS ARE REQUIRED TO SUBMIT A 'METIS SETTLEMENTS BENEFITS PROPOSAL' INDICATING WHAT THE COMPANY IS PREPARED TO DO REGARDING THE NEGOTIATED COMMITMENTS. NOTES 1. COPIES OF THE CO-MANAGEMENT AGREEMENT, A MASTER DEVELOPMENT AGREEMENT AND THE 'METIS SETTLEMENT BENEFITS PROPOSAL' FORM CAN BE OBTAINED AT: WWW. MSGC.CA/DEPARTMENTS/LAND+A+RESOURCES 2. FOR INFORMATION REGARDING SETTLEMENT DEVELOPMENT PLANS AND LAND USE RESTRICTIONS, ENVIRONMENTAL BYLAWS OR APPLICABLE LICENCE FEES AND TAXES, BIDDERS SHOULD CONTACT THE ADMINISTRATOR OF THE AFFECTED METIS SETTLEMENT. 3. FOR GENERAL INFORMATION OR INFORMATION REGARDING SETTLEMENT CONTACTS, BIDDERS SHOULD CONTACT THE OIL AND GAS COORDINATOR AT METIS SETTLEMENTS GENERAL COUNCIL, EITHER BY PHONE AT (780) 822-4096 OR BY EMAIL AT OILGAS@ MSGC.CA SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: C/O OIL AND GAS COORDINATOR METIS SETTLEMENTS GENERAL COUNCIL 10335 172 ST NW SUITE 200 EDMONTON AB T5S 1K9 (780) 822-4096 ------------------------------------------------------------------------------------- MTS000201-36-M03 LEASE L0168 LEASE L0169 LEASE L0172 GENERAL TERMS AND CONDITIONS THE SUCCESSFUL BIDDER MUST ENTER INTO A DEVELOPMENT AGREEMENT WITH THE METIS SETTLEMENTS GENERAL COUNCIL AND THE AFFECTED METIS SETTLEMENT COUNCIL THAT INCLUDES THE FOLLOWING STANDARD AND NEGOTIATED COMMITMENTS: STANDARD COMMITMENTS 1. ADHERE TO THE PROCEDURES CONTAINED IN THE CO-MANAGEMENT AGREEMENT. 2. CONFORM TO THE DEVELOPMENT PLANS AND LAND USE RESTRICTIONS ESTABLISHED BY THE SETTLEMENT COUNCIL. 3. ENSURE THE PROTECTION OF THE ENVIRONMENT IN THE SETTLEMENT AREA IN ACCORDANCE WITH PROVINCIAL STANDARDS AND SETTLEMENT BYLAWS. 4. PAY APPLICABLE SETTLEMENT LICENSE FEES AND TAXES. 5. PROVIDE FAIR AND REASONABLE COMPENSATION FOR SURFACE ACCESS AND RELATED DAMAGES, AS WELL AS ANY ACCIDENTAL DAMAGES ARISING OUT OF OPERATIONS. 6. CONDUCT OPERATIONS IN A WAY THAT MAINTAINS THE SOCIAL AND CULTURAL ORDER OF THE SETTLEMENT AREA. NEGOTIATED COMMITMENTS 1. RECOGNIZE THE GENERAL COUNCIL’S RIGHT TO AN OVERRIDING ROYALTY, AS PROVIDED FOR IN THE CO-MANAGEMENT AGREEMENT. 2. CONFIRM THE GENERAL COUNCIL’S RIGHT TO A PARTICIPATION OPTION, AS PROVIDED FOR IN THE CO-MANAGEMENT AGREEMENT. 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. SUCH OTHER MATTERS AS MAY BE NEGOTIATED BETWEEN THE PARTIES. COMPANIES SUBMITTING BIDS UNDER ANY PUBLIC OFFERING OF PETROLEUM AND NATURAL GAS AND OIL SANDS RIGHTS UNDERLYING METIS SETTLEMENT LANDS ARE REQUIRED TO SUBMIT A 'METIS SETTLEMENTS BENEFITS PROPOSAL' INDICATING WHAT THE COMPANY IS PREPARED TO DO REGARDING THE NEGOTIATED COMMITMENTS. NOTES 1. COPIES OF THE CO-MANAGEMENT AGREEMENT, A MASTER DEVELOPMENT AGREEMENT AND THE 'METIS SETTLEMENT BENEFITS PROPOSAL' FORM CAN BE OBTAINED AT: WWW. MSGC.CA/DEPARTMENTS/LAND+A+RESOURCES 2. FOR INFORMATION REGARDING SETTLEMENT DEVELOPMENT PLANS AND LAND USE RESTRICTIONS, ENVIRONMENTAL BYLAWS OR APPLICABLE LICENCE FEES AND TAXES, BIDDERS SHOULD CONTACT THE ADMINISTRATOR OF THE AFFECTED METIS SETTLEMENT. 3. FOR GENERAL INFORMATION OR INFORMATION REGARDING SETTLEMENT CONTACTS, BIDDERS SHOULD CONTACT THE OIL AND GAS COORDINATOR AT METIS SETTLEMENTS GENERAL COUNCIL, EITHER BY PHONE AT (780) 822-4096 OR BY EMAIL AT OILGAS@ MSGC.CA SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: C/O OIL AND GAS COORDINATOR METIS SETTLEMENTS GENERAL COUNCIL 10335 172 ST NW SUITE 200 EDMONTON AB T5S 1K9 (780) 822-4096 ------------------------------------------------------------------------------------- END