Document:

EX-10.16

 

Exhibit 10.16

Summary of New Jersey Resources Corporation (NJR) Non-Employee Director Compensation

	 	 	 	 	 
	Annual Retainer Fee:
	 	$25,000 cash (paid quarterly)
	 
	 
	 	800 shares of NJR Common Stock (paid annually)
	 
	 
	Lead Non-Management Director Fee:

	 	 	$10,000	 
	(effective November 15, 2006)
	 	 	 	 
	 
	Annual Retainer for Committee Chairs:
	 	 	 	 
	Audit Committee Chair:
	 		$10,000	 
	Executive Committee Chair:
	 	 	$10,000	 
	Financial Policy Committee Chair:
	 	 	$5,000	 
	Leadership Development and Compensation Committee Chair:
	 	 	$5,000	 
	Nominating/Corporate Governance Committee Chair:
	 	 	$5,000	 
	 
	Committee Meeting Fees:

	 	$1,500 per meeting attended	 
	(effective January 1, 2007)
	 	 	 	 

Other Information:

     Directors who are not officers of the Company or its subsidiaries do not receive additional
compensation for serving on the Board of Directors. Share ownership guidelines have been
established that require each non-employee director to own 4,000 shares of the Company’s common
stock. Each non-employee director has five years from the date of his or her election to meet such
share ownership guidelines.

     Non-employee directors may elect to defer receipt of retainer and committee fees paid in cash
or in stock or elect to be paid in the form of Phantom Stock Units. Non-employee directors’
compensation is paid based upon a January to December annual period. All directors are reimbursed
for any out-of-pocket expenses incurred in attending Board or Committee meetings.exv10w12

 

EXHIBIT 10.12

OVERBURDEN REMOVAL AND

MINING SERVICES CONTRACT

#400472

[***]
— Information marked with this symbol has been omitted pursuant
to a request for confidential treatment and has been filed
separately with the Securities and Exchange Commission.

 

 

OVERBURDEN REMOVAL AND

MINING SERVICES CONTRACT

SECTION “A” – AGREEMENT

 

 

INDEX

	 	 	 	 	 
	1.0 DOCUMENTS
	 	 	3	 
	2.0 PRECEDENCE
	 	 	4	 
	3.0 SCOPE OF WORK
	 	 	4	 
	4.0 CONTRACT PRICE
	 	 	4	 
	5.0 PRIME CONTRACTOR
	 	 	4	 
	6.0 INTERPRETATION
	 	 	4	 
	7.0 GOVERNING LAW
	 	 	5	 
	8.0 AMENDMENT
	 	 	5	 
	9.0 TERM
	 	 	5	 
	 
	 	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “A” – Agreement
	Contract Number: 400472
	 	Page 2 of 6

 

 

OVERBURDEN REMOVAL AND MINING SERVICES AGREEMENT

CONTRACT Number: 400472

THIS AGREEMENT is dated effective the 17th day of November, 2004.

BETWEEN:

CANADIAN NATURAL RESOURCES LIMITED,

a corporation under the laws of the Province of Alberta

and having an office in Calgary, Alberta;

Suite 2500, 855 – 2nd Street S.W.

Calgary, Alberta T2P 4J8

(hereinafter referred to as “Owner”),

And

NORAMAC VENTURES INC.

a corporation under the laws of the Province of Alberta

and having an office in Acheson, Alberta;

Zone 3 Acheson Industrial Area

2- 53016 Hwy. 60

Acheson, Alberta T7X 5A7

(hereinafter referred to as “Contractor”)

WHEREAS Owner wishes to engage Contractor to provide Overburden Removal and specified mining
services in respect of the development for and operation of the Horizon Oil Sands Project;

AND WHEREAS Contractor has agreed to provide such Overburden Removal and mining services to Owner
in accordance with the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, the
Parties hereby covenant and agree as follows:

	1.0	 	DOCUMENTS
	 
	 	 	The Agreement between the Owner and Contractor shall consist of the following documents,
and the Specifications, Drawings, Attachments and Exhibits referred to therein, all of
which by this reference are incorporated herein and made part of this Agreement:
	 
	 	 	Section “A” Agreement
	 
	 	 	Section “B” Terms and Conditions
	 
	 	 	Section “C” Scope of Work
	 
	 	 	Section “D” Compensation
	 
	 	 	Section “E” Attachments
	 
	 	 	This Agreement supercedes all other communications, representations, negotiations,
agreements, documents or understandings, either written or oral, among the Parties relating
to the subject matter hereof except the Confidentiality Agreement and the Prime Contractor
Agreement, both included in Section “E” – ATTACHMENTS, which shall remain in full force
and effect in accordance with each of their terms. The provisions contained in any and all
documents and agreements collateral hereto shall at all times be
read subject to the provisions of this Agreement and, in the event of conflict, the
provisions of this Agreement shall prevail.
	 
	 	 	Contractor and Owner have expressed herein their entire understanding and agreement
concerning the subject matter of this Agreement and no implied contract of any kind
whatsoever by or on behalf of Owner, shall arise or be implied from anything contained in
the Agreement or from any position or situation of the parties at any time, it being
understood and agreed that the express contracts, covenants, and agreements contained in
the Agreement and made by the
	 
	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “A” — Agreement
	Contract Number: 400472
	 	Page 3 of 6

 

 

	 	 	Parties hereto are and shall be the only contracts, covenants
and agreements on which any rights hereunder may be founded. There shall be no implied
covenants, conditions, terms or reservations read into this Agreement relating to or
concerning subject matter thereof.
	 
	2.0	 	PRECEDENCE
	 
	 	 	In cases of express conflict between any components of this Agreement, the order of
precedence, from highest to lowest, shall be as follows:

	 	-	 	Section “A” – Agreement
	 
	 	-	 	Section “B” – Terms and Conditions
	 
	 	-	 	Section “D” – Compensation
	 
	 	-	 	Section “C” – Scope of Work
	 
	 	-	 	Section “E” – Attachments

	 	 	In the event of an express conflict between the documents listed above, or between any
other documents that are part of the Agreement, the Contractor shall notify the Owner
immediately and shall comply with the Owner’s resolution of the conflict.
	 
	3.0	 	SCOPE OF WORK
	 
	 	 	Except as otherwise expressly provided elsewhere in this Agreement, the Contractor shall
supply all services, things, and items of expense necessary to perform, and shall perform
the following work:

Overburden Removal and Mining Services

	 	 	Said work being more particularly described in Section “C” — SCOPE OF WORK (herein referred
to as “Work”), for or in connection with Owner’s “Horizon Oil Sands Project”.
	 
	4.0	 	CONTRACT PRICE
	 
	 	 	In full consideration for the complete performance of all the Work in full compliance with
this Agreement, the Owner shall pay the Contractor in accordance with the applicable prices
and rates for the Work set out in Section “D” – COMPENSATION.
	 
	5.0	 	PRIME CONTRACTOR
	 
	 	 	The Parties agree to the roles and responsibilities as related to Prime Contractor as
defined in the Alberta Occupational Health and Safety Act and as more fully set forth in
Exhibit “C” – Prime Contractor Agreement included in Section “E” — ATTACHMENTS.
Contractor will execute the said Prime Contractor Agreement and shall deliver the same to
Owner concurrently with the execution and delivery of this Agreement.

	6.0	 	INTERPRETATION
	 
	 	 	Titles and captions used in this Agreement are for convenience only and shall not be used
in the interpretation of any of the provisions of this Contract.
	 
	 	 	Except as otherwise expressly provided, a reference in this Agreement to an “Article”,
“section”, “subsection”, “paragraph”, “Exhibit” or “Schedule” is a reference to an article,
appendix, section, subsection, paragraph, exhibit or schedule to this Agreement.
	 
	 	 	When the context reasonably permits, words suggesting the singular shall be construed as
suggesting the plural and vice versa, and words suggesting one gender shall be construed as
suggesting other genders.
	 
	 	 	Any specific reference to a statute shall include and be deemed to be a reference to such
statute and to the regulations made pursuant thereto and promulgated thereunder, as such
may be amended, supplemented or superseded from time to time.
	 
	 	 	Any reference to “approval”, “authorization” or “consent” of a Party means, respectively,
the written approval, the written authorization and the written consent of such Party.
	 
	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “A” — Agreement
	Contract Number: 400472
	 	Page 4 of 6

 

 

	 	 	All references to “Dollars”, “dollars” or “$” herein shall refer to lawful currency of
Canada.
	 
	 	 	The Contractor shall comply with the manifest intent and general purpose of the
Specifications and Drawings, taken as a whole, and shall not make use of any errors or
omissions identified therein to the detriment of the Work.
	 
	 	 	Anything shown in the Specifications referred to in this Agreement or thereafter furnished
by the Owner and not shown in the Drawings referred to in this Agreement or thereafter
furnished by the Owner, or shown in such Drawings and not shown in such Specifications,
shall be of like effect as if shown or mentioned in both and shall not be considered to be
a conflict.
	 
	 	 	Words which have generally accepted technical or trade meanings are used in this Agreement
in accordance with such recognized meanings.
	 
	7.0	 	GOVERNING LAW
	 
	 	 	This Agreement shall be subject to and interpreted, construed and enforced in accordance
with the laws in effect in the Province of Alberta and the laws of Canada applicable
therein and shall be treated as a contract made in the Province of Alberta. The Parties
hereby accept and irrevocably attorn and submit to the jurisdiction of the courts of the
Province of Alberta and all courts of appeal therefrom in respect of all matters that arise
out of this Agreement.
	 
	 	 	The Parties hereto hereby irrevocably and unconditionally waive any objection to the venue
of any actions, suits, or proceedings arising out of this Agreement or the Work
contemplated thereby being in the courts of the Province of Alberta and further irrevocably
and unconditionally waive and agree not to plead or claim in any such court that any such
action, suit or proceeding brought in any such court has been brought in an inconvenient
forum.
	 
	 	 	Subject to Article 2.3 of Section “B” — TERMS & CONDITIONS, the Parties hereby agree to
extend the two (2) year time period otherwise provided for under the Limitations Act
(Alberta) to six (6) years.
	 
	8.0	 	AMENDMENT
	 
	 	 	This Agreement shall not be varied in its terms or amended by oral agreement or by
representations or otherwise other than by a formal written amending agreement or by a
Change Order, as applicable, dated subsequent to the date hereof and executed by a duly
authorized representative of each Party.
	 
	9.0	 	TERM
	 
	 	 	The Contractor shall commence the Work on or before the Construction Commencement Date and
shall complete the Work on the Termination Date unless the Term is extended by Change
Order, in which case the Termination Date specified in such Change Order shall govern.
	 
	 	 	The Contractor shall not commence the Work on the CNRL Site without prior written approval
from the Owner.
	 
	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “A” — Agreement
	Contract Number: 400472
	 	Page 5 of 6

 

 

	 	 	IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
Effective Date.
	 
	 	 	NORAMAC VENTURES INC. CANADIAN NATURAL RESOURCES LIMITED

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ GORDON PARCHEWSKY
	 	 	 	BY:
	 	/s/ ROB TEMPLETON
	 

	 	 	 	 
	 	 	 	 	 	 
	 

	 	NAME:
	 	GORDON PARCHEWSKY
	 	 	 	NAME:
	 	ROB TEMPLETON C.P.P.
	 

	 	TITLE:
	 	PRESIDENT
	 	 	 	TITLE:
	 	PROCUREMENT SUPERVISOR
	 

	 	DATE:
	 	DECEMBER 6, 2004
	 	 	 	DATE:
	 	DECEMBER 8, 2004
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ WILLIAM KOEHN
	 	 	 	BY:
	 	/s/ REAL DOUCET
	 

	 	 	 	 
	 	 	 	 	 	 
	 

	 	NAME:
	 	WILLIAM KOEHN
	 	 	 	NAME:
	 	REAL DOUCET
	 

	 	TITLE:
	 	V.P., OPERATIONS
	 	 	 	TITLE:
	 	SR. V.P. OIL SANDS
	 

	 	DATE:
	 	DECEMBER 6, 2004
	 	 	 	DATE:
	 	DEC 9-04
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	BY:
	 	 	 	 	 	BY:
	 	/s/ STEVE CAUT
	 

	 	 	 	 
	 	 	 	 	 	 
	 

	 	NAME:
	 	 	 	 	 	NAME:
	 	STEVE CAUT
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	TITLE:
	 	 	 	 	 	TITLE:
	 	CHIEF OPERATING OFFICER
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	DATE:
	 	 	 	 	 	DATE:
	 	10 DEC. 04
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “A” — Agreement
	Contract Number: 400472
	 	Page 6 of 6

 

 

OVERBURDEN REMOVAL AND

MINING SERVICES CONTRACT

SECTION “B” – TERMS AND CONDITIONS

 

 

INDEX

	 	 	 	 	 	 	 
	1.0

	 	DEFINITIONS
	 	 	3	 
	2.0

	 	REPRESENTATIONS
	 	 	9	 
	3.0

	 	REGULATIONS
	 	 	11	 
	4.0

	 	VALIDITY OF PROVISIONS
	 	 	11	 
	5.0

	 	CONTRACTOR AND SUBCONTRACTORS
	 	 	11	 
	6.0

	 	COORDINATION WITH THIRD PARTIES AND OWNER’S OPERATIONS
	 	 	12	 
	7.0

	 	ASSIGNMENT AND ENUREMENT
	 	 	13	 
	8.0

	 	PERSONNEL
	 	 	13	 
	9.0

	 	TAXES, DUTIES AND FEES
	 	 	14	 
	10.0

	 	INVOICING AND PAYMENTS
	 	 	16	 
	11.0

	 	RIGHT TO OFFSET
	 	 	16	 
	12.0

	 	LIENS
	 	 	16	 
	13.0

	 	RISK MANAGEMENT
	 	 	16	 
	14.0

	 	INSURANCE
	 	 	17	 
	15.0

	 	INDEMNITIES
	 	 	19	 
	16.0

	 	TITLE AND RISK
	 	 	20	 
	17.0

	 	DOCUMENTATION AND RIGHT OF AUDIT
	 	 	21	 
	18.0

	 	INSPECTION AND ACCESS
	 	 	21	 
	19.0

	 	QUALITY ASSURANCE
	 	 	22	 
	20.0

	 	WARRANTIES
	 	 	23	 
	21.0

	 	NOTICES
	 	 	23	 
	22.0

	 	CHANGES
	 	 	24	 
	23.0

	 	SUSPENSION OF WORK
	 	 	25	 
	24.0

	 	DEFAULT
	 	 	25	 
	25.0

	 	TERMINATION
	 	 	26	 
	26.0

	 	PREFERENTIAL RIGHTS
	 	 	29	 
	27.0

	 	FORCE MAJEURE
	 	 	30	 
	28.0

	 	DISPUTE RESOLUTION
	 	 	30	 
	29.0

	 	CONFIDENTIAL INFORMATION
	 	 	31	 
	30.0

	 	PUBLIC ANNOUNCEMENTS
	 	 	31	 
	31.0

	 	STANDARDS OF BUSINESS CONDUCT
	 	 	32	 
	32.0

	 	FURTHER ASSURANCES
	 	 	32	 
	33.0

	 	PERFORMANCE SECURITY
	 	 	32	 
	34.0

	 	CLOSING PROCEDURES
	 	 	33	 
	35.0

	 	TIME
	 	 	33	 
	36.0

	 	SURVIVAL
	 	 	33	 
	37.0

	 	WAIVER
	 	 	34	 
	 
	 	 	 	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “B” – Terms & Conditions
	Contract Number: 400472
	 	Page 2 of 34

 

 

SECTION B

TERMS AND CONDITIONS

	1.0	 	DEFINITIONS

	 	1.1	 	In this Agreement, the terms defined herein or in the recitals hereto and any
capitalized derivative thereof shall have the corresponding meanings ascribed thereto,
unless the context otherwise requires:

	 	1.1.1	 	“Acquisition Cost” means the total cost incurred by the
Contractor to provide the Facility, Equipment or Replacement Equipment for the
Work, as more particularly set out in Appendix I of Section “D” –
COMPENSATION;
	 
	 	1.1.2	 	“Affiliate” means, with respect to the relationship between
corporations, that one of them is controlled by the other or that both of them
are controlled by the same person, entity, corporation or body politic; and
for this purpose a corporation shall be deemed to be controlled by those
persons, corporations or bodies politic who own or effectively control, other
than by way of security only, sufficient voting shares of the corporation
(whether directly through the ownership of shares of the corporation or
indirectly through the ownership of shares of another corporation which owns shares of the corporation) to elect the majority of its board of directors,
provided that a partnership which is a party to this Agreement and which is
comprised solely of corporations which are Affiliates, as described above,
shall be deemed to be an Affiliate of each such corporation and each such
corporation’s Affiliates, as described above; and shall also include, any
joint venture participant of Owner;
	 
	 	1.1.3	 	“Agreement” means this Agreement together with the
Attachments, Exhibits and Schedules attached hereto and made a part hereof,
that comprise the Contract and the Contract Documents. Where the terms
“Agreement” or “Contract” are used independently, and sometimes interspersedly
within this Agreement, Attachments, Exhibits and Schedules the interpretation
of the meaning of “Agreement” and “Contract”, shall be the same;
	 
	 	1.1.4	 	“Average Haul Distance” means that average calculated by the
Owner (being a weighted average, calculated by summing the products of hauled
volumes and haul distances during a Contract Year and then dividing that sum
by the total volume hauled during that Contract Year) of the shortest
horizontal distances along haulroads, measured from centroid to centroid using
the Owner’s Mine Plan, from the Overburden Removal area of the Mine to the
Dump Area, or from the muskeg/mineral soils removal area to its placement
area, as the case may be, and set out in Rate Schedule “F”, included in
Section “D” – COMPENSATION;
	 
	 	1.1.5	 	“BCM Rate” means the unit rate payable to the Contractor,
based on the Average Haul Distance, for each bank cubic metre of Overburden or
other material moved, exclusive of Overburden rehandle, as more particularly
set out in Section “D” — COMPENSATION;
	 
	 	1.1.6	 	“Business Day” means any day which is not a Saturday, Sunday
or statutory holiday in Alberta;
	 
	 	1.1.7	 	“Cancellation” means a full termination of this Agreement by
the Owner
for any reason whatsoever pursuant to Article 25.9 and “Cancel” or
Cancelled” shall refer to the same;
	 
	 	1.1.8	 	“Change” means any material change not contemplated in the
Contract Documents or in an approved SWA in effect at the time;
	 
	 	 	 	 

			
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	 	Section “B” — Terms & Conditions
	Contract Number: 400472
	 	Page 3 of 34

 

 

	 	1.1.9	 	“Change Order” means a written notice issued by the Owner to the
Contractor, authorizing a Change or an amendment to this Contract;
	 
	 	1.1.10	 	“CNRL Site” means the lands encompassed by the Alberta Energy and Utilities
Board Approval Number 9752 for the Horizon Oil Sands Project issued February
10, 2004, as illustrated on Drawing 11-PLN-MI-0002, entitled Plot Plan –
CNRL Horizon Project, included in Section “E” – ATTACHMENTS;
	 
	 	1.1.11	 	“Compensation” means the entire consideration to be received by the
Contractor for the completion of the Work, as set forth in Section “D” –
COMPENSATION;
	 
	 	1.1.12	 	“Confidentiality Agreement” means that certain Confidentiality Agreement
between Owner and Contractor setting out the obligations of confidentiality
between the Parties, the form of which is attached as Exhibit “A” in Section
“E” – ATTACHMENTS;
	 
	 	1.1.13	 	“Confidential Information” means Information and Technology, or either of
them, provided to, acquired, or developed by Contractor in the course of, or
incidental to, the conduct of the Work;
	 
	 	1.1.14	 	“Construction” includes the design, procurement, site preparation,
construction and commissioning of the Facility and the Contractor’s Facility
Site;
	 
	 	1.1.15	 	“Construction Commencement Date” means the 15th day of January,
2005 being the latest date upon which the Contractor shall begin the Work, as
specified in Section “A”- AGREEMENT;
	 
	 	1.1.16	 	“Contract” and “Contract Documents” means the documents specified in the
Agreement;
	 
	 	1.1.17	 	“Contractor” has the meaning ascribed in Section “A” – AGREEMENT and
includes all permitted successors and assigns;
	 
	 	1.1.18	 	“Contract Year” means a twelve (12) consecutive month period during the Term
commencing on January 1, 2005 or any anniversary thereof;
	 
	 	1.1.19	 	“Contractor’s Representative” means that person identified as such pursuant
to Article 8.1, or his designate or replacement;
	 
	 	1.1.20	 	“Contractor’s Facility Site” means an area on the CNRL Site designated by
the Owner, which area shall be for the Contractor’s use in performance of the
Work and shall include, without limitation, the site on which the Facility is
located;
	 
	 	1.1.21	 	“Demobilization” means the final removal of the Contractor’s equipment,
vehicles, materials, personnel, Facility, Equipment, Replacement Equipment,
spare parts and other inventories and supplies and property owned or under
lease to the Contractor, from the CNRL Site as contemplated by this Contract
Document upon the termination or expiry of this Contract;
	 
	 	1.1.22	 	“Dewatering” means any activity with the intent or effect to remove water
from a Work area, directly or indirectly, including without limitation design,
procurement, construction, installation, operation and maintenance of all
water systems and procurement, installation, operation and maintenance of all
associated tools, supplies, materials and equipment;
	 
	 	1.1.23	 	“Drawings” means the drawings and documents included in Section “E”-
ATTACHMENTS;
	 
	 	1.1.24	 	“Dump Area” means that area or areas where the Contractor disposes of
Overburden on the CNRL Site identified as such by the Owner from time to time
during the Term;
	 
	 	1.1.25	 	“Effective Date” means the date this Agreement was entered into, as set
forth in Section “A” – AGREEMENT;
	 
	 	 	 	 

			
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	 	Section “B” — Terms & Conditions
	Contract Number: 400472
	 	Page 4 of 34

 

 

	 	1.1.26	 	“Equipment” includes hauling, loading, dozing and road working equipment,
buses, vehicles used for other than administrative purposes, and
associated tools, spare parts and other inventories, components and
equipment purchased prior to or in Contract Year 1 as set out in Rate
Schedule “I” of Section “D” – COMPENSATION, required to perform the Work
but, unless otherwise provided for herein, does not include Replacement
Equipment;
	 
	 	1.1.27	 	“Facility” means the building(s) and all improvements and fixtures to be
constructed or placed by the Contractor on the Contractor’s Facility Site
which may include offices, wash house facilities, storage space, shop and
maintenance areas as required by the Contractor during the Term;
	 
	 	1.1.28	 	“Final Payment Certificate and Release” means a certificate and release
issued by the Contractor and executed by an authorized officer of Contractor,
the form of which is attached as Exhibit “B” in Section “E” — ATTACHMENTS,
indicating, inter alia, that:

	 	A.	 	Contractor has fully performed all its obligations under this
Agreement;
	 
	 	B.	 	All claims of Contractor against Owner for and in respect of the
Work are satisfied upon the making of such final payment;
	 
	 	C.	 	No property of Owner is subject to any unsatisfied lien or claim
as a result of performance of the Work hereunder;
	 
	 	D.	 	All rights of lien against Owner and Owner’s property in
connection with the Work are released (including, without limitation,
if Owner requests, releases of lien satisfactory in form to Owner
executed by all parties who by reason of furnishing material, labour
or other services for the Work are potential claimants against Owner
or Owner’s property); and
	 
	 	E.	 	Contractor has paid in full all outstanding obligations against
the Work;

	 	1.1.29	 	“Force Majeure” means an event beyond the reasonable control of the Party so
claiming, that has not been caused by such Party’s negligence and which such
Party was unable to prevent or provide against by the exercise of reasonable
diligence at a reasonable cost, and, subject to the foregoing, includes:

	 	A.	 	an act of God;
	 
	 	B.	 	war, insurrection, blockade, riot, vandalism or other civil
disturbance;
	 
	 	C.	 	official, sanctioned or legal strikes, lockouts and other
industrial or labour disturbances;
	 
	 	D.	 	fire, lightning, storms, floods or unusually severe weather for
the area; and
	 
	 	E.	 	restraint, action, delay or inaction by a Government Authority,

	 	 	 	provided, however, that lack of finances or changes in the economic
circumstances of a Party will not be considered an event of Force Majeure
hereunder;
	 
	 	1.1.30	 	“Government Authority” means any national, federal, state, provincial
territorial, regional, municipal, local or other government body,
department, authority, tribunal, commission, board or agency or a
political subdivision thereof and includes any recognized securities
exchange having jurisdiction over the Parties hereto;
	 
	 	1.1.31	 	“GST” means the goods and services tax payable pursuant to the Excise Tax
Act (Canada), as amended, supplemented, or replaced and the regulations
promulgated thereunder;
	 
	 	 	 	 
	 
	 	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “B” — Terms & Conditions
	Contract Number: 400472
	 	Page 5 of 34

 

 

	 	1.1.32	 	“Hazardous Substances” means any substances which are hazardous to
persons, property or the environment and includes (without limiting the
generality of the foregoing) radioactive materials or devices, explosives,
contaminants, pollutants, dangerous goods, liquid wastes, industrial
wastes, toxic substances, hazardous wastes, hazardous materials and any
substances declared to be dangerous or toxic under any Regulations;
	 
	 	1.1.33	 	“Inapplicable Sections” means all of Sections 15, 16, 18, 19 and 22 to 27
inclusive, of Exhibit “A” — Confidentiality Agreement, included in
Section “E” – ATTACHMENTS. Inapplicable Sections shall not apply to the
Parties under this Agreement and shall not be or deemed to be incorporated
into this Agreement;
	 
	 	1.1.34	 	“Information” means any proprietary or non-public information regarding the
affairs or business of Owner, or any Affiliate of Owner, including without
limiting the generality of the foregoing:

	 	A.	 	any drawings or descriptions relating to the Project;
	 
	 	B.	 	the names, telephone numbers and computer system user
identification numbers of employees of Owner;
	 
	 	C.	 	information which will enable access to the Owner’s computer
systems;
	 
	 	D.	 	source codes, object codes, training and instruction manuals and
all related documentation concerning Owner’s computer systems;
	 
	 	E.	 	Owner’s employee, contractor, vendor, customer and supplier
lists;
	 
	 	F.	 	information which relates to past, present, and future research,
development and business activities of Owner;
	 
	 	G.	 	information regarding Owner systems, procedures and algorithms;
	 
	 	H.	 	information related to the operations, planning, control, and
marketing of Owner’s business interests and products;
	 
	 	I.	 	any information which affects publicly held securities; and
	 
	 	J.	 	any other information about the business affairs of Owner, which
Owner in its sole discretion deems to be confidential or proprietary;

	 	1.1.35	 	“Invoice” means any invoice, bill or other request for payment issued by
Contractor to Owner in accordance with the provisions of this Agreement;
	 
	 	1.1.36	 	“Key Personnel” means those personnel identified by name in Article 8.3
together with such other persons who may be retained or employed by the
Contractor from time to time and are approved by the Owner pursuant to Article
8.4 as Key Personnel;
	 
	 	1.1.37	 	“Letter of Credit” means the letter of credit to be provided to the Owner by
the Contractor as more fully described in Article 33;
	 
	 	1.1.38	 	“Losses” means, in respect of any matters contained herein, all claims,
judgements, causes of action, actions, suits, debts, accounts, orders,
demands, proceedings, losses, damages, obligations, liabilities, deficiencies,
costs and expenses (including, without limitation all legal
and other professional fees and disbursements on a solicitor and his own
client basis), rights of setoff, contribution, subrogation, interest,
penalties and amounts paid in settlement arising directly or indirectly
from the performance or non-performance of this Agreement;
	 
	 	1.1.39	 	“Mine” means that area of the CNRL Site identified as such on the Mine Plan;
	 
	 	1.1.40	 	“Mine Management System” means the Owner’s fleet dispatch, data acquisition
and reporting system;
	 
	 	 	 	 

			
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	 	1.1.41	 	“Mine Plan” means the Owner’s written overview and objectives for
continued development of the Mine for a specified period of time,
typically addressing elements such as, mining areas, mining sequence,
quantities and general configuration, altogether identified as Mine Plan,
authorised by the Owner, and as it may be amended from time to time during
the Term;
	 
	 	1.1.42	 	“Net Book Value Formula” means the formula set out in Appendix “I” of
Section “D” – COMPENSATION;
	 
	 	1.1.43	 	“Overburden” means that material underlying muskeg and mineral soils
included in the muskeg over-dig zone, and overlying the economic deposits of
oil sands on the CNRL Site which comprises materials of Holocene (post
glacial) and Pleistocene (glacial) age, the Clearwater Formation, and the top
reject of the McMurray Formation;
	 
	 	1.1.44	 	“Overburden Removal” means the removal of Overburden from the Mine and
includes the loading and hauling of same from the Work Site to a Dump Area and
the dumping of Overburden at a Dump Area;
	 
	 	1.1.45	 	“Overburden Removal Commencement Date” means the 1ST day of July,
2005, being the date upon which the Contractor shall begin Overburden Removal;
	 
	 	1.1.46	 	“Overhaul Rate” means the adjustment factor and rate set out in Rate
Schedule “H”, that is used in calculations to adjust the BCM Rate in the event
the actual average haul distance in a Contract Year is greater than the
Average Haul Distance for that Contract Year, all as more particularly set out
in Section “D” – COMPENSATION;
	 
	 	1.1.47	 	“Overhead” means the personnel, equipment, supplies, tools and vehicles and
other items and services required by the Contractor for the supervision and
administration of this Contract, including without limitation, the Overhead
charges more particularly set out in Section “D” — COMPENSATION;
	 
	 	1.1.48	 	“Owner” has the meaning ascribed in Section “A” – AGREEMENT and includes all
successors and assigns;
	 
	 	1.1.49	 	“Owner’s Representative” means such person authorised in writing by the
Owner that has the authority to bind the Owner on all matters relating to the
Work and the Contract;
	 
	 	1.1.50	 	“Parties” means Owner and Contractor under this Agreement and “Party” means
any one of them;
	 
	 	1.1.51	 	“Prime Contractor” shall have the meaning set forth in the Occupational
Health and Safety Act of Alberta, as amended from time to time;
	 
	 	1.1.52	 	“Prime Contractor Agreement” means the Prime Contractor Agreement between
the Contractor and the Owner attached hereto as Exhibit “C” of Section “E” –
ATTACHMENTS to be executed and delivered by the Contractor pursuant to this
Agreement;
	 
	 	1.1.53	 	“Project” means the oil sands mining and crude bitumen extraction, recovery
and refining project identified by Owner as the “Horizon Oil Sands Project”;
	 
	 	1.1.54	 	“Quality Plan” means the Contractor’s document outlining its objectives and
system to ensure quality during the performance of the Work, including the
organizational structure, functional responsibilities, and
practices such as communication, task control, documentation and
assessment of the Work;
	 
	 	1.1.55	 	“Reconciliation Survey” means a survey of active mining excavations
conducted by the Contractor and the Owner, all as more particularly set out in
Specification 500 — Surveying, in Section “E” – ATTACHMENTS in order to
reconcile the volume of material moved and the amount payable to the
Contractor hereunder;
	 
	 	 	 	 

			
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	 	1.1.56	 	“Regulations” means all statutes, laws, rules, codes, ordinances, orders,
decisions, directives and regulations currently in effect and amended from
time to time and made by any Government Authority having jurisdiction over the
Owner, the Contractor, the Project or the Work carried out hereunder;
	 
	 	1.1.57	 	“Replacement Equipment” includes hauling, loading, dozing and road working
equipment, buses, vehicles used for other than administrative purposes, and
associated tools, spare parts and other inventories, components and equipment
purchased after Contract Year one (1) and all major rebuilds of Equipment or
Replacement Equipment where cost of rebuilds exceeds thirty (30) percent of
Acquisition Cost thereof, as set out in Rate Schedule “I” of Section “D” –
COMPENSATION, required to perform the Work but, unless otherwise provided for
herein, does not include Equipment;
	 
	 	1.1.58	 	“Scope of Work Authorization” or “SWA” means the written order identified as
such and signed by both the Contractor and Owner authorizing the Contractor to
perform Work or a portion of Work as contemplated in this Agreement;
	 
	 	1.1.59	 	“Specifications” means the specifications included in Section “E” –
ATTACHMENTS;
	 
	 	1.1.60	 	“SWA Amendment Form”; means the agreement executed by the Parties
documenting an approved revision to a SWA Execution Plan;
	 
	 	1.1.61	 	“SWA Completion Notice” means that notice issued by Owner to the Contractor
pursuant to Article 7.9 of Section “C” – SCOPE OF WORK, certifying completion
and acceptance of the Work under a SWA;
	 
	 	1.1.62	 	“SWA Execution Plan” means a plan developed by the Contractor and approved
by the Owner pursuant to Article 7.0 of Section “C” – SCOPE OF WORK for the
Work or any portion thereof to be performed during the Term and may include,
without limitation, a detailed Work Schedule for the Work to be performed;
	 
	 	1.1.63	 	“Subcontractor” means a person (other than regular or temporary employees of
the Contractor or its Affiliates) firm or corporation engaged directly or
indirectly by Contractor to perform any part of the Work. Subcontractors
include, without limitation, any vendor or supplier of goods, services,
materials or equipment used or incorporated or intended to be used or
incorporated in the Work;
	 
	 	1.1.64	 	“Survey Work” includes the measurement of grades, physical features, limits,
areas and volumes in the Mine and in the Contractor’s Facility Site;
	 
	 	1.1.65	 	“Technology” means any and all information, data and know-how, including
reports, designs, inventions, procedures, solutions and interpretations with
respect to, but not limited to, geology, geophysical, engineering and
environmental matters related to the Work;
	 
	 	1.1.66	 	“Term” means the period of time during which this Contract shall be in force
commencing on the Effective Date and ending on the Termination Date;
	 
	 	1.1.67	 	“Termination Date” means the date upon which this Agreement shall
terminate, being, subject to any Change Order, the 30th day of
June, 2015, the date of completion of the Work hereunder, or such other date
specified by the Owner pursuant to the terms of this Agreement, whichever
shall be the earliest;
	 
	 	1.1.68	 	“Termination for Convenience” means either a partial or a full termination
of the Contract by the Owner prior to the end of the Term in the absence of a
default by the Contractor and excludes a termination by Owner due to Force
Majeure;
	 
	 	1.1.69	 	“Third Party” means any partnership, corporation, trust, unincorporated
organization, union, Government Authority, individual or any heir, executor,
administrator or other legal representative of an individual other than a
Party;
	 
	 	1.1.70	 	“Truck Count” is the sum of the number of loads of material hauled to a Dump
Area or other area specified by the Owner by each unit of the hauling
Equipment;
	 
	 	 	 	 

			
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	 	1.1.71	 	“Truck Factor” means, other than that factor to be used until the first
Reconciliation Survey has been completed as determined in the Specification
500 — Surveying, in Section “E” – ATTACHMENTS, that value which is calculated
by dividing the volume of material in an area (as determined by a
Reconciliation Survey) by the Truck Count for the same area and the same
period of time;
	 
	 	1.1.72	 	“Underhaul Rate” means the adjustment factor and rate set out in Rate
Schedule “G”, that is used in calculations to adjust the BCM Rate in the event
the actual average haul distance in a Contract Year is less than the Average
Haul Distance for that Contract Year, all as more particularly set out in
Section “D” – COMPENSATION;
	 
	 	1.1.73	 	“Work Day” means any day of the week that the Contractor has scheduled for
performing the Work;
	 
	 	1.1.74	 	“Work” has the meaning attributed thereto in Article 3.0 of Section “A” –
AGREEMENT; and
	 
	 	1.1.75	 	“Work Schedule” means a detailed schedule for performance of the Work
authorized by a SWA all as more particularly set out in Section “C” – SCOPE OF
WORK.

	2.0	 	REPRESENTATIONS

	 	2.1	 	Contractor represents and warrants to Owner that:

	 	2.1.1	 	Standing: Contractor is a corporation, duly
organized and validly existing under the laws of its jurisdiction of
incorporation and is authorized to carry on business in all jurisdictions in
which the Project and the Work are located.
	 
	 	2.1.2	 	Authority: Contractor has all the requisite
corporate power and authority to execute this Agreement and perform its
obligations under and in accordance with this Agreement.
	 
	 	2.1.3	 	No Conflicts: The execution of the Agreement and the
performance of the
Work contemplated herein and its obligations hereunder will not violate,
nor be in conflict with, any of the constating or governing documents of
Contractor or any judgement, decree, order, or Regulation applicable to
Contractor or any agreement, instrument, permit or authority to which the
Contractor is a Party or by which the Contractor is bound or subject.
	 
	 	2.1.4	 	Execution of Documents: This Agreement has been duly
executed and delivered by Contractor and all other documents executed and
delivered by Contractor pursuant hereto will be duly executed and delivered by
Contractor, and this Agreement does, and such documents will, constitute
legal, valid and binding obligations of Contractor enforceable in accordance
with their respective terms, subject to bankruptcy, insolvency, preference,
reorganization, moratorium and other similar laws affecting creditors’ rights
generally and the discretion of courts with respect to equitable or
discretionary remedies and defenses.
	 
	 	2.1.5	 	No Authorizations: No authorization or approval or
other action by, and no notice to or filing with, any Governmental Authority
exercising jurisdiction over Contractor is required to enable the due
execution, delivery and performance by Contractor of this Agreement.
	 
	 	2.1.6	 	Tax Matters: Contractor:

	 	A.	 	is a resident of Canada within the meaning
of the Income Tax Act (Canada);
	 
	 	B.	 	is a G.S.T. registrant under the Excise
Tax Act (Canada); and
	 
	 	C.	 	carries on business in Canada through a
permanent establishment located in Canada.
	 
	 	 	 	 

			
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	 	2.1.7	 	Quality of Services: Contractor shall ensure that:

	 	A.	 	All services supplied by Contractor or any
Subcontractor thereof in performance of the Work under this Agreement
shall be supplied by personnel who are careful, skilled, experienced
and competent in their respective trades or professions;
	 
	 	B.	 	The professional services, findings, and/or
recommendations provided by Contractor under this Agreement shall be
performed in a diligent, thorough and professional manner in
accordance with the appropriate scientific, technical and
professional engineering standards and principles applicable to the
Work; and
	 
	 	C.	 	Contractor and any Subcontractor thereof
has the necessary equipment, personnel, skill and expertise to
perform and complete the Work and shall provide and maintain all
labour, materials, equipment, services, and facilities which may be
necessary for the performance of the Work and fulfill the obligations
set forth herein.

	 	2.1.8	 	Due Diligence: Contractor has:

	 	A.	 	examined the terms, conditions and obligations of this Agreement;
	 
	 	B.	 	investigated and is fully acquainted with all conditions and
obligations pertaining to the Work;
	 
	 	C.	 	informed and satisfied itself as to the nature of the Work; and
	 
	 	D.	 	considered all necessary information regarding risks,
contingencies, circumstances and all other matters which can in any
way be reasonably anticipated to affect the Work.

	 	 	 	Any failure by the Contractor to discover matters which affect the Work
shall not relieve it from obligations under this Contract or affect the
Contract Price.
	 
	 	2.1.9	 	Deliveries on Execution: Contractor has delivered to
Owner, concurrently with the execution of this Contract, evidence of the
willingness of the Contractor’s bank to issue the first Letter of Credit in
accordance with Article 33.0, the fully executed Prime Contractor Agreement in
the form attached as Exhibit “C” of Section “E” – ATTACHMENTS, and the
undertaking of North American Construction Group Inc. required under Article
33.6 in the form attached as Exhibit “D” of Section “E” – ATTACHMENTS.
	 
	 	2.1.10	 	Title on Purchase: In all cases where the Owner purchases Equipment,
Replacement Equipment, Facilities or any other assets from the Contractor
pursuant to or contemplated by this Agreement, the Contractor shall transfer
and convey to the Owner good and marketable title to such assets, free and
clear of any and all Third Party interests, security interests and pre-emptive
rights, liens, charges and encumbrances of every nature and kind whatsoever.

	 	2.2	 	Owner represents and warrants to Contractor that:

	 	2.2.1	 	Standing: Owner is a corporation, duly organized and validly existing under the laws
of its jurisdiction of incorporation and is authorized to carry on business in the
jurisdiction in which the Project is located.
	 
	 	2.2.2	 	Authority: Owner has all the requisite corporate power and authority to execute this
Agreement and perform its obligations hereunder.
	 
	 	2.2.3	 	No Conflicts: The execution of this Agreement will not violate, nor be in conflict
with, any of the constating or governing documents of Owner or any judgment, decree, order,
law, statute, rule or regulation applicable to Owner or any agreement, instrument, permit or
authority to which the Owner is a Party or by which the Owner, or the Project are bound or
subject.
	 
	 	 	 	 

			
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	 	2.2.4	 	Execution of Documents: This Agreement has been duly executed and delivered by
Owner and all other documents executed and delivered by Owner pursuant hereto will be duly
executed and delivered by Owner, and this Agreement does, and such documents will,
constitute legal, valid and binding obligations of Owner enforceable in accordance with
their respective terms, subject to bankruptcy, insolvency, preference, reorganization,
moratorium and other similar laws affecting creditors’ rights generally and the discretion
of courts with respect to equitable or discretionary remedies and defenses; and
	 
	 	2.2.5	 	No Authorizations: No authorization or approval or other action by, and no notice to
or filing with, any Governmental Authority exercising jurisdiction over Owner is required to
enable the due execution and delivery by Owner of this Agreement.

	 	2.3	 	Each Party acknowledges that the other may rely on the representations and
warranties made by such Party pursuant to Article 2.1 or 2.2, as the case may be. The
representations and warranties in Articles 2.1 and 2.2 shall be true at the Effective
Date and shall be confirmed by the Contractor in each statutory declaration to be
provided hereunder and in the Final Payment Certificate and Release. In the absence of
fraud, however, no claim or action shall be commenced with respect to a breach of any
such representation or warranty, unless before the termination of this Contract or
within two (2) years after the Termination Date of this Contract as provided herein,
written notice specifying such breach in reasonable detail has been provided to the
Party which made such representation or warranty.

	3.0	 	REGULATIONS

	 	3.1	 	Contractor shall comply strictly with all Regulations applicable to
Contractor’s operations in the performance of the Work. Hazard assessments as required
shall be submitted by Contractor to Owner prior to significant changes in Work
location or scope. Contractor shall furnish evidence of compliance with all
Regulations to Owner at such times as Owner may reasonably request.
	 
	 	3.2	 	The Contractor shall ensure that all applicable personnel are suitably
qualified under the Alberta Mine Safety Association (AMSA) and shall furnish evidence
of compliance with such, upon request by the Owner.
	 
	 	3.3	 	Contractor shall not, under any circumstances, apply to or enter into
negotiations with any Governmental Authority for acceptance of variations from or
revisions to any Regulations relating to this Agreement or to the performance thereof,
without the prior written approval of Owner.
	 
	 	3.4	 	Contractor shall keep itself fully informed of all Regulations of every
relevant jurisdiction that affects the Work or the performance of this Agreement in
any manner and shall require compliance therewith by any Subcontractor involved in the
Work. If any discrepancy or inconsistency should be discovered in this Agreement in
relation to any such Regulation, Contractor shall forthwith report the same in writing
to Owner.

	4.0	 	VALIDITY OF PROVISIONS

	 	4.1	 	In the event any section, or any part or portion of any section of this
Agreement shall be held to be invalid, illegal, void or otherwise unenforceable, such
holding shall not affect the validity, legality or enforceability of the remaining
part or portions of that section, or any other section hereof.

	5.0	 	CONTRACTOR AND SUBCONTRACTORS

	 	5.1	 	The Contractor shall not be deemed to be and nothing contained in this
Contract shall be construed, as making the Contractor the agent or employee of the
Owner and the Contractor shall at all times be deemed to be an independent contractor.
Accordingly, all persons employed or retained by the Contractor in connection with
the performance of its obligations hereunder shall be its employees or those of its
Subcontractors and agents as the case may be, and not the employee or agent of the
Owner in any respect.
	 
	 	 	 	 

			
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	 	5.2	 	Subject to any action taken by Owner under Article 5.7, nothing in this Agreement
shall be deemed to constitute or authorize Contractor, any Subcontractors or any of
their employees or agents, to be or act in the capacity of agent, representative or
employee of Owner. Individuals employed by Contractor shall remain employees of
Contractor, notwithstanding that such individuals may be assigned to work under the
direction of Owner, or in the offices of Owner. Without limiting the generality of
the foregoing, each Party shall separately bear and be solely responsible for the
individuals that it employs and all matters associated with such employees,
including without limitation, the payment of salaries and wages, income tax
withholding, employment insurance and Canada Pension Plan contributions, the
establishment, funding and administration of benefits plans, holiday scheduling,
career management, discipline, direction of work, allocation of assignments,
hiring, training, termination, liability and insurance.
	 
	 	5.3	 	Contractor shall not subcontract performance of all or any portion of the
Work under this Agreement without first notifying Owner of the intended subcontracting
and obtaining Owner’s approval, in writing, of the subcontracting and the
Subcontractor. If requested by Owner, Contractor shall furnish Owner with a copy of
the proposed subcontract.
	 
	 	5.4	 	Contractor shall be fully responsible for the acts and omissions of its
Subcontractors as if such Subcontractors were employees of the Contractor. Nothing
contained in this Agreement shall be construed as creating any contractual
relationship between Owner and any Subcontractor of the Contractor. Subcontractors
and their performance of all or any portion of the Work shall be governed by the same
terms and conditions as those applicable to the Contractor set out in this Agreement
to the extent possible, including without limitation the Owner’s right to audit.
	 
	 	5.5	 	Contractor covenants with Owner that any and all Subcontractors retained by
Contractor for the performance of the Work under this Agreement shall, unless
otherwise specified herein, comply fully with the terms, conditions and covenants
contained in this Agreement as they may be applicable to that portion of the Work
performed by such Subcontractor.
	 
	 	5.6	 	Notwithstanding any prior approval obtained under Article 5.3, if any event
occurs or circumstance arises in relation to a Subcontractor, the Work or the Project
which, in the opinion of Owner, would entitle Owner to terminate the rights of the
Contractor pursuant to this Agreement if such event occurred or circumstance arose
with respect to the Contractor, Owner may require the Contractor to discharge any such
Subcontractor and to cancel and terminate its contract with such Subcontractor, all
without cost or liability to Owner.
	 
	 	5.7	 	Owner shall retain the right, but no obligation, to appoint Contractor or any
Subcontractor to act as its agent solely in respect of those matters specifically
delineated by Owner in a Change Order issued to Contractor as evidence of such
appointment and the scope and authority thereof.

	6.0	 	COORDINATION WITH THIRD PARTIES AND OWNER’S OPERATIONS

	 	6.1	 	The Project will be an operating facility, and as such, presents risks and
impediments to the performance of the Work, in terms of its remote location as well as
safety, congestion and coordination. The Contractor is responsible to interface with
the Owner and Third Parties to ensure that its
actions and those of its employees, agent and Subcontractors are harmonious with
the safe and continued operations of the Project.
	 
	 	6.2	 	Contractor shall schedule and coordinate the performance of the Work with
work being performed by the Owner and Third Parties connected with the Project.
	 
	 	6.3	 	The Contractor shall ensure that no activities or actions are undertaken in
the performance of the Work or otherwise, which would adversely affect, restrict or
limit in any way the continued operations of the Owner’s plant or the Project.
	 
	 	6.4	 	Contractor shall accept and comply with Owner’s Common Services Agreements in
respect of radio equipment (plant site), plant site waste collection, propane supply
and delivery, and welding and bottled construction gases.
	 
	 	 	 	 

			
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	7.0	 	ASSIGNMENT AND ENUREMENT

	 	7.1	 	Contractor shall not assign this Agreement wholly or in part, voluntarily, by
operation of law, or otherwise without obtaining the prior written consent of Owner.
	 
	 	7.2	 	Owner reserves the right at its sole option to assign and transfer all
benefit under this Agreement and any assignee shall agree to be bound by the rights,
duties, representations, warranties, covenants and obligations of Owner hereunder.
	 
	 	7.3	 	This Agreement shall be binding upon and shall ensure to the benefit of the
Parties and their respective administrators, trustees, receivers, successors and
permitted assigns.

	8.0	 	PERSONNEL

	 	8.1	 	The Contractor shall identify their Contractor’s Representative and such
person shall have the authority to bind the Contractor on all matters relating to the
Work and the Contract, and all communications to or with the Contractor’s
Representative shall be deemed to be communications to or with the Contractor. The
Contractor shall not change the Contractor’s Representative except with the prior
written consent of the Owner.
	 
	 	8.2	 	The Contractor shall provide a sufficient number of employees to enable
timely and proper execution and completion of the Work. All employees shall be
competent, efficient and qualified by education, training, experience and in all other
respects to carry out the tasks to which each is assigned. At the Owner’s request,
the Contractor shall reassign, replace or remove employees who, in the Owner’s sole
discretion, do not meet the within requirements, or who have committed a violation of
the Owner’s posted or published safety, security, or site regulations, rules or
procedures.
	 
	 	8.3	 	The Contractor has designated the following five (5) individuals as its Key
Personnel dedicated to the Work at the CNRL Site:

	 	•	 	Barry Palmer – Site Manager
	 
	 	•	 	Doug Smith – Equipment Manager
	 
	 	•	 	Chris Turko – Mining Superintendent
	 
	 	•	 	Bruce Noble– Safety Coordinator
	 
	 	•	 	Tom Colbourne – Technical Team Leader

	 	8.4	 	The Contractor shall be entitled to substitute other individuals as its Key
Personnel during the Term, provided however, that the Contractor shall give the Owner
prior written notice and shall obtain the Owner’s written approval prior to effecting
such substitution.
	 
	 	8.5	 	Thirty (30) calendar days prior to the Construction Commencement Date, the
Contractor shall submit a proposed organizational chart for the Owner’s approval. The
organizational chart shall show the Key Personnel and the other supervisory and staff
employees who will be performing the Construction together with their respective job
titles.
	 
	 	8.6	 	Thirty (30) calendar days prior to the Overburden Removal Commencement Date,
the Contractor shall submit a proposed organization chart for the Owner’s approval.
The organizational chart shall show the Key Personnel
and the other supervisory and staff employees who will be performing the Work
(other than Construction), together with their respective job titles.
	 
	 	8.7	 	The Contractor shall comply with all Regulations regarding employment.
	 
	 	 	 	 

			
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	Contract Number: 400472
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	 	8.8	 	Contractor acknowledges that Owner wishes to ensure that labour harmony be
maintained for the Project and Contractor shall at all times co-operate with Owner
to achieve this harmony. Contractor shall at all times, and to the greatest extent
practicable, exercise its best efforts and judgment as a skilled and experienced
contractor to manage its operations and adopt and implement policies and practices
designed to avoid stoppages, slowdowns, disputes, strikes and similar dissonance in
connection with the Work. Without limiting the generality of the foregoing,
Contractor shall utilize its best efforts to achieve and maintain stable labour
relations, and avoid work stoppages and other labour disputes that may affect the
performance of any Work by Contractor or another contractor or Owner relating to or
arising from the Work performed by Contractor, or its Subcontractors, or materials
or equipment supplied for the Work by Contractor or its Subcontractors.
	 
	 	8.9	 	Contractor represents, warrants and confirms to Owner that Contractor shall
use its best efforts to ensure that no collective or other agreement with Contractor’s
workers or between its Subcontractors and their workers, and no expiry or termination
of any such agreement will adversely affect or delay Contractor’s performance under
this Agreement.
	 
	 	8.10	 	Contractor confirms that for the duration of this Contract, Contractor shall
use its best efforts to ensure that there shall be no strikes by its workforce engaged
in the performance of the Work nor shall it lockout its workforce engaged in the
performance of the Work. Contractor further acknowledges that, in addition to labour
under the direct control of Contractor, Owner may engage labour at the CNRL Site,
through other contractors, Owner’s staff or otherwise, that may or may not be
associated with labour organizations similar or dissimilar to the labour positioning
of Contractor.

	9.0	 	TAXES, DUTIES AND FEES

	 	9.1	 	Contractor shall be liable and responsible for all applicable taxes, duties
or levies of any kind imposed upon Contractor by any Governmental Authority having
jurisdiction over the Contractor or the Work, including but not limited to, sales
taxes, GST, value-added taxes, international levies, duties and income taxes. It is
expressly understood and agreed that no additional payment will be made by Owner to
compensate Contractor or its Subcontractors as a result of costs associated with any
tax obligations of Owner or Contractor.
	 
	 	9.2	 	Contractor shall be liable and responsible for the payment of all employment
taxes and contributions imposed by Regulations, or required to be paid on behalf of
the employees of the Contractor, its Subcontractors, including but not limited to,
taxes and contributions for income tax, workers’ compensation, employment insurance,
old age benefits, welfare funds, pensions and annuities and disability insurance.
	 
	 	9.3	 	Withholding Tax

	 	9.3.1	 	Owner may deduct or withhold from any payments made under
this Agreement any such amounts that are required to be deducted or withheld
therefrom under applicable Regulation and shall remit such amounts to the
specified Government Authority. In this respect, Owner shall, within a
reasonable amount of time, furnish a tax form, receipt or other evidence to
Contractor that shows payment of any tax or withholding permitted under the
foregoing.

	 	9.3.1.1	 	For greater certainty and without limitation to the foregoing,
Owner is obligated by the Income Tax Act (Canada) to withhold, at
the then applicable rate, a percentage of the value of Work
performed in Canada under this Agreement by non-resident
Contractors from payments made to Contractor hereunder.

	 	9.3.2	 	It is the Contractor’s sole responsibility to assess its
liability, impact on its operations and to fully assess the impact of tax
withholding, exemptions, waivers, tax credits and the like which may be
available under reciprocal agreements with Canadian and foreign countries.
	 
	 	 	 	 

			
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	 	9.3.3	 	Where permitted by the applicable Regulations, Contractor
may be eligible for tax credits in its country of residence or for rebates
from the applicable Government Authority for any amount of withholding tax
collected by Owner and remitted on behalf of the Contractor to such applicable
Government Authority.
	 
	 	9.3.4	 	Where permitted by the applicable Regulations, Contractor
may apply for, and at the discretion of the applicable Government Authority
(including the Canadian tax authorities) receive a waiver in respect of such
deductions or withholdings. If a waiver is obtained, Contractor shall:

	 	9.3.4.1	 	immediately advise Owner thereof;
	 
	 	9.3.4.2	 	provide Owner with a copy of such waiver;
	 
	 	9.3.4.3	 	comply with any conditions or restrictions imposed upon the
Contractor by the Government Authority in granting the waiver; and
	 
	 	9.3.4.4	 	comply with any applicable provisions of the Regulations that
would apply to Contractor by virtue of having obtained the waiver.

	 	 	 	Upon receipt of appropriate official written evidence or documentation in
respect of such waiver having been obtained, Owner shall not deduct or
withhold the applicable tax from the amounts subject to such waiver in
accordance with the applicable Regulations. In the event that Contractor
provides evidence of its exemption, Contractor represents that any
official written evidence or documentation furnished to Owner shall be
accurate, complete and in accordance with the applicable Regulations.

	 	9.4	 	Goods and Services Tax

	 	9.4.1	 	The Parties acknowledge that the Compensation is exclusive
of any GST or other similar value-added or sales taxes, fees, charges or
levies which may be applicable to the Work and imposed by any Government
Authority with respect to any Invoices issued by Contractor under this
Agreement. Any such GST or other similar value-added or sales taxes, fees,
charges or levies shall be:

	 	9.4.1.1	 	calculated in the manner stipulated herein and as required by the
applicable Regulation;
	 
	 	9.4.1.2	 	reflected on the applicable Invoice in the manner outlined herein;
and
	 
	 	9.4.1.3	 	paid in accordance with the provisions hereof.

	 	9.4.2	 	Contractor shall file with any applicable Government
Authority any remittances or other materials required to be filed pursuant to
the applicable Regulation within the time periods specified therein.

	 	9.4.2.1	 	For the purposes of GST, the applicable Government Authority is
Canada Revenue Agency and the applicable Regulation is the Excise Tax
Act (Canada). The GST registration numbers for the Parties are:

	 	 	 	Contractor: 858071442
	 
	 	 	 	Owner: 121346357RT

	 	9.5	 	Municipal Property Tax

	 	9.5.1	 	Contractor shall fully cooperate with the Owner and shall, upon request by the Owner,
provide all such information as may be required by any municipal taxing authority for the
purpose of the assessment of property taxes in respect of the Contractor’s Facility on the
CNRL Site.
	 
	 	9.5.2	 	In the event that the Owner shall receive one municipal property tax assessment and/or
municipal property tax bill in respect of the entire CNRL Site, the Contractor shall, upon
notice thereof and receipt of reasonable documentation from the Owner, pay to the Owner its
share of such tax assessment or tax bill as determined by the Owner, acting reasonably.
	 
	 	 	 	 

			
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	 	9.5.3	 	Contractor shall, in any event, be solely responsible for the payment when due of any and
all municipal taxes assessed in respect of its Facility or its equipment or operations during
the Term.

	10.0	 	INVOICING AND PAYMENTS

	 	10.1	 	Contractor shall prepare all Invoices in a form satisfactory to and approved
in advance by Owner and shall be accompanied by such supporting documentation as may
be required by Owner. Any Invoice submitted, which fails to comply with the terms of
this Agreement, including the requirements of form and documentation, may be returned
to Contractor and any costs associated with the resubmission of a proper Invoice shall
be for the account of Contractor.
	 
	 	10.2	 	The Contractor shall prepare and submit Invoices for all Work performed
hereunder, in accordance with Section “D” – COMPENSATION and the Owner shall pay the
same in accordance with the terms outlined therein.

	11.0	 	RIGHT TO OFFSET

	 	11.1	 	Owner shall, without waiver or limitation of any other rights or remedies of
Owner hereunder, be entitled from time to time to deduct from any amounts due or owing
to Contractor in connection with this Agreement (or any other contract or agreement
between Contractor and Owner), any and all amounts owed by Contractor to Owner.

	12.0	 	LIENS

	 	12.1	 	The Contractor will comply with the Builders’ Lien Act (Alberta) and all
requirements thereof. The Owner will restrict holdback to the Construction portion of
the Work and in order to affect release of the holdback funds, the Contractor shall
issue and post a certificate of substantial completion in accordance with the said Act
and submit a statutory declaration duly notarized acknowledging compliance.
	 
	 	12.2	 	Contractor shall keep the property of Owner free from all builders’,
laborers’, material-men’s, and mechanics’ claims, liens, and encumbrances arising from
Contractor’s or Subcontractors’ performance of the Work and notwithstanding any
omission or failure on the part of the Owner to comply with the Builders’ Lien Act
(Alberta), Contractor agrees to be liable to the Owner for and be liable to defend,
indemnify and hold harmless Owner from and against all such claims, liens, and
encumbrances.
	 
	 	12.3	 	If Contractor fails to release and discharge any claim of lien of others
against Owner’s property within fifteen (15) Business Days after receipt of notice
from Owner to remove such claim of lien, Owner may, at its option, discharge or
release the claim of lien, or otherwise deal with the lien claimant and Owner shall
deduct any and all Losses incurred by Owner in respect thereof, from any amounts owed
or owing to Contractor.

	13.0	 	RISK MANAGEMENT

	 	13.1	 	Owner places the highest importance on the health, safety and environmental
protection of all persons, property, and reputation related to the Project.
	 
	 	13.2	 	Contractor shall be responsible for conducting its operations in the
performance of the Work under this Agreement to avoid risk of harm to the health and
safety of all persons and property as well as to the environment and shall comply with
the directives and policies of the Owner, including any changes thereto from time to
time, to the extent that such directives and policies are made known to the
Contractor.
	 
	 	13.3	 	Contractor shall be, and shall ensure that its employees, Subcontractors and
agents are, in strict compliance with all health, safety and environmental Regulations
applicable to the performance of the Work hereunder.
	 
	 	13.4	 	Contractor shall maintain independent health, safety and environmental
management systems specific to the hazards of the Work as well as employing a method
of measuring its performance in relation to these systems.
	 
	 	 	 	 

			
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	Contract Number: 400472
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	 	13.5	 	In the performance of the Work and the implementation of security in respect
thereof, Contractor shall take all reasonable means and precautions to avoid and
prevent the loss, theft or damage, by vandalism, sabotage or other means, of or to
any property (personal or real) associated with or affected by the Work (including
its own property).
	 
	 	13.6	 	Contractor shall follow a conventional hazard review protocol with the
objective of achieving an early and cost effective reduction in risk exposure by
applying such hazard review methods or techniques at the appropriate phase of the Work
and its integration into the Project.
	 
	 	13.7	 	In the event of a discrepancy between the risk management requirements
identified by Owner and those identified by Contractor (in Reference Manuals or
otherwise), Contractor shall follow the strictest level of risk management requirement
stipulated in order to perform the Work.
	 
	 	13.8	 	Contractor shall retain all documentation, records or Drawings associated
with the risk management hereunder for the duration of the Work. Such materials shall
be delivered to Owner in a format agreed to by the Parties in advance upon completion
of the Work or the termination of this Agreement, unless otherwise agreed to by the
Parties, in writing.
	 
	 	13.9	 	Owner shall be entitled to initiate periodic audits on the various risk
management processes and procedures implemented by Contractor hereunder. Costs
associated with rectifying any non-compliance discovered through the conduct of an
audit shall be borne proportionally by the Parties and any Third Parties in accordance
with the findings of the audit.

	14.0	 	INSURANCE

	 	14.1	 	Contractor shall, at its sole cost, obtain and maintain in force from
insurers licensed to do business in the Province of Alberta for the duration of the
Agreement insurance of the following types, with limits not less than those set forth
below:

	 	14.1.1	 	Workers’ Compensation: Contractor shall comply with all applicable workers’
compensation Regulations and any other similarly applicable Regulations and shall, before
commencing any Work under this Agreement, deliver a Certificate to Owner from the appropriate
Government Authority governing workers’ compensation matters, showing that Contractor has
registered and is in good standing therewith;
	 
	 	14.1.2	 	Property Insurance which provides all risk and replacement cost coverage for the
Facility, the Contractor’s equipment, Equipment, Replacement Equipment including, without
limitation, non-owned or unlicensed equipment or vehicles used by the Contractor in connection
with the Work. The policy shall indicate that all such items are covered notwithstanding that
they are not located on the Contractor’s premises. This policy shall contain the insurer’s
waiver of subrogation as against the Owner;
	 
	 	14.1.3	 	Commercial General Liability Insurance: Occurrence Form insurance covering bodily
injury (including death) and property damage (including loss of use of property) with a
minimum combined single limit of liability of Five Million Dollars ($5,000,000) per
occurrence, which shall include each of the following:

	 	A.	 	contingent employers’ liability coverage;
	 
	 	B.	 	blanket contractual liability coverage;
	 
	 	C.	 	personal injury coverage;
	 
	 	D.	 	owned and non-owned automobile liability
coverage;
	 
	 	E.	 	products and completed operations liability
coverage; and
	 
	 	F.	 	occurrence property damage coverage;
	 
	 	G.	 	broad form property damage coverage;
	 
	 	 	 	 

			
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	 	H.	 	a Limited Pollution Exclusion Endorsement with a combined single
minimum limit of Two Million Dollars ($2,000,000) per accident,
covering environmental damage (air, land or water) arising from a
sudden, unintended or unexpected event resulting from or
associated with the Work; and a cross-liability clause;

	 	14.1.7	 	Automobile Liability Insurance: Insurance covering use of all owned and non-owned
automobiles used directly in connection with the Work performed under this Agreement, covering
bodily injury, death, property damage and loss of property or loss of use of property with a
minimum combined single limit of liability of Three Million Dollars ($3,000,000) per accident;
and
	 
	 	14.1.8	 	Aircraft or Watercraft Insurance: Where applicable, insurance coverage for owned or
non-owned aircraft, in an amount not less than Three Million Dollars ($3,000,000) per seat,
and owned or non-owned watercraft, in an amount not less than Three Million Dollars
($3,000,000) per passenger, when used in connection with the Work.

	 	14.2	 	Subject to the other provisions of this Agreement, Contractor shall obtain
any other insurance which is required by Regulation to be obtained as well as other
insurance as may, from time to time, be requested by Owner acting reasonably.
	 
	 	14.3	 	Each of the foregoing policies of insurance shall include Owner and
Subcontractors and their respective directors, officers, agents, consultants and
employees as additional named insured.
	 
	 	14.4	 	Contractor shall maintain the insurance required above during the conduct of
the Work and for not less than twelve (12) calendar months after the completion and
acceptance of the Work.
	 
	 	14.5	 	Contractor hereby releases Owner and its Affiliates, directors, officers,
agents and employees and shall cause its insurers to waive their rights of subrogation
against such released parties, for Losses for bodily injury, property damage or other
insured claims arising out of the performance of the Work by Contractor under this
Agreement.
	 
	 	14.6	 	Certificates of Insurance satisfactory in form to Owner (ACCORD Form or
equivalent) shall be supplied to Owner evidencing that:

	 	14.6.1	 	the insurance required above is in force;
	 
	 	14.6.2	 	not less than twenty (20) Business Days written notice will be given to
Owner to request the Owner’s approval prior to any cancellation or restrictive
modification of the policies; and
	 
	 	14.6.3	 	the waivers of subrogation are in force.

	 	 	 	Contractor shall also provide, with its Certificate of Insurance, executed copies
of the additional insured endorsements required in Article 14.3 above. Upon request
by Owner, Contractor shall provide a certified copy of each insurance policy
required under this Agreement.
	 
	 	14.7	 	The foregoing insurance coverage shall be primary and non-contributing with
respect to any other insurance or self insurance which may be maintained by Owner.
Contractor’s General and Automobile Liability Insurance policies shall contain a
Cross-Liability or Severability of Interest clause.
	 
	 	14.8	 	Compliance by Contractor in obtaining the insurance required in this Article
shall not reduce or affect any other obligations or liabilities Contractor may have
under this Agreement.
	 
	 	14.9	 	Contractor is fully responsible for the deductible amounts that may become
payable under the terms of any one or all of the above referenced policies.
	 
	 	14.10	 	An insurers refusal to or failure to pay any claim hereunder shall not serve
to limit the obligations or liabilities assumed by the Contractor.
	 
	 	14.11	 	Contractor shall report its claims and recover losses under the aforesaid
insurance and shall notify and keep Owner advised of all such claims.
	 
	 	 	 	 

			
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	Contract Number: 400472
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	 	14.12	 	The Contractor shall secure from its Subcontractors the same types and
limits of insurance as provided for herein.
	 
	 	14.13	 	The Contractor shall advise the Owner in writing of any and all changes to
or renewals of the said insurance policies and shall forthwith provide the Owner with
insurance certificates of all such policy changes or renewals.

	15.0	 	INDEMNITIES

	 	15.1	 	Each Party shall be liable to the other Party for and hereby agrees that it
shall release, defend, indemnify and hold such other Party, its Affiliates and all of
their respective directors, officers, employees, agents and representatives, harmless
from and against any Losses which would not have been incurred had all of the
representations and warranties contained in Article 2 been accurate, true and correct
when made, provided however, that the Party relying upon this section relied upon such
representations and warranties and such Losses were not the result of the actions or
omissions of such Party.
	 
	 	15.2	 	Contractor shall be liable to the Owner and hereby agrees that it shall
release, defend, indemnify and hold the Owner, its Affiliates and their respective
directors, officers, employees, agents and representatives harmless from and against
any and all Losses suffered, sustained or incurred by the Owner or its employees or
agents in connection with the performance or non-performance of the Work under this
Agreement, regardless of cause.
	 
	 	15.3	 	In addition, without limiting the generality of the foregoing, Contractor
shall be liable to the Owner and Contractor hereby agrees that Contractor shall
defend, indemnify and hold Owner and its Affiliated companies, and all of their
respective directors, officers, employees, agents and representatives, harmless from
and against any Losses arising from or relating to:

	 	15.3.1	 	The actual or asserted failure, by Contractor, to comply with any Regulation
including, but not limited to, any and all fines or penalties assessed by any
Government Authority and any claims made against Owner arising from the actual
or asserted failure, by Contractor, to pay taxes.
	 
	 	15.3.2	 	The actual or asserted violation or infringement of any intellectual
property rights a Third Party may hold in any patent, copyright, proprietary
information, trade secret or other intellectual property right caused or
alleged to be caused by the disclosure, implementation, use, or delivery of
goods, materials, equipment, methods, processes, designs, or information
furnished by Contractor, its Subcontractors or agents to Owner in the
performance of the Work.
	 
	 	15.3.3	 	The injury to or death of Third Parties or the damage to or loss of Third
Party property arising directly or indirectly out of this Agreement and the
Work performed hereunder or out of any acts or omissions of Contractor,
its Subcontractors or agents.
	 
	 	15.3.4	 	The actual or alleged contamination, pollution, or public or private
nuisance, arising directly or indirectly out of this Agreement and the Work
performed hereunder or out of any acts or omissions of Contractor, its
Subcontractors, agents or suppliers.
	 
	 	15.3.5	 	Any failure by the computer software, hardware and systems utilized by
Contractor in the performance of the Work or incorporated into the Work to
adequately process, without error or fault, any and all information and data
in a manner suitable for the Work.

	 	15.4	 	The Owner shall indemnify and save the Contractor harmless from all claims
arising out of any patent infringement pertaining to any materials, processes or
designs supplied by the Owner to the Contractor for use in connection with the Work.
	 
	 	15.5	 	The obligation to indemnify, defend and hold a Party, its Affiliates and all
of their respective directors, officers, employees, agents and representatives,
harmless shall include any Losses incurred by the indemnified Party for any legal
action required to be taken by the indemnified Party to enforce the indemnity
obligations hereunder.
	 
	 	 	 	 

			
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	Contract Number: 400472
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	 	15.6	 	The obligation to indemnify a Party shall apply, notwithstanding the
concurrent negligence of the indemnified Party, except where the Losses were caused
solely by the negligence of the indemnified Party.
	 
	 	15.7	 	A Party who is or becomes aware of Losses which arise out of activities
undertaken pursuant to this Agreement that are being alleged by a Third Party shall
forthwith notify the other Party hereto of such allegations.
	 
	 	15.8	 	Notwithstanding any other provision herein:

	 	15.8.1	 	Except for damage to or loss of third Party property, including consequential loss or damage
and injury to or death of any Third Party to the extent caused by Contractor and arising out
of or in relation to its performance of the Contract, the Contractor shall not be responsible
to the Owner for any punitive, special, indirect or consequential loss, loss of use, loss of
revenue, overhead and profit, or loss of any contract that may be suffered or incurred by the
Owner in connection with or arising out of the performance or non-performance of the Work or
the Contract whether such liability is based on or claimed to be based upon contract, tort,
including negligence, strict liability or other act or omission on the part of the Contractor
causing the damage or loss to the Owner. This limitation does not extend to loss or damage to
the Owner arising out of or relating to Contractor’s, willful misconduct, fraud or those
matters described in Articles 15.3.2 through 15.3.4.
	 
	 	15.8.2	 	Except for damage to or loss of Third Party property, including consequential loss or
damage, and injury to or death of any third party to the extent caused by Owner arising out of
or in relation to its performance of the Contract, the Owner shall not be responsible to the
Contractor for punitive, indirect or consequential loss incurred by Contractor in connection
with or arising out of the performance of the Work or the Contract whether such liability is
based or claimed to be based upon contract, tort, including negligence, strict liability, or
other act or omission on the part of the Owner causing the damage or loss to the Contractor.
This limitation does not extend to loss or damage to the Contractor arising out of or relating
to the Owner’s willful misconduct or fraud.

	16.0	 	TITLE AND RISK

	 	16.1	 	Any product, whether completed or otherwise, and including surface
facilities, buried items, electrical distribution grids, or other items constructed on
the Owner’s premises, shall have title with the Owner, with the exception only of the
Facility and those items affixed to said Facility.
	 
	 	16.2	 	Unless and until purchased by Owner as contemplated herein, title to the
Facility and all Equipment, Replacement Equipment and items deemed as Contractor’s
Overhead shall at all times remain with the Contractor.
	 
	 	16.3	 	All risks, including theft, damage or other loss, of goods and property of
any nature or kind including, without limitation, the Facility, Equipment and
Replacement Equipment, under the care, custody and control of the Contractor shall
remain with the Contractor, including those items where title belongs to the Owner.
Contractor shall be responsible for replacement in kind, at no cost to the Owner.
	 
	 	16.4	 	In the event the Owner purchases or otherwise assumes title for the Facility
or other Contractor owned goods or property, the Contractor shall, subject to Article
24.2, have care, custody and control of such until expressly transferred to the Owner
in writing, following execution of the transaction to purchase or otherwise.
	 
	 	16.5	 	The Contractor shall assume all risk and be responsible for all items
furnished by the Contractor and its Subcontractors and other items delivered to the
Contractor, which are to be incorporated into or used in the Construction of the
Facility or the Work or used in the performance of the Work, and for all temporary
structures and facilities and for all Work completed or in progress until acceptance
thereof by the Owner.
	 
	 	 	 	 

			
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	 	Section “B” — Terms & Conditions
	Contract Number: 400472
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	17.0	 	DOCUMENTATION AND RIGHT OF AUDIT

	 	17.1	 	Contractor shall maintain all documents, information, records and accurate
accounts pertaining to Work performed hereunder, including such other documentation
and related systems and controls necessary for an accurate audit and verification of
costs of all Work, for a period of at least six (6) years following receipt of final
payment hereunder. Contractor shall also obtain and produce for inspection and audit
by Owner any documents, records, books of account or other information which are the
property of any Subcontractors, Affiliates or subsidiaries that may be deemed
necessary in accordance with generally accepted accounting principles and generally
accepted auditing standards.
	 
	 	17.2	 	Owner shall have the right, on reasonable notice, to audit (including without
limitation, any quality, environmental, health and safety audits authorized herein),
copy and inspect said documents, information, records and accounts at all reasonable
times during the course of such Work and for six (6) years following the payment by
Owner of the Invoice.
	 
	 	17.3	 	Owner shall provide Contractor with a written report outlining any claims
uncovered by its audit within sixty (60) Business Days of having completed the review
of documentation, materials, information, records and accounts provided by Contractor
hereunder.
	 
	 	17.4	 	Contractor shall respond, in writing, to each of the claims raised by Owner
in its audit report and provide copies of all such documentation, materials,
information, records and accounts substantiating its response, if any, within sixty
(60) Business Days of having received such audit report.
	 
	 	17.5	 	Any amounts owing to Owner pursuant to the settlement of any audit claims
shall be paid by Contractor within fifteen (15) Business Days of the resolution
thereof. In the event that any audit claims cannot be resolved within fifteen (15)
Business Days of the issuance of the response of the Contractor, either party may
utilize the dispute resolution mechanisms outlined in Article 28.
	 
	 	17.6	 	The Contractor shall permit the Owner and its authorized agents to review the
Contractor’s preventative maintenance program and all service records and
documentation related thereto which it is required to maintain pursuant to Section “C”
– SCOPE OF WORK.
	 
	 	17.7	 	The Contractor shall permit the Owner and its authorized agents to review all
the costs and expenses incurred by the Contractor to perform the Work, as more
particularly set out in the Productivity and Cost Management Specification, included
in Section “E” – ATTACHMENTS.

	18.0	 	INSPECTION AND ACCESS

	 	18.1	 	Owner shall, at all times, have access to the Work wherever located and at
whatever stage in preparation or progress, and Contractor shall provide sufficient,
safe and proper facilities for such access and inspection. Inspection or lack of
inspection by Owner shall not be deemed to be a waiver of any rights under any
guarantees provided by Contractor or of any right to subsequently reject defective
Work on the part of Owner.
	 
	 	18.2	 	The Contractor shall inspect and be solely responsible for the inspection of
all workmanship, materials and equipment furnished by the Contractor and
Subcontractors in respect of the Work, to ensure that the same conform in each and
every respect to the requirements of the Contract.
	 
	 	18.3	 	If Regulations or any governmental agency or body requires inspection or
testing of any part of the Work or Equipment, Replacement Equipment,
vehicles, tools or other equipment, the Contractor shall provide the Owner with
sufficient advance notice of the arrangements for such inspection or test, and
shall comply fully with requirements of such Regulations, agency or body all at
Contractor’s expense.
	 
	 	18.4	 	If the Contract or the Owner’s instructions require any inspection or test to
be performed or witnessed by the Owner, the Contractor shall provide the Owner with
sufficient advance notice of its readiness for the said inspection or test. If any
Work is closed or
	 
	 	 	 	 

			
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	Contract Number: 400472
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	 	 	 	covered without the Owner’s permission before the required
inspection, witnessing or testing has been performed, then it must, if required by the
Owner, be opened or uncovered for inspection or witnessing and re-closed or recovered,
all at the Contractor’s expense.
	 
	 	18.5	 	The Owner shall have the right to inspect all Equipment, Replacement
Equipment, vehicles, tools and equipment when they are brought onto the CNRL Site and
at any time during the progress of the Work and at any location on the CNRL Site,
including on the Contractor’s Facility Site. Contractor shall also maintain complete
documentation relating to repairs, maintenance and inspections of Equipment,
Replacement Equipment, vehicles, tools and equipment and shall make the same readily
available for audit or inspection by the Owner upon Owner’s request. If any tool or
item of equipment is, in the Owner’s sole judgment, unsafe or incapable of doing the
work for which it was intended, the Contractor shall repair or replace it with a safe
and capable tool or item of equipment at the Contractor’s expense. The foregoing does
not relieve the Contractor of its responsibility for safety related to tools and
equipment pursuant to Article 13.
	 
	 	18.6	 	The Contractor shall provide reasonable facilities for any inspections or
tests to be made by the Owner in accordance with the Contract, or otherwise in
accordance with the Owner’s instructions.
	 
	 	18.7	 	Other than as provided in Articles 7.9 and 7.10 of Section “C” – SCOPE OF
WORK, any inspection, testing, or witnessing of inspections or tests by the Owner, or
omission or failure on part of the Owner to inspect, disapprove or reject any Work or
portion thereof, shall not be construed to be an acceptance of any such Work or
portion thereof. Any such omission or failure by the Owner shall not relieve the
Contractor of its obligation to ensure that the Work complies with the Contract and is
free from defects and capable of performing its intended functions.
	 
	 	18.8	 	Contractor shall provide planned and documented inspections as part of its
schedule and shall retain copies of such documentation for audit by the Owner’s
representative.

	19.0	 	QUALITY ASSURANCE

	 	19.1	 	The Contractor shall create a Quality Plan outlining its approach for
ensuring quality during the performance of the Work. The Quality Plan shall be
submitted to the Owner for its review and approval prior to the Construction
Commencement Date and any amendments to the Quality Plan shall be submitted to the
Owner for its review and approval and the Owner shall be entitled to receive a copy of
the Quality Plan and all amendments thereto.
	 
	 	19.2	 	The Contractor shall strictly comply with the Work and all Drawings and
Specifications relating to the Work as set forth in the Contract Documents.
	 
	 	19.3	 	Any modifications to the Drawings and Specifications shall be specifically
dated and numbered as a version thereof.
	 
	 	19.4	 	In the event the Contractor recommends that the Owner accept different
Specifications or requirements and the Owner accepts the Contractor’s recommendation,
the Owner’s acceptance is deemed to be based upon the Contractor’s expertise and its
representations and warranties concerning the suitability of the different
Specifications or requirements.
	 
	 	19.5	 	The Contractor shall keep and maintain the Quality Plan and all Drawings and
Specifications at its office and shall protect the same against loss or damage, but
shall ensure that all of its personnel and Subcontractors requiring access to the
Quality Plan and all such Drawings and Specifications are able to obtain access to the
same at all reasonable times. Where necessary the Contractor shall have copies made
of the Quality Plan and all such Drawings and Specifications in order to facilitate
such access. The Contractor shall and shall require its personnel and Subcontractors
to keep the Quality Plan and all such Drawings and Specifications strictly
confidential.
	 
	 	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “B” — Terms & Conditions
	Contract Number: 400472
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	 	19.6	 	Material shall not be substituted for those specified in the Quality Plan,
Drawings, Specifications or otherwise by the Owner, nor shall “or equal” items be
furnished pursuant to the Quality Plan, Drawings or Specifications without the
prior written approval of Owner.

	20.0	 	WARRANTIES

	 	20.1	 	In addition to the representations, warranties and liabilities set forth
elsewhere in this Contract, the Contractor warrants that:

	 	20.1.1	 	All work performed by the Contractor or its Subcontractors shall comply with
the Contract Documents and the instructions of the Owner, and shall be free
from defects in workmanship errors, omissions and mistakes; and
	 
	 	20.1.2	 	All materials, Equipment and Replacement Equipment furnished by the
Contractor shall be of the best quality and free from defects in workmanship,
and shall be of sufficient size and capacity and in all respects suitable to
fulfill the required operating conditions.

	 	20.2	 	The Contractor shall immediately advise the Owner of any defects in
workmanship, errors, omissions or mistakes in the Work that it discovers or becomes
aware of during the Term.

	21.0	 	NOTICES

	 	21.1	 	All notices, communications and statements (hereinafter “notices”) required
or permitted hereunder shall be in writing, subject to the following provisions. Any
notice to be provided hereunder shall be deemed to be served properly if served in any
of the following modes:

	 	21.1.1	 	by personal delivery to a Party between 8:00 a.m. and 4:00 p.m. on a
Business Day at the address of such Party for notices, in which case the
notice shall be deemed to have been received by that Party when it is
delivered;
	 
	 	21.1.2	 	by facsimile to a Party to the facsimile number of such Party for notices,
in which case, if the notice was sent by facsimile prior to 4:00 p.m. on a
Business Day, the notice shall be deemed to have been received by that Party
when it was sent and, if the notice was sent by facsimile on a day which is
not a Business Day or after 4:00 p.m. on a Business Day, it shall be deemed to
have been received on the next following Business Day; or
	 
	 	21.1.3	 	except in the event of an actual or threatened postal strike or other labour
disruption that may affect mail service, by first class registered postage
prepaid mail to a Party at the address of such Party for notices, in which
case the notice shall be deemed to have been received by that Party on the
fifth (5th) Business Day following the date of mailing.

	 	21.2	 	Where a notice period of forty-eight (48) hours or less may be required, the
applicable notice shall be given in accordance with Article 21.1.1 or 21.1.2 above.
Notices of twenty-four (24) hours or less may be made in the event of an emergency by
telephone and shall be deemed to be received at the conclusion of the conversation if:

	 	21.2.1	 	the telephone conversation is between representatives of the Parties who are
specifically authorized to accept such notice;
	 
	 	21.2.2	 	such representatives are officially on duty at the time of such
conversation; and
	 
	 	21.2.3	 	such telephone conversation and notice are then confirmed pursuant to
Article 21.1.1 or 21.1.2 above.
	 
	 	 	 	 

			
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	 	Section “B” — Terms & Conditions
	Contract Number: 400472
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	 	21.3	 	The address for service of notices hereunder of each of the parties shall be as
follows:
	 
	 	 	 	OWNER:

	 	 	 	 	 
	 	 	CANADIAN NATURAL RESOURCES LIMITED
	 	 	Suite 2500, 855 – 2nd Street S.W.
	 	 	Calgary, Alberta T2P 4J8
	 
	 	 	 	 
	 	 	Attention: Jim Bowers, Commercial Lead, Mine Engineering
	 
	 	 	 	 
	 

	 	Facsimile:
	 	(403) 514-7802
	 

	 	Telephone:
	 	(403) 514-7876

	 	 	 	CONTRACTOR:

	 	 	 	 	 
	 	 	NORAMAC VENTURES INC.
	 
	 	 	 	 
	 	 	Zone 3 Acheson Industrial Area
	 	 	2-53016 Hwy. 60
	 	 	Acheson, Alberta T7X 5A7
	 
	 	 	 	 
	 	 	Attention: Kevin Mather, General Manager of Mining
	 
	 	 	 	 
	 

	 	Facsimile:
	 	(780) 960-7103
	 

	 	Telephone:
	 	(780) 960-7171

	 	 	 	A Party may from time to time change its address for service or its fax number for service
by giving written notice of such change to the other Party.

	22.0	 	CHANGES

	 	22.1	 	The Owner shall have the right, at any time, to make Changes. The Contractor
shall not proceed with a Change until the Owner authorizes it by a Change Order.
	 
	 	22.2	 	Contractor shall not suspend performance of this Agreement during the review
or negotiation of any Change Order, except as may be directed by Owner pursuant to
Article 23. Contractor shall perform all Change Orders in strict accordance with all
the terms, conditions and covenants set out in this Agreement, except as expressly
provided in the Change Order.
	 
	 	22.3	 	The Contractor shall provide the Owner with prompt written notice of the
effect of a Change on Compensation.
	 
	 	22.4	 	Notwithstanding anything else contained herein to the contrary, the Owner
shall not be required to authorize a Change if:

	 	22.4.1	 	The subject matter of the Change results from the default or negligence of
the Contractor or Subcontractor, or failure to comply with the requirements of
this Contract; or
	 
	 	22.4.2	 	The subject matter of the Change is required to correct poor workmanship,
errors, or omissions on the part of the Contractor or Subcontractors; or
	 
	 	22.4.3	 	The subject matter of the Change results from the inability or failure of
the Contractor or any Subcontractor to anticipate subsurface conditions at a
Work site which could reasonably be expected to be present at such a Work
site; or
	 
	 	22.4.4	 	The said instruction, interpretation, decision or act of the Owner, or
revision, addition, deletion or change to the Work does not substantially
affect the Contractor’s performance of the Work; or
	 
	 	22.4.5	 	The Contractor has proceeded with the Work affected, prior to giving the
required notice to the Owner.
	 
	 	 	 	 

			
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	Contract Number: 400472
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	 	22.5	 	In the event that Contractor shall become aware of a trend or issue which is likely
to require a change in the Work, Contractor shall provide written notice of such
trend or issue to Owner, which notice shall be one (1) page in length and shall
describe the trend or issue, its estimated magnitude of cost and schedule impact.

	23.0	 	SUSPENSION OF WORK

	 	23.1	 	Owner may, at any time, and from time to time by written notice to
Contractor, suspend further performance of the Work or any portion thereof. This
notice shall specify the date of suspension, any personnel required to be retained by
Contractor and the estimated duration of the suspension. Upon receipt thereof,
Contractor shall promptly suspend further performance of the Work to the extent
specified and, during the period of such suspension, shall properly care for and
protect all the Work in progress.
	 
	 	23.2	 	Owner may, at any time, withdraw its notice of suspension as to the
performance of all or part of the suspended Work by delivering written notice to
Contractor, specifying the effective date and scope of the withdrawal. Upon receipt
thereof, Contractor shall resume diligent performance of the Work for which the
suspension is withdrawn on the effective date specified for the withdrawal.
	 
	 	23.3	 	The Contractor shall use its employees, equipment and materials in such
manner, and take such other steps as may be necessary or desirable, to minimize the
costs associated with a suspension of the Work. During the period of suspension of
the Work, the Contractor shall secure and protect the suspended Work and all materials
and equipment to be used or incorporated therein.
	 
	 	23.4	 	During the period of suspension of the Work, the Owner shall only pay the
Contractor Construction charges, Equipment charges, Replacement Equipment charges,
Letter of Credit charges contemplated by Section “D” – COMPENSATION and reasonable
Overhead charges. The Contractor shall also be reimbursed for those costs
pre-approved by the Owner that are reasonably incurred by the Contractor as a direct
result of the suspension of the Work. However, under no circumstances shall the Owner
be liable for any damages, whether direct or indirect, or for consequential loss or
damage including, without limitation thereto loss of anticipated profits as a result
of the suspension of the Work or any portion thereof.

	24.0	 	DEFAULT

	 	24.1	 	In the event that:

	 	24.1.1	 	Contractor exhibits conditions of insolvency (for example failure to pay
employees or Subcontractors, or failure to secure financing);
	 
	 	24.1.2	 	A money judgment is obtained against Contractor and Contractor does not
forthwith satisfy such judgment or contest same in good faith by appropriate
proceedings and with all due dispatch and provide Owner with such security as
is reasonably required to ensure that such contestation will involve no
seizure of or process against any of the Equipment, Replacement Equipment,
spare parts inventories, supplies or of any other property of the Contractor
required to enable Contractor to perform its obligations under the Contract;
	 
	 	24.1.3	 	Contractor becomes insolvent or commits an act of bankruptcy or becomes
bankrupt or takes the benefit of any Regulation that may be in force for
bankrupt or insolvent debtors or becomes involved in involuntary winding-up
proceedings;
	 
	 	24.1.4	 	A receiver is appointed for the business, property, affairs or revenues of
Contractor;
	 
	 	24.1.5	 	Contractor shall make default under the provisions of any instrument
creating a mortgage, charge, encumbrance or security interest in or on any of
the Equipment, Replacement Equipment, spare parts inventories, supplies or of
any other property of the Contractor that is required to enable Contractor to
perform its obligation under the Contract unless within such time as will
prevent the exercise under such instrument of the remedies provided therein or
available thereunder, Contractor remedies such default; or
	 
	 	 	 	 

			
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	 	Section “B” — Terms & Conditions
	Contract Number: 400472
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	 	24.1.6	 	Contractor fails to perform or comply with any obligation of this Contract,
including without limitation, failure of the Contractor to achieve either the
volumes or dates set out in any SWA or Work Schedule,

	 	 	 	Contractor shall be considered in default of this Agreement.
	 
	 	24.2	 	In the event of default, the Owner shall have the authority, without
prejudice to any other rights or remedies Owner may have, to exercise one or more of
the following options:

	 	24.2.1	 	To stop any Work affected thereby and hold in abeyance further payments to
Contractor until such failure is remedied;
	 
	 	24.2.2	 	To take possession of the Work, the Equipment, the Replacement Equipment,
the spare parts inventories, supplies and any other property of or under the
control of the Contractor and finish the Work by whatever method Owner may
deem expedient. Following completion of the Work the Owner will pay the
Contractor for all Work satisfactorily performed to the date of such default,
less the sum of any monies already paid to the Contractor and any additional
amounts the Owner paid or must pay to obtain satisfactory completion of the
Work. If the sum of the total cost to Owner of completing the Work, plus all
amounts previously paid to Contractor for the Work, exceeds the Compensation
for the Work, Contractor shall promptly reimburse the difference back to
Owner;
	 
	 	24.2.3	 	In the event the Contractor is in default under Article 24.1.6, the Owner
shall give the Contractor thirty (30) Work Days written notice for the
Contractor to provide an action plan, acceptable to the Owner, to recover from
the shortfall, provided that such notice given by the Owner shall not
constitute a waiver of default hereunder. Notwithstanding the notice provided
by Owner, Contractor shall continue to be in default hereunder until such time
as Contractor has implemented its proposed action plan and the shortfall is
being recovered to the Owners satisfaction, failing which Owner shall be
entitled to exercise its remedies hereunder. The provisions of this Article
are in addition to the provisions of Article 7.8 of Section “C” – SCOPE OF
WORK; or/and
	 
	 	24.2.4	 	To terminate this Agreement by written notice to Contractor, specifying the
effective date of termination.

	 	24.3	 	In all circumstances where Contractor is in default, it shall not make a
claim for extension of time or for increased costs or damages due to any orders by the
Owner to stop the Work.
	 
	 	24.4	 	In the event that this Agreement is terminated pursuant to Article 24.2.4
Owner shall have no obligation to pay any Demobilization charges.
	 
	 	24.5	 	The Parties acknowledge that any default, forfeiture or assignment provisions
contained in this Agreement are, in view of the risks inherent in the Work and the
Project, reasonable and equitable. Each Party hereby irrevocably waives any and all
rights that it may have at law, in equity or under the Regulations against default,
forfeiture or penalty if such provisions are invoked.
	 
	 	24.6	 	Contractor shall include in all leases of Equipment and Replacement Equipment
a clause permitting the free assignment thereof to the Owner as required herein.
Contractor further agrees that in the event of a termination of this Contract due to a
default by the Contractor, the Owner may exercise its right of assumption and obtain
assignment of such leases as it may choose in accordance with this Contract.

	25.0	 	TERMINATION

	 	25.1	 	Except as otherwise provided herein, and provided that this Agreement has not
been Cancelled or terminated pursuant to other provisions herein, this Agreement will
terminate on the Termination Date and final settlement of all accounts and obligations
between the Parties hereto shall occur within ninety (90) calendar days thereof.
	 
	 	25.2	 	Owner shall have the right to terminate with or without cause, the Work or
any portion thereof, at any time, by written notice to Contractor specifying the Work
to be terminated
	 
	 	 	 	 

			
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	 	Section “B” — Terms & Conditions
	Contract Number: 400472
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	 	 	 	and the effective date of the termination. Upon such notice the Contractor shall
discontinue the Work in accordance with the notice, and shall take such steps as may
be necessary to minimize the costs associated with the termination of Work and to
preserve all Work in progress and Work completed to that date. The Contractor shall
be reimbursed for those costs pre-approved by the Owner that are reasonably incurred
by the Contractor as a direct result of the termination of the Work. The Contractor
shall continue to perform all non-terminated portions of the Work, and this Contract
shall remain in full force and effect with respect to those non-terminated portions
of the Work, if any.
	 
	 	25.3	 	Upon Cancellation or termination, Owner shall, as soon as practicable, provide
instructions to Contractor in order to ensure the orderly Demobilization and the
assignment and delivery of all Work in progress and Work completed to date. Contractor
shall turn over all such Work in accordance with such instructions.
	 
	 	25.4	 	In the event of a partial Termination for Convenience:

	 	25.4.1	 	On the effective date of such termination Owner shall purchase from
Contractor and Contractor shall sell to Owner those items of Equipment and
Replacement Equipment (including parts) specified in Appendix “I” of Section
“D” – COMPENSATION that are no longer required for the Work due to the partial
termination. The purchase prices for such items shall be determined in
accordance with Appendix “I” of Section “D” – COMPENSATION;
	 
	 	25.4.2	 	Owner may, within ten (10) calendar days from the date of such partial
termination of the Work, deliver an irrevocable offer to the Contractor to
purchase any other Equipment, Replacement Equipment, spare parts inventories,
supplies or any other property of or under the control of Contractor no longer
required by the Contractor to complete the Work;
	 
	 	25.4.3	 	The Contractor and Owner shall enter into good faith negotiations in respect
of reasonable Demobilization charges to be applied to items not purchased by
the Owner provided that if the Parties are unable to agree upon reasonable
Demobilization charges they shall be as determined by the Owner acting
reasonably; and
	 
	 	25.4.4	 	In addition to the Demobilization charges agreed upon pursuant to Article
25.4.3, Contractor shall recover as complete and full settlement for such
termination, the Compensation the Contractor is entitled to for all terminated
Work satisfactorily executed to the date of termination less all amounts
previously paid to Contractor for the terminated Work in accordance with the
terms of this Agreement.

	 	25.5	 	In the event of a full Termination for Convenience the following shall apply:

	 	25.5.1	 	Owner shall provide to Contractor no less than one (1) years notice
of its intention to terminate;
	 
	 	25.5.2	 	The Contractor shall recover from Owner as complete and full settlement
for such termination:

	 	25.5.2.1	 	The Compensation Contractor is entitled to for all Work
satisfactorily executed to the date of termination; plus
	 
	 	25.5.2.2	 	the Demobilization charges identified in Article 1.6.1 of Section
“D” – COMPENSATION; less
	 
	 	25.5.2.3	 	all amounts previously paid to Contractor for the Work in
accordance with the terms of this Agreement.

	 	25.5.3	 	On the effective date of termination:

	 	25.5.3.1	 	Owner shall purchase from Contractor and Contractor shall sell to
Owner those items of Equipment and Replacement Equipment (including
parts) specified in Appendix “I” of Section “D” – COMPENSATION at
purchase prices to be determined in accordance with Appendix “I” of Section “D” – COMPENSATION;

			
	 	 	 
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	 	Section “B” — Terms & Conditions

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	 	25.5.3.2	 	Owner shall purchase from Contractor and Contractor shall sell to
Owner the Facility at a purchase price to be determined in accordance
with Appendix “I” of Section “D” – COMPENSATION; and
	 
	 	25.5.3.3	 	Owner may deliver an irrevocable offer to the Contractor to
purchase any items of Equipment or Replacement Equipment not referred
to in Article 25.5.3.1.

	 	25.6	 	The Owner shall not be liable for any penalties, damages or losses including,
without limitation, loss of anticipated profits as a result of the termination of the
Work or this Contract by the Owner. The rights and remedies provided in this Article
25 are in addition to the rights and remedies provided by law, equity or under any
other provision of this Contract.
	 
	 	25.7	 	Upon termination of this Contract or the Work or any part thereof, the
Contractor shall, at the request of the Owner, execute and deliver to the Owner all
documents required by the Owner, and shall take all steps required by the Owner to
fully vest in the Owner the rights, benefits and obligations of the Contractor under
existing agreements with the Contractor’s Subcontractors which are related to the Work.
	 
	 	25.8	 	Subject to Article 25.5, in the event this Contract is terminated:

	 	25.8.1	 	The Owner shall have the option to purchase the Facility at an amount
calculated and determined in accordance with the terms of the Net Book Value
Formula as of the date of termination, all as more particularly set out in
Section “D” – COMPENSATION; and
	 
	 	25.8.2	 	The Owner shall be entitled (but not obligated) to offer employment to any
on-site employees of Contractor in accordance with the following procedures:

	 	25.8.2.1	 	Contractor shall provide Owner with a list of employees who may be
available to Owner which list includes, without limitation, information
on the type of job, benefits, salaries and years of service of such
employees and shall use its best efforts to encourage its employees to
accept any potential offer subject to the provisions of Alberta privacy
legislation.
	 
	 	25.8.2.2	 	Owner agrees that it will interview any such employees that Owner
may wish to employ and shall make offers of employment to those of the
employees as Owner shall select, in its sole discretion. Owner shall
control and be responsible for the process of evaluating the employees
and of selecting those employees to whom Owner chooses to make offers
of employment. In evaluating and selecting the employees, Owner may
interview at reasonable times such of the employees as it wishes and,
with the written permission of the particular employee, may review and
retain copies of such employee’s personnel records (if any), including
performance information. However, all of the original personnel
records so maintained by Contractor relating to the employees shall
remain with Contractor and shall not be turned over to Owner.
	 
	 	25.8.2.3	 	An employee who accepts an offer of employment from Owner or
otherwise who commences employment with Owner is referred to as an
“Affected Employee” below. Except as otherwise specifically provided
herein, Owner agrees that, as of the employment date, the Affected
Employees will participate immediately in Owner’s employee benefit
plans and programs which are generally applicable to Owner’s employees
(or, at the time they may retire, will be eligible to participate in
any existing employee benefit plans and programs for which they qualify
based upon their age and service and which are generally applicable to
employees of Owner who have retired), and that all Affected Employees
shall be given credit for the

			
	 	 	 
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	 	Section “B” — Terms & Conditions

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	 	 	 	corresponding service with Contractor and its predecessor
companies prior to the applicable employment date for all
applicable purposes (including, but not limited to, participation
eligibility, vesting and benefit eligibility and severance
obligations) under Owner’s existing and future employee benefit
plans and programs.
	 
	 	25.8.2.4	 	Nothing in this Agreement will impose any obligation on Owner in
respect of the employees who do not accept Owner’s offers of
employment. Other than in respect of conducting interviews of employees
as contemplated herein and other than as authorised by Contractor,
Owner shall not interview, contact or discuss the employment provisions
of this Agreement, or any matter related thereto, with any of
Contractor’s employees, agents, Subcontractors or representatives.

	 	25.9	 	Owner shall have the right to Cancel this Agreement in full for any reason
whatsoever prior to the Overburden Removal Commencement Date. Unless Contractor is in
default as set forth in Article 24.0, upon delivery of written notice of such
Cancellation by the Owner to the Contractor the Contractor shall recover from the Owner
as complete, full and final settlement for such Cancellation, that amount which is set
out opposite the period of time within which the written notice has been received by
the Contractor as set out in Rate Schedule “K” of Section “D” – COMPENSATION and shall
be entitled to no further Compensation whatsoever. For further clarity, the Contractor
and Owner each confirm and agree that, in the event of Cancellation as defined herein,
Article 25.5 shall not apply.

	26.0	 	PREFERENTIAL RIGHTS

	 	26.1	 	In the event the Contractor wishes to either remove from the CNRL Site without
the Owner’s prior written approval (except for maintenance or repair purposes) or
transfer, sell, lease or otherwise dispose of any part or all of the Equipment,
Replacement Equipment, spare parts inventories, supplies or any other property of or
under the control of Contractor required to complete the Work hereunder, as applicable,
Contractor shall send Owner notice of its intention and invite Owner to submit an offer
therefore. Owner shall have thirty (30) calendar days from the date of such
notification to deliver an irrevocable offer in respect thereof.

	 	26.2	 	If the Contractor receives an offer from Owner pursuant to Article 25.4.2,
Article 25.5.3.3 or Article 26.1 of this Section “B” – TERMS AND CONDITIONS, or Article
1.3.7 of Section “D” – COMPENSATION and:

	 	a.	 	accepts the offer, the Parties shall negotiate in good faith
and execute the terms and conditions of a mutually acceptable transfer
agreement within sixty (60) calendar days of acceptance of the offer.
	 
	 	b.	 	if the Contractor does not accept the offer, or if sixty (60)
calendar days elapse and a fully negotiated agreement is not imminent, the
Contractor shall be entitled to terminate negotiations and, for a period of
ninety (90) calendar days thereafter, seek offers to transfer the Equipment,
Replacement Equipment, spare parts inventories, supplies or any other property
of or under the control of Contractor required to complete the Work hereunder,
that is the subject matter of the applicable offer, to a Third Party provided
that such offers shall be subject to the provisions of this Article 26.

	 	26.3	 	In the event the Contractor does not obtain an offer within the ninety (90)
calendar day period described above and Owner shall have tendered to Contractor an
offer referred to in Article 26.2, Owner may resubmit the offer to Contractor and
Contractor shall negotiate in good faith and execute the terms and conditions of a
mutually acceptable transfer agreement in respect of that offer within sixty (60)
calendar days thereof.
	 
	 	26.4	 	Whether pursuant to Article 26.2 or otherwise, once the Contractor and a Third
Party have fully negotiated the final terms and conditions of a transfer of the
Equipment, Replacement Equipment, spare parts inventories, supplies or any other
property of or

			
	 	 	 
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	 	Section “B” — Terms & Conditions

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	 	 	 	under the control of Contractor required to complete the Work hereunder, as
applicable, such final terms and conditions shall be disclosed in detail to Owner in
a notice from the Contractor. Owner shall have the right to acquire the Equipment,
Replacement Equipment, spare parts inventories, supplies or any other property of or
under the control of Contractor required to complete the Work hereunder, as
applicable, from the Contractor on the same terms and conditions agreed to by the
Third Party if, within thirty (30) calendar days of the notice, Owner delivers to
Contractor a notice indicating that it accepts the agreed upon the terms and
conditions thereof.
	 
	 	26.5	 	If Owner does not deliver such notice, the transfer to the Third Party may be
made, subject to the other provisions of this Contract under terms and conditions no
more favorable than those set forth in the notice to the Owner, provided that the
transfer shall be concluded within one hundred twenty (120) calendar days from the date
of the notice, failing which, such notice requirements under Article 26.4 shall be
re-activated.
	 
	 	26.6	 	In the event that a proposed transfer of part or all of the Equipment,
Replacement Equipment, spare parts inventories, supplies or any other property of or
under the control of Contractor required to complete the Work hereunder, as applicable,
involves consideration other than cash then the Contractor shall allocate a reasonable
and justifiable cash value in any notice provided to the Owner hereunder.

	27.0	 	FORCE MAJEURE

	 	27.1	 	Subject to Article 23, delays in or failure of performance by either Party
under this Agreement shall not constitute default hereunder or give rise to any claim
for damages if and to the extent such delay or failure is caused by a Force Majeure.
	 
	 	27.2	 	The Party alleging a situation of Force Majeure shall notify the other Party
immediately in writing upon occurrence of the event giving rise to the Force Majeure,
providing details of the situation, anticipated duration, and action being taken to
mitigate or avoid the effects of the Force Majeure on the Work schedule.
	 
	 	27.3	 	Should the Owner agree the Work or any portion thereof is affected by an event
of Force Majeure then the Owner will:

	 	27.3.1	 	Adjust the schedule for completing the Work or portion thereof by an amount
mutually agreed to by the Parties;
	 
	 	27.3.2	 	Suspend the Work or any portion thereof in accordance with Article 23; or
	 
	 	27.3.3	 	Terminate this Agreement or any portion thereof in accordance with Article
25.

	 	27.4	 	Notwithstanding anything else to the contrary contained herein, an Event of
Force Majeure shall not result in an increase to the Compensation.

	28.0	 	DISPUTE RESOLUTION

	 	28.1	 	The Parties shall use reasonable efforts to resolve any dispute arising between
Contractor and Owner out of this Agreement through consultation and negotiation in good
faith, failing which either Party may, upon delivering written notice to the other
Party, request that the dispute be referred to mediation for resolution.
	 
	 	28.2	 	The Party receiving such notice shall advise the requesting Party of its
election to refer the dispute to mediation for resolution and participate therein, in
writing, within twenty (20) Business Days of the receipt of such notice, failing which
the receiving Party shall be deemed to have elected not to participate in such
mediation.
	 
	 	28.3	 	In the event that the parties agree to refer the dispute to mediation, that is,
an informal, non-binding conference or series of conferences whereby a mediator will
seek to guide the Parties to a resolution of the dispute, the Parties shall agree, in
advance, upon the issues that are in dispute and the selection of the mediator.

	 	28.3.1	 	The parties shall agree upon a mediator who does not have an interest in the
dispute provided that, in the event that the Parties cannot agree upon a
mediator within ten (10) Business Days, the Parties shall deliver a written
request to the Canadian Foundation for Dispute Resolution to select, within two
(2) Business Days, a mediator qualified by education and experience to resolve the
dispute and such person shall act as mediator.

			
	 	 	 
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	 	28.3.2	 	Unless otherwise agreed, the mediation shall commence twenty (20) Business
Days from the appointment of a qualified mediator.
	 
	 	28.3.3	 	The mediation shall continue until the dispute is resolved, or the mediator
determines, in writing, that the dispute cannot be resolved, or forty-five (45)
Business Days shall have passed from the commencement of the mediation.
	 
	 	28.3.4	 	The mediation shall be held in a mutually agreed location, and, to the extent
necessary, any procedural issues shall be determined in accordance with the
applicable laws of the Province of Alberta, other than those laws which would
refer the matters to the laws of another jurisdiction.
	 
	 	28.3.5	 	The Parties shall each pay and bear an equal share of any general costs of
any mediation hereunder (including without limitation compensation for the
mediator). Subject to any other provisions of this Agreement, the Parties shall
each bear their own costs of the mediation hereunder.

	 	28.4	 	In the event that the Parties do not agree to refer a dispute to mediation or
the mediation does not resolve the dispute, either Party may elect to utilize judicial
proceedings in order to resolve the dispute.

	29.0	 	CONFIDENTIAL INFORMATION

	 	29.1	 	Contractor, all Subcontractors and their respective employees and agents shall
maintain in strictest confidence and shall not disclose to any Third Party any
Confidential Information which they may acquire or develop in the course of, or
incidental to, the performance of the Work except in accordance with the provisions of
this Agreement.
	 
	 	29.2	 	With the exception of Inapplicable Sections, the terms, conditions and
obligations of the Confidentiality Agreement shall continue to apply mutatis mutandis
to the Parties and shall be incorporated and form part of this Agreement.

	 	29.2.1	 	For greater certainty and without prejudice to the foregoing, the “Purpose”
under the Confidentiality Agreement shall be read as the “Work” hereunder and
defined terms “Government Authority” and “Laws” therein shall be replaced and
read using the terms “Government Authority” and “Regulation” defined herein,
where Owner is “CNRL”, Contractor is “Recipient” and “Representatives”, when
applied to Contractor, includes Subcontractors, employees and agents thereof.

	 	29.3	 	Further to Section 27 of the Confidentiality Agreement, the terms, conditions
and obligations under this Article shall survive the acceptance or completion of the
Work or the termination of this Agreement for a period of five (5) years from the date
of such acceptance, completion or termination.

	30.0	 	PUBLIC ANNOUNCEMENTS

	 	30.1	 	Contractor shall not release any information nor issue any advertising
pertaining to the Work or this Agreement and the transactions provided for herein
without the prior written consent of Owner, which consent shall not be unreasonably
withheld. Nothing contained herein shall prevent a Party at any time from furnishing
such information:

	 	30.1.1	 	To any Government Authority or to the public if required by applicable
Regulation, provided that Contractor shall advise Owner in advance of any
public statement which they propose to make; or
	 
	 	30.1.2	 	In connection with obtaining consents, authorizations or permits or in order
to comply with this Agreement.

	 	30.2	 	Each Party hereby agrees that it will not use, suffer or permit to be used,
directly or indirectly, the name of any other Party for the purpose of, or in
connection with, in whole or in part, any other activity whatsoever without, in each
instance, first obtaining the written consent of that other Party.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Section “B” — Terms & Conditions

Page 31 of 34

 

 

	31.0	 	STANDARDS OF BUSINESS CONDUCT

	 	31.1	 	Contractor shall exercise reasonable care and diligence to prevent any actions
that could result in a conflict with the best interests of the Owner. This obligation
shall apply to the activities of the Contractor, its Subcontractors and their
respective employees and agents in their relations with the employees of the Owner,
their families, and other Third Parties. In particular, Contractor shall ensure that
written standards are established to prevent Contractor or Subcontractor and their
respective employees or agents from making, receiving, providing or offering gifts
(including entertainment, any payments, loans or other considerations) which could be
perceived in part or in whole as being for the purpose of influencing individuals to
act in a manner which could impact the interests of Owner; Contractor or Subcontractor
and their respective employees, agents or representatives shall not offer or give any
gifts, entertainment, payments, loans or other gratuities to any officer, official,
agent or employee of Owner or any Governmental Authority which may be perceived to
influence or obtain favorable treatment in respect of this Agreement.
	 
	 	31.2	 	Contractor shall immediately report to Owner any attempt or perceived attempt
on the part of any employee or other Party acting on behalf of Owner, to obtain
personal benefit of any kind from Contractor because of the relationship between
Contractor and Owner. Contractor shall provide information or evidence, where required
by Owner, to properly address the foregoing infraction.

	32.0	 	FURTHER ASSURANCES

	 	32.1	 	Each Party will, from time to time and at all times, without further
consideration, do such further acts and deliver all such further assurances, deeds and
documents as shall be reasonably required in order to fully perform and carry out the
terms of this Agreement or any transaction contemplated by this Agreement.

	33.0	 	PERFORMANCE SECURITY

	 	33.1	 	On or before the first Business Day of each Contract Year of the Term the
Contractor shall deliver to the Owner a standby irrevocable Letter of Credit issued or
confirmed in favor of the Owner by a Schedule 1 Canadian chartered bank, the Province
of Alberta Treasury Branches or some other financial institution acceptable to the
Owner in an amount requested by the Owner, not to exceed fifty million ($50,000,000.00)
dollars, by notice in writing to the Contractor given on or before the first day of
November preceding each Contract Year (provided that if in any Contract Year the Owner
shall not give a fresh notice, the notice given or deemed to be given for the prior
Contract Year shall be deemed to be given for the next Contract Year). For clarity,
each such Letter of Credit shall be effective for a one (1) year period commencing upon
issuance as provided herein, or in the event that such Contract Year shall consist of
less than twelve (12) months, then the balance thereof. The Letter of Credit covering
the 2005 Contract Year commencing January 1, 2005 shall be in the amount of five
million ($5,000,000.00) dollars. There shall be no requirement for a Letter of Credit
covering the period commencing on execution of the Contract and ending the first
Business Day of 2005.
	 
	 	33.2	 	Each Letter of Credit shall permit the Owner, from time to time during the
Contract Year, to draw upon the Letter of Credit up to the full amount of the amount
from time to time undrawn under the Letter of Credit by a sight draft drawn on the
issuing bank or financial institution on the presentation to the issuing bank or
financial institution of such sight draft and a certificate of the Owner certifying
that the Contractor has defaulted in the performance of its obligations under this
Agreement, without such bank or financial institution inquiring whether the Owner has
the right as between itself and the Contractor to make such demands and without
recognizing any claims of the Contractor or available to the Contractor at any time or
from time to time. Any other conditions limiting or restricting the Owner from drawing
upon any such Letter of Credit must be, in the sole, absolute and unfettered discretion
of the Owner, satisfactory to the Owner.
	 
	 	33.3	 	The cost of each Letter of Credit issued pursuant to this Article 33 shall be
borne by the Owner and the Contractor in the manner set forth in Article 1.7 of Section
“D” — COMPENSATION.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Section “B” — Terms & Conditions

Page 32 of 34

 

 

	 	33.4	 	Each Letter of Credit given to the Owner pursuant to this Agreement is given as
security for the performance of the covenants, representations, warranties, indemnities
or other obligations of the Contractor contained in the this Agreement and therefore
all amounts drawn by the Owner under a Letter of Credit shall be applied against the
Losses which the Owner shall suffer or incur as a result of any breach by the
Contractor of any of its covenants, representations, warranties, indemnities or other
obligations contained in the this Agreement and to the extent amounts so drawn are
ultimately determined to be more than the aggregate amount of such Losses, the Owner
shall pay such difference to the Contractor and to the extent such amounts drawn are
ultimately determined to be less than the aggregate amount of such Losses, the
Contractor shall pay such difference to the Owner. Subject to the foregoing, nothing
contained in this Article 33 shall limit, affect, restrict or impair any right or
remedy which the Owner may have against the Contractor pursuant to this Agreement, at
law or in equity.
	 
	 	33.5	 	Contractor shall, no later than 120 days after the first quarter and sixty (60)
days after the end of each of the last three (3) quarters of every Contract Year
provide to Owner certified copies of its most recent audited financial statements or
un-audited financial statements, if audited statements are unavailable and any other
documentation and financial information which the Owner shall reasonably require for
this purpose. For clarity, the Contractor shall be required to deliver audited annual
financial statements with un-audited quarterly financial statements being delivered
otherwise.
	 
	 	33.6	 	In addition to any other performance security to be provided by Contractor
hereunder, Contractor shall deliver to Owner concurrently with the execution of this
Contract, a written undertaking of North American Construction Group Inc. (“NAGCI”) to
assume the performance of this Contract in the event of a failure to perform by
Contractor and the written request of the Owner to so assume. Such undertaking shall be
provided at no additional cost to the Owner and shall be in the form attached hereto as
Exhibit “D” of Section “E” — ATTACHMENTS.
	 
	 	33.7	 	Upon receipt of a written request by Owner to Contractor and NACGI, Contractor
shall do all such things and execute all such documents as may be required to effect
the assignment of the Contract to NACGI as contemplated by Article 33.6 and the
undertaking of NACGI.

	34.0	 	CLOSING PROCEDURES

	 	34.1	 	Each option granted to the Owner pursuant to this Agreement to purchase
property from the Contractor shall be a sole, exclusive and irrevocable option and each
notice given by Owner to the Contractor of the exercise of an option shall be in
writing given to the Contractor within sixty (60) days (or such other period as may be
specified in this Agreement) following the date upon which the option became
exercisable. Each sale and purchase of property pursuant to the exercise of any option
shall be completed at the Owner’s head office in Calgary, Alberta as soon as reasonably
possible and in any event within six (60) days following the giving of notice to
exercise the option and at such time all necessary conveyances shall be executed and
delivered by Contractor to Owner in exchange of the payment of the purchased property.
	 
	 	34.2	 	The provisions of Article 34.1 shall apply mutatis mutandis to each purchase
and sale of property by the Owner pursuant to an obligation imposed upon the Owner to
purchase property from the Contractor pursuant to this Agreement.

	35.0	 	TIME

	 	35.1	 	Time shall be of the essence in this Agreement.

	36.0	 	SURVIVAL

	 	36.1	 	If this Agreement is terminated in accordance with its terms, then, except for
the provisions of Articles 2, 14, 15, 17, 26, 29 and 30 which shall survive such
termination and the covenants, warranties, representations or other obligations
breached prior to the time at which such termination occurs, the Parties shall be
released from all of their obligations under this Agreement.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Section “B” — Terms & Conditions

Page 33 of 34

 

 

	 	36.2	 	The provisions, covenants, representations, warranties and indemnities
contained in this Agreement which by their nature are intended to survive the
termination, cancellation, completion or expiration of this Agreement shall continue as
valid and enforceable obligations of the Parties notwithstanding any such termination,
cancellation, completion or expiration.

	37.0	 	WAIVER

	 	37.1	 	The failure by Owner to insist on performance of any term, condition or
instruction, or to exercise any right or privilege included in this Agreement, or its
waiver of any breach of this Agreement, shall not thereafter waive any such term,
condition, instruction, right or privilege.
	 
	 	37.2	 	No failure on the part of any Party in exercising any right or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right or remedy preclude any other or further exercise thereof or the exercise of any
other right or remedy in law or in equity or by statute or otherwise conferred.
	 
	 	37.3	 	No waiver by any Party of any breach (whether actual or anticipated) of any of
the terms, conditions, representations or warranties contained herein shall take effect
or be binding upon that Party unless the waiver is expressed in writing under the
authority of that Party. Any waiver so given shall extend only to the particular breach
so waived and shall not limit or affect any rights with respect to any other or future
breach.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Section “B” — Terms & Conditions

Page 34 of 34

 

 

OVERBURDEN REMOVAL AND MINING

SERVICES CONTRACT

SECTION “C” – SCOPE OF WORK

 

 

INDEX

	 	 	 	 	 	 	 
	1.0	 	DESCRIPTION OF WORK — GENERAL
	 	 	3	 
	 	 	 
	 	 	 	 
	2.0	 	CONTRACTOR’S GENERAL RESPONSIBILITIES
	 	 	4	 
	 	 	 
	 	 	 	 
	3.0	 	OWNER’S GENERAL RESPONSIBILITIES
	 	 	5	 
	 	 	 
	 	 	 	 
	4.0	 	SCOPE OF WORK – CONSTRUCTION AND FACILITY
	 	 	6	 
	 	 	 
	 	 	 	 
	5.0	 	SCOPE OF WORK – OVERBURDEN REMOVAL AND OTHER MINING SERVICES
	 	 	6	 
	 	 	 
	 	 	 	 
	6.0	 	UTILITIES, SERVICES AND FUEL
	 	 	9	 
	 	 	 
	 	 	 	 
	7.0	 	PERFORMANCE SCHEDULE AND SEQUENCE OF WORK
	 	 	11	 
	 	 	 
	 	 	 	 
	8.0	 	REPORTING REQUIREMENTS AND CO-ORDINATION MEETINGS
	 	 	12	 
	 	 	 
	 	 	 	 
	9.0	 	SAFETY AND FIRE PROTECTION
	 	 	13	 
	 	 	 
	 	 	 	 
	10.0	 	SPECIFICATIONS, DRAWINGS, ATTACHMENTS AND EXHIBITS
	 	 	15	 
	 	 	 
	 	 	 	 
	11.0	 	SCHEDULES
	 	 	18	 

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 2 of 18

 

 

SECTION “C”

SCOPE OF WORK

	1.0	 	DESCRIPTION OF WORK — GENERAL

	 	1.1	 	During the Term the Contractor shall provide all labour, supervision,
administration, support services, equipment, materials, supplies, tools, transportation
and all other work and materials necessary or incidental to perform the Work including,
without limitation, Construction, muskeg and mineral soils removal, Overburden Removal,
Contractor’s Dewatering, Survey Work, productivity and cost management and
Demobilization.
	 
	 	1.2	 	The Owner makes no representations or warranties with respect to the amount of
Work to be performed during the Term hereof, although it is anticipated that the
Contractor will be required to move the volumes as set out in Schedule “1”–
Estimated Overburden and Muskeg/Mineral Soils Removal Volumes by Year. The
Owner anticipates, but in no way warrants or represents, that the Overburden will be
moved on a constant and continuous basis each year of the Term. The Contractor
acknowledges that it shall not be entitled to any claim for compensation or damages or
any extension of the Term in the event less than the volumes set out in Schedule “1”–
Estimated Overburden and Muskeg/Mineral Soils Removal Volumes by Year are
moved.
	 
	 	1.3	 	All quantities stated in the Contract Documents are intended as estimates only
and may increase or decrease during the performance of the Work and are not to be
interpreted as the actual and correct quantities for measuring the Work performed by
the Contractor. The actual and correct quantities shall be determined from the
measurement methods specified in the Specifications included in Section “E” –
ATTACHMENTS.
	 
	 	1.4	 	Contractor recognizes that the following Mine Plan milestones are required by
the Owner for its completion of other construction work for the Project:

	 	1.4.1	 	Excavation for the relocatable ore processing plants (ROPP)
complete to construction grade (+/- 0.5 metres) by August 2006, to allow Owner
to commence construction of the ROPP mechanically stabilized earthen (MSE)
wall. This is the east excavation identified in the Muskeg and Overburden
Removal and Haulroad Plan – 2006 included in Section “E” – ATTACHMENTS;
	 
	 	1.4.2	 	Tailings line corridor (TLC) complete to construction grade
(+/- 0.5 metres) by June 2007. TLC between Waste Area 1 and South West Pit not
available as a haulroad after June 2007;
	 
	 	1.4.3	 	Dyke 10 construction across Tar River to start October 2007;
	 
	 	1.4.4	 	Dyke 10 closure completed by November 2007 to allow initial
containment of water;
	 
	 	1.4.5	 	Common fill placement for the ROPP to bring the truck dump
pads to elevation behind the Owner-constructed MSE wall, to be complete by
April 2008; and
	 
	 	1.4.6	 	Dyke 10 must reach an elevation of 350 metres by August 2008
to allow for commencement of tailings disposal.

	 	 	 	These and all other construction and production milestones for the Work will be set
out in SWA forms issued by the Owner to the Contractor, all as more fully described
in Article 7.0.
	 
	 	1.5	 	From time to time during the Term there will be planned interruptions of the
Owner’s operations. The Owner shall give the Contractor reasonable notice of same. The
Owner and the Contractor shall use their best efforts to minimize the effect of such
planned interruptions on the Work. The Contractor acknowledges that it shall not be
entitled to any claim for compensation or damages or any extension of the Term as a
result of such planned interruptions.

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 3 of 18

 

 

	 	1.6	 	The Contractor shall perform the Work in a manner that acknowledges that it is of
the utmost importance to the Owner that the Work be done in a safe and
environmentally sound manner without disruption to the Owner’s operations.
	 
	 	1.7	 	The determination of whether or not a Specification has been met shall be at
the Owner’s sole discretion.

	2.0	 	CONTRACTOR’S GENERAL RESPONSIBILITIES

	 	2.1	 	The Contractor shall perform all Work in accordance with the Contract, with
Regulations, with good industry practice and in a safe and environmentally sound
manner.
	 
	 	2.2	 	With the exception of those required to be obtained by the Owner pursuant to
Article 3.2, the Contractor shall procure, without any additional Compensation, any and
all licenses, permits and approvals required for the performance of the Work.
	 
	 	2.3	 	The Contractor shall co-ordinate the Work with the Owner. The Contractor shall
not interfere with the operations or activities of the Owner or Third Parties working
on behalf of the Owner.
	 
	 	2.4	 	The Contractor shall provide security for the Facility and the Contractor’s
Facility Site and shall be responsible for the security of its workers, tools,
materials, equipment, vehicles, Equipment and Replacement Equipment on (and to and
from) the CNRL Site. All small tools and equipment belonging to Contractor must be
clearly identified as such. Tools including personal tools are subject to inspection at
the security gate upon arrival and departure.
	 
	 	2.5	 	The Contractor shall not store any Hazardous Substances on the Owner’s Site
unless it has obtained the specific prior written approval of the Owner. If such
approval is granted to the Contractor, it shall ensure that all such Hazardous
Substances are handled, packaged, labeled and stored in accordance with Regulations.
	 
	 	2.6	 	The Contractor shall provide for waste disposal at and from its Work sites and
the Contractor’s Facility Site, provided however, that all waste disposal shall be in
accordance with Attachment “A” CNRL Health, Safety and Environment Reference
Manual included in Section “E” – ATTACHMENTS. All waste disposal shall be
coordinated with the Owner. For the purposes of this Article 2.6, “waste” shall
include, but not be limited to, sanitary garbage, grease, chemicals, scrap metals,
tires and waste lube oil. Owner will provide a landfill on the CNRL Site for disposal
of non-hazardous waste materials and a storage area for collection of hazardous waste
materials for shipment to an off-site disposal facility. Such landfill and storage
area will be available for the Contractor’s use and all others providing work at the
Project. Should the Contractor choose to use this facility, it shall do so without
additional cost to the Owner and in cooperation with the site vendor operating the
landfill and storage area.
	 
	 	2.7	 	The Contractor shall clean up each Work site and the Contractor’s Facility Site
and shall ensure that at all times these sites are safe, clean and secure, all in
accordance with the Owner’s directions, good environmental practices and the
Regulations.
	 
	 	2.8	 	The Contractor shall be responsible for ensuring that its employees and agents
do not litter in the mine.
	 
	 	2.9	 	The Contractor shall ensure that all of its employees wear visible, valid
Owner’s contractor identification badges at all times when performing Work and when on
the CNRL Site.
	 
	 	2.10	 	The Contractor shall ensure that all of its employees, agents and
Subcontractors attend any and all meetings as required by the Owner.
	 
	 	2.11	 	The Contractor shall provide the Owner with all required test results or
reports on a timely basis in accordance with the terms of the Contract and schedules
thereto.
	 
	 	2.12	 	Subject to the provisions of Article 1.8 of Section “D”” — COMPENSATION, the
Contractor shall be responsible to ensure that its employees and agents and its
Subcontractors and their respective employees and agents have accommodation during the
Term.

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 4 of 18

 

 

	 	2.13	 	All of Contractor’s vehicles shall be radio equipped with a base station located at
the Facility, the cost of which is included in the Compensation. The Contractor
shall also provide five (5) radio units for the Owner’s use and shall install same
in the Owner’s vehicles. The Contractor shall submit the Specifications of the
proposed radios to the Owner for approval prior to procurement.
	 
	 	2.14	 	The Contractor shall provide its own telephone and computer facilities.
	 
	 	2.15	 	Personal vehicles will not be allowed on the CNRL Site beyond the main
guardhouse located at the plant site. Public parking space outside the main guardhouse
will be available on a first-come first-served basis. Contractor, without cost to the
Owner, shall be responsible for transportation of its employees and agents and its
Subcontractor’s employees and agents from the main guardhouse parking area to the
Contractor’s Facility or other Work sites. Should the Owner or its site vendor operate
a CNRL Site transportation system, it will be made available for the Contractor’s use,
without additional cost to the Owner. Owner reserves the right to coordinate on-site
bus services.
	 
	 	2.16	 	Contractor shall adhere to the Owner’s Transportation and Logistics
Guidelines, included as Attachment “K” in Section “E” – ATTACHMENTS, in respect of
all deliveries to the CNRL Site including, without limitation, deliveries of Equipment
and Replacement Equipment.

	3.0	 	OWNER’S GENERAL RESPONSIBILITIES

	 	3.1	 	Subject to its obtaining any necessary approvals from Government Authorities,
the Owner will provide the Contractor with the Contractor’s Facility Site on the CNRL
Site on which the Contractor shall construct the Facility.
	 
	 	3.2	 	The Owner will obtain the Mineral Surface Lease; the Alberta Environmental
Protection and Enhancement Act (AEPEA) Approval; all Fisheries and Oceans Canada
approvals and the Alberta Environment Water Act Approval for all water
diversions and water course crossings identified in the 2005 Muskeg Drainage
Plan included in Section “E” – ATTACHMENTS.
	 
	 	3.3	 	Throughout the Term the Owner will procure, construct, install, operate and
maintain the basal sand aquifer dewatering system, the specific clean water systems
identified as supplied by Owner in the Drawings, and except as provided for in Article
5.22, the Owner will also perform all Dewatering required for the oil sands removal
sites.
	 
	 	3.4	 	The Contractor shall carry out necessary geotechnical monitoring and data
gathering to ensure safety of personnel and equipment. Notwithstanding the foregoing,
the Owner will continue its geotechnical and geological monitoring program throughout
the Term, including without limitation the final quality testing to ensure compaction
specifications have been met for materials placed in dykes. This in no way relieves
the Contractor from its responsibilities under this Contract. When the Owner’s
monitoring has indicated a potential problem, the Owner will inform the Contractor and
discuss its concerns with the Contractor.
	 
	 	3.5	 	Subject to the provisions of Article 2.4, the Owner will provide security for
the CNRL Site but not the Contractor’s Facility Site. The Contractor shall provide the
Owner’s security personnel with keys to the Contractor’s Facility Site, the Facility
and any other of Contractor’s buildings or trailers located on the CNRL Site and permit
access thereto by the Owner’s security personnel.
	 
	 	3.6	 	Should the Owner operate and maintain a medical aid centre on the CNRL Site,
the Contractor’s personnel shall be able to use it for first aid or emergency
treatment. The Contractor and its personnel shall abide by the medical centre’s posted
or published regulations, rules or procedures.
	 
	 	3.7	 	The Owner will provide ambulance services to the Contractor on the CNRL Site as
required.
	 
	 	3.8	 	The Owner will make available to the Contractor the Overburden portion of the
Owner’s geological model. The Owner’s model has been developed using MineSight
3D software and the Owner will provide to the Contractor one “user key” for this
software.

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 5 of 18

 

 

	 	3.9	 	Provided only that the Contractor strictly adheres to the Owner’s approved
final highwall design, the Owner will be responsible for long-term monitoring and cost
of repair of final highwall failures. Should the Contractor not strictly adhere to the
Owner’s approved final highwall design, the Contractor shall be responsible for
long-term monitoring and the full cost of repair of final highwall failures. At all
times during excavation of interim and final highwalls, the Contractor shall conduct
the Work in a manner that ensures safety of personnel and equipment. All highwall
monitoring data and design criteria will be shared between the Parties.

	4.0	 	SCOPE OF WORK – CONSTRUCTION AND FACILITY

	 	4.1	 	The Contractor shall perform the design, site preparation and construction of
the Facility in accordance with Specification 100 – Construction, included in Section
“E” – ATTACHMENTS.
	 
	 	4.2	 	Construction of the Facility shall start on or before the Construction
Commencement Date. The Contractor shall not commence Construction on the CNRL Site
without prior written approval from the Owner.
	 
	 	4.3	 	Subject to the provisions of Article 3.2, the Contractor shall be responsible
for obtaining all licenses, approvals or permits required for the Construction, the
cost of which is included in the Compensation.
	 
	 	4.4	 	The Contractor shall coordinate the Construction with the Owner.
	 
	 	4.5	 	Subject to the provisions of Articles 6.1, 6.7 and 6.13, the Contractor shall
be responsible for obtaining all utilities for the Contractor’s Facility Site or the
Facility, as the case may be, including, without limitation, water, power, heating, air
conditioning and telecommunications.
	 
	 	4.6	 	The Contractor shall use the Facility, the Contractor’s Facility Site and any
buildings or structures located on the Contractor’s Facility Site only for:

	 	4.6.1	 	work which is compatible with the Contractor’s undertakings
pursuant to this Contract Work;
	 
	 	4.6.2	 	the Owner pursuant to another contract or contracts; or
	 
	 	4.6.3	 	work for Third Parties performing work or services on the CNRL
Site pursuant to a contract with the Owner.

	 	4.7	 	Any required repairs, maintenance or upgrading of the Facility during the Term,
including but not limited to drainage, snow removal and aggregate requirements, is the
responsibility of the Contractor, the cost of which is included in the Compensation.
	 
	 	4.8	 	During the Term the Contractor shall perform all Dewatering for the Facility
and the Contractor’s Facility Site in accordance with Specification 400 — Contractor’s
Dewatering, included in Section “E” – ATTACHMENTS.
	 
	 	4.9	 	Upon the expiry or earlier termination of this Contract and if required by the
Owner, the Contractor shall dismantle and demobilize the Facility and clean-up the site
of the Facility down to its slab and to the Owner’s satisfaction.

	5.0	 	SCOPE OF WORK – OVERBURDEN REMOVAL AND OTHER MINING SERVICES

	 	5.1	 	The Contractor shall develop a preventative maintenance program for all of its
Equipment and Replacement Equipment, and shall submit documentation for this program
for the Owner’s approval prior to the Overburden Removal Commencement Date. The
preventative maintenance program shall comply with manufacturers suggested maintenance
schedules and procedures, as improved by the Contractor’s experience. The Contractor
shall not amend the said program without first obtaining the Owner’s written consent.
Notwithstanding anything else contained herein, such approvals shall not, in any way,
release or relieve the Contractor of its obligations under this Contract. The
Contractor shall at all times during the Term comply with the said preventative
maintenance program. The Owner and its authorized agents will from time to time during
the Term review the said preventative maintenance program and all service records and
documentation related thereto.

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 6 of 18

 

 

	 	5.2	 	The Contractor shall:

	 	5.2.1	 	keep the Equipment and Replacement Equipment in good repair
and good operating condition in order to maximize its availability for use in
the performance of the Work and to maximize its service life;
	 
	 	5.2.2	 	provide and maintain, and be responsible for the housing,
control and replacement of an adequate inventory of spare parts and supplies
for the Equipment and the Replacement Equipment provided that all such spare
parts shall be new or reconditioned and shall be unused since initial purchase
or latest reconditioning;
	 
	 	5.2.3	 	not do or omit to do any thing that might jeopardize, impair,
void or otherwise adversely affect any warranty given by a manufacturer of any
of the Equipment or Replacement Equipment;
	 
	 	5.2.4	 	ensure that, at all times, the Equipment and Replacement
Equipment meet U.S.A. Federal Register Part II, Environmental Protection
Agency guidelines for control of emissions of air pollution from diesel
engines;
	 
	 	5.2.5	 	except when required for maintenance or repair purposes, not
remove Equipment or Replacement Equipment from the CNRL Site without the
Owner’s prior approval, which shall not be unreasonably withheld; and
	 
	 	5.2.6	 	The Contractor shall not make any changes to its Equipment or
Replacement Equipment without the Owner’s prior approval which shall not be
unreasonably withheld.

	 	5.3	 	The Contractor shall perform all Survey Work required to perform the Work in
accordance with Specification 500 – Surveying, included in Section “E” – ATTACHMENTS.
	 
	 	5.4	 	The Contractor shall perform muskeg and mineral soils removal in accordance
with Specification 200 — Muskeg and Mineral Soils Removal, included in Section “E” –
ATTACHMENTS, and following the directions set out in each SWA. There may be
insufficient muskeg and mineral soils to directly haul and place on Dyke 10 and Waste
Area 2 during the Term. Should the Contractor be requested to complete reclamation of
Dyke 10 and Waste Area 2 using reclamation materials from stockpile, a Change Order
will be issued to compensate the Contractor for the additional costs, if any, for
removing reclamation materials from stockpile.
	 
	 	5.5	 	The Contractor shall perform Overburden Removal in accordance with
Specification 300 — Overburden Removal, included in Section “E” – ATTACHMENTS, and
following the directions set out in each SWA.
	 
	 	5.6	 	The Contractor shall endeavor to achieve placement of seventy (70) percent of
total Overburden Removal in dykes (thirty (30) percent placement of total Overburden in
waste dumps).
	 
	 	5.7	 	The Contractor shall ensure that the Dump Areas conform to the Drawings in
Section “E” – ATTACHMENTS or as the said Drawings are amended from time to time.
	 
	 	5.8	 	The Contractor shall ensure that all dumps within the Dump Areas are
constructed in accordance with Specification 300 — Overburden Removal, included in
Section “E”- ATTACHMENTS and shall strictly comply with all geotechnical requirements.
	 
	 	5.9	 	When constructing dykes the Contractor shall grade fill surfaces to promote
run-off and to minimize ponding.
	 
	 	5.10	 	The Contractor shall perform Dewatering for its haulroads and for the Owner’s
haulroads when used by the Contractor.
	 
	 	5.11	 	The Contractor shall not use the Owner’s haulroads without the Owner’s prior
permission, not to be unreasonably withheld. When the Contractor or its Subcontractors
are using the Owner’s haulroads, they shall operate in accordance with Attachment “B”
CNRL Hauling Safety Procedures included in Section “E” – ATTACHMENTS and the
Contractor shall maintain such haulroads to the Owner’s satisfaction.

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 7 of 18

 

 

	 	5.12	 	The Owner will generally maintain its haulroads in reasonable condition,
however, it does not guarantee the condition of its haulroads at all times.
	 
	 	5.13	 	The Owner reserves the right to change the location of its haulroads and will
give the Contractor prior notice in the event these changes affect the Contractor or
the performance of the Work. Unless such changes to the Owner’s haulroads affect the
Contractor’s average actual haul distance for a Contract Year, such changes shall not
affect the Compensation.
	 
	 	5.14	 	The Contractor shall design, construct and maintain all its haulroads as
required from time to time during the Term to perform the Work. The Contractor shall
supply all labour, equipment and materials, to perform such roadwork. Referring to
Drawing Number 11-PLN-MI-0024 entitled Aggregate Resource Location Plan, the
Owner will develop a gravel pit northeast of the plant site, pay the royalty expense
and make an area of the pit available for the Contractor to extract, process, load and
haul the aggregate. The Owner will perform pre-stripping to suitable pit-run material,
the initial dewatering and the final reclamation of the Contractor’s area of this pit.
The Contractor shall reimburse the Owner $3.10 (mid year, 2004 dollars, subject to
escalation or de-escalation in accordance with Article 4.0 of Section “D” –
COMPENSATION) for each bank cubic metre of aggregate material removed from this pit and
the Contractor shall be responsible for all other costs to extract, process, load and
haul the aggregate. The Owner’s haulroad from the Contractor’s Facility Site to the
northeast gravel pit, designed for four-hundred (400) ton size haul trucks, will be
made available to the Contractor to access this pit. Should the Parties agree the
aggregate material from the Owner’s northeast pit is unsuitable for roadwork, a Change
Order will be issued to compensate the Contractor for additional costs, if any, to
obtain aggregate material from a mutually agreed alternate source. The Owner will also
make available to the Contractor an area of the deposit of sand located east of the ten
(10) year mining limit, illustrated in the Aggregate Resources Location Plan.
The Contractor shall be responsible, at its sole expense and subject to the Owner’s
prior approval, for stripping, extracting, processing, loading and hauling the sand it
requires. The Contractor shall also be responsible at its sole expense and subject to
the Owner’s prior approval, to construct and maintain a haulroad to this deposit and to
remove such haulroad in accordance with the Drawings.
	 
	 	5.15	 	The Contractor shall provide a layout of its proposed haulroads to the Owner
for approval prior to construction, which approval shall not be unreasonably withheld.
The location of any haulroads the Contractor constructs shall be indicated on all
subsequent surveys conducted by the Contractor.
	 
	 	5.16	 	Roadwork performed by the Contractor shall not disturb drainage systems
(natural or otherwise). In the event that any drainage systems are disturbed, the
Contractor shall restore them, without cost to the Owner, to their original condition
and to the Owner’s satisfaction.
	 
	 	5.17	 	The Contractor shall provide dust control on its haulroads and on the Owner’s
haulroads when used by the Contractor.
	 
	 	5.18	 	Upon the Owner’s request, the Contractor shall remove its haulroads constructed
within the pit limits, including without limitation those constructed on oil sands by
the Contractor, without cost to the Owner.
	 
	 	5.19	 	Occasionally the Owner will use the Contractor’s haulroads. The Owner will
coordinate its use of the Contractor’s haulroads with the Contractor and shall provide
dust control, dewatering and road maintenance in proportion to its use of such
haulroads. Use of the Contractor’s haulroads shall be restricted to haul trucks not
exceeding 320 tons capacity unless approved in advance by the Contractor, such approval
to not be unreasonably withheld. Should the Owner request that the Contractor widen
its haulroads to accommodate haul trucks larger than 320 tons capacity, a Change Order
will be issued to compensate for such request.
	 
	 	5.20	 	Upon the expiry or earlier termination of this Contract the Contractor shall
ensure that its haulroads, and the Owner’s haulroads used by the Contractor, are left
in a condition satisfactory to the Owner.

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 8 of 18

 

 

	 	5.21	 	During the Term the Contractor shall perform all Dewatering for its Work sites
in accordance with Specification 400 — Contractor’s Dewatering, included in Section “E”
– ATTACHMENTS. Muskeg drainage is required in 2005 in order to facilitate Overburden
Removal in 2005 and this Dewatering shall be performed in accordance with Drawing
Number 11 – PLN – MI-0012, entitled 2005 Muskeg Drainage Plan, included in the
Drawings.
	 
	 	5.22	 	The Contractor shall minimize the surface water flowing to the Owner’s oil
sands removal sites.
	 
	 	5.23	 	Upon the expiry or earlier termination of this Contract, and subject to
Articles 25 and 26 in Section “B” – TERMS AND CONDITIONS, the Contractor shall
Demobilize its equipment, vehicles, materials, labour, Equipment and Replacement
Equipment from the CNRL Site.
	 
	 	5.24	 	When requested to do so by a Change Order from the Owner and in accordance with
Specification 300 – Overburden Removal included in Section “E” — ATTACHMENTS, the
Contractor shall recover lenses of oil sands or aggregate encountered in the Overburden
mining face.
	 
	 	5.25	 	The Contractor shall mine oil sands, or remove interburden from the oil sands
when requested to do so by a Change Order from the Owner.
	 
	 	5.26	 	The Contractor shall develop standard operating procedures (SOPs) for its mine
operations and maintenance activities and shall submit documentation of these
procedures for the Owner’s approval prior to the Overburden Removal Commencement Date.
	 
	 	5.27	 	Cleanup of pit areas, tailings dyke placement areas, roads and other
construction areas as a result of activities approved by the Owner, other than those of
the Contractor or its Subcontractors, shall be at the Owner’s sole expense.
	 
	 	5.28	 	Pipeline crossing sleeves for the tailings line corridor will be supplied by
the Owner, and the number and location of such crossings shall be mutually agreed by
the Parties. A Change Order will be issued when the Contractor is requested to rebuild
its haulroads at these crossings.
	 
	 	5.29	 	When requested to do so by a Change Order the Contractor shall construct Dyke
10 filter and blanket drains in accordance with the specifications for Zones 3 and 4
provided in Attachment “E” Dyke 10 Fill Construction Specifications, included
in Section “E” – ATTACHMENTS. In that event, compensation for construction of Dyke 10
filter and blanket drains shall be at the rates included in Rate Schedule “N”
Filter and Blanket Drains Unit Rates included in Section “D” – COMPENSATION.
	 
	 	5.30	 	When requested to do so by a Change Order the Contractor shall construct
cut-off trenches beneath Dyke 10. In such event, compensation for excavation and
dewatering of the cut-off trenches shall be at the rates included in Article 2 of Rate
Schedule “O” Exceptions for Muskeg/Mineral Soils Removal included in Section
“D” – COMPENSATION. Compensation for importing, placing and compacting fill in the
cut-off trenches shall be at the applicable BCM Rates.

	6.0	 	UTILITIES, SERVICES AND FUEL

	 	6.1	 	The Owner will provide at no cost to the Contractor, a connection to the
Owner’s fibre optics system for telecommunications, a source of potable water, a source
of fire water and a connection to the Owner’s sewage disposal system, each to a
position at the edge of the Contractor’s Facility Site as illustrated in the
Overall Utility Plan included in the Drawings.
	 
	 	6.2	 	The Owner will provide, along the crest of the final highwall of the Mine and
at no cost to the Contractor, the electricity supply required for the Contractor’s
mining equipment. This electricity shall be supplied at a voltage of 72KV.
	 
	 	6.3	 	The Contractor shall provide substations with all necessary high and low
voltage switchgear, suitable protection and control equipment, transformers, fencing
and complete grounding systems for both high and low voltage systems, to step-down
power from 72KV to the voltage required for operating the Contractor’s equipment.

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 9 of 18

 

 

	 	 	 	Substations shall be built in accordance with Regulations, sound environmental
practices and subject to the Owner’s prior written approval. Grounding systems
shall be built in accordance with the CNRL Site grounding plan.
	 
	 	6.4	 	The Owner’s responsibility for construction and maintenance shall end at the
72KV, pole mounted, disconnect switches. The Contractor shall provide and maintain any
overhead lines or cables necessary to supply electricity from the switch locations to
its substations.
	 
	 	6.5	 	The Contractor shall supply and maintain all trailing cable, junction boxes and
other equipment necessary to supply power from its substations to its mining equipment.
	 
	 	6.6	 	The Contractor may be required to provide trailing cable or line crossing to
facilitate drainage ditches and reclamation work.
	 
	 	6.7	 	The Owner will provide the electricity, at no cost to the Contractor, required
for the Facility. This electricity will be supplied at a voltage of 34.5KV, using an
overhead powerline to a position at the edge of the Contractor’s Facility Site as
illustrated in the Overall Utility Plan include in the Drawings.
	 
	 	6.8	 	The Contractor shall provide all necessary switches, circuit breakers, relaying
and transformers to step down the voltage and distribute the electricity at its
Facility. Only environmentally acceptable insulating liquids shall be used in any
oil-filled transformers. The Contractor shall install a proper grounding system at the
substation and the Facility, in accordance with the CNRL Site grounding plan and with
the Owner’s written approval.
	 
	 	6.9	 	The Owner’s responsibility for maintenance of the Facility supply system shall
end at the 34.5KV, pole mounted, disconnect switch at the tap off point at the edge of
the Contractor’s Facility Site. The Contractor shall provide and maintain any overhead
line or cables necessary to supply electricity from the switch location to its
Facility.
	 
	 	6.10	 	The Contractor shall obtain the Owner’s prior approval of all electrical
equipment to be used on the Owner’s site, provided however, that such approval shall
not release or relieve the Contractor’s obligations under Regulations or pursuant to
this Contract.
	 
	 	6.11	 	The Owner will use its best efforts to supply the Contractor with reliable
electricity with good characteristics but the Contractor must plan for scheduled and
unscheduled outages. The Owner shall not be liable for any loss or damages resulting
from a lack of electricity or power supply characteristics.
	 
	 	6.12	 	During approximately Contract Years one (1) to three (3) inclusive, the Owner’s
plant and associated facilities will be under construction and the electricity supplied
by the Owner for the Contractor’s mining equipment will be at a voltage of 34.5KV.
During this construction period the Contractor shall provide transformers it requires,
at no cost to the Owner and pursuant to the remaining terms of this Article 6.0 hereof,
to convert voltage 34.5KV to the voltage required for operating the Contractor’s mining
equipment.
	 
	 	6.13	 	The Owner will provide the natural gas required for the Facility, using a
pipeline to a position at the edge of the Contractor’s Facility Site, as illustrated in
the Overall Utility Plan included in the Drawings. The Owner will measure the
quantity of natural gas consumed by the Contractor and on a monthly basis, provide the
Contractor with a reconciliation of the quantity and the direct cost to Owner for
providing such natural gas. The Contractor, on a monthly basis, shall reimburse the
Owner its direct costs to supply natural gas for the Facility in accordance with
Article 4.0 of Section “D” — COMPENSATION.
	 
	 	6.14	 	Until such time the Owner produces diesel fuel at the CNRL Site, the Contractor
shall supply diesel fuel for its mobile equipment used in the performance of the Work.
The Contractor will be reimbursed by the Owner for the direct cost of such diesel fuel,
upon provision of an Invoice in accordance with Article 10 of Section “B” – TERMS AND
CONDITIONS. Thereafter the Owner will provide diesel fuel at a location on the Owner’s
plant site, for the Contractor’s use at no cost to the Contractor. Throughout the Term
of the Contract the following Conditions shall apply:

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 10 of 18

 

 

	 	6.14.1	 	the diesel fuel supplied by or to the Contractor shall only be used in mobile
equipment, for the performance of Work conducted on the CNRL Site pursuant to
this Contract;
	 
	 	6.14.2	 	when the Owner does provide diesel fuel on the CNRL site the Contractor shall
be responsible, at no cost to the Owner, for delivering its fuel from the
Owner’s plant site to the Contractors fuel station(s);
	 
	 	6.14.3	 	the Contractor will not use the diesel fuel in any vehicles licensed for
public highway use; and
	 
	 	6.14.4	 	the diesel fuel must not leave the CNRL Site.

	7.0	 	PERFORMANCE SCHEDULE AND SEQUENCE OF WORK

	 	7.1	 	Subject to the Owner’s prior approval, the Contractor shall commence the Work
on or before the Construction Commencement Date.
	 
	 	7.2	 	The Contractor shall ensure that it commences Overburden Removal on the
Overburden Removal Commencement Date.
	 
	 	7.3	 	The Owner shall release Work under this Contract by issuing a SWA to the
Contractor in the form set out in Section “E” – ATTACHMENTS. Both Parties must execute
each SWA. The Contractor shall not commence the Work authorized by a SWA until such
time as it is in receipt of a duly executed SWA.
	 
	 	7.4	 	Prior to June 30th each year during the Term, the Owner shall
provide the Contractor with a Mine Plan and the Overburden portion of the Owner’s
updated geological model for the year next ensuing. Upon receipt of each Mine Plan, the
Contractor shall review it and prior to July 31st; develop a SWA Execution
Plan for the performance of the Work required by the said Mine Plan for approval by the
Owner. When the Owner approves, in writing, the SWA Execution Plan, the Owner shall
issue a SWA, which shall include the SWA Execution Plan, all in accordance with this
Article 7, provided however, that such approval shall not release or relieve the
Contractor of its obligations hereunder. The Owner reserves the right to modify the
SWA Execution Plan during the term of the SWA. The Owner shall endeavor to provide the
Contractor reasonable notice of such required changes.
	 
	 	7.5	 	In the event it is necessary to amend a SWA which has been executed and issued
in accordance with this Article 7, the Owner shall issue a SWA Amendment Form in the
format set out in Section “E” – ATTACHMENTS. Both Parties must execute each SWA
Amendment Form.
	 
	 	7.6	 	The Contractor shall provide all planning, engineering, scheduling and
coordination of the Work to ensure that the Work or any portion thereof is completed
within the target dates set out in each SWA.
	 
	 	7.7	 	When requested by the Owner, the Contractor shall prepare a Work Schedule for
the performance of all or any part of the Work authorized by a SWA. The Work Schedule
must meet the Owner’s production targets in accordance with each SWA. The Contractor
shall control the progress of the Work to achieve compliance with each and every SWA
and Work Schedule.
	 
	 	7.8	 	If the performance of the Work, in the sole opinion of the Owner, is putting a
Work Schedule or other objectives of a SWA at risk, the Contractor shall exercise all
means to correct the trend, including without limitation adding additional equipment to
its Equipment in order to perform the Work, without cost to the Owner.
	 
	 	7.9	 	After the Contractor has completed all Work under a Scope of Work Authorization
(SWA) and corrected all known deficiencies, it shall give the Owner notice that such
Work has been completed. Within fifteen (15) Business Days of receipt of such notice,
the Owner will either issue a SWA Completion Notice, or give notice to the Contractor
of the deficiencies to be remedied before a SWA Completion Notice can be issued. In
the latter case, the foregoing procedure with respect to such deficiencies shall be
repeated until the Owner issues a SWA Completion Notice. Notwithstanding the
foregoing, the Owner’s issuance of a SWA Completion Notice shall not relieve the
Contractor of any of its obligations under this Contract, or otherwise.

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 11 of 18

 

 

	 	7.10	 	After the Contractor has completed all Work under this Contract and corrected
all known deficiencies, it shall give the Owner notice that the Work has been
completed. Within fifteen (15) Business Days of receipt of such notice, the Owner will
either issue a Final Payment Certificate and Release, or give notice to the Contractor
of the deficiencies to be remedied before a Final Payment Certificate and Release can
be issued. In the later case, the foregoing procedure with respect to such
deficiencies shall be repeated until the Owner issues the Final Completion Notice.
Notwithstanding the foregoing, the Owner’s issuance of the Final Completion Notice
shall not relieve the Contractor of any of its obligations under this Contract, or
otherwise.

	8.0	 	REPORTING REQUIREMENTS AND CO-ORDINATION MEETINGS

	 	8.1	 	The Contractor shall initiate, conduct or participate in all meetings required
by the Owner and, as a minimum requirement, the following meetings:

	 	8.1.1	 	kick-off meetings prior to commencement of the Construction
and prior to the commencement of the Overburden Removal;
	 
	 	8.1.2	 	Safe Work Plan development meetings as required by the Owner;
	 
	 	8.1.3	 	progress review meetings as required by the Owner;
	 
	 	8.1.4	 	safety and loss management meetings as required by the Owner;
	 
	 	8.1.5	 	regular tool box/tailgate safety talks for which minutes or
records shall be kept, including attendee list, and such documentation shall be
made available to Owner for audit or inspection upon request;
	 
	 	8.1.6	 	monthly employee/supervisory safety meetings for which minutes
shall be kept, and such documentation shall be made available to Owner for
audit or inspection upon request; and
	 
	 	8.1.7	 	any and all other meetings as required by the Owner on
reasonable notice to the Contractor.

	 	8.2	 	The Contractor shall submit the following reports to the Owner, in a form
satisfactory to and approved in advance by the Owner:

	 	8.2.1	 	daily material movement reports including for each shift;
Truck Counts and volumes, loading units, loading locations, material types
loaded and dump locations;
	 
	 	8.2.2	 	weekly Contractor safety activity reports;
	 
	 	8.2.3	 	weekly quantities and quality of water released to natural
receiving waters or to closed circuit systems by the Contractor;
	 
	 	8.2.4	 	Contractor’s loss control reports;
	 
	 	8.2.5	 	Contractor’s loss investigation reports;
	 
	 	8.2.6	 	monthly diesel fuel usage reports;
	 
	 	8.2.7	 	Survey Work reports in accordance with Specification 500 –
Surveying, included in Section “E” – ATTACHMENTS;
	 
	 	8.2.8	 	production, productivity and cost reports in accordance with
Specification 600 — Productivity and Cost Management, included in Section “E” –
ATTACHMENTS; and
	 
	 	8.2.9	 	any and all other reports as required by the Owner, including
but not limited to, Scope of Work Authorization (SWA) forms; SWA Amendment
Forms; Vehicle Gate Passes; Safe Work Permits for Hot Work; Safe Work Permits
for Cold Work; Permits for Hoisting of Personnel; Excavation/Trench/Surface
Penetration Permits; Waste Disposal/Storage Permits; Confined Space Entry
Permits; Fire Hydrant Operating Permits; and minutes from meetings; Weekly
Health, Safety and Environmental (“HSE”) Reports; Monthly HSE Performance
Summaries,

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 12 of 18

 

 

	 	 	 	Dewatering Logs; Monthly Environmental Incident Logs; Monthly Reports of
Non-Hazardous Material Disposed of or Recycled; Reports of Hazardous
Materials Disposed of or Recycled; and any new Inspection Reports.

	 	8.3	 	Reports to be provided by the Contractor to the Owner:

	 	8.3.1	 	on a daily basis shall be submitted on the next Work Day
following the completion of the day covered;
	 
	 	8.3.2	 	on a weekly basis shall be submitted within two (2) Business
Days following the completion of the week covered;
	 
	 	8.3.3	 	on a monthly basis shall be submitted within five (5) Business
Days following the completion of the month covered; and
	 
	 	8.3.4	 	on an annual basis shall be submitted within ten (10) Business
Days following the completion of the year covered.

	 	8.4	 	The Contractor shall work in conjunction with the Owner to improve the
efficiency and effectiveness of the reporting processes used to fulfill the
requirements of this Contract.

	9.0	 	SAFETY AND FIRE PROTECTION

	 	9.1	 	Safety

	 	9.1.1	 	The Contractor acknowledges that safety to all persons and the
environment are of the utmost concern to the Owner in the Work being performed
by the Contractor under the terms of this Contract.
	 
	 	9.1.2	 	The Contractor shall conform to the Owner’s principles of
safety and loss management which involve a thorough and systematic approach to
reduce and eliminate all downgrading incidents to employees, production,
equipment, materials and the environment. The Contractor shall meet with the
Owner every three (3) months during the Term, or as required by the Owner, to
review, and if necessary, correct its safety performance in connection with the
Work.
	 
	 	9.1.3	 	The Contractor shall ensure that all of its employees and
agents and Subcontractors who are employed by the Contractor and their
respective employees and agents who visit the CNRL Site adhere to all the
requirements of this Article 9.
	 
	 	9.1.4	 	The Contractor shall ensure that its employees and agents, and
its Subcontractors and their respective employees and agents understand their
responsibilities with respect to safety and loss management as described in
Attachment “A” CNRL Health, Safety and Environment Reference Manual,
included in Section “E” – ATTACHMENTS.
	 
	 	9.1.5	 	Subcontractors and their respective employees and agents have
the same responsibilities as those identified for the Contractor for any Work
to be conducted on the CNRL Site by them.
	 
	 	9.1.6	 	The Owner reserves the right to request a thorough resume of
any and all employees, agents and Subcontractors and the employees and agents
of the Subcontractors, which the Contractor may wish to bring onto the CNRL
Site. Such resume shall include a work history, safety record, WCB rating,
together with any other information the Owner may deem necessary. The Owner
also reserves the right to bar access to the CNRL Site to any individual,
group, or company which, in the Owner’s judgment, may pose a threat to the
safety of personnel, production, material, equipment, or the environment.
	 
	 	9.1.7	 	The Contractor shall carry out, participate in and properly
document the following safety inspections as required by the Owner as a
minimum:

	 	9.1.7.1	 	Safety inspections with the Owner;
	 
	 	9.1.7.2	 	Regular inspections of equipment, tools and materials; and

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
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	 	9.1.7.3	 	The Contractor shall also participate in regular planned safety
checklist inspections that will be developed at the progress review
meetings.

	 	9.1.8	 	The Contractor shall maintain documentation more particularly
set out in Attachment “A” CNRL Health, Safety and Environment Reference
Manual, included in Section “E” – ATTACHMENTS and submit such documentation
as required.
	 
	 	9.1.9	 	The Contractor shall ensure that any and all safe work or
other permits required by the Owner are issued prior to the commencement of any
Work that requires such permits.
	 
	 	9.1.10	 	The Contractor shall comply with Attachment “B” CNRL Hauling Safety
Procedures included in Section “E” – ATTACHMENTS.
	 
	 	9.1.11	 	Prior to commencement of Work, the Contractor shall provide the Owner with a
copy of its safety and loss management manual. This manual must be approved in
writing by the Owner prior to commencement of the Work. In the event the
Contractor proposes to revise the said manual in any way, such revisions must
be approved in writing by the Owner prior to being incorporated into the
manual. Notwithstanding anything else contained herein, such approvals shall
not, in any way, release or relieve the Contractor of its obligations
hereunder.

	 	9.2	 	Fire Protection

	 	9.2.1	 	The Contractor shall construct the Facility and other
buildings on the CNRL Site in accordance with Attachment “C” CNRL Fire
Protection Standard (00-STD-LM-0001) included in Section “E”- ATTACHMENTS.
	 
	 	9.2.2	 	The Contractor shall ensure that all of its vehicles have
portable fire fighting equipment in accordance with Attachment “C” CNRL
Fire Protection Standard (00-STD-LM-0001) included in Section “E”-
ATTACHMENTS.
	 
	 	9.2.3	 	Automatic fire suppression systems are mandatory on the
following of the Contractor’s equipment:

	 	9.2.3.1	 	heavy haul trucks;
	 
	 	9.2.3.2	 	shovels;
	 
	 	9.2.3.3	 	hydraulic excavators, greater than seven (7) cubic yards capacity;
	 
	 	9.2.3.4	 	loaders, greater than seven (7) cubic yards capacity;
	 
	 	9.2.3.5	 	back hoes, greater than seven (7) cubic yards capacity;
	 
	 	9.2.3.6	 	bulldozers, larger than a “D8”;
	 
	 	9.2.3.7	 	graders, larger than a “16G”; and
	 
	 	9.2.3.8	 	fuel and lube trucks.

	 	9.2.4	 	The Contractor’s fire suppression systems shall be sensor
activated, redundant dry chemical or foam systems.
	 
	 	9.2.5	 	Automatic systems shall be certified by a third party agency
and have an approved maintenance program. Copies of preventative maintenance
certification shall be made available to the Owner when requested.
	 
	 	9.2.6	 	The Contractor shall provide all systems, manpower, equipment,
materials and supplies it requires for fire-fighting at all its Work sites
including, without limitation, the Contractor’s Facility Site.
	 
	 	9.2.7	 	The Contractor and its employees and agents shall comply with
all posted or published rules, regulations and procedures regarding fire safety
and fire equipment while on the CNRL Site.
	 
	 	9.2.8	 	The Contractor shall report any fire incident to the Owner
immediately, in accordance with the Owner’s incident reporting and
investigation standard, and

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 14 of 18

 

 

	 	 	 	provide written notification within twenty-four (24) hours of its
occurrence. In particular, but without limitation, Contractor shall notify
CNRL immediately of any use of fire extinguishing equipment or agents.

	10.0	 	SPECIFICATIONS, DRAWINGS, ATTACHMENTS AND EXHIBITS
	 
	 	 	All Work shall be performed in strict accordance with the following described
Specifications, Drawings and other documents, which by this reference are made a part
hereof.

	 	10.1	 	Specifications

	 	 	 	 	 
	Specification No.	 	Title
	 	100	 	 	Construction

	 	 	 	 	 

	 	200	 	 	Muskeg and Mineral Soils Removal

	 	 	 	 	 

	 	300	 	 	Overburden Removal

	 	 	 	 	 

	 	400	 	 	Contractor’s Dewatering

	 	 	 	 	 

	 	500	 	 	Surveying

	 	 	 	 	 

	 	600	 	 	Productivity and Cost Management

	 	 	 	Manufacturer’s Instructions
	 
	 	 	 	Contractor shall:

	 	•	 	Unless otherwise specified, comply with manufacturer’s latest printed
instructions for materials, supply, storage and installation methods.
	 
	 	•	 	Notify the Owner in writing of any conflict between these Specifications and
the manufacturer’s instructions. The Owner will designate which document is to
be followed.

	 	10.2	 	Drawings

	 	10.2.1	 	The Owner shall provide the Contractor with the Drawings described in Article
10.2.3 below for the Contractor’s information. The Owner reserves the right to
amend the said Drawings from time to time during the Term and shall provide the
Contractor with reasonable notice thereof. The Owner shall provide the
Contractor with all such amended Drawings. Amendments to the Drawings shall
not increase the Compensation.
	 
	 	10.2.2	 	The Contractor shall be responsible to review the said Drawings. The said
Drawings are provided for information purposes only and the Owner shall not be
liable for errors or omissions contained therein. The Contractor shall conduct
such Survey Work or further tests or investigations that it considers necessary
to inform itself of the geology of the Mine and all Work sites. The Owner will
provide the Contractor with reasonable access at the CNRL Site to its
geological information, provided however, that the Owner shall not be liable
for the content thereof.
	 
	 	10.2.3	 	Owner shall provide the following drawings:

	 	 	 	 	 
	Drawing No.	 	 	 	 
	Reference Drawings	 	Rev.	 	Title
	11-PLN-MI-0001
	 	1	 	Aerial Photo CNRL Site
	 
	 	 	 	 
	11-PLN-MI-0002
	 	2	 	Plot Plan – CNRL Horizon Project

 
			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 15 of 18

 

 

	 	 	 	 	 
	Drawing No.	 	 	 	 
	Reference Drawings	 	Rev.	 	Title
	11-PLN-MI-0003
	 	1	 	Overall Utilities Plan
	 
	 	 	 	 
	11-PLN-MI-0004
	 	1	 	CNRL Site Topography
	 
	 	 	 	 
	11-PLN-MI-0005
	 	2	 	Muskeg Soils Isopach
	 
	 	 	 	 
	11-PLN-MI-0006 - 0010
	 	1	 	Overburden Model Surfaces
	 
	 	 	 	 
	11-PLN-MI-0011
	 	1	 	Oil Sands Model Top of Ore Surface
	 
	 	 	 	 
	11-PLN-MI-0024
	 	2	 	Aggregate Resources Location Plan
	 
	 	 	 	 
	Construction Drawings
	 	 	 	 
	 
	 	 	 	 
	11-PLN-MI-0012
	 	2	 	2005 Muskeg Drainage Plan
	 
	 	 	 	 
	11-PLN-MI-0013
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2005
	 
	 	 	 	 
	11-PLN-MI-0014
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2006
	 
	 	 	 	 
	11-PLN-MI-0015
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2007
	 
	 	 	 	 
	11-PLN-MI-0016
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2008
	 
	 	 	 	 
	11-PLN-MI-0017
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2009
	 
	 	 	 	 
	11-PLN-MI-0018
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2010
	 
	 	 	 	 
	11-PLN-MI-0019
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2011
	 
	 	 	 	 
	11-PLN-MI-0020
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2012
	 
	 	 	 	 
	11-PLN-MI-0021
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2013
	 
	 	 	 	 
	11-PLN-MI-0022
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan – 2014
	 
	 	 	 	 
	11-PLN-MI-0023
	 	4	 	Muskeg and Overburden Removal and Haulroad Plan - 2015

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 16 of 18

 

 

	 	 	 	 	 	 	 
	C.	 	Attachments
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Attachment No.
	 	Rev.	 	Title
	 	 	Attachment “A”
	 	2	 	CNRL Health, Safety and Environment Reference Manual.
	 	 	Attachment “B”
	 	—	 	CNRL Hauling Safety Procedures
	 	 	Attachment “C”
	 	3	 	CNRL Fire Protection Standard (No. 00-STD-LM-0001)
	 	 	Attachment “D”
	 	“D”	 	Dyke 10 Muskeg Stripping Specification and Limits.
	 	 	Attachment “E”
	 	“C”	 	Dyke 10 Fill Construction Specifications
	 	 	Attachment “F”
	 	—	 	CNRL/Terracon Overburden Soil Classification and Material Utilization Chart (Preliminary)
	 	 	Attachment “G”
	 	—	 	Scope of Work Authorization (SWA) Form
	 	 	Attachment “H”
	 	—	 	Scope of Work Authorization (SWA) Amendment Form
	 	 	Attachment “I”
	 	—	 	Layout of Overburden Mining Benches and Thickness Histograms
	 	 	Attachment “J”
	 	—	 	Mine Drainage Preliminary Design Parameters for the Horizon Oil Sands Project
	 	 	Attachment “K”
	 	—	 	Transportation and Logistics Guidelines
	 	 	 
	 	 	 	 
	10.3	 	Exhibits
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	Exhibit No.
	 	Rev.	 	Title
	 	 	Exhibit “A”
	 	—	 	Confidentiality Agreement
	 	 	Exhibit “B”
	 	—	 	Final Payment Certificate and Release
	 	 	Exhibit “C”
	 	—	 	Prime Contractor Agreement
	 	 	Exhibit “D”
	 	—	 	Undertaking by NACGI

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
	 	Page 17 of 18

 

 

	11.0	 	SCHEDULES

SCHEDULE “1”

ESTIMATED OVERBURDEN AND MUSKEG/MINERAL SOILS REMOVAL VOLUMES BY YEAR

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Millions of Bank Cubic Metres of Combined Overburden and Muskeg/Mineral Soils per Year
	2005	 	2006	 	2007	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015	 	TOTAL
	6
	 	 	18	 	 	 	24	 	 	 	36	 	 	 	48	 	 	 	48	 	 	 	48	 	 	 	48	 	 	 	48	 	 	 	48	 	 	 	24	 	 	 	396	 

	 	 	Notes:

	 	1.	 	Volumes in this table include muskeg and mineral soils to be salvaged from
within Overburden Removal limits. Muskeg/mineral soils to be removed from within
the Dyke 10 footprint or for roads, ditches or other infrastructure located outside
of the Overburden Removal limits are not included in this table but are included in
the Work and in the BCM Rates.
	 
	 	2.	 	Overburden Removal Commencement Date is July 1, 2005 and Termination Date is
the earlier of June 30, 2015, or the date when the Work is completed hereunder.

			
	 	 	 
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	 	Section “C” — Scope of Work
	Contract Number: 400472
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OVERBURDEN REMOVAL AND

MINING SERVICES CONTRACT

SECTION “D” – COMPENSATION

 

 

INDEX

	 	 	 	 	 
	1.0 BASIS OF COMPENSATION
	 	 	3	 
	2.0 PRICING FOR CHANGES
	 	 	10	 
	3.0 TAXES
	 	 	10	 
	4.0 PAYMENT TERMS
	 	 	10	 
	5.0 DETERMINATION OF UNITS 
	 	 	13	 
	6.0 INVOICING INSTRUCTIONS 
	 	 	13	 
	7.0 RATE SCHEDULES 
	 	 	14	 
	7.1 Rate Schedule “A” Construction Charges 
	 	 	15	 
	7.2 Rate Schedule “B” Equipment Charges 
	 	 	16	 
	7.3 Rate Schedule “C” Replacement Equipment Charges 
	 	 	17	 
	Rate Schedules “Ci"-“Cix”
	 	 	18-21	 
	7.4 Rate Schedule “D” Overhead Charges 
	 	 	22	 
	7.5 Rate Schedule “E” BCM Rates 
	 	 	23	 
	7.6 Rate Schedule “F“Average Haul Distances 
	 	 	24	 
	7.7 Rate Schedule “G” Underhaul Rates 
	 	 	25	 
	7.8 Rate Schedule “H” Overhaul Rates 
	 	 	26	 
	7.9 Rate Schedule “I” Equipment and Replacement Equipment
	 	 	27- 29	 
	7.10 Rate Schedule “J” Estimated Fuel and Electrical Consumption 
	 	 	30	 
	7.11 Rate Schedule “K” Cancellation Schedule 
	 	 	31	 
	7.12 Rate Schedule “L” Estimated Pitrun to be Removed from Owner’s NE Gravel Pit 
	 	 	32	 
	7.13 Rate Schedule “M” General Liability Insurance Cost Included in Schedule “D” Prices 
	 	 	33	 
	7.14 Rate Schedule “N” Filter and Blanket Drains Unit Rates 
	 	 	34	 
	7.15 Rate Schedule “O” Exceptions for Muskeg/Mineral Soils Removal 
	 	 	35	 
	APPENDIX I — NET BOOK VALUE FORMULA 
	 	 	36	 
	APPENDIX II — UNDERHAUL/OVERHAUL SAMPLE CALCULATION 
	 	 	39	 
	APPENDIX III – ESCALATION FACTOR ADJUSTMENT, SAMPLE CALCULATION 
	 	 	40	 
	APPENDIX IV — EXAMPLE OF DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT,
SAMPLE CALCULATION 
	 	 	41	 

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
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SECTION “D”

COMPENSATION

	1.0	 	BASIS OF COMPENSATION

	 	1.1	 	Items Included In Compensation
	 
	 	 	 	The Owner shall pay the Contractor the Compensation as full and complete payment
for performance by Contractor of the Work, compliance with all terms and
conditions of this Contract, and for Contractor’s payment of all obligations
incurred in, or applicable to, performance of the Work. The Compensation shall
consist of the following items:

	 	1.1.1	 	Construction charges;

	 
	 	1.1.2	 	Equipment and Replacement Equipment charges;
	 
	 	1.1.3	 	Overhead charges;
	 
	 	1.1.4	 	BCM Rates;
	 
	 	1.1.5	 	Demobilization charges as applicable;
	 
	 	1.1.6	 	Letter of Credit; and
	 
	 	1.1.7	 	Charges for Work authorized by Change Orders,
priced in accordance with Article 2.0.

	 	1.2	 	Construction Charges

	 	1.2.1	 	For Construction, the amounts set out in Rate Schedule “A”
shall be paid to the
Contractor by the Owner on a prorated monthly basis throughout the Term in
accordance with the payment terms set forth in Article 4.0.
	 
	 	1.2.2	 	Construction charges are not subject to escalation or
de-escalation during the
Term.
	 
	 	1.2.3	 	Construction charges shall take into account all costs
associated with the design,
procurement, site preparation, construction and commissioning of the
Facility,
Contractor’s Facility Site and any major expansions of the Facility.
Construction
charges shall also take into account all mobilization and accommodation
costs
required for the Construction.
	 
	 	1.2.4	 	Subject to Article 25.5 of Section “B” — TERMS AND
CONDITIONS, upon
termination of this Contract the Owner shall have the option, upon
reasonable
written notice to the Contractor, to purchase and the Contractor shall sell
the
Facility at an amount calculated and determined in accordance with the terms
of
the Net Book Value Formula set out in Appendix “I”. In the event the Owner
chooses this option, a Demobilization charge for the Facility shall not
apply.
	 
	 	1.2.5	 	The Contractor shall provide, no later than thirty (30)
calendar days following
completion of Construction, the Owner with its turnkey acquisition cost of
the
Facility in accordance with the terms of Appendix “I” — Net Book Value
Formula.

	 	1.3	 	Equipment and Replacement Equipment Charges

	 	1.3.1	 	For Equipment, the amounts set out in Rate Schedule “B”
shall be paid to the
Contractor by the Owner on a prorated monthly basis throughout the Term in
accordance with the payment terms set forth in Article 4.0.
	 
	 	1.3.2	 	Equipment charges are not subject to escalation or
de-escalation during the
Term.
	 
	 	1.3.3	 	Subject to Article 1.3.4, for Replacement Equipment the amounts set out in Rate
Schedule “C” shall be paid to the Contractor by the Owner on a prorated monthly basis throughout
the Term in accordance with the payment terms set forth in Article 4.0.

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 3 of 41

 

 

	 	1.3.4	 	The depreciation components of Replacement Equipment charges are subject
to
escalation or de-escalation during the Term, in accordance with Article 4.0.
	 
	 	1.3.5	 	Equipment and Replacement Equipment charges shall take into
account all costs
associated with selection, procurement, mobilization and financing of
Equipment
and Replacement Equipment.
	 
	 	1.3.6	 	At the end of the full term of the Contract, upon reasonable
written notice, the
Owner shall have the option to purchase and the Contractor shall sell the
cable
shovels and/or EH5000 haul trucks, at a price determined in accordance with
Appendix “I”.
	 
	 	1.3.7	 	At the end of the full term of the Contract the Owner may
deliver an irrevocable
offer to the Contractor to purchase any Equipment, Replacement Equipment,
spare parts inventories, supplies and any other property of the Contractor
used
for the Work except the cable shovels and EH5000 haul trucks.
	 
	 	1.3.8	 	In the event that the Contractor is unable to perform its
obligations under this
Contract and adds equipment to its Equipment, any such additional charges
shall
be the responsibility of and paid by the Contractor.

	 	1.4	 	Overhead Charges

	 	1.4.1	 	Subject to Article 1.4.2, for Overhead, the amounts set out in
Rate Schedule “D”
shall be paid to the Contractor by the Owner on a prorated monthly basis
throughout the Term in accordance with the payment terms set forth in Article
4.0.
	 
	 	1.4.2	 	Overhead charges are subject to escalation or de-escalation
during the Term, in
accordance with Article 4.0.
	 
	 	1.4.3	 	Overhead charges shall include but are not limited to the following:

	 	1.4.3.1	 	Contractor’s head-office administration staff, salaries and benefits
when
required to support the Work;
	 
	 	1.4.3.2	 	Contractor’s field general management and administrative staff,
salaries
and benefits;
	 
	 	1.4.3.3	 	Engineering personnel, wages, salaries and benefits;
	 
	 	1.4.3.4	 	Warehouse personnel, wages, salaries and benefits;
	 
	 	1.4.3.5	 	Maintenance supervisory and administrative personnel, salaries and
benefits;
	 
	 	1.4.3.6	 	Safety and training supervisory and administrative personnel,
salaries
and benefits:
	 
	 	1.4.3.7	 	Subcontractor costs for management, administration, supervision,
engineering, safety and training;
	 
	 	1.4.3.8	 	All mobilization expenses not included in the Construction, Equipment
and Replacement Equipment charges;
	 
	 	1.4.3.9	 	Office equipment, supplies and expenses, including computers and
associated equipment;
	 
	 	1.4.3.10	 	Engineering equipment, tools, supplies and expenses;
	 
	 	1.4.3.11	 	Safety equipment, tools, supplies and expenses;
	 
	 	1.4.3.12	 	Training equipment, tools, supplies and expenses;
	 
	 	1.4.3.13	 	Ownership costs for vehicles used for administrative purposes;
	 
	 	1.4.3.14	 	Accommodation costs other than those for Construction personnel;
	 
	 	1.4.3.15	 	Insurance;

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
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	 	1.4.3.16	 	Inventory financing costs other than those included in the
Equipment
and Replacement Equipment charges;
	 
	 	1.4.3.17	 	Management information systems;
	 
	 	1.4.3.18	 	Security costs;
	 
	 	1.4.3.19	 	Janitorial services for the Facility and the Contractor’s Facility
Site;
	 
	 	1.4.3.20	 	Labour, equipment, parts, tools, materials, supplies and
Subcontractor
costs required for service, maintenance, replacement of components
and minor improvements of the Facility and the Contractor’s Facility
Site;
	 
	 	1.4.3.21	 	Telecommunication costs;
	 
	 	1.4.3.22	 	Employee relocation costs;
	 
	 	1.4.3.23	 	Travel costs other than those included in the BCM Rates; and
	 
	 	1.4.3.24	 	Natural gas and other energy costs, excluding electricity, for the
Facility and Contractor’s Facility Site.

	 	1.5	 	BCM Rates

	 	1.5.1	 	Subject to this Article 1.5, the BCM Rates for each Contract
Year during the
Term shall be as set out in Rate Schedule “E”.
	 
	 	1.5.2	 	BCM Rates are subject to escalation or de-escalation during the
Term, in
accordance with Article 4.0.
	 
	 	1.5.3	 	Subject to Article 4.0 the Contractor shall invoice the Owner
each month of a Contract Year during the Term, an amount equal to the number of
bank cubic metres of Overburden or other material moved by the Contractor
during the previous month multiplied by the BCM Rate in effect for the previous
month. The volume of Overburden or other material moved each month shall be
calculated by multiplying the Truck Factor for that month by the sum of all the
Truck Counts during that month.
	 
	 	1.5.4	 	When the average actual haul distance for a Contract Year is
less than the Average Haul Distance as set out in Rate Schedule “F”, the BCM
Rate for that Contract Year shall be adjusted using the applicable Underhaul
Rate and the following sequence of calculations;
	 
	 	 	 	1/ distance adjustment = (actual average haul distance — Average Haul
Distance)
	 
	 	 	 	2/ BCM Rate adjustment = (distance adjustment * Underhaul Rate)
	 
	 	 	 	3/ BCM Rate adjusted for distance = (BCM Rate + BCM Rate adjustment)
	 
	 	 	 	Likewise, when the average actual haul distance for a Contract Year is more
than the Average Haul Distance, the BCM Rate shall be adjusted using the
applicable Overhaul Rate and the same sequence of calculations.
	 
	 	 	 	The actual average haul distance (being a weighted average, calculated by
summing the products of hauled volumes and haul distances during a Contract
Year and then dividing that sum by the total volume hauled during that
Contract Year) shall be calculated using the shortest horizontal distances,
measured centrold to centrold, along haulroads that could be used by the
Contractor for Overburden Removal or muskeg/mineral soils removal, as the
case may be, during that Contract Year.
	 
	 	 	 	In order to minimize adjustments to the Compensation under Article 4.9, for
monthly progress invoices the Contractor shall use the BCM Rate in effect
for that Contract Year adjusted for distance using the estimated average
haul distance from the SWA Execution Plan for that same Contract Year.

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 5 of 41

 

 

	 	1.5.5	 	The BCM Rates, including those adjusted for distance, are subject to
escalation or de-escalation during the Term in accordance with Article 4.0.
	 
	 	1.5.6	 	Except as otherwise provided herein, the BCM Rates shall take
into account all costs associated with the removal, transportation and placement
of Overburden info dumps or dykes; the removal, transport and placement of
muskeg and mineral soils into stockpiles or onto areas to be reclaimed;
construction and maintenance of Contractor’s haulroads; and Contractor’s
Dewatering, The BCM Rate costs shall include, but are not limited to the
following:

	 	1.5.6.1	 	Contractor’s operating labour wages and benefits;
	 
	 	1.5.6.2	 	Contractor’s maintenance labour wages and benefits;
	 
	 	1.5.6.3	 	Costs for Subcontractors used in muskeg/mineral soils
removal, Overburden Removal and Contractor’s Dewatering, including but
not limited to those required for service, maintenance or repair of
Equipment, Replacement Equipment, equipment and vehicles;
	 
	 	1.5.6.4	 	Travel costs to/from the Contractor’s Facility Site and the Work
sites;
	 
	 	1.5.6.5	 	Tools, components, wear parts (including but not limited to tires)
materials, fuel other than diesel for mobile equipment used in the
performance of the Work, oil, grease and other supplies required for
service, maintenance and improvement of vehicles, Equipment and
Replacement Equipment;
	 
	 	1.5.6.6	 	Heating, lighting, power supply and fuel delivery
infrastructure, equipment, tools, parts, materials and supplies for the
Work sites other than the Facility and the Contractor’s Facility Site;
	 
	 	1.5.6.7	 	Energy costs, excluding electricity, for the Work sites other than
the Facility and the Contractor’s Facility Site;
	 
	 	1.5.6.8	 	Culverts, pumps, pumpstations, pipes, oil separation equipment and
all other equipment, tools, parts, materials and supplies, for
Dewatering the Work sites, Facility and Contractor’s Facility Site;
	 
	 	1.5.6.9	 	Construction and maintenance materials for roadwork including without
limitation aggregate and dust control materials; and
	 
	 	1.5.6.10	 	All other equipment, tools, parts, materials and supplies required for
Overburden Removal and muskeg/mineral soils removal not already identified in this
Article 1.5.6.

	 	1.5.7	 	Approximately [***] kilometres of haulroad construction have been included in the BCM
Rates, as more fully set forth in Rate Schedule “E”. Should the Owner request the Contractor
construct additional lengths of haulroad in order to reduce haul distances or to provide
additional hauling opportunities, a Change Order will be issued. This Change Order shall be priced
in accordance with the haulroad construction rates set forth in Rate Schedule “E” and shall
exclude additional lengths of haulroad that have been compensated for by Overburden volumes moved
by the Contractor in excess of those set forth in Schedule “1” Estimated Overburden
Volumes_By_Year included in Section “C” — SCOPE OF
WORK Should less than [***] ([***]) million bank
cubic metres of Overburden be removed by the Contractor in the first Contract Year an adjustment
shall be made to the BCM Rate to compensate the Contractor for the length of haulroad it has
constructed but has not yet been compensated for.

	 	1.6	 	Demobilization Charges

	 	1.6.1	 	Further to Article 25.5 of Section “B” — TERMS AND
CONDITIONS, in the event of a full Termination for Convenience:

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number 400472
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	 	1.6.1.1	 	Owner will purchase the Facility at a purchase price to be
determined in accordance with Appendix “I” and a Demobilization charge
for the Facility and Contractor’s Facility Site shall not apply;
	 
	 	1.6.1.2	 	Owner will purchase those specific items of Equipment and Replacement
Equipment set out in Appendix “I” at purchase prices to be determined in
accordance with Appendix “I”;
	 
	 	1.6.1.3	 	Owner will pay Contractor the amount set forth below, to dismantle and
demobilize all of the other Equipment and Replacement Equipment. In the
event the Owner agrees to purchase and the Contractor agrees to sell
additional items of the Equipment and/or Replacement Equipment, then as
part of such agreement the Owner and the Contractor shall agree upon the
reduction to the amount otherwise payable hereunder. Subject to Article
4.3, this Demobilization charge shall be paid after all of the Equipment
and Replacement Equipment not being purchased by the Owner are dismantled
and removed from the CNRL Site. This Demobilization charge is subject
to escalation or de-escalation in accordance with Article 4.0.

	 	a)	 	Demobilization of cable shovels,
hydraulic shovels, EH5000 haul trucks, 24H graders and D11R
dozers: $[***]
	 
	 	b)	 	Demobilization of all other Equipment and Replacement
Equipment: $[***]

	 	1.6.1.4	 	Owner will pay Contractor for the unrecoverable value of support equipment which
for each item is the difference between the net book value based upon the
Acquisition Cost and the fair market value of such item at the date of termination.
Contractor shall reimburse Owner for any overcompensation in the event that Fair
Market Value exceeds Net Book Value. The Parties shall enter into good faith
negotiations with a view to obtaining agreement on a reasonable amount to be paid
for the unrecoverable value of support equipment, failing which the Owner shall
determine such amount acting reasonably. For the purposes of this Article,
support equipment includes the float truck, crew buses, fuel and lube trucks (3),
oil change truck, fuel truck, 30 or 40 ton hydraulic picker truck, 10
ton picker,
zoom boom with man basket, steam truck with man basket, tandem tire truck with
compressor, field fork-lift/loader, tire manipulator, tool carrier, skid steer,
Hyster fork-lift, welding trucks, welding trailer, mechanical trucks,
heat
trailers, lube trailer, gen-sets, and fuel tanks. In the event the Owner agrees
to purchase and the Contractor agrees to sell any items of support equipment, then
the amount payable by Owner to Contractor for the unrecoverable value shall be
reduced accordingly. Subject to Article 4.9, the amount for unrecoverable value
of support equipment shall be included on the final Invoice; and
	 
	 	1.6.1.5	 	Owner will pay Contractor the amount set forth below, for Demobilization of
all remaining equipment, vehicles, materials and personnel not provided for in
Articles 1.6.1.1 to 1.6.1.4 inclusive. Subject to Article 4.3 this amount shall
be paid after all of the Contractor’s equipment, vehicles, materials and
personnel are removed from the CNRL Site. This Demobilization charge is subject
to escalation or de-escalation in accordance with Article 4.0.

	 	a)	 	Demobilization of equipment, vehicles, materials and
personnel: $[***]

	 	1.6.2	 	At the end of the full term of the Contract:

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 7 of 41

 

 

	 	1.6.2.1	 	In the event that the Owner does not exercise the option set
out in Article 1.2.4, the Owner shall pay the Contractor the amounts set
forth below, to dismantle and demobilize the Facility and for
recovery of the unrecoverable value of the Facility. Subject to Article
4.3, these amounts shall be paid after the Facility is dismantled and
removed from the CNRL Site and the Contractor’s Facility Site has been
cleaned up to the Owner’s satisfaction. The charge to dismantle and
demobilize the Facility is subject to escalation or de-escalation in
accordance with Article 4.0. The unrecoverable value of the Facility is
not subject to escalation or de-escalation.

	 	 	 	 	 
	a) Unrecoverable value of Facility:
	 	$	[***]	 
	b) Demobilization Facility:
	 	$	[***]	 

	 	1.6.2.2	 	Owner shall pay Contractor the amounts set forth below, to dismantle
and demobilize the Equipment and Replacement Equipment. In the event
the Owner agrees to purchase and the Contractor agrees to sell any or all
of the Equipment and Replacement Equipment, then as part of such
agreement the Owner and the Contractor shall agree upon the reduction to
the sum otherwise payable hereunder. Subject to Article 4.3, these
Demobilization charges shall be paid after all of the Equipment and
Replacement Equipment not being purchased by the Owner are dismantled and
removed from the CNRL Site. These Demobilization charges are subject to
escalation or de-escalation in accordance with Article 4.0.

	 	 	 	 	 
	a) Demobilization of cable shovels:
	 	$	[***]	 
	b) Demobilization of EH5000 haul trucks:
	 	$	[***]	 
	c) Demobilization of hydraulic shovels:
	 	$	[***]	 
	d) Demobilization of 24H graders:
	 	$	[***]	 
	e) Demobilization of D11R dozers:
	 	$	[***]	 
	f) Demobilization of all other Equipment and Replacement Equipment
	 	$	[***]	 

	 	1.6.2.3	 	Owner shall pay Contractor for the unrecoverable value of support
equipment, and in the event Owner does not exercise its option set out
in Article 1.3.6, Owner shall also pay Contractor the unrecoverable
value of the cable shovels and/or EH5000 haul trucks. The unrecoverable
value for each item of support equipment, cable shovels and EH5000 haul
trucks is the difference between the net book value based upon the
Acquisition Cost and the fair market value of such item at the date of
termination. Contractor shall reimburse Owner for any overcompensation
in the event that Fair Market Value exceeds Net Book Value. The Owner
and Contractor shall enter into good faith negotiations with a view to
obtaining agreement on a reasonable amount to be paid for the
unrecoverable value of the support equipment, cable shovels and EH5000
haul trucks, failing which the Owner shall determine such amount acting
reasonably. For the purposes of this Article, support equipment
includes those items listed in Article 1.6.1.4. In the event the Owner
agrees to purchase and the Contractor agrees to sell specific items of
support equipment, then the amount payable by Owner to Contractor for
unrecoverable values shall be reduced accordingly. Subject to Article
4.9, the agreed upon unrecoverable value of support equipment, cable
shovels and EH5000 haul trucks shall be included on the final Invoice;
and

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number 400472
	 	Page 8 of 41

 

 

	 	1.6.2.4	 	Owner will pay Contractor the amount set forth below, for
Demobilization of all remaining equipment, vehicles, materials and
personnel not provided for in Articles 1.6.2.1 to 1.6.2.3 Inclusive.
Subject to Article 4.3 this amount shall be paid after all of the
Contractor’s equipment, vehicles, materials and personnel are
removed from the CNRL Site. This Demobilization charge is subject
to escalation or de-escalation in accordance with Article 4.0.
	 
	 	 	 	Demobilization of equipment, vehicles, materials and personnel: $[***]

	 	1.7	 	Letter of Credit

	 	1.7.1	 	The Owner shall pay the Contractor the cost of the Letter of
Credit in the amounts and at the rates set forth below:

	 	1.7.1.1	 	The cost of the Letter of Credit for amounts up to
[***] dollars ($[***])
shall be [***] ([***]) percent paid for by the Owner: and
	 
	 	1.7.1.2	 	The additional cost of the Letter of Credit for amounts exceeding
[***] dollars ($[***]) shall be [***]
([***]) percent paid for by the
Owner

	 	 	 	provided, however, that if the annual cost of providing the Letter of Credit exceeds
[***] ([***]) percent of the required value of the Letter of Credit specified by the Owner
the excess shall be paid by the Contractor.
	 
	 	1.7.2	 	The cost of the Letter of Credit as determined by Article 1.7.1 shall be
paid to the Contractor by the Owner in accordance with the payment terms set forth in
Article 4.2.
	 
	 	1.7.3	 	The charges for the Letter of Credit are not subject to escalation or
de-escalation during the Term.

	 	1.8	 	Camp Accommodation

	 	1.8.1	 	During the Term the Owner’s site accommodation will be
available to the Contractor’s employees and agents and its Subcontractors’
employees and agents. The cost of accommodation will be $ [***] per person
per day until the Overburden Removal Commencement Date and $ [***] per
person per day thereafter. The charges for Owner’s site accommodation are
subject to escalation or de-escalation during the Term, In accordance with
Article 4.0.
	 
	 	1.8.2	 	The Contractor shall contact the Owner to obtain
prior approval for accommodation at the Owner’s site. Failure to obtain the
necessary approval shall result in accommodation not being allocated, and the
Owner will not be responsible for any costs so incurred.
	 
	 	1.5.3	 	The Owner’s site accommodation cost includes breakfast, dinner
and a bagged lunch on a daily basis.
	 
	 	1.8.4	 	The Contractor shall advise the Owner’s site accommodation
housing office of termination, layoffs and days off on a daily basis during the
Construction period and its accommodation requirements on a monthly and annual
basis thereafter.
	 
	 	1.8.5	 	The Contractor, its employees and agents and Subcontractors and
their employees and agents shall be responsible for adhering to any and all
published or posted rules and procedures with respect to the use of the Owner’s
site accommodation.
	 
	 	1.8.6	 	Public parking space will be available adjacent to the Owner’s
site accommodation on a first-come first-served basis. The Contractor shall be
responsible, without cost to the Owner, for transportation of its employees and
agents and its Subcontractors’ employees and agents between the Owner’s site

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 9 of 41

 

 

accommodation and the Work sites.

	2.0	 	PRICING FOR CHANGES
	 
	 	 	The Owner may request, and Contractor shall provide, proposals for Scope of Work changes
(additions and deletions) which are priced, at the Owner’s option, by one or a combination of
the following methods:

	 	2.1	 	If the Work can be fairly classified under the rates set forth in the Compensation,
the applicable unit rates set forth in this Contract;
	 
	 	2.2	 	Negotiated lump sums based upon a mutually agreed Scope of Work;
	 
	 	2.3	 	Negotiated unit prices not established in the Contract;
	 
	 	2.4	 	On an extra work (“forced-account”) basis.

	3.0	 	TAXES

	 	3.1	 	The Compensation as set forth herein includes all applicable taxes, duties or levies of
any kind imposed upon the Contractor by any Governmental Authority having jurisdiction over the
Contractor or the Work. Contractor shall not be reimbursed for personal property taxes on
construction equipment and other property owned by Contractor, and
taxes on net income of Contractor.
	 
	 	3.2	 	The application and Invoicing of the Goods and Services Tax (GST) shall be as
expressly stated in Article 6.3.

	4.0	 	PAYMENT TERMS

	 	4.1	 	At a fixed date each month, to be mutually agreed in writing by the Parties, and
failing such agreement to be determined by the Owner acting reasonably, the Contractor
shall submit an invoice and all supporting documentation as may be requested by the
Owner detailing the monthly charges for:

	 	4.1.1	 	Construction;
	 
	 	4.1.2	 	Equipment;
	 
	 	4.1.3	 	Replacement Equipment;
	 
	 	4.1.4	 	Overhead;
	 
	 	4.1.5	 	The number of bank cubic metres of Overburden or other material moved by
the Contractor during the previous month multiplied by the BCM Rate in effect for the
previous month;
	 
	 	4.1.6	 	The Contractor’s direct cost, if any, for diesel fuel used for its mobile
equipment
used in the performance of the Work, in accordance with Article 6.14 of Section
“C” — SCOPE OF WORK; and
	 
	 	4.1.7	 	The amounts owed by the Contractor to the Owner for removal of aggregate
materials from the Owner’s northeast pit, for the Owner’s direct costs to supply
natural gas for the Facility, and for use of the Owner’s site accommodation.

	 	 	 	Notwithstanding the foregoing, with the exception of the Letter of Credit for the first
Contract Year, Contractor shall not issue any invoices for the Work prior to the first
month following the Overburden Removal Commencement Date.
	 
	 	4.2	 	At the beginning of each Contract Year, at a fixed date to be mutually agreed in
writing by the Parties, and failing such agreement to be determined by the Owner acting
reasonably, the Contractor shall submit an invoice and all supporting documentation as
may be requested by the Owner detailing the annual charge, if any, for the Letter of
Credit for the coming Contract Year.
	 
	 	4.3	 	For the first two (2) Contract Years, payments shall be due thirty (30) calendar
days after receipt by the Owner of an invoice in a form acceptable to
the Owner. For the remainder of the Term, payments shall be due fifteen (15) calendar days after receipt by the Owner

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section“D” — Compensation
	Contract Number: 400472
	 	Page 10 of 41

 

 

	 	 	 	of an Invoice in a form acceptable to the Owner. The Owner may process invoices for
payment net of any amounts incorrectly or improperly invoiced. The Owner shall be
entitled to set off any amount to which the Owner may be entitled as against any amount
owing to the Contractor under this Contract.
	 
	 	4.4	 	The parties recognize and agree that the objective of escalation or de-escalation
adjustments is that neither Party shall benefit at the expense of the other because of
these adjustments. For clarity; the following components of Compensation or cost are
subject to escalation or de-escalation:

	 	4.4.1	 	The depreciation component of Replacement Equipment charges;
	 
	 	4.4.2	 	Overhead charges;
	 
	 	4.4.3	 	BCM Rates, including those adjusted for distance in accordance with Article 1.5.4 hereof;
	 
	 	4.4.4	 	Demobilization charges, excluding the unrecoverable values of the
Facility, cable shovels, EH5000 haul trucks and support equipment;
	 
	 	4.4.5	 	Aggregate material removed from the Owner’s gravel pit northeast of the
plant; and
	 
	 	4.4.6	 	Accommodation at the Owner’s site.

	 	4.5	 	For components of Compensation and cost subject to escalation or de-escalation
the adjustment for escalation or de-escalation shall be calculated as follows:

	 	4.5.1	 	Adjustments shall be calculated for yearly periods, except for the first
Contract Year, in which case the adjustment period shall be from the Overburden
Removal Commencement Date to December 31, 2005 inclusive, and
except in the event of default or termination of the Contract, in which case the adjustment
shall be from the end of the previous escalation/de-escalation adjustment period to
the month of the date of default or termination, Inclusive.
	 
	 	4.5.2	 	Subject to the provisions of Article 4.5.1, for Overhead charges,
Demobilization charges, the unit cost for aggregate material removed from the Owner’s
gravel pit northeast of the plant, and the unit cost of accommodation at the Owner’s
site:

	 	 	 	 	 	 	 
	 

	 	CCe = CC *
	 	CPla
 

CPlb
	 	 

	 	 	 	Where:
	 
	 	 	 	CCe = the component of Compensation or cost adjusted for escalation or de-escalation;
	 
	 	 	 	CC = the component of Compensation or cost for the period in question;
	 
	 	 	 	CPla = the arithmetic average of the January to December inclusive, first published indices for
the Statistics Canada Consumer Price Index, Major Components, Selected Sub-groups and Special
Aggregates (Not Seasonally Adjusted), Alberta, all items excluding energy, for the period in
question; and
	 
	 	 	 	CPlb = the arithmetic average of the first published indices for the Statistics Canada
Consumer Price Index, Major Components, Selected Sub-groups and Special Aggregates (Not
Seasonally Adjusted), Alberta, all items excluding energy, for the base period of January to
December 2004 inclusive.
	 
	 	4.5.3	 	Subject to the provisions of Article 4.5.1 hereof, for the BCM Rates:

	 	 	 	 	 	 	 
	 

	 	BCe = BC * ([***] *WR + [***] *
	 	CPla)
 

CPlb
	 	 

Where:

BCe = the BCM Rate adjusted for escalation or de-escalation;

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 11 of 41

 

 

	 	 	 	BC = the BCM Rate for the period in question;
	 
	 	 	 	WR = the arithmetic average of the change, for the period in question, of the base
wage rate at each of the Syncrude, Suncor and Albian open pit oil sand mines in the
Fort McMurray area, relative to the base period of January to December, 2004
inclusive;
	 
	 	 	 	CPla = the arithmetic average of the January to December inclusive, first published
indices for the Statistics Canada Consumer Price Index, Major Components, Selected
Sub-groups and Special Aggregates (Not Seasonally Adjusted), Alberta, all items
excluding energy, for the period in question; and
	 
	 	 	 	CPlb = the arithmetic average of the first published indices for the Statistics
Canada Consumer Price Index, Major Components, Selected Sub-groups and Special
Aggregates (Not Seasonally Adjusted), Alberta, all items excluding energy, for the
base period of January to December 2004 inclusive.
	 
	 	4.5.4	 	Subject to the provisions of Article 4.5.1, for the depreciation
component of Replacement Equipment charges:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	DCe = DC *
	 	Pa
	 	*
	 	FXa	 	 
	 

	 	 	 	 

	 	 	 	 

	 	 
	 

	 	 	 	Pb
	 	 	 	FXb	 	 

	 	 	 	Where:
	 
	 	 	 	DCe = the depreciation component of Replacement Equipment charges for a particular
year of additions to Replacement Equipment adjusted for escalation or
de-escalation;
	 
	 	 	 	DC = the depreciation component of Replacement Equipment charges for a particular
year of additions to Replacement Equipment as set out in Rate Schedules “Ci” to
“Cix” inclusive;
	 
	 	 	 	Pa = the arithmetic average of the January to December Inclusive, first published indices for the
US Department of Labor Producer Price Index for construction machinery manufacturing, Series ID;
pcu333120333120, for the particular year of additions to Replacement Equipment;
	 
	 	 	 	Pb = the US Department of Labor Producer Price Index for construction
machinery manufacturing, Series ID: pcu333120333120, for the base period
which shall equal [***];
	 
	 	 	 	FXa = the weighted (by number of days in affect) average Canadian foreign
exchange rate (US$/CDN$) for the particular year of additions to Replacement
Equipment; and
	 
	 	 	 	FXb = the Canadian foreign exchange rate (US$/CDN$) for the base period,
which shall equal [***].
	 
	 	 	 	For a sample calculation please refer to Appendix IV “Example of Depreciation
Component of Replacement Equipment, Sample Calculation”.
	 
	 	4.5.5	 	In each year following the first Contract Year, within the first quarter
of the year, escalation or de-escalation adjustments shall be finalized for the
previous Contract Year.
	 
	 	4.5.6	 	The estimated escalation or de-escalation for progress payments during
each Contract Year shall be based upon the final escalation or de-escalation
adjustments for the previous Contract Year.

	 	4.6	 	The Contractor shall provide the Owner with at least thirty (30) calendar days prior
written notice of any proposed escalation adjustments. The Owner will provide the Contractor
written approval upon acceptance of the proposed escalation adjustment and the
Contractor shall then submit Invoices for the adjusted component of the Compensation
accordingly. Alternatively, the Owner will provide the Contractor with at least thirty (30)
calendar days prior written notice of any proposed escalation adjustments and in that

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 12 of 41

 

 

	 	 	 	event, the Contractor shall provide the Owner written confirmation upon acceptance of
the proposed escalation adjustment and shall then submit invoices accordingly.
	 
	 	4.7	 	In the event that an index for an escalation or de-escalation adjustment is
discontinued or, upon the mutual agreement of the Parties, is no longer representative of
its Intended purpose, the Contractor and Owner shall agree on a replacement Index at the
earliest possible date and failing such agreement such replacement index shall be
selected by the Owner acting reasonably.
	 
	 	4.8	 	In the event the results of a Reconciliation Survey indicate that the volume of
Overburden or other material moved by the Contractor is different than the volume
calculated in accordance with Article 1.5.3, the results of the Reconciliation Survey
shall govern. If an adjustment is required, the Owner will add to or deduct from, as the
case may be, the amount otherwise owing to the Contractor in the following month.
	 
	 	4.9	 	In each year following the first Contract Year, an adjustment to the Compensation
shall be made to reflect the actual average haul distance for the Previous Contract Year,
in accordance with Article 1.5.4, and for the results of the final Reconciliation Survey
for that same Contract Year.
	 
	 	4.10	 	The final invoice shall be submitted for payment after completion and acceptance of
Work by the Owner and compliance by Contractor with all terms of this
Contract. This
invoice shall contain or be supported by a Final Payment Certificate and Release. Unless
otherwise required by applicable law, final payment shall not be made less than forty
five (45) calendar days after completion and acceptance of all Work and in any event,
shall not be sooner than forty (40) calendar days after receipt of a proper invoice and
supporting documents satisfactory by the Owner. Final payment shall not relieve
Contractor of any obligations under Contract guarantees.
	 
	 	4.11	 	At the Owner’s request, the Contractor shall furnish evidence, satisfactory to the
Owner, that all labour and materials furnished and equipment used during the period
covered by any invoice have been paid for in full and that the Work is not subject to
liens or claims on account thereof. The Owner may withhold payment of Invoices until
Contractor furnishes such evidence.

	5.0	 	DETERMINATION OF UNITS

	 	5.1	 	Measurement for muskeg and mineral soils removal from insitu ground shall be in
bank cubic metres as determined from Reconciliation Surveys and measurement for muskeg
and mineral soils removal from stockpiles, when this activity is part of an approved SWA,
shall be In cubic metres as determined from Reconciliation Surveys, all as more
particularly set out in Specification 200 — Muskeg and Mineral Soils Removal, included in
Section “E” — ATTACHMENTS.
	 
	 	5.2	 	Measurement for Overburden Removal shall be in bank cubic metres as determined
from Reconciliation Surveys, all as more particularly set out in
Specification 300 —
Overburden Removal, included in Section “E” — ATTACHMENTS.

	6.0	 	INVOICING INSTRUCTIONS

	 	6.1	 	Each Invoice submitted to the Owner shall contain the following information:

	 	6.1.1	 	Date of Invoice;
	 
	 	6.1.2	 	The time period during which the Work was performed and for which the
Invoice is submitted;
	 
	 	6.1.3	 	Contract Number: 400472;
	 
	 	6.1.4	 	Contractor’s goods and services tax registration number;
	 
	 	6.1.5	 	Invoice amount net of goods and services tax;
	 
	 	6.1.6	 	Amount of goods and services tax payable by the Owner; and
	 
	 	6.1.7	 	Invoice amount Including goods and services tax.

			
	 	 	 
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	 	Section “D” —
Compensation
	Contract Number: 400472
	 	Page 13 of 41

 

 

	 	6.2	 	The Contractor shall submit separate Invoices in original and two copies
complete with alt supporting documentation to:

Canadian Natural Resources Ltd. — Horizon Project
 Suite
1800,324- 8th Avenue SW 
Calgary, AB T2P 2Z2

Attention: Chris Baker, Supervisor Cost Accounting

	 	6.3	 	Goods and Services Tax (GST)

	 	6.3.1	 	Contractor shall ensure all Invoices presented to the Owner separately
identify the GST amount applicable to the Work that is to be paid to Contractor,
Failure to Identify GST on Invoice(s) will mean that the Owner will reject the
Invoice(s), If the GST value is zero dollars this must be clearly identified.
	 
	 	6.3.2	 	For Invoices for extra work, a copy of invoices for any good or services
provided by Third Parties must be attached. The GST from the Third Party invoices
shall not be Included in Contractor’s Invoices for extra work.
	 
	 	6.3.3	 	All Invoices must contain Contractor’s GST Registration Number.
	 
	 	6.3.4	 	The GST is not to be considered an applicable tax for the purpose of
Article 3.1. Therefore, the GST amount, when agreed to by the Owner, shall be paid
by the Owner to Contractor in addition to the amount certified for payment under
this Contract.

	7.0	 	RATE SCHEDULES

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 14 of 41

 

 

RATE SCHEDULE “A”

CONSTRUCTION CHARGES

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	1	 	 	$	[***]	 
	 
	 	 	2	 	 	$	[***]	 
	 
	 	 	3	 	 	$	[***]	 
	 
	 	 	4	 	 	$	[***]	 
	 
	 	 	5	 	 	$	[***]	 
	 
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 15 of 41

 

 

RATE SCHEDULE “B”

EQUIPMENT CHARGES

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	1	 	 	$	[***]	 
	 
	 	 	2	 	 	$	[***]	 
	 
	 	 	3	 	 	$	[***]	 
	 
	 	 	4	 	 	$	[***]	 
	 
	 	 	5	 	 	$	[***]	 
	 
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

Where consistent utilization of equipment is not anticipated,
 for example, utilizing Cat 777D haul
trucks for muskeg removal or bringing in additional excavators for cleaning the tailings dyke for
placement during the winter season, Contractor has supplemented its fleet with equipment from other
sources. The charges for such additional equipment are included in the BCM Rates.

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 16 of 41

 

 

RATE SCHEDULE “C”

REPLACEMENT EQUIPMENT CHARGES

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	1	 	 	$	[***]	 
	 
	 	 	2	 	 	$	[***]	 
	 
	 	 	3	 	 	$	[***]	 
	 
	 	 	4	 	 	$	[***]	 
	 
	 	 	5	 	 	$	[***]	 
	 
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

			
	 	 	 
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	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 17 of 41

 

 

RATE
SCHEDULE “Ci”

DEPRECIATION COMPONENT OF REPLACEMENT
EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 2

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	2	 	 	$	[***]	 
	 
	 	 	3	 	 	$	[***]	 
	 
	 	 	4	 	 	$	[***]	 
	 
	 	 	5	 	 	$	[***]	 
	 
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

RATE
SCHEDULE “Cii”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 3

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	3	 	 	$	[***]	 
	 
	 	 	4	 	 	$	[***]	 
	 
	 	 	5	 	 	$	[***]	 
	 
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 18 of 41

 

 

RATE
SCHEDULE “Ciii”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 4

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	4	 	 	$	[***]	 
	 
	 	 	5	 	 	$	[***]	 
	 
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

RATE
SCHEDULE “Civ”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 5

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	5	 	 	$	[***]	 
	 
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 19 of 41

 

 

RATE
SCHEDULE “Cv”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 6

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	6	 	 	$	[***]	 
	 
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

RATE
SCHEDULE “Cvi”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 7

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	7	 	 	$	[***]	 
	 
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 20 of 41

 

 

RATE
SCHEDULE “Cvii”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 8

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	8	 	 	$	[***]	 
	 
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

RATE
SCHEDULE “Cviii”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS
 IN

CONTRACT YEAR 9

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	9	 	 	$	[***]	 
	 
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

RATE
SCHEDULE “Cix”

DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT CHARGES FOR ADDITIONS IN

CONTRACT YEAR 10

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	 	10	 	 	$	[***]	 
	 
	 	 	11	 	 	$	[***]	 

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 21 of 41

 

 

RATE SCHEDULE “D”

OVERHEAD CHARGES

	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	1	 	$	[***]	 
	 
	 	2	 	$	[***]	 
	 
	 	3	 	$	[***]	 
	 
	 	4	 	$	[***]	 
	 
	 	5	 	$	[***]	 
	 
	 	6	 	$	[***]	 
	 
	 	7	 	$	[***]	 
	 
	 	8	 	$	[***]	 
	 
	 	9	 	$	[***]	 
	 
	 	10	 	$	[***]	 
	 
	 	11	 	$	[***]	 

Notes: Overhead charges do not include general foreman and front line supervision. These costs are
included in the BCM Rates. Maintenance supervisory staff are also included in the BCM Rates.

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 22 of 41

 

 

RATE SCHEDULE “E”

BCM RATES

	 	 	 	 	 	 	 	 	 
	Contract Year
	 	1	 	$	[***]	 	 	per bank cubic metre
	 
	 	2	 	$	[***]	 	 	per bank cubic metre
	 
	 	3	 	$	[***]	 	 	per bank cubic metre
	 
	 	4	 	$	[***]	 	 	per bank cubic metre
	 
	 	5	 	$	[***]	 	 	per bank cubic metre
	 
	 	6	 	$	[***]	 	 	per bank cubic metre
	 
	 	7	 	$	[***]	 	 	per bank cubic metre
	 
	 	8	 	$	[***]	 	 	per bank cubic metre
	 
	 	9	 	$	[***]	 	 	per bank cubic metre
	 
	 	10	 	$	[***]	 	 	per bank cubic metre
	 
	 	11	 	$	[***]	 	 	per bank cubic metre

Haulroads included in the BCM Rates

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Estimated Quantity	 	 	 	 	 	 
	Contract Year	 	Horizontal Metres	 	Rate / M	 	 	 	 
	1
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	2
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	3
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	4
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	5
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	6
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	7
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	8
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	9
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	10
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	11
	 	 	[***]	 	 	$	[***]	 	 	$	[***]	 
	Subtotal
	 	 	[***]	 	 	 	 	 	 	$	[***]	 

Overburden Removal haulroads are designed to accommodate 3 1/2 times the width of a 320t capacity
haul-truck. Quantity of Overburden Removal haulroads is based on the Drawings and is in addition to
temporary roads to provide access to working benches, mining or dump faces.

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 23 of 41

 

 

RATE SCHEDULE “F”

AVERAGE HAUL DISTANCES

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	1	 	 	[***]	 	 	kilometers
	 
	 	2	 	 	[***]	 	 	kilometers
	 
	 	3	 	 	[***]	 	 	kilometers
	 
	 	4	 	 	[***]	 	 	kilometers
	 
	 	5	 	 	[***]	 	 	kilometers
	 
	 	6	 	 	[***]	 	 	kilometers
	 
	 	7	 	 	[***]	 	 	kilometers
	 
	 	8	 	 	[***]	 	 	kilometers
	 
	 	9	 	 	[***]	 	 	kilometers
	 
	 	10	 	 	[***]	 	 	kilometers
	 
	 	11	 	 	[***]	 	 	kilometers

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 24 of 41

 

 

RATE SCHEDULE “G”

UNDERHAUL RATES

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	1	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	2	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	3	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	4	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	5	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	6	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	7	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	8	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	9	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	10	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	11	 	$	[***]	 	 	per bank cubic metre per kilometre

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 25 of 41

 

 

RATE SCHEDULE “H”

OVERHAUL RATES

	 	 	 	 	 	 	 	 	 
	CONTRACT YEAR
	 	1	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	2	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	3	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	4	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	5	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	6	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	7	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	8	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	9	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	10	 	$	[***]	 	 	per bank cubic metre per kilometre
	 
	 	11	 	$	[***]	 	 	per bank cubic metre per kilometre

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 26 of 41

 

 

RATE SCHEDULE “I”

EQUIPMENT AND REPLACEMENT EQUIPMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Equipment	 	Unit	 	 	 	 	 	 	 	Acquistion	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Description	 	No.	 	Make	 	Model	 	Year	 	Date	 	2005	 	2006	 	2007	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015
	 	 	 	 	 	 	 	 	 	 	 	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.
	Hydraulic
shovels
	 	S-01	 	Hitachi	 	EX8000	 	2005	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	S-02	 	Hitachi	 	EX6000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	S-03	 	P&H	 	4100	 	2006	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	S-04	 	P&H	 	4100	 	2009	 	Jun-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Haulage Units
	 	T-01	 	Euclid-Hitachi	 	EH5000	 	2005	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-02	 	Euclid-Hitachi	 	EH5000	 	2005	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-03	 	Euclid-Hitachi	 	EH5000	 	2005	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-04	 	Euclid-Hitachi	 	EH5000	 	2005	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-05	 	Euclid-Hitachi	 	EH5000	 	2005	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-06	 	Euclid-Hitachi	 	EH5000	 	2005	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-07	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jan-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-08	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-09	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-10	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-11	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-12	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-13	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-14	 	Euclid-Hitachi	 	EH5000	 	2006	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-15	 	Euclid-Hitachi	 	EH5000	 	2007	 	Jan-07	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-16	 	Euclid-Hitachi	 	EH5000	 	2008	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-17	 	Euclid-Hitachi	 	EH5000	 	2008	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-18	 	Euclid-Hitachi	 	EH5000	 	2008	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-19	 	Euclid-Hitachi	 	EH5000	 	2008	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-20	 	Euclid-Hitachi	 	EH5000	 	2008	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-21	 	Euclid-Hitachi	 	EH5000	 	2008	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-22	 	Euclid-Hitachi	 	EH5000	 	2009	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-23	 	Euclid-Hitachi	 	EH5000	 	2009	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-24	 	Euclid-Hitachi	 	EH5000	 	2009	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-25	 	Euclid-Hitachi	 	EH5000	 	2009	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	T-26	 	Euclid-Hitachi	 	EH5000	 	2009	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 27 of 41

 

 

     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Support	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	OPERATING HOURS
	Equipment	 	 	Unit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Acquisition	 	2005	 	2006	 	2007	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015
	Description	 	 	No.	 	 	Make	 	 	Model	 	 	Year	 	Date	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.
	Sub-Contracted
	 	 	T-27	 	 	Euclid-Hitachi	 	 	EH5000	 	 	 	2008	 	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	 	T-28	 	 	Euclid-Hitachi	 	 	EH5000	 	 	 	2009	 	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	 	T-29	 	 	Euclid-Hitachi	 	 	EH5000	 	 	 	2012	 	 	Jan-12	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	 	T-30	 	 	Euclid-Hitachi	 	 	EH5000	 	 	 	2012	 	 	Jan-12	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	 	T-31	 	 	Euclid-Hitachi	 	 	EH5000	 	 	 	2012	 	 	Jan-12	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Support	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	OPERATING HOURS
	Equipment	 	Unit	 	 	 	 	 	 	 	 	 	Acquisition	 	2005	 	2006	 	2007	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015
	Description	 	No.	 	Make	 	Model	 	Year	 	Date	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.
	Graders
	 	G-01	 	Caterpillar	 	24H	 	 	2005	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	G-02	 	Caterpillar	 	24H	 	 	2006	 	 	Jan-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	G-03	 	Caterpillar	 	24H	 	 	2006	 	 	Jan-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	G-04	 	Caterpillar	 	24H	 	 	2009	 	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	G-05	 	Caterpillar	 	18H	 	 	2005	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	G-06	 	Caterpillar	 	18H	 	 	2008	 	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dozer (Rubber Tired)
	 	RT-01	 	Caterpillar	 	834B	 	 	2006	 	 	Jun-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Dozers (Tracked)
	 	D6-01	 	Caterpillar	 	D6R	 	 	2005	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D8-01	 	Caterpillar	 	D8R	 	 	2005	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D9-01	 	Caterpillar	 	D9R	 	 	2005	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10-01	 	Caterpillar	 	D10R	 	 	2005	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10-02	 	Caterpillar	 	D10R	 	 	2005	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10-03	 	Caterpillar	 	D10R	 	 	2007	 	 	Jan-07	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10-04	 	Caterpillar	 	D10R	 	 	2008	 	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10-05	 	Caterpillar	 	D10R	 	 	2004	 	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11-01	 	Caterpillar	 	D11R	 	 	2004	 	 	Jun-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11-02	 	Caterpillar	 	D11R	 	 	2004	 	 	Jan-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11-03	 	Caterpillar	 	D11R	 	 	2004	 	 	Jan-06	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11-04	 	Caterpillar	 	D11R	 	 	2004	 	 	Jan-08	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11-05	 	Caterpillar	 	D11R	 	 	2004	 	 	Jan-09	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 

	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 28 of 41

 

 

     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	OPERATING HOURS
	Equipment	 	Unit	 	 	 	 	 	 	 	 	 	 	 	Acquisition	 	2005	 	2006	 	2007	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015
	Description	 	No.	 	Make	 	Model	 	Year	 	Date	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.
	Backhoe Excavators
	 	EX450-01	 	Hitachi	 	EX450	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	EX450-02	 	Hitachi	 	EX450	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	EX450-03	 	Hitachi	 	EX450	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	EX450-04	 	Hitachi	 	EX450	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	EX750-01	 	Hitachi	 	EX750	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	EX1200-01	 	Hitachi	 	EX1200	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Sub-Contracted
	 	EX2500-01	 	Hitachi	 	EX2500	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	Support Truck Fleat
	 	Subcontracted	 	Caterpillar	 	7770	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	As needed	 	Euclid-Hitachi	 	EH5000	 	 	2005	 	 	Jan-05	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 

REPLACEMENT

EQUIPMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	OPERATING HOURS
	Equipment	 	Unit	 	 	 	 	 	 	 	 	 	 	 	Acquisition	 	2005	 	2006	 	2007	 	2008	 	2009	 	2010	 	2011	 	2012	 	2013	 	2014	 	2015
	Description	 	No.	 	Make	 	Model	 	Year	 	Date	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.	 	Year	 	Cum.
	Dozers (Tracked)
	 	D8R-02	 	Caterpillar	 	 	D8R	 	 	 	2014	 	 	Oct-14	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D9R-02	 	Caterpillar	 	 	D9R	 	 	 	2012	 	 	Jun-12	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10R-06	 	Caterpillar	 	 	D-10	 	 	 	2011	 	 	Jun-11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10R-07	 	Caterpillar	 	 	D-10	 	 	 	2011	 	 	Jun-11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10R-08	 	Caterpillar	 	 	D-10	 	 	 	2013	 	 	Jan-11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10R-09	 	Caterpillar	 	 	D-10	 	 	 	2013	 	 	Dec-11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D10R-10	 	Caterpillar	 	 	D-10	 	 	 	2014	 	 	Nov-14	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11R-06	 	Caterpillar	 	 	D-11	 	 	 	2011	 	 	Jun-11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11R-07	 	Caterpillar	 	 	D-11	 	 	 	2012	 	 	Mar-12	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11R-08	 	Caterpillar	 	 	D-11	 	 	 	2012	 	 	Mar-12	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11R-09	 	Caterpillar	 	 	D-11	 	 	 	2013	 	 	Oct-13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 
	 	D11R-10	 	Caterpillar	 	 	D-11	 	 	 	2014	 	 	Sep-14	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 	 	 	[***]	 
	 

			
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 29 of 41

 

 

RATE SCHEDULE “J”

ESTIMATED FUEL AND ELECTRICAL CONSUMPTION

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Year	 	Litres of Fuel	 	BCM	 	L / BCM
	1
	 	 	7,801,142	 	 	 	[***]	 	 	 	[***]	 
	2
	 	 	22,695,302	 	 	 	[***]	 	 	 	[***]	 
	3
	 	 	29,824,323	 	 	 	[***]	 	 	 	[***]	 
	4
	 	 	37,643,848	 	 	 	[***]	 	 	 	[***]	 
	5
	 	 	47,490,422	 	 	 	[***]	 	 	 	[***]	 
	6
	 	 	43,904,393	 	 	 	[***]	 	 	 	[***]	 
	7
	 	 	47,232,671	 	 	 	[***]	 	 	 	[***]	 
	8
	 	 	50,327,194	 	 	 	[***]	 	 	 	[***]	 
	9
	 	 	45,094,515	 	 	 	[***]	 	 	 	[***]	 
	10
	 	 	43,884,464	 	 	 	[***]	 	 	 	[***]	 
	11
	 	 	23,612,606	 	 	 	[***]	 	 	 	[***]	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract Year	 	Electrical Consumption	 	BCM	 	kwhr / BCM
	1
	 	 	1,166,667	 	 	 	[***]	 	 	 	[***]	 
	2
	 	 	3,500,000	 	 	 	[***]	 	 	 	[***]	 
	3
	 	 	3,500,000	 	 	 	[***]	 	 	 	[***]	 
	4
	 	 	9,800,000	 	 	 	[***]	 	 	 	[***]	 
	5
	 	 	16,100,000	 	 	 	[***]	 	 	 	[***]	 
	6
	 	 	16,100,000	 	 	 	[***]	 	 	 	[***]	 
	7
	 	 	16,100,000	 	 	 	[***]	 	 	 	[***]	 
	8
	 	 	16,100,000	 	 	 	[***]	 	 	 	[***]	 
	9
	 	 	16,100,000	 	 	 	[***]	 	 	 	[***]	 
	10
	 	 	16,100,000	 	 	 	[***]	 	 	 	[***]	 
	11
	 	 	8,050,000	 	 	 	[***]	 	 	 	[***]	 

	 		
	Canadian Natural Resources Limited
	 	Section“D” — Compensation
	Contract Number: 400472
	 	Page 30 of 41

 

 

Rate Schedule “K”

Cancellation

Schedule

	 	 	 	 	 	 	 	 	 	 
	From	 	To	 	Cost
	01-
	Nov-04	 	30-Nov-04	 	$	[***]	 
	01-
	Dec-04	 	31-Dec-04	 	$	[***]	 
	01-
	Jan-05	 	31-Jan-05	 	$	[***]	 
	01-
	Feb-05	 	28-Feb-05	 	$	[***]	 
	01-
	Mar-05	 	31-Mar-05	 	$	[***]	 
	01-
	Apr-05	 	30-Apr-05	 	$	[***]	 
	01-
	May-05	 	31-May-05	 	$	[***]	 
	01-
	Jun-05	 	  30-Jun-05	 	$	[***]	 

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 31 of 41

 

 

Rate Schedule “L”

Estimated Pitrun to be Removed from Owner’s NE Gravel Pit

	 	 	 	 	 	 	 	 
	 	 	 	Estimated	 
	Contract Year	 	 	Quantity	 
	1
	 	 	[***]	 	BCM
	2
	 	 	[***]	 	BCM
	3
	 	 	[***]	 	BCM
	4
	 	 	[***]	 	BCM
	5
	 	 	[***]	 	BCM
	6
	 	 	[***]	 	BCM
	7
	 	 	[***]	 	BCM
	8
	 	 	[***]	 	BCM
	9
	 	 	[***]	 	BCM
	10
	 	 	[***]	 	BCM
	11
	 	 	[***]	 	BCM

Notes: [***] per BCM has been included in the BCM Rates

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 32 of 41

 

 

     Rate
Schedule “M”

 General Liability Insurance Cost Included in Schedule “D” Prices

	 	 	 	 	 
	Contract Year	 	 	 	 
	1
	 	$	[***]	 
	2
	 	$	[***]	 
	3
	 	$	[***]	 
	4
	 	$	[***]	 
	5
	 	$	[***]	 
	6
	 	$	[***]	 
	7
	 	$	[***]	 
	8
	 	$	[***]	 
	9
	 	$	[***]	 
	10
	 	$	[***]	 
	11
	 	$	[***]	 
	TOTAL
	 	$	[***]	 

Note: Based upon commercial general liability insurance coverage of $[***] million as further set
forth in Article 14.0 of Section “B” — TERMS AND CONDITIONS.

			
	 	 	 
	Canadian Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 33 of 41

 

 

RATE SCHEDULE “N”

FILTER AND BLANKET DRAINS UNIT RATES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Overall	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	TOTAL	 	TOTAL	 	 	 	 	 	 	 	 	 	Estimated	 	 
	 	 	1000 m^3	 	1000 m^3	 	1000 m^3	 	Unit Rate	 	Unit Rate	 	Total	 	Estimated Total
	Year	 	Sand	 	Coke	 	Combined	 	Sand	 	Coke	 	Sand	 	Coke
	Q1 2006	 	 	—	 	 	 	—	 	 	 	—	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q2 2006	 	 	—	 	 	 	—	 	 	 	—	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q3 2006	 	 	165,000	 	 	 	—	 	 	 	165,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q4 2006	 	 	154,000	 	 	 	—	 	 	 	154,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q1 2007	 	 	55,000	 	 	 	—	 	 	 	51,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q2 2007	 	 	56,000	 	 	 	—	 	 	 	56,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q3 2007	 	 	—	 	 	 	—	 	 	 	—	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q4 2007	 	 	124,000	 	 	 	—	 	 	 	124,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q1 2008	 	 	131,000	 	 	 	—	 	 	 	131,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q2 2008	 	 	138,000	 	 	 	—	 	 	 	138,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q3 2008	 	 	—	 	 	 	—	 	 	 	—	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q4 2008	 	 	—	 	 	 	—	 	 	 	—	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q1 2009	 	 	—	 	 	 	144,000	 	 	 	144,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q2 2009	 	 	—	 	 	 	147,000	 	 	 	147,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q3 2009	 	 	—	 	 	 	149,000	 	 	 	149,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q4 2009	 	 	—	 	 	 	230,000	 	 	 	230,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q1 2010	 	 	—	 	 	 	58,000	 	 	 	58,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q2 2010	 	 	—	 	 	 	180,000	 	 	 	180,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q3 2010	 	 	—	 	 	 	254,000	 	 	 	254,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q4 2010	 	 	—	 	 	 	232,000	 	 	 	232,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q1 2011	 	 	—	 	 	 	173,000	 	 	 	173,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q2 2011	 	 	—	 	 	 	344,000	 	 	 	344,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q3 2011	 	 	1,378,000	 	 	 	923,000	 	 	 	2,301,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q4 2011	 	 	—	 	 	 	920,000	 	 	 	920,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q1 2012	 	 	520,000	 	 	 	834,000	 	 	 	1,354,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q2 2012	 	 	730,000	 	 	 	733,000	 	 	 	1,463,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q3 2012	 	 	—	 	 	 	388,000	 	 	 	388,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	Q4 2012	 	 	—	 	 	 	402,000	 	 	 	402,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	2013	 	 	—	 	 	 	836,000	 	 	 	836,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 
	TOTAL
	 	 	3,451,000	 	 	 	6,947,000	 	 	 	10,398,000	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 	 	$	[***]	 

	 	 	 
	Sand Pricing
	 	 
	Basis:

	 	Pricing is based on BCM measured out of bank.
	 
	 	 
	 

	 	No costs have been included for processing the sand to meet the specifications.
	 
	 	 
	 

	 	No costs have been included for removal of any unsuitable material including
stripping the sand borrow area.
	 
	 	 
	 

	 	Pricing is based on a 10 km haul distance.
	 
	 	 
	 

	 	Overhaul and Underhaul at $[***] per m3 * km until 2010
	 
	 	 
	 

	 	Overhaul and Underhaul at $[***] per m3 * km during and beyond 2010
	 
	 	 
	 

	 	Unit rates are subject to adjustments for distance and escalation or de-escalation.
The adjustments for distance and escalation or de-escalation shall be calculated using
methods similar to those used for BCM Rate adjustments.
	 
	 	 
	Coke Pricing
	 	 
	Basis:

	 	Pricing is based on placed BCM measured in place.
	 
	 	 
	 

	 	Pricing is based on a 3 km haul distance.
	 
	 	 
	 

	 	Overhaul and Underhaul at $[***] per m3 * km
	 
	 	 
	 

	 	Unit rates are subject to adjustments for distance and escalation or de-escalation.
The adjustments for distance and
escalation or de-escalation shall be calculated using methods similar to those used
for BCM Rate adjustments.

			
	 Canadian
Natural Resources Limited 

Contract Number: 400472
	 	Section “D” — Compensation

Page 34 of 41

 

 

RATE SCHEDULE “O”

Exceptions for Muskeg/Mineral Soils Removal

	1.0	 	Contractor has included in its prices removal of 160,000 bank cubic metres (BCM) of
muskeg/mineral soils from the tailings line corridor between the Southwest Pit and Waste
Area 1 Should the Contractor be requested to remove more than 160,000 BCM from this area,
a Change Order will be issued. This Change Order shall be priced in accordance with
Article 2, below, and shall exclude additional quantities of muskeg/mineral soils removed
from within this tailings line corridor that have been compensated for by Overburden
volumes moved by the Contractor in excess of those set forth in Schedule “1”
Estimated Overburden Volumes By Year included in Section 

“C” — SCOPE OF WORK.
	 
	2.0	 	Contractor has included in its prices removal of 748,000 BCM of muskeg/mineral soils
from within the Dyke 10 foundation. Should the Contractor be requested to remove more
than 748,000 BCM from this area, a Change Order will be issued. This Change Order shall
be priced in accordance with the rates set forth below and shall exclude additional
quantities of muskeg/mineral soils removed from within the Dyke 10 foundation that have
been compensated for by Overburden volumes moved by the Contractor in excess of those set
forth in Schedule “1” Estimated Overburden Volumes By Year included in Section
“C” — SCOPE OF WORK.
	 
	 	 	[***] per BCM based on a 2 Kilometre haul distance
	 
	 	 	[***] per BCM for underhaul (1 kilometre minimum haul distance)
	 
	 	 	[***] per BCM for overhaul
	 
	 	 	[***] per cubic metre premium for placement on areas to be reclaimed.

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 35 of 41

 

 

APPENDIX “I” — NET BOOK VALUE FORMULA

ARTICLE 1

	 	1.1	 	The Contractor shall determine its turnkey acquisition cost (“Acquisition
Cost”) of the Facility, cable shovels, hydraulic shovels, EH5000 haul trucks, 24H
graders, D11R dozers and the support equipment listed in Article 1.6.1.4 of this
Section “D” — COMPENSATION, at the time that such item is operational or mobilized
on the CNRL Site. The Acquisition Costs, Including any rebates, discounts and
similar cost reductions received by Contractor shall be as follows:

	 	1.1.1	 	With respect to the Facility, the total of the Contractor’s
costs to complete the Facility upon completion of Construction;
	 
	 	1.1.2	 	With respect to the Facility, when agreed to in advance by the
Owner, the total of the Contractor’s costs to complete any major expansions;
and
	 
	 	1.1.3	 	With respect to the cable shovels, hydraulic shovels, EH5000
haul trucks, 24H graders, D11R dozers and support equipment, the Contractor’s
total purchase price for each item.

	 	1.2	 	The Contractor shall provide the Owner with the Acquisition Cost of the
Facility or an item of Equipment, Replacement Equipment or support equipment, as
the case may be, together with all supporting documentation relating thereto,
within thirty (30) calendar days of completion of the Facility or mobilization of
the item of Equipment, Replacement Equipment or support equipment. The Owner shall
have the right to audit and verify such Acquisition Cost upon its receipt thereof.
	 
	 	1.3	 	In the event the Owner elects to exercise its option to purchase the
Facility at the end of the full term of the Contract, the amount payable by the
Owner for the Facility shall be determined in accordance with the terms of Article
3.1 of this Appendix “I”. In the event the Owner elects to exercise its option to
purchase the cable shovels and/or the EH5000 haul trucks at the end of the full
term of the Contract, the amount payable by the Owner for these items shall be
determined In accordance with the terms of Article 3.2 of this Appendix “I”.
	 
	 	1.4	 	In the event the Owner elects not to exercise its option to purchase the
Facility, cable shovels or EH5000 haul trucks at the end of the full term of the
Contract, it shall notify the Contractor of same within a reasonable period of
time.
	 
	 	1.5	 	In the event of a full Termination for Convenience, as more fully set forth
in Article 25.5 of Section “B” — TERMS AND CONDITIONS, the amount payable by the
Owner for the Facility shall be determined in accordance with the terms of Article
3.1 of this Appendix “I”, and the amount payable by the Owner for the cable
shovels, hydraulic shovels, EH5000 haul trucks, 24H graders and D11R dozers shall
be determined in accordance with the terms of Article 3.2 of this Appendix “I”.
	 
	 	1.6	 	In the event of a partial Termination for Convenience, as more fully set
forth in Article 25.4 of Section “B” — TERMS AND CONDITIONS, the amount payable by
Owner for items of cable shovels, hydraulic shovels, EH5000 haul trucks, 24H
graders and D11R dozers no longer required for the Work shall be
determined in accordance with the terms of Article 3.2 of this Appendix “I”.

ARTICLE 2

	 	2.1	 	The life of the Facility is [***] ([***]) years. The life of any major
expansion to the Facility is also [***] ([***]) years.
	 
	 	2.2	 	The lives of certain items of Equipment and Replacement Equipment are as follows:

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” — Compensation
	Contract Number: 400472
	 	Page 36 of 41

 

 

	 	 	 
	Item	 	Life in Years
	Cable shovels
	 	[***]
	Hydraulic shovels
	 	[***]
	EH5000 haul trucks
	 	[***]
	24H graders
	 	[***]
	D11R dozers
	 	[***]

ARTICLE 3

	 	3.1	 	In the event the Owner exercises its option at the end of the full term of the Contract
to purchase the Facility, or In the event of a full Termination for Convenience whereby the
Owner Is required to purchase the Facility, the amount payable by the Owner to the
Contractor to purchase the Facility is based on the Net Book Value Formula and shall be
calculated by deducting the accumulated depreciation from the Acquisition Cost of such item,
all as follows:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	P
	 	=
	 	A – (A x X)
	 

	 	 	 	 	 	 	 	Y   12

	 
	 	 	 	 	 	 	 	 
	 

	 	Where
	 	P
	 	=
	 	is the amount payable by the Owner for the Facility,
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	A
	 	=
	 	is the Acquisition Cost of the Facility;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Y
	 	=
	 	is the life of the Facility in years; and
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	X
	 	=
	 	is the number of completed months expired between the Overburden
Removal Commencement Date and the date of acquisition by the Owner of the
Facility.

	 	3.2	 	In the event the Owner exercises Its option at the end of the full term of the Contract
to purchase specific items of cable shovels and/or EH5000 haul trucks, in the event of a
partial Termination for Convenience where items are being purchased in accordance with
Article 1.6 of this Appendix “I”, or in the event of a full Termination for Convenience
whereby the Owner is required to purchase the cable shovels, hydraulic shovels, EH5000 haul
trucks, 24H graders and D11R dozers, the amount payable by the Owner to the Contractor for
each item of Equipment or Replacement Equipment being purchased shall be calculated by
multiplying the Acquisition Cost of such item by the applicable factor set forth in the
following table:

	 	 	 	 	 	 	 	 	 	 	 
	Number of Months of Use	 	D11R Dozer	 	24H Grader	 	EH5000 Haul Truck	 	Hydraulic Shovel	 	Cable Shovel
	12
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	24
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	36
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	48
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	60
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	72
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	84
	 	 	 	[***]
	 	[***]
	 	[***]
	 	[***]
	96
	 	 	 	[***]
	 	[***]
	 	[***]
	 	[***]
	108
	 	 	 	 	 	[***]
	 	[***]
	 	[***]
	120
	 	 	 	 	 	[***]
	 	[***]
	 	[***]
	132
	 	 	 	 	 	 	 	 	 	[***]
	144
	 	 	 	 	 	 	 	 	 	[***]
	156
	 	 	 	 	 	 	 	 	 	[***]
	168
	 	 	 	 	 	 	 	 	 	[***]

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” —
Compensation
	Contract Number: 400472
	 	Page 37 of 41

 

 

ARTICLE 4

	 	4.1	 	Sample Calculation for Net Book Value (NBV) Formula:
	 
	 	 	 	Assume:

	 	(a)	 	The Acquisition Cost of the Facility upon completion of Construction is $[***];
	 
	 	(b)	 	The life of the Facility is [***] years;
	 
	 	(c)	 	The Overburden Removal Commencement Date is July 1, 2005; and
	 
	 	(d)	 	The date at which the NBV is to be calculated is June 30, 2015.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	NBV of the Facility	 	=	 	$[***] —
($[***] x
120)
                   [***]      12
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	=	 	$[***]

The amount payable to the Contractor by the Owner to purchase the Facility would be
$[***].

	 	4.2	 	Second Sample Calculation for Net Book Value (NBV) Formula:

	 
	 	 	 	Assume:

	 	(a)	 	The Acquisition Cost of the Facility upon completion of Construction is $[***];
	 
	 	(b)	 	The Acquisition Cost of an Owner pre-approved major expansion to the Facility,
completed at the end of June 2009, is $[***]
	 
	 	(b)	 	The life of the Facility is [***] years;
	 
	 	(c)	 	The life of the major expansion to the Facility is [***] years;
	 
	 	(c)	 	The Overburden Removal Commencement Date is July 1, 2005; and
	 
	 	(e)	 	The date at which the NBV is to be calculated is June 30, 2015.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	NBV of the Facility	 	=	 	$[***] – ($[***] x 120)
                   [***]    12
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	=	 	$[***]

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	NBV of the Facility expansion	 	=	 	$[***] – ($[***] x 72)
                   [***]   12
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	=	 	$[***]

The amount payable to the Contractor by the Owner to purchase the Facility would be $[***]
which is the sum of the Net Book Value of the Facility ($[***]) and the Net Book Value of
the Owner pre-approved major expansion ($[***]).

	 	4.3	 	Sample Calculation for Purchase of Specific Items of Equipment and/or Replacement
Equipment in Accordance with Article 3.2 of this Appendix “I”:
	 
	 	 	 	Assume:

	 	(a)	 	The Acquisition Cost of a certain EH5000 haul truck is $[***];
	 
	 	(b)	 	The data the EH5000 haul truck was operational on the CNRL Site was July 1,
2005; and
	 
	 	(c)	 	The date when the Owner will purchase the haul truck is June 30, 2008.

Amount payable by Owner = $[***] * [***]%

= $[***]

The amount payable by Owner to Contractor to purchase that EH5000 haul truck would
be $[***].

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” —
Compensation
	Contract Number: 400472
	 	Page 38 of 41

 

 

APPENDIX “II” — UNDERHAUL/OVERHAUL SAMPLE CALCULATION

Formula for Adjustment

When the average actual haul distance for a Contract Year is less than the Average Haul Distance,
the BCM Rate for that Contract Year shall be adjusted as follows:

1/ distance adjustment = (actual average haul distance — Average Haul Distance)

2/ BCM Rate adjustment = (distance adjustment * Underhaul Rate)

3/ BCM Rate adjusted for distance = (BCM Rate + BCM Rate adjustment)

Likewise, when the average actual haul distance for a Contract Year is more than the Average Haul
Distance, the BCM Rate shall be adjusted using the applicable Overhaul Rate and the same sequence
of calculations.

The actual average haul distance shall be calculated using the shortest horizontal distances,
measured centroid to centroid, along haulroads that could be used by the Contractor for Overburden
Removal or muskeg/mineral soils removal, as the case may be, during
that Contract Year.

Example:

The average actual haul distance for 2010 (Contract Year 6) is calculated to be [***] kilometres
one way,  using measurements based upon the shortest horizontal distance between centroids, along
haulroads that could be used by the Contractor during that Contract Year.

	•	 	The Average Haul Distance for 2010 set out in Rate Schedule “F” of
Section “D” — COMPENSATION is [***] kilometres one way.
	 
	•	 	The BCM Rate for 2010 set out in Rate Schedule “E” of Section “D” -
COMPENSATION is $[***] per bank cubic metre.
	 
	•	 	The Underhaul Rate for 2010 set out in Rate Schedule “G” of Section
“D” — COMPENSATION is $[***] per bank cubic mete per kilometre.

	 	1)	 	distance adjustment = ([***] km — [***] km) = [***] km (rounded to two decimal places)
	 
	 	2)	 	BCM Rate adjustment = ([***] km * $[***]/BCM-km) = $[***]/BCM (rounded to two decimal
places)
	 
	 	3)	 	BCM Rate adjusted for distance = ($[***]/BCM — $[***]/BCM) = $[***]/BCM (rounded to two
decimal places)

Therefore,
the BCM Rate for 2010, following adjustment for haul distance, would
be $[***] per bank
cubic metre. This rate would then be subject to escalation.

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” —
Compensation
	Contract Number: 400472
	 	Page 39 of 41

 

 

APPENDIX “III” — ESCALATION FACTOR ADJUSTMENT, SAMPLE CALCULATION

Example:
Adjustment to BCM Rates for Escalation or De-Escalation

BCM Rates shall be adjusted for escalation or de-escalation as follows:

BCe = BC *
([***] * WR + [***] * CPla)

                                                          CPlb

Where:

BCe = the BCM Rate adjusted for escalation or de-escalation;

BC = the BCM Rate for the period in
question;

WR = the arithmetic average of the change, for the period in question, of the base wage rate at
each of the Syncrude, Suncor and Albian open pit oil sand mines in the Fort McMurray area, relative
to the base period of January to December, 2004 inclusive;

CPla = the arithmetic average of the January to December inclusive, first published indices for the
Statistics Canada Consumer Price Index, Major Components, Selected Sub-groups and Special
Aggregates (Not Seasonally Adjusted), Alberta, all items excluding energy, for the period in
question; and

CPlb = the arithmetic average of the first published Indices for the Statistics Canada Consumer
Price Index, Major Components, Selected Sub-groups and Special Aggregates (Not Seasonally
Adjusted), Alberta, all items excluding energy, for the base period of January to December 2004
Inclusive;

Assume:

	 	(a)	 	The Contract Year in question is 2010 (Contract Year 6);
	 
	 	(b)	 	The BCM Rate for 2010 set out in Rate Schedule “E”
of Section “D” —
COMPENSATION is $[***] per bank cubic metre;
	 
	 	(c)	 	The BCM Rate for 2010 adjusted for haul distance is $[***]/BCM;
	 
	 	(d)	 	By 2010 the change in base wage rate at the Syncrude open pit mine, relative to
the base period of January to December 2004 inclusive, is [***]. Likewise the
corresponding change at Suncor and Albian is [***] and [***] respectively;
	 
	 	(e)	 	CPlb is equal to [***] and
	 
	 	(f)	 	First published indices for the Statistics Canada Consumer Price Index, Major
Components, Selected Sub-groups and Special Aggregates (Not Seasonally Adjusted),
Alberta, all items excluding energy CPla Indices for January to December 2010
inclusively are; [***], [***], [***], [***], [***], [***], [***], [***], [***], [***],
[***], [***].

	 	 	 	 	 
	WR

	 	=
	 	([***] + [***] + [***]/3 = [***] (rounded to three decimal places)

CPla = ([***] + [***] + [***] + [***] + [***] + [***] + [***] + [***] + [***] + [***] + [***] +
[***])/12
	 

	 	=
	 	[***] (rounded to two decimal places)
	 
	 	 	 	 
	BCM Rate adjusted = $[***] * ([***] * [***] + [***] * [***]/[***])
	 
	 	 	 	 
	 

	 	=
	 	$[***] (rounded to two decimal places)

Therefore the BCM Rate, after adjustment for haul distance and escalation, to be applied for the
2010 Contract Period Is $[***] per bank cubic metre moved.

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” —
Compensation
	Contract Number: 400472
	 	Page 40 of 41

 

 

APPENDIX “IV” — EXAMPLE OF DEPRECIATION COMPONENT OF REPLACEMENT EQUIPMENT

SAMPLE CALCULATION

Example: Determination of the depreciation component of Replacement Equipment charges for a
particular year.
The depreciation competent of Replacement Equipment charges for a particular year is determined by
the following:

DCe = DC * (Pa/Pb) * (FXa/FXb)

where:

DCe = the
depreciation component of Replacement Equipment Charges (REC) for a particular year of
additions to Replacement Equipment adjusted for escalation or de-escalation;

DC = the
depreciation Component of Replacement Equipment Charges for a particular year of additions
to Replacement Equipment as set out in rate Schedules “Ct” to “Cix” inclusive:

Pa = the arithmetic average of the January to December inclusive, that published Indices for the
US Department of Labor Producer Price index for construction machinery manufacturing, 

Series ID: pcu333120333120, for the particular year of additions to R

Pb = the US Department of Labor producer Price Index for construction machinery manufacturing,

Series ID: pcu333120333120, for the base period which shall
equal [***];

FXa = the weighted (by number of days in affect) average Canadian foreign exchange rate (US$CDN$)
for the particular year of additions to Replacement Equipment; and

Fxb = the Canadian foreign exchange rate (US$/CDN$) for the base Period which shall equal [***]

Assume:

(a) The Contract Year in question is 2007 (Contract Year 3);

(b) For Contract Year 2:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract	 	 	 	Pa	 	 	 	Fxa	 	 	 	 
	Year	 	DC from Rate Schedule “CI”	 	(assumed)	 	Pb	 	(assumed)	 	Fxb	 	Calculated DCe
	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	$[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	$[***]
	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	$[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	$[***]

(c) For Contract Year 3:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Contract	 	 	 	Pa	 	 	 	Fxa	 	 	 	 
	Year	 	DC from Rate Schedule “Cil”	 	(assumed)	 	Pb	 	(assumed)	 	Fxb	 	Calculated DCe
	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	$[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	$[***]

For Contract Year 3, the resulting REC would be:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	REC
	“CI” Year 3	 	+	 	“Cil” Year 3	 	=	 	(adjusted)
	 	 	 	 	 	 	 	 	 
	$[***]
	 	+
	 	$[***]
	 	=
	 	$[***]

In summary, given the previous assumptions, the Replacement Equipment Charge for Contract Year 3
adjusted for escalation or de-esclation is $[***] (in comparison, the unadjusted Replacement
Equipment Charge for Contract Year 3 is $[***]).

			
	 	 	 
	Canadian Natural Resources Limited
	 	Section “D” —
Compensation
	Contract Number: 400472
	 	Page 41 of 41

 

 

OVERBURDEN REMOVAL AND

MINING SERVICES CONTRACT

SECTION “E” – ATTACHMENTS

 

 

SPECIFICATION 100

CONSTRUCTION

	1.0	 	GENERAL

	 	1.1	 	Definition
	 
	 	 	 	Construction includes the design, procurement, site preparation, construction and
commissioning of the Facility and the Contractor’s Facility Site.
	 
	 	1.2	 	Work Included
	 
	 	 	 	Work in this section consists of the following:

	 	•	 	Design of the Facility including engineering or other investigations and
analyses required for design and construction of the Facility and Contractor’s
Facility Site;
	 
	 	•	 	Obtaining all licenses, permits and approvals required for the Facility and
Contractor’s Facility Site with the exception of those identified in Article
3.2 of Section “C” – SCOPE OF WORK;
	 
	 	•	 	Procurement for Construction;
	 
	 	•	 	Mobilization to the Contractor’s Facility Site of all personnel, equipment,
vehicles, tools, materials, supplies and any other items required for
Construction;
	 
	 	•	 	Site preparation required to prepare for the construction of the Facility
and to ready the Contractor’s Facility Site for the Work;
	 
	 	•	 	Construction of the Facility and the Contractor’s Facility Site and all
management services for the Construction including but not limited to first
aid and security;
	 
	 	•	 	Provision of all utilities and services required by the Contractor for
Construction, with the exception of those identified in Article 1.4 hereof;
	 
	 	•	 	Surveying and record keeping for the as-built Facility, Contractor’s
Facility Site and connections to services; and
	 
	 	•	 	Demobilization of all equipment, unused materials, personnel, supplies,
tools and support facilities upon completion of Construction.

	 	1.3	 	Work Not Included
	 
	 	 	 	The following items associated with work in this section do not form part of the
Specification:

	 	•	 	Obtaining those licenses, permits and approvals identified in Article
3.2 of Section “C” – SCOPE OF WORK.

	 	1.4	 	Supplied by the Owner

	 	•	 	A partially prepared area for the Contractor’s Facility Site as
further described in Article 2.2 hereof;
	 
	 	•	 	Supply of electricity at a voltage of 34.5KV, using an overhead powerline
to a position at the edge of the Contractor’s Facility Site as illustrated in
the Overall Utility Plan included in the Drawings;
	 
	 	•	 	A connection to the Owner’s fibre optics system for telecommunications, a
source of potable water, a source of fire water, and a connection to the
Owner’s sewage disposal system, each to a position at the edge of the
Contractor’s Facility Site as illustrated in the Overall Utility Plan
included in the Drawings;
	 
	 	•	 	Supply of natural gas, using a pipeline, to a position at the edge of the
Contractor’s Facility Site, as illustrated in the Overall Utility Plan
included in the Drawings;
	 
	 	•	 	An access road to the edge of the Contractor’s Facility Site; and

			
	 	 	 
	Canadian Natural Resources Limited
	 	Specification 100-Construction
	Contract Number: 400472
	 	Page 1 of 3

 

 

	 	•	 	Accommodation on the CNRL Site for Construction personnel, in
accordance with Article 1.8 of Section “D” – COMPENSATION.

	 	1.5	 	Terminology
	 
	 	 	 	Not used.
	 
	 	1.6	 	Measurement
	 
	 	 	 	Not used.
	 
	 	1.7	 	Submittals
	 
	 	 	 	The Contractor shall submit the following to the Owner in a form satisfactory to
and approved in advance by the Owner;

	 	•	 	final Construction plans and drawings prior to commencement of
Construction;
	 
	 	•	 	bar chart schedule showing the planned start and end date for Construction,
the planned manpower required by time interval for each activity and the
percentage of schedule completion by planned time interval;
	 
	 	•	 	room and board requirements at the Owner’s site accommodation, for each
week during the Construction period;
	 
	 	•	 	detailed schedule weekly, of day-to-day operations showing planned manpower
loading for major activities;
	 
	 	•	 	major construction equipment correlated to the Work schedule;
	 
	 	•	 	weekly written report on Construction activities and planned versus actual
progress; and
	 
	 	•	 	as-built drawings for the Facility and the Contractor’s Facility Site,
including but not limited to connections to services.

	2.0	 	PERFORMANCE

	 	2.1	 	Preparation
	 
	 	 	 	Not used.
	 
	 	2.2	 	Execution
	 
	 	 	 	The Contractor shall commence the Construction on or before the Construction
Commencement Date. The Contractor shall not commence the Construction on the CNRL
Site without the prior written approval of the Owner.
	 
	 	 	 	All Construction shall be carried out in accordance with Regulations, good industry
practice and Attachment “A” CNRL Health, Safety and Environment Reference
Manual included in Section “E” –ATTACHMENTS.
	 
	 	 	 	The Contractor shall obtain and maintain building and other permits required for
Construction of the Facility and the Contractor’s Facility Site.
	 
	 	 	 	Prior to commencement of Work, the Contractor’s Facility Site will be developed by
the Owner to construction grade (+/- 0.5 meters) and surfaced with 150 millimeters
of unprocessed, pit-run aggregate material. The Owner will generally
grade the area to promote site drainage. The Contractor shall perform all further
site preparation required to prepare for the construction of the Facility and to
ready the Contractor’s Facility Site for the Work, including but not limited to
Dewatering, excavation, disposal of surplus material, borrowing of suitable
material, compaction, grading, road work and construction of parking and lay-down
facilities. Dewatering shall be performed in accordance with Specification 400 –
Contractor’s Dewatering, included in Section “E” — ATTACHMENTS. The Oil Sands
Conservation Act and Regulation 76/88 require site development to not be done in a
“wasteful” manner and the Contractor shall comply with those statutes.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 100-Construction

Page 2 of 3

 

 

	 	 	 	The Contractor shall be responsible for locating and marking any existing
utility structures or other man-made items prior to commencing the site
preparation, and shall protect them from damage during construction. The
Contractor shall repair or replace, at no expense to the Owner, any existing
utility structure or man-made item which is damaged during construction of the
Facility and Contractor’s Facility Site.
	 
	 	 	 	The Contractor shall be responsible for all surveying to ensure that the Work is
laid out as shown on the drawings. The Owner shall have the right to check and
confirm any layout performed by the Contractor.
	 
	 	 	 	The Contractor shall meet on a weekly or as required basis with the Owner to review
progress on the Construction.
	 
	 	 	 	The Contractor shall coordinate on a daily or as required basis with the Owner to
ensure activities are coordinated with the Owner and Third Parties on the CNRL
Site.
	 
	 	 	 	The Contractor shall at all times keep its Work sites in a clean, orderly, safe and
secure condition.
	 
	 	 	 	The Contractor shall limit its employees and its Subcontractors’ employees from
entering the CNRL Site, other than for access to the Contractor’s Facility Site or
on an as-needed basis.
	 
	 	 	 	The Contractor shall remove from the CNRL Site and properly dispose of all debris
and rubbish created by the Contractor or its Subcontractors during the
Construction.
	 
	 	2.3	 	Quality Control
	 
	 	 	 	The Facility and Contractor’s Facility Site shall be constructed to a standard
deemed acceptable to the Owner and in compliance with Regulations and Attachment
“A” CNRL Health, Safety and Environment Reference Manual included in
Section “E” – ATTACHMENTS.
	 
	 	 	 	All materials and equipment supplied by the Contractor shall be in good
working condition. Any costs incurred due to faulty/defective equipment and/or
materials supplied by the Contractor or Sub-Contractors shall be to the
Contractor’s account. Any equipment and/or material found to be defective in any
way or unsafe, shall be removed from the site.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 100-Construction

Page 3 of 3

 

 

SPECIFICATION 200

MUSKEG AND MINERAL SOILS REMOVAL

	1.0	 	GENERAL

	 	1.1	 	Definition
	 
	 	 	 	Muskeg and mineral soils removal shall mean excavation of reclamation materials
overlying the Overburden and dozing, or loading and hauling and placement of such
materials into stockpiles for storage or onto areas to be reclaimed.
	 
	 	1.2	 	Work Included
	 
	 	 	 	Work in this section consists of the following:

	 	•	 	Salvaging, hauling and direct placing reclamation materials to uniform
thickness upon designated reclamation areas;
	 
	 	•	 	Salvaging and hauling reclamation materials to stockpile areas for storage;
	 
	 	•	 	Loading reclamation materials from stockpiles and hauling and placing to
uniform thickness on designated reclamation areas;
	 
	 	•	 	Dozing of reclamation materials into stockpiles or to a uniform thickness
on areas to be reclaimed;
	 
	 	•	 	Relocation of temporary stockpiles of reclamation materials as required;
	 
	 	•	 	Construction and decommissioning of haulroads as required to perform muskeg
and mineral soils removal;
	 
	 	•	 	Dewatering muskeg and mineral soil removal areas in accordance with
Specification 400 – Contractor’s Dewatering, included in Section “E” –
ATTACHMENTS; and
	 
	 	•	 	With the exception of those required to be obtained by the Owner pursuant
to Article 3.2 of Section “C” – SCOPE OF WORK, obtaining, any and all
licenses, permits and approvals required for performing the Work included in
this Specification.

	 	1.3	 	Work Not Included
	 
	 	 	 	The following items associated with work in this section do not form part of the
Specification:

	 	•	 	Harvesting recoverable timber;
	 
	 	•	 	Clearing and grubbing non-recoverable timber and brush;
	 
	 	•	 	Controlling weeds on salvaged areas;
	 
	 	•	 	Controlling weeds, seeding, fertilizing and tree planting on reclaimed
areas; and
	 
	 	•	 	Soil and vegetation monitoring of reclaimed areas.

	 	1.4	 	Supplied by Owner
	 
	 	 	 	Not used.
	 
	 	1.5	 	Terminology
	 
	 	 	 	Muskeg shall mean organic material (including peat, moss, surface vegetation and
roots) overlying the mineral soils.
	 
	 	 	 	Mineral soils shall mean a soil consisting predominantly of mineral matter, that
lies directly below the muskeg and that is included in the muskeg over-dig zone.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 200-Muskeg and Mineral Soils Removal

Page 1 of 3

 

 

	 	 	 	Reclamation materials shall mean the mixture of muskeg and mineral soils
created during excavation of muskeg.
	 
	 	 	 	Grubbing shall mean the removal of stumps and roots left after clearing of
non-recoverable timber and brush.
	 
	 	1.6	 	Measurement
	 
	 	 	 	Prior to the muskeg and mineral soils removal commencement date, the Owner shall
determine the original ground base datum. The Contractor shall be entitled to
conduct a survey of the original ground for the purpose of volume computations. In
the event that the Contractor elects not to perform the said survey it shall be
deemed to have accepted the Owner’s original ground base survey.
	 
	 	 	 	Measurement for muskeg and mineral soils salvaged shall be in bank cubic metres as
determined from Reconciliation Surveys.
	 
	 	 	 	Measurement for placement of reclamation materials shall be in cubic metres for
volume, centimeters for depth and hectares for area, as determined from field
surveys using a fifteen (15) metre grid interval.
	 
	 	 	 	Measurement for reclamation materials removed from stockpiles shall be in cubic
metres as determined from Reconciliation Surveys of the stockpiles. The Contractor
shall only be compensated for reclamation materials removed from stockpiles when
this activity is part of an approved SWA. All quantities removed from stockpiles
shall be included in volume, production and productivity reports.
	 
	 	1.7	 	Submittals
	 
	 	 	 	Not used.

	2.0	 	PERFORMANCE

	 	2.1	 	Preparation
	 
	 	 	 	Not used.
	 
	 	2.2	 	Execution
	 
	 	 	 	Salvage muskeg and mineral soils in areas identified in the SWA Execution Plans.
	 
	 	 	 	Muskeg must be salvaged where thickness of this material exceeds twenty (20)
centimetres. The muskeg may include an over-dig zone of mineral soils down to a
firm trafficable surface, to facilitate recovery and load-out. Over the Term of
the Contract the volume of mineral soils included with recovery of the muskeg shall
not exceed forty (40) percent of the total recovered volume of reclamation
materials.
	 
	 	 	 	Muskeg and mineral soils removal shall be scheduled so as to prevent delay to
Overburden Removal.
	 
	 	 	 	The Contractor shall provide sufficient notice to Owner prior to commencing muskeg
and minerals soil removal, or placement of reclamation materials, to enable the
Owner to inspect the work areas and approve the methodology.
	 
	 	 	 	The Contractor shall only build stockpiles or place reclamation materials at
locations identified in the SWA Execution Plans. Unless otherwise specified,
slopes on reclamation materials stockpiles shall not exceed one (1) vertical to
three (3) horizontal and shall be placed to avoid restricting drainage of the
surrounding area. Stockpiles shall be built to avoid slope or foundation failures
and the dimensions limited accordingly.
	 
	 	 	 	At areas to be reclaimed the Contractor shall use grade stakes placed at fifteen
(15) metre intervals to ensure reclamation materials are replaced in a uniform,
continuous layer twenty (20) centimetres thick, or to the thickness specified in
the SWA Execution Plan. Reclamation materials shall be placed a suitable distance
from the edge of mining access

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 200-Muskeg and Mineral Soils Removal

Page 2 of 3

 

 

	 	 	 	roads and other excavations, to prevent losses due to ground failures.
Regrade the placement surface where differential settlement has occurred to
minimize localized ponding prior to placement of reclamation materials. Additional
Overburden shall be used in these instances rather than an additional thickness of
reclamation materials. Grade reclamation materials to the specified lines and,
unless otherwise directed by the Owner, to prevent ponding of water.
	 
	 	 	 	The Contractor shall construct and maintain all haulroads it requires for muskeg
and mineral soils removal, including without limitation, all temporary stream
crossings. Haulroads shall be constructed, maintained and operated in compliance
with Regulations, and Attachment “B” CNRL Hauling Safety Procedures
included in Section “E” – ATTACHMENTS. The Contractor shall provide a layout of
proposed haulroads to the Owner for approval prior to construction. Roadwork
performed by the Contractor shall not disturb drainage systems (natural or
otherwise). In the event that any drainage systems are disturbed, the Contractor
shall restore them in accordance with Regulations, without cost to the Owner.
	 
	 	 	 	Contractors shall maintain all excavations, roads and other work areas free from
dust, as determined by the Owner. The Owner shall first approve the method of dust
control, before the Contractor implements the same.
	 
	 	 	 	The Contractor shall perform Dewatering required to maintain its muskeg and mineral
soils removal operations in a safe, efficient and environmentally responsible
manner.
	 
	 	2.3	 	Quality Control
	 
	 	 	 	Salvage of muskeg and placement of reclamation materials shall be done in
accordance with Regulations and shall be subject to the approval of the Owner.
	 
	 	 	 	Over the Term of the Contract the volume of mineral soils included with recovery of
the muskeg shall not exceed forty (40) percent of the total recovered volume of
reclamation materials.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 200-Muskeg and Mineral Soils Removal

Page 3 of 3

 

 

SPECIFICATION 300

OVERBURDEN REMOVAL

	1.0	 	GENERAL

	 	1.1	 	Definition
	 
	 	 	 	Overburden Removal shall mean removal of Overburden from the Mine and includes
excavation, loading and hauling of same from the Work Site and disposal of
Overburden in waste dumps or placement in dykes.

	 	1.2	 	Work Included
	 
	 	 	 	Work in this section consists of the following:

	 	•	 	Excavation, loading and hauling of Overburden including rehandle;
	 
	 	•	 	Fragmentation of Overburden as required to facilitate excavation and
placement in Dump Areas;
	 
	 	•	 	Construction of haulroads as required to perform Overburden Removal;
	 
	 	•	 	At the Owner’s request removal of Contractor’s haulroads constructed within
the pit limits, including without limitation those constructed on oil sands;
	 
	 	•	 	Dewatering the Overburden Removal areas in accordance with Specification 400
– Contractor’s Dewatering, included in Section “E” – ATTACHMENTS;
	 
	 	•	 	Construction of dykes and waste dumps in accordance with the Drawings and
Attachments included in Section “E” — ATTACHMENTS, including but not limited to
foundation preparation, placement of suitable Overburden in lifts, compaction
of material in lifts, cleanup of lift surfaces, and contouring outside surfaces
in preparation for placement of reclamation materials;
	 
	 	•	 	Replacement of dyke monitoring instruments damaged by the Contractor; and
	 
	 	•	 	With the exception of those required to be obtained by the Owner pursuant to
Article 3.2 of Section “C” – SCOPE OF WORK, obtaining any and all licenses,
permits and approvals required for performing Overburden Removal.

	 	1.3	 	Work Not Included
	 
	 	 	 	The following items associated with Work in this section do not form part of the
Specification:

	 	•	 	Obtaining those licenses, permits and approvals identified in Article 3.2 of
Section “C” – SCOPE OF WORK;
	 
	 	•	 	Recovery of lenses of oil sands encountered in the Overburden mining face,
unless included in an approved Change Order;
	 
	 	•	 	Recovery of aggregates encountered in the Overburden mining face, unless
included in an approved Change Order;
	 
	 	•	 	Sampling overburden;
	 
	 	•	 	Designing dykes and obtaining permits for dykes;
	 
	 	•	 	Construction of dyke filter and blanket drains and associated collection and
outlet ditches, as illustrated in the Drawings, including without limitation,
loading, hauling and placement of the filter and blanket drain construction
materials;
	 
	 	•	 	Construction of a seepage cut-off trench (“key trench”) beneath the core of
a dyke, as illustrated in Attachment E – Dyke 10 Fill Construction
Specifications included in Section “E” – ATTACHMENTS; and
	 
	 	•	 	Installation of instrumentation in the dykes.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 300-Overburden Removal

Page 1 of 5

 

 

	 	1.4	 	Supplied by Owner
	 
	 	 	 	Not used.
	 
	 	1.5	 	Terminology
	 
	 	 	 	Overburden shall mean that material underlying muskeg and the mineral soils included
in the muskeg over-dig zone, and overlying the economic deposits of oil sands.
Overburden is comprised of materials of Holocene (post glacial) and Pleistocene
(glacial) age, the Clearwater Formation and the top reject (oil sand with a high
content of fines and a low content of bitumen) of the McMurray Formation.
	 
	 	 	 	Dykes shall mean earth structures designed by geotechnical engineers and used to
contain tailings from the processing of oil sands.
	 
	 	 	 	Oil sands shall mean the bitumen bearing sands and associated shales of the McMurray
Formation, underlying the Overburden and typically overlying the Upper Devonian
carbonates (limestone) of the Waterways Formation. Oil sands are considered
economic to recover (mineable ore zones) when consistently greater than three (3)
metres thick and greater than seven (7) percent bitumen by weight.
	 
	 	 	 	Interburden shall mean the separable waste material, usually clay or lean oil sands,
that occurs between mineable ore zones. The minimum mining thickness for separating
waste from ore is typically three (3) metres.
	 
	 	 	 	Aggregate shall mean sand, gravel and cobble sized, glacio-fluvial material suitable
for dyke filter and blanket drains or roadwork.
	 
	 	 	 	Rehandle shall mean Overburden that is no longer in situ.
	 
	 	1.6	 	Measurement
	 
	 	 	 	Prior to the Overburden Removal Commencement Date, the Owner shall determine the
original ground base datum. The Contractor shall be entitled to conduct a survey of
the original ground for the purpose of volume computations. In the event that the

Contractor elects not to perform the said survey it shall be deemed to have accepted
the Owner’s original ground base survey.
	 
	 	 	 	Measurement for Overburden Removal shall be in bank cubic metres as determined from
Reconciliation Surveys.
	 
	 	 	 	Measurement for rehandle shall be in bank cubic metres as estimated from surveys.
No separate payment shall be made for removal of Overburden rehandle but the
Contractor shall include such quantities in volume, production and productivity
reports.
	 
	 	 	 	Measurement for aggregate materials removed from the Owner’s pit northeast of the
plant site, as illustrated in Drawing number 11-PLN-MI-0024 entitled Aggregate
Resource Location Plan, shall be in bank cubic metres as determined from
Reconciliation Surveys.
	 
	 	1.7	 	Submittals
	 
	 	 	 	Not used.

	2.0	 	PERFORMANCE

	 	2.1	 	Preparation
	 
	 	2.2	 	Execution
	 
	 	 	 	The Contractor shall perform Dewatering required to maintain its Overburden Removal
operations in a safe, efficient and environmentally responsible manner. This shall
include, without limitation, Dewatering to maximize the availability of suitable
dyke construction materials.
	 
	 	 	 	The Contractor shall be responsible for any fragmentation, including but not limited
to ripping and drilling and blasting, it feels is required to facilitate excavating
and placement of Overburden. In the event drilling and blasting is desired, the
Contractor shall be

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 300-Overburden Removal

Page 2 of 5

 

 

	 	 	 	responsible for obtaining all required permits and performing such Work in
accordance with Regulations.
	 
	 	 	 	In order to ensure sufficient dyke building materials to meet Work Schedule
requirements, the Contractor shall selectively mine the Overburden. The Contractor
shall endeavor to achieve placement of seventy (70) percent of total Overburden
Removal in dykes (thirty (30) percent placement of total Overburden in waste dumps).
Referring to Attachment “F” CNRL/Terracon Overburden Soil Classification and
Material Utilization Chart (note that in the Mine the stratigraphic order of
facies may differ from this chart) included in Section “E” – ATTACHMENTS, the
following soil units shall be grouped together and mined as separate benches;

	 	•	 	Bench 1 — Ho, Hf, Hl, Pfs, Pfsa, Pfg/Pfsg, Pl (excluding muskeg and mineral
soils when salvaged for reclamation purposes). The average thickness of this
bench is approximately three and one-half (3.5) metres and typically this
material can only be used for general fill for dykes or placed in waste dumps.
This bench may contain recoverable aggregate material which may have to be
salvaged;
	 
	 	•	 	Bench 2 – Pga, Pgtc, Pgts, Pgt, PgKc, PgKm (when total is greater than three
(3) metres thick. When less than three (3) metres thick include with Bench 3
materials). Typically this till material will be suitable for constructing the
dyke core and it must not be contaminated with deleterious materials as
specified by the Owner. The average bench thickness is approximately four and
one-half (4.5) metres;
	 
	 	•	 	Bench 3 – Kc, Kcw. Typically this material is used for the “controlled Kc”
zone of the dyke or for general fill;
	 
	 	•	 	Bench 4 – Kc, Kcw (when required due to Overburden thickness);
	 
	 	•	 	Bench 5 – Kc, Kcw (when required due to Overburden thickness); and
	 
	 	•	 	Bench 6 – This bench is required when oil sands (Km) less than seven (7)
percent bitumen by weight is greater than five (5) metres thick. When less
than five (5) metres thick, include with the adjacent Kc, Kcw bench. When
mined as a separate bench this lean oil sands material may be suitable for
constructing the dyke core as well as for roads and other general fill
purposes. Average bench thickness is approximately six and one-half (6.5)
metres.

	 	 	 	An illustration of bench material groupings and approximate thickness is provided in
Attachment “I” Layout of Overburden Mining Benches and Thickness Histograms,
included in Section “E”- ATTACHMENTS. The intent is to mine the complete thickness
of each bench rather than to subdivide the bench to further segregate dyke building
materials.
	 
	 	 	 	In the event during Overburden Removal the Contractor encounters any oil sands which
may be greater than seven (7%) percent bitumen by weight, or any aggregate material,
it shall notify the Owner. The Owner shall determine the quality of the material
and if authorized by a Change Order from the Owner, the Contractor shall recover
such oil sands or aggregate.
	 
	 	 	 	The Contractor shall remove Overburden down to the upper surface of the oil sands.
The Owner will inspect the Overburden Removal area to identify the economic limit
for the oil sands and will establish the position of the final ore contact. The
Contractor shall leave the final ore contact clear of surface water, organic matter
and Overburden, while minimizing losses of economic oil sands. The Contractor shall
minimize the water flowing to the oil sands removal sites.
	 
	 	 	 	The separation distance required from the toe of Overburden Removal to the crest of
oil sands removal shall be specified in the SWA.
	 
	 	 	 	The Contractor shall create the final pit wall slopes in accordance with Regulations
and as specified in the SWA. Tension cracks in the final highwalls shall be sealed
to minimize inflow of water.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 300-Overburden Removal

Page 3 of 5

 

 

	 	 	 	The Contractor shall construct and maintain all haulroads it requires for Overburden
Removal. Haulroads shall be constructed, maintained and operated in compliance
with Regulations, and Attachment “B” CNRL Hauling Safety Procedures included
in Section “E” – ATTACHMENTS. The Contractor shall provide a layout of its proposed
haulroads to the Owner for approval prior to construction. Roadwork performed by
the Contractor shall not disturb drainage systems (natural or otherwise). In the
event that any drainage systems are disturbed, the Contractor shall restore them in
accordance with Regulations, without cost to the Owner. At the Owner’s request the
Contractor shall remove its haulroads constructed within the pit limits, including
without limitation those it constructed on the oil sands, without cost to the Owner.
	 
	 	 	 	The corridor between the Southwest Pit and Waste Area 1, as illustrated in the
Drawings, will be used in the future for tailings pipelines and then a dyke. The
Contractor shall prepare the foundation for its roads or waste dumps in this
corridor as follows:

	 	•	 	Muskeg and soft underlying materials will be removed;
	 
	 	•	 	Stockpile organic materials suitable for reclamation at locations designated
by the Owner; and
	 
	 	•	 	Areas of ponded water on the prepared foundation surface shall be drained
and/or filled with granular materials up to a level at least one-half (0.5)
metres above the water level before non-granular materials can be place on this
area.

	 	 	 	The Contractor shall construct Dyke 10 in accordance with Attachment “D” Dyke 10
Muskeg Stripping Specification and Limits and Attachment “E” Dyke 10 Fill
Construction Specifications both included in Section “E”- ATTACHMENTS. The
Owner shall monitor the dyke building activities and the Contractor shall strictly
comply with the Owner’s directions for such Work. Lift thickness shall be those
required to achieve compactions specified for each zone of the dyke, as verified by
the Owner’s field tests. In general, other dykes will be built to similar
specifications with the Owner providing further direction prior to construction of
those structures.
	 
	 	 	 	The Contractor shall construct Waste Area 1 identified in the Drawings, with a one
hundred (100) metre wide outer shell in accordance with the specifications for Zone
5 provided in Attachment “E” Dyke 10 Fill Construction Specifications,
included in Section “E” – ATTACHMENTS. Furthermore, when constructing the Waste
Area 1 outer shell, lift thickness shall not exceed five (5) metres and free-dumping
shall not be allowed.
	 
	 	 	 	There are no specifications for compaction, fill surface preparation and clean-up
requirements, or maximum lift thickness for the interior of Waste Area 1 or for
waste dumps constructed within the mined out area of the Southwest Pit. This in no
way relieves the Contractor from its responsibility to ensures safety of all persons
and property as well as the environment when performing the Work.
	 
	 	 	 	The Contractor shall construct the tailings line corridor (TLC) identified in the
Drawings in accordance with the specifications for Zone 2 provided in Attachment “E”
Dyke 10 Fill Construction Specifications, included in Section “E” -
ATTACHMENTS. Pipeline crossing sleeves for the TLC will be supplied by the Owner,
and the number and locations of such crossings shall be mutually agreed by the
Parties. A Change Order will be issued when the Contractor is requested to rebuild
its haulroads at these crossings.
	 
	 	 	 	The Contractor shall ensure ponded water on dyke surfaces is removed prior to
subsequent fill placement and shall control water run-off to such surfaces.
	 
	 	 	 	The Contractor shall coordinate its Work activities with Third Parties constructing
the dyke filter and blanket drains and associated collection and outlet ditches, in
order minimize disruptions to the Work or to the Third Party’s work.
	 
	 	 	 	The Contractor shall replace without cost to the Owner, any dyke monitoring
instruments damaged by the Contractor.
	 
	 	 	 	The Owner shall require ongoing access to the dykes and waste dumps and the
Contractor shall coordinate its activities with the Owner’s in order to minimize
disruption

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 300-Overburden Removal

Page 4 of 5

 

 

	 	 	 	to the Work or to the Owner’s work.
	 
	 	 	 	Final surfaces of waste dumps and dykes shall be contoured in preparation for
placement of reclamation materials. Materials with a sodium adsorption ratio of
twelve (12) or greater (generally Clearwater Formation material) are not to be
placed within one (1) metre of these final surfaces. The Owner shall perform soil
tests to identify areas of concern and when requested by the Owner, the Contractor
shall place a lift up to one (1) metre thick of suitable Overburden on those areas.
	 
	 	 	 	The Contractor shall maintain all excavations, roads and other work areas free from
dust, as determined by the Owner. The Owner shall first approve the method of dust
control, before the Contractor implements the same.
	 
	 	 	 	Should the Owner require “flow-through dykes” to screen out course debris at the
recycle water intake to the extraction plant, the Contractor shall construct such
dykes in accordance with the specifications for Zone 2 provided in Attachment “E”
Dyke 10 Fill Construction Specifications included in Section “E” –
ATTACHMENTS.

	 	2.3	 	Quality Control
	 
	 	 	 	The Contractor shall notify the Owner when it reaches the top of oil sands and the
Owner will inspect such area to identify the economic limit of the oil sands for the
Contractor.
	 
	 	 	 	When the Contractor has completed an Overburden Removal area it shall notify the
Owner. The Owner shall inspect such area to determine if the Overburden/oil sands
contact has been properly cleaned to the final ore contact and that such surface has
been left clear of surface water, organic matter and Overburden and that water
flowing to the oil sands removal sites has been minimized. If the area does not pass
the inspection the Contractor shall correct all deficiencies until such time as the
area can pass the inspection.
	 
	 	 	 	When requested by the Owner to recover oil sands, the Contractor shall maximize
recovery of the oil sands while minimizing dilution with Overburden. The oil
sands/Overburden contact shall be cleaned to the satisfaction of the Owner prior to
excavating the oil sands.
	 
	 	 	 	When requested by the Owner to recover aggregate encountered in mining face, the
Contractor shall maximize recovery of the aggregate while minimizing dilution with
non-aggregate materials. The aggregate/Overburden contact shall be cleaned to the
satisfaction of the Owner prior to excavating the aggregate.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 300-Overburden Removal

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SPECIFICATION 400

CONTRACTOR’S DEWATERING

	1.0	 	GENERAL

	 	1.1	 	Definition
	 
	 	 	 	Contractor’s Dewatering shall mean Dewatering the Contractor’s Work sites, Facility
and Contractor’s Facility Site.
	 
	 	1.2	 	Work Included
	 
	 	 	 	Work in this section consists of the following:

	 	•	 	Design, excavation, operation and maintenance of ditches, trenches, sumps
and polishing ponds required for Dewatering the Contractor’s Work sites,
including without limitation those required to minimize surface water flowing
to the Owner’s oil sands removal sites;
	 
	 	•	 	Design, procurement, installation, operation and maintenance of pumps,
pumpstations, pipelines and oil separation equipment required for Dewatering
the Contractor’s Work sites;
	 
	 	•	 	Design, procurement, construction and maintenance of ditch or stream
crossings for access roads and haulroads constructed by the Contractor;
	 
	 	•	 	Design, procurement, construction, operation and maintenance of ditches,
trenches, sumps, pumps, pipelines and polishing ponds required for Dewatering
the Contractor’s haulroads and for Dewatering the Owner’s haulroads when used
by the Contractor;
	 
	 	•	 	Dewatering the Facility and Contractor’s Facility Site;
	 
	 	•	 	Collection of water quality and quantity data for monitoring and reporting
requirements contained herein; and
	 
	 	•	 	With the exception of those required to be obtained by the Owner pursuant to
Article 3.2 of Section “C” – SCOPE OF WORK, obtaining all licenses, permits and
approvals required for Dewatering. This includes, without limitation, permits
for dams constructed by the Contractor other than those required for dykes used
to contain tailings.

	 	1.3	 	Work Not Included
	 
	 	 	 	The following items associated with work in this section do not form part of the
Specification:

	 	•	 	Obtaining those licenses, permits and approvals identified in Article 3.2 of
Section “C” – SCOPE OF WORK;
	 
	 	•	 	Obtaining permits for dykes used to contain tailings;
	 
	 	•	 	Design, procurement, construction, installation, operation and maintenance
of the basal sand aquifer dewatering system;
	 
	 	•	 	Design, procurement, construction, installation, operation and maintenance
of specific dewatering systems identified as supplied by Owner in Drawing
number 11-PLN-MI-0012, entitled 2005 Muskeg Drainage Plan, included in
the Drawings; and
	 
	 	•	 	Dewatering oil sands removal sites, other than to minimize surface water
flow to such sites.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 400-Contractor’s Dewatering

Page 1 of 3

 

 

	 	1.4	 	Supplied by Owner
	 
	 	 	 	Not used.
	 
	 	1.5	 	Terminology
	 
	 	 	 	“Dewatering” means any activity with the intent or effect to remove water from a
Work area, directly or indirectly, including without limitation design, procurement,
construction, installation, operation and maintenance of all water systems and
procurement, installation, operation and maintenance of all associated tools,
supplies, materials and equipment.
	 
	 	 	 	“Basal sand aquifer dewatering system” means the infrastructure provided by the
Owner to depressurize the lower member of the McMurray Formation, to facilitate oil
sands removal.
	 
	 	 	 	“Clean water” means water suitable for release directly to natural water, or water
suitable for release to natural water after treatment in a polishing pond.
	 
	 	 	 	“Industrial water” means water that is either unsuitable for release to natural
receiving water without prior treatment with oil separation equipment, or that must
be conveyed and stored in a closed circuit system for recycling.
	 
	 	 	 	“Closed circuit system” means water conveyance and storage facilities, such as
tailings ponds, designed to prevent spillage and for recycling water for industrial
use.
	 
	 	 	 	Dykes mean earth structures designed by geotechnical engineers and used to contain
tailings from the processing of oil sands.
	 
	 	1.6	 	Measurement
	 
	 	 	 	Measurement for the volume of water released to natural receiving water or to closed
circuit systems shall be litres, either from direct measurements or from estimates
based upon pump capacities and pumping times. Measurement of discharge rates shall
be in litres per second.
	 
	 	1.7	 	Submittals
	 
	 	 	 	Not used.

	2.0	 	PERFORMANCE

	 	2.1	 	Preparation
	 
	 	 	 	Not used.
	 
	 	2.2	 	Execution
	 
	 	 	 	To minimize the accumulation of water in the Mine, the Contractor shall direct water
to clean or industrial water systems in a timely manner.
	 
	 	 	 	The Contractor shall collect and convey surface runoff from undisturbed areas or
cleared areas directly to natural water.
	 
	 	 	 	For water that has not been in contact with oil sands, the Contractor shall treat
water from muskeg drainage ditches, Overburden dewatering systems, reclamation
material stockpiles and Overburden Dump Areas, in polishing ponds before release to
the natural receiving water.
	 
	 	 	 	The Contractor shall convey and contain industrial water in closed circuit systems.
Alternatively, with the Owner’s prior approval, the Contractor may treat water in
contact with Overburden containing lean oil sands and water from haul roads, in
polishing ponds equipped with oil separation equipment, prior to release to natural
receiving water. The Contractor shall be responsible for procuring, installing,
operating and maintaining any and all oil separation equipment it requires to meet
Regulations governing release of

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 400-Contractor’s Dewatering

Page 2 of 3

 

 

	 	 	 	water.
	 
	 	 	 	Water from tailing ponds, including the pond water, pore water, seepage and run-off,
as well as water from oil sands removal sites, including run-off and groundwater
seepage, shall be contained in closed circuit systems. Managing water from tailings
ponds and from oil sands removal sites, other than to minimize surface water flow to
such oil sands removal sites, will be the Owner’s responsibility and is not included
in the Work.
	 
	 	 	 	A closed circuit system will not be available for containing industrial water from
the Facility and Contractor’s Facility Site until after mid 2008. Prior to that
time the Contractor shall treat industrial water from the Facility and the
Contractor’s Facility Site to the extent necessary to meet Regulations for water
released to natural water.
	 
	 	 	 	A closed circuit system will not be available for containing industrial water from
the Mine prior to Dyke 10 closure in early 2008. Prior to that time the Contractor
shall treat industrial water from the Mine to the extent necessary to meet
Regulations for water released to natural water.
	 
	 	 	 	Not withstanding the Contractor’s requirement to operate in accordance with the
Regulations, the Contractor’s water systems shall be designed in accordance with
Attachment “J” Mine Drainage Preliminary Design Parameters for the Horizon Oil
Sands Project, including without limitation the following requirements:

	 	•	 	Any conveyance and storage system for water that will be released to natural
water shall be designed to accommodate the one hundred (100) year flood;
	 
	 	•	 	Any storage facility defined as a dam by the Canadian Dam Association (CDA)
shall be designed to handle the required design flood events and meet the
safety criteria specified in the CDA Dam Safety Guidelines;
	 
	 	•	 	Polishing ponds shall be designed to trap particles fifteen (15) microns in
size or larger, during the ten (10) year flood; and
	 
	 	•	 	The minimum ditch gradient shall be 0.2% and ditch sides shall not exceed a
slope of 1:1 unless identified otherwise in the Drawings.

	 	 	 	The Contractor shall minimize water flowing to the oil sands removal sites.
	 
	 	 	 	The Contractor shall ensure that drainage systems (natural or otherwise) are not
disturbed when performing roadwork.
	 
	 	 	 	The Contractor shall ensure that all pumping operations are coordinated with the
Owner before discharging water.
	 
	 	 	 	The Contractor shall measure and report water quantities released to natural
receiving water or to closed circuit systems. Due to the nature of clay materials,
particle sizes of less than fifteen (15) microns may be encountered and may require
additional treatment prior to release.
	 
	 	2.3	 	Quality Control
	 
	 	 	 	The Contractor shall be responsible for monitoring and reporting the quality of
water it releases to natural water and shall prevent water that will not meet
Regulations from entering natural water. In the event the Contractor contravenes a
Regulation, it shall notify the Owner immediately and the Contractor shall take all
actions necessary to mitigate the contravention.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 400-Contractor’s Dewatering

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SPECIFICATION 500

SURVEYING

	1.0	 	GENERAL

	 	1.1	 	Definition
	 
	 	 	 	Surveying shall mean the measurement of grades, physical features and limits in the
Mine and Contractor’s Facility Site, and calculations for the determination of
distances, boundaries, areas, volumes and elevations using the data collected from
such measurements.
	 
	 	1.2	 	Work Included
	 
	 	 	 	Work in this section consists of the following:

	 	•	 	Supply, commissioning, operation and maintenance of a Global Positioning
System (GPS) survey system complete with all infrastructure, equipment,
hardware and software necessary to fulfill the requirements of this
Specification. The Contractor’s survey system shall be compatible with the
Owner’s GPS system;
	 
	 	•	 	The Contractor shall be responsible for providing GPS radio repeater
stations to ensure adequate signal coverage at all Work sites; and
	 
	 	•	 	All surveying required to perform the Work.

	 	1.3	 	Work Not Included

	 	•	 	Collection and analysis of environmental, hydrological, hydrogeological and
meteorological monitoring data unless required by the Contractor for its design
or other purposes, or for monitoring and reporting water qualities and
quantities in accordance with Specification 400 – Contractor’s
Dewatering.

	 	1.4	 	Supplied by Owner

	 	•	 	GPS base station;
	 
	 	•	 	Survey coordinate system;
	 
	 	•	 	Original ground base datum; and
	 
	 	•	 	The CNRL Mine Plan.

	 	1.5	 	Terminology
	 
	 	 	 	As-Mined Plans shall mean a survey plan at a scale of 1:5000 that shows the progress
of all facets of the Work.
	 
	 	1.6	 	Measurement
	 
	 	 	 	Not used.
	 
	 	1.7	 	Submittals
	 
	 	 	 	The Contractor shall submit the following reports to the Owner, in a form
satisfactory to and approved in advance by the Owner:

	 	a)	 	The SWA Execution Plan;
	 
	 	b)	 	The SWA Execution Plan by quarter; and
	 
	 	c)	 	Monthly and Annual As-Mined Plans as set out in Article 2.2 herein.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 500-Surveying

Page 1 of 3

 

 

	2.0	 	PERFORMANCE

	 	2.1	 	Preparation
	 
	 	 	 	Prior to the Overburden Removal Commencement Date, the Owner shall determine the
original ground base datum. The Contractor shall be entitled to conduct a survey of
the original ground for the purpose of volume computations. In the event that the
Contractor elects not to perform the said survey it shall be deemed to have accepted
the Owner’s original ground base survey.
	 
	 	 	 	Surveying and plans shall be based on the Owner’s survey coordinate system. A
common set of survey stations and control points will be established and used by
both the Owner and the Contractor.
	 
	 	 	 	A common set of parameters, factors and map symbols shall be established prior to
the Construction Commencement Date. Where judgements and approximations are used,
common criteria for estimating purposes shall be established.
	 
	 	2.2	 	Execution

	 	(A)	 	General
	 
	 	 	 	The Contractor shall conduct surveys as required and provide the results
thereof in As-Mined Plans on a monthly and annual basis to the Owner. The
As-Mined Plans shall include, but not be limited to:

	 	(a)	 	Overburden crests and toes;
	 
	 	(b)	 	The location of physical features including,
but not limited to, haulroads, access roads, powerlines, drainage
systems, Dump Areas, ramps and buttresses;
	 
	 	(c)	 	As-built drawings for dykes, including but not
limited to plans and sections illustrating dimensions, elevations and
material types placed, for each zone of the dyke; and
	 
	 	(d)	 	Other excavations required of the Contractor in
performance of the Work.

	 	 	 	The Contractor shall provide the Owner, on a monthly basis, all survey
measurements in their original form and all calculations pertinent to
control data, all survey measurements, calculations and plans.
	 
	 	 	 	In the event the Owner decides, in its discretion, that field surveys are
unsafe or impossible to conduct, the number of bank cubic metres of material
moved shall be determined by multiplying the Truck Count for that time
period by the applicable Truck Factor.

	 	(B)	 	Reconciliation Surveys
	 
	 	 	 	The Contractor and the Owner shall agree upon dates to jointly survey active
excavations to conduct Reconciliation Surveys. Such Reconciliation Surveys
shall be conducted every one (1) week, or as required by the Owner, during
that portion of the Term following the Overburden Removal Commencement Date
and at the conclusion of the Work (other than Construction) authorized by
each SWA.
	 
	 	 	 	On or before the Overburden Removal Commencement Date, the Owner and the
Contractor shall determine the Truck Factor to be used until the first
Reconciliation Survey has been completed. Thereafter the Truck Factor will
be determined by the Owner and the Contractor based on the results of the
most recent Reconciliation Survey.
	 
	 	 	 	The Contractor shall provide its Truck Count to the Owner in writing on a
daily basis.
	 
	 	 	 	In the event the Contractor elects not to participate in a Reconciliation
Survey, it

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 500-Surveying

Page 2 of 3

 

 

	 	 	 	shall be deemed to have accepted the Owner’s survey results.
	 
	 	 	 	The survey measurements and all data resulting from the survey conducted for
a Reconciliation Survey shall be provided to the Contractor and the Owner
who shall each perform the necessary calculations. The Parties shall either
agree on the Reconciliation Survey results or shall redo the calculations
based on the survey data until such time the Parties can agree on the
Reconciliation Survey results.
	 
	 	 	 	In the event any adjustment in the amount payable to the Contractor is
necessary as a result of the Reconciliation Survey, such adjustments shall
be made in accordance with Article 4 of Section “D” — COMPENSATION.

	 	2.3	 	Quality Control
	 
	 	 	 	The Contractor must receive approval from the Owner prior to supplying its GPS
survey system for the Work.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 500-Surveying

Page 3 of 3

 

 

SPECIFICATION 600

PRODUCTIVITY AND COST MANAGEMENT

	1.0	 	GENERAL

	 	1.1	 	Definition
	 
	 	 	 	Productivity and cost management shall mean the measurement, calculation and
reporting of production quantities, labor and equipment productivities and all the
costs incurred by the Contractor to perform the Work.
	 
	 	1.2	 	Work Included
	 
	 	 	 	Work in this section consists of the following:

	 	•	 	Supply of a management information system (MIS) complete with all hardware
and software necessary to fulfill the requirements of this Specification;
	 
	 	•	 	Operation of the management information system to provide timely, accurate
reports, on a per shift, daily, weekly, monthly, yearly and Contract-to-date
basis. Reports shall be in a form satisfactory and approved in advance by the
Owner;
	 
	 	•	 	Identification and analyses of variances of production volumes from those
planned and recommendations on how to reduce such variances; and
	 
	 	•	 	Identification and analyses of variances of productivities from those
planned and recommendations on how to reduce such variances.

	 	1.3	 	Work Not Included
	 
	 	 	 	The following items associated with work in this section do not form part of the
Specification:

	 	•	 	Reporting of variances of actual costs from those planned.

	 	1.4	 	Supplied by the Owner

	 	•	 	Work breakdown structure identifying the work items and expense types for
reporting purposes; and
	 
	 	•	 	Remote access to the Owner’s computer system for direct supply of reports
created to fulfill the requirements of this Specification.

	 	1.5	 	Terminology
	 
	 	 	 	“Work Breakdown Structure” shall mean the breakdown of all work activities into
categories, for reporting purposes.
	 
	 	 	 	The following basic equipment operating statistics shall have the meanings and
definitions ascribed to them herein:

	 	a)	 	Operating Time (OT) shall mean the hours the machine is
actually in operation including moving between locations within the Mine, and
moving to or from the shop providing it is in condition to be able to work and
is moving under its own power (for shovels, see delays).
	 
	 	b)	 	Maintenance Down Time (MD) shall mean the hours the machine
is down for repair or preventative maintenance, including waiting for parts or
space for repair. Maintenance Down Time takes priority over Delay or Idle
Time.
	 
	 	c)	 	Delay Time (DT) shall mean the hours a machine is not able to
operate for any of the following reasons:

	 	•	 	power outages for electric equipment;
	 
	 	•	 	Fuel/Oil/Grease (daily servicing/fueling only);
	 
	 	•	 	interruption of production while waiting for another unit, i.e. trucks waiting for

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 600-Productivity and Cost Management

Page 1 of 5

 

 

	 	 	 	a shovel to move to another location (does not include shovel
repositioning or waiting for another truck to be loaded);
	 
	 	•	 	lunch and miscellaneous breaks;
	 
	 	•	 	start up and shutdown;
	 
	 	•	 	for shovels only waiting for trucks is not a delay and is included
in operating time; moves longer than 15 minutes are considered as
delays;
	 
	 	•	 	no work available but scheduled;
	 
	 	•	 	safety and union meetings;
	 
	 	•	 	weather;
	 
	 	•	 	blasting; and
	 
	 	•	 	operators late arriving at equipment.

	 	d)	 	Idle Time (IT) shall mean any time when the machine is
scheduled not to operate, i.e. weekends, third shift, etc. Idle Time does not
include any repairs performed on idle time, but can include servicing on a
non-scheduled shift, if servicing would have been done during lunch and
breaks, etc. had the idle shift not been available.

	 	 	 	The following basic equipment operating statistics shall have the meanings and
definitions ascribed to them herein:

	 	a.	 	Mechanical Availability (MA) measures the portion of scheduled
time that a piece of equipment is physically able to operate and shall be
calculated as:

	 	 	 	 	 	 	 
	 

	 	(MA) =
	 	OT + DT
 

OT + DT + MD
	 	 

	 	b.	 	Operating Efficiency (OE) measures the use of mechanically or
physically available time and shall be calculated as:

	 	 	 	 	 	 	 
	 

	 	(OE) =
	 	OT
 

OT + DT
	 	 

	 	c.	 	Effective Utilization (EU) measures the use of scheduled or
non-idle hours and shall be calculated as:

	 	 	 	 	 	 	 
	 

	 	(EU) =
	 	MA * OE
	 	 

	 	d.	 	Overall Utilization (OU) measures the use of total time and
shall be calculated as:

	 	 	 	 	 	 	 
	 

	 	(OU) =
	 	OT
 

OT + DT + MD + IT
	 	 

	 	1.6	 	Measurement
	 
	 	 	 	Not used.
	 
	 	1.7	 	Submittals
	 
	 	 	 	Not used.

	2.0	 	PERFORMANCE

	 	2.1	 	Preparation
	 
	 	 	 	The Work Breakdown Structure (WBS) shall consist of the following mining areas, work
functions and expense types;

	 	 	 	 	 	 	 
	 	 	Mining Area	 	Description	 	 
	 

	 	SE
	 	Southeast section of the Mine
	 	 
	 

	 	SW
	 	Southwest section of the Mine	 	 
	 

	 	NE
	 	Northeast section of the Mine	 	 

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 600-Productivity and Cost Management

Page 2 of 5

 

 

	 	 	 	 	 	 	 
	 

	 	NW
	 	Northwest section of the Mine
	 	 

Work Function

- Facility and Contractor’s Facility Site

	 	•	 	construction
	 
	 	•	 	operation and maintenance

- Muskeg and Mineral Soils Removal

- Overburden Removal

	 	•	 	truck, cable shovel stripping
	 
	 	•	 	truck, hydraulic excavator stripping
	 
	 	•	 	truck, loader stripping
	 
	 	•	 	dyke construction
	 
	 	•	 	dump construction

- Owner’s haulroads — maintenance

- Contractor’s haulroads

	 	•	 	construction
	 
	 	•	 	maintenance

- Reclamation activities

- Dewatering

	 	•	 	ditch and sumps construction and maintenance
	 
	 	•	 	polishing ponds and oil separation equipment construction, operation and
maintenance
	 
	 	•	 	pumps and pipelines construction, operation and maintenance

- Field Overhead

	 	•	 	administration
	 
	 	•	 	small vehicles

- Head Office Overhead

	 	•	 	administration

- Equipment and Replacement Equipment depreciation

- Equipment and Replacement Equipment carrying cost

- Inventory carrying cost

- Salvage

- Changes to the Work

	 	•	 	interburden removal
	 
	 	•	 	oil sands removal
	 
	 	•	 	construction of Dyke 10 filter and blanket drains
	 
	 	•	 	construction of Dyke 10 cut-off trenches
	 
	 	•	 	Owner’s haulroads – construction
	 
	 	•	 	miscellaneous extra work (priced in accordance with Article 2.4 of
Section “D” – COMPENSATION)
	 
	 	•	 	miscellaneous additional work (priced in accordance with any of Articles
2.1, 2.2 or 2.3 of Section “D” – COMPENSATION).

Expense Types

- Labour (wages, salaries and benefits)

- Materials, parts and supplies (including fuel, oil and grease)

- Sub-contractors

- Depreciation

- Carrying cost

- Utilities

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 600-Productivity and Cost Management

Page 3 of 5

 

 

	 	2.2	 	Execution

	 	(A)	 	General
	 
	 	 	 	The MIS shall be operated during the performance of Work so as to maintain
the necessary records and provide the specified reports in a timely and
accurate manner.
	 
	 	 	 	The Owner shall provide the Contractor a direct link to the Owner’s computer
system, to allow for the electronic transfer of the quantity, cost and
productivity data and reports required to fulfill the requirements of this
Specification.
	 
	 	(B)	 	Allocation and Reporting of Costs
	 
	 	 	 	The Contractor’s reports for the Owner on actual costs of the Work performed
shall be organized in accordance with the Work Breakdown Structure. Costs
shall be allocated to the expense types, Work functions and mining areas
identified in the WBS and the costing system shall accumulate costs by each
expense type for each specific unit of Equipment and Replacement Equipment.
	 
	 	 	 	The costs for each Equipment and Replacement Equipment category shall be
calculated by addition of costs for each specific unit of Equipment and
Replacement Equipment of that category. Unit costs for Equipment and
Replacement Equipment shall be calculated from the costs accumulated and
from the total time as reported on timesheets and from other sources.
	 
	 	 	 	Unit costs for each Work Function and expense type shall be calculated by
combining direct charges from the payroll, accounts payable and accounts
receivable systems with Equipment and Replacement Equipment costs allocated
proportionately to the Work functions by the equipment time spent on each
Work function. Unit costs for each Work function for each mining area and
for the total Mine shall be calculated from the costs accumulated and the
total quantities as reported from surveying and other measurement methods.
	 
	 	 	 	Actual costs shall be reported against the WBS and for each unit and type of
Equipment and Replacement Equipment on a monthly, year to date and contract
to date basis.
	 
	 	(C)	 	Quantity Reporting
	 
	 	 	 	Quantity reporting shall provide quantity information from timesheets,
procurement sources, surveying, weigh scales, and the Mine Management
System.
	 
	 	 	 	The Contractor shall provide on a daily basis a material movement report
including for each shift;

	 	§	 	Truck Counts and volumes;
	 
	 	§ 	 	loading units;
	 
	 	§ 	 	loading locations;
	 
	 	§ 	 	material types loaded; and
	 
	 	§ 	 	dumping locations.

	 	 	 	The Contractor shall provide the following reports on quantities on a monthly, year
to date and Contract to date basis:

	 	§ 	 	Bank cubic meters of muskeg and mineral soils removed from insitu ground;
	 
	 	§ 	 	Cubic metres of reclamation materials removed from stockpiles;
	 
	 	§ 	 	Centimeters (depth), cubic metres and hectares of reclamation
materials placed;

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 600-Productivity and Cost Management

Page 4 of 5

 

 

	 	§ 	 	Bank cubic meters of Overburden removed;
	 
	 	§ 	 	Bank cubic meters of Overburden placed in dykes;
	 
	 	§ 	 	Bank cubic metres of Overburden placed in dumps;
	 
	 	§ 	 	Bank cubic meters of interburden removed;
	 
	 	§ 	 	Bank cubic meters of oil sands stockpiled or direct hauled to
processing facilities;
	 
	 	§ 	 	Bank cubic meters of aggregate recovered;
	 
	 	§ 	 	Quantities produced by each specific unit and category of Equipment
and Replacement Equipment;
	 
	 	§ 	 	Horizontal distances for haul routes used, measured centroid to centroid; and
	 
	 	§ 	 	The accumulated bank cubic meter-kilometers for each material type hauled.

	 	(D)	 	Productivity Reporting
	 
	 	 	 	Statistics shall be kept for all units of Equipment and Replacement
Equipment to determine the Operating Time, Delay Time, Mechanical Down Time
and Idle Time and these shall be used to calculate the Mechanical
Availability, Effective Utilization, Overall Utilization and Operating
Efficiency for each unit. The Contractor shall report these statistics and
calculations for each unit and type of Equipment and Replacement Equipment
on a monthly, year-to-date and Contract-to-date basis.
	 
	 	 	 	Labour productivity shall be calculated by dividing the sum of all bank
cubic meters of materials removed by the Contractor for a given period, by
the sum of all man-hours worked by the Contractor’s employees during that
same period. The Contractor shall report the calculated labour productivity
on a monthly, year-to-date and Contract-to-date basis.

	 	2.3	 	Analysis of Quantity and Productivity Reports
	 
	 	 	 	The reported quantities, and the reported production, utilization and availability
for each type of Equipment and Replacement Equipment, shall be compared to those
forecast on a monthly and year-to-date basis. The reasons for such variances
between actual and forecast values shall be identified and explained to the Owner by
the Contractor.
	 
	 	 	 	The reports generated using the MIS shall be analyzed monthly to identify variances
in actual production quantities and productivities from those forecast. The reasons
for such variances shall be determined by the Contractor and reported to the Owner
on a monthly and year-to-date basis.
	 
	 	2.4	 	Owner’s Access to Contractor’s Data
	 
	 	 	 	During the Term of the Contract, the Owner shall have direct access to all quantity,
cost and productivity data resulting from the Work.

			
	 	 	 
	Canadian Natural Resources Limited

Contract Number: 400472
	 	Specification 600-Productivity and Cost Management

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