M4uii CLERK Cri

FORM 10 [RULE 3,25]

DEC 1 2 2013
JUDICIAL CENTRE OF CALGARY
COURT FILE NUMBER COURT JUDICIAL CENTRE PLAINTIFF(S) DEFENDANT(S) (toa - kt COURT OF QUEEN'S BENCH OF ALBERTA CALGARY PENN WEST PETROLEUM LTD. BERNARD OMINAYAK; ALPHONSE OMINAYAK; DWIGHT GLADUE; JORDIE SAWAN; BRYAN LABOUCAN;LARRY OMINAYAK; and JOHN and JANE DOES NUMBERS 1 THROUGH 30 STATEMENT OF CLAIM BENNETT JONES LLP Barristers and Solicitors 4500, 855 -2nd Street S.W. Calgary, Alberta T2P 4K7 Attention: E. Bruce Mellett/Laura Gill Telephone No.: 403-298-3319 Fax No.: 403-265-7219 Client File No.: 59614-63 NOTICE TO DEFENDANTS You are being sued. You are a defendant. Go to the end of this document to see what you can do and when you must do it. Note: State below only facts and not evidence (Rule 13.6) Statement of facts relied on: 1. This is an action for damages and other relief arising out of a blockade by the Defendants of a licensed road on public lands, which has prevented the Plaintiff from conducting duly authorized work on certain oil and natural gas development sites.

DOCUMENT ADDRESS FOR SERVICE AND CONTACT INFORMATION OF PARTY FILING THIS DOCUMENT

WSLegal\059614\00063\8322 I 46v10

2.

At a deeper level, it is a claim about the Plaintiff's right to carry out development activities which have been duly licenced and approved, after consultation with and the approval of provincially and federally recognized first nation representatives, without interference from individual first nation members who purport to represent the interests of the area first nation peoples.

3.

The Plaintiff, Penn West Petroleum Ltd. ("Penn West") is a corporation registered pursuant to the laws of Alberta, and is engaged in the operation, development, and production of oil and gas in western Canada under the trade name Penn West Exploration.

4.

The Defendant, Bernard Ominayak ("Ominayak"), is an individual of Lubicon Lake Cree heritage, who holds himself out as the "Chief' of the "Lubicon Lake Nation". As described below, there are currently two groups which claim to properly represent the collective interests of the Lubicon Cree the first group is the "Lubicon Lake Nation", headed by Ominayak. The second group is the federally and provincially recognized "Lubicon Lake Band", headed by Chief Billy Joe Laboucan, and registered with Aboriginal Affairs and Northern Development Canada. In this Statement of Claim, Penn West uses the terms Lubicon Lake Nation ("LLN") and Lubicon Lake Band ("LLB") to refer to the respective leadership groups described above, and will use the will use the term "Lubicon Cree" to refer to the Lubicon Lake Cree people generally.

5.

The Defendants Dwight Gladue, Alphonse Ominayak, Bryan Laboucan, Larry Ominayak and Jordie Sawan ("the Councillor Defendants") are individuals of Lubicon Cree heritage, and hold themselves out as "Councillors" of the Lubicon Lake Nation.

6.

The Defendants, John and Jane Does numbers 1 through 30 ("John and Jane Does'') insofar as is known to the Plaintiff, are Lubicon Cree persons and are parties acting on behalf of or in concert with Ominayak and the Councillor Defendants, and have participated in the roadblock described in this Statement of Claim. The true identities of John and Jane Does are not presently known to Penn West.

The Sawn Lake Program 7. Penn West holds a number of mineral leases in and around the Sawn and Haig Lakes area of Northern Alberta, and has developed a program to develop those mineral leases, consisting of coordinated and sequential development steps on various locations, including well site construction, drilling, and completions (the "Sawn Lake Program"). 8. The Lubicon Cree have claimed aboriginal title in and around the Sawn and Haig Lake areas and claim to have traditional use areas in the lands making up the Haig Lake Program and many of the roads that access the Sawn Lake Program. Some of the lands making up the Sawn Lake Program are included within the area for a proposed reserve for the Lubicon Cree. No agreement has been reached between the Lubicon Cree and the provincial and federal governments with respect to these lands. Consultation 9. Penn West has fulfilled its obligations that have been delegated by the Crown to consult and accommodate with the Lubicon Cree with respect to the Sawn Lake Program. 10. In 2011 and 2012, Penn West consulted with the LLN and Ominayak in respect of the Sawn Lake Project, including for the approval of Licenses of Occupation for access roads, surface licenses for drilling and construction activities and well licences. As far as is known to Penn West, Ominayak was the Chief of the LLN until February 15, 2013. 11. On or about February 25, 2013, and at all times subsequent, the Government of Alberta has instructed Penn West to direct all active and ongoing consultation with the Lubicon Cree to Chief Billy Joe Laboucan ("Chief Laboucan") and his consultation contact, as the Government of Alberta and Canada recognized Chief Laboucan as the elected Chief of the Lubicon Cree under elections held on February 15, 2013. 12. Since February 25, 2013, Penn West has communicated with Chief Laboucan and the designated consultation agent of the LLB in relation to the Sawn Lake Program.

13,

On November 21, 2013 Ominayak and the Councillor Defendants notified Penn West of an "Order and Council Resolution" which objected to Penn West's activities in the Sawn and Haig Lake areas, and asserted that "the strictest enforcement of the Lubicon Lake Nation laws will be applied",

Roadblock 14, On or about November 26, 2013, approximately 18 individuals, including the Defendants, blockaded a portion of the Penn West access roads on lands described as 325-91-136 in Northern Sunrise Country ("the Roadblock"). The Roadblock is on an access road pursuant to Licence of Occupation LOC 110648 issued to Penn West by Alberta Sustainable Resource Development on April 4, 2011. The purpose of the Roadblock is to impede and prohibit Penn West's lawful operations in the Sawn and Haig Lake areas, to which the Defendants object. Penn West's activities include, among other things, construction of a well pad site for drilling of wells ("the 3-25 Wells") approximately one kilometre south of the Roadblock. 15. The Roadblock was initiated by, or in the alternative erected at the direction of, Ominayak and the Councillor Defendants. 16. The Roadblock has continued and remains in place as at the date of this Statement of Claim. The Defendants have placed vehicles and structures across the roadway,

preventing the passage of vehicles, personnel and equipment to the Penn West site for the 3-25 Wells. Interference with Penn West Economic Interests and Contractual Relations 17. On or about December 9, 2013, the Defendants formally requested Trinidad Drilling ("Trinidad"), Penn West's drilling contractor at the site of a well in the Sawn Lake Program and located at 14-25-091-13W5M approximately 1 km from the location of the Roadblock, to immediately cease all drilling operations. The Defendants were aware of Penn West's contract with Trinidad for drilling at the site of the 3-25 Wells and the

Defendants' conduct was intended to cause, or to willfully induce, Trinidad to breach its contract with Penn West. 18. At all times, Penn West's activities have been lawfully conducted in accordance with all necessary permits and licenses issued by applicable authorities. 19. In directing, erecting and maintaining the Roadblock as described, the Defendants have interfered with Penn West's lawful right to use and occupy its access road on lands described as 3-25-91-13 ("the Access Road"), and have interfered with Penn West's right of use as granted by License of Occupation No. LOC 110648, Among other things, the Defendants' interference has prevented the free access to, or passage on and over, or the use of the Access Road by authorized Penn West contractors, causing cost, delay, and hardship to Penn West. 20. The Defendants' actions with respect to the Roadblock amount to an unlawful interference with Penn West's economic interests, and with the rights granted to Penn West under LOC 110648, as well as Mineral Surface Lease MSL 110673 and Well Licences 0454377 and 0454404, issued to Penn West in January 2013. 21. As a result of Ominayak and the Councillor Defendants' directions and other Defendants' trespass and interference with Penn West and its employees, agents, and contractors' rights of passage on the Access Road, Penn West has suffered damage including loss of business and goodwill and will continue to suffer irreparable damage and harm as more completely described below. Injunction 22. The continuing Roadblock and a halt in operations at the Sawn Lake Project will cause irreparable harm and damages which cannot be readily calculated and compensated for in damages, If Penn West is unable to complete its drilling operations due to the

Roadblock, then it will experience an indefinite delay in production and revenues from the 3-25 Wells. Further, because of the coordination and sequential development of

construction of the overall Sawn Lake Program, delay in activities and construction of the 3-25 wells will cause resultant delays in construction, production and revenue of other planned wells. 23. The unlawful actions of the Defendants will have negative consequences for Penn West in the investment market, and cause financial loss to Penn West which is difficult to quantify. 24. Penn West seeks short term and long term orders under the Public Lands Act, or in the alternative, an interim and permanent injunction against the Defendants, restraining and prohibiting the continuation of any roadblocks unlawfully established on all roadways in and around the Sawn Lake area, and in particular the Access Road constructed on public lands pursuant to LOC 110648, and from interfering with Penn West's operations in and around the Sawn and Haig Lake areas. Trial 25, Penn West pleads and relies upon the provisions of the Public Lands Act, R.S.A. 2000, c. P-40, as amended. 26. The Plaintiff proposes that the trial of this Action be held at the courthouse in Calgary, Alberta or as otherwise directed by this Honourable Court, 27. The Plaintiff believes that the trial of this Action will take less than twenty five days.

Remedy sought: 28. The Plaintiff claims as against the Defendants: (a) A short-term order and a long-term order pursuant to s. 54.03 of the Public Lands Act, R.S.A. 2000, c. P-40; (b) In the alternative to (b), an interim and permanent injunction restraining the Defendants from interfering with the business of the Plaintiff, trespassing on

roadways to which the Plaintiff has a right of possession and from interfering with the Plaintiffs business and contractual relations; (c) Damages for costs incurred by the Plaintiff as a result of the Defendants' actions with respect to the Roadblock and interference with the Plaintiffs contractual relations; (d) (e) (f) (g) Punitive damages; Interest pursuant to the Judgment Interest Act, R.S.A. 2000, c. J-1; Costs on a solicitor and client basis; and Such further and other relief as this Honourable Court deems appropriate.

NOTICE TO THE DEFENDANT(S) You only have a short time to do something to defend yourself against this claim: 20 days if you are served in Alberta 1 month if you are served outside Alberta but in Canada 2 months if you are served outside Canada. You can respond by filing a statement of defence or a demand for notice in the office of the clerk of the Court of Queen's Bench at Calgary, Alberta, AND serving your statement of defence or a demand for notice on the plaintiffs(s') address for service. WARNING If you do not file and serve a statement of defence or a demand for notice within your time period, you risk losing the law suit automatically. If you do not file, or do not serve, or are late in doing either of these things, a court may give a judgment to the plaintiff(s) against you.