Dear Sir/Madam:

Information Letter EMD00-05 details the amended procedures for Crown Reserve Dispositions. It is effective October 1, 2000 and supersedes Information Letter EMD99-08.

Information Letter EMD00-05 incorporates the following changes to previous procedures:

Payment for a successful bid(s) must be via Pre-Authorized Debit (PAD), or via cheque, bank draft or money order issued in Canadian funds, drawn on a Canadian financial institution.

See attachment below for details.

Endorsed by the 
Assistant Deputy Minister
September 20, 2000

Attachment

MPCAA/B/C

TITLES DIVISION

Subject: Crown Reserve Disposition Bidding Procedures, effective October 1, 2000

GENERAL:

Crown reserve petroleum and natural gas rights are disposed of under section 71 of the Petroleum and Natural Gas Act. Dispositions, by public tender, are made once each month. Dates for the dispositions are usually announced at least one year in advance. Information letter TITLES-03-02, listing upcoming dispositions, is available from the Titles Division.

Details on the rights offered in each disposition are included in notices mailed and e-mailed to interested parties approximately six and one-half weeks prior to the disposition. Notices are also published in the British Columbia Gazette and posted on the internet here. A list of accepted offers is released the day following the disposition. Anyone wishing to be placed on the E-mail list or mailing list for disposition notices or lists of accepted offers may do so by contacting the Titles Division.

PROCEDURES AND CONDITIONS:

Bid Submission:

All bids must be addressed to the Minister of Energy and Mines and mailed or delivered to the office of the Executive Director, Titles Division, PO Box 9326, Stn. Prov. Gov't, 6th floor, 1810 Blanshard Street, Victoria, British Columbia, V8W 9N3.  Each bid must be submitted separately in a sealed envelope, with the parcel number clearly marked on the outside.

Bid Acceptance:

The Minister of Energy and Mines reserves the right to reject any or all bids received. Bids must be received by the Executive Director, Titles Division before 12:00 noon on the disposition date. Late bids will not be accepted.

In consideration of the Ministry of Energy and Mines receiving a bid, the bid is irrevocable from 12:00 noon on the disposition date. A bid is accepted when the Minister of Energy and Mines releases the list of accepted offers for the relevant disposition.

The Minister of Energy and Mines reserves the right to rescind acceptance if an error has been made in the bid review process. If, in the period between the release of the list of accepted offers and execution of the permit, drilling licence or lease documents for a parcel, it is found that an error has been made in determining the highest bid offered for the parcel, the Minister of Energy and Mines will refuse all bids submitted for that parcel.

Acceptance of a bid by the Minister of Energy and Mines obliges the bidder to enter into a permit, drilling licence or lease, as applicable, on standard terms specified by the Minister of Energy and Mines. Standard terms are available for review at the Titles Division office.

Bid Types:

Bids must be in the form of Bid Type A or Bid Type B, as described below and shown in the attached sample forms. Offers that do not conform to one of these types will not be considered. Use of the sample forms is not mandatory, but the bid letter submitted must contain the information listed below.

Bid Type A - Single Bids:

Used to submit an offer to purchase a single permit, drilling licence or lease for a specified amount of money.

Bid Type B - Shallow Rights/Deep Rights Bids:

Used when rights underlying the same lands have been offered in separate parcels and the bidder, if unable to acquire both the shallow and deep rights, does not wish to acquire either parcel.

Bid Letters:

Bid letters must include the following:

A statement that the bidder has read and understands the terms and conditions for the disposition;

Identifying parcel(s) number(s) shown in the disposition notice;

Correct full name of the parties to which the permit, drilling licence or lease will be issued;

Percentage interest of each of the parties, in decimals, to a maximum of eight places;

The total amount tendered (including fee, rent and bonus);

Address for correspondence relating to the bid letter (must be one of the parties to which the permit, drilling licence or lease will be issued); and

The name and signature of the person submitting the bid.

Bid letters should also include instructions for the return of the remittances submitted with bids that were not accepted. The remittances may be picked up in person or can be returned by mail. You may also request that remittances be destroyed.

Remittances:

Payment for a successful bid(s) must be via Pre-Authorized Debit (PAD), or via cheque, bank draft or money order issued in Canadian funds, drawn on a Canadian financial institution.

Bids must include pre-arranged PAD code, company cheques, bank drafts, or money orders, made payable to the Minister of Finance, to cover the fee, rent and tender bonus for the parcels. If the remittance is insufficient to cover the total as shown in the bid letter, it will be first applied to the fee and rent and then to the tender bonus. The bid will not be accepted if the remittance is insufficient to cover the fee and rent.

If the remittance is greater than the total amount specified in the bid letter, the bid will not be adjusted and the excess will be refunded.

Electronic Funds Transfer:

The Ministry is developing a process for electronic funds transfer which will eliminate the requirement to submit cheques with bids. Further information will be available after completion of a program of testing.

Caveats

The right to gas in coal seams is offered subject to the conditions detailed in Information Letter TITLES-03-03 Coalbed Methane Rights. Additional caveats, applicable to specific parcels, are identified in the disposition notice.

RESULTS:

A list of accepted offers is released at 11:00 a.m. on the day following the disposition. The list may be picked up in person from the office of the Executive Director, Titles Division, 6th floor, 1810 Blanshard Street, Victoria, British Columbia, V8W 9N3, or may be obtained by E-mail or mail by contacting Carolyn Desjardins at the address shown below.

The same information is available on the internet no later than 11:00 a.m. at:

Gerald German
Executive Director
Titles Division

2000 09 20