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EXHIBIT 10.9
[ALBERTA LOGO]
RESOURCE DEVELOPMENT
PETROLEUM AND NATURAL GAS LEASE
No. 0499120101
Term Commencement Date:
1999 December 02
Lessee:
GEOCAN ENERGY INC. 70.0000000%
undivided interest
TIMBERWOLF ENERGY INC. 20.0000000%
undivided interest
TIMBERWOLF RESOURCES LTD 10.0000000%
undivided interest
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WHEREAS Her Majesty is the owner of the minerals in respect of which
rights are granted under this Lease;
THEREFORE, subject to the terms and conditions of this Lease, Her Majesty
grants to the Lessee, insofar as Her Majesty has the right to grant the same,
the exclusive right to drill for and recover the Leased Substances within the
Location, together with the right to remove from the Location any Leased
Substances recovered, for the term of five years computed from the Term
Commencement Date and, subject to the Mines and Minerals Act, for so long after
the expiration of that term as this Lease is permitted to continue under that
Act.
RESERVING AND PAYING to Her Majesty,
(a) in respect of each year during which this Lease remains in effect, a
clear yearly rental computed at the rate prescribed by, and payable in
accordance with, the Mines and Minerals Act, and
(b) the royalty on all Leased Substances recovered pursuant to this Lease,
that is now or may hereafter from time to time be prescribed by, and
that is payable in accordance with, the Mines and Minerals Act, such
royalty to be calculated free of any deductions except those that are
permitted under the Mines and Minerals Act.
1(1) In this Lease, a reference to the Mines and Minerals Act or to any other
Act of the Legislature of Alberta referred to in section 2(2)(b) of this
Lease shall be construed as a reference to
(a) that Act, as amended from time to time,
(b) any replacement of all or part of that Act from time to time enacted
by the Legislature, as amended from time to time, and
(c) any regulations, orders, directives or other subordinate legislation
from time to time made under any enactment referred to in clause (a)
or (b), as amended from time to time.
(2) In this Lease,
(a) "Her Majesty" means Her Majesty in right of Alberta, as represented by
the Minister of Resource Development of the Province of Alberta;
(b) "Leased Substances" means the minerals described under the heading
"Description of Location and Leased Substances" in the Appendix to
this Lease;
(c) "Location" means the subsurface area or areas underlying the surface
area of the Tract and described in the Appendix to this Lease under
the heading "Description of Location and Leased Substances";
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(d) "Term Commencement Date" means the date shown on the first page
of this Lease as the Term Commencement Date;
(e) "Tract" means the tract or tracts of land described under the
heading "Description of Location and Leased Substances" in the
Appendix to this Lease.
2. This Lease is granted upon the following conditions:
(1) The Lessee shall pay to Her Majesty the rental and royalty reserved
under this Lease.
(2) The Lessee shall comply with the provisions of
(a) the Mines and Minerals Act, and
(b) any other Acts of the Legislature of Alberta that prescribe, apply
to or affect the rights and obligations of a lessee of petroleum
and natural gas rights that are the property of Her Majesty, or
that relate to, apply to or affect the Lessee in the conduct of its
operations or activities under this Lease.
(3) The provisions of the Acts referred to in subsection (2) of this
section are deemed to be incorporated in this Lease.
(4) In the event of conflict between a provision of this Lease and a
provision referred to in subsection (2) of this section, the latter
provision prevails.
(5) The Lessee shall not claim or purport to exercise any rights,
prerogatives, privileges or immunities that would otherwise exempt the
Lessee from compliance with any of the provisions of the Mines and
Minerals Act or of any other Act of the Legislature of Alberta referred
to in subsection (2)(b) of this section.
(6) Natural gas produced pursuant to this Lease shall be used within
Alberta unless the consent of the Lieutenant Governor in Council to
its use elsewhere is previously obtained.
(7) The Lessee shall keep Her Majesty indemnified against
(a) all actions, claims and demands brought or made against Her Majesty
by reason of anything done or omitted to be done, whether
negligently or otherwise, by the Lessee or any other person in the
exercise or purported exercise of the rights granted and duties
imposed under this Lease, and
(b) all losses, damages, costs, charges and expenses that Her Majesty
sustains or incurs in connection with any action, claim or demand
referred to in clause (a).
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(8) The use in this Lease of the word "Lessee", "Lease", "Leased Substances"
or "rental," or of any other word or expression,
(a) does not create any implied covenant or implied liability on the part
of Her Majesty, and
(b) does not create the relationship of landlord and tenant between Her
Majesty and the Lessee for any purpose.
(9) This Lease is also subject to the special provisions, if any, contained in
the Appendix to this Lease.
EXECUTED on behalf of the Minister of Resource Development of the Province of
Alberta at Edmonton, Alberta.
/s/ XXX [ILLEGIBLE]
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For Minister of Resource Development
on behalf of Her Majesty
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APPENDIX
TO
5 YEAR PLAINS PETROLEUM AND
NATURAL GAS LEASE NO. 0499120101
AGGREGATE AREA:
80 HECTARES
DESCRIPTION OF LOCATION AND LEASED SUBSTANCES:
4-01-049: 14SW,L14
PETROLEUM AND NATURAL GAS TO THE BASE OF THE MANNVILLE GRP
AS DESIGNATED IN DRRZD 4
INTERVAL: 2 557.00 - 2 985.00 FEET
KEY WELL: 00/06-16-041-08W4/0
LOG TYPE: INDUCTION ELECTRICAL
SPECIAL PROVISIONS:
NIL
