DRILLING LICENCE ---------------- PARCEL LEGAL DESCRIPTION HA ------- ------------------------------------------------------- ------ 67108 TRACT 1 1057 -------- TWP 088 RGE 17 W6M SEC 9W INC : PETROLEUM AND NATURAL GAS ALL ZONES TRACT 2 -------- TWP 088 RGE 17 W6M SEC 9E 21 23 24 INC : PETROLEUM AND NATURAL GAS BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY 43001 BLUESKY-GETHING-DUNLEVY ZONE DEFINED IN THE INTERVAL 1007.9M-1100.4M ON THE BHC ACOUSTILOG GAMMA RAY LOG OF THE WELL W.A. 6790 A-7-E/94-H-02 THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE APPLICABLE. THE COMMISSION MAY DENY PERMIT APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY PERMITS. PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING AUTHORIZED): - DENE THA' FIRST NATION - BLUEBERRY RIVER FIRST NATIONS - DOIG RIVER FIRST NATION - HORSE LAKE FIRST NATION - WEST MOBERLY FIRST NATIONS THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS: - DENE THA' FIRST NATION - BLUEBERRY RIVER FIRST NATIONS - DOIG RIVER FIRST NATION THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED): - DENE THA' FIRST NATION PAGE 1 DRILLING LICENCE ---------------- PARCEL LEGAL DESCRIPTION HA ------- ------------------------------------------------------- ------ - BLUEBERRY RIVER FIRST NATIONS - DOIG RIVER FIRST NATION ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE INCLUDE BUT ARE NOT LIMITED TO: - HUNTING - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND AND WATER) CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR MORE FIRST NATIONS INCLUDE: - CUMULATIVE EFFECTS - UNCONVENTIONAL OIL AND GAS DEVELOPMENT - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY - WATER QUALITY AND WATERSHED VALUES THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION CONTACT THE COMMISSION). ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND ADDRESS THE FOLLOWING (NOT LIMITED TO): - PRIVATE LAND PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE INTRODUCTION OR SPREAD OF INVASIVE PLANTS AND PLANT DISEASES. POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED. TERM : 3 YEARS FEES : $500.00 RENT PER HA : $3.50 NO FURTHER TRACTS REF.NO. 2002004 --------------------------------------------------------------------------- PAGE 2 PETROLEUM AND NATURAL GAS LEASE ------------------------------- PARCEL LEGAL DESCRIPTION HA ------- ------------------------------------------------------- ------ 67109 TRACT 1 259 -------- TWP 084 RGE 20 W6M SEC 31 INC : PETROLEUM AND NATURAL GAS DOWN TO BASE OF 38008 BALDONNEL 38008 BALDONNEL ZONE DEFINED IN THE INTERVAL 4026'-4140' ON THE BHCS-GR LOG OF THE WELL W.A. 4159 7-34-85-17 W6M THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE APPLICABLE. THE COMMISSION MAY DENY PERMIT APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY PERMITS. PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING AUTHORIZED): - DENE THA' FIRST NATION - BLUEBERRY RIVER FIRST NATIONS - DOIG RIVER FIRST NATION - HALFWAY RIVER FIRST NATION - HORSE LAKE FIRST NATION - WEST MOBERLY FIRST NATIONS THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS: - DENE THA' FIRST NATION - BLUEBERRY RIVER FIRST NATIONS - DOIG RIVER FIRST NATION - HALFWAY RIVER FIRST NATION THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED): - DENE THA' FIRST NATION - BLUEBERRY RIVER FIRST NATIONS - DOIG RIVER FIRST NATION - HALFWAY RIVER FIRST NATION ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE PAGE 3 PETROLEUM AND NATURAL GAS LEASE ------------------------------- PARCEL LEGAL DESCRIPTION HA ------- ------------------------------------------------------- ------ INCLUDE BUT ARE NOT LIMITED TO: - WILDLIFE VALUES - CULTURALLY SIGNIFICANT SITE(S) AND CULTURAL HERITAGE RESOURCES. - STREAMS, WETLANDS, LAKES - BURIAL SITES - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND AND WATER) - HARVESTING - HUNTING CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR MORE FIRST NATIONS INCLUDE: - CUMULATIVE EFFECTS - UNCONVENTIONAL OIL AND GAS DEVELOPMENT - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY - WATER QUALITY AND WATERSHED VALUES PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER TENURE HOLDERS MAY BE REQUIRED TO COORDINATE ACTIVITIES, EXPLORATION AND DEVELOPMENT. ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND ADDRESS THE FOLLOWING (NOT LIMITED TO): - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR DEVELOPMENT - PRIVATE LAND PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE INTRODUCTION OR SPREAD OF INVASIVE PLANTS AND PLANT DISEASES. POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED. TERM : 5 YEARS FEES : $500.00 RENT PER HA : $7.50 NO FURTHER TRACTS REF.NO. 2002001 --------------------------------------------------------------------------- PAGE 4 Parcels Offered and Hectares Summary No. Offered Hectares ----------- -------- Permits 0 0 Drilling Licences 1 1057 Leases 1 259 Grand Total 2 1316