7738 Capla Newsletter · 2016-01-19 · your professional and personal lives you still need to make...

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Volume 8.1 April 2003 CAPLA DINNER MEETING Will be held: May 21, 2003 at Sheraton Eau Claire 4:30 p.m. - 8:00 p.m. See Registration Form on Page 4 Guest Speaker: J. Michael Gatens, III Topic: Natural Gas from Coal: A Canadian Outlook Deadline for next CAPLA NEXUS: June 12, 2003 IN THIS EDITION.... CAPLA Board Highlights . . . . . . . . . . . . . .2 Dinner Meeting Notice . . . . . . . . . . . . . . .3 Misappropriation of Operating Advances .5 2003 CAPL Operating Procedures . . . . . . .6 Sask. Advisory Committee . . . . . . . . . . . .6 Dispute Resolution Task Force . . . . . . . . .7 Olds College Update . . . . . . . . . . . . . . . . .9 Supreme Court Clarity on Overriding Royalties . . . . . . . . . . . . . . . . . . . . . . . . .10 Are You SAD? . . . . . . . . . . . . . . . . . . . . .12 Estate Planning . . . . . . . . . . . . . . . . . . . .13 Developing O&G Reserves in Yukon . . . .16 Industry Associations . . . . . . . . . . . . . . .17 Conference 2004-Volunteer Call . . . . . . .18 New CAPLA Board Members . . . . . . . . . .18 Mentorship . . . . . . . . . . . . . . . . . . . . . . .19 You Wanted To Know . . . . . . . . . . . . . . . .20 Course Registration Form . . . . . . . . . . . .21 Upcoming CAPLA Courses . . . . . . . . . . . .22 Roster Correction Notice . . . . . . . . . . . . 26 Alberta Energy Tenure Info Exchange . . .27 CAPLA Tuesday Golf League Registration . .28 CAPLA Golf Tournament Registration . . .29 Land Agent Golf Tournament Registration .30 CAPLA/CAPL Network Night Registration . .31 Upcoming CAPL Courses . . . . . . . . . . . . .32 Member Information Changes . . . . . . . . .33 MESSAGE FROM THE VICE PRESIDENT The CAPLA 2003 election saw the highest recorded voter turn out. At the time of the election, CAPLA had 1538 eligible voters and about 171 or 11% of the eligible voters voted. The voters chose to vote as follows: Electronically -- 112 Advance Polling Station -- 5 Annual General Meeting -- 54 Therefore, I just wanted to say thank you for making time in your busy schedules to vote via one of the three avenues. Thank you Shawn McReavey and Nancy Wilkey, for considering and then following through with running for the position of Vice President. People like you understand that even when you are stretched to the maximum in both your professional and personal lives you still need to make time to volunteer. The rewards for volunteering are countless, from the number of new people you meet inside and outside of CAPLA, to the satisfaction gained of doing something from which you, your friends, your peers and your business associates will benefit. Therefore, I strongly urge all eligible members to reflect for one moment upon the importance of CAPLA in your lives and to consider either running for a position on the Board or nominating an eligible member for a position on the Board for the 2004 election. You may be saying, “The 2003 elections just ended so why do I have to think of this now?” To wait until the deadline for nominations is too late! You need to start now working on potential candidates for the positions of President, Treasurer, Education, Technology, Government Relations and Industry Relations. The continued success of CAPLA is dependent on its members who can build upon CAPLA's past, maintain CAPLA's integrity, and lead CAPLA into the future. You cannot identify those kinds of members at the last minute! Now I want to say thank you to the outgoing Board members; namely: Debbie Degenstein, Communication Director, Val Anderson, Events Director, Effective March, 2003 CAPLA’s Membership was 1,698

Transcript of 7738 Capla Newsletter · 2016-01-19 · your professional and personal lives you still need to make...

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Volume 8.1April 2003

CAPLADINNER MEETING

Will be held:May 21, 2003 at

Sheraton Eau Claire4:30 p.m. - 8:00 p.m.

See Registration Form on Page 4

Guest Speaker:J. Michael Gatens, III

Topic:Natural Gas from Coal:

A Canadian Outlook

Deadline for nextCAPLA NEXUS:

June 12, 2003

IN THIS EDITION....CAPLA Board Highlights . . . . . . . . . . . . . .2Dinner Meeting Notice . . . . . . . . . . . . . . .3Misappropriation of Operating Advances .52003 CAPL Operating Procedures . . . . . . .6Sask. Advisory Committee . . . . . . . . . . . .6Dispute Resolution Task Force . . . . . . . . .7Olds College Update . . . . . . . . . . . . . . . . .9Supreme Court Clarity on OverridingRoyalties . . . . . . . . . . . . . . . . . . . . . . . . .10Are You SAD? . . . . . . . . . . . . . . . . . . . . .12Estate Planning . . . . . . . . . . . . . . . . . . . .13Developing O&G Reserves in Yukon . . . .16Industry Associations . . . . . . . . . . . . . . .17Conference 2004-Volunteer Call . . . . . . .18New CAPLA Board Members . . . . . . . . . .18Mentorship . . . . . . . . . . . . . . . . . . . . . . .19You Wanted To Know . . . . . . . . . . . . . . . .20Course Registration Form . . . . . . . . . . . .21Upcoming CAPLA Courses . . . . . . . . . . . .22Roster Correction Notice . . . . . . . . . . . . 26Alberta Energy Tenure Info Exchange . . .27CAPLA Tuesday Golf League Registration . .28CAPLA Golf Tournament Registration . . .29Land Agent Golf Tournament Registration .30CAPLA/CAPL Network Night Registration . .31Upcoming CAPL Courses . . . . . . . . . . . . .32Member Information Changes . . . . . . . . .33

MESSAGE FROM THE VICE PRESIDENT

The CAPLA 2003 election saw the highest recorded voter turn out. At thetime of the election, CAPLA had 1538 eligible voters and about 171 or 11%of the eligible voters voted. The voters chose to vote as follows:

Electronically -- 112Advance Polling Station -- 5Annual General Meeting -- 54

Therefore, I just wanted to say thank you for making time in your busyschedules to vote via one of the three avenues.

Thank you Shawn McReavey and Nancy Wilkey, for considering and thenfollowing through with running for the position of Vice President. People likeyou understand that even when you are stretched to the maximum in bothyour professional and personal lives you still need to make time tovolunteer.

The rewards for volunteering are countless, from the number of new peopleyou meet inside and outside of CAPLA, to the satisfaction gained of doingsomething from which you, your friends, your peers and your businessassociates will benefit. Therefore, I strongly urge all eligible members toreflect for one moment upon the importance of CAPLA in your lives and toconsider either running for a position on the Board or nominating an eligiblemember for a position on the Board for the 2004 election. You may besaying, “The 2003 elections just ended so why do I have to think of thisnow?” To wait until the deadline for nominations is too late! You need tostart now working on potential candidates for the positions of President,Treasurer, Education, Technology, Government Relations and IndustryRelations. The continued success of CAPLA is dependent on its memberswho can build upon CAPLA's past, maintain CAPLA's integrity, and leadCAPLA into the future. You cannot identify those kinds of members at thelast minute!

Now I want to say thank you to the outgoing Board members; namely:Debbie Degenstein, Communication Director, Val Anderson, Events Director,

Effective March, 2003CAPLA’s Membership was 1,698

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CAPLA BOARD HIGHLIGHTSAt the January Meeting:• The Board approved the 2003 CAPLA Operating Budget.• The Board approved a PID (Project Initiation Document) to redesign the CAPLA

website to improve functionality, usability and efficiency. The redesign will includemoving the website from its current proprietary platform to one that is widely usedand supported.

• The Board endorsed the Standardization Committee's proposal to establish aSaskatchewan Government Relations Subcommittee.

• The Standardization Committee requested Board approval of their initiative toinclude Continuation rental charges on the Alberta Crown Monthly Statement. TheBoard approved the initiative, with the recommendation that Industry be given somelead time to consider internal process or system changes that may be required.

• The Board approved a motion to change the name of the IS Committee to theTechnology Committee.

• The Board approved a request by the Communication Committee to set up an e-mail address to receive all submissions to the Nexus. The e-mail [email protected].

Connie ButcherSecretary, CAPLAIBM Business Consulting Services

Minutes of the monthly CAPLA Board meetings are available to any member uponrequest to the CAPLA office.

Marlene Gouldie, Member Services Director, and Connie Butcher, Secretary for their contribution of time,energy and ideas over the past two years. My heartfelt thanks and best wishes in your future endeavors. Iappreciated the opportunity of serving with each of you.

Welcome to the following individuals:

Nancy Howes-Olmstead, Communication DirectorJoanna Pelletier, Events ChairKelly Erickson, Member Services DirectorBarbara MacBeath, Secretary

Your individual strengths will certainly help to make a strong and vibrant Board. I am excited about workingwith all of you over the next two years.

Heather Stables Fofonoff, P.LandVice President

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DATE: WEDNESDAY, MAY 21, 2003

REGISTRATIONDEADLINE: Wednesday, May 14, 2003

LOCATION: Sheraton Eau Claire

TIME: 4:30 pm to 8:00 pm

EVENT COST: $42.00 for Members (GST Included)$45.00 for Non-Members (GST Included)

REGISTRATION: Registration is on pre-paid basis only. Submit completed registration form(accompanied by payment), by the registration deadline, to CAPLA 440 - 10816Macleod Trail S. Suite 359, Calgary AB T2J 5N8. Payment options are Cheque,VISA, MasterCard or AMEX. Cheques made payable to CAPLA. Faxed forms willbe accepted only for credit card submissions. Register early to avoiddisappointment. Provide your name at the door to gain entrance to the event.

TOPIC: Natural Gas from Coal: A Canadian Outlook

Mr. Gatens will present an overview of Coalbed Methane potential in Canada,provide an industry activity update, cover the challenges to the development ofCoalbed Methane, talk about managing stakeholder issues and discuss what thefuture holds.

SPEAKER: J. Michael Gatens, III is Chairman and CEO of MGV Energy Inc., an independent oiland gas producer in Calgary, Alberta. He is also Chairman of the Canadian Societyfor Unconventional Gas (CSUG), formerly the Canadian Coalbed Methane Forum,and is MGV's liaison with the Coal Association of Canada (CAC) and the CanadianAssociation of Petroleum Producers (CAPP). Mr. Gatens received B.S. and M.S.degrees in Petroleum Engineering from Texas A&M University in 1980 and 1987 andis a member of APEGGA. Active in numerous organizations, he has been especiallyactive in the Society of Petroleum Engineers (SPE) and was named a DistinguishedMember in 2000. He served on the SPE International Board as Director of theNortheastern U.S. Region from 1995-97, serving on the Executive Committee in1997. Mike also serves on the Board of the U.S. Petroleum Technology TransferCouncil (PTTC) and the Alberta Theatre Projects (ATP).

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CAPLA DINNER MEETING REGISTRATIONWEDNESDAY, MAY 21, 2003

Registration Deadline: Wednesday, May 14, 2003

Cancellation Deadline: Noon Friday, May 16, 2003 by fax to CAPLA @ 571-0644

Location: Sheraton Eau Claire

Time: 4:30 pm to 8:00 pm

Fee: Member $42.00, Non-Member $45.00 (GST Included)

Speaker: J. Michael Gatens, III - Chairman and CEO of MGV Energy Inc.

Topic: Natural Gas from Coal: A Canadian Outlook

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

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

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

Card Number: Expiry Date: 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

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MISAPPROPRIATION OF OPERATINGADVANCES

We have observed at times operators engaging inthe disturbing and potentially very detrimentalpractice of failing to provide their own funds to thejoint account or to obtain funds to pay for theirown shares of expenses prior to conducting anoperation pursuant to an operating procedure.Operators will issue an AFE to the non-operatorsand soon thereafter issue a cash call to provide thejoint account with monies to fund the operation.The non-operators will diligently remit the cashcalled funds to the operator who then proceedswith the operation and engages third party tradesand service providers to complete the requiredwork. Unbeknownst to the non-operator, theoperator either does not have its own funds to payfor its share of operations or simply fails toadvance its share of funds to the joint account orpay its share of the third party bills. Nonetheless,the operator proceeds with the operation and usesall of the funds advanced by the non-operators towholly or partially pay for the operation. At the endof the operation, the operator finds itself in eitherone of two positions:

a) The funds advanced by the non-operators aresufficient to cover the amounts owed to thirdparties and the operator simply takes a freeride on the backs of the non-operators withoutcompensating the joint account; or

b) There are insufficient funds to cover the thirdparty expenses and the operator delays inpaying the third party trades, hoping to pay theshortfall from the operator's share of theproduction revenues, or, in some instances,the revenues of all parties.

The potential impacts of a situation such as thiscan be very serious. Where there is significantdelay in paying the third party trades, all parties tothe operating procedure are exposed to thepotential filing of a builder's lien against the jointlands. Delay in payment to third party trades canand often does result in accrued interest being dueand payable to the third parties, which interestamounts can get buried or misdescribed in futurejoint venture billing statements (or worse yet, set-off against the non-operator's production revenue)

such that the non-operators are not made aware ofthe fact that it was paid. If the third party tradesare not paid in full or are forced to compromisetheir claims, the non-operators will have becomeunwitting accomplices to the “shafting” of thetrades at the hands of the operator.

In considering a situation such as the onedescribed above, one cannot help but point outthat in a many circumstances, the non-operator isoblivious to the fact that the operator is engagingin such behaviour. To the non-operator, thesituation may appear completely normal (i.e. itadvances funds for the conduct of an operation,and the operation is completed, and productionrevenue cheques begin to flow). It is for this reasonthat non-operators must be diligent in examiningthe joint venture billings that come from theoperator and be willing to conduct an audit on thejoint account to reveal such abuses undertaken bythe operator.

Vigilance is the only real way for the non-operatorto protect itself. If such a situation is identified nofurther funds should be advanced to the operatoruntil the situation has been properly resolved andthe operator's share of expenses have been paid orprovided for.

In the situation described above, it can be arguedthat the operator has misappropriated trust funds.If the trades are fully paid, the operator hasessentially overcharged the non-operators for theirshare of the operation costs. If the amountprovided by the non-operators is enough to satisfythe entire cost of the operation, then each of thenon-operators has paid its own share plus part ofthe operator's share of the costs associated withthe operation and the operator should be holdingthe surplus cash call in trust for the non-operators(see clause 507 of the 1990 Canadian Associationof Petroleum Landmen Operating Procedure).

Instead, the operator has improperly applied thesurplus trust monies to pay the operator's share tothe third party trades and service providers. If thetrades are not fully paid, the operator has notadvanced the full cost of the operation as it isrequired to do (see Clause 502 of the 1990 CAPL).In either case the operator has arguablymisappropriated the funds of the non-operator

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which are deemed to be trust funds under Clause507.

Unfortunately, short of adopting some other set-offstrategy or self-help remedy and conducting anaudit, the only option available to a non-operatorin this situation is to pursue legal action for breach

of trust.

Kent R. AndersonPartnerMiller Thomson LLPTel: [email protected]

2003 CAPL OPERATING PROCEDURE(March 2003 Draft)

By now you should all be aware of the draft releaseof the new 2003 CAPL Operating Procedure. Withits fifth version underway, industry fully recognizesits critical importance to our business, eliminatingthe need for negotiating those basic business termsin a multitude of different ways. The incorporationof the Operating Procedure has fundamentallychanged the way we document the businessrelationship between joint owners of P&NG rights.

Modifications in this version reflect warrantedchanges based on industry's experiences with the1990 document, evolving business needs, legalinfluences, a move to "plainer language", and tostructure the document to exploit systemstechnologies.

Some highlights of interest to administration:• Land Administrator definition: recognizing that

at times the party responsible for maintenanceof a title document may not be a party to aparticular contract

• Segregation: the topic of too manyconversations and multiple revisions todocuments, has been addressed in a way thatwill alleviate a significant number of document

reworks and sets the path for potentialamending agreements to existing problematiccontracts

• Delinquent Parties: now have a time limit of 48months to rectify their delinquent status beforetheir assets are proportioned between theremaining parties

• Disposition Article: numerous changesincluding a time limited ROFR period

There are significant other changes to thedocument, too numerous to list. As well, theannotations in this version have been expanded andinclude examples and explanations to provide abetter understanding of the document itself.Remember, the annotations are your friend - usethem!

Check out the CAPL website and follow the links tothe documents - You need to participate inreviewing and commenting on this draft as onlywith input from industry personnel can thisdocument be the best yet!

YOU CAN MAKE A DIFFERENCE!

Respectfully submitted on behalf of the 2003 CAPLOperating Procedure committee, Lynn Gregory

Saskatchewan Advisory Committee

Jan Bellis of Husky Energy has agreed to chair this committee and is looking forvolunteers for a task force to help develop strategies for addressing industry and

Saskatchewan Crown regulatory issues.

Please contact Jan Bellis at [email protected] or 750-1354 to join this taskforce. An initial planning meeting will be held in the latter part of April.

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TASK FORCE TACKLES COMPANY-TO-COMPANY DISPUTE RESOLUTION

Disputes with other companies are an everydayoccurrence for most oilpatch operators. They'realso costly, not only in dollars but in lostopportunities and memories that linger and affectother potential deals.

However, those disputes need not end up beforethe Alberta Energy and Utilities Board or in court,says an industry task force that is looking forbetter ways to resolve conflicts.

“This isn't to make a lot of work for mediators andtake work away from lawyers,” Dave Savage, vice-president of business development at TriQuestEnergy Corp., said in a recent interview. “It's tomore constructively collaboratively-resolveconflict.”

A designated landman, he helped to spearhead thecompany-to-company dispute resolution taskforce earlier this year.

Savage emphasized the group does not want tosee a two-year task force but hopes to haverecommendations and guidelines by the spring of2003. The task force consists of four teams thatwill address specific targets: communication,education and liaison; regulatory alignment;contractual provisions; and tools and guides forindustry. The initial focus has been on meetingwith industry associations, including the CanadianBar Association, and getting them on side, saidPat Forrest, chair of the communications team.

“Ultimately to have success you need individualcompanies and people in authority in thesecompanies to step forward and say: 'I believe inthis,'” added Jim MacLean, land manager atChevron Canada Resources and another task forcemember. The group will be encouragingcompanies to sign some sort of protocol showingtheir company's support for appropriate disputeresolution options for all conflicts. That couldmean a renewed negotiation, facilitation,mediation, arbitration, a public hearing and/orlitigation.

There are definite incentives to companies to

resolve conflicts, said MacLean. One is the abilityto obtain certainty on a project. The second, lessvisible, is the lost cost of what persons embroiledin a dispute could otherwise have been working onto generate value, he said. “We like to get dealsdone as quickly as possible and what landmen aresupposed to be doing is bringing opportunities tothe table, not spending a lot of time fixing pastproblems,” said Carolyn Murphy, president of theCanadian Association of Petroleum Landmen. “Weknow they have to be fixed but there is not a lot ofvalue-added in that.”

One of the first litmus tests for a differentapproach to disputes will be revised operatingprocedures that govern how CAPL membersconduct their business. The draft, which looks at arange of ADR tools, will include a mechanism inwhich the project people themselves are able tonegotiate a solution as a first step, said MacLean.The agreement provides for one of the parties toinitiate a process in which the senior managementof both companies becomes involved in trying toresolve the issue.

“The magic of this is to call the right people to thetable in a position of authority to make deals anddecisions,” added Savage. “In the majority ofthese situations, once the people have the time toaddress them, bring the right people to the tableand understand each other, that's all it takes,” hesaid. “There's nothing more formal than justsitting around the table and figuring out what it isyou are fighting about.”

Management may choose to involve independentthird parties to help facilitate discussions, saidMacLean, an association member who has beeninvolved in the writing. However, “you are tryingto encourage parties in a constructive mannerearly in the process to talk between themselves,to frame the issue and explore opportunities,” hesaid. “If those discussions fail, then you startlooking at things like arbitration or mediation.”

Larger operators often are involved in very largeprojects, looking at continuing processes and thiscan result in litigation, he said. “The biggestcontribution we could possibly make would be tohelp people deal with their disputes themselvesearlier (when they are still small) and in a more

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constructive manner to mitigate the impact.” Ifcompanies do end up in a formal disputeresolution process, there will be better toolsavailable for them, MacLean suggested.

However, if the outcome of the task force processis an enormous proliferation of mediations andarbitrations, “then our process would havefailed,” he said. While success would be havingmechanisms other than litigation that people feelcomfortable with, the preferred process is to have“people talking in the right way at the right timeand have a regulatory infrastructure thatencourages people to do that.”

MacLean, though, emphasized that litigation stillneeds to be a possible way to resolve a conflict. “Itis critical that people understand this isn't avehicle to cause people to give up value to be niceto other people,” he said. “It is a vehicle to enablepeople to communicate more effectively and toresolve disputes more constructively, hopefullywithout destroying value for their organization.”

The new operating agreement to be releasedshortly varies significantly from the currentagreement, which is silent on dispute resolutionexcept for two or three specific references towhere matters may be referred to arbitration, saidMacLean. “There is nothing in the documentpresenting a staged process.”

Feedback from the document is going to beextremely helpful to the entire task force in termsof understanding whether people are now readyfor this initiative and a business philosophy thatplaces a value on trying to resolve negotiationsother than through the courts, through non-litigation vehicles, he suggested. “Anything thatopens up new avenues or encourages new ways ofreaching a positive resolution in CAPL's mind is agood thing,” said Murphy, manager of land andbusiness development at Stylus Exploration Inc.The more ADR becomes a known commodity forlots of different situations and the more it is used,the more likely negotiators are to consider theprocess before applying to the EUB, she said.

However, the task force is concerned with morethan simply changes to the CAPL operatingprocedure, said Savage. A number of companies

have been through the EUB process and whilemost report a high degree of satisfaction, there isstill frustration, he said. Companies want to knowwhy they cannot just get on with their jobs andhow they can make the process a little easier to gothrough.

In 2001, the first full year of operation for theboard's Appropriate Dispute Resolution process,seven company-to-company disputes went tothird-party mediation. Of these, four dealt withpooling with one each a disagreement overspacing, common carrier and a compressor. Theboard is now going back to ask participants whythey took their disputes to the board, said BillRemmer, ADR co-ordinator.

Gentry Resources Ltd. went through the board'sADR process with a midstream company in adispute concerning processing fees at its gasplant, said Rob Poole, manager of production andengineering. When Gentry opted to build its ownplant rather than pay the proposed fees, the othercompany appealed the application to the EUB. Asa result of the ADR process, which involved amediator knowledgeable in gas processingcharges, the midstreamer withdrew its objections.Gentry, though, ran into further delays at theboard level, learning that any application involvedin an ADR process is more closely scrutinized.

Poole said his company was satisfied with ADRcompared to the option of a board hearing.However, he still questions whether the complaintwas a legitimate objection or an objection tosomeone else's business opportunity. “The rulesare not strongly written so that a company will notabuse the process,” he said. “We tried to negotiatebut it had to take an application and an objectionto get the parties talking,” said Poole. “Do we haveto go that far or is there some other way ofeffectively engaging in ADR?”

Remmer said if there are regulatory and company-to-company processes that encourage anothercompany to get in the way of a project there is aneed to identify those things and makerecommendations to the EUB as to how they mightchange their practices. “They are an independenttribunal but there needs to be a point they canrecognize some of the games that go on,” he said.

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In a statement, Neil McCrank, EUB chairman, saidthe board “strongly supports” the use of ADR inresolving company-to-company disputes. “Oncethe guidelines are developed, I will then ask ourstaff to make recommendations for changes toEUB procedures to better align with theguidelines,” he said.

Elsie Ross Originally published in the Daily Oil BulletinDecember 20, 2002

If you want to become involved in the DisputeResolution Task Force contact George Green,CAPLA's representative on the Task Force.([email protected] 403-237-2430) Find outmore about CAPLA's participation in the TaskForce and the progress we are making towardachieving the goal of better business conflictmanagement.

OLDS COLLEGE LAND AGENT DIPLOMAPROGRAM AND LAND ADMINISTRATIONCERTIFICATE UPDATE: 2003

Another busy period of time has come and gonesince our last update in the Fall of 2002. With thecontinuing support of the industry we have beenbusily updating and enhancing both our LandAgent and Land Administration curriculum. Thanksagain to all who have supplied material and moralsupport to this process.

In 2000, Olds College created the one year LandAdministration Certificate from the original twoyear diploma. The intent was not only to provideindustry with a specially trained, highly motivatedindividual but to do it in a timely manner. Thecertificate was designed to meet the specific needsof land administrators but also to provide landagents with the opportunity to take landadministration courses. The land agent diplomastudents take thirteen of the twenty two coursestaken by the land administration students. Thisallows those land agent students who would like tocome back for a third year to pick up their landadministration certificate the opportunity to do soin one academic year. Likewise, landadministration students wishing to come back toacquire their land agent diploma can usually do soin approximately 1 - 1 ½ years, depending on theirtimetable. We have found that a number ofstudents in past years have chosen to takeadvantage of this arrangement.

We are in the process of putting together theacademic calendar for next year. Some of thechanges include the implementation of four new

courses in the Land Agent Program that willbecome effective for new students entering theprogram in the Fall of 2003. These include a coursefocussing on rentals and damages, one focussingon first nations/metis land issues, one focussingon an overview of agriculture practices and thelast one, which will be set up as a series ofseminars, is designed to bring in guest speakers totalk on current issues relevant to land agents andland administrators. We have also modified anumber of other courses including Fundamentalsof Water Management, Negotiation Skills andMediation Strategies and Business Writing ForIndustry. Students in the Land AdministrationCertificate will be able to access the new coursesin rentals and damages, first nations/metis landissues and land agent seminars as options in theirprogram. The general agriculture course willbecome a graduation requirement for bothfocusses.

Olds College is looking forward to anotherproductive and rewarding year of being involvedwith the land agent and land administrationsectors. We would like to express our deepappreciation for the support we have received todate. Thank you.

Doug PetersCoordinatorLand Agent and Land Information SystemsProgramsOlds College

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SUPREME COURT OF CANADA PROVIDESCLARITY TO THE OIL & GAS INDUSTRY ONOVERRIDING ROYALTIES

Introduction The Supreme Court of Canada recently releasedits decision in Bank of Montreal v. DynexPetroleum Ltd. (“Dynex”) and definitivelyanswered the question: “Can an overridingroyalty issued from a working interest (anincorporeal hereditament) be an interest inland?” Major J. cites G.J. Davies, and summarizesthe facts as follows:

Royalty arrangements are common forms ofarranging exploration and production in the oiland gas industry in Alberta. Typically, the ownerof minerals in situ will lease to a potentialproducer the right to extract such minerals. Thisright is known as a working interest. A royalty isan unencumbered share or fractional interest inthe gross production of such working interest. Alessor's royalty is a royalty granted to (orreserved by) the initial lessor. An overridingroyalty or a gross overriding royalty is a royaltygranted normally by the owner of a workinginterest to a third party in exchange forconsideration which could include, but is notlimited to, money or services (e.g. drilling orgeological surveying). The rights and obligationsof the two types of royalties are identical. Theonly difference is to whom the royalty wasinitially granted.

The appellant Bank of Montreal was a securedcreditor of Dynex Petroleum Ltd. (“Dynex”), acorporation in liquidation. The trustee inbankruptcy wanted to sell all the oil and gasproperties of Dynex. One issue was whether anysuch sale would be subject to overriding royaltiesarising out of the working interest held by Dynex.Also, there were several competing claimsagainst the appellant, which by the time of thisappeal had narrowed to the overriding royaltiesof the respondents, Enchant Resources Ltd. andD. S.Willness, who claimed a preference by way ofa caveat filed in the South Alberta LandRegistration District, claiming an interest inDynex's working interest as a result of servicesperformed for Dynex and/or its predecessors.

The respondents claimed their royalty rightscomprised interests in land and claimed priorityover the appellant because their interests, asprotected by caveats, preceded the appellant'sloans to Dynex and its predecessors. Theappellant submitted that at common law aninterest in land could not arise from anincorporeal hereditament and therefore therespondents' overriding royalties (which arosefrom a working interest, an incorporealhereditament) did not rank higher in priority thanthe appellant's security interest.

In this instance, the distinction would beimportant in that, if the overriding royalties werenot interests in land, the trustee in bankruptcycould sell Dynex's oil and gas properties free andclear of the obligation to pay overriding royaltiesand thereby increase the sale proceeds andfurther reduce the bank's loan loss. In thealternative, if the overriding royalties wereinterests in land, any sale of Dynex's oil and gasproperties would be subject to the overridingroyalties because they were registered by way ofcaveat prior to the Bank of Montreal security. Inthe latter case, there would be less sale proceedsto apply against Bank of Montreal's loan loss.

The Cases At common law, an interest in land could begranted from a corporeal hereditament but notfrom an incorporeal hereditament. In otherwords, if one held the title to a material object(i.e. land, buildings, minerals, trees or fixtures)they could then grant an interest in land whichissues from the title to the material object.However, if one held a right in land (i.e. rentcharges, annuities, easements or profit aprendre) they could not grant an interest in land.

In the case of lessor royalties, despite the factthat they arise from a profit a prendre (i.e. oil andgas lease) the caselaw is clear that they areinterests in land. In arriving at this conclusion,some of the caselaw shows support for theargument that the distinction between acorporeal hereditament and an incorporealhereditament is nothing but an antiquated systemof classification and that if the language creatingthe royalty indicates an intention to create an

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interest in land, then the royalty is an interest inland. However, some of the caselaw does notsimply dismiss the corporeal hereditament /incorporeal hereditament distinction as anantiquated system. In any event, the lessorroyalty cases arrive at the same conclusion bydeclaring that lessor royalties must be interestsin land because of the lessor's retention of thereversionary interest (i.e. title reverts back to thelessor at the expiration of the lease).

The overriding royalty scenario, however, doesnot enjoy the benefit of the two-prongedargument applied to the case of lessor royalties.As a result, and until the Supreme Court ofCanada ruled in Dynex, the caselaw exhibitedmuch uncertainty as to whether overridingroyalties were capable of being interests in land.Although the rights and obligations associatedwith lessor royalties and overriding royalties areidentical, the reversionary interest argumentdisappears in the context of overriding royaltiesbecause the royalty is paid to a third party andnot the party holding the original fee title. If thecourts were to definitively hold that overridingroyalties were capable of being interests in land,the common law concept that an interest in landcan not be granted from an incorporealhereditament would have to be cast aside, atleast in the context of the Canadian oil and gasindustry.

Dynex At trial, Rooke J. held on to the common lawprinciple and stated that “as a matter of law, alessee of an oil and gas lease (which is a profit aprendre), which is in itself an interest in land,obtained from a lessor (whether Crown orfreehold), cannot in law pass on an interest inland to a third party.” The Alberta Court of Appealreversed the trial decision and held thatoverriding royalties could constitute interests inland if intended by the parties. The SupremeCourt of Canada dismissed Bank of Montreal'sappeal and upheld the decision of the AlbertaCourt of Appeal. In addressing the question of whether theaforementioned common law principle should beapplied to the case at hand, Major J. states: “Itshould come as no surprise that some common

law concepts, developed in different social,industrial and legal contexts, are inapplicable inthe unique context of the industry and itspractices.” Furthermore, Major J. held that theappellant offered no convincing policy reasons formaintaining the rigid common law principle in thecontext of the oil and gas industry. The appellantreferred to a number of cases that held royaltyinterests not to be interests in land; however, ineach case, the fatal flaw was the lack of evidenceshowing an intention to create an interest in land.Accordingly, Major J. declared: “In this appeal, toclarify the status of overriding royalties, theprohibition of the creation of an interest in landfrom an incorporeal hereditament is inapplicable.A royalty which is an interest in land may becreated from an incorporeal hereditament suchas a working interest or a profit a prendre, if thatis the intention of the parties.” Major J. then citeswith approval the following statement of Virtue J.in Vandergrift:

A royalty interest or an overriding royalty interestcan be an interest in land if: (1) the language usedin describing the interest is sufficiently precise toshow that the parties intended the royalty to be agrant of an interest in land, rather than acontractual right to a portion of the oil and gassubstances recovered from the land; and (2) theinterest, out of which the royalty is carved, isitself an interest in land.

Conclusion Although it is now clear that overriding royaltiesare capable of being interests in land, it is alsoclear that not all overriding royalties willautomatically be interests in land. As a result,you may wish to consult an oil and gas lawyer toreview your overriding royalty agreements toensure that sufficiently precise language is usedto grant an interest in land. Furthermore, youshould consider registering caveats with respectto already existing overriding royalty agreements.

Steve P. H. BrownAssociateMiller Thomson LLPTel: 403-298-2452

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Are you SAD?

Are you sad? Not just sad, but SAD. In Calgary,during the months of October and November, webegin to cocoon for the winter months. ComeMarch, we become hopeful that winter is almostover and we begin to metamorphoses intobutterflies, filled with hope and thoughts of newadventures. Then along comes winter again… inMarch! This is somewhat typical for Calgary; wehave more snowfall in the month of March than anyother month of the year. I say year because we allknow what can happen in May, June and evenAugust! Nevertheless, the dark cold months ofwinter, with their shorter days, have an impact onour mental health. Every winter, thousands ofpeople experience SAD, Seasonal AffectiveDisorder. Upward of 25% of the population suffersfrom mild SAD and 5% suffer from a more severeform of SAD.

SAD is clinically defined as a seasonal pattern ofmood disorders. Interestingly, some studies showan equal division between spring/summer andautumn/winter depressive patterns. Winter SAD ismost pronounced in January and February. In ourclimate, SAD is a type of clinical depression thatregularly occurs in the winter months, with normalmood in the summer months.

SAD is also considered an atypical depression inthat symptoms are not characteristic of other mooddisorders. For example, hypersomnia andhyperphagia are symptoms not frequently found inother forms of depression. Hyperphagia isexcessive eating before feeling full and typicallyinvolves increased consumption of sweets in thelate afternoon and evening. Hypersomnia is thetendency to sleep for long periods of time withoutfeeling refreshed.

Listed below are common symptoms of SAD:• Changes in sleeping patterns, typically the need

for increased sleep.• Changes in eating patterns, typically an

increase in appetite and weight gain.• Craving for carbohydrates, sugary or starchy

foods.• Persistent sadness.• Anxious, irritable or empty mood.• Loss of interest and pleasure in previously

pleasurable activities.• Interpersonal conflict.• Leaden paralysis, a heaviness in the

extremities.• Depression subsides in the spring and summer

months.• Symptoms have occurred over two years, with

no non-seasonal episodes of depression and/orseasonal episodes significantly outnumber non-seasonal episodes of depression.

Although the cause of SAD is not known, it isthought that changes in/or delayed circadianrhythms, abnormal regulation of someneurotransmitters, seasonal depletion of sunlightand genetics may play a role in the onset of thedisorder. From an employment perspective, USstudies estimate that the direct and indirect cost ofSAD is $43.7 billion dollars per year.

What can you do?• Go for a daily walk without sunglasses, you can

even go as far as looking at the sun for shortperiods of time.

• As you walk, maintain your gaze upward and tothe left.

• Good nutrition and hydration can reduce theeffects.

• Notice each day how much longer the light ofday stays with us.

• Ask your health care provider aboutPhototherapy options including light box, brightlight therapy, and a light visor.

• Inquire if pharmaceutical interventions aresuitable for your case.

Interventions need to be used with caution due totheir side effects. Nutrient, hydration, and exerciseaid in good overall health. Phototherapy needs tobe monitored by an ophthalmologist andpharmaceutical interventions need to be monitoredby your health care provider.

Allison Waks and Dinny Payne 255-3773

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ESTATE PLANNING

What is estate planning:The general purpose of an estate plan is to organizeyour personal affairs so as to preserve your wealth.An estate plan typically involves structuring your Willso that, when you die, your assets will pass in themost advantageous manner possible to those whomyou have chosen to be the beneficiaries of your estate.An estate plan may also involve splitting income withother family members while you are alive so as toreduce your family's overall tax bill.

Who Needs an Estate Plan:Our eventual demise is certain and, becauseconversations from the grave are so difficult, we allneed an estate plan. The timing of our death is notcertain, therefore the time to consider estate planningis now.

Setting Your Objectives:As we make our way through life, our circumstanceschange. At different times we may have a dependentspouse, dependent children, dependent parents orothers who rely on us for financial support. Typically,during our earning years our dependents becomemore self-sufficient and our ability to accumulatewealth increases. Who we want to inherit our wealthmay also change as circumstances change. That iswhy it is so important to have an up-to-date Will.There may also come a time when we haveaccumulated more wealth than is necessary for ourindividual future needs, and structuring an estate planto distribute excess wealth to our beneficiaries duringour lifetimes may be something worth considering.

Professional Help:Even the simplest Will can involve complex legal andtax matters. When your assets include mineral rights,further complexities arise. People are unique and soare their estate planning objectives. The FreeholdOwners Association strongly recommends that all ofits members retain competent professionals to assistthem in structuring an estate plan. The followingcomments are intended to assist you in recognizingthe merits of estate planning and are no substitute forprofessional advice.

Relevant Factors in Estate Planning for Freehold Minerals:

Fractionation of Interests:Historically, freehold mineral interests have typicallybeen transferred from one generation to the next

equally amongst the heirs. In situations wheresucceeding generations have large families, thefreehold mineral interests rapidly becomefractionated. Excess fractionation may effectivelydestroy the value of your freehold mineral interests.The problem relates, in part, to today's mobile societyin which family members often become dispersedaround the world. Oil companies typically retain landagents to negotiate freehold lease agreements. Insituations where a single freehold property is held bya large number of individuals living in different areas,the oil company may spend more in land agent feesthan on actual lease bonus payments. Clearly, the lessan oil company pays in land agent fees, the moremoney the company has available to pay thefreeholder for a lease.

Fractionation of freehold mineral interests also givesrise to other practical problems for an oil company. Inorder to conduct oilfield operations on freeholdmineral interests, an oil company must secure leaserights from all owners of the property or face lengthyand costly hearings under the forced poolingprovisions of the Oil and Gas Conservation Act. As thenumber of individuals on title increases, the chancethat all family members will agree to the same leaseterms decreases. Nine signed leases on a propertywith ten freehold owners is the type of problem mostoil companies would prefer to avoid. Some companieshave policies which prohibit their staff from dealingwith freehold mineral interests where there are morethan a certain number of titleholders.

Land Titles Acts:In addition to the practical problems presented by thefractionation of freehold mineral interests, under theAlberta Land Titles Act, the Registrar may refuse toregister a transfer which gives rise to an undividedfractional interest in minerals which is less than anundivided 1/20th of the whole interest. Most of thefreehold owners in Alberta are the descendants ofsettlers who acquired their mineral interests at theturn of the last century as part of their homesteadlands. In many cases, these mineral interests havenow passed through three or four generations.Members of the current generation will increasinglybe forced to address the issue of legal registration oftitle. In Saskatchewan, the problem is more severebecause the Saskatchewan Land Titles Act authorizesthe Registrar to refuse to register any instrument thatdisposes of an undivided fractional interest that is lessthan 1/4th of the whole.

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Negotiation Strategies:Although having a large number of individuals on titleto the same freehold property is generally not a goodidea because it may reduce your leasing opportunities,there is merit to having more than one owner. Morethan one owner may allow your family to engage in'good cop - bad cop' negotiating strategies with landagents.

Taxation Issues:Under the Income Tax Act, individuals andcorporations may be subject to significantly differentincome tax levies on the same amount of income (seebelow). Freehold mineral tax should also beconsidered in estate planning. In Alberta, anexemption of up to $3,200 per year in freeholdmineral tax may be available to each title owner.Transferring freehold mineral interests to a singlelegal entity, such as a corporation, rather than toindividual beneficiaries may result in an effectiveincrease in future liabilities for freehold mineral tax.

Options to Consider:A great many factors must be considered instructuring an estate plan involving freehold mineralinterests. There are no simple answers and the use ofqualified tax and legal experts is highly recommended.

Transfer to a Corporation:One strategy that may be used by families to resolvethe issue of title fractionation is to incorporate acompany and transfer the freehold mineral intereststo the corporation. Even if the mineral interests havesignificant value, such a transfer can usually beaccomplished on a tax-free roll-over basis under theprovisions of section 85 of the Income Tax Act. Uponsuch a transfer, the corporation acquires legalownership of the freehold mineral interests and title isregistered in the name of the corporation in the landtitles registry.

Typically, it is the shares of the corporation which youleave to your beneficiaries, not partial interests in yourfreehold minerals. This prevents further fractionationof title and allows oil companies interested in themineral interests to deal with a single entity - thecorporation.

Transferring your mineral interest to a corporationmay have the disadvantage of creating additionalincome tax liabilities. Income received from freeholdmineral interests does not qualify as ‘active businessincome’ and, in most cases, the corporation will notqualify for the reduced tax rate applicable to the first

$200,000 of active business income. Depending onyour own marginal tax rate and the marginal tax ratesof the other shareholders in the corporation, the samefreehold mineral income may give rise to asignificantly greater income tax liability at thecorporate level than would otherwise have beenpayable. Transferring your mineral interests to acorporation also has the disadvantage of minimizingthe Alberta freehold mineral tax exemption.

There are also costs involved in creating and runninga corporation. In addition to incorporation costs, thereare annual filing fees and the costs of preparingfinancial statements and filing corporate income taxreturns.

Creating a company to own our freehold mineralinterests and then leaving shares in that company toour children may give rise to future conflicts amongyour children. Had you left fractional interests in thefreehold minerals directly to your children, they wouldeach be free to deal with their individual interests inthe minerals as they saw fit. The corporate structurerequires a uniform approach to matters such asleasing. If you transfer your freehold minerals to acorporation, it is recommended that a unanimousshareholder agreement be executed. This type ofagreement provides a mechanism for the reasonableresolution of disputes amongst shareholders.

Estate Freeze:One of the more significant advantages of transferringfreehold mineral interests to a corporation is theopportunity to ‘freeze’ the value of the freeholder'sinterest in the property and allow future growth toaccrue to other shareholders in the corporation.

In its simplest form, an estate freeze may beaccomplished by having a parent transfer his (or her)freehold mineral interests into a corporation andtaking back preferred shares with a value equal to thefair market value of the freehold minerals. Commonshares in the corporation are issued to the owner'schildren or grandchildren.

Future royalties which accrue to the corporation maythen be used to redeem the preferred sharesproviding the parent with a revenue stream during hislifetime. Any increase in the fair market value of thefreehold mineral interest will accrue to the commonshares.

This not only has the effect of spreading the taxliability associated with the preferred shares over a

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number of years, it minimizes the tax impact in theparent's estate. Instead of being taxed on the deemeddisposition of the freehold mineral interests at fairmarket value immediately before the parent's death,tax is calculated on the value of the parent's preferredshares which have not been redeemed.

Caution must be exercised in structuring an estatefreeze in order to ensure that the attribution andbenefit provisions of the Income Tax Act do not apply.Professional assistance is essential.

Transfer to a Trust:In simple terms, a trust is created when there is alegal obligation placed on a person (the ‘Trustee’) tocontrol and deal with certain property (the ‘TrustProperty’) for the benefit of a person or persons (the‘Beneficiaries’). The Trustee must act according to theterms and conditions specified by the person who setup the trust (the ‘Settlor’).

In the case of freehold minerals, ‘family trusts’ may beused to split income from mineral rights amongstfamily members. The concept is to transfer incomefrom one family member to other members of thefamily thereby reducing the overall income tax paid.The Settlor is typically the parent who owns themineral interests which become the Trust Property.The Beneficiaries are usually the owner, his spouseand children or grandchildren. A family member, aprofessional trustee, a legal firm, or an accountingfirm may be chosen to be Trustee.

Setting up a family trust to hold freehold minerals maybe quite expensive. Firstly, the transfer into the trustof the freehold minerals gives rise to a disposition inthe freehold owner's hands in an amount equal to thefair market value of the minerals. In addition to theincome tax payable by the freehold owner on thedisposition, it is essential that a professionalevaluation of fair market value be obtained.

Once structured, a family trust holding freeholdminerals provides considerable flexibility in allocatingincome from the mineral interests in a taxadvantageous manner.

A trust may also be utilized in combination with atransfer to a corporation to accomplish both an estatefreeze and income splitting.

A number of complex income tax rules, including the‘21-year rule’, which essentially deems a trust to havedisposed of its property every twenty-one years, must

be addressed in structuring a trust to hold freeholdmineral interests. Once the trust is structured, it isnecessary to maintain records, and file trust taxreturns and beneficiary elections. Professional taxand legal advice is essential.

Due to the costs associated with structuring andmaintaining a family trust holding freehold mineralinterests, the trust structure is typically onlyapplicable to situations where significant royalties arebeing generated by the mineral interests.

Transfer to Children:If fractionation of title is not an issue, a strategy whichmay be implemented by a parent is to transferownership of the freehold mineral interest to his orher children during the parent's lifetime. Thetransaction will give rise to a disposition and theparent will be subject to income tax on the fair marketvalue of the freehold mineral interest at the time of thetransfer. This works best if the mineral interests havenominal value because they are not leased or, ifleased, not producing. If the freehold minerals areleased and developed in the future, the children willbenefit from the increased value and taxes in theparent's estate associated with deemed disposition ofthe mineral interests will be eliminated.

Summary:The foregoing planning information on estate planningfor freehold mineral interests is not meant to beexhaustive. There are many additional factors whichshould be examined in structuring an estate planinvolving your freehold minerals. Issues such as theclawback of Old Age Security benefits, the applicationof GST and alternative minimum tax may all have animpact on your decisions.

The information provided should not be considered tobe legal or accounting advice. Everyone's situation isdifferent and the information provided should only beused in conjunction with the advice of legal andaccounting professionals.

The Freehold Owners Association thanks Mr. DaleSomerville, CA, of Edmonton and Ms. Tracy Hanson ofthe Calgary Law Firm of Beaumont Church LLP fortheir assistance.

Previously published in the October 29th, 2002,Newsletter of The Freeholder Owners Association(“FHOA”) Thank you to Else Pedersen for providingpermission to re-print on behalf of the FHOA.

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DEVELOPING OIL AND GAS RESERVES INTHE YUKON

Energy consumers are facing increasing prices,decreasing supplies and increasing demands fornatural gas. There is growing sentiment thattraditional supply pools may not be able to keeppace with demand and, as a result, there is arenewed interest in accessing gas supplies inAlaska and the MacKenzie Delta. There is also anincreasing interest in exploring oil and gaspotential in the Yukon, which has had two recentland sales. Although most of the exploration todate has been confined to the southeast cornerof the Yukon, there are eight distinct andrelatively unexplored basins in the Yukon.

Until recently, the federal Crown owned andcontrolled the resources in the Yukon. In 1993,the Canada - Yukon Oil and Gas Accord (the“Accord”) was negotiated and the federalgovernment transferred legislative control andresponsibility for these resources to the Yukongovernment. The Accord provided the Yukontime to develop legislation in consultation withYukon First Nations and other interested parties.In November 1998,the transfer of powers to theYukon government became official with thepassage of the Canada - Yukon Oil and GasAccord Implementation Act (the“Implementation Act”).

The Yukon now has the power to legislate thedevelopment of oil and gas reserves and it haspassed the Canada -Yukon Oil and Gas Act(“YOGA”). However, the federal Crown remainsthe legal owner of the resources, sinceownership was not transferred to the Yukon.

YOGA was developed in consultation with theYukon First Nations and, as a result, theregulatory framework for oil and gas activities inthe Yukon incorporates a “Common Regime”.The Common Regime is based on YOGA, and thelaws of the Yukon First Nations, which mayadopt the provisions of YOGA. Thus, theCommon Regime creates a legal framework forthe management of oil and gas activity andprovides industry with one set of rules.

The Yukon is supplementing YOGA withregulations pertaining to such activities asdrilling and production, pipeline construction,gas processing, export permits, licenceadministration and royalty structures.

Companies wishing to operate in the Yukon mustnow obtain a variety of licenses, includingexploration licenses, licenses to drill, operate,suspend or abandon wells, licenses to constructfacilities and export licenses to remove oil orgas from the Yukon.

Dispositions of oil and gas rights will normallybe completed by way of a competitive bidprocess. A disposition may also occur based ona specific application from a particular company.The Oil and Gas Resources Branch of the YukonDepartment of Economic Developmentadministers the disposition of oil and gas rightsand typically undertakes the following stepsbefore calling for bids. First, there isgovernment to government consultation withthose First Nations whose lands the dispositionmay affect; second, there is a call fornominations; third, there is a review withrespect to environmental and other concerns,including socioeconomic concerns associatedwith the proposed disposition; and, finally, a callfor bids is issued.

Companies interested in learning about theYukon's oil and gas resources are encouraged tocontact the Oil and Gas Resources Branch of theYukon Department of Economic Development attelephone: (867) 667-3427, fax: (867) 393-6262;or Mr. Charles Bois at Miller Thomson LLP.

Charles W. BoisMiller Thomson [email protected]

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INDUSTRY ASSOCIATIONS

Last issue NEXUS began publishing brief profilesof various associations in the Oil & Gas Industry inthe interest of providing an educational resourceto readers. This issue, NEXUS continues withoutlines of CAPPA, AAPL, ADDC and APEGGAUpcoming issues will contain interesting andinformative articles provided from theseAssociations. The Communication Committeehopes that this will be a benefit and resource to allmembers.

CAPPAThe Canadian Association of Petroleum ProductionAccounting (CAPPA) is a non-profit organizationfounded in 1961 to provide a common body andvoice for those involved with accounting forpetroleum products. Today over 1,060 people fromacross Western Canada, representing more than200 oil and gas companies and governmentregulatory agencies make up the membership ofthe Association.

A primary goal of CAPPA is to provide its memberswith information relevant to new regulations anddevelopments on a regular and timely basisthrough meetings, seminars, regulatory agenciesand other industry associations, and to provideinput and feedback on issues and developmentsthat impact production accountants. The objectives of the association are: • To provide a forum for the people interested in

the compiling and reporting of productionstatistics in the oil and gas industry

• To represent this section of the industry in atechnical and procedural capacity when dealingwith other organizations or governmentagencies

• To develop an education program designed toassist the individual member, the company, andthe industry as a whole in efficient productionaccounting practices and procedures.

• To promote a cordial relationship among allmembers of the association.

Permission for publication granted by Al McCue,Communications Director, CAPPA

AAPLThe American Association of Professional Landmen(AAPL) is a professional association dedicated tothe education of landmen, as well as the promotionof ethical business practices, networkingopportunities and a host of member benefits.

In addition to the certification and educationalopportunities offered to our members (includingseveral free institutes over the last two years), theAAPL has also contributed greatly to the oil and gasindustry as a whole. Two significant contributionsthat the AAPL has provided to industry are theAAPL Model Form Joint Operating Agreement(which is used internationally and is the JOA formof choice within the United States) and the creationof the NAPE® Expo. NAPE is the largest prospectexpo in the world, with over 8,000 attendees and800 booths. With the top decision makers in theindustry attending, NAPE has become the premieroil and gas event of the year.

Permission for publication granted by Josh Allard,Website Coordinator, AAPL

ADDCWe have just what you need to become a morevaluable member of the energy industry. TheAssociation of Desk and Derrick Clubs is yourpartner in the complex and ever-changing oil andgas world. ADDC is dedicated to keeping itsmembers abreast of the changes and choices weface. The purpose of the Desk and Derrick Club is topromote the education and professionaldevelopment of individuals employed or affiliatedwith the petroleum, energy and allied industries.Our Motto - "Greater Knowledge, Greater Service."For further information contact President KarenCooke at 294-3640 or via email [email protected].

Permission for publication granted by Karen Cooke,President, Desk and Derrick

APEGGAAPEGGA (The Association of ProfessionalEngineers, Geologists and Geophysicists ofAlberta), is a self-governing associationresponsible to the people of Alberta for thelicensing of professional engineers, geologists andgeophysicists, the maintaining of professionalstandards and upholding the code of ethics. Under

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the Engineering, Geological and GeophysicalProfessions (EGGP) Act, an Alberta Governmentstatute, APEGGA regulates the professions ofengineering, geology and geophysics in Alberta.This means that only those individuals licensedwith APEGGA can practice or use titles relating tothese three professions on projects in Alberta.

Since 1920, APEGGA has been a vibrant andprogressive professional association fulfilling themandate given to it by the EGGP Act. APEGGAregisters, sets practice standards and determinesdisciplinary actions, when necessary, for its morethan 38,000 members.

An ongoing relationship with sister associations (inother provinces), Alberta universities, industry andgovernment helps to ensure the value of scienceand technology, and the impact of engineering,geology and geophysics on the lives of Albertans, isunderstood and considered.

In a global market, it is vital that professionalsattain and maintain the highest level of efficiency,productivity and ethical conduct possible. Nowmore than ever, professionals need to do what theycan to stay competitive. For engineers, geologistsand geophysicists, this includes by being licensedwith APEGGA. The designations P.Eng, P.Geol andP.Geoph show that professional engineers,geologists and geophysicists are performing attheir peak and operating at their competitive best.APEGGA charges individuals with devotion to highideas of personal honour and professional integrity.

To learn more about APEGGA please visit their Website at www.apegga.org.

Permission for publication granted by George Lee -Managing Editor of APEGGA's publication, ThePEGG.

CONFERENCE 2004 CALL FOR VOLUNTEERSIf you are interested in volunteering for the following committees

for the CAPLA 2004 Conferenceplease contact Val Anderson at [email protected]

or 234-5060.

Public Relations & PromotionsMember Services

EventsEducation

NNEEWW CCAAPPLLAA BBOOAARRDD MMEEMMBBEERRSS

Vice-President - Heather Stables FofonoffSecretary - Barbara MacBeathEvents Chair - Joanna PelletierMember Services Director - Kelly EricksonCommunication Director - Nancy Howes-Olmstead

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QUOTATIONS FOR THE MONTH!!!“No day in which you learn something is a completeloss. - David Eddings”

“The achievements of an organization are theresultsof the combined effort of each individual. - VinceLombardi”

“The important thing is to not stop questioning.-Albert Einstein”

QUESTIONS YOU ASKED:As a mentor, how much time do I need to investwith my mentee/es?You invest as much time as you need to. Rememberthis is a sharing of knowledge as well as anetworking opportunity.

As a mentee, how often is too often to call mymentor?Your mentor has a job to do as well; you don't wantto start calling every time something happens.Opening the lines of communication with an emailsometimes allows problems to be solved quicklyand questions answered promptly.

What are the benefits of becoming amentor/mentee?To share knowledge and experience with oneanother. Mentors learn from Mentees as well!

As a mentee, what do I do if my mentor and Idon't get along? (or vice versa)If you don't feel “compatible” with yourmentor/mentee contact the mentorship committeemembers and let them know you want to beswitched.

BOOK REVIEWWho Moved My Cheese?:An Amazing Way to Deal with Changein Your Work and in Your LifeAuthor: Spencer Johnson

This is a 30 minute read and extremely enlightening.It is a simple parable about change and how toaccept it. The main focus uses cheese as a metaphorfor the things we want most: good jobs,relationships, health and money. Four charactersare placed into a maze and sent to hunt fornourishment, an exercise that challenges them todeal with change creatively. When one of thecharacters faces change he deals with itsuccessfully and then writes his solution on the wallof the maze. The story demonstrates that only whenyou encounter the writing on the wall can you acceptchange and reduce the stress that accompanies it. Itis a simple parable that reveals profound truthsabout change. It is an amusing and enlighteningstory of four characters who live in a “Maze” andlook for “Cheese” to nourish them and make themhappy.

MORE INFORMATION

FOR MORE INFORMATION ON MENTORINGOR THE MENTORSHIP COMMITTEE,

PLEASE VISIT THE WEBSITEAT

http://www.caplacanada.org/mentoring.htmOR

CONTACT MONICA KESJAR AT 750-7906.

CAPLA MENTORSHIPGET INVOLVED!!!!

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"Can you explain how companies commonly deal with leases that have the clauseregarding a shut in rental that becomes due if operations cease for a certain

number of days?"

Typical freehold leases state, "If at the expiration of the primary term or at any time thereafter, all wells on the saidlands, or on the pooled lands or unitized lands, are shut-in, suspended, capped or otherwise not produced, as the result ofa lack of or an intermittent market or any cause whatsoever beyond the lessee's reasonable control, the lessee may pay ortender to the Lessor as royalty .... an amount equal to the delay rental payable hereunder and if such sum is so paid, such

well or wells shall be deemed to be a producing well or wells ...". This clause is referred to as the "suspended wellpayment" or "shut-in royalty" clause. In plain English, the above clause states, "if a well is capable of production and issuspended or shut-in for more than 90 consecutive days, then the Lessee must pay an amount equal to the annual rental".

Hopefully at the expiry of the primary term, the Lessor is receiving a lessor royalty from the producing well on its lease.The suspended well payment clause entitles the Lessor to receive an amount equal to the annual rental in lieu of its lessorroyalty when the well is suspended or shut-in. In some leases, the Lessee does not have to pay the annual rental or the

suspended well payment if a well has not been suspended or shut-in for more than 90 consecutive days. A LeaseAdministrator therefore has two choices. Pay the suspended well payment if your records show the well was not shut-infor longer than any 89-day period. Or as most companies do not have the personnel to monitor every well, pay thesuspended well payment (annual rental) as a precaution. Always read the lease, as sometimes a suspended well can

terminate the lease.

A shut-in or suspended well means, "when the well valves have been closed and the well has stopped producing". A wellcan be shut-in or suspended for many reasons, including market conditions, lack of pipeline, infrastructure, etc. Some

companies believe "capable of producing" means any well, which is capable of producing the leased substances. However,most wells are capable of producing some gas. Does this clause then allow a lessee to continue a lease by paying the

nominal rental fee instead of a lessor royalty? Are you paying the suspended well payment to continue a freehold leasewhen truly there isn't a well "capable of producing"? As Lease Administrators, we need to look at those freehold ownerswhose mineral interests are being continued by shut-in wells, which are really uneconomic wells. More freehold lessors aremonitoring the production from their lands and using professional assistance to review their lease agreements, particularly

suspended production.

Deb Waterhouse,Contracts Landman, ConocoPhillips Canada Resources Corp. and

Instructor at SAIT for Contracts Documentation

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Course RegistrationPhotocopy and retain for future use

CAPLA Member Non-member

First Name: Last Name:

Corporation:

Mailing Address:

Postal Code: Email:

Phone: Fax:

Course Name: Date:

Fee Enclosed: $ GST $ Total $Cheques payable to CAPLA (GST #136820362)

Cheque Enclosed or Charge to my VISA AMEX MASTERCARD

Card Holder Name: Card Number:

Expiry Date: Signature:

(Payment must accompany registration to confirm your place)Please return this form with applicable fee to:

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 registration within thistime, a refund will not be issued; however, a substitute may be sent in place of the registered participant.Companies that initially register a non-member and substitute a member will not be reimbursed the balance of thefee. CAPLA will impose a $50.00 administration charge on all cancelled registrations.

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

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UPCOMING CAPLA COURSES

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Alberta Crown: Transfer & P&NG Licence AdministrationCourse Date(s) Registration DeadlineApril 30, 2003 April 23, 2003

Location & 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 start

Member Fee Non-Member Fee$133.75 ($125.00 + $8.75 GST) $219.35 ($205.00 + $14.35 GST)

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 propercompletion of transfer forms and P&NG Licence applications for grouping and validation.

Reading Survey Plans WorkshopCourse Date(s) Registration DeadlineApril 29, 2003 April 22, 2003

Location & Lunch Duration & Check-In TimeAM in classroom at Location Announced in Course 8:30 a.m. - 5:00 p.m.Confirmation Letter Check-in begins 1/2 hour prior to startPM touring a wellsite Lunch: Included

Member Fee Non-Member Fee$240.75 ($225.00 + $15.75 GST) This is a MEMBERS ONLY course.

Registration is limited to 26 participants.

Attendees will tour a completed wellsite (not drilling). Please dress appropriately for weather conditionsensuring warm clothing and hiking boots or similar footwear is worn. The in-class portion of this coursewill provide the information required to read and interpret survey plans correctly to ensure all requiredconsents and agreements are identified. The field trip will enable attendees to gain valuable fieldexperience and bring the survey plan to “life”.

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

[email protected]

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

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Third Party Surface AgreementsCourse Date(s) Registration DeadlineMay 6, 2003 April 29, 2003

Location & 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 start

Member Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

Topics covered will include an overview of the various types of agreements in use, the legislation governingthem as well as a practical hands-on workshop on how to use these agreements. Additional topics includean overview of standard requests and how to process such requests. The course will also discuss the useof CAPLA's Master Road Use Agreement.

Administration of Surface Rights in AlbertaCourse Date(s) Registration DeadlineJune 4 & 5, 2003 May 28, 2003

Location & 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 start

Member 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 theend of drilling and completion operations from a Surface Land Administrator's perspective. Albertasurface lease documentation will be the focus.

Alberta Crown: The Continuation Application Form & Case Studies Course Date(s) Registration DeadlineJune 11, 2003 June 4, 2003

Location & 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 start

Member Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

This course utilizes case studies to highlight the application processes for Alberta Crown leasecontinuations. A brief overview of the relevant regulations will be provided to gain a better understandingof continuations. Exercises will be used to provide hands-on experience for the successful completion ofcontinuation applications.

UPCOMING CAPLA COURSES cont�d

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UPCOMING CAPLA COURSES cont�d

Administration of Freehold Mineral RightsCourse Date(s) Registration DeadlineSeptember 25, 2003 September 18, 2003

Location & 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 start

Member Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

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

Administration of Indian Oil & Gas LandsCourse Date(s) Registration DeadlineOctober 14, 2003 October 6, 2003

Location & 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 start

Member Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

This course covers issues related to Indian Reserve lands and provides land personnel with a broadunderstanding of the regulations affecting mineral and surface dispositions and an appreciation for theunique aspects of operating on these lands. Topics include mineral acquisition covering various dispositionmethods; document issuance; rentals; royalties; continuations; drainage and poolings; surface acquisitioncovering application requirements for seismic; surface and right-of-way agreements; document issuance;rentals; rent and compensation reviews; environmental issues pertaining to the surface approval andreclamation process; and general administration covering payment of monies; assignments; defaults andcancellations. An explanation of Treaty Land Entitlement (TLE) and the changes resulting from TLE willalso be addressed.

Rights of First Refusals (ROFRs)Course Date(s) Registration DeadlineOctober 21, 2003 October 14, 2003

Location & 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 start

Member Fee Non-Member Fee$187.25 ($175.00 + $12.25 GST) $272.85 ($255.00 + $17.85 GST)

For the “novice”, this course provides an excellent introduction to ROFRs as well as a thorough overview

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UPCOMING CAPLA COURSES cont�d

for administrators who have had previous experience in this area of Land Contracts. Case studies willprovide an opportunity for some hands-on experience. The topics to be addressed include the history ofROFRs; ROFR provisions in CAPL Operating Procedures and other agreements; administration of ROFRs(i.e. complying or not complying with ROFR clauses); ROFRs as a part of the sale process and ROFRs inAsset Exchange transactions. The time frame within which a ROFR must be addressed and how to calculatethe interests of the parties when a ROFR is exercised will also be discussed.

Know What You Own - The ABC’s of DOIsCourse Date(s) Registration DeadlineNovember 5 & 6, 2003 October 29, 2003

Location & 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 start

Member Fee Non-Member Fee$299.60 ($280.00 + $19.60 GST) $385.20 ($360.00 + $25.20 GST)

This course will outline how Division of Interests (DOIs) are affected by various agreements such as Mineraland Surface agreements; Joint Operating agreements; Working Interest Clarification agreements; Farmoutand Farmin agreements; Poolings; Assignment and Novation/Notice of Assignments; Quit Claims; Unitagreements; Royalty agreements and Long Term Gas Purchase contracts. Each session will provide a briefsummary (15 minutes maximum) of each type of agreement and following discussions will then relate howthe agreement affects a DOI at various stages in the life of a land asset. Exercises will be used to provideparticipants with hands-on experience. Participants are asked to bring a calculator.

Think & Thrive - Mental Mastery at WorkCourse Date(s) Registration DeadlineNovember 18, 2003 October 10, 2003

Location & 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 start

Member Fee Non-Member Fee$315.65 ($295.00 + $20.65 GST) $395.90 ($370.00 + $25.90 GST)

Registration is limited to 20 participants.* Early Registration*Early Registration is required in order to complete the Herrmann Brain Dominance Instrument (HBDI)prior to the course. The HBDI will be provided to those attending by Dr. Herasymowych one month priorto the commencement of the course. These are to be completed and returned to her 3 weeks prior to thecourse in order to have your assessment ready for the course date.

We respond to today's rapidly changing work environment in land administration by continually upgradingour computers, software and land systems, but how about our brain software? Adapting to standardizationand streamlining processes is the major task facing us today. Recent brain research shows that you canincrease your abilities to perform breakthrough thinking, influence people and develop mental mastery in

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UPCOMING CAPLA COURSES cont�d

dealing with personal and professional challenges. In this seminar, you will:

· Determine your thinking style and find out how it affects communication and the feedback loop.· Explore how adapting and flexing your communication style can create rapport with co-workers,

partners and clients.· Find out why becoming accountable for your thinking and actions allows you to respond quickly and

creatively to change and even thrive on the changes happening.· Discover how to overcome mental fatigue and everyday stresses in your environment.· Identify how you can add value by discovering a sense of purpose within your company.· Begin a plan to create opportunities and become a master learner on your professional “learning road

map”.

Freehold Lessor EstatesCourse Date(s) Registration DeadlineNovember 25, 2003 November 18, 2003

Location & 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 start

Member Fee Non-Member Fee$133.75 ($125.00 + $8.75 GST) $219.35 ($205.00 + $14.35 GST)

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

Please note in your CAPLA Member Roster the following correction:

The fax number for Saskatchewan Crown Land Sale postings, etc is incorrect.Please amend your roster under Saskatchewan Energy and Mines

- Petroleum Lands & Natural Gas Regulations to readFax (306) 787-0620.

Member Services Director

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ANNOUNCEMENTWHAT: Alberta Energy Tenure Information Exchange

WHEN: Thursday, May 8, 2003 @ 9:00 a.m. until 12:00 noonRegistration @ 8:30 a.m. until 9:00 a.m.

WHERE: Kinsmen Centre, 2402 - 2A Street S.E., Calgary(across from the Erlton LRT Station)

WHO: All personnel involved in the land business who are interested inAlberta's Petroleum and Natural Gas Tenure system.

You will be given an opportunity to get updates on:• Section 16 Continuations• e-Tenure• Streamlining of the rental process for continued and validated P&NG agreements• Tenure CBM consultation• Trespass• Sales information on the Internet

After the presentations you will have the opportunity to ask questions and seek clarification atspecific Q&A areas set up at the meeting venue. Alberta Department of Energy staff will beavailable to answer questions relating to these and any other Tenure issues you may have.

SPONSORED BY:Canadian Association of Petroleum Landmen (CAPL)

Canadian Association of Petroleum Land Administration (CAPLA)Alberta Department of Energy (ADOE)

HOW TO REGISTER:The CAPL Office will be handling all registrations!

Please e-mail: [email protected] or,Fax CAPL Office at (403) 263-1620

REGISTRATION FORM:Yes, register me for the Tenure Information Exchange!

Name:

Position Held:

Company Name:

Telephone:

Fax:

E-mail Address:

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CAPLA TUESDAY NIGHTGOLF LEAGUE

2003 REGISTRATION FORM

Please send completed registration form to:Antelope Land Services Limited

200, 1210 - 8th Street SWCalgary, AB T2R 1L3

Attention: Marie Meieror e-mail [email protected]

or fax 266-4389

Registration deadline is May 4th, 2003.

The registered member pays green fee.

Contact Marie Meier @ 265-2855 for further info.

This is a great way to network with other CAPLA membersand keep up with your golf game!

Name:

Company:

Phone # Day: Evening:

Company Fax:

Email Address:

Golfing Level: Beginner: Intermediate: Pro:

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8TH ANNUAL GOLF TOURNAMENTREGISTRATION FORM

CAPLA is holding its 8th Annual Golf Tournament out atWoodside Greens in Airdrie on Wednesday June 25, 2003.

Registration starts at 12:00 pmwith a shot gun start at 1:00 pm

followed by dinner and prize awards.

Cost is $100.00 per golfer.Make cheques payable to CAPLA

and submit with this registration form to:

TriQuest Energy Corp.415, 311-6th Avenue SW

Calgary, Alberta T2P 3H2Attention: Jenna Scott

NAME:

COMPANY:

ADDRESS:

PHONE NO. DAY: EVENING:

FAX NO. EMAIL:

AVERAGE SCORE FOR 18 HOLES OF GOLF:

GUEST'S NAME:

GUEST AVERAGE SCORE FOR 18 HOLES:

Come out andHave FUN!

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UPCOMING CAPL COURSES

MANAGEMENT OF OFFSHORE OIL & GASRESOURCES ON CANADA’S EAST COAST

April 23, 2003 8:30 a.m. to 4:30 p.m.This seminar will provide a valuable introduction tothe East Coast regulatory regime and AtlanticAccord Acts, including the land tenure system,rights issuance process, regulatory requirementsand procedures and related regulations.Fee: CAPL Member $347.75

Non-Member $401.25

CREATIVE NEGOTIATING May 7 & 8, 2003 8:30 a.m. to 4:30 p.m.This seminar will provide the principles of thecreative negotiating model followed by discussionsand practice sessions on how to apply the model.Fee: CAPL Member $374.50

Non-Member $428.00

EFFECTIVE PUBLIC INVOLVEMENT **NEW**May 14, 2003 8:30 a.m. to 4:30 p.m.(Lunch will be provided)A beneficial seminar to all members of industry,especially surface land agents, land administratorsand community relations specialists who deal withlandowners and other stakeholders on a dailybasis.Fee: CAPL Member $331.70

Non-Member $385.20

ACQUISITIONS & DIVESTMENTSTHE PAPER CHASE

May 15, 2003 8:30 a.m. to 4:30 p.m.You will learn the necessary procedures, processesand tips to properly time, evaluate, create anddisseminate the flow of paper from beginning toend of an acquisition, divestment or trade.Fee: CAPL Member $347.75

Non-member $401.25

PRACTICAL GUIDE TO TITLE REVIEW AND ACQUISITIONS

May 29, 2003 8:30 a.m. to 4:30 p.m.Practical aspects of title and due diligence reviewswhen acquiring assets in Western Canada will bereviewed. Also, coordinating title review withoutside counsel and rectifying title deficiencies willbe covered.Fee: CAPL Member $321.00

Non-Member $374.50

FUNDAMENTALS OF EXPLORATIONJune 3 & 4, 2003 8:30 a.m. - 4:30 p.m.(Lunch provided on June 4, 2003)An overview of the exploration business, includinggeological concepts, Crown sales, deal-making,exploration strategies, drilling and the excitementof bringing in a “gusher”.Fee: CAPL Member $428.00

Non-Member $481.50

ROYALTY CALCULATIONSA CASE STUDY APPROACH

June 17, 2003 8:30 a.m. to 12:00 p.m.This half-day seminar will focus on a case studyapproach to examining the complexities andimplications of various actual royalty clauses andcalculations.Fee: CAPL Member $160.50

Non-member $214.00

ADVANCED SURFACE RIGHTSJune 18 & 19 , 2003 8:30 a.m. to 4:30 p.m.This seminar is directed towards industry memberswith five plus years of surface land experience, andis intended to summarize and describe all facets ofsurface rights within the energy industry.Fee: CAPL Member $374.50

Non-Member $428.00

ALSO:Contractual Issues Relatingto A&D September 9, 2003

All prices include GST. For registration or more information on these or any other CAPL seminar,please contact the CAPL office at 237-6635, fax 263-1620 or e-mail [email protected]

Visit www.landman.ca for the full calendar of seminars.

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Gloria AngelesCassandra BerglandRoberta BrowerJody BrownLaura ButterfieldJustin CalnonNadine CampbellMichelle CarrRobb CraigeKurt Dangerfield

Lindsy GordonCathy HayesBeth HergertMeagan KapitzaTim LeeFrankie LiStewart LothianErica LukenoffLilian LyCandace Mackenzie

Donna MacPheeChalene MinerTrevor MurrayAdeola OmoleStacey PageDiane PerrinJudy PetersonJessica PodwysockiStacy ReigerRoxanne Reimer

Wendy ReitmeierKay RobinsonBobbi Jo RooseWanda SalzlAlima SanogoLynn SarkaGeri SpringLisa Weber

WELCOME TO OUR NEW CAPLA MEMBERS!!

Cindy ChaunceyCanadian Natural Resources LimitedTo Hunt Oil Company of Canada, Inc.

Joanne DarbyHeart & Stroke FoundationTo Majestic Land Services Ltd.

Toni DeCostaMajestic Land Services Ltd.To IBM BPO Canada ULC

Deborah GodfreyBaytex Energy Ltd.To Northrock Resources Ltd.

Lorraine GrantBurlington Resources Canada Ltd.To Independent

Jane GuseHunt Oil Company of Canada, Inc.To APF Energy Inc.

Linda HillVintage Petroleum Canada, Inc.To Tiger Energy Limited

Joseph IaquintaBP Canada EnergyTo EnCana Corporation

Terri JohnsonNorthrock Resources Ltd.To Direct Energy Resources

Nancy KiffFoothills Oil & Gas Ltd.To Independent

Barb KimmettGrey Wolf Exploration Inc.To Baytex Energy Ltd.

Chelsea KirkpatrickVermilion Resources Ltd.To MGV Energy Inc.

Melanie MacMichaelRio Alta Exploration Ltd.To Canadian Natural Resources Limited

Shawn McReaveyIndependentTo Husky Oil Operations Limited

Yvette MillerPrimrose Drilling Ventures Ltd.To Shell Canada Limited

David B. MorrisonIBMTo Penn West Petroleum Ltd.

Tracey NakamuraApache Canada Ltd.To Independent

Kimberley PennyParamount Resources Ltd.To Direct Energy Resources

Tricia PerkinsNCE Resources Group Inc.To EOG Resources Canada Inc.

Celeste RisslingLandSolutions Inc.To Independent

Debbie RodtkaMarathon Canada LimitedTo Paramount Resources Ltd.

Kari SwennumsonCavalier Land Ltd.To Thunder Energy Inc.

Pat ThurgoodIndependentTo Progress Energy Ltd.

Lori TorgersonOlds CollegeTo Grid Resources Ltd.

Keith TurnerKoch Pipelines CanadaTo Inter Pipeline

Reva YoungPetrovera ResourcesTo Independent

NAME CHANGE

Senya SchepicoffTo Senya Russell

Reva WoodTo Reva Young

MEMBER INFO CHANGES

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34

YOU MAY NOT BE AWARE BUTYOU MAY QUALIFY FOR :

•LOW PREMIUMS•SUPERIOR COVERAGE

•EXCEPTIONAL SERVICE•FLEXIBLE PAYMENT PLAN

Authorized Broker for CAPLA MembersContact: Dianna Suttie

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

Group Insurance ProgramDesigned for

GROUP BENEFITS REMINDEREVERYONE BENEFITS!

CAPLA has arranged for its members to be eligible to belongto a comprehensive benefits program, including:

Group Life, Dependant Life, Accidental Death &Dismemberment, Long & Short Term Disability, Extended

Healthcare (Major Medical & Prescription Drugs), Vision Care,Dental, Health Spending Account

These benefits are available to you as a CAPLA Member, and inaddition to the benefits listed above, CAPLA members can feel

free to contact Dann Kepford for quotations forpersonal/corporate life insurance, disability and critical illness

quotations. Dann is a broker and can obtain quotes for theentire insurance market.

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

CAPLA MEMBERSAUTO - HOME - COMMERCIAL

VACATION AND REVENUE PROPERTIES

Your CAPLA Membership belongs to YOU- not the company you work for!

Neither a membership in the Association nor therights and privileges associated with it are transferable

from a member to another individual.

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35

1 2 3 4 5

7 8 9 10 11 12

14 15 16 17 18 19

21 22 23 24 25 26

28 29 30

Monday Tuesday Wednesday Thursday Friday Saturday

APRIL 2003

Course:Calgary/Canmore Course

& Field Trip

NEXUS Mailout

1 2 3

5 6 7 8 9 10

12 13 14 15 16 17

19 20 21 22 23 24

26 27 28 29 30 31

Monday Tuesday Wednesday Thursday Friday Saturday

MAY 2003

Course:Third Party

Surface Agreements

Good Friday

Easter Monday

Course:Reading SurveyPlans Workshop

Course:Alberta Crown: Transfer

& PNG Licence Administration

Victoria DayManagement Night

@ Sheraton Eau Claire

2 3 4 5 6 7

9 10 11 12 13 14

16 17 18 19 20 21

23 24 25 26 27 28

30

Monday Tuesday Wednesday Thursday Friday Saturday

JUNE 2003

Course:Administration of SurfaceRights in Alberta - Day 1

NEXUS Deadlinefor August Issue

Course:Alberta Crown: ContinuationApplication & Case Studies

Breakfast Meeting@ Calgary Petroleum Club

ADR Mediation Model

Course:SaskatchewanLands Registry

Course:Administration of SurfaceRights in Alberta - Day 2

Course:Administration of EUB

Guides 56 & 60CAPLA/CAPL Pre-Stampede Party

CAPLA GolfTournament

@ Woodside Greens

Alberta Energy TenureInformation Exchange

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The Canadian Association of PetroleumLand Administration

440, 10816 MacLeod Tr. S, Suite 359Calgary, AB T2J 5N8

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

Office Email: [email protected] Email: [email protected]

CAPLA NEXUSis a publication of CAPLA

Produced by the Communication Committee

Director: Nancy Howes-Olmstead([email protected])

Editor: Cam Lockerby ([email protected])

Asst. Editor: Wendy Walker ([email protected])

PrintCoordinator: Linda Mah ([email protected])

HeadProofreader: Holly Evans

AdministrativeAssistants: Suzanne Akins Holly Evans

Content & Norma Anderson Macy HuiResearch Pearl Ao Jude PressTeam: Debbie Degenstein Leanne Quantz

Betty Gordon Maarnie ShakespeareJulia Haynes Nancy WilkeyGloria Hoyos

PUBLICATION SCHEDULE

ARTICLEMEETING SUBMISSIONDATES DEADLINE MAILOUT

May 21 June 12 August 19

September 23 September 4 October 7

November 12 November 7 December 9

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

Roster ChangeName: Address:

Former Company:

Present Company:

Name Change: City:

Phone: Fax:

Email: Postal Code:

To be announced in CAPLA NEXUS.

Roster list only.OPTION:

Please Fax to:CAPLAFax: (403) 571-0644

Mailing Address:

See CAPLARoster for

Change Form

Printed by

Board of Directors

President Candace BakayVice-President Heather Stables FofonoffPast President Verna MoodieSecretary Barbara MacBeathTreasurer Marianne McKayCommunication Nancy Howes-OlmsteadEducation Gale BreenEvents Joanna PelletierInformation Services Kathy WardMember Services Kelly EricksonStandardization Kevin L. EganConference Valrie Anderson