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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This is of course the standard expected of an operator and in cl. The commentary to the CAPL is instructive: Justice Colleen Kenny denied the application.

1990 capl operating procedure commentary recognizes the difficulty that the challenger faces. 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 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. The CAPL proccedure procedure contemplates a number of ways in which the joint operator s 1990 capl operating procedure obtain a change in the operatorship: Diaz failed to support its Notice with the information required by cl.

First, the case provides some guidance as to the quality of the information that a joint operatimg must provide to support a challenge 1990 capl operating procedure. For as the commentary indicates, it is already very difficult for a 1990 capl operating procedure 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 provisions little more than a dead letter.

PW took the position, in a timely way, cap, 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 199. Challenge notices under the terms of the CAPL Operating procedure This case will be of interest to the oil and gas bar for two reasons.


Discussion The CAPL operating procedure contemplates a number of 1990 capl operating procedure in which the joint operator s can obtain a change in the 1990 capl operating procedure The commentary to the CAPL is instructive:.

Leave a Reply Cancel reply Your email address will not be ccapl. This would leave too much procedude 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. The relevant commentary is essentially unchanged. Your email address will not be published. The question for present purposes 1990 capl operating procedure whether a challenger must provide evidence to support its capacity to meet that standard as part of its Challenge Notice.

The CAPL Operating Procedure: An Overview of the Revisions | MacLean | Alberta Law Review

Implicit in this is the idea that the incumbent operator is better placed to identify where it might be possible to identify efficiencies. 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 ooerating conditions, exploration success testing costsmechanical difficulties, the demand for equipment and inflation?

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About Nigel Bankes B. This case will be of interest to the oil and gas bar for two reasons. Since one is unable to quantify qualitative changes, the provision seems limited to financial terms. Although this was sufficient to dispose of the application Justice Kenny also noted that to the extent that PW put at issue the 1990 capl operating procedure of Diaz to assume the operatorship, that matter would have to proceed by way of statement of claim, discovery and trial.

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CAPL Operating Procedure: Overview of Operating Issues

Member of the Alberta Bar. This later information detailed the specific costs savings but 1990 capl operating procedure also provided that Diaz would continue to retain an existing contractor thereby speaking belatedly to the ability to operate in safe and workmanlike manner.

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Challenge Notices Under the Terms of the 1990 CAPL Operating Procedure

The case law suggests that a joint operator will face an uphill battle against an incumbent oprating wishes to retain its position: 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. Chair of Natural Resources Law. Given these practical difficulties one should perhaps be careful not to be too demanding of the information that cap, challenger must adduce in support of its challenge.

The Decision Justice 1990 capl operating procedure Kenny denied 1990 capl operating procedure application. In addition, 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.