TITLES AND OFFSHORE DIVISION                                                                     

SUBJECT:    AMENDED BIDDING PROCEDURES FOR CROWN RESERVE DISPOSITIONS (INCLUDING MANDATORY EFT PAYMENT PROCESS)

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.  An information letter listing upcoming dispositions is available from the Titles and Offshore Division, 6^th floor, 1810 Blanshard Street, Victoria, BC, V8W 9N3 or on our website at: http://www.em.gov.bc.ca/Titles/OGTitles/SalesNotices/Pages/default.aspx.  The 2007/2008 disposition dates are outlined in Information Letter TITLES-07-02.  Titles issued from dispositions are dated the day following the disposition date (see Information Letter TITLES-04-03).

Details on the rights offered in each disposition are included in notices emailed 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 at http://www.em.gov.bc.ca/Titles/OGTitles/SalesNotices/Pages/default.aspx.  A list of accepted offers is released the day following the disposition.  Anyone wishing to be placed on the email subscribers list for disposition notices or lists of accepted offers may do so by contacting Nicole Tudela, Titles and Offshore Division at 250-952-0333 or Email:  Nicole.Tudela@gov.bc.ca.

PROCEDURES AND CONDITIONS:

Bid Submission:

All bids must be addressed to the Minister of Energy, Mines and Petroleum Resources and mailed or delivered to the office of the Director, Oil and Gas Titles Branch, Titles and Offshore Division, PO Box 9326, Stn Prov Gov’t, 6^th 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, Mines and Petroleum Resources reserves the right to reject any or all bids received.  Bids must be received by the Director, Oil and Gas Titles Branch, Titles and Offshore Division before 12:00 noon on the disposition date.  Late bids will not be accepted.

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

The Minister of Energy, Mines and Petroleum Resources 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, Mines and Petroleum Resources may refuse all bids submitted for that parcel.

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

Remittances:

Effective September 1, 2004, all successful bid payments must be made via Electronic Funds Transfer (EFT) via the Ministry’s Pre-Authorized Debit (PAD) program.  New bidders may submit payment via cheque, bank draft or money order, payable to the Minister of Finance, for the first disposition in which they participate.

How to Register for the PAD Program:

Companies wishing to register for PAD must submit the following completed forms to Brenda Jennings, Compliance & Administration, Titles and Offshore Division @ (250) 952-0330 or email:  Brenda.Jennings@gov.bc.ca.  Blank forms are available from Brenda Jennings or they can be found on the internet at:  http://www.em.gov.bc.ca/Titles/OGTitles/InfoLetters/IssueDate/Pages/TITLES-03-05.aspx

            Authorization Letter
            Debit Authorization
            *Authorization for Agent
                    (*NOTE:  This form is required only if you intend to allow agent companies to submit bids on your behalf
                    (using their letterhead and requesting that we debit your bank account).

PAD applications will be processed in two business days of receipt, or less.  If faxing your application, please call Brenda Jennings, Compliance & Administration at (250) 952-0330 to ensure that your application has been received.

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 at the Titles and Offshore Division, 6^th floor, 1810 Blanshard Street, Victoria, British Columbia, V8W 9N3, or may be obtained by email by contacting Nicole Tudela at (250) 952-0333 or Email:  Nicole.Tudela@gov.bc.ca.

The same information is available on the internet no later than 11:00 a.m. at:
http://www.em.gov.bc.ca/Titles/OGTitles/SalesNotices/Pages/default.aspx

Patrick O’Rourke
Assistant Deputy Minister
Titles and Offshore Division

March 30, 2007

For further information contact:
Greg Wagner
A/Director, Oil and Gas Titles Branch
Titles and Offshore Division
Ministry of Energy, Mines and Petroleum Resources
PO Box 9326, Stn Prov Gov’t
6^th floor, 1810 Blanshard Street
Victoria, BC  V8W 9N3
Telephone:  (250) 952-0694
Facsimile:  (250) 952-0331
Email:  Greg.Wagner@gov.bc.ca

Attachments:
Bid Type A - Single Bids
Bid Type B - Shallow Rights/Deep Rights Bids
PAD Authorization Letter
Debit Authorization
Authorization for Agent