ARCHIVED - Lands Available for Posting in the Mackenzie Valley

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Bulletin
Volume 7, Number 1
January 2000

Please Note: The term of exploration licences issued for the parcels will be eight (8) years consisting of two consecutive periods of four (4) years each as a result of call for bids for any lands posted. Please refer to the terms and conditions of the proposed call for bids .

Call for Nominations Launched

A new call for nominations will be launched on January 14, 2000 for lands in the central Mackenzie Valley of the Northwest Territories. Interested parties have until February 29, 2000 to submit posting requests. A call for bids for exploration licences to explore for oil and gas on the nominated lands is anticipated for sometime in March 2000.

The call area includes most of the acreage where the Gwich'in and Sahtu Peoples are surface owners and where the Crown is owner of the subsurface. Interested parties are advised to obtain a copy of the appropriate land claim settlement agreement from the Frontier Information Office of the National Energy Board in Calgary or by written request to the Department of Indian and Northern Affairs. Please note that the Gwich'in Tribal Council has submitted a Land Use Plan to the Government of Canada for consideration, which recommends special measures for certain lands. A copy will be made available at the Frontier Information Office of the National Energy Board in Calgary.

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. The term consists of two consecutive periods. 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. Period 1 lasts 5 years followed by 4 years in Period 2.

Allowable Expenditures

The Schedule of Allowable Expenditures has been revised in light of recent experience of industry with northern operations. The schedule determines the expenditures which can be used to offset the work bid deposit of 25% of the bid. This schedule is part of the draft Call for Bids Document attached to the Call for Nominations.

The allowable for drilling has been increased by $25 000, to $125 000 and are per day on location. The allowable rates for both 2D and 3D seismic has been increased in recognition of higher operating costs. The rate for 2D seismic is increased to $20 000 per km while the 3D rate is now $50 000 per square km.

The allowable for overhead also incorporates a supplementary overhead of 5% for field operations only commenced in the first year of the licence.

Financial Instruments

At the present time we accept cash, money orders, bank drafts, certified cheques, promissory notes with letters of guarantee or Irrevocable Standby Letters of Credit as security deposits for work expenditures and rentals against Exploration Licences. The preferred financial instrument is the Irrevocable Standby Letter of Credit.

The issuance of Government of Canada cheques in replacement of cash, money orders, bank drafts and certified cheques posted with us can take up to 30 days to be processed, while amendments to Irrevocable Standby Letters of Credit can easily be made through your financial institution by way of an amendment letter and are automatically renewed unless we are otherwise informed by your financial institution.

In future, we would ask that you please consider the use of Irrevocable Standby Letters of Credit as security deposits in place of the other financial instruments mentioned above. Copies of the accepted format for Letters of Credit are available from the Rights Administrator.

For More Information on this Call please contact us:
by phone: (819) 997-0877
by fax :(819) 953-5828 or
via e-mail to the Director: Fortierm@ainc-inac.gc.ca
or Rights Issuance: Desjardinsm@ainc-inac.gc.ca

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