AUTHORIZATION GUIDE. General Information. Use this guide to help you complete the online Authorization on ETS, for the purpose of:

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General Information Purpose Use this guide to help you complete the online Authorization on ETS, for the purpose of: (a) Authorizing a company to act on behalf of the designated representative (Crown lessee or licensee) on a matter for a Crown petroleum and natural gas licence or lease (PNG agreement). (b) Authorizing another company to use your company s well for a tenure-related purpose relating to a PNG agreement. (c) Authorizing Alberta Energy use of your company s technical data in support of another company s application or response pertaining to a PNG agreement. Sections referred to in this guide are from the Petroleum and Natural Gas Tenure Regulation (PNG Tenure Regulation), unless otherwise specified. Resources The Alberta Energy website http://www.energy.alberta.ca provides access to relevant guides, regulations and other information. Select: Our Business Tenure Tenure Administration. If you have questions, please phone the PNG Continuation Helpdesk at (780) 644-2300. For additional information regarding the authorization process also refer to the ETS on-line training modules. Our Business ETS Online Learning There are 4 types of Authorizations: Administrative Information Continuation to obtain authorization for a continuation agreement or a well. Continuation Data to obtain authorization for another company to submit continuation data for your application. Validation to obtain authorization for an initial term agreement or a well. Validation Data - to obtain authorization for another company to submit validation data for your application. Page 1 of 8

Once concurred, authorization remains valid until the designated representative revokes the authorization or the authorization expiry date passes. Authorization for a submitted ETS Request for continuation or validation cannot be changed or revoked after agreement expiry. The 16-character well id is the preferred well id format to use (e.g. 100/01-01-001-01W4/00). The company submitting the ETS Request or application is the company requesting authorization. The designated representative, well licencee or company supplying technical data needs to concur to the authorization request. Continuation Authorization Type The name of the company must match the name used on the ETS Request or application. If requesting authorization from more than one company, the same authorization request may be used. a. Authorization provided by the designated representative to apply for continuation of the PNG Agreement allows the authorized company to: Apply for continuation under Sections 15, 16 and 17 of the PNG Tenure Regulation, as a result of expiry or in response to a notice of non-productivity under Section 18 of the PNG Tenure Regulation. Apply for advance ruling on continuation of an agreement before expiry. Decide which lands and rights to include in the ETS Request or continuation application. Amend a previous continuation application. Continuation and Validation Authorization Make late application under Section 14.2 of the PNG Tenure Regulation. Apply for an extension of the term of an agreement under Sections 16(6),18(6), or 26 of the PNG Tenure Regulation. Apply for an extension of the term of an agreement under Section 8(1)(h) of the Mines and Minerals Act. Apply for an extension of the response time under Section 8(1)(g) of the Mines and Minerals Act. Page 2 of 8

Receive and respond to an offer of continuation, including requesting a review of the offer. If an application for continuation includes multiple agreements with different designated representatives, each designated representative must authorize the applicant with respect to their agreement(s) by concurring to the authorization request. Alberta Energy only discusses a continuation application with the authorized applicant. Alberta Energy only sends an offer to the applicant. Alberta Energy sends a final letter of continuation to both the applicant and the designated representative. Alberta Energy corresponds only with the designated representative if no application is received. b. Authorization provided by the well licensee to use well(s) as QUALIFYING WELL(S) allows the authorized company to use the well in support of continuation under Section 16 of the Regulation. A well can only be used one time as a qualifying well in an application for continuation. Refer to the PNG Continuation Application Guide for more information. Validation Authorization Type The name of the company must match the name used on the ETS Request or application. If requesting authorization from more than one company, the same authorization request may be used. a. Authorization provided by the designated representative to apply for VALIDATION of the PNG Licence allows the authorized company to: Apply for validation of an initial term licence under Section 9 or Section 11 of the Regulation. Decide which lands and rights to include in the ETS Request or validation application. Amend (for drilling over expiry wells only) a previous validation application. Apply for an extension of the term of an agreement under Section 26 of the PNG Tenure Regulation or Section 8(1)(h) of the Mines and Minerals Act. Apply for an extension of the response time under Section 8(1)(g) of the Mines and Minerals Act. Page 3 of 8

Receive and respond to an offer of validation, including requesting a review of the offer. Alberta Energy only discusses a validation application with the authorized applicant. Alberta Energy only sends an offer to the applicant. Alberta Energy sends a final letter of validation to both the applicant and the designated representative. Alberta Energy only corresponds with the designated representative if no application is received. b. Authorization provided by the well licensee to use well(s) as VALIDATING AND/OR EARNING WELL(S) allows the authorized company to use a well to validate an initial term licence under Section 11 of the Regulation. A well can be used only once as a validating well. Earning wells can be used multiple times. Requesting Continuation and/or Validation Authorization Authorization Type - Select either Continuation or Validation. Authorization Expiry - Select the date you wish the authorization to expire. This date must be a future date up to one year; it cannot be a past or current date. Requesting Company - Ensure the correct company name is chosen to avoid authorization errors upon application submission. Contact Information - Select a contact from the dropdown. Agreements: Click on the Add Agreement box. Enter the agreement(s) number(s) you are requesting authorization for. Select all agreements by clicking each check box and click OK. An initial term licence must be added under Agreements if the Authorization Type chosen is Validation. Page 4 of 8

An intermediate term licence or lease must be added under Agreements if the Authorization Type chosen is Continuation. Qualifying/Earning/Validating Wells: With an Authorization Type of Continuation you will have the Qualifying Well option. With an Authorization Type of Validation you will have the Earning/Validating Wells option. For each well you would like to request authorization for, individually enter the well ID and select Add Well. An agreement(s) number(s) must also be added to each well you request authorization on. This is the agreement number you will be using the well for. To add the agreement(s) number(s), click on the Add Agreement box. Enter and select the agreement(s) number(s) and click ok. Once all agreements and wells have been added to the authorization request, click Submit. Each agreement and/or well will be given its own individual request number. Each of these authorizations must be concurred to by the designated representative and/or the well licencee before submission of your ETS Request or application. Continuation (Data) and Validation (Data) Authorization This part is completed by the company requesting the use of data which is being submitted separately, or previously submitted data, in support of their company s ETS Request or application. Data Authorization should be requested on an agreement by agreement basis. When Data Authorization is granted, all agreements in the Add Agreement portion of the Request Authorization screen will be authorized to use all data entered in the Data portion of the Request Authorization screen. Authorization Type - Select either Continuation (Data) or Validation (Data). Authorization Expiry - Select the date you wish the authorization to expire. This date must be a future date; it cannot be a past or current date. Requesting Company - Ensure the correct company name is chosen to avoid authorization errors upon application submission. Contact Information - Select a contact from the dropdown. Agreements - In support of the Crown Agreement(s), you must enter the agreement number in the popup box. Authorization is provided to Alberta Energy to use data in support of an ETS Request or application or response made by thec ompany: Click on the Add Agreement box. Enter the agreement(s) number(s) you are requesting authorization for. If data is required from more than one company, a separate authorization request is required. Page 5 of 8

Data: Click on the Add Company box. Enter and select the Client Name or Client ID of the company that submitted/is submitting the data you wish to use. Click on the Add Agreement box. Enter and select the agreement(s) number(s) the data was previously submitted with/will be submitted with. Enter the Submitted Date. This is the date the data was submitted to Alberta Energy or will be submitted to Alberta Energy. Data to be Used: Check All if you authorize Alberta Energy to use all of the referenced data. Alternatively, check Only part of the data if you do not want all the data used for this purpose. Specify the data in terms of documents, zones, lands, wells and/or data type in the textbox provided. Once the data authorization is completed, click Submit. Each agreement under the Agreements area will be given its own individual request number. Each of these authorizations must be concurred to by the authorizing company. You do not need to authorize Alberta Energy to use your data if it is included in the applicant s application or response. If you authorize Alberta Energy to use your data to support another company s application or response, the applicant must also authorize Alberta Energy to use your data for this purpose. Use the ETS Data Tab. When submitting the above data, do not enclose a copy of the application or response that your data supports. Page 6 of 8

Concurring Authorization Granting and Rejecting Authorization Requests If an application for continuation includes multiple agreements with different designated representatives, each designated representative must authorize the applicant with respect to their agreement(s) by concurring to the authorization request. If an application for continuation includes multiple wells with different well licencees, each well licencee must authorize the applicant with respect to their well(s) by concurring to the authorization request. If an application for continuation includes multiple data requests from different companies, each company must authorize the applicant with respect to their data by concurring to the authorization request. Once concurred, authorization remains valid until the designated representative revokes the authorization or the authorization expiry date passes. To Concur an Authorization: In the Concur Authorizations portion of the authorization Search screen, find the appropriate authorization request and click Concur. Click on the Concurrence drop down and choose Yes. Click Submit. Once concurred, the requesting company will receive notification that the authorization has been granted. Concurred requests can be found in the Granted Authorizations portion of the authorization Search screen. To Reject an Authorization: In the Concur Authorizations portion of the authorization Search screen, find the appropriate authorization request and click Concur. Click on the Concurrence drop down and choose No. In the Comments box a reason for rejection can be entered (optional) up to 500 characters. Click Submit. Once rejected, the requesting company will receive notification that the authorization was not granted. Rejected requests can be found in the Rejected and Revoked Authorizations portion of the authorization Search screen. Page 7 of 8

Revoking Authorization If an authorization is revoked, there is no effect on a previously submitted application. A revoked authorization means that the authorization cannot be used for future applications or submissions. To Revoke an Authorization: In the Company Approved Authorizations portion of the authorization Search screen, find the appropriate authorization request and click Revoke. In the pop up box, select OK. Once revoked, the requesting company will receive notification that the authorization is no longer in place. Revoked requests can be found in the Rejected and Revoked Authorizations portion of the authorization Search screen. Authorization Search Screen Previously Concurred authorization requests can be found under the Company Approved Authorizations portion of the authorization Search screen. This is also where you will find authorization requests that you may wish to revoke. Authorization requests needing to be Concurred can be found under the Concur Authorizations portion of the authorization Search screen. Once you request an authorization, you can look under the Pending Authorizations portion of the authorization Search screen to see if it is still awaiting concurrence. Once an authorization request has been Concurred, it can be found under the Granted Authorizations portion of the authorization Search screen. Authorization requests that your company has rejected and/or revoked can be found under the Rejected and Revoked Authorizations portion of the authorization Search screen. Authorizations that were requested by your company which were rejected and/or revoked by the concurring company can be found under the Company Rejected and Revoked Authorizations portion of the authorization Search screen. Page 8 of 8