Document:

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;
	 
	 	 	 	 
	 
	 	 	 	 

			
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	 	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;
	 
	 	 	 	 

			
	Canadian Natural Resources Limited
	 	Section “B” — Terms & Conditions
	Contract Number: 400472
	 	Page 6 of 34

 

 

	 	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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	 	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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	 	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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	 	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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	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
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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.
	 
	 	 	 	 

			
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	 	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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	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
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	 	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
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	 	 	 	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
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	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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	Contract Number: 400472
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	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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	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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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 
	 	 	12	 
	6.0 INVOICING INSTRUCTIONS 
	 	 	12	 
	7.0 RATE SCHEDULES 
	 	 	15	 
	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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COMPENSATION

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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.

			
	 	 	 
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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.

			
	 	 	 
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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.

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

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	 	 	 	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

Page 5 of 5

 

 

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

Page 3 of 3

 

 

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

Page 5 of 5exv10w13

 

Exhibit 10.13

THIS AGREEMENT made as of the 12th day of September, 2002, and amended and
restated this 30th day of September, 2004.

BETWEEN:

NORTH AMERICAN CONSTRUCTION GROUP INC., a corporation incorporated under the laws
of Alberta (“NACG”)

- and -

FORT McKAY CONSTRUCTION LTD., as agent of a limited partnership to
be constituted under the name and style “Fort McKay Construction
Limited Partnership” (“Fort McKay”)

- and -

NORAMAC VENTURES INC., a corporation incorporated under the laws of
Alberta (the “Corporation”)

JOINT VENTURE AGREEMENT

WHEREAS:

A. The Participants have an interest in submitting tenders and proposals for and,
if successful, performing Contracts with Owners for Projects;

B. The Participants are the shareholders of the Corporation, which was incorporated on September 5,
2002 for the purpose of acting as their nominee in submitting such proposals and performing
Projects;

C. The Participants have agreed to form a joint venture which shall make proposals for and seek to
obtain contracts from Owners and, if successful, perform Work, all in accordance with the terms,
conditions and provisions of this Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants set forth in
this Agreement, the Participants agree as follows:

ARTICLE 1

	1.1	 	Definitions

	 	(a)	 	“Affiliate” means an affiliated body corporate as defined in the
Business Corporations Act (Alberta) and bodies affiliated to Fort McKay as a
limited partnership;
	 
	 	(b)	 	“Agreement” means this Agreement and any instrument supplemental or ancillary to
this Agreement and the expression “Article” or “Section” followed by a number means and
refers to the specified article or section of this Agreement;

 

- 2 -

	 	(c)	 	“Business Day” means any day which is not a Saturday, Sunday or a statutory holiday in
Alberta;
	 
	 	(d)	 	“Capital Contributions” means the capital contributed to the Joint Venture by either
Participant in the form of cash or equipment or assets.
	 
	 	(e)	 	“Contract” or “Contracts” means contracts awarded to the Joint Venture for the performance of
Projects;
	 
	 	(f)	 	“Default” has the meaning set out in Section 9.2;
	 
	 	(g)	 	“Encumbrances” includes mortgages, liens, charges, security interests and any other adverse or
third party claims or interests whatsoever;
	 
	 	(h)	 	“Excess Funded Amount” means those monies or equipment advanced on behalf of one Participant
by the other Participant in accordance with Section 4.2;
	 
	 	(i)	 	“Interest” means with respect to a Participant, the entire interest of such Participant from
time to time in and to the Contracts and the Projects, the proceeds therefrom and the right
to the payment of fees and profits under this Agreement and other assets and equipment of the
Joint Venture, including the shares held by such Participant in the Corporation and the
indebtedness outstanding from the Joint Venture to such Participant. “Interests” means the
interests of all Joint Venturers collectively or such of them as are specified.
	 
	 	(j)	 	“Joint Venture” means the joint venture between the Participants formed pursuant to and for
the limited purposes set out in this Agreement;
	 
	 	(k)	 	“Joint Venture Costs” means:

	 	(i)	 	all costs and expenses incurred by the Joint Venture in the performance of
Work authorized by the Management Committee, including, but not limited to:

	 	(A)	 	the cost of materials such as fuel, oil and grease;
	 
	 	(B)	 	the costs associated with payments to subcontractors
under Contracts;
	 
	 	(C)	 	the costs associated with rental of equipment not contributed
to the Joint Venture by either of the Participants;
	 
	 	(D)	 	the cost of permanent and temporary construction materials;
	 
	 	(E)	 	the cost of labour, whether supplied by Fort McKay or NACG
or their nominees;
	 
	 	(F)	 	the cost of equipment rented to the Joint Venture by
either Participant; and

 

- 3 -

	 	(G)	 	the cost of repairs, maintenance and overhaul where contemplated
in a tender or proposal and authorized by the Manager and not covered in
the rental cost of the equipment;

	 	(ii)	 	the following items of expense where such expenses are not reimbursable
under the terms of a Contract:

	 	(A)	 	taxes, fees, penalties and similar costs lawfully levied
against the Joint Venture by any governmental authority having
jurisdiction, other than income taxes. This provision shall not preclude the
Joint Venture from protesting or litigating any levies or assessments;
	 
	 	(B)	 	legal and audit fees authorized by the Management Committee
or as required by law;
	 
	 	(C)	 	the uninsured portion of any third party claim against the
Joint Venture for bodily injury, property damage or the like resulting from the
performance of the Work;
	 
	 	(D)	 	all premiums on policies of insurance purchased by the
Joint Venture;
	 
	 	(E)	 	other items of cost as may be determined by the
Management Committee; and
	 
	 	(F)	 	all expenses incurred in performing any management,
accounting and administrative functions relating to the Joint Venture
business authorized by the Management Committee, or a fee in lieu thereof payable
to the Manager in an amount agreed to by the Management
Committee for a specific Project.

	 	(1)	 	“Major Decision” means a decision respecting a matter set out in Section 6.2;
	 
	 	(m)	 	“Management Committee” means the committee appointed pursuant to Section 6.1 of this
Agreement;
	 
	 	(n)	 	“Manager” means the company appointed in accordance with Article 5 herein;
	 
	 	(o)	 	“Net
Cash Flow” has the meaning set out in Section 4.6;
	 
	 	(p)	 	“Owner” means the party or parties at whose direction Work is performed on Projects, and
collectively described as the “Owners
	 
	 	(q)	 	“Participant” means each of NACG and Fort McKay as Participants to and joint venturers under
this Agreement and their respective successors and permitted assigns;
	 
	 	(r)	 	“Person” means an individual, a corporation, a partnership, a trustee or any unincorporated
organization and words importing persons have similar meaning;

 

- 4 -

	 	(s)	 	“Prime Rate” means the rate per annum announced, from time to time, by the
Bank of Nova Scotia as its prime rate and used by that bank as a reference rate for
commercial loans in Canadian dollars in Canada;
	 
	 	(t)	 	“Project” or “Projects” means, unless otherwise mutually agreed between the
parties, the construction, development and operation of open pit mining projects
within a radius of 50 kilometres of Fort McKay, Alberta, and which require provision
of heavy construction equipment, and any other Work the Management Committee agrees
to perform through the Joint Venture;
	 
	 	(u)	 	“Proportionate Interest(s)” means the percentage interest for each Project
as determined in accordance with Article 3.10;
	 
	 	(v)	 	“Revenues” means the gross revenues determined in accordance with generally
accepted accounting principles; and
	 
	 	(w)	 	“Work” means the work, services and materials to be done, performed or
provided by or on behalf of the Joint Venture in the performance of the Contracts.

	1.2	 	Preamble Incorporation

The Participants agree that the preamble to this Agreement is incorporated into and forms part of
this Agreement.

	1.3	 	Governing Law and Submission to Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of Alberta and
the Participants submit and attorn to the jurisdiction of the courts in Alberta. The Participants
agree that any litigation between the Participants which arises pursuant to or in connection with
this Agreement, or any of its provisions, shall be referred to the courts in Alberta and shall not
be referred to the courts of any other jurisdiction.

	1.4	 	Amendments

This Agreement is subject to amendment only with the unanimous consent in writing of each of the
Participants.

	1.5	 	Severabiliry

Every provision of this Agreement is intended to be severable. If any term or provision of this
Agreement, or its application to any Person or circumstance, shall, to any extent, be invalid or
unenforceable for any reason whatsoever, the remainder of this Agreement or the application of such
provision or portion of this Agreement to any other Person or circumstance shall not be affected
and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted
by law.

	1.6	 	Time of the Essence

Time shall be of the essence of this Agreement.

 

- 5 -

1.7 Headings

The Section headings are inserted for convenience of reference only and shall not affect the
interpretation of this Agreement.

	1.8	 	Singular, Plural and Gender

Wherever the singular, plural, masculine, feminine or neuter is used throughout this Agreement
the same shall be construed as meaning the singular, plural, masculine, feminine, neuter, body
politic or body corporate where the facts or context so requires.

	1.9	 	Entire Agreement

This Agreement constitutes the entire agreement between the Participants pertaining to the
subject matter of this Agreement and supersedes all prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written, of the Participants and
there are no warranties, representations or other agreements between the Participants in
connection with the subject matter of this Agreement except as specifically set forth in this
Agreement. No supplement, modification or waiver of this Agreement shall be binding unless
executed in writing by the Participant to be bound by it.

	1.10	 	Contra Proferentem Not Applicable

The Participants acknowledge having participated fully in the preparation of this Agreement
and agree that the principle of contra proferentem shall not apply with respect to this Agreement
to either Participant.

ARTICLE 2 — REPRESENTATIONS

	2.1	 	Representations by NACG

NACG represents and warrants to Fort McKay as follows:

	 	(a)	 	NACG has been duly incorporated and organized and is validly subsisting
under the laws of Alberta with full power and capacity to own its own property, to
give and perform the covenants, representations, indemnities, warranties,
and undertakings required of it by this Agreement and to carry on the business which it
carries on;
	 
	 	(b)	 	there are no actions or proceedings pending or threatened against NACG in
any court of law, before any judicial or administrative tribunal,
governmental commission, department or agency which might result in a material
adverse change in the business, properties or financial condition of NACG
including, without limitation, NACG’s interest in the Joint Venture, and there are no
material unsatisfied judgments or writs of execution outstanding against it;
	 
	 	(c)	 	neither the execution and delivery of this Agreement nor the consummation of
the transactions contemplated hereby or thereby shall constitute a breach of or
default under any contract or instrument to which NACG is a party or by which it may be

 

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	 	 	 	bound, nor shall it result in the acceleration in the time of performance of any
obligation under any such contract or instrument, nor would it result in the
creation of a new lien or encumbrance upon any of NACG’s assets including, without
limitation, NACG’s interest in the Joint Venture;
	 
	 	(d)	 	NACG has taken all necessary corporate action to authorize the
execution, delivery and performance of this Agreement;
	 
	 	(e)	 	NACG has the financial resources, ability and wherewithal to make such
Capital Contributions as it may be called upon to make from time to time; and
	 
	 	(f)	 	this Agreement constitutes a valid and binding obligation of NACG,
enforceable against NACG in accordance with its terms.

	2.2	 	Representations by Fort McKay

Fort McKay represents and warrants to NACG as follows:

	 	(a)	 	Fort McKay has been duly constituted and organized and is validly
subsisting under the laws of Alberta with full power and capacity to own its own
property, to give and perform the covenants, representations, indemnities, warranties,
and undertakings required of it by this Agreement and to carry on the business which it
carries on;
	 
	 	(b)	 	there are no actions or proceedings pending or threatened against Fort McKay
in any court of law, before any judicial or administrative tribunal,
governmental commission, department or agency which might result in a material
adverse change in the business, properties or financial condition of Fort McKay
including, without limitation, Fort McKay’s interest in the Joint Venture, and there are
no material unsatisfied judgments or writs of execution outstanding against it;
	 
	 	(c)	 	neither the execution and delivery of this Agreement nor the consummation of
the transactions contemplated hereby or thereby shall constitute a breach of or
default under any contract or instrument to which Fort McKay is a party or by which
it may be bound, nor shall it result in the acceleration in the time of performance
of any obligation under any such contract or instrument, nor would it result in
the creation of a new lien or encumbrance upon any of Fort McKay’s assets
including, without limitation, Fort McKay’s interest in the Joint Venture;
	 
	 	(d)	 	Fort McKay has taken all necessary corporate action to authorize the
execution, delivery and performance of this Agreement;
	 
	 	(e)	 	Fort McKay has the financial resources, ability and wherewithal to make
such Capital Contributions that it may be called on to make from time to time hereunder;
and
	 
	 	(f)	 	this Agreement constitutes a valid and binding obligation of Fort
McKay, enforceable against Fort McKay in accordance with its terms.

 

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ARTICLE 3 — FORMATION AND PURPOSE

3.1 Formation of Joint Venture

The Participants enter into and form the Joint Venture for the limited purpose and scope
set forth in this Agreement.

3.2 Name of Joint Venture

The name of the Joint Venture shall be “Noramac Joint Venture” and the business of the Joint
Venture shall be conducted solely under such name and all assets of the Joint Venture shall be held
by the Corporation under such name.

3.3 Use of Trustee Corporation

The Corporation acknowledges that it will act as nominee and trustee for the Participants each as
to their Proportionate Interest and that it will hold title to any assets purchased by the Joint
Venture and to any Contracts, together with entitlement to payment thereunder, as bare trustee for
the Participants. The Corporation further acknowledges that its purpose is to implement decisions
of the Joint Venture as relayed to it by the Management Committee.

3.4 Purpose and Scope of Joint Venture

The purpose of the Joint Venture shall be limited to submitting proposals for, and if successful,
performing Contracts pursuant to the terms of this Agreement. If either Participant wishes to bid
on any new Project, that Participant shall bring the tender for the Project to the Management
Committee for consideration. The Management Committee shall have the discretion to decide to
submit a tender for any Project. Except as otherwise agreed in writing by the Participants no
other projects shall be undertaken by the Participants through this Joint Venture. Nothing
provided in this Agreement shall prohibit or restrict any Participant from undertaking and
performing during the term of the Joint Venture, for its own account or with any other person,
firm or corporation, any work for existing customers that are currently on a Participant’s
customer list other than the Work, whether or not such work is similar to the Work.

3.5 Not a Partnership

The Participants disclaim any intention to create a partnership and nothing in this Agreement
shall constitute the Participants as partners nor, except as expressly set forth in this
Agreement, constitute any Participant as the agent of the other. Except as otherwise expressly and
specifically provided in this Agreement, no Participant shall be, or by reason of any provision
herein contained be deemed to be, the agent or legal representative of the other, whether for
purposes of this Agreement or otherwise, nor shall any Participant have any power or authority to
act for or assume any obligations or responsibility on behalf of the other Participant.

3.6 Extent of Holdings

The Participants acknowledge that the beneficial owners of the Class A Common shares of the
Corporation are as follows:

 

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	 	(i)	 	NACG — 49 Class A common shares (49%); and
	 
	 	(ii)	 	Fort McKay— 51 Class A common shares (51%).

No further shares in the Corporation shall be created, subscribed, paid for or issued without the
approval of the Participants.

3.7 Tenders and Proposals

The Manager shall prepare tenders or proposals for the award of the Contracts on behalf of the
Joint Venture, the terms of which shall be subject to the unanimous consent of the Participants
and shall be based upon estimations provided by estimators selected by NACG. After the preparation
and submission of proposals, the Participants shall be jointly and severally bound by the
provisions of any proposal that has been submitted to an Owner and neither of them shall seek to
vary the same without previous written consent of the other. Each Participant shall bear its own
costs incurred by it in the preparation of a proposal, save and except for costs associated with
payments to employees seconded to the Joint Venture by either or both of NACG or Fort McKay, which
costs shall be Joint Venture Costs. During the period between submission of a proposal and the
award of a Contract to the Joint Venture, the Participants shall, at their own expense unless
otherwise determined by the Management Committee, perform continuing planning and preparation
tasks and participate in the negotiation process, devoting appropriate personnel and resources to
the effort.

3.8 Joint Venture Restructure

If during pre-contract negotiations with respect to a Project, the Owner indicates the
Joint Venture should be restructured or a different form should be used, then the Participants
agree to negotiate in good faith to arrive at a mutually satisfactory approach to enhance the
ability of the Joint Venture to secure and perform the Contract, subject always to the proviso
that any restructuring shall preserve Fort McKay’s existing tax status.

3.9 Execution of Contracts and Documents

When the Joint Venture is selected for the award of a Contract, each Participant agrees to cause
its authorized officer or representative to sign, in the name and on behalf of the Corporation,
the Contract promptly upon its being tendered for execution. When authority to enter agreements is
delegated to the Manager in accordance with Article 5, the Manager may execute any such agreement
on the name of the Corporation and that agreement will be binding on the Joint Venture.

3.10 Proportionate Interest in Projects

During any tender period for Contracts either Participant may bring to the Joint Venture a tender
for the Contract in which case the Management Committee shall consider the participation of the
Joint Venture in the Contract, the percentage interest of each Participant in the Contract, and the
terms upon which the tender will be made and the Contract, if awarded, will be performed. The
following shall apply, unless otherwise agreed to by the Management Committee at the time of
tender:

 

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	 	(a)	 	Contracts of a tender value of less than $10,000,000.00 shall be executed
and performed by the Participants in accordance with the terms of this Joint
Venture Agreement, according to the interest determined by the
Management Committee at
the time of tender; and
	 
	 	(b)	 	Contracts of a tender value greater than $10,000,000.00 and less
than $100,000,000.00 and having an expected duration of less than 2 years shall:

	 	(i)	 	where the Contract requires a parent guarantee or
performance bond, be subcontracted to NACG or an affiliate designated by it
on terms identical to the Contract and the entire Contract shall be
performed pursuant to the terms of that subcontract, with payment to Fort
McKay Construction Ltd. of a fee to be agreed by the Management Committee at
the time of tender; or
	 
	 	(ii)	 	where the Contract does not require a parent guarantee or
performance bond, be executed and performed by the Participants in accordance
with the terms of this Joint Venture Agreement, according to the interest
determined by the Management Committee at the time of tender; and

	 	(c)	 	Contracts for long term maintenance projects negotiated by the Joint Venture
with owning companies shall be performed equally, or in such proportions as
mutually agreed, by the Participants. Any equipment required to be purchased or leased
in order to fulfil such a Contract is to be purchased or leased by the
individual Participants and contributed and dedicated to the Joint Venture;
	 
	 	(d)	 	All other Contracts shall be tendered, executed and performed on the terms to
be agreed by the Management Committee at the time of tender, with the
percentage and
terms of participation of each Participant to be determined by the Management
Committee at the time of tender; and
	 
	 	(e)	 	All Contracts for Projects performed in whole or in part on the existing
reserve lands of the Fort McKay First Nation (the “First Nation”) or on those lands in
the Province of Alberta to be transferred by the Province to Canada to be set apart
as one or more reserves for the use and benefit of the First Nation pursuant to
the Settlement Agreement dated for reference the 3rd day of September, 2003
between Her Majesty the Queen in Right of Canada and the First Nation, with a
fee payable on such Contracts to Fort McKay Construction Ltd. in an amount to
be determined by the Management Committee at the time of tender.

Where the Management Committee either determines not to tender for a Contract through the Joint
Venture, or fails to reach agreement on the terms upon which the Joint Venture shall tender for a
Contract, then either Participant may pursue the Contract without hindrance, interference or
participation by the other Participant, provided that each Participant agrees not to pursue the
Contract as a member of another joint venture.

3.11 Rights and Liabilities of Joint Venturers

The Participants acknowledge and agree that, if required by an Owner, their obligations and
liabilities to the Owner incurred under a Contract awarded to the Joint Venture shall be joint and
several but that, as between the Participants, their respective rights and obligations are several

 

- 10 -

and as set forth in this Agreement. If either Participant is required under the Contract, or
otherwise, to carry out any obligation or to discharge any liability which exceeds in scope or
amount the Proportionate Interest of that Participant, that Participant may require the other
Participant to contribute thereto in proportion to its Proportionate Interest.

ARTICLE 4 — CAPITAL CONTRIBUTIONS, GUARANTEES AND DISTRIBUTION

4.1 Participants to Provide Funding

Each Participant shall advance to the Corporation, from time to time, such amounts as
requested by the Manager, for the performance of a Project. The Manager shall give notice to each
Participant specifying the amount of contribution required of each Participant, the date by which
the contribution is to be made and whether the contribution is to be made by way of

	 	(a)	 	a loan or advance to the Joint Venture;
	 
	 	(b)	 	a guarantee of the obligations of the Joint Venture to a financial institution; or
	 
	 	(c)	 	a combination of the foregoing.

All contributions required of a Participant shall be in proportion to each Participant’s
Proportionate Interest.

4.2 Excess Funded Amount

In the event that one Participant in this Section (the “Non-Contributing Participant”) fails
to advance monies when required pursuant to Section 4.1 or Section 6.13, the other Participant
shall be entitled, but not obligated, to contribute on behalf of the Non-Contributing Participant
all or any part of the amount in default. The value of any Excess Funded Amount so advanced on
behalf of the Non-Contributing Participant shall be payable by the Non-Contributing Participant to
the other Participant on demand together with compound interest at a per annum rate equal to the
Prime Rate plus four (4%) percent in excess of the Prime Rate calculated monthly from the date of
advance of the Excess Funded Amount to the date of its repayment. The Non-Contributing Participant
grants an irrevocable, unconditional and absolute assignment of and charge in favour of the other
Participant on its Proportionate Interest in the Net Cash Flow to secure repayment of such Excess
Funded Amount plus interest as aforesaid. The Non-Contributing Participant authorizes the
Corporation and the Management Committee to pay all of its Proportionate Interest in the Net Cash
Flow to the other Participant, to be applied firstly against interest and secondly in reduction of
the principal amount of the Excess Funded Amount until the Excess Funded Amount plus interest has
been paid in full. If the Excess Funded Amount plus interest has not been paid in full within
thirty (30) days after the end of the next fiscal quarter, the Non-Contributing Participant shall
be deemed to be in Default under this Agreement.

4.3 Dispute as to Financing

Any dispute between the Participants as to the amount of any contribution, advance or
retention made or required to be made, the rate or calculation of any interest or the granting of
any charge

 

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contemplated by this Article 4, shall be resolved by the Management Committee at the request of
either Participant.

4.4 Proportionate Interest

Except as otherwise provided in this Agreement, or adjusted pursuant to Section 7.2, the
Interests of the Participants in the assets and Revenues of a Project and their obligations with
respect to the liabilities arising out of that Project and the Joint Venture Costs incurred as a
result of a Project shall be equal to their respective Proportionate Interests in that Project.
Each of the Participants shall assume and bear the obligations and liabilities of the Joint
Venture, including any losses that the Joint Venture may sustain in a Project, in proportion to
the Participant’s Proportionate Interest.

4.5 Capital Assets

Where items of a capital nature are required to be purchased by the Joint Venture for the
performance of the Work, the Manager shall obtain the prior approval of the Management Committee
and the cost of such capital items shall be charged to the Joint Venture as Joint Venture Costs
and shall be purchased by the Corporation as nominee for the Joint Venture. Alternatively, the
Management Committee may elect that facilities and equipment owned by a Participant may be rented
to the Joint Venture at the rates to be agreed at the time of tender or proposal and the costs of
such rentals payable to the Participants shall be Joint Venture Costs.

4.6 Net Cash Flow

Net Cash Flow means that amount, if any, computed in respect of each fiscal quarter of the
Joint Venture, by which:

	 	(a)	 	the aggregate of:

	 	(i)	 	the cash flow received from Contracts and the gross amount
of all other payments or cash received by the Joint Venture with respect to
that Contract in the fiscal quarter, if any;
	 
	 	(ii)	 	the amount of the reserves, if any, carried forward by
the Joint Venture from the previous fiscal quarter;

	 	(b)	 	exceeds the aggregate of:

	 	(i)	 	the amounts paid in the fiscal quarter in respect of Joint
Venture Costs; and
	 
	 	(ii)	 	a reasonable reserve for operation of the Joint Venture
for the ensuing fiscal periods as established by the Management Committee.

4.7 Distribution of Net Cash Flow

Within thirty (30) days after the close of each fiscal quarter of the Joint Venture, the Net
Cash Flow for the preceding quarter shall be distributed in accordance with the Proportionate
Interests of the Participants but any such distribution shall be subject to any redirection of
proceeds

 

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provided for pursuant to any assignments and charges granted under Section 4.2. In the
event of any dispute between the Participants as to availability, application or distribution of
moneys pursuant to the provisions of this Section, or as to the calculation of the amount of
moneys available for distribution, such dispute shall be resolved by the Management Committee.

ARTICLE 5 — MANAGER

5.1 NACG as Manager

NACG shall be the Manager for the Projects and as Manager shall co-ordinate and administer the
affairs of the Joint Venture subject to the overriding authority and control of the Management
Committee. Subject to the authority and control of the Management Committee and specifically
Sections 6.2 and 6.3, the Manager shall have the power and authority to:

	 	(a)	 	provide all necessary office and administrative support to the Joint Venture
until such time as the Joint Venture has developed its own infrastructure;
	 
	 	(b)	 	coordinate and perform all negotiations with Owners and
represent the Participants vis-á-vis Owners and liaise with Owners in all matters
concerning the negotiation of and the carrying out of Contracts;
	 
	 	(c)	 	so far as reasonably necessary for the proper and expeditious carrying out of
the Work, liaise with and co-ordinate the activities of the Manager and third parties;
	 
	 	(d)	 	procure the provision of such technical assistance as is, from time to
time, necessary or desirable;
	 
	 	(e)	 	call for payment by the Participants of such Capital Contributions as is, from
time to time, necessary;
	 
	 	(f)	 	convene meetings of the Management Committee to be held in
accordance with the
provisions of Article 6 and write the minutes of meetings of the
Management Committee
and distribute copies to each member;
	 
	 	(g)	 	provide bookkeeping, accounting, cost control and reporting systems for use
by the Joint Venture;
	 
	 	(h)	 	set up and operate a filing system and archives for the correspondence,
accounts and other documents of the Joint Venture for the legally required period;
	 
	 	(i)	 	arrange and maintain bank accounts, insurance, guarantees, and other financial
requirements for the operation of the Joint Venture, including but not limited to,
acting as a signing authority on any bank accounts of the Joint Venture;
	 
	 	(j)	 	procure the assistance of personnel to perform the estimating and execution of
Projects, which may include project managers, estimators, engineers, safety
specialists, quantity control personnel, quality control personnel, cost control
personnel and other personnel as are, from time to time, necessary or desirable;

 

- 13 -

	 	(k)	 	hire employees or terminate the employment of employees supplied for a
Project as is, from time to time, necessary or desirable;
	 
	 	(l)	 	procure any supplies for the purpose of carrying out Work on a Project as may,
from time to time, be necessary or desirable;
	 
	 	(m)	 	determine the fitness for the purpose intended of any equipment provided by
either or both of the Participants to the Joint Venture;
	 
	 	(n)	 	consult and advise the Management Committee as to the appropriate percentage
of profit margin to apply to a Project, according to the category of costs included in
a Project and according to the risks associated with a Project;
	 
	 	(o)	 	secure suitable administrative office space and shop space for storage of
equipment, fuel and lubrication materials in the Fort McKay Industrial Park if space is
available or in another location approved by the Management Committee;
	 
	 	(p)	 	provide payroll and accounting functions to the Joint Venture;
	 
	 	(q)	 	provide access to NACG’s safety, quality, environmental, estimating and
costing systems for Joint Venture purposes;
	 
	 	(r)	 	meet with representatives of the Owners as required from time to time;
	 
	 	(s)	 	develop environmental, health and safety and employee harassment policies and
any other policy deemed by the Management Committee to be necessary or desirable for
the Joint Venture;
	 
	 	(t)	 	call upon the Participants for a contribution under Section 4.1;
	 
	 	(u)	 	approve and employ auditors or accounting advisors and solicitors as required;
	 
	 	(v)	 	establish the rental rates for equipment required from either of the
Participants for the Project with the rates to be the same for equipment of equal or
substantially similar capacity contributed by either Participant;
	 
	 	(w)	 	execute any tender or submission of a proposal for a Contract;
	 
	 	(x)	 	negotiate a major extension of the scope of Work unless the Joint Venture is
obligated under the Contract for the Work in question to extend its scope; and
	 
	 	(y)	 	approve the letting of all subcontracts.

Any and all out of pocket expenses and disbursements incurred in the provision of the services and
exercise of the powers and authority as aforesaid shall be to the account of the Joint Venture and
shall be deemed to be Joint Venture Costs.

 

- 14 -

ARTICLE
6 — MANAGEMENT OF JOINT VENTURE

6.1 Management Committee

The affairs of the Joint Venture shall be managed and all decisions and determinations of the
Participants with respect to the Joint Venture shall be made by a Management Committee. Except
where expressly provided to the contrary in this Agreement, all decisions with respect to the
management and control of the Joint Venture that are approved by the Management Committee shall be
binding on the Joint Venture and each of the Participants. The Management Committee shall consist
of four (4) representatives, two representatives appointed by NACG and two representatives
appointed by Fort McKay unless otherwise agreed in writing by the Participants. Each Participant
may, at any time and from time to time, by written notice to the other, replace its representatives
on the Management Committee and any representatives so replaced shall be deemed to have resigned
from the Management Committee upon the giving of such notice.

NACG hereby appoints as its initial representatives to the Management Committee the following:
Dave Tien and Bill Koehn.

Fort McKay hereby appoints as its initial representatives to Management Committee the following:

-  The Chief of the Fort McKay First Nation and

 -  The General Manager of the Fort McKay Group of Companies

Meetings of the Management Committee shall be held at such place and at such time as called by the
Manager and in any event, not less than once per quarter throughout the term of this Agreement.
Notice of each meeting shall be deemed to have been given to each representative if not less than
seven (7) days prior thereto notice of the meeting has been given to the Participants in the
manner provided in this Agreement; provided that no notice of a meeting shall be necessary if all
members of the Management Committee are present and waive notice thereof or if those absent waive
notice of the meeting or otherwise consent to the holding thereof A resolution in writing signed
by all of the members of the Management Committee shall be as valid as if it had been passed at a
meeting of the Management Committee.

Three (3) members of the Management Committee shall constitute a quorum for the transaction of
business at any meeting of the Management Committee. Each member of the Management Committee shall
be entitled to one (1) vote in respect of each question submitted to the Management Committee
notwithstanding the number of members present at any Management Committee meeting. In the event of
a tie vote, the matter shall be referred to arbitration in accordance with Section 6.5 of this
Agreement. In that instance, the Manager shall be entitled to continue to direct Work on ongoing
Projects in accordance with the terms of Contracts until a final decision is rendered in the
arbitration process.

The members of the Management Committee may participate in a meeting of the Management Committee
by means of such telephone or other communications facilities as permit all persons participating
in the meeting to hear each other and a member participating in such a meeting by such means is
deemed to be present at the meeting for all purposes of this Agreement.

 

- 15 -

The members of the Management Committee shall not be required to devote their full time to the
business of the Joint Venture but only such time as shall reasonably be necessary to perform their
duties hereunder.

6.2 Major Decisions

No act shall be taken, sum expended, decision made or obligation incurred by the Participants
or the Joint Venture with respect to any matter within the scope of the major decisions enumerated
below, unless approved by a majority of the representatives present at a meeting of the Management
Committee:

	 	(a)	 	other than as provided for in Section 4.7, determining whether or not
distributions should be made to the Participants;
	 
	 	(b)	 	accepting a commitment for Joint Venture financing, a sale or other transfer
or allowing Encumbrances on Joint Venture assets or making an
expenditure or incurring
any obligation by or on behalf of the Joint Venture involving a sum
in excess of One
Hundred Thousand ($100,000.00) Dollars or an aggregate amount of One Hundred Thousand
($100,000.00) Dollars in any one fiscal quarter, except for expenditures made and
obligations incurred pursuant to and specifically set forth in any budget approved by
the Management Committee;
	 
	 	(c)	 	commencement or continuation of any legal action relating to the Joint Venture;
	 
	 	(d)	 	approve the annual operating budget of the Joint Venture; and
	 
	 	(e)	 	any other decision or action which shall or may materially affect the Joint
Venture or its assets or operations.

6.3 Decisions requiring unanimity

No act shall be taken, sum expended, decision made or obligation incurred by the Participants
or the Joint Venture with respect to the following without unanimous approval by the
representatives of the Management Committee:

	 	(a)	 	amendment of this Agreement; and
	 
	 	(b)	 	disposition of the equipment, tools or salvageable materials of the Joint Venture.

6.4 Additional Management Committee Responsibilities

Without limiting any other specific provision of this Agreement or the generality of Section
6.1, the Management Committee shall:

	 	(a)	 	approve the letting of all subcontracts for amounts greater than a
threshold established by the Management Committee;
	 
	 	(b)	 	review monthly performance of the Joint Venture against the budget;
	 
	 	(c)	 	develop policies to be followed by the Participants:

 

- 16 -

	 	(i)	 	to review for approval the Manager’s recommendations in such
matters as the overall plan for execution of the Work, determination of the
amount of working capital required, the timing of calls for Capital
Contributions, the determination of requirements and plans for the
acquisition of any plant, equipment or major material items and the approval
of salary schedules and the return of working capital advanced by the
Participants and the distribution of profits earned;
	 
	 	(ii)	 	to delegate the authority to act for and bind the Participants
in connection with the performance of the Work. The delegation of authority to
either one of the Participants, or to any other person or persons may be
revoked at any time;
	 
	 	(iii)	 	to receive and review reports on the progress of the Work from
the Manager. The Manager shall meet with the Management Committee when
requested by said committee;
	 
	 	(iv)	 	to determine the amount of any reserves required for any
warranty period in respect of any unsettled claims, demands or other
contingents of the Joint Venture relating to the Work; and
	 
	 	(v)	 	to change the year end for the Joint Venture.

6.5 Decisions Binding

The Participants acknowledge and agree that all decisions of the Management Committee shall be
made in good faith and in the best interests of the Joint Venture. All decisions of the Management
Committee shall be final and binding on the Participants. Where one of the Participants considers
that a Major Decision has not been made in good faith and for the best interests of the Joint
Venture, that decision may be referred to and shall be resolved by arbitration in the manner
provided in this Article. The Major Decision will continue to be final and binding on the
Participants until the arbitration process is completed.

Notice of arbitration of a Major Decision of the Management Committee shall be given within ten
(10) days of the date after the decision is made by the Participant seeking arbitration serving
written notice on the other Participant and on the Manager.

A Major Decision of the Management Committee that is the subject of arbitration shall initially be
referred to the president of each Participant who shall seek to resolve the dispute through good
faith negotiation.

In the event the dispute has not been resolved between the presidents of the Participants within
ten (10) days of the notice of arbitration having been delivered, then the dispute shall be
referred for resolution to a single arbitrator chosen by the Participants, failing which either
Participant may apply to a judge of the Court of Queen’s Bench of Alberta for appointment of an
arbitrator in the manner provided by the Arbitration Act (Alberta).

The arbitrator shall first determine if the Major Decision has not been made in good faith and in
the best interests of the Joint Venture. If the arbitrator determines that the Major Decision was

 

- 17 -

made in good faith and in the best interests of the Joint Venture, then the decision of the
Management Committee shall be affirmed. In the event that the arbitrator determines that the Major
Decision of the Management Committee was not made in good faith and in the best interests of the
Joint Venture, then the arbitrator shall proceed to determine the dispute between the Participants
and may substitute his or her decision for that of the Management Committee, which decision shall
be final and binding on the Participants.

The arbitrator, with the consent of the Participants, may also act as a mediator in seeking to
resolve the dispute between the Participants.

The arbitrator shall determine the rules to apply to the arbitration process but the Participants
agree to appear without counsel and to proceed as expeditiously as possible based only on the
materials available to the Management Committee at the time the Major Decision was made.

6.6 Limitation of Liability

No member of the Management Committee shall be liable for the acts, receipts, neglects or defaults
of any other member of the Management Committee or for any loss, damage or expense of any Person
through the insufficiency or deficiency of title to any property acquired by order of the
Participants or for the insufficiency or deficiency of any security in or upon which any of the
moneys of the Participants shall be invested or for any loss or damage arising from the
bankruptcy, insolvency, or tortious act of any Person with whom any moneys, securities or effects
of the Participants shall be deposited or for any loss occasioned by any error of judgment or
oversight on the part of any member of the Management Committee, or for any loss, damage or
misfortune whatever which may happen in the execution of the duties of the Management Committee
member or in relation thereto unless the same shall happen through the willful misconduct of such
Management Committee member.

6.7 Indemnity

Every Management Committee member and his or her respective heirs, executors and administrators
and the estate and effects of each shall, from time to time and at all times, be indemnified and
saved harmless by the Joint Venture from and against:

	 	(a)	 	all liabilities, costs, charges and expenses (including costs on a solicitor
and his own client full indemnity basis) whatsoever that any
Management Committee member
sustains or incurs in or about any action, suit or proceeding that is brought, commenced
or prosecuted against that Management Committee member for or in respect of any act,
deed, matter or thing whatsoever made, committed, done or permitted by such Management
Committee member to be done in or about the lawful execution of the duties of the office
of the Management Committee member or alleged to be so done; and
	 
	 	(b)	 	all liabilities, other costs, charges or expenses which are approved by
the Management Committee that any Management Committee member
sustains or incurs in or
about or in relation to the affairs of the Joint Venture;

except such liabilities, costs, charges or expenses as are occasioned by the willful misconduct of
the Management Committee member.

 

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6.8 Banking

The Joint Venture shall operate and maintain in the name of the Corporation such bank
account or accounts as the Manager may determine. All cash Capital Contributions made by the
Participants and all of the funds received by the Manager, the Joint Venture or by either of the
Participants on behalf of the Joint Venture in connection with the performance of any Contract
shall be deposited in such bank account or accounts. Withdrawals may be made by cheque or draft or
other instrument in the form determined by the Manager, from time to time. All persons authorized
to draw against the funds of the Joint Venture shall be bonded in such amounts as the Management
Committee shall determine (if required). The premiums on any such bonds shall be paid by the Joint
Venture as Joint Venture Costs. Neither Participant will unreasonably restrain or refuse to
authorize withdrawal of funds for payment of proper expenses relating to Work.

6.9 Withdrawals

Unless otherwise previously agreed in writing by the Management Committee, no payments shall be
made or monies withdrawn from any such bank account or accounts except for the purposes of the
Joint Venture. Monies not immediately required for the purposes of the Joint Venture may be
invested in securities or other investments in the name of the Corporation on behalf of the Joint
Venture. The Management Committee shall provide to the Manager a listing of acceptable securities
and investments. Under no circumstances shall such securities or investments be stocks, bonds, or
other instruments of debt and equity issued on behalf of any of the Participants or affiliated
companies to the Participants. No part of any funds deposited in any bank account or accounts of
the Joint Venture shall be paid or returned to any of the Participants except as specified herein
or as may otherwise be determined by the Management Committee.

6.10 Borrowing

No money shall be borrowed or financing arranged for the account of the Joint Venture, nor shall
any assets of the Joint Venture be charged, assigned, mortgaged, pledged or hypothecated, unless
approved by the Management Committee. If any monies are so borrowed, they shall be repaid in full
prior to return of any working capital and distribution of Net Cash Flow.

6.11 Fiscal Year

The fiscal year of the Joint Venture shall end on the last day of March in each year.

6.12 Payments to Participants

Except as may be expressly provided for herein or hereafter approved by the Management Committee,
no payment shall be made from the funds of the Joint Venture to any of the Participants or any
member, director, officer or employee of any Participant for the services of any such person
hereunder in connection with the Joint Venture.

Each Participant shall be entitled to reimbursement of all actual, reasonable and appropriate
expenditures which are approved in advance by the Management Committee and made by the Participant
on behalf of the Joint Venture in accordance with this Agreement. Except as expressly provided
herein or hereafter approved by the Management Committee, no Participant shall make any payments
or incur any expenses on behalf of the Joint Venture nor shall it be

 

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entitled to any compensation or reimbursement from the Joint Venture or the other Participant for
expenses incurred in connection with the formation, business or affairs of the Joint Venture or
for any of the internal or overhead costs of such Participant.

6.13 Taxes

Each Participant shall be solely responsible for any taxes, fees or other charges levied or
imposed by any taxing authority directly on it or on its revenues from, or its share of any profits
of or distribution by, the Joint Venture, it being understood that any taxes, fees, or charges
levied or imposed on the Joint Venture itself shall be treated as Joint Venture Costs.

The Participants covenant and agree to file a joint venture election under Section 273 of the
Excise Tax Act (Canada) (the “Election”). The Manager agrees to be named as the Joint Venture
operator for the purposes of the Election and shall report and remit Goods and Services Tax (“GST”)
to the Canada Customs and Revenue Agency (“CCRA”) as the resources of the Joint Venture allow. In
the event that the resources of the Joint Venture are insufficient, each Participant covenants and
agrees that it shall be responsible for and shall pay to the CCRA its proportionate share of any
GST that is assessed or reassessed against the Joint Venture.

The Manager shall be reimbursed the costs associated with the funding of the GST.

6.14 Accounting and Records

Adequate books of account shall be maintained by and at the expense of the Joint Venture at the
offices of NACG in accordance with applicable generally accepted management accounting standards
consistently applied and such books of account may be examined by either of the Participants at any
and all reasonable times. One uniform accounting system shall be employed for all books of account
and the books of account shall truly and correctly reflect all transactions affecting the Joint
Venture and shall further reflect adequate systems of internal control maintained by the Joint
Venture. Reports of the financial condition of the Joint Venture and the progress of all Projects
shall be made to each Participant monthly and at such other times as may be reasonably requested.

An audit of or accounting advisors report with respect to the Joint Venture books and records and a
report thereon shall be made at the expense of the Joint Venture to the Management Committee and to
each Participant as soon as practicable following the close of each fiscal year of the Joint
Venture by an independent firm of chartered accountants as may be approved by the Management
Committee. Such reports shall properly disclose the financial condition and operations of the Joint
Venture. Notwithstanding the foregoing, either Participant may elect to have the financial books
and records of the Joint Venture audited by an independent auditor chosen by the requesting
Participant. The cost of any such audit shall be borne by the Participant requesting the audit. The
auditor so chosen shall attend at the business premises of the Joint Venture to conduct the audit
and shall have access to all Joint Venture books and records for the purposes of conducting the
audit.

Any Participant which claims reimbursement of Joint Venture Costs shall disclose and make
available to the other Participant and to the auditor or accounting advisor of the Joint Venture
all books of account and accounting records and other documentation reasonably required to
substantiate its claim.

 

- 20 -

The records and documentation shall be preserved in good order until the final accounting and
settlement prescribed in Section 10.2 has been completed. Except as provided in this Section,
nothing in this Agreement shall be construed to give any Participant the right to examine or compel
the disclosure of any books of account or other records of the other Participant or any information
contained therein.

6.15 Insurance and Bonds

The Joint Venture shall obtain and maintain or the Corporation shall obtain and maintain on
behalf of the Joint Venture and at the expense of the Joint Venture comprehensive general
liability (bodily injury and property damage) and such other insurance coverage with such carriers
and for such limits as may be required by Contracts or as may be determined by the Management
Committee. The insurance shall name each of the Joint Venture, the Corporation and the individual
Participants as insureds. Each Participant shall waive or cause to be waived any rights of
subrogation against the other Participant with respect to any insured loss arising out of or
related to the Joint Venture’s performance of the Contract, except that the Participants shall
retain their accrued rights of contribution against the other Participant under this Agreement.

All contract performance, bid bonds, performance bonds, payment bonds and other bonds that may be
required by the Joint Venture shall, to the extent possible, be obtained and maintained in the name
of the Joint Venture by the Manager. Each shall execute such indemnity agreements and other
agreements as may be required by the companies writing the bonds. With respect to the execution of
any bonds, any applications for bonds or any indemnity agreements or other documents pertaining to
the indemnification of sureties, the liabilities of each Participant thereunder shall, as between
the Participants, be in the same proportion as their Proportionate Interests in the Joint Venture
even if both Participants are not signatories to the bonds, indemnity agreements or other
documents. Where the required bonding is obtained solely by NACG, then if requested by NACG, the
entire Work shall be subcontracted by Noramac to NACG, or an affiliate designated by it.

All premiums for bonds and insurance required on Projects and in the name of the Corporation on
behalf of the Joint Venture shall be a Joint Venture Cost.

The insurance broker for all bonds and insurance required by the Joint Venture shall be determined
by the Manager.

ARTICLE 7 — JOINT VENTURE TRANSACTIONS WITH THE PARTICIPANTS

7.1 Assignment of Personnel

The Participants may assign personnel from their respective organizations to fill certain
management or key positions on the staff of the Joint Venture at the direction of the Management
Committee. NACG shall supply, hire and make available to the Joint Venture as many supervisory and
managerial personnel as shall reasonably be required in order to successfully perform a Contract,
as determined by the Management Committee. Fort McKay shall supply, hire and make available to the
Joint Venture as many skilled or trainable salaried, hourly and other personnel as shall reasonably
be required in order to successfully perform a Contract, as determined by the Management Committee.
Such personnel shall receive, or the employer Participant shall be entitled to be reimbursed for,
such benefits and salary as may be approved by

 

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the Management Committee. The Corporation may act as the agent of the Joint Venture to pay
such benefits and salary to any employee engaged by the Joint Venture and to remit any deductions
at source and withholdings from any employees compensation to the relevant governmental authority
on behalf of the Joint Venture. All such personnel shall undertake to the Joint Venture in their
employment on the Project to act with a view to the best interests of the Joint Venture. The
Manager agrees to use its best efforts to train, apprentice and develop Fort McKay First Nation
members into supervisory, maintenance and management personnel.

The Participants acknowledge that NACG’s employees are members of various unions (collectively,
the “Unions”) and that Fort McKay’s employees are not unionized. NACG agrees to use its best
efforts to ensure that the Unions do not approach employees of Fort McKay who are supplied to the
Joint Venture with a view to organizing a labour union of Fort McKay employees.

7.2 Operating Equipment and Adjustment of Proportionate Interest

All tools and equipment except small tools that shall be purchased by the Joint Venture in the
name of the Corporation shall be purchased or rented from the Participants by the Joint Venture in
the name of the Corporation at the prices and rates established by NACG from time to time.

Each Participant shall supply the percentage of equipment agreed by the Management Committee at
the time of tender or proposal, which equipment shall include but not be limited to, vehicles,
buses and service vehicles.

If either Participant cannot supply that percentage of equipment determined as its percentage by
the Management Committee at the time of tender or proposal, then the other Participant has the
option to supply the balance of equipment required for that Project and the Proportionate
Interests of the Participants in the Project shall be adjusted accordingly so that the Interests
correspond with the percentage of equipment supplied by each Participant in order to perform the
Project.

Each Participant shall supply equipment to the Joint Venture at its full rate excluding operator,
fuel and lubes, minor running repairs and field service costs. The Joint Venture may apply
additional markup to the cost of equipment and to all other Joint Venture Costs at the time that it
submits a tender for a Contract. The equipment rates for the same equipment shall be the same for
each Participant and shall be adjusted by mutual agreement on an annual basis. If necessary, the
Participants may agree to adjust the equipment rates to be charged for a specific Project. On
completion of the Project and payment for the Work by the Owner, the additional amount paid to the
Joint Venture over and above the Joint Venture’s cost of the equipment shall be paid to the
Participants according to their Proportionate Interest in the Joint Venture.

For equipment and supplies provided by either Participant, any repairs or overhaul necessary on
any item of equipment shall be made at the cost of the Participant that owns the equipment, with
the exception of the cost of any repairs to the equipment that are the result of negligence or
abuse occurring during operation by the Joint Venture. For equipment that is provided by either
Participant and used for long term Projects of three years or longer in duration, the Management
Committee may agree to pay for repairs and overhauls to equipment as a Joint Venture Cost. At the
conclusion of such a long term Project, the equipment used shall be disposed of and the proceeds
of the sale shall be paid to each Participant according to its Proportionate Interest.

 

- 22 -

Any costs associated with transportation costs of the equipment from its present location to
a Project and for its return to its location or origin or to a location specified by the
Participant that owns the equipment shall be Joint Venture Costs.

The Manager shall procure a communications system to allow remote communication on terms
satisfactory to the Management Committee, and the cost of procuring such a radio system shall be a
joint Venture Cost.

7.3 Supplies

The Manager, on behalf of the Joint Venture, shall procure and supply all fuel, oil,
lubricants, regularly scheduled maintenance and minor running repairs necessary for the operation
of all equipment during a Project and all costs associated with such supplies, without any markup
or additional consideration shall, be Joint Venture Costs.

7.4 Termination

On the termination of this Agreement, unless otherwise agreed to in writing by the
Participants, all equipment owned by NACG shall be returned to NACG and all equipment owned by
Fort McKay shall be returned to Fort McKay. All equipment, if any, owned by the Joint Venture in
the name of the Joint Venture shall be sold and the proceeds divided equally between the
Participants.

7.5 Insurance

All insurance required for equipment owned by NACG and rented to the Joint Venture in the name
of the Corporation shall be the responsibility of NACG, with the costs of such insurance to be
included in the equipment rate for that equipment and paid as a Joint Venture Cost. All insurance
required for equipment owned by Fort McKay and rented to the Joint Venture in the name of the
Corporation shall be the responsibility of Fort McKay, with the costs of such insurance to be
included in the equipment rate for that equipment and paid as a Joint Venture Cost. All other
insurance shall be at the expense of the Joint Venture.

7.6 Use of Technical Data and Information

In connection with the Joint Venture, certain information, data and material of a proprietary
nature, both technical and financial, may be transmitted from one Participant to another. For the
purpose of this Joint Venture, any such information, data and material disclosed by one
Participant to another which is in writing and appropriately identified in writing as being
proprietary shall be deemed to be proprietary information of the disclosing Participant. The
recipient Participant agrees that it shall treat such information as proprietary information. In
the event proprietary information is orally communicated by one Participant to another, such
orally communicated proprietary information must be reduced to writing and identified as being
proprietary and submitted to the other Participant within ten (10) days after such oral
communication in order to preserve its proprietary status. The recipient Participant further
agrees not to use such proprietary information for any purpose whatsoever without the prior
written permission of the disclosing Participant.

The foregoing restrictions on use and disclosure of proprietary information shall not apply:

 

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	 	(a)	 	if such information is or becomes available to the public from a source other
than
the recipient Participant;
	 
	 	(b)	 	if such information was previously known by the recipient
Participant
independently of the disclosing Participant;
	 
	 	(c)	 	with respect to use or disclosure of such information, if such disclosure or
use is
with the written approval of the disclosing Participant;
	 
	 	(d)	 	if the recipient Participant lawfully obtained or obtains such information from
a
third party without restriction or under circumstances permitting its disclosure by
the recipient Participant to others;
	 
	 	(e)	 	if such information was previously independently developed by the recipient
Participant;
	 
	 	(f)	 	after the expiration of three (3) years from the termination of the Joint Venture; or
	 
	 	(g)	 	with respect to any information required to be disclosed by a Participant by a
court or tribunal having jurisdiction over the disclosing Participant, in which
event, prior to disclosure, the disclosing Participant shall give such reasonable
notice to the other Participant of the requirement to disclose, as well as enable
such other Participant to appear and object to the disclosure.

None of the Participants shall be liable for the inadvertent or accidental disclosure of such
proprietary information if such disclosure occurs despite the exercise of the same degree of care
as such Participant normally takes to preserve and safeguard its own proprietary information.

Upon termination of this Joint Venture, all documents containing proprietary information and all
copies made thereof in the Participants’ possession shall be returned to the disclosing
Participant.

ARTICLE 8 — TRANSFER OR ASSIGNMENT OF JOINT VENTURE INTEREST

8.1 Prohibited Transfers

Except as otherwise expressly permitted herein and then only with the written consent of the
Owner if required under a Contract, and except as necessary to be pledged, mortgaged or charged to
a financial institution to provide funding to the Joint Venture as herein contemplated, no
Participant may sell, transfer, assign, exchange, give, demise, bequeath, alienate or otherwise
dispose of, or mortgage, hypothecate, charge, pledge or otherwise encumber or permit or suffer any
Encumbrance of all or any part of its Interest in the Joint Venture or under or in respect of this
Agreement or make any agreement or commitment to do any of the same unless in each case approved by
the Management Committee, such approval not to be unreasonably withheld, and any attempt to do so
shall be void. Any sale, exchange, gift, charge, pledge or other purported assignment, transfer or
Encumbrance of an Interest in the Joint Venture made other than in accordance with the express
terms and provisions of this Agreement shall confer no right or interest whatsoever under this
Agreement. The foregoing shall apply notwithstanding that any Participant may become insolvent, be
declared bankrupt, make a proposal under any applicable bankruptcy legislation or permit an order
to be made for its winding-up or liquidation.

 

- 24 -

8.2 Change of Control of Participants Permitted

A transaction which results, directly or indirectly and either immediately or subject to the
happening of any contingency, in a change of control of the Participant, shall be expressly
permitted and shall not be deemed to be a prohibited transfer by the Participant of its Interest
under Section 8.1.

8.3 Permitted Transfers to Affiliates

Section 8.1 shall not apply to a transfer by a Participant of its entire interest in the Joint
Venture to an Affiliate, provided that contemporaneously with such transfer:

	 	(a)	 	the transferee enters into an agreement with the other Participant in the terms
hereof, whereby it shall be bound by and entitled to the benefit of this Agreement;
	 
	 	(b)	 	the transferor shall guarantee to the other Participant the performance by the
transferee of all of its obligations under this Agreement; and
	 
	 	(c)	 	the consent of an Owner required under a Contract is obtained;

such agreements and guarantee all to be satisfactory to the other Participant, acting reasonably.

Notwithstanding the foregoing, Fort McKay Construction Ltd. covenants to transfer its interest in
the Joint Venture to a limited partnership of which it is the general partner and which shall be
known as “Fort McKay Construction Limited Partnership”. Fort McKay Construction Ltd. shall assign
its interest within 30 days of the date of this Agreement. The Parties agree that this transfer
will be the sole exception to the application of this section 8.3.

ARTICLE 9 — DEFAULT

9.1 Default

In the event that a Participant (in this Article the “Defaulting Participant”) is in Default
under this Agreement and such default is not cured or reasonable action to cure has not been
initiated within twenty (20) days after written notice thereof from the other Participant, the
other Participant (in this Article the “Non-Defaulting Participant”) shall have the right to take
over and complete all obligations of the Joint Venture. The Non-Defaulting Participant shall
automatically have the right to receive any and all payments due to the Joint Venture from the
Owner and to apply the proceeds thereof:

	 	(a)	 	to cover all expenses incurred by the Non-Defaulting Participant in taking
over
and completing (by subcontracting or otherwise) all obligations of the Joint
Venture; and
	 
	 	(b)	 	to establish a contingency fund to cover any and all outstanding warranties
or
other obligations of the Joint Venture.

In the event of a material breach or default as described above and, notwithstanding other
provisions of this Agreement, the Defaulting Participant agrees to and shall indemnify and hold
the Non-Defaulting Participant harmless from any and all loss or liability (including, but not

 

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limited to, liquidated damages, fines or penalties of whatever nature and further including,
but not limited to, excess costs and expenses associated with completing all obligations of the
Joint Venture and legal costs on a solicitor and his own client full indemnity basis) incurred by
the Non-Defaulting Participant as a result of such material breach or default.

9.2 Events of Default

Any of the following events shall constitute a Default by a Participant hereunder:

	 	(a)	 	where a Participant or any of its permitted assignees fails in any material
respect
to perform any of its obligations hereunder and such failure continues for greater
than five (5) Business Days after notice thereof has been given by the other
Participant (the “Non-Defaulting Participant”);
	 
	 	(b)	 	where a Participant fails to repay any Excess Funded Amount plus interest
required to be paid pursuant to Section 4.2 hereof within thirty (30) days of the
end of the next fiscal quarter;
	 
	 	(c)	 	if a Participant assigns, transfers, encumbers or otherwise disposes of its
Interest
in the Joint Venture except in accordance with the provisions of this Agreement;
	 
	 	(d)	 	if a Participant, other than in connection with a bona fide
corporate
reorganization, is wound up, dissolved, liquidated or has its existence terminated
(unless such existence is immediately reinstated) or has any resolution passed
therefor or makes a general assignment for the benefit of its creditors or a
proposal under the Bankruptcy and Insolvency Act (Canada), as amended or re-enacted, from time to time, or is adjudged bankrupt or insolvent or if it makes an
application to the applicable court for a compromise or arrangement under the
Companies’ Creditors Arrangement Act (Canada), as amended or re-enacted, from
time to time, or files any petition, answer or other instrument seeking any
reorganization, arrangement, composition, re-adjustment, liquidation or similar
relief for itself under any present or future law relating to bankruptcy, insolvency
or other relief for or against debtors generally or under applicable corporate law
if
any such application or filing has not been withdrawn or does not otherwise cease
to be effective within thirty (30) days after it is made;
	 
	 	(e)	 	if a court of competent jurisdiction enters an order, judgment or decree
against a
Participant seeking any reorganization, arrangement, composition, re-adjustment,
liquidation, dissolution, winding-up, termination of existence, declaration of bankruptcy or insolvency or similar relief under any present or future law relating
to bankruptcy, insolvency or other relief for or against debtors generally, and such
order, judgment or decree remains unvacated and unstayed for an aggregate of
thirty (30) days (whether or not consecutive) from the day of entry thereof or if
any trustee in bankruptcy, receiver, receiver and manager, liquidator or any other
officer with similar powers is appointed for the Participant (other than where a
receiver or a receiver and manager is appointed with respect to non-recourse or
limited recourse debt of the Participant) and such appointment remains unvacated
and unstayed for an aggregate of thirty (30) days (whether or not consecutive); or

 

- 26 -

	 	(f)	 	if an encumbrancer takes possession of all of the property of a Participant or
such part thereof as would have a material adverse effect on the ability of the
Participant to carry out its duties hereunder and remains in possession of such
property for an aggregate of thirty (30) days from the date it takes possession.

9.3 Remedies on Default

Upon the occurrence of a Default by a Defaulting Participant, the Non-Defaulting Participant
shall have the right to:

	 	(a)	 	bring any proceedings in the nature of specific performance, injunction or
other
equitable remedy, it being acknowledged by each of the Participants and the
Corporation on behalf of the Joint Venture that damages at law may be an
inadequate remedy for a Default or threatened breach of this Agreement;
	 
	 	(b)	 	bring any action at law as may be permitted to any of the Participants and the
Corporation on behalf of the Joint Venture in order to recover damages and set-off such damage claim from any amount payable with respect to any portion of
the Work which has been completed;
	 
	 	(c)	 	give the Defaulting Participant a notice exercising its election to purchase
the
entire interest of the Defaulting Participant in the Joint Venture for an amount
equal to 80% of the book value of the Capital Contributions of the Defaulting
Participant;
	 
	 	(d)	 	give notice that the members of the Management Committee representing the
Defaulting Participant shall have no further right to vote as members of the
Management Committee and the members of the Management Committee
representing the Non-Defaulting Participant shall thereafter have the sole right to
vote on the Management Committee;
	 
	 	(e)	 	terminate this Agreement without prejudice to the exercise of any of the other
remedies which may be available to the Non-Defaulting Participant under this
Agreement or at law if, as a consequence of the Default:

	 	(i)	 	an Owner has given notice of default under the applicable Contract;
	 
	 	(ii)	 	the default under such Contract has not been remedied, at the
latest, ten (10) days prior to the end of the applicable period of time for
remedying such default, if any, under such Contract; and
	 
	 	(iii)	 	the Owner has given notice of its intention to terminate the
Contract or would be entitled to terminate it at the end of the period of time
for remedying such default, if any, under the Contract.

The rights available to the Non-Defaulting Participant under this Agreement and at law shall be
deemed to be several and not dependent on each other and each such right, accordingly, shall be
construed as complete in itself and not by reference to any other right. Any one or more or any
combination of such rights may be exercised by the Non-Defaulting Participant, from time to

 

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time, and no such exercise shall exhaust the rights or preclude the Non-Defaulting
Participant from exercising any one or more of such rights or combination thereof, from time to
time, thereafter or simultaneously. If the Manager is the Defaulting Participant, and the Owner
gives notice in writing to the Joint Venture that it requires a change in Project management such
that the Manager can no longer perform its duties and responsibilities hereunder, then the
Non-Defaulting Participant shall, from and after the giving of a notice of such Default, be
entitled to designate the Manager.

9.4 Sale Procedure

Where the Non-Defaulting Participant has given notice of an election pursuant to subsection
9.3(c) and elects to proceed under this Section to purchase the Interest of the Defaulting
Participant at a value equal to 80% of the Defaulting Participant’s Capital Contributions, the
Non-Defaulting Participant and the Defaulting Participant are in this Section referred to as the
“Purchasing Participant” and “Selling Participant”, respectively.

In the event of any purchase by a Purchasing Participant pursuant to this Section, the Selling
Participant shall not, for a period of five (5) years from the closing date of the sale, directly
or indirectly as principal, shareholder, contractor, subcontractor or otherwise enter into any
competition for the Project.

9.5 Remedies Revocable and Non-Exclusive

The rights of the Non-Defaulting Participant under this Article 9 shall not be exclusive remedies
but shall be in addition to all other rights and remedies, if any, available to the Non-Defaulting
Participant at law or in equity.

9.6 Closing

The closing (in this Article 9 and Article 8, the “Closing”) of the purchase and sale of an
Interest in the Joint Venture and the Joint Venture’s assets by one Participant to another
Participant pursuant to any provision of this Article shall be held at the principal place of
business of the Joint Venture at 10:00 o’clock in the forenoon (local time) on the date which is
stipulated by the Purchasing Participant, with a minimum of ten (10) days written notice of the date
being given to the Selling Participant, or otherwise on a mutually acceptable date. At the Closing,
the Selling Participant shall deliver to the Purchasing Participant such transfer documents
including deeds, documents and assurances reasonably required by the Purchasing Participant’s
solicitors as being necessary or desirable to effect the sale and transfer of such Interest and the
purchase price (to the extent payable in cash) shall be paid to the Selling Participant and to the
extent represented by assumed liabilities or deferred payments shall be appropriately documented.
The transfer documents shall be legally sufficient to convey to the Purchasing Participant the
Interest of the Selling Participant in the Joint Venture and the Joint Venture’s assets free and
clear of all Encumbrances and shall include discharges of any Encumbrances against the separate
Interest of the Selling Participant in the Corporation’s assets.

If the Selling Participant is not represented at the Closing or is represented but fails for any
reason whatsoever to produce and deliver the transfer documents to the Purchasing Participant,
then the purchase price, to the extent payable in cash, may be deposited by the Purchasing
Participant into a special account at a branch of the Joint Venture’s bank in the name of the

 

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Selling Participant, and to the extent represented by assumed liabilities or deferred
payments, by deposit of the appropriate documentation by the Purchasing Participant with its own
solicitor in escrow. Such deposit shall constitute valid and effective payment of the purchase
price to the Selling Participant even though the Selling Participant has, in breach of this
Agreement, voluntarily encumbered or disposed of its Interest and, notwithstanding the fact that
an assignment or assignments for any such Interest may have been delivered in breach of this
Agreement to any alleged pledgee, transferee or other person. If the purchase price is deposited
and any relevant documents placed in escrow as aforesaid, then, from and after the date of such
deposit, and even though the transfer documents have not been delivered to the Purchasing
Participant, the purchase of the Interest shall be deemed to have been fully completed and all the
right, title, benefit and interest, both at law and in equity, in and to the Interest shall be
conclusively deemed to have been transferred and assigned to and become vested in the Purchasing
Participant and all right, title, benefit and interest, both at law and in equity, of the Selling
Participant or of any transferee, assignee or other person having any interest, legal or
equitable, therein or thereto, whether as a Participant or creditor of any Participant, or
otherwise, shall cease and determine; provided however, that the Selling Participant shall be
entitled to receive the purchase price so deposited without interest and delivery of any documents
placed in escrow as aforesaid upon delivery to the Purchasing Participant of the transfer
documents.

The Selling Participant hereby irrevocably constitutes and appoints the Purchasing Participant as
its true and lawful attorney in fact and agent for, in the name and on behalf of the Selling
Participant, to execute and deliver in the name of the Selling Participant all such assignments,
transfers, deeds or instruments as may be necessary effectively to transfer and assign the Interest
of the Selling Participant in the Joint Venture or the Joint Venture’s assets, or any part thereof,
to the Purchasing Participant. Such appointment and power of attorney, being coupled with an
Interest, shall not be revoked by the dissolution, winding-up, bankruptcy or insolvency of the
Selling Participant and the Selling Participant hereby ratifies and confirms and agrees to ratify
and confirm all that the Purchasing Participant may lawfully do or cause to be done by virtue of
the provisions hereof.

9.7 Assumption of Liabilities

At the Closing held pursuant to this Article 9, the Purchasing Participant, by a legally
enforceable agreement, shall indemnify and secure the Selling Participant against the debts,
engagements and liabilities of such Selling Participant in respect of the Joint Venture incurred
or accruing after Closing.

9.8 No Partition

No Participant shall make an application to the court nor commence any action for the
partition or sale of the Joint Venture or the Joint Venture’s assets except in accordance with the
provisions hereof.

ARTICLE 10 — TERMINATION

10.1 Term and Termination

The term of the Joint Venture shall commence on the date of this Agreement and continue until
terminated by agreement of the Participants in writing.

 

- 29 -

If the Participants shall fail to agree as to the terms and conditions of a tender or of any
proposed Contract or if a tender shall not be accepted by an Owner by the date for acceptance
specified therein or any extension thereof or if any negotiations with the Owner shall prove
conclusively unsuccessful then, upon the happening of any such event, this Agreement shall (save
as to the provisions of this Section 10.1 and of Section 7.4) continue unless terminated by
agreement in writing and each of the Participants shall be separately and solely liable for all
costs and expenses which each Participant may have expended or incurred in connection with the
tender or negotiations, save and except for costs associated with payments to employees seconded
to the Joint Venture by either or both of NACG or Fort McKay, which costs shall be Joint Venture
Costs. All of the foregoing shall be without prejudice to the rights of either of the Participants
against the other by reason of any previous breach or non-observance of the provisions of this
Agreement, provided always that where a Participant has incurred costs on behalf of the other
Participant, the Participant incurring such costs shall be entitled to recover such costs from the
other Participant.

Subject to earlier termination as herein provided and subject to all liabilities and obligations of
the Joint Venture having been satisfied, the Joint Venture shall terminate upon the first to occur
of the following events:

	 	(a)	 	no Contract for Work on a Project being entered into within three (3) years
from
the date hereof;
	 
	 	(b)	 	upon termination of this Agreement in writing; and
	 
	 	(c)	 	purchase by one (1) Participant of all of the Interest in the Joint Venture and
the
Joint Venture’s assets of the other Participant.

Immediately following any such event and after the satisfaction of all liabilities and obligations
of the Joint Venture as of the date thereof or, after making due provision for all such
liabilities and obligations, the Manager shall return the assets of the Joint Venture contributed
by each Participant to the Participant making the contribution, divide all remaining assets of the
Joint Venture between the Participants in accordance with their Proportionate Interests or cause
the assets of the Joint Venture to be sold and the proceeds divided between the Participants in
accordance with their Proportionate Interests. The Proportionate Interest of each Participant
shall be adjusted, if necessary, to reflect any Excess Funded Amount owed to a Participant and to
reflect any other excess contribution that a Participant may have made. In that case, a
Participant shall be entitled to receive more than his Proportionate Interest on termination of
this Agreement so that the share of the assets or proceeds that it receives reflects the fair
market value of its Interest. Any such termination shall be without prejudice to any rights or
liabilities accruing to either Participant with respect to the other under this Agreement to the
date of termination.

10.2 Final Accounting, Settlement and Termination

Upon termination of the Joint Venture, and receipt of final payment under all Contracts, a final
accounting, including a balance sheet and statement of profit and loss, of the operations of the
Joint Venture shall be prepared and submitted to each Participant.

After paying or providing for payment of all liabilities, including liabilities to the
Participants as shown on such balance sheet, after establishing reserves for contingent
liabilities in such

 

- 30 -

amounts as the Management Committee shall determine, after disposing or arranging for the
disposition of all non-cash assets and property of the Joint Venture and after the final
settlement statement has been prepared and signed as specified in the following subsection, any
funds remaining to the credit of the Joint Venture shall be distributed to the Participants in
accordance with their Proportionate Interests. The Proportionate Interest of each Participant
shall be adjusted, if necessary, to reflect any Excess Funded Amount owed to a Participant and to
reflect any other excess contribution that a Participant may have made. In that case, a
Participant shall be entitled to receive more than his Proportionate Interest on termination of
this Agreement so that the share of the assets or proceeds that it receives reflects the fair
market value of its Interest. Notwithstanding anything else contained in this Agreement, the
liability as between NACG and Fort McKay for any ultimate losses, after application of all
Revenues, shall be assumed by the Participants in accordance with their respective Proportionate
Interests, and the Defaulting Participant shall indemnify and hold the Non-Defaulting Participant
harmless from any such ultimate losses.

Before making any distribution under the preceding subsection or before the Participants are
required to contribute funds to cover any loss, whichever is the case, a final settlement
statement shall be prepared showing all revenues received by the Joint Venture, all Joint Venture
Costs paid or accrued by the Joint Venture, any reserves established for contingent liabilities of
the Joint Venture, all initial working capital advances and repayments and all distributions of
Joint Venture profits, if any, to the Participants. When the Participants have agreed as to the
correctness of such statement, each of them shall sign it and shall release the other Participant
from any and all claims under this Agreement, except that the Participants shall retain:

	 	(a)	 	their respective interests, in accordance with their Proportionate Interests,
in any
portion of such contingency reserves which is not required to meet liabilities of
the Joint Venture; and
	 
	 	(b)	 	their respective rights of contribution against the other Participant under
Section
3.11 in the event that such contingency reserves are insufficient to meet all
liabilities of the Joint Venture and any Participant is required to pay a greater
percentage of any such excess liability than is represented by its Proportionate
interest.

Whenever the Management Committee determines that all or any part of any reserve for contingent
liabilities established by the Joint Venture is no longer required for such purpose, such reserve
or part thereof shall be distributed to the Participants in accordance with their Proportionate
Interests.

ARTICLE 11 — THE CORPORATION

11.1 Directors

Each Participant shall be entitled to nominate two directors for election to the board of
directors of the Corporation who will be the same persons as are named by the Participants to act
as representatives on the Management Committee. As of the date of this Agreement, the following
are the nominee directors of the Corporation:

 

- 31 -

NACG:

Dave Tien

Zone 3, Acheson Industrial Area

2-53016, Highway 60 
Acheson, AB T7X 5A7

and

Bill Koehn

Zone 3, Acheson Industrial Area

2-53016, Highway 60

Acheson, AB T7X 5A7

Fort McKay:

Jim Boucher

P.O. Box 5360

Fort McMurray, AB T9H 304

and

Jim Carbery

P.O. Box 5360

Fort McMurray, AB T9H 3G4

11.2 Decisions

No action will be taken by the Corporation or its directors or officers on behalf of the
Corporation in respect of or within the scope of any Major Decision unless such action shall have
been approved by a majority of representatives present at a meeting of the Management Committee or
by unanimous approval as may be required pursuant to Section 6.3.

11.3 Limitation on Activities

Except as otherwise approved by the Participants, the Corporation shall carry out and conduct
the business of the Joint Venture and such activities as are reasonably incidental or conducive
thereto and shall carry out and conduct no other business or activity or exercise any other power.

11.4 Access to Records

Each Participant shall have the right on reasonable notice at all reasonable times during
usual business hours to audit, examine and make copies of or extracts from the books of account
and other books and records of the Corporation. Such right may be exercised through any agent or
employee of the Corporation or by an outside independent chartered accountant designated by the
Corporation. The Corporation shall bear all expenses incurred by it in any audit, examination or
making copies made for its account.

 

- 32 -

ARTICLE 12 — MISCELLANEOUS

12.1 Notices

Any notice required to be given hereunder by any Participant shall be deemed to have been
properly given if:

	 	(a)	 	personally delivered to the Participant to whom it is addressed or, if such
Participant is a corporation, to an officer of that corporation;
	 
	 	(b)	 	if mailed by prepaid registered mail or delivered, to the address of the
Participant
to whom it is intended hereinafter set forth:

	 	(i)	 	if to NACG, then:

Zone 3, Acheson Industrial Area

#2, 53106 Highway 60

Spruce Grove, AB

T7X 3G7

Facsimile: 780-960-7103

	 	(ii)	 	if to Fort McKay, then:

P. O. Box 5360

Fort McMurray, AB

T9H 3G4

Facsimile: 780-742-0038

	 	(iii)	 	if to the Corporation, then:

#2, 53106 Highway 60 

Spruce
Grove, AB 

T7X 3G7

Facsimile: 780-960-7103

	 	 	 	Either Participant or the Corporation may change its address for notice at any time
upon giving written notice to the other parties to this Agreement; or
	 
	 	(c)	 	if transmitted by facsimile to the facsimile number of the party to whom it is
intended as set forth above or to such other facsimile number as a party may, from
time to time, direct in writing.

Any notice delivered or transmitted by facsimile as aforesaid shall be deemed to have been received
on the Business Day after delivery or transmission and any notice mailed shall be deemed to have
been received ten (10) Business Days after the date it is postmarked. Originally executed copies of
all notices transmitted by facsimile shall also be mailed on the date of facsimile transmission. If
normal mail service is interrupted by strike, slow-down, force majeure or other cause after the
notice has been sent, the notice shall not be deemed to be received until

 

- 33 -

actually received. In the event normal mail service is impaired at the time of sending the
notice, then personal delivery or facsimile transmission only shall be effective.

12.2 Waiver

No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions (whether or not similar) nor shall such waiver constitute a
continuing waiver unless otherwise expressly provided.

12.3 Counterparts

This Agreement may be signed in counterpart and such counterparts taken together shall be of
full force and effect upon the parties executing the same.

12.4 Further Assurances

Each party to this Agreement, from time to time hereafter and throughout the term of this
Agreement, shall upon any reasonable request promptly execute and deliver all such documents,
instruments and assurances and do all such other acts and things as may be lawful and within its
power to do in order to more effectually implement and carry out the provisions and the true
intent of this Agreement.

12.5 Compliance with Law

Each party to this Agreement shall comply with all applicable federal, provincial,
territorial, county, municipal, or other statutes, laws, ordinances, regulations, rules or orders
of any governmental or quasi-governmental entity, body, agency, commission, board or official
applicable to the business of that party.

12.6 Expenses

Except as otherwise specifically provided in this Agreement, each of the parties hereto shall
bear its own expenses (including those of counsel, accountants and advisers) incurred in
connection with this Agreement and the transactions contemplated by this Agreement.

12.7 Enurement

This Agreement shall enure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns.

 

- 34 -

ARTICLE 13 — INTRODUCTION OF NEW PARTICIPANTS

	13.1	 	The Participants agree that it may be appropriate, from time to time, to introduce new
Participants to the Joint Venture, subject always to the prior approval of the Management
Committee, such approval not to be unreasonably withheld. It shall be a condition of the
admission of any new Participant to the Joint Venture that the new Participant shall execute
this Agreement or a counterpart of this Agreement and shall, regardless of the date of
execution, be bound by and subject to all of its provisions and such execution shall in no
way affect or impair its rights or obligations or those conferred or imposed on any other
Participant whose execution was prior in time provided, for greater certainty, that it shall
not be unreasonable for a Management Committee representative to withhold consent if, as a
result of the introduction of a new Participant, the Interest or rights of an existing
Participant would be diminished, impaired or otherwise affected.

IN
WITNESS WHEREOF the parties hereto have executed this Agreement this
          day of
September, 2002.

	 	 	 	 	 	 	 
	 	 	NORTH AMERICAN CONSTRUCTION GROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	/s/ William Koehn
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	/s/ Gordon Parchewsky	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	FORT McKAY CONSTRUCTION LTD., as
General Partner for-the Fort McKay

Construction Limited Partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NORAMAC VENTURE INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	 	 	 
	 

	 	 	 	 	 	 

 

This is Schedule “A” to the

Joint Venture Agreement

Among

North American Construction Group Inc.,

And

Fort McKay Construction Ltd., as agent for a limited partnership to be constituted under the

name and style, “Fort McKay Construction Limited Partnership” and 1006004 Alberta Ltd.,

dated September, 2002

Schedule of Hourly Rental Costs for Equipment

Equipment                      Hourly Rental Rate

 

THIS ASSIGNMENT made the 27 day of FEBRUARY, 2006

BETWEEN:

NORAMAC VENTURE INC., a body corporate duly incorporated pursuant to the laws of the
Province of Alberta (hereinafter referred to as “NORAMAC”)

- and -

NORTH AMERICAN CONSTRUCTION GROUP INC., a body corporate duly incorporated pursuant to the laws
of the Province of Alberta (hereinafter referred to as “NORTH AMERICAN”)

ASSIGNMENT OF CONTRACT

WHEREAS;

A. NORAMAC entered into that Overburden Removal and Mining Services Contract #400472, dated
effective the 17th day of November, 2004, between NORAMAC and Canadian Natural Resources
Limited (the “CONTRACT”);

B. NORAMAC wishes to assign all of its right, title and interest in and to the CONTRACT to NORTH
AMERICAN, effective as of 27 FEBRUARY, 2006 (the “EFFECTIVE DATE”), all upon terms and conditions
set out herein;

C. NORTH AMERICAN wishes to accept the assignment of BORANAC’ s right, title and interest in and to
the CONTRACT and to assume all of the obligations of NORAMAC under the CONTRACT, effective as of
the EFFECTIVE DATE, all upon the terms and conditions set forth herein;

     NOW THEREFORE THIS ASSIGNMENT witnesses that, in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration (the receipt and sufficiency
of which is hereby acknowledged by all parties hereto), the parties do hereby agree as follows:

ARTICLE 1

1.1 Assignment

     NORAMAC does hereby absolutely and unconditionally assign, grant, transfer and set over to NORTH
AMERICAN as and from the EFFECTIVE DATE all of NORAMAC’s estate, right, title, interest and claim
whatsoever, both at law and in equity, in and to all of the benefits of the CONTRACT with full
power and authority to use the name of NORAMAC, and its successors and assigns, in enforcing the
performance of all covenants and other matters and things contained in the CONTRACT. The right,
title and interest hereby assigned includes (without restricting the
generality of the foregoing);

 

-2-

	 	(a)	 	all claims for damages for breach by the other parties to the CONTRACT of any of the
terms or conditions of the CONTRACT, and all warranties and indemnity provisions contained
therein;
	 
	 	(b)	 	any right to terminate the CONTRACT; and
	 
	 	(c)	 	the right of NORAMAC to perform the CONTRACT and to compel performance of the terms
thereof.

The assignment contained in this Section shall be upon and subject to the terms and conditions
set out in this Assignment.

1.2 Acceptance of Assignment

     NORTH AMERICAN hereby accepts the assignment of the CONTRACT in its favour herein contained.

1.3 Covenant of NORTH AMERICAN

     NORTH AMERICAN covenants with NORAMAC that NORTH AMERICAN will, from and including the EFFECTIVE
DATE and throughout the residue of the term of the CONTRACT observe and perform all covenants,
terms and conditions set forth in the CONTRACT to be performed or observed by NORAMAC therein and
shall be liable to NORAMAC for and shall indemnify and save harmless NORAMAC of and from all
manner of actions, causes of action, proceedings, claims, demands, losses, costs, damages and
expenses whatsoever (and without limiting the generality of the foregoing, legal costs on a
solicitor and his own client basis) which may be brought or made against NORAMAC or which NORAMAC
may sustain, pay or incur as a result of or in connection with any breach or non observance by
NORTH AMERICAN of its obligations under the CONTRACT.

1.4 Notice

     Each of NORAMAC and NORTH AMERICAN agree with the other that on receiving notice of, or becoming
aware of any action, cause of action, proceeding, claim or other matter to which it claims to be
entitled to recover against or seek indemnity from the other as hereinbefore in this Assignment
provided:

	 	(a)	 	it shall give prompt written notice thereof to the other party hereto;
	 
	 	(b)	 	if such matter is an action, cause of action, proceeding, claim or demand with
respect to which such entitlement or indemnity is admitted by the other party, such other
party, at such other party’s election, shall be entitled and permitted to assist in or
undertake the defence of the same.

 

-3-

ARTICLE 2

2.1 Preamble

     The parties hereby confirm and ratify the matters contained and referred to in the Preamble to this
Assignment and agree that the same are expressly incorporated into and form part of this
Assignment.

2.2 Successors and Assigns

     This Assignment shall enure to the benefit of and be binding upon NORAMAC and NORTH AMERICAN, and
their respective successors and permitted assigns.

2.3 Severability

     If any term, covenant or condition of this Assignment or the application thereof to any party or
circumstance shall be invalid or unenforceable to any extent, the remainder of this Assignment or
application of such term, covenant or condition to a party or circumstance other than those to
which it is held invalid or unenforceable shall not be affected thereby and each remaining term,
covenant or condition of this Assignment shall be valid and shall be enforceable to the fullest
extent permitted by law.

2.4 Further Assurance

     The parties hereto and each of them do hereby covenant and agree to do such things and execute such
further documents, agreements and assurances as may be necessary or advisable from time to time in
order to carry out the terms and conditions of this Assignment in accordance with their true
intent.

2.5 Governing Law and Submission to Jurisdiction

     This Assignment shall be governed by and construed in accordance with the laws of the Province of
Alberta and the laws of Canada applicable therein and the parties thereto hereby submit to the
jurisdiction of the courts in the Province of Alberta.

     IN WITNESS WHEREOF the parties have hereunto set their corporate seals duly attested to by the
hands of their properly authorized officers in that behalf all on the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	NORAMAC VENTURES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	/s/ [ILLEGIBLE]	 	 
	 
	 

	 	Per:
	 	/s/ William K. L.
	 	 

 

 - 4 - 

	 	 	 	 	 	 	 
	 	 	NORTH AMERICAN 
CONSTRUCTION GROUP INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:
	 	/s/ William K. L.	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

CONSENT TO ASSIGNMENT OF CONTRACT

     The undersigned, Canadian Natural Resources Limited, (the “Owner”) hereby acknowledge receipt of an executed copy of that Assignment of Contract (the “Assignment”) dated the 27th day of February, 2006, made by Noramac Ventures Inc.
(“Noramac”) in favour of North American Construction Group Inc. (“North American”) with respect
to that Overburden Removal and Mining Services Contract #400472, dated effective the 17th day of November, 2004, between the Noramac and the Owner (the “Contract”) and the Owner hereby confirms and agrees with Noramac and North American that

	 	(a)	 	it consents to the Assignment; and
	 
	 	(b)	 	the Contract is in full force and effect and is a binding obligation of the Owner enforceable in accordance with its terms.

     DATED
effective the 27th day of March, 2006.

	 	 	 	 	 
	 	 	CANADIAN NATURAL RESOURCES LIMITED
	 
	 	 	 	 
	 

	 	Per:
	 	/s/
P. Keele
	 

	 	 	 	V. P. Mining
	 
	 	 	 	 
	 

	 	Per:
	 	/s/ [ILLEGIBLE]

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