ARCHIVED - Terms and Conditions of the 2003 Arctic Islands of Nunavut Call for Bids - Part A - Region Specific

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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 :

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 2003 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 each.

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 to be specified:
Rudi Klaubert
National Energy Board
Frontier Information Office
444 - 7th 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. "2003 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. "2003 Arctic Islands of Nunavut 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 Work Deposit (clause 10 of Part B) and the issuance fee (clause 6 of Part B).

4. Related Requirements

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

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. Interested parties are advised to obtain a copy of the agreement
from the Frontier Information Office of the National Energy Board in Calgary.

Section 27.1.2 of the Nunavut Land Claims Agreement states that "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.

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, and other applicable legislation.

The hachured area on the attached Call map has 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.

Referring to the Call map, specific environmental information has been obtained by Nunavut Tunngavik Incorporated and marine and wildlife specialists, including Fisheries and Oceans, Environment Canada and the Department of Sustainable Development of the Government of Nunavut; additional information is incorporated from the 1991 Lancaster Sound Regional Land Use Plan.

Industry should be aware that the North Baffin Regional Land Use Plan 2000, an updated version of the 1991 Lancaster Sound Regional Land Use Plan, was approved in June 2000. This land use plan has been developed by the Nunavut Planning Commission with the Inuit of Nunavut, the Government of Nunavut and Indian Affairs and Northern Development, and 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.

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.

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 Section 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.

In addition to the annual report requirements set out in attachment 2, the annual report shall include information on Inuit employment, wages and goods and services purchased from Inuit businesses.

Information

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

Director,
Northern Oil and Gas,
Department of Indian and Northern Affairs
OTTAWA Ontario K1A 0H4
Tel: (819) 997-0878
Fax: (819) 953-5828
Internet: Fortierm@ainc-inac.gc.ca

Rights Issuance,
Northern Oil and Gas,
Department of Indian and Northern Affairs
OTTAWA Ontario K1A 0H4
Tel: (819) 953-8529
Fax: (819) 953-5828
Internet: Desjardinsm@ainc-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 Management Administrator,
Information Office,
National Energy Board
444 - 7th Avenue S.W.,
CALGARY AB, T2P 0X8
Tel: (403) 299-3112
Fax: (403) 292-5503

Nunavut Contact List

* Primary Contact -Designated Inuit Organization

Regional Inuit Associations

Please note that Designated Inuit Organization (DIO's) 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.

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