Archived - Terms and Conditions for the 2007 Beaufort Sea and Mackenzie Delta Call for Bids - Part A

Closing date ___ 2007

The Minister of Indian Affairs and Northern Development hereby calls for the submission of bids in respect of ( ) parcels comprising the following lands located in the area of the Beaufort Sea/Mackenzie Delta :

PARCEL ( ____ hectares )
Issuance Fee = $_____
Latitude Longitude Portion

1. Acceptance and Agreement

- Canada Petroleum Resources Act s.s. 24.1

Any submission of a bid in response to a Call for Bids shall be made on the understanding that the terms and conditions as contained herein are accepted and agreed to by the bidder. Such understanding shall include the acceptance of and agreement with the terms and conditions contained within the form of the Exploration Licence and with the Benefits Statement of Principles, copies of which are available by request or by downloading from our website.

2. Exploration Licence

- Canada Petroleum Resources Act s.s. 14.3 (a)

Any exploration licence which may result from a Call for Bids will be issued pursuant to the Canada Petroleum Resources Act (CPRA), R.S., 1985, c. 36, 2nd supplement, or legislation made in amendment thereof or in substitution therefor and any regulations made thereunder from time to time.

Term

- Canada Petroleum Resources Act s.s. 14.3 (c)

The term for exploration licences issued from the 2007 Beaufort Sea/Mackenzie Delta Call for Bids will be nine (9) years consisting of two consecutive periods of five (5) and four (4) years

3. Submission of Bids

- Canada Petroleum Resources Act s.s. 14.3 (e), (f)

Sealed bids must be delivered, either by registered mail or in person, to the following address prior to NOON, Mountain Time on ________ date specified:

Data Coordinator
National Energy Board
Frontier Information Office
444 Seventh Avenue S.W.
CALGARY AB T2P 0X8

Each bid submitted in response to a Call must be addressed to the Minister of Indian Affairs and Northern Development and be in double sealed envelopes bearing no corporate identification. The outer envelope should be clearly marked with the date and call name, i.e. "2007 Beaufort Sea/Mackenzie Delta Call for Bids". The inner envelope(s) should be clearly marked with the date, call name and parcel number, i.e. "2007 Beaufort Sea/Mackenzie Delta Call for Bids - Parcel 1".

Individuals or companies submitting more than one bid may place all bids in a single outer envelope.

The Bid Submission Form is available by request or by downloading from our website. To be accepted, bids must be accompanied by separate financial instruments in respect of the issuance (clause 6 of Part B) and of the Work Deposit (clause 10 of Part B).

4. Related Requirements

The exercise of petroleum exploration rights is subject to specific terms and conditions including:

Conditions Relating to the Environment

Operators wishing to carry out activities as a result of this process are advised to carefully review the environmental elements defined in the Inuvialuit Land Claims Agreement as well as those stemming from the Canadian Environmental Assessment Act, the Canada Oil and Gas Operations Act, the Territorial Lands Act, the Arctic Waters Pollution Prevention Act, and other applicable legislation.

The shaded area on the attached map has been identified by the Inuvialuit and other wildlife specialists as being of particular importance, and is intended to alert potential nominators that this area may be subject to additional regulatory terms and conditions.

Following an extensive aerial reconnaissance in 2006, the territorial Department of Environment and Natural Resources recently concluded that there are significant declines in the Cape Bathurst and Bluenose-West caribou herds. Operators should be aware that oil and gas activity in the range of both the Cape Bathurst and the Bluenose-West herds may be subject to restrictions when caribou migrate into the project area.

In addition, the entire onshore of the call area is grizzly bear habitat. The Committee on the Status of Endangered Wildlife in Canada (COSEWIC) has recommended that grizzly bears be listed as "vulnerable" under the Federal Species at Risk Act. Additional mitigative measures may be required at the activity stage. Potential operators should contact the Department of Environment and Natural Resources in Inuvik (Marsha Branigan, Manager Wildlife Management) for further information at (867) 777-7310.

Fisheries and Oceans has proposed the Tarium Niryutait Marine Protected Area (MPA) for the Beaufort Sea, offshore of the Mackanzie Delta. The proposed MPA consists of 3 areas, Imaryuk (Shallow Bay), Okeevik (east Mackenzie Bay near Kendall and Pelly Islands) and Kittigaryuit (Kugmallit Bay). Industry is encouraged to consult with Fisheries and Oceans prior to any proposed work activities in the onshore/offshore that could impact marine habitat, by contacting the Habitat Biologist in Inuvik at (867) 777-7500.

Also, some offshore areas could be a migratory route for whales and be considered sensitive. For example, the work season may be restricted to those months when the proposed type of activity will not have a significant environmental impact on sensitive fish and mammal habitats, birds or other species and there may be conditions relating to drilling fluids and waste discharges.

Site specific environmental protection plans may be required by the proponent prior to the commencement of activity. These plans would describe the necessary procedures the operator would take to minimize any environmental impacts to sensitive fish and mammal habitats, birds or other species in the region

Land Claims Requirements

The successful bidder shall comply with the terms of the Inuvialuit Land Claim Agreement. Interested parties should be familiar with the Agreement.

Northern Benefits Requirements

The successful bidder shall adhere to the Northern Benefits Requirements Associated with New Exploration Programs which is available by request or by downloading from our website.

Information

For more information on this call, the rights issuance process or the resource management regime, please contact:

Manager, Land Tenure
Northern Oil and Gas Branch
Department of Indian Affairs and Northern Development
OTTAWA Ontario K1A 0H4
Tel: (819) 997-0221; Fax: (819) 953-5828;
Internet: Caseyr@ainc-inac.gc.ca

Rights Issuance
Northern Oil and Gas Branch
Department of Indian Affairs and Northern Development
15/25 Eddy Street, 10th Floor
OTTAWA Ontario K1A 0H4
Tel: (819) 997-0048; Fax: (819) 953-5828;
Internet: StJeanLL@inac.gc.ca

Northern Oil and Gas information, including maps, may be found on and downloaded from the DIAND web site.

Any geological and well information with respect to the lands or area which is available for public disclosure may be obtained from:

Data Coordinator
National Energy Board
444 - 7th Avenue S.W.
CALGARY AB T2P 0X8
Tel: (403) 292-4800 Fax: (403) 292-5876