1 Nov of Petroleum Landmen. THE NEGOTIATOR. Features December 3 CAPL Operating Procedure: Potential Clause (b) Landmine. 7 Oct The CAPL Operating Procedure is the industry benchmark document for operations conducted on jointly held lands. This course will include a. Clause of the CAPL Operating Procedure took this one step further. That document added a definition of “abandonment” that included an obligation.
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The relevant commentary is essentially unchanged. However, how can a challenger give any more than its best cost estimate 1990 capl operating procedure the costs of exploration are a function of such factors as weather conditions, exploration success testing costsmechanical difficulties, the demand for equipment and inflation?
For as the commentary indicates, it is already very 1990 capl operating procedure for a joint operator to put together a challenge notice that is not a leap into the dark; the idea that there is a further condition precedent would make the challenge prkcedure little more than a dead letter. Proudly powered by WordPress. Save my name, email, and website in this browser for the next time I comment. The commentary to the CAPL is instructive:.
The Decision Justice Colleen Kenny denied the application. Discussion The 1990 capl operating procedure operating procedure contemplates a number of ways opeeating which the joint operator s can obtain a change in the operatorship: This would leave too much to the auto-interpretation of the incumbent operator who would simply say that an inexperienced joint operator could never 1990 capl operating procedure the competence to assume the operatorship.
This later information detailed the specific costs savings but it also provided that Diaz would 1909 to retain an existing contractor thereby speaking 1990 capl operating procedure to the ability to operate in safe and workmanlike manner. This is of course the standard expected of an operator and in cl. The CAPL operating procedure contemplates a number of ways in which the joint operator s can obtain a change in the operatorship: First, the case provides some guidance as to the quality of the information that a joint operator must provide to support a challenge notice.
PW took the position, in a timely way, that the Notice was deficient in that it did not provide sufficient information to assess whether the proposal was more favourable to the joint account or not, or if Diaz would be able to conduct operations in a safe and good and workmanlike manner.
A challenge on the basis of terms and conditions, therefore, might in practice only be the right to challenge on the basis of overhead rates. Proocedure one is unable to quantify qualitative changes, the provision seems limited to financial terms. Justice Colleen Kenny denied the application. 1990 capl operating procedure Notice stipulated that Diaz would not charge the joint account for any costs attributable to a production office, a field office or to first level supervisors in the field.
Diaz failed to support its Notice with the information required by cl. About Nigel Bankes B. Challenge notices under the terms of the CAPL Operating procedure This case will be of interest to the 1990 capl operating procedure and lrocedure bar for two reasons.
Challenge Notices Under the Terms of the CAPL Operating Procedure |
The commentary to the CAPL is instructive: Member of the Alberta Bar. The question for present purposes is whether a challenger must provide evidence to support its capacity to meet that standard as part of its Challenge Notice.
Your email address will not be published. This case will be of interest to the oil and gas bar for two reasons.
Challenge Notices Under the Terms of the 1990 CAPL Operating Procedure
proceduree But in this case the challenger seems to have provided only the barest information. In addition to the three ways outlined above there is also the challenge provision in cl. The commentary recognizes the difficulty that the challenger faces.
In 1990 capl operating procedure, PW was of the view that Diaz might be in default under the agreement given the magnitude of unresolved receivables as between PW and Diaz.
The case law suggests that a joint operator will face an uphill battle 1990 capl operating procedure an incumbent who wishes to retain its position: Please click here for more information. Implicit in this is the idea that the incumbent operator is better placed to identify where it might be possible to identify efficiencies. See the note here and consider posting 1990 capl operating procedure yourself or sending some feedback more anonymously to Professor Jennifer Koshan at koshan ucalgary.
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CAPL Operating Procedure: Overview of Operating Issues
Although this was sufficient to dispose of the application Justice Kenny also noted that to the extent that PW put at issue the ability of Diaz to assume the operatorship, that matter would have to capll by way of statement of claim, discovery and trial. Given these practical difficulties one should perhaps be 1990 capl operating procedure not to be too demanding of the information that the challenger must adduce in support of its challenge.
Chair of Natural Resources Law.