10014 nexus newsletter - capla · 2016-01-19 · nexus volume 8.4 - december, 2003 page 3 date:...

MESSAGE FROM THE PRESIDENT

In October, I attended the National Association of Leaseand Title Analysts (“NALTA”) Conference in Albuquerquein hopes of establishing a relationship between our twoassociations. I was given time to meet with NALTA’sBoard of Directors and discuss initiatives ourorganizations could work together on.

The NALTA Board was very interested in a few of theinitiatives brought forward and wanted CAPLA’s input onissues dealing with education and recognition. I haveforwarded links to the educational institutes that provideland administration training (SAIT, Mount Royal, U of C& Olds) to NALTA and have pointed out the links to thedifferent governments located on our Website. NALTAhas also requested job descriptions. If any of you arewilling to share your corporate job descriptions, pleaselet me know. I have told NALTA that our jobs varysignificantly depending on the corporation we areworking for and I would solicit job descriptions fromthose willing to provide them.

Through my discussions with NALTA’s President, MelvaThornton, it became quite clear that we are truly blessedwith the benefits CAPLA and the Canadian LandAdministration landscape are able to provide for us. Wehave four educational institutes that provide training inland administration at our doorsteps. We have theCAPLA Education Committee working on a 5-year plan to

help make our education courses more accessible andrecognized. We have numerous volunteers within ourorganization working together with our variousgovernments so that both industry and government havea clear understanding of each other’s issues andconcerns. We are an organization with the majority ofour members living and working in one central location.

I was given the opportunity to speak at one of theConference luncheons, where I passed on greetings fromCAPLA and explained why I was there. Within minutes aLease Analyst approached me looking for help from aCanadian Expert. I have set her up with an “unofficial”mentor in order to address some of her concerns.

I believe this was a fruitful trip, as not only did we makecontact with NALTA, but also the President of theNational Association of Division Order Analysts(“NADOA”) was present and seated next to me at lunch.I was able to make contact with NADOA and discusssome of the same issues raised with NALTA. Both ofthese Associations seem eager to work with CAPLA onjoint initiatives and would like to keep a relationshipgoing between the associations.

Candace BakayPresident, CAPLA

Volume 8.4 December, 2003

CAPLA Elections . . . . . . . . . . . . . . . . . . . . . . . . . 5-14

Sharing The Apache Perspective . . . . . . . . . . . . . . 15

Freehold Mineral Taxation . . . . . . . . . . . . . . . . . . . 17

Well Licence Applications – Guide 56 . . . . . . . . . . 20

CAPLA Conference 2004. . . . . . . . . . . . . . . . . . . . . 23

Petroleum Resource Centre of Ontario . . . . . . . . . 24

Coalbed Methane Development . . . . . . . . . . . . . . 26

CAPLA 10th Anniversary GALA. . . . . . . . . . . . . . . . 42

HIGHLIGHTS

CAPLA LUNCH MEETINGWill be held:

January 19, 2004 atSheraton Eau Claire

11:30 a.m. - 1:00 p.m.

Guest Speaker: Elizabeth Denhan

Topic: It’s Here! The New Privacy Act - Learn How it Affects You

See Registration Form on Page 4

NEXUS Volume 8.4 - December, 2003

TABLE OF CONTENTS

Lunch Meeting Notice. . . . . . . . . . . . . . . . . . . 3

CAPLA Elections. . . . . . . . . . . . . . . . . . . . . 5-14

Sharing The Apache Perspective . . . . . . . . . . 15

Freehold Mineral Taxation. . . . . . . . . . . . . . . 17

Well Licence Applications – Guide 56 . . . . . 20

CAPLA Conference 2004. . . . . . . . . . . . . . . . 23

Petroleum Resources Centre of Ontario . . . . 24

Legal and Regulatory Aspects ofCoalbed Methane Development . . . . . . . . . . 26

CAPLA Breakfast Meeting . . . . . . . . . . . . . . . 32

CAPLA Volunteer Recruitment . . . . . . . . . . . 33

Public Relations Committee Update . . . . . . . 34

I See You Looking – Mentorship . . . . . . . . . . 35

New Surface Web Links . . . . . . . . . . . . . . . . 36

Olds College Land AdministrationCertificate & Land Agent Diploma . . . . . . . . 37

CAPLA Board Highlights . . . . . . . . . . . . . . . . 38

Corporate Sponsorship Opportunities. . . . . . 38

Member Info Changes/New Members . . . . . 39

Upcoming CAPL Courses . . . . . . . . . . . . . . . 40

Fourth Annual Joint Networking Event . . . . . 41

CAPLA’s 10th Anniversary GALA. . . . . . . . . . 42

Upcoming CAPLA Courses . . . . . . . . . . . . . . 44

CAPLA Events Calendar . . . . . . . . . . . . . . . . .48

Effective November, 2003CAPLA’s Membership was 1,798

Deadline for nextCAPLA NEXUS:January 8, 2004

440, 10816 MacLeod Tr. S, Suite 359, Calgary, AB T2J 5N8Ph: (403) 571-0640 Fax: (403) 571-0644

Website: www.caplacanada.orgOffice Email: [email protected]

NEXUS Email: [email protected]

CAPLA NEXUSis a publication of CAPLA

Produced by the Communication Committee

NEXUS Email: [email protected]

Director: Nancy Howes-Olmstead

Editor: Cam Lockerby

Assistant. Editor: Wendy Walker

Print Coordinator: Linda Mah

Head Proofreader: Holly Evans

Administrative Assistants: Suzanne Akins Holly Evans

Content & Research Team: Norma Anderson Gloria HoyosPearl Ao Leanne QuantzDebbie Degenstein Maarnie ShakespeareJulia Haynes Nancy Wilkey

PUBLICATION SCHEDULE

MEETING DATES ARTICLE SUBMISSION DEADLINE MAILOUTJanuary 19 January 8 February 10March 16 March 11 April 20

September 28 June 10 August 24

All articles printed under an author’s name represent the views of the author.Publication neither implies approval of the opinions expressed nor accuracy of the facts stated.

Board of Directors

President Candace Bakay

Vice-President Vacant

Secretary Barbara MacBeath

Treasurer Marianne McKay

Certification Kevin MacFarlane

Communication Nancy Howes-Olmstead

Conference Val Anderson

Education Gale Breen

Events Joanna Pelletier

Government Relations Kevin L. Egan

Industry Relations Shawn McReavey

Member Services Kelly Erickson

Public Relations & Promotion Verna Moodie

Technology Kathy Ward


DATE: MONDAY, JANUARY 19, 2004

REGISTRATIONDEADLINE: Wednesday, January 14, 2004

LOCATION: Sheraton Eau Claire

TIME: 11:30 am to 1:00 pm

EVENT COST: $31.00 for Members$36.00 for Non-Members

REGISTRATION: Registration is on pre-paid basis only using the meeting registration form. Luncheonmeetings do not have assigned seating; provide your name at the door to gain entranceto the event. Register early to avoid disappointment.

TOPIC: It’s Here! The New Privacy Act - Learn How it Affects You

The Personal Information Protection and Electronics Documents Act (PIPEDA) willimpact most private sector organizations by 2004. The oil and gas industry will havenew responsibilities with respect to collecting, using and sharing personal information.Personal information includes information about employees, clients,landowners/occupants, etc.

Privacy relates to the ethics of business practices. Elizabeth will focus on the rules forLand Administration under the Personal Information Protection Act and on how to getready for compliance.

SPEAKER: Elizabeth Denham, B.A., M.A.S. – has 6 years direct experience in the management ofprivacy and data security. Prior to establishing Denham & Associates, Elizabeth wasDirector, Privacy and Legal Services for the Calgary Health Region. She started hercareer with the Region in 1997 as the organization’s first Privacy Officer. Elizabeth isan active member of the privacy community and is a member of the Research EthicsBoard of the University of Calgary. She has recently presented papers on privacy issuesand solutions at Canadian conferences such as Canadian Institute, Health InformationPrivacy (Toronto), Institute of Public Administration of Canada (Edmonton), and FOIP2001 (Edmonton). Since September 2003 she has been working as the private sectorlead for the Alberta Information and Privacy Commissioner. Her role is to lead theprivate sector Privacy Compliance Program under the Personal Information ProtectionAct.

LunchMeeting


CAPLA LUNCHEON REGISTRATIONMONDAY, JANUARY 19, 2004

Registration Deadline: Wednesday, January 14, 2004

Cancellation Deadline: Noon Friday, January 16, 2004 by fax to CAPLA @ 571-0644

Location: Sheraton Eau Claire

Time: 11:30 am to 1:00 pm

Fee: Member $31.00, Non-Member $36.00 (GST Included)

Speaker: Elizabeth Denham

Topic: It’s Here! The New Privacy Act - Learn How it Affects You

1. Registration is on a pre-paid basis only. Faxed forms will be accepted only for credit card submissions.Register early to avoid disappointment.

2. Submit completed registration form (accompanied by payment), by the registration deadline, to CAPLA 440 -10816 Macleod Trail S. Suite 359, Calgary AB T2J 5N8. Payment options are Cheque, VISA, MasterCard orAMEX. Cheques made payable to CAPLA.

3. Provide your name at the door to gain entrance to the event.Charge to my ❑ VISA ❑ MC ❑ AMEX Card Holder Name:

Card Number: Expiry Date: Signature:

COMPANY NAME: (must be filled in)

CONTACT NAME: (must be filled in) PHONE NUMBER:

CAPLA MEMBER NAME CAPLA MEMBER NAME CAPLA MEMBER NAME

NON-MEMBER GUESTS ATTENDING

Guest Name Guest Corporation Member to be seated with

PLEASE REMEMBER TO WEAR YOUR CAPLA NAME BADGE


Date: Monday, January 19, 2004Location: Sheraton Eau Claire HotelTime: 11:30 am to 1:00 pmBusiness: Revision of CAPLA By-law 13.9

Election of CAPLA Vice-President

Please be notified, that a portion of the regularly scheduled Luncheon Meeting on January 19, 2004 will be calledas a Special Meeting to vote on the proposed changes to the By-laws and the Election of Vice-President for CAPLA.

Procedure for acceptance of Vice-President and By-law Revision 13.9 is by open ballot. Voting method will be ashow of hands. A simple majority of the active members present is required for ratification of the Vice PresidentNominee and By-law Revisions.

BY-LAW CHANGES

Be it resolved that:

Article XIII Clause 13.9 to be changed from “Where a vacancy on the Board of Directors occurs pursuant toArticle XV, the remaining members of the Board of Directors may appoint a Active Member to servethe remainder of the departing Director’s term.”

CHANGE TO

Clause 13.9 “Where a vacancy on the Board of Directors occurs pursuant to Article XV, theremaining members of the Board of Directors may appoint an Active Member to serve the remainderof the departing Officer or Director’s term.”

VICE-PRESIDENT NOMINATION BIOGRAPHYName: Ty HansenRunning for: Vice-PresidentCurrent Employer: Chevron Canada ResourcesYears of Experience: 10 Years

Focus Upon Successful Attainment of Position:Help with the ongoing development of the AssociationRepresent the organization to Industry and Government AgenciesProvide leadership support to all levels of the organizationCarry out the mandate of the organization to the best of my abilityWork with other associations on common issues that CAPLA faces

Contributions to Assist in Fulfilling Position:Member of the Alberta E-Business groupMember of the B.C. Mineral Tenure CommitteeExperience in A&D, Mineral and ContractsAssisted in the development of course material for the Notice of Assignment for CAPLARegistered mentor volunteer for the CAPLA Mentor Committee

Special Meeting &Election Notice


Pursuant to Articles VII and XI of the Bylaws of the Canadian Association of Petroleum Land Administration,the following positions are available for nomination:

PresidentTreasurerEducation DirectorGovernment Relations DirectorIndustry Relations DirectorTechnology Director

Nominations may be made in writing by the submission of a CAPLA Nomination Form, signed by two (2)Members in good standing of the Association, and also signed by the nominee to signify acceptance. Suchnominations shall be delivered to the Secretary of CAPLA and Chairperson of the Nominating Committee byMonday, January 2, 2004. Each Nomination Form needs to be accompanied by a completed CAPLANomination Biography Form.

All Nominations will be published in the February NEXUS. Voting for these positions will take place atCAPLA’s Annual General Meeting on March 16th, 2004.

If you require further information, please contact the CAPLA Office at 571-0640. Nomination Forms areincluded in this Nexus.

ElectionNotice

Website and Email

Website: www.caplacanada.orgEmail: [email protected]

[email protected]

Remember to visit CAPLA's website frequently forupcoming courses not published in the Course Calendar

ALL NOMINATIONS CLOSE JANUARY 2, 2004

This form must be completed in its entirety, signed by two (2) active members of the Association, and alsosigned by the nominee signifying acceptance. Each Nomination Form must be accompanied by a completedCAPLA Nomination Biography Form. Both forms are to be submitted prior to nomination close to CAPLA bymail or fax.

TO: CAPLA SecretaryCAPLA Election Committee440 - 10816 MacLeod Trail S. Suite 359, Calgary AB T2J 5N8Phone: 571-0640, Fax: 571-0644

I, _____________________________________________, (please print) agree to let my name stand as a nomineefor the position of:

❑ PRESIDENT❑ TREASURER❑ EDUCATION DIRECTOR❑ GOVERNMENT RELATIONS DIRECTOR❑ INDUSTRY RELATIONS DIRECTOR❑ TECHNOLOGY DIRECTOR

at the CAPLA elections to be held at the Annual General Meeting, March 16th, 2004 all in accordance withArticles VII and XI of the Bylaws of the Canadian Association of Petroleum Land Administration.

Dated:Nominee’s Signature

Active Member #1 Active Member #2

Name: Name:

Signature: Signature:

NominationForm

NEXUS Volume 8.3 - October, 2003


Name:

Running for:

Current Employer:

Years of Experience:

Focus Upon Successful Attainment of Position:

Contributions to Assist in Fulfilling Position:

NominationBiography


OVERALL DUTIES OF THE EXECUTIVEPresident, Past President, Treasurer, Vice President, Secretary

The Executive of CAPLA is responsible for the conduct and orders of business for required meetings of the Boardof Directors and the general membership as stated in the Bylaws. It is accountable for adequate and accuraterecording of all decisions and Bylaw changes, financial transactions and reporting, budgets and service contracts.The Executive committee members are: Past President, President, Vice-President, Treasurer and Secretary

ExperiencePrevious experience as a Board Member is an asset. This position can be filled by a Member who is recognizedfor having solid leadership skills, is interested in the growth and progression of the Association, is interested inlearning how not-for-profit organizations run, and would find the personal growth associated with sitting on aBoard of Directors rewarding.

General• prepare agendas which include ‘Desired Outcomes’ for Board and general meetings• record minutes• record financial transactions and produce reports• assist auditor with annual report• facilitate annual budget process and prepare final budget for approval• ensure financial responsibility• document decisions and rationale• document action items from Board meetings and Planning sessions• document policies and procedures• maintain archival records and record retention policy• provide Board highlights to NEXUS and website

Budget ProcessThe budget process is reviewed each year during a Fall Planning Session for the Directors and Officers of theAssociation with the following desired outcomes:• understanding of the way unbudgeted expenses are handled throughout the year by being presented for

approval via a Project Initiation Document• understanding of the processes in place throughout the year to review and monitor the budget• general awareness and understanding of each Committee’s budget• identification of budget changes that need to be made

Committee Budget• compile• review• reporting• quarterly reviews and reporting based on actuals provided by Treasurer

Yearly Summary Of AchievementsFor presentation at the Spring Planning Session and publication in various CAPLA Media.

Volunteer RecognitionThrough presentation at Dinner or Luncheon meetings, and publication in various CAPLA Media and a yearlyspecial event (dinner, lunch) for volunteer recognition.

Meeting Attendance• monthly board meetings (approx. 1.5 hours over lunch). These meetings are held the last Tuesday of each

month except July


• meet with Advisory Council twice a year (approx. 1.5 hours over lunch)• planning sessions twice a year (full day – 6 hours) • monthly or bi-monthly committee meetings (1.5 hours)• dinner/luncheon meetings• required attendance at Annual General Meeting and Management Night• required attendance at regular dinner/luncheon meetings

Media Announcements (NEXUS, Website, Events, Conference)• NEXUS – messages from members of Executive on Association initiatives or recognition of successful projects• Website - updates, revisions/additions required to Executive WebPages • Events – preparation of PowerPoint presentation for dinner/luncheon meetings, Management Night• Conference – have a visible presence at the CAPLA booth; greet and thank all exhibitors; closing address to

attendees

Promotion• field/address membership questions, comments and suggestions• act as an ambassador for CAPLA by professionally representing the association at social events, post

secondary graduations, industry association events, Career Day events

Liaison• work with other committees, as required• work with other industry association committees, as required• ensure adequate audit trail and processes exist for the daily conduct of CAPLA business by the office service

provider

DUTIES OF THE PRESIDENT

• presides over all Board meetings and most general meetings of the membership. In general, represents theassembly, declaring its will and obeying its command in all matters and regards

• represents CAPLA with other associations, government agencies, education institutions• attends graduations, conferences, round table sessions, award ceremonies• prepares agenda and presentations for general meetings• prepares agenda and chairs Annual General Meeting and any other special meetings of the membership• reviews and approves ‘Desired Outcomes’ for agendas• attend CAPLA events, as possible• submit messages/articles for NEXUS, Annual Report, website• propose candidates for Advisory Council to Board for approval• assists with preparation of planning session and Board meeting agendas• monitors implementation of yearly plan• serves as ex-officio member of all committees• works in partnership with Directors to ensure board resolutions are carried out• calls special meetings, if necessary and requested, according to Bylaws• appoints committee chairs and recommends members for committees• works with the Nominating Committee to recruit new board members• periodically consult with board members on their roles and help them assess their performance

Guidance ProvidedEach previous Executive member, including Past President, is available to a new President as a Mentor. The Mentorrole of the previous President is to provide background information on history, policy, services and processes.Templates for agendas, minutes, presentations, Strategic Planning sessions, team building sessions are available.The CAPLA Office provides assistance with meeting arrangements, mass communication to membership and


guidance on all the activities related to the daily business activities of CAPLA. All Board Members are willing tosupport and guide newcomers to the Board of Directors and strive to function as a cohesive team. Each Executiveofficer will receive from the previous officers, the historical information about their position.

DUTIES OF THE TREASURER

• represents CAPLA with other associations, government agencies, education institutions• monitors GIC’s • prepares Treasurer’s reports for the monthly Board meetings• calculation and submission of GST• attend CAPLA events, as possible• collects all information required by Auditor to prepare the Annual Report• propose candidates for Advisory Council to Board for approval• encourage fiscal responsibility by all Executive and Directors• maintains CAPLA’s computerized accounting system• assists all Directors with budget calculations, collecting all budget information and preparing final yearly

budgets

Guidance ProvidedEach previous Executive member, is available to a new Treasurer as a Mentor. The Mentor role of the previousTreasurer is to provide background information on history, policy, services and processes. The CAPLA Officeprovides assistance with meeting arrangements, mass communication to membership and guidance on all theactivities related to the daily business activities of CAPLA. All Board Members are willing to support and guidenewcomers to the Board of Directors and strive to function as a cohesive team. Each Executive officer will receivefrom the previous officers, the historical information about their position.

OVERALL DUTIES OF A DIRECTOR

Budget ProcessThe budget process is reviewed each year during a Fall Planning Session for the Directors and Officers of theAssociation with the following desired outcomes:• understanding of the way unbudgeted expenses are handled throughout the year by being presented for

approval via a Project Initiation Document• understanding of the processes in place throughout the year to review and monitor the budget• general awareness and understanding of each Committee’s budget• identification of budget changes that need to be made

Committee Budget• compile• review• reporting• quarterly reviews and reporting based on actuals provided by Treasurer

Yearly Summary Of AchievementsFor presentation at the Spring Planning Session and publication in various CAPLA Media.

Volunteer Recognitionthrough presentation at Dinner or Luncheon meetings, publication in various CAPLA Media and yearly specialevent (dinner, lunch) for committee volunteer recognition.


Meeting Attendance• monthly board meetings alternate between lunch and dinner meetings. Lunch meetings are 1.5 hours over

lunch and dinner meetings are 2 - 4 hours beginning in the evening. These meetings are held the last Tuesdayof each month except July

• twice yearly Advisory Council meetings (time determined by the Board of Directors)• planning sessions twice a year (full day - 8 hours on a weekend)• orientation sessions once a year (full day - 8 hours on a weekend) • monthly or bi-monthly committee meetings (1.5 hours)• dinner/luncheon meetings• required attendance at Annual General Meeting and Management Night• other dinner/luncheon as interest and schedule accommodates

Media Announcements (NEXUS, Website, Events, Conference)• NEXUS - committee update article, list of volunteers, general articles about committee• Website - updates, revisions/additions required to Committee WebPages • Events - dinner/luncheon meeting committee announcements to President for presentation on PowerPoint at

meetings• Conference – committee information for display in CAPLA booth during conference

Experience No previous experience as a Director or Board member is required. This position can be filled by any Memberwho is interested in the growth and progression of the Association, in learning how not-for-profit organizationsrun, and would find the personal growth associated with sitting on a Board of Directors rewarding.

Guidance Provided Each previous Director is available to a new Director as a Mentor. The Mentor role of the previous Director is toprovide background information on policy, services and processes. The CAPLA Office is available for guidanceon issues that involve their support. All Board Members are willing to support and guide newcomers to the Boardof Directors. Some Committees also have procedure manuals for their responsibilities. Each Director will receivefrom the previous Director the historical information about their committee.

EDUCATION DIRECTOR DUTIES

Committee ObjectiveCAPLA provides opportunities for those in Land Administration and related fields to expand their knowledge base.

Currently, a curriculum (5-year plan) is being developed which will identify the skills required to carry out variousjobs within Land Administration. Once these skills have been identified, we can build our educational offeringsaround them forming a solid foundation able to meet member’s personal and corporate goals.

A realignment of the discipline of land is also being incorporated in order to capture the entire life cycle usingfour stages within land asset management, namely: 1) pre-acquisition; 2) acquisition; 3) maintenance and 4)relinquishment

It is the Education Committee’s responsibility to develop courses within these parameters that enable our membersto acquire the necessary skill sets to perform their ever-evolving duties.

Meeting Attendance• attend regular committee meetings plus two planning sessions a year;• Course Facilitators duties are outlined in the Facilitator’s Handbook.


General• submit Project Initiation Documents (PID’s) to Board for approval for courses or committee initiatives that are

outside of the approved annual budget • supervising and final approval of course calendar production as well as submission to both printer and

CAPLA’s Webmaster• supervising the process where all course requirements are met such as facilities and instructor confirmations• supervising committee in all other processes• answering member enquires relating to Education• making all decisions with respect to course cancellations or postponements• deciding/approval of promotional and gift items• setting course prices and negotiating instructor fees• committee summary report for each Board Meeting

GOVERNMENT RELATIONS DIRECTOR DUTIES

Committee ObjectiveTo identify ways to streamline processes and practices between industry and government and to influence andcreate increased effectiveness and efficiencies in all aspects of land and agreement administration.

Meeting Attendance• attend regular monthly committee meetings• attend yearly planning sessions

General• documenting procedures, guidelines and policies to improve the use and consistency of documents, forms

and processes• creating standard processes and forms, which are developed to enhance efficiencies, as well as reducing costs

in land administration for both industry and government• taking an active leadership role in discussions with government agencies to create positive working

relationships resulting in increased efficiencies for all parties

The Committee will utilize task forces, mass emails, NEXUS articles, round tables, information exchanges andCAPLA’s website as required to achieve their committee’s and/or task force’s goals

INDUSTRY RELATIONS DIRECTOR DUTIES

Committee ObjectiveTo identify ways to streamline processes and practices between industry and government and to influence andcreate increased effectiveness and efficiencies in all aspects of land and agreement administration.

Meeting Attendance• attend regular monthly committee meetings• attend yearly planning sessions

General• proposing “streamlined” or redesigned forms and processes• documenting procedures, guidelines and policies to improve the use and consistency of documents, forms

and processes• creating standard agreements and forms, which are developed to enhance efficiencies, as well as reducing

costs in land administration for industry


• creation of industry protocols that could give guidance that is practical and impartial

The Committee will utilize task forces, mass emails, NEXUS articles, round tables, information exchanges andCAPLA’s website as required to achieve their committee’s and/or task force’s goals

TECHNOLOGY DIRECTOR DUTIES

Committee ObjectiveThe mandate of the Information Systems Committee is to provide a leadership role in technology use anddevelopment, with the goal of enhancing the value of our profession and CAPLA. The Information Systemsportfolio includes the Website and Job Bank advertisements.

• increase knowledge and skills for new and existing technology within CAPLA’s membership; • increase the use of technology, and; • increase innovation through the use of technology and sharing of information.

Meeting Attendance • monthly committee meetings (approx. 1.5 hours over lunch). These meetings are scheduled for every third

Tuesday of each month• special meetings required due to specific commitments• act as scribe or facilitator on a rotating basis, circulate to minutes to committee members and prepare

committee updates for submission to newsletter and/or website• planning session once a year (1/2 day – 6 hours)

General • co-ordination of reviewing, requesting or writing articles on technology for NEXUS • share information and ideas with committee members on new technology trends• maintain vendor’s library• duties for website pages are disbursed amongst committee members (eg. Links page, Bulletin Board etc.)• assist in the setting of committee’s goals and objectives• communication with other CAPLA Committees to form synergies

DON’T FORGET TO VOTE

Special Meeting – January 19, 2004

Elections – March 16, 2004


SHARING THEAPACHE PERSPECTIVE

I was pleased to receive a request to submit anarticle for publication in the CAPLA newsletterwhich, as the logo notes, is indeed an effective linkbetween individuals and groups. As our industryexpands and changes, the onus is on us to utilizethose existing links and forge new ones in order tomeet the challenges of our ever-changingprofession. This is accomplished by sharing ideas,attending industry meetings, locating specifictraining, respecting the views of others, remainingopen to new procedures and systems and justgenerally helping and receiving help from ourindustry partners. We’re all in this together so howcan we assist in the process? Sharing the Apacheperspective may be a starting point.

Apache Canada Ltd. entered the Canadian industryupon the acquisition of DeKalb in 1994. Additionalproperty acquisitions from Phillips Petroleum,Shell, Fletcher Challenge, Conoco Phillips,Petrobank Energy and Resources, to name a few,increased our reserves and property base. Apachehas had its share of learning experiences in industryand blends a fast-paced acquisitions and divestitureculture along with exploration opportunities inCanada.

We’ve worked at bridging the gap that existedbetween some of the U.S. and Canadian companiesby combining personnel functions and examiningorganizational structure in attempting to find thebest work processes possible. We tend to approachthings in a unique way at Apache in more than onearena. In Land Administration specifically, werestructured job positions, combining dutiesdifferently than most Canadian companies and referto our Land Admin employees as Analysts instead ofAdministrators.

The Lease & Contracts Analysts are assignedgeographically and, as the title implies, areresponsible for the analysis and timely system inputof all new leases, contracts and maintenance toexisting data in the system. The L&C Analyst

responds to changes in well statuses, assimilates avariety of governmental regulations affecting leaseand contract obligations, determines obligations,reviews payments and obligations calendars,approves partner rental invoices, determinescompany mineral and fee interests, handles ownerinquiries, coordinates with co-owners on numerousissues and serves as a liaison between manyinternal departments. The L&C Analyst works inconjunction with the DOI Analyst in ensuring newand ongoing business is appropriately captured inthe system.

Our current lease system has been utilized byApache for 6 years, ensuring leasehold obligationsare met and correct payments and subsequentpartner billings issued. Producing and non-producing acreage totals are maintained,obligations monitored, calendars issued andparticipants’ interests updated. Leases are linked toapplicable contracts and producing properties.Canned retrievals aid the users in being able toimmediately access a variety of lease and paymentreports.

Key information is retrieved from the contractssystem and integrated into our accounting systemfor correct operational calculations. The analystscapture pertinent provisions affecting partnerbillings and maintain current ownership. Thecontract is indeed the starting point and is the firstpoint of integration to other internal systems priorto the setup of a producing property.

The DOI Analyst is the person solely responsible forthe calculation and maintenance of producingproperty ownership. While many of our Canadiancounterparts assign that responsibility toAccounting after Land Admin has analyzed theleases and contracts, Apache places it in the handsof the DOI Analyst as the one-source input andcontrol.

When a property is AFE’d for drilling, the DOI


Analyst establishes an expense deck in the DOIsystem that interfaces with the applicable contract,links with appropriate leases and integrates toAccounting for partner billings. When the wellbecomes producing, a revenue deck is set up whichestablishes royalty burdens and partners’ netrevenue interest. Once booked, the net revenueinterest (NRI) is the ownership upon which ownersare paid. For working interest owners, this is thepercentage after deduction of their proportionateshare of burdens. The DOI system updates leave anauditable trail at a property level providinghistorical ownership transfer information. The L&CAnalyst and DOI Analyst work hand in hand inensuring notifications are appropriately routed andtimely updates made. The DOI Analyst handlesowner and partner inquiries as well from aproducing property standpoint.

Companies in the U.S. utilize a document known asa Division Order that establishes the division ofinterest on new properties and a Transfer Ordersummarizing and verifying ownership changesbetween parties. The Division Order serves as botha notice and control process as it is circulated toroyalty owners, overriding royalty owners andworking interest parties to whom disbursements aremade. While execution of a Division Order is notmandatory for the payment of revenue proceeds, itdoes provide notice that revenue is forthcoming bythe payor at a specified ownership decimal to aparticular party at the address shown. It serves asan excellent vehicle in flushing out any interestdisputes among owners prior to first payment andprovides a historical summary of initial ownershipin the property. Transfer Orders trace the chain oftitle throughout the life of the property. Propertiesinvolving payout are also easily traced by use of a‘BPO’ and ‘APO’ Division Order. As DivisionOrders are not utilized in Canada, quite often thetask of recreating historical ownership data is alaborious process of contract and lease file reviewoften resulting in re-inventing the wheel many yearslater. At Apache, a division of interest file is createdwhen the expense and revenue decks areestablished and while NOAs are filed in ourcontract files, ownership changes are reflected inthe division of interest file. If an ownershipquestion arises on a producing property, thehistorical tab in our DOI system is the first source of

review and the D/O file will provide furtherdocumentation.

Our land system is an integral part of an integratedand interfaced set of systems that includeAccounting, Gas Marketing, Production Systemsand various field operational systems. What benefitis there to integrated and interfaced systems?Rather than having information housed in “silos”,separated for different departmental purposes, onesource input and maintenance is required. Whenall the systems talk with one another, efficiency isincreased, key data is readily accessible in coresources, and the margin for error decreasesdramatically due to the information not being inputby multiple people and at differing times. Theeconomics and full picture of a property are readilyavailable, identifying potential sale opportunities.An impact resulting from integration and interfacingis that problems or discrepancies which may havelurked in a property are spotlighted, demandingimmediate attention. That’s a good thing in the longrun, as the information is refined, filtered andupgraded, assuring consistency throughout all thesystems and applications.

So, how does Apache’s different way of doingbusiness impact our industry here in Canada?Perhaps it provides one more perspective, a freshalbeit unusual approach in administering our leaseand contract obligations and ensuring timelybillings and payments to owners in our producingproperties. We’ve assembled a team of LandAdministration Analysts who are among the best inthe industry. We are an aggressive company on theleading edge of new technologies and processes.We’ve had our share of growing pains but takepride in the fact that we continue to grow and focuson new opportunities while continuing to refineand upgrade our current processes and systems.Apache is in Canada to stay and we’re yourneighbor, located just down the street from you.Come see us!

Joyce JonesLand Administration ManagerCanadian RegionApache Canada Ltd.(Former NADOA President)


The comments that follow are an attempt to simplifycomplex matters and are intended to provide membersof The Freehold Owners Association (FHOA) withgeneral information. In some instances, simplificationhas resulted in a non-rigorous treatment. Thesecomments are not intended to be a substitute forprofessional advice.

Federal Taxation:Freehold minerals owned by individuals orcorporations are considered to be ‘Canadian resourceproperty’ for purposes of the Canadian Income Tax Act(the “Act”). A number of the tax rules applicable toCanadian resource property are particularly importantin estate planning.

Firstly, payments received from Canadian resourceproperty are taxed as income. Expenses incurred inexploring, developing or acquiring a Canadianresource property may be deducted from income.These deductions are accomplished through ‘taxpools’. Freeholders typically lease their freeholdmineral interests to an oil company and, because allexploratory and development expenses are incurred bythe oil company, tax pools known as CanadianExploration Expense (“CEE”) and CanadianDevelopment Expense (“CDE”) are usually not relevantto freehold owners. But freehold owners may incurexpenses in acquiring Canadian resource property.Costs incurred to acquire an interest in freeholdminerals are included in an individual’s Canadian Oiland Gas Property Expense (“COGPE”) pool in the yearof acquisition. Generally, the amounts in your COGPEpool may be deducted from your income on a 10%declining balance basis (for example, if your freeholdmineral interests were acquired for $10,000, you coulddeduct $1,000 from your income in the first year, $900in the second, $810 in the third, etc.). The foregoingapplies irrespective of whether you actually purchasedthe freehold minerals for cash or inherited themthrough an estate in which tax was paid under thedeemed disposition rules (see below).

Taxation of Lease Bonuses, Rentals and Royalties:The cash signing bonus you receive when you leaseyour freehold mineral interests and the payments you

receive as annual delay rentals or shut-in royalties areconsidered to be proceeds of disposition of a Canadianresource property by the Canada Customs andRevenue Agency. To the extent that these amountsexceed the amount in your COGPE pool, they shouldbe declared as income in the year of receipt. In theabove example where you acquired the freeholdmineral interests for $10,000, if you received a$16,000 signing bonus in the year of acquisition, youwould reduce your COGPE pool to zero and include$6,000 in income. If however your signing bonus wasonly $9,000, you would reduce your COGPE pool to$1,000 and have no income for tax purposes as a resultof leasing. In situations where freehold ownersacquired their mineral interests for token considerationmany years ago, all amounts received as lease signingbonuses or delay rentals are effectively income andCOGPE pools are relevant only in the context of estateplanning.

Because freehold mineral interests are Canadianresource property and not capital property, the capitalgains rules do not apply. The proceeds from anoutright sale of your freehold mineral interests aretreated in the same way under the Act as leasingproceeds and delay rentals or shut-in royalty payments.To the extent the proceeds from a sale of your mineralinterests exceed the amount in your COGPE pool, theproceeds should be included in income. In the aboveexample where you acquired the freehold mineralinterests for $10,000, leased them for $9,000 therebyreducing your COGPE pool to $1,000 and then, forinstance, sold them that same year for $15,000, youwould reduce your COGPE pool to zero and haveincome of $14,000 in that year.

Any royalty payments you receive under terms of yourlease agreement are considered to be investmentincome by the Canada Customs and Revenue Agency.The Act requires your oil company-lessee to provideyou with a T-5 slip each spring indicating the totalamount of royalties from Canadian sources received byyou in the prior year. In certain provinces, includingAlberta, freehold owners must pay freehold mineral taxto the province on production from their mineralinterests (see below). Provincial freehold mineral taxes

FREEHOLD MINERALTAXATION


are not deductible for federal income tax purposes. Tocompensate for this, the Canada Customs and RevenueAgency allows freehold owners a resource allowancededuction which is effectively equal to 25% of royaltypayments received. The Act requires oil companies toreport the amount eligible for resource allowance onthe T-5 slips which are provided to you, but some oilcompanies fail to comply with this requirement. If theamount shown in box 20 of your T-5 slip (Amounteligible for resource allowance deduction) does notcorrespond to the amount shown in box 17 (Royaltiesfrom Canadian sources), FHOA recommends that youcontact the oil company and request an explanation. In addition to resource allowance, you can also deductexpenses directly related to income earned from yourfreehold mineral interests. For example, if you hired aconsultant to assist you in negotiating your lease, theconsultant’s retainer may be deducted from your leasesigning bonus payment. Similarly, if you hire aconsultant to review your royalty statements, theconsultant’s retainer may be deductible from yourroyalty payments.

As a consequence of the treatment of income fromyour mineral interests under Canadian income taxlegislation, your tax liability for lease signing bonuspayments, delay rental or shut-in royalty payments,and royalty payments from your freehold minerals inany year will be determined by your overall incomelevel in that year.

Deemed Dispositions:The deemed disposition rules are particularlyimportant in estate planning involving freeholdmineral rights. Under the Act, an individual is deemedto have disposed of all of his or her Canadian resourceproperty immediately before death for proceeds equalto the property’s fair market value. There are provisionsin the Act which allow you to leave your freeholdmineral interests to your spouse, your common lawpartner or a spousal trust on a tax-free basis, but if youintend to leave your mineral interests to someone else,the deemed disposition rule may create a tax liabilityin your estate. Depending on the fair market value ofyour minerals (see below), this tax liability may beonerous.

Valuations of Freehold Minerals:The Canadian resource properties leased by oilcompanies are evaluated on a regular basis inconjunction with oil and gas industry mergers and

acquisitions, and to satisfy the corporate reservereporting requirements of securities regulators. Anentire ‘sub-industry’ of evaluators exists to provideindependent evaluations to the oil and gas industry. Ifno wells capable of production have been drilled on orin the vicinity of a property, evaluators typically basetheir evaluations on the price paid for comparableCrown leases in the area. If wells capable ofproduction exist, valuations are based on: estimates ofthe volumes of oil and gas in place; estimates of thevolumes of oil and gas which can be recovered;estimates of the future prices of oil and gas; andestimates of the future costs to produce the oil and gas,including taxes and royalties. Individual evaluatorsseldom agree on all of these variables and, if they do,they are usually all wrong. Consequently the estimatedvalue of any particular Canadian resource propertyleased by an oil company may vary widely.

Freehold mineral interests are even more difficult toevaluate.One reason is that you own your mineral interests infee simple whereas oil companies merely lease feesimple interests. This means that your property rightsare not limited by time - you, or your beneficiaries, arethe owners of any oil or gas found beneath your landsno matter when it is found. Your interest differs froman oil company’s interest as the property rights whichan oil company acquires when it enters into a leaseagreement terminate when the lease expires. Thisdistinction is critical from a valuation standpointbecause drilling and abandoning a nine inch wellbore on a quarter section of land does not prove thatthe entire quarter section has no oil or gas, especiallyif the well bore is not deep enough to evaluate allpotentially productive geological zones. Furthermore,there are countless examples of situations where oilcompanies have drilled and abandoned wells manyyears ago, when prices were lower and technologywas less advanced, which would not be abandonedtoday. The oil companies’ property rights have longsince expired, but the fee simple owners’ have not.From a practical standpoint, this results in evaluationsof freehold mineral interests being inherently evenmore uncertain than evaluations of the lease rights ofoil companies.

An evaluation of the fair market value of a ‘simple’producing freehold property by one of the majorevaluation firms in Calgary may be expected to costbetween $1,000 and $2,500. If the mineral rights are


not leased, or if they are leased but not producing, thecost of a professional evaluation may be less. Theevaluation of more complex freehold properties (forinstance, properties subject to a unit agreement) maybe significantly more expensive.

In situations where freehold mineral interests aregenerating minimal annual royalties, it may be difficultto economically justify the cost of a professionalevaluation of the property’s fair market value. One‘rule of thumb’ which may be used in these situationsis to apply a multiple of three to five times the averageannual royalty received from the property. Forinstance, if freehold mineral interests had beengenerating an average of $2,000 per year for adeceased individual, a fair market value in the range of$6,000 to $10,000 may be reasonable. If the annualroyalties received had been increasing year over year,you would use the higher number and vice versa.Under Canadian income tax legislation, the deceasedindividual would be deemed to have receivedproceeds of disposition equal to this fair market valueimmediately before his or her death, and this amountwould effectively be brought into income in the year ofdeath (assuming the individual’s COGPE pool waszero).

Oil and gas prices have swung widely in recent yearsand this has had a significant impact on the royaltiesreceived on an annual basis by many freeholders. Inaddition, the deregulation of gas markets has resultedin gas production from many recently completedwells declining more rapidly than previously. As aresult, royalties received over the past several yearsmay not be indicative of what may be received in thefuture.

The Canada Customs and Revenue Agency takes theposition that fair market value estimates must bereasonable. If the freehold mineral rights generatemore than token annual royalties, FHOA recommendsusing qualified evaluators to determine fair marketvalue in order to protect against possible future audit.Whatever method you use, document it and keep it onfile.

Provincial Taxation:In addition to the provincial share of income taxgenerated by fresh old minerals, certain provinces levya tax on production from freehold minerals.

Freehold Mineral Tax:In Alberta, the Freehold Mineral Tax Act provides for anannual tax to be levied by the Provincial Governmenton production from freehold mineral interests in theyear following production. Separate taxes are leviedon petroleum, solution gas, natural gas andcondensate. Although the formulae used to calculatethe freehold mineral tax are complex, their effect is tocharge a tax of approximately 7% of the total value ofproduction in the prior year. The value of production isbased on oil company submissions which are subjectto audit by Alberta Energy. The legislation provides foran exemption of up to $3,200 per mineral title for eachof petroleum and natural gas. Where title is split, thepetroleum owner may receive an exemption of $3,200per title ($1,600 for each of petroleum and solutiongas) and the natural gas owner may receive anexemption of $1,600 per title for natural gas.

Most freehold leases provide for the freehold mineraltax levy to be shared between the oil company-lesseeand the freehold owner-lessor in proportion to theirinterests. For example, if you negotiated an 18%royalty rate, the oil company would be responsible for82% of the freehold mineral tax and you would beresponsible for 18%. This sharing ratio is no moresacrosanct than anything else in a freehold lease. Itmay be in your best interests in leasing your mineralsto attempt to negotiate a reduced sharing ratio.Completely eliminating your share of freehold mineraltax is not recommended as this would impact yourresource allowance claim.

Although the responsibility for payment of freeholdmineral tax under the Alberta Freehold Mineral Tax Actrests with the freehold owner and nonpayment mayultimately result in cancellation of a freehold owner’stitle, the oil company-lessee typically pays both itsown and your share of the freehold mineral tax anddeducts your share from future royalty payments.

In Saskatchewan, the payment of freehold mineral taxis the responsibility of the oil company-lessee andfreehold owners cannot claim resource allowance.

Previously published in the October 29th 2002, Newsletter of TheFreeholder Owners Association (“FHOA”). Thank you to ElsePedersen for providing permission to re-print on behalf of theFHOA.


By way of Bulletin 2003-34 dated September 16, 2003, the Alberta Energy and Utilities Board (“EUB”)introduced the October 2003 edition of Guide 56: Energy Development Applications and Schedules, which iseffective October 1, 2003. The revised Guide 56 presents a thorough and comprehensive listing of therequirements and procedures for filing a licence application to construct or operate any petroleum industryenergy development in Alberta that includes facilities, pipelines, or wells. Guide 56 is incorporated byreference into the Oil and Gas Conservation Regulations (the “O&GC Regs”) and serves as an extensivereference document with respect the EUB’s interpretation of the O&GC Regs. In our view, a detailedunderstanding of Guide 56 is a requirement for any legal or mineral land professional involved in upstream oiland gas operations in Alberta. The consequences for non-compliance with Guide 56 are now directly andspecifically tied to the EUB’s enforcement ladder. It is critical that effective pre-submission internal auditprocesses are in place in order to ensure compliance. The following discussion relates to developing internalprocesses to comply with the mineral rights ownership aspects of Guide 56 for well licence applications.

An applicant must use Schedule 4 to Guide 56 to apply for a well licence for, inter alia, a new oil, gas, or crudebitumen well. The Well Licence Application contains two questions impacting mineral rights ownership thatthe applicant must understand and answer accurately.

If either of the foregoing questions cannot be answered “YES”, the applicant must attach a detailed explanationof the reason why it does not have the mineral rights in the entire drilling spacing unit for all intended purposesof the proposed well. The EUB will review the circumstances and decide if an exemption is warranted. If the

WELL LICENCEAPPLICATIONS – GUIDE 56

Guide 56 - Schedule 49.2 The applicant has the rightsto a complete drilling spacingunit?

9.1 The applicant has the rightsfor all intended purposes of theproposed well?

CommentaryThe applicant must identify each parcel of land comprising the largestdrilling spacing unit that applies to the hydrocarbon substances that arepotentially recoverable from the proposed well. Insofar as currentcertificates of title are subject to exceptions, a historical title opinionmay be required.

For each of the identified parcels of land comprising the drilling spacingunit:• The applicant must identify the holder of the fee simple rights to all

hydrocarbons that may be recoverable from the well from theintended formations. Insofar as current certificates of title are subjectto exceptions, a historical title opinion may be required.

• The applicant must identify any and all valid leasehold estates (orother lesser interests) granted in respect of such fee simplehydrocarbons. While a search letter may be sufficient in respect ofAlberta Crown leases, a freehold lease integrity opinion may berequired.

• The applicant must possess sufficient documentation to establish itsentitlement to 100% of the fee simple estate, or the leasehold estates,or to an undivided interest in the foregoing together with rights fromthe owners of the balance of the undivided interests, to drill the well.In many circumstances involving Crown and freehold tenure withcomplex histories, a beneficial ownership opinion may be required.


applicant does not have all mineral rights for the entire drilling spacing unit and is awaiting other EUB approvals(e.g., reduced spacing application) or freehold leases to be obtained (e.g. options to be exercised), theapplication is premature. Further, it appears that in multiple phase reservoirs, the EUB will require an applicantto hold rights to all substances that can potentially be produced from the targeted formation. This approach isessentially an implementation of EUB Decision 2000-21 (GOODWELL PETROLEUM CORPORATION LTD.REQUEST TO SHUT IN BITUMEN WELLS WABISKAW-MCMURRAY OIL SANDS DEPOSIT ATHABASCA AREA– BRINTNELL SECTOR) which required “some form of agreement or revenue-sharing formula” betweenbitumen owners and free gas owners in a multiple phase reservoir.

Requirements and Recommended Practices1. With Guide 56 the EUB has introduced a clear differentiation between the concepts of “requirement/must”

and “expectation/should”.(a) Regulatory requirements are those rules that industry has an obligation to meet and against which the

EUB may take enforcement action in cases of non-compliance. Regulatory requirements are identifiedas “must” statements within in the text of Guide 56.

(b) Regulatory expectations, on the other hand, represent recommended best practices or guidelines.Regulatory expectations are identified as “expect” statements in the text. While enforcement action isnot applicable, expectations should be given consideration.

The following is a summary of the Guide 56 mineral ownership regulatory requirements relating to thesubmission of Well Licence Applications.

EUB Audit Process2. Through Guide 56 the EUB provides the energy industry with requirements and expectations to assist

applicants in preparing the various energy development applications. To ensure compliance with Guide

Provision7.9.11

7.9.11.1

7.9.16

HeadingRight toProduce orOperate

Mineral LeaseContinuation

WorkingInterestParticipants

RequirementsPrior to submitting a Well Licence Application, the applicant must:a) be a working interest participant;b) be entitled to the right to produce the oil, gas, or crude bitumen fromthe well or have the right to drill or operate the well for the authorizedpurpose;c) acquire the right to produce from the intended formation for thecomplete drilling spacing unit;d) if applicable, obtain permission from the Alberta Department ofEnergy to produce minerals under water bodies on Freehold minerallands, as the Crown holds the mineral rights beneath water bodies.

The Alberta Department of Energy does not consider an application fora mineral lease continuation sufficient to demonstrate that an applicanthas the rights for all of the intended purposes of the well. Prior tosubmitting a Well Licence Application, the applicant must receive asigned approval granting a mineral lease continuation from the AlbertaDepartment of Energy. (While not specifically addressed in Guide 56,consider the application of this concept to freehold leases in the contextof drilling over, end of primary term continuation letters, outstandingdefault notices, etc.).

The applicant must be a working interest participant to apply for or holda well licence.


56, the EUB has instituted an audit process to ensure compliance. The audit process, insofar as it appliesto mineral ownership, requires the applicant to be able to demonstrate how it met and planned forregulatory requirements as set out by the EUB prior to filing the energy development licence application.As such, a defined set of documents must be maintained on the applicant’s files and submitted to the EUBfor review in the event of an audit, in order to demonstrate that regulatory requirements as set out in Guide56 have been fulfilled. In order to adequately comply with the EUB’s audit process we are recommendingthat applicants put in place an internal process whereby:(a) a pre-submission audit of the Well Licence Application is conducted by a legal or mineral land

professional;(b) any deficiencies are disclosed to the EUB at the time of the application; and(c) the required documentation is compiled and maintained separately for the purposes of a potential EUB

audit.

Over time, each company should develop a system of acceptable assumptions (e.g. missing deferred drillingpayments, whether Crown lease transfers and Assignment and Novation documentation sufficiently evidence aconveyance of beneficial working interests) based upon its corporate history, area of operation, and risk profile.

3. All routine and nonroutine applications are potential audit candidates. An application may be randomlyselected by computer or judgementally selected by the EUB based on factors such as category type, publicrisk, location, and recent applicant compliance history. If during the audit process applications are foundto be noncompliant, the EUB will initiate enforcement action in accordance with EUB Information Letter99-04. Unsatisfactory events are identified noncompliances and result in enforcement on the Minor, Major,and Serious enforcement ladders. Guide 56 outlines the following results for unsatisfactory events:

At any time during the life of a project, an applicant/licensee that identifies a non-compliance with EUBrequirements may voluntarily disclose the non-compliance. If a licensee meets the criteria for voluntary self-disclosure, there will be no enforcement action.

Provision7.10

7.10.9

7.10.9.2

HeadingAuditDocumentationRequirements

Rights for allintendedpurposes

Rights for thecomplete drillspacing unit

RequirementsWhen selected for audit review, the licensee must submit the requireddocuments within 14 calendar days of notice of audit or within the timeframe as directed by the EUB.

The licensee must submit:a) the mineral rights lease number for Crown minerals;b) the documentation that authorization has been obtained for leasedCrown minerals, andc) the documentation that authorization has been obtained for Freeholdminerals.

The licensee must submit:a) the mineral rights lease number for Crown minerals, and b) documentation evidencing the rights for Freehold minerals

EnforcementSerious

Major

Major

Unsatisfactory EventFiling an application when the applicant does not have a working interest participation.

Failure to acquire all rights for the intended purpose of the well and for the entire drillingspacing unit prior to filing the application.

Failure to obtain a mineral lease continuation prior to filing the application.


Property Acquisitions and Corporate Transactions4. Guide 56 also indicates that, in cases of corporate property acquisitions or mergers, “it is in the company’s

best interest to obtain all relevant application documentation when it acquires ownership of a facility,pipeline, or well. A new owner is expected to assess all newly acquired properties to ensure that theproperty is operating with the correct Guide 56 licence. If a non-compliance is identified, the new ownershould notify the EUB of the non-compliance and address the issue in accordance with Information Letter99-04.” Taken literally, Guide 56 requires that, in respect of each well license acquired in every transaction,a review be conducted to ensure mineral rights ownership compliance and self-disclosure of any and alldefects in respect thereof.

The EUB is providing a transition period from October 1, 2003, to March 31, 2004, in recognition that it maytake some time for applicants to become familiar with and fully integrate all of the changes contained in Guide56.

Michael A. ThackrayThackray Burgess(403) 531-4710 (Phone)(403) 531-4720 (Fax)[email protected]

Previously distributed through the Thackray Burgess Alert and Update service.Thank you to Michael Thackray for providing permission to reprint.

The process of gaining more knowledge about how other departments in a company operate can help make our landresponsibilities easier to complete. We have a variety of education sessions planned that will broaden participantsunderstanding of how our day-to-day tasks affect and are affected by the organization within which we function.

This year’s Conference will offer many changes such as on-line registration and a Conference website to help provide youwith more information in a quick and easy manner. A special networking event on Friday, June 25 will consist of a cocktailparty and dinner theatre held at Jubilations Dinner Theatre. Once again, the Golf Tournament will be held at WoodsideGreens in Airdrie on Saturday, June 26. We look forward to seeing you there and hope that you can complete the pictureby “putting the pieces together” and enjoy all our exciting Conference events.

Val Anderson 2004 Conference Chair

CAPLA’s fifth bi-annual Conferencewill be held at the

Calgary Stampede Roundup Centreon June 24 and 25, 2004.

The theme of this upcoming Conference is“Putting the Pieces Together”. The Conference is designed

to explore the many functions within anoil and gas company.


The petroleum resources program of the Ministry ofNatural Resources regulates the oil, gas and storagetenures on Crown lands, as well as some industryactivities associated with the drilling of wells intoOntario’s sedimentary rocks. The program’sobjectives are to ensure that:1. The exploration, development and production

of crude oil, natural gas, salt-solution miningand underground storage do not result in ahazard to public safety or pollution of theenvironment, including surface waters andunderground drinking water aquifers;

2. Ontarians receive a fair share of the value ofnatural resources produced on Crown land;

3. Correlative rights are protected through optimaldrainage areas (spacing units) on Crown andfreehold land;

4. Information necessary to make decisions basedon high quality science and information for oil,gas, salt solution-mining and undergroundstorage resource management are collected;and

5. All operators follow the regulatory requirementsfor drilling wells and production facilities, andfollow through with the plugging of unusedwells and site clean up.

The Petroleum Resources Centre (PRC) functionsinclude: a) proponent driven technical review ofapplications for life-cycle well licences; b)conducting regular field inspection andenforcement activities to ensure that therequirements of the Oil, Gas and Salt Resources Act(OGSRA), its regulations and standards are met; andc) conduct tenders for oil, gas and storage tenureson Crown lands.

There are currently 3700 active wells at severalhundred different locations in Ontario.Approximately 100 new wells are drilled every yearfor the purpose of production of oil, gas, salt, andhydrocarbon storage. The PRC recognizes the manyhistorical accomplishments of the oil and gasindustry in Ontario, including the first commercialoil well at Oil Springs drilled in 1858, the first salt-

solution mining well completed in 1866 and thefirst well on Lake Erie drilled in 1913. Natural gasstorage first occurred in 1915 when gas wastransferred from a high pressure pool to a lowerpressure pool, however, natural gas storage in reefsfirst started in 1942. Solution mined caverns werefirst used for hydrocarbon storage in 1952. Thereare an estimated 50,000 petroleum wells drilled inOntario.

The oil and gas industry provides a significantcontribution to the local and provincial economy,with the production of oil, gas and salt generatingover one hundred million dollars annually. Thereare 29 designated storage areas for natural gasstoring more than one billion dollars of natural gas,and that keeps the price lower for the consumersand provides reliability during the cold months.There are also 73 solution mined caverns beingused for liquefied petroleum gas andpetrochemicals with an estimated more than onebillion dollars of storage.

The collection and dissemination of information isa key function of the PRC. Data collection began inthe late 1800’s, and consists of geological, drillingand engineering information on over 20,000 wellsdrilled in all parts of Ontario for the purpose ofexploring for or producing hydrocarbons,underground storage of hydrocarbons, disposal ofoil-field fluids, and production of salt by thesolution mining method. Information collectedincludes well location, well status, operator, drillingdates, depths and results, geological formation tops,well construction, oil/gas/water intervals,geophysical well logs, drill core and cuttings, coreanalyses, oil/gas/water analyses, drill stem andproduction tests, monthly production volumes andpressures, etc. The PRC, in cooperation with theOil, Gas and Salt Resources Library, providesgeological analysis and information required forassessing oil, gas and salt resource industries inOntario.

Currently there are 440,000 hectares under tenures

PETROLEUM RESOURCES CENTRE OF THE ONTARIOMINISTRY OF NATURAL RESOURCES – THE OIL ANDGAS INDUSTRY IN ONTARIO


on Lake Erie, and with the increased technologies,there is potential to further develop open lands onLake Erie, Lake St. Clair, Lake Huron, and HudsonBay Lowlands.

In order to maintain long-term viability of the oiland gas industry, the PRC’s compliance program isintended to ensure operations comply with theOGSRA, its regulations and its standards. Thisprocess involves reviewing industry compliancewith requirements for data and record submissions,and field inspections of wells and associatedfacilities.

The Petroleum Resources Centre also promotes theresponsible use of the resource by working with itsstakeholders, such as municipalities, industry,agricultural associations, academic institutions andthe general public. We believe that effectiveconsultation and communication is key inrecognizing the existing industry and movingforward into the next generation.

Our challenge is to seek future oil and gas reserves

by developing newer plays through the use ofinformation and GIS technologies, and also toaddress the issue of an estimated 20,000 orphanwells, through cooperation amongst industry,farmers associations and the government. We willseek ongoing improvements in updating spacingand pooling requirements, in continuing to seekcompliance with the OGSRA and in implementingfunctional and quality electronic information forthe industry and the general public.

We are encouraged by the partnerships with ourstakeholders, including the Ontario PetroleumInstitute (OPI), in ensuring that the resource isproperly extracted and the rights of landowners andthe general public are respected. The operation ofthe Oil, Gas and Salt Resources Library by the OPIis providing a valued educational and informationservice to industry, government and the public. Welook forward to ongoing opportunities to developthese partnerships in the future.

Andrew Hewitt. Petroleum Resources CentrePermission to reprint provided

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•EXCEPTIONAL SERVICE•FLEXIBLE PAYMENT PLAN

Authorized Broker for CAPLA MembersContact: Dianna Suttie

Phone: (403) 255-2876 Fax: (403) 252-7145

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CAPLA has arranged for its members to be eligibleto belong to a comprehensive benefits program,

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Extended Healthcare (Major Medical & PrescriptionDrugs), Vision Care, Dental, Health Spending

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These benefits are available to you as a CAPLAMember, and in addition to the benefits listedabove, CAPLA members can feel free to contact

Dann Kepford for quotations for personal/corporatelife insurance, disability and critical illness

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AUTO - HOME - COMMERCIALVACATION AND REVENUE PROPERTIES


The following is part 3 in a 3 part series that NEXUSbegan publishing in August 2003. Part 1 addressedthe Background and Title Issues, Part 2 addressedLegal and Regulatory Issues and Part 3 will addressthe Environmental Issues. We trust you have enjoyedthis informative and comprehensive article.

F. Environmental IssuesAs CBM developments generally result in theextraction of a large volume of groundwater alongwith the methane, the handling and disposal of thatwater is by far the most significant environmentalissue facing a CBM developer. CBM wells in theUnited States can generate 10 to 100 times moreproduced water than a conventional gas well. Oftenthe water is saline. Some commentators have evensaid CBM development is really a water managementbusiness rather than a gas business.

1. The Right to Divert GroundwaterUnder Alberta’s Water Act, a licence is required inorder to divert groundwater. Dewatering a coal seamfor CBM production is a form of water diversion.However, the Water (Ministerial) Regulation providesthat a licence is not required for the diversion ofsaline groundwater, which means water that has totaldissolved solids exceeding 4000 milligrams per litre.Accordingly, if the produced water is not saline thena licence is required.

In BC, the present situation is that the Water Act setsout a scheme for licensing the diversion of water.However, it only applies to surface water but can bemade to apply to groundwater by Cabinet passing aregulation. Now, the recently passed Drinking WaterProtection Act has repealed the provision allowingCabinet to apply the Water Act’s licensing scheme togroundwater but has replaced it with its ownprovision allowing Cabinet to apply the Water Act’slicensing scheme to groundwater in certaingeographical areas. As of writing this paper, noregulations have been promulgated by Cabinet in thisregard but it is reasonable to expect futureregulations.

2. Produced Water RightsQuestions have arisen, especially this summer given

the harsh and extensive drought on the prairies, aboutwhether the extensive water resources diverted fromcoal seams as part of a CBM development have acommercial value to the developer for irrigation orother purposes. For instance, in some parts of theUnited States water is considered a commodity whichmay be privately bought and sold and I am advised itcan sell for over $250 US per acre/foot. In some areasthe water may be nearly as valuable as the methane.

In Alberta, all water resources are owned by theCrown pursuant to the Water Act. Accordingly, aCBM developer is not entitled to “sell” the waterproduced to area farmers.

All water in British Columbia is owned by the Crownpursuant to the Water Act and the Water ProtectionAct and similarly may not be sold.

3. Produced Water DisposalBecause CBM development inevitably results in thediversion to the surface of large volumes ofgroundwater along with the methane, handling anddisposal of the produced water has attractedsubstantial attention and significant controversy in theUnited States. It is expected that CBM developmentin Canada will receive the same type of attention.

The two most common methods of disposingproduced water from CBM projects are undergroundinjection and surface discharge. Evaporation pondshave also been used in the U.S. In a few instances,where the produced water quality is acceptablewithout treatment, some produced water has beenused for livestock watering, irrigation and domesticpurposes in the United States.

Surface disposal is controversial in the United Statesgiven that surface discharge has the potential toincrease soil salinity and sodium absorption, as wellas contaminate lands and surface water resourceswith trace metals such as arsenic and barium andcause erosion and flooding. Other concerns involvelowering groundwater acquifers. Some point out thatthe average CBM well in Wyoming’s Powder Riverbasin discharges 15,000 to 20,000 US gallons of saltywater per day and that 80,000 CBM wells in Montana

LEGAL AND REGULATORY ASPECTS OFCOALBED METHANE DEVELOPMENT


and Wyoming will discharge four trillion gallons ofwater over the next 15 years.

n April 2002 the US Interior Department’s Board ofAppeal ruled that CBM leases for 2,500 acres inWyoming are illegal because they were issued by theUS Bureau of Land Management without properanalysis under the National Environmental Policy Actof CBM’s unique impacts. Apparently, a further51,000 proposed CBM wells could be impacted bythis ruling.

It is reasonable to expect CBM development inWestern Canada to be as controversial with respect tosurface discharge as it has been in the United States.

(a) Re-injection in AlbertaDeep well disposal of oilfield and industrialwastewaters are considered by the AlbertaGovernment to be a safe and viable disposal optionwhere wells are properly constructed, operated andmonitored. CBM-produced water may therefore bere-injected in Alberta. Disposal wells are classifiedand have to be designed in accordance with theEUB’s Guide 51: Injection and Disposal Wells – WellClassifications, Completion, Logging and TestingRequirements.

In all cases the location and purpose of a disposal orinjection well must first be approved by the Board inaccordance with the Oil and Gas Conservation Actand the regulations thereunder. Guide 51 identifiesthe information required to be submitted in support ofan application for approval to inject or dispose ofproduced water, as well as operating and monitoringprocedures. The primary purpose of this informationis to ensure wellbore integrity during disposal orinjection operations.

Generally, waste fluids are suitable for deep welldisposal in Alberta if a representative sample of thatwaste meets the following criteria:• pH between 4.5 and 12.5;• does not meet surface water discharge criteria;• has a non-halogenated organic fraction of less

than 10 percent by mass (100,000 mg/kg), unless:(i) it is an untreatable sand or crude oil/water

emulsion; or (ii) it is an antifreeze or dehydration fluid that

contains greater than 60 percent water by mass; • has one or more halogenated organic compounds

in a total combined concentration less than 1000mg/kg; and

• has a polychlorinated biphenyl (PCB)concentration of less than 50 mg/kg.

Injection and disposal wells are classified to identifythose wells that require increased levels ofmonitoring and surveillance based on the type of thefluids injected. Accordingly, wells accepting wastesbeyond common oilfield or similar wastes are subjectto a program of more stringent ongoing monitoringand review. By contrast, wells injecting fresh orpotable water are subject to minimal monitoring andsurveillance.

Regulatory activities focus on issues related to:• wellbore integrity to ensure initial and ongoing

containment of the produced water in theinterests of both hydrocarbon conservation andgroundwater protection;

• formation suitability to ensure initial and ongoingconfinement of the produced water in theinterests of both hydrocarbon conservation andgroundwater protection;

• suitability of the waste stream for deep welldisposal having regard for the nature of theproduced water, the integrity of the well andalternative disposal and management options;

• reporting and manifesting of produced water; and• where appropriate, ensuring the aforementioned

principles have been followed.

Matters of fluid-fluid, fluid-equipment, and fluid-formation compatibility are left primarily to thedisposal well operator, with regulators relying onoperating and monitoring requirements to provide forearly detection and mitigation of potential problems.The party generating the produced water has theprimary responsibility to ensure that the producedwater has been properly identified, characterized,and is handled, treated, and disposed of in anacceptable manner.

The EUB has also published a guideline fordetermining water production from gas wells andwhen water production from gas wells must bereported: Guide 4: Determining Water Production ofGas Wells. The Guide outlines the Board’s measuring,sampling and reporting protocols.

(b) Surface Water Disposal in AlbertaAn approval is required to discharge produced waterunder the Environmental Protection andEnhancement Act .

In Alberta, water quality parameters for surface water

discharges are set by the Surface Water QualityGuidelines For Use in Alberta. The Guidelines aremeant to provide general guidance in evaluatingsurface water quality throughout Alberta.

The Guidelines can be used in combination withwater quality monitoring data to assess ambientconditions and to identify areas with existing orpotential water quality concerns. If monitoring datado not exceed the Guidelines, problems are unlikely.If the Guidelines are exceeded, a detailed assessmentmight be required in order to determine the extent,cause, and potential adverse effects arising from theexceedance. The Guidelines are also used in settingwater quality based approval limits for wastewaterdischarges.

The Guidelines do not apply to drinking water.Alberta Environment has adopted the Guidelines forCanadian Drinking Water Quality (Health Canada;1996) for drinking water.

The acute (maximum) and chronic (continuous)guidelines for numerous substances are set out intables in the Guidelines. These are important whenestablishing limits based on water quality.

Surface water discharges may therefore be allowed byAlberta Environment if the water meets the Guidelineson its own accord or upon treatment. Seasonaldischarges may also minimize impacts.

(c) Re-injection in British ColumbiaUnder the BC Drilling and Production Regulation,created under the Petroleum and Natural Gas Act, allwater produced at a facility or well must be disposedof to an underground formation in accordance with ascheme approved by an authorized employee of theOil and Gas Commission. An application to disposeproduced water has to include, in addition to varioustechnical requirements, written statements from otherparties who may be affected by the disposal scheme.

Water production from a well has to be measured andreported monthly, and the volumes of water disposedof must be reported to the Commission within 25days after the end of each month.

(d) Surface Water Disposal in British ColumbiaSurface disposal of produced water may be allowedin British Columbia and one developer wasapparently issued a short-term permit for surfacedisposal on a CBM pilot project. Extensive water

quality analysis, hydrological studies and ongoingmonitoring is required.

4. Surface DisturbancesCBM developments will result in increased surfacedisturbances due to seismic lines, well pads,compressors, pipelines, roads, plants andinfrastructure. For instance, the Bureau of LandManagement in the United States has estimated thatdevelopment of some 80,000 CBM wells expected tobe drilled in Montana and Wyoming in the next 15years will result in an estimated 17,000 miles of newroads, 20,000 miles of new pipelines, 200,000 acresof soil loss and potentially thousands of saline waterreservoirs.

Surface disturbances may adversely affect locallandowners with noise, dust and general nuisance, aswell as impact local ecologies and disturb wildlife.The results cumulatively may not be trivial if Alberta’sand British Columbia’s extensive coal basins followthe trends in the United States where thousands ofCBM wells have been drilled. The surface impact inBritish Columbia could be significant as some of itsextensive coal-bearing areas have not historicallyexperienced the degree of surface disturbancesassociated with conventional oil and gas explorationand production activities. Drilling rigs could soon befound in wilderness areas where they have not beforebeen seen.

In Alberta, the acquisition of mineral rights or theissuance of a well license does not guarantee a CBMdeveloper the right to access the surface of the landfor drilling and production purposes. Instead, aseparate surface rights access entitlement is required.For Crown lands, a surface disposition may beobtained under the Public Lands Act. For privately-held lands, a negotiated surface lease is required withthe landowner. A right-of-entry order could beobtained under the Surface Rights Act for the removalof minerals contained in or underlying the surface ofthe land or for or incidental to drilling operations orfor the construction and operation of pipelines, roads,tanks, stations and structures.

The Surface Rights Act provides a regime fordetermination of compensation payable to thelandowner.

In British Columbia, a person may not enter, occupyor use land, other than Crown land, to explore for,develop or produce natural gas unless the person has



a surface lease with the owner of the surface or theMediation and Arbitration Board authorizes the entry,occupation and use under the Petroleum and NaturalGas Act. A CBM developer who acquires a surfacelease must file it with the Board within 90 days ofacquisition.

For Crown lands, surface rights may be acquiredunder British Columbia’s Land Act.

5. FlaringAn environmental issue that must be addressed withCBM development is the need for additional flaretesting to prove production on new wells. Flaring isthe controlled burning of gasses that areuneconomical to be processed or sold. Flaring isoften necessary for an operator to assess a well’sproduction capability and to determine theappropriate gathering and processing systemsrequired to handle the well’s production. Flaring canalso occur for operational reasons, such as equipmentfailures and to safely dispose of gas while de-pressurizing equipment.

It is reasonable to expect CBM wells to be flared forlonger periods than now occur for conventional gaswells because of the lower pressure and volumesassociated with CBM wells. For instance, during theoften long period of dewatering the gas productionmay not be sufficient to run compressors or justifygathering line construction.

In Alberta, flaring has recently been at the forefront ofthe public and landowner’s opposition to oil and gasexploration and development. The Board extensivelyregulates flaring through performance and reportingrequirements, permits and data collection as detailedin Guide 60: Upstream Petroleum Industry FlaringGuide.

A flare permit is required from the Board for well testflaring when the flared gas contains more than 50moles of hydrogen sulphide (H2S) per kilomole of gasor the total well test volume exceeds 200, 400, or 600thousand cubic metres, depending on the type of thewell.

Prior to planned flaring, operators are required toprovide 24 hours’ advance notice to the appropriateEUB Field Centre, to all residents within a 3 km radiusfor sour gas well tests, and to all residents within a 1.5km radius for oil and sweet gas well tests, regardlessof the H2S content.

Additional “good neighbour” notification, includingnotice for short-duration events, should be conductedwhere members of the public have identifiedthemselves as being sensitive to emissions from thefacility or if they are interested in receiving notice ofplanned flaring for other reasons.

The EUB expects operators to provide an informationpackage to the public prior to flaring (other than in anemergency). The information package must include:• company name and contact information,• location of the test flaring, duration of the flaring

(start date and latest expected completion date),• expected flaring volumes and rates,• information on the type of well (oil or gas) and, if

applicable, information on the H2S content of theflared gas, and

• telephone numbers of operator and EUB FieldCentre contacts.

The Board also expects the company to address anyconcerns raised by the public prior to flaring.

In British Columbia, the Drilling and ProductionRegulation promulgated under the Petroleum andNatural Gas Act prohibits flaring unless the OGC hasprovided permission.

A pre-application emission dispersion study isrequired for application to flare gas with more than5% H2S, and public consultation is required for allflare approvals. The requirements to obtain flaringapproval are set out in the OGC’s Interim GuidelineOGC 00-01: Natural Gas Flaring During Well Testing.

6. Greenhouse Gas Emission Reduction CreditsAlthough there may be many complex environmentalburdens facing a CBM developer, there are also someenvironmental opportunities.

Methane is a greenhouse gas. So is CO2, which issometimes found with coalbed methane. Bycapturing methane and CO2 from a coal seaminstead of it being vented or released to theatmosphere, a CBM developer may be able to claim,and subsequently sell, a greenhouse gas emissionreduction credit.

Air emission reduction credit trading programs haveemerged in the United States as key environmentalpolicy instruments in the last decade for the control ofSO2 to curb acid rain. By capping individual SO2sources, operators who do not use all their allocated

SO2 allowances may trade the excess to operatorswho are unable to stay within their allowances. Thisis known as emission reduction credit trading. Theflexibility inherent in market mechanisms such asemission reduction credit trading have been provento lower the cost of achieving environmentalobjectives. It is proposed by some that such market-based emission credit trading programs be extendedto greenhouse gases.

Coal also has a natural affinity to sequestering CO2,one of six greenhouse gases covered by the KyotoProtocol created under the United Nations’Framework Convention on Climate Change. The ideais that CO2 could be injected by wells into unminedcoalbeds with the pressure from the CO2 driving outthe methane. Coal can store CO2 in twice thevolume that it stores methane. The net result, at leastin theory, is that there would be less CO2 in theatmosphere and potentially significant CBMproduction.

Obviously, the technical and logistical hurdles forsuch a project could be significant, but there are nolegal or regulatory reasons prohibiting such anadventure.

CBM developers who sequester CO2 in coalbedsmight be able to create a greenhouse gas emissionreduction credit which they could sell or use to offsetpotential future obligations to reduce carbonemissions.

At present the greenhouse gas emission reductioncredit markets are embryonic and the regulatory andpolitical environment in Canada very uncertain.Future regulatory clarity is required, but with carefulplanning and creativity a CBM developer may in thefuture be able to capitalize on the uniqueopportunities presented.

One of several hurdles facing a CBM developercontemplating entering the emission reduction game,either with or without CO2 sequestration, is that theCBM developer as a potential seller of a reductioncredit will have to convince a potential buyer of thecredit that the emission reduction truly represents an“additional” reduction in greenhouse gases aboveany that would occur in the absence of the project. Inother words, if the greenhouse gas emissions wouldnot have occurred in the first place in the absence ofthe CBM project, it is difficult to argue that there hasbeen a net reduction.

Captured methane that would have otherwise beenvented or released from a coal mine will most easilysatisfy the “additionality” requirement as the methanewould clearly have been emitted into the atmospherebut for the CBM recovery effort. It will be harder toprove that recovery of methane from a deeper andunmineable coal seam is “additional” as it would notlikely end up in the atmosphere in the first place.

It is important to remember that this “additionality”requirement currently is not well-defined. Rather,satisfaction of this requirement depends on thecharacteristics of the trade in question and on thebuyer’s belief that the purchased credit will “qualify”under whatever greenhouse gas emissions reductioncredit trading regime may ultimately be implementedin Canada.

In the meantime, it is critical that CBM developersseeking to create credible and marketablegreenhouse gas emission reduction credits rigorouslyquantify, document, and report their purportedreductions. Even if a current market for emissionreduction credits cannot be identified, qualifyingCBM producers should still consider reporting suchreductions under the Voluntary Challenge program inanticipation of potential future legislation andresulting stronger markets.

G. Conclusions: Mitigating the Legal and RegulatoryRisksDevelopment of Western Canada’s extensive coalbedmethane resources undoubtedly presents economic,geological, and technical challenges to which mostCanadian conventional gas operators are unfamiliar.But legal and regulatory issues may also come intoplay in attempting to successfully structure a project,the most significant of which include confidentlyobtaining the legal rights to the coalbed methane in acomplex mineral tenure system for freehold lands andhaving the faith that present government policies withrespect to CBM on Crown lands remain unchanged.Greater legislative certainty, and not just policypronouncements, could mitigate the title risks forAlberta and British Columbia Crown land. Possibly,in the absence of further legislative certainty,unmineable coal seams capable of CBM productionwill remain unexploited.

At first glance, the simplest and lowest risk route to asuccessful CBM development on both freehold andCrown lands is for the CBM developer to acquire therights to both the gas and the coal, thereby ensuring



the rights of the CBM regardless of how our courts inthe future might rule on the title issue. Otherwise, itis reasonable to assume that experience in Canadawill be no different than that which has alreadyoccurred in America, with litigation between theholder of coal rights and the holder of the natural gasrights. One might even imagine persons specificallyseeking unleased coal rights after the gas rights holderhas taken the exploration and drilling risks for a CBMplay and commenced the expensive dewateringactivities on significant CBM reserves. However, in apractical sense, having to operate under two leases –one for the coal and one for the gas – could beadministratively complex (and perhaps impossible)unless both leases have a similarity of terms (ie.commencement date, habendum clause, royaltyprovisions, etc.).

The highest risk situations (and perhaps the area forthe CBM developer to avoid) are lands which aresubject to existing or pending coal mining operations.There the coalbed gas developer should attempt tonegotiate with the coal rights owner to allow fororderly and economic development of both the coaland the methane resources.

Where CBM rights are acquired from a fee simplemineral owner by way of a lease, the draftspersonshould strive to clarify which operations associatedwith CBM development, such as dewatering, willautomatically continue the lease beyond its primaryterm and in which instances a shut-in payment maybe made to “save” the lease. Mitigation of the riskthat a lease could expire in mid-development beforeproduction is attainable by careful consideration ofthe suitability of the language in the lease given theunique aspects of CBM development. In short, onewho uses a “standard” industry conventional gaslease may do so at their own risk. It would seem thatamendments to existing leases may be required.

The regulatory risks of permitting a project areprobably one of the most easily ascertained risks, andtherefore manageable risks, from a legal stand point.This is because the regulators consider CBMdevelopment akin to conventional gas development,and generally apply the same laws, rules and policiesto CBM as they do to conventional gas.

The significant issue of handling and disposing of themillions of litres of produced water has its ownsignificant legal issues and it is with respect to thewater disposal that most challenges from landowners,

environmental and public interest groups and otherscan be expected. The solutions are essentiallytechnical in nature in that projects deploying superiorwater handling and disposal technology will be lesslikely to attract controversy from persons concernedwith preserving ecosystems. One has to assume thatsurface disposal of the produced water will becarefully scrutinized by both the public andregulators.

Similarly, CBM projects which enjoy the opportunityof utilizing existing surface infrastructures (seismiclines, well pads, roads, pipes and facilities) shouldhave an advantage over projects which willpotentially adversely affect undisturbed areas.

Air emissions are an identifiable but manageable risk.Opportunities may exist for combining CBMextraction with carbon sequestration. A thoroughunderstanding of Canada’s embryonic greenhouse gasemission reduction credit trading markets is requiredas is an alertness to the changing policy andregulatory environment in Canada.

In conclusion, although the legal and regulatoryissues discussed in this paper are far from beingresolved, and hence add to the uncertainty for CBMdevelopment in Canada, the risks are identifiable andgenerally manageable.

Alan Harvie, PartnerMacleod Dixon LLPBARRISTERS & SOLICITORS(403) 262-9411 [email protected] CBM Conference - October 23 - 25, 2002Calgary, Alberta

Thank you to Alan Harvie, Partner, Macleod Dixon LLP, for hispermission to reprint this very informative and well-written article.


CAPLA BREAKFAST MEETING

Date: February 25, 2004

Time: 7:30 am to 8:45 am

Location: Calgary Petroleum Club (319 – 5 Avenue SW)

Ticket Price: $20.00 (GST Included)

Registration Deadline: 4:30, Friday, February 20, 2004 (Cancellation February 23, 2004 Noon)

Topic: Capitalizing on Consulting Contracts – In our current environment of increasing variability of workloads, thepractice of hiring project contractors and consultants is even more pronounced than ever before. The topic of“Capitalizing on Consulting Contracts” deals with how to maximize the contributions by consulting staff andgain exponential results from their engagement. The topic will be of interest to those who currently offer theirservices as contractors as well as companies who currently engage contractors for project work.

Speaker: Jonathan Chapman – President of Legacy Land and Title Company Inc.

Registration is on pre-paid basis only. Submit this registration form (accompanied by payment) to CAPLA 440 - 10816 MacleodTrail S. Suite 359, Calgary AB T2J 5N8. Payment options are Cheque, VISA, MasterCard or AMEX. Cheques made payable toCAPLA. Faxed forms will be accepted only for credit card submissions (571-0644). Register early to avoid disappointment. Provideyour name at the door to gain entrance to the event.

Company Name

Attendee Name Attendee Name Attendee Name Attendee Name

CHARGE TO MY: ❑ VISA ❑ AMEX ❑ MasterCard

Card Number: Signature:

Card Holder Name: Expiry Date:


CAPLA VOLUNTEERRECRUITMENT

If you are interested in volunteering for CAPLA, please join us at our Volunteer Recruitmentday January 12, 2004.

You will be able to meet CAPLA’s Board of Directors, speak with each Director about theirportfolio and the types of volunteer duties required for the committee.

Date: January 12, 2004Time: 12:00 to 1:00Location: EnCana Amphitheatre

2nd Floor, Tower Centre115 - 9th Avenue SECalgary AB

Bring your appetite - lunch and beverages are supplied

To register to attend this event, please complete the form below and fax it to the CAPLAOffice at 571-0644 by January 6, 2004

Name:

Company:

Phone:

Fax:

Email:

PLEASE JOIN US – WE’D LOVE TO MEET YOU AND DISCUSS CAPLA’S VOLUNTEERING OPPORTUNITIES!

THANK YOU ENCANA FOR DONATING THE VENUE FOR THIS EVENT


PUBLIC RELATIONSCOMMITTEE UPDATECAPLA’s success is based on a strong vision with clear objectives and a core of very dedicated andcommitted volunteers both at the Board and committee levels. The main mandate of our committeeis to manage the CAPLA image and assist in the promotion of CAPLA products and services byproviding policies, procedures, guidelines, templates and checklists. This will ensure a consistentapproach for sponsorship solicitation, promoting CAPLA and the land administration disciplines andpreparation of presentations to various stakeholders.

It is important to know how members, volunteers, other industry associations and the public perceiveus. In 2000, members were invited to participate in a Member Survey and excellent feedback andideas were received from 21% of the membership. A Member Roundtable was then held in Spring2001 where additional ideas were gathered to facilitate future planning. A telephone survey of 200members, randomly selected, was conducted in June 2003. The responses from this survey helped usto understand our member’s perception of CAPLA and we thank all the respondents for taking the timeto participate. The winner of the telephone survey draw for a $100 ‘The Catch’ restaurant gift certificate was KevinKoe at Talisman Energy.

The top 7 adjectives provided by respondents during the telephone survey were used as guidelines inthe creation of our new logo and also confirmed that CAPLA was very relevant and important to themembers. I would like to thank our committee members for the great work on the survey and inputto the logo design. Kudos to Rachel Herschfield from Folio Publications and Jeff Bryksa for the finallogo design. Thanks to the NEXUS and website committee for incorporating the new logo into thenew NEXUS masthead and the new website banner.

Our committee is now preparing a Volunteer Survey to be conducted on-line on the new website inthe first quarter of 2004. This will help CAPLA gather ideas, issues and concerns from our volunteersto ensure we have an environment that promotes a positive experience for each volunteer.

A sponsor contact list, which will eventually be entered to a database, will be prepared and updatedby our committee. Guidelines for the use of this list, as well as letter templates, follow-up procedures,opportunity lists and forms of sponsor recognition, will be prepared for use by any CAPLA committeerequired to promote a product or service.

Respectfully submitted,Verna Moodie


I SEE YOU LOOKING... MENTORSHIP…DON’T BE AFRAID TO ASK FOR HELP

Having a mentor is a crucial key to success, butfinding a mentor may seem next to impossible. Beopen-minded about potential mentors. A goodmentor can be a man, a woman, someone with 20years experience or none, or even your boss. Themost important factor is that you and your mentorcan comfortably exchange feedback and ideas.

You may be thinking, “I work hard, I really know mystuff. Why do I need a mentor?”First, mentors can give you the big picture.Understanding performance expectations can betricky—particularly when there are subtleexpectations for employees in all organizations.

Mentors can also help you find a suitable style bycluing you into the “rules of the game”—commonlyknown as office politics. Navigating the politicallandscape of an organization can take years tomaster on your own, and avoidable mistakes can becostly.

Also, keep in mind that even as a top performer,getting challenging assignments can be tough.Mentors can open doors for you by introducing youinto their networks and recommending you for high-visibility assignments and promotions.

Now you know you need a mentor. Who should youlook for?Be strategic. Figure out what kind of coaching andadvice you need, then look for people who can giveit to you. Remember that it’s nearly impossible to findeverything you want in one person. Instead, becomethe mentee of several talented people.

So, how do you find a mentor? You can start byvisiting www.caplacanada.org and looking in the

mentorship section, fill out a form and submit it orcontact those by phone that are listed on “contactinformation”, to answer any questions that you have.

Make a connection, but start small.Don’t scare off a potential mentor by calling andasking, “Would you like to mentor me?” Try e-mailing or calling a potential mentor to discuss aproject she has worked on or to ask a question withinher area of expertise. Remember, get them vestedwithout scaring them off, invite them out for a lunchor a coffee… BREAK THE ICE.

Volunteer to help.Take the opportunity to strut your stuff in front of apotential mentor. Offer to help on a project orvolunteer in a CAPLA capacity in which your mentoris involved. NETWORK, NETWORK, ANDNETWORK!

Once you’ve found key people and begundeveloping the right relationships, keep thefollowing tips for being a good mentee in mind: • Exceed performance expectations. • Demonstrate your openness to coaching and

feedback. • Listen carefully to your mentor’s advice and

incorporate those insights that make sense foryour career.

• Ask a lot of questions. • Inform your mentor of significant career

accomplishments and failures. • Share with your mentor the advice that made the

most difference for you and why. • Give back to your mentor—be kind, don’t

criticize to others the advice you are given. • Finally, as you progress in your career, don’t

forget to reach back. Become a mentor yourself.

SSeeaassoonnss GGrreeeett iinnggss ffrroomm tthhee OOffffiiccee

““MMaayy tthh iiss hhoo ll iiddaayy sseeaassoonn bbrr iinngg ppeeaaccee aanndd hhaappppiinneessss ttoo yyoouu

aanndd yyoouurr ffaammii llyy aanndd tthhee NNeeww YYeeaarr mmaannyy bb lleessss iinnggss..””

CAPLA would like to thank Ron Vermeulen and his staff at LandSolutions Inc. for providing us with a list of thefollowing links to services, information and downloadable documents that assist many in Surface LandAdministration in the performance of their daily tasks. These links will be available on our new website.

http://www3.gov.ab.ca/srd/land/lad/dl_li.html - Caribou plan information, Public Lands handbook, environmental map information

http://www3.gov.ab.ca/srd/land/LAD/map.html - Public Lands - Green area land use field staff contact information

http://www3.gov.ab.ca/srd/land/publiclands/res_intro.html - Instructions on how to read a land search and the meaning of codes

http://www.fedgas.com/Admin/dynamicpage/default.cfm?PageId=2 - Provides a listing of all the Alberta Gas Co-ops and their contact and address information

http://www3.gov.ab.ca/ma/cfml/profiles/index.cfm - Query for any local or urban authority for contact and address information.

http://www.gov.ab.ca/home/index.cfm?page=5 - Input any government employees name or partial name and receive their complete contact informatione.g. address, phone, email information, and whether EUB, ASRD, Forestry, etc.

http://www.specialareas.ab.ca/prod01.htm#Petroleum%20&%20Natural%20Gas%20Pol - Special Areas website

http://www.elc.ab.ca/wellsite/index.cfm - Environmental Law Centre - to order reclamation certificates

http://www3.gov.ab.ca/gs/services/lrs/index.cfm - Land Titles Information, link to Land Titles Procedures Manual

http://www.eub.gov.ab.ca/bbs/requirements/default.htm - EUB link to ID, IL, Guides, etc.

http://www3.gov.ab.ca/env/WATER/Legislation/Index.cfm - Information on the Water Act, Codes of Practice

http://www3.gov.ab.ca/srd/land/publiclands/staff.html - Provides a compiled listing of Public Lands Staff, information, etc. on Public Lands

http://www3.gov.ab.ca/srd/land/lad/ind.html - Crown forms including Applications, Consent of Occupants, Environmental Field Report, procedures flow charts,Land Adminstration contacts

http://www3.gov.ab.ca/env/protenf/landrec/publications.html - Alberta Environment reclamation site, Information Letters, reports, guidelines, forms, etc.

http://www.cd.gov.ab.ca/ - Alberta Community Development

http://www.pixxures.ca/canada/index.jsp?Township=24&Range=1&Meridian=5 - Pixxures, aerial photos


NEW SURFACE WEB LINKS ONTHE NEW WEBSITE


Eighteen Administration students and twenty eightacquisition students graduated successfully in 2003.

Our Land Administration and Land Agent programs aregoverned by an Advisory Committee comprised ofindustry and government personnel, organizationrepresentatives, students and college staff. The CAPLArepresentatives on the committee are Anne Hand ofCNRL and Theresa Sacha of Advantage Oil & Gas Ltd.We would like to take this opportunity to acknowledgethe strong support and guidance these two individualsprovide to our program. In addition to sitting on theAdvisory Committee, they meet with us several times ayear and are readily available for assistance andguidance.

We have successfully implemented some new coursesinto our program: Rentals & Damages, FirstNations/Metis Land Issues, Agriculture Overview ,Regulatory Guides & Issues and an Industry Seminarcourse. They have been greatly received by bothstudents and the industry. We are also in the finalcountdown towards implementing the on-line deliveryof the Land Agents Licensing Manual with hopes that itwill be up and running by early winter 2004.

We would also like to thank the Sundre PetroleumOperators Group who recently gave our students anopportunity to attend their Neighbor’s Day that washeld in late September. SPOG has also been generousin providing us with a number of guest speakers forour Industry Seminar course.

A number of students were invited to attend theSynergy Conference that took place in Red Deer inOctober and we express our gratitude for providing thislearning opportunity for these students. We are veryfortunate to be involved with an industry that allows

excellent opportunities for our students and program.

Our Land Agent/Administration undergraduates andgraduating students were very successful in theirsearches for both summer positions and full-time orcontract positions. We publish a Student Resume bookevery year and if you would like to receive a resumebook for the upcoming graduates in the spring or haveany questions about our program please contact:

Doug Peters, Coordinator, Land Agent Program(403) [email protected]

Brian Christianson, Lead Instructor, Land Acquisition(403) [email protected]

Bev Christman, Lead Instructor, Land Administration(403) [email protected]

Tara S. Lloyd, Instructional Assistant,Land Agent Program(403) [email protected]

Finally, we are holding our 22nd Annual Reception inCalgary at the Fairmont-Palliser Hotel in late March.This allows the college to thank the industry for theirsupport and to allow our students a networkingopportunity. Please note that this is an open invitationevent. We will be publishing invitations in the industrynewsletters and on the college website later in the year.If you would like more information or to receive apersonal invitation, please submit your contactinformation to us as soon as possible. We look forwardto seeing you there.

OLDS COLLEGE LAND ADMINISTRATIONCERTIFICATE & LAND AGENT DIPLOMAPROGRAM UPDATE

THANK YOUTHANK YOUCraig Robins from the CAPLA Office extends a big Thank-You to all those who helped prepare

the NEXUS for distribution this past year. Your volunteerism is greatly appreciated.


CAPLA BOARD HIGHLIGHTS• Guidelines for use of new LOGO are now in place.• A 10th Anniversary Gala event will be held in February 2004• A letter is being drafted in support of SPIN II• Myra Drumm Award recipients have been chosen• The 5-year education plan conceptual design presentation was given to the

Board• The Board’s Fall Planning Session was held on November 1st, 2003.

Barbara MacBeathSecretary, CAPLATalisman Energy Inc.

Minutes of the monthly CAPLA Board meetings are available to any memberupon request to the CAPLA office.

Corporate Sponsorship Opportunitiesare available as follows at the CAPLA Conference 2004 “Putting the Pieces Together”:

EDUCATION SESSIONS Current topics include:“Coal Bed Methane – Wave of the Future”“2004 CAPL Operating Procedure – What You Need to Know”“Economic Evaluations and Land Decisions”“ U.S. Land Administration- How They Do It Down South”

ADVERTISING Delegate Showguide and registration giftsLUNCHEON Honorariums for speakers, lunch, table items, door prizesEXHIBITOR BOOTHS Includes advertising in delegate brochure and exposure to 700+ delegatesWEBSITE Sponsorship of a dedicated Conference website featuring on-line registration and updated

Conference informationGOLF TOURNAMENT Sponsors for each hole, door/team prizes, lunch, dinnerDINNER THEATRE - “JUBILATIONS” Dinner, table centerpieces and door prizes

Look for further details in the New Year and updated information on the CAPLA website www.caplacanada.orgMarketing Chair: Darlene Rogers Telephone: 271-7073


Suzanne ArtinianIndependentTo Alliance Pipeline Ltd.

Darcy BoschIndependentTo Resolution Land Services Ltd.

Marcene CastellaExxonMobil Canada EnergyTo Independent

Terri L. CharronIBMTo EnCana Corporation

Nicole CouvesCavalier Land Ltd.To EnCana Corporation

Lesley A. CraigIndependentTo 736399 Alberta Ltd.

Barb DoironIndependentTo Addison Energy Inc.

Kim DoyleEOG Resources Canada Inc.To Burlington Resources Canada Ltd.

Lawrence FisherVintage Petroleum Canada, Inc.To Rock Energy Ltd.

Heather FosterLexxor Energy Inc.To Atlas Energy Ltd.

Peggi GuentherResolute Energy Inc.To Independent

Marny HarveyCalpine CanadaTo NAL Resources Limited

Kris HauserIndependentTo True Energy Inc.

Leora HudsonAPF Energy Inc.To Harvest Operations Corp.

Sheri-Ann HuskaAltagas Services Inc.To NAL Resources Limited

Denise HutscalViking Energy TrustTo Anadarko Canada Corporation

Jennifer JanMarathon Canada LimitedTo Husky Energy

Sue LoefflerIndependentTo Brigus Resources Ltd.

Cathy J. LotwinIndependentTo Qbyte – a division of IBM

Melanie MacMichaelCanadian Natural Resources LimitedTo Canadian Superior Energy Inc.

Ann MannCanadian Natural Resources LimitedTo Samson Canada Ltd.

Marianne McKayMcKay Land Consultants Ltd.To Find Energy Ltd.

Carole A. ParkerIndian Oil and Gas CanadaTo Viking Energy Ltd.

Astrid D. SmithMarathon Canada LimitedTo Crew Energy Inc.

Gale SopczakKicking Horse Resources Ltd.To Independent

Kristi WeilandNavigo Energy Inc.To Paramount Energy Trust

NAME CHANGES

Brandee BaldryTo Brandee Scarrott

Jane GuseTo Jane Millions

Dali KukecTo Dali Courtright

Maureen MillerTo Maureen Miller-Werbisky

Elizabeth TarrTo Elizabeth Cracco

MEMBER INFOCHANGES

Mark DarrahJeff FrenchKristy HalatGeraldine HamptonKen HollingtonShamee Hoosein

Allison JonesMegan LloydKarmen McKayAlex McCloyKelly McDonaldCoreena Muise

Sarah MunozJen TarrantAndrea UrciuoliPam Yeoman

WELCOME TO OUR NEW CAPLA MEMBERS


UNDERSTANDING WELL LOGSJanuary 12, 2004 8:30 a.m. to 4:30 p.m.This seminar will enable anyone to obtain aquantitative understanding of well logs. Math contentis minimal and no previous well log experience isneeded.Fee: CAPL Member $350.00 plus GST

Non-Member $400.00 plus GST

AEUB GUIDE 56/60January 14 & 15, 2004 8:30 a.m. to 4:30 p.m.Guide 56 was updated in June 2003 – this course willdiscuss the changes and updates to the Guides, alongwith everything else you need to know if you areinvolved with these AEUB applications. Fee: CAPL Member $500.00 plus GST

Non-member $600.00 plus GST

CAPL FARMOUT & ROYALTYPROCEDURE

January 26 & 27, 2004 8:30 a.m. to 4:30 p.m.The participants in this seminar will be taken throughthe document and provided explanation aroundcertain clauses and issues that may arise out of usingthe document.Fee: CAPL Member $400.00 plus GST


SASKATCHEWAN P&NG REGULATIONS February 3, 2004 8:30 a.m. to 4:30 p.m.This seminar will provide an overview of theSaskatchewan Petroleum and Natural GasRegulations, including the land tenure system, leasecontinuation, poolings & bidding on Crown land.Fee: CAPL Member $350.00 plus GST


OIL SANDS TENUREFebruary 5, 2004 8:30 a.m. to 12:00 p.m.This seminar will focus on gaining an understanding ofthe current oil sands tenure regulations.Fee: CAPL Member $175.00 plus GST


CONCURRENT GAS BITUMENPRODUCTION

February 5, 2004 1:30 p.m. to 4:30 p.m.This course will include a discussion of the 1983splitting of gas rights from bitumen rights, and to gainan understanding of current EUB concurrentproduction, Information Directives and Regulations.Fee: CAPL Member $175.00 plus GST

Non-member $225.00 plus GST

UNDERSTANDING NG MARKETS &MARKETING

February 10, 2004 8:30 a.m. to 4:30 p.m.An overview of the fundamentals of gas marketing willbe provided.Fee: CAPL Member $350.00 plus GST


ALBERTA LIMITATIONS ACTFebruary 24, 2004 8:30 a.m. to 12:00 p.m.Selected personnel in every department should have aworking knowledge and understanding of the Act, sothat companies do not lose valuable rights.Fee: CAPL Member $175.00 plus GST


ECONOMIC CONSIDERATIONS FORLAND DEALS

February 25 & 26, 2004 8:30 a.m. to 4:30 p.m.Will help the participants use economics to assist inthe structuring and evaluating of land deals.Fee: CAPL Member $450.00 plus GST


Also:Freehold Mineral Lease March 1Selected Developments inOil & Gas Law March 5, 12 & 19

UPCOMING CAPL COURSESFor registration or more information on these or any other CAPL seminar,

please contact the CAPL office at 237-6635, fax 263-1620 or e-mail [email protected] www.landman.ca for the full calendar of seminars


FOURTH ANNUAL JOINT NETWORKING EVENT

WINE TASTING

Thursday, January 29, 2002Mynt Ultralounge – 516 - 9th Ave SW

4:30 pm to 8:30 pm

$25 Ticket Includes:

great wine appetizersdoor prizes

FOR TICKETS PLEASE CONTACT:Robyn Van den Bon

Please call 645-6557 for tickets

Deadline for tickets January 23, 2004

Photocopy and retain for future use

CAPLA Member ❑ Non-Member ❑

First Name: Last Name:

Corporation:

Mailing Address:

Postal Code: E-Mail:

Phone: Fax:

Course Name: Date:

Fee Enclosed: $ GST: $ Total: $

❑ Cheque Enclosed or Charge to my: ❑ VISA ❑ AMEX ❑ MasterCard

Card Holder Number: Card Holder Name:

Expiry Date: Signature:

Please return this form with applicable fee to:(Payment must accompany registration to confirm your place)CAPLA’s GST 136820362

CAPLA440 - 10816 MacLeod Trail S. Suite 359

Calgary AB T2J 5N8Phone: 571-0640

CANCELLATION POLICY: CAPLA will reimburse course fees provided a participant withdraws in writing(fax, email or Canada Post) 30 days prior to the date of the course. If a participant fails to cancel registrationwithin this time, a refund will not be issued; however, a substitute may be sent in place of the registeredparticipant. Companies that initially register a non-member and substitute a member will not be reimbursedthe balance of the fee. CAPLA will impose a $50.00 administration charge on all canceled registrations.

FAXED OR EMAILED REGISTRATION FORMS WILL ONLY BE ACCEPTED FOR CREDIT CARD SUBMISSIONS

CourseRegistration



UPCOMING CAPLA COURSESSaskatchewan Land Registry

Course Date(s) Registration Deadline*February 4 or February 5, 2004 January 27, 2004Maximum of 15 attendees in each session.Location & Lunch Duration & Check-In TimeIHS Learning Centre 8:30 a.m. – 4:30 pm39th Floor Petro-Canada West Check-in begins 1/2 hour prior to start150 – 6 Avenue SWLunch: IncludedMember Fee Non-Member Fee$240.75 ($225.00 + $15.75 GST) $321.00 ($300.00 + $21.00 GST)

This full day course will focus on Oil and Gas related Title searching, Interest Registration and trouble shooting ofinformation Packet submissions to Information Services Corporation of Saskatchewan (ISC), formerly SK Land Titles.Learn how to easily navigate within the ISC website, amalgamate client numbers, perform Title searches, search andprint Interest (caveat) information, as well as registering, assigning and discharging an Interest.

Administration of RoyaltiesCourse Date(s) Registration DeadlineFebruary 17, 2004 February 6, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 4:30 p.m.Lunch: Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

What to BringParticipants are asked to bring a calculator. We also recommend that Land Administrators invite their ProductionAccountants to attend as one of the main objectives of this course is to provide common terms of reference for Landand Accounting groups. NOTE: Production Accountants who are members of CAPPA will be offered this course atthe CAPLA Member fee.

The focus of this course is: 1. interpretation of the royalty clauses in the land agreements (including deductions); 2. how to present this information to the Accounting department; 3. how the Accounting department applies this information; and 4. what the actual calculations will look like.

Some of the royalty types to be reviewed are Lessor Royalties; Farmor Royalties; Gross Overriding Royalties; NetProfits Interests and Net Revenue Interests.

Analyzing Contracts - NoviceCourse Date(s) Registration DeadlineFebruary 18, 2004 February 9, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 4:30 p.m.Lunch: Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

Through discussion led by the instructor, this course will provide a Lease Administrator and Junior Contract Analystwith a basic knowledge of how to analyze a land agreement and apply it to the land records. Participants will alsolearn to determine when earning has occurred, how the operating and accounting procedures relate to the contract,and to document/track outstanding obligations.


The Alchemy of Personal Leadership - Brains, Beliefs & Behaviours at WorkCourse Date(s) Registration DeadlineMarch 10, 2004 March 2, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 4:30 p.m.Lunch: Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$ 315.65 ($ 295.00 + $ 20.65 GST) $ 401.25 ($375.00 + $26.25 GST)

Registration is limited to 20 participants.In the workplace, your greatest asset is not what you know. It’s knowing who you are and how to channel youractions to get the results you want. Real change, on a personal level, starts by examining the effects of belief systemsin your life and workplace. Acting on new working beliefs can springboard you into a future that you have created.In this seminar you will:• Explore the fundamental roles of brains, beliefs and behaviours in operating belief systems;• Determine the effect of belief systems in your life and workplace;• Learn about the importance of context and how little things can make a big difference;• Discover how to sustain your energy and thrive in challenging situations;• Find out the critical requirements for personal leadership;• Identify where and how you can make a difference to your own work situation;• Develop an action plan for a future that you have created.

Resolving ConflictCourse Date(s) Registration DeadlineMarch 23, 2004 March 8, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 4:30 p.m.Lunch: Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$267.50 ($250.00 + $17.50 GST) $347.75 ($325.00 + $22.75 GST)

Registration is limited to 20 participants.This one-day workshop deals with the causes and effects of interpersonal conflict, with particular emphasis on thedynamics of conflict, conflict resolution styles and the cycle of conflict. Participants begin by examining how theycurrently handle interpersonal conflict, learn a model for collaborative communication and then through case studiesand role-playing, consider a broad range of skills, approaches and techniques useful in solving interpersonal disputes.

Administration of EUB Guide 56Course Date(s) Registration DeadlineApril 28, 2004 April 20, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 12:00 p.m. (1/2 day)Lunch: NOT Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$133.75 ($125.00 + $8.75 GST) $219.35 (205.00 + $14.35 GST)

This half-day course provides an understanding of EUB Guides 56 and 60 and how they affect various aspects ofsurface land acquisition from an administrative perspective.

Third Party Surface AgreementsCourse Date(s) Registration DeadlineMay 5, 2004 April 26, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 4:30 p.m.

UPCOMING CAPLA COURSES cont’d



Lunch: Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

What to BringParticipants are encouraged to bring their own samples and questions, which will be discussed if time permits.

Calgary / Canmore Course & Field TripCourse Date(s) Registration DeadlineMay 14, 2004 May 1, 2004Location & Lunch Duration & Check-In TimeBus Tour from Calgary to Canmore which includes 7:45 a.m. – 9:00 p.m.Continentail Breakfast, Lunch and Dinner. Participants meet at the Heritage Park OverflowParking - SW Corner of Heritage Drive and 14th StreetCourse Fee$428.00 (400.00 + 28.00 GST) Maximum 35 participants

This class must have a minimum of 20 participants to runWhat to BringSouthern Alberta’s weather can be beautiful, and, in a matter of hours, it can get ugly. Bring a hat, sun glasses, sunscreen and a day pack complete with some warm weather clothing, wind jacket and rain gear. Remember yourcamera and/or camcorder.

Bad Weather NoteIf weather is too disagreeable you will be contacted the evening before if the date is to change (please provide yourhome or cellular telephone number on your registration form).

The course/field trip begins in Calgary, proceeds to Turner Valley, passes through the foothills and ends in Canmoreprior to returning to Calgary. En route, participants learn the basics about exploration/exploitation geology,geophysics and engineering - how oil and gas reserves are found, extracted and marketed - as well as gaining insightinto the history of the petroleum industry and the impact changing technology has had throughout the years. Fromoutcrop to discovery well site, from oil pool to sour gas pool, participants are taken to some of the very spots thatchanged Alberta’s history. By days end, participants will understand the basics of rock and reservoir types, seals,traps, exploration/drilling methodologies, processing, transportation and play economics. Aside from the technicaland economical aspects of the industry, participants will also gain a comprehensive insight into the historical andpresent day economic importance of the oil and gas industry within the economy of Alberta and Canada. Toursdepart from Calgary at 8:00 am and return at 9:00 pm.

Topics covered will include an overview of the various types of agreements in use, the legislation governing them aswell as a practical hands-on workshop on how to use these agreements. Additional topics include an overview ofstandard requests and how to process such requests. The course will also discuss the use of CAPLA’s Master RoadUse Agreement.

Alberta Crown: Transfer & P&NG Licence AdministrationCourse Date(s) Registration DeadlineMay 19, 2004 May 11, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 1:00 p.m. - 4:30 p.m. (1/2 day)Lunch:NOT Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$133.75 ($125.00 + $8.75 GST) $219.35 (205.00 + $14.35 GST)

What to BringParticipants are encouraged to bring their own samples and questions, which will be examined if time permits.



The first portion of this course will provide an overview of the administration of transfers; P&NG licences; rentals;offset compensation and surrenders. The second portion provides hands-on experience in proper completion oftransfer forms and P&NG Licence applications for grouping and validation.

Reading Survey Plans WorkshopCourse Date(s) Registration DeadlineMay 26, 2004 May 17, 2004Location & Lunch Duration & Check-In TimeAM in classroom 9:00 a.m. – 5:00 p.m.Location Announced in Course Confirmation Letter Check-in begins 1/2 hour prior to startPM touring a wellsiteLunch: IncludedMember Fee Non-Member Fee$240.75 ($225.00 + $15.75 GST) This is a MEMBERS ONLY course.

Registration is limited to 26 participants.What to BringAttendees will tour a completed wellsite (not drilling). Please dress appropriately for weather conditions ensuringwarm clothing and hiking boots or similar footwear is worn.

The in-class portion of this course will provide the information required to read and interpret survey plans correctlyto ensure all required consents and agreements are identified. The field trip will enable attendees to gain valuablefield experience and bring the survey plan to “life”.

Administration of Surface Rights in AlbertaCourse Date(s) Registration DeadlineJune 2 & 3, 2004 May 25, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. – 4:30 p.m. (2 days)Lunch: Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$299.60 ($280.00 + $19.60 GST) $385.20 ($360.00 + $25.20 GST)

Provides a review of the requirements for taking a proposed well location from its inception through to the end ofdrilling and completion operations from a Surface Land Administrator’s perspective. Alberta surface leasedocumentation will be the focus.

Alberta Crown: The Continuation Application Form & Case StudiesCourse Date(s) Registration DeadlineJune 16, 2004 June 8, 2004Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 9:30 a.m. - 4:00 p.m.Lunch: Included Check-in begins 1/2 hour prior to startMember Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

What to BringParticipants are encouraged to bring their own samples and questions, which will be examined if time permits.

This course utilizes case studies to highlight the application processes for Alberta Crown lease continuations. A briefoverview of the relevant regulations will be provided to gain a better understanding of continuations. Exercises willbe used to provide hands-on experience for the successful completion of continuation applications.

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SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAYJANUARY

New Year’s DayElection Nomination

Deadline

NEXUS Deadline forFebruary Issue

Luncheon Meeting @ SheratonEau Claire Liz Denham on The

Privacy Act & How it Affects You

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SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAYFEBRUARY

CourseSaskatchewan LandsRegistry Full Day Lab

Family Day

NEXUS Mailout

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SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAYMARCH

CourseAlchemy of Personal

Leadership

AGM @ Calgary PetroleumClub Speaker TBA

NEXUS Deadline forApril Issue

Printed by: First on Colour215 - 6th Avenue SW, Calgary, AB T2P 0R2 Phone: 403 265-4477 • Fax: 403 265-4458 email: [email protected]

CAPLA VoluteerRecruitment

EnCana Amphitheatre

CAPLA/IRWA JointNetworking Event

Wine Tasting at MynyUltralounge

CourseSaskatchewan LandsRegistry Full Day Lab

CourseAdministration of

Royalties

CourseAnalyzing Contracts

Novice

CAPLA 10thAnniversary GALAStampede Round

Up Centre

Breakfast Meeting JonathanChapman on Capitalizing on

Consulting Contracts

CourseResolving Conflict