January 31, 2024 File: BRFN_53573

Planning Services Manager and Aden Fulford

Peace River Regional District
1981 Alaska Avenue
Dawson Creek, BC V1G 4H8

Dear Planning Services Manager and Aden Fulford:

The Ministry of Energy, Mines and Low Carbon Innovation (the Ministry) is seeking to
facilitate the direct award of a petroleum and natural gas (PNG) tenure by the Province of
British Columbia (the Province) to Blueberry River First Nations (BRFN) to advance the
principles and commitments made in the 2023 Blueberry River First Nations Implementation
Agreement entered into between the Province and BRFN following the Yahey decision.

The Ministry is considering issuing PNG rights in the form of tenure directly to an entity
designated by BRFN under section 72 of the Petroleum and Natural Gas Act. Section 72
allows the Minister to withdraw Crown reserves from sale under the typical public auction or
tender process and issue PNG rights through an alternative issuance process in
accordance with the terms and for the price approved by the Lieutenant Governor in
Council (LGIC).

The direct award of PNG tenure to First Nations provides First Nations with greater care
and control over the development of natural resources within their traditional territories. First
Nations are able to develop partnerships with companies and align development with
preferred mitigation measures. This approach provides industry with certainty and supports
long term development planning in partnership with First Nations. For the Province, the
direct award of PNG rights in the form of tenure to First Nations acts as an example of how
development strategies can be improved to involve partnerships between the private sector
and First Nations and also contributes to the Province’s ongoing pursuit of reconciliation.

The section 72 tenure being contemplated for BRFN is similar to a lease but is subject to
alternate, simplified terms for a set term. The proposed tenure area is identified in the
detailed referral map and GIS information and includes all available subsurface zones. The
issuance of this tenure is proposed to be at no cost to advance reconciliation measures,
subject to approval by the LGIC. Annual rental payments are proposed to be the same as a

Ministry of Energy Resources Division Mailing Address: Location:

Energy, Mines Tenure & Resource Stewardship Branch
PO Box 9323 Stn Prov Govt 4th Floor, 1810 Blanshard Street
and Low Carbon Phone: (250) 952-0333
Victoria BC V8W 9N3 Victoria BC
Innovation Fax: (250) 952-0291
standard lease but with a 6-month grace period for the initial payment. The proposed term
of the tenure is 10 years to allow time for BRFN to develop partnerships, with the option to
convert all or a portion of the title to a standard 5-year lease either before expiry or no later
than 60 days after expiry. Under the proposed section 72 agreement, BRFN may assign or
sublet the PNG rights to another party but the PNG rights may not be divided unless
converted to a lease. All or a portion of the PNG rights can be surrendered at any time.
Since rights granted under section 72 differ from a standard lease in that they do not enable
storage, to make the terms more similar to a standard lease, if the tenure holder applies
and pays rent for storage under the PNG Act the rent for that area of the section 72 tenure
is waived. All proposed terms and conditions described are subject to approval by the
LGIC.

Please find enclosed the referral information for the PNG rights proposed for direct award to
an entity designated by BRFN. This information is being provided to you for your review and
comment.

This referral package includes:

• List of parcels where comments are requested (please refer to page 3)
• Detailed referral map(s)
• GIS files (in .kmz and .shp formats)

Your response can be submitted to the Tenure and Resource Stewardship Branch (TRSB)
by email to PNGreferral@gov.bc.ca. To meet target timelines for this proposed issuance,
we ask that you submit your response no later than March 18, 2024. The Province will be
proceeding to a decision on the proposed parcel after that date.

If you require further information or are unable to meet the above deadline, please contact
me by phone at (236) 455-1714 or by email at PNGreferral@gov.bc.ca.

Sincerely,

April Connolly
Senior Advisor, First Nations Relations
(236) 455-1714

Ministry of Energy Resources Division Mailing Address: Location:

Energy, Mines Tenure & Resource Stewardship Branch
PO Box 9323 Stn Prov Govt 4th Floor, 1810 Blanshard Street
and Low Carbon Phone: (250) 952-0333
Victoria BC V8W 9N3 Victoria BC
Innovation Fax: (250) 952-0291
List of parcels where comments are requested:
BRFN_53573

Additional Information on the Crown Petroleum and Natural Gas Rights Issuance
Process can be found online at the following links:

Oil and Gas Titles main page: http://www2.gov.bc.ca/gov/content/industry/natural-gas-

oil/petroleum-natural-gas-tenure

iMapBC (to view existing tenure): https://maps.gov.bc.ca/ess/hm/imap4m/

iPS Web (to look up tenure details): https://a100.gov.bc.ca/pub/ipsweb/mainPage.html

Ministry of Energy Resources Division Mailing Address: Location:

Energy, Mines Tenure & Resource Stewardship Branch
PO Box 9323 Stn Prov Govt 4th Floor, 1810 Blanshard Street
and Low Carbon Phone: (250) 952-0333
Victoria BC V8W 9N3 Victoria BC
Innovation Fax: (250) 952-0291
 121°50'W 121°45'W 121°40'W 121°35'W 121°30'W 121°25'W 121°20'W 121°15'W

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121°55'W 121°50'W 121°45'W 121°40'W 121°35'W 121°30'W 121°25'W 121°20'W 121°15'W

Detailed Referral Map BRFN Parcel PNG

BRFN Parcel Part A Well Activity

t
Deferred Parcels "
) Abandoned
Indian Reserve )
" Active
Peace_Moberly_Tract )
" Suspended
Active Tenure )
" Well Authorization Granted

Trapline Cabins
Traplines
Fort St. John
Parks / Protected Areas !
Dawson Creek
Roads !

Pipelines

Terrace
Prince Rupert
!
!
Prince George
!

0 1.75 3.5 7 10.5 14 Created: December 20, 2023

kms 1:175,000 Projection: Universal Transverse Mercator Zone 10 NAD83
 123°W 122°55'W 122°50'W 122°45'W 122°40'W 122°35'W 122°30'W 122°25'W

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123°W 122°55'W 122°50'W 122°45'W 122°40'W 122°35'W 122°30'W 122°25'W

Detailed Referral Map BRFN Parcel PNG

BRFN Parcel Part A Well Activity

t
Deferred Parcels "
) Abandoned
Indian Reserve )
" Active
Peace_Moberly_Tract )
" Suspended
Active Tenure )
" Well Authorization Granted

Trapline Cabins
Traplines
Fort St. John
Parks / Protected Areas !
Dawson Creek
Roads !

Pipelines

Terrace
Prince Rupert
!
!
Prince George
!

0 1.75 3.5 7 10.5 14 Created: December 20, 2023

kms 1:175,000 Projection: Universal Transverse Mercator Zone 10 NAD83