April 2012 - Canadian Association of Petroleum Landmen

THE
NEGOTIATOR
®
Th e M a g a z i n e o f t h e C a n a d i a n A s s o c i at i o n o f Pe t ro l e u m L a n d m e n
®
April 2012
New
Fracking
operating
practices
Capp’s New
Standard Improves
Monitoring, Risk
Management &
Transparency
2012 PNG Information Exchange
Regulatory Updates in B.C., Alberta
and Saskatchewan
The Single Well Unit PAUAs
2012 Vancouver CAPL Conference
Truly Magnificent Legal Documents
Activities Update
McMillan’s Energy group consists of
leading professionals with a wide breadth
of experience and recognized expertise
providing legal services and advice to the oil
and gas industry.
For more information on the services McMillan’s Energy Group
can provide, please visit our website or contact a primary
member of the Energy Group:
Michael Thackray Q.C.
[email protected]
403.531.4710
Jeff Geib
[email protected]
403.531.8740
Joan Dornian
[email protected]
403.531.4713
Vancouver | Calgary | Toronto | Ottawa | Montréal | Hong Kong | mcmillan.ca
THE
NEGOTIATOR
Th e M a g a z i n e o f t h e C a n a d i a n A s s o c i at i o n
o f Pe t ro l e u m L a n d m e n
Senior Editorial Board
Director of Communications
Joan Dornian
[ph]
Advertising Editors
Clark Drader
[ph]
[ph]
Paul Cooper
Coordinating Editor
Krissy Rennie
[ph]
Feature Content Editor
Mark Innes
[ph]
Regular Content Editor
Jared Frese
[ph]
Social Content Editor
[ph]
Mark Horne
Editorial Committee
Mandy Ediger
Maria Lewis
Lindsey Lovse
Glen Nazaruk
Gary Richardson, PSL
Tracey Stock
Chris Terner [ph]
[ph]
[ph]
[ph]
]ph]
[ph]
[ph]
NEGOTIATOR
403-531-4713
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587-952-3222
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Advertising
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®
2011–2012 CAPL Board of Directors
President
James Condon, P.Land [ph] 403-819-2423
Vice-President
Margaret Ariss
[ph] 403-539-1107
Director, Business Development
Alberta & British Columbia
John Covey
[ph] 403-232-7323
Director, Business Development
Saskatchewan & Alberta Oilsands
Jan McKnight
[ph] 403-290-3406
Director, Communications
Joan Dornian
[ph] 403-531-4713
Director, Education
Kevin Egan
[ph] 403-298-6194
Director, Field Acquisition & Management
Jason Tweten, PSL
[ph] 403-528-2558
Director, Finance
Nikki Sitch, P.Land, PSL
[ph] 403-290-3421
Director, Member Services
Robin Thorsen
[ph] 403-519-2242
Director, Professionalism
Frank Terner, P.Land
[ph] 403-691-3056
Director, Public Relations
Chris Lamb [ph] 403-532-7447
Director, Technology
Robyn Van den Bon, P.Land, PSL [ph] 403-699-2053
Secretary/Director, Social
Gloria Boogmans, P.Land
[ph] 403-246-4173
Past President
Dalton Dalik, P.Land
[ph] 403-478-0528
Suite 350, 500 – 5 Avenue S.W. Calgary, Alberta T2P 3L5
[ph] 403-237-6635 [fax] 403-263-1620
www.landman.ca
Baily Goodwine
Denise Grieve
Irene Krickhan
Karin Steers
THE
[email protected]
[email protected]
[email protected]
[email protected]
Features April 2012
3 2 012 Vancouver CAPL Conference
Kevin Burke-Gaffney
5 F ocus on Fracking
Katie Slipp
1
5
Production Allocation Unit Agreements
Paul Negenman
In Every Issue
1
1
14
18
24
Message From the Executive
27
28
28
28
The Social Calendar
Board Briefs
Get Smart
Roster Updates
CAPL Calendar of Events
April Meeting
May Meeting
Also in this issue
8 2012 Junior Landman Charity Golf Classic
8 CAPL April Meeting: Guest Speaker
9 Dust Up 2012 Sponsorship Opportunity
10 2012 PNG Tenure Information Exchange
11 An Update from PLUS
12 Fifteenth Annual CAPL 9–Ball Pool Tournament
21 New Limits on Mineral Ownership Shares Now in Effect
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Photo courtesy of Vancouver Convention Centre
2012 Vancouver CAPL
Conference
Activities Committee
One of the more obvious advantages
to chairing the Activities Committee
for the 2012 CAPL Conference in
Vancouver, British Columbia is that
it’s not Regina!! Seriously though, there
cemented the reputation of Vancouver as one of
is a distinct vibe about Vancouver that you don’t
Convention Centre served as the International
get in Calgary or a lot of other cities. The attitude
Broadcast Centre. This Olympic legacy is a fully
of Vancouverites that it is a world-class city has
linked expansion immediately to the west of the
existed for a long time, primarily because of its size
original convention centre at Canada Place. Built
and location. And, more recently, the very success-
over land and water, the award-winning Vancouver
ful hosting of the 2010 Winter Olympic Games by
Convention Centre West with its green living roof
the “go to” metropolitan locations in the world.
As the official host venue of the Main Media
Centre for the 2010 Winter Games, the newly
constructed West building at the Vancouver
is a state-of-the-art facility on the waterfront
proud Vancouverites and British Columbians would
and will be the location for the Sunday evening
kevin burke-gaffney
argue that the staging of the Olympics further
Welcome Reception. With floor-to-ceiling glass
3
THE NEGOTI ATO R / APRIL 201 2
the city didn’t hurt. In fact, the vast majority of
written BY
Activities Committee is currently working towards finalizing a
wide-ranging list of Tuesday activities. Vancouver city tours on
land and water, ocean adventures like whale watching, kayaking and fishing, hiking and riding on some of the city’s northern
mountain trails, a golf game at one of the area’s renowned
courses, and a boat-travelling scavenger hunt will be some of the
options available to those attending the Conference. Again, we will
throughout, the West Ocean Foyer and Terrace will provide our
be providing updates through the CAPL website, The Negotiator,
delegates and their guests with spectacular views of Stanley Park,
and e-mail notifications so tune in regularly and often.
Coal Harbour, Canada Place and the mountains. Only a short
walk north on Burrard Street from our host hotel, the Vancouver
Convention Centre also features the Olympic Cauldron which
remains as a permanent landmark on the Jack Poole Plaza.
Although not a legacy left over from the 2010 Olympics,
the Commodore Ballroom did serve as the hospitality venue
during the Games for both the US television broadcaster NBC
and the Budweiser parent company sponsor, Anheuser-Busch.
The “Commodore” is a world renowned music venue and a
Vancouver landmark located about a 5-minute walk from The
Fairmont Vancouver Hotel on Granville Street in the heart of
Vancouver’s entertainment district. Opened in 1929 the building
Finally, all of this would not be possible without the hard
was built in the Art Deco style of the late 1920s and was best
work of a group of landmen volunteers dedicated to making the
known for showcasing special performances with the likes of
2012 CAPL Conference an enjoyable and memorable experience
Sammy Davis Jr. in 1948 and in later decades with Duke Ellington
for everyone whether you’re a veteran conference goer or a first
and Tommy Dorsey. The Commodore Ballroom continues to host
timer. The members of the Activities Committee are listed below
megastar acts from around the world including U2, The Police and
and don’t hesitate to contact any one of us with your comments or
Pearl Jam, and more recently after a $3.5M renovation, Katy Perry
THE NEGOTIATOR / APRIL 2 012
and Lady Gaga. We are extremely excited to have the exclusive use
4
feedback. We look forward to seeing you in Vancouver. m
of Vancouver’s premier entertainment venue for our Monday night
2012 CAPL Conference Activities Committee
reception and we will be advertising further information through
Kevin Burke-Gaffney (Committee Chair) Neo Exploration Inc.
the CAPL website and The Negotiator concerning this event once
Ryan Armstrong
Devon Canada Corporation
final details are confirmed.
Jenny Hay
Imperial Oil Resources
As I alluded to at the start of this article, a definite attraction
Dave Jacobus
Red Hawk Energy Investments Ltd.
to hosting the CAPL Conference in Vancouver is its outstanding
Jordan Murray
Devon Canada Corporation
location on the coast of the Pacific Ocean and the many ameni-
Larysa Polunin
Apache Canada Ltd.
ties it provides. In order to ensure that our Conference sponsors,
Breanne Ramsay
Britt Land Services
exhibitors, delegates and guests are able to take advantage of their
Brett Suchan
Encana Corporation
time to explore the natural splendour and beauty of the area, the
Josh Wylie
Lone Pine Resources Inc.
Focus on Fracking:
CAPP’s New Operating Practices Improve Monitoring, Risk Management and Transparency
As the development of natural gas though
hydraulic fracturing, or “fracking”, becomes
more prevalent in North America, concerns
about safety and the environment have come to the forefront.
In response to these perceptions, both government and industry are
working to improve fracking operations and increase transparency.
A series of Canada-wide Operating Practices recently
announced by the Canadian Association of Petroleum Producers
(“CAPP”) moves the natural gas industry in Canada a step closer to
standardizing practices and answering critics’ concerns about the
impacts of fracking. This voluntary regime bolsters existing practices related to fracking and promotes implementation of public
disclosure and risk management procedures.
Enhanced Resource Recovery Through Fracking
As North American energy demand grows, the development of
The Operating Practices: A Step Towards
Improved Practices and Disclosure
unconventional sources of natural gas, like shale gas and tight gas,
Announced on January 30, 2012, the Operating Practices were devel-
continues to increase. Demand has lead to innovative technology,
oped by CAPP in concert with natural gas producers. The result of
such as horizontal drilling and fracking, to facilitate recovery of
CAPP’s Guiding Principles for Hydraulic Fracturing – a series of best
resources that were once considered to be uneconomic.
practices, including the disclosure of fracking fluid ingredients – the
Fracking is an enhanced recovery technique used in low perme-
Operating Practices were created to establish a transparent, respon-
ability deposits where fluid or gas, usually containing sand, is used
sible and continuously-improving approach to the development of
to extract natural gas or oil through horizontal wells. The pressure
unconventional natural gas resources in Canada. In a recent CAPP
created by pumping these materials into the perforated wellbore
press release, CAPP President Dave Collyer said, “The hydraulic
results in cracks in the surrounding rock that connect the forma-
fracturing operating practices demonstrate the Canadian natural
tion to the wellbore. When the pumping pressure is relieved, the
gas industry’s continued efforts to ensure responsible resource
fluid disperses, leaving a thin layer of sand to prop open the cracks,
development and protection of Canada’s water resources.”
allowing natural gas or oil to flow from the formation into the well.
Although voluntary, the Operating Practices apply to all
Fracking fluids are then recovered from the formation by the opera-
CAPP members that explore for and produce natural gas in
tor for storage, reuse or disposal in accordance with regulation.
Canada. In addition to encouraging on-going compliance with
Without technologies like horizontal drilling and fracking,
all regulations related to fracking operations and water use
operators would be required to drill multiple vertical wells to
and protection, the Operating Practices include six practices
achieve production from unconventional resource formations.
that set out minimum operational and reporting requirements:
This would not only put the economic viability of the operation
in doubt, but would also increase the required area of land distur-
1.Fracking Fluid Disclosure: The Operating Practices require public
bance. Fracking is a method of production that allows for both
disclosure of fracking fluid additives on a well-by-well basis.
enhanced resource recovery and a reduced industrial footprint.
Historically, operators have considered fracking ingredients to
be confidential and proprietary information. However, as the
development of unconventional natural gas resources grows
heels of a recent well blowout in Alberta and allegations linking
and scrutiny of fracking operations increases, operators are
fracking to water contamination. While allegations about the
beginning to recognize that the benefits of transparency may
impacts of fracking have not been proven and despite studies
outweigh competitive concerns.
that show no connection between fracking and groundwater
2.Fracking Fluid Risk Assessment and Management: To better iden-
contamination, industry and government recognize that steps
tify and manage the potential health and environmental risks
must be taken to bring public perception in line with the realities
associated with fracking fluid additives, the Operating Practices
of the practice.
require companies to develop well-specific risk management
5
THE NEGOTI ATO R / APRIL 201 2
Although fracking is generally considered to be safe and
effective, the practice has come under public scrutiny on the
plans for these additives. The process for development of these
6.Fluid Transport, Handling, Storage and Disposal: Publicly-available
plans will be publically available and is expected to increase
fluid transport, handling, storage and disposal practices will
market demand for environmentally-sound fracking fluids.
allow operators to identify, evaluate and mitigate potential risks
3.Baseline Groundwater Testing: Groundwater integrity is often the
and ensure timely response in the event of an accidental spill.
primary concern of many landowners when faced with fracking
The requirements set out in the Operating Practices will apply
operations on their lands. The Operating Practices’ baseline ground-
to fracking fluids, produced water, flowback water and fracking
water testing and monitoring recommendations are extensive and
fluid wastes.
are intended to ease these concerns. In particular, the Operating
Practices require both the development of domestic water well
Rather than offering a “one size fits all” solution, the Operating
testing programs and the design of regional groundwater moni-
Practices recognize that different approaches may be required
toring programs in concert with government and regulators.
for different lands and reservoirs. Operators are encouraged to
Baseline groundwater testing programs are to be designed and
develop practices and procedures that are tailored to the nature
carried out under the direction of a qualified groundwater profes-
of the lands and reservoirs under development.
sional. Equipment must be selected on the basis of the parameters
monitored and must be consistent with established protocols.
4.Wellbore Construction and Quality Assurance: The Operating
Practices recognize that sound wellbore design and construction
is fundamental to the protection of groundwater resources and
to ensure responsible resource development. These practices
www.caplacanada.org
describe the requirements for wellbore construction and quality
assurance in fracking operations. Operators are required to ensure
wellbore integrity prior to the start of fracking operations and
after fracking is complete and to develop remedial plans in the
unlikely event that wellbore quality is compromised. The practices that are developed by operators will be publicly-available.
5.Water Sourcing, Measurement and Reuse: The Operating Practices
include water sourcing, measurement and reuse practices that
respond to concerns about impacts on surface water and groundwater quantity. In the development of unconventional natural gas
through fracking, water is generally only required for drilling and
completion operations and is not used to produce the resource.
PNG
Tenure Info
Exchange
Some of the water used is recovered with the produced gas and
is then recycled or disposed. Water quantity will be protected by
requirements in the Operating Practices to assess and measure
Register now!
water sources, monitor for exceedences of withdrawal limits,
www.caplacanada.org/calendar.aspx?id=239&event=Y
monitor water sources with a view to sustainability and collect
and report water use data. Water measurement, sourcing and
THE NEGOTIATOR / APRIL 2 012
reuse practices will be made available to the public.
6
April 11th and 12th, 2012
The Operating Practices are generally regarded as necessary to
in Canada. Companies that fail to adopt these or more rigorous
set early and meaningful guidelines around fracking operations
practices now may find themselves playing catch-up, putting
in Canada.
regulatory compliance, continued economic resource development and stakeholder relationships at risk.
The Future of Fracking in Canada
The implementation of the new technical, monitoring, risk
As demand for energy grows, operators will continue to work to develop
management and disclosure practices will result in increased
and produce what were once considered to be stranded resources.
operating costs. Since postponing implementation will only delay
With progress in resource development comes more guidelines
these costs, adopting the practices now will help operators plan
and regulation, that focus on safety, the environment and transpar-
for and control the expenditures.
ency. With this in mind, industry should consider the following:
3. Education is Key
1. Fracking Will be Regulated
Given the expected regulation and recent perceptions and allega-
By all indications, it is only a matter of time before fracking is regulated
tions about the impacts of fracking, operators, service providers
throughout Canada. While various states and agencies in the United
and land agents should all be aware of CAPP’s new Operating
States have developed and continue to develop regulation specific to
Practices and the improvements and benefits that those changes
fracking operations, British Columbia is the only province in Canada
represent. Land agents – often one of the first points of landowner
that has gone so far as to regulate fracking disclosure requirements.
contact – who are knowledgeable about fracking operations
Though there have not been any reported instances of harm to ground-
and the practices that guide industry can, in particular, use the
water from fracking in that province, operators in British Columbia
Operating Practices to respond to landowner questions and
are now required to publicly disclose fracking fluid ingredients, with
concerns at the earliest stages of resource development.
compliance enforced by the British Columbia Oil and Gas Commission.
Within 30 days of completion operations, companies that have fracking
Going Forward
operations in British Columbia must upload a list of fracking ingredi-
Proactive implementation of the Operating Practices will not only
ents on an individual well basis (to a public electronic registry).
move operators closer to compliance with eventual regulation, but
CAPP and British Columbia are not alone in the move to develop
will help reassure stakeholders, including the public, that industry
fracking practices and increase transparency and public involve-
has listened to concerns and has responded in a timely and mean-
ment in Canada. The Canadian government has commissioned a
ingful way. Companies that implement the Operating Practices
study from Environment Canada on the potential impact of fracking
technology. Alberta has also joined the movement towards tighter
controls over fracking, with the Energy Resources Conservation
now are likely to see long-term benefits. m
Katie Slipp, Blake, Cassels & Graydon LLP
Board recently announcing its Unconventional Gas Regulatory
Framework and new rules that will govern unintended interwellbore
communication. There is every indication that the eventual regulation of fracking in jurisdictions throughout Canada is a certainty.
Katie Slipp is a senior associate in the Calgary office
of Blake, Cassels & Graydon LLP. Katie’s practice is
focused on regulatory, environmental and energy law.
This article is intended for informational purposes only
2. Best Practices Should be Implemented Early
and does not constitute legal advice or an opinion
It is expected that the Operating Practices may set the standard
on any issue. Blakes would be pleased to provide
for the future regulation of fracking and fracking fluid disclosure
additional details or advice about specific situations.
Strong Foundation.Bright Future.
7
THE NEGOTI ATO R / APRIL 201 2
Visit us at www.edwardsland.ca to find out what we can do for you
2012 Junior
Landman Charity
Golf Classic
Thursday June 14th, 2012
Valley Ridge Golf Club
The Junior Landman Charity Golf Classic
continues to be an excellent opportunity
for both junior landmen and industry professionals to gather for
PLM Endowment Fund and has also set a goal of donating $50,000
to the Fund by 2016. We have chosen a charity that is important to
many of us and we are anticipating that our efforts will be matched
by the Government of Alberta’s Access to the Future Fund.
We are pleased to announce and welcome everyone to the
first landman golf tournament of the summer. The new venue
is the Valley Ridge Golf Club and will be on Thursday June 14,
2012 at 1:00 p.m. (shotgun start). The entry fee for the tournament is $180 for industry and $125 for students. The entry fee
for industry has been reduced to $140 through an early bird
registration that is only valid from now until April 30, 2012.
Registration options for the tournament are available on the
website at www.jrlandmanclassic.ca.
a great day of golf and valuable networking, as well as a vehicle to
For their efforts to date and going forward, I would like to
enhance our community by donating proceeds to local charities.
thank this year’s committee of Brad Johnston, Wayne Ellis, Jen
This year, the committee has chosen the University of Calgary’s
MacDonald and Garrett Laudel.
Tournament sponsorship information
is available through:
Josh Wylie
[email protected]
Jennifer MacDonald
[email protected]
Garrett Laudel
[email protected]
We look forward to having you join us
on June 14 for a great afternoon of golf,
networking and dinner. m
Josh Wylie
Junior Landman Charity Golf Classic
Organizing Committee
THE NEGOTIATOR / APRIL 2 012
CAPL April Meeting: Guest Speaker
Don Thompson
Don Thompson, the guest speaker at the CAPL’s
April, 25, 2012, general meeting at the Westin,
lished strong working relationships with business, industry and
is the Executive Advisor, Sustainability and Oil Sands Outreach,
government leaders within Canada and internationally. A 33-year
Canadian Oil Sands Limited. Most recently, he was President of
veteran of the industry, Don has been part of many significant
The Oil Sands Developers Group (OSDG). As President, he was the
technological advances in the oil sands.
external voice presenting OSDG members’ actions and ideas to
Over the past three years, Don has travelled extensively to
audiences primarily across Canada and in the United States – indus-
speak in major cities and smaller communities that contribute
try, community and government. Prior to that, Mr. Thompson served
to and benefit from oil sands development. He has delivered oil
as Corporate Secretary and General Manager of Environment, Health
sands facts to more than 250 audiences and through over 700
and Safety for, and as an Officer of, Syncrude Canada Ltd., a position
he held for some 18 of his 32-year career with Syncrude.
8
As a result of his ongoing outreach program, Don has estab-
media interviews across North America. m
Dust Up 2012
Sponsorship
Opportunity
Tier 1: $1,000 Sponsorship
Corporate logo displayed on the big screen TVs (double exposure)
and tent cards (2 tickets).
Tier 2: $500 Sponsorship
Corporate logo displayed on the big screen TVs and corporate
name on tent cards (1 ticket).
The CAPL is pleased to announce that DUST
UP 2012, a premier networking evening, will
be held at WEST Restaurant and Bar on Thursday, June 28, 2012.
Weather permitting we shall have exclusive use of the patio as
If you wish to participate or have further questions regarding
sponsorship please contact: Robb Craige (403) 862-8444 or email
[email protected]. m
well as the plus 30 level. DUST UP 2011 sold out with over 750 CAPL
Please make cheque payable to the CAPL and forward to:
members in attendance.
CAPL
Sponsorship will support an evening of networking, a steak
350, 500 – 5 Avenue S.W.
dinner, and prizes for this valuable opportunity to showcase your
Calgary, Alberta T2P 3L5
corporate dedication to industry professionals.
Attention: Denise Grieve
The Jaguar Land Group Ltd. specializes in the
following land administration capacities:
• Acquisitions and Divestitures
(pre-closing, closing and post-closing)
• Contract, Mineral, Surface and JV file maintenance
• Data Integration and Land System Conversions
• Due Diligence
• Project Management
• Mentoring
jaguar land group ltd. | t. 403.718.0525 | F. 403.264.0703 | www.jaguarland.ca
9
THE NEGOTI ATO R / APRIL 201 2
Our goal is to assist your organization in meeting
its objectives for completion of land administration
work, on time and on budget.
2012 PNG Tenure
Information
Exchange
The 2012 PNG Tenure Information Exchange
will
• Document Submission Library Update
• MapSearch update
Alberta
Department of Energy
• Land Use Framework
• Business Tenure Review/e-Continuations
• InSitu Coal Gasification
be held at the Hyatt Hotel on April 11 and 12, 2012. Last year was a
• Carbon Capture and Storage Agreements
test whether we need a two day event and the consensus was “yes”.
• Pore Space Approval
We are now able to allow the provincial regulatory bodies from
British Columbia and Saskatchewan to present each half day on
• Land Sale Updates
• Oil Sands – Policy Updates
the first day and Alberta will have a full day on the second day of
the event.
We have a number of interesting topics and we are very pleased
Energy Resources Conservation Board
• Well Spacing Framework
to announce that we will have Oil Sands representatives from
Alberta Energy attending and presenting what is new in this field.
Some of the agenda items are:
We are expecting a high interest in this year’s event, so please
register early to ensure that you will not be disappointed!
To attend this event, please go to the Events Listing on the
British Columbia
Ministry of Energy and Mines
CAPLA website to register. m
• Organization Update
Marion Leonardo
• Natural Gas Strategy and Liquified Natural Gas Strategy
CAPLA Director, Government Relations, Alberta
• Legislation Review
• Royalty Program Update
• Community Engagement
Oil and Gas Commission (OGC)
• Organizational and Regulatory Updates
• Consultation and Notification
• Basin Management
Saskatchewan
Farmouts. Sales.
Opportunities.
Ministry of Energy and Resources
• Registry Saskatchewan Inclusion Project (RSIP)
• Process Renewal and Infrastructure Management Enhancements
(PRIME) Project Update
• Lease Continuance Review, Land Sale Lean Project, Competing
Resources, Exploration Guidelines and eTenure updates
• Oil and Gas Liability Management Program Update
• Acknowledgement of Reclamation Program
PNG Exchange is a web-based service for landmen and
oil and gas professionals looking to acquire or dispose
of properties. PNG Exchange benefits companies by
allowing users to customize their property postings,
while reaching the maximum number of interested
parties in the marketplace. It is the quickest and most
cost-effective way for disposing and acquiring parties
to connect.
• Horizontal Well Application and Approval Process
THE NEGOTIATOR / APRIL 2 012
Information Services Corporation (ISC)
• OLS utilization and potential fee increases for non-OLS packets
For property details visit www.pngexchange.com or
open the PNG Exchange layer in geoSCOUT’s Map Window.
For further details visit our website.
• Fractional Mineral ownership
• Lapsing of interests and intervening court orders – new process
• Bulk data project update
403 462 8057 | [email protected]
10
Message From
the Executive
The main items that have contributed to the positive net earnings over 2011 are lower expenditures, higher education revenues,
higher meeting revenues, and the 2011 Conference had net earnings of $84,000. We continue to be diligent in maintaining a close
eye on expenditures while ensuring we prepare for the future.
With the reserve fund in the desired $600,000.00 range, this
As the CAPL Finance Director
gives CAPL the ability to manage our affairs and enables us to
for 2011-2012, I have been responsible
take on fiscal obligations to ensure we maintain and expand on
for the financial affairs of the CAPL
first class opportunities within CAPL. As a result, our member-
organization. This includes oversee-
ship benefits greatly. Through my tenure as Finance Director,
ing the financial statements, budget,
I have reviewed our investments and continue to work within our
investment portfolio and banking.
By-laws with Karin, Denise, the CAPL Executive and our banking
The CAPL prepares its budget on
institution to ensure we have the right investment vehicle to take
a calendar year basis and I have
us successfully into the future.
worked closely with Karin Steers in the CAPL office and with
I would like to take this opportunity to thank all of the
all current Directors to prepare the 2012 budget. This budget
volunteers and members involved with CAPL. It is the passion,
was approved at the February 7, 2012 board meeting and we are
dedication and hard work of CAPL volunteers that makes our
running with a deficit budget of approximately $65,000.00.
organization successful. Many thanks go out to the CAPL office
The Director of Finance works closely with the CAPL office in
staff: Denise, Karin, Irene and Baily, who provide assistance to all
reviewing the monthly financial statements and to bring concerns
of us, especially at the Board level.
forward, if any, to the Board or individual Directors. The 2011
If you have any questions or concerns about this article or in
financial statements are in the process of being audited. In 2011,
general, please feel free to contact me at nsitch@barrick-energy.
com or 403-660-2689. m
CAPL had a successful year and I am pleased to report that the
unaudited financial statements show net earnings of approximately $217,000, while we had a deficit budget of $50,511. Please
Nikki Sitch
keep in mind that the net earnings are unaudited and therefore,
Director, Finance
are subject to change.
An Update from PLUS
With the winter semester
coming to a close, we would like
Industry Speaker Series, and the Annual
Your generous contributions enabled
Oil Riggers and Gold Diggers Cabaret.
PLUS to organize successful educational
to take this opportunity to thank all those
Thanks to all of the industry members
and networking events, which are a
who made our tenure as PLUS executives a
who supported PLUS by attending the
major part of the career development of
successful and positive experience.
events.
participation,
PLM students. Without your outstanding
Without
your
Our first event of the semester was
students wouldn’t be afforded the oppor-
support, we would not be able to host
Meet Your Mentor Night on January 18,
tunity to build important relationships
such events.
hosted in partnership with the CAPL
which aid in the success of their future
PLM
careers in land.
Mentoring
Committee. We
are
We enjoyed working with all of our
sponsors and industry attendees, and
very thankful to everyone who donates
We would also like to recognize to the
look forward to working with you in the
their time and efforts to the mentoring
following corporate sponsors of PLUS for
future. Stayed tuned for the announce-
program. This is one the first opportu-
the 2011/2012 year:
ment of the 2012/2013 PLUS executive
nities for students to begin developing
next month. m
Apache Canada Ltd.
provided by a mentor is invaluable. Thank
Devon Canada Corporation
PLUS Executive Team
Encana Corporation
Jennifer MacDonald, Jordan Kersch and
LandSolutions LP
Meghan Hockaday
you mentors!
Following the success of Meet Your
Mentor Night, PLUS hosted a variety of
Profile Search International
other events throughout the semester.
Scott Land & Lease Ltd.
These included Speed Networking, the
11
THE NEGOTI ATO R / APRIL 201 2
their networks, and we feel the guidance
Fifteenth Annual
CAPL 9–Ball Pool
Tournament
The Fifteenth AnnuaL CAPL 9–Ball Pool
Tournament will be held at the Garage in Eau Claire Market
on Thursday, May 3, 2012 beginning at 4:45 pm.
9–Ball is a game where luck plays a very big role, so come
out and test your luck with your fellow CAPL members. All levels
of players are welcome to participate and team pairings are
designed to minimize any requirement for talent. Non-playing
spectators are also welcome and heckling is encouraged and
completely acceptable.
The format will be assigned teams of two players and all are
guaranteed at least two best of three matches. We anticipate over
60 players and a variety of prizes for surviving teams as well as for
welcome and incentives are provided for sponsors. Details may be
obtained from any member of the Pool Committee. m
others through random draws. The entry fee is $40 (GST included)
Harry Ediger
403-515-5554
[email protected]
and, given the historically high level of interest in this event, we
R. K. Howard
403-999-2136
[email protected]
suggest you submit your entry as soon as possible.
Derek Jacobus
[email protected]
The deadline for entries is April 20, 2012 and the registra-
Matt Rasula
[email protected]
tion form can be found on the CAPL website. Sponsorships are
Rob Weston
403-816-2966
[email protected]
THE NEGOTIATOR / APRIL 2 012
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Board Briefs
The key discussion items at the
CAPL Board of Directors’ Meeting
held March 6, 2012 at the CAPL
Office were as follows:
• Nikki Sitch advised that she has reviewed the CAPL By-Laws
with respect to CAPL investments and advised that the By-Laws
are very restrictive. Jim Condon advised that, in his upcoming
capacity as Past President, he will be reviewing the By-Laws and
any proposed changes. He advised that all proposed changes
should be directed to him.
In Attendance J. Condon
C. Lamb
J. Covey
N. Sitch
D. Dalik
R. Thorsen
J. Dornian
J. Tweten
K. Egan
Absent Guest
M. Ariss
Denise Grieve
G. Boogmans
J. McKnight
F. Terner
R. Van den Bon
Robin Thorsen, Director of Member Services, provided the
• following update:
• The deadline for nominations for the annual Merit Awards has
passed and the Committee has received several nominations.
• Robin Thorsen is investigating a group policy with insurance
companies for home and auto insurance and will provide an
update at the next Board Meeting.
• Nikki Sitch, Director of Finance, provided a Treasurer’s Report
• Jim Condon reminded Directors to provide an update on the
as at February 29, 2012 showing CAPL investments totalling
status of their Action Items (from the 2011 Strategy Session) at
$609,877.10 Canadian and $31,465.61 U.S. along with a cash
the April 3, 2012 Board of Directors’ Meeting.
balance of $533,466.11 Canadian and $1,689.42 U.S. The CAPL
• Dalton Dalik advised that the Nominating Committee is look-
Scholarship Fund has a balance of $237,014.27. There were no
ing for a minimum of five vacancies for the 2012-2013 Board of
transfers made since the last report.
Directors. To-date; the Committee has received confirmation
• Robin Thorsen presented seven Active and thirteen Student
membership applications to the Board of Directors, which were
approved.
that three members will put their name forward.
• Joan Dornian, Director of Communications, advised that The
Negotiator typically is tight for space in the spring. Joan will
• Robin Thorsen advised that approximately 80 members have
contact Gloria Boogmans to check with the various Social
still not paid their 2012 annual membership dues. Registered
Committees to determine what their upcoming advertising
reminder letters are currently being sent to these members.
• Kevin Egan, Director of Education, provided a Motion to the Board
to approve an expenditure of $20,000 to engage Knightsbridge
to conduct a series of round table discussions. The goal is to
determine potential courses for a CAPL “Emerging Leadership
Program”. The Motion was approved by the Board.
• The Board approved the recommendation of the Conference
needs will be.
• Jim Condon reminded Directors of the following:
• The next Board of Directors’ Meeting will be held Tuesday,
April 3, 2012 at the CAPL office.
• The next General Meeting is a networking event on Thursday,
March 15, 2012 at the Libertine Public House. m
Selection Committee to endorse Margaret Elekes and Donna
Gloria Boogmans, P.Land
Phillips to manage the 2013 CAPL Annual Conference.
Secretary/Director, Social
w w w. p r o g r ess l a n d . c o m
THE NEGOTIATOR / APRIL 2 012
1.866.454.4717
12831 – 163 Street, Edmonton, Alberta T5V 1M5
14
Production
Allocation Unit
Agreements
Common Ownership
The regulatory requirement of common ownership in a spacing
unit or larger production unit is the bedrock rational for PAUAs
(see for example the Oil and Gas Conservation Regulations,
Alberta). Regulatory bodies require that production occur equitably among the WI and LOR owners. Failure to establish common
ownership in a spacing unit or larger production unit is a
non‑compliance event and can lead to shutting in wells and other
regulatory woes.
The Single Well Unit
Where you have varied WI or LORs in production from a
single wellbore, equitable production can only be assured where
the parties have agreed to the method of allocation of such
The traditional unit agreement and the Production Allocation Unit
production. This is especially the case where production from
Agreement (PAUA) are, in my humble opinion, truly magnificent
each horizontal leg or vertical completion cannot be individu-
legal documents that:
ally determined or metered. Where you cannot actually measure
production from tracts having differing ownership, the only
(a)allow for the equitable and economic production of oil and
method to equitably allocate production among owners is by way
gas where you have diverse working interest (WI), royalty
of a PAUA which allocates production from the production alloca-
(GOR) and lessor (LOR) parties in a pool(s) or well;
tion area to the various tracts.
Freehold Lease Continuation
(b)provide a mechanism for regulatory compliance where you
do not have common ownership in a pool or where you are
The other fundamental benefit of unitization is the ability to
commingling production among pools and spacing units; and
amend freehold leases to provide for continuation by way of unit
operations as opposed to actual operations from the said lands
(c)
increase lease continuation certainty through the amend-
under the lease. A PAUA should always contain a article on lease
ment of the leases to provide for continuation by way of unit
continuation and amendment. A good example is the Alberta
operations.
Energy model form PAUA (which can be downloaded from the AE
website, under Tenure forms). Article 9 of this PAUA provides that:
The increase in horizontal well drilling has been the driver in the
use of PAUAs. A PAUA is required in horizontal wells where the
9.1 Continuation of Leases
productive horizontal legs cross more than one spacing unit and
All operations conducted with respect to the Production
there are varied WI, GOR or LOR parties.
Allocation Zone or production of Production
However PAUAs may also be used for vertical wells, where
Allocation Substances shall, except for the
parties are increasingly producing from multiple pools within a
purpose of calculating payments to Royalty
single wellbore and commingling production to a single meter
Interest Owners, be deemed conclusively to be opera-
point. This vertical commingled production from multiple pools is
tions upon or production from the Production Allocation
more than a vertical pooling (since each pool is a separate spacing
Zone in each Tract, and such operations or production
unit), and soElexco_Negotiator
a PAUA should qrtrhoriz4CfinPage
be used.
shall continue in full force and effect each Lease and
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THE NEGOTI ATO R / APRIL 201 2
• Mineral and Surface Leasing
• Right-of-Way Acquisitions
• Mineral Ownership/Title Curative
• Seismic Permitting
• Mapping/GIS Services
• Abstracts of Title
1
any other agreement or instrument relating to
Special Consideration for GOR
the Production Allocation Zone or Production
An often overlooked element of common ownership on unitiza-
Allocation Substances as if such operations had
tion is the GOR holder. Such parties are often but not always
been conducted on, and a well was produc-
included as parties in the unit agreement such that the GOR hold-
ing from, each Tract or portion thereof in the
ers royalty is calculated based upon unit production
Production Allocation Area (emphasis is mine).
Calculating the GOR
9.2 Leases Amended
You cannot assume that a GOR is always paid based upon unitized
Each Lease and any other agreement or instru-
production. You must confirm that the GOR holder was a party
ment relating to the Production Allocation Zone
to and signed the PAUA. In such a case the GOR will appear as a
or Production Allocation Substances is hereby
royalty or encumbrance beside the appropriate tracts in the unit
amended only to the extent necessary to make it
Exhibit. If so, the GOR is calculated based upon unitized production.
conform to this Agreement.
However, if the GOR holder did not sign the unit agreement,
THE NEGOTIATOR / APRIL 2 012
the GOR is not payable based upon unitized production but rather
16
These magic words must appear in your PAUA in order to properly
from production from the GOR lands. This can lead to bizarre
amend your lease and the lessor must be a party to and sign the
results in traditional units depending on where the GOR lands
PAUA. You cannot bind the lessor unless they have agreed in writ-
are located. Sometimes a GOR holder will refuse to sign onto a
ing to the amendments to the lease.
unit as a major well is located on the GOR lands. In such a case
Please note that such an amendment must also be caveated on
the GOR will continue to be calculated from production from such
title in order to be enforceable as against third parties. The original
well, regardless of the impact of waterflood or other enhanced
lease caveat can protect only the terms of the original lease, not
recovery techniques pushing additional oil through the wellbore.
amendments. Failure to file such a caveat could lead to a top
Often after a number of years (and sales of the assets) the GOR
lessee successfully lapsing your original lease caveat if you do not
stops being calculated based upon the said lands and starts to be
have production from the said lands under your lease.
paid on unitized production. Not ok.
GORs and Common Ownership
2012 Updated Commentary
A potential common ownership issue can also arise if GOR hold-
This article first appeared in the June 2008 Negotiator. As this hori-
ers are ignored on unitization. As indicated above, PAUA are often
zontal well thing appears to be catching on, we decided to reprint
used where it is not possible (or economic) to determine the
the article. The follow are some random thoughts (or pearls of
volumes of production from each leg or completion over time
wisdom) that have occurred to me since that time.
as all volumes are measured at a single meter. If a GOR holder
is not a party to a PAUA in such a case, they can certainly argue
No So PAUA
that common ownership has not been established. The rationale
I foolishly stated that PAUAs appear to have become an industry
for common ownership is equitable production. If a GOR holder
standard document. I am kind of an optimist. I should know better.
cannot establish the share of production from the wellbore that
My more recent experience is that oil companies are increas-
the GOR pertains to, the GOR holder cannot be equitably compen-
ingly basing production allocation on unilateral letters sent to
sated. This will at least lead to a lawsuit and perhaps regulatory
lessor’s indicating that the their lease is subject to production
non‑compliance measures.
allocation and they will get a percentage share of production from
In my practise I run across very few new wide area unit
agreements. It seems a shame not to take advantage of unitiza-
the horizontal well. Full stop. Many letter’s even use the word
“pooling”. Yuck. See above.
tion in any situation possible. This is especially the case where
There a basis under the CAPL form of freehold lease to assert
companies are undertaking enhanced recovery projects (such as
a lessee’s right to unilaterally unitize the lands and allocate
complex water floods or CO2 projects) on a pool wide basis on
unit production to the lessors. This may be ok, but I am not
older well defined pools. In such situation a unit will allow for
totally convinced that a series of unilateral letters to lessor’s is
common ownership and tenure certainty in undertaking costly
a defined “Unit Agreement” under the CAPLs. The risk is entirely
and long term projects.
on the lessee (oil company) that if there is, in fact, not a true Unit
The good news is that the PAUA seems to have become an
Agreement. If not, you have not properly unitized and you may not
industry standard document that horizontal well operators use on
be able to prove to a Court that you have operations on the lands
a day to day basis. Hopefully we will come to see increased use of
sufficient to continue the lease. Not worried, here is a tip for you,
the PAUA in vertical well commingling situations.
oil companies never win against lessors in court.
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THE NEGOTI ATO R / APRIL 201 2
✦
✦
✦
✦
✦
✦
✦
✦
✦
✦
✦
✦
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Further, such letters do not typically work for nonCAPL leases
which are much less likely to have a unilateral right to unitize.
Get Smart
The problem is that once a sloppy practise starts, it is very hard to stop
the bus. “We only send letters out, we never do PAUAs”. I have heard
that many, many times since my very optimistic statement above.
The CAPL Education Committee is pleased to present
the following courses:
Return of the Unit
The other change I have noticed over the last four years, is a tiny
seed of hope that the true unit agreement is starting to finally get
Preparing For a Surface Rights Board Hearing (PSL®)
April 3, 2012
8:30 a.m. to 4:30 p.m.
some love.
The emergence of EOR focussed companies working on old
This seminar is suitable for individuals who require a better under-
plays in the checkerboard, or other freehold areas, had allowed us
standing of the Surface Rights Board hearing process from start to
to push for, and finally get, corporate lessors and our goofy client
finish. This course will begin by covering the types of surface rights
lessees to understand the fundamental importance of unitizing a
board hearings, including compensation, rent review, damage claims
pool subject to EOR.
and back rent. The next section will focus on the structure of the
The almost universal inclusion of spacing unit reversion, quarter
hearing and deal with procedural elements, evidence taken under
section maximum leases and the lack of injection as a continuation
oath, direct and cross examination of witnesses and questions from
mechanism under corporate forms of lease means that a unit agree-
the board. From there, the course will focus on evidentiary issues
ment overlaying the pool subject to your enhanced recovery scheme
like the burden of proof and discuss privacy issues before closing by
is an absolutely essential requirement prior to commencing opera-
discussing the orders ultimately issued by the board.
tions. Not doing so is simply negligent in my mind.
Sure you say, another boogyman story by Negenman. Give it a
rest dude. Most of the time, I can tell clients, yeah big risk but low
Surface A&D (PSL®)
April 10, 2012
8:30 a.m. to 12:00 p.m.
THE NEGOTIATOR / APRIL 2 012
probability, your call. The EOR without unitization is not one of
18
those times. The recently filed Statement of Claim in Crew Energy
This half day seminar is designed for surface land person-
Inc. v. Cenovus Energy Inc. (Alberta Court of Queen’s Bench Action
nel requiring an introduction to surface rights management
No. 110107197) is a powerful and tragic tale of this very predict-
in the acquisition and divestiture of operated properties.
able issue playing out in Court. Huge swath of land and huge
The course is also valuable to supervisors and managers in the area.
effect on the operations and potential revenue of Crew. This is a
Topics include a sample checklist, lease and agreement convey-
public document. Get yourself a copy if you want a primer in the
ancing, well licenses and LLR review, transfers, easements and
very bad spot you can end up in if you don’t do your land and
legal homework. m
rights-of-way, transfer of caveats, road use agreements, notice
Paul Negenman
The course is presented from an Alberta perspective, but much of
Partner, EnerLaw LLP
the material and process are relevant to other jurisdictions.
to landowners and occupants, electronic processes in Crown
dispositions and license transfers, and environmental approvals.
Aboriginal Land Issues
April 12, 2012
*IRWA Course
8:00 a.m. to 5:00 p.m.
• Strategies for dealing with aggressive and more difficult negotiators and tools for addressing that behaviour. This workshop
also provides a number of interactive industry related nego-
International Right of Way Association Chapter 62 Edmonton is
tiation scenarios during the day that allow the participants an
hosting a one day seminar entitled “Aboriginal Land Issues” on
opportunity to apply the skills learned during the early stages
April 12, 2012 commencing at 8:00 a.m. until 5:00 p.m. at Reed’s
of the workshop.
Bazarre, Fort Edmonton Park, 105 Street. The seminar is being
facilitated by Lorne Ternes, LLB who specializes in Aboriginal,
Intergovernmental and Trade Law focusing on collaborative and
Royalty Calculations
April 19, 2012
1:00 p.m. to 4:30 p.m.
positive resolution of issues for Aboriginal, Government and
Resource Development interests. The cost to attend is $525.00
This seminar is intended for senior land, accounting, production
+ GST for an IRWA member and $625.00 + GST for a non IRWA
and joint venture personnel who require a thorough understand-
member. 7.50 hours of IRWA recertification credit will be given
ing of the complexities and implication of royalty calculations.
to IRWA members upon completion. Course materials, lunch
This half-day seminar will focus on a case study approach to
and free parking are provided. Multi discipline professionals
examining the complexities and implications of various actual
engaged in the acquisition, development, management and
royalty clauses and calculations.
transfer of rights relating to Aboriginal lands in Canada would
benefit greatly from attending this seminar. For more information and a registration form please contact Darcey Lessard at
Indian Oil & Gas Canada
April 24, 2012
1:00 p.m. to 3:00 p.m.
[email protected].
This session is useful for surface and subsurface landmen
Negotiation Skills for Surface Land Agents (PSL®)
April 17, 2012
8:30 a.m. to 4:30 p.m.
and administrators interacting with aboriginal governments,
businesses and communities on reserve and helps in building a greater understanding of Indian Oil and Gas Canada and
This seminar is for surface landmen looking to improve nego-
its role in helping First Nations develop and manage oil and
tiation skills to meet negotiation objectives. (NOTE: There is
gas on reserve. The session provides an overview of IOGC, the
a 15-20% overlap in material between Negotiation Skills for
Indian Oil and Gas Act and regulations, IOGC’s role in assisting
Surface Land Agents and Constructive Conflict Management.)
First Nation develop their oil and gas, the two key approaches
This seminar will examine the common struggle surface
to negotiations and a review of IOGC’s current sub surface and
landman often experience between meeting their substantive
surface disposition processes, applicable federal legislation and
needs in the negotiation while maintaining or improving the
regulator requirements.
working relationship.
1990 and 2007 CAPL Operating Procedures
• A review of the impact of “mindset” and “assumptions” have
April 25 & 26, 2012
8:30 a.m. to 4:30 p.m.
on the way in which we interact with the other party during a
negotiation.
This is a two-day seminar intended for land personnel who are
involved with agreements on a day-to-day basis and therefore
• A review of traditional “Positional Bargaining” and a comparison
with the more effective “Interest Based Negotiation”.
require a thorough understanding of the 1990 and 2007 CAPL
Operating Procedures. The 1990 CAPL Operating Procedure is
the industry benchmark document for operations conducted on
• Introduction and explanation of a template format which can
jointly held lands. It sets forth procedures for dealing with AFEs,
be applied to prepare for the negotiation provide structure
Operators’ rights and duties, indemnification and liability, insur-
during the actual negotiation and provide an evaluation tool for
ance, marketing, independent operations, facilities construction,
the session debriefing.
rights of first refusal and many more items of concern that arise
between joint interest parties. In this seminar, the 1990 and
2007 CAPL Operating Procedures will be discussed in detail with
tiation, which include: Alternatives, Interests and Concerns,
particular emphasis on its day-to-day application. Comparisons
Options, Benchmarks, Standards and Commitment.
will be made to previous CAPL Operating Procedures in certain
key areas.
19
THE NEGOTI ATO R / APRIL 201 2
• An examination of the elements contained within the nego-
Professional Ethics: Theory and Application
May 1, 2012
8:30 a.m. to 4:30 p.m.
will discuss drilling and other operations such as logging, drill
stem testing, coring and cementing. The completion section
will include a discussion of the service rig, perforating, stimula-
This seminar is suitable for all interested land personnel and is
tion and downhole equipment. Production operations will cover
required for prospective CAPL members as well as CAPL’s profes-
production facilities and equipment, methods of artificial lift and
sional certification program. This seminar is intended to increase
enhanced recovery techniques.
the understanding of ethics and the dimensions to ethical behavior by stimulating the ethical thought process, giving a basic
introduction to the nuances of ethics, introducing a number
1999 CAPL Freehold Mineral Lease
May 8, 2012
8:30 a.m. to 12:00 p.m.
of methods used in ethical decision making, and providing a
forum for discussions with respect to land related ethical issues.
This seminar will be of value to anyone working with Freehold
Case studies will encourage class discussion and give each partici-
Mineral Leases. A discussion of the philosophy adopted by the
pant insight into the morality vs legality question.
Freehold Mineral Lease Committee will be followed by a review
and discussion of the changes made to the 1999 Freehold Lease
Ethical Use of Seismic Data – Proprietary and Licensed
May 2, 2012
and it’s impact on the industry.
8:30 a.m. to 12:00 p.m.
1997 CAPL Farmout and Royalty Procedure
This seminar is intended for land negotiators and other industry
May 9 & 10
8:30 a.m. to 4:30 p.m.
personnel who are looking for a more in depth understanding of
their rights and responsibilities with respect to seismic owner-
This course is intended for any land personnel requiring a better
ship, and proper procedures around disclosure, trades, sales and
understanding of the 1997 CAPL Farmout and Royalty Procedure
transfers of seismic data. This half day seminar will focus on the
and the associated 1997 CAPL Overriding Royalty Procedure.
ethical and legal use of proprietary and licensed Seismic data
Given the commonality on the operative provisions of the two
as well as provides students with an overview of the creation
documents, the review of the Overriding Royalty Procedure
of seismic data, and a review of issues in seismic life cycle, data
focuses on the major differences between the handling of
management/maximizing value, as well as the APEGGA and
ORRs relative to that in the Farmout and Royalty Procedure.
CSEG standard practices. The legal basis for protection of Seismic
The instructor will also refer to contemplated changes in the
data and compilations of Seismic data and their licensing will
pending update to the 1997 documents. Jim MacLean will take
also be reviewed.
participants through the document providing explanation for
certain clauses and issues that may arise out of using the docu-
Drilling and Production Operations
May 3 & 17, 2012
8:30 a.m. to 4:30 p.m.
This seminar is designed for persons with little or no experience
in drilling and production technology. This seminar will give a
ment. The second day sees the participants working through case
studies with a “hands-on” approach in small groups.
Understanding Well Logs
May 15, 2012
8:30 a.m. to 4:30 p.m.
THE NEGOTIATOR / APRIL 2 012
non-technical overview of oilfield operations in Western Canada.
The major topics of drilling, well completion, and production
This one day seminar is designed for land, IT and non-technical
operations will be covered. In the drilling section, the instructor
support staff who wish to have a qualitative understanding of well
2010 7th Avenue Regina, Saskatchewan S4R 1C2 | Office: 306.775.3415, ext. 100 | Cell: 306.536.6256 | Fax: 306.585.7307 | [email protected]
20
logs. Math content is minimal and no prior well log experience
post-closing and tracking documents will be reviewed. A compre-
is necessary. Candidates will learn to recognize obvious zones of
hensive reference binder containing examples of these items will
interest and understand the importance of basic log curves.
be provided.
Acquisitions And Divestments: The Paper Chase
Business Strategies for the Oil and Gas Industry
May 22, 2012
8:30 a.m. to 4:30 p.m.
May 23 & 24, 2012
8:30 a.m. to 4:30 p.m.
This seminar is intended for those land personnel who are
The course will prepare participants to contribute effectively
involved in the corporate property rationalization process and
to the decision-making process for investment opportuni-
who have at least an intermediate knowledge of day to day
ties in oil and gas exploration, development and acquisitions.
land practices. It will be of most benefit to those individuals
Economic evaluation and strategy formulation techniques are
responsible for the preparation necessary to evaluate and close
presented ranging from the project-specific to the corporate-wide
an asset acquisition, divestment or trade. Persons responsible
perspective. Using case studies, the instructor will discuss the
for managing or supervising this area of expertise will also find
following topics: Probability and Risk Analysis, Property Valuation
this course valuable. This course is not intended for junior land
for Acquisition and Drilling, Land Sale Economics and Strategy,
personnel. Procedures, processes and tips necessary to properly
Portfolio Analysis and Corporate Strategy. Participants should
time, evaluate, create and disseminate the flow of paper, from
have taken Economic Considerations for Land Deals or a similar
the beginning to the end of an acquisition, divestment or trade
course dealing with economic evaluations, including discounted
will be covered. This will include scheduling, due diligence, closing and post-closing responsibilities. Documentation such as
cash flow and NPV analysis. m
Land Schedules to the Purchase and Sale Agreement and Right of
First Refusal Notices, as well as numerous specific conveyances,
Saskatchewan Titles Update: New
Limits on Mineral Owners’ Shares
Information
Services
Corporation
of
Saskatchewan (ISC) is pleased to announce
that as of March 5, they will no longer allow a mineral
The introduction of this rule will be applied on a go-forward basis
title to be split beyond a 1/20th tenant in common share of the
owners will no longer be able to further split their interest after
title. ISC is the provincial Crown corporation responsible for the
March 5. Any title that currently falls outside of the limitations can
administration of land titles, vital statistics, survey, personal
either be transferred one to one or consolidated with other shares
property and corporate registries, as well as related geographic
of the same parcel.
information.
only (i.e. it is not retroactive). Existing fractional ownership shares
smaller than 1/20th in size will remain unchanged, but these title
ISC’s title processing system will display an error message at
The reason ISC is taking this step is to help give oil and gas
the point of validation if the fractional share entered does not
companies, as well as those in the mining sector, an added incen-
comply with the new limitations and submitting parties will then
tive to continue developing Saskatchewan’s abundant mineral
be required to make the correction and resubmit the packet.
resources.
The process to limit fractional ownership shares has been several
years in the making. ISC consulted with stakeholders in the resource
By limiting fractional ownership shares:
sector, legal community and partners in government to determine
• The resource sector will incur fewer costs when dealing with
how best to limit fractional ownership of minerals in Saskatchewan
• The number of orphaned mineral titles will be reduced; to ensure the province remains as competitive as possible with
neighbouring jurisdictions in mineral exploration and development.
• The economic development of Saskatchewan will be enhanced; and Alberta and Manitoba both have these types of restrictions
• Mineral title owners may see more business interest in their
on mineral ownership; the restriction in Alberta is set at 1/20th
mineral holdings if they are less fragmented.
of a share, while the restriction in Manitoba is set at 1/16th of
a share. m
21
THE NEGOTI ATO R / APRIL 201 2
mineral owners;
great coverage.
great service.
Cavalier Land is a full-service land company that has
dedicated over 18 years to exceeding the needs of our
clients across Western Canada. Our services include:
Fort St. John
Grande Prairie
Edmonton
Lloydminster
Red Deer Camrose
Regina
Kelowna Calgary
Vancouver
• Surface acquisition
• Freehold mineral
leasing
• Environmental services
• Telecommunication
acquisition
• Crown land sale
representation.
Contact us for all your land service needs
Main Office: 587 952 8282
[email protected]
www.cavalierland.ca
THE NEGOTI ATO R / APRIL 201 2
23
Roster Updates
New Members
The following members were approved by a Motion
on March 6, 2012:
Applicant
Current Employer
Sponsors
Active
Kyle Goulet
HMA Land ServicesColt Henderson, PSL
Keith Turner
Meghan Jasper
Landon Whitlock, PSL
TAQA NORTH Ltd.Dianne Sawatzky, P.Land
Tony Smith
Kari Webb
Bernadine
Guide Exploration Ltd. John Charuk
(Bernie) KanwalSheldon Funk
Heritage Surface
Crew Energy Inc.Chris Brown
Yvan Chretien
Mark Miller
Derek Stone
Integrity Land Inc.
John Dmetruik
Colt Henderson, PSL
Daniel Tchir, PSL
C. Troy Wylie
University of CalgaryRobert Schulz
Tarek Mohajer
University of CalgaryRobert Schulz
Jeffrey Palmer
University of CalgaryRobert Schulz
Vanessa Pankratz
University of CalgaryRobert Schulz
Doug Perry University of CalgaryRobert Schulz
Trevor Rose
University of CalgaryRobert Schulz
m
On the Move
Wallis Tomie
Aaron McNeill
Jim Krumm
Solutions Ltd.Brad Rudy
Andrew Sikomas
University of CalgaryRobert Schulz
Alexandre Ste-Marie University of CalgaryRobert Schulz
Colin McKinnon, P.Land
Kevin Krall
Caitlin Matchett
Pioneer ProfessionalHoward Colborne, P.Land
Jonas Albeck
Quicksilver Resources Canada Inc.
to Albeck Consulting. S.P.
Mary Lynne Bryan
Guide Exploration Ltd.
to CanEra Energy Corp.
Troy Cameron
ARC Resources Ltd.
to Independent
Services GroupGreg Filipchuk
Ron Newborn, P.Land
Student
David Bell
University of CalgaryRobert Schulz
Chris MacDonald
University of CalgaryRobert Schulz
Caroline Mack
University of CalgaryRobert Schulz
Krysten Marek
University of CalgaryRobert Schulz
Peter Carwardine
OMERS Energy Services LP
to OMERS Energy Inc.
Ryan Dallyn
Independent
to Lexterra Land Ltd.
Toni DeCosta
AltaGas Ltd.
to Independent
Mark Mason
University of CalgaryRobert Schulz
StandardLand_ADV_Negotiator_Layout 1 3/7/12 11:29 AM Page 1
Standard Land Company Inc.
We make your job easier.
THE NEGOTIATOR / APRIL 2 012
The Four Cornerstones of Commitment
• Service • Dependability • Efficiency • Flexibility
FULL SERVICE PROVIDER
Head Office Calgary 403-265-1116
1300, 734 - 7th Ave SW, Calgary, AB T2P 3P8
[email protected]
www.standardland.com
24
Vancouver 1-877-687-1102 Regina 1-866-441-2039 Toronto 1-877-598-1116
Dan Dugas
Pradera Resources Inc.
Marianne Lewis
Independent
to Independent
to Birchill Exploration Corp.
Kerrie Etson
Independent
Jim Morrice, P.Land
Evolve Exploration Ltd.
to ConocoPhillips Canada
to Independent
Edward Grandan, P.Land
Pengrowth Energy Corporation
Eric Myketyn, P.Land
Apache Canada Ltd.
to Independent
to Shell Canada Energy
Lynn Gregory, P.Land
Independent
Peter Parkinson
Artek Exploration Ltd.
to Velvet Energy Ltd.
to Independent
Dave Horn
Compton Petroleum Corporation
Larry Parks
Archean Energy Ltd.
to Molopo Energy Canada Ltd.
to Grizzly Resources Ltd.
Kelly Irish
Shell Canada Energy
David Richardson
Lario Oil & Gas Company
to Direct Energy Marketing Limited
to Independent
Tracy Kurtz
Lario Oil & Gas Company
Miryah Scott
Standard Land Company Inc.
to Central Global Resources ULC
to Independent
John Lanaras
Progress Energy Resources Corp.
Heather Stables
NEP Canada ULC
to Lexterra Land Ltd.
Fofonoff, P.Land
to Independent
Debbie Zushman
Molopo Energy Canada Ltd.
to ARC Resources Ltd.
m
THE NEGOTI ATO R / APRIL 201 2
25
WESTERN CANADA LAND SALE and DRILLING RIG REVIEW
Land Sale Data
Manitoba
British Columbia
Saskatchewan
Alberta
$6,500.00
$6,000.00
$5,500.00
$5,000.00
February 2012
$4,500.00
Total Ha Sold
Average
$ / Ha
BC
20,578
$1,177
AB - Foothills
6,784
$289
AB - Plains
11,136
$369
103,760
$740
SK
53,976
$532
MB
8,557
$937
$4,000.00
AREA
$3,500.00
$3,000.00
$2,500.00
$2,000.00
$1,500.00
AB - Northern
$1,000.00
$500.00
$0.00
NOTE: Numbers are rounded
Drilling Report for Last 5 Years
Drilling Rig Utilization Rate
90%
900
80%
800
70%
700
60%
600
50%
500
Drilling
Down
400
Total
300
Utilization Rate
40%
30%
20%
200
10%
100
0%
Feb 2007
0
Feb 2007
Feb 2008
Feb 2009
Feb 2010
Feb 2011
Feb 2008
Feb 2009
Feb 2010
Feb 2011
Feb 2012
Feb 2012
THE EXPERTS IN LAND ACQUISITION
AND MANAGEMENT SERVICES.
ALSO SERVING: British Columbia, Manitoba, Ontario, Eastern Canada, and throughout Midwest US.
LandSolutions LP #200, 601-10 Ave SW Calgary, AB T2R 0B2 1-866-834-0008
The Social Calendar
Event
DATE
TIME
LOCATION
COST
(INCLUDING GST)
CONTACT NAME
CONTACT PHONE
CONTACT EMAIL
REGISTRATION
DEADLINE
2012 CAPL
Spring Ball
Monte Carlo Gala
28-Apr-12
5:00 PM
Hotel Arts
Members: $100.00
Non-Members: $100.00
Mandy Cookson
403-515-5733
[email protected]
NA
CAPL April
Meeting
Elections
25-Apr-12
5:00 PM
The Westin Calgary
Members: No Charge
Non-Members: $105.00
Karin Steers
403-237-6635
[email protected]
19-Apr-12
CAPL 9-Ball Pool
Tournament
3-May-12
4:45 PM
Garage
Eau Claire Market
Members: $40.00
Non-Members: $40.00
R.K. Howard
403-999-2136
[email protected]
20-Apr-12
CAPL May
Meeting
Merit Awards
16-May-12
5:00 PM
The Westin Calgary
Members: No Charge
Non-Members: $105.00
Irene Krickhan
403-237-6635
[email protected]
10-May-12
2012 Junior
Landman Charity
Golf Classic
14-Jun-12
1:00 PM
Valley Ridge Golf Club
Industry: $180
Students: $125
Joshua Wylie
403-862-8444
CAPL DUST UP
2012
28-Jun-12
5:00 PM
The West
$30
Robb Craige
403-862-8444
[email protected]
www.jrlandmanclassic.ca
[email protected]
30-Apr-12
10-May-12
* Please note: Registration forms for social events can be downloaded from the CAPL website: www.landman.ca.
CAPL General Meetings: http://landman.ca/events&meetings/general_meetings.php
CAPL Social Functions: http://landman.ca/events&meetings/social_events.php
THE NEGOTI ATO R / APRIL 201 2
27
CAPL Calendar
of Events
April
3
3
4
6
8
9
10
11-12
17
18
19
24
25
25
25-26
28
May
1
1
2
2
3
3
6
8
9
9-10
15
16
17
21
22
23
23-24
28
29
30
31
Tuesday
Tuesday
Wednesday
Friday
Sunday
Monday
Tuesday
Wed-Thur
Tuesday
Wednesday
Thursday
Tuesday
Wednesday
Wednesday
Wed-Thur
Saturday
PSL®: Preparing for a Surface Rights Board Hearing
Board Meeting
Alberta Land Sale
Good Friday
Easter Sunday
Saskatchewan Land Sale
Surface A&D (PSL®)
P&NG Information Exchange
PSL®: Negotiating Skills for Surface Land Agents
Alberta Land Sale
Royalty Calculations (PM)
Indian Oil & Gas Canada (half-day AM)
British Columbia Land Sale
General Meeting: Elections
1990 and 2007 CAPL Operating Procedures
Spring Ball m
April Meeting
Wednesday, April 25, 2012
CAPL General Meeting and Elections
Guest Speaker: Don Thompson, Executive Advisor
Sustainability and Oil Sands Outreach
Canadian Oil Sands Limited.
Cocktails: 5:00 p.m.
Dinner:
6:00 p.m.
Tuesday
Location:
The Westin Calgary
Tuesday
320 – 4 Avenue S.W.
Cost: Guests – $105.00 (includes gst)
Professional Ethics: Theory & Application
Board Meeting
Wednesday
Seismic Data: Legal Aspects of Acquisition,
Licencing and Use
Wednesday Alberta Land Sale
Thursday
Drilling & Production Operations
(1 of 2 Day Course)
Thursday 9-Ball Pool Tournament
Sunday
Mother’s Day
Tuesday
1999 CAPL Freehold Mineral Lease
Wednesday Manitoba Land Sale
Wed-Thur 1997 CAPL Farmout & Royalty Procedure
Tuesday
Understanding Well Logs
Wednesday Alberta Land Sale
Thursday
Drilling & Production Operations
(2 of 2 Day Course)
Monday
Victoria Day
Tuesday
Acquisitions and Divestments: The Paper Chase
Wednesday British Columbia Land Sale
Wed-Thur Business Strategies for the Oil and Gas Industry
Monday
Negotiating: The Essential Skill for Landmen
Tuesday
Advanced Surface Rights
Wednesday Alberta Land Sale
Thursday ROFR Issues: An Interpretive Approach m
Respond to [email protected] by noon on April 19, 2012. m
May Meeting
Wednesday, May 16, 2012
CAPL General Meeting and Merit Awards
Cocktails: 5:00 p.m.
Dinner:
6:00 p.m.
Location:
The Westin Calgary
320 – 4 Avenue S.W.
Cost: Guests – $105.00 (includes gst)
Respond to [email protected] by noon on May 10, 2012. m
THE NEGOTIATOR / APRIL 2 012
Leading the way as your Trusted Advisors since 1978
Other services include:
Environmental, Safety and Vegetation Management
WWW.PIONEER-GROUP.CA
• Surface Land Acquisition
• Mineral Rights Leasing
• Provincial Land Sales
• Emergency Response
Planning
• Public Consultation
& Notification
• Land Administration
• Project Management
CALGARY EDMONTON LLOYDMINSTER FORT ST. JOHN BONNYVILLE REGINA GRANDE PRAIRIE MEDICINE HAT SYLVAN LAKE
28
Follow the Leader.
The global industry leader in critical information and insight, IHS continues to
invest in the progress of the Canadian energy market so you can get from
discovery to drilling in record time. By updating, improving and streamlining
our Canadian products and services, we have delivered workflow integration
between IHS PETRA® and IHS AccuMap®; created solutions for better access
to global resources, from well log databases to subject matter experts; and
continued to provide transparency and insight to Canadian energy
businesses that need actionable information.
See how IHS is investing in Canada at followihs.com.
Good people don’t just make a difference.
They are the difference.
LEFT TO RIGHT: Jeff Brewer, Jeff Burke, Gregg Scott, Greg Meidinger
When you choose Scott Land & Lease,
you’re choosing the industry’s most
established and experienced team. We
combine full-service offices in key locations
across Western Canada with the most
talented land service professionals in the
business to deliver the local knowledge
CALGARY
•
EDMONTON
•
GRANDE PRAIRIE
and personalized service you need to
complete your important projects.
Call us or visit our new website to learn
more about our team, our philosophy and
most importantly, our results.
www.scottland.ca
•
LLOYDMINSTER
•
REGINA
•
FORT ST. JOHN
HEAD OFFICE:
403.261.1000
CALGARY (HEAD OFFICE) 900, 202 – 6TH AVENUE SW CALGARY, AB T2P 2R9 • PHONE: 1.800.661.1618
Good people don’