Archived - Part A - Proposed Terms and Conditions - Specific to the 2009-2010 Arctic Islands of Nunavut Call for Bids

(To be read in conjunction with Part B)

Closing date: to be announced

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 Arctic Islands of Nunavut:

PARCEL(S) DESCRIPTION AND MAP WILL BE INSERTED

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.

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, R.S., 1985, c. 36, 2nd supplement, or legislation made in amendment thereof or in substitution therefore 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 2010 Arctic Islands of Nunavut Call for Bids will be nine (9) years consisting of two consecutive periods of six (6) years and three (3) 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:

Compliance Information Analyst
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. 2010 Arctic Islands of Nunavut Call for Bids. The inner envelope(s) should be clearly marked with the date, call name and parcel number, i.e. 2010 Arctic Islands of Nunavut Call for Bids – Parcel No. __.

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

To be accepted, bids must be accompanied by separate financial instruments in respect of the issuance fee (clause 6 of Part B) and of the Bid Deposit (clause 10 (a) of Part B).

For sections 4-16, please refer to the Part B: General Terms and Conditions of a Call for Bids North of 60°

17. Related Requirements

The exercise of petroleum exploration rights may be subject to specific terms and conditions relating to the environment, and must comply with requirements under Land Claims and for northern benefits.

Land Claims Requirements

The lands available for posting are located within the Nunavut Settlement area. Successful bidders shall adhere to the terms of the Nunavut Land Claims Agreement  reached with the Inuit.

Article 27.1.2 of the Nunavut Land Claims Agreement states:

"Prior to the initial exercise of rights in respect of exploration, development or production of petroleum on Crown lands in the Nunavut Settlement Area, and in order to prepare a benefits plan for the approval of the appropriate regulatory authority, the proponent shall consult the Designated Inuit Organization, and Government shall consult the Designated Inuit Organization, in respect to those matters listed in Schedule 27-1."

Schedule 27-1 lists matters considered appropriate for consultation; including:

• Inuit training;
• Inuit hiring;
• Employment rotation;
• Labour relations;
• Business opportunities for Inuit;
• Housing, accommodation and recreation on project site;
• Safety, health and hygiene;
• Language of workplace;
• Identification, protection and conservation of archaeological sites and specimens;
• Research and development;
• Inuit access to facilities constructed for the project such as airfields and roads;
• Particularly important Inuit environmental concerns and disruption of wildlife;
• Outpost camps;
• Information flow, including liaison between Inuit and proponent regarding project management and Inuit participation and concerns;
• Co-ordination with other developments;
• Any other matters that the Parties consider to be relevant to the needs of the project and Inuit.

Conditions Relating to the Environment

Operators wishing to carry out activities as a result of this process will be required to comply with all federal environmental requirements defined in the Nunavut 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, the Migratory Birds Convention Act, the Species at Risk Act, the Fisheries Act, the Canadian Environmental Protection Act and other applicable legislation.

Some areas on the map attached are of particular environmental importance. They have been identified to alert potential nominators that additional operating terms and conditions may be applied at the activity stage. For example, the work season may be restricted to those months when the proposed type of activity will not have a significant impact on sensitive fish and marine habitats, mammals, birds or other species. In addition, extra conditions may be imposed relating to drilling fluids and waste discharges, and site specific environmental protection plans may be required prior to the commencement of activity. These environmental protection plans would describe the necessary procedures the operator would take to minimize any environmental impacts to a particular species in the region.

Specific environmental information has been provided by Nunavut Tunngavik Incorporated and marine and wildlife specialists, such as Fisheries and Oceans Canada, Environment Canada and the Government of Nunavut. Additional information is incorporated from the North Baffin Regional Land Use Plan 2000. Please note that this Plan is in the process of being updated. The Canadian Wildlife Service advises that the Ivory Gull has been listed by the Committee on the Status of Endangered Wildlife of Canada (COSEWIC) as "Endangered", and the Ross's Gull was recently listed as "Threatened" under the Species at Risk Act. In addition, the Red Knot, a medium-sized shorebird which nests in the region, is listed as "Special Concern". Information on all of the species at risk in this region can be found at www.sararegistry.gc.ca . The Canadian Wildlife Service has extensive information on known breeding locations in the high Arctic, and proponents should contact its Iqaluit office at (867) 975-4633 for further information.

Fisheries and Oceans Canada encourages operators to contact its Iqaluit office at (867) 979-8010 for fisheries and mammal sensitivity information in the Nunavut area.

Polar Bears and Peary Caribou inhabit the High Arctic Islands. Polar Bears are listed as "Special Concern" by COSEWIC, while the Peary Caribou are listed as "Endangered" by the Government of Canada. Management of bears and caribou is a territorial responsibility, and thus proponents should contact the Government of Nunavut, Department of Environment for information on important locations for these species.

Industry should be aware that the North Baffin Regional Land Use Plan 2000, developed by the Nunavut Planning Commission with the Inuit of Nunavut, the Government of Nunavut and with Indian and Northern Affairs Canada; is a helpful source of land use information. Any oil and gas related proposals should conform with the North Baffin Regional Land Use Plan 2000. Please note that this Plan is in the process of being updated.

Northern Benefits Requirements

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

Benefits Plans

Prior to the initial exercise of rights in respect of exploration, development or production of petroleum on Crown lands in the Nunavut Settlement Area; the successful bidder must submit a benefits plan to the Minister for approval. In this regard the proponents are referred to the requirements in Section 5.2 of the Canada Oil and Gas Operations Act, Section 21 of the Canada Petroleum Resources Act and Article 27.1.2 of the Nunavut Land Claims Agreement.

The benefits plan must provide Northerners and northern businesses with full and fair access to training, employment and business opportunities in accordance with the benefits principles.

In addition, the benefits plan should reflect the consultations between the parties on all matters listed in schedule 27-1 of the Nunavut Land Claims Agreement. In particular, there must be provisions in the benefits plan to ensure that Inuit have access to training and employment opportunities and to facilitate their participation in the supply of goods and services. The provisions should be commensurate with the scale and duration of the proposed work and the capacity and interests of Inuit and Inuit owned businesses.

When a benefits plan is based on several proposed activities, some of which could change depending upon the results of initial work, the plan should be updated periodically. The update, which need not be lengthy, may be provided as part of an annual report or separately.

Further Information and Contacts

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

Lucie St-Jean
Rights Administrator / Registrar
Oil and Gas Management Directorate
Northern Oil and Gas Branch
Department of Indian Affairs and Northern Development
15/25 Eddy Street, 10th Floor
OTTAWA ON  K1A 0H4
Tel: (819) 997-0048
Fax: (819) 953‑5828
E-mail: Lucie.StJean@ainc-inac.gc.ca

Ursula Beddoes
Manager, Land Tenure
Oil and Gas Management Directorate
Northern Oil and Gas Branch
Department of Indian Affairs and Northern Development
15/25 Eddy Street, 10th Floor
OTTAWA ON  K1A 0H4
Tel: (819) 934-9392
Fax: (819) 953‑5828
E-mail: Ursula.Beddoes@ainc-inac.gc.ca

For more information on Northern Oil and Gas, refer to our website.

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
Exploration and Production
444 Seventh Avenue SW
CALGARY AB T2P 0X8
Tel: (403) 292‑4800; Fax: (403) 292‑5876

Nunavut Contact List

• *Nunavut Tunngavik Incorporated  
• Lands and Resources, Nunavut Tunngavik Incorporated
• Nunavut Land Claims Agreement 
• Nunavut Wildlife Management Board  
• Nunavut Impact Review Board  

* Primary Contact -Designated Inuit Organization

Regional Inuit Associations

• Kitikmeot Inuit Association
• Kivalliq Inuit Association  
• Qikiqtani Inuit Association

Please note that Designated Inuit Organization may have compiled a comprehensive list of Inuit firms, together with information on goods and services which they would be in a position to furnish. This list has been compiled for purposes of government contracts but may be considered for oil and gas activity when consulting, pursuant to article 27.1.2.