1 The Primrose Lake Air Weapons Range Permit Regulations Repealed by Saskatchewan Regulations 92/98 (effective December 9, 1998). Formerly Chapter C-50.2 Reg 8 (effective January 26, 1994). NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation.
2 Table of Contents 1 Title 2 Terms, conditions, etc., of permit apply 3 Application of The Petroleum and Natural Gas Regulations, 1969 Appendix
3 CHAPTER The Crown Minerals Act Title 1 These regulations may be cited as The Primrose Lake Air Weapons Range Permit Regulations. Terms, conditions, etc., of permit apply 2 Where there is any inconsistency between The Petroleum and Natural Gas Regulations, 1969, being Saskatchewan Regulations 8/69 and the terms, conditions, restrictions and stipulations of the Petroleum and Natural Gas Exploration Permit set out in the Appendix, the terms, conditions, restrictions and stipulations in the Permit apply to the disposition in that Permit. 4 Feb 94 cc-50.2 Reg 8 s2. Application of The Petroleum and Natural Gas Regulations, 1969 3 Subject to section 2, The Petroleum and Natural Gas Regulations, 1969, being Saskatchewan Regulations 8/69, apply to the disposition in the Permit set out in the Appendix. 4 Feb 94 cc-50.2 Reg 8 s3. Appendix Petroleum and Natural Gas Exploration Permit SPECIAL AGREEMENT NO. SAPP-2 BLOCK NO. SA-4 SALE September 14, 1993 KNOW ALL THESE MEN BY THESE PRESENTS that, pursuant to the provisions of The Petroleum and Natural Gas Regulations, 1969, under The Crown Minerals Act: Grad & Walker Energy Corporation - 50% and Jordan Petroleums Ltd. - 50% hereinafter referred to as the holders of the disposition are hereby granted the right, licence, privilege and authority to explore for petroleum and natural gas, in so far as the Crown in right of Saskatchewan has the right to grant the same, in upon or under the lands described in the schedule attached hereto for a term of 5 years commencing as of September 14, 1993, subject to the fulfilment,
4 observance and performance on the part of the said companies of the provisions of The Petroleum and Natural Gas Regulations, 1969, as the same are now in force or as they may from time to time hereafter be amended, revised or substituted. The Special Agreement granted herein shall be subject to Part II (Permits) of The Petroleum and Natural Gas Regulations, 1969, with the exception of Special Terms and Conditions set forth herein. The holders of this disposition shall be deemed to have agreed: (i) as, when, and to the extent requested by the Province of Saskatchewan, to be a party to the Access Agreement; (ii) to accept an assignment from the Province of Saskatchewan, as assignor, to the holders of this disposition as assignee, of any or all of the rights and obligations of the Access Agreement entered into between the Province of Saskatchewan and the Department of National Defence; and (iii) to accept and abide by any direction or order of the Province of Saskatchewan as the Province may deem necessary from time to time to ensure compliance with the terms of the Access Agreement or access arrangement. In the event that military activity necessitates a deferment of the exploration program over an exploration season, the term of the Special Agreement may be extended. The term of each extension will be for one year for each deferred exploration season. Work commitments: The holders of this disposition shall expend on exploration in and upon the agreement lands as follows: (a) one dollar per hectare for the first year; (b) one dollar per hectare for the second year; (c) two dollars per hectare for the third year; (d) three dollars per hectare for the fourth year; (e) three dollars per hectare for the fifth year. Rentals: The first year rental shall be due as of September 14, 1993 and will be at the rate of 25 per hectare per annum for each year the Special Agreement is in effect, which rental shall not be refunded. Lease Selection:
5 At the termination of the Special Agreement and at any time during the term of the Special Agreement, the holders of this disposition shall be allowed to select at random petroleum and natural gas leases up to a maximum of 75% of the agreement lands provided that the holders of this disposition have discovered commercial quantities of oil and/or natural gas on the agreement lands. No 100% leasing of the natural gas rights in the agreement lands will be allowed. Responsibility of Disposition Holders: The holders of this disposition will be responsible for and indemnify the Province against all loss, damage, claims, actions, suits or other legal proceedings which could be brought against the Province of Saskatchewan (which term shall, for the purpose of this clause be deemed to include the Ministers, officers and employees of the Province of Saskatchewan) by reason of or arising out of access to, or activities on, the Range for purposes of oil and gas exploration, development and production on the Special Agreement lands. Liability for Loss: The holders of this disposition acknowledge and agree that the Province of Saskatchewan (which term shall, for the purposes of this clause, be deemed to include the Ministers, officers and employees of the Province of Saskatchewan) shall not be liable for any loss, including but not limited to, economic loss, or damage, of any nature or kind, whether to person or to property of the disposition holders, their directors, officers, employees, agents, contractors, or licensees, by reason of, or arising out of any of the activities or operations conducted by any person in the permit area or the Access Agreement area or related to the permit or access arrangement. Assignment of Special Agreement: No assignment, sublease, farm out or transfer of this Special Agreement shall be made without prior written consent of the Minister, and such approval shall be subject to the terms of the Access Agreement. Access Agreement to Prevail: Additional terms and conditions or changes to the terms and conditions of this Special Agreement may be imposed as required by the terms of the Access Agreement or the access arrangement and, where there is a conflict between the terms of this Special Agreement and the Access Agreement, the Minister may, in his absolute discretion, determine that the latter shall prevail. Sealed and signed this day of, 19. Witness Deputy Minister Saskatchewan Energy and Mines
6 Witness Grad & Walker Energy Corporation Witness Jordan Petroleums Ltd. Schedule of Lands Held Under BLOCK SA-4: RIGHTS GRANTED: Special Agreement No. BLOCK SAPP-2 SA-4 PRIMROSE LAKE AREA: 10,878 hectares (26,880 acres), more or less Township 67, Range 22, West 3 Secs. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36 Township 68, Range 22, West 3 Secs. 4, 5, 6, 7, 8, 9 Petroleum and Natural Gas Rights down to the basement complex of Precambrian Rocks. 4 Feb 94 cc-50.2 Reg 8. REGINA, SASKATCHEWAN Printed by the authority of THE QUEEN S PRINTER Copyright 1998