Overview of the Call for Bids
A Call for Bids is a formal announcement by the Board that Exploration Licences (EL), Significant Discovery Licences (SDL) or Production Licences (PL) are available to be awarded through a competitive closed bid process. The land available for licensing has either been chosen for the Call by the Board or through a formal nomination, whereby interested parties can nominate specific land parcels that they deem prospective for future Call for Bids.
The Call for Bids specifies:
- The type of interest to be issued (EL, SDL or PL);
- The terms and conditions of the interest;
- The form and manner in which the bid is to be submitted;
- A closing date;
- The sole criterion that the Board will apply in assessing bids submitted in response to the Call.
NEW
The CNSOPB's new strategic direction is aimed at optimizing resource management. The Call for Bids NS08-2 is consistent with this new approach, and draws on best practices from other jurisdictions. Exploration Licences for these parcels contain new terms and conditions, for example:
- A lower minimum work expenditure bid, reduced from $1,000,000 to $500,000.
- By posting $50,000 upfront EL holders have three years to assess geology, raise financing, attract a farm-in partner or surrender licence before posting large financial requirements
- A 150% credit on allowable expenditures approved in the first three years.
- Deep water parcels allotted an extra year in Period 1 to account for the challenges of exploring in deeper waters.
Note: Appendix I of “Call for Bids No. NS08-2” was amended on March 10, 2009 to correct an error associated with the description of the “Lands.” Parcel 1, grid 42-30-61-15 now includes sections 46-50, which were previously omitted in error.
