NEGOTIATOR - ross-crain.com · The Negotiator Ad.pdf 1 4/15/2009 10:24:27 AM. Senior Editorial...
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The Magazine of the Canadian Association of Petroleum Landmen
May 2010
THE NEGOTIATOR
ERCB Directive 056 and ERCB Directive 071
How Recent Changes Impact Your Public Consultation Process
Trust Agreements and Trust Declarations
Highlighting the Importance
of Trust Agreements
The Surface Land Compensation Database
The Past, Present and Future of the Marriott Surface Land Compensation Database
PerCePTion vs. reALiTy
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The Negotiator Ad.pdf 1 4/15/2009 10:24:27 AM
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2010–2011 CAPL Board of DirectorsPresident
Dalton Dalik, P.Land [ph] 403-478-0528Vice-President
James Condon, P.Land [ph] 403-215-8614Director, Business Development
Frank Terner, P.Land [ph] 403-691-3056Director, Communications
Margaret Ariss [ph] 403-539-1107Director, Education
Jan McKnight [ph] 403-290-3406Director, Field Management
Jason Tweten, PSL [ph] 403-526-8590Director, Finance
John Covey [ph] 403-232-7323Director, Member Services
Robyn Van den Bon, P.Land, PSL [ph] 403-503-5276Director, Professionalism
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Sally Jackson [ph] 403-232-5570Director, Technology
Robin Thorsen [ph] 403-203-4050Secretary/Director, Social
Gloria Boogmans, P.Land [ph] 403-246-4173Past President
Ken Gummo, P.Land [ph] 403-296-6044 Suite 350, 500 – 5 Avenue S.W. Calgary, Alberta T2P 3L5 [ph] 403-237-6635 [fax] 403-263-1620www.landman.ca
Meghan Cobb [email protected] Grieve [email protected] Irene Krickhan [email protected] Steers [email protected]
Also in this issue13 2010 Kelowna Conference Update
14 CAPL/PLM Mentorship Appreciation Night
15 Olds College Annual Reception Recognition
17 2010 CAPL Squash Tournament
18 2010 10k & 5k Road Race and Fun Run
18 Gowlings LLP Presents the 2010 PLM Alumni Charity Golf Classic
19 Ride, Ride, Ride
26 CAPL Golf Tournament
THE NEGOTIATORThe Magazine of the Canadian Association
of Petroleum Landmen THE NEGOTIATOR
Features May 2010
2 What Is Perceived and How It May Affect How I Negotiate
David B. Savage
4 Trust Agreements and Trust Declarations in Petroleum Land A&D
Oil and Gas Group, Miller Thompson LLP
7 The ERCB’s Reaction to Kelly v. Alberta (Energy Resources Conservation Board) and Grizzly Resources, Ltd.
Blake Williams
9 Industry Reviews The Surface Land Compensation Database
Bill Marriott
In Every Issue16 Board Briefs
17 Message from the Executive
20 Get Smart
24 Roster Updates
28 CAPL Calendar of Events
28 May Meeting
28 June Meeting
EPZ
EPZ
PAZ
PAZIIZ
Wind Direction
Incident
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ShadowsA beAutiful wArm Sunny dAy in tulum mexico And A SenSe of Adven-ture hAd me wAnting A journey. I spoke to some travellers experienced in this
area and a local guide that opened our journey to
Mayan temples hidden in the forests and in the
mangroves. “Is it safe to travel alone in this part
of Mexico by car?” I inquired. The answers may be
stated as, “Yes, as long as you stay off the smaller
highways and roads after dark.” And, “If the police
signal you to stop, unless you know you have done
something very wrong, don’t stop.” “Be Careful.”
So I rented a car and explored parts of the
Yucatan away from the tourists. Punta Allen was
recommended to me by a local as a beautiful
untouched tiny fishing village an hour’s drive on
a muddy road down a peninsula just outside the
Biosphere. One evening as the sun set I drove
down that tiny road. At places, you could see the
Caribbean on your left and the inland waters on
the right. Most of the time, as I drove slowly down
that road, all I could see were surrounding trees,
allowing no view beyond the sides of the road.
written by
DAvID B. SAvAGESAvAge mAnAgement ltd.
What Is Perceived and How It May Affect How I Negotiate
the negotiAtor’S notebook
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written by
DAvID B. SAvAGESAvAge mAnAgement ltd.
As the darkness was almost complete, a pickup truck with
eight men in the back carrying machine guns slowly passed by.
Entering the tiny fishing village, it soon became apparent the only
people outside of the locked gates and derelict buildings were
those men in the truck and others drinking outside a closed cafe
on the beach. My intuition said, “Better create some space between
me and all this, this is not feeling right.” During daylight, with
others present, this tiny place would have been more welcoming.
Driving in total darkness now, I headed back up the narrow
muddy road. Ten minutes in, a vehicle came up from behind.
As I edged over to let it pass, I could not see faces but I could see
there were four adults. After they passed, their vehicle stopped.
I stopped about ten metres behind. All I could see in my head-
lights were the backs of the four people and the bottoms of the
trees hugging the sides of the narrow dirt road. I locked my doors.
I waited. And waited. After ten minutes, I knew there was no
reason to back up and no place to go sideways. I gradually moved
to the left to indicate I wished to pass. Their vehicle moved to
further block my way. Stopped five metres behind the car in
front, I waited to see what might happen next. With more than
a little concern, I remembered the advice to “stay off the smaller
highways and roads after dark.” I wondered what my options and
strategies could be. What is negotiable from this place?
A full twenty minutes after the dark vehicle stopped in front, it
slowly moved forward. I slowly followed. And then the reason for
all this was revealed in my dim headlights on that narrow muddy
road; late at night crabs cross the road moving from one large
body of water to another. The dark vehicle that I thought acted so
strangely and ominously was protecting those crabs. No bandits
here; more like environmentalists! For the next ninety minutes,
I too slowed and stopped every time I could see crabs on the road
in their migration.
PerceptionsThis experience a few months ago reminded me that what we
see, what we believe and what we know is only our interpreta-
tion given our experiences, information, senses and judgements.
What we project as real may not be real at all. Through my work
with the Global Negotiation Insight Institute, I have learned that
being curious, being open to all our wisdom, embracing diver-
sity of opinion and allowing space for those that come from a
different place is a powerful way of allowing agreements to be
built that may never have otherwise. My lack of information and
increasing concern for my safety could have led me to very differ-
ent actions and outcomes.
What perceptions get in the way of allowing agreements to
be built by you that may never have otherwise? What assump-
tions are you making about the other party? When do you wish
you would have known more, acted differently, or invested in a
negotiation with different people? How might you further develop
your awareness of your own barriers? Where are the crab cross-
ings in your life?
where may this take me?With Erica Fox’s “Beyond Yes: Negotiation Mastery From The Inside
Out”, I can check what is going on for me, what my values and
interests are, and how I might communicate and listen from there.
From there, I can then mine for underlying interest of the other,
develop my BATNA (Best Alternative to a Negotiated Agreement)
and WATNA (Worst Alternative to a Negotiated Agreement) and
communicate clearly and respectfully.
BATNA and WATNA serve to define the negotiating range simi-
lar to our JP-05 Fee negotiation context. If I can precisely identify
my BATNA and WATNA in advance of negotiation, then I can be
clear on my boundaries; where I will play and where I will not.
A key lesson in negotiations that North Americans have often
failed to appreciate (at our own risk in international negotiations
or those here with persons from other cultures) is the fact that you
must go slow before you can go fast.
checking, creating and ensuringTo develop and succeed in agreement building that serves you and
your company in the best way, don’t be a lazy negotiator! Take the
time to develop and reach agreement on your negotiation process,
values, desired outcomes, limits and alternatives. As in dispute
resolution and in the mediation process, invest the majority
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of your time designing the alliance, the rules of engagement,
methods of procedure, acceptable timelines, and accountability?
In most negotiations, the time spent actually negotiating terms
should be less than one third.
Some will say, “that’s a big time waster” or “my deal isn’t that
complex”. Past experience has taught me that in the absence
of an agreement of expectations for timeline, costs, values and
outcomes, many deals die or never reach their potential. In our
industry, I find that sending a positional, one dimensional email
and expecting a positive and timely response is most often
mutually exclusive. Even on the small deals, try establishing the
framework and who we will be in this negotiation first. You will
be rewarded with a little new territory and some very effective
outcomes. If the other party has no interest in this approach,
take that as a signal that they may be old school, hardnosed.
This may not be a priority for them or they may even be afraid of
you. With that awareness, you may need to adjust how you nego-
tiate with them and even whether you do negotiate with them.
The relationships you build and the time you save in the long run
will be significant.
Negotiating is an important part of every day in every part
of our lives. Growing your awareness, preparing better, checking
perceptions, allowing differences and developing stronger busi-
ness relationships are some of the reasons I invite you to try
new things and find what serves you best. Take advantage of the
opportunities to develop a wide range of negotiating skills and an
awareness of when to employ them. That journey is far more fun
and interesting than sending a one dimensional note looking to
make the same deal you have made for years. Current times are
far more demanding; our stakeholders are far more demanding
as well.
PS: The crabs all got to the other side without any robberies
involved. Life isn’t always like that, but checking perceptions and
creating pre-negotiating agreements, are ways to get you to the
warmer water. m
Trust Agreements and Trust Declarations in Petroleum Land A&DtruSt AgreementS And truSt declArAtionS Are Some of the moSt common buSineSS toolS being uSed in the cAnAdiAn oil And gAS induStry. However, many people drafting, executing, and administering
these tools are not aware of their importance, the best practices
for their use, and how they need to be handled in acquisitions and
divestitures. This article will shed a bit of light on key issues about
trusts from the land A&D perspective.
Trust law developed in England during the Crusades.
When knights went charging off to the Middle East they had to
leave a friend in charge of any land that they held in order to pay
and receive feudal dues. Before the development of trust law, the
only way this could be done was for the crusading knight to convey
ownership of their land to a friend on the understanding that it
would be conveyed back when the knight returned. Of course, all
too often the friend was rather surprised that the knight didn’t
die on the journey or the battlefield and actually came home.
Many trusted friends were not pleased by this turn of events
and refused to give the land back. The knight had no recourse
except to appeal to the king. The king would set things right if he
felt like it, but sometimes he was just as happy to let the knight
rust in the rain alone and landless. Eventually, this kind of case
became so frequent that the king didn’t have time for it anymore.
He delegated the job to the Lord Chancellor by empowering
him to do what was just and equitable on a case-by-case basis.
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Eventually, it became common for the Lord Chancellor to recog-
nize the claims of all returning crusaders. This gave rise to the law
of equity as the concept developed that the legal owner, the friend,
would hold the land for the benefit of the original owner, the
crusading knight, and would be compelled to convey it back when
requested. The crusading knight was the beneficiary and the friend
the trustee. The term use of land was coined and in time developed
into what we now know as a trust.
From this history we can see that land interests are made up
of two separate components: the legal interest (often a registered
interested) and the beneficial, or equitable, interest. When the
legal owner is using and occupying the land, or benefiting from it,
these two interests are bundled together. But, they can be taken
apart and held separately. For example, in the oil and gas industry,
this separation of interest often occurs when a land agent holds
the legal, or registered, interest in a mineral lease and the land
agent’s principal holds the beneficial interest. When this separa-
tion occurs a trust exists.
Unfortunately, the existence of an underlying trust might not
be separate documents. For example, it can come into existence
merely through the conduct of the parties such as in the case
of pre-earning farmouts when one company (farmor) is hold-
ing the beneficial right to access and drill on lands in trust for
another company (farmee). These are known as implied trusts.
However, given that ownership of mineral interests are involved,
it’s always best to expressly confirm the nature of the underlying
trust in its own separate agreement – the trust agreement. This is
known as an express trust. It sets out how the holder of the legal
interest, the trustee(s), will manage the legal interest on behalf of
the holder(s) of the beneficial interest, the beneficiary, or benefi-
ciaries. As a general legal principle, the trustee owes a fiduciary
duty to the beneficiaries of the very highest order. A court will
view a breach of trust as a grievous kind of contractual breach and
the trustee usually faces significant liability.
Any company acting in a trustee capacity must ensure
that its land records properly document and account for any
beneficial interests held in trust in order to minimize and miti-
gate potential legal liability. This is particularly important in
situations where a governing contract includes a ROFR and a
trust agreement is evidencing the interest of a silent partner.
The potential legal consequences of not documenting the benefi-
cial interest could result in a beneficiary having to defend itself
in proceedings before the Energy Resources Conservation Board
and/or the courts to demonstrate its ownership or entitlement
to the underlying beneficial interests. This occurred in Desoto
Resources Limited v. EnCana Corporation, 2009 ABQB 337, and Board
Decision 2008-047. Similarly, a company that acquires a trust
interest in lands that are subject to royalty payments might be
unaware of its royalty obligations to the trust beneficiaries and
overlook paying the royalty. A lawsuit was commenced in these
circumstances in James H. Meek, Jr. Trust v. San Juan Resources Inc.,
2005 ABCA 448 (CanLII).
Curiously, in the oil and gas industry, original trust agree-
ments are often found on mineral files and are not set up in the
land system as contracts. This is a risky practice. Like any other
contract, trust agreements need to be set up in the land system
and given their own files to make them trackable, to ensure that
the beneficial interests are properly reflected in the various equity
splits in a company’s land system, and to ensure that they are
scheduled, administered, and conveyed properly during the A&D
process. Some companies may find it convenient to place a photo-
copy of a trust agreement on the related mineral file(s), but the
original should have its own contract file.
Trust agreements are assignable. Application of the 1993
CAPL Assignment Procedure (“Assignment Procedure”) follows the
same rules as for any other kind of contract. When land is being
conveyed, use of the Assignment Procedure can save a lot of time
and resources. Unfortunately, the terms of many trust agree-
ments don’t include the Assignment Procedure, possibly because
precedents haven’t been updated. However, companies that want
to minimize administrative costs are careful to draft trust agree-
ments so they do include the Assignment Procedure. Of course, if
all parties agree, it’s always possible to amend existing trust agree-
ments to include the Assignment Procedure.
Leaving trust agreements out of the land system creates a
legal and administrative challenge for conveyancing because trust
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agreements that are buried on mineral files are often overlooked.
Whenever a trust agreement is found on a mineral file an admin-
istrator can add value by analyzing it to decide whether or not the
trust is active. Active trust agreements should be pulled from the
mineral file and set up in the land system as a separate contract
that is related to the mineral interests. This really speeds up the
A&D conveyancing process because the trust is no longer a hidden
agreement and the trust interest is more likely to be reflected
correctly on the P&S land schedule. Inactive trusts may not have
the same set-up urgency, but it can still be helpful for them to be
trackable in the land system when some land/legal research or
accounting query needs to find it.
There is also another kind of trust instrument on industry
land files: the trust declaration, also known as the declaration of
trust. This document is only signed by the trustee. It acknowledges
that land interests are being held on behalf of a beneficiary, or
beneficiaries, but is not signed by the beneficiary. As an easy rule-
of-thumb, no matter what the title on the document (whether it’s
called a trust agreement, trust declaration, or declaration of trust)
if it’s only signed by one party, it’s a trust declaration. In contrast,
a trust agreement is executed by all parties – the trustee(s) and the
beneficiary, or beneficiaries.
Companies often execute a declaration just to have it on
related mineral files as a physical flag warning administrators
that a trust exists. This may serve to document an implied trust
that is created by a farmout, pooling, participation, or other
kind of contract. Again, best practice is to set up declarations as
contracts. It makes them trackable. However, the big difference
between a declaration and a trust agreement is that the declara-
tion is not assignable. The Assignment Procedure cannot be used.
Instead, when conveying land that is subject to a declaration,
the assignee who will become the new trustee needs to execute
its own declaration or consider entering into a trust agreement
with the beneficiary. Again, the A&D process is assisted if these
documents are identified in the land system. If trust declarations
are overlooked, a divesting trustee may either fail to transfer its
trust obligation or inadvertently sell what it doesn’t own to a
third party.
Trusts are a complex type of agreement and this article has
only highlighted a few key points. It’s recommended that the
preparation and conveyancing of trust agreements or declara-
tions of trust be referred to experienced land administrators or
legal counsel. m
Oil and Gas Group,
Miller Thomson LLP
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the court of APPeAl of AlbertA iSSued itS deciSion in KELLy V. ALBERTA
(EnERGy RESOuRCES COnSERVATiOn BOARD) AnD GRizzLy RESOuRCES, LTD., 2009 ABCA 349 on October 28, 2009 (the “Grizzly
Decision”). In the result, the Court found that those
who live in a protective action zone (“PAZ”) may
have their rights directly and adversely affected
as a result of a hazardous release. As a result
they are entitled to be included in an applicants
participant involvement program under Energy
Resources Conservation Board (“ERCB”) Directive
056: Energy Development Applications and Schedules
(“Directive 056”) and to be granted standing to
challenge an ERCB decision.
In light of this decision, and to permit eval-
uation of impacts of the decision, the Board
temporarily suspended the issuance of approvals
of all sour applications, on November 3, 2009, to
address the various issues raised in the decision.1
The following provides a brief background of the
circumstances which led to the Grizzly Decision
and also highlights the measures taken by the
ERCB to address the issues raised by the Grizzly
Decision.
On April 8, 2008, the ERCB released Bulletin
2008-15: New Edition of Directive 071: Emergency
Preparedness and Response Requirements for the
Petroleum Industry Issued (“Bulletin 2008-15”).
As its title indicated, Bulletin 2008-15 announced
The ERCB’s Reaction to Kelly v. Alberta (Energy Resources Conservation Board) and Grizzly Resources, Ltd.
EPZ
EPZ
PAZ
PAZIIZ
Wind Direction
Incident
written by
BLAkE WILLIAMS,
ASSOCIATE,
REGuLATORy
DEPARTMENT,
BENNETT JONES LLP on behAlf of the fAm communicAtionS committee
Since 1999, in the regulatory consultation and land business, our team’s contributions have been integral in helping our clients get...
from “here” to “here”
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negotiator ad feb cmyk 2/3/10 12:29 PM Page 1
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the release of a new addition of Directive 071: Emergency Preparedness
and Response Requirements for the Petroleum Industry (“Directive
071”), which was to be immediately effective and included the
emergency response concept referred to as PAZ.
Directive 071 has defined the PAZ as “an area downwind of
a hazardous release where outdoor pollutant concentrations
may result in life-threatening or serious and possibly irrevers-
ible health effects on the public.” The introduction of the PAZ
was intended as an enhancement to identify the area within the
emergency planning zone (“EPZ”) downwind of a release in which
responders should focus and prioritize their response efforts.2
However, the ERCB H2S model, used to calculate the PAZ, was
incorrectly calibrated when it was introduced in 2008. Initially, the
model was calibrated to calculate the PAZ endpoint of 10 parts
per million concentration of H2S averaged over a 3-minute expo-
sure time. This resulted in the PAZ, in some instances, extending
beyond the outer boundary of the EPZ, despite the fact that in
order to suffer the impacts contemplated in the Directive 071
definition of the PAZ, parties would have to be closer to the release
than the outer boundary of the EPZ.
As a result of the Grizzly Decision the ERCB has re-calibrated
the ERCB H2S model such that the endpoint is now correctly
defined as a 130 parts per million concentrations of H2S over a
60-minute exposure time. Consequently, the PAZ for a given well,
facility, or pipeline will not extend beyond the boundary of the
EPZ. All references to the emergency awareness zone, formerly
defined by Directive 071 as a distance outside of the EPZ where
public protection measures may be required due to poor disper-
sion of a hazard, have been removed.
To ensure compliance with the Court’s ruling related to public
involvement programs set out in both Directive 071 and Directive
056, the ERCB has also undertaken a detailed review of its partici-
pant involvement program. Directive 056, including tables 5.1, 6.1,
6.2, and 7.1, has been revised to ensure it is consistent with the
changes discussed above as well as the ERCB’s intent in relation to
the emergency planning and response requirements in Directives
056 and 071.
Most significantly, changes have been made to incorporate
the EPZ/PAZ as the boundary for notification for facilities and
pipelines where H2S ≥ 0.1 mol/kmol and for personal consultation
for wells where H2S > 0.00 mol/kmol. In addition, when the EPZ
is affected by a proposed license amendment for pipelines and
pipeline installations to:
change the H2S, MOP or substance; •
a flow reversal; •
a line split;•
the resumption of a discontinued pipeline; or•
the resumption of an abandoned pipeline or pipeline •
installation,
notification to residents in the EPZ/PAZ must occur prior to the
filing of the application.
For further information on the foregoing, in addition to
Directives 056 and 071, please see ERCB Bulletin 2009-41 (November
13, 2009): Processing of Applications for Sour Oil and Gas Development
in Light of the Court of Appeal Decision in the Matter of Kelly v. Alberta
(Energy Resources Conservation Board) and Grizzly Resources, Ltd.,
Directive 056 – Errata (November 24, 2009): Energy Development
Applications and Schedules, and Directive 071 – Errata (November
24, 2009): Emergency Preparedness and Response Requirements for the
Petroleum Industry. m
notes1. ERCB Bulletin 2009-41 (November 13, 2009): Processing of
Applications for Sour Oil and Gas Development in Light of the Court
of Appeal Decision in the Matter of Kelly v. Alberta (Energy Resources
Conservation Board) and Grizzly Resources, Ltd., page 1. (Bulletin
2009-41)2 Bulletin 2009-41.
2. Bulletin 2009-41.
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the cAnAdiAn oil And gAS induS-try iS in the ProceSS of A mASSive reStructuring. Conventional drilling has
been in continuous decline for 5 years, with 2009
recording the lowest numbers in 2 decades, 75%
lower than the peak in 2005. The larger compa-
nies with global perspectives are shifting their
investments out of Alberta or focusing on higher
cost unconventional plays. Meanwhile, the local
industry is acquiring assets and finding new ways
to take advantage of opportunities closer to home.
The local service industries are also re-invent-
ing themselves in the hope of being more
competitive in this new environment.
The Surface Land Compensation Database (“the
DB”) (www.wdmarriott.com) has been operating
Industry Reviews The Surface Land Compensation Database
written by
BILL MARRIOTTwilliAm d. mArriott & ASSociAteS ltd.
E L E X C OG R O U P
Elexco Ltd.Tel: 1-800-265-1160Local: (519) 686-0470Fax: (519) 686-9088557 Southdale Road EastSuite 101London, OntarioCanada N6E 1A2Jack Norman, PresidentDale Norman, Land Manager
Elexco Land Services, Inc.
Tel: (716) 372-0788Fax: (716) 372-0515PO Box 383505 W. Henley StreetOlean, New YorkUSA 14760Randall Hansen, CPL, PresidentJack Norman, Vice President
Elexco Land Services, Inc.
Tel: (810) 364-7940Fax: (810) 364-8120PO Box 313106 Huron Blvd., Suite AMarysville, MichiganUSA 48040Randall Hansen, CPL, PresidentPaul Boyce, Land Manager
Mineral and Surface LeasingRight-of-Way Acquisitions
Mineral Ownership/Title CurativeSeismic Permitting
Mapping/GIS ServicesAbstracts of Title
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Elexco Negotiator qrtrpg 4C.qxd 8/28/09 12:24 PM Page 1
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continuously since 1995, providing detailed on-line ‘comparables’
searches and aggregate analysis to oil and gas operators, land
consulting firms, industry associations and governments. As with
the industry and its support services, the DB is hoping to re-invent
itself in order to adapt to this new environment.
the reviewThe main supporters of the DB have requested a comprehensive
industry review of the objectives, principles, and operation of the
DB. The purpose of this review is to determine what improvements
can be made to the DB to increase its acceptance and participa-
tion. In addition, the review will survey operators to determine
their views on surface compensation issues facing the industry
in the near future and whether they feel the DB and aggregate
analysis will help in addressing those issues.
historyThe DB originated as an initiative of producers in the CAPP Surface
Land Committee in 1995. At that time, committee members felt
that a different approach was necessary to ensure that agents
were adequately informed about field compensation. The prin-
ciple of cooperative information sharing was long established
but the ‘word-of-mouth’ methods of exchanging that information
often failed to provide enough detail or proved to be ‘too little,
too late’ to adequately meet the needs of the agent. The commit-
tee proposed a feasibility study of a centralized, independent,
external database to track and distribute detailed compensation
information. The committee was unanimous in its support of this
new method and 15 of the largest operators signed up for a pilot
project. Two years later, the original 15 were joined by 7 more large
subscribers and commitments to supply data were made by 60
(or 75%) of the top 80 drillers. This overwhelming majority support
‘in principle’ by operators has not wavered in the intervening
years. The DB is essentially an association of producers who wish
to share their surface compensation data.
The feasibility study made a thorough review of all the
issues surrounding the establishment of the DB including the
legal issues. CAPP’s Legal Committee and CAPP General Counsel
reviewed the DB to ensure that the industry and CAPP would not
be in violation of any statutes by sponsoring the formation of the
DB. The legal review focused on competition and privacy issues.
The committee concluded that the collection and publication of
compensation data is not, in itself, a violation of the Competition
Act. The privacy issues of 1995 were eclipsed in 2004 by the Alberta
Personal Information Protection Act (PIPA) and other provincial
privacy Acts. The increased liability faced by operators as a result
of this legislation, and the possible inability to produce evidence
for Surface Rights Board hearings, has caused virtually all lease
agreements to now contain clauses which give consent to the
disclosure of the lease ‘personal information’ by both the land-
owner and the operator.
objectivesThe original objectives of the DB were motivated by the desire of
the producing industry to make all the details of surface compen-
sation transactions available to outside operators and land
agents in the most efficient and comprehensive manner possible.
The intent was to reduce their internal administration costs in
providing information and to eliminate any subjective elements
which might hinder accurate communication. By having their
data on an independent external database they reduced the
time their own staff would need to adequately inform outside
agents, while at the same time providing fast, accurate, objective,
and comprehensive data to anyone who desired it. More often
than not, these companies were not interested in seeing what
other operators were paying. Rather they wished to ensure that
their own compensation rates were easily transparent to others,
particularly those on the periphery of their core operations.
The hope was that administrative costs would be reduced both
by the providers of the data and the users of the data while at the
same time ensuring as much accuracy as possible. The proponents
of the DB all had comprehensive compensation policies which
they used to set their own compensation rates. Their motivation
was to make sure outside agents understood these policies by
releasing the actual compensation amounts paid.
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A secondary objective was to put better information in the
hands of agents to expedite the negotiation of surface leases.
More information in the marketplace will increase the efficiency of
the market and lead to more competitive and consistent pricing.
PrinciplesSince its inception, the fundamental values driving the DB have
been transparency, efficiency, professionalism, and the removal
of any barriers or restrictions to the free flow of information.
Included in these core values is a respect for the principles of
surface compensation and the conventions used by industry.
All of the contributors to the DB accept the overriding principle
that landowners are to be fully compensated for their losses, and
they all use the heads of compensation, both on their lease agree-
ments and in their reporting to the database. Equity is another
core value, in that all contributors insist that all landowners
receive equal treatment under their compensation principles.
Not only is compensation to be fair and adequate, it is also to be
equitable between landowners.
Full disclosure is also a core value of all contributors to the
DB. The effectiveness of the DB is seriously undermined if some
‘extra’ compensation paid to a landowner is not reported or some
‘bad deals’ are unilaterally excluded. It makes no sense for the
biggest operators to go to all the trouble to provide their data only
to have confidence in it undermined by the belief that it is biased
or incomplete. The pricing dynamics of the surface ‘market’ tends
to be driven by the ‘bad deal’ exceptions and the ability of the agri-
cultural community to quickly and accurately communicate those
exceptions. Industry agents need to be at least as well informed as
those advocates advising landowners.
The most recent innovation in the DB is in data capture
directly from the operator’s land systems without any human
intervention. These are the same systems that are used to pay the
landowners so all data and all leases are being accurately trans-
ferred to the DB.
implementationCAPP was very clear in 1995 that it did not want to be involved
in the administration of the DB. Further, the proponents insisted
on low costs and a user-pay subscription service. Since Marriott
had undertaken the feasibility study and run the pilot project,
the company was a natural to operate the database on behalf
of the proponents. A number of land brokers had bid to be the
DB administrators but it was decided that this would create a
conflict of interest. Rather, Marriott became the administrator
since it had no interest in the surface land business. Originally,
all data was submitted using the fax machine and paper reports
(hence the Marriott Report) were distributed to the subscribers.
Eventually, area reports and sophisticated DB queries were avail-
able over the Internet, and finally data was captured at the website
as well. Along the way, the basic information function of the
DB led to larger aggregate analysis looking at the industry as a
whole. CAPP also utilized the DB for analysis in support of lobby-
ing efforts on surface rights issues. Individual clients and groups
of clients sponsored trend analysis studies and benchmarking.
Even more extensive analysis is possible because now there is a
raw data source available. For example, providing a Surface Rights
Board ‘score card’ on whether decisions accurately reflect what is
paid in an area, is possible using the DB.
issuesWhile the principle of the DB was universally accepted by
producers, the population of the database has proved difficult
since going from ‘principle’ to implementation has faced many
challenges. In general, any change in the manner of doing busi-
ness is resisted, and so it was with the implementation of the
DB. Many land agents felt it was a threat to a necessary function
they perform for the industry, and even after 15 years many still
feel the same way. But more than that, many felt that the DB
would remove the need for ‘word-of-mouth’ networking which is
a critical part of work in the field. These concerns have proved to
be groundless as the DB is just one tool available to field agents
and is used in conjunction with a knowledge of the general
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‘going’ rates and the fundamentals in determining compensation.
The reality of current field work is that the precedent setting
exception deals always trump the ‘going’ rates and they also
trump any empirical analysis built up from the fundamentals.
The land agent is miles ahead if he is aware of these deals before
he visits the landowner. That way, he can be prepared with coun-
ter arguments showing that these deals were the exception and
not justified in the current environment. However, if he doesn’t
even know the extent of the problems he can’t be expected to
adequately address them.
The main benefit of the DB to the field agent remains cheap,
accessible, detailed, comprehensive, and objective information
from which the agent can devise a unique strategy to approach
the next landowner.
current review ProcessThe process to achieve the current review of the DB will consist
of a small number of consultative meetings with the industry’s
leaders to review the history, development, and issues facing the
DB. The primary focus of the review will be on the impediments
in moving from the generally accepted principles to practical
implementation. Despite operators’ best intentions, data fails
to be transmitted to the administrator. Other topics for discus-
sion include: (i) content and collection of the DB data (eg. should
additional information be collected?); (ii) the format and delivery
of the data (eg on maps using IHS and others); (iii) the adminis-
tration of the DB (eg through one of the trade associations, CAPL,
or AASLA); (iv) the governance of the administrator (eg with
member user-group meetings or a Board of Advisors); and (v) the
funding of administrator costs (eg who benefits – who pays?).
Based on the views expressed at these meetings, and other input
from interested parties, the main sponsors of the DB will recom-
mend changes and then seek agreement and endorsement to
move the DB in a new direction.
ParticipationEveryone is welcome to participate in this review. We are asking
for you to provide your views through your company’s lead
Surface Land person so they can forward them to the consultative
meetings. Failing that, please provide any comments directly to
Bill Marriott ([email protected]). m
Bill Marriott is the President of William D. Marriott &
Associates Ltd. and has been the administrator of the
Surface Land Compensation Database for the last 15 years.
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dear cAPl members:Wow, what a difference four
weeks makes. Our Activities
and Program are set, our
Conference Link is up on
the CAPL website, we have
set our delegate, exhibitor
and guest fees, our delegate
registration form is ready to
publish and The Delta Grand
Okanagan has already booked
dozens of room-nights under
our hotel contract.
Let me start off in this
article with the web-link.
As of April 1, 2010 our beau-
tiful logo now appears on the CAPL home page. When you click
on the logo you go right into the conference website. As I write
this article, there is not that much information on our site.
However, since we have set the Program and the Activities, loads
of information will be available shortly. Most importantly, you
can access our Delegate Registration Form there and the links to
Westjet and The Delta Grand Okanagan are already on the site.
I am really proud of our 2010 Conference Program Committee.
They have put together some great sessions. Every single one of
our speakers can share some insight on our theme, Resiliency.
Each speaker will be able to relate their own stories of negotiating
through the highs and the lows on their separate paths to achieve
their goals, proving their resiliency, or alternatively, they will be
able to provide us with the tools we need to be resilient in the
years ahead.
Over these past couple of weeks we have confirmed Mike
Lipkin, the best-selling author and motivational speaker for the
breakfast session on Wednesday, September 29, 2010. Mr. Lipkin
actually has a presentation entitled “Resilience and Idealism”.
You have to listen to this guy speak. He is riveting.
The breakfast session will be followed by an Emerging Plays
and Technology panel discussion. This session will be moderated
by Dan Themig from Packers Plus and will involve the participa-
tion of two producers that use the technology: Dr. Steve Aiken
from Terra Energy Corp., and Brett Harmon, formerly of Tristar Oil
& Gas Ltd. and Result Energy Inc., who is putting together a new
company at the time of writing this article.
At the luncheon on Wednesday, which is our final session,
we have lined up a barnburner of a presentation. We have Clara
Hughes, Jon Montgomery, and Ashley McKivor addressing the
delegation. I am sure we will hear three great stories about
resiliency from these athletes. Ashley McKivor won a gold medal
at the 2010 Olympic Ski Cross event, Jon Montgomery (pictured in
this article) won a gold medal in the 2010 Olympic Skeleton event
and Clara Hughes, a 6-time Olympic medalist, led the 2010 team
as flag-bearer at the 2010 Winter Olympics Opening Ceremony.
The Activities that have been lined up will be just as memora-
ble as the keynote sessions. On Sunday at the Opening Reception
we will be congregating on the terrace which is above the pool and
overlooking Okanagan Lake. This indoor/outdoor event should
prove to be an excellent networking opportunity in an outstand-
ing venue. At the Opening Reception the delegation will witness
the first ever CAPL Grape Stomping Contest – more on this in the
next issue. This year the Chairman’s Ball will be a Mediterranean
Feast held on Wednesday evening; the final night of the confer-
ence. Come experience the old world decadence and traditions of
the Mediterranean culture in our own Mediterranean setting at
the Delta Grand Okanagan.
My thanks again go out to the hard work of all of the volun-
teers involved in this undertaking. Please acknowledge the special
contributions that they have all made, especially the committee
chairmen: Jeff Hohn, Jeff Leitl, Cathy Armstrong, Mary Lou Ediger,
Dave Horn, and Colin McKinnon. I have been a tyrant to these
people and they have responded like professionals, with great
results and exceptional grace.
Please join us in Kelowna. Visit the www.landman.ca and look
for the cool conference logo. m
Jim Moore
2010 Conference Chairman
2010 Kelowna Conference Update
Jon Montgomery, Gold Medalist – Skeleton
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inviting All univerSity of cAlgAry hASkAyne School of buSineSS PlmA StudentS & induStry mentorS in 2009 to 2011 grAduAting clASSeS
Thursday, May 13, 2010 at 5:00 PM
Garage Billiards Bar and Restaurant, Eau Claire Market
the cAPl And the Petroleum lAnd mAnAgement ProgrAm At the univerSity of cAlgAry’S hASkAyne School of buSineSS continue to operate the successful
CAPL PLM Mentoring Program which introduces students to an
experienced mentor in the land profession. These mentors provide
students with guidance in their educational journey and address
career related questions and career development.
On Thursday, May 13, 2010, we welcome all current mentor and
student pairings from 2009, 2010 and 2011 graduating classes to
join us as we honor those mentors completing their final year of
service in our mentoring program.
We would sincerely like to thank the following individuals for
their participation in the CAPL/PLM Mentoring Program over the
past two to three years and we encourage them all to consider
taking on a new protégé in the 2011 winter semester.
Brad Purdy Tim Louie Dean Marcil Chris Koichopolos
Dalton Dalik David Kinton Chris Lamb Cam Urquhart
Troy Smith Chris Soby Shelly Hittle Tim Lee
Calvin House Phil Schnell Bill MacDonald Glen Richardson
Rob D’Adamo James Armstrong Darren Grandoni Jennifer Benko
Jerry Hagan John Covey Jeff Good Ken Buckley
Nathan MacBey Rob Weston Craig Haavardsrud Ryan Zembiak
Phil Plotkins Scott Rideout Renee Merkel Shawn McDonald
Dan Dugas Tony Smith Craig Kolochuk Tyler Murray
Dan Cicero
Should you be interested in becoming a Mentor in January, 2011
or if you have any questions please contact Brad Johnston at
(403) 261-9283 or Sandy Sandhar at (403) 386-5429. m
Brad Johnston & Sandy Sandhar
CAPL PLM Mentoring Committee Co-Chairs
CAPL/PLM Mentorship Appreciation Night
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Olds College Annual Reception Recognition
the oldS college lAnd Agent And lAnd AdminiStrAtion ProgrAmS’ 28th AnnuAl recePtion took PlAce mArch 25, 2010 At the cryStAl bAllroom in the fAirmont PAlliSer in cAlgAry. The College received positive feedback on our recent
curriculum reform process and considerable support for graduates
of the Land Agent and Land Administration programs from the
over 250 attendees.
This annual event consistently attracts current students, past
graduates of the program and industry Personnel involved in
various aspects of the energy, right-of-way and/or land manage-
ment industries. Designed to offer these industries a greater
understanding of our programs, this event provides industry the
opportunity to network with students and staff and share updates
and changes. The timing of the event, close to the end of the
Academic year, provides the students a phenomenal networking
opportunity. Historically, this event is one of our students’ most
successful places to “find” summer or full-time employment.
Additional copies of the Student resume books distributed at the
event are still available to industry.
Industry support of the College Land programs is nothing less
than outstanding. Thousands of dollars in software and instruc-
tional material donations, countless man hours in background
support and guest speaker presentations are just some of the
ways industry keeps the program up to date in this ever-changing
industry. With this industry support, Olds College has been recog-
nized as the primary institute in Alberta for training Surface Land
Agents and Surface Land Administrators.
The students and staff of the Land Agent and Land
Administration programs would like to acknowledge the gener-
ous donations from the following companies who sponsored this
year’s reception:
Access Land Services Ltd.
Alberta Association of Surface Land Agents
Britt Land Services
Canadian Association of Petroleum Land Administrators
Canadian Association of Petroleum Landmen
Cavalier Land – A DivestCo Company
Cenovus Energy
CGI Group Inc.
Encana Corporation
Golder Associates
Integrity Land Inc.
International Right of Way Association – Chapter 48
LandSolutions Inc.
Maverick Land Consultants Ltd.
MSL Land Services Ltd.
Pandell Technology Corporation
Progress Land Services Ltd.
Standard Land Company Inc.
Synergy Land Services Ltd.
Traverse LandGroup Ltd.
University of Lethbridge – Faculty of Management
The overwhelming positive response by industry who attended
this event as well as their support for our continuing success has
us looking forward with anticipation to the 29th Annual Reception
to be held in 2011. Hope to see you there! m
Land Agent and Land Administration Programs – Olds College
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Board Briefsthe key issues discussed at the
cAPl board of directors’ meeting
held April 6, 2010 at the cAPl
office were as follows:
In Attendance Absent Guest
M. Ariss J. McKnight. D. Dalik Chris Bartole
G. Boogmans R. Telford Denise Grieve
J. Condon F. Terner Donna Phillips
J. Covey R. Thorsen Karin Steers
K. Gummo J. Tweten
S. Jackson R. Van den Bon
Guest Chris Bartole, Chairman of the 2011 Conference, provided •
the following information:
The Committee chairs are as follows:
Activities Cory Stewart
Administration Margaret Elekes and Donna Phillips
Finance Nathan MacBey
Marketing Todd Reain
Program Jeremy Wallis
Chris presented a thorough historical perspective on CAPL
conference locations, attendance, costs and revenues. Based on
that background, he reviewed several possible locations for the
2011 Conference. The selected location will be announced at the
2010 Conference.
Jim Condon, Director of Finance, provided the following •
information:
The Investment portfolio as at March 31, 2010 showed CAPL •
investments totalling $528,728.08 Canadian and $38,009.80
U.S. along with a cash balance of $207,793.15 Canadian
and $3,029.04 U.S. The CAPL Scholarship Fund has a balance
of $234,919.88. There were no transfers made since the
last report.
He presented the audited financial statements as at December •
31, 2009 showing a loss of $723,856. The loss consists largely
as a result of the following items:
$300,000 – approved donations
$157,000 – 2009 Conference
$ 55,640 – education subsidy
$211,216 – operational loss
In short, the year in which we deliberately chose to distribute •
a substantial portion of our accumulated surplus coincided
with the year of the global financial meltdown and resulting
negative impact on our Conference and other operations.
Fortunately we still retain a very healthy accumulated
surplus and are carefully monitoring 2010 finances to remain
as close to a balanced budget as possible.
The audited financial statements will be presented to the •
membership at the April 15, 2010 Annual General Meeting.
Gloria Boogmans presented one active membership application •
to the Board of Directors, which was approved. One member
was also approved to change from Active to a Senior member.
Gloria Boogmans presented the names of the 2009 award •
recipients as recommended by the Merit Awards Committee.
The awards will be presented at the May 13, 2010 General Meeting.
Jason Tweten, Director of Field Management, distributed the •
NEEMAC Annual Report for the year ending 2009.
Jan McKnight, Director of Education, advised that Richard Fulton •
will be replacing her as the Chair of the Education Committee.
Robyn Van den Bon presented a revised Professional Procedure, •
which was approved by the Board. The revised Professional
Procedure is effective April 8, 2010.
Robyn Van den Bon advised that the following member recently •
wrote and passed the Professionalism examination:
Nolan Treble, PSL
Frank Terner, Director of Business Development, advised that •
the PNG Information Exchange co-hosted by CAPL and CAPLA on
April 22, 2010 is almost finalized. The morning session with the
Alberta Department of Energy will open with keynote speaker
Diana McQueen, Parliamentary Assistant to the Minister.
Ken Gummo reminded Directors of the following:•
The next Board of Directors’ Meeting will be held May 4, 2010 •
at the CAPL office.
The next General Meeting is the Annual General Meeting and •
Elections luncheon on Thursday, April 15, 2010 at the Westin
Hotel. The guest speaker is Paul Negenman of Enerlaw speak-
ing on the topic “Is ERCB the New Court for Freehold Leases m
John Covey
Secretary/Director, Social Secretariat
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Message From the Executive
field Acquisition and managementthe field AcquiSition And mAnAgement (fAm) Portfolio rePreSentS the SurfAce And field comPonentS of the lAnd ProfeSSion. This portfolio
is a highly motivated and energetic
group of volunteer individuals with diverse backgrounds and
with many years of experience. The committee is chaired by Nikki
Sitch, Vice Chair is Jason Gouw and Secretary is Amanda Kuspira.
Within the committee there are several external liaisons
that represent CAPL on numerous committees and task forces
throughout our industry. We are pleased to have liaisons on
such committees and task forces as the: Land Agent Advisory
Committee, Canadian Association of Petroleum Producers (“CAPP”)¸
Northeast Energy and Mines Advisory Committee (“NEEMAC”),
B.C. Surface Agreements, ERCB ADR Standing committee,
Reclamation, Remediation & Abandonment Task Force, Olds
College, along with several internal liaisons that sit on committees
within many other CAPL portfolios.
This year saw the FAM committee draft up and obtain CAPL
Board endorsement on a formal process for acceptance of all
external liaison positions within FAM and the CAPL. This process
allows all CAPL members to take part in volunteering and allows
for opportunity to get involved with industry committees that
affect all of us. We are also in the final stages of completion to
the FAM mandate that outlines the entire committee and will be
available for all membership. This mandate allows for a better
understanding of our committee and all the great volunteers that
make it up.
Even though activity in Alberta may be low, there are
always government policies and changes happening around us.
The Alberta Land Stewardship Act or Land use Framework that
has most recently been released is a prime example of how indus-
try activity does not reflect the need to be involved.
The committee attempts to stay current on all emerging field
service issues and has a large volunteer base to tackle these issues
as they arise. Should you wish to volunteer on our committee or
have issues regarding the committee which need to be brought to
our attention, please contact myself or Nikki for more details. m
Jason Tweten, PSL
Director, FAM
2010 CAPL Squash Tournamentthe cAPl SquASh tournAment wAS held on SAturdAy mArch 6 At the glencoe club. Once again,
the competitors were treated to a great night of competitive squash.,
lots of laughs and camaraderie, and a fabulous assortment of food,
fun and prizes. The top teams this year were:
1st place: Tom Emerson, Brett Suchan and Dione Setoguchi
2nd place: Phil Schnell, Lindsay Smith and Don Austin
3rd place: Bryan Edstrom, Kevin Koopman and Kristi Gartner
Last place: John Boone, Brad Johnston and Ashley Babbot
Congratulations to the committee and Sponsors for their great
work in making the tournament a success. This tournament
continues to be one of the premier events on the CAPL social
calendar. Special thanks to all the new players who came out to
try this event we look forward to seeing you next year! m
the sponsors for the tournament were:
Shirt Sponsors: geoLOGIC Systems Ltd.
Door Prizes: Standard Land
Platinum: ConocoPhillips Canada Result Energy
Gold: Altus Group Home Quarter Resources Ltd.
Black Knight Racquets Hunt Oil Company of Canada
Bristol Land & Leasing LandSolutions Inc.
Britt Land Services Ltd. McMillan LLP
Cavalier Land / Divestco Midwest Surveys
Crescent Point Energy Corp. MSL Land Services Ltd.
Emerge Energy Inc. NAL Resources Trust
Energy Navigator Nexen Inc.
Galleon Energy Inc. Scott Land & Lease Ltd.
Gowling Lafleur Henderson LLP World Staffing Solutions
Silver: Big Shot Consulting Prairie Land & Investment Services
Cabrerra Resources Ltd. Rockford Land Ltd.
Focus Corporation Roy Northern Land & Environmental
Insignia Energy Inc. Severo Energy Corp.
North Star Freehold Consulting Storm Exploration Inc.
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mArk july 23, 2010 on your cAlendAr AS the 2010 gowlingS Plm Alumni chArity golf clASSic iS bAck! Although
times have slowed, registration day
is always a guaranteed sell out so
please submit your forms starting
on May 20, 2010 (no early registrations accepted). This year we are
pleased to have once again selected Tour For Kids as our primary
charity, so remember to bring your credit card and get ready to
have some fun! Tour For Kids is a three day cycling adventure
where all of the funds raised by the riders goes directly to sending
children with cancer to camp.
Registration forms for the golf tournament are included in this
month’s Negotiator. Thanks again for all your support and we look
forward to seeing you in Canmore to celebrate the very special
20th anniversary of this legendary tournament. m
PLM Alumni Charity Golf Classic Organizing Committee
Gowlings LLP Presents the 2010 PLM Alumni Charity Golf Classic
2010 10k & 5k Road Race and Fun Runonce AgAin cAPl memberS hAve been invited to Attend And PArticiPAte in the cSPg/cSeg 10 km & 5 km roAd rAce And fun run. The 22nd annual race will
take place on Wednesday, September 15, 2010 at 6:00 p.m. This is
an excellent opportunity to compete and socialize with members
of CAPL, CSPG, CSEG and the general public.
The course is flat and easy along the scenic Bow River path-
way and will start and finish at the Eau Claire YMCA. The race
features include: numerous category & draw prizes, post-race
pizza & refreshments, a reduced entry fee for CAPL members and
a commemorative souvenir.
Whether you consider yourself a serious runner or a recre-
ational jogger, please join us for this fun event. Further details and
on-line registration will be available in the coming months on the
CSPG and CAPL websites. m
Should you have any questions please contact:Dave Bracey
716-6399, [email protected]
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Ride, Ride, Ridelandman & friends ride & Poker run if you’re A biker And hAven’t been on the lAndmAn’S ride yet, here’s what last year’s ride looked like
and why you might want to join us this year.
The ride started at 9:00 a.m. with coffee at the Shawnessy
A&W. After the appropriate greetings, we fired up and made our
way west on 22X. It was late August and a bit crisp but the road
felt good. Forty minutes later we arrived at our second rendezvous
point, Bragg Creek, a favourite starting point for those who live in
the west end, or who would rather meet at 10 a.m. than 9.
We were happy to see the usual suspects as well as a few new
participants waiting for us. There followed the inspection of each
other’s pride & joy, with time to exchange names and welcome the
new ones. Then it was time to head out, but not before a short chat
about safety and hand-signal communication. It was well empha-
sized that when the group leader raises his hand with one finger
in the air, it means ‘single file’... not a salute to a passing vehicle!
One of the traditions on this ride is for everyone to toss
5 bucks into a hat, then at every stop a playing card is handed out.
At the end of the ride the best 5-card ‘poker hand’ wins the pot!
Some people come along just to play the poker game, but I’m not
mentioning any names! The first card of the poker run was dealt
and then it was north to Cochrane and west towards Kananaskis
Country on the old 1A highway. This particular route was new
to us and not chosen lightly. The old 1A is wide at the start, but
narrows down further west and some of the regular road custom-
ers have been known to drift over the centre-line without warning.
But this stretch does offer just what every biker wants, a road that
is scenic, tight and with just enough curves to test one’s mettle
while leaving the other metal on the bike intact!
The next stop was the new Casino at the Kananaskis turn-off.
This spot offered welcomed facilities and allowed some to relieve
themselves of money… A couple of late riders caught up with us,
and then it was onward, south into the mountains until we found
ourselves by Kananaskis Golf Course. This is an important pit stop,
as it’s the only gas station west of Bragg Creek, and is essential for
bikes with small tanks. This stop is a great place for photos, poker
and lots of chatting and tire kicking.
Hey! Look out for the animals! YIKES! There are more moun-
tain sheep on the road today then fleas on a dog! The sheep are
wayyyy too comfortable in the
middle of the road, apparently
their favourite salt-lick! You could
pull right up to them and they
completely ignore you, content to
hold their ground and lick salt off
the highway!
The next leg was up over High-
wood Pass and down the other
side. Now with elevation drop-
ping, temperature rising and ears
popping, it was time to kick back
and enjoy the sun. A great day to
be alive and a great day to ride!
Alas, all too soon we were
through Longview and pulling
into Black Diamond. The end of
the ride, but not the end of the
fun! Still time for a late lunch,
and a pop or two, and time to see
who’s got the best poker hand!
What’s this? One of the newcomers with the best poker hand!
Don’t they know you have to pay your dues and wait your turn to
win the poker-pot?
A post-ride hamburger is a good time to go over the day’s
events and to chuckle about all the funny things that happened
on the road. It’s also a good time to plan another Landman’s Bike
Ride and Poker Run. This year, the ride is on Saturday, August 21st.
Please join us!
To get your name on a list of interested riders and for updates,
send us an email, and put ‘Ride, Ride, Ride’ in the Subject heading m.
Bob James: [email protected]
Cell: 403-650-2122
John Kanderka: [email protected]
Cell: 403-949-2280
Bob James
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Get Smartthe cAPl education committee is pleased to present the following courses:
CAPL 1997 Farmout and Royalty Procedure
(May 5 or 6 workshop)
may 04, 2010 8:30 a.m. to 4:30 p.m.
workshop:
may 05, 2010 8:30 a.m. to 4:30 p.m. or
may 06, 2010 8:30 a.m. to 4:30 p.m.
This course is intended for any land personnel requiring a better
understanding of the 1997 CAPL Farmout and Royalty Procedure
and the associated 1997 CAPL Overriding Royalty Procedure.
Given the commonality on the operative provisions of the two
documents, the review of the Overriding Royalty Procedure focuses
on the major differences between the handling of ORRs relative to
that in the Farmout and Royalty Procedure. The instructor will
also refer to contemplated changes in the pending update to the
1997 documents.
negotiating: The Essential Skill for Landmen
may 11, 2010 8:30 a.m. to 4:30 p.m.
If you are on the front line conducting negotiations or are a
member of the “support team”, you must understand the nego-
tiating process and how you can contribute. Whether this is your
first exposure to training in negotiation or even if you have taken
negotiation courses in the past, this presentation is intended for
all professionals who wish to gain a further understanding of the
process and how the process can be managed to the mutual bene-
fit of the negotiators. This seminar will provide participants with
an understanding of the process of negotiating and will introduce
them to the skills required to achieve outstanding agreements.
Instruction will involve short presentations, case discussions,
practice negotiations and video clips. Participants will be fully
engaged throughout the program.
Drilling Operations
may 12, 2010 8:30 a.m. to 4:30 p.m.
This seminar is designed for persons with little or no experience
in drilling technology. This seminar will give a non-technical
overview of oilfield operations in Western Canada. The major
topics of drilling, well completion, and production operations
will be covered. In the drilling section, the instructor will discuss
drilling and other operations such as logging, drill stem testing,
coring and cementing. The completion section will include a
discussion of the service rig, perforating, stimulation and down-
hole equipment. Production operations will cover production
facilities and equipment, methods of artificial lift and enhanced
recovery techniques.
Acquisitions and Divestments: The Paper Chase
may 13, 2010 8:30 a.m. to 4:30 p.m.
This seminar is intended for those land personnel who are
involved in the corporate property rationalization process
and who have at least an intermediate knowledge of day
to day land practices. It will be of most benefit to those
individuals responsible for the preparation necessary to
evaluate and close an asset acquisition, divestment or trade.
Persons responsible for managing or supervising this area of
expertise will also find this course valuable. This course is not
intended for junior land personnel.
1999 CAPL Freehold Mineral Lease
may 18, 2010 8:30 a.m. to 12:00 p.m.
This seminar will be of value to anyone working with Freehold
Mineral Leases.
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Business Strategies for the Oil and Gas industry
may 19, 2010 8:30 a.m. to 4:30 p.m.
may 20, 2010 8:30 a.m. to 4:30 p.m.
Participants should have taken Economic Considerations for Land
Deals or a similar course dealing with economic evaluations,
including discounted cash flow and NPV analysis. The course
will prepare participants to contribute effectively to the decision-
making process for investment opportunities in oil and gas
exploration, development and acquisitions. Economic evaluation
and strategy formulation techniques are presented ranging
the project-specific to the corporate-wide perspective.
Professional Ethics: Theory and Application
may 25, 2010 8:30 a.m. to 12:00 p.m.
This seminar is intended to increase the understanding of ethics
and the dimensions to ethical behavior by stimulating the ethi-
cal thought process, giving a basic introduction to the nuances
of ethics, introducing a number of methods used in ethical deci-
sion making, and providing a forum for discussions with respect
to land related ethical issues. Case studies will encourage class
discussion and give each participant insight into the morality
vs. legality question.
Production Operations
may 26, 2010 8:30 a.m. to 4:30 p.m.
This seminar is designed for persons with little or no experi-
ence in production technology. Production operations will cover
production facilities and equipment, methods of artificial lift and
enhanced recovery techniques.
An interpretive Approach to ROFR issues
may 27, 2010 8:30 a.m. to 4:30 p.m.
This seminar is intended for more senior level landmen who are
responsible for analyzing various situations in which ROFR issues
may arise and recommending or implementing appropriate corpo-
rate responses thereto. This seminar will be presented in two parts.
The morning will be devoted to a presentation of legal principles
which may be relevant to ROFR situations and a suggested inter-
pretative methodology for analyzing and responding to unusual
ROFR scenarios. In the afternoon, a senior landman will join the
lawyers in a round table discussion of ROFR issues and specific
fact scenarios gathered by the presenters and submitted to the
panel by the course participants. Prospective course participants
are encouraged to submit their favorite challenging ROFR problem
to the instructor prior to or at the seminar for consideration and
discussion in the afternoon round table discussion.
Advanced Surface Rights
june 1, 2010 8:30 a.m. to 4:30 p.m.
This seminar is directed towards members of industry with five
or more years experience and is intended to summarize and
describe all facets of surface rights within the oil and gas business.
Registrants should consider Introduction to Surface Rights or at
least 5 years of field experience as a prerequisite for this course.
Oil and Gas Exploration interactive Workshop
june 2, 2010 8:00 a.m. to 5:00 p.m.
Lunch will be provided
This seminar is appropriate for personnel involved in all aspects of
the oil and gas business: landmen, administrators, lawyers, geolo-
gists, technologists, engineers, accountants, HR & IT personnel.
It can be used as an effective cross discipline team building
exercise within organizational groups as well. This seminar
will provide an overview of the exploration business includ-
ing geological concepts, crown sales, deal making, exploration
strategies, drilling and the excitement of bringing in a “gusher”.
The “Exploration Workshop” is a dynamic simulation of the explo-
ration business in which the participants have the opportunity
to experience the roles of the geologist, geophysicist, driller and
petroleum Landman. The main component of this workshop
is a three dimensional exploration basin which has concealed
structures representing pinnacle reefs, beaches, anticlines and
fluvial channels. The course will provide an introduction to the
fundamentals of geology, geophysics, land acquisition, deal types,
strategies and team development.
(PSL) Facilities Overview
june 3, 2010 8:30 a.m. to 4:30 p.m.
This seminar for surface land agents will give an overview of
many key aspects of oil and gas field operations, facilities and
practices. Upon completion of the course land agents will have
a basic understanding of the key aspects involved in field opera-
tions. This seminar will cover the stages in the life cycle of a well:
Exploration Phase, Production Phase, and Abandonment Phase. m
Registration can be done online at www.landman.ca. Full course
descriptions can be found online at www.landman.ca/course_calendar.
php. For further information, please contact the CAPL office either by
phone at 403-237-6635, or email [email protected].
SPONSORSHIPOPPORTUNITY
2010PRE-STAMPEDE NETWORKING
NIGHT
FLAMes CenTrALThursdAy, june 24, 2010TiCkeTs on sALe MAy 14
ATTENTION: LAND MANAGER/BuSINESS DEvELOPMENTwe are pleased to announce the 2010 Pre-Stampede networking event will be held at flames central on thursday, june 24th, 2010.
help support an evening of networking, great food and prizes by way of sponsorship.
this is a premier opportunity to show your support to 1000+ industry professionals.
early bird sponsors will also have their logo featured on the event invitation.
Deadline for early bird sponsorship is May 11, 2010.
tier 1: $2500 Title Sponsorship. company logo displayed on event tickets, marquis, tvs (longer exposure), 4 complimentary tickets.
tier 2: $1000 sponsorship. company logo displayed on the power ring, big screen tvs and marquee, 3 complimentary tickets.
tier 3: $500 sponsorship. company logo displayed on the power ring and big screen tvs, 1 complimentary ticket.
if you wish to participate or have questions regarding sponsorship please contact
mike jamieson: 245-4711, [email protected]
judy uwiera: 403- 452-6591, [email protected], or
robb craige: 403-862-8444, @ [email protected]
Please forward cheques, made payable to cAPlA:
cAPlA
Suite 628, 138 – 4 Avenue S.e.
calgary, Ab t2g 4Z6
www.landsolutions.ca
LAND ACQUISITION & MANAGEMENT
FOr LAND ACQUISITION DONE rIGhT, COUNT ON ThE ExpErTS.With the full range of services to meet all your land acquisition or management needs.
Whether your project is large or small, complex or simple; LandSolutions provides industry-leading expertise in the full range of land acquisition and management services. Our network of field offices, staffed with experienced landmen and administrators ensure we bring expert service and local knowledge to every project. For land services done right, count on the Experts.
please call 1-866-834-0008 to learn more about our services.
“Easy Access”, Redefined.
24TH
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Roster Updatesnew members
The following member was approved by a
Motion on April 6, 2010:
Applicant Current Employer Sponsors
Active
Jason Bezruchak city of medicine hat Phil gazdag
brad mcneely
jason tweten, PSl
Active to Senior
Gordon Johnston g.r. reid developments ltd. m
on the moveDon Austin independent
to big Shot consulting ltd.
Chi Beers, P.Land talisman energy inc.
to Arc resources ltd.
Michael Bergstrom iteration energy ltd.
to canada capital energy corporation
Kerry Brown Stoker resources ltd.
to independent
Cindy Cameron talisman energy inc.
to canadian natural resources limited
Troy Cameron Petro-canada oil and gas
to Suncor energy Services inc.
Tyler Cheetham husky oil operations limited
to crescent Point energy corp.
Bernadette Clancy nAl resources management limited
to tundra oil and gas Partnership
Shaun Cooper result energy inc.
to independent
Frank Cortese rondo Petroleum inc.
to independent
Bob Cox total e&P canada ltd.
to horse river ventures limited
Derick Czember Suncor energy inc.
to daylight energy ltd.
Kellie D’Hondt canadian natural resources limited
to crescent Point energy corp.
Patricia Elasz Petrobakken energy ltd.
to independent
Jacquie Farquhar independent
to regent resources ltd.
Robert Fathers ranger land Services ltd.
to independent
Ryan Hall independent
to conocoPhillips canada
Tricia Hyman Petro-canada oil and gas
to Suncor energy Services inc.
Carolyn Ink conocoPhillips canada
to independent
Edward Kalthoff independent
to toscana resource corporation
Melanie Lindholm encana corporation
to cenovus energy inc.
Barbara MacBeath baytex energy ltd.
to nuvista energy ltd.
Peter Manchak devon canada corporation
to independent
Wendy McKuski independent
to harvest operations corp.
Heather McLarty Arc resources ltd.
to barrick energy inc.
Neil McPherson covenant resources ltd.
to felcom resources corporation
Dawne Nelson rondo Petroleum inc.
to independent
1250, 396 – 11th Ave S.W. T2R 0C5
25
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Denise Nelson bg international limited
to independent
Chris Palacz result energy inc.
to independent
Jeff Pike independent
to terra energy corp.
Bob Purdy city of medicine hat
to independent
Colleen Remenda result energy inc.
to independent
Doug Reynolds, P.Land northern hunter energy inc.
to independent
Ian Ross, P.Land independent
to harvest operations corp.
Jerry Seida camelback oils ltd.
to ravenwood energy corp.
Suzanne Stahl onefour energy ltd.
to independent
Marty Staples Peloton exploration corp.
to tourmaline oil corp.
Debbie Steele enerplus group
to independent
Tyler Thorburn Progress land Services ltd.
to canadian natural resources limited
Walter Vrataric one exploration inc.
to Storm ventures international inc.
Kathryn Wade Pengrowth corporation
to independent
Jeremy Wallis result energy inc.
to independent
Kevin Walz darian resources ltd.
to Petrobakken energy ltd.
Sheri Wannamaker breaker energy ltd.
to heritage Surface Solutions ltd. m
26TH
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Farmouts. Sales. Opportunities.
PNG Exchange is a web-based service for landmen and oil and gas professionals looking to acquire or dispose of properties. PNG Exchange benefits companies by allowing users to customize their property postings, while reaching the maximum number of interested parties in the marketplace. It is the quickest and most cost-effective way for disposing and acquiring parties to connect. Check us out today.
Find out more by contacting Christian Lindved-Jensen at403 462 8057 or [email protected].
CAPL Golf Tournamentthursday, August 19, 2010 – heritage Pointe golf club
the cAPl golf tournAment is returning to Heritage
Pointe Golf Club for a single shotgun tournament. The format
for the tournament will be a 27 hole shotgun. This year’s event
will bring together 216 landmen and sponsors under one roof.
Entry forms will be available
in the May and June issues of
The Negotiator and on the CAPL
website. The cost will be $200
(including GST). Registration
begins on May 18, 2010. If you
have any questions regarding
the tournament please contact
Kristen McDonald at (403)
261-6520, email at kmcdonald@
scottland.ca or Alayne Fernquist
at (403) 536-5852, email at afern-
LandSolutions Inc. #200, 601-10 Ave SW Calgary, AB T2R 0B2 1-866-834-0008ALSO SERVING: British Columbia, Manitoba, Ontario, Eastern Canada, and throughout Midwest US.
WESTERN CANADA LAND SALE and DRILLING RIG REVIEW
THE EXPERTS IN LAND ACQUISITIONAND MANAGEMENT SERVICES.
0
100
200
300
400
500
600
700
800
900
March 2010 March 2009 March 2008 March 2007 March 2006 March 2005
Drilling Report for Last 5 Years
Drilling
Down
Total
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
March 2010 March 2009 March 2008 March 2007 March 2006 March 2005
Drilling Rig Utilization Rate
Utilization Rate
0
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Land Sale DataManitoba British Columbia Saskatchewan Alberta
AREATotal Ha Sold (thousands)
Average$ / Ha
BC 18,736 $716
AB - Foothills 32,640 $453
AB - Plains 91,261 $503
AB - Northern 469,376 $354
SK no sale
MB no sale
March 2010
NOTE: Numbers are rounded
Surface • Public Consultation • Freehold Leasing • A & D • Oil Sands • Pipelines • Land Sales • Environmental • Contract Staffing
Experienced professionalsdelivering high quality workout of 6 full service offices.
CalgaryEdmontonLloydminsterReginaGrande PrairieFort St. John
403-261-1000scottland.ca
Scott Land & Lease Ad Final 1/15/09 5:16 PM Page 1
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CAPL Calendar of Eventsmay 4 Tuesday CAPL 1997 Farmout & Royalty Procedure
(with May 5th or 6th Workshop) 5 Wednesday Alberta Land Sale 6 Thursday 9 Ball Pool Tournament 8 Saturday Spring Ball 9 Sunday Mother’s Day 11 Tuesday Negotiating: The Essential Skill for Landmen 12 Wednesday Manitoba Land Sale 12 Wednesday Drilling Operations 13 Thursday Acquisitions & Divestments: The Paper Chase 13 Thursday General Meeting & Merit Awards Dinner 18 Tuesday 1999 CAPL Freehold Mineral Lease 19-20 Wed-Thur Business Strategies for the Oil and Gas Industry 19 Wednesday Alberta Land Sale 19 Wednesday British Columbia Land Sale 24 Monday Victoria Day 25 Tuesday Professional Ethics: Theory and Application 26 Wednesday Production Operations 27 Thursday An Interpretive Approach to Dealing
with ROFR Issues m
june 1 Tuesday Advanced Surface Rights 1 Tuesday Board Meeting 2 Wednesday Oil & Gas Exploration: Interactive Workshop 2 Wednesday Alberta Land Sale 3 Thursday (PSL) Facilities Overview 7 Monday Saskatchewan Land Sale 8-12 Tue-Sat Salmon Fishing 9 Wednesday General Meeting Luncheon 16 Wednesday Alberta Land Sale 17 Thursday Joint CAPLA/CAPL/IRWA Networking 20 Sunday Father’s Day 23 Wednesday BC Land Sale m
May Meetingmerit Awardsthursday, may 13, 2010
Cocktails: 5:00 p.m.
Dinner: 6:00 p.m.
Location: The Westin Hotel
320 – 4 Avenue S.W.
Members: No Charge for Members
Guests: $89.25 includes GST
Any person with special dietary needs or food allergies should contact
Karin Steers. All members are required to confirm their attendance
by return fax or email. Only guests are required to purchase a ticket.
Please fax or email request and guest tickets will be sent to your office
with an invoice. Fax Registration Form to (263-1620) Attn: Karin Steers
or email [email protected]. Please confirm your attendance prior to
noon on Friday, May 7, 2010. m
June Meetingmichael thackray, q.c. Partner, mcmillan llPwednesday, june 9, 2010
Lunch: 11:30 a.m. to 1:30 p.m.
Location: The Westin Hotel
320 – 4 Avenue S.W.
Members: No Charge for Members
Guests: $68.25 includes GST
All members are required to confirm their attendance by return fax or
email. Only guests are required to purchase a ticket. Please fax or email
request and guest tickets will be sent to your office with an invoice.
Fax Registration Form to (263-1620) Attn: Karin Steers or email
[email protected]. Please confirm your attendance prior to noon on
Friday, June 4, 2010. m
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©2008 IH
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