ARCHIVED - Call for Bids for Six Parcels in the Central Mackenzie Valley
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The Minister of Indian Affairs and Northern Development is inviting bids on six (6) parcels in the Central Mackenzie Valley. The parcels, covering 482 443 hectares, are identified on the attached map (pdf) and in the table.
The Call for Bids opens on Saturday May 5, 2001 and closes at noon Mountain Time, on September 17th, 2001. Please refer to the Call document itself for the terms and conditions of the Call for Bids, copies of which will be available at the offices of the National Energy Board at 444-7th Avenue S.W. in Calgary, Alberta or from our Website as of May 7th.
The bid selection criterion remains the total amount of money that the bidder proposes to spend doing exploratory work on the parcel during Period 1 of the term of the exploration licence. A deposit of 25% of the bid amount must be submitted with the bid.
The term consists of two consecutive periods of four years. The drilling of a well during Period 1 of the term qualifies the licence holder to retain the licence for Period 2, whether or not the total amount bid has been spent. However, any excess bid deposit will be forfeit. The length of the term of exploration licences has been decreased from 9 years to 8 after consultation with interested parties.
Drilling Deposit: New Term & Condition
This year, for the first time, a provision for a drilling deposit is included in the terms and conditions of the call for bids. A drilling deposit of $1 million may be submitted at the end of first period to obtain a one-year period of grace to commence the required well. The deposit is refundable on drilling the well.
The provision of a drilling deposit recognizes limitations of rig availability and unpredictable operating windows in the North. Suggestions to include such a provision have been made by companies operating in the North over the last few years. This new provision may alleviate the capacity limits of northern communities faced by increasing flexibility for companies to spread work over several operating seasons.
No additional tenure would be gained by the posting of a drilling deposit and the second period would be reduced by a year. As this is a new term and condition, there is no applicability to existing licences. However we propose to introduce this provision for the rights issuance in the other call areas.
Aboriginal Canada Portal
The Government of Canada and six national Aboriginal organizations have officially launched the Aboriginal Canada Portal at the Indigenous Summit of the Americas in Ottawa. The potential benefits of information and communication technologies, particularly the Internet, are enormous for Aboriginal people and for companies and Canadians generally planning to undertake activities on the traditional lands of Canada's aboriginal peoples, across Canada and in the North.
We urge you to visit and to bookmark the and to promote it to clients, partners and other stakeholders.
Rights Issuance Elsewhere North of 60°
Two calls for nominations closed in January 2001. The Beaufort Sea/Mackenzie Delta annual call closed on the 12th, and the first call for nominations in the new territory of Nunavut closed on the 29th.
Absence of nominations in the Beaufort Sea/Mackenzie Delta follows two years of intense licencing activity which saw most of the available lands onshore in the Delta and the shallow offshore issued as exploration licences. With the current industry focus on the western Arctic, it is perhaps hardly surprising that there was no formal response to the first Nunavut call. This is expected to change as the potential of this region becomes more fully appreciated.
It is expected that calls in both areas will follow an established annual cycle. We will begin the next round of rights issuance with community consultations in late summer with calls for nominations launched in the early fall.