capla - nexus...nexus return undeliverable canadian addresses to 2600, 144 – 4 avenue s.w....

NEXUS

RETURN UNDELIVERABLE CANADIAN ADDRESSES TO2600, 144 – 4 Avenue S.W. Calgary, AB T2P 3N4Office email: [email protected]

PM 40825561

November 2008

CAPLA: CELEBRATINg 15 yEARS Of SUCCESS

ALSO IN THIS ISSUEw Alberta Shallow Rights Reversionw 2007 CAPL Operating Procedure

w CAPLA Management Night

Trademarks

T he Trademark office of the Government of Canada describes a trademark as a

word, a symbol or a design (or a combination of these features) used to distinguish the wares or services of one person or orga-nization from those of others in the marketplace. Trademarks come to represent not only actual wares and services, but the reputation of the producer. As such, they are considered valuable intellectual property. A registered trademark can be protected through legal proceedings from misuse and imitation.

CAPLA®, the acronym that is commonly used to describe the Canadian Association of Petroleum Land Administration is our registered trademark. It must be used carefully and should not be used by other similar organizations.

How to use the registered trademark correctly: When the CAPLA trademark FIRST appears in a document (either printed document, PDF file, w

or website) it should be accompanied by the trademark symbol – CAPLA® When the trademark is placed in a document the following footnote should be placed on the same page – w

CAPLA® is a registered trademark of the Canadian Association of Petroleum Land Administration. The trademark statement should only be indicated once in a printed work or PDF file – w

that’s all that’s needed to protect it.In our web pages the trademark information will be included in the “about” file. w

CAPLA NEXUS is a Publication of CAPLA

NEXUS Editorial Committee Editor/Chair Kathryn Payne Editorial Team Susan Bayly, Shelbey Poirier,

Shane Raman, Melissa Sadal, Nadine Ukueku

Publication Coordinator Janice Schaalje

DesignFolio Publication Design

Printing McAra Printing

Article SubmissionArticles submitted for publication or queries about potential article topics are to be forwarded directly to the Editor/Chair.

Submissions from CAPLA Committees, the CAPLA Board, the CAPLA Office and ad hoc updates from external committees, educational insti-tutions, etc. are to be forwarded directly to the CAPLA Office Manager.

Publication SchedulePublication Submission Deadline Date Mailout DateFebruary NEXUS January 15, 2009 February 26, 2009Annual Report March 6, 2009 April 23, 2009April NEXUS March 12, 2009 April 23, 2009August NEXUS July 9, 2009 August 20, 2009November NEXUS October 8, 2009 November 19, 2009

®CAPLA is a registered trademark of the Canadian Association of Petroleum Land Administration.

IN THIS ISSUE

NEXUS November 2008

Relations: Mineral Tenure – Alberta Shallow Rights Reversion . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Shallow Rights Reversion: Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . 3

Message From The President . . . . . . . . . . . . . . . . . . . . . . . . . 7

Message From The CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Board Update: Strategic Planning . . . . . . . . . . . . . . . . . . . . 9

Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Relations: Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Olds College Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2007 CAPL Operating Procedure . . . . . . . . . . . . . . . . . . . . 11

CAPLA Communications Portfolio . . . . . . . . . . . . . . . . . . . 20

Centre for Energy Asset Management Studies (CEAMS) Update . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Relations: Mineral Tenure – Alberta Freehold Mineral Tax . . . . . . . . . . . . . . . . . . . . . . 23

Relations: Leadership Network – Leadership Network Steering Committee Updates . . . . . . . . . . . . 24

CAPL 60th Anniversary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Did You Know… . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Tracing the Many Paths of Production . . . . . . . . . . . . . . . 27

Relations: Mineral Tenure – B.C. e-Payments . . . . . . . . . 28

CAPLA Volunteers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

CAPLA Management Night . . . . . . . . . . . . . . . . . . . . . . . . . . 34

CAPLA Attends the 2008 NALTA Conference in Orlando Florida . . . . . . . . . . . . . . . . . . . . . 36

CAPLA information at a glance . . . . . . . . . . . . . . . . . . . . . . 38

Upcoming Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

CAPLA Office CEO Cathy Miller Office Manager Janice Schaalje Program & Events Coordinator Judy Uwiera IT Manager Sandy Clements Accounting Administrator Carolyna Collins

2600, 144 – 4 Avenue S.W.Calgary, AB T2P 3N4

Ph: (403) 571-0640 Fax: (403) 571-0644Website: www.caplacanada.org

Office Email: [email protected]

Board of Directors President Don Bartier Vice President Sherry Batke Education Brandy Brhelle Strategic Planning Jeff Bryksa Past President Gordon Dainard Communications Wendy Walker Relations Linda Westbury

Certification – Standing Chair Kevin MacFarlane Board Development – Standing Chair Michelle Sportak Recording Secretary Sabrina Ramcharan

Effective November 1, 2008 CAPLA’s membership was 2500.All articles printed under an author’s name represent the views of the author.

Publication neither implies approval of the opinions expressed nor accuracy of the facts stated.

CAPLA will make every effort to ensure that the material published in NEXUS complies with the CAPLA Communication Policy.

NEXUS w November 20082

Relations: Mineral Tenure – Alberta Shallow Rights Reversion

Shallow Rights Reversion is on track to be passed in the legislature during this fall session. As Shallow Rights Reversion is a significant change to the

way business is done today, the department has put the changes into the Mines and Minerals Act, rather than the Petroleum & Natural Gas (P&NG) Tenure Regulations. To become law, the bill must receive three readings, legis-lative approval and royal assent.

CAPLA members have played a key role in the process to date and will continue to do so as the processes get finalized. There are CAPLA members on both the Shallow Rights Reversion (SRR) Working Group and the Communications Team. The Working Group met every two weeks over the summer and the Communications Team met as required.

On September 4th, 2008 an Open House was held to discuss the options that the department could adopt. Linda Westbury and Sherry Batke helped to answer the questions in the breakout room. There were over 1,100 people in attendance. Feedback was received and reviewed prior to the department making the final decisions on SRR.

David Breakwell, Assistant Deputy Minister, Energy Policy and Research spoke at the October 21st, 2008 Management Night Dinner as the executive sponsor of SRR. On November 6th and 7th , 2008 eight informa-tion sessions were held to advise industry of the final decisions and what the processes will be.

3NEXUS w November 2008

All agreements purchased after January 1st, 2009 will be subject to SRR at continuation, as well as deeper rights reversion. The application process in the P&NG Tenure Regulation will apply. For these agreements the first severance will occur in 2014.

All existing agreements will be subject to SRR over a period of time, after a SRR notice has been served. Notices will be served beginning in 2011, on the oldest agreements first, starting with a small number per year and ramping up over time to 5,000 notices per year. As this project will take a number of years to complete, this could change over time. Shallow rights severance will take place at the expiry of the notice period.

A SRR notice will be for three years and will advise what the shallowest productive zone is based on the public records. If there is a shallower producing zone than listed in the notice, an application can be made to the Department of Energy. If the department disagrees with your application, you will be able to request a review of the decision. There will not be a provision for a late application.

Section 17 (potential continuation) of the P&NG Tenure Regulation will not apply after a SRR notice expires. Section 16 will also not apply; instead an extension of the notice period will be provided for qualifying wells.

Information is available on the Energy homepage: http://www.energy.gov.ab.ca/Tenure/603.asp.W

Brenda AllbrightDirector, PNG Tenure OperationsAlberta Department of Energy

Shallow Rights Reversion Frequently Asked Questions

What is shallow rights reversion?Shallow rights reversion (SRR) means that the petroleum and natural gas rights above the top of the shallowest productive zone in an agreement will be severed from the agreement at continuation. The depth of the shallowest zone will depend on the rights in your existing agreement i.e. shallow may be shallow, or deep. This is in addition to the existing deeper rights reversion. Rights between the top of the shallowest productive zone and the base of the deepest productive zone will remain in the agreement.

Why implement shallow rights reversion?To encourage increased production from up-hole zones by severing non-productive shallow rights and to fill existing pipeline capacity. There is an estimated 44 tcf of potential reserves to be produced.

Economics and cost to test shallow zonesWill shallow rights reversion force a company to shut down their well in order to conduct a test in a shallow zone?Each company will make their own decision on how to prove their shallow rights. Shallow rights can be proven in a number of ways including:

use of geological mapping to prove the shallowest w

productive zoneunitized zones w

payment of offset compensation w

proving productivity with a good gas test or produc- w

tion either by re-entering an existing wellbore or drilling a new well


Will the Department of Energy consider relaxing the continuation rules for shallow rights?The same continuation rules will apply for shallow zones as currently apply to deeper zones. The department will continue to review all tenure policies on a regular basis and amend them if appropriate.

Surface FootprintWill SRR significantly increase the surface footprint by requiring increased drilling?The Government of Alberta does anticipate an increase in drilling as a result of SRR however there are several ways to prove the shallow zones so new drilling is not the only option.(see question 1). The development of shallower hydrocarbon resources that result from the SRR policy will be managed based on existing policy and management approaches. The increase in surface foot-print will be mitigated by staging the implementation over several years and may be mitigated by innovative ways to utilize existing surface disturbance. Legislated protected areas and other areas may be off limits to SRR.

Will SRR cause additional development near cities and towns?There is the potential for additional development across most of the province. Activities associated with this energy development will be managed in the same manner as current activities with the same opportunities for stakeholder consultation and involvement.

Will operators be able to use existing surface leases and wellbores to exploit shallower rights or is there likely to be an increased industry footprint resulting from additional roads, well pads, flow lines and associated infrastructure?In some cases industry will make use of existing access and infrastructure. The re-entry of existing wellbores and hence the re-use of existing surface leases and roads may be an approach used by industry as approved by the

appropriate regulator. Not all existing facilities, roads and surface leases will lend themselves to exploitation of shallower hydrocarbon-bearing formations so that some additional surface impacts are likely to happen.

Activity LevelsDoes the Energy Resources Conservation Board (ERCB) anticipate an increase in non-routine applications?With the potential for more wellbores, more testing and additional infrastructure under an accelerated shallow devel-opment proposal, there is the potential for more conflicts resulting in non-routine ERCB applications. However with appropriate SRR implementation rules, compliance to the regulations, increased efforts by companies to plan and to coordinate multi-company development activities, and effective consultation, the ERCB believes conflict manage-ment issues should not change significantly. The expected ongoing success in the ADR process, supported by increases in ADR staff, will also assist in this regard.

Will the Government of Alberta be able to handle the increase in workload to handle SRR?The Government of Alberta will need to acquire addi-tional resources in order to accommodate the increase in workload during the implementation period and main-tain appropriate turnaround times.

Does the ERCB expect an increase in common carrier and common processor applications from owners of the shallow resource?Utilizing existing infrastructure is the preferred option to reduce the footprint of oil and gas activity, however, in many instances deeper production has higher operating pressures than the shallow zones and may not be suit-able for common production streams. The ERCB will continue to support the use of the Alternate Dispute Resolution process to settle disputes; however they will hold hearings as required.


Will SRR mean more seismic activity?If existing seismic data was shot for deeper strata and the technical parameters are different to image shallower depths then a new survey may be needed. This will be determined by the quality of industry data and also the existing regulatory approach for seismic activity.

Agreements Subject to Unit AgreementsWill SRR affect agreements that are subject to unit agreements?If the shallowest rights are unitized, they will not be affected.

Alignment with Other Provincial Policies/InitiativesHow does the implementation of SRR align with other government policies or initiatives such as the Land Use Framework, Integrated Land Management, the Draft Wetland Policy and the management of greenhouse gas emissions?Development of the shallower hydrocarbon resources that result from the SRR policy will be managed in accordance with provincial policy and adhere to the provincial regulatory framework.

Will the additional activity generated from SRR create additional impacts on wildlife and biodiversity, and specifically on species at risk?SRR will not always result in additional activity. Surface activities will continue to be subject to current practices approved by regulatory agencies such as ERCB and SRD. Common mitigation practices include directional drilling from common well-pads, joint use of roads and flow-lines, etc.

Will the exploitation of shallower rights mean more coalbed methane (CBM) development and will useable groundwater be affected?Shallow-rights exploitation could result in more CBM development. Existing rules and practices to protect groundwater will continue to be implemented by regulatory agencies such as ERCB and Environment. As technology improves, other coal zones may become economic and best operating practices will be developed to minimize the effect.

Will SRR development increase the demand for water for drilling or injection to assist with production from the shallower horizons?SRR will slightly increase the demand for the small amount of water used for drilling purposes. All produced saline water is either sent for injection into approved disposal wells or else injected back into the producing formation. When water is needed for injection, operators may be able to use produced saline water from deeper production, or else draw from the same approved water sources used for other wells in the vicinity.

Spacing, Commingling and ConsolidationIs the department contemplating using different continuation rules for spacing units and commingling for implementing SRR?The petroleum and natural gas tenure system uses spac-ing units for issuing and continuing agreements. These same spacing unit rules will be used for SRR. However, the department has recently reviewed commingling rules and will clarify the rules as they affect the shallow and deep zones that are eligible for continuation.


Can companies consolidate shallow rights documents and deep rights documents to maximize continuation of more zones?Consolidation can occur if you have the same ownership interests and designated representative and documents must be in the same vintage (primary or continued). Initial term licenses can’t be consolidated.

FlaringIs the ERCB contemplating changing any rules for the possible increase in flaring that may result from the implementation of SRR?The ERCB has rules in place for flaring and does not contemplate a need to change them for SRR.

DefinitionsCapable of producing in paying quantityThe Department determines capability by several factors, including production, tests, reserves, logs and mapping of wells on the agreement and in the area.

Deeper Rights Reversion Zone Designation (DRRZD)A DRRZD identifies a zone by its name. As noted in ERCB Decision 95-10, historically the name of the zone identified within type wells takes precedence over the depths identified in terms of utilizing a DRRZD

FormationA body of rock identified by lithic characteristics and stratigraphic position; it is prevailingly but not neces-sarily tabular, and is mappable on the Earth’s surface or traceable in the subsurface

PoolA natural underground reservoir containing or appearing to contain an accumulation of oil or gas or both sepa-rated or appearing to be separated from any other such accumulation

Potentially Productive ZoneA zone that is, in the opinion of the Minister, potentially capable of producing petroleum or natural gas or both in paying quantity

Producing WellA well that is considered by the Minister to be a produc-ing well on the basis of the records of the Board and other information available to the Minister

ProductiveCapable, in the opinion of the Minister, of producing petroleum or natural gas from [a] well in paying quantity

ProvenTreated the same as “productive”

ReservoirIn petroleum geology, any porous and permeable rock that yields oil or gas

TestPhysical recovery of a measurable quantity of hydrocar-bons at the surface

ZoneA stratum or series of strata considered by the Minister to be a zone for the purposes of the P&NG Tenure Regulation

Zone Designation (ZD):Designates a lithostratigraphic zone described specifically by the depths identified in a particular well. ZDs are used, for instance, to describe the zones included in natural gas leases. When a ZD is being used, the depths and the inter-val take precedence over the name given to the zone W

Reprinted with permission from Brenda Allbright Director P&NG Tenure Operations, Government of Alberta http://www.energy.alberta.ca/Tenure/912.asp


Message From The President

Looking back over 2008, CAPLA had a successful and eventful year. None of this would have been possible without the dedication and effort from

our volunteers and CAPLA staff, our sponsors, our part-ners and our employers. I’d like to remark on just a few of the highlights in 2008:

Several years ago, the Board embarked on a change from being a hands-on, decision-making “operations” board to becoming a governance and policy board. In 2008, I am proud to say that we have implemented the largest part of this goal. In July we hired our CEO, Cathy Miller. She has taken firm control of CAPLA’s operations and administration. The transition of control of our operations from the Board to the CEO is very nearly complete.

We dipped into our finan-cial surplus this year – for the first time in many years – to address the hiring of our CEO, resolve system issues, and to prepare for the Surface Administration Certification Program. I think you will be pleased – I certainly am – with the results of these investments in our future.

Our biennial Conference and Gala once again met the standards established in previous years, and set a new mark for future conferences. Congratulations to all of you who so generously gave of your time to make the 2008 Conference and Gala successful.

CAPLA is working closely with the British Columbia Ministry of Energy Mines and Petroleum

Resources to implement e-Payments within the Industry. We also worked alongside the Alberta Department of Energy to disseminate information on and help plan for shallow rights reversion. We continue to pride ourselves in our cooperative relationship with governments and

regulators in accomplishing change, and are delighted that we can play a role in improving the processes and practices in the Industry.

I would also like to single out and thank each and every one of our volunteers on all of our committees, events and taskforces, but I don’t have the space in NEXUS to do so.

These people are the reason CAPLA is known in Western Canada as an organization that “get things done!” So I will end by wishing Season’s Greetings and a Happy and Prosperous New Year to all.W

Don BartierCAPLA President

The transition of control of our operations from the Board to the CEO is

very nearly complete.


Message From The CEO

I am very pleased and proud to be the new CEO of CAPLA. I hit the ground running my very first day by attending a breakfast meeting with our Relations

Committee and representatives from the BC government – and I have maintained that same high level of energy ever since. CAPLA is such a dynamic organization with so many initiatives in the works that my first three months have just flown by.

I am very impressed with the quality of our volun-teers, their professionalism and their level of commit-ment. At a time when other organizations are crying about the lack of volunteers, we have volunteers active in every aspect of CAPLA. Our Board of Directors are a very dynamic group and I was very pleased to be involved in their annual strategic planning session held in September. You will read more about their forward thinking and goals in an article by Jeff Bryksa in this issue of NEXUS.

One of my first priorities when I started in July was to be very visible and take advantage of every opportu-nity to meet CAPLA members, volunteers and partners and to understand what benefits CAPLA currently deliv-ers to each of you. I have met a lot of people over the past three months and everyone has been very welcom-ing and helpful by providing me with their insights into what CAPLA means to them and how our organization can deliver greater benefits in the future.

My second priority has been to review all of our systems and structures and to then make decisions that will improve our service to members. With that in mind, I am happy to tell you that we will be focusing on improving our web services for members and revitalizing our website look and functionality. Look for changes later this year and early in 2009.

I have also identified communications as an area of vital importance to CAPLA and have been working with Wendy Walker, Director of Communications to develop a Communications Policy, Communications Plan and Communication Procedures. We will keep you posted as we work our way through these initiatives. Part of our communications initiative included completing work on obtaining the trademark for CAPLA. We have been successful and you will see the official certificate reprinted in the inside cover of this issue of NEXUS.

It is also my great pleasure to extend a special invita-tion to you to attend our 15th Anniversary Kick Off Event on Wednesday December 3, 2008, from 4:00 pm to 6:30 pm at the Sunlife Conference Centre. This will be a great opportunity for you to speak directly to me and the members of our Board.

I look forward to meeting you and hearing your thoughts and ideas about CAPLA. How can we make CAPLA even more vibrant than it is today? You can contact me via email at [email protected]. W

T. Cathy Miller, CAEChief Executive Officer


Board Update: Strategic Planning

On September 13, 2008 the Board met to draft CAPLA’s Strategic Plan to 2011. This was done to ensure that our future goals are in alignment

to our Vision, Mission and Values as well as follow the new governance model adopted by CAPLA. Last year we saw the roll out of Phase 1 of the governance model in the hiring of our CEO, T. Cathy Miller. This year Phase 2 will be the target.

The high level target of Phase 2 will result in all of CAPLA’s operation, Board committees, operational committees and communication processes adopting best governance practices and completing this transi-tion by December of 2010. To start this off, an ad hoc committee to manage this transition will be set up with Terms of Reference approved by the Board by the end of November 2008.

Another part of Phase 2 is the continuing develop-ment of the professional designation status within the Province of Alberta. A Chair and approved Terms of Reference will be in place by October 2008 to start the framework for this initiative to identify the key decision points through to 2017.

The final goal of Phase 2 will be to have a plan in place to outline all of the internal and external commu-nication processes and protocols by the end of December 2009. In the upcoming months look for a timeline track-ing our progress posted on the CAPLA website! W

Jeff BryksaDirector, Strategic Planning

Relations “New Name … New Structure”

Our new name is “Relations” and our structure has changed. In an effort to reflect and capture our business and increase our ability for growth

and reporting we have created a new structure. The new Relations portfolio will be structured into five key areas:

Industry Associations w

Mineral Tenure w

Surface w

Contracts w

Leadership Network w

Each key area will have a Chair responsible for report-ing directly to CAPLA’s CEO, providing an update on emerging issues, progress on goals, communication through NEXUS and annual budget recommendations.

The Industry Associations Chair and committee members will manage the Synergy Groups relations. There is an opportunity for CAPLA to work with other associations and being at the table with these associations is an asset and will promote the growth of CAPLA. The Chair will work closely with the other four Relations Chairs to disseminate emerging issues, communicate opportunities and share knowledge on our initiatives and education programs. We are currently recruiting a member for the Chair position.

The Mineral Tenure Chair and committee members will manage tenure in all provinces. They will work closely with governments and internally with the Surface and Contract committees to enable initiatives that impact administration in our business. Marion Leonardo is Chair of Mineral Tenure.

The Surface Chair and committee members will manage surface issues and initiatives in all provinces. The Chair will work directly with government and regu-latory bodies. William (Bill) Sheers is Chair of Surface.


The Contracts Chair and committee members will manage all contractual, partner and regulatory initiatives in partnership with Tenure. A focus on contractual and legal issues faced by our contract analysts, contracts land-man, and negotiators will be strengthened, along with an educational component. We are currently recruiting a member for the Chair position.

The Leadership Network Chair and committees will develop and implement a CAPLA Leadership Program using forums, sessions and tools that support devel-opment of our leaders. Verna Moodie is Chair of the Steering Committee.

The new structure will ensure each key area of Relations is accountable for their own emerging issues and initiatives. The Chair and committee members will have the ability to control and manage their own areas of expertise.

Our Relations website will be updated in the next few weeks to reflect this new structure and committee volun-teers. As you can see from this new structure, CAPLA has many volunteer opportunities that may be of interest to you. Please contact Linda Westbury at (403) 260-1734 or email at [email protected]. W

Linda Westbury,CAPLA, Relations Director

Relations: Contracts CAPL Farmout & Royalty Procedure Update Project

An Industry committee has begun a review of the 1977 Farmout & Royalty Procedure. The mandate is to incorporate learnings from

the 1997 document, modifications to reflect a more modern drafting style, alignment to the 2007 CAPL Operating Procedure and a broader content accommo-dating a greater diversity of head agreement structures.

The committee is made up of representatives of major stakeholders being CAPL, CAPLA, PASC, PJVA, SEPAC and Legal. The tentative timeline is to have an initial draft out to Industry for comments before the end of 2008. W

Lynn Gregory, CAPLA Representative

A focus on contractual and legal issues faced by our

contract analysts, contracts landman, and negotiators will

be strengthened, along with an educational component.

Olds College Update: Olds College Land Agent and Land Administration Programs

The 2008-09 Land Agent and Land Administration programs are underway with sixty students registered in the Land Agents’ first year and fifty-five in year two. In the Administration program, although we suspended the Calgary Campus intake of Land Admin for this fall, at Olds we have twenty-five Land Administration students.

As you may be aware we have interviewed many people involved in our industry including current and past students, industry managers, regulators and government officials to ensure the College is aware of changes required in areas of regulation, administration, environment and technology. Industry input has been included as part of a significant curriculum rebuild, both in the Land Agent and Administration programs, and will be implemented in the fall of 2009.

Olds is also continuing contact with the Registrar of Land Agents and is working to ensure the educational requirements under the Land Agents Licensing Act are supported.

Tara S. Lloyd, Instructional Assistant Land Agent & Land Administration , Olds College


2007 CAPL Operating ProcedureIndependent Operations – Part 2

T he 2007 CAPL Operating Procedure was endorsed by the CAPL and CAPLA Boards in June, 2007 and subsequently by the Boards of

PASC, PJVA and SEPAC. The decision to seek endorse-ments from the other industry associations reflects the fact that the Operating Procedure is an industry docu-ment for which CAPL is the custodian, rather than only a land document.

The CAPL web page includes: (i) an introduction to the document; (ii) the text and annotations; (iii) a detailed matrix that outlines significant changes relative to the 1990 document; (iv) a matrix of the verbatim comments on the November, 2006 draft (company codes) and our response to each individual comment; (v) an overview of the 2007 document; (vi) a sample election sheet; and (vii) materials on the precedent Operation Notice project.

The CAPL office has reference binders available that include the 2007 CAPL Operating Procedure materials and additional associated reference materials to facilitate the transition to the new document. CAPL continues to offer one day courses on the document to assist users in the transition to use.

An article on the 2007 CAPL Operating Procedure will be included in NEXUS for the next several issues to provide an overview of some of the major areas of change in the document.

Two major themes have permeated all versions of the Operating Procedure. The first is the need to balance the

needs of Operators and Non-Operators. The second is the need to balance the rights of individual parties with those of the parties collectively through the inclusion of process controls and enabling mechanisms.


Understanding these themes and their implications enables users to see the Operating Procedure as much more than a detailed collection of requirements and processes-to see it instead as an integrated whole in which recognizable patterns exist and outcomes are predictable.

This is the second of a series of articles that relates to the theme of balancing the needs of an individual party with the parties collectively in the context of Independent Operations.

Two types of process mechanisms are included in an Independent Operations Article for the protection of the other Parties-controls on the process through which an Independent Operation may be proposed and conducted and the inclusion of consequences for non-participation that do not distort investment decisions.

This article focuses on the “process of the process” by examining the material changes in Clauses 10.01-10.05, 10.09, and 10.11-10.20.

ContextAlthough not addressed specifically in the review of changes presented in the articles, one area of focus over the course of the project was to edit the materials aggres-sively to try to make the outcomes more transparent to an audience with diverse experience levels.

There is an inherent level of complexity in an Independent Operations Article, though. This was the case in the 1990 document. It is also the case in the corresponding provisions of the AIPN international precedent, in the 2000 AAPL deep water offshore model and all of the Canadian frontier JOAs we have reviewed.

The challenge in the Independent Operations area is even greater when one realizes that the Article actually only comes into use when there is a potential misalign-ment between the Parties. It is also important to recall that independent operations were actually conducted relatively infrequently prior to the 1990s, such that many of the issues in this area did not become apparent until recent years.

Given a choice between taking short cuts and ignor-ing issues we know exist or covering these issues in a way that we believe provides a reasonable outcome for users, we have typically chosen the second path. Although this undoubtedly makes the review of the document as a whole (i.e., reading it all to get up to speed) more diffi-cult, we believe that the inclusion of the additional depth and breadth of coverage will ultimately simplify the document for a negotiator who is trying to understand how to address a particular issue that arises when faced with a real world problem.

This is because the document is comparable to the user manual for a car. While the entire document will typically be reviewed for familiarization, its real day to day use is to address specific problems. The user at that point has a very definite preference for a clear answer to the immediate problem, rather than an incomplete answer that would have enabled the manual to be shorter or simpler. This is reinforced when I note that I have never had someone calling with a real world problem who complained that the document provided too much information on the issue to help them address their problem.

Clause 10.01: Definitions-Article 10.00Definition of Non-Participating Party: We modi-fied the definition to be clearer that a Party that takes in kind or pays a fee as permitted in the Article is not a Non-Participating Party for a prescribed cost recovery. We made a consequential modification to the liabil-ity and indemnification provision (Clause 10.18), so that such a Party receives the same protections as a Non-Participating Party.

Definition of Operation Notice: We moved the require-ments for an Operation Notice from the former Clause 1002 to the definition. We also clarified the requirements in the definition with the following enhancements:


(i) reinforced the requirements in the definition of AFE to identify the location suitably;

(ii) added a duty to identify any special response period under Subclause 10.02B and the basis for the conclusion that the special response period applies;

(iii) added an obligation to identify any proposed applica-tion of Clause 10.10, including a description of the Joint Lands to which the Proposing Party believes the Clause will apply, recognizing that this is ultimately subject to the dispute resolution process prescribed by Subclause 10.10G if there is a dispute; and

(iv) added a requirement to identify any application of the dual status (Clause 10.05) or dual use (Clause 10.06) process to a well.

A related project that was initiated based on the comments on the 2003 draft was the Precedent Operation Notice project, as reviewed in an earlier NEXUS article. This project was completed in the fall of 2006, and the resultant precedent Operation Notice materials were included on the CAPL and CAPLA web pages. Those materials have been updated to reflect the final version of the 2007 document. We have continued to present the sample applications of the precedent in the context of the 1990 document, though, to facilitate use of the precedent in the near term. We intend to update the examples to the 2007 document year after the transi-tion to the 2007 document.

Definition of Receiving Party: We modified the defini-tion to be clear that a Non-Participating Party subject to a cost recovery typically will not be regarded as a Receiving Party for additional Operations on that well. There are several exceptions to that handling (e.g., a Deepening on Sidetracking under Subclause 10.08C, any re-election rights at law).

Clause 10.02 – Proposal Of Independent Operation And Responses

Subclause A: We deleted the traditional duty to consult, as it is typically ignored.

As noted in CAPL Negotiator articles in June and September, 2007, we modified Subclause A to be clear that the normal response period applies to a well subject to an application for a holding or another change of well density. This issue is arising frequently because of delays in processing holding applications. We addressed the issue in this manner because of the presumption that the holding will be granted in due course, even though the permitted drilling density may be modified from the requested drilling density.

Subclause B: We made a number of modifications to the response period prescribed by this Subclause, as noted below:

(i) tightened up the 15 day Crown sale exception to improve the linkage between the well and the sale parcel (e.g., the well needs to penetrate formations that correspond to those included in the sale parcel, penetration of a comparable formation reasonably has to be expected before the sale date);

(ii) limited the 48 hour notice response to situations in which rig was on location for a prior Operation. There has been an increasing frequency of abuse of the 1990 provision, as companies move a rig to the site for a new Operation on short notice in order to trigger the 48 hour response period. There is additional protec-tion in the 2007 document that there is no require-ment to respond to a 48 hour notice prior to expiry of the response period for the original Operation, such that a Party cannot be requested to respond to a Deepening request before its initial response period for the original drilling Operation has expired;


(iii) there is a special election period for Subclause 10.06C Operations (well being imported into the Agreeement) if a rig is already on location. This is designed to encourage early consultation with the other owners; and

(iv) there is a requirement to provide an informational copy of the response to an Operation Notice to the other Parties. This is designed to improve the trans-parency of the election process. Failure to provide a copy of the election to the other Parties does not, however, invalidate an election.

Subclause F: The election deferral mechanism in this Subclause has traditionally applied to any additional well proposed by a Party as an Independent Operation under this Agreement within 3.2km of a prior well proposed as an Independent Operation hereunder by that same Party until the earliest of certain events. The deferral is based on the premise that there is a technical interrelationship between the wells and that an individual Proposing Party should not be able to trigger elections from the other Parties for an additional well it may choose not to drill after it sees data from the earlier well.

We made a number of changes to the election deferral mechanism, as follows:

(i) Modified, so that the deferral right also applies to each Operation Notice if a joint well is then in the process of being drilled or Completed under either Article 7.00 or 10.00. This ensures that a well approved to be drilled for the Joint Account under Article 7.00 has the same impact as a well approved to be drilled for the Joint Account as a result of the responses to an Operation Notice under Article 10.00.

The revised Subclause goes one step further and basically treats each well being drilled for the Joint

Account under the Operating Procedure as if it were proposed by each Party. This ensures that a joint well enables all Parties to defer their response to an addi-tional well that is proposed by any of them under the same Operating Procedure within the 3.2km radius of the first well. This treats all Parties equally with respect to the impact of a joint well, when prior versions of the document operate only to impact the Proposing Party of the joint well (i.e., the Operator).

The traditional “proposed by that Party” test applies if the initial well is not drilled for the Joint Account.

(ii) Modified to enhance clarity for a Deepening/Sidetracking and Clause 10.10 wells. The changes provide greater flexibility in the expiry scenario, and ensure that a Non-Participating Party with an opportunity to participate in a Deepening or Sidetracking under Clause 10.08 cannot modify its risk by obtaining well information to which it is not then entitled under Clause 10.19.

(iii) Clarified that the normal response period begins after completion of the deferral.

(iv) Clarified for a Participating Party in the preced-ing Operation that the response for a Completion is deferred until receipt of the prescribed drilling information and that a response for an Equipping is deferred until Completion information is in hand.

Subclause G: This optional Subclause enables users to except from the Subclause 10.02F election deferral process shallow drilling programs for wells above a nego-tiated depth (“projected total vertical depth is less than ___m subsurface”).

This addresses in a very simple manner a major problem area in previous versions of the document.


Although the Receiving Parties may still elect on a well by well basis (rather than on an entire shallow program), this Subclause does not allow them to defer their elections until they see the results from other wells in the program.

While a Receiving Party may elect not to participate in a particular well included in the program, this is likely to be the exception in practice given the nature of shal-low infill programs.

The inclusion of the optional Subclause substantially addresses the issues relating to shallow programs, and may often facilitate a program approval under a single AFE in practice.

Parties should consider making this amendment to pending agreements that will be using the 1990 Operating Procedure if shallow drilling is contemplated. They should also consider amending existing agreements to include a comparable provision, where warranted by the nature of antici-pated activities.

Clause 10.03 – Time For Commencing OperationWe made several material modi-fications with respect to this area, as follows:

Definition of Commenced: Clause 1.01 includes a definition of Commenced that brings greater certainty to such references as “commenced” or “commencement” for the purpose of this document (versus any application to a freehold lease held as a Title Document). This has often been a contentious issue, particularly for wells.

“Commenced” is equated to Spudding for drill-ing a new well, as in Subclause 701(a) of the 1981 document. This is subject to Force Majeure, which, by definition, includes the inability to obtain licences or approvals required under the Regulations. Increasing

the general Commencement period to 120 days under Clauses 7.01 and 10.03 largely mitigates any negative impact of this definition.

The Spud date will generally be appropriate for drilling because of the increase to the Commencement period. Surface access issues for some remote areas or areas expected to involve sensitive stakeholder consulta-tion might warrant amendments, though.

The onus is on users to recognize and address those exceptions in the agreement or, in the alternative, to address them at the time for any particular well. The simplest way to address a special circumstance is to extend the Commencement period by 60-120 days in Paragraph 7.01(b) and Subclause 10.03B, but some Parties might

choose to modify the definition to use the initiation of road or wellsite construction, rather than the Spudding of the well.

Parties should consider identi-fying this issue in their precedent election sheet as a potential amendment, to mitigate the risk that it would be missed when preparing an agreement for a chal-lenging operating area.

Issuance After Operation Commenced: Subclause A has

been modified to include a limitation that a Party is not to Commence a well until it has served an Operation Notice for the well. This is subject to the qualifica-tion that the normal Clause 10.02 notice and election process will apply if this happens, but that the Receiving Parties would retain any other legal remedies they have for failure to serve the Operation Notice before Commencement of the Operation.

The restriction allows the normal notice and elec-tion process to apply to the Commenced Operation, to reflect the practical fact that this will sometimes happen

Parties should consider making this amendment to pending agreements

that will be using the 1990 Operating Procedure if shallow

drilling is contemplated.


inadvertently. This is based on the principle that the Operation should not be frustrated by limitations in the document.

Because this could occur in circumstances in which the failure to issue the Operation Notice before Commencement could see the Receiving Parties damaged, the application of Clause 10.02 to the Operation Notice does not deprive the Receiving Parties of any other legal remedies they may have. While it is likely that the Receiving Parties would not be damaged in the vast majority of cases, there are situations in which they would be (i.e., the well had been drilled into a Crown sale or to position for a farmin).

Unilateral Termination Of Operation: An annota-tion has been included to remind users about the risks of unilaterally terminating a proposed Operation in circumstances in which the other Parties believe that the well will proceed and are relying on that belief. This is particularly the case in an expiry scenario or any situa-tion in which the Proposing Party benefits by not seeing the well proceed (e.g., a competitive drainage scenario).

The reference in the provision that the other Receiving Parties are no longer bound by prior elections does not necessarily preclude another Participating Party from pursuing legal remedies for any losses it suffers if a well it approved does not actually proceed.

Clause 10.04 – Operator For Independent OperationThe provision was modified so that there are two Alternates. Alternate A (a) is similar to the provision in the 1990 document. Alternate A (b) provides the Operator with the right to take over the Operation, in which case it will operate it in substantial compliance with the Operation Notice. Alternate A (b) allows the Proposing Party to proceed with the Operation on a basis similar to that in Alternate A (a) if the Operator declines to operate.

Under both Alternates, the Operator has the subse-quent option to take over the Operation if the Operator is a Participating Party, but not the Operator. That point is at the completion of any program conducted at Casing Point under Article 9.00, including completion of any associated Abandonment.

The inclusion of the Alternates provides greater flexibility for users in light of the degree to which many users had been amending the 1990 provision to replace the 1990 clause with the 1981 provision.

The modifications to the former 1981 mechanism reflect the fact that an Operator will not necessarily choose to operate an Operation in which it elects to participate and the need of the other Parties that the conducted Operation be substantially the same as the Operation presented to them (i.e., timing, location, program, etc.).

The Clause also clarifies that an Operator taking over the Operation only has the right to assume contracts for goods and services if those contracts pertain exclusively to the particular Operation.

Clause 10.05 – Separate Election Where Well Status DividedWe made several modifications to this provision, as follows:

(i) broadened the scope of the provision, so that the same principles apply to a Completion program in both the development and exploratory zones. This reflects the traditional principle that a Party should not be required to participate in unrelated exploratory activities to preserve its rights in devel-opment activities;

(ii) expanded the annotations about the potential nego-tiated application of the approaches in this Clause to the situation in which a Development Well had multiple objectives and the Parties were misaligned on the well;


(iii) streamlined Paragraph 10.05C(b). We shifted the consequences of reimbursement to Paragraph 10.07A(e) and Subclause 10.07B, as those concepts were more appropriately presented in those provisions;

(iv) clarified the notification expectation if the Participating Parties in the Exploratory Well portion of the well exercise their pre-emptive rights for the well; and

(v) expanded the annotations to remind users of the potential benefits of preparing additional documen-tation at the time to supplement the application of the Clause. This is particularly beneficial if the production from the well will be commingled.

Clause 10.09 – Abandonment of Independent Well

We made the following modifications to this Clause:

(i) moved the content from former Clauses 1006, 1009 and 1015 into this Clause as Subclauses, so that the Abandonment provisions were in the same Clause;

(ii) clarified Subclause B by adding a reference to the

handling of Abandonment costs in a cost recov-ery calculation. This change ensures that the Participating Parties can include their forecast future Abandonment costs when calculating a cost recovery for a well approaching Abandonment;

(iii) included an annotation for Subclause B about the Abandonment process and the Non-Participating Parties to provide greater context for users;

(iv) made major editing changes in Subclause C, and clarified the interrelationship with Clause 9.04 and Subclause 10.08E. Some of the traditional content

was superfluous, as a cost recovery altered the right to production from a well, not the Working Interest in the Joint Lands; and

(v) clarified Subclause 10.09C by stating that a Non-Participating Party only acquires rights in an Abandoned well hereunder if it has a cost responsi-bility for the Abandonment under Clause 9.04 or Subclause 10.08E.

Clause 10.11 – Independent Geological or Geophysical OperationPrevious versions of the document provided a Party with a time limited opportunity to acquire a copy of the data for 200% of its share of the program cost. This was modi-fied, so that a Party offered participation that declines has no rights to the data from that program, other than those it can negotiate in due course.

This change was made so that a Party offered participation was in the same position as a Party that had not been offered the opportunity to participate in the program. The previous provision also potentially encour-aged non-participation in the program because of the subsequent right to acquire the data if a well location were matured and presented.

Clause 10.13 – Non-Participation in Installation Of Production FacilityWe made a number of modifications to this Clause, as follows:

(i) moved former Clauses 1021 and 1022 to Clauses 10.13 & 10.14, to reflect the ongoing retention of the Production Facility provisions in the document;

(ii) modified the take in kind election, so that there is no right to make this election if the nature of the Production Facility doesn’t allow a Party to take in kind without using it;


(iii) expanded the elections available to a Receiving Party to include an election to pay a fee for use of the proposed Production Facility;

(iv) modified, so that a Receiving Party can challenge an Operation Notice for a Production Facility if it believes that the proposed facility does not meet the criteria in the definition of Production Facility, in which case the dispute resolution process can apply to the issue; and

(v) modified to use Market Price as a revenue control in the cost recovery calculation, as in Subclause 10.07A;

(vi) modified to include a right to pay out the cost recov-ery in cash (Subclause 10.13E), with consequential changes to the adjustment process in Subclause 10.13H.

Clause 10.14 – Non-Participation in Expansion Of Production FacilityWe modified the Clause to provide a Non-Participating Party with the right to pay the outstanding cost recovery amount in cash in order to participate in a proposed expansion of a Production Facility.

Based on feedback from the PJVA, we also lowered the cost recovery on an expansion from 200% to 150% to recognize the unique handling of expansions and to encourage dialogue.

Clause 10.15 – Accounts and Audits During Penalty RecoveryWe made major modifications to this Clause to reflect problems with the expectations in the traditional Clause and poor industry performance in monitoring payout accounts. These included:

(i) shifting from monthly statements to a distribution frequency similar to that in the CAPL Farmout & Royalty Procedure, given that the traditional require-ment has typically been ignored. Notwithstanding the revised provision, the expectation is targeted compliance in practice. There are wells that warrant the administrative effort contemplated by this Clause and those that do not, and both Operators and Non-Participating Parties will govern themselves accordingly in practice. A Non-Participating Party can quickly assess if an Independent Well may be material to it by using public data to look at produc-tion rates;

(ii) clarified that the calculation is on a financial month

basis, with a consequential impact on the adjustment process;

(iii) modified to allow the potential use of the Operator’s cost and revenue experiences on a 100% basis as a proxy for the cost and revenue information of the other Participating Parties, as long as there is a reasonable expectation that the Operator’s informa-tion is representative;

(iv) extended the audit right to the other Participating Parties, given potential differences in Facility Fees and revenues; and

(v) added a new Subclause E to allow a Non- Participating Party to conduct an audit at the expense of the Participating Parties if the Operator/Proposing Party is not in compliance with its obligations pertaining to the cost recovery and is non-responsive to a request to provide the required statement.


Clause 10.18 – Indemnification of Non-Participating PartiesThis Clause was modified to be clear that the general exclusion of Extraordinary Damages in Clause 4.04 also applied to damages suffered by a Non-Participating Party with respect to an Independent Operation. (Remember, though, that Clause 4.04 does not shield the Participating Parties from any obligation to indem-nify an injured Party for third party losses suffered by it.)

As noted earlier, we also clarified the relationship between Participating Parties and any Receiving Parties not subject to a cost recovery because they are paying a fee or taking in kind.

Clause 10.19 – Non-Participating Party Denied InformationWe made several modifications to this Clause, as follows:(i) increased the time for distribution of drilling infor-

mation by 60 days (i.e., 150 days after rig release of a new drill, rather than 90), and expanded the scope of this provision to include Deepenings and Sidetrackings;

(ii) clarified that there was no duty to provide “experi-mental” data as per the Regulations;

(iii) clarified the information to be provided for Completion and production data;

(iv) corrected a timing flaw in earlier versions of the document if participation differs between drilling and Completion. The obligation to distribute the Completion and production information has basi-cally been modified to the later of: (a) entitlement to drilling information if it was a non-participant in the drilling; or (b) 90 days after the Operation concluded. The Non-Participating Party receives the information that is in hand at the required time, with additional production information following in due course.

Process MattersIt is easy to downplay the importance of process when reviewing the Independent Operations area because of the economic consequences of the Parties’ participa-tion elections.

The processes in the Independent Operations Article are designed to balance the competing needs of the Proposing Party and the Receiving Parties and those of Participating Parties and Non-Participating Parties, so that the supporting processes do not distort the Parties’ investment decisions.

Users should become familiar with the process infrastructure in the Independent Operations Article of whatever document they are working with because of the negative potential consequences associated with failure to comply with the process requirements and the differences between the various versions of the Operating Procedure.

Knowledge of the processes in the 2007 CAPL document can also be particularly valuable when trying to resolve a dispute about the interpretation of a corre-sponding provision in an earlier version of the docu-ment, as the new provisions will often provide a platform for resolution of the dispute before it escalates.

The net effect is that a solid understanding of the process infrastructure supporting the Independent Operations Article is required to ensure that the provi-sion operates in the intended manner.

Put simply, process matters. W

Jim MacLeanMacLean Resource [email protected]


CAPLA Communications Portfolio

T he Communications portfolio is a new addition to the CAPLA Board of Directors and will be a work in progress over the next two years as we develop

the Communications Policy, Communications Plan and Communications Procedures. These documents will provide a foundation and framework for communication both internally and externally, and will help to define key messages that CAPLA would like communicated on a consistent basis at all levels of the organization.

I have been working closely with Cathy Miller, our new CEO, on the Communications Policy which was presented at the October 28th meeting of the CAPLA Board. We are now moving ahead with the establishment of a Board Committee under the Communications portfolio to be comprised of volun-teers from the membership to assist with the develop-ment of the Plan and the Procedures. In addition, we will be investigating training opportunities in the area of communications for the Board, Staff, Committee Chairs and the membership at large.

Another responsibility of the current portfolio is the NEXUS Committee, which will be reporting to the Communications Director for the next year, as we work through transitioning operational duties to the CAPLA Office. Once the transition is complete, the NEXUS Committee will report directly to the CEO. Janice Schaalje, CAPLA Office Manager, has taken on the responsibility to receive all updates from CAPLA Committees, the CAPLA Board, the CAPLA Office, in addition to ad hoc updates and submissions from exter-nal committees, educational institutions, other associa-tions, etc.

Kathryn Payne has graciously joined the NEXUS Committee as Editor/Chair and will receive all articles (editorial content) and be the key contact for any queries

about potential article topics. Kathryn has been involved as a volunteer with CAPLA as Chair of the NOA/A&N Task Force and most recently as Chair of the Industry Relations Committee. The CAPLA Board and the NEXUS Committee would like to welcome Kathryn in her new role.

As Outgoing Editor/Chair, I will provide ongo-ing support to the CAPLA Office and the NEXUS Committee for the next few issues to ensure a smooth transition. The NEXUS Committee moving forward will consist of Kathryn Payne, Susan Bayly, Shelbey Poirier, Shane Raman, Melissa Sadal and Nadine Ukueku.

Finally, we would like to thank Glen Nazaruk for his interest in the NEXUS Committee. Glen has left the NEXUS Committee to pursue other volunteer opportu-nities and will continue to submit articles for publication in NEXUS as time permits.

The development of effective communication channels within any organization is a challenge and it is only through communication from you, our members, that we will become aware of the gaps and needs of our organization. Please feel free to provide any comments or feedback to either Cathy Miller at [email protected] (403-303-3337) or to myself at [email protected] (403-233-1947). We will keep your input in mind as we develop the Communications Plan and Communications Procedures. W

Wendy WalkerCommunications Director


Center For Energy Asset Mangement Studies (CEAMS) Update

Spring and summer of ’08 have been very busy and as you’ll note very rewarding. The following are the key points of interest.

Definitive Agreement SignedIn early June of this year SAIT and CEAMS signed a Definitive Agreement to develop and deliver the EAM Diploma, Applied Degree and On-line Certificate. For all the details click on http://www.ceams.org/downloads/news_releases/CEAMS_press_release_jun-06-08a.pdf.

Diploma Goes to Alberta Advanced Education & Technology for ApprovalThe cornerstone to moving forward with the detailed development of the Diploma is the approval of Alberta Advanced Education & Technology (AAE&T). SAIT’s application was sent to AAE&T on March 17th. Since then we have responded to several of their questions, as part of their review/approval process. We look forward to receiv-ing AAE&T’s approval shortly. (See below for an update).

AGM – New Board MembersThe Annual General Meeting of CEAMS was held at the Calgary Chamber of Commerce on May the 12th, with a very strong showing from member companies and associations. The Board of the organisation continues to broaden its membership with representation from three more major producers. The three new Directors elected to the Board are:

Yvette Miller: Manager, Land Administration, Shell w

Canada Energy;

Lorraine Grant : Manager, Contracts & Land w

Administration, Suncor Energy Services; and

Linda Matthie: Supervisor, Joint Venture Agreements, w

Talisman Energy Canada

The Board also thanked retiring Directors Ross Mortlock of Husky and John Masterson of CAPP for their invalu-able contributions over the past years.

CEAMS Launches New Video

A new 4-minute video on CEAMS and the Energy Asset Management program was introduced at the Annual General Meeting to great reviews from those in atten-dance. The video can be viewed online at http://www.ceams.org/movie_flash/CEAMS.html.


SAIT recruiting Subject Matter Experts (SMEs)If you, or anyone you know, are interested in participating in building this visionary program and have experience and expertise in any of the EAM disciplines that you would like to contribute; please check out the posting at http://jobs.workopolis.com/jobshome/db/sait.job_posting?pi_job_id=7453677&pi_search_id=617166085&pi_sort=POST_DATE&pi_curjob=2&pi_maxjob=32.

CAPLA Representation on CEAMS BoardCAPLA and CEAMS are pleased to advise CAPLA members that Cathy Miller, CEO of CAPLA, has joined the Board of Directors of CEAMS. Cathy represents CAPLA in its special role as the CEAMS Founding Partner Association.

Breaking News: Alberta Advanced Education & Technology Approves EAM Diploma!

Career path for Energy Asset Management made easier through program approval

October 9, 2008, Calgary, Alberta – SAIT Polytechnic will soon be accepting applica-tions for an innovative new two-year diploma program in Energy Asset Management. The program, recently approved by Alberta Advanced Education and Technology, will focus on the management and administration of regulatory, financial and contractual compliance pertaining to energy assets.

“This is an exciting new opportunity for those wanting to work in the oil and gas sector,” says Dr. Gordon Nixon, SAIT’s Vice President Academic. “The Energy Asset Management program will integrate all of the asset management disciplines: Mineral Land and Contracts, Surface Land, Operations and Production Accounting, Joint

Ventures and Well Asset Management.” The first known program of its kind in North

America, SAIT’s Energy Asset Management program was developed in part with the Centre for Energy Asset Management Studies (CEAMS).

“This program approval is critical to increasing industry support as it takes the CEAMS vision from concept to reality,” says Melinda Scherger, Chair of


Relations: Mineral Tenure– Alberta Freehold Mineral Taxe-FMT – The Automation Project2004-2008

In the fall of 2003 the Department of Energy (the department) began to review its internal processes for Freehold Mineral Tax (FMT). There were many

inefficient, manual processes in the program. To add to this, the transaction rates of new freehold wells, title changes, amalgamations and industry property transfers were increasing dramatically. It became apparent to the department that these outdated processes were labour intensive for industry as well.

In the spring of 2004, the department canvassed industry committees and associations to propose a joint review of the FMT processes. In June 2004, the department held an information session to illustrate the inefficiencies for both industry and government, and to request industry participation in a FMT business process review. In September 2004, the department convened a FMT Business Design Team (Team) composed of representatives from the department, industry owners, industry producers, industry associations (CAPP, CAPPA, CAPL, CAPLA, and SEPAC) and the Freehold Owners Association. The Team met regularly and documented the common business practices that occurred between the department and industry and between industry producers. In December 2005, the Team identified the need for an automated solution to streamline the

the CEAMS Board of Directors. “The oil and gas industry is facing a shortfall of approximately 2,000 people in this area of expertise within the next 10 years. Future SAIT graduates who have studied Energy Asset Management will be tremendously valu-able to industry.”

Applications for the two-year program will be accepted beginning November 1, 2008 with the program starting in September 2009.

Long-term plans also include development of an applied degree program, requiring an additional two years of study, one of which will be Directed Field Studies in a corporate environment. The applied degree will have three potential areas of specialization – Land and Joint Ventures, Operations and Production Accounting, and Well Asset Management.

More details on the Energy Asset Management program can be found on sait.ca. W

SAIT Polytechnic has maintained close association with business and industry to ensure graduate success since 1916. SAIT offers 68 certificate, diploma, and applied degree programs as well as 33 apprenticeship programs, 300 distance education courses and 1,800 continuing education and customized corporate training courses. SAIT offers training in 15 countries around the world and has 75,000 course and program registrants each year. SAIT is a proud member of Polytechnics Canada.

The Centre for Energy Asset Management Studies (CEAMS) is an inde-pendent, non-profit organization established to influence and promote asset management skills development for and within the energy sector. For more information on CEAMS, please see www.ceams.org.

Media inquiries, please contact:

Heidi SparksSAIT Corporate CommunicationsBus: 403-284-8473Cell: 403-512-3291

Roger RowleyCEAMSBus: 403-244-8175Cell: 403-585-5421


FMT processes and the need to provide complete and accurate freehold information both to the department and to industry. Thus the development of a FMT WEB-based Industry Interface system (e-FMT) began.

The Team continued to meet throughout 2006 and 2007 to design and review the new FMT Industry Interface system, the edits, confidentiality access, windows and reports and to refine the business rules. The Industry Interface was implemented in October 2007. The system allows industry real time access to title, production entity and industry roles information. It also provides for transfer of industry roles between companies and for submission and receipt of information and tax statements with the department. Training modules and tutorials are available on the e-FMT web site. The 2007 tax statements were distributed electronically in February 2008, with amendments processed monthly.

Both industry and the department agree that the FMT business streamlining and automation project are a solid success and another example of the benefits of collaboration between industry and the department.

Additional information is available at: http://www.energy.alberta.ca/ or by contacting: FMT at 780-427-6000 or [email protected]. W

Brenda CurleManager, Freehold Mineral TaxAlberta Department of Energy

Lynn Scherger, chair of the Freehold Mineral Tax Committee for CAPLA, attended the meetings and provided industry perspectives on the business practices. CAPLA would like to acknowledge Lynn’s contribution to this initiative.

Linda Westbury, Director – Relations

At the CAPLA Leadership Network Meeting held on March 11, 2008, the attendees expressed their collective feedback regarding tools the commit-

tee could focus on to assist Land Asset Management Leaders. From this feedback, two Working Committees have been struck to identify and implement strategies that begin to address and support industry leader issues/needs. Below is a quick update from each of the working committee chairs:

Leadership & Community Development Working CommitteeWe have recently completed our Terms of Reference for this Working Committee. As part of this document we have finalized our 2008 and 2009 deliverables of which one high priority objective is the 2009 CAPLA Management Summit, which we wanted to make sure you knew about.

Relations: Leadership Network – Leadership Network Steering Committee Updates


“Leading Asset Management” is the theme for the Summit being held at Kananaskis on May 24-26, 2009. The Working Committee along with a newly formed Summit Sub-Committee, are currently developing the agenda based on the feedback received at CAPLA’s Leadership Network session in March, 2008.

At the March-08 roundtable, we discussed the need for more networking to build our community of Asset Management Leaders and the Summit will provide opportunities to do just that. We also discussed that as Managers or Supervisors, who have been given ‘author-ity’ by our organizations, that people are required to follow us. However, to gain the respect of our employees along with our internal and external peers, we need to develop personal leadership qualities that will inspire and motivate others so that they choose to follow us.

So, along with networking at the Summit, there will also be opportunities to test our own assumptions and beliefs about ourselves in order to become aware of any qualities that might negatively impact others or our results. Once we are aware, we can then develop/evolve qualities that earn the respect and high trust of others. To help us reflect on inspira-tional leadership qualities, we have secured keynote speaker, Danna Beale, author of Tragedy in the Workplace.

As we continue to develop and finalize the Summit, we will provide further updates, but we wanted to give you a 2008 sneak peak … so that you can book the time into your calendars!! On behalf of the Leadership Network Steering and Working Committees, we look forward to seeing you at the 2009 CAPLA Management Summit!

w Bente Nelson. Team Lead, Surface Land Asset Management, EnCana Corporation, CAPLA Leadership Network Steering Committee Member and Chair of the Leadership & Community Development Working Committee. w Helen Klein. Manager, Mineral Land Asset Management, Talisman, CAPLA Steering Committee Member & Co-Chair for the Leadership & Community Development

To help us prepare for the Summit, we would like your help in answering for us: What are the top 3 quali-ties you admire in a Leader? Please send your responses by December 7, 2008 to [email protected].

Knowledge Sharing Working CommitteeThe Knowledge Sharing Working Committee also has derived its two key objectives from the roundtable session in March 2008. Our first objective is to work on putting together a presentation and materials that show “What We Do and Why It Is Important”. Our vision is to produce a presentation that can be shared with lead-ers’ respective organizations to raise the profile and/or knowledge of land and land professionals.

Secondly, the Knowledge Sharing Working Committee is tasked with providing leaders with a framework for sharing process and procedure problems and solutions – as well as opportunities to discuss current business issues, opportunities and leadership challenges (eg. how do we handle Shallow Rights Reversion?).

Volunteer Opportunities!We are currently seeking persons who now hold, or who have previously held, land leadership positions to join our committee and assist us in the completion of these objectives. We think that this will be exciting work that will contribute enormously to the success of our leaders. If you are interested in joining the working committee, please contact me at your earliest convenience. We’d be happy to have you! W

Dawn M. Harvey, LL.B., LL.MManager, Mineral Land, Husky Energy.CAPLA Leadership Network Steering Committee Member and Chair of the Knowledge Sharing Working Committee [email protected](403) 750-1959


October 14, 2008

Canadian Association of Petroleum Landmen (CAPL)Mr. Robert Telford, PresidentSuite 350, 500 – 5 Ave SWCalgary, AlbertaT2P 3L5

Dear Mr. Telford,Congratulations to the CAPL on their 60th Anniversary.This year, 2008, will mark your sixty-year anniversary as a

widely respected Association in the Canadian energy industry. We would like to take this opportunity to congratulate the CAPL for the outstanding contribution they have made, from technical and business advancements to setting education and professional stan-dards. The CAPL has achieved a legacy of overcoming challenge, gained the respect of industry and established a loyal membership based upon its success in advancing the field of Land.

We know that the growth and success of your association is largely dependent on having staff, members and volunteers committed to making significant contributions toward the position you enjoy in the industry.

We believe that the CAPL will continue to experience growth and good fortune for many years to come. On behalf of CAPLA members, this Board of Directors offers our congratulations on your milestone anniversary.

Yours truly,Canadian Association of Petroleum Land Administration(CAPLA)

Don BartierPresident, Board of Directors

Did You Know…

T he ETS Tenure Best Practices Team is a work-ing group of individuals made up of Electronic Transfer System (ETS) site administrators, users

and Department of Energy staff.The team meets regularly to discuss situations and

problems that are encountered in the processing of trans-fers, postings and bid requests.

Best practices are discussed and recommended. w

Future improvements are proposed. w

A number of enhancements were recently imple- w

mented. Documents related to the monthly statement process w

are now available on ETS for 90 days. A new comment field has been added to the Request w

Status Screen. Bulletin announcements are emailed to site adminis- w

trators and users. A new role called Approver has been added to Posting w

Request. Individuals with this role can approve funds for a direct purchase.The Bid Request Detail Report has been enhanced. w

The Bulletin page on ETS will provide you with addi- w

tional details about the recent changes.

You can find out more about the ETS Tenure Best Practices Team by calling Retha Purkis, Manager, PNG Sales and Registrations, Alberta Department of Energy at 780-422-9426. W


Tracing the Many Paths of Production

T he oil and gas industry expends vast sums of money to build and maintain an administra-tive and information infrastructure. Production

information represents a central and important part of this information warehouse. Powerful computers are filled with production information by armies of data entry personnel. This information becomes the subject of scrutiny by every stakeholder, analyst and participant internal and external to the producing company.

Given the importance of production information, there is really no excuse for any kind of deficiency or weakness in production records and yet, surprisingly, fail-ure to clearly define the path of production from the well-head to the ultimate point of disposition often appears as a glaring deficiency in the records of many companies.

The ability to trace the facility-to-facility path of oil, gas or water production from the wellhead to the ulti-mate point of processing or disposition is a need which arises across a number of functional areas.

Production Accounting. Production accounting requires a clear understanding of the path of produc-tion, the position of meters, the location of merging and diverging streams and all fuel, flare and vent locations. This requirement is so fundamental to accurate produc-tion accounting that the EUB strongly encourages a detailed diagrammatic representation of the flow relating to each source and disposition of production;

Acquisition & Divestment. Due diligence review often neglects to identify where production from existing

wells is being processed. A buyer may be devastated to learn that third party processing rights at the only avail-able gas plant are severely restricted or non-existent;

Joint Venture. Joint Interest will be concerned with all aspects of the production path beyond the wellhead, including the operation and maintenance of those facil-ity contracts for which the company is responsible;

Environmental Affairs. Those who deal with Alberta Environment and environmental concerns will need to know the dispositions of contaminated water and, in particular, the specific points of disposition and the injection facilities involved;

Marketing. The points of sale on the path from the wellhead will be a matter of consequence in oil trucking and gas pipeline activities;

Engineering. Engineering will need to know well-to-facility and facility-to-facility paths and linkages when well changes impact the line pressure at facilities. Engineers will also be concerned with redirecting flows when processing opportunities are restricted.

While most companies are able to piece together paths of production on an “as needed” basis to meet the require-ments of a given situation, this approach can present a


Relations: Mineral Tenure – Province of BC – e-Payments SystemProvince of BC – ePayments System

On October 1st and 2nd, 2008, Debbie Fischer, Carolyn Desjardins, Terry Branscombe and Dave Morton held 4 demonstration sessions in

Calgary at the EnCana Amphitheatre. CAPLA members were given the opportunity to see the system and ask questions regarding the functionality of Phase 2.

Is Your Company Ready?The e-Payments system is a web-based application that facilitates online payment of annual fees and rentals on sub-surface, petroleum and natural gas titles using a Pre-Authorized Debit functionality. e-Payments is not an auto-debit system. Clients initiate all transactions to their bank accounts. Owners will have the ability to nominate a payor and view both historic and current statement information.

Phase 1 of the project – payment of fees and annual w

rentals on Primary Term Titles is now complete and came online in February of 2008.

daunting and sometimes insurmountable obstacle where hundreds, sometimes thousands, of wells are involved – each with a separate product path for oil, gas and water.

Even where some form of information relating to the path of production is available to one department within a company, the information may not be readily identifiable or accessible as a resource to the rest of the company. For example, the Alberta Petroleum Registry often serves as a source of information in tracing the path of production. If many wells are involved, use of the Registry for this purpose can be slow, cumbersome and extremely frustrat-ing. Registry access within a company is generally limited to a few individuals who are conversant with the system, but who do not have the time to address anything beyond the immediate scope of their assigned responsibilities.

Increasingly, specialty firms seek to provide the oil and gas industry with talent specifically tailored to complex issues, such as tracing the path of production from the wellhead to the ultimate point of disposition. These firms offer the option of whole teams specifically dedicated to specialized deliverables. Reports are delivered on a timely basis and, at the conclusion of the project, the company is left with a reliable record which can be self maintained in the form of a relational database or a simple spreadsheet.

Specialty firms are also beginning to offer inexpen-sive desktop and software solutions to house the data generated by a project. These software tools serve as cost effective alternatives, supplements, and transitional support to more elaborate systems.

There is really no excuse for a deficiency in production records which track the flow of production from the well-head to the ultimate point of processing or disposition. W

O. J. Mayrl

O. J. Mayrl is an accountant, computer programmer and lawyer. His background in the oil and gas industry includes A&D, as well as, lease, contract and joint venture analysis. He currently serves as a consultant to Exxonmobil Canada Energy and Imperial Oil Resources (P: 829-0443)

Previously published in the May 2008 edition of The Negotiator and reprinted with the author’s permission.


Phase 2 of the project – payment of fees and annual w

rentals on all Titles, including those beyond their primary term will be online mid November, 2008.

Note: The BC ePayments system will be mandatory on April 1, 2009.

To Get Started Companies must:Appoint an ePayments Company Administrator w

The Company Administrator does not have to be the w

same person as your BCeID administrator. It should be someone who oversees or is directly involved in the payment process.

w Obtain BCeID usernames and passwords @ www.bceid.ca for each individual requiring access to the ePayments system. w Obtain a Subscription Code. To receive a subscrip-tion code your ePayments Company Administrator must send a request on company letterhead to: [email protected] with your BCeID Username, email address and full Company Name(s). A separate Subscription Code will be issued for each variation of your company name requested. w Register for Training. Training will be available in Victoria and Calgary. We are currently exploring Video-Conferencing sessions and other training options. More details to follow on this. The website to register for training is: www.regonline.ca/ePaymentsTraining

Prior to April 1, 2009 all companies must complete and mail a Rental and Fee PAD form to:

Brenda Jennings, Titles & Offshore Division,6th Floor, 1810 Blanshard StreetVictoria, BC V8W 9N3

Rental and Fee PAD form can be downloaded at: http://www.empr.gov.bc.ca/Titles/OGTitles/ePayments/Documents/PAD%20form%20-%20Fees%20and%20Rentals.pdf .

Once your company has completed the above steps for the Ministry, an internal review consisting of issues noted below should be conducted:

Run comparison reports between your data and state- w

ments found on the ePayments website. Identify situations where you will need to change the w

Payor, and update accordingly. Ensure the ePayments system identifies all of your w

titles on the “All Titles” screen. Should there be any deficiencies, contact the BC Ministry @ [email protected]. To ensure all communications between ePayments and w

your company are captured, create a generic email box and utilize the same email address in all email fields on the ePayments system. This will alleviate the need to share passwords, as all correspondence will go to the generic email box which can be checked by all users. Communicate with all internal company stakehold- w

ers, i.e. Accounting, Land system vendors, to identify required amendments to all processes and procedures. FAQs will be available on the BC ePayments webpage w

– please ensure your company reviews these questions prior to contacting the BC Ministry with any issues.

Manual cheques will not be accepted after April 1, 2009.

For Further Information, Please View the Main ePayments Page: http://www.empr.gov.bc.ca/Titles/OGTitles/ePayments/Pages/default.aspx. W

Carolyn Desjardins (BC Ministry of Energy, Mines and Petroleum Resources)Teresa Leavitt (BC e-Payments Industry Workgroup Chair)Linda Westbury(CAPLA – Director of Relations)


CAPLA Volunteers“Volunteers are the heart of our organization…”

– Don Bartier

T he list you see on these pages is more than just a list of names. This is a list of dedicated, energetic individuals who make CAPLA’s programs, events

and Industry initiatives possible. This list represents hundreds of hours spent developing, implementing and hosting a wide variety of programs and services that are a vital part of the Petroleum Industry in Calgary.

We have made every effort to ensure that this is a complete and accurate list of those who volunteered their time from June 2007 to August 2008. We unders-tand however, that as in any vital and dynamic organiza-tion, there may be individuals who do not come forward to be recognized.

CAPLA wishes to sincerely thank all its volunteers, listed and unlisted for their time and energy in making CAPLA the dynamic organization that it is. We would also like to take this opportunity to thank our volunteers’ employers for their generous support.

Aberle, Phyllis . . . . . . . . . . . . Husky Oil Operations LimitedAckerley, Olivia (Libby) . . . . . Enerplus Resources CorporationAdams, Brenda . . . . . . . . . . . ESSOAlami, Doha . . . . . . . . . . . . . . Independent/Rogers Communications Inc.Albinati, Valerie . . . . . . . . . . . Central Global Resources ULCAllbright, Brenda . . . . . . . . . . Department of Energy, TenureAnderson, Val . . . . . . . . . . . . . IndependentAndruckow, Judy . . . . . . . . . . Nexen Inc.

Arduini, Jane . . . . . . . . . . . . . Shell Canada EnergyAshdown, Heather . . . . . . . . Husky Oil Operations LimitedAucoin, Tim . . . . . . . . . . . . . . Independent/Kwik KopyAucoin, Wendy . . . . . . . . . . . . Talisman Energy Inc.Bailey, Mary Ann . . . . . . . . . . Penn West Petroleum Ltd.Bartier, Don . . . . . . . . . . . . . . BP Canada Energy CompanyBartlett, Autumn . . . . . . . . . . BP Canada Energy CompanyBayly, Susan . . . . . . . . . . . . . . EnCana CorporationBatke, Sherry . . . . . . . . . . . . . EnCana CorporationBeers, Chi . . . . . . . . . . . . . . . . Talisman Energy Inc.Bell, Donna. . . . . . . . . . . . . . . IndependentBell, Maureen . . . . . . . . . . . . Nexen Inc.Belland, Darlene . . . . . . . . . . Independent/True Energy Inc.Bencsik, Coleen . . . . . . . . . . . High Pine Oil & Gas Limited Benning, Dave . . . . . . . . . . . . . . .AB Energy & Utilities Board Government of ABBernier, Linda . . . . . . . . . . . . EnCana CorporationBig Plume, Alex . . . . . . . . . . . Devon Canada CorporationBlomdal, Judy . . . . . . . . . . . . Canadian Natural Resources LimitedBloski, Brenda . . . . . . . . . . . . EnCana CorporationBogart, Barb. . . . . . . . . . . . . . EnCana CorporationBollinger, Jillian . . . . . . . . . . . Harvest Operations Corp.Boyden, Patricia. . . . . . . . . . . Husky Energy Inc.McMillan, Patricia . . . . . . . . . Husky Energy Inc.Brace, Christina . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Branagh, Eleanor . . . . . . . . . . Husky Oil Operations LimitedBreen, Gale . . . . . . . . . . . . . . . CGE Group Inc.Brien, Wendy . . . . . . . . . . . . . Enerplus Resources CorporationBrhelle, Brandy . . . . . . . . . . . Talisman Energy Inc.Bridgewater, Barbara . . . . . . Independent/Anderson Energy Ltd.Bruce, Carla . . . . . . . . . . . . . . Spectra Energy Midstream CorporationBrown, Maureen . . . . . . . . . . City of CalgaryBrown, Shelley. . . . . . . . . . . . Shell Canada EnergyBryant, Barb . . . . . . . . . . . . . . Devon Canada CorporationBryksa, Jeff . . . . . . . . . . . . . . . Petro-Canada Oil & GasBuckingham, Tracey . . . . . . . EnCana CorporationBuckman, Kathy . . . . . . . . . . Nexen Inc.Bursey, Wendy . . . . . . . . . . . . Harvest Operations Corp.Bushell, Marilyn . . . . . . . . . . Pengrowth CorporationCaldwell, Barbara . . . . . . . . . TAQA NORTH Ltd.Campbell, Shawna . . . . . . . . Anderson Energy Ltd.Chapman, Jonathan . . . . . . . Legacy Land & Title Company Inc.Chapman, Laury . . . . . . . . . . IndependentClark, Chantelle . . . . . . . . . . . Harvest Operations Corp.


Clark, Dave . . . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Clark, Heidi . . . . . . . . . . . . . . . Petro-Canada Oil & GasClarke, Debbie . . . . . . . . . . . . P2 Energy SolutionsClements, Sandy . . . . . . . . . . Independent/CAPLACook, Nicky . . . . . . . . . . . . . . . TAQA NORTH Ltd.Cooper, Yvonne . . . . . . . . . . . AB Energy & Utilities Board Government of ABCox, Bonnie . . . . . . . . . . . . . . Husky Oil Operations LimitedCrosby, Judy . . . . . . . . . . . . . . Devon Canada CorporationCreguer, Michelle. . . . . . . . . . Suncor Cunningham, Ingrid . . . . . . . IndependentDahl, Kristy . . . . . . . . . . . . . . . Quicksilver Resources Canada Inc.Dainard, Gordon . . . . . . . . . . IndependentDalik, Drew. . . . . . . . . . . . . . . IndependentDean, Harry . . . . . . . . . . . . . . Canadian Natural Resources LimitedDeCosta, Tony Z. . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Degenstein, Debbie . . . . . . . Pinnacle Consulting Services Inc.Dennis, Vicki . . . . . . . . . . . . . . EnCana CorporationDensham, Audrey . . . . . . . . . Apache Canada Ltd.Dickin, Carol . . . . . . . . . . . . . . IndependentDuval, Chantal . . . . . . . . . . . . Harvest Operations Corp.Early, Kathy . . . . . . . . . . . . . . Trilogy EnergyEdlund, Rhiannon . . . . . . . . . BP Canada Energy CompanyEdwards-Challenger, Kelly . . . TAQA NORTH Ltd.Edoo, Aarif . . . . . . . . . . . . . . . IndependentEld, Pat . . . . . . . . . . . . . . . . . . EnCana CorporationEnnis, Marylin . . . . . . . . . . . . Baytex Energy Ltd.Erickson, Kelly . . . . . . . . . . . . Talisman Energy Inc.Eklund, Stacey . . . . . . . . . . . . Richards Oil & Gas LimitedFacey, Shannon . . . . . . . . . . . Trident Exploration CorpFairbourn, Lil . . . . . . . . . . . . . Harvest Operations Corp.Falconer, Karen . . . . . . . . . . . Devon Canada CorporationFaraj, Juliet . . . . . . . . . . . . . . . IndependentFarmer, Valerie . . . . . . . . . . . . TransCanada Pipelines LimitedFell, Brenda . . . . . . . . . . . . . . Shell Canada EnergyFerguson, Marlene . . . . . . . . Petro-Canada Oil & GasFernandes, Nilofer . . . . . . . . . Nexen Inc.Fernandez, Matias . . . . . . . . . ConocoPhillips Canada Resources Corp.Fleming, Grant . . . . . . . . . . . . Penn West Petroleum Ltd.Fleming, Janice . . . . . . . . . . . Independent/Penn West Petroleum Ltd.Fletcher, Danielle . . . . . . . . . . Adamant Energy Inc.Forseth, Judy . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Fritz, Sacha . . . . . . . . . . . . . . . IndependentGanong, Cindy . . . . . . . . . . . . Independent

Garaycochea, Laura . . . . . . . . IndependentGemsa, Bettina . . . . . . . . . . . Talisman Energy Inc.Gesell, Nina . . . . . . . . . . . . . . TAQA NORTH Ltd.Gilbert, Katerina . . . . . . . . . . Canadian Forest Oil Ltd.Gitzel, Laurie . . . . . . . . . . . . . Husky Energy Inc.Glackin, Monica . . . . . . . . . . . EnCana CorporationGlass,Will . . . . . . . . . . . . . . . . Harvest Operations Corp.Godfrey, Deborah . . . . . . . . . TAQA NORTH Ltd.Graham, Suzanne . . . . . . . . . Suncor Grainger, Marcella . . . . . . . . . Paramount Energy Operating Corp.Grant, Lorraine . . . . . . . . . . . . Suncor Gray, Trisha . . . . . . . . . . . . . . . IndependentGreenstein, Gloria . . . . . . . . . Penn West Petroleum Ltd.Gregory, Lynn . . . . . . . . . . . . Independent/Anderson Energy Ltd.Grills, Charmaine . . . . . . . . . . Enerplus Resources CorporationGuzman, Valerie . . . . . . . . . . Pembina Pipeline CorporationHamel, Karen . . . . . . . . . . . . . Imperial Oil Resources Hamrell, Curt . . . . . . . . . . . . . Enerplus Resources CorporationHancherow, Kirk . . . . . . . . . . ATCO Gas & Pipelines Ltd.Hand, Anne . . . . . . . . . . . . . . Husky Oil Operations LimitedHaney, Victoria . . . . . . . . . . . . Penn West Petroleum Ltd.Hankey, Megan . . . . . . . . . . . IndependentHansen, Ty . . . . . . . . . . . . . . . Independent/EnCana CorporationHartwick, Sharon . . . . . . . . . EnCana CorporationHarty, Marg . . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Harvey, Dawn . . . . . . . . . . . . Husky Energy Inc.Hazen, Jeannie . . . . . . . . . . . Husky Oil Operations LimitedHetherington, Veronica . . . . Sphere Energy Corp.Hernandez, Shelley . . . . . . . . Talisman Energy Inc.Holm, Susan . . . . . . . . . . . . . . Talisman Energy Inc.Holmerson, Cliff . . . . . . . . . . . Canadian Natural Resources LimitedHuget, Leslie . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Hughes, Kari-Lynn . . . . . . . . . Nexen Inc.Hurtig, Kim . . . . . . . . . . . . . . . Nexen Inc.Irvine, Candice (Candi) . . . . . IndependentJackson, Sally . . . . . . . . . . . . . Devon Canada CorporationJager, Janet . . . . . . . . . . . . . . Talisman Energy Inc.Janzen, Wanda. . . . . . . . . . . . Imperial Oil Resources Johnson, Anna . . . . . . . . . . . . CCS Midstream ServicesJohnson, Linda . . . . . . . . . . . EnCana CorporationJohnson, Tara . . . . . . . . . . . . . Provident Energy Ltd.Johnstone, Craig . . . . . . . . . . Enerplus Resources CorporationJones, Penny . . . . . . . . . . . . . Rife Resources Ltd.


Jordan, Dawn . . . . . . . . . . . . . Shell Canada EnergyKane, Shari . . . . . . . . . . . . . . . Canadian Natural Resources LimitedKara, Yasmin . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Kaspers, Trisha . . . . . . . . . . . . Talisman Energy Inc.Kendrick, Candace . . . . . . . . . ConocoPhillips Canada Resources Corp.Keough, Carolyn . . . . . . . . . . Baytex Energy Ltd.Khackoo, Reshma . . . . . . . . . Nexen Inc.Khan, Shehnaz . . . . . . . . . . . . Canadian Natural Resources LimitedKlein, Helen . . . . . . . . . . . . . . Talisman Energy Inc.Knock, Sheryl . . . . . . . . . . . . . Penn West Petroleum Ltd.Kriff, Linda . . . . . . . . . . . . . . . Husky Oil Operations LimitedKrtolica, Hanna . . . . . . . . . . . Penn West Petroleum Ltd.Kruschel, Carla . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Kwan, Anna . . . . . . . . . . . . . . CCS Midstream ServicesLagler, Brenda . . . . . . . . . . . . EnCana CorporationLamb, Joy . . . . . . . . . . . . . . . . Devon Canada CorporationLambert, Janice . . . . . . . . . . . Kaiser ExplorationLang, Yvonne . . . . . . . . . . . . . Talisman Energy Inc.Lawrence, Sierra . . . . . . . . . . EnCana CorporationLeavitt, Teresa . . . . . . . . . . . . EnCana CorporationLegault, Marsha . . . . . . . . . . . Quicksilver Resources Canada Inc.Leonardo, Marion . . . . . . . . . ConocoPhillips Canada Resources Corp.Li, Ada . . . . . . . . . . . . . . . . . . . Talisman Energy Inc.Liddiard, Elaine . . . . . . . . . . . Penn West Petroleum Ltd.Lizotte, Chris . . . . . . . . . . . . . Hunt Oil Company of Canada Inc.Lokodi, Denise . . . . . . . . . . . . Husky Energy Inc.Lucy, Brenda . . . . . . . . . . . . . Devon Canada CorporationLuedtke, Jean . . . . . . . . . . . . . Rife Resources Ltd.Maaskant, Reny . . . . . . . . . . . Suncor Energy Services Inc.MacFarlane, Kevin . . . . . . . . . Petro-Canada Oil & GasMacht, Deidre . . . . . . . . . . . . Independent/City of Calgary ISO ResourcesMacKarenko, Adriena . . . . . . Talisman Energy Inc.MacKinnon, Angela . . . . . . . . Husky Energy Inc.Maclean, Jim . . . . . . . . . . . . . Maclean Resource ManagementMacLean, Chris . . . . . . . . . . . Suncor Energy Services Inc.Mapara, Sophia . . . . . . . . . . . Independent/Poplar Point Energy Ltd.Masskant, Reney . . . . . . . . . . Suncor Energy Services Inc.Mathieson, Debbie . . . . . . . . Progress EnergyMathieson, Neal . . . . . . . . . . Suncor Energy Services Inc.Maynard, Barry . . . . . . . . . . . Petro-Canada Oil & GasMcCausland, Carolina . . . . . . Poplar Point Energy Ltd.McDonald, Trina . . . . . . . . . . . ExxonMobil Canada EnergyMcDougall, Pam . . . . . . . . . . Devon Canada Corporation

McLaren, Bonnie-Lynn . . . . . Canadian Natural Resources LimitedMcIntosh, Julie . . . . . . . . . . . Talisman Energy Inc.McKay, Karmen . . . . . . . . . . . EnCana CorporationMcKinnon, Jane . . . . . . . . . . . IndependentMcMillan, Patti . . . . . . . . . . . Husky Energy Inc.McLaughlin, Darlene. . . . . . . Independent/GDM Systems Inc.McNeil, Echo-Lynn . . . . . . . . Scott Land & Lease Ltd.Meade, Linda . . . . . . . . . . . . . TransCanada Pipelines LimitedMercer, Brandi . . . . . . . . . . . . Penn West Petroleum Ltd.Michaels, Lori . . . . . . . . . . . . . Shell Canada EnergyMiko, Jackie . . . . . . . . . . . . . . Canadian Natural Resources LimitedMiller, Catherine . . . . . . . . . . Calico Land Services Ltd.Miller, Yvette . . . . . . . . . . . . . Shell Canada EnergyMontague, Sharon . . . . . . . . IndependentMontgomery, Gary . . . . . . . . IndependentMoodie, Verna . . . . . . . . . . . . Petro-Canada Oil & GasMorrison, Debbie . . . . . . . . . . Devon Canada CorporationMorrow, Karen . . . . . . . . . . . . Petro-Canada Oil & GasMorton, Kim . . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Musa, Alisha. . . . . . . . . . . . . . EnCana CorporationMyhre, Jan . . . . . . . . . . . . . . . Talisman Energy Inc.Nazaruk, Glen . . . . . . . . . . . . BP Canada Energy CompanyNelson, Bente . . . . . . . . . . . . EnCana CorporationNiedballa, Christina. . . . . . . . ConocoPhillips Canada Resources Corp.Nielsen, Barb . . . . . . . . . . . . . Petro-Canada Oil & GasNiles, Warren . . . . . . . . . . . . . Thompson-Niles Consulting Inc.Norton, Tanya . . . . . . . . . . . . EnCana CorporationObligacione, Victoria . . . . . . . Shell Canada EnergyPacione, Chris. . . . . . . . . . . . . EnCana CorporationPardy, June . . . . . . . . . . . . . . . IndependentPark, Jay . . . . . . . . . . . . . . . . . MacLeod Dixon LLPParsons, Roxanne . . . . . . . . . Suncor Energy Services Inc.Paquet, Marc . . . . . . . . . . . . . Standard Land Company Inc.Patry, Nicole . . . . . . . . . . . . . . NuVista Energy Ltd.Payne, Kathryn . . . . . . . . . . . EnCana CorporationPerchaluk, Sherry . . . . . . . . . Canadian Superior Energy Perkins, Vanessa . . . . . . . . . . Harvest Operations Corp.Perry, Susan . . . . . . . . . . . . . . Suncor Energy Services Inc.Pinco, Kathy . . . . . . . . . . . . . . Canadian Natural Resources LimitedPinkney, Susan . . . . . . . . . . . Devon Canada CorporationPisterzi, Helene . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Plouffe, Coralie . . . . . . . . . . . Olds CollegePoelzer, Kurt . . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.


Poirier, Shelbey . . . . . . . . . . . Tristar Oil & Gas Ltd.Pozdnikoff, Sharon . . . . . . . . Mancal Energy Inc.Predika, Susan . . . . . . . . . . . . Baytex Energy Ltd.Prevost-Liknes, Jennifer . . . . CCS Midstream ServicesQuinn, Judy . . . . . . . . . . . . . . EnCana CorporationRackham, Barb . . . . . . . . . . . Baytex Energy Ltd.Raman, Shane . . . . . . . . . . . . Anderson EnergyRamcharan, Sabrina . . . . . . . Quicksilver Resources Canada Inc.Ramirez, Maritess . . . . . . . . . Canadian Natural Resources LimitedReardon, Joanne . . . . . . . . . . BP Canada Energy CompanyReain, Bobbi-Jo . . . . . . . . . . . Pengrowth CorporationRector, Donna . . . . . . . . . . . . Enterra Energy Corp.Reiterer, Lisa . . . . . . . . . . . . . Antelope Land Services Ltd.Reynods, Pat . . . . . . . . . . . . . Canadian Natural Resources LimitedRimney, Ken . . . . . . . . . . . . . . IndependentRitter, Kristi . . . . . . . . . . . . . . Devon Canada CorporationRogers, Sandy . . . . . . . . . . . . Shell Canada EnergyRose, Anna . . . . . . . . . . . . . . . AB Energy & Utilities Board Government of ABRoth, Lori . . . . . . . . . . . . . . . . Pengrowth CorporationRousseau, Anne-Marie . . . . . Paramount Energy Operating Corp.Ryan, Carol . . . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Sacha, Theresa . . . . . . . . . . . . Advantage Oil & Gas Ltd.Sadal, Melissa . . . . . . . . . . . . EnCana CorporationSaller, Eva . . . . . . . . . . . . . . . . Devon Canada CorporationSamoilova, Julia . . . . . . . . . . IndependentSampsel, Lynn . . . . . . . . . . . . Talisman Energy Inc.Saunders, Leanne . . . . . . . . . IndependentScott, Jenna . . . . . . . . . . . . . . Petrobank Energy & Resources Ltd.Scheers, William . . . . . . . . . . BP Canada Energy CompanySchellenberg, Lynne . . . . . . . IndependentScherger, Lynn . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Schick, Tiffany . . . . . . . . . . . . Nexen Inc.Schissel, Molly . . . . . . . . . . . . Enterra EnergySchwartzenberger, Rose . . . . Imperial Oil Resources Scott, Velma . . . . . . . . . . . . . . Barnwell of Canada, LimitedSeller, Eva . . . . . . . . . . . . . . . . Devon Canada CorporationSequiera, Zenwill . . . . . . . . . . Devon Canada CorporationSloan, Janis . . . . . . . . . . . . . . Nexen Inc.Smith, Cheryl . . . . . . . . . . . . . ATCO Gas & Pipelines Ltd.So, Heidi . . . . . . . . . . . . . . . . . Rife Resources Ltd.Sportak, Michelle . . . . . . . . . Penn West Petroleum Ltd.Stackhouse, Ryan . . . . . . . . . ConocoPhillips Canada Resources Corp.Stansky, Joanne . . . . . . . . . . . Independent/Enerplus Resources Fund

Station, Elizabeth . . . . . . . . . Devon Canada CorporationStock-Parnell, Linda . . . . . . . EnCana CorporationStorey, Melanie . . . . . . . . . . . Penn West Petroleum Ltd.Suberlak, Charlene . . . . . . . . Pengrowth Sveinson, E. Glen . . . . . . . . . . Independent/EnCana CorporationUddin, Rabia . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Ukueku, Nadine . . . . . . . . . . . Penn West Petroleum Ltd.Taylor, James . . . . . . . . . . . . . Taylor LandThomas, Ellen . . . . . . . . . . . . UTS Energy Corp.Thomas, Leslie . . . . . . . . . . . . AltaGas Ltd.Thomas, Wendy . . . . . . . . . . . Great Plains ExplorationTomlinson, Sue . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Trembley, Mellsssa . . . . . . . . Talisman Energy Inc.Trofin, Kathy . . . . . . . . . . . . . . ConocoPhillips Canada Resources Corp.Turriago, Marcela . . . . . . . . . . Petro Andina Resources Inc.Xavier, Marva . . . . . . . . . . . . . IndependentVandenbeld, Martin . . . . . . . Govt ABVargas, Leonardo . . . . . . . . . . Computershare PlusVelazco, Sandra . . . . . . . . . . . EnCana CorporationVermeulen, Ron . . . . . . . . . . . LandSolutions Inc.Verot, Jane . . . . . . . . . . . . . . . Quicksilver Resources Canada Inc.Wakefield, Senga . . . . . . . . . IndependentWard, Marcia (Marcy) . . . . . . Independent/Canadian ForestWalker, Wendy . . . . . . . . . . . . BP Canada Energy CompanyWard, Cathy . . . . . . . . . . . . . . Canadian Natural Resources LimitedWaterhouse, Deb . . . . . . . . . . Harvest Operations Corp.Watt, Jackie . . . . . . . . . . . . . . Husky Oil Operations LimitedWells, Timothy . . . . . . . . . . . . IndependentWeryshko, Ted . . . . . . . . . . . . Imperial Oil ResourcesWestbury, Linda . . . . . . . . . . ConocoPhillips Canada Resources Corp.Wickens, Jim . . . . . . . . . . . . . Husky Oil Operations LimitedWiebe, Barb . . . . . . . . . . . . . . Paramount Energy Operating Corp.Winiarz, Betty . . . . . . . . . . . . Petro-Canada Oil & GasWiesner, Tami . . . . . . . . . . . . . EnCana CorporationWise, Erin . . . . . . . . . . . . . . . . EnCana CorporationWolf, Joanne . . . . . . . . . . . . . IndependentWoroniuk, Shyanne . . . . . . . . Tristar Oil & Gas Ltd.Wyman, Gail . . . . . . . . . . . . . EnCana Corporation W


CAPLA Management Night

On October 21, 2008 over 300 attendees joined together for CAPLA’s Management Night at the Westin Hotel. This was the first Management

Night held at the Westin and it was very well received.During registration, members and guests enjoyed

socializing while cocktails and hors d’ouerves were served. CAPLA Volunteers were presented with a volun-teer ribbon, pin, and $25 gift card to the Core Shopping Centre. Volunteers who did not attend Management Night were given the opportunity to collect their gift cards at the CAPLA Office.

Congratulations to the more than 300 volun-teers who give so selflessly to help make CAPLA the success that it is. Volunteers were personally thanked by President Don Bartier and CEO Cathy Miller.

This year’s Myra Drumm Award recipients were recognized for their outstanding achievements. Congratulations to this year’s award winners: Thomas Crosley, Juliet Faraj, Simone Lamb, and Alexa Birchall. Barb Bogart presented the awards; she is Myra Drumm’s daughter, and a fellow Land Administrator. Barb’s daughter, Jessica Bogart, was also in attendance for her first Management Night to support her mother and remember her grandmother.

Following a delicious dinner, we had the privilege of having David Breakwell, Assistant Deputy Minister of Alberta Energy as our keynote speaker. His talk on Shallow Rights Reversion captured the audience and was very informative and entertaining.

The evening ended with 2 draw prizes being awarded; a Blackberry Curve and a Samsung Instinct graciously sponsored by Bell Canada. Congratulations to the winners: Cindy Ganong and Chantal Duval.

The following companies generously sponsored Management Night to make it a huge success. Thank you for your contributions!

Gold LevelEnCana CorporationConocoPhillips CanadaEnerlinkShell Canada

Silver LevelPetro-CanadaTalisman Energy

Bronze LevelBP Canada EnergyCrescent Point Energy Trust

CAPLA Management NightOctober 21, 2008


Management Night was a great success due to the dedicated volunteers on the Special Events Committee Adriena Mackarenko, Autumn Bartlett, Carla Bruce, Chantal Duval, Don Bartier, Donna Rector, Ellen Thomas, Erin Wise, Gord Dainard, Jillian Bollinger and

Rabia Uddin and the CAPLA office staff Janice Schaalje and Judy Uwiera. Thank you everyone! W

Erin WiseManagement Night Committee Chair

Gordon Dainard, Cathy Miller, Patti McMillan & Carla Bruce greet guests at the Member Services Booth

Myra Drumm award winners were featured at Management Night. From left to right: Simone Lamb – Olds College, Barb Bogart – Presenter, Thomas Crosley – U of C, Juliet Faraj – SAIT. Not pictured Alexa Birchall – Mount Royal College.

Wendy Walker & Jeff Bryksa give volunteer recognition gifts

David Breakwell, Assistant Deputy Minister of the Energy Policy & Research Division of Alberta Energy with CAPLA Board members. From left to right, front row: David Breakwell, Michelle Sportak. 2nd Row: Sherry Batke, Wendy Walker, Linda Westbury. 3rd Row; Gordon Dainard, Jeff Bryksa, Cathy Miller, Don Bartier, Kevin McFarlane.


For the past few years CAPLA and NALTA have maintained a great relationship by attending each other’s conferences and sharing the same members.

To date there are 11 Canadian members in NALTA and most are also CAPLA members.

This year Don Bartier (President), Chantal Duval (2010 Conference Chair) and myself, (Brandy Brhelle Director of Education), took the CAPLA booth and attended the conference. It was a great turn out of over 500 people. By having the booth there this year, it was easy for attendees to spot CAPLA and ask more about our organization. Here are some of the comments that were made:

“Wow a Canadian organization that is like NALTA, that is great, we have an office in Calgary”

“It is nice to know that there is something like NALTA in Canada”

“Thanks for being here; I have been looking for some information about Canadian lands”

At our booth we gave out CAPLA pamphlets, promotional items and copies of the NEXUS. This was an excellent way for us to interact with the conference attendees. Here is a list of some of the courses that were offered at the conference.

CAPLA Attends the 2008 NALTA Conference in Orlando Florida

Management Night guests: Laurel Nash – B.C. Energy, Mines & Petroleum Resources, Christine McCarthy – B.C. Energy, Mines & Petroleum Resources, Terry Branscombe – B.C. Energy, Mines & Petroleum Resources

Guests from the Alberta Department of Energy & CAPLA Representatives: Brenda Allbright – Alberta Dept. of Energy, Cathy Miller – CEO, Brenda Ponde – Alberta Dept. of Energy, Linda Westbury – Director, Relations, Paul Batke – Alberta Dept. of Energy

NEXUS w February 2008 37

‘Farmouts/Farmins: What Every Analyst Knows and w

What Every Landsman Should Know! Part I & Part II’ Speaker: Jim Dewbre ‘Assignments: That Won’t Come Back to Bite You’ w

Speaker: Alyce Hoge ‘Protecting Your Corporate Assets by Maintaining w

Critical Lease/Contract Provisions and Obligations’ Speaker: Donna Dowling ‘Examining and Understanding Industry Agreements: w

What Every Analyst Should Know’ Speakers: Bill Phillips, Terry Cross ‘Appalachia: From the Primordial Ooze of Oil and Gas w

Titles to Death Star Litigation’ Speaker: Jim Nicas ‘51 Common Title Issues TX, LA, OK, AR, NM, CO, w

WY, ND and Montana’ Speaker: Timothy Dowd ‘Critical Title Issues and Conveyances that Impact w

How Interests are Calculated – Part I & Part II’ Speaker, Terrill Williams ‘Barnett Shale: Opportunities and Challenges’ w

Speaker: Ed Ireland

The events that were attend were the Presidents welcome reception and the Pirates Dinner Adventure. Both were fully attended and everyone had a great time.

At lunch on the last day of the conference, Don spoke about CAPLA and it’s purpose in the industry, and also invited all NALTA members to attend our Management Summit in 2009 and our Conference in 2010.

It was also a great opportunity to meet the past & present NALTA Board members.

I would like to extend the invitation from NALTA to attend their next conference in Scottsdale, Arizona September 2009. For more information about NALTA, please visit their website at www.nalta.org. W

Brandy Brhelle, Director of Education

L to R: Lauri Fox, Chantal Duval, Brandy Brhelle, and Don Bartier at the Pirates Dinner Adventure

L to R: Don Bartier, Brandy Brhelle, Leverne Hearn – NALTA President, Olga McGee – Past President & Board Advisor and Chantal Duval in front of the CAPLA booth at the NALTA Conference

CAPLA information at a glance

UPCOMING EVENTS

December 3, 2008CAPLA’s 15th Year

Anniversary Kick-off

November/ December 2008

BC epayments workshops

May 24-26, 2009“Land Asset Management” Summit

Kananaskis, AB

COMING ThIS WINTER

JanuaryNew Year Event (replacing

Christmas Cheer event)

January 15NEXUS Submission Deadline

FebruaryCAPLA’s 15th Year

Anniversary Celebration

CAPLA Congratulates

CAPL on 60 Years of Serving Calgary

Landmen

Watch for details of all events on the CAPLA website and in upcoming editions of NEXUS

CAPLA’s 15-year AnniversaryThis year CAPLA is celebrating 15 years

of success as an industry organization.

The strength behind our organization

has been our volunteers and the

dedication and enthusiasm with which

they have contributed to our many

initiatives. A summary of our history

was published in the April 2008 NEXUS.

Donna Rector will be heading up a

committee to plan a celebration in

2009. To offer your help with this

event, please contact Donna at

[email protected].

Season’sGreetings