MONTHLY STATEMENT PROCESS - Terms and Conditions

THIS IS SCHEDULE 'A' TO THE MONTHLY
STATEMENT AGREEMENT FOR

_____________________________
NAME OF CLIENT

Terms and Conditions to the Monthly Statement Agreement
  1. (1)In this Agreement:

    1. "Acquisition" for the purpose of the monthly statement process, is where the Designated Representative changes from another company to that of your own;

    2. "Annual Rental Charges" means all annual rental payments due throughout a month in respect of Client's Applicable Crown Agreements;

    3. "Applicable Crown Agreements" means Crown Agreements of the types or kinds listed and set forth in Schedule "D" to this Agreement for which the Person named above as the Client is the payor on record with the Crown that are or have been made subject to this Agreement pursuant to section 2 of these Terms and Conditions and Schedule "D" of this Agreement; 

    4. "Business Day" means a work day for employees of the Crown;

    5. "Charges" means
      1. Annual Rental Charges and Manual Charges in connection with Crown Mineral Agreements, and
      2. Annual Rental Charges, First Time Surface Charges and Manual Charges in connection with Crown Surface Agreements, 

      but does not include charges related to the continuation of Crown Mineral Agreements, charges related to the payment of royalty on the Crown minerals or to gas or petroleum accounts or charges related to or incurred in respect of agreements that are not Applicable Crown Agreements;

    6. "Client" means the payor on record with the Crown in respect of the Charges contained in a Monthly Statement at the time the Monthly Statement is issued;

    7. "Client's Applicable Crown Agreements" means the Applicable Crown Agreements for which the Client is the payor on record with the Crown in respect of the Charges pertaining to those Agreements contained in a Monthly Statement; 

    8. "Crown" means, as the context requires, the Crown in right of Alberta, as represented by the Minister of Energy and the Minister of Environment or as represented by either of those Ministers;

    9. "Crown Computer System" means the Corporate Accounting and Reporting System (CARS), the Land Status Automated System (LSAS) and any other Computer Systems that carries, handles or generates the Charges for the Applicable Crown Agreements;

    10. "Crown Mineral Agreements" means Applicable Crown Agreements or types of Applicable Crown Agreements that pertain to minerals owned by the Crown in right of Alberta and that are issued under the Mines and Minerals Act;

    11. "Crown Surface Agreements" means Applicable Crown Agreements or types of Applicable Crown Agreements that pertain to the surface of land owned by the Crown in right of Alberta and to the development or production of Crown minerals and that are made under the Public Lands Act;

    12. 'Deemed Due Date' means the due date of any amount owing, due and payable to the Crown under a Monthly Statement that date being
      1. the 15th day of the month following the month in which the Monthly Statement is issued, if that day is a Business Day, or
      2. if the day referred to in paragraph (i) of this clause is not a Business Day, the first Business Day after that day;

    13. "Designated Representative" means that term as defined in the Mines and Minerals Administration Regulation (Alta. Reg. 262/97);

    14. "Divestiture" for the purpose of the monthly statement, process, is where the Designated Representative changes from your company to another company;

    15. "First Time Surface Charges" means all charges related to the initial issuance of a  Crown Surface Agreement and, for greater certainty but without limiting the generality of the foregoing, includes all assessments for timber damage, trappers' compensation and the application fees and rental that are received/accrued by the Crown before such a Crown Surface Agreement is issued;

    16. "Manual Charges" means all charges that are manually entered or inputted into the Crown Computer System and may include fees for amendments or renewals, searches, LSAS data tapes and no bid situations in respect of or related to Client's Applicable Crown Agreements;

    17. "'Monthly Statement" means the statement or statements generated on a monthly basis by the Crown Computer System that sets forth the Charges for the Client's Applicable Crown Agreements;

    18. "Person" means any natural or legal person, including a corporation, trust, general or limited partnership, limited liability company or other entity;

    19. "Supplementary Statement" means a statement that
      1. will only be produced if there are adjustments to be made to the specified Monthly Statement;
      2. identifies all adjustments to be made to the specified Monthly Statement; and
      3. sets forth a balance due that replaces the balance due on the Monthly Statement.

    (2) In this Agreement, a reference to the Mines and Minerals Act or to the Public Lands Act shall be construed as a reference to

    1. that Act, as amended from time to time,
    2. any replacement of all or part of that Act from time to time enacted by the Legislature, as amended from time to time, and
    3. any regulations, orders, directives or other subordinate legislation from time to time made under any enactment referred to in clause (a) or (b), as amended from time to time.

     

  2. Crown Agreements of the types set forth in Schedule "D" for which the Person named at the outset of this Agreement as the Client is the payor on record with the Crown shall, unless otherwise indicated in Schedule "D", be subject to the Monthly Statements in accordance with that Person's election in section 4 of the body of this Agreement.  Crown Agreements of a type described in Schedule "D" may be excluded from the operation or application of this Agreement only if an "X" or other indication is placed in the box opposite that type of Crown Agreement.    Schedule "D" is by this reference incorporated into and made a part of this Agreement. 

  3. Pursuant to this Agreement, Monthly Statements will replace all invoices from the Crown to the Client in respect of the Charges for the Client's Applicable Crown Agreements.   The Client may, at its option, receive Monthly Statements from the Crown in one of the following manners (which manner the Client must express in section 4 of the body of this Agreement):

    1. One Monthly Statement for the Charges for the Applicable Crown Agreements  (which in section 4 of this Agreement is referred to as "One Monthly Statement");

    2. Monthly Statements for the Charges pertaining or relating to Client's Crown Mineral Agreements and Client's Crown Surface Agreements (which in section 4 of the body of this Agreement is referred to as "Two Monthly Statements");

    3. Monthly Statements for Charges pertaining or relating to each of: the following: the Client's Crown Mineral Agreements; the Manual Charges and Annual Rental Charges in respect of Client's Crown Surface Agreements; and the First Time Surface Charges in respect of Client's Crown Surface Agreements (which in section 4 of the body of this Agreement, is referred to as "Three Monthly Statements")

  4. Pursuant to this Agreement, all Annual Rental Charges shall be deemed and considered to be due and payable on the Deemed Due Date.

  5. Manual Charges and First Time Surface Charges in respect of Client's Applicable Crown Agreements will be accumulated during the month in which they are entered into the Crown Computer System, and Monthly Statements in respect of those Charges will be issued by the Crown on the first business day of the next following month. The amount shown in respect of those Charges on such a Monthly Statement will, pursuant to this Agreement, be due from the Client to the Crown on Deemed Due Date.

  6. (1)If the Client surrenders a Crown Mineral Agreement and/or part of the location of a Crown Mineral Agreement pursuant to the Mines and Minerals Act and, at the time of surrender,  a Monthly Statement has been issued by the Crown that includes the Annual Rental Charges Applicable, as the case may be, to that Crown mineral Agreement or to the part of the location being surrendered, the Client shall
    1. pay the total balance due under the Monthly Statement, including those Annual Rental Charges, and
    2. ensure that the Crown receives all documents relating or pertaining to the surrender,

    on or before the Deemed Due Date.

  7. Each Monthly Statement issued pursuant to this Agreement will be sent by the Crown on the first Business Day of the month next preceding the month in which the Deemed Due Date for the Charges covered by the Statement occurs.

  8. Changes or adjustments to a Monthly Statement affecting the balance owing to the Crown as shown in the Monthly Statement may be made in response to a written request from the Client during the period from and including the date on which the Monthly Statement is sent by the Crown to and including the fourth Business Day prior to the end of that same month. A Supplementary Statement in respect of adjustments made to a Monthly Statement that reduce the balance of any of the Charges, or that increase the Annual Rental Charge, shown in the Monthly Statement will be sent to the Client at the beginning of the month in which the Deemed Due Date for the Charges covered by that Monthly Statement occurs. Adjustments to a Monthly Statement that increase the balance of the Manual Charges or the First Time Surface Charges as shown in the Monthly Statement will appear on the next Monthly Statement following the adjustment.

  9. The Client may, subsequent to the payment of the Charges covered by a Monthly Statement, request adjustments or changes to those Charges. Any adjustments will, if approved and agreed to by the Crown, be accounted for in the next Monthly Statement issued pursuant to this Agreement.

  10. Changes to a Monthly Statement, and adjustments to the amount owing under it, referred to in section 8 and 9 can be made only:
    1. in response to the submission to the Crown for an Adjustment Request as set forth in Schedule "B" attached to this Agreement; and
    2. upon completion of a review and approval by the Crown of the requested change or adjustment.

    Schedule "B" is by this reference incorporated into and made a part of this Agreement.

  11. The Client shall pay the Charges contained in a Monthly Statement on or before the Deemed Due Date for those Charges as specified in sections 4 and 5. If the Charges contained in a Monthly Statement are not paid in full on or before the Deemed Due Date, default notices will be issued by the Crown in respect of all Applicable Crown Agreements covered by the Monthly Statement seven (7) calendar days after the Deemed Due Date.

  12. When the client defaults in the payment of a Monthly Statement and default notices are issued, interest will accrue from the Deemed Due Date on any portion or amount of the Charges contained in the Monthly Statement that is not for any reason whatsoever paid on or before the Deemed Due Date:
    1. at the rate specified under the Public Lands Act, to the extent that such overdue Charges relate or pertain to Crown Surface Agreements; and
    2. at the rate specified under the Mines and Minerals Act, to the extent that such overdue Charges relate or pertain to Crown Mineral Agreement.

  13. By executing this Agreement, the Client hereby agrees to waive and does waive, but only to the extent of the provisions of this Agreement and of the requirements, obligations and duties under this Agreement, and only to the extent that they apply to the Applicable Crown Agreements, and for no other purposes whatsoever, the provisions of the Mines and Minerals Act and the Public Lands Act.

  14. The Client may, through the completion of a statement in the form set forth in Schedule "C" to this Agreement (herein called the 'Payor Name Change Request') designate a Person other than the Client as payor for the Charges in respect of the Applicable Crown Agreements.  The Crown shall keep confidential and not make available or release to any one any information concerning the payor that is contained in the Payor Name Change Request. Schedule "C" is by this reference incorporated into and made a part of this Agreement.

  15. The Crown may periodically review and update the forms set forth in Schedules "B", "C" and "D" of this Agreement.  When a form in a Schedule of the Agreement is updated, the Schedule will be deemed to consist of the updated form from the time of its creation until such time as a further update, if any, is made to the form.  The Crown will advise the Client of each update to any of the forms in the Schedules. 

  16. The Client must notify the Crown in writing of any changes made to the information provided by the Client pursuant to sections 2 and 14 of this Schedule not less than 10 days prior to the issuing by the Crown of the First Monthly Statement to be affected by those changes or to which those changes relate.