2008 APRIL 16 PUBLIC OFFERING OF CROWN PETROLEUM AND NATURAL GAS RIGHTS ENERGY PUBLIC OFFERING CONTROL COUNTS FOR 2008.04.16 From To Total Area LEASES: A0292 A0352 61 12,308.9080 ha. LICENCES: B0353 B0370 18 7,936.0000 ha. -------------------------- 79 20,244.9080 ha. PUBLIC OFFERING OF CROWN PETROLEUM AND NATURAL GAS RIGHTS BIDDING DEADLINE Offers to purchase petroleum and natural gas leases and licences (including any subsequent amendments) contained in this notice will not be accepted after 12 noon on 2008 April 16. HOW TO SUBMIT BIDS 1. E-Bidding is mandatory for the submission of bids for petroleum and natural gas leases and licences. 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 greater, and a fee of $625.00. 2. A bonus offer of less than $2.50/ha for a lease or $1.25/ha for a licence 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 they provide their GST registration number in writing to the Financial Services Branch @ Fax No. (780) 422-4281. REMEMBER 1. The bidder is responsible for having sufficient funds to cover all bids in their EFT bank account 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 bid. 2. Requesters of parcels posted in this public offering are expected to bid on their parcels. If you are a requester of a parcel and fail to bid, you will be charged a penalty of $625.00 (plus GST) for each parcel unless it is purchased by someone else. 3. Attached to this notice are APPENDIX 1 and APPENDIX 2 containing applicable Zone Designations (ZDs) and Deeper Rights Reversion Zone Designations (DRRZDs) respectively (See IL 98-14), and APPENDIX 3 containing, where necessary, addenda relating to surface access and terms and conditions for acquisition of parcels within Metis Settlements (See IL 92-19). 4. 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. 5. 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. RESULTS OF THE PUBLIC OFFERING 1. The accepted bids information will be available on 2008 April 16 in the afternoon on the Department's website at http://www.energy.gov.ab.ca. 2. All agreements are issued in accordance with the Mines & Minerals Act and its regulations. 2008 February 20 Retha Purkis - Manager EDMONTON, Alberta P&NG Sales and Registrations LEASE SCHEDULE PETROLEUM AND NATURAL GAS LEASES 2008, APRIL 16 LEASE HECTARES LAND DESCRIPTION ----- -------- ---------------- --- PLAINS REGION --- A0292 64 4-16-006: 14SW PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE FISH SCALE-WESTGATE (DRRZD 273) ------------------------------------------------------------------------------------- A0293 256 (DMR000701) 4-18-008: 27 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0294 256 4-18-008: 28 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0295 256 4-11-013: 17 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE SECOND WHITE SPECKS (DRRZD 13) ------------------------------------------------------------------------------------- A0296 128 4-17-014: 16E PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0297 128 4-17-014: 16W PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0298 256 4-17-014: 29 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0299 256 4-19-017: 32 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MEDICINE HAT SD (DRRZD 12) ------------------------------------------------------------------------------------- A0300 64 4-17-030: 30SE PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0301 64 4-17-030: 30NW PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0302 64 4-17-030: 30NE PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0303 256 4-10-034: 18 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE SECOND WHITE SPECKS (DRRZD 13) ------------------------------------------------------------------------------------- A0304 256 4-10-034: 19 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0305 256 4-10-034: 30 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0306 256 4-02-035: 7 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0307 256 4-02-035: 24 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0308 256 4-02-035: 25 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0309 256 4-02-035: 33 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0310 256 4-02-035: 34 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0311 256 4-02-035: 35 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0312 64 4-28-035: 20NW PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0313 256 4-28-035: 29 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0314 256 4-28-035: 32 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BELLY RIVER GRP (DRRZD 39) ------------------------------------------------------------------------------------- A0315 192 5-03-036: 29N,SW PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0316 256 4-11-037: 10 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0317 256 4-11-037: 22 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0318 256 4-11-037: 24 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0319 256 4-14-039: 36 PETROLEUM AND NATURAL GAS TO THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0320 256 4-14-040: 2 PETROLEUM AND NATURAL GAS TO THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0321 256 4-14-040: 10 PETROLEUM AND NATURAL GAS TO THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0322 256 4-14-040: 24 PETROLEUM AND NATURAL GAS TO THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0323 256 4-20-040: 36 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE EDMONTON GRP (DRRZD 280) TO THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0324 256 4-19-041: 6 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0325 256 4-19-041: 29 PETROLEUM AND NATURAL GAS TO THE BASE OF THE BELLY RIVER GRP (DRRZD 39) PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0326 44.908 TRACT ONE 4-19-041: 33NWP PORTION(S) DESIGNATED AS LAKE NO. 9 ON TOWNSHIP PLAN APPROVED AND CONFIRMED BY THE SURVEYOR GENERAL AT OTTAWA ON 1894/10/12. PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BELLY RIVER GRP (DRRZD 39) PETROLEUM TO THE BASE OF THE BELLY RIVER GRP (DRRZD 39) TRACT TWO 4-19-041: 33SP PORTION(S) DESIGNATED AS LAKE NO. 1 ON A TOWNSHIP PLAN APPROVED AND CONFIRMED BY THE SURVEYOR GENERAL AT OTTAWA ON 1894/10/12. NEP PORTION(S) DESIGNATED AS LAKE NO. 1 AND LAKE NO. 6 ON A TOWNSHIP PLAN APPROVED AND CONFIRMED BY THE SURVEYOR GENERAL AT OTTAWA ON 1894/10/12. PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BELLY RIVER GRP (DRRZD 39) ------------------------------------------------------------------------------------- A0327 256 TRACT ONE 4-19-042: 22N PETROLEUM AND NATURAL GAS TO THE BASE OF THE VIKING FM (DRRZD 6) TRACT TWO 4-19-042: 22S PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BELLY RIVER GRP (DRRZD 39) TO THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0328 256 4-27-043: 28 PETROLEUM AND NATURAL GAS TO THE BASE OF THE VIKING FM (DRRZD 6) ------------------------------------------------------------------------------------- A0329 256 5-02-045: 12 NATURAL GAS IN THE GLAUCONITIC SS (ZD 3405) ------------------------------------------------------------------------------------- A0330 64 4-10-046: 3SW NATURAL GAS EXCEPTING NATURAL GAS IN THE VIKING FM (ZD 2301) ------------------------------------------------------------------------------------- A0331 256 4-27-046: 10 PETROLEUM AND NATURAL GAS TO THE BASE OF THE BELLY RIVER GRP (DRRZD 39) ------------------------------------------------------------------------------------- A0332 256 4-25-047: 36 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0333 128 5-03-047: 24E PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE EDMONTON GRP (DRRZD 280) TO THE BASE OF THE BELLY RIVER GRP (DRRZD 39) ------------------------------------------------------------------------------------- A0334 256 4-03-052: 36 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0335 256 5-03-058: 10 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0336 256 4-17-061: 32 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- --- NORTHERN REGION --- A0337 64 (ES2000101) 5-13-052: 29NE PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0338 128 5-12-054: 11S PETROLEUM AND NATURAL GAS TO THE BASE OF THE CARDIUM FM (DRRZD 3) ------------------------------------------------------------------------------------- A0339 128 5-12-054: 11S PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) TO THE BASE OF THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- A0340 64 6-05-063: 29NE PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0341 192 5-18-075: 31N,SW PETROLEUM AND NATURAL GAS TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- A0342 128 6-10-076: 10W PETROLEUM AND NATURAL GAS TO THE BASE OF THE DOE CREEK MBR (DRRZD 25) ------------------------------------------------------------------------------------- A0343 256 6-07-078: 34 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- A0344 256 (ADM001901) 5-23-083: 19 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0345 256 (ADM001901) 5-23-083: 20 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0346 256 (ADM001901) 5-23-084: 3 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0347 128 6-12-085: 33W PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0348 64 (ADM001902) 5-11-087: 7NW PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0349 64 (ADM001902) 5-11-087: 7NE PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0350 104 5-26-087: 1EF PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- A0351 256 6-08-089: 27 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- A0352 256 6-07-090: 14 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- 61 12,308.91 HA TOTALS END LICENCE SCHEDULE PETROLEUM AND NATURAL GAS LICENCES 2008, APRIL 16 LICENCE HECTARES LAND DESCRIPTION ------- -------- ---------------- --- NORTHERN REGION --- B0353 256 5-23-053: 27 PETROLEUM AND NATURAL GAS TO THE BASE OF THE FERNIE GRP (DRRZD 276) ------------------------------------------------------------------------------------- B0354 256 5-23-053: 34 PETROLEUM AND NATURAL GAS TO THE BASE OF THE FERNIE GRP (DRRZD 276) ------------------------------------------------------------------------------------- B0355 256 5-23-054: 2 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 51) TO THE BASE OF THE FERNIE GRP (DRRZD 276) ------------------------------------------------------------------------------------- B0356 512 5-23-054: 3;10 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 51) TO THE BASE OF THE FERNIE GRP (DRRZD 276) ------------------------------------------------------------------------------------- B0357 512 6-09-066: 7;8 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- B0358 512 6-09-066: 9;10 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- B0359 768 6-09-066: 15;16;21 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- B0360 256 6-10-066: 2 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE SPIRIT RIVER FM (DRRZD 22) ------------------------------------------------------------------------------------- B0361 256 5-20-075: 1 PETROLEUM AND NATURAL GAS TO THE BASE OF THE DEBOLT FM (DRRZD 42) ------------------------------------------------------------------------------------- B0362 256 5-20-075: 2 PETROLEUM AND NATURAL GAS TO THE BASE OF THE DEBOLT FM (DRRZD 42) ------------------------------------------------------------------------------------- B0363 256 5-20-075: 10 PETROLEUM AND NATURAL GAS TO THE BASE OF THE DEBOLT FM (DRRZD 42) ------------------------------------------------------------------------------------- B0364 256 5-20-075: 11 PETROLEUM AND NATURAL GAS TO THE BASE OF THE DEBOLT FM (DRRZD 42) ------------------------------------------------------------------------------------- B0365 256 5-21-077: 18 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- B0366 768 6-07-089: 25;35 6-07-090: 2 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- B0367 768 6-08-090: 5;8;16 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- --- FOOTHILLS REGION --- B0368 768 (IR2000701) 5-22-049: 24-26 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) ------------------------------------------------------------------------------------- B0369 768 (PDM001101) 5-22-049: 34;35 5-22-050: 3 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) ------------------------------------------------------------------------------------- B0370 256 (ES4000102) (PRP002101) 5-26-052: 30 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------- 18 7,936.00 HA TOTALS END APPENDIX 1 ZONE DESIGNATIONS APPLICABLE TO THE 2008, APRIL 16 PUBLIC OFFERING NOTICE ZD: 2301 ZONE: 2140 VIKING FM INTERVAL: 2,140.00 - 2,265.00 FEET KEY WELL: 00/11-02-048-12W4/0 LOG TYPE: INDUCTION ELECTRIC ------------------------------------------------------------------------------------- ZD: 3405 ZONE: 3000 GLAUCONITIC SS INTERVAL: 5,800.00 - 5,880.00 FEET KEY WELL: 00/06-02-045-02W5/0 LOG TYPE: DUAL INDUCTION-LATEROLOG ------------------------------------------------------------------------------------- END APPENDIX 2 DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 2008, APRIL 16 PUBLIC OFFERING NOTICE DRRZD: 3 ZONE: 1700 CARDIUM FM INTERVAL: 6,303.00 - 6,436.00 FEET KEY WELL: 00/16-16-041-06W5/0 LOG TYPE: ELECTRICAL ------------------------------------------------------------------------------------- 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: 12 ZONE: 1640 MEDICINE HAT SD INTERVAL: 1,312.00 - 1,582.00 FEET KEY WELL: 00/06-30-014-04W4/0 LOG TYPE: INDUCTION GAMMA RAY ------------------------------------------------------------------------------------- DRRZD: 13 ZONE: 1860 SECOND WHITE SPECKS INTERVAL: 1,820.00 - 2,030.00 FEET KEY WELL: 00/10-17-014-09W4/0 LOG TYPE: INDUCTION ELECTRIC ------------------------------------------------------------------------------------- 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: 22 ZONE: 2640 SPIRIT RIVER FM INTERVAL: 2,004.00 - 3,138.00 FEET KEY WELL: 00/11-03-078-01W6/0 LOG TYPE: INDUCTION ELECTRIC ------------------------------------------------------------------------------------- DRRZD: 25 ZONE: 1900 DOE CREEK MBR INTERVAL: 2,330.00 - 2,393.00 FEET KEY WELL: 00/07-04-075-10W6/0 LOG TYPE: DUAL INDUCTION-LATEROLOG ------------------------------------------------------------------------------------- DRRZD: 39 ZONE: 1260 BELLY RIVER GRP INTERVAL: 1,688.00 - 2,453.00 FEET KEY WELL: 00/07-18-032-22W4/0 LOG TYPE: INDUCTION ELECTRICAL ------------------------------------------------------------------------------------- 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: 51 ZONE: 1700 CARDIUM FM INTERVAL: 2,350.40 - 2,415.70 METRES KEY WELL: 00/07-36-058-03W6/0 LOG TYPE: DUAL INDUCTION SFL ------------------------------------------------------------------------------------- DRRZD: 273 ZONE: 2030 FISH SCALE-WESTGATE INTERVAL: 794.00 - 841.00 METRES KEY WELL: 02/06-13-011-20W4/0 LOG TYPE: INDUCTION ELECTRIC ------------------------------------------------------------------------------------- DRRZD: 276 ZONE: 4140 FERNIE GRP INTERVAL: 2,048.00 - 2,151.00 FEET KEY WELL: 00/13-01-074-11W6/0 LOG TYPE: BOREHOLE COMPENSATED SONIC ------------------------------------------------------------------------------------- DRRZD: 280 ZONE: 1060 EDMONTON GRP INTERVAL: 335.00 - 962.00 METRES KEY WELL: 00/06-24-044-04W5/0 LOG TYPE: COMPENSATED NEUTRON-LITHO DENSITY ------------------------------------------------------------------------------------- END APPENDIX 3 ADDENDA AND CONTACTS APPLICABLE TO THE 2008, APRIL 16 PUBLIC OFFERING NOTICE ADM001901 LEASE A0344 LEASE A0345 LEASE A0346 ALL LAND(S) IS/ARE WITHIN AN OIL SANDS AREA AS DESIGNATED BY THE ALBERTA ENERGY AND UTILITIES BOARD (AEUB). SOLUTION GAS IS EXPRESSLY EXCLUDED FROM THE PETROLEUM AND NATURAL GAS RIGHTS GRANTED UNDER CROWN AGREEMENTS ISSUED IN RESPECT OF OIL SANDS AREAS. MOREOVER, PRODUCTION OF GAS FROM THE LAND(S) IN THIS AGREEMENT MAY BE DISALLOWED OR PRECLUDED BY ORDER OF THE AEUB OR OTHERWISE, ON THE GROUND THAT SUCH PRODUCTION MAY DETRIMENTALLY AFFECT THE RECOVERABILITY OF OIL SANDS FROM THOSE LANDS. BY ACCEPTING THIS AGREEMENT FOR THE PETROLEUM AND NATURAL GAS RIGHTS IN THESE LANDS, THE LESSEE/ LICENSEE HEREBY ACKNOWLEDGES ALL OF THE ABOVE, AND THAT PRODUCTION OF GAS FROM THE LANDS IN THIS AGREEMENT MAY BY ORDER OF THE AEUB OR OTHERWISE BE PRECLUDED OR DISALLOWED, AND HEREBY WAIVES ANY RECOURSE, ACTION, CAUSE OF ACTION OR CLAIM THAT THE LESSEE/LICENSEE MAY HAVE AGAINST THE CROWN IN RIGHT OF ALBERTA AS A RESULT OF OR IN RELATION TO ITS INABILITY FOR ANY OF THE ABOVE REASONS OR FOR ANY OTHER REASON WHATSOEVER TO PRODUCE GAS FROM THE LANDS IN THIS AGREEMENT. FOR THE DEFINITION OF SOLUTION GAS AND OTHER RELEVANT INFORMATION, PLEASE REFER TO INFORMATION LETTER 99-38. FOR CURRENT POLICY ON NATURAL GAS PRODUCTION IN THE OIL SANDS ZONES IDENTIFIED WITHIN OIL SANDS AREAS, PLEASE REFER TO AEUB INTERIM DIRECTIVE 99-01. SURFACE ACCESS NOT AFFECTED FOR FURTHER INFORMATION, PLEASE CONTACT: RETHA PURKIS MANAGER, P & NG AGREEMENT SALES ALBERTA DEPARTMENT OF ENERGY MINERAL DEVELOPMENT AND STRATEGIC RESOURCES TENURE 9945 108 ST NW FLOOR 2 EDMONTON AB T5K 2G6 (780) 422-9426 ------------------------------------------------------------------------------------- ADM001902 LEASE A0348 LEASE A0349 ALL LAND(S) IS/ARE WITHIN AN OIL SANDS AREA AS DESIGNATED BY THE ALBERTA ENERGY AND UTILITIES BOARD (AEUB). SOLUTION GAS IS EXPRESSLY EXCLUDED FROM THE PETROLEUM AND NATURAL GAS RIGHTS GRANTED UNDER CROWN AGREEMENTS ISSUED IN RESPECT OF OIL SANDS AREAS. MOREOVER, PRODUCTION OF GAS FROM THE LAND(S) IN THIS AGREEMENT MAY BE DISALLOWED OR PRECLUDED BY ORDER OF THE AEUB OR OTHERWISE, ON THE GROUND THAT SUCH PRODUCTION MAY DETRIMENTALLY AFFECT THE RECOVERABILITY OF OIL SANDS FROM THOSE LANDS. BY ACCEPTING THIS AGREEMENT FOR THE PETROLEUM AND NATURAL GAS RIGHTS IN THESE LANDS, THE LESSEE/ LICENSEE HEREBY ACKNOWLEDGES ALL OF THE ABOVE, AND THAT PRODUCTION OF GAS FROM THE LANDS IN THIS AGREEMENT MAY BY ORDER OF THE AEUB OR OTHERWISE BE PRECLUDED OR DISALLOWED, AND HEREBY WAIVES ANY RECOURSE, ACTION, CAUSE OF ACTION OR CLAIM THAT THE LESSEE/LICENSEE MAY HAVE AGAINST THE CROWN IN RIGHT OF ALBERTA AS A RESULT OF OR IN RELATION TO ITS INABILITY FOR ANY OF THE ABOVE REASONS OR FOR ANY OTHER REASON WHATSOEVER TO PRODUCE GAS FROM THE LANDS IN THIS AGREEMENT. FOR THE DEFINITION OF SOLUTION GAS AND OTHER RELEVANT INFORMATION, PLEASE REFER TO INFORMATION LETTER 99-38. FOR CURRENT POLICY ON NATURAL GAS PRODUCTION IN THE OIL SANDS ZONES IDENTIFIED WITHIN OIL SANDS AREAS, PLEASE REFER TO AEUB INTERIM DIRECTIVE 99-01. SURFACE ACCESS NOT AFFECTED FOR FURTHER INFORMATION, PLEASE CONTACT: RETHA PURKIS MANAGER, P & NG AGREEMENT SALES ALBERTA DEPARTMENT OF ENERGY MINERAL DEVELOPMENT AND STRATEGIC RESOURCES TENURE 9945 108 ST NW FLOOR 2 EDMONTON AB T5K 2G6 (780) 422-9426 ------------------------------------------------------------------------------------- DMR000701 LAND DESCRIPTION LEASE A0293 4-18-008: 27L9P IS/ARE WITHIN A DAMSITE AND RESERVOIR. NO ACTIVITY WILL BE PERMITTED BELOW THE TOP OF THE DAM ELEVATION OR THE FULL SUPPLY LEVEL OF THE RESERVOIR. SURFACE ACCESS IS NOT PERMITTED FOR FURTHER INFORMATION, PLEASE CONTACT: OWEN GIBSON TECHNOLOGIST DEPARTMENT OF ENVIRONMENT SOUTHERN REGION OPERATIONS 200 5 AVE S FLOOR 2 LETHBRIDGE AB T1J 4L1 (403) 381-5298 ------------------------------------------------------------------------------------- ES2000101 LEASE A0337 ALL LAND(S) IS/ARE WITHIN ZONE 2 (CRITICAL WILDLIFE) AS DESCRIBED IN "A POLICY FOR RESOURCE MANAGEMENT OF THE EASTERN SLOPES". SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: KIRBY SMITH AREA WILDLIFE BIOLOGIST DEPT. OF SUSTAINABLE RESOURCE DEV EDSON OFFICE - FISH AND WILDLIFE 111 54 ST SUITE 203 EDSON AB T7E 1T2 (780) 723-8244 ------------------------------------------------------------------------------------- ES4000102 LAND DESCRIPTION LICENCE B0370 5-26-052: 30E,WP IS/ARE WITHIN ZONE 4 (GENERAL RECREATION) AS DESCRIBED IN "A POLICY FOR RESOURCE MANAGEMENT OF THE EASTERN SLOPES". SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: SHARAD KARMACHARYA LAND MANAGEMENT PLANNER DEPT. OF SUSTAINABLE RESOURCE DEV HINTON OFFICE - LAND USE AREA- LANDS DIVISION 131 CIVIC CENTRE RD FLOOR 3 HINTON AB T7V 2E6 (780) 865-8267 ------------------------------------------------------------------------------------- IR2000701 LAND DESCRIPTION LICENCE B0368 5-22-049: 24S,NWP,NE;25NP,SE,SWP;26NEP IS/ARE WITHIN ZONE 2 (CRITICAL WILDLIFE) OF THE COAL BRANCH INTEGRATED RESOURCE PLAN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE HOBSON WILDLIFE BIOLOGIST DEPT. OF SUSTAINABLE RESOURCE DEV EDSON OFFICE - FISH AND WILDLIFE 111 54 ST SUITE 203 EDSON AB T7E 1T2 (780) 723-8244 ------------------------------------------------------------------------------------- PDM001101 LAND DESCRIPTION LICENCE B0369 5-22-050: 3L16 IS/ARE WITHIN A PERMIT TO DEVELOP A COAL MINE, GRANTED UNDER THE COAL CONSERVATION ACT. PROSPECTIVE PURCHASERS ARE ADVISED THAT LAND USE PROBLEMS RELATING TO THE MINE OPERATIONS MAY ARISE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: ROB KILBURN VICE PRESIDENT & GENERAL MANAGER MANCAL COAL INC. 530 8 AVE SW SUITE 1600 PO BOX 2526 STN M CALGARY AB T2P 2M7 (403) 231-7600 ------------------------------------------------------------------------------------- PRP002101 LAND DESCRIPTION LICENCE B0370 5-26-052: 30E,WP IS/ARE WITHIN A PROVINCIAL PARK. SURFACE ACCESS IS NOT PERMITTED FOR FURTHER INFORMATION, PLEASE CONTACT: BILL RICHARDS RESOURCE TECHNOLOGIST PARKS, RECREATION AND CULTURE TOURISM PARKS AND PROTECTED AREAS POLICY AND LAND USE PLANNING SECTION 9820 106 ST NW FLOOR 2 EDMONTON AB T5K 2J6 (780) 427-9445 ------------------------------------------------------------------------------------- END