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

McMillan LLP | Lawyers | Avocats | Calgary | Toronto | Montréal | mcmillan.ca

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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

Nikki Sitch, P.Land, PSL [ph] 403-263-7610Director, Public Relations

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 mcobb@landman.caDenise Grieve dgrieve@landman.ca Irene Krickhan ikrickhan@landman.caKarin Steers ksteers@landman.ca

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...

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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

w w w. e l e x c o . c o m

A FULL SERVICE LAND COMPANY SERVING NORTH AMERICA

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 (bill@wdmarriott.com). 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, dave.bracey@cnrl.com

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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: bob@tigermoth.ca

Cell: 403-650-2122

John Kanderka: kandyman@davincibb.net

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 dgrieve@landman.ca.

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, mjamieson@mcelhanney.net

judy uwiera: 403- 452-6591, judy@caplacanada.org, or

robb craige: 403-862-8444, @ robb@wildroseland.com

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.

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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

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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

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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 christian.lindved@pngexchange.com.

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-

quist@daylightenergy.ca. m

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

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

8000

8500

9000

9500

10000

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 ksteers@landman.ca. 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

ksteers@landman.ca. Please confirm your attendance prior to noon on

Friday, June 4, 2010. m

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Visit us at ihs.com/accumapconnect and discover what “competitive advantage” really means.

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“AccuMap’s been on my computer for 10 years.”

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“AccuMap is the industry standard.”

— The Crescent Point Energy Trust Land Team

©2008 IH

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