Volume 8.6 April, 2004 - CAPLAcaplacanada.org/wp-content/uploads/2015/02/2004_April_NEXUS.pdf · PIPA – Consent: ss. 7-10 • Generally you need consent for collection, use and

MESSAGE FROM THE VICE PRESIDENT

Dealing With ChangeI once attended a conference where one of the sessions was“The Past, Present and Future of Land Administration”. Theone theme that stuck with me was everything in ourindustry is in a constant state of change, and people mustdecide for themselves if they want to adapt to change.

I approached the speaker and told him what he had saidmade sense to me, in that people must decide to change forthemselves or they will be left behind. Another person alsostayed behind to talk to the speaker and asked, “What if Idon’t want to change and just continue to do my same job,as I have always done it.” The answer to that question wasvery hard, because this person didn’t want to deal with thechange that was coming to our profession. She believedthat any change was a threat. Despite the speaker trying toaddress her question and show that change was inevitable,this person did not want things to change. After I haddeparted the session, I reflected on the question that sheposed even more, as I wondered “How does Land fit intothe big picture?” and “Where do I fit in that picture?”Should I concentrate on working within a Land Departmentand only answer questions when I’m asked, or should I beproactive in trying to find out where Land fits within acompany.

For me the decision has been to find out where the Landpiece fits in the big picture. From mentors I have had, Ihave been able to find out even more about what others do

with the information that a Land Department supplies, andalso how other departments relate to the Land Department.I also have been able to experience many different roleswithin a Land Department as a Land Administrator(Contracts and Mineral), a Negotiator and as part of anAcquisition and Disposition Team. So I have been able tosee the big picture, and the one thing that I have learnedfrom this is that there are more things to learn about howLand fits into that big picture.

Land Administration is starting to be recognized as a keycomponent in the decision-making process, andcompanies are realizing that Land Administration can havea large impact on the bottom line of a company’s success.Changes are taking place in many different areas of ourbusiness, and we must keep communicating with eachother and other departments regarding these changes. Theonly way that we can grow is to look at how the changeswe may face every day affect others within our companies.

Given that the theme of the CAPLA Conference is “Puttingthe Pieces Together”, I encourage everyone to attend, as itwill show how we can deal with the changes that areoccurring in our Industry, and how what we do impactsother departments in our respective companies.

Ty HansenVice President

Volume 8.6 April, 2004

CAPLA Conference 2004. . . . . . . . . . . . . . . . . . . . 3-5

New Privacy Rules For Alberta . . . . . . . . . . . . . . . . 6

The Truth About Mineral Certificates . . . . . . . . . . 10

Requiem To ROFR Rights . . . . . . . . . . . . . . . . . . . . 11

CAPLA GALA Thank Yous . . . . . . . . . . . . . . . . . 14-15

You Wanted To Know. . . . . . . . . . . . . . . . . . . . . . . 17

Pre-Stampede Party. . . . . . . . . . . . . . . . . . . . . . . . 18

CAPLA Special Meeting . . . . . . . . . . . . . . . . . . . . . 20

HIGHLIGHTS

CAPLA CONFERENCE 2004PUTTING THE PIECES TOGETHER

June 24 - 26Calgary StampedeRoundup Centre

NEXUSPage 2 Volume 8.6 - April, 2004

TABLE OF CONTENTS

CAPLA Conference 2004 . . . . . . . . . . . . . . . . 3

Conference Sponsorship Opportunities . . . . 4-5

New Privacy Rules For Alberta . . . . . . . . . . 6-8

Association Profile . . . . . . . . . . . . . . . . . . . . . 9

The Truth About Mineral Certificates . . . . . . 10

Requiem To ROFR Rights . . . . . . . . . . . . . 11-13

Model Production Agreements . . . . . . . . . . . 14

Job Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

GALA Thank Yous and Pictures . . . . . . . . 15-16

You Wanted To Know . . . . . . . . . . . . . . . . . . 17

CAPLA & CAPL Pre-Stampede Party . . . . . . . 18

Committee Updates . . . . . . . . . . . . . . . . . . . 19

CAPLA Special Meeting . . . . . . . . . . . . . . . . 20

CAPL Courses . . . . . . . . . . . . . . . . . . . . . . . . 21

Welcome New Members. . . . . . . . . . . . . . . . 22

Message To Associate Members . . . . . . . . . . 23

New CAPLA Board Members . . . . . . . . . . . . 24

CAPLA Courses . . . . . . . . . . . . . . . . . . . . 26-31

CAPLA Events Calendar . . . . . . . . . . . . . . . . 32

Effective January, 2004CAPLA’s Membership was 1,800

Deadline for nextCAPLA NEXUS:June 10, 2004

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

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

NEXUS Email: [email protected]

CAPLA NEXUSis a publication of CAPLA

Produced by the Communication Committee

NEXUS Email: [email protected]

Director: Nancy Howes-Olmstead

Editor: Julia Haynes

Assistant. Editor: Wendy Walker

Print Coordinator: Wendy Walker

Head Proofreader: Holly Anderson

Editorial Team: Norma AndersonGloria HoyosMaarnie Shakespeare

PUBLICATION SCHEDULE

MEETING DATES ARTICLE SUBMISSION DEADLINE MAILOUTSeptember 28 June 10 August 24November 16 September 9 October 13January 2005 November 4 December 7

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

Board of Directors

President Audrey Atkins

Vice-President Ty Hansen

Secretary Barbara MacBeath

Treasurer Sherry Sturko

Certification Kevin MacFarlane

Communication Nancy Howes-Olmstead

Conference Val Anderson

Education Margarita Cowan

Events Joanna Pelletier

Government Relations Lynn Gregory

Industry Relations (Interim Director) Ty Hansen

Member Services Kelly Erickson

Public Relations & Promotion Jeff Bryksa

Technology Kathy Ward

NEXUS Volume 8.6 - April, 2004 Page 3


CAPLA 2004 CONFERENCE - “PUTTING THE PIECES TOGETHER”

SPONSORSHIP OPPORTUNITIES - Deadline: April 30th

ALL sponsors will be listed, according to level of sponsorship, • in the Delegate Showguide, • on the main Sponsorship Board on-site at the Conference • on the CAPLA Website, with an optional link to the sponsor’s website • See the Benefits form regarding publicity details for each opportunity

PLATINUM sponsors and Booth Exhibitors receive a FREE ¼ page advertisement in the Delegate Showguide

Platinum - Over $5,000 Gold - $2,000 - $4,999 Silver - $500 - $1,999 Bronze - Under $500

1. EDUCATION SESSIONS $2,000.00 - includes both days (SEE SESSION OUTLINE on website) 1st Choice: 2nd Choice:

2. EXHIBITOR BOOTH - $1,500 + $105 GST = $1,605.00

3. ADVERTISING in the DELEGATE SHOWGUIDE (1/4 page included if Conference Booth Exhibitor) 1/4 page $200.00 + $14.00 = $214.00 1/2 page $325.00 + $22.75 = $347.75 Full page $525.00 + $36.75 = $561.75 Inside Front Cover – Black/White $600.00 + $42.00 = $642.00 SOLD Inside Back Cover – Black/White $600.00 + $42.00 = $642.00 SOLD Outside Back Cover – Full Color $1,050.00 + $73.50 = $1,123.50 SOLD

4. LUNCHEON MEALS BOTH DAYS Luncheon ( Thursday or Friday) - $2,500.00 per day SPONSORED

5. LUNCHEON SPEAKERS $2500.00 per dayThursday - Cary Mullen (www.carymullen.com) Friday - Lorne Elliot (www.lorne-elliot.com)

6. DELEGATE REFRESHMENT TABLES Breakfast Coffee/Pastries PLUS Morning/Afternoon Coffee Thursday $2,000 BOTH DAYS Breakfast Coffee/Pastries PLUS Morning/Afternoon Coffee Friday $2,000 SPONSORED

7. CAPLA CONFERENCE WEBSITE $5,000.00 SPONSORED

8. CASH DONATION

9. SPECIALTY/ REGISTRATION PACKAGE CONTRIBUTIONS Door Prizes, Session Props, Promo Items, Gift Baskets, Gift Certificates, Pens, Calculators, etc: – Please list:


10. BINDERS: CAPLA provides binders as part of the registration package. Any company wishing to assist with the cost of the binders may make a donation. All companies will be listed on a laminated binder insert. There is no set donation amount and no limit to the number of contributing companies.

11. EVENTS – Refer to the Sponsorship Benefits & Corporate Awareness sheet for details regarding exposure.

GOLF TOURNAMENT 1st tee giveaway @ $2,000.00 SPONSORED (Woodside Greens-Airdrie) Beverage Tent

Golf Carts @ $2,000.00 SPONSORED

“GOING FAST”

Hole sponsorships @ $300.00/hole

Hole # ____ (Insert Hole # & note any preferred event)

Dinner @ $1,500.00 Wine at Dinner @ $1,000.00 SPONSORED

SPONSORED

Items for door prizes, etc. – Please list:

DINNER THEATRE Wine @ $1,000.00 (Jubilations-Westbrook Mall) Table Gifts (Chocolates) SPONSORED

Door prizes @ $120.00 each

COMPANY: TOTAL $ CONTACT: PHONE: E-MAIL: FAX: DATE:

NOTE:

QUESTIONS? Contact Darlene Rogers (Marketing Chairperson) @ 271-7073 or Email: [email protected] Check out the CAPLA website for further information and details: www.caplacanada.org

PAYMENT MUST BE RECEIVED IN FULL BY APRIL 30TH TO GUARANTEE SPONSORSHIP PREFERENCESAND TO ENSURE ENOUGH LEAD TIME TO PRINT NAMES IN THE DELEGATE SHOWGUIDE

(Include this completed form with your payment)

PLEASE MAKE CHEQUES PAYABLE TO: CAPLA @ 440 – 10816 MacLeod Trail South, Suite 359, Calgary AB T2J 5N8 ATTENTION: MARKETING COMMITTEE

NEXUSPage 6 Volume 8.4 - December, 2003

What is privacy?“…the right to be let alone -- the mostcomprehensive of rights and the right most valuedby civilized men.”

U.S. Supreme Court Justice Louis Brandeis,1928

Why Privacy? History lesson: • Information technology we have the

technology: what are the rules?• World-wide action on privacy

• OECD Guidelines• CSA Code• EU Directive• US legislative “patchwork” – safe harbours• Federal Personal Information Protection and

Electronic Documents Act • Quebec Act/Alberta and B.C. legislation

Why Privacy?• It’s the law.• International transactions.• Employee trust and morale.• Accountability.• Reputation/brand.• Profitability: RBC Financial estimates privacy

drives 6.9% of customer demand.• Risk management.

Why privacy? Privacy spills & accidents:• BMO: 2 branch computers with sensitive

customer info were offered for sale on-line.They contained credit-card, insuranceinformation, RSP’s, GIC’s for hundreds ofcustomers. Third party working for bank failedto properly wipe the hard drives. Media had afield day and the BMO claimed “human error”.

• Eli Lilly sends a mass e-mail in July to users ofits antidepressant Prozac but neglects to use the"bcc" header, further depressing its customersby disclosing their online identities to oneanother.

Fair Information PracticesBe accountableIdentifying purposes for collecting PIObtain consentLimit collectionLimiting use, disclosure and retentionBe accurateUse appropriate safeguardsBe open about info mgmt practicesGive individual accessChallenge compliance

Personal Information Protection Act - PIPA• Personal Information Protection Act given Royal

Assent, Dec. 4, 2003• Proclamation date was January 1, 2004

Personal Information Protection Act:• Governs collection, use & disclosure of personal

information by organizations in a matter thatrecognizes both

• Rights of individuals, and• Needs of organizations to collect, use &

disclose personal information for reasonablepurposes

PIPA provides a right of access to one’s ownpersonal information

Information and Privacy Commissioner• Same Commissioner for the FOIP Act and the

Health Information Act• The Commissioner can:

• refer an individual another grievance,complaint or review process before dealingwith the complaint

• authorize mediation to settle a complaint• conduct an inquiry• issue binding orders• authorize an organization to disregard

requests

NEW PRIVACY RULESFOR ALBERTA

NEXUS Volume 8.3 - October, 2003 Page 7

PIPA - application• The Act applies to “organizations”:

Corporations, unincorporated associations,trade unions (Labour Relations Code),partnerships (Partnerships Act), individualsacting in a commercial capacity, any personacting on behalf of an organization.

• BUT NOT, an individual acting in a non-commercial activity.

PIPA – “personal information”“personal information” means information aboutan identifiable individual

PIPA – application - section 4Some personal information is excluded, e.g.:• Personal or domestic purposes of an individual;• Artistic, literary or journalistic purposes;• In a record that is at least 100 years old, or of

an individual dead for at least 20 years;• Personal information protected under FOIP Act • Personal information that is health information

(as defined in HIA) collected, used or disclosedfor health care purposes

PIPA – Pre-PIPA information• Grandfathering allowed• Personal information collected before January

1, 2004, is deemed to have been collected withconsent.

• It may be used and disclosed by anorganization for the purpose for which it wascollected.

• General rules in the Act regarding safeguards,access, correction, etc. still apply to thisinformation.

PIPA – Consent: ss. 7-10• Generally you need consent for collection, use

and disclosure of personal information• You are deemed to have consented to

collection, use and disclosure for a purposewhen you voluntarily give your information forthat purpose.

• Implied and express (opt-in and opt-out) formsof consent are allowed under the Act

• The level of sensitivity of personal informationmay determine the form of consent

PIPA – General rules• Collect, use and disclose for reasonable

purposes,• Collect, use and disclose the least amount of

information necessary for the business purpose• Give people notice of the purposes of collection:

this is important because it establishes the“baseline”. It has to be somewhat specific.

• Collect, use and disclose pursuant to other lawsand regulations

Collect, use or disclose information without consentin some cases, e.g.:• When clearly in interests of individual• When another act or reg authorizes it• To or from a public body if authorized• For an investigation or legal proceeding• If personal information is publicly available• To determine individual’s suitability for an

honour, award or benefit• To create a credit report• To collect a debt or repay monies owed• For archival or research purposes

And furthermore….• There are additional circumstances when

personal information may be disclosed withoutconsent:

• To comply with a subpoena or court order• If necessary to respond to an emergency• To contact next of kin• To a surviving spouse or related of a deceased

individual, if reasonable;• To protect against fraud or unfair trading

practices• Personal information is needed in

acquisition/sale of a business• If the disclosure meets the requirements for

archival purposes or research and it is notpossible to obtain consent

PIPA – Access to personal info: s.24• Give people access to their personal information

with specific exceptions:

• If Information would reveal the p.i. of anotherindividual

• If information reveals the identity of an


individual who has provided an opinion inconfidence

• If giving access could threaten the life orsecurity of someone

• Legal privilege• Proprietary information• Investigation or legal proceeding• If giving access may result in that type of

information no longer being provided• If collected by a mediator or arbitrator

PIPA - Employee info• Employee information s.1(d)• “Employee” includes an individual employed by

the organization who performs a service for anorganization, including:

• Apprentice• Volunteer• Participant• Student• Under contract or agency relationship

May collect, use or disclose personal employeeinformation without consent in some cases, e.g. • If individual is an employee of the organization,

OR;• If it for the purpose of recruiting a potential

employee, AND;• The collection, use or disclosure is

reasonable, • Information relates only to employment; • Employee has been informed of collection

purposes

Penalties and damages s. 59,60• If convicted of an offence fines are:

• Up to $10,000 for individuals• Up to $100,000 for businesses

An individual can pursue damages for loss or injurysuffered as a result of breach of privacy.

10 steps to compliance• Obtain executive support within your organization

and appoint a privacy lead; a privacy committeecan help!

• Conduct a corporate-wide assessment of privacycompliance

• Develop an implementation plan to addresscompliance gaps

• Evaluate all info management and security policiesand practices

• Develop privacy policies and procedures –including a records retention policy

• Review & revise third party agreements• Develop and deliver privacy & security training for

employees• Establish procedures to allow access to individual’s

own information• Implement a process for handling privacy

complaints• Ensure all information & privacy policies meet

ongoing objective of privacy compliance (e.g.annual audits)

PIPA/PIPEDA • Both based on fair info practices.• “Substantially similar”, but not necessarily the

same.• There will be issues and conflicts and we will have

to work them out.• Federal and Provincial Commissioners are working

to harmonize practices and protocols • If an organization is compliant with PIPEDA, prima

facie, it is compliant with PIPA.

Privacy HelpResources and Guides available:Office of the Information and Privacy Commissioner780 422-6860 (Edmonton)403 297-7247 (Calgary)www.oipc.ab.ca

Information Management, Access & Privacy Branch780-644-7472www.psp.gov.ab.ca/"www.psp.gov.ab.ca

Privacy Commissioner of Canada www.privcom.gc.ca/"www.privcom.gc.ca

Thank you to Elizabeth Denham for providing this copyof her speaker’s notes from the January 19, 2004 CAPLALuncheon Meeting for publication in the NEXUS.

Elizabeth DenhamOffice of the Information andPrivacy Commissioner of Alberta, January 2004


CANADIAN SOCIETY FORUNCONVENTIONAL GAS

Our MandateThe Canadian Society for Unconventional Gas(CSUG) will support the exploration anddevelopment of Canadian unconventional gasresources and will focus its energies and resourceson all forms of unconventional gas including:

• Natural Gas from Coal, • Tight Gas Sands, • Shale Gas, and • Gas Hydrates.

Key ObjectivesCSUG's Key Objectives to achieve the society'smission are:

• To enhance awareness among members,industry, and the public of unconventional gasissues by fostering education and training.

• To provide a conduit for communicating,exchanging and profiling technical expertise andresources.

• To facilitate interaction between unconventionalgas stakeholders.

• To advocate for the responsible exploration,development and production of unconventionalgas resources.

• To work independently or in co-operation withother organizations (e.g. CAPP) to develop and/orsupport the regulatory, fiscal and economicenvironments conducive to establishing ourunconventional gas resources as a majorcontributor to the supply of Canadian naturalgas.

To achieve these objectives CSUG needs to:

• Attract a diverse membership that have a seriousinterest in pursuing responsible unconventionalgas exploration and development

• E&P Companies

• Service Companies • Consultants • Government Agencies • Other Stakeholders

Our HistoryThe Canadian Coalbed Methane Forum was anassociation of corporations and individualsinterested in natural gas from coal resources inCanada. The forum has been active for over ten yearsand their main achievement has been sponsoring theAnnual Coalbed Methane Conference/Natural GasFrom Coal Conference - held in Calgary now for thepast four years running.

Recently the oil and gas industry has shownincreased activity and interest around natural gasfrom coal resource development and itstechnologies. This made it critical for the forum tobecome a more formal entity.

Annual Natural Gas From Coal ConferenceNovember 17-19, 2004Imperial Ballroom, Hyatt Regency700 Centre Street SE, Calgary T2G 5P6

Linda D’AngeloColt Engineering

Thank you to Linda D’Angelo of Colt Engineering forproviding this overview of another Associationrelating to Oil and Gas. If you are involved with orknow of other Associations that we have notpreviously provided information on, please contactJulia Haynes, Editor and she will follow-up to see ifthe particular Association would like to provide aprofile for publication.

ASSOCIATIONPROFILE


When dealing with freehold mines and minerals inAlberta, it is a common practice to request that LandTitles issue a mineral certificate before registering acaveat to protect a lease, option or other interest in land.The reasons for obtaining a mineral certificate can varywidely, but it can be a dangerous practice to do so. Theeffect of a mineral certificate, and the potentialconsequences of ordering a certificate, often aremisunderstood. An appreciation of the risks andrewards associated with mineral certificates is essentialin administration of freehold land.

Pursuant to subsection 179(2) of the Land Titles Act(Alberta) (the "Act"), a party to a disposition of mines andminerals may request that the Registrar issue a mineralcertificate. "Disposition" includes a sale, lease,assignment, agreement or other instrument executed onor after March 29, 1949, by which the person whopurports to be the registered owner of an interest inmines and minerals disposes of all or any part of thatinterest. Pursuant to subsection 179(3) of the Act, uponapplication for a certificate the Registrar is required tosearch the Land Titles register in order to ascertain theownership of the mines and minerals in question and, ifthe Registrar is satisfied that the purported ownership iscorrect, a certificate is issued. The search of the registeris essentially a historical title review of the lands byLand Titles staff, involving an evaluation of every transferand title affecting the lands from the time of the originalgrant to the present day.

The Registrar is required to issue a mineral certificateprior to registering a transfer of mines and minerals.However, a mineral certificate is not required prior toregistration of a caveat. Many people are not aware ofthe fact that a certificate is optional for caveats, anderroneously believe that they must request a certificateif they wish to file a caveat. The danger in requesting acertificate is that it can alert Land Titles to any potentialtitle problems. In conducting its review of the historicaltitle chain, Land Titles may identify an error or potentialerror which could have the effect of undermining theregistered owner's title to the lands. If this occurs, aRegistrar's caveat may be filed against the lands in issue,which effectively prevents further dealing with the landsuntil the title issue is resolved (a process which usuallyinvolves a court application by an interested party asLand Titles will not initiate proceedings). As a result, the

simple task of filing a caveat to protect a new lease oroption can jeopardize the interest being obtained.

Mineral certificates often are ordered as a matter ofcourse when a lease or option is granted. This can occurbecause it is erroneously believed that certificates arenecessary. In other cases, land agents requestcertificates because they believe that their clients expectto see mineral certificates as part of the package ofdocuments routinely provided to them, oradministrators follow an internal company policy thatincludes mineral certificates on a checklist of items to beconsidered when obtaining new leases or options.

While access to the Assurance Fund is available only ifa mineral certificate has been issued, certain limits areplaced on the amount of compensation available.Upon making a successful claim against the Registrar inrespect of an error involving mines and minerals,subsection 179(1) of the Act stipulates that recoveryfrom the Fund will be restricted to (i) the cost of thelease; (ii) development costs; and (iii) a limit of $2,500per hectare for the loss of the mines and minerals. As aresult, the compensation received may be far less thanthe value of the lost mines and minerals if the lands inquestion contain a significant pool or pools. Ratherthan relying upon this potentially inadequatecompensation, many companies have a historical titlereview conducted by their counsel in order to confirmtitle to the lands.

Misconceptions about mineral certificates can haveserious consequences. Where an expectation has beencreated that certificates are required, parties should beeducated as to when and why mineral certificates arebeneficial. While the $10 charge for issuance of amineral certificate does not seem like very much, in anextensive leasing program, or even one section of landwhere there are a large number of titles due to fractionalacreage or undivided interests, the cost of mineralcertificates can escalate quickly. In light of the potentialrisks, limitations on recovery and the arguablyunnecessary expense, it is worth re-considering whethera mineral certificate is desirable when obtaining leasesor options.

Annette M. Messer and Craig D. JohnstoneThackray Burgess, Barristers & Solicitors

THE TRUTH ABOUT MINERALCERTIFICATES


REQUIEM TOROFR RIGHTS

Calcrude Oils Ltd. v. Langevin Resources 2003CarswellAlta 1816 (Alta. Q.B.) (December 12,2003)

This is a ROFR fight within the ring of the 1974CAPL Operating Procedure and involving a series oftransactions. For reader ease of reference, thepertinent transaction/ROFR chronology is asfollows:

There was either ROFR compliance or exemptionsapplicable to all transactions except for the sale byEnerplus of a portion of its interests to Lochwest in1993. Enerplus held the Lochwest beneficialinterest in trust. Through ROFR exempt transactionsMillennium acquired the Lochwest interests in 1998and in 1999 provided all working interest owners anopportunity to acquire its working interest in and tothe subject lands (the "Millennium Offer"). This offerwas not accepted.

As to the Enerplus to Lochwest transaction and asnoted by Power J. in his reasons:

In January 1999, Calcrude and Oleum sentletters to Enerplus inquiring as to howEnervest had acquired a 5.5% interest in theLands. Enerplus' January 25, 1999 response toCalcrude's inquiry was that Enerplus had a"silent partner" when it acquired the Lands

and that:

Enerplus is of the opinion that as long as aparty is silent and not recognized in anagreement their interest can be held withoutattracting a right of first refusal. The nature ofthese two parties' relationship has no impacton the ability of one to hold the other intrust. In our opinion, if at any time this partyrequests to be recognized by the other jointinterest owners, a right of first refusal wouldnecessarily be served.

Power J. disagreed noting that:

The Defendants have taken the position thatthere is no obligation to provide a ROFR Noticepursuant to the Farmout Agreement as long assome other party (not necessarily the vendor)holds the interest in trust following thedisposition. This is contrary to the unequivocalwords of the CAPL clause 2401 that a ROFRNotice must be provided upon any intention tosell an interest. In GATX Corp. v. HawkerSiddeley Canada Inc. 1996 O.J. No. 1462(supra) at p. 17, para. 71 it states as follows:

It is well established that the grantor of aright of first refusal must act reasonably andin good faith in relation to that right, andmust not act in a fashion designed toeviscerate the very right which has beengiven. This is an illustration of theapplication of the good faith doctrine ofcontractual performance, which in my viewis part of the law of Ontario. The law in thisrespect is nicely summarized in thefollowing passage from the judgment ofSaunders J. in Landymore v. Hardy (1991),21 R.P.R. (2d) 174 (N.S.S.C.T.D.) at pp. 193-194:

...the grantor of a Right of First Refusal is notentitled to frustrate by conveying the


property in such a way as to avoid having togive the right in first place. …

The Defendants have, by design, bought andsold the 5.5% interest in the Lands in violationof the Farmout Agreement. There is no authoritythat they are to be relieved from theircontractual obligations simply because theyarrange for Enerplus to hold the interest in trust.In fact, the authority is quite to the contrary.

So there was a breach of a contractual obligationentitling the plaintiffs to advance a claim fordamages or specific performance.

First to damages. On the evidence, Power J.concluded:

The Court concludes that Enerplus is the onlyparty that failed to provide ROFR Notices whenselling to Lochwest, however there is noevidence to establish that the Plaintiffs wouldhave exercised their ROFR rights had they beengranted to them. The Plaintiffs have establishedthat Enerplus was involved in a technical breachof their CAPL obligations, however in that nodamages were established, a nominal damageaward of $1.00 is appropriate. ( e m p h a s i smine)

To my mind this is the critical aspect of thisdecision. It would appear that the evidence that"[a]t the time, none of the Plaintiffs were interested,at that price, or anywhere near that price" wasderived from the fact that none of the plaintiffsexercised on the $5.045 Million ROFR issued inconnection with the Langevin to Enerplustransaction. Given this non-exercise, the plaintiffs'contention that had they received a ROFR notice inconnection with the Enerplus to Lochwesttransaction (10% of Enerplus' interest) at$504,500.00 (i.e., 10% of $5.045 Million) theywould have exercised was determined by the Courtnot to be reasonable. Hmmm …

Apparently because Millennium had contractuallyaccepted "… any risk or liability associated with thepotential right of first refusal lawsuit", Power J. wenton to deal with any potential damage claim as

against Millennium finding that:

Michaels v. Red Deer College, [1976] 2 S.C.R.324. The case cites at p.4 (Q.L.), with approval,the decision of Lord Haldane in BritishWestinghouse Electric and Manufacturing Co.,Ltd. v. Underground Electric Railways Co. ofLondon Ltd., [1912] A.C. 673 at 689 as follows:

The fundamental basis is thus compensationfor pecuniary loss naturally flowing from thebreach; but this principle is qualified by asecond, which imposes on a plaintiff theduty of taking all reasonable steps to mitigatethe loss consequent on the breach, anddebars him from claiming any part of thedamage which is due to his neglect to takesuch steps. (emphasis added)

It is beyond controversy that the Plaintiffs hadthe opportunity to mitigate their damages uponreceipt of the Millennium Offer. The Plaintiffsmade a conscious decision, with the benefit oflegal advice, to elect not to mitigate theirdamages and the Plaintiffs' decision in thisregard must be viewed in the context of the factsand circumstances surrounding the Plaintiffs'interest in the 14/26 well. Put simply, thePlaintiffs' failure to accept the Millennium Offerdebars any claim asserted against Millennium.

On the claim for specific performance out of thehands of Millennium, Power J. found the followingdifficulty with the plaintiffs' position:

The Plaintiffs could have protected their interestin the Lands through the registration of acaveat(s). The failure on the part of the Plaintiffsto register such as caveat(s) is also fatal to thePlaintiffs' claim.

The nature of the interest held by the Plaintiffs inthe lands is a leasehold interest. That is,PanCanadian Petroleum Limited, as owner of themineral fee simple estate, has granted a lease ofa portion of the Lands to the Plaintiffs.Additionally, the Plaintiffs have an equitableinterest in the lands because they possess a Rightof First Refusal to acquire further interests in the


lands arising from the Farmout Agreement.Section 63 of the Law of Property Act, R.S.A.2000, c.L-7, reads:

Equitable interests in land

63(1) The following are equitable interests inland:

(a) a right of first refusal to acquire an interestin land;

(b) an assignment of rents payable pursuantto a lease of land.

(2) After registration of a caveat under theLand Titles Act protecting an equitableinterest referred to in subsection (1), theequitable interest takes priority inaccordance with section 14 of the Land TitlesAct and runs with the land.

The equitable interest (being the right of first refusal,hereinafter "ROFR") is capable of protectionthrough registration under the Land Titles Act, R.S.A.2000, c.L-4 ("LTA"). Section 130 of the Land TitlesAct reads, in part:

Filing of caveat

130 A person claiming to be interested inland for which a certificate of title has beenissued or in a mortgage or encumbrancerelating to that land

(c) by virtue of

(i) having acquired through the owner or anyprior owner of that land, mortgage orencumbrance, otherwise than under clause(a) or (b), an interest in that land, mortgageor encumbrance after the first certificate oftitle was issued for that land,

may cause to be filed with the Registrar acaveat on the person's behalf in theprescribed form against the registration ofany person as transferee or owner of, or anyinstrument affecting, the estate or interest,

unless the certificate of title is expressed tobe subject to the claim of the caveator.

The wording of section 130 is permissive, thescheme of the Land Titles Act is that in order for aninterest in Land to be recognized, it must beregistered. This concept is embodied in section 53 ofthe Land Titles Act; the operative words read asfollows:

NECESSITY OF REGISTRATION:

53 No instrument is effectual to pass anyestate or interest in ... Land ... unless theinstrument is executed in accordance withthis Act and is registered under this Act.

Had the Plaintiffs protected their interest inthe Lands through the registration of acaveat, then the subsequently acquiredinterests would have been subject to thePlaintiffs' ROFR.

The failure of the Plaintiffs to register theirinterest in the Lands necessarily means (inthe absence of fraud) that Millenniumacquired its interest in the Lands free fromthe Plaintiffs unregistered ROFR interests.Section 203 of the LTA, the so called"indefeasibility" provision of the LTA, is ahallmark of Torrens legislation.

By virtue of section 203, Millenniumacquired its interest free of the Plaintiffs'interest.

In the end and as a result, a "technical breach" of theROFR provision was found and "an appropriatedamage award in each case should be in the amountof $1.00 to each Plaintiff".

Michael A. ThackrayThackray Burgess(403) 531-4710 (Phone)(403) 531-4720 (Fax)

Previously distributed through the Thackray BurgessAlert and Update service. Thank you to MichaelThackray for providing permission to reprint.


NEW: MODEL PRODUCTIONALLOCATION UNIT AGREEMENTS

The Alberta Department of Energy now has two Production Allocation Unit Agreements. One is for verticalwells and one is for horizontal wells or multiple leg wells.

Model agreements are available on the Department's website at:http://www.energy.gov.ab.ca/com/Tenure/Crown+Equity/PAUA-Vertical.htmhttp://www.energy.gov.ab.ca/com/Tenure/Crown+Equity/PAUA-Horizontal.htm

Remember: Submit the appropriate agreement to the Crown prior to placing your well on production.

For more information explaining the Crown's involvement in units visit:http://www.energy.gov.ab.ca/com/Tenure/Crown+Equity/CrownInvolvementInUnits.htm

Sharon WongAlberta Energy

JOB BANK

Did you know that Job Bank advertisements are confidentialand only for use by CAPLA Members? Did you know if a CAPLAMember provides Job Bank advertisements to a non-member

the member's logon privileges can be revoked? Did you knowthis applies to any Member Only information?

Please respect CAPLA's membership policies by not providing memberinformation, of any kind, to non-members. These policies are in place as a benefit

to you - the person who has applied and paid for the privilege. If you areprompted to provide your logon identification to gain information, it's animmediate flag to you that the information is privileged and for CAPLA

Members only.

Thank you for your cooperation.

Kelly EricksonMember Services Director


CAPLA 10TH ANNIVERSARY GALA – THANK YOU

The CAPLA 10th Anniversary Gala held at the Roundup Convention Centre on Friday, February 20th was a great success! We would like to thank our many sponsors and member companies for their tremendous support. We would also like to thank the volunteers for their enthusiastic efforts in insuring the success of the evening.

The profits from the evening will be directed to new course development under the soon to be released CAPLA 5 Year Education Plan.

Gale Breen & Verna Moodie CAPLA Gala Committee

CAPLA 10th Anniversary Gala Sponsors

Platinum Level EnerLink

Gold Level EnCana Corporation EXPLORER Software Solutions Ltd. TransCanada Pipelines Ltd.

Silver Level Addison Energy Inc. Anadarko Canada Corporation Blake, Cassels & Graydon LLP CGI Group Inc. Chevron Canada Resources Crape Geomatics Corporation El Paso Oil & Gas Canada, Inc. EOG Resources Canada Inc. Hunt Oil of Canada, Inc. Husky Energy In House Software Limited LandSolutions Inc. McElhanney Land Surveys Ltd. Northcan Surveys Ltd. Petro-Canada Oil and Gas Petro J. Land Petrovera Resources Limited

Bronze Level

All West Surveys Ltd. Amar Surveys Ltd. Antelope Land Services Ltd. Bonterra Restaurant Burlington Resources Canada Ltd. Calpine Canada Can-Am Geomatics Challenger Geomatics Ltd. Dominion Exploration Canada Ltd. Financial Benefits Find Energy Ltd. First on Colour Geotrek Land Survey Ltd.Heritage Surface Solutions & Heritage Freehold SpecialistsHeritage Park Kingsnorth Consulting Ltd. Lynn Sampsel Miller Thompson LLP Canadian Rocky Mountain Resorts SAITScott Land & Lease Ltd. Traverse Land Group Ltd.

CAPLA 10th Anniversary Gala Volunteers

Pearl Ao Deanna Barrell Jeff Bryksa Anona Dowling Kelly Erickson Marlene Ferguson

Cindy Ganong Ty Hansen Gloria Hoyos Yvonne Lang Jane McKinnon Karen Morrow

Frank Morrow Barb Neilsen Kathy Ward Mary Ward


GALA NIGHTWell ladies - take a bow! What a wonderful event. Thank you for allyour hard work. A classy act - spiced up with lots of fun and dancing(not to mention great food).Definitely an event to be proud of.Penny & CraigCAPLA Office

I wanted to thank you both for such a great time on Friday night. Iwould have to say it was a first class affair and something all of thevolunteers should be very proud of. Its not that often Paul and I getout to shake a leg and I was glad it was part of an evening that CAPLAput together.Cindy R. Rutherford, P. LandSenior LandmanProgress Energy Ltd.

Several of the Administrators from Anadarko Canadaattended your 10th Anniversary event on Fridaynight and we want to express our appreciation andcongratulations for an excellent function. Theorganization of the sign-in, cocktail hour, speech,dinner, entertainment, casino and dance wasimpeccable. A wonderful time was had by all.Thank you for all your efforts and keep up the goodwork.

Sent on behalf of Anadarko Canada CorporationMineral and Surface Land Administrators Kathy Geddes Mineral Land Administrator

Alberta Government Presentation:Rhonda Wehrhahn & Candace Bakay

Mary Melton & Elvis

Original Board Members:Cindy Rutherford, Linda Bernier, Shirley Rattray, Avis Roemer & Spouses


CORPORATE GROUP STRUCTURES – WHY ARETHEY SO POPULAR?

IntroductionIn the modern business world, it is not unusual to findcorporate groups in which different parts of the group’sbusiness are carried on through various subsidiarycorporations whose shares are held by one or moreholding corporations. Group structures can alsoinvolve limited partnerships where the general partnerof the limited partnership is a corporation which is amember of the group. Although corporate groups areprevalent amongst large national and multinationalorganisations with varying degrees of size andcomplexity, they are also becoming increasinglypopular among smaller organisations. This is becauseof the advantages of conducting business through acorporate group, outlined below.

Limited liability – a bonus in the litigious businessworldAs a general rule, each corporation in a group has aseparate legal personality from all other corporations orentities in the group. Consequently, the shareholders ofeach corporation enjoy limited liability and nocorporation in a group (or its shareholders) is liable forthe debts of another member of the group unless it hasagreed to be liable. In the case of limited partnerships,the limited partner’s liability is limited to its initialcontribution to the business. Although the generalpartner of the limited partnership has unlimitedliability, its shareholders can nonetheless enjoy limitedliability if it is a corporation.

A penny saved…The flexibility of group structures enables investors totake advantage of tax planning. Depending on thestructure of the group, members may be able to enjoysmall business deductions (if available), enjoy andcarry forward tax losses, take advantage of taxdeductions of the other members of the group andotherwise plan and organise their affairs in a taxefficient manner.

Survival of the fittestBecause each member in a group has a separate legalpersonality, the financial weakness of one member maynot necessarily lead to the downfall of the entire group.If the parent company is financially stable, it can

liquidate or dissolve the weak subsidiary while leavingthe remaining stronger subsidiaries and the groupintact.

It’s all in a nameWhen one of the members of a corporate group has astrong brand name or trade name, the other membersof the group can enter into licensing agreements withthe owner of the name to use the name and takeadvantage of the customer loyalty attached to thatname. Similarly, if the parent or another of the groupmembers takes over another entity which has a namewith well established brand loyalty, it may decide toretain the acquired entity as a new member of thegroup instead of amalgamating with the acquired entityand losing the name.

Borrowing from friendsIn large groups, the financing costs of group memberscan be reduced because of the possibility of inter-company borrowing at rates lower than those offeredby lending institutions. Smaller members of the groupmay also gain access to funds from lending institutionsprovided their borrowings are supported by guaranteesfrom the stronger members of the group in situationswhere the smaller members would otherwise havelimited or no access to borrowed funds.

Keeping it in the familyAssets, staff and expertise can be passed aroundbetween members of a group with relative ease. Aslong as corporate groups do not breach competitionlaws, they can also diversify within an industry and takeadvantage of the benefits of vertical or horizontalintegration.

ConclusionAlthough the establishment of a corporate groupstructure may appear to result in complexity andincreasing amounts of paperwork, there arenonetheless various advantages to conducting businessthrough a corporate group. In particular, the possibilityof conducting business in a tax efficient manner whileenjoying limited liability remain the key incentives forthe establishment of a corporate group structure, forboth large and small businesses.

Thank you to Rujuta N. Patel of Macleod Dixon LLP forproviding the answer to our question.

YOU WANTED TO KNOW?Are there advantages to a company operating under variouscorporate structures?


CAPLA and CAPL’s 6TH ANNUAL

DUAL NETWORKING NIGHT AND PRE-STAMPEDE PARTY

ThursdayJune 17, 2004 At COWBOYS

4:00 pm to 9:00 pm

TICKETS ARE $15.00 and includes:

• Two Drink Tickets • AAA Alberta Beef on a Bun, Chuckwagon Chili,

Caesar Salad, Corn on the Cob, Potato Salad

Contact Fawn Lees at 23 1-9933

For Tickets and Further Information

* Must have a ticket to get into the door, no exceptions.


EDUCATION COMMITTEE UPDATEThis has been a very busy time for the Education Committee. The majority of our courses are running at fullcapacity and in January we moved into our new training facility at the Rotary House on the Calgary Stampedegrounds.

We are currently putting the finishing touches on the CAPLA 5 Year Education Plan which will be presented tothe CAPLA Board of Directors for approval at their spring Planning Session on April 24th.

A new CAPLA Education task force has been established to work on developing various training courses,presentations and tools relating to conflict resolution skill development. This task force reports to the CAPLAEducation Director and is co-chaired by Teresa Leavitt and Suzanne Akins.

Education committee member Deborah Godfrey is working on developing a course that will assist people whowant to gain more knowledge in the area of law as it relates to the CAPLA Certification exams.

In closing we would like to thank the CAPLA Education Committee volunteers for their dedication, commitmentand efforts. It has been a pleasure working with you. We wish the Committee and the incoming Director,Margarita Cowan and incoming Chair, Yvette Miller continued success.

Gale Breen, CAPLA Education DirectorAudrey Atkins, CAPLA Education Chair

PUBLIC RELATIONS ANDPROMOTION COMMITTEE UPDATEThe Public Relations and Promotion Committee has had some changes the past couple of months. Firstly,welcome Janice Hart and Jo-Ann Schwartzenberger to our committee. We would like to thank Jennifer Martinfor her hard work on the committee and wish her all the best on her new committee responsibilities - C2C RentalDispute Task Force. Jeff Bryksa has assumed the position of Chair of Public Relations and Promotion and wewould like to thank Verna Moodie for chairing and forming the committee in 2002. Verna will remain on thecommittee as a member.

Highlights from our committee since December 2003 are:• Attended the Mount Royal College Career Fair held on Feb 25, 2004 with the CAPLA Booth to inform students

interested in taking Land Administration as a career path.

• Finalized a sponsorship package that contains a sponsor listing with contact information, examples ofsponsorship request letters, example of a sponsorship opportunity and benefits brochure and a sponsorshipactivity checklist for other committees to use. This package of materials will be part of the Volunteer Handbook.

• Began design of a brochure to introduce CAPLA to potential members or interested parties.

• Updated the CAPLA Booth that included new panels, new CAPLA logo banner and photo images of operationswithin the upstream oil and gas industry.

• Attended the Olds College Land Agent & Land Administration Reception held on March 18, 2004 with theCAPLA Booth at the Palliser Hotel.

Jeff BryksaCAPLA – Public Relations and Promotion ChairPetro-Canada Oil & Gas


YOU MAY NOT BE AWARE BUTYOU MAY QUALIFY FOR :

•LOW PREMIUMS•SUPERIOR COVERAGE

•EXCEPTIONAL SERVICE•FLEXIBLE PAYMENT PLAN

Authorized Broker for CAPLA MembersContact: Dianna Suttie

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

Group Insurance ProgramDesigned for

GROUP BENEFITS REMINDEREVERYONE BENEFITS!

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

including:

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

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

Account

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

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

quotations. Dann is a broker and can obtainquotes for the entire insurance market.

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

CAPLA MEMBERS

AUTO - HOME - COMMERCIALVACATION AND REVENUE PROPERTIES

CAPLA SPECIAL MEETING & ELECTION NOTICE

Please be notified that a portion of the regularly scheduled September Dinner Meetingon September 28th 2004 will be called as a Special Meeting to vote on the election ofIndustry Relations Director.

Pursuant to Articles VII and XI of the By-laws of the Canadian Association of PetroleumLand Administration, the position of Industry Relations Director is available fornomination. Nominations may be made in writing by the submission of a CAPLANomination form, signed by two (2) Members in good standing of the Association, andalso signed by the nominee to signify acceptance. Such nominations shall be deliveredto the Secretary of CAPLA and Chairperson of the Nominating Committee by June 30th2004. Each Nomination Form needs to be accompanied by a completed CAPLANomination Biography Form and these forms can be obtained from the CAPLA Office.All Nominations will be published on CAPLA’s Website.

Voting for this position will take place on-line beginning September 24th 2004 and atthe September 28th 2004 Dinner Meeting from 4:30 to 5:30 pm.


MANAGEMENT OF OFFSHOREOIL & GAS

April 28, 2004 8:30 a.m. to 4:30 p.m.Valuable seminar for industry staff who require aworking knowledge of the Atlantic Accord Acts andEast Coast regulatory regime.Fee: CAPL Member $350.00 plus GST

Non-Member $400.00 plus GST

NEGOTIATING: ESSENTIAL SKILLFOR LANDMEN

May 5 & 6, 2004 8:30 a.m. to 4:30 p.m.If you’re on the front line conducting negotiations, orif you’re one of the “support team”, you mustunderstand the process and how you can contribute. Fee: CAPL Member $450.00 plus GST


EFFECTIVE PUBLIC INVOLVEMENTMay 11, 2004 8:30 a.m. to 4:30 p.m.Interactive seminar will help all industry members,particularly land administrators and communityrelations specialists who deal with landowners andother stakeholders regularly.Fee: CAPL Member $350.00 plus GST


A&D: THE PAPER CHASEMay 13, 2004 8:30 a.m. to 4:30 p.m.This seminar is most beneficial to those responsiblefor the preparation necessary to evaluate and closean asset acquisition, divestment or trade.Fee: CAPL Member $350.00 plus GST


BUSINESS STRATEGIES:OIL & GAS INDUSTRY

May 19 & 20, 2004 8:30 a.m. to 4:30 p.m.Will help you contribute effectively to the decision-making process for investment opportunities inexploration, development and acquisitions.Fee: CAPL Member $450.00 plus GST

Non-member $550.00 plus GST

NATURAL GAS FROM COALMay 25, 2004 8:30 a.m. to 4:30 p.m.An overview of the nature of coalbed methane,history & development of the resource & theopportunities and challenges it offers will becovered.Fee: CAPL Member $350.00 plus GST


TITLE REVIEW & ACQUISITIONSMay 27, 2004 8:30 a.m. to 4:30 p.m.Anyone responsible for working with outside counselwhen reviewing title or conducting due diligencereviews and rectifying title deficiencies whenacquiring assets will benefit.Fee: CAPL Member $350.00 plus GST


INTRODUCTION TO SURFACE RIGHTSJune 8 & 9, 2004 8:30 a.m. to 4:30 p.m.This seminar is directed toward surface landadministrators with less than three years of surfaceland administration experience.Fee: CAPL Member $450.00 plus GST


ROYALTY CALCULATIONS:A CASE STUDY

June 15, 2004 8:30 a.m. to 12:00 p.m.The seminar will focus on a case study approach toexamining the complexities and implications ofvarious royalty clauses and calculations.Fee: CAPL Member $175.00 plus GST


ADVANCED SURFACE RIGHTSJune 16 & 17, 2004 8:30 a.m. to 4:30 p.m.This seminar will provide a complete overview ofsurface rights and includes a discussion periodamong the registrants.Fee: CAPL Member $450.00 plus GST


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

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


Ashley Affonso

Chad Anderson

Nicole Ashman

Mary Ann Bailey

Cindy Bakala

Lynn Bangs

Crystal Basler

Darla Beaudry

Vicky Becker

Tyler Belgrave

Sarah Bigelow

Wendy Bjorkman

Ellen Blashyn

Donalda Blondeau

Diane Boisclair

Tasha Bolokoski

Anita Bozak

Rae Brietzke

Chris Brown

Linda Brown

Chris Bushell

Susan Butterworth

Kellie Carlson

Mandi Caron

David Carter

Sheila Chief

Deah Clark

Pearl Crane

Drew Dalik

Mariedke Dalman

Julie Delfino

Ederlina Domingo

Anita Donovan

Anona Dowling

Deborah Dowson

Brian Duggan

Susan Dunn

Margaret Dunn

Christine Eakin

Dawn Edwards

Holly Eefting

Dennis Eisner

Janice Elago

Karen Elhard

Connie Emond

Lorna Engleson

Nilofer Fernandes

Kelly Figueiredo

Lila Firingstoney

Janice Fiske

Mark Flaherty

Wendy Fleming

Freddy Fong

Tannis Forrest

Kelly Freed

Laura French

Karen Frost

Harry Fuss

Calynda Gabel

Carol Gaskin

Katerina Gilbert

Jolanda Goertzen

Maria Goodstriker

Corey Graham

Mary Grandish

Bart Grant

Joan Grozell

Valerie Guzman

Lori Hall

Val Hansen

Lisa Heinbigner

Angelica Hernandez

Tara Hingley

Joyce Hoff

Dorin Holland

Kim Holy Singer

Carrie Howell

Carly Huculak

Andrea Huitema

Geraldine Hutchinson

Amy Jones

Cindy Kaufman

Dawn Keating

Gloria Kish

Lorraine Klatt

Shelley Knakoske

Sue Kowalchuk

Lisa Krawchuk

Anna Kwan

Nancy Labas

Chris Labute

Dana LaMarsh

Nicole LaPointe

Darryl Leason

Jaime Lee

Erin Lemieux

Allison Lerat

Colleen Lewis

Lareina Lisitza

Kim Lu

Tamara MacDonald

Patty Marr

Winona Mayhew

Priscilla McKay

Debbie McLean

Renee Merkel

Sandra Mighty

Erika Mikaelsson

Murielle Montsion

Gerri Murphy

Kelly Murphy

Terina Nixon

Duane Norgaard

Ed Nunes-Vaz

Kent O'Shea

Aceneth Ospina

Brian Paulssen

Sheena Pearson

Susan Penman

Fairlyn Rasmussen

Dennis Rodrigues

Melissa Sadal

Maria Bella Salvador

Susan Schab

Les Scory

Tracy Smith

Lee Solomon

Sarah Spence

Carol Stewart

Stacie Swain

Kari Tansowny

Ellen Thomas

Kristin Trueman

Debra Wade

Wanda Warman

Elizabeth Waters

Pam Weber

Nicole Weiss

Jodi Whitworth

David Wilding

Bonna Wright

Svetlana Yakovchenko

WELCOME TO OUR NEWCAPLA MEMBERS


A NOTE FROM THE BOARDAs many may already be aware our past-president, Candace Bakay, was involved in a fairly

serious auto accident on March 13th which has resulted in a lengthy hospital stay andrecuperation period for her. Many have been to visit and have sent their best wishes for a

speedy recovery. She is doing much better and we are ever grateful for this.

The Board of Directors at CAPLA would like to thank Candace for the past two years ofleadership and contributions within the association. We hope that she will be back with us

soon as her knowledge and fortitude are valued assets.

Audrey AtkinsCAPLA President

Message to CAPLA Associate Members:

If you originally joined CAPLA as an "Associate Member" based upon CAPLA's By-law Article II, Clause 2.0,which states:

An Associate Membership in good standing shall be a person who:• Is no longer qualified to maintain an active membership; or• Is employed by a post-secondary educational institution, governmental agency or other non-commercial

group relating to land administration or is enrolled in a post-secondary educational program relating toland administration;

• Has been qualified for membership by the Membership Committee;• Has paid in full the annual fees for the Association;• Is not under suspension nor been expelled from the Association;• An Associate Member shall be prohibited from holding office and from voting at meetings of the

Association.

If your status has changed from when you originally applied and you now meet the qualifications of "ActiveMember" based upon CAPLA's By-law Article II, Clause 2.0, which states:

An Active Member in good standing shall be a person who:• Is employed in the petroleum industry in activities associated with land administration matters;• Has qualified for membership by the Membership Committee;• Has paid in full the annual fees for the Association;• Is not under suspension nor been expelled from the Association.

You can have your status changed to "Active Member" by putting your request in writing to the CAPLA Office([email protected]). Your letter/email must outline how you now qualify to have your status changed(i.e. I am now employed in a position in the petroleum industry that relates to Land Administration). You willneed to provide your discipline, title, employer's name and whether you are permanently employed, or in aconsulting position.

Kelly EricksonMember Services Director


Website and Email

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

[email protected]

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

NEW CAPLA BOARD MEMBERS

Audrey Atkins - President

Sherry Sturko – Treasurer

Margarita Cowan – Education Director

Lynn Gregory – Government Relations Director

Kathy Ward – Technology Director

Jeff Bryksa - Public Relations and Promotions Chair


Did you know that you can have your Username andPassword to CAPLA's Member's Only portion of the website

emailed to you?

To use this automated service, logon to CAPLA's website www.caplacanada.organd select "Member Area" from the home page. When the logon fields come up,

beside them is a question “Forgot Password." Click on this and you will beprompted for your email address. Type your email address in the field and your

Username and Password will be emailed to you. Please note, the password mustmatch what you have provided to CAPLA in order for this feature to work.

**NOTICE**

If you are in a consulting position, on leave, or a student, it isimportant that you choose “Independent” as your company name.This keeps your personal home information strictly confidential whileallowing you to choose to publish your home phone, fax, or email (ormaybe none at all – just your name) in CAPLA’s Roster. It is alsoimportant for receipt of CAPLA correspondence. By choosingindependent you will ensure that all correspondence reaches you athome. CAPLA cannot be held responsible for any misdirected mailor correspondence. It is very important that you choose this optionwhen in a consulting position, on leave from your regular position,or a student.

Thank you.


Photocopy and retain for future use

CAPLA Member ❑ Non-Member ❑

First Name: Last Name:

Corporation:

Mailing Address:

Postal Code: E-Mail:

Phone: Fax:

Course Name: Date:

Fee Enclosed: $ GST: $ Total: $

• Registration is on pre-paid basis.• Paying by Cheque: Submit completed registration form (accompanied by payment) to CAPLA. • Paying by Credit Card: VISA or MasterCard only accepted on-line at www.caplacanda.org select the

“Courses” screen.

(Payment must accompany registration to confirm your place)CAPLA’s GST 136820362

CAPLA440 - 10816 MacLeod Trail S. Suite 359

Calgary AB T2J 5N8Phone: 571-0640

CANCELLATION POLICY:CAPLA will reimburse a course fee, less a $50.00 administration fee, provided a participant withdrawsin writing (fax, email or Canada Post) 30 days prior to the date of the course. If a participant fails tocancel registration within this time, a refund will not be issued; however, a substitute may be sent inplace of the registered participant. Companies that initially register a non-member and substitute amember will not be reimbursed the balance of the fee. CAPLA will impose a $50.00 administrationcharge on all canceled registrations.

CourseRegistration


UPCOMING CAPLA COURSESCalgary / Canmore Course & Field Trip

Course Date(s) Registration DeadlineMay 14, 2004 May 1, 2004

Location & Lunch Duration & Check-In TimeBus Tour from Calgary to Canmore which includes 7:45 a.m. – 9:00 p.m.Continentail Breakfast, Lunch and Dinner. Participants meet at the Heritage Park OverflowParking - SW Corner of Heritage Drive and 14th Street

Course Fee$428.00 (400.00 + 28.00 GST) Maximum 35 participants

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

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

The course/field trip begins in Calgary, proceeds to Turner Valley, passes through the foothills and ends in Canmoreprior to returning to Calgary. En route, participants learn the basics about exploration/exploitation geology,geophysics and engineering - how oil and gas reserves are found, extracted and marketed - as well as gaininginsight into the history of the petroleum industry and the impact changing technology has had throughout theyears. From outcrop to discovery well site, from oil pool to sour gas pool, participants are taken to some of thevery spots that changed Alberta’s history. By days end, participants will understand the basics of rock and reservoirtypes, seals, traps, exploration/drilling methodologies, processing, transportation and play economics. Aside fromthe technical and economical aspects of the industry, participants will also gain a comprehensive insight into thehistorical and present day economic importance of the oil and gas industry within the economy of Alberta andCanada. Tours depart from Calgary at 8:00 am and return at 9:00 pm.

Alberta Crown: Transfer AdministrationCourse Date(s) Registration DeadlineMay 19, 2004 May 11, 2004

Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 1:00 p.m. - 4:30 p.m. (1/2 day)Lunch:NOT Included Check-in begins 1/2 hour prior to start

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

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

The first portion of this course will provide an overview of the administration of transfers and related legislation;the second portion will give an overview of e-Transfers and a demonstration of the on-line transfer process.


Reading Survey Plans WorkshopCourse Date(s) Registration DeadlineMay 26, 2004 May 17, 2004

Location & Lunch Duration & Check-In TimeAM in classroom 9:00 a.m. – 5:00 p.m.Location Announced in Course Confirmation Letter Check-in begins 1/2 hour prior to startPM touring a wellsiteLunch: Included

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

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

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

Administration of Surface Rights in AlbertaCourse Date(s) Registration DeadlineJune 2 & 3, 2004 May 25, 2004

Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. – 4:30 p.m. (2 days)Lunch: Included Check-in begins 1/2 hour prior to start

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

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

Alberta Crown: P&NG Licence and Lease AdministrationCourse Date(s) Registration DeadlineJune 16, 2004 June 8, 2004

Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 9:30 a.m. - 4:00 p.m.Lunch: Included Check-in begins 1/2 hour prior to start


What to BringParticipants are encouraged to bring their own samples and questions, which will be examined if time permits.This course utilizes case studies to highlight the application processes for Alberta Crown licencevalidations/groupings and licence and lease continuations. A brief overview of Sections 6 to 18 of the P&NGTenure Regulation will be provided to gain a better understanding of these processes. Exercises will be used toprovide hands-on experience for the successful completion of applications.

UPCOMING CAPLA COURSES cont’d



Administration of Freehold Mineral RightsCourse Date(s) Registration DeadlineSeptember 21, 2004 September 13, 2004

Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 4:30 p.mLunch: Included Check-in begins 1/2 hour prior to start


This course deals with the administration of leases granted on freehold mineral rights in Alberta. Topics willinclude documentation requirements; rental payments; continuations and terminations; poolings; unitizationsroyalties and caveats.

Administration of Indian Oil & Gas LandsCourse Date(s) Registration DeadlineOctober 19, 2004 October 8, 2004



This course covers issues related to Indian Reserve lands and provides land personnel with a broad understandingof the regulations affecting mineral and surface dispositions and an appreciation for the unique aspects ofoperating on these lands. Topics include mineral acquisition covering various disposition methods; documentissuance; rentals; royalties; continuations; drainage and poolings; surface acquisition covering applicationrequirements for seismic; surface and right-of-way agreements; document issuance; rentals; rent andcompensation reviews; environmental issues pertaining to the surface approval and reclamation process; andgeneral administration covering payment of monies; assignments; defaults and cancellations. An explanation ofTreaty Land Entitlement (TLE) and the changes resulting from TLE will also be addressed.

Rights of First Refusals - (ROFRs)Course Date(s) Registration DeadlineOctober 20, 2004 October 12, 2004



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

For the "novice", this course provides an excellent introduction to ROFRs as well as a thorough overview foradministrators who have had previous experience in this area of Land Contracts. Case studies will provide anopportunity for some hands-on experience. The topics to be addressed include the history of ROFRs; ROFRprovisions in CAPL Operating Procedures and other agreements; administration of ROFRs (i.e. complying or notcomplying with ROFR clauses); ROFRs as a part of the sale process and ROFRs in Asset Exchange transactions.



The time frame within which a ROFR must be addressed and how to calculate the interests of the parties when aROFR is exercised will also be discussed.

Know What You OwnThe ABC’s of DOIs

Course Date(s) Registration DeadlineNovember 2 & 3, 2004 October 25, 2004

Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 4:30 p.m. (2 days)Lunch: Included Check-in begins 1/2 hour prior to start


What to BringParticipants are asked to bring a calculator.

This course will outline how Division of Interests (DOIs) are affected by various agreements such as Mineral andSurface agreements; Joint Operating Agreements; Working Interest Clarification Agreements; Farmout and FarminAgreements; Poolings; Assignment and Novation/Notice of Assignments; Quit Claims; Unit Agreements; RoyaltyAgreements and Long Term Gas Purchase Contracts. Each session will provide a brief summary (15 minutesmaximum) of each type of agreement and following discussions will then relate how the agreement affects a DOIat various stages in the life of a land asset. Exercises will be used to provide participants with hands-onexperience.

Think & ThriveMental Mastery at Work

Course Date(s) Registration DeadlineNovember 17, 2004 October 15, 2004 *



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

We respond to today’s rapidly changing work environment in land administration by continually upgrading ourcomputers, software and land systems, but how about our brain software? Adapting to standardization andstreamlining processes is the major task facing us today. Recent brain research shows that you can increase yourabilities to perform breakthrough thinking, influence people and develop mental mastery in dealing with personaland professional challenges. In this seminar, you will:

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



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

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

Freehold Lessor EstatesCourse Date(s) Registration DeadlineNovember 23, 2004 November 15, 2004

Location & Lunch Duration & Check-In TimeLocation Announced in Course Confirmation Letter 8:30 a.m. - 12:00 p.m. (1/2 day)Lunch: NOT Included Check-in begins 1/2 hour prior to start

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

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

Introduction to LandCourse Date(s) Registration DeadlineNovember 24, 2004 November 16, 2004



This course is an introductory overview of the basic functions within a Land Department and includes thefollowing topics: Overview of the Oil and Gas Industry; Departmental Roles; Ownership of Land; Title Searches;Legal Descriptions; Unique Well Identifiers and Land Documentation. There also is an overview of an explorationplay, which will bring together the topics covered in a “real world” scenario.

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

CourseThird Party Surface

Agreements

CourseCalgary/Canmore Course

& Field Trip

CourseAlberta Crown

Transfer

CourseReading SurveyPlans WorkshopVictoria Day

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CourseAdministration of SurfaceRights on Alberta Day 1

@ Petroleum Club

Conference 2004@ Round Up Centre

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CourseAlberta Crown Lease &Licence Administration

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CourseAdministration of

Freehold Mineral Rights

Dinner Meeting @Calgary Petroleum Club

Speaker TBA

Labour Day

Family ZooEvent

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Course:NOA Advanced PM

CourseAdministration of SurfaceRights on Alberta Day 2

@ Petroleum Club

NEXUS Deadline forAugust Issue

Pre-Strampede Party@ Cowboys

Conference 2004@ Round Up Centre

Day 2Conference 2004Saturday Activities

NEXUS Deadline forOctober Issue