www.ir.gov.sk.ca

Land Tenure – Details of Process

The Saskatchewan Natural Gas Advantage

Ed Dancsok, P Eng, P Geo.

Director,

Geology & Petroleum Lands Branch

www.ir.gov.sk.ca

Outline

1. Landsale Notice

2. Restrictions

3. Posting type and requirements

4. Bidding

5. Results

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CROWN LANDSALES

• Held every second month (Six times a year)

• Usually second Tuesday of the month

• Bids due 4:00 p.m. on day prior to sale (Monday)

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Postings

- Posting deadline approximately 3 months prior to sale.

- Requested by Companies

- Posting reviewed by Mineral Rights Unit.

- Department advises company if posted or not.

- Postings sent to other government agencies for review.

- Any restrictions are attached to postings prior to sale notice. *Lettering System*

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“B” RESTRICTIONEnvironmentally Sensitive

These lands either in whole or in part contain an environmentally sensitive area and as such may require environmental screening before exploration activities can proceed. Inquiries regarding these areas should be directed to:

Mr. Graham Mutch, Project Manager

Environmental Assessment

Saskatchewan Environment

Telephone: (306) 787-6241; Fax: (306) 787-0930

www.ir.gov.sk.ca

“B1” RESTRICTIONEnvironmental Protection Plan AreasThese lands either in whole or in part are judged highly sensitive environmentally and exploration or development on the subject lands will require Environmental Protection Plan (EPP) review and clearance/approval pursuant to The Environmental Assessment Act prior to the proposed activity proceeding. Inquires regarding these areas should be directed to:

Mr. Graham Mutch, Project Manager

Environmental Assessment

Saskatchewan Environment

Telephone: (306) 787-6241; Fax: (306) 787-0930

www.ir.gov.sk.ca

“C” RESTRICTIONWildlife Habitat

These lands either in whole or in part are subject to The Wildlife Habitat Lands Disposition and Alteration Regulations under The Wildlife Habitat Protection Act, 1992. Lands designated under The Wildlife Habitat Protection Act are protected for natural and wildlife values. A detailed review is necessary prior to any development on these lands. Surface alteration to these lands may not be granted without the prior approval of Saskatchewan Environment.

Inquiries regarding these areas should be directed to:

Mr. Conrad Olson, Wildlife Habitat Specialist

Saskatchewan Environment

Telephone: (306) 787-2385; Fax: (306) 787-9544

www.ir.gov.sk.ca

www.ir.gov.sk.ca

www.ir.gov.sk.ca

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Posting TypesSpecial ExploratoryPermits:- Very large tracts.- Not posted within 40km of a cased well.- Other posting types take preference over these.

Exploration Licences:- First offered in 1998.- Limited from 1 section to 36 sections.- Take preference over leases.- Will try to remain flexible.

Leases:- Will post sizes ranging from less than 1 up to 4 sections.- Offset by production.

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RequirementsSpecial ExploratoryPermits: - Work commitment bid.- Expenditure deposit equal to 25% of 1st year’s commitment- Rental fee of 25¢ per ha for the first year.

Exploration Licences:- Bonus bid.- Rental fee of $1.75/ha for the first year.- Application fee of $250.00.

Leases:- Bonus bid.- Rental of $3.50/ha (prorated @ 25¢/ha/month partial year).- Application fee of $28.00 per lease.

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Bidding

• Closing time: 4:00 p.m. day before sale

• Bid format shown on page 3 of sale notice

• Each bid to be in separate sealed envelope

• Bids must contain funds to cover bonus, rental & application fee

• Electronic debit: Contact Ken Brown, Administrator Revenue Accounting

(306) 787-6508

www.ir.gov.sk.ca

Acceptance or Rejection of Bids

• Bids reviewed for acceptable bids

• Each parcel evaluated prior to sale with minimum

acceptable price determined

• NO “MINIMUM BIDS”

• Although the posted lands are normally awarded to the highest

bidder, the province reserves the right to reject any or all offers.

“THIS DOES OCCUR”

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Results

• Available noon Thursday after sale

• Immediately on website

• Next, sent to Email subscribers

• Hard copy mailed out the following day

• E-mail subscription service:

www.ir.gov.sk.ca/subscribeonline

www.ir.gov.sk.ca

www.ir.gov.sk.ca

Saskatchewan Regulations

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www.qp.gov.sk.ca

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Landsale bids will be accepted up to 4:00 p.m. CST on the day prior to the sale date.

Requests for postings will be accepted up to 4:00 p.m. CST on the closing date.

Posting requests are to be mailed or faxed to:Crown Sale PostingsSaskatchewan Industry and Resources6th Floor, 2101 Scarth StreetREGINA, Saskatchewan S4P 3V7Fax: (306) 787-0620Inquiries regarding postings: (306) 787-2610

Schedule of Sales of Petroleum and Natural GasDispositions in Saskatchewan for 2006

Sale Number Sale DateClosing Date for

PostingsSale Notice Published

Date

309 February 14, 2006 October 19, 2005 November 24, 2005

310 April 11, 2006 January 11, 2006 February 9, 2006

311 June 13, 2006 February 22, 2006 March 23, 2006

312 August 15, 2006 April 26, 2006 May 25, 2006

313 October 17, 2006 June 21, 2006 July 27, 2006

314 December 12, 2006 August 30, 2006 September 28, 2006