OIC Number: 1999 - 338

Date of Order: Jun 17, 1999

Statute: Offshore Petroleum Royalty Act Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Canada) Act Offshore Petroleum Royalty Act

OIC Text: The Governor in Council on the report and recommendation of the Minister responsible for the Offshore Petroleum Royalty Act dated June 17, 1999, pursuant to

Section 100 of

Chapter 28 of the Statutes of Canada, 1988, the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Canada) Act, and clause 22(

b) of

Chapter 9 of the Acts of Nova Scotia, 1987, the Offshore Petroleum Royalty Act, is pleased to: (

a) approve the Sable Offshore Energy Project Royalty Agreement with Mobil Oil Canada Properties, a general partnership, and Sable Offshore Energy Incorporated, a body corporate, in the form set forth in

Schedule "A" attached to and forming part of the report and recommendation or one to like effect; (

b) approve the Sable Offshore Energy Project Royalty Agreement with Shell Canada Limited, a body corporate, and Sable Offshore Energy Incorporated, a body corporate, in the form set forth in

Schedule "B" attached to and forming part of the report and recommendation or one to like effect; (

c) approve the Sable Offshore Energy Project Royalty Agreement with Imperial Oil Resources Limited, a body corporate, and Sable Offshore Energy Incorporated, a body corporate, in the form set forth in

Schedule "C" attached to and forming part of the report and recommendation or one to like effect; (

d) approve the Sable Offshore Energy Project Royalty Agreement with Mosbacher Operating Ltd., a body corporate, and Sable Offshore Energy Incorporated, a body corporate, in the form set forth in

Schedule "D" attached to and forming part of the report and recommendation or one to like effect; (

e) approve the Sable Offshore Energy Project Royalty Agreement with Nova Scotia Resources (Ventures) Limited, a body corporate, and Sable Offshore Energy Incorporated, a body corporate, in the form set forth in

Schedule "E" attached to and forming part of the report and recommendation or one to like effect; (

f) authorize the Minister responsible for the Offshore Petroleum Royalty Act and the Petroleum Directorate to sign the Sable Offshore Energy Project Royalty Agreements referred to in paragraphs (

a) to (e); and (

g) direct the Minister responsible for the Offshore Petroleum Royalty Act and the Petroleum Directorate to hold the agreements referred to in paragraphs (

a) to (

e) in escrow until a production licence is issued to the Sable Offshore Energy Producers for the Sable Offshore Energy Project pursuant to

Chapter 3 of the Acts of 1987, the Canada-Nova Scotia Offshore Resources Accord Implementation (Nova Scotia) Act.

Department(s): Petroleum Directorate