ROYALTY RELATED AUDIT SERVICES - OIL AND GAS ROYALTIES

THIS DOCUMENT CONTAINS A SECURITY REQUIREMENT

Indian Oil and Gas Canada (IOGC) is a Special Operating Agency of the federal government reporting to the Lands and Economic Development Sector, Aboriginal Affairs and Northern Development Canada (AANDC). IOGC is responsible for the management, administration and timely disposition of Indian oil and gas resources on Indian Reserves across Canada south of the 60th parallel.

IOGC operates under a legislative authority derived from the Indian Act, the Indian Oil and Gas Act, and the Indian Oil and Gas Regulations. As part of its trust responsibility, IOGC is responsible for the receipt and subsequent verification of royalty payments for oil, natural gas and gas products extracted from Indian Lands.

Royalty payers remit royalty payments together with monthly electronic royalty submissions and certain hard copy documents to IOGC. Oil Pricing/Volume audits, Gas Pricing/Volume audits comprising of Gas Product Pricing and Volume audits, Gas Cost Allowance (GCA) audits are some of the methods used to verify that proper royalties are being submitted to IOGC. These audits examine source documents supporting oil/gas and related product prices/volumes reported by royalty payers and conduct other tests deemed necessary to ensure that appropriate royalties are received by IOGC on behalf of the Indian bands.

The Contractor shall, on an "as and when requested" basis, as detailed in the Task Authorization issued by the Departmental Representative, provide the following services:

• Provide auditing services in accordance with the Generally Accepted Auditing Standards (GAAS) prescribed by the Canadian Institute of Chartered Accountants; • Prepare draft and final audit reports; • The Contractor may be required to participate in meetings and consultations which may require travel outside of the Calgary area; • The Contractor may be required to defend his/her audit findings in meetings with IOGC, a royalty payer, or in court.

The area of service delivery is the Calgary Metropolitan Area. The majority of Work will be conducted at oil and gas companies based in Calgary, Alberta and at the Contractor’s place of business.