NEXUS - CAPLA

NEXUS

RETURN UNDELIVERABLE CANADIAN ADDRESSES TO1600, 144 – 4 Avenue S.W. Calgary, AB T2P 3N4Office email: [email protected]

PM 40825561

November 2007

ALSO IN THIS ISSUEw 2007 CAPL Operating Procedure

w CAPLA Management Nightw NOA Task Force

PROfESSIONALISmBuilding a Positive

Corporate Reputation

GOLD

SILVER

BRONZE

CAPLA Management Night 2007

CAPLA wishes to thank the sponsors, who without their support, Management Night would not be possible.

SPECIAL THANKS TO APACHE CANADA LTD.

CAPLA Office Aimée Cranston Office Manager

Michael Williamson Systems Analyst

Melody Kokai Administrative Assistant

2600, 144 – 4 Avenue S.W.

Calgary, AB T2P 3N4

Ph: (403) 571-0640 Fax: (403) 571-0644

Website: www.caplacanada.org

Office Email: [email protected]

Board of Directors President Gordon Dainard

Past President Ty Hansen

Vice-President Deb Waterhouse

Secretary/Treasurer Donald Bartier

External Relations Director Sherry Batke

Education Director Brandy Brhelle

Operations Director Jeff Bryksa

Volunteer Development Coordinator Laura Garaycochea

Board Development – Standing Chair Michelle Sportak

Certification – Standing Chair Kevin MacFarlane

CAPLA NEXUS is a publication of CAPLA

Produced by the NEXUS Committee

Director Jeff Bryksa

Editor/Chair Wendy Walker

Assistant Editor Nadine Ukueku

Editorial Team Susan Bayly, Trisha Gray,

Candi Irvine, Shelbey Poirier,

Shane Raman, Melissa Sadal

Design Folio Publication Design

Printing McAra Printing

Publication Schedule Article Submission Deadline Mailout February NEXUS January 10, 2008 February 15, 2008

Annual Report February 15, 2008 April 24, 2008

April NEXUS March 13, 2008 April 24, 2008

August NEXUS July 10, 2008 August 21, 2008

November NEXUS October 9, 2008 November 21, 2008

Effective October 10, 2007 CAPLA’s membership was 2577.

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.

IN THIS ISSUE

NEXUS November 2007

Professionalism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

External Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

CAPLA Management Night . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2007 CAPL Operating Procedure . . . . . . . . . . . . . . . . . . . . . 8

Da Judge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

CAPLA Crossword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Upcoming CAPLA Courses 2008 . . . . . . . . . . . . . . . . . . . . . 16

Premier’s Award of Excellence 2007 . . . . . . . . . . . . . . . . . 23

New Technology Chair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

CAPLA’s Lunch N Learn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Olds College Land Agent Diploma and Land Administration Certificate Programs Update . . . . . . . 26

NOA Task Force: New Learnings . . . . . . . . . . . . . . . . . . . . . 27

NOA Task Force: Recommendations . . . . . . . . . . . . . . . . . 28

CAPL Courses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Operation Desert Storm: Calgary Style . . . . . . . . . . . . . . . 33

You Wanted To Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Stretching to Reduce Injuries . . . . . . . . . . . . . . . . . . . . . . . . 36

CAPLA On The Move . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

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

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

NEXUS w November 20072

Professionalism

T he oil and gas industry is facing one of its most challenging periods ever. With the level of oil and gas activity, regulatory requirements, and land-

owner and public concerns, it is essential that those who work in this industry have the critical skills needed to build and maintain TRUST.

Sustainable access is about trust in a corporation, but a positive corporate reputation is built by the profes-sionalism of its employees or individuals who represent that corporation every day by their behaviours, choices, decisions, and actions.

So what is professionalism? To develop a workshop for CAPLA on this topic (Professionalism and 7 Habits of Highly Effective People – held September 17, 2007), I first looked to Webster’s Dictionary which defines professionalism as: The conduct, aims, or qualities that characterize or mark a profession or a professional person. I also reviewed websites, books and asked for input from members of CAPLA, CAPL, Olds College, SAIT and consulting firms like RANA Group. There were common threads or factors in what I read and heard that I believe define professionalism. These factors include: knowledge and demonstrated expertise; conduct and behaviour; personal accountabil-ity; and yes – even appearance.

To summarize further, these factors are really a balance between two things: our technical competence and our personal conduct. Consistently demonstrating high standards for both of these areas, builds our reputation as a professional, and ultimately earns the trust and respect of others.

3NEXUS w November 2007

Keeping us on the leading edge of our professionsThere have been many great initiatives taken to develop our technical skills and competence, which includes some focus on understanding and developing our personal conduct standards. Some of these are (but not limited to):

w CAPLA has the certification process implemented for contract (CPLCA) and mineral (CPMA) administra-tors with 5 years of experience, with certification for surface (CPSA) administrators to be available in the near future. Beyond the certification process CAPLA also provides an extensive variety of courses annually.

w CAPL has implemented certification programs for professional designations: Mineral Landmen – P.Land (Professional Landman) and most recently for Surface Landmen – PSL (Professional Surface Landman) which includes Ethics and Fiduciary Duties courses. Beyond the certification process, CAPL also offers an extensive variety of courses for its members.

w New organizations like CEAMS (Centre for Energy Asset Management) are developing diploma or applied degree programs. Programs will be based on asset life cycle focusing on Energy Asset Management disciplines and supplemented with general business principles.

w Educational institutions like Olds College have created the Endowed Chair role to identify stakeholder issues relating to the professionalism of land agents that will ultimately influence curriculum development to align with complex skills required in our industry.

I applaud all of the individuals across our industry along with our educational institutions, who have had the vision, initiative and commitment to ‘raise the bar’. CAPLA’s own vision related to professional development,

including the recent focus on the ‘personal conduct factor’ with regards to professionalism, is commendable. In combination, these types of programs and courses, will support the professionalism of both administrators and landmen in the oil and gas industry.

The Personal Conduct Factor: See, Think, and Act Differently – to Get Better ResultsWe spend years developing our technical knowledge through schools, programs, courses, etc. but if we looked at how much time we spent in relation to even the basic skills of communication (talking and listening); or on personal development (i.e. understanding and connect-ing to our personal views of the world that drive our actions and behaviours), I think most of us would agree that the ratio is low.

Professionals, who consistently foster trust in relationships, habitually live by consistent practices that deeply increase our effectiveness. If we want to earn respect as a professional, we need personal vision and a plan of action for accessing both the technical and personal development opportunities, to ensure we have the skills needed to deal with the complex issues and challenges without damaging relationships.

In the end, it begins with us! If you are unhappy or struggling with building high trust and/or earning the respect of others – improvement needs to start by first looking at ourselves! Personal development has often been referred to as the ‘soft skills’. In practice, however, they are the hardest to develop and act on consistently, and yet can be the quickest way to destroy trust with others.

Quick-fix solutions are not effective. To get better results – we need to do different things. Once you see and think differently, you will act differently. These consistent actions will produce greater results and personal satisfaction. W

Bente Nelson


External Relations

S ome of you may be wondering why CAPLA has not

responded to the recently released Alberta Royalty Review Report. As External Relations Director, it is my responsibility to ensure the association’s goals, strat-egy and mission are upheld through our diverse relation-ships and provide avenues to foster, facilitate, nurture, welcome, maintain, and challenge those relation-ships in alignment with our member’s mandate.

When CAPLA was first formed, the Board of Directors decided that based on the goals and objectives stated in the Association’s Charter, that it was not within CAPLA’s mandate to act in a lobbying capacity. It was felt the Association offered more value to members and government by working in partnership on administrative policies and procedures rather than regulatory policies which were already being addressed by associations whose mandate, on behalf of the industry, includes lobbying, such as SEPAC and CAPP. The Association’s Visions, Goals and Objectives were recently reviewed and updated by the previous Board of Directors and the original position on lobby-ing is still valid.

Consider this. CAPLA membership in Alberta has a much admired relationship with the Alberta PNG

Tenure Department. This is a relationship that has taken many dedicated hours and was recently awarded the Premier’s Gold Award for their work on the E-Tenure Project which comprised E-Transfers, E-Postings and E-Bidding. This didn’t happen overnight. It took over

a 100 volunteers and those volunteers came from busi-nesses supporting them to accomplish the task alongside a very dedicated govern-ment tenure department. Collaboration came because trust and credibility was estab-lished first. Relationships were allowed to flourish and all were dedicated to reaching decisions that were suitable, supportable and successful for all parties. These environments are where CAPLA is most effective and does their best work. This is an enviable position, one we are very proud of and intend to protect.

It is far more powerful that you speak as individual Albertans, read the report, make it your personal busi-ness to understand it. I encourage you to see the follow-ing links for more information. W

http://www.albertaroyaltyreview.ca/panel/final_report.pdfhttp://alberta.ca/home/598.cfmhttp://www.assembly.ab.ca/net/index.aspx?p=mla_home

Sherry BatkeExternal RelationsBoard of Directors

It was felt the association offered more value

to members and government by working

in partnership on administrative policies and procedures rather

than regulatory policies…


CAPLA Management Night

For those of you who don’t regularly attend CAPLA’S networking and social events this would have been a perfect opportunity to start. With lots

of networking and socializing time, this annual event has evolved to become as much of a reunion as a gala.

Faces new and old were on hand to enjoy a fantastic evening. After a welcome by CAPLA President, Gordon Dainard, we indulged in a sumptuous dinner by the chef and staff at The Hyatt Regency.

This year’s Myra Drumm Award recipients were also recognized for their outstanding achievements. Congratulations go out to Shelbey Poirier (SAIT), Lynn Skena (Olds), Christine Pacione (MRC) and Sean McLeod (U of C) who were presented with their achieve-

ment awards by Barbara Bogart, Myra Drumm’s daugh-ter and a Land Administrator herself.

Then we were all treated to the evenings keynote speaker, Mr. Jay Ingram, who we know from the Discovery Channel’s “Daily Planet”. Jay provided us with a unique insight as to how our minds behave, both consciously and unconsciously, while keeping things light and humorous.

Kudos to the more than 250 volunteers who give so selflessly to help make CAPLA what it is. Each volunteer in attendance was personally thanked by Laura Garaycochea, CAPLA Volunteer Development Coordinator; Gord Dainard, CAPLA President; or Donna Rector, the Event Coordinator and our host for the evening. Feedback from several people in attendance was very positive, with words of encouragement like “great flow and a good pace to the evening” and “I can’t wait to see what they have planned for us at the CAPLA Conference”. Incidentally, this is coming up soon and planning is well underway. Watch for registration information shortly after Christmas with the Conference taking place May 8th and 9th here in Calgary.

As with all our events, great times were had by all and memories will surely last until we do it again next year. W

Member Services

Myra Drumm Award WinnersL to R: Sean McLeod, Lynn Skena, Barb Bogart (Presenter), Chris Pacione, Shelbey Poirier


Phyllis Aberle

Brenda Adams

Valerie Albinati

Doha Alami

Brenda Allbright

Heather Ashdown

Audrey Atkins

Wendy Aucoin

Paula Bailly

Candace Bakay

Don Bartier

Autumn Bartlett

Sherry Batke

Susan Bayly

Donna Bell

Maureen Bell

Coleen Bencsik

David Benning

Linda Bernier

Alex Big Plume

Joanne Bil

Judy Blomdal

Brenda Bloski

Gladys Bolivar

Jillian Bollinger

Patricia Boyden

Eleanor Branagh

Gale Breen

Brandy Brhelle

Barb Bridgewater

Carla Bruce

Shelly Brunel

Barb Bryant

Jeff Bryksa

Linda Buczkowski

Wendy Bursey

John Bushnell

Marilyn Bushell

Barbara Caldwell

Shawna Campbell

Jonathan Chapman

Laury Chapman

Anna Chu

Chantelle Clark

David Clark

Heidi Clark

Nicky Cook

Wendy Cotton

Michelle Creguer

Judy Crosby

Ingrid Cunningham

Gord Dainard

Drew Daliuk

Minh Dang

Harry Dean

Toni Z. DeCosta

Debbie Degenstein

Brent Delorme

Vicki Dennis

Audrey Densham

Carol Dickin

Kathy Early

Pat Eld

Kelly Erickson

Shannon Facey

Lil Fairbourn

Marlene Ferguson

Janice Fleming

Glenn Foster

Gloria Friesen

Sacha Fritz

Cindy Ganong

Laura Garaycochea

Bettina Gemsa

Nina Gesell

Anna Gherasim

Katerina Gilbert

Monica Glackin

Deborah Godfrey

Leah Graham

Marcella Grainger

Lynn Gregory

Trisha Gray

Gloria Greenstein

Charmaine Grills

Lenita Gutiw

Valerie Guzman

Ingrid Hall

Curt Hamrell

Kirk Hancherow

Ty Hansen

Teresa Hargraves

Marg Harty

Jeannie Hazen

Thank You! CAPLA Volunteers“The opportunity to learn, benefit and contribute is right here, right now. Volunteers will earn a high degree of respect and recognition from Industry. Do not underes-timate the value of your participation – everyone brings some experience or point of view that contributes to and enhances the final product. The power is that we can work on as many issues as we have volunteers.”

Spoken in the first CAPLA organizational meeting in January 1994, these words still carry forward fourteen years later, and more resounding than

ever, as opportunities to volunteer with CAPLA are rapidly increasing. The power CAPLA had this year is in over 200 volunteers who contributed to the on-going success of the organization. Without the ideas, enthusi-asm and dedication of our volunteers CAPLA would not continue to see new growth.

CAPLA would like to acknowledge the time and commitment of each volunteer, and also give a special thank you to the companies who allow their employees to donate their time to work in various volunteer posi-tions. Please help us in thanking CAPLA’s volunteers!


Shelley Henderson

Shelley Hernandez

Cliff Holmerson

Leslie Huget

Kari-Lynn Hughes

Stacey Hunchak

Sally Jackson

Wanda Janzen

Jeff Jirka

James Johnson

Linda Johnson

Craig Johnstone

Penny Jones

Victoria Jones

Dawn Jordan

Yasmin Kara

Trisha Kaspers

Carolyn Keough

Shehnaz Khan

Linda Kriff

Hannah Krtolica

Anna Kwan

Brenda Lagler

Joy Lamb

Lisa Larson

Marion Leonardo

Abby Letasy

Susan Lewis

Chris Lizotte

Denise Lokodi

Brenda Lucy

Brandi Lynch

Reney Maaskant

Kevin MacFarlane

Deidre Macht

Angela MacKinnon

Jim MacLean

Sophia Mapara

Neal Mathieson

Barry Maynard

Carolina McCausland

Molly McCrea

Pam McDougall

Julie McIntosh

Karmen McKay

Jane McKinnon

Bonnie-Lynne McLaren

Darlene McLaughlin

Linda Meade

Lori Michaels

Gary Montgomery

Verna Moodie

Debbie Morrison

Karen Morrow

Kim Morton

Alisha Musa

Glen Nazaruk

Keith Nesarquher

Sharon Nesetriege

Warren Niles

Liz Norman

Chris Pacione

Marc Pacquet

June Pardy

Jay Park

Leigha Parsons

Roxanne Parsons

Nicole Patry

Kathryn Payne

Sherry Perchaluk

Susan Perry

Collette Petit

Carrie Petrie

Susan Pinkney

Helene Pisterzi

Coralie Plouffe

Shelbey Poirier

Susan Predika

Jennifer Prevost-Liknes

Karen Pugsley

Judy Quinn

Shane Raman

Sabrina Ramcharan

Bobby-Jo Reain

Donna Rector

Lisa Regan

Lisa Reiterer

Eileen Riisberg

Anna Rose

Theresa Sacha

Melissa Sadal

Eva Saller

Julia Samoilova

William Scheers

Lynne Schellenberg

Lynn Scherger

Sarah Schnell

Rose Schwartzenberger

Jenna Scott

Velma Scott

Zenwill Sequeira

Michelle Sportak

Joanne Stansky

Linda Stock-Parnell

Melanie Storey

Charlene Suberlak

Lisa Sutherland

Meagan Sutherland

Glen E. Sveinson

Ellen Thomas

Leslie Thomas

Wendy Thomas

Nadine Ukueku

Leonardo Vargas

Ron Vermeulen

Debra Wade

Senga Wakefield

Wendy Walker

Kathy Ward

Debra Waterhouse

Jackie Watt

Timothy Wells

Ted Weryshko

Linda Westbury

Jim Wickens

Betty Winiarz

Erin Wise

Joanne Wolf

Gail Wyman

Carol York W


2007 CAPL Operating ProcedureOperation Notices And The Precedent Operation Notice Project

T he 2007 CAPL Operating Procedure was endorsed by the CAPL and CAPLA Boards in June and the SEPAC Board in September.

Additional endorsements are being sought from PASC and PJVA, to reflect the fact that the Operating Proce-dure is an industry document for which CAPL is the custodian, rather than only a land document.

The CAPL web page includes a package of materi-als in PDF format. The package includes (i) an intro-duction to the document; (ii) the text and annotations; (iii) a detailed matrix that outlines significant changes relative to the 1990 document; (iv) an overview of the major differences from the November, 2006 draft, together with a redlined version of the text and anno-tations relative to the November draft; (v) a matrix of the verbatim comments on the November draft (company codes) and our response to each individual comment; (vi) an overview of the 2007 document; and (vii) a sample election sheet.

The CAPL office has reference binders available that include the 2007 CAPL Operating Procedure materials and additional associated reference materials to facilitate the transition to the new document.

This column will be included in NEXUS for the next several issues to provide an overview of some of the major areas of change in the document.

Two major themes have permeated all versions of the Operating Procedure. One is the need to balance the needs of Operators and Non-Operators. The second is the need to balance the rights of individual parties with those of the parties collectively through the inclusion of process controls and enabling mechanisms.

Understanding these themes and their implica-tions enables users to see the Operating Procedure as much more than a detailed collection of require-ments and processes – to see it instead as an inte-grated whole in which recognizable patterns exist and outcomes are predictable.

Balancing My Rights As An Owner With Those Of The Other OwnersTo what degree is an individual Party permitted to do whatever it wants whenever it wants to optimize the value of its working interest in the joint property to its shareholders?

While a Party will generally be permitted to pursue a path of self-interest, the Operating Procedure includes controls to restrict what an individual Party can do. Examples of these controls are with respect to the handling of information, the impact of encum-brances it places on its working interest, the require-ments associated with a disposition of interest and the processes that address the ability to conduct operations independently.

I like to describe the relationship of the Parties under the Operating Procedure as similar to that of owners in a condo complex. While each of us is an owner, there are some things where the greater good of the condo owners collectively needs to be protected. While I may be able to paint my interior walls lime green, there will be safeguards in place to ensure that I can’t paint the exterior of my unit that colour!


Context For An Independent OperationShould a Party be permitted to proceed independently with an operation if the Parties are misaligned on the nature, location or timing of the operation?

If we say no, we would basically see a lowest common denomi-nator approach to the exploitation of the Joint Lands, as no Party could proceed differently than the preferred approach of the most passive owner. This would give enormous leverage to a passive owner, and potentially encourage abuse. This would also see us deny an owner the basic right to make investments to enhance the value of its working interest.

Given these factors, it has become accepted that a Party must be able to pursue operations independently. However, two types of process controls have historically been included in an Independent Operations Article for the protection of the other Parties – (i) controls on the process through which an independent operation may be proposed and conducted; and (ii) the inclusion of consequences for non-participation that are intended not to distort investment decisions.

The Information Required To Make An Informed DecisionIgnoring for the moment the specific requirements for the information to be included in an Operation Notice, the foundation is that a Receiving Party is to receive the

information reasonably necessary for it to make an informed decision about its participation in the investment opportu-nity. This would include information that enables that Party to understand such factors as: (i) the nature and scope of the proposed operation; (ii) the contemplated loca-tion and schedule; (iii) the estimated costs of the various phases of the operation; and (iv) the consequence of non-participation. This does not go so far, however, as to require a Proposing

Party to provide interpretive data explaining the techni-cal merits of the operation.

Insofar as a Proposing Party misrepresents the oper-ation in its Operation Notice or presents the required information in a way that is materially misleading, the Proposing Party faces a legal risk that a Receiving Party could make a re-election with respect to the Operation Notice. In simple terms, an election for the presented operation was not an election with respect to a materi-ally different operation (i.e., moved the location a mile, stopped drilling 300m above the target zone because of an uphole discovery, deepened 100m to an entirely different target).

Specific Requirements In An Operation NoticeThe specific items to be addressed in an Operation Notice have varied over each version of the Operating Procedure. Each version has tended to provide more

… two types of process controls have historically been included in an Independent Operations Article for the protection of the

other Parties – (i) controls on the process through which an

independent operation may be proposed and conducted; and (ii) the inclusion of consequences for

non-participation that are intended not to distort investment decisions.


specific guidance about the types of information to be included in the Operation Notice.

Subclause 1002(a) of the 1990 document, for example, required the Proposing Party to include: “(i) the nature of the operation; (ii) the proposed location of the operation; (iii) the anticipated time of commencement and estimated duration of the opera-tion; (iv) the classification, if applicable, of the opera-tion as a development well or exploratory well and the application of Clause 1010 thereto, if any; and (v) an Authority for Expenditure, provided that an Authority for Expenditure otherwise submitted hereunder shall not in itself be construed as an operation notice unless it is specifically part of an operation notice served pursuant to this Article X.”

The corresponding version of the 2007 CAPL Operating Procedure has been expanded. This is mostly to be more transparent about the linkage of the Operation Notice to other requirements in the Operating Procedure. These items include: (i) special information requirements associated with a proposed Horizontal Well; (ii) the requirement to describe the well location in the manner prescribed by the defini-tion of AFE; (iii) any reduction to the normal 30 day election period because of the special “rig on location”, “Crown sale” or “dual use well” exceptions; (iv) greater clarity about the need to identify the P&NG rights to which a contemplated Clause 10.10 forfeiture would be expected to apply; and (v) any application of the special processes for a divided well (Clause 10.05) or a dual use well (Clause 10.06).

The definition of Operation Notice is as follows:

“Operation Notice” means a notice of intention to conduct an Independent Operation that includes:

(i) its nature, including any information required under Article 8.00 for a Horizontal Well;

(ii) its proposed location, including any informa-tion required to be provided under the defini-tion of AFE about the surface and bottomhole coordinates of a well, if applicable;

(iii) its anticipated Commencement and estimated duration;

(iv) any application of Paragraph 10.02B(a), (b) or (c) to the response period therefor, including, in reasonable detail, the basis for the conclusion that such Paragraph applies;

(v) the classification, if applicable, as a Development Well or Exploratory Well and any expected application of the title preserving process in Clause 10.10 thereto, including a description of the Joint Lands to which Clause 10.10 would be expected to apply, subject to the potential application of Subclause 10.10G to any applicable disputes;

(vi) any application of the divided well status process in Clause 10.05 or the dual use process in Clause 10.06 to a well and the additional information required under the applicable Clause; and

(vii) an AFE for the proposed Independent Operation, provided that an AFE that does not form part of an Operation Notice issued under this Article 10.00 will not by itself be construed as an Operation Notice.

Notice WarsOne of the unfortunate outcomes associated with the high level of current industry activity has been an increasing level of concern about the quality and lack of consistency in Operation Notices.


This relates to such matters as the frequency with which Operation Notices do not include all required information, the lack of clarity in the Operating Procedure to address this deficiency, the resultant confusion as Parties debate perceived deficiencies, a signifi-cant increase in “notice rejection” letters and the inherent potential for abuse of the Operation Notice process by both Proposing Parties and Receiving Parties.

One suggestion received by us on the initial 2003 draft to address this growing problem was that a provi-sion should be included in the Operating Procedure so that failure to satisfy every specified requirement would cause the Operation Notice to be invalid.

While we recognized the general concern, we did not agree with the inclusion of a provision that failure to specify any single item would necessarily render an Operation Notice invalid.

The Operating Procedure has historically avoided defining the point at which an Operation Notice becomes ineffective because of either the lack of certain information or, as is more likely the case, the inclusion of insufficient information, particularly the accuracy of the AFE information. In practice, the test has ultimately been one of materiality, which is fact dependent. In some circumstances, the nature of the defect would go to the heart of the notice and render it invalid. In other circumstances, the defect would be a very minor deficiency for which the suggested outcome would create more issues than it would resolve.

Ultimately, we concluded that the potential for an Operation Notice to be invalidated on the basis of a technical-ity is inconsistent with the expectations of most users and that this would be intro-ducing one more hot button issue into the document. This is of particular concern when companies are

often motivated to search for ways to invalidate an Operation Notice solely to advance their own strat-egy of either delaying the operation or issuing their own alternative notice.

If a particular Operation Notice is so deficient that it is ineffective, the Parties should be clear about their expectations for rectification. The best approach is often to reissue it, as this provides the greatest certainty. Provision of the missing information may sometimes be preferable, though.

Precedent Operation Notice ProjectOne suggestion we received in the comments on the initial draft to mitigate this issue was to create a “Suggested Standard Form of Operation Notice” to be prepared and distributed in conjunction with the final version of the Operating Procedure.

We considered this request, but concluded that it was not desirable to attempt to prescribe a partic-ular form of Operation Notice. Ignoring the chal-lenges associated with getting industry to embrace a mandated form of this type, we determined that it would be very difficult to create any “one size fits all” solution for an area that has many potential

Ultimately, we concluded that the potential for an Operation Notice to be invalidated on the basis of a

technicality is inconsistent with the expectations of most users and that this would be introducing one more hot button issue into the document.


permutations within an Operating Procedure and over the various versions of the document.

We determined, though, that the creation of a precedent Operation Notice for potential use with this and prior versions of the Operating Procedure was a great idea. As a result, the Independent Operations Notice (ION) Committee was formed as a subcommit-tee of the Operating Procedure Committee.

Through its review of this issue, the ION Committee concluded that the creation of a package which includes a template form of Operation Notice, an annotated template and samples of common Operation Notices offered major benefits to our industry. These materials would help improve the integrity of the Operation Notices being issued and help increase the level of understanding about independent operations.

As the materials are only precedents that a company can choose to use as much or as little as it wants, the template approach also allows users to retain flexibil-ity and control with respect to their own Operation Notices and the required customization for each indi-vidual circumstance.

While it is difficult to predict the potential impact of these materials, we believe that the minimum impact will be to provide industry with a relatively easy tool that can be used to assess the suitability of existing precedents and to review Operation Notices served by other parties.

Package Available On CAPL And CAPLA Web SitesThe Operation Notice Template package was origi-nally issued in 2006. It has recently been updated to reflect the final version of the 2007 CAPL Operating Procedure, and is available in a Word format on the web pages of CAPL and CAPLA for your reference.

This package includes:(a) a template that addresses the typical types of opera-

tions conducted under an Operation Notice;

(b) an annotated template that includes detailed notes about the manner in which items have been addressed, subtleties about the Operation Notice process that may not be widely appreciated and the evolution of the Operation Notice requirements over the various versions of the CAPL Operating Procedure; and

(c) sample Operation Notices in the context of the 1990 document for each of: (i) a new drill; (ii) a completion; (iii) a sidetrack; (iv) an equipping; and (v) a production facility.

The ION Committee believes that your investment of time with these materials will provide you with many new insights on Operation Notices, and will confirm our conclusion that this is a worthwhile initiative.

We suggest that you consider these materials in the context of issues that you have faced with other forms of Operation Notice to help you assess the potential value of the materials to you. Early review also offers you the opportunity to use them to assess the suitabil-ity of your current form of Operation Notice.

We believe that this project can and will make a difference. We hope that you agree after a review of the materials.

If you have any questions on the project or the materials, please feel free to contact any member of the ION Committee. The members are: Dianne Sawatzky, Carolanne DeBiasio, Lawrence Fisher, Lorraine Grant, Lynn Gregory, Jim MacLean and Maureen Moore. W

Jim MacLean,MacLean Resource [email protected]”


Da JudgeCanadian Superior v. Crozet

Da Judge has always been under the impression that in order to continue a freehold P&NG lease beyond its primary term the actual “spudding”

of a well was required; however, in a decision back in February 1982 in Canadian Superior Oil Ltd (“CanSup”) v. Crozet Exploration Ltd. (“CEL”) the Alberta Court of Queen’s Bench contended that when bona fide, serious and timely preparations are in progress to drill a well that the lease may be continued to allow for the spudding of the well after the end of the primary term.

The Facts:w CanSup was the lessee of a valid and subsisting P&NG

Lease dated July 31, 1975 with William and Margaret Bradley as lessors (“Lease”) covering 8-30-4W5M (“Leased Lands”).

w the Lease was “for the term of five (5) years from the date hereof, the said term being hereinafter called ‘the primary term’, and so long thereafter as operations, as hereinafter defined, are conducted upon the said lands … with no cessation for more than ninety (90) consecutive days. Whenever used in this Lease, the word ‘operations’ shall mean any of the following: drilling, testing, completing … or operations for or incidental to any of the foregoing”.

w CEL acquired a “top-lease” dated November 1, 1979 from the Bradleys covering the same lands covered by the Lease.

w Surf Oils Ltd. had acquired an option to drill on the Leased Lands from CanSup and exercised that option to drill on July 22, 1980. Surf proceeded immediately to acquire the services necessary to spud the Well prior to July 30, acquired a surface lease on July 23 with construction of the access road starting on July 24. The well site was on a slope of a hill and, because

of substantial rains which raised the water level, the contractors had to haul in 3,780 yards of gravel to build, stabilize and level the well site. On July 27 and 28 the sump pits were commenced; as well as the ‘rat hole’ and ‘mouse hole’ were drilled. On July 30 the well licence was granted and the ‘rigging up’ commenced. The contractor used 4 cats instead of the normal 2 to carve and level the site. The proximity of the Red Deer River contributed to the well site problems, primarily avoiding pollution of the river due to the prevailing course of drainage from the Leased Lands.

w 11-8-30-4W5M (“Well”) was “spudded-in” at 9:00 p.m. on July 31, 1980 and continuously drilled to completion at a cost of $955,695 and commenced production during October 1980 as a Cardium gaswell.

CEL’s position:w the wording of the habendum clause ”operations for

or incidental to … (drilling) …” do not include work preparatory to drilling, and that the failure of Surf to actually break ground by “spudding-in” prior to the end of the primary term was fatal to the Lease.

w CEL contends that it is universally accepted in the petroleum industry that drilling or drilling operations commence with “spudding-in”.

w CEL pointed to a letter dated July 14, 1980 from CanSup to Surf stating “it is also understood that the well must ‘spud’ before July 31, 1980 if Surf elects to drill” and also pointed to the wording in the drilling contract.

CanSup’s position:w the practice of the oil and gas industry is not vital in

this issue as there is no evidence that the lessors were part of the industry.

w the Lease must be interpreted in accordance with its terms and not on the basis of terminology in the drill-ing contract.

w the language in the habendum clause of the Lease is such as to continue the lease term beyond midnight


on July 30, 1980 and, in fact, by reason of produc-tion having been reached and maintained, the Lease remains to this date, valid and subsisting.

Judge’s ruling:w the Judge ruled in favor of CanSup and advised that

the actual breaking of ground was not necessary in this case since the efforts of Surf to attempt to spud the Well prior to July 30, 1980 were bona fide and timely and therefore enough to continue the Lease. Here’s how he came up with his decision.

w the Judge had no doubt that based on the efforts of Surf from July 22, 1980 that it was the intention of Surf to spud the Well prior to July 30 and to continuously drill the Well to completion. Surf acted as ‘expeditiously as weather, soil and site conditions would permit’.

w the Judge referred to the basic principle in Summers Oil and Gas, an authoritative American text which stated that as a general rule that actual drilling was unnecessary but the acts of moving equipment and similar acts preliminary to the beginning of the actual work of drilling when performed with the bona fide intention to proceed thereafter with diligence to drill the well, constitutes a ‘commencement or beginning of a well or drilling operations’ within the meaning of the habendum clause of the lease. The court may rule as a matter of law that these acts were sufficient to consti-tute a beginning of operations.

w this basic principle is accepted in Risvold and Mallory v. Scott and Granville Oils in a 1938 case where the lessee had a surface lease, dug a cellar, made contracts for the erection of a derrick and placed some of the equipment on the ground and showed a bona fide intention to proceed with diligence towards completion of a well, and the courts ruled the habendum clause had been complied with and lease was continued beyond the expiry date.

w in Wetter v. New Pacalta in 1951, however the court ruled against a lease being continued because the work being done in purported compliance with the lease was

a ‘mere pretence’. In this case no drilling permit had been obtained and a service drilling rig which had been brought on the site in an apparent attempt to continue the lease, was removed after drilling only 300 feet and no further drilling had been done up to the date of the trial.

w in Oil City Petroleum (Leduc) Ltd. et al v. American (Leduc) Petroleums Ltd. et al, the Supreme Court of Alberta agreed with both lower courts who ruled that the small amount of work done by the operator was not sufficient to be considered “the commencement of drilling” but only as ‘preparation to drill’ and the lessee was in default. The operator had prepared the surface and sank a 30" hole about 300' deep with a short piece of casing in it and located a water tank nearby. The Supreme Court indicated ‘the small amount of drilling … is not to be taken seriously as a compliance with its obligations …’

w the Judge also indicated that not all preparatory work would in itself be sufficient to extend the lease. The actions must be preparatory but also be subject to the following additional tests: (i) the actions must be taken in good faith with the intention of completing the drilling of an oil or gas well, (ii) the actions must be taken with reasonable diligence and dispatch and tested by the principles of good oilfield practice and (iii) the action must not be simply nominal within the concept expressed by the Supreme Court of Canada in the Oil City case. If these tests are met, it was the Judge’s view that the actions taken by Surf prior to July 30, 1980 did not have to include the actual “spudding-in” of the Well. The application of the tests would avoid the obvious harm or unfairness that could result from an operator acting with something less than good faith and successfully extending a lease on the basis of one isolated action preparatory to drilling, but removed unreasonably both in time and continuity from the completion of drilling a well.

w the Judge advised that the test may not apply to other leases which may have different wording than the key words in the habendum clause of the Lease.


Da Judge’s Thoughts:This possibility for extension of a freehold lease could be a very useful thing if used in good faith especially in today’s environment where rigs and equipment are hard to come by when you need them. A very solid ruling in my opin-ion but one must be aware that there will be companies or folks within your own companies who will try to push the envelope, so beware of letting your operations’ people (engineers) try to take advantage of this situation and try to continue a lease based on a nominal effort. W

Harry Ediger

Harry Ediger is the Vice President, Land at Storm Exploration.Mr. Ediger can be contacted by e-mail: [email protected] or telephone at 515-5554.

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CAPLA CrosswordAnswers From August 2007 NEXUS

T he Special Events Committee would also like to send a big THANK YOU to all the volunteers that made the evening a huge success. Your hard

work and attention to detail was greatly appreciated. Management Night would not have been possible with-out your support. THANK YOU!

Thank You!


Upcoming CAPLA Courses 2008See CAPLA website at www.caplacanada.org for further details and to register.

All courses will be held at the new CAPLA Education Centre, 1208, 144 – 4th Avenue S.W. (West Tower of Sunlife Plaza) unless otherwise noted.

Beyond the Lease: The Land Professional and Stakeholder Consultation

Course Date(s) Registration Deadline

February 5, 2008 January 22, 2008 @ 04:30pm

Location & Lunch Duration & Check-in Time

CAPLA Education Centre Lunch Provided

08:30 am – 04:00 pm Check-in begins 1/2 hour prior to start

Member Fee Non-Member Fee

$265.00 ($250.00 + $15.00 GST) $397.50 ($375.00 + $22.50 GST)

DescriptionGetting land access approval from stakeholders is an important issue facing today’s companies. Stakeholders are demanding more and better information and expect indus-try to respond in a structured and professional manner.

Land professionals play a significant role in commu-nicating with all types of stakeholders. It is important for all land professionals to better understand strategic stake-holder consultation and communication planning, and how both can improve relationships, further dialogue and eventually make a positive impact toward obtaining license to operate.

Attendees will learn the basics of stakeholder consul-tation and communication planning. This includes:

Communication Basics:w The communication plan, what is it? w The steps of a communication plan.w How it makes communication more effective.

Stakeholder Basics:w What is stakeholder consultation? w Why stakeholders are important. w Who are stakeholders? w How you can consult with them. w When you should consult with them? w Where should you consult with them?

Planning Basics: w The stakeholder consultation plan, how to complete

one from start to finish.

Contracts LawCourse Date(s) Registration Deadline

February 12, 2008 January 29, 2008 @ 04:30pm





$344.50 ($325.00 + $19.50 GST) $477.00 ($450.00 + $27.00 GST)

DescriptionThis course will provide participants with a working knowledge of Contract Law with examples drawn from contracts commonly used in the land industry.Students will become familiar with real property concepts including the Torrens system, Crown leases and freehold leases. Instruction regarding the origins of Canadian law and the structure of various business orga-nizations will also be included.


Professionalism and 7 Habits of Highly Effective People


February 20, 2008 Feb 6, 2008 @ 04:30pm





$371.00 ($350.00 + $21.00 GST) $503.50 ($475.00 + $28.50 GST)

DescriptionThe oil and gas industry is facing one of its most chal-lenging periods ever. With the increased level of oil and gas activity; increased regulatory requirements, and landowner and public concerns, it is essential that those who work in this industry have the critical skills needed to build and maintain TRUST.

Sustainable access is about trust in a corporation, but a positive corporate reputation is built by the ‘profes-sionalism’ of its employees or individuals who represent every day that corporation by their behaviors, choices, decisions, and actions.

It is essential then, that we understand ourselves in order to understand how effective we are in building trust with others, both within and outside of the corpo-ration. The 7 Habits of Highly Effective People is one of the most life transforming experiences you’ll ever have. By investing in this workshop, participants will learn the key principles that deeply underlie effectiveness and ultimately trust. Habitually living these principles of effectiveness will lead to superb results both personally and professionally.

Freehold Lessor EstatesCourse Date(s) Registration Deadline

February 27, 2008 Feb 13, 2008 @ 04:30pm


CAPLA Education Centre 08:30 am – 12:00 pm Check-in begins 1/2 hour prior to start


$185.50 ($175.00 + $10.50 GST) $318.00 ($300.00 + $18.00 GST)

DescriptionThis course will provide Administrators with a better understanding of the nature of different Lessor interests and the ways each interest can be affected by the rights of others or in certain situations, such as a death. Other topics to be reviewed are specific concerns regarding the Lessor, which could affect the validity of a lease and preventative/curative steps that may be taken.

Think & Thrive: Mental Mastery at WorkCourse Date(s) Registration Deadline

March 3, 2008 Feb 18, 2008 @ 04:30pm





$371.00 ($350.00 + $21.00 GST) $503.50 ($475.00 + $28.50 GST)

DescriptionWe respond to today’s rapidly changing work environ-ment in Land Administration by continually upgrading our computers, software and land systems, but how about our brain software? Adapting to standardization and streamlin-ing processes is the major task facing us today. Recent brain research shows that you can increase your abilities to perform breakthrough thinking, influence people and develop mental mastery in dealing with personal and professional challenges. In this seminar, you will:


w Determine your thinking style and find out how it affects communication and the feedback loop.

w Explore how adapting and flexing your communica-tion style can create rapport with co-workers, partners and clients.

w Find out why becoming accountable for your think-ing and actions allows you to respond quickly and creatively to change and even thrive on the changes happening.

w Discover how to overcome mental fatigue and every-day stresses in your environment.

w Identify how you can add value by discovering a sense of purpose within your company.

w Begin a plan to create opportunities and become a master learner on your professional “learning road map”.

Analyzing Contracts – NoviceCourse Date(s) Registration Deadline

March 5, 2008 February 20, 2008 @ 04:30pm





$185.50 ($175.00 + $10.50 GST) $318.00 ($300.00 + $18.00 GST)

DescriptionThrough 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.

Administration of Surface Rights in AlbertaCourse Date(s) Registration Deadline

March 13, 2008 Feb 28, 2008 @ 04:30pm





$265.00 ($250.00 + $15.00 GST) $397.50 ($375.00 + $22.50 GST)

DescriptionThis course will review the various acts, regulations, and procedures that can affect the acquisition of Crown and freehold surface rights within the Province of Alberta. Through in-depth discussion and examples, students will learn how to administer a project using industry resources available to them and why each step of an acquisition is crucial in protecting the interests of all those involved. A walkthrough of Crown online processes for dispositions, Special Areas applications, and freehold surface documentation will be presented to allow students the opportunity to question, compare, and obtain a better understanding of the requirements in each circumstance.

Engendering Success: Bridging the Gender Gap in Communication


March 17, 2008 March 3, 2008 @ 04:30pm





$344.50 ($325.00 + $19.50 GST) $477.00 ($450.00 + $27.00 GST)


DescriptionWhen it comes to Land Administration, the effective communication with clients is of primary and utmost importance. Scientific research has demonstrated that miscommunication is more likely to occur when the client is of the opposite gender due to fundamental differences in thinking and conversational styles of men and women. This course will give you strategies and techniques on how to communicate better with the other gender in work and everyday life. Understanding gender differences between men and women can lead to better communication, creativity and harmonious relationships. In this seminar, you will:

w Explore the latest scientific research on brain differ-ences between men and women and the ramifications of these differences on perceptions, priorities and behaviors.

w Examine the critical differences between men and women in thinking, problem solving, decision-making, conflict resolution and communication styles.

w Identify your own “brain software” preference, its benefits and challenges and what you can do to upgrade it.

w Learn how to overcome common sources of misunder-standings, promote harmony and gain influence.

w Evaluate your own skills in reading body language.w Expand your own repertoire of body language skills,

especially those unique to the opposite gender.

Administration of Freehold Mineral RightsCourse Date(s) Registration Deadline

March 25, 2008 March 11, 2008 @ 04:30pm





$265.00 ($250.00 + $15.00 GST) $397.50 ($375.00 + $22.50 GST)

DescriptionThis course deals with the administration of leases granted on freehold mineral rights in Alberta. Topics will include documentation requirements; rental payments; continuations and terminations; poolings; unitizations; royalties and caveats.

Dealing With Difficult PeopleCourse Date(s) Registration Deadline

April 3, 2008 March 20, 2008 @ 04:30pm





$265.00 ($250.00 + $15.00 GST) $397.50 ($375.00 + $22.50 GST)

DescriptionThe course will include an introduction of the concept of conflict and the choices we can make in response to conflict. People’s “positions” within a conflict versus their “interests” will be examined, which will provide an insight into why reasonable people act unreasonably. The session will examine the need for professionalism during difficult interactions and strategies for managing our own emotions in the face of challenge. Participants will be taught an in-depth look at “Compliance Strategies” and how to gain voluntary compliance from those more difficult people we interact with. Paraphrasing and labeling emotions will be reviewed and how we can use those skills to defuse verbally aggressive people.


Participants will review tactics used to set boundaries for others to assist in the successful management of chal-lenging situations. As well, a “last resort” strategy for employees to use when all other verbal means of conflict management have failed will also be learned.

Know What You Own – The ABCs of DOIsCourse Date(s) Registration Deadline

April 15, 2008 April 1, 2008 @ 04:30pm



09:00 am – 04:30 am Check-in begins 1/2 hour prior to start


$344.50 ($325.00 + $19.50 GST) $477.00 ($450.00 + $27.00 GST)

DescriptionThis course will outline how division of interests (DOIs) are affected by various agreements such as Mineral and Surface Agreements; Joint Operating Agreements; Working Interest Clarification Agreements; Farmout and Farmin Agreements; Poolings; Assignment and Novations/Notice of Assignments; Quit Claims; Unit Agreements; Royalty Agreements and Long Term Gas Purchase Contracts. Each session will provide a brief summary (15 minutes maximum) of each type of agree-ment and following discussions will then relate how the agreement affects a DOI at various stages in the life of a land asset. Exercises will be used to provide participants with hands-on experience.

Administration of Indian Oil & Gas Lands – Mineral


April 17, 2008 April 3, 2008 @ 04:30pm

Location Duration & Check-in Time



$185.50 ($175.00 + $10.50 GST) $318.00 ($300.00 + $18.00 GST)

DescriptionMineral – Introduction to land ownership and issues with regard to exploration and production on Indian Reservations. There will be a review of legislation pursuant to mineral rights, as well as Indian Oil and Gas Canada’s mission and mandate. We will review the types of mineral agreements, methods of disposition and issuance. Topics such as compensation, continu-ances, poolings, drainage notices and administrative transactions will be discussed. The implications of Treaty Land Entitlement for the Oil and Gas Industry will also be discussed.

Administration of Indian Oil & Gas Lands – Surface


April 17, 2008 April 3, 2008 @ 04:30pm


CAPLA Education Centre 1:00 pm – 04:30pm Check-in begins 1/2 hour prior to start


$185.50 ($175.00 + $10.50 GST) $318.00 ($300.00 + $18.00 GST)


DescriptionSurface Rights and Environmental Compliance –Introduction to land ownership and issues with regard to exploration and production on Indian Reservations. There will be a review of legislation pursuant to surface rights and the environment, as well as Indian Oil and Gas Canada’s mission and mandate. We will review vari-ous types of surface agreements, application and approval processes, compensation, abandonment and administra-tive transactions. The Canada Environment Assessment Act (CEAA) will be discussed. The implications of Treaty Land Entitlement for the Oil and Gas Industry and, more particularly, to surface rights will also be discussed.

Introduction to LandCourse Date(s) Registration Deadline

April 29, 2008 April 15, 2008 @ 04:30pm





$265.00 ($250.00 + $15.00 GST) $397.50 ($375.00 + $22.50 GST)

DescriptionThis is a basic information course. This course is an introductory overview of land, its ownership and its function within the Oil and Gas Industry. Topics covered are: Ownership of Land: History to Present, Land Titles, Legal Land Descriptions, Unique Well Identifiers, Departmental Functions Within an Oil Company and Land Agreements. There is also a basic overview of an exploration play, which will bring together the topics covered. Very specific processes and details are not covered in this course, as this is not the purpose of this course.

Notice of Assignment – NoviceCourse Date(s) Registration Deadline

May 6, 2008 April 22, 2008 @ 04:30pm




$185.50 ($175.00 + $10.50 GST) $318.00 ($300.00 + $18.00 GST)

DescriptionTopics covered include the history of, and review of, the Industry Agreement, the Assignment Procedure, Amending Agreement and the Notice of Assignment. Attendees will be provided with some specific work-related exercises, which will provide a hands-on approach to the use of the Notice of Assignment. A comprehensive binder will be provided for each participant.

Calgary/Canmore Course & Field TripCourse Date(s) Registration Deadline

May 08, 2008 April 24, 2008 @ 04:30pm


Weasel Head Parking Lot North Glenmore Park off 37th St. SW. Continental Breakfast, Lunch & Dinner Provided



$477.00 ($450.00 + $27.00 GST) $609.50 ($575.00 + $34.50 GST)

DescriptionThe 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 of 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/drill-ing 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.

Notice of Assignment – AdvancedCourse Date(s) Registration Deadline

May 27, 2008 May 13, 2008 @ 04:30pm




$185.50 ($175.00 + $10.50 GST) $318.00 ($300.00 + $18.00 GST)

DescriptionAn overview of the assignment process will be presented followed by various NOA-related exercises. This will provide the user with hands-on experience and ensure the correct application of the assignment process. A compre-hensive binder will be provided for each participant.

Third Party Surface AgreementsCourse Date(s) Registration Deadline

May 29, 2008 May 15, 2008 @ 04:30pm





$265.00 ($250.00 + $15.00 GST) $397.50 ($375.00 + $22.50 GST)

DescriptionTopics 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 and CAPP’s Facility Crossing Agreement.

Reading Survey Plans WorkshopCourse Date(s) Registration Deadline

June 5, 2008 May 22, 2008 @ 04:30pm





$265.00 ($250.00 + $15.00 GST) $397.50 ($375.00 + $22.50 GST)

DescriptionThe in-class portion of this course will provide the informa-tion 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”. W


Premier’s Award of Excellence 2007

On September 14, 2007, the recipients of the Premier’s Award Of Excellence for 2007 were announced in Edmonton. The e-Tenure Project

was given a GOLD award! This is a tremendous honor and CAPLA would

like to formally acknowledge the volunteers and their employers that supported them in taking the time to participate in this 7-year e-Tenure Project. Their input, knowledge and participation were crucial to the success of this project.

The first phase, e-Transfers, replaced a paper-driven transfer process with an electronic process, thereby reducing transfer registration time by 98 percent.

The second phase, e-Posting, allowed Industry to search records in map or text format to discover what lands or rights were available before posting them in a land sale.

The third phase, e-Bidding, involved moving from a manual bidding system to an electronic format system when bidding on land in a land sale.

Their will be a formal presentation with Premier Stelmack in Edmonton on Wednesday, November 28th, 2007 and we look forward to the following group of people travelling to Edmonton to receive their GOLD AWARD! W

Rhonda Aiello . . . . . . . . . EnCana Corporation

Jon Axford . . . . . . . . . . . . Mistahiya Resources Ltd.

Craig Bisschop . . . . . . . . Canadian Natural Resources Limited

Bob Breckon . . . . . . . . . . Miseca Resources Ltd.

Gale Breen . . . . . . . . . . . . CGE Group Inc.

Wendy Brien . . . . . . . . . . Enerplus Resources Corporation

Donna Brousseau . . . . . ConocoPhillips Canada Resources

Jacquie Burke . . . . . . . . . ConocoPhillips Canada Resources

Terri Charron . . . . . . . . . . EnCana Corporation

Jim Condon . . . . . . . . . . . Hunt Oil Company of Canada Inc

Michelle Creguer . . . . . . Taqa North Ltd.

Jacquie Currie. . . . . . . . . Independent

Derick Czember . . . . . . . Suncor Energy Inc.

Gordon Dainard . . . . . . . Independent

Cuc Dang . . . . . . . . . . . . . Husky Oil Operations Limited

Carolanne DeBiasio . . . Petro Canada Oil and Gas

Joyce Duncan . . . . . . . . . Husky Oil Operations Limited

Jaycee Forsyth . . . . . . . . EnCana Corporation

Jeff French . . . . . . . . . . . . Provident Energy Ltd.

Sherry Gerlach . . . . . . . . Petro Canada Oil and Gas

Sheila Gray . . . . . . . . . . . Canadian Natural Resources Limited

Lynn Gregory . . . . . . . . . Independent

Shemin Haji . . . . . . . . . . . Canadian Natural Resources Limited

Ty Hansen . . . . . . . . . . . . Independent

Joe Iaquinta . . . . . . . . . . Independent

Yasmin Kara. . . . . . . . . . . ConocoPhillips Canada Resources

Anita Kelly . . . . . . . . . . . . Talisman Energy Inc.

Cindy Kennedy . . . . . . . Independent

Helen Klein . . . . . . . . . . . Talisman Energy Inc.

Kevin Koopman . . . . . . . Scott Land & Lease Ltd.

Kathleen Langtry . . . . . Taqa North Ltd.

Tammie LaRocque . . . . IHS Energy (Canada) Ltd.

Gregg Larsen . . . . . . . . . Altia Energy Ltd.

Tim Lee . . . . . . . . . . . . . . . Canadian Natural Resources Limited


Marion Leonardo . . . . . ConocoPhillips Canada Resources

Luciano Limongiello . . Shell Canada Limited

Cathy Lotwin . . . . . . . . . Talisman Energy Inc.

Danita Luke . . . . . . . . . . . Scott Land & Lease Ltd.

Jim McCorquodale . . . . Direct Energy Marketing Limited

Sandi Mitchell . . . . . . . . Independent

Verna Moodie . . . . . . . . . Petro Canada Oil and Gas

Kim Morton . . . . . . . . . . . ConocoPhillips Canada Resources

Pat Morrall . . . . . . . . . . . . Talisman Energy Inc.

Heather Neustaedter . . Pioneer Natural Resources Canada Inc.

Dale Peters . . . . . . . . . . . Explorer Software Solutions Ltd.

Susan Predika . . . . . . . . . Baytex Energy Ltd.

Glenda Rawlyk . . . . . . . . EnCana Corporation

Andrea Ray . . . . . . . . . . . Scott Land & Lease Ltd.

Stephanie Reshetylo . . EnCana Corporation

Pat Rhynes . . . . . . . . . . . . Rapid Technology Corporation

Hank Riggelson . . . . . . . Rife Resources Ltd.

Judie Roberts . . . . . . . . . Canadian Natural Resources Limited

Kevin Rosamond . . . . . . Devon Canada Corporation

Mary Shearer . . . . . . . . . Sogar Resources Ltd.

Jill Shipton . . . . . . . . . . . . Independent

Carolyn Somers . . . . . . . North American Oil Sands Corp.

Tim Steeves . . . . . . . . . . . Landrite Systems Canada

Melanie Storey . . . . . . . . Independent

Frank Terner . . . . . . . . . . Shell Canada Energy

Bill Turnbull . . . . . . . . . . . Moraine Resources Ltd.

Kathy Ward . . . . . . . . . . . Canadian Natural Resources Limited

Linda Westbury . . . . . . . ConocoPhillips Canada Resources

Mike Willis . . . . . . . . . . . . Nexen Inc.

Linda Westbury


CAPLA’s Lunch ‘n’ Learn November 29, 2007

Hyatt Regency Hotel, Imperial BallroomRegistration opens at 11:30 am

Aboriginal Relations – Bee Schadeck

Learn more about Aboriginal Relations, both historical and present-day challenges, that native people face in this country.

Bee Schadeck, Sr. Aboriginal Advisor from Devon Canada Corporation gives a touching and inspiring presentation.

Come join us at the Hyatt Regency and Enter To Win a Pendleton Blanket. Pendleton’s unique blankets honor Native

American legends, symbols, traditions and ceremonies.

New Technology ChairCAPLA wishes to welcome Sandy Clements to the position of Technology Chair

Sandy graduated with the first Land Practices program at SAIT. After working in contracts analysis and receiving a Certificate in Business Process Reen-

gineering at Amoco Canada, she went on to develop the QA Department at Petroleum Information. A founding member of CAPLA, Sandy was a volunteer on the PPDM (Land) Committee. Career opportunities led her to NYC

as Production Manager in a marketing company, where she led the redesign of the GUI and accounting program; and, an award-winning software development company where she was Business Analyst and Assistant Project Manager for internal enterprise and accounting programs. After working for the YMCA Retirement Fund as Business Analyst and Data Modeler, she returned to Calgary to work on land software and client support, first at Qbyte, then at CGI. Prior to her work in Land, Sandy was a teacher. She has kept her hand in this over the years, doing training when-ever the opportunity arose. Volunteering and mentoring has been a serious part of her life. She is now semi-retired and very excited about working with the dedicated and caring members of CAPLA, and using her various skills for the good of the profession. W

Jeff BryksaOperations Director, CAPLA


Another year has begun and we can hardly believe we are almost a quarter of the way through the academic year already! We would like to take

this opportunity to thank everyone who supports our students and program. By keeping us up to date with current information, supporting our various functions, volunteering your valuable time you are providing our students with practical and current information as they prepare to enter industry.

We have successfully completed one full year at our new Calgary Campus – with 29 students success-fully graduating from the Land Administration program in June 2007. The delivery of the online Land Agents Licensing Course has been popular with the candidates who have successfully completed the course since 2004.

Our acquisition students will be completing their one-week industry practicum between December and May this year. If you would be willing to take on a practicum student at your company, please contact Brian Christianson at (403) 556-4753. We are grateful to indus-try for their ongoing provision of excellent practicum opportunities for our students.

We publish a Student Resume Book every spring. If you would like to receive a resume book of our upcom-ing graduates or if you have any questions about our program please contact:

Doug Peters, Coordinator, Land Agent & Land Administration (403) 556-8278 [email protected]

Brian Christianson, Instructor, Olds Campus (403) 556-4766 [email protected]

Geoff Jones, Instructor, Olds Campus (403) 556-4692 [email protected]

Nicola Hollamby, Instructor, Olds Campus (403) 556-4725 [email protected]

Tara S. Lloyd, Inst. Assistant, Olds Campus (403) 556-8207 [email protected]

Kristine Billings, Instructor, Olds Campus (403) 556-4766 [email protected]

Coralie Plouffe, Instructor, Calgary Campus (403) 697-6136 [email protected]

Leslie Howard, Inst. Assistant, Calgary Campus (403-697-6137 [email protected]

Anne Woods, Service Worker, Olds Campus (403) 556-4736 [email protected]

And finally, we are holding our 26th Annual Recep-tion in Calgary in late March. This is both to thank the industry for their support and to allow our students some networking opportunities (for both summer and full-time employment.) To be placed on our invitation list, please submit your contact information to us as soon as possible. We look forward to seeing you there.

Sincerely,Tara S. Lloyd, Instructional Assistant,Land Agent/Administration Program

Olds College Land Agent Diploma and Land Administration Certificate Programs Update

103 students graduated successfully in 2007:48 Acquisition students & 55 Administration students


NOA Task Force:New Learnings

In 2005, I made the leap from working on the legal side of oil and gas deals to land administration by joining EnCana’s Surface A&D Department. I put

my name out to volunteer with CAPLA on anything that might come up so that I could expand my network in my new profession and contribute to industry. What came up was the facilitation of the NOA Task Force. I jumped at the chance to learn facilitation skills on the fly and be part of a committee addressing an issue that I had some knowledge of (I had experience with prepar-ing NOAs and A&Ns on behalf of law firm clients without dedicated A&D departments. Imagine my naïve horror at being on the receiving end of a phone call from X company advising that it was not going to sign the A&N because our client hadn’t signed something X wanted from another deal. Holding documents hostage just wasn’t acceptable behaviour from a legal perspective, especially considering that we had no control over what our client may or may not have done in a previous deal).

It has been two years and I haven’t looked back. Until now. As part of the winding up process for the task force, I was asked to reflect a bit and put pen to paper. Or fingers to keyboard.

The task force has seen members come and go and its constituents have engaged in impassioned discussions over the last two years. Throughout, we were all able to maintain our professionalism. We laughed together and we each suffered information overload by rehashing and revisiting the challenges surrounding the NOA process.

The product of these meetings? A unanimous recommendation for a review of the CAPLA instructional materials for its NOA beginner and advanced courses; a draft of a new generic checklist that works as a flowchart

for processing NOAs; a chart outlining the issues, current practices and problems, and some recommended best practices. We had gone so far as to draft an article for NEXUS at the end of the first year, but then stalled because not everybody agreed with the content. In industry’s attempt to further streamline processes, companies vary in terms of what they will accept in a NOA, while other companies are very ‘by the book’. This impacted the ability of the task force members to see eye to eye.

This month’s NEXUS contains an article submitted on behalf of the current task force outlining the issues and our recommendations for handling certain situations. There are many previous NEXUS articles devoted to the topic of the Industry Agreement, Assignment Procedure, A&Ns and NOAs. The CAPLA website has an excellent online archive of these articles, searchable by keyword. You’ll see that the issues are not necessarily new. However, since more and more people are new to land administration, a visit to the archives is time well spent.

I’d like to tell you we came up with solutions for everything, but it just isn’t so. What I can tell you is that, in addition to helping the task force sort through the various NOA issues, I have learned some things about myself, about how to keep a meeting on track (and how to know when it’s so far gone as to just leave it be), and how to take copious notes that can be accu-rately deciphered into meeting minutes afterward. I have also met people who are absolutely incredible in their dedication to their profession. Thank you to the past and current members of the task force, as well as the guests who joined us from time to time and provided valuable insight. If you run into any of these people, or any other CAPLA volunteers, remember that it is these people who make CAPLA such a dynamic and influential associa-tion. Their contributions are invaluable. W

Kathryn PayneChair, NOA Task ForceCAPLA Industry Relations


NOA Task Force: Recommendations

In 1993 the Assignment Procedure was developed to provide for legally binding and enforceable assign-ment and novation of one party’s recognized contrac-

tual interest to another party under an agreement by use of a Notice of Assignment (NOA) and was created for the benefit of:

EfficiencyStandard format of document and procedure that elimi-nated the required third-party execution.

Time CertaintyThird parties have certainty of who to look to on any specific date for duties, obligations, liabilities, and day-to-day operations (operations notices, AFEs, ROFRs, NOAs, costs, revenues).

Since its inception many issues have developed in the serving and processing of NOAs causing conflict between companies, uncertainty, inconsistency of recog-nized parties, and a backlog of unprocessed NOAs. These issues are usually caused by not complying with the terms of the Assignment Procedure or by being creative in the preparation and service of NOAs, to either make them do something that they were not intended to do or to make it happen more quickly than intended. We are all partners in industry with the common objec-tive of being able to recognize the new party as soon as possible while legally protecting our company’s interest and obligations. It is imperative to consider the implica-tions of these scenarios on not only other companies but also on other areas of our business.

Refer to the following excerpts from the 1993 CAPL Assignment Procedure and the September 1, 1993 Industry Agreement relative to the current issues and this Task Force’s recommendations that follow thereafter.

September 1, 1993 Industry AgreementClause 1.01 (b) “Agreement” – means any agreement which:(i) is effective before November 15, 1993; and

(ii) relates to real property interest in oil, natural gas, related hydrocarbons or substances produced in association with them; or is an overriding royalty agreement or a pooling agreement; and

(iii) either requires, or entitles other parties to the Agreement to request (or is silent as to the right of any party to request) an Assignment and Novation Agreement.

For greater certainty, the following are excluded:(A) unit agreements and unit operating agreements; and

(B) agreements which relate only to the construction, ownership or operation of tangible facilities and the interests in real property on which those tangible facilities are located, or the provision of services by or to owners of those facilities; and

(C) agreements which relate only to surface interests; and

(D) Crown or freehold petroleum and/or natural gas leases; and

(E) except for pooling agreements, agreements which relate only to produced oil, natural gas, related hydrocarbons or substances produced in association with them, such as, but not limited to, transporta-tion or marketing agreements.


1993 CAPL Assignment ProcedureClause 1.01 (b) “Agreement” – means the agreement to which this

Assignment Procedure is attached and made a part.

(c) “Assigned Interest” – means the interest in the Agreement which is the subject of an assignment and which is specified in a Notice of Assignment, but shall not include rights of the Assignor as operator.

(g) “Binding Date” – means the first day of the second calendar month following the month in which the Notice of Assignment is served in accordance with Article IV below.

(h) “Notice of Assignment” – means a notice in the form entitled Notice of Assignment attached hereto as Appendix A.

(i) “Third Party” – means the parties to the Agreement who are not the Assignor.

The following are common types of agreements to which the 1993 CAPL Assignment Procedure applies:

Operating Agreement – governs who has legal title and rights to produce petroleum substances from certain lands and zones. This agreement governs who holds a participating interest in joint lands, who has the right to participate under an operations notice, exercise on a right of first refusal, take over a surrender of joint lands or assign an interest in their participating interest. Wells are drilled to produce these petroleum substances. Participation in the drilling operation is managed under the Operating Procedure which is usually attached to the agreement. The ownership of the lands is managed under the operating agreement. Day-to-day operations and participation are managed under the Operating Procedure.

Farmout Agreement – Farmee agrees to carry out or participate in an operation on the Farmor’s lands and zones to produce petroleum substances from these zones. In return, Farmee earns an interest in the Farmor’s lands such as an NCORR payable on the percentage of production equal to Farmor’s pre-farm-out interest. After earning, a Farmout Agreement only governs who has the obligation to pay and who has the right to receive this ORR.

Pooling Agreement – entered into when additional lands are needed to form the government drilling spacing unit required to produce a well. A non cross-conveyed pooling governs production from the pooled lands. It will terminate once the pooled formations are no longer capable of production and the well is abandoned.

Royalty Agreement – governs who has the obligation to pay and who has the right to receive a royalty on petro-leum substances produced from lands and zones.

Whether preparing a NOA to serve or processing a NOA received, keep in mind that it is a legal document. Although a NOA is only two or three pages long, the rights, obligations, and liabilities tied to it can be exten-sive. Many of the actions that lead to the following issues are in direct conflict of statements contained within the NOA that your company has executed.

Minor Errors/CorrectionsNOAs often contain errors for which third parties will accept a revised replacement page correcting the error.

Issues created:w Timely receipt of a revised page (prior to binding date)

does not always occur. Most companies cannot change their records until the NOA is correct.


w Has the error and/or correction impacted the binding date? Was a ROFR missed? Was a third party missed? If so, the binding date will likely change.

w Accounting issues – if a revised page is not received prior to the binding date, then changes to accounting records will be delayed.

RecommendationReview the master agreement and all of its amendments thoroughly. Ensure that all terms of the master agree-ment and the Assignment Procedure have been complied with. Check the NOA for typographical errors. Accurate NOAs save time for everyone.

If a revised page is required, it should be sent out promptly. Address binding date implications resulting from the revision in your cover letter. Clear communica-tion achieves time certainty and clarity for everyone.

Ensure All Agreements AssignedMultiple agreements may be related to the parcel of land that you are assigning. To ensure that all of the rights, obligations, and liabilities tied to your company in the lands are included, each agreement to which the lands are subject must be assigned. If a NOA to one of these agreements is rejected or missed:

Issues created:w How does the Operator change its accounting records?

Based on documentation, production could be allocated to one party while associated costs are billed to another.

w Who are your partners in the lands? Based on docu-mentation, you may be required to serve a ROFR, an operations notice or NOA under one agreement to one party and NOAs to other agreements to another party.

w If a rejected NOA or missed assignment is not addressed in a timely fashion, major issues can develop

over time. What do you do when the party holding the contractual right no longer exists?

RecommendationEnsure that NOAs are served under each specific agree-ment affected by your transaction. If an assignment is missed, or a NOA is rejected, rectify it promptly. You do not want to retain a contractual obligation or right when you no longer own the land.

When you receive NOAs from a partner, ensure that all applicable agreements are assigned. These agreements govern who has privity of contract, and who has the specific rights or obligations unique to each agreement.

Multiple Transactions with One NOASome companies, especially in assignments to affiliated companies, try to save time and work by attempting to fit multiple transactions into one NOA. They either add addi-tional Whereas clauses in the preamble, or define multiple transfer agreements and transfer dates in their NOA.

Issues created:w Most companies reject the NOA based on failure to

use the standard form of document.

w Some companies accept the NOA and change their records ignoring the rejection.

RecommendationThe NOA is intended and structured to accommodate one transaction only. Adding recitals or additional transactions to it changes the standard form of docu-ment as required under the Assignment Procedure and cause for rejection. Once a NOA is rejected, it is of no effect. The two-month time period required between transactions compared to waiting for all parties to execute an Assignment and Novation agreement is a short time to wait.


Multiple NOAs for Same Interest with Same Binding DateExample: Company A sells an interest to Company B who immediately sells the interest to Company C. NOAs are served to third parties with covering letters as follows:

Assignor Assignee Binding DateCompany A Company B October 1, 2007Company B Company C October 1, 2007

Issues created:w Who do third parties look to on any specific date for

duties, obligations, liabilities, and day-to-day opera-tions?

w Who does the operator send bills and revenues to prior to October 1, 2007 – Company A or Company B?

w Assignees do not have rights or privity of contract until the binding date, so does Company B ever own the asset? The NOA clearly states that Assignor acts as agent for the Assignee until the binding date.

w Serving NOAs in this scenario does not comply with the terms of the Assignment Procedure. It also contra-dicts the statements contained in the NOA itself.

RecommendationIf parties choose to compel their partners to recognize their affiliate transactions they need to calculate binding dates in accordance with the legal requirements of the Assignment Procedure. On October 1, 2007, Company B can assign their interest to Company C resulting in a binding date of December 1, 2007. Or if Companies A and B are affiliated, they could keep their transac-tion internal enabling them to serve one NOA directly from Company A to Company C with a binding date of October 1, 2007.

SegregationThere is variance among companies in practice and acceptance of NOAs served to only those companies that have an interest in specific lands under agreements rather than to all parties.

Issues created:w As Assignor you want certainty of discharge and

release of all obligations and liabilities under the master agreement, but how do you know who to serve your NOA when some parties have not included you on their NOA?

w How do you verify accuracy of third parties listed on a NOA that you receive? You could request copies of segregated NOAs to validate parties listed, but this causes a lot of extra work and time and these NOAs are not binding on you. Are they valid if not served on all parties?

w To amend the master agreement, e.g. increase the expenditure limit, all parties must agree in writing. How do you know who needs to execute the amend-ment if assignments are segregated?

RecommendationUnless the master agreement has a specific provision for segregated assignments, serve all third parties to the master agreement. Segregation under an Operating Procedure relates to day-to-day operations on the lands. NOAs are served under the Assignment Procedure which does not provide for segregation of assignments based on land ownership.


Well/Wellbore Assignments/ExclusionsSome parties exclude wellbores on their NOAs in situa-tions where they retained the abandonment liability for wells drilled on the assigned lands; or a party may use the NOA to assign a wellbore to document a wellbore sale or conveyance.

A party may enter into a farmout, and decide to immediately novate their Farmee into the operating agreement rather than act on their Farmee’s behalf until earning is confirmed. They exclude the earning well/wells on their NOA. After earning is confirmed, a NOA assigning the well/wells is served.

Some parties exclude wells producing from the lands and rights that they are assigning.

Issues created:w Some reject the NOA because the wells drilled to

produce petroleum substances are part of the lands and cannot be separated from the lands from which they are producing.

w Some consider that wells become a separate inter-est under the master agreement and can be part of or excluded in a NOA

w How do you amend your land records? As third party, how do you interpret and/or monitor the assignment/exclusion?

w What happens if the producing substance or zone changes?

RecommendationA transfer agreement is an agreement between the assignor and assignee which outlines terms, condi-tions and obligations specific to those companies and that specific transaction i.e. farmout, participation, reserved royalty, purchase and sale. Since your part-ners are not privy to your transfer agreement, NOAs

are served under each agreement affected by your transaction. Each NOA addresses the rights, obliga-tions, and/or liabilities specific to the parties under that one agreement.

Retaining the abandonment liability for wells on lands that you have sold does not affect land ownership or royalty obligations. If a well is no longer required to take production from the lands, the well participants can sell and/or convey it to another party for their use. They should enter into a wellbore conveyance agreement addressing issues such as environmental and other liabili-ties and obligations, transfer of the well license, surface lease etc. This also does not affect the land ownership or royalty obligations.

In order to produce petroleum substances you must have ownership in the petroleum substance, land, and zone within the required government drilling spacing unit. If you assign your interest in the spacing unit, you no longer have a right to production from the well. If you assign part of your interest in the spacing unit, then your right to the production is diminished accordingly. The two cannot be separated. If there is a substance or producing zone that you have excluded under your transfer agreement, then the substance and applicable zone is excluded from your assignment – not the well. W

Rose SchwartzenbergerOn behalf of the NOA Task Force


CAPL CoursesFor further information or to register, please contact the CAPL office either by phone at 237-6635, email [email protected], or complete and return a registration form by fax to 263-1620. Registration forms and full course descriptions for 2008 can be found on the CAPL website at www.landman.ca.

Geophysics For Non GeophysicistsNovember 27, 2007 8:30 am. to 4:30 pm.

This seminar is designed for non-scientists who wish to acquire a basic understanding of geophysics as it is related to the oil industry. Particular emphasis will be placed on trying to provide answers that land professionals may have regarding the interpretation, uses, limits, costs, and timing issues pertaining to seismic data in Western Canada.

CAPL Member $350.00 plus GST

Non member $400.00 plus GST

New! 1990 Operating Procedure Case StudiesNovember 28 & 29, 2007 8:30 to 4:30 pm

This is a challenging interactive two-day course in which participants work through case studies on the 1990 CAPL Operating Procedure in small work groups for presentation to the larger group. The case studies address subtleties of the Operating Procedure in the context of issues that could easily arise on files, so that attendees improve their understanding of those topics. The course is also designed to build the capability of attendees to assess and resolve Operating Procedure issues more generally.

CAPL Members $450.00 plus GST

Non members $550.00 plus GST W

Operation Desert Storm: Calgary Style

Well, it’s starting already – but then again, did it ever end? Not in this Industry! My first thought that comes to mind is “Operation

Desert Storm”. Yes, we can all expect some pretty crazy times for the next 3-5 years – Calgary’s own ‘Operation Desert Storm’.

Originally Operation Desert Storm was described as the invasion that triggered a United States response called Operation DESERT SHIELD, to deter any inva-sion of Kuwait’s oil rich neighbor, Saudi Arabia, after the mechanized infantry, armor, and tank units of the Iraqi Republican Guard invaded Kuwait and seized control of that country, the morning of August 2nd 1990. Now we, as employees of the Oil and Gas industry, just need to take a deep breath, sit back and make the best of the infinite changes that will occur within our world – Operation Desert Storm – Calgary Style.

I am now preparing for my ninth (9th) merger, take over, acquisition that will personally affect me, my family and my career in the Oil and Gas business since 1983. For everyone that has gone through this or is about to, the best advice is to try to remain calm and as positive as possible. Believe it or not, every acquisition that I experienced ended with something that was just a little better for me, personally. Better with respect to a more challenging position or perhaps receiving from the new employer, greater recognition and apprecia-tion for what you can offer to the new company. And sometimes, but not always, there may be a small financial gain. More importantly, the new people you


will be introduced to and start to work with, expand-ing your circle of professional and perhaps personal friends and friendships.

So far I have survived 7 out of 8 acquisitions. The one acquisition I did not survive was in June 1995, a rather dismal time (that I recall – from around 1992-1996) for the Oil and Gas Industry as many of the prominent companies laid off hundreds of employ-ees from their payroll. Unlike other industries, when you are laid off, don’t expect a call to come back. It’s time to move on. But fear not, after receiving my first severance package, I took that opportunity to re-visit all of my options and I also decided that I could afford to take the summer off. By mid-August 1995, I contacted CAPLA job bank where I discov-ered a total of only 2 companies that were hiring Land Administrators. Yes, a whopping 2 positions in this big, great City of ours. Of course, I submitted my resume to both companies and within a week, I landed the best job I could ever imagine and with one of the most incredible companies I have had the pleasure to work for – Canadian Hunter. The rest, they say, is history again! What has really helped me through all the past, present and (soon to be) future acquisitions is establishing and then maintaining a positive attitude - whatever the outcome. The uncertainty that comes along with the times ahead, will challenge you in ways that you may not even imagine but again, I can’t stress enough, look at this as a chance to hold your head up high, expect the unexpected and welcome that chal-lenge with open arms.

Remember, you are not alone in this. As for Operation Desert Storm, on February 27, 1991, Kuwait City was declared liberated, and with allied forces having driven well into Iraq, President Bush and his advisers decided to halt the war. A cease-fire took effect at 8:00 the following morning.

Brenda Stecyk

GROUP BENEFITS REMINDER

EVERYONE BENEFITS!

CAPLA has arranged for its members to be eligible to

belong to a comprehensive benefits program, including:

Group LifeDependant Life

Accidental Death & DismembermentLong & Short Term Disability

Extended Healthcare (Major Medical & Prescription Drugs)

Vision CareDental

Health Spending Account

These benefits are available to you as a CAPLA Member, and in addition to the benefits listed

above, CAPLA members can feel free to contact Dann Kepford for quotations for personal/

corporate life insurance, disability and critical illness quotations. Dann is a broker and can

obtain quotes for the entire insurance market.

Please contact: Dann Kepford @ (403) 264-6690


CAPLAChristmas Cheer Location: Velvet at the Grand – 608 1 Street S.W.

(Heritage Building across from Petro-Canada Centre)

Date: Thursday November 29, 2007Time: 4:30 p.m. to 10:30 p.m.

Ticket Price: $45 for members, $55 for non-members

A selection of appetizers will be offered during the evening and a cash bar will be set up for your convenience.

We will be drawing for door prizes throughout the evening, please remember to bring your business cards so you can enter the draw.

“Velvet is a mix of modern and classic, contrasting elements of the theatre’s historical architecture and the restaurants’ funky trendsetting design. The lounge is the perfect place to unwind and indulge in after-work cocktails, with specialty

libations like ‘Entourage’ or ‘The Casting Couch’. From the award-winning wine list to the innovative cuisine, this distinctive venue stands out as an ideal location for corporate functions, special occasions or an intimate night out.”

http://www.crmr.com/velvet/

T he Tenure Business Unit of the Alberta Depart-ment of Energy has published frequently asked questions (FAQs) on their website at www.energy.

gov.ab.ca Our Business > Tenure > About Tenure > Tenure FAQs. Individuals responsible for land adminis-tration will find helpful information relating to:

w Petroleum and natural gas sales (including direct purchases)

w Validation and grouping of initial term licences w Continuation of leases and intermediate term licences w Unit agreements

w Offsets w Well administration w Trespass w Freehold Mineral Tax (and e-FMT)

The accompanying forms and guides used for the above application processes can also be found at www.energy.gov.ab.ca Our Business > Tenure > Tenure Forms & Reporting. For a complete list of Tenure staff able to assist you with any additional questions see www.energy.gov.ab.ca Our Business > Tenure > Tenure Contacts. W

You Wanted To Know


Stretching to Reduce Injuries

Physical activity and interactions between workers and their environments are becoming increas-ingly complex and often require prolonged

periods of keyboarding, repetitive back and/or upper extremity movements. Stretching programs are there-fore intended to reduce the severity and/or frequency of injury by increasing muscle flexibility to maintain optimum muscle length. These programs range from part of a larger organizational health and safety or wellness program, to single-person computer software, to self-managed or ‘buddy’ programs.

From an organizational standpoint, worker-managed rest breaks (particularly in a computer environment) benefits include:

w lower task disruptionw improved worker acceptancew promotion of participative management1

However, there may be a tendency to terminate the break before recovery is complete or work beyond the ‘ideal’ break/stretch period. These stretching programs can be an effective means to reduce injuries. There have been several documented articles identifying this posi-tive result. In the manufacturing setting, Subaru-Isuzu Automotive plant, implemented a stretching program twice per day for five minutes to keep muscle strains and repetitive motion injuries to a minimum. There was an estimated 30 to 40 per cent cost avoidance in rehabilita-tion costs and reports of positive morale at the work-place.2 Also, productivity and comfort levels improved when short breaks included stretching exercises.3, 4

Others have reported improved posture, joint flex-ibility, improving blood flow, and fewer sprains/strains (although no statistical data was provided).5, 6

The following criteria for stretching programs are based upon a review of literature and recommendations by the American College of Sports Medicine7:w Warm up for five minutes prior to stretching.w Exercise should be tailored to commonly performed

job duties.w Stretch regularly, 2-3 days/week, minimum:w Use static or PNF stretches.*w Hold stretch 15-30 seconds.w Do 3-4 repetitions per muscle group.


w Intensity should be to a position of mild discomfort.w Trained instructors should lead or monitor classes.w Compliance should be monitored.w Stretch at appropriate work times throughout the day.w Company must make a commitment to work time and

program overhead costs. W

* Proprioceptive neuromuscular facilitation (PNF) is where a muscle is contracted for 20 seconds, relaxed, then stretched.

Notes1. Self Management of Rest Breaks by VDT Users, Henning R.A. et

al. Proceedings of the Human Factors and Ergonomics Society 38th Annual Meeting – 1994.

2. “A Workplace Stretching Program. Physiologic and Perception Measurements Before and After Participation.” Moore, T.C. AAOHN Journal, Vol. 46, No. 12, December 1998.

3. “Frequent short rest breaks from computer work: effects on productivity and well-being at two field sites.” Henning, R.A. et al. Ergonomics, Vol. 40, No. 1, 78-91, 1997.

4. “The Design of Rest Breaks for Video Display Terminal Work: A Review of the Relevant Literature.” Swanson, Naomi G. and Sauter, Steven L. Advances in Industrial Ergonomics and Safety 1, Taylor and Francis, 1989.

5. Work-Place Stretching Programs Reduce Costly Accidents, Injuries. Occupational Health & Safety, March 1990.

6. “Cumulative trauma disorder controls: The ergonomics program at Ethicon, Inc.” Lutz, G. and Hansford, Terri H. The Journal of Hand Surgery, Vol. 12A, No. 5, Part 2, September 1987.

7. “Stretching at Work for Injury prevention: Issues, Evidence, and Recommendations.” Applied Occupational and Environmental Hygiene, Volume 18(5): 331-338, 2003.

Paolo Naccarato Ergonomist, Workers’ Compensation Board (WCB) – Alberta

CAPLA On The MoveWe’re moving up in the world!

In this case, it’s quite literal. With CAPLA’s continuing expan-

sion of its activities and requirements, we were quickly out-growing the space that we have been in for the past several years. We have moved CAPLA’s working office from the 12th floor to the 26th floor of the west tower in Sunlife Plaza. Not only are we now on the same floor as the main reception, but it is larger, and much better suited to our needs. We now have four working offices, an open work area, as well as our own small reception area. The space on the 12th floor is being renovated and will be CAPLA’s new Education Centre.

Feel free to come visit us! W

Office Ergonomics – Remembering the Basics

Workers’ Compensation Board Alberta

Office Stretching Exercises: pages 21-25

http://www.wcb.ab.ca/pdfs/ergobk/pdf

CAPLA information at a glance

November 29, 2007Lunch ’n’ Learn

Aboriginal Relations – Bee Schadeck

November 29, 2007Christmas Cheer

Velvet At The Grand608 – 1st Street S.W.

4:30 p.m. to 10:30 p.m.

January 10, 2008NEXUS Submission Deadline

May 8 and 9, 2008CAPLA Conference 2008

June 11, 2008CAPLA Annual General Meeting

Metropolitan Centre

NEXUS OnlineJust a reminder that for those members who prefer to view NEXUS online, you can chose the soft copy option under your profile.

GO TO: Edit Profile ➝ NEXUS Delivery ➝ “Deliver By Email Link”.

UPCOMING EVENTS:

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

Season’sGreetings!

NEXUS - CAPLA

Documents

Transcript of NEXUS - CAPLA