capla members

Volume 8.4
December, 2003
CAPLA LUNCH MEETING
Will be held:
January 19, 2004 at
Sheraton Eau Claire
11:30 a.m. - 1:00 p.m.
Guest Speaker: Elizabeth Denhan
Topic: It’s Here! The New Privacy Act - Learn How it Affects You
See Registration Form on Page 4
MESSAGE FROM THE PRESIDENT
In October, I attended the National Association of Lease
and Title Analysts (“NALTA”) Conference in Albuquerque
in hopes of establishing a relationship between our two
associations. I was given time to meet with NALTA’s
Board of Directors and discuss initiatives our
organizations could work together on.
The NALTA Board was very interested in a few of the
initiatives brought forward and wanted CAPLA’s input on
issues dealing with education and recognition. I have
forwarded links to the educational institutes that provide
land administration training (SAIT, Mount Royal, U of C
& Olds) to NALTA and have pointed out the links to the
different governments located on our Website. NALTA
has also requested job descriptions. If any of you are
willing to share your corporate job descriptions, please
let me know. I have told NALTA that our jobs vary
significantly depending on the corporation we are
working for and I would solicit job descriptions from
those willing to provide them.
Through my discussions with NALTA’s President, Melva
Thornton, it became quite clear that we are truly blessed
with the benefits CAPLA and the Canadian Land
Administration landscape are able to provide for us. We
have four educational institutes that provide training in
land administration at our doorsteps. We have the
CAPLA Education Committee working on a 5-year plan to
help make our education courses more accessible and
recognized. We have numerous volunteers within our
organization working together with our various
governments so that both industry and government have
a clear understanding of each other’s issues and
concerns. We are an organization with the majority of
our members living and working in one central location.
I was given the opportunity to speak at one of the
Conference luncheons, where I passed on greetings from
CAPLA and explained why I was there. Within minutes a
Lease Analyst approached me looking for help from a
Canadian Expert. I have set her up with an “unofficial”
mentor in order to address some of her concerns.
I believe this was a fruitful trip, as not only did we make
contact with NALTA, but also the President of the
National Association of Division Order Analysts
(“NADOA”) was present and seated next to me at lunch.
I was able to make contact with NADOA and discuss
some of the same issues raised with NALTA. Both of
these Associations seem eager to work with CAPLA on
joint initiatives and would like to keep a relationship
going between the associations.
Candace Bakay
President, CAPLA
HIGHLIGHTS
CAPLA Elections . . . . . . . . . . . . . . . . . . . . . . . . . 5-14
CAPLA Conference 2004. . . . . . . . . . . . . . . . . . . . . 23
Sharing The Apache Perspective . . . . . . . . . . . . . . 15
Petroleum Resource Centre of Ontario . . . . . . . . . 24
Freehold Mineral Taxation . . . . . . . . . . . . . . . . . . . 17
Coalbed Methane Development . . . . . . . . . . . . . . 26
Well Licence Applications – Guide 56 . . . . . . . . . . 20
CAPLA 10th Anniversary GALA. . . . . . . . . . . . . . . . 42
TABLE OF CONTENTS
440, 10816 MacLeod Tr. S, Suite 359, Calgary, AB T2J 5N8
Ph: (403) 571-0640 Fax: (403) 571-0644
Website: www.caplacanada.org
Office Email: [email protected]
NEXUS Email: [email protected]
Lunch Meeting Notice. . . . . . . . . . . . . . . . . . . 3
CAPLA Elections. . . . . . . . . . . . . . . . . . . . . 5-14
Sharing The Apache Perspective . . . . . . . . . . 15
Board of Directors
President
Freehold Mineral Taxation . . . . . . . . . . . . . . . 17
Well Licence Applications – Guide 56 . . . . . 20
CAPLA Conference 2004. . . . . . . . . . . . . . . . 23
Petroleum Resources Centre of Ontario . . . . 24
Candace Bakay
Vice-President
Vacant
Secretary
Barbara MacBeath
Treasurer
Marianne McKay
Certification
Kevin MacFarlane
Communication
Nancy Howes-Olmstead
Conference
Val Anderson
Education
Legal and Regulatory Aspects of
Coalbed Methane Development . . . . . . . . . . 26
Gale Breen
Events
Joanna Pelletier
Government Relations
Kevin L. Egan
Industry Relations
CAPLA Breakfast Meeting . . . . . . . . . . . . . . . 32
CAPLA Volunteer Recruitment . . . . . . . . . . . 33
Shawn McReavey
Member Services
Kelly Erickson
Public Relations & Promotion
Verna Moodie
Technology
Kathy Ward
Public Relations Committee Update . . . . . . . 34
I See You Looking – Mentorship . . . . . . . . . . 35
CAPLA NEXUS
New Surface Web Links . . . . . . . . . . . . . . . . 36
is a publication of CAPLA
Produced by the Communication Committee
NEXUS Email: [email protected]
Olds College Land Administration
Certificate & Land Agent Diploma . . . . . . . . 37
CAPLA Board Highlights . . . . . . . . . . . . . . . . 38
Corporate Sponsorship Opportunities. . . . . . 38
Member Info Changes/New Members . . . . . 39
Upcoming CAPL Courses . . . . . . . . . . . . . . . 40
Fourth Annual Joint Networking Event . . . . . 41
Director:
Nancy Howes-Olmstead
Editor:
Cam Lockerby
Assistant. Editor:
Wendy Walker
Print Coordinator:
Linda Mah
Head Proofreader:
Holly Evans
Administrative Assistants:
Suzanne Akins
Holly Evans
Content & Research Team:
Norma Anderson
Pearl Ao
Debbie Degenstein
Julia Haynes
Gloria Hoyos
Leanne Quantz
Maarnie Shakespeare
Nancy Wilkey
CAPLA’s 10th Anniversary GALA. . . . . . . . . . 42
Upcoming CAPLA Courses . . . . . . . . . . . . . . 44
CAPLA Events Calendar . . . . . . . . . . . . . . . . .48
PUBLICATION SCHEDULE
MEETING DATES
January 19
March 16
September 28
Effective November, 2003
CAPLA’s Membership was 1,798
Deadline for next
CAPLA NEXUS:
January 8, 2004
Page 2
ARTICLE SUBMISSION DEADLINE
January 8
March 11
June 10
MAILOUT
February 10
April 20
August 24
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.
Volume 8.4
-
December, 2003
NEXUS
Lunch
Meeting
DATE:
MONDAY, JANUARY 19, 2004
REGISTRATION
DEADLINE:
Wednesday, January 14, 2004
LOCATION:
Sheraton Eau Claire
TIME:
11:30 am to 1:00 pm
EVENT COST:
$31.00 for Members
$36.00 for Non-Members
REGISTRATION:
Registration is on pre-paid basis only using the meeting registration form. Luncheon
meetings do not have assigned seating; provide your name at the door to gain entrance
to the event. Register early to avoid disappointment.
TOPIC:
It’s Here! The New Privacy Act - Learn How it Affects You
The Personal Information Protection and Electronics Documents Act (PIPEDA) will
impact most private sector organizations by 2004. The oil and gas industry will have
new responsibilities with respect to collecting, using and sharing personal information.
Personal information includes information about employees, clients,
landowners/occupants, etc.
Privacy relates to the ethics of business practices. Elizabeth will focus on the rules for
Land Administration under the Personal Information Protection Act and on how to get
ready for compliance.
SPEAKER:
NEXUS
Elizabeth Denham, B.A., M.A.S. – has 6 years direct experience in the management of
privacy and data security. Prior to establishing Denham & Associates, Elizabeth was
Director, Privacy and Legal Services for the Calgary Health Region. She started her
career with the Region in 1997 as the organization’s first Privacy Officer. Elizabeth is
an active member of the privacy community and is a member of the Research Ethics
Board of the University of Calgary. She has recently presented papers on privacy issues
and solutions at Canadian conferences such as Canadian Institute, Health Information
Privacy (Toronto), Institute of Public Administration of Canada (Edmonton), and FOIP
2001 (Edmonton). Since September 2003 she has been working as the private sector
lead for the Alberta Information and Privacy Commissioner. Her role is to lead the
private sector Privacy Compliance Program under the Personal Information Protection
Act.
Volume 8.4
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December, 2003
Page 3
CAPLA LUNCHEON REGISTRATION
MONDAY, JANUARY 19, 2004
Registration Deadline:
Cancellation Deadline:
Location:
Time:
Fee:
Speaker:
Topic:
Wednesday, January 14, 2004
Noon Friday, January 16, 2004 by fax to CAPLA @ 571-0644
Sheraton Eau Claire
11:30 am to 1:00 pm
Member $31.00, Non-Member $36.00 (GST Included)
Elizabeth Denham
It’s Here! The New Privacy Act - Learn How it Affects You
1. Registration is on a pre-paid basis only. Faxed forms will be accepted only for credit card submissions.
Register early to avoid disappointment.
2. Submit completed registration form (accompanied by payment), by the registration deadline, to CAPLA 440 10816 Macleod Trail S. Suite 359, Calgary AB T2J 5N8. Payment options are Cheque, VISA, MasterCard or
AMEX. Cheques made payable to CAPLA.
3. Provide your name at the door to gain entrance to the event.
Charge to my ❑ VISA ❑ MC ❑ AMEX Card Holder Name:
Card Number:
Expiry Date:
COMPANY NAME:
CONTACT NAME:
Signature:
(must be filled in)
PHONE NUMBER:
(must be filled in)
CAPLA MEMBER NAME
CAPLA MEMBER NAME
CAPLA MEMBER NAME
NON-MEMBER GUESTS ATTENDING
Guest Name
Guest Corporation
Member to be seated with
PLEASE REMEMBER TO WEAR YOUR CAPLA NAME BADGE
Page 4
Volume 8.4
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December, 2003
NEXUS
Special Meeting &
Election Notice
Date:
Location:
Time:
Business:
Monday, January 19, 2004
Sheraton Eau Claire Hotel
11:30 am to 1:00 pm
Revision of CAPLA By-law 13.9
Election of CAPLA Vice-President
Please be notified, that a portion of the regularly scheduled Luncheon Meeting on January 19, 2004 will be called
as a Special Meeting to vote on the proposed changes to the By-laws and the Election of Vice-President for CAPLA.
Procedure for acceptance of Vice-President and By-law Revision 13.9 is by open ballot. Voting method will be a
show of hands. A simple majority of the active members present is required for ratification of the Vice President
Nominee and By-law Revisions.
BY-LAW CHANGES
Be it resolved that:
Article XIII
Clause 13.9 to be changed from “Where a vacancy on the Board of Directors occurs pursuant to
Article XV, the remaining members of the Board of Directors may appoint a Active Member to serve
the remainder of the departing Director’s term.”
CHANGE TO
Clause 13.9 “Where a vacancy on the Board of Directors occurs pursuant to Article XV, the
remaining members of the Board of Directors may appoint an Active Member to serve the remainder
of the departing Officer or Director’s term.”
Name:
Running for:
Current Employer:
Years of Experience:
VICE-PRESIDENT NOMINATION BIOGRAPHY
Ty Hansen
Vice-President
Chevron Canada Resources
10 Years
Focus Upon Successful Attainment of Position:
Help with the ongoing development of the Association
Represent the organization to Industry and Government Agencies
Provide leadership support to all levels of the organization
Carry out the mandate of the organization to the best of my ability
Work with other associations on common issues that CAPLA faces
Contributions to Assist in Fulfilling Position:
Member of the Alberta E-Business group
Member of the B.C. Mineral Tenure Committee
Experience in A&D, Mineral and Contracts
Assisted in the development of course material for the Notice of Assignment for CAPLA
Registered mentor volunteer for the CAPLA Mentor Committee
NEXUS
Volume 8.4
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December, 2003
Page 5
Election
Notice
Pursuant to Articles VII and XI of the Bylaws of the Canadian Association of Petroleum Land Administration,
the following positions are available for nomination:
President
Treasurer
Education Director
Government Relations Director
Industry Relations Director
Technology Director
Nominations may be made in writing by the submission of a CAPLA Nomination Form, signed by two (2)
Members in good standing of the Association, and also signed by the nominee to signify acceptance. Such
nominations shall be delivered to the Secretary of CAPLA and Chairperson of the Nominating Committee by
Monday, January 2, 2004. Each Nomination Form needs to be accompanied by a completed CAPLA
Nomination Biography Form.
All Nominations will be published in the February NEXUS. Voting for these positions will take place at
CAPLA’s Annual General Meeting on March 16th, 2004.
If you require further information, please contact the CAPLA Office at 571-0640. Nomination Forms are
included in this Nexus.
Website and Email
Website: www.caplacanada.org
Email: [email protected]
[email protected]
Remember to visit CAPLA's website frequently for
upcoming courses not published in the Course Calendar
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Volume 8.4
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December, 2003
NEXUS
Nomination
Form
ALL NOMINATIONS CLOSE JANUARY 2, 2004
This form must be completed in its entirety, signed by two (2) active members of the Association, and also
signed by the nominee signifying acceptance. Each Nomination Form must be accompanied by a completed
CAPLA Nomination Biography Form. Both forms are to be submitted prior to nomination close to CAPLA by
mail or fax.
TO:
CAPLA Secretary
CAPLA Election Committee
440 - 10816 MacLeod Trail S. Suite 359, Calgary AB T2J 5N8
Phone: 571-0640, Fax: 571-0644
I, _____________________________________________, (please print) agree to let my name stand as a nominee
for the position of:
❑
❑
❑
❑
❑
❑
PRESIDENT
TREASURER
EDUCATION DIRECTOR
GOVERNMENT RELATIONS DIRECTOR
INDUSTRY RELATIONS DIRECTOR
TECHNOLOGY DIRECTOR
at the CAPLA elections to be held at the Annual General Meeting, March 16th, 2004 all in accordance with
Articles VII and XI of the Bylaws of the Canadian Association of Petroleum Land Administration.
Dated:
Nominee’s Signature
Active Member #1
Active Member #2
Name:
Name:
Signature:
Signature:
NEXUS
Volume 8.3
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October, 2003
Page 7
Nomination
Biography
Name:
Running for:
Current Employer:
Years of Experience:
Focus Upon Successful Attainment of Position:
Contributions to Assist in Fulfilling Position:
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December, 2003
NEXUS
OVERALL DUTIES OF THE EXECUTIVE
President, Past President, Treasurer, Vice President, Secretary
The Executive of CAPLA is responsible for the conduct and orders of business for required meetings of the Board
of Directors and the general membership as stated in the Bylaws. It is accountable for adequate and accurate
recording of all decisions and Bylaw changes, financial transactions and reporting, budgets and service contracts.
The Executive committee members are: Past President, President, Vice-President, Treasurer and Secretary
Experience
Previous experience as a Board Member is an asset. This position can be filled by a Member who is recognized
for having solid leadership skills, is interested in the growth and progression of the Association, is interested in
learning how not-for-profit organizations run, and would find the personal growth associated with sitting on a
Board of Directors rewarding.
General
• prepare agendas which include ‘Desired Outcomes’ for Board and general meetings
• record minutes
• record financial transactions and produce reports
• assist auditor with annual report
• facilitate annual budget process and prepare final budget for approval
• ensure financial responsibility
• document decisions and rationale
• document action items from Board meetings and Planning sessions
• document policies and procedures
• maintain archival records and record retention policy
• provide Board highlights to NEXUS and website
Budget Process
The budget process is reviewed each year during a Fall Planning Session for the Directors and Officers of the
Association with the following desired outcomes:
• understanding of the way unbudgeted expenses are handled throughout the year by being presented for
approval via a Project Initiation Document
• understanding of the processes in place throughout the year to review and monitor the budget
• general awareness and understanding of each Committee’s budget
• identification of budget changes that need to be made
Committee Budget
• compile
• review
• reporting
• quarterly reviews and reporting based on actuals provided by Treasurer
Yearly Summary Of Achievements
For presentation at the Spring Planning Session and publication in various CAPLA Media.
Volunteer Recognition
Through presentation at Dinner or Luncheon meetings, and publication in various CAPLA Media and a yearly
special event (dinner, lunch) for volunteer recognition.
Meeting Attendance
• monthly board meetings (approx. 1.5 hours over lunch). These meetings are held the last Tuesday of each
month except July
NEXUS
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December, 2003
Page 9
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meet with Advisory Council twice a year (approx. 1.5 hours over lunch)
planning sessions twice a year (full day – 6 hours)
monthly or bi-monthly committee meetings (1.5 hours)
dinner/luncheon meetings
required attendance at Annual General Meeting and Management Night
required attendance at regular dinner/luncheon meetings
Media Announcements (NEXUS, Website, Events, Conference)
• NEXUS – messages from members of Executive on Association initiatives or recognition of successful projects
• Website - updates, revisions/additions required to Executive WebPages
• Events – preparation of PowerPoint presentation for dinner/luncheon meetings, Management Night
• Conference – have a visible presence at the CAPLA booth; greet and thank all exhibitors; closing address to
attendees
Promotion
• field/address membership questions, comments and suggestions
• act as an ambassador for CAPLA by professionally representing the association at social events, post
secondary graduations, industry association events, Career Day events
Liaison
• work with other committees, as required
• work with other industry association committees, as required
• ensure adequate audit trail and processes exist for the daily conduct of CAPLA business by the office service
provider
DUTIES OF THE PRESIDENT
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presides over all Board meetings and most general meetings of the membership. In general, represents the
assembly, declaring its will and obeying its command in all matters and regards
represents CAPLA with other associations, government agencies, education institutions
attends graduations, conferences, round table sessions, award ceremonies
prepares agenda and presentations for general meetings
prepares agenda and chairs Annual General Meeting and any other special meetings of the membership
reviews and approves ‘Desired Outcomes’ for agendas
attend CAPLA events, as possible
submit messages/articles for NEXUS, Annual Report, website
propose candidates for Advisory Council to Board for approval
assists with preparation of planning session and Board meeting agendas
monitors implementation of yearly plan
serves as ex-officio member of all committees
works in partnership with Directors to ensure board resolutions are carried out
calls special meetings, if necessary and requested, according to Bylaws
appoints committee chairs and recommends members for committees
works with the Nominating Committee to recruit new board members
periodically consult with board members on their roles and help them assess their performance
Guidance Provided
Each previous Executive member, including Past President, is available to a new President as a Mentor. The Mentor
role of the previous President is to provide background information on history, policy, services and processes.
Templates for agendas, minutes, presentations, Strategic Planning sessions, team building sessions are available.
The CAPLA Office provides assistance with meeting arrangements, mass communication to membership and
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December, 2003
NEXUS
guidance on all the activities related to the daily business activities of CAPLA. All Board Members are willing to
support and guide newcomers to the Board of Directors and strive to function as a cohesive team. Each Executive
officer will receive from the previous officers, the historical information about their position.
DUTIES OF THE TREASURER
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represents CAPLA with other associations, government agencies, education institutions
monitors GIC’s
prepares Treasurer’s reports for the monthly Board meetings
calculation and submission of GST
attend CAPLA events, as possible
collects all information required by Auditor to prepare the Annual Report
propose candidates for Advisory Council to Board for approval
encourage fiscal responsibility by all Executive and Directors
maintains CAPLA’s computerized accounting system
assists all Directors with budget calculations, collecting all budget information and preparing final yearly
budgets
Guidance Provided
Each previous Executive member, is available to a new Treasurer as a Mentor. The Mentor role of the previous
Treasurer is to provide background information on history, policy, services and processes. The CAPLA Office
provides assistance with meeting arrangements, mass communication to membership and guidance on all the
activities related to the daily business activities of CAPLA. All Board Members are willing to support and guide
newcomers to the Board of Directors and strive to function as a cohesive team. Each Executive officer will receive
from the previous officers, the historical information about their position.
OVERALL DUTIES OF A DIRECTOR
Budget Process
The budget process is reviewed each year during a Fall Planning Session for the Directors and Officers of the
Association with the following desired outcomes:
• understanding of the way unbudgeted expenses are handled throughout the year by being presented for
approval via a Project Initiation Document
• understanding of the processes in place throughout the year to review and monitor the budget
• general awareness and understanding of each Committee’s budget
• identification of budget changes that need to be made
Committee Budget
• compile
• review
• reporting
• quarterly reviews and reporting based on actuals provided by Treasurer
Yearly Summary Of Achievements
For presentation at the Spring Planning Session and publication in various CAPLA Media.
Volunteer Recognition
through presentation at Dinner or Luncheon meetings, publication in various CAPLA Media and yearly special
event (dinner, lunch) for committee volunteer recognition.
NEXUS
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Meeting Attendance
• monthly board meetings alternate between lunch and dinner meetings. Lunch meetings are 1.5 hours over
lunch and dinner meetings are 2 - 4 hours beginning in the evening. These meetings are held the last Tuesday
of each month except July
• twice yearly Advisory Council meetings (time determined by the Board of Directors)
• planning sessions twice a year (full day - 8 hours on a weekend)
• orientation sessions once a year (full day - 8 hours on a weekend)
• monthly or bi-monthly committee meetings (1.5 hours)
• dinner/luncheon meetings
• required attendance at Annual General Meeting and Management Night
• other dinner/luncheon as interest and schedule accommodates
Media Announcements (NEXUS, Website, Events, Conference)
• NEXUS - committee update article, list of volunteers, general articles about committee
• Website - updates, revisions/additions required to Committee WebPages
• Events - dinner/luncheon meeting committee announcements to President for presentation on PowerPoint at
meetings
• Conference – committee information for display in CAPLA booth during conference
Experience
No previous experience as a Director or Board member is required. This position can be filled by any Member
who is interested in the growth and progression of the Association, in learning how not-for-profit organizations
run, and would find the personal growth associated with sitting on a Board of Directors rewarding.
Guidance Provided
Each previous Director is available to a new Director as a Mentor. The Mentor role of the previous Director is to
provide background information on policy, services and processes. The CAPLA Office is available for guidance
on issues that involve their support. All Board Members are willing to support and guide newcomers to the Board
of Directors. Some Committees also have procedure manuals for their responsibilities. Each Director will receive
from the previous Director the historical information about their committee.
EDUCATION DIRECTOR DUTIES
Committee Objective
CAPLA provides opportunities for those in Land Administration and related fields to expand their knowledge base.
Currently, a curriculum (5-year plan) is being developed which will identify the skills required to carry out various
jobs within Land Administration. Once these skills have been identified, we can build our educational offerings
around them forming a solid foundation able to meet member’s personal and corporate goals.
A realignment of the discipline of land is also being incorporated in order to capture the entire life cycle using
four stages within land asset management, namely: 1) pre-acquisition; 2) acquisition; 3) maintenance and 4)
relinquishment
It is the Education Committee’s responsibility to develop courses within these parameters that enable our members
to acquire the necessary skill sets to perform their ever-evolving duties.
Meeting Attendance
• attend regular committee meetings plus two planning sessions a year;
• Course Facilitators duties are outlined in the Facilitator’s Handbook.
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NEXUS
General
• submit Project Initiation Documents (PID’s) to Board for approval for courses or committee initiatives that are
outside of the approved annual budget
• supervising and final approval of course calendar production as well as submission to both printer and
CAPLA’s Webmaster
• supervising the process where all course requirements are met such as facilities and instructor confirmations
• supervising committee in all other processes
• answering member enquires relating to Education
• making all decisions with respect to course cancellations or postponements
• deciding/approval of promotional and gift items
• setting course prices and negotiating instructor fees
• committee summary report for each Board Meeting
GOVERNMENT RELATIONS DIRECTOR DUTIES
Committee Objective
To identify ways to streamline processes and practices between industry and government and to influence and
create increased effectiveness and efficiencies in all aspects of land and agreement administration.
Meeting Attendance
• attend regular monthly committee meetings
• attend yearly planning sessions
General
• documenting procedures, guidelines and policies to improve the use and consistency of documents, forms
and processes
• creating standard processes and forms, which are developed to enhance efficiencies, as well as reducing costs
in land administration for both industry and government
• taking an active leadership role in discussions with government agencies to create positive working
relationships resulting in increased efficiencies for all parties
The Committee will utilize task forces, mass emails, NEXUS articles, round tables, information exchanges and
CAPLA’s website as required to achieve their committee’s and/or task force’s goals
INDUSTRY RELATIONS DIRECTOR DUTIES
Committee Objective
To identify ways to streamline processes and practices between industry and government and to influence and
create increased effectiveness and efficiencies in all aspects of land and agreement administration.
Meeting Attendance
• attend regular monthly committee meetings
• attend yearly planning sessions
General
• proposing “streamlined” or redesigned forms and processes
• documenting procedures, guidelines and policies to improve the use and consistency of documents, forms
and processes
• creating standard agreements and forms, which are developed to enhance efficiencies, as well as reducing
costs in land administration for industry
NEXUS
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Page 13
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creation of industry protocols that could give guidance that is practical and impartial
The Committee will utilize task forces, mass emails, NEXUS articles, round tables, information exchanges and
CAPLA’s website as required to achieve their committee’s and/or task force’s goals
TECHNOLOGY DIRECTOR DUTIES
Committee Objective
The mandate of the Information Systems Committee is to provide a leadership role in technology use and
development, with the goal of enhancing the value of our profession and CAPLA. The Information Systems
portfolio includes the Website and Job Bank advertisements.
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increase knowledge and skills for new and existing technology within CAPLA’s membership;
increase the use of technology, and;
increase innovation through the use of technology and sharing of information.
Meeting Attendance
• monthly committee meetings (approx. 1.5 hours over lunch). These meetings are scheduled for every third
Tuesday of each month
• special meetings required due to specific commitments
• act as scribe or facilitator on a rotating basis, circulate to minutes to committee members and prepare
committee updates for submission to newsletter and/or website
• planning session once a year (1/2 day – 6 hours)
General
• co-ordination of reviewing, requesting or writing articles on technology for NEXUS
• share information and ideas with committee members on new technology trends
• maintain vendor’s library
• duties for website pages are disbursed amongst committee members (eg. Links page, Bulletin Board etc.)
• assist in the setting of committee’s goals and objectives
• communication with other CAPLA Committees to form synergies
DON’T FORGET TO VOTE
Special Meeting – January 19, 2004
Elections – March 16, 2004
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December, 2003
NEXUS
SHARING THE
APACHE PERSPECTIVE
I was pleased to receive a request to submit an
article for publication in the CAPLA newsletter
which, as the logo notes, is indeed an effective link
between individuals and groups. As our industry
expands and changes, the onus is on us to utilize
those existing links and forge new ones in order to
meet the challenges of our ever-changing
profession. This is accomplished by sharing ideas,
attending industry meetings, locating specific
training, respecting the views of others, remaining
open to new procedures and systems and just
generally helping and receiving help from our
industry partners. We’re all in this together so how
can we assist in the process? Sharing the Apache
perspective may be a starting point.
Apache Canada Ltd. entered the Canadian industry
upon the acquisition of DeKalb in 1994. Additional
property acquisitions from Phillips Petroleum,
Shell, Fletcher Challenge, Conoco Phillips,
Petrobank Energy and Resources, to name a few,
increased our reserves and property base. Apache
has had its share of learning experiences in industry
and blends a fast-paced acquisitions and divestiture
culture along with exploration opportunities in
Canada.
We’ve worked at bridging the gap that existed
between some of the U.S. and Canadian companies
by combining personnel functions and examining
organizational structure in attempting to find the
best work processes possible. We tend to approach
things in a unique way at Apache in more than one
arena. In Land Administration specifically, we
restructured job positions, combining duties
differently than most Canadian companies and refer
to our Land Admin employees as Analysts instead of
Administrators.
The Lease & Contracts Analysts are assigned
geographically and, as the title implies, are
responsible for the analysis and timely system input
of all new leases, contracts and maintenance to
existing data in the system. The L&C Analyst
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responds to changes in well statuses, assimilates a
variety of governmental regulations affecting lease
and contract obligations, determines obligations,
reviews payments and obligations calendars,
approves partner rental invoices, determines
company mineral and fee interests, handles owner
inquiries, coordinates with co-owners on numerous
issues and serves as a liaison between many
internal departments. The L&C Analyst works in
conjunction with the DOI Analyst in ensuring new
and ongoing business is appropriately captured in
the system.
Our current lease system has been utilized by
Apache for 6 years, ensuring leasehold obligations
are met and correct payments and subsequent
partner billings issued. Producing and nonproducing acreage totals are maintained,
obligations monitored, calendars issued and
participants’ interests updated. Leases are linked to
applicable contracts and producing properties.
Canned retrievals aid the users in being able to
immediately access a variety of lease and payment
reports.
Key information is retrieved from the contracts
system and integrated into our accounting system
for correct operational calculations. The analysts
capture pertinent provisions affecting partner
billings and maintain current ownership. The
contract is indeed the starting point and is the first
point of integration to other internal systems prior
to the setup of a producing property.
The DOI Analyst is the person solely responsible for
the calculation and maintenance of producing
property ownership. While many of our Canadian
counterparts assign that responsibility to
Accounting after Land Admin has analyzed the
leases and contracts, Apache places it in the hands
of the DOI Analyst as the one-source input and
control.
When a property is AFE’d
December, 2003
for drilling, the DOI
Page 15
Analyst establishes an expense deck in the DOI
system that interfaces with the applicable contract,
links with appropriate leases and integrates to
Accounting for partner billings. When the well
becomes producing, a revenue deck is set up which
establishes royalty burdens and partners’ net
revenue interest. Once booked, the net revenue
interest (NRI) is the ownership upon which owners
are paid. For working interest owners, this is the
percentage after deduction of their proportionate
share of burdens. The DOI system updates leave an
auditable trail at a property level providing
historical ownership transfer information. The L&C
Analyst and DOI Analyst work hand in hand in
ensuring notifications are appropriately routed and
timely updates made. The DOI Analyst handles
owner and partner inquiries as well from a
producing property standpoint.
Companies in the U.S. utilize a document known as
a Division Order that establishes the division of
interest on new properties and a Transfer Order
summarizing and verifying ownership changes
between parties. The Division Order serves as both
a notice and control process as it is circulated to
royalty owners, overriding royalty owners and
working interest parties to whom disbursements are
made. While execution of a Division Order is not
mandatory for the payment of revenue proceeds, it
does provide notice that revenue is forthcoming by
the payor at a specified ownership decimal to a
particular party at the address shown. It serves as
an excellent vehicle in flushing out any interest
disputes among owners prior to first payment and
provides a historical summary of initial ownership
in the property. Transfer Orders trace the chain of
title throughout the life of the property. Properties
involving payout are also easily traced by use of a
‘BPO’ and ‘APO’ Division Order. As Division
Orders are not utilized in Canada, quite often the
task of recreating historical ownership data is a
laborious process of contract and lease file review
often resulting in re-inventing the wheel many years
later. At Apache, a division of interest file is created
when the expense and revenue decks are
established and while NOAs are filed in our
contract files, ownership changes are reflected in
the division of interest file. If an ownership
question arises on a producing property, the
historical tab in our DOI system is the first source of
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review and the D/O file will provide further
documentation.
Our land system is an integral part of an integrated
and interfaced set of systems that include
Accounting, Gas Marketing, Production Systems
and various field operational systems. What benefit
is there to integrated and interfaced systems?
Rather than having information housed in “silos”,
separated for different departmental purposes, one
source input and maintenance is required. When
all the systems talk with one another, efficiency is
increased, key data is readily accessible in core
sources, and the margin for error decreases
dramatically due to the information not being input
by multiple people and at differing times. The
economics and full picture of a property are readily
available, identifying potential sale opportunities.
An impact resulting from integration and interfacing
is that problems or discrepancies which may have
lurked in a property are spotlighted, demanding
immediate attention. That’s a good thing in the long
run, as the information is refined, filtered and
upgraded, assuring consistency throughout all the
systems and applications.
So, how does Apache’s different way of doing
business impact our industry here in Canada?
Perhaps it provides one more perspective, a fresh
albeit unusual approach in administering our lease
and contract obligations and ensuring timely
billings and payments to owners in our producing
properties. We’ve assembled a team of Land
Administration Analysts who are among the best in
the industry. We are an aggressive company on the
leading edge of new technologies and processes.
We’ve had our share of growing pains but take
pride in the fact that we continue to grow and focus
on new opportunities while continuing to refine
and upgrade our current processes and systems.
Apache is in Canada to stay and we’re your
neighbor, located just down the street from you.
Come see us!
Joyce Jones
Land Administration Manager
Canadian Region
Apache Canada Ltd.
(Former NADOA President)
December, 2003
NEXUS
FREEHOLD MINERAL
TAXATION
The comments that follow are an attempt to simplify
complex matters and are intended to provide members
of The Freehold Owners Association (FHOA) with
general information. In some instances, simplification
has resulted in a non-rigorous treatment. These
comments are not intended to be a substitute for
professional advice.
Federal Taxation:
Freehold minerals owned by individuals or
corporations are considered to be ‘Canadian resource
property’ for purposes of the Canadian Income Tax Act
(the “Act”). A number of the tax rules applicable to
Canadian resource property are particularly important
in estate planning.
Firstly, payments received from Canadian resource
property are taxed as income. Expenses incurred in
exploring, developing or acquiring a Canadian
resource property may be deducted from income.
These deductions are accomplished through ‘tax
pools’. Freeholders typically lease their freehold
mineral interests to an oil company and, because all
exploratory and development expenses are incurred by
the oil company, tax pools known as Canadian
Exploration Expense (“CEE”) and Canadian
Development Expense (“CDE”) are usually not relevant
to freehold owners. But freehold owners may incur
expenses in acquiring Canadian resource property.
Costs incurred to acquire an interest in freehold
minerals are included in an individual’s Canadian Oil
and Gas Property Expense (“COGPE”) pool in the year
of acquisition. Generally, the amounts in your COGPE
pool may be deducted from your income on a 10%
declining balance basis (for example, if your freehold
mineral interests were acquired for $10,000, you could
deduct $1,000 from your income in the first year, $900
in the second, $810 in the third, etc.). The foregoing
applies irrespective of whether you actually purchased
the freehold minerals for cash or inherited them
through an estate in which tax was paid under the
deemed disposition rules (see below).
Taxation of Lease Bonuses, Rentals and Royalties:
The cash signing bonus you receive when you lease
your freehold mineral interests and the payments you
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receive as annual delay rentals or shut-in royalties are
considered to be proceeds of disposition of a Canadian
resource property by the Canada Customs and
Revenue Agency. To the extent that these amounts
exceed the amount in your COGPE pool, they should
be declared as income in the year of receipt. In the
above example where you acquired the freehold
mineral interests for $10,000, if you received a
$16,000 signing bonus in the year of acquisition, you
would reduce your COGPE pool to zero and include
$6,000 in income. If however your signing bonus was
only $9,000, you would reduce your COGPE pool to
$1,000 and have no income for tax purposes as a result
of leasing. In situations where freehold owners
acquired their mineral interests for token consideration
many years ago, all amounts received as lease signing
bonuses or delay rentals are effectively income and
COGPE pools are relevant only in the context of estate
planning.
Because freehold mineral interests are Canadian
resource property and not capital property, the capital
gains rules do not apply. The proceeds from an
outright sale of your freehold mineral interests are
treated in the same way under the Act as leasing
proceeds and delay rentals or shut-in royalty payments.
To the extent the proceeds from a sale of your mineral
interests exceed the amount in your COGPE pool, the
proceeds should be included in income. In the above
example where you acquired the freehold mineral
interests for $10,000, leased them for $9,000 thereby
reducing your COGPE pool to $1,000 and then, for
instance, sold them that same year for $15,000, you
would reduce your COGPE pool to zero and have
income of $14,000 in that year.
Any royalty payments you receive under terms of your
lease agreement are considered to be investment
income by the Canada Customs and Revenue Agency.
The Act requires your oil company-lessee to provide
you with a T-5 slip each spring indicating the total
amount of royalties from Canadian sources received by
you in the prior year. In certain provinces, including
Alberta, freehold owners must pay freehold mineral tax
to the province on production from their mineral
interests (see below). Provincial freehold mineral taxes
December, 2003
Page 17
are not deductible for federal income tax purposes. To
compensate for this, the Canada Customs and Revenue
Agency allows freehold owners a resource allowance
deduction which is effectively equal to 25% of royalty
payments received. The Act requires oil companies to
report the amount eligible for resource allowance on
the T-5 slips which are provided to you, but some oil
companies fail to comply with this requirement. If the
amount shown in box 20 of your T-5 slip (Amount
eligible for resource allowance deduction) does not
correspond to the amount shown in box 17 (Royalties
from Canadian sources), FHOA recommends that you
contact the oil company and request an explanation.
In addition to resource allowance, you can also deduct
expenses directly related to income earned from your
freehold mineral interests. For example, if you hired a
consultant to assist you in negotiating your lease, the
consultant’s retainer may be deducted from your lease
signing bonus payment. Similarly, if you hire a
consultant to review your royalty statements, the
consultant’s retainer may be deductible from your
royalty payments.
acquisitions, and to satisfy the corporate reserve
reporting requirements of securities regulators. An
entire ‘sub-industry’ of evaluators exists to provide
independent evaluations to the oil and gas industry. If
no wells capable of production have been drilled on or
in the vicinity of a property, evaluators typically base
their evaluations on the price paid for comparable
Crown leases in the area. If wells capable of
production exist, valuations are based on: estimates of
the volumes of oil and gas in place; estimates of the
volumes of oil and gas which can be recovered;
estimates of the future prices of oil and gas; and
estimates of the future costs to produce the oil and gas,
including taxes and royalties. Individual evaluators
seldom agree on all of these variables and, if they do,
they are usually all wrong. Consequently the estimated
value of any particular Canadian resource property
leased by an oil company may vary widely.
Deemed Dispositions:
The deemed disposition rules are particularly
important in estate planning involving freehold
mineral rights. Under the Act, an individual is deemed
to have disposed of all of his or her Canadian resource
property immediately before death for proceeds equal
to the property’s fair market value. There are provisions
in the Act which allow you to leave your freehold
mineral interests to your spouse, your common law
partner or a spousal trust on a tax-free basis, but if you
intend to leave your mineral interests to someone else,
the deemed disposition rule may create a tax liability
in your estate. Depending on the fair market value of
your minerals (see below), this tax liability may be
onerous.
Freehold mineral interests are even more difficult to
evaluate.
One reason is that you own your mineral interests in
fee simple whereas oil companies merely lease fee
simple interests. This means that your property rights
are not limited by time - you, or your beneficiaries, are
the owners of any oil or gas found beneath your lands
no matter when it is found. Your interest differs from
an oil company’s interest as the property rights which
an oil company acquires when it enters into a lease
agreement terminate when the lease expires. This
distinction is critical from a valuation standpoint
because drilling and abandoning a nine inch well
bore on a quarter section of land does not prove that
the entire quarter section has no oil or gas, especially
if the well bore is not deep enough to evaluate all
potentially productive geological zones. Furthermore,
there are countless examples of situations where oil
companies have drilled and abandoned wells many
years ago, when prices were lower and technology
was less advanced, which would not be abandoned
today. The oil companies’ property rights have long
since expired, but the fee simple owners’ have not.
From a practical standpoint, this results in evaluations
of freehold mineral interests being inherently even
more uncertain than evaluations of the lease rights of
oil companies.
Valuations of Freehold Minerals:
The Canadian resource properties leased by oil
companies are evaluated on a regular basis in
conjunction with oil and gas industry mergers and
An evaluation of the fair market value of a ‘simple’
producing freehold property by one of the major
evaluation firms in Calgary may be expected to cost
between $1,000 and $2,500. If the mineral rights are
As a consequence of the treatment of income from
your mineral interests under Canadian income tax
legislation, your tax liability for lease signing bonus
payments, delay rental or shut-in royalty payments,
and royalty payments from your freehold minerals in
any year will be determined by your overall income
level in that year.
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NEXUS
not leased, or if they are leased but not producing, the
cost of a professional evaluation may be less. The
evaluation of more complex freehold properties (for
instance, properties subject to a unit agreement) may
be significantly more expensive.
In situations where freehold mineral interests are
generating minimal annual royalties, it may be difficult
to economically justify the cost of a professional
evaluation of the property’s fair market value. One
‘rule of thumb’ which may be used in these situations
is to apply a multiple of three to five times the average
annual royalty received from the property. For
instance, if freehold mineral interests had been
generating an average of $2,000 per year for a
deceased individual, a fair market value in the range of
$6,000 to $10,000 may be reasonable. If the annual
royalties received had been increasing year over year,
you would use the higher number and vice versa.
Under Canadian income tax legislation, the deceased
individual would be deemed to have received
proceeds of disposition equal to this fair market value
immediately before his or her death, and this amount
would effectively be brought into income in the year of
death (assuming the individual’s COGPE pool was
zero).
Oil and gas prices have swung widely in recent years
and this has had a significant impact on the royalties
received on an annual basis by many freeholders. In
addition, the deregulation of gas markets has resulted
in gas production from many recently completed
wells declining more rapidly than previously. As a
result, royalties received over the past several years
may not be indicative of what may be received in the
future.
The Canada Customs and Revenue Agency takes the
position that fair market value estimates must be
reasonable. If the freehold mineral rights generate
more than token annual royalties, FHOA recommends
using qualified evaluators to determine fair market
value in order to protect against possible future audit.
Whatever method you use, document it and keep it on
file.
Provincial Taxation:
In addition to the provincial share of income tax
generated by fresh old minerals, certain provinces levy
a tax on production from freehold minerals.
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Freehold Mineral Tax:
In Alberta, the Freehold Mineral Tax Act provides for an
annual tax to be levied by the Provincial Government
on production from freehold mineral interests in the
year following production. Separate taxes are levied
on petroleum, solution gas, natural gas and
condensate. Although the formulae used to calculate
the freehold mineral tax are complex, their effect is to
charge a tax of approximately 7% of the total value of
production in the prior year. The value of production is
based on oil company submissions which are subject
to audit by Alberta Energy. The legislation provides for
an exemption of up to $3,200 per mineral title for each
of petroleum and natural gas. Where title is split, the
petroleum owner may receive an exemption of $3,200
per title ($1,600 for each of petroleum and solution
gas) and the natural gas owner may receive an
exemption of $1,600 per title for natural gas.
Most freehold leases provide for the freehold mineral
tax levy to be shared between the oil company-lessee
and the freehold owner-lessor in proportion to their
interests. For example, if you negotiated an 18%
royalty rate, the oil company would be responsible for
82% of the freehold mineral tax and you would be
responsible for 18%. This sharing ratio is no more
sacrosanct than anything else in a freehold lease. It
may be in your best interests in leasing your minerals
to attempt to negotiate a reduced sharing ratio.
Completely eliminating your share of freehold mineral
tax is not recommended as this would impact your
resource allowance claim.
Although the responsibility for payment of freehold
mineral tax under the Alberta Freehold Mineral Tax Act
rests with the freehold owner and nonpayment may
ultimately result in cancellation of a freehold owner’s
title, the oil company-lessee typically pays both its
own and your share of the freehold mineral tax and
deducts your share from future royalty payments.
In Saskatchewan, the payment of freehold mineral tax
is the responsibility of the oil company-lessee and
freehold owners cannot claim resource allowance.
Previously published in the October 29th 2002, Newsletter of The
Freeholder Owners Association (“FHOA”). Thank you to Else
Pedersen for providing permission to re-print on behalf of the
FHOA.
December, 2003
Page 19
WELL LICENCE
APPLICATIONS – GUIDE 56
By way of Bulletin 2003-34 dated September 16, 2003, the Alberta Energy and Utilities Board (“EUB”)
introduced the October 2003 edition of Guide 56: Energy Development Applications and Schedules, which is
effective October 1, 2003. The revised Guide 56 presents a thorough and comprehensive listing of the
requirements and procedures for filing a licence application to construct or operate any petroleum industry
energy development in Alberta that includes facilities, pipelines, or wells. Guide 56 is incorporated by
reference into the Oil and Gas Conservation Regulations (the “O&GC Regs”) and serves as an extensive
reference document with respect the EUB’s interpretation of the O&GC Regs. In our view, a detailed
understanding of Guide 56 is a requirement for any legal or mineral land professional involved in upstream oil
and gas operations in Alberta. The consequences for non-compliance with Guide 56 are now directly and
specifically tied to the EUB’s enforcement ladder. It is critical that effective pre-submission internal audit
processes are in place in order to ensure compliance. The following discussion relates to developing internal
processes to comply with the mineral rights ownership aspects of Guide 56 for well licence applications.
An applicant must use Schedule 4 to Guide 56 to apply for a well licence for, inter alia, a new oil, gas, or crude
bitumen well. The Well Licence Application contains two questions impacting mineral rights ownership that
the applicant must understand and answer accurately.
Guide 56 - Schedule 4
Commentary
9.2 The applicant has the rights The applicant must identify each parcel of land comprising the largest
to a complete drilling spacing drilling spacing unit that applies to the hydrocarbon substances that are
unit?
potentially recoverable from the proposed well. Insofar as current
certificates of title are subject to exceptions, a historical title opinion
may be required.
9.1 The applicant has the rights For each of the identified parcels of land comprising the drilling spacing
for all intended purposes of the unit:
proposed well?
• The applicant must identify the holder of the fee simple rights to all
hydrocarbons that may be recoverable from the well from the
intended formations. Insofar as current certificates of title are subject
to exceptions, a historical title opinion may be required.
• The applicant must identify any and all valid leasehold estates (or
other lesser interests) granted in respect of such fee simple
hydrocarbons. While a search letter may be sufficient in respect of
Alberta Crown leases, a freehold lease integrity opinion may be
required.
• The applicant must possess sufficient documentation to establish its
entitlement to 100% of the fee simple estate, or the leasehold estates,
or to an undivided interest in the foregoing together with rights from
the owners of the balance of the undivided interests, to drill the well.
In many circumstances involving Crown and freehold tenure with
complex histories, a beneficial ownership opinion may be required.
If either of the foregoing questions cannot be answered “YES”, the applicant must attach a detailed explanation
of the reason why it does not have the mineral rights in the entire drilling spacing unit for all intended purposes
of the proposed well. The EUB will review the circumstances and decide if an exemption is warranted. If the
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December, 2003
NEXUS
applicant does not have all mineral rights for the entire drilling spacing unit and is awaiting other EUB approvals
(e.g., reduced spacing application) or freehold leases to be obtained (e.g. options to be exercised), the
application is premature. Further, it appears that in multiple phase reservoirs, the EUB will require an applicant
to hold rights to all substances that can potentially be produced from the targeted formation. This approach is
essentially an implementation of EUB Decision 2000-21 (GOODWELL PETROLEUM CORPORATION LTD.
REQUEST TO SHUT IN BITUMEN WELLS WABISKAW-MCMURRAY OIL SANDS DEPOSIT ATHABASCA AREA
– BRINTNELL SECTOR) which required “some form of agreement or revenue-sharing formula” between
bitumen owners and free gas owners in a multiple phase reservoir.
Requirements and Recommended Practices
1. With Guide 56 the EUB has introduced a clear differentiation between the concepts of “requirement/must”
and “expectation/should”.
(a) Regulatory requirements are those rules that industry has an obligation to meet and against which the
EUB may take enforcement action in cases of non-compliance. Regulatory requirements are identified
as “must” statements within in the text of Guide 56.
(b) Regulatory expectations, on the other hand, represent recommended best practices or guidelines.
Regulatory expectations are identified as “expect” statements in the text. While enforcement action is
not applicable, expectations should be given consideration.
The following is a summary of the Guide 56 mineral ownership regulatory requirements relating to the
submission of Well Licence Applications.
Provision
7.9.11
Heading
Right to
Produce or
Operate
Requirements
Prior to submitting a Well Licence Application, the applicant must:
a) be a working interest participant;
b) be entitled to the right to produce the oil, gas, or crude bitumen from
the well or have the right to drill or operate the well for the authorized
purpose;
c) acquire the right to produce from the intended formation for the
complete drilling spacing unit;
d) if applicable, obtain permission from the Alberta Department of
Energy to produce minerals under water bodies on Freehold mineral
lands, as the Crown holds the mineral rights beneath water bodies.
7.9.11.1
Mineral Lease
Continuation
The Alberta Department of Energy does not consider an application for
a mineral lease continuation sufficient to demonstrate that an applicant
has the rights for all of the intended purposes of the well. Prior to
submitting a Well Licence Application, the applicant must receive a
signed approval granting a mineral lease continuation from the Alberta
Department of Energy. (While not specifically addressed in Guide 56,
consider the application of this concept to freehold leases in the context
of drilling over, end of primary term continuation letters, outstanding
default notices, etc.).
7.9.16
Working
Interest
Participants
The applicant must be a working interest participant to apply for or hold
a well licence.
EUB Audit Process
2. Through Guide 56 the EUB provides the energy industry with requirements and expectations to assist
applicants in preparing the various energy development applications. To ensure compliance with Guide
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56, the EUB has instituted an audit process to ensure compliance. The audit process, insofar as it applies
to mineral ownership, requires the applicant to be able to demonstrate how it met and planned for
regulatory requirements as set out by the EUB prior to filing the energy development licence application.
As such, a defined set of documents must be maintained on the applicant’s files and submitted to the EUB
for review in the event of an audit, in order to demonstrate that regulatory requirements as set out in Guide
56 have been fulfilled. In order to adequately comply with the EUB’s audit process we are recommending
that applicants put in place an internal process whereby:
(a) a pre-submission audit of the Well Licence Application is conducted by a legal or mineral land
professional;
(b) any deficiencies are disclosed to the EUB at the time of the application; and
(c) the required documentation is compiled and maintained separately for the purposes of a potential EUB
audit.
Over time, each company should develop a system of acceptable assumptions (e.g. missing deferred drilling
payments, whether Crown lease transfers and Assignment and Novation documentation sufficiently evidence a
conveyance of beneficial working interests) based upon its corporate history, area of operation, and risk profile.
Provision
7.10
Heading
Audit
Documentation
Requirements
Requirements
When selected for audit review, the licensee must submit the required
documents within 14 calendar days of notice of audit or within the time
frame as directed by the EUB.
7.10.9
Rights for all
intended
purposes
The licensee must submit:
a) the mineral rights lease number for Crown minerals;
b) the documentation that authorization has been obtained for leased
Crown minerals, and
c) the documentation that authorization has been obtained for Freehold
minerals.
7.10.9.2
Rights for the
complete drill
spacing unit
The licensee must submit:
a) the mineral rights lease number for Crown minerals, and
b) documentation evidencing the rights for Freehold minerals
3. All routine and nonroutine applications are potential audit candidates. An application may be randomly
selected by computer or judgementally selected by the EUB based on factors such as category type, public
risk, location, and recent applicant compliance history. If during the audit process applications are found
to be noncompliant, the EUB will initiate enforcement action in accordance with EUB Information Letter
99-04. Unsatisfactory events are identified noncompliances and result in enforcement on the Minor, Major,
and Serious enforcement ladders. Guide 56 outlines the following results for unsatisfactory events:
Enforcement
Serious
Unsatisfactory Event
Filing an application when the applicant does not have a working interest participation.
Major
Failure to acquire all rights for the intended purpose of the well and for the entire drilling
spacing unit prior to filing the application.
Major
Failure to obtain a mineral lease continuation prior to filing the application.
At any time during the life of a project, an applicant/licensee that identifies a non-compliance with EUB
requirements may voluntarily disclose the non-compliance. If a licensee meets the criteria for voluntary selfdisclosure, there will be no enforcement action.
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Property Acquisitions and Corporate Transactions
4. Guide 56 also indicates that, in cases of corporate property acquisitions or mergers, “it is in the company’s
best interest to obtain all relevant application documentation when it acquires ownership of a facility,
pipeline, or well. A new owner is expected to assess all newly acquired properties to ensure that the
property is operating with the correct Guide 56 licence. If a non-compliance is identified, the new owner
should notify the EUB of the non-compliance and address the issue in accordance with Information Letter
99-04.” Taken literally, Guide 56 requires that, in respect of each well license acquired in every transaction,
a review be conducted to ensure mineral rights ownership compliance and self-disclosure of any and all
defects in respect thereof.
The EUB is providing a transition period from October 1, 2003, to March 31, 2004, in recognition that it may
take some time for applicants to become familiar with and fully integrate all of the changes contained in Guide
56.
Michael A. Thackray
Thackray Burgess
(403) 531-4710 (Phone)
(403) 531-4720 (Fax)
[email protected]
Previously distributed through the Thackray Burgess Alert and Update service.
Thank you to Michael Thackray for providing permission to reprint.
CAPLA’s fifth bi-annual Conference
will be held at the
Calgary Stampede Roundup Centre
on June 24 and 25, 2004.
The theme of this upcoming Conference is
“Putting the Pieces Together”. The Conference is designed
to explore the many functions within an
oil and gas company.
The process of gaining more knowledge about how other departments in a company operate can help make our land
responsibilities easier to complete. We have a variety of education sessions planned that will broaden participants
understanding of how our day-to-day tasks affect and are affected by the organization within which we function.
This year’s Conference will offer many changes such as on-line registration and a Conference website to help provide you
with more information in a quick and easy manner. A special networking event on Friday, June 25 will consist of a cocktail
party and dinner theatre held at Jubilations Dinner Theatre. Once again, the Golf Tournament will be held at Woodside
Greens in Airdrie on Saturday, June 26. We look forward to seeing you there and hope that you can complete the picture
by “putting the pieces together” and enjoy all our exciting Conference events.
Val Anderson
2004 Conference Chair
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PETROLEUM RESOURCES CENTRE OF THE ONTARIO
MINISTRY OF NATURAL RESOURCES – THE OIL AND
GAS INDUSTRY IN ONTARIO
The petroleum resources program of the Ministry of
Natural Resources regulates the oil, gas and storage
tenures on Crown lands, as well as some industry
activities associated with the drilling of wells into
Ontario’s sedimentary rocks.
The program’s
objectives are to ensure that:
1. The exploration, development and production
of crude oil, natural gas, salt-solution mining
and underground storage do not result in a
hazard to public safety or pollution of the
environment, including surface waters and
underground drinking water aquifers;
2. Ontarians receive a fair share of the value of
natural resources produced on Crown land;
3. Correlative rights are protected through optimal
drainage areas (spacing units) on Crown and
freehold land;
4. Information necessary to make decisions based
on high quality science and information for oil,
gas, salt solution-mining and underground
storage resource management are collected;
and
5. All operators follow the regulatory requirements
for drilling wells and production facilities, and
follow through with the plugging of unused
wells and site clean up.
The Petroleum Resources Centre (PRC) functions
include: a) proponent driven technical review of
applications for life-cycle well licences; b)
conducting regular field inspection and
enforcement activities to ensure that the
requirements of the Oil, Gas and Salt Resources Act
(OGSRA), its regulations and standards are met; and
c) conduct tenders for oil, gas and storage tenures
on Crown lands.
There are currently 3700 active wells at several
hundred
different
locations
in
Ontario.
Approximately 100 new wells are drilled every year
for the purpose of production of oil, gas, salt, and
hydrocarbon storage. The PRC recognizes the many
historical accomplishments of the oil and gas
industry in Ontario, including the first commercial
oil well at Oil Springs drilled in 1858, the first salt-
Page 24
Volume 8.4
-
solution mining well completed in 1866 and the
first well on Lake Erie drilled in 1913. Natural gas
storage first occurred in 1915 when gas was
transferred from a high pressure pool to a lower
pressure pool, however, natural gas storage in reefs
first started in 1942. Solution mined caverns were
first used for hydrocarbon storage in 1952. There
are an estimated 50,000 petroleum wells drilled in
Ontario.
The oil and gas industry provides a significant
contribution to the local and provincial economy,
with the production of oil, gas and salt generating
over one hundred million dollars annually. There
are 29 designated storage areas for natural gas
storing more than one billion dollars of natural gas,
and that keeps the price lower for the consumers
and provides reliability during the cold months.
There are also 73 solution mined caverns being
used
for
liquefied
petroleum
gas
and
petrochemicals with an estimated more than one
billion dollars of storage.
The collection and dissemination of information is
a key function of the PRC. Data collection began in
the late 1800’s, and consists of geological, drilling
and engineering information on over 20,000 wells
drilled in all parts of Ontario for the purpose of
exploring for or producing hydrocarbons,
underground storage of hydrocarbons, disposal of
oil-field fluids, and production of salt by the
solution mining method. Information collected
includes well location, well status, operator, drilling
dates, depths and results, geological formation tops,
well
construction,
oil/gas/water
intervals,
geophysical well logs, drill core and cuttings, core
analyses, oil/gas/water analyses, drill stem and
production tests, monthly production volumes and
pressures, etc. The PRC, in cooperation with the
Oil, Gas and Salt Resources Library, provides
geological analysis and information required for
assessing oil, gas and salt resource industries in
Ontario.
Currently there are 440,000 hectares under tenures
December, 2003
NEXUS
on Lake Erie, and with the increased technologies,
there is potential to further develop open lands on
Lake Erie, Lake St. Clair, Lake Huron, and Hudson
Bay Lowlands.
In order to maintain long-term viability of the oil
and gas industry, the PRC’s compliance program is
intended to ensure operations comply with the
OGSRA, its regulations and its standards. This
process involves reviewing industry compliance
with requirements for data and record submissions,
and field inspections of wells and associated
facilities.
The Petroleum Resources Centre also promotes the
responsible use of the resource by working with its
stakeholders, such as municipalities, industry,
agricultural associations, academic institutions and
the general public. We believe that effective
consultation and communication is key in
recognizing the existing industry and moving
forward into the next generation.
by developing newer plays through the use of
information and GIS technologies, and also to
address the issue of an estimated 20,000 orphan
wells, through cooperation amongst industry,
farmers associations and the government. We will
seek ongoing improvements in updating spacing
and pooling requirements, in continuing to seek
compliance with the OGSRA and in implementing
functional and quality electronic information for
the industry and the general public.
We are encouraged by the partnerships with our
stakeholders, including the Ontario Petroleum
Institute (OPI), in ensuring that the resource is
properly extracted and the rights of landowners and
the general public are respected. The operation of
the Oil, Gas and Salt Resources Library by the OPI
is providing a valued educational and information
service to industry, government and the public. We
look forward to ongoing opportunities to develop
these partnerships in the future.
Andrew Hewitt. Petroleum Resources Centre
Our challenge is to seek future oil and gas reserves
Permission to reprint provided
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NEXUS
Volume 8.4
-
December, 2003
Page 25
LEGAL AND REGULATORY ASPECTS OF
COALBED METHANE DEVELOPMENT
The following is part 3 in a 3 part series that NEXUS
began publishing in August 2003. Part 1 addressed
the Background and Title Issues, Part 2 addressed
Legal and Regulatory Issues and Part 3 will address
the Environmental Issues. We trust you have enjoyed
this informative and comprehensive article.
F. Environmental Issues
As CBM developments generally result in the
extraction of a large volume of groundwater along
with the methane, the handling and disposal of that
water is by far the most significant environmental
issue facing a CBM developer. CBM wells in the
United States can generate 10 to 100 times more
produced water than a conventional gas well. Often
the water is saline. Some commentators have even
said CBM development is really a water management
business rather than a gas business.
1. The Right to Divert Groundwater
Under Alberta’s Water Act, a licence is required in
order to divert groundwater. Dewatering a coal seam
for CBM production is a form of water diversion.
However, the Water (Ministerial) Regulation provides
that a licence is not required for the diversion of
saline groundwater, which means water that has total
dissolved solids exceeding 4000 milligrams per litre.
Accordingly, if the produced water is not saline then
a licence is required.
In BC, the present situation is that the Water Act sets
out a scheme for licensing the diversion of water.
However, it only applies to surface water but can be
made to apply to groundwater by Cabinet passing a
regulation. Now, the recently passed Drinking Water
Protection Act has repealed the provision allowing
Cabinet to apply the Water Act’s licensing scheme to
groundwater but has replaced it with its own
provision allowing Cabinet to apply the Water Act’s
licensing scheme to groundwater in certain
geographical areas. As of writing this paper, no
regulations have been promulgated by Cabinet in this
regard but it is reasonable to expect future
regulations.
2. Produced Water Rights
Questions have arisen, especially this summer given
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Volume 8.4
-
the harsh and extensive drought on the prairies, about
whether the extensive water resources diverted from
coal seams as part of a CBM development have a
commercial value to the developer for irrigation or
other purposes. For instance, in some parts of the
United States water is considered a commodity which
may be privately bought and sold and I am advised it
can sell for over $250 US per acre/foot. In some areas
the water may be nearly as valuable as the methane.
In Alberta, all water resources are owned by the
Crown pursuant to the Water Act. Accordingly, a
CBM developer is not entitled to “sell” the water
produced to area farmers.
All water in British Columbia is owned by the Crown
pursuant to the Water Act and the Water Protection
Act and similarly may not be sold.
3. Produced Water Disposal
Because CBM development inevitably results in the
diversion to the surface of large volumes of
groundwater along with the methane, handling and
disposal of the produced water has attracted
substantial attention and significant controversy in the
United States. It is expected that CBM development
in Canada will receive the same type of attention.
The two most common methods of disposing
produced water from CBM projects are underground
injection and surface discharge. Evaporation ponds
have also been used in the U.S. In a few instances,
where the produced water quality is acceptable
without treatment, some produced water has been
used for livestock watering, irrigation and domestic
purposes in the United States.
Surface disposal is controversial in the United States
given that surface discharge has the potential to
increase soil salinity and sodium absorption, as well
as contaminate lands and surface water resources
with trace metals such as arsenic and barium and
cause erosion and flooding. Other concerns involve
lowering groundwater acquifers. Some point out that
the average CBM well in Wyoming’s Powder River
basin discharges 15,000 to 20,000 US gallons of salty
water per day and that 80,000 CBM wells in Montana
December, 2003
NEXUS
and Wyoming will discharge four trillion gallons of
water over the next 15 years.
n April 2002 the US Interior Department’s Board of
Appeal ruled that CBM leases for 2,500 acres in
Wyoming are illegal because they were issued by the
US Bureau of Land Management without proper
analysis under the National Environmental Policy Act
of CBM’s unique impacts. Apparently, a further
51,000 proposed CBM wells could be impacted by
this ruling.
It is reasonable to expect CBM development in
Western Canada to be as controversial with respect to
surface discharge as it has been in the United States.
(a) Re-injection in Alberta
Deep well disposal of oilfield and industrial
wastewaters are considered by the Alberta
Government to be a safe and viable disposal option
where wells are properly constructed, operated and
monitored. CBM-produced water may therefore be
re-injected in Alberta. Disposal wells are classified
and have to be designed in accordance with the
EUB’s Guide 51: Injection and Disposal Wells – Well
Classifications, Completion, Logging and Testing
Requirements.
In all cases the location and purpose of a disposal or
injection well must first be approved by the Board in
accordance with the Oil and Gas Conservation Act
and the regulations thereunder. Guide 51 identifies
the information required to be submitted in support of
an application for approval to inject or dispose of
produced water, as well as operating and monitoring
procedures. The primary purpose of this information
is to ensure wellbore integrity during disposal or
injection operations.
Generally, waste fluids are suitable for deep well
disposal in Alberta if a representative sample of that
waste meets the following criteria:
• pH between 4.5 and 12.5;
• does not meet surface water discharge criteria;
• has a non-halogenated organic fraction of less
than 10 percent by mass (100,000 mg/kg), unless:
(i) it is an untreatable sand or crude oil/water
emulsion; or
(ii) it is an antifreeze or dehydration fluid that
contains greater than 60 percent water by mass;
• has one or more halogenated organic compounds
in a total combined concentration less than 1000
mg/kg; and
NEXUS
Volume 8.4
-
•
has a polychlorinated biphenyl (PCB)
concentration of less than 50 mg/kg.
Injection and disposal wells are classified to identify
those wells that require increased levels of
monitoring and surveillance based on the type of the
fluids injected. Accordingly, wells accepting wastes
beyond common oilfield or similar wastes are subject
to a program of more stringent ongoing monitoring
and review. By contrast, wells injecting fresh or
potable water are subject to minimal monitoring and
surveillance.
Regulatory activities focus on issues related to:
• wellbore integrity to ensure initial and ongoing
containment of the produced water in the
interests of both hydrocarbon conservation and
groundwater protection;
• formation suitability to ensure initial and ongoing
confinement of the produced water in the
interests of both hydrocarbon conservation and
groundwater protection;
• suitability of the waste stream for deep well
disposal having regard for the nature of the
produced water, the integrity of the well and
alternative disposal and management options;
• reporting and manifesting of produced water; and
• where appropriate, ensuring the aforementioned
principles have been followed.
Matters of fluid-fluid, fluid-equipment, and fluidformation compatibility are left primarily to the
disposal well operator, with regulators relying on
operating and monitoring requirements to provide for
early detection and mitigation of potential problems.
The party generating the produced water has the
primary responsibility to ensure that the produced
water has been properly identified, characterized,
and is handled, treated, and disposed of in an
acceptable manner.
The EUB has also published a guideline for
determining water production from gas wells and
when water production from gas wells must be
reported: Guide 4: Determining Water Production of
Gas Wells. The Guide outlines the Board’s measuring,
sampling and reporting protocols.
(b) Surface Water Disposal in Alberta
An approval is required to discharge produced water
under the Environmental
Protection and
Enhancement Act .
In Alberta, water quality parameters for surface water
December, 2003
Page 27
discharges are set by the Surface Water Quality
Guidelines For Use in Alberta. The Guidelines are
meant to provide general guidance in evaluating
surface water quality throughout Alberta.
The Guidelines can be used in combination with
water quality monitoring data to assess ambient
conditions and to identify areas with existing or
potential water quality concerns. If monitoring data
do not exceed the Guidelines, problems are unlikely.
If the Guidelines are exceeded, a detailed assessment
might be required in order to determine the extent,
cause, and potential adverse effects arising from the
exceedance. The Guidelines are also used in setting
water quality based approval limits for wastewater
discharges.
The Guidelines do not apply to drinking water.
Alberta Environment has adopted the Guidelines for
Canadian Drinking Water Quality (Health Canada;
1996) for drinking water.
The acute (maximum) and chronic (continuous)
guidelines for numerous substances are set out in
tables in the Guidelines. These are important when
establishing limits based on water quality.
Surface water discharges may therefore be allowed by
Alberta Environment if the water meets the Guidelines
on its own accord or upon treatment. Seasonal
discharges may also minimize impacts.
(c) Re-injection in British Columbia
Under the BC Drilling and Production Regulation,
created under the Petroleum and Natural Gas Act, all
water produced at a facility or well must be disposed
of to an underground formation in accordance with a
scheme approved by an authorized employee of the
Oil and Gas Commission. An application to dispose
produced water has to include, in addition to various
technical requirements, written statements from other
parties who may be affected by the disposal scheme.
Water production from a well has to be measured and
reported monthly, and the volumes of water disposed
of must be reported to the Commission within 25
days after the end of each month.
(d) Surface Water Disposal in British Columbia
Surface disposal of produced water may be allowed
in British Columbia and one developer was
apparently issued a short-term permit for surface
disposal on a CBM pilot project. Extensive water
Page 28
Volume 8.4
-
quality analysis, hydrological studies and ongoing
monitoring is required.
4. Surface Disturbances
CBM developments will result in increased surface
disturbances due to seismic lines, well pads,
compressors, pipelines, roads, plants and
infrastructure. For instance, the Bureau of Land
Management in the United States has estimated that
development of some 80,000 CBM wells expected to
be drilled in Montana and Wyoming in the next 15
years will result in an estimated 17,000 miles of new
roads, 20,000 miles of new pipelines, 200,000 acres
of soil loss and potentially thousands of saline water
reservoirs.
Surface disturbances may adversely affect local
landowners with noise, dust and general nuisance, as
well as impact local ecologies and disturb wildlife.
The results cumulatively may not be trivial if Alberta’s
and British Columbia’s extensive coal basins follow
the trends in the United States where thousands of
CBM wells have been drilled. The surface impact in
British Columbia could be significant as some of its
extensive coal-bearing areas have not historically
experienced the degree of surface disturbances
associated with conventional oil and gas exploration
and production activities. Drilling rigs could soon be
found in wilderness areas where they have not before
been seen.
In Alberta, the acquisition of mineral rights or the
issuance of a well license does not guarantee a CBM
developer the right to access the surface of the land
for drilling and production purposes. Instead, a
separate surface rights access entitlement is required.
For Crown lands, a surface disposition may be
obtained under the Public Lands Act. For privatelyheld lands, a negotiated surface lease is required with
the landowner. A right-of-entry order could be
obtained under the Surface Rights Act for the removal
of minerals contained in or underlying the surface of
the land or for or incidental to drilling operations or
for the construction and operation of pipelines, roads,
tanks, stations and structures.
The Surface Rights Act provides a regime for
determination of compensation payable to the
landowner.
In British Columbia, a person may not enter, occupy
or use land, other than Crown land, to explore for,
develop or produce natural gas unless the person has
December, 2003
NEXUS
a surface lease with the owner of the surface or the
Mediation and Arbitration Board authorizes the entry,
occupation and use under the Petroleum and Natural
Gas Act. A CBM developer who acquires a surface
lease must file it with the Board within 90 days of
acquisition.
Additional “good neighbour” notification, including
notice for short-duration events, should be conducted
where members of the public have identified
themselves as being sensitive to emissions from the
facility or if they are interested in receiving notice of
planned flaring for other reasons.
For Crown lands, surface rights may be acquired
under British Columbia’s Land Act.
The EUB expects operators to provide an information
package to the public prior to flaring (other than in an
emergency). The information package must include:
• company name and contact information,
• location of the test flaring, duration of the flaring
(start date and latest expected completion date),
• expected flaring volumes and rates,
• information on the type of well (oil or gas) and, if
applicable, information on the H2S content of the
flared gas, and
• telephone numbers of operator and EUB Field
Centre contacts.
5. Flaring
An environmental issue that must be addressed with
CBM development is the need for additional flare
testing to prove production on new wells. Flaring is
the controlled burning of gasses that are
uneconomical to be processed or sold. Flaring is
often necessary for an operator to assess a well’s
production capability and to determine the
appropriate gathering and processing systems
required to handle the well’s production. Flaring can
also occur for operational reasons, such as equipment
failures and to safely dispose of gas while depressurizing equipment.
It is reasonable to expect CBM wells to be flared for
longer periods than now occur for conventional gas
wells because of the lower pressure and volumes
associated with CBM wells. For instance, during the
often long period of dewatering the gas production
may not be sufficient to run compressors or justify
gathering line construction.
In Alberta, flaring has recently been at the forefront of
the public and landowner’s opposition to oil and gas
exploration and development. The Board extensively
regulates flaring through performance and reporting
requirements, permits and data collection as detailed
in Guide 60: Upstream Petroleum Industry Flaring
Guide.
A flare permit is required from the Board for well test
flaring when the flared gas contains more than 50
moles of hydrogen sulphide (H2S) per kilomole of gas
or the total well test volume exceeds 200, 400, or 600
thousand cubic metres, depending on the type of the
well.
Prior to planned flaring, operators are required to
provide 24 hours’ advance notice to the appropriate
EUB Field Centre, to all residents within a 3 km radius
for sour gas well tests, and to all residents within a 1.5
km radius for oil and sweet gas well tests, regardless
of the H2S content.
NEXUS
Volume 8.4
-
The Board also expects the company to address any
concerns raised by the public prior to flaring.
In British Columbia, the Drilling and Production
Regulation promulgated under the Petroleum and
Natural Gas Act prohibits flaring unless the OGC has
provided permission.
A pre-application emission dispersion study is
required for application to flare gas with more than
5% H2S, and public consultation is required for all
flare approvals. The requirements to obtain flaring
approval are set out in the OGC’s Interim Guideline
OGC 00-01: Natural Gas Flaring During Well Testing.
6. Greenhouse Gas Emission Reduction Credits
Although there may be many complex environmental
burdens facing a CBM developer, there are also some
environmental opportunities.
Methane is a greenhouse gas. So is CO2, which is
sometimes found with coalbed methane.
By
capturing methane and CO2 from a coal seam
instead of it being vented or released to the
atmosphere, a CBM developer may be able to claim,
and subsequently sell, a greenhouse gas emission
reduction credit.
Air emission reduction credit trading programs have
emerged in the United States as key environmental
policy instruments in the last decade for the control of
SO2 to curb acid rain. By capping individual SO2
sources, operators who do not use all their allocated
December, 2003
Page 29
SO2 allowances may trade the excess to operators
who are unable to stay within their allowances. This
is known as emission reduction credit trading. The
flexibility inherent in market mechanisms such as
emission reduction credit trading have been proven
to lower the cost of achieving environmental
objectives. It is proposed by some that such marketbased emission credit trading programs be extended
to greenhouse gases.
Coal also has a natural affinity to sequestering CO2,
one of six greenhouse gases covered by the Kyoto
Protocol created under the United Nations’
Framework Convention on Climate Change. The idea
is that CO2 could be injected by wells into unmined
coalbeds with the pressure from the CO2 driving out
the methane. Coal can store CO2 in twice the
volume that it stores methane. The net result, at least
in theory, is that there would be less CO2 in the
atmosphere and potentially significant CBM
production.
Obviously, the technical and logistical hurdles for
such a project could be significant, but there are no
legal or regulatory reasons prohibiting such an
adventure.
CBM developers who sequester CO2 in coalbeds
might be able to create a greenhouse gas emission
reduction credit which they could sell or use to offset
potential future obligations to reduce carbon
emissions.
At present the greenhouse gas emission reduction
credit markets are embryonic and the regulatory and
political environment in Canada very uncertain.
Future regulatory clarity is required, but with careful
planning and creativity a CBM developer may in the
future be able to capitalize on the unique
opportunities presented.
One of several hurdles facing a CBM developer
contemplating entering the emission reduction game,
either with or without CO2 sequestration, is that the
CBM developer as a potential seller of a reduction
credit will have to convince a potential buyer of the
credit that the emission reduction truly represents an
“additional” reduction in greenhouse gases above
any that would occur in the absence of the project. In
other words, if the greenhouse gas emissions would
not have occurred in the first place in the absence of
the CBM project, it is difficult to argue that there has
been a net reduction.
Page 30
Volume 8.4
-
Captured methane that would have otherwise been
vented or released from a coal mine will most easily
satisfy the “additionality” requirement as the methane
would clearly have been emitted into the atmosphere
but for the CBM recovery effort. It will be harder to
prove that recovery of methane from a deeper and
unmineable coal seam is “additional” as it would not
likely end up in the atmosphere in the first place.
It is important to remember that this “additionality”
requirement currently is not well-defined. Rather,
satisfaction of this requirement depends on the
characteristics of the trade in question and on the
buyer’s belief that the purchased credit will “qualify”
under whatever greenhouse gas emissions reduction
credit trading regime may ultimately be implemented
in Canada.
In the meantime, it is critical that CBM developers
seeking to create credible and marketable
greenhouse gas emission reduction credits rigorously
quantify, document, and report their purported
reductions. Even if a current market for emission
reduction credits cannot be identified, qualifying
CBM producers should still consider reporting such
reductions under the Voluntary Challenge program in
anticipation of potential future legislation and
resulting stronger markets.
G. Conclusions: Mitigating the Legal and Regulatory
Risks
Development of Western Canada’s extensive coalbed
methane resources undoubtedly presents economic,
geological, and technical challenges to which most
Canadian conventional gas operators are unfamiliar.
But legal and regulatory issues may also come into
play in attempting to successfully structure a project,
the most significant of which include confidently
obtaining the legal rights to the coalbed methane in a
complex mineral tenure system for freehold lands and
having the faith that present government policies with
respect to CBM on Crown lands remain unchanged.
Greater legislative certainty, and not just policy
pronouncements, could mitigate the title risks for
Alberta and British Columbia Crown land. Possibly,
in the absence of further legislative certainty,
unmineable coal seams capable of CBM production
will remain unexploited.
At first glance, the simplest and lowest risk route to a
successful CBM development on both freehold and
Crown lands is for the CBM developer to acquire the
rights to both the gas and the coal, thereby ensuring
December, 2003
NEXUS
the rights of the CBM regardless of how our courts in
the future might rule on the title issue. Otherwise, it
is reasonable to assume that experience in Canada
will be no different than that which has already
occurred in America, with litigation between the
holder of coal rights and the holder of the natural gas
rights. One might even imagine persons specifically
seeking unleased coal rights after the gas rights holder
has taken the exploration and drilling risks for a CBM
play and commenced the expensive dewatering
activities on significant CBM reserves. However, in a
practical sense, having to operate under two leases –
one for the coal and one for the gas – could be
administratively complex (and perhaps impossible)
unless both leases have a similarity of terms (ie.
commencement date, habendum clause, royalty
provisions, etc.).
The highest risk situations (and perhaps the area for
the CBM developer to avoid) are lands which are
subject to existing or pending coal mining operations.
There the coalbed gas developer should attempt to
negotiate with the coal rights owner to allow for
orderly and economic development of both the coal
and the methane resources.
Where CBM rights are acquired from a fee simple
mineral owner by way of a lease, the draftsperson
should strive to clarify which operations associated
with CBM development, such as dewatering, will
automatically continue the lease beyond its primary
term and in which instances a shut-in payment may
be made to “save” the lease. Mitigation of the risk
that a lease could expire in mid-development before
production is attainable by careful consideration of
the suitability of the language in the lease given the
unique aspects of CBM development. In short, one
who uses a “standard” industry conventional gas
lease may do so at their own risk. It would seem that
amendments to existing leases may be required.
environmental and public interest groups and others
can be expected. The solutions are essentially
technical in nature in that projects deploying superior
water handling and disposal technology will be less
likely to attract controversy from persons concerned
with preserving ecosystems. One has to assume that
surface disposal of the produced water will be
carefully scrutinized by both the public and
regulators.
Similarly, CBM projects which enjoy the opportunity
of utilizing existing surface infrastructures (seismic
lines, well pads, roads, pipes and facilities) should
have an advantage over projects which will
potentially adversely affect undisturbed areas.
Air emissions are an identifiable but manageable risk.
Opportunities may exist for combining CBM
extraction with carbon sequestration. A thorough
understanding of Canada’s embryonic greenhouse gas
emission reduction credit trading markets is required
as is an alertness to the changing policy and
regulatory environment in Canada.
In conclusion, although the legal and regulatory
issues discussed in this paper are far from being
resolved, and hence add to the uncertainty for CBM
development in Canada, the risks are identifiable and
generally manageable.
Alan Harvie, Partner
Macleod Dixon LLP
BARRISTERS & SOLICITORS
(403) 262-9411
[email protected]
CBM Conference - October 23 - 25, 2002
Calgary, Alberta
Thank you to Alan Harvie, Partner, Macleod Dixon LLP, for his
permission to reprint this very informative and well-written article.
The regulatory risks of permitting a project are
probably one of the most easily ascertained risks, and
therefore manageable risks, from a legal stand point.
This is because the regulators consider CBM
development akin to conventional gas development,
and generally apply the same laws, rules and policies
to CBM as they do to conventional gas.
The significant issue of handling and disposing of the
millions of litres of produced water has its own
significant legal issues and it is with respect to the
water disposal that most challenges from landowners,
NEXUS
Volume 8.4
-
December, 2003
Page 31
CAPLA BREAKFAST MEETING
Date:
February 25, 2004
Time:
7:30 am to 8:45 am
Location:
Calgary Petroleum Club (319 – 5 Avenue SW)
Ticket Price:
$20.00 (GST Included)
Registration Deadline: 4:30, Friday, February 20, 2004 (Cancellation February 23, 2004 Noon)
Topic:
Capitalizing on Consulting Contracts – In our current environment of increasing variability of workloads, the
practice of hiring project contractors and consultants is even more pronounced than ever before. The topic of
“Capitalizing on Consulting Contracts” deals with how to maximize the contributions by consulting staff and
gain exponential results from their engagement. The topic will be of interest to those who currently offer their
services as contractors as well as companies who currently engage contractors for project work.
Speaker:
Jonathan Chapman – President of Legacy Land and Title Company Inc.
Registration is on pre-paid basis only. Submit this registration form (accompanied by payment) to CAPLA 440 - 10816 Macleod
Trail S. Suite 359, Calgary AB T2J 5N8. Payment options are Cheque, VISA, MasterCard or AMEX. Cheques made payable to
CAPLA. Faxed forms will be accepted only for credit card submissions (571-0644). Register early to avoid disappointment. Provide
your name at the door to gain entrance to the event.
Company Name
Attendee Name
CHARGE TO MY:
Attendee Name
❑ VISA
❑ AMEX
Attendee Name
❑ MasterCard
Card Number:
Signature:
Card Holder Name:
Expiry Date:
Page 32
Attendee Name
Volume 8.4
-
December, 2003
NEXUS
CAPLA VOLUNTEER
RECRUITMENT
If you are interested in volunteering for CAPLA, please join us at our Volunteer Recruitment
day January 12, 2004.
You will be able to meet CAPLA’s Board of Directors, speak with each Director about their
portfolio and the types of volunteer duties required for the committee.
Date:
Time:
Location:
January 12, 2004
12:00 to 1:00
EnCana Amphitheatre
2nd Floor, Tower Centre
115 - 9th Avenue SE
Calgary AB
Bring your appetite - lunch and beverages are supplied
To register to attend this event, please complete the form below and fax it to the CAPLA
Office at 571-0644 by January 6, 2004
Name:
Company:
Phone:
Fax:
Email:
PLEASE JOIN US – WE’D LOVE TO MEET YOU
AND DISCUSS CAPLA’S VOLUNTEERING OPPORTUNITIES!
THANK YOU ENCANA
FOR DONATING THE VENUE FOR THIS EVENT
NEXUS
Volume 8.4
-
December, 2003
Page 33
PUBLIC RELATIONS
COMMITTEE UPDATE
CAPLA’s success is based on a strong vision with clear objectives and a core of very dedicated and
committed volunteers both at the Board and committee levels. The main mandate of our committee
is to manage the CAPLA image and assist in the promotion of CAPLA products and services by
providing policies, procedures, guidelines, templates and checklists. This will ensure a consistent
approach for sponsorship solicitation, promoting CAPLA and the land administration disciplines and
preparation of presentations to various stakeholders.
It is important to know how members, volunteers, other industry associations and the public perceive
us. In 2000, members were invited to participate in a Member Survey and excellent feedback and
ideas were received from 21% of the membership. A Member Roundtable was then held in Spring
2001 where additional ideas were gathered to facilitate future planning. A telephone survey of 200
members, randomly selected, was conducted in June 2003. The responses from this survey helped us
to understand our member’s perception of CAPLA and we thank all the respondents for taking the time
to participate.
The winner of the telephone survey draw for a $100 ‘The Catch’ restaurant gift certificate was Kevin
Koe at Talisman Energy.
The top 7 adjectives provided by respondents during the telephone survey were used as guidelines in
the creation of our new logo and also confirmed that CAPLA was very relevant and important to the
members. I would like to thank our committee members for the great work on the survey and input
to the logo design. Kudos to Rachel Herschfield from Folio Publications and Jeff Bryksa for the final
logo design. Thanks to the NEXUS and website committee for incorporating the new logo into the
new NEXUS masthead and the new website banner.
Our committee is now preparing a Volunteer Survey to be conducted on-line on the new website in
the first quarter of 2004. This will help CAPLA gather ideas, issues and concerns from our volunteers
to ensure we have an environment that promotes a positive experience for each volunteer.
A sponsor contact list, which will eventually be entered to a database, will be prepared and updated
by our committee. Guidelines for the use of this list, as well as letter templates, follow-up procedures,
opportunity lists and forms of sponsor recognition, will be prepared for use by any CAPLA committee
required to promote a product or service.
Respectfully submitted,
Verna Moodie
Page 34
Volume 8.4
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December, 2003
NEXUS
I SEE YOU LOOKING... MENTORSHIP
…DON’T BE AFRAID TO ASK FOR HELP
Having a mentor is a crucial key to success, but
finding a mentor may seem next to impossible. Be
open-minded about potential mentors. A good
mentor can be a man, a woman, someone with 20
years experience or none, or even your boss. The
most important factor is that you and your mentor
can comfortably exchange feedback and ideas.
You may be thinking, “I work hard, I really know my
stuff. Why do I need a mentor?”
First, mentors can give you the big picture.
Understanding performance expectations can be
tricky—particularly when there are subtle
expectations for employees in all organizations.
Mentors can also help you find a suitable style by
cluing you into the “rules of the game”—commonly
known as office politics. Navigating the political
landscape of an organization can take years to
master on your own, and avoidable mistakes can be
costly.
Also, keep in mind that even as a top performer,
getting challenging assignments can be tough.
Mentors can open doors for you by introducing you
into their networks and recommending you for highvisibility assignments and promotions.
Now you know you need a mentor. Who should you
look for?
Be strategic. Figure out what kind of coaching and
advice you need, then look for people who can give
it to you. Remember that it’s nearly impossible to find
everything you want in one person. Instead, become
the mentee of several talented people.
So, how do you find a mentor? You can start by
visiting www.caplacanada.org and looking in the
mentorship section, fill out a form and submit it or
contact those by phone that are listed on “contact
information”, to answer any questions that you have.
Make a connection, but start small.
Don’t scare off a potential mentor by calling and
asking, “Would you like to mentor me?” Try emailing or calling a potential mentor to discuss a
project she has worked on or to ask a question within
her area of expertise. Remember, get them vested
without scaring them off, invite them out for a lunch
or a coffee… BREAK THE ICE.
Volunteer to help.
Take the opportunity to strut your stuff in front of a
potential mentor. Offer to help on a project or
volunteer in a CAPLA capacity in which your mentor
is involved.
NETWORK, NETWORK, AND
NETWORK!
Once you’ve found key people and begun
developing the right relationships, keep the
following tips for being a good mentee in mind:
• Exceed performance expectations.
• Demonstrate your openness to coaching and
feedback.
• Listen carefully to your mentor’s advice and
incorporate those insights that make sense for
your career.
• Ask a lot of questions.
• Inform your mentor of significant career
accomplishments and failures.
• Share with your mentor the advice that made the
most difference for you and why.
• Give back to your mentor—be kind, don’t
criticize to others the advice you are given.
• Finally, as you progress in your career, don’t
forget to reach back. Become a mentor yourself.
Seasons Greetings from the Office
“May this holiday season bring peace and happiness to you
and your family and the New Year many blessings.”
NEXUS
Volume 8.4
-
December, 2003
Page 35
NEW SURFACE WEB LINKS ON
THE NEW WEBSITE
CAPLA would like to thank Ron Vermeulen and his staff at LandSolutions Inc. for providing us with a list of the
following links to services, information and downloadable documents that assist many in Surface Land
Administration in the performance of their daily tasks. These links will be available on our new website.
http://www3.gov.ab.ca/srd/land/lad/dl_li.html
- Caribou plan information, Public Lands handbook, environmental map information
http://www3.gov.ab.ca/srd/land/LAD/map.html
- Public Lands - Green area land use field staff contact information
http://www3.gov.ab.ca/srd/land/publiclands/res_intro.html
- Instructions on how to read a land search and the meaning of codes
http://www.fedgas.com/Admin/dynamicpage/default.cfm?PageId=2
- Provides a listing of all the Alberta Gas Co-ops and their contact and address information
http://www3.gov.ab.ca/ma/cfml/profiles/index.cfm
- Query for any local or urban authority for contact and address information.
http://www.gov.ab.ca/home/index.cfm?page=5
- Input any government employees name or partial name and receive their complete contact information
e.g. address, phone, email information, and whether EUB, ASRD, Forestry, etc.
http://www.specialareas.ab.ca/prod01.htm#Petroleum%20&%20Natural%20Gas%20Pol
- Special Areas website
http://www.elc.ab.ca/wellsite/index.cfm
- Environmental Law Centre - to order reclamation certificates
http://www3.gov.ab.ca/gs/services/lrs/index.cfm
- Land Titles Information, link to Land Titles Procedures Manual
http://www.eub.gov.ab.ca/bbs/requirements/default.htm
- EUB link to ID, IL, Guides, etc.
http://www3.gov.ab.ca/env/WATER/Legislation/Index.cfm
- Information on the Water Act, Codes of Practice
http://www3.gov.ab.ca/srd/land/publiclands/staff.html
- Provides a compiled listing of Public Lands Staff, information, etc. on Public Lands
http://www3.gov.ab.ca/srd/land/lad/ind.html
- Crown forms including Applications, Consent of Occupants, Environmental Field Report, procedures flow charts,
Land Adminstration contacts
http://www3.gov.ab.ca/env/protenf/landrec/publications.html
- Alberta Environment reclamation site, Information Letters, reports, guidelines, forms, etc.
http://www.cd.gov.ab.ca/
- Alberta Community Development
http://www.pixxures.ca/canada/index.jsp?Township=24&Range=1&Meridian=5
- Pixxures, aerial photos
Page 36
Volume 8.4
-
December, 2003
NEXUS
OLDS COLLEGE LAND ADMINISTRATION
CERTIFICATE & LAND AGENT DIPLOMA
PROGRAM UPDATE
Eighteen Administration students and twenty eight
acquisition students graduated successfully in 2003.
Our Land Administration and Land Agent programs are
governed by an Advisory Committee comprised of
industry and government personnel, organization
representatives, students and college staff. The CAPLA
representatives on the committee are Anne Hand of
CNRL and Theresa Sacha of Advantage Oil & Gas Ltd.
We would like to take this opportunity to acknowledge
the strong support and guidance these two individuals
provide to our program. In addition to sitting on the
Advisory Committee, they meet with us several times a
year and are readily available for assistance and
guidance.
We have successfully implemented some new courses
into our program: Rentals & Damages, First
Nations/Metis Land Issues, Agriculture Overview ,
Regulatory Guides & Issues and an Industry Seminar
course. They have been greatly received by both
students and the industry. We are also in the final
countdown towards implementing the on-line delivery
of the Land Agents Licensing Manual with hopes that it
will be up and running by early winter 2004.
We would also like to thank the Sundre Petroleum
Operators Group who recently gave our students an
opportunity to attend their Neighbor’s Day that was
held in late September. SPOG has also been generous
in providing us with a number of guest speakers for
our Industry Seminar course.
A number of students were invited to attend the
Synergy Conference that took place in Red Deer in
October and we express our gratitude for providing this
learning opportunity for these students. We are very
fortunate to be involved with an industry that allows
excellent opportunities for our students and program.
Our Land Agent/Administration undergraduates and
graduating students were very successful in their
searches for both summer positions and full-time or
contract positions. We publish a Student Resume book
every year and if you would like to receive a resume
book for the upcoming graduates in the spring or have
any questions about our program please contact:
Doug Peters, Coordinator, Land Agent Program
(403) 556-8278
[email protected]
Brian Christianson, Lead Instructor, Land Acquisition
(403) 556-4753
[email protected]
Bev Christman, Lead Instructor, Land Administration
(403) 556-4766
[email protected]
Tara S. Lloyd, Instructional Assistant,
Land Agent Program
(403) 556-8207
[email protected]
Finally, we are holding our 22nd Annual Reception in
Calgary at the Fairmont-Palliser Hotel in late March.
This allows the college to thank the industry for their
support and to allow our students a networking
opportunity. Please note that this is an open invitation
event. We will be publishing invitations in the industry
newsletters and on the college website later in the year.
If you would like more information or to receive a
personal invitation, please submit your contact
information to us as soon as possible. We look forward
to seeing you there.
THANK
YOU
THANK YOU
Craig Robins from the CAPLA Office extends a big Thank-You to all those who helped prepare
the NEXUS for distribution this past year. Your volunteerism is greatly appreciated.
NEXUS
Volume 8.4
-
December, 2003
Page 37
CAPLA BOARD HIGHLIGHTS
•
•
•
•
•
Guidelines for use of new LOGO are now in place.
A 10th Anniversary Gala event will be held in February 2004
A letter is being drafted in support of SPIN II
Myra Drumm Award recipients have been chosen
The 5-year education plan conceptual design presentation was given to the
Board
• The Board’s Fall Planning Session was held on November 1st, 2003.
Barbara MacBeath
Secretary, CAPLA
Talisman Energy Inc.
Minutes of the monthly CAPLA Board meetings are available to any member
upon request to the CAPLA office.
Corporate Sponsorship Opportunities
are available as follows at the CAPLA Conference 2004 “Putting the Pieces Together”:
EDUCATION SESSIONS
ADVERTISING
LUNCHEON
EXHIBITOR BOOTHS
WEBSITE
GOLF TOURNAMENT
DINNER THEATRE - “JUBILATIONS”
Current topics include:
“Coal Bed Methane – Wave of the Future”
“2004 CAPL Operating Procedure – What You Need to Know”
“Economic Evaluations and Land Decisions”
“ U.S. Land Administration- How They Do It Down South”
Delegate Showguide and registration gifts
Honorariums for speakers, lunch, table items, door prizes
Includes advertising in delegate brochure and exposure to 700+ delegates
Sponsorship of a dedicated Conference website featuring on-line registration and updated
Conference information
Sponsors for each hole, door/team prizes, lunch, dinner
Dinner, table centerpieces and door prizes
Look for further details in the New Year and updated information on the CAPLA website www.caplacanada.org
Marketing Chair: Darlene Rogers Telephone: 271-7073
Page 38
Volume 8.4
-
December, 2003
NEXUS
MEMBER INFO
CHANGES
Suzanne Artinian
Independent
To Alliance Pipeline Ltd.
Marny Harvey
Calpine Canada
To NAL Resources Limited
Carole A. Parker
Indian Oil and Gas Canada
To Viking Energy Ltd.
Darcy Bosch
Independent
To Resolution Land Services Ltd.
Kris Hauser
Independent
To True Energy Inc.
Astrid D. Smith
Marathon Canada Limited
To Crew Energy Inc.
Marcene Castella
ExxonMobil Canada Energy
To Independent
Leora Hudson
APF Energy Inc.
To Harvest Operations Corp.
Gale Sopczak
Kicking Horse Resources Ltd.
To Independent
Terri L. Charron
IBM
To EnCana Corporation
Sheri-Ann Huska
Altagas Services Inc.
To NAL Resources Limited
Kristi Weiland
Navigo Energy Inc.
To Paramount Energy Trust
Nicole Couves
Cavalier Land Ltd.
To EnCana Corporation
Denise Hutscal
Viking Energy Trust
To Anadarko Canada Corporation
NAME CHANGES
Lesley A. Craig
Independent
To 736399 Alberta Ltd.
Jennifer Jan
Marathon Canada Limited
To Husky Energy
Barb Doiron
Independent
To Addison Energy Inc.
Sue Loeffler
Independent
To Brigus Resources Ltd.
Kim Doyle
EOG Resources Canada Inc.
To Burlington Resources Canada Ltd.
Cathy J. Lotwin
Independent
To Qbyte – a division of IBM
Lawrence Fisher
Vintage Petroleum Canada, Inc.
To Rock Energy Ltd.
Melanie MacMichael
Canadian Natural Resources Limited
To Canadian Superior Energy Inc.
Heather Foster
Lexxor Energy Inc.
To Atlas Energy Ltd.
Ann Mann
Canadian Natural Resources Limited
To Samson Canada Ltd.
Peggi Guenther
Resolute Energy Inc.
To Independent
Marianne McKay
McKay Land Consultants Ltd.
To Find Energy Ltd.
Brandee Baldry
To Brandee Scarrott
Jane Guse
To Jane Millions
Dali Kukec
To Dali Courtright
Maureen Miller
To Maureen Miller-Werbisky
Elizabeth Tarr
To Elizabeth Cracco
WELCOME TO OUR NEW CAPLA MEMBERS
Mark Darrah
Jeff French
Kristy Halat
Geraldine Hampton
Ken Hollington
Shamee Hoosein
NEXUS
Sarah Munoz
Jen Tarrant
Andrea Urciuoli
Pam Yeoman
Allison Jones
Megan Lloyd
Karmen McKay
Alex McCloy
Kelly McDonald
Coreena Muise
Volume 8.4
-
December, 2003
Page 39
UPCOMING CAPL COURSES
For registration or more information on these or any other CAPL seminar,
please contact the CAPL office at 237-6635, fax 263-1620 or e-mail [email protected]
Visit www.landman.ca for the full calendar of seminars
UNDERSTANDING WELL LOGS
January 12, 2004
8:30 a.m. to 4:30 p.m.
This seminar will enable anyone to obtain a
quantitative understanding of well logs. Math content
is minimal and no previous well log experience is
needed.
Fee:
CAPL Member $350.00 plus GST
Non-Member $400.00 plus GST
AEUB GUIDE 56/60
January 14 & 15, 2004
8:30 a.m. to 4:30 p.m.
Guide 56 was updated in June 2003 – this course will
discuss the changes and updates to the Guides, along
with everything else you need to know if you are
involved with these AEUB applications.
Fee:
CAPL Member $500.00 plus GST
Non-member $600.00 plus GST
CAPL FARMOUT & ROYALTY
PROCEDURE
SASKATCHEWAN P&NG REGULATIONS
February 3, 2004
8:30 a.m. to 4:30 p.m.
This seminar will provide an overview of the
Saskatchewan Petroleum and Natural Gas
Regulations, including the land tenure system, lease
continuation, poolings & bidding on Crown land.
Fee:
CAPL Member $350.00 plus GST
Non-Member $400.00 plus GST
OIL SANDS TENURE
February 5, 2004
8:30 a.m. to 12:00 p.m.
This seminar will focus on gaining an understanding of
the current oil sands tenure regulations.
Fee:
CAPL Member $175.00 plus GST
Non-Member $225.00 plus GST
Volume 8.4
February 5, 2004
1:30 p.m. to 4:30 p.m.
This course will include a discussion of the 1983
splitting of gas rights from bitumen rights, and to gain
an understanding of current EUB concurrent
production, Information Directives and Regulations.
Fee:
CAPL Member $175.00 plus GST
Non-member $225.00 plus GST
UNDERSTANDING NG MARKETS &
MARKETING
February 10, 2004
8:30 a.m. to 4:30 p.m.
An overview of the fundamentals of gas marketing will
be provided.
Fee:
CAPL Member $350.00 plus GST
Non-Member $400.00 plus GST
ALBERTA LIMITATIONS ACT
January 26 & 27, 2004
8:30 a.m. to 4:30 p.m.
The participants in this seminar will be taken through
the document and provided explanation around
certain clauses and issues that may arise out of using
the document.
Fee:
CAPL Member $400.00 plus GST
Non-Member $475.00 plus GST
Page 40
CONCURRENT GAS BITUMEN
PRODUCTION
-
February 24, 2004
8:30 a.m. to 12:00 p.m.
Selected personnel in every department should have a
working knowledge and understanding of the Act, so
that companies do not lose valuable rights.
Fee:
CAPL Member $175.00 plus GST
Non-Member $225.00 plus GST
ECONOMIC CONSIDERATIONS FOR
LAND DEALS
February 25 & 26, 2004
8:30 a.m. to 4:30 p.m.
Will help the participants use economics to assist in
the structuring and evaluating of land deals.
Fee:
CAPL Member $450.00 plus GST
Non-Member $550.00 plus GST
Also:
Freehold Mineral Lease
Selected Developments in
Oil & Gas Law
December, 2003
March 1
March 5, 12 & 19
NEXUS
FOURTH ANNUAL
JOINT NETWORKING EVENT
WINE TASTING
Thursday, January 29, 2002
Mynt Ultralounge – 516 - 9th Ave SW
4:30 pm to 8:30 pm
$25 Ticket Includes:
great wine
appetizers
door prizes
FOR TICKETS PLEASE CONTACT:
Robyn Van den Bon
Please call 645-6557 for tickets
Deadline for tickets January 23, 2004
NEXUS
Volume 8.4
-
December, 2003
Page 41
Page 42
Volume 8.4
-
December, 2003
NEXUS
Course
Registration
Photocopy and retain for future use
CAPLA Member ❑
First Name:
Non-Member ❑
Last Name:
Corporation:
Mailing Address:
Postal Code:
E-Mail:
Phone:
Fax:
Course Name:
Date:
Fee Enclosed: $
GST: $
❑ Cheque Enclosed or Charge to my: ❑ VISA
Total: $
❑ AMEX
❑ MasterCard
Card Holder Number:
Card Holder Name:
Expiry Date:
Signature:
Please return this form with applicable fee to:
(Payment must accompany registration to confirm your place)
CAPLA’s GST 136820362
CAPLA
440 - 10816 MacLeod Trail S. Suite 359
Calgary AB T2J 5N8
Phone: 571-0640
CANCELLATION POLICY: CAPLA will reimburse course fees provided a participant withdraws in writing
(fax, email or Canada Post) 30 days prior to the date of the course. If a participant fails to cancel registration
within this time, a refund will not be issued; however, a substitute may be sent in place of the registered
participant. Companies that initially register a non-member and substitute a member will not be reimbursed
the balance of the fee. CAPLA will impose a $50.00 administration charge on all canceled registrations.
FAXED OR EMAILED REGISTRATION FORMS WILL
ONLY BE ACCEPTED FOR CREDIT CARD SUBMISSIONS
NEXUS
Volume 8.4
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December, 2003
Page 43
UPCOMING CAPLA COURSES
Saskatchewan Land Registry
Course Date(s)
February 4 or February 5, 2004
Maximum of 15 attendees in each session.
Location & Lunch
IHS Learning Centre
39th Floor Petro-Canada West
150 – 6 Avenue SW
Lunch: Included
Member Fee
$240.75 ($225.00 + $15.75 GST)
Registration Deadline*
January 27, 2004
Duration & Check-In Time
8:30 a.m. – 4:30 pm
Check-in begins 1/2 hour prior to start
Non-Member Fee
$321.00 ($300.00 + $21.00 GST)
This full day course will focus on Oil and Gas related Title searching, Interest Registration and trouble shooting of
information Packet submissions to Information Services Corporation of Saskatchewan (ISC), formerly SK Land Titles.
Learn how to easily navigate within the ISC website, amalgamate client numbers, perform Title searches, search and
print Interest (caveat) information, as well as registering, assigning and discharging an Interest.
Administration of Royalties
Course Date(s)
February 17, 2004
Location & Lunch
Location Announced in Course Confirmation Letter
Lunch: Included
Member Fee
$187.25 ($175.00 + $12.25 GST)
Registration Deadline
February 6, 2004
Duration & Check-In Time
8:30 a.m. - 4:30 p.m.
Check-in begins 1/2 hour prior to start
Non-Member Fee
$272.85 ($255.00 + $17.85 GST)
What to Bring
Participants are asked to bring a calculator. We also recommend that Land Administrators invite their Production
Accountants to attend as one of the main objectives of this course is to provide common terms of reference for Land
and Accounting groups. NOTE: Production Accountants who are members of CAPPA will be offered this course at
the CAPLA Member fee.
The focus of this course is:
1. interpretation of the royalty clauses in the land agreements (including deductions);
2. how to present this information to the Accounting department;
3. how the Accounting department applies this information; and
4. what the actual calculations will look like.
Some of the royalty types to be reviewed are Lessor Royalties; Farmor Royalties; Gross Overriding Royalties; Net
Profits Interests and Net Revenue Interests.
Analyzing Contracts - Novice
Course Date(s)
February 18, 2004
Location & Lunch
Location Announced in Course Confirmation Letter
Lunch: Included
Member Fee
$187.25 ($175.00 + $12.25 GST)
Registration Deadline
February 9, 2004
Duration & Check-In Time
8:30 a.m. - 4:30 p.m.
Check-in begins 1/2 hour prior to start
Non-Member Fee
$272.85 ($255.00 + $17.85 GST)
Through discussion led by the instructor, this course will provide a Lease Administrator and Junior Contract Analyst
with a basic knowledge of how to analyze a land agreement and apply it to the land records. Participants will also
learn to determine when earning has occurred, how the operating and accounting procedures relate to the contract,
and to document/track outstanding obligations.
Page 44
Volume 8.4
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December, 2003
NEXUS
UPCOMING CAPLA COURSES cont’d
The Alchemy of Personal Leadership - Brains, Beliefs & Behaviours at Work
Course Date(s)
Registration Deadline
March 10, 2004
March 2, 2004
Location & Lunch
Duration & Check-In Time
Location Announced in Course Confirmation Letter
8:30 a.m. - 4:30 p.m.
Lunch: Included
Check-in begins 1/2 hour prior to start
Member Fee
Non-Member Fee
$ 315.65 ($ 295.00 + $ 20.65 GST)
$ 401.25 ($375.00 + $26.25 GST)
Registration is limited to 20 participants.
In the workplace, your greatest asset is not what you know. It’s knowing who you are and how to channel your
actions to get the results you want. Real change, on a personal level, starts by examining the effects of belief systems
in your life and workplace. Acting on new working beliefs can springboard you into a future that you have created.
In this seminar you will:
• Explore the fundamental roles of brains, beliefs and behaviours in operating belief systems;
• Determine the effect of belief systems in your life and workplace;
• Learn about the importance of context and how little things can make a big difference;
• Discover how to sustain your energy and thrive in challenging situations;
• Find out the critical requirements for personal leadership;
• Identify where and how you can make a difference to your own work situation;
• Develop an action plan for a future that you have created.
Resolving Conflict
Course Date(s)
Registration Deadline
March 23, 2004
March 8, 2004
Location & Lunch
Duration & Check-In Time
Location Announced in Course Confirmation Letter
8:30 a.m. - 4:30 p.m.
Lunch: Included
Check-in begins 1/2 hour prior to start
Member Fee
Non-Member Fee
$267.50 ($250.00 + $17.50 GST)
$347.75 ($325.00 + $22.75 GST)
Registration is limited to 20 participants.
This one-day workshop deals with the causes and effects of interpersonal conflict, with particular emphasis on the
dynamics of conflict, conflict resolution styles and the cycle of conflict. Participants begin by examining how they
currently handle interpersonal conflict, learn a model for collaborative communication and then through case studies
and role-playing, consider a broad range of skills, approaches and techniques useful in solving interpersonal disputes.
Administration of EUB Guide 56
Course Date(s)
April 28, 2004
Location & Lunch
Location Announced in Course Confirmation Letter
Lunch: NOT Included
Member Fee
$133.75 ($125.00 + $8.75 GST)
Registration Deadline
April 20, 2004
Duration & Check-In Time
8:30 a.m. - 12:00 p.m. (1/2 day)
Check-in begins 1/2 hour prior to start
Non-Member Fee
$219.35 (205.00 + $14.35 GST)
This half-day course provides an understanding of EUB Guides 56 and 60 and how they affect various aspects of
surface land acquisition from an administrative perspective.
Third Party Surface Agreements
Course Date(s)
May 5, 2004
Location & Lunch
Location Announced in Course Confirmation Letter
NEXUS
Volume 8.4
Registration Deadline
April 26, 2004
Duration & Check-In Time
8:30 a.m. - 4:30 p.m.
-
December, 2003
Page 45
UPCOMING CAPLA COURSES cont’d
Lunch: Included
Member Fee
$187.25 ($175.00 + $12.25 GST)
Check-in begins 1/2 hour prior to start
Non-Member Fee
$272.85 ($255.00 + $17.85 GST)
What to Bring
Participants are encouraged to bring their own samples and questions, which will be discussed if time permits.
Calgary / Canmore Course & Field Trip
Course Date(s)
Registration Deadline
May 14, 2004
May 1, 2004
Location & Lunch
Duration & Check-In Time
Bus Tour from Calgary to Canmore which includes
7:45 a.m. – 9:00 p.m.
Continentail Breakfast, Lunch and Dinner.
Participants meet at the Heritage Park Overflow
Parking - SW Corner of Heritage Drive and 14th Street
Course Fee
$428.00 (400.00 + 28.00 GST)
Maximum 35 participants
This class must have a minimum of 20 participants to run
What to Bring
Southern Alberta’s weather can be beautiful, and, in a matter of hours, it can get ugly. Bring a hat, sun glasses, sun
screen and a day pack complete with some warm weather clothing, wind jacket and rain gear. Remember your
camera and/or camcorder.
Bad Weather Note
If weather is too disagreeable you will be contacted the evening before if the date is to change (please provide your
home or cellular telephone number on your registration form).
The course/field trip begins in Calgary, proceeds to Turner Valley, passes through the foothills and ends in Canmore
prior to returning to Calgary. En route, participants learn the basics about exploration/exploitation geology,
geophysics and engineering - how oil and gas reserves are found, extracted and marketed - as well as gaining insight
into the history of the petroleum industry and the impact changing technology has had throughout the years. From
outcrop to discovery well site, from oil pool to sour gas pool, participants are taken to some of the very spots that
changed Alberta’s history. By days end, participants will understand the basics of rock and reservoir types, seals,
traps, exploration/drilling methodologies, processing, transportation and play economics. Aside from the technical
and economical aspects of the industry, participants will also gain a comprehensive insight into the historical and
present day economic importance of the oil and gas industry within the economy of Alberta and Canada. Tours
depart from Calgary at 8:00 am and return at 9:00 pm.
Topics covered will include an overview of the various types of agreements in use, the legislation governing them as
well as a practical hands-on workshop on how to use these agreements. Additional topics include an overview of
standard requests and how to process such requests. The course will also discuss the use of CAPLA’s Master Road
Use Agreement.
Alberta Crown: Transfer & P&NG Licence Administration
Course Date(s)
May 19, 2004
Location & Lunch
Location Announced in Course Confirmation Letter
Lunch:NOT Included
Member Fee
$133.75 ($125.00 + $8.75 GST)
Registration Deadline
May 11, 2004
Duration & Check-In Time
1:00 p.m. - 4:30 p.m. (1/2 day)
Check-in begins 1/2 hour prior to start
Non-Member Fee
$219.35 (205.00 + $14.35 GST)
What to Bring
Participants are encouraged to bring their own samples and questions, which will be examined if time permits.
Page 46
Volume 8.4
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December, 2003
NEXUS
UPCOMING CAPLA COURSES cont’d
The first portion of this course will provide an overview of the administration of transfers; P&NG licences; rentals;
offset compensation and surrenders. The second portion provides hands-on experience in proper completion of
transfer forms and P&NG Licence applications for grouping and validation.
Reading Survey Plans Workshop
Course Date(s)
Registration Deadline
May 26, 2004
May 17, 2004
Location & Lunch
Duration & Check-In Time
AM in classroom
9:00 a.m. – 5:00 p.m.
Location Announced in Course Confirmation Letter
Check-in begins 1/2 hour prior to start
PM touring a wellsite
Lunch: Included
Member Fee
Non-Member Fee
$240.75 ($225.00 + $15.75 GST)
This is a MEMBERS ONLY course.
Registration is limited to 26 participants.
What to Bring
Attendees will tour a completed wellsite (not drilling). Please dress appropriately for weather conditions ensuring
warm clothing and hiking boots or similar footwear is worn.
The in-class portion of this course will provide the information required to read and interpret survey plans correctly
to ensure all required consents and agreements are identified. The field trip will enable attendees to gain valuable
field experience and bring the survey plan to “life”.
Administration of Surface Rights in Alberta
Course Date(s)
June 2 & 3, 2004
Location & Lunch
Location Announced in Course Confirmation Letter
Lunch: Included
Member Fee
$299.60 ($280.00 + $19.60 GST)
Registration Deadline
May 25, 2004
Duration & Check-In Time
8:30 a.m. – 4:30 p.m. (2 days)
Check-in begins 1/2 hour prior to start
Non-Member Fee
$385.20 ($360.00 + $25.20 GST)
Provides a review of the requirements for taking a proposed well location from its inception through to the end of
drilling and completion operations from a Surface Land Administrator’s perspective. Alberta surface lease
documentation will be the focus.
Alberta Crown: The Continuation Application Form & Case Studies
Course Date(s)
June 16, 2004
Location & Lunch
Location Announced in Course Confirmation Letter
Lunch: Included
Member Fee
$187.25 ($175.00 + $12.25 GST)
Registration Deadline
June 8, 2004
Duration & Check-In Time
9:30 a.m. - 4:00 p.m.
Check-in begins 1/2 hour prior to start
Non-Member Fee
$272.85 ($255.00 + $17.85 GST)
What to Bring
Participants are encouraged to bring their own samples and questions, which will be examined if time permits.
This course utilizes case studies to highlight the application processes for Alberta Crown lease continuations. A brief
overview of the relevant regulations will be provided to gain a better understanding of continuations. Exercises will
be used to provide hands-on experience for the successful completion of continuation applications.
NEXUS
Volume 8.4
-
December, 2003
Page 47
JANUARY
SUNDAY
MONDAY
TUESDAY
WEDNESDAY THURSDAY
1
FRIDAY
2
Election Nomination
Deadline
New Year’s Day
4
5
6
7
8
SATURDAY
3
9
10
NEXUS Deadline for
February Issue
11
12
13
14
15
16
17
18
19
20
21
22
23
24
27
28
29 CAPLA/IRWA Joint
30
31
CAPLA Voluteer
Recruitment
EnCana Amphitheatre
Luncheon Meeting @ Sheraton
Eau Claire Liz Denham on The
Privacy Act & How it Affects You
25
26
Networking Event
Wine Tasting at Myny
Ultralounge
FEBRUARY
SUNDAY
MONDAY
TUESDAY
WEDNESDAY THURSDAY
1
2
3
4
8
9
10
11
15
16
17
22
23
Course
Saskatchewan Lands
Registry Full Day Lab
5
FRIDAY
SATURDAY
6
7
12
13
14
19
20
26
27
Course
Saskatchewan Lands
Registry Full Day Lab
NEXUS Mailout
Family Day
Course
Administration of
Royalties
24
18
Course
Analyzing Contracts
Novice
25
CAPLA 10th
Anniversary GALA
Stampede Round
Up Centre
21
28
Breakfast Meeting Jonathan
Chapman on Capitalizing on
Consulting Contracts
29
MARCH
SUNDAY
7
14
MONDAY
TUESDAY
WEDNESDAY THURSDAY
1
2
3
8
9
10
15
16
4
Course
Alchemy of Personal
Leadership
11
FRIDAY
SATURDAY
5
6
12
13
NEXUS Deadline for
April Issue
17
18
19
20
24
25
26
27
AGM @ Calgary Petroleum
Club Speaker TBA
21
22
23
Course
Resolving Conflict
28
29
30
31
Printed by: First on Colour
215 - 6th Avenue SW, Calgary, AB T2P 0R2 Phone: 403 265-4477 • Fax: 403 265-4458 email: [email protected]