Bill 28 (Legislature 10, Session 1)

L10 S1 7551

Alberta — Bills

Bill N 'O. 28 of 1945. A BILL TO CONFIRM ORDER IN COUNCIL No. 1885-44 DATED THE 6TH DAY OF DECEMBER, 1944, AUTHORIZING THE EXECUTION OF CERTAIN AGREEMENTS BETWEEN THE GOVERNMENT OF THE PROVINCE OF· ALBERTA AND OIL SANDS LiMITED AND BITUMOUNT HOLDING COMP ANY LIMITED. NOTE. The purpose of this Bill is to c'Onfirm an Order in C'Ouncil whi'ch authorized the executi'On 'On behalf 'Of the Government of the three agreements. which are set out in a

Schedule to the Bill. The first agreement is between the Government and Oil Sands Limited and may be summarized as f'Ollows: The Government agrees to dep'Osit with the Pr'Ovincial Marketing B'Oard the sum 'Of Two Hundred and Fifty Thousand D'Ollars far the purpose 'Of -c'Onstructing a plant at Bitum'Ount, Alberta, to separate oil fr'Om oil sands. and to refine the 'Oil. The -construction ,and 'Operation of this plant is to be under the supervision 'Of a B'Oard of Trustees c'Onsisting 'Of tW'O Ministers and a representative 'Of the Company.

The plant is t'Obe c'Onstructed by the Company in accordance with plans and specificati'Ons appr'Oved by the B'Oard 'Of Trustees. The Provincial Marketing B'Oard shall, fr'Om time t'O time, pay the inv'Oices and pay-r'Olls in c'Onnecti'On with the c'Onstructi'On which have been appr'Oved by the Oompany. The C'Ompany is to pay any cost 'Of -construction in excess 'Of Tw'O Hundred and Fifty Th'Ousand Dollars and if the cost is less than that, the difference will be applied 'On the purchase price 'Of the plant under the sec'Ond agreement.

The Government agrees to sell the plant to the Company when -completed f'Or the sum 'Of Two Hundred and Fifty Thousand D'Ollars, the manage) ment and 'Operati'On to remain under the supervisi'On 'Of the Board 'Of Trustees until payment in full under· the agreement of sale. If there is any deflault in the first agreement 'Or the agreement 'Of sale for three months, the G'Overnment may enter int'O possessi'On and 'Operate the plant.

After the c'Om pleti'On of the plant, its 'Operation shall be subjeet t'O the c'Onditions set 'Out in the agreement. (a) .The G'Overnment shaH have the privilege of carrying 'On experiments through the Research C'Ouncil 'Of Alberta or 'Otherwise; it is provided that if any new experimental feature Lis installed in the plant and retained, its cost shall be added t'O the purchase price under the agreement 'Of sale.

ii (

b) If pr'Oduction at the pl'ant is delayed by these ex'peri ments, the Company shall be entitled tD an extension of time fDr completI'On of payments. (

c) If the Research Council devel'OPs ,any new inventiDn or imprDvement in existing patents and 'Obtains a patent therefDr, the GDvernment will grant to the Company aright but nDt an exclusive right t'O make or use in the Province of Alberta the inventi'Ons, etc., described in the patent. The Company agrees to insure the wDrks during c'On s:bruction in the jDint names of the GDvernment and the Company.

The second 'agreement in the 8chedule is an agreement fDr sale from the Government to the Company of the plant and the land described for the sum 'Of Two Hundred and Fifty ThDusand Dollars in ten annual instalments 'Of Twenty-Five Thousand Dollars a year beginning on December 4th, 1946, with interest at the rate of 4% frDm December 4, 1945. The CDmpany 'agrees tD keep the property free of liens 'and taxes and that it will n'Ot dismantle the plant without permission of the Government. There is the usual cDvenant as to insurance ..

PrDvision is made that in 'case 'Of default 'On the part of the Company, the Government may enter intD pOS ses'sion 'Of the property and remove it or sell it with 'Out removing it. Other pr'Ovlisions are cDntained in the 'agree ment enabling the Government to enfDr,ce payment under the agreement notwithstanding it may have taken posses sion, etc. The third agreement in the

Schedule is between the Bitu mount Holding CDmpany Limited and the Government.

This agreement recites that bituminous sands· lease N '0: 3 was granted by the Province t'O LIDyd R'Ogers Champi'On and as'signed by him to BitumDunt H'Olding Company Limited and that the Government required additional se,curity for the carrying out by Oil Sands Limited 'Of its CDvenants under the first two agreements and that the oil sands on 'Or under 424.5 acres shall be avaHahle £'Or us'e by the GDvernment should Oil Sands Limited default in its purchase, ·and the G'Overnment repDsses's the plant, and that the Bitum'Ount C'Ompany had agreed to these things..

The Company then agrees to convey and surrender t'O the Gove'rnment all its title under the Bituminous. Sands Lease N'O. 3 above referred to in the lands des'cribed, therein, with the exception of certain areas described to the intent that the rights 'Of the Oompany 'in the lands surrendered shDuld be merged in the title of the Province 'and extinguished.

The Company fur ther agrees that if Oil Sands, Limited makes default fDr a peri'Od 'Of three months ,in carrying out any of its covenants In the first two 'agreements, it will cDnvey and surrender to the G'Overnment all its interest in the sand lease in further parcels as described to the intent the rights 'Of the Company In respect to Isuch lands shall be merged in the title of the Province and extinguished.

Section 2 'Of the agreement provides that all the covenants under the lease Ishall cDntinue

111 in force in relation to the lands not surrendered and that the rental shaH be payable only in respect of the land not sur rendered.

Section 3 of the agreement provides that when Oil Sands Limited has fully paid the purchase price of the plant as provided by the agreement of sale (referred to above as the seeondagreement), the lands surrendered under para graph (

a) of

section 1 shall again become included in and be subject to the said Bituminous Sands Lease and that the yearly rental shall again be One Dollar per a,cre.

Section 4 is a consent by the Government to two agreements, one between Champion and Oil Sands Limited and one between Champion and Bitumount Holding Company Limited. W. S. GRAY, Legislative Counsel. (This note does not form any lJaTt of the Bill but is offered in explanation of its pTovisions~)

BILL No. 28 of 1945.

An Act to confirm Order in Council No. 1885-44 dated the 6th day of De,cember, 1944, authorizing the Execution of certain Agreements Between the Government of the Prov- ince of Alberta and Oil Sands Limited and Bitumount Holding Company Limited. (Assented to , 1945.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. A certain Order in Council dated the 6th day of December, 1944, and intituled O.C. 1885-44, and the agree m-ents referred to therein which are set out as- the

Schedule to this Act, are hereby amended by Isubstituting the words "Provincial Marketing Board" for the words "Alberta Marketing Board" wherever they appear in the Order in Council or in the said agreements. 2. The said Order in Council and the agreements set out in the

Schedule to the said Order in Oouncil as amended are hereby ratified, validated and confirmed and shall have the same force and effect as if the same had been enacted by this Act. 3. T'his Act shall come into force on the day upon which it is assented to, and upon so coming into force shall be deemed to have been in force at all times since the 6th day of December, 1944.

SCHEDULE Approved and Ordered, (Signed) J. C. BOWEN, Lieutenant Governor. O.C. 1885-44 Edmonton, Wednesday, December 6th, 1944. The Executive Council has had under consideration the report of the Honourable the Acting Minister of Lands and Mines,. dated December 6th, 1944, stating that:

Whereas Oil Sands Limited is a company incorporated under the laws of the Pr'Ovince 'Of Alberta, and is the owner and operator of a plant situate at Bitumount, Alberta, where it separates and refines oil from oil sands and particularly fr'Om the deposits of 'Oil sands in the vicinity of McMurray, Alberta; and

Whereas the Government is int.erested in the development of the natural resources 'Of Alberta, and is desirous of encouraging the development and advancement of a method of extracting oil from the said oil sands and for such purpose through the Research Coun,cil, desires to carry out experi ments t'O improve the process of extraeiing and separating oil from the oil sands in order that full utilization shall be made of these valuable natural resources; and

Whereas the Government proposes to deposit with the Alberta Marketing Board the sum of TW'O Hundred and F-ifty Thousand Dollars ($250,000.00) to be advanced from time to time to Oil Sands Limited in the manner prescribed by an agreement dated the 4th day of December, A.D., 1944, which agreement is attached hereto, f'Or the purpose of con structing a pilot plant for the extraction and refining 'Of oil from the said oil sands; and

Whereas the Government has agreed to sell, and Oil Sands Lim,ited has agreed t'O purchase the said plant for the sum of Two Hundred and Fifty Thousand Dollars ($250,000.00) under the terms andconditi'Ons and on the security set forth in certain 'agreements dated the 4th day of December, A.D., 1944, which said agreements are atta,ched heret.o; and

Whereas by The Post- War Reconstruction Fund Act, being

Chapter 9 of the Statutes 'Of Alberta, 1943, there was created "The Post-War Reconstruction Fund"; and

Whereas by

Section 6 of the said Act it was provided that the said Fund may be applied to the undertaking of such enterp~ises as in the opini'On of the Lieutenant Governor in Council are necessary for the satisfactory development of the Pr'Ovince or of any particular area of the Province; and

Whereas on the 13th day of March, A.D., 1944, the follow ing res'Olution 'Of the Legislative Assembly was passed: "Be it resolved, that this Assembly authorize the Government to erect a plant for the purpose of assisting the Research Council in determining the practicability of the commercial extraction of oil and bitumen pro ducts from the Athabasca Oil sands, with a view to the development of these sands by the Government in the interests of all the people of the Province, if it is found advisable s'O to do; and Be ,it further resolved that the money necessary for such plant he ,taken from the money voted by this Assembly for Post-War Rec'Onstruction Work."; and

Whereas in the opinion of the Lieutenant Governor in Council, the said res'Oluti'On of the Legislative Assembly should be implemented; and

3 ,;Yhereas no statutory authority exists to enable the Government to enter into the said agreements; and

Whereas it is deemed expedient to provide by Order in Council the necessary authority to enter into the said agree ments, 'subj ect to the same being validated at the next Ses sion of the Legislature; Therefore, upon the recommendation of the Honourable the Acting Minister of Lands and Mines, the Executive Council advises that;

(1) The Honourable the Minister of Lands and Mines be and he is hereby authorized on behalf of the Government of the Province of Alberta to enter into the agreements with Oil Sands Limited and Bitumount Holding Company Limited, which are attached hereto;

(2) The Honourable the Provincial Treasurer be and he is hereby authorized to pay to the Alberta Marketing Board out of "The Post-War Reconstruction Fund" standing in his name, the sum of Two Hundred and Fifty Thousand Dollars ($250,000.00) to be disbursed for the purpose of construct ing 'a pilot plant for extracting and refining oil from oil sands on the terms and ,conditions contained in the agree ments attached hereto. (Signed) ERNEST C. MANNING, Chairman. MEMORANDUM OF AGREEMENT made this 4th day of December, A.D., 1944.

Between: The Government of the Province of Alberta, represented herein by the Hon ourable Dr. W. W. Cross, Acting Minister of Lands and Mines (hereinafter called the "Government") of the First Part, and Oil Sands Limited, a company incor porated under the laws of the Province of Alberta (hereinafter called the "Com pany") of the Second Part. Wherea~ the Company is the owner and operator of a p~ant at B~tumount, Alberta, where it separates and refines OIl from OIl sands, and particularly the deposits known as the "oil sands" in the vicinity of McMurray, Alberta. And

whereas the Government is interested in and desires to advance the development of natural resources in Alberta, and for such purpose through the Research Council of Alberta, desires to carry out experiments for the purpose

4 of improving the process of separation of oil from oil sands in order that full utilization shall be made of these valuable natural resources. And

whereas the Government in conjunction with the Company proposes to construct a pilot plant to extract and refine the oil from the ,said oil sands. And

whereas the Company has agreed to purchase from the Government and put into operation such pilot plant upon and subject to the agreements and ,conditions hereinafter set forth. Now it is hereby agreed that in consideration of the premises and of the agreements, conditions and stipulations hereinafter set forth as follows: 1.

The Government agrees that it shall forthwith deposit with the Alberta Marketing Board, the sum of Two hundred and fifty thousand ($250,000.00) Dollars for the purpose of constructing a plant for the separation of oils from oil sands, and for the ref'ining of oil therefrom into fuel oil, diesel oil and asphalt at Bitumount, Alberta, upon the following premises, that is to say: All that parcel or tract of land, situate lying and being in the Ninety-seventh

(97) Township, in the Eleventh

(11) Range, West of the Fourth

(4) Meridian, in the Province of Alberta, Dominion of Canada, and being composed of: All that portion of the South Half of

Section One (1) of the said Township, 'as shown upon a map or plan O'f survey of the said Township approved and confirmed at Ottawa on the Twenty-seventh (27) day of June, Nineteen Hundred and Sixteen (1916), by Edouard Deville, Surveyor General of Dominion Lands and on file in the Department of Lands and Mines at Edmon ton, the said portion being more particularly described as follows: Commencing at a pO'int on the right bank of the Athitbas,ca River 70 feet perpendicularly distant south erly from the north boundary of the said South Half of

Section One (1), thence ,ea,sterly and parallel with the said north boundary a distance of 1,000 feet, thence southerly at right angles to' the last described course a distance of 1,000 feet, thence westerly at right angles to the last described ,cO'urse to the intersection with the said right bank of the Athabasca River, thence in a north-easterly direction along the said right bank to the point of commencement. 2. The construction and operation of the said plant, shall be under the supervision of a Board of Trustees, consisting of twO' Ministers of the Crown appO'inted by the Government and Lloyd R. Champion, President O'f ,the Company, or some other persO'n appointed by it.

5 3. The decision of the majority of the Board shall be the de0ision of the Board, on any question or matter to be decided by the Board of Trustees under this agreement. Each member of the Board shall appoint a proxy to act for and repre"sent him in his absence. 4.

The plant, with an estimated ,capacity of two hundred and fifty (250) barrels of oil per~day separated and refined, shall be constructed by the Company in a workmanlike man ner and with the best materials obtainable, in accordance with plans and specif,ications based upon the present plant and processes of the Company, which said plans and specifi cations, when prepared and approved by the Board of Trustees, shall be annexed hereto and form part of this agreement. 5.

The Alberta Marketing Board shall from time to time pay the invoices and pay-rolls received in connection with the construction of the plant which have been approved by the Company or its authorized representatives. 6. The Government agrees that it will instruct the Alberta Marketing Board to endeavour to as,sist the Company in effecting purchases of machinery, equipment, materials and supplies for the construction of the plant, and that any discounts obtained by the Marketing Board in effecting such purchases will be for the benefit of and passed on to the Company. 7.

The Company agrees that if the cost of constructing and erecting the said plant exceeds Two hundred and fifty thousand ($250,000.00) Dollars, it will provide for and pay such portion of the 'cost of the plant as exceeds the said sum of Two hundred and fifty thousand ($250,000.00.) Dollars.

If the cost of ,constructing the said plant is less than Two hundred and fifty thousand ($250,000.00) Dollars, the Government agrees to apply the difference between the actual cost of ,construction of the ,said plant and Two hundred and fifty thousand ($250,000.00) Dollars, upon the first payments of the purchase price of the plant under the agreement to purchase, annexed hereto, and forming part of this agreement. 8.

The Government hereby agrees to sell to the Company, and the Company agrees to purchase from the Government, the said plant when completed for the sum of Two hundred and fifty thousand ($250,000.00) Dollars, such sale to be upon the condition that the management and operation of the ,said plant shall be under the supervision of the Board of Trustees mentioned herein, until such time as the purchase price has been fully paid and satisfied, and upon the terms and conditions set forth in the agreement of sale annexed hereto. 9.

The Company agrees that in case of default of any of the terms of this agreement, or of the agreement of sale annexed hereto, if the default continues for the space of three calendar months or such further time as the Board

6 of Trustees shall determine, the Government, its servants, agents or n'Ominees, shall thereupon be entitled to enter into possession 'Of the ,said premises for the purpose of operating the said plant. This clause shall ,cease to be operative when all payments due to the Government under this agreement and the :agreement of sale annexed hereto have been made. 10. The operation of the said plant by the C'Ompany after completion shall be upon and subject to the following terms andcondi tions : (

a) The Government at all times shall have the right and privilege of carrying on experiments at the said plant through the Research Council of Alberta or other wise, in order to test any new processe,s of separation, either by ,changing the present method in whole or in part or by the installation of a completely new process, and it is agreed that all such experimental work shall be carried 'On by the Research Council at its expense; provided however that if 'any new experimental feature is installed in the said plant during the course of such experiments 'and is retained in its operation, the Com pany will pay for the cost of such new feature, which ,cost shall be added to the said purchase price of Two hundred and fifty thousand ($250,000.00) Dollars and the subsequent yearly payments on a'ocount therof increased proportionately; provided further that if any dispute arises as to whether any new experimental feature shall be installed in the said plant under the provisions of this paragraph, the dispute shall be decided by the Board of Trustees 'and their decision on the matter shall be final; (

b) If, in the course of carrying out the said experi ments, production by the Company at the said plant is delayed, the Company ,shall be entitled to a reasonable extension of time for the completion of its payments on account of the said purchase price. The amount of the extension required, due to delay in production, shall be determined by the Board of Trustees; (

c) The Government agrees that if the Research C'Ouncil develops any new invention or inventions for or in connection with the process of separating oil from the said sands or any improvement or improvements to any presently existing patent or patents for or in ,connection with the process of s,eparating oil from the s'aid ,sands and obtains a patent or patents for such invention or inventions 'Or improvement.or improvements, it will and it does hereby grant to the Company the right, but not the exclusive right, to make anywhere in the Province of Alberta and use anywhere in the Province of Alberta, the invention or inventions or improvement or improve ments described in such patents from the date thereof until the end of the term for which the respective patent is granted including any extension; provided however that the Company agrees that it will not

7 assign, transfer, license or permit any other person or Company to have the right to use the said invention or inventions, or ,improvement or improvements described in the patents, unless the Company is a subsidiary of Oil Sands Limited or is a company in which Lloyd R. Champion owns the majority of the stock. 11.

The Company shall insure the works and keep them insured until they are ,completed against loss or damage by fire in the joint names of the Government and the Company for the full extent insurable of the works executed, and shall deposit with the Provincial Government Purchasing Agent, the policies and receipts for payment paid for such Insur ance; and in default the Government may insure the works and deduct the premium paid from any moneys due or which may become due.

All moneys received under such policies are to be paid to the Company by instalments on the certifi cate of the Board of Trustees and to be applied in or towards the rebuilding or reparation of the works destroyed or injured. The Company shall as soon a,s a ,claim under the policy is settled, proceed with all due diligence with the rebuilding or reparation and shall not be entitled to any payment in respect thereof other than the said moneys received. 12.

All obligations of the Company under this agreement shall cease and determine when all moneys payable to the Government under this agreement and the agreement of sale annexed hereto, have been fully paid and satisfied.

In witness whereof the Honourable Dr. W. W. Cross, Act ing Minister of Lands and Mines has hereunto set his hand on behalf of the Province of Alberta, and this agreement has been executed under the corpO'rate seal of Oil Sands Limited as attested by the hands of its proper officers thereunto duly authorized, the day and year first above wrHten. Signed on behalf of the Government of Alberta, by the Honourable Dr. W. W. Cross, Acting Minister of Lands and Mines, in the presence of W. J. Wilson. Signed and Sealed on behalf of Oil Sands Limited by L. R. Champion and G. W. G.

McConachie the proper of ficers of the Company duly authorized in that behalf. W. W. CROSS OIL SANDS LIMITED L. R. Champion, Pres. G. W. G. McConachie, Director [SEAL]

8 AGREEMENT made in triplicate this 4th day of December, One thousand nine hundred and forty-four (A.D. 1944). Between: The Government of the Province of Alberta, represented herein by the Hon ourable Dr. W. W.

Cross, Acting Minister of Lands· and Mines (Hereinafter ,called "The Vendor") of the First Part and Oil Sands Limited, a Company incor porated under the laws of the Province of Alberta (hereinafter called "the Pur chaser") of the Second Part Witnesseth that in ·consideration of the covenants, con ditions and stipulations herein contained, and the payments to be made by the Purchaser as hereinafter specified, the strict performance of each and every of the said covenants, conditions and stipulations, as well as the making by the Pur'chaser of the said payments being hereby expressly declared conditions precedent, and of the essence of this Agreement, the Vendor agrees to sell to the Purchaser, and the Purchaser agrees to purchase from the Vendor the oil sepa,ation and refining plant mentioned in the agreement of even date herewith and hereto annexed and situate on the following lands and premises, the property of the Vendor: All that parcel or tract of land, situate, lying and being in the Ninety-seventh

(97) Township, in the Eleventh

(11) Range, West of the Fourth

(4) Meridian, in the Province of Alberta, Dominion of Canada, and being composed of: All that portion of the South Half of

Section One (1) of the said Township, as shown upon a map or plan of survey of the said Township approved and confirmed at Ottawa on the Twenty-seventh (27th) day of June, Nineteen Hundred and Sixteen (1916), by Edouard Deville, Surveyor General of Dominion Lands and on file in the Department of Lands and Mines at Edmon ton, the said portion being more particularly described as follows: Commencing at a point on the right bank of the Athabasca River 70 feet perpendicularly distant south erly from the north boundary of the said South Half of

Section One (1), thence easterly and parallel with the said north boundary a distance of 1,000 feet thence southerly at right angles to the last des:cribed course a distance of 1,000 feet, thence westerly at right angles to the last described course to the intersection with the said right bank of the Athabasea River thence in a north-easterly direction along the said right bavk to the point of commencement;

9 at and for the price or sum of Two Hundred and Fifty thousand ($250,000.00) Dollars of la~vful mone;v of Canada, payable in the manner and on the tImes here~nafter men tioned, that is to say: The sum of Twenty-fIve thousand ($25,000.00) Dollars on the 4th day of December, A.D., 1946, and the balance of such purchase' price as follows: The sum of $25,000.00 on the 4th day of De,cember, A.D., 1947 The sum of $25,000.00 on the 4th day of December, A.D., 1948 The sum of $25,000.00 on the 4th day of De,cember, A.D., 1949 The sum of $25,000.00 on the 4th day of December, A.D., 1950 The sum of $25,000.00 on the 4th day of De,cember, A.D., 1951 The sum of $25,000.00 on the 4th day of De,cember, A.D., 1952 The sum of $25,000.00 on the 4th day of December, A.D., 1953 The sum of $25,000.00 on the 4th day of De,cember, A.D., 1954 The ,sum of $25,000.00 on the 4th day of December, A.D., 1955 at the office of the Vendor, Administration Building, Ed monton, Alberta.

The Purchaser shall be at liberty to pay the whole or any part of the purchase price at any time without notice or bonus.

The Purchaser covenants with the Vendor to pay to the Vendor said purchase price in the manner and on the days and times hereinbefore mentioned, together with interest on all of the said purchase price from time to time remaining unpaid at the rate of four per cent. (4%) per annum to be computed from the 4th day of December, A.D., 1945, and to be payable upon the same days as the principal of said purchase price is made payable until the full amount of the said purchase price has been fully paid and satisfied; if any instalment is not paid at the time and place specified, the ent,ire amount of the principal and interest unpaid under the agreement shall become due and payable forthwith.

Title to the property shall not pass to the Purchaser until the entire purchase price and interest (and all costs and expenses) are fully paid in cash. The parties hereto agree that for the purpose of this agreement, the oil separation and refining plant, machinery and equipment will be deemed to be chaHels, and not fix tures, notwithstanding that the plant may be affixed to the land and premises upon which it is constructed. No transfer, renewal, extension or assignment of this con tract by the Yendor or any interest therein, or loss, injury,

10 confiscation or destruction of the property, shall release the Purchaser from his obligation hereunder, and the assignee shall be entitled to all the rights of the Vendor.

If the Purchaser makes default in any payment, or fails to comply with any condition of this contract, or any proceed ings in bankruptcy, receivership or insolvency be instituted against the Purchas,er or his property, or the property is confiscated or misused, or the Vendor deems the property in danger of misuse or confiscation, the full amount shall, at the election of the Vendor (notice of which election is hereby waived by the Purchaser) be immediately due and payable. No condition, warranty, or representation has been made by the Vendor, its officers, or agents, unless endorsed hereon in writing.

The word "property" wherever used in this 'contract, shall in/clude any equipment, ma,chinery, additions, alterations arid repairs made to the plant by the Purchaser. The Purchaser shall not at any time suffer or permit any charge or lien whether possessory or otherwise, to exist against the property, and shall keep the property free of all taxes, liens and encumbrances, shall not use it illegally or improperly, shall not remove it from its present location or dismantle the plant without permission of the Vendor, and shall not transfer any interest in the property of this con tract.

The Purchaser agrees to insure the property against fire, in the joint names of the Vendor and the Purchaser, to the full extent insurable of the plant, and if the Purchaser fails to pay the premium or any of them, the Vendor may pay any premium and add the same to the amount of the purchase price. The proceeds of any insuran,ce, whether paid by way of loss, injury, confiscation, return prem1ium or otherwise, shall, at the option of the Vendor, be applied towards the replacement of the property or payment of this obligation.

Time is the essence of this contract, and if the Purchaser makes default in complying with any of the terms hereof for the space of three calendar months, or such further time as the Board of Trustees (referred to in the agreement a ttached hereto) shall determine, or if the property is con :Discated or misused or the Vendor deems the property in danger of misuse or confiscation, the Vendor may without demand and without refunding any part of the purchase price already paid, take immediate possession of the prop erty, and for such purpose the Vendor may enter upon any premises where the property may be, and remove it or may sell or dispose of the property without removing it.

The Vendor may re-sell the property so retaken at public or private sale with or wHhout notice to the Purchaser and with or without having the said property at the place of sale, and upon such terms and in such manner as the Vendor may determine, and to that end may make such repairs. as the

11 Vendor deems necessary. The Vendor may bid at any public sale. From the proceeds of any such sale the Vendor may deduct all expenses for retaking, repairing and selling the property, including the costs of the Vendor's solicitor as between solicitor and client, and the balance thereof shall be applied to the amount due. Any surplus shall be paid over to the Purchaser. In -case of deficiency the Purchaser shall pay it, with interest at four (4) per cent.

I t is agreed that the repossesion and retention, sale or right thereto shall not affect the Purchaser's liability until full payment has been made in cash, or the Vendor's right to sue the Purchaser at any time for any moneys due and payable whether due and payable by reason of failure or default on the part of the Pur,chaser in fulfilment of any of the terms, conditions, covenants or provisions of this con tract.

The Vendor shall have the right to enforce one or more remedies hereunder successively or concurrently and such action shall not operate to estop or prevent the Vendor from pursuing any further remedy which he may have here under. Any provisions of this contract prohibited by law of any Province shall, as to that Province, be ineffective to the extent of such prohibition without invalidating the remain ing provisions of the contract. This agreement shall enure to the benefit of and be enforceable by the parties hereto, and their exe,cutors, ad ministrators (successors) and assigns, respectively.

In witness whereof the Honourable Dr. W. W. Cross, Acting Minister of Lands and Mines has hereunto set his hand on behalf of the Province of Alberta, and this agree ment has been exe-cuted under the -corporate seal of Oil Sands Limited as attested by the hands of its proper officers there unto duly authorized, the day and year first above written. Signed on behalf of the Government of Alberta, by the Honourable Dr. W. W. W. W. CROSS Cross, Acting Minister of Lands and Mines, in the presence of H. J. Wilson. Signed and Sealed on behalf of Oil Sands Limited by L. R. Champion and G. W. G.

McConachie, the proper of ficers of the Company duly authorized in that behalf. Canada PROVINCE OF ALBERTA To Wit: OIL SANDS LIMITED L. R. Champion, Pres. G. W. G. McConachie, Director. [SEAL] I, William Warren Cross, Acting Minister of Lands and Mines for the Province of Alberta, of the City of Edmonton, in the :-~aid Province of Alberta, make oath and say:

12 1. I am the Vendor of the plant and chattels referred to in the within ,copy of the written agreement hereto. 2. That the copy of the within agreement truly sets forth the agreement between the parties mentioned therein, and that the agreement therein set forth is bona fide and not to protect the goods in question against the creditors of the said Purchaser. Sworn hefore me at the } City of Edmonton in the Province of Alberta this 4th day of December, A.D., 1944. LUCIEN MAYNARD A Commissioner for Oaths in and for the Province of Alberta. W. W. CROSS Agreement made this 4th day of December, A.D., 1944.

Between: Bitumount Holding Company Limited (hereinafter called the "Company") of the First Part, and The Government of the Province of Alberta, represented herein by the Hon ourable Dr. W. W. Cross, Acting Min ister of Lands and Mines (hereinafter called the "Government") of the Se,cond Part.

Whereas by Bituminous Sands Lease, Number 3, dated the 1st day of January, 1943, His Majesty the King in the right of the Province of Alberta, granted unto Lloyd Rogers Champion, the exclusive right and privilege to mine, quarry, work, remove and dispose of bituminous sands within and under that parcel or tract of land more particularly described in the said Bituminous Sands Lease, upon the terms and conditions therein set forth in detail. And

whereas by an agreement in writing dated the 4th day of December, 1944, between Lloyd Rogers Champion and the Company, Champion transferred and assigned to the Company on the terms and conditions therein set forth his right, title and interest in the said Bituminous Sands Lease, Number 3. And

whereas the Government is about to enter into two agreements bearing even date herewith providing respec tively for the construction and for the sale by the Govern ment and the purchase by Oil Sands Limited of a plant at

13 Bitumount, Alberta, for the separation and refining of oil from oil sands, hereinaft€r called the "Government Agree ments" . And

whereas the Government requires, first, additional security for the carrying out by Oil Sands Limited of its covenants and obligations under the Government agreements and secondly, that the oil sands within, upon or under 424.5 acres more or less, hereinafter described, shall be available for use by the Government, its successors and assigns, should Oil Sands Limit€d default in its pur,chase of the said plant and the Government repossesses the said plant and the Company has agreed to provide such security in this agree ment and also to make provision in this agreement that the oil sands within, upon or under the said 424.5 acres more or less shall be available for use by the Government, its successors and assigns, in the event aforesaid.

Now therefore this agreement witnesseth: 1. In consideration of the Government entering into the Government agreements the Company covenants and agrees:-

(0) That it will and it does hereby as additional security for the carrying out by Oil Sands Limited of its covenants and obligations l under the Government agreements, convey and surrender to the Government all of its right, title and interest under the said Bituminous Sands Lease, Number 3, in all the lands described therein, saving and excepting the following: All those parcels or tracts of land, situate, lying and being in the Ninety-seventh

(97) Township, in the Eleventh

(11) Range, West of the Fourth

(4) Meridian, in the Province of Alberta, Dominion of Canada, and being composed of: All those portions of

Section One (1) and the South East quarter of

Section Twelve (12) of the said Town ship, as shown upon a map or plan of survey of the said Township approved and confirmed at Ottawa on the Twenty-seventh (27) day of June, Nineteen Hundred and Sixteen (1916) by Edouard Deville, Surveyor General of Dominion Lands, and on file in the Depart ment of Lands and Mines at Edmonton, and which portions lie to the East of the right bank of the Atha basca River as shown upon the said plan of survey containing Four hundred and forty-six and fifty hundredths (446.50) acres, more or less. All that parcel or tract of land, situate, lying and being in the Ninety-sixth

(96) Township, in the Eleventh

(11) Range. West of the Fourth

(4) Meridian in the Province of Alberta, Dominion of Canada, and being composed of: All that portion of the North half of

Section Thirty ~ix (36) of the said Township, as shown upon a map or plan of survey of the said Township approved and con-

14 firmed at Ottawa on the Third (3) day of May, Nine teen Hundred and Sixteen (1916) by Edouard Deville, Surveyor General of Dominion Lands, and on file in the Department of Lands and Mines at Edmonton, which portion lies to the East of the right bank of the Atha basca River as shown upon the said plan of survey containing Two hundred and forty and ten hundredths (240.10) acres, more or less. AI1 those parcels or tracts of land, situate, lying and being in the Ninety-seventh

(97) Township, in the Tenth

(10) Range, West of the Fourth

(4) Meridian, in the Provin,ce of Alberta, Dominion ,of Canada, and being com posed of: All ,those portions of the N orth- West quarter of

Section six (6), Legal Subdivisions Three (3), Four (4), Six (6), Eleven (11), Thirteen (13) and Fourteen (14) of

Section seven (7) and Legal Subdivision Four (4) -of

Section eighteen (18) of the said Township, as shown upon a map or plan of survey of the said Town ship approved and confirmed at Ott.awa on the Eighteenth (18) day of August, Nineteen Hundred and Sixteen (1916), by Edouard Deville, Surveyor General of Dominion Lands, and on file in the Department of Lands and Mines at Edmonton, containing Four hundred and forty (440) acres, more or less.

The lands herein described containing by adme.asure ment One thousand, one hundred and twenty-six and sixty hundredths (1126.60) acres, more or less. to the intent that ,the right of the Company in respect of the lands hereby conveyed and surrendered may merge and be extinguished in the freehold of the hereditaments. (

b) That forthwith when Oil Sands Limited has d,efaulted in the -carrying out of any of its covenants under the Government agreements for the period of three (3) months or such further period -as may be determined by the Board of Trustees referred to in the Government agreements and the Government has entered into possession of the premises described therein, it will convey and surrender to the Government finally and absolutely and without any right of redemp tion all of its right, title and interest under the said Bituminous Sands Lease, Number 3, in the following lands, namely: All that parcel or tract of land, situate, lying and being in the Ninety-seventh

(97) Township, in the Eleventh

(11) Range, West of the Fourth

(4) Meridian, in the Province of Alberta, Dominion of Canada, and being composed of: All that portion of the South half of

Section one (1) of the said Township, .as shown upon a map or plan of survey of the said Township approved and confirmed at Ottawa on the Twenty-seventh (27) day of June,

15 Nineteen Hundred and Sixteen (1916), by Edouard Deville Surveyor General of Dominion Lands, and on file in the Department of Lands and Mines at Edmon ton, which portion lies to the East of the right bank of the Athabasca River excepting thereout the most north erly seventy (70) f.eet in width throughout thereof, containing One hundred and eighty-four and forty hundredths (184.40) acres, more or less; All that parcel or tract of land, situate, lying and being in the Ninety-sixth

(96) Township, in the Eleventh

(11) Range, West of the Fourth

(4) Meridian, in the Province of Alberta, Dominion of Canada, and being composed of: All that portion of the North half of

Section thirty six (36) of the said Township, as shown upon a map or plan of survey of the said Towns4ip, approved and confirmed at Ottawa on the third (3) day of May, Nineteen Hundred and Sixteen (1916), by Edouard Deville, Surveyor General of Dominion Lands and on file in the Department of Lands and Mines at Edmon ton, which portion lies to the East of the right bank of the Athabas,ca River as shown upon the said plan of survey; eontaining Two hundred and forty and ten hundredths (240.10) acres, more or less; The lands herein described containing by admeasure ment Four hundred and twenty-four and fifty hund redths (424.50) acres, more or less. to the intent that the rights of the Company in respeet to the lands so to be conveyed and surrendered may merge and be finally and absolutely extinguished in the freehold of the hereditaments to be so surrendered. 2.

The parties hereto agree and declare that notwith standing the said surrenders all the covenants and ,condi tions in the said Bituminous Sands Lease, Number 3, shall continue in force in relation to the lands not surrendered, but that the yearly rental of One dollar ($1.00) per acre payable by the lessee thereunder shall, after surrender, be payable only in respect of the lands not surrendered. 3.

The Government covenants and agrees that when Oil Sands Limited has fully paid the purchase price of the said plant payable by it under the said agreement for sale by the Government and the purchase by Oil Sands Limited of the said plant the lands surrendered by paragraph I(

a) hereof shall forthwith become and be again sub.ie,ct to the terms of the said Bituminous Sands Lease, Number 3, and included in the lands therein described and both parties agree that the yearly rental payable thereunder shall then again be One dollar ($1.00) for each and every acre of land now described therein.

16 4. The Government hereby consents to:- (

a) The amendment of the sub-lease by Lloyd Rogers Champion to Oil Sands Limited dated the 21st day of April, 1943, as provided in an agreement in writing between Oils Sands Limited and Champion, dated the 30th day of November, 1944; (

b) The assignment by Champion to the Company of his right, title and interest in the said Bituminous Sands Lea5le, Number 3, as provided in an agreement in writ ing between Champion and the Company dated the 4th day of December, 1944.

In witness whereof Bitumount Holding Company Limited has hereunto affixed its corporate seal as attested by the hands of its proper officer thereunto duly authorized and the Honourable Dr. W. W. Cross, Acting Minister of Lands and Mines has hereunto set his hand on behalf of the Province of Alberta, the day and year first above written. Signed and Sealed on behalf of Bit u m 0 u n t Holding Company Limited by L. B. Champion and Ruby Champion, the proper of ficers of the Company duly authorized in that behalf. Signed on behalf of the Government of Alberta by the Honourable Dr. W. W.

Cross, Acting Minister of Lands and Mines. in the presence of H. J. Wilson. BITUMOUNT HOLDING COMPANY LIMITED· L. R. Champion, Pres. Ruby Champion, Secretary. W. W. Cross

FIRST SESSION TENTH LEGISLATURE 9 GEORGE VI 1945 BILL

An Act to confirm Order in Council No. 1885-44 dated the 6th day of December, 1944, 'authorizing the execution of certain Agreements Between the Government of the Province of Alberta and Oil Sands Limited and Bitumount Holding Company Limited. Recei ved and read the Firsttime .................. . Second time ..................................... . Third time. HON. MR. FALLOW. EDMONTON: A. Shnitka, King's Printer 1946 Title: 1945 (10th, 1st) Bill 28,

An Act to confirm Order in Council No. 1885-44 dated the 6th Day of December, 1944, authorizing the Execution of certain Agreements Between the Government of the Province of Alberta and Oil Sands Limited and Bitumount Holding Company Limited

Document details

Collection	Alberta — Bills
Citation	L10 S1 7551
Type	bill
Volume / chapter	L10 S1 7551
Language	en
Format	json
Source	PROVINCIAL
Identifier	102b50817896075f61a96babe2852d658f07e2a6

Source file is stored in the law ingest library (json).