Common use of TRANSFER OF PROVINCIAL CROWN MINERALS IN CERTAIN CIRCUMSTANCES Clause in Contracts

TRANSFER OF PROVINCIAL CROWN MINERALS IN CERTAIN CIRCUMSTANCES. (a) Where Saskatchewan is the Fee Simple Mineral Owner of any Minerals underlying Entitlement Lands which it does not hold in trust pursuant to an existing trust agreement or trust certificate for any Person which are subject to a Mineral Disposition and the Band indicates that it wishes to Purchase the Minerals and to pay for the Minerals out of the future revenue to be earned from those Minerals, Saskatchewan will transfer the Minerals to Canada, unencumbered, effective upon the Entitlement Reserve creation provided: (i) the Mineral Disposition Holder has agreed to surrender its Mineral Disposition and accept a Replacement Mineral Disposition; and (ii) Canada agrees to take all necessary steps to create a Replacement Mineral Disposition and, pursuant thereto, to remit to Saskatchewan, from those amounts received by Canada from the Mineral Disposition Holder, an amount equivalent to the Provincial Mineral Revenues which would have otherwise been payable to Saskatchewan (based upon actual production by such Mineral Disposition Holder) had the Minerals which are the subject of the Replacement Mineral Disposition not been transferred to Canada. (b) In the event that the Mineral Disposition Holder defaults under the terms of the Replacement Mineral Disposition, Canada and the Band agree: (i) to immediately advise Saskatchewan of the default; (ii) to take all reasonable steps to collect the amounts due from the Mineral Disposition Holder and to pay therefrom an amount up to (but not exceeding) the Provincial Mineral Revenues owing by Canada to Saskatchewan pursuant to subsection 5.08(a)(ii) to the date the Replacement Mineral Disposition is terminated; and (iii) upon request of Saskatchewan, to take steps to cancel the Replacement Mineral Disposition if the default has not been remedied prior to receipt of such request from Saskatchewan. (c) In the event that the Replacement Mineral Disposition is terminated as a result of the default by the Mineral Disposition Holder, any of Canada, Saskatchewan or the Band may arrange for a new Replacement Mineral Disposition and Canada agrees to grant the new Replacement Mineral Disposition on terms and conditions generally available in the industry at the time and for a period of time, including associated rights of renewal, similar to those that had been contained in the original Mineral Disposition. In such an event, Canada agrees to take all necessary steps to create a new Replacement Mineral Disposition and thereafter the obligations of Canada, as outlined under subsections 5.08(a) and (b), shall thereafter continue in respect of the new Replacement Mineral Disposition. (d) In the event that arrangements for a new Replacement Mineral Disposition have not been made within five (5) years from the date of termination of a Replacement Mineral Disposition as provided under subsection (b), no further payments shall be required to be made by Canada to Saskatchewan in respect thereof and Saskatchewan shall forthwith cease to have any rights or beneficial interest in respect of the affected Minerals or potential revenues derived therefrom. (e) Saskatchewan agrees to promptly notify Canada of any changes from time to time in the royalties, taxes and rents which form the basis for the calculation of Provincial Mineral Revenues unless, pursuant to applicable federal legislation, such changes are deemed to apply to the Replacement Mineral Disposition without notice. (f) The terms of any Replacement Mineral Disposition shall include, unless otherwise agreed among Canada, Saskatchewan and the Band, provisions which: (i) to the extent reasonably possible coincide with the term of the Mineral Disposition including all available renewals; (ii) automatically increase the amounts otherwise payable by the Mineral Disposition Holder pursuant to the Replacement Mineral Disposition in accordance with any increases in the royalties, taxes and rents which form the basis for calculation of the Provincial Mineral Revenues; and (iii) automatically terminate the Replacement Mineral Disposition not more than sixty (60) days following any default in payment of any amounts due to be paid by the Disposition Holder to Canada pursuant to the terms thereof. (g) In the event that Canada is entitled, pursuant to the terms of the Replacement Mineral Disposition, to receive amounts which exceed the Provincial Mineral Revenues, then such excess amounts, if any, shall be received by Canada for the use and benefit of the Band.

TRANSFER OF PROVINCIAL CROWN MINERALS IN CERTAIN CIRCUMSTANCES. (a) Where Saskatchewan is the Fee Simple Mineral Owner of any Minerals underlying Entitlement Lands which it does not hold in trust pursuant to an existing trust agreement or trust certificate for any Person which are subject to a Mineral Disposition and the Band indicates that it wishes to Purchase the Minerals and to pay for the Minerals out of the future revenue to be earned from those Minerals, Saskatchewan will transfer the Minerals to Canada, unencumbered, effective upon the Entitlement Reserve creation provided: (i) the Mineral Disposition Holder has agreed to surrender its Mineral Disposition and accept a Replacement Mineral Disposition; (ii) The Band agrees to take all necessary steps to grant an interest in the Entitlement Reserve to Canada which is sufficient for Canada to create a Replacement Mineral Disposition and for Canada to meet its obligations under section 5.08 of this Agreement in its entirety; and (iiiii) Canada agrees to take all necessary steps to create a Replacement Mineral Disposition and, pursuant thereto, to remit to Saskatchewan, from those amounts received by Canada from the Mineral Disposition Holder, an amount equivalent to the Provincial Mineral Revenues which would have otherwise been payable to Saskatchewan (based upon actual production by such Mineral Disposition Holder) had the Minerals which are the subject of the Replacement Mineral Disposition not been transferred to Canada. (b) In the event that the Mineral Disposition Holder defaults under the terms of the Replacement Mineral Disposition, Canada and the Band agree: (i) to immediately advise Saskatchewan of the default; (ii) to take all reasonable steps to collect the amounts due from the Mineral Disposition Holder and to pay therefrom an amount up to (but not exceeding) the Provincial Mineral Revenues owing by Canada to Saskatchewan pursuant to subsection 5.08(a)(ii5.08(a)(iii) to the date the Replacement Mineral Disposition is terminated; and (iii) upon request of Saskatchewan, to take steps to cancel the Replacement Mineral Disposition if the default has not been remedied prior to receipt of such request from Saskatchewan. (c) In the event that the Replacement Mineral Disposition is terminated as a result of the default by the Mineral Disposition Holder, any of Canada, Saskatchewan or the Band may arrange for a new Replacement Mineral Disposition and Canada agrees to grant the new Replacement Mineral Disposition on terms and conditions generally available in the industry at the time and for a period of time, including associated rights of renewal, similar to those that had been contained in the original Mineral Disposition. In such an event, Canada Canada, agrees to take all necessary steps to create a new Replacement Mineral Disposition and thereafter the obligations of Canada, as outlined under subsections 5.08(a) and (b), shall thereafter continue in respect of the new Replacement Mineral Disposition. (d) In the event that arrangements for a new Replacement Mineral Disposition have not been made within five (5) years from the date of termination of a Replacement Mineral Disposition as provided under subsection (b), no further payments shall be required to be made by Canada to Saskatchewan in respect thereof and Saskatchewan shall forthwith cease to have any rights or beneficial interest in respect of the affected Minerals or potential revenues derived therefrom. (e) Saskatchewan agrees to promptly notify Canada of any changes from time to time in the royalties, taxes and rents which form the basis for the calculation of Provincial Mineral Revenues unless, pursuant to applicable federal legislation, such changes are deemed to apply to the Replacement Mineral Disposition without notice. (f) The terms of any Replacement Mineral Disposition shall include, unless otherwise agreed among Canada, Saskatchewan and the Band, provisions which: (i) to the extent reasonably possible coincide with the term of the Mineral Disposition including all available renewals; (ii) automatically increase the amounts otherwise payable by the Mineral Disposition Holder pursuant to the Replacement Mineral Disposition in accordance with any increases in the royalties, taxes and rents which form the basis for calculation of the Provincial Mineral Revenues; and (iii) automatically terminate the Replacement Mineral Disposition not more than sixty (60) days following any default in payment of any amounts due to be paid by the Disposition Holder to Canada pursuant to the terms thereof. (g) In the event that Canada is entitled, pursuant to the terms of the Replacement Mineral Disposition, to receive amounts which exceed the Provincial Mineral Revenues, then such excess amounts, if any, shall be received by Canada for the use and benefit of the Band. (h) Notwithstanding anything in section 5.08 of this Agreement, the Band agrees that it will not request a Purchase of Minerals under section 5.08 until such time as arrangements satisfactory to all of the Parties are agreed upon which enable the Parties to fulfill their obligations under section 5.08 in its entirety.