PROPERTY TRANSFERPROCEDUREAnother example of how versatile this A&Dtool is, see this month’s update for a look athow the Property Transfer Procedure can beused to complete transactions involvingundeveloped lands. PAGE 18

OIL SANDS TENUREREGULATIONSThere have been numerous changes maderecently to the oil sands tenure regulations.With many new players taking an interest indeveloping a piece of this resources, it isimportant that we all understand theimplications of these changes. PAGE 8

A MATTER OF RECLAMATIONWhen it comes to contaminated sites, whatprotection from future liabilities does areclamation certificate provide? The answersmay surprise you. PAGE 16

the

egotiatorT h e M a g a z i n e o f t h e C a n a d i a n A s s o c i a t i o n o f P e t r o l e u m L a n d m e n

N TApril 2001

The largest leaseholders in Canada use LANDMAN.

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How do you keep yourfeet on the ground?

LANDMAN is the most comprehensive land management system in the busi-ness. Fully integrated with ATS’ enterprise accounting solutions, Canada’s

most popular land management system can be accessed by anyone in yourcompany who requires information regarding your lands and their associated

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Land managers and administrators, geologists and accounting departmentswill all find that LANDMAN is a significant asset in managing the properties

that form the core of their business. LANDMAN can be linked to a host ofother geotechnical applications- accessing information can be

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ted to position our customers to take advantage of the e-Business evolution.

Applied Terravision provides a comprehensive suite of software solutionsthat include Geoscience Applications, Production Management, Land &

Facilities Management, Financial Accounting, and Oil and Gas Marketing.

The NegotiatorMONTHLY NEWS MAGAZINE OF THE

CANADIAN ASSOCIATION OF PETROLEUM LANDMEN

Editor-in-ChiefLawrence Fisher

[ph] 232-7622 [fax] 232-7429

Senior EditorsRob Motherwell

[ph] 269-8877 [fax] 264-0995Jeremy Wallis

[ph] 290-3283 [fax] 290-2553

Assistant EditorDelona Butcher

[ph] 234-5393 [fax] 234-5734

Past EditorNathan MacBey

[ph] 750-5495 [fax] 750-5488

Design and ProductionThinkinc Communications Ltd.

PrintingMcAra Printing Limited

Editorial StaffChris Bartole [ph] 237-1191 [fax] 231-2359Linda Bernier [ph] 266-8200 [fax] 290-8200

Scott Clapperton [ph] 261-6517 [fax] 263-5263Harry Ediger [ph] 264-3959 [fax] 266-6209

Darryl Erickson [ph] 265-2230 [fax] 265-2227Calynda Gabel [ph] 261-2377 [fax] 269-8355

Jodi Gosling [ph] 974-8885 [fax] 974-8811Joe Iaquinta [ph] 233-5741 [fax] 233-1094

Chris Koichopolos [ph] 750-7493 [fax] 232-6705Jim Mak [ph] 517-6822 [fax] 517-7412

Jan Peters [ph] 290-2108 [fax] 290-2610Brad Purdy [ph] 218-6837 [fax] 266-6988

Bill Skorenki [ph] 298-7442 [fax] 298-7040Robin Thorsen [ph] 231-2322 [fax] 264-0136

Lori Van Immerzeel [ph] 777-2613 [fax] 777-2609Esther Watt [ph] 298-2813 [fax] 290-8147

Stephen White [ph] 716-3305 [fax] 265-0892

PhotographersDave Leslie [ph] 237-5570 [fax] 237-5568Dave Laurie [ph] 229-1500 [fax] 245-0074

SubmissionsSubmissions to The Negotiator should be mailed inprint ready form to the Senior Editor. All articles

printed under an author’s name represent the views ofthe author; publication neither implies approval of theopinions expressed, nor accuracy of the facts stated.

AdvertisingFor information, please contact the Editor-in-Chief. No

endorsement or sponsorship by the Canadian Associationof Petroleum Landmen is suggested or implied.

CAPL InternetThe Website for the CAPL is: www.landman.ca

Underexplored Trends and Recent DiscoveriesTomas Villamil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Editorial HighlightsRob Motherwell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Board BriefsBrad Goodfellow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Message From the ExecutiveColin McKinnon, P.Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Oil Sands Tenure RegulationsAl E. Siemens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The 2nd Annual CAPL Gin TournamentM.L. (Merv) Henkelman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Olds College Land Agent Program UpdateRon Reid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

CAPL Management NightLori Van Immerzeel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

The CAPL BoothGloria Boogmans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

The 24th Annual CAPL Curling Bonspiel . . . . . . . 14

Get Smart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Reclamation CertificatesAshley Evans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Property Transfer Procedure UpdateJim Maclean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Meeting AnnouncementsCAPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Roster UpdatesCAPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

PLM Mentoring ProgramKim Schumann . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Vancouver 2001Ron Vermeulen and Diane Jaques . . . . . . . . . . . . . . . . . . . . 26

CAPL Calendar of EventsCAPL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

2001APRILTable of Contents

N Pa g e 2apr2001

Colombia: A place to invest in upstream activitiesAlthough the perception of security issues is a concern for potential investors in Colombia, thecountry has the necessary components to attract risk capital for exploration activities. Recentchanges in the standard association contract and recent modifications in the royalty scheme,combined with a working and proven petroleum system and the availability of large acreagepositions in very early stages of maturation support a new appreciation of the country. Inaddition, the attitude of Ecopetrol, Colombia´s state oil company, has shifted dramaticallyfrom being a land regulator and a competitor to being the best partner a private companymight have in upstream activities in the country. In this brief paper I will outline in relativedetail some of the changes that have attracted new companies to Colombia and some ofthe geological advantages the region provides.

Ecopetrol take and royalties, a different contractThe Colombian government and Ecopetrol have taken two major steps towards increas-ing the competitiveness of the country and attracting risk capital for exploration. It wasrealised two years ago that Colombian exploration opportunities in some companieswere not at the top of their exploration portfolio. The consequence of this, combinedwith low oil prices and the perception that deep-water opportunities had the mostromance, was a general decrease in the exploration activity in the region. In addition,the perception of security issues in Colombia worsened during those two years. It isworth mentioning, however, that perception is generally more negative than ourdifficult reality. In response to this situation, the contractual and fiscal offer wasmodified as follows: Ecopetrol´s production share has now decreased from 50%after royalties to 30% after royalties and the R-factor, a formula that redistributesproduction after investment recovery, was modified in a favourable manner forthe private investor. The second improvement, whose impact is positive andmarked, is a change in the fiscal regime with regards to royalties. Royalties havechanged from a flat rate of 20% to a rate that depends on daily production andvaries between 5% and 25%. 20% levels are only reached, however, when dailyproduction reaches values in the order of 125 kbd. As a result of thementioned improved competitiveness, Ecopetrol has signed 45 new E&Pcontracts in the last 14 months, evidencing increased interest in the country.

The process of capturing acreage in Colombia is fast and simple. Afterconsultation and evaluation of technical information, the exploration strat-egy is designed and the desired area and work program can be presentedto Ecopetrol. After a brief period of negotiation and after the work programis approved by Ecopetrol, the deal can be finalized.

by TomasVillamil

Ph.D., P.Doc. Exploration

Vice President,

Ecopetrol

Today there are 80 partnercompanies in the E&P busi-

ness in Colombia, thisdemonstrates that security

issues are manageable.Thirteen are Canadian and 10

of these operate 19 associationcontracts. Investment by

Canadian companies began in thelate 80´s. Since then, Canadiancompanies have increased their

presence in Colombia. After Round2000, Talisman Energy entered

Colombia and Alberta Energy, Kappaand Nexen expanded their E&P port-folio. Nexen and Petrobras discoveredthe 200 mmbo Guando field in 2000.

N Pa g e 3apr 2001

Ecopetrol´s attitude: we are responsible and accountable for allexploration activities in ColombiaEcopetrol, through its E&P branch, is responsible and accountable forexploration in Colombia. This comprises upstream activities conducteddirectly by Ecopetrol and by associated partners. This is a modified way ofseeing things and has relevant implications for operating companies andnew potential partners. It is Ecopetrol´s job to assist investors and potentialinvestors in all activities necessary to achieve success in the upstreambusiness. Activities comprise, but are not limited to, strong jump-start ininitial phases of new country entry decisions, short courses and overviewsof the petroleum geology of Colombia and assistance in the selection ofadequate acreage that matches the company’s goals and competes in theportfolio of opportunities. Most importantly, Ecopetrol assists in achievingthe best technical parameters of information acquisition, including seismic,well logs and surface information. Ecopetrol has compiled and assimilatedexploration and drilling data through more than fifty years of experience indirect activities and more than 460 association contracts or partnerships.Our long experience has allowed the establishment of best practises inregions of variable complexity. “Your success is our success”, is our visionthat affects not only technical aspects of the upstream business, but alsomandates that Ecopetrol will assist operating and new partners with envi-ronmental licenses, community relationships and security concerns.

Ecopetrol has a complete information bank (www.BIP.com.co) that can beaccessed remotely for information. Surface and subsurface data isprovided to interested companies at copy cost. Ecopetrol believes that themore eyes that see the technical information, the greater the possibilitiesof finding hydrocarbons.

The exploration puzzle, favourable geology, and overview of basinsThe main components of the exploration puzzle will be briefly discussed inthe following paragraphs. This outline will be conducted in a historicalsequence, essay-style, mentioning generalities of why there is oil inColombia and explaining the events that ultimately generated accumula-tions rather than just describing the main components of the petroleumsystem. For clarification, it must be mentioned that the analysis presentedapplies to most of the basins and foothills of Colombia but not for all; thereare independent regions that cannot be interpreted utilising the same

approach. Emphasis is made on liquid hydrocarbons; gas will be mentionedbriefly in a final paragraph.

Generation: the La Luna super-source-rock. Approximately 93 million yearsago a vast volume of extra oceanic crust was generated over the GalapagosHotspot. This extra oceanic crust formed a discrete oceanic plate or largeigneous province and displaced sea water producing a rise in eustatic sealevel. In addition, that volcanic activity injected a very large volume of CO2 intothe atmosphere. This combination caused marine flooding, global warming, andwidespread dysoxic to anoxic marine conditions. Flooding and dysoxia wascombined with appropriate basin development and exceptional palaeoceano-graphic conditions and allowed the deposition of a very widespread and veryrich source rock throughout northern South America. The La Luna Formationwas deposited over a very broad and large marine seaway that extended fromnorthern Peru to Trinidad and during a time when Cretaceous sea level wasalready elevated above Phanerozoic averages. Whereas rocks of this age arenot the single Cretaceous source rock, the La Luna has generated more oil thanany other source rock and has produced the largest accumulation of hydrocar-bons of the planet, i.e., the Orinoco heavy oil belt. In Colombia, the La LunaFormation is distributed throughout most of the main basins and along theeastern and western foothills of the Eastern Cordillera. The La Luna source rockand equivalent units is a crucial formation for oil exploration because its wide-spread nature, its richness (up to 16% TOC) and its thickness allow significantreductions in exploration risk. The La Luna has generated most of the oilencountered in Colombia.

Reservoir: During Maastrichtian to Eocene times the present-day CentralCordillera suffered its major episode of uplift and erosion; sediments producedby this erosion were transported towards the east by major river systems.During those same times the Guyana Shield suffered Basin & Range type ofuplift and delivered vast amounts of sediment towards the west. Rivers flowingto the east met the ones flowing to the west along a central river system thatultimately flowed north. This Eocene river system was the main mega faciestract that allowed deposition of the main reservoirs of Colombia, particularlythe Mirador Formation of the Llanos and eastern foothills of the EasternCordillera and the La Paz-Esmeraldas Formations of the Middle MagdalenaValley. This central river system delivered coeval sediments into the MaracaiboLake area where the Misoa and Mirador have accumulated some 35 billionbarrels of oil. The Eocene reservoir system represents the main series of reser-voir formations; there are multiple clastic units in Colombia that are provenreservoirs. In the Upper Magdalena Valley the basal Transgressive Cretaceoussandstones and the Late Cretaceous regressive sandstones (coeval to theUpper Brazeau but similar to the Cardium) are widespread producers.

Even though most of the reservoirs in Colombia are represented by clastic-dominated sequences, fractured carbonates and fractured cherts are becominga new play that deserves special attention. The oil-rich province of the MiddleMagdalena Valley is characterised by a very rich La Luna source rock that hashemipelagic limestone and chert levels that have significant potential as frac-tured reservoirs. Some of these might be considered analogous to the

continued ➔ p.4

N Pa g e 4apr 2001

This is a busy time of year for the CAPL as there are a number

of great events around the corner that you will not want to

miss. Be sure to note the 2001 Prospect Exchange that takes

place on April 26 & 27 and the CAPL elections on April 24.

• Along the theme of prospecting, this month we have a great

feature article titled Under Explored Trends & Recent Discoveries by Tomas

Villamill PH.D., P.Doc., Exploration Vice President of Ecopetrol, Colombia’s

state oil company. This interesting article explains how the newly developed

oil and gas regulatory regime combined with the potential for discoveries of

large oil and gas fields and the recently built underutilized pipeline infrastruc-

ture make Columbia an attractive oil & gas exploration opportunity.

• Next we have a great article from Al E. Seimens titled Oil Sands Tenure

Regulations, An Overview. This is a very insightful article about the recent

changes to the oil sands tenure system regulations and an initiative by a

joint industry and government Business Design Team to develop oil sands

regulation guidelines.

• We welcome an informative article titled Reclamation Certificates and

Continuing Liability for Contaminated Sites by Ashley Evans, Associate

from the law firm of Bennett Jones. This article discusses a very sensitive

and timely topic, the liability of a company to clean up a contaminated

site for which a reclamation certificate was issued several years earlier.

• Jim Maclean provides our final feature article this month, the fourth in a

series on the Property Transfer Procedure. This month Jim touches on the

opportunity of using the PTP as a means to streamline transactions

involving only undeveloped properties.

• It’s never too early to start thinking about the 2001 CAPL conference, which

will be held in Vancouver on September 23-27. Ron Vermeulen and Dianne

Jacques describe what to expect for activities at the conference this year.

We would like to thank all of the advertisers, past contributors, editorial

staff and directors of the CAPL that attended our Negotiator Appreciation

Night at the Barley Mill on Wednesday February 21st. The event was very

well-attended, and many great new ideas and suggestions were discussed

throughout the evening. Some of the ideas raised will surely lead to addi-

tional quality Negotiator content. Special thanks to Jodi Gosling, Jan Peters

and Chris Koichopolos for organizing this occasion.

In closing, once again we would like to encourage our membership to

provide us with feedback on this publication. In particular, we would like

to encourage some of our retired veteran landmen to make submissions

describing the industry of yesteryear. Us younger whippersnappers in the

Association appreciate the fact that we can learn a lot from listening to

land stories told by grizzled land veterans from the hay days of the oil

patch. Enjoy!

Rob Motherwell

Senior Editor

Editorial Highlights

N

Monterrey Formation of California and the Austin Chalk of Texas. Acrossthe political border to Venezuela, the Mara La Paz oil field produces fromthe above mentioned fractured reservoirs.

Seal. During Oligocene times most of Colombia suffered a period of subsi-dence allowing the deposition of fine-grained strata that form a regionaland widespread package of seals. Units that form part of this mega-sequence are the Carbonera Formation of the Llanos foothills, the Mugrosaand Colorado Formations of the Middle Magdalena Valley and the PotrerilloFormation of the Upper Magdalena Valley. The main seal for the CaballosFormation reservoir in the Upper Magdalena Valley is the Villeta or La Lunasource rock, for the Monserrate reservoir the main seal are coal-rich fine-grained strata of the Guaduas Formation. As in many basins, the risk forseal in Colombian basins and foothills is relatively minor.

Trap. The Eastern Cordillera of Colombia is a large inverted graben. Duringlate Jurassic to early Cretaceous times the Eastern Cordillera was a majorsite of subsidence and deposition of marine sediments. This grabensubsided in a marked manner throughout the Early Cretaceous ceasingmajor subsidence during Cenomanian times. During Late Miocene timesconvergence between the oceanic plates to the west of Colombia and thenorthern corner of the South American plate increased, producing inversionand shortening of the Eastern Cordillera and thrusting of the CentralCordillera over the Valleys. Convergence, inversion and thrusting generatedmost of the traps that have been drilled to present in the country. Molassedeposits form the uplift of the mountain belts and burial by overthrustingmatured the source rock on both sides of the Eastern Cordillera andmigrated oil filled many traps. The majority of oil that has been found inColombia is trapped within structures flanking the inverted EasternCordillera. Despite of this fact, however, eastern and western foothills of themountain belt remain either in the early stages of exploration or unexplored.

In general terms, trap size diminishes away from the Eastern Cordillerafoothills and towards flat regions of the Llanos plains and the MagdalenaValley. Seismic data quality improves towards flat regions and depth totarget also decreases. Because of this simple relationship, Colombiaoffers a variety of opportunities that range from high-risk high-rewarddeep large and complex traps appropriate for large integrated companiesto lower risk-lower reward shallower and easier to image structuresappropriate for medium or smaller companies.

Gas. Gas exploration in Colombia is in its earliest stages of exploration. It iseasy to predict that most of the future gas resources of Colombia will beencountered in offshore areas of the Caribbean Sea. In these areas,Oligocene gas-prone source rocks overlie an accretionary prism (south-western regions) or a slightly metamorphosed basement. Oligocenefluvio-deltaic sediments rich in terrestrial material source late Oligoceneand Miocene reservoirs that range from nearshore carbonates and shallow-marine deposits to well-developed turbidite systems in deeper waters.Present-day significant gas reserves have been encountered associated

continued ➔ p.6

N Pa g e 5apr 2001

2000-2001CAPL Executive

PresidentK.F.J. (Kevin) Burke-Gaffney, P.Land

[ph] 298-4403 [fax] 262-6705

Vice-PresidentC.A. (Colin) McKinnon, P.Land[ph] 531-6506 [fax] 531-6525

Secretary/Director, SocialB.D. (Brad) Goodfellow

[ph] 265-2230 [fax] 265-2227

Director, Business DevelopmentN.K. (Neil) Cusworth, P.Land

[ph] 265-0077 [fax] 233-9034

Director, CommunicationsL.P.J. (Lawrence) Fisher

[ph] 232-7622 [fax] 232-7429

Director, EducationD.B. (Dave) Horn

[ph] 290-2113 [fax] 290-2440

Director, Field ManagementG.K. (Glenn) Kruyssen, P.Land

[ph] 264-2533 [fax] 264-2605

Director, FinanceC.A. (Carolyn) Murphy

[ph] 249-0900 [fax] 686-2640

Director, Member ServicesS. (Suzanne) Stahl

[ph] 571-5262 [fax] 571-5266

Director, ProfessionalismH.L. (Hank) Riggelson, P.Land[ph] 221-0818 [fax] 221-0875

Director, Public RelationsD.J. (Dave) Bernatchez

[ph] 260-5244 [fax] 260-4752

Director, TechnologyG.L. (Gjoa) Taylor, P.Land

[ph] 231-8469 [fax] 231-3865

Past PresidentJ.K. (Jim) Moore, P.Land

[ph] 974-8845 [fax] 974-8811

CAPL OfficeSuite 350, 500 – 5 Avenue S.W.

Calgary, Alberta T2P 3L5[ph] 403-237-6635 [fax] 403-263-1620

Denise Grieve, Office Managerdgrieve@landman.ca

Karin Steers, Office Administratorksteers@landman.ca

The key issues discussed and resolved at the CAPL Executive

Meeting on March 6, 2001.

• Carolyn Murphy submitted a Treasurer’s Report as at March 6,

2001 showing CAPL investments totaling $658,928.42 Canadian and

$25,000.00 U.S. with a cash balance of $23,591.82 Canadian and $304.03 U.S. A trans-

fer of $75,000.00 was made from the current account to the CIBC Mutual Fund account.

• Guest Jeremy Wallis, Co-Editor of The Negotiator, provided the Board with an overview

of costs and time spent on the CAPL’s monthly newsletter. The Committee is working

towards a break even budget and currently after revenue and expenses, the net deficit

is $40,000.00.

• Suzanne Stahl provided one student and one active membership application to the

Board, which were approved.

• Kevin Burke-Gaffney advised that the Manitoba Oil and Gas Act is currently under

review and the Government is looking for comments. Neil Cusworth, Director of

Business Development will provide comments to the Crown.

• Gjoa Taylor, Director of Technology, advised that the Technology Committee is

currently working on a program for the electronic version of the CAPL Roster.

• Colin McKinnon reported that as of today’s date, 72 Exhibitor Booths have been sold

for the April 26 and 27, 2001 Prospect Exchange.

• Suzanne Stahl reported that the 2000 CAPL Compensation Survey has been finalized

and will be mailed to all members with the March 2001 Negotiator. The Survey

results represent approximately 43% of the membership, up from 27% received for

the 1995 Survey.

• Dave Bernatchez advised that the Public Relations Committee provided the CAPL

Promotional Booth at the Foothills School Division Expo in Okotoks on February 15,

2001 and approximately 3,000 individuals were in attendance.

• Kevin Burke-Gaffney advised that the next General Meeting is the 14th Annual Merit

Awards which will be held at the Palliser Hotel on March 22, 2001.

Brad Goodfellow

Secretary/Director, Social

N

Board Briefs

with light oil in the fields along the eastern foothills of the EasternCordillera. Cusiana gas is currently being reinjected for enhanced oilrecovery but eventually it will be exploited in a commercial manner.

The exploration history of offshore gas-prone acreage can besummarised as follows. a) South-western regions approx. 12million acres. The last wells were drilled in 1980 and 1984 priorto acquisition of large seismic programs. 4,000 km of 2D seis-mic were shot in 1983 and 11,000 km were shot after drillingthe last well. This area remains unexplored with recent tech-nological advances. Arco´s study calculated a potential of 13billion boe with possibilities of encountering 30% liquidsand 70% thermo- and biogenic gas. b) North-easternregions, approx. 12.5 million acres. 30,000 km of 2D seis-mic data have been acquired. The area has an unriskedgas potential of 25 TCF to be discovered and Chuchupaand Ballena gas fields with a total of 5 TCF recoverable.

Ecopetrol is currently working towards improving therisk-reward ratio of exploring for gas in offshoreColombia, this includes generating potential marketsand decreasing the price risk.

Underexplored trends and recent discover-ies. Where are our future reserves?Despite oil and gas potential in Colombia,prospective basins and foothills remain rela-tively unexplored to underexplored. Evidence ofthis is the year-2000 discovery of Guando Field(approx. 200 mmbo recoverable, Braspetro-Nexen) in the western foothills of the EasternCordillera. Guando, for example, is anevident surface trap with the reservoir at adepth of 3,000 feet. Guando is an obviousfeature in a new and not-so-obviousplace; explorers have generally focussedon adjacent basins rather than thefoothills but this is changing, Guandoopened the industry’s eyes. Ecopetrolbelieves that large, high-impact oilreserves will be found alongColombia’s underexplored foothills.

Only a few valid exploratory wells have tested valid traps along theeastern foothills of the Eastern Cordillera, despite the fact that Cusianaand Cupiagua (900 and 600 mmbo, respectively) are among the largestColombian fields and there is analogous structuration along trend. Lessthan five true exploratory wells have tested valid traps along the west-ern foothills of the Eastern Cordillera and there are large traps within aworking petroleum system. This contrasts in a marked manner withthe state of exploration maturity of the foothills along the CanadianRockies. Canadian companies have very solid experience working intectonically complex environments and possess a competitive advan-tage when evaluating foothills leads.

High potential gas reserves will most likely be encountered in offshoreCaribbean regions. The areas are very large and there is proven gas inseveral places. The new standard association contract favours gasexploration and will allow positive economic analyses for interestedcompanies in exploring offshore blocks.

Transportation and social infrastructure.Even though Colombia is underexplored, it contains a relativelycomplete hydro-carbon transportation network. Because of the discov-ery of large fields such as Cusiana, Cupiagua, Caño Limon and LaCira-Infantas, industry and Ecopetrol have constructed pipelines thatcurrently have significant capacity. Transportation infrastructureeconomically upgrades most of the exploratory opportunities along thefoothills because only short branches would have to be constructed forconnection to the main pipelines.

Conclusions.Given the discussion above, with special emphasis on the geologicalprospectivity of the country, Colombian upstream opportunities should beconsidered as part of the exploration portfolio of large, mid, and small oilcompanies. Colombia is a country that is open for business andwelcomes foreign investment in petroleum business. Ecopetrol is openwith technical information, our vision is to become the best partner acompany might have in the petroleum business of Colombia. We invitecompanies to visit our website (www.ecopetrol.com.co) and our officesin Bogota for a complete technical presentation of any area of interest.

Talisman and other important Canadian companiesare entering or increasing their exploration andproduction portfolio of opportunities in Colombia.

Transportation: Colombia has a relatively completetransportation network of approximately 12,000 kmtotal length. This network has capacity and iscurrently available for future development projects.

Cusiana Field: CPF Cusiana, site of one of thelargest discoveries of the past decade.

Ecopetrol will present a variety of upstream

projects at the CAPL Prospect Exchange 2001 in Calgary,

April 26 and 27, and we invite all interested companies

to visit our booth, number 501.

N

N Pa g e 6apr 2001

N Pa g e 7apr 2001

CAPL Education Portfolio

The Education Portfolio delivered a year of

extreme education to our Membership and

Industry. The past year focused on elevating

the role of the CAPL in government initiatives

and training our members on all aspects of

our industry.

Your Education Committee presented a wide variety of courses with

an attendance of over 1000, resulting in gross income of $388,033

and expenses of $231,709. Chris Baker (PCP), oversaw a high

performance team led by Peter Abercrombie (AEC) – Agreements,

Greg Larsen (Star O&G) – Regulations, Deanna King (Nexen) –

Business & Technical, Nancy Wilson (CNRL) – Course Development

and Donna Bowles (Independent) – Advertising.

The Course Development Committee had a very strong year by

presenting the G56/60 Course four times and is rolling out in 2001,

Concurrent Gas Bitumen Production, Oil Sands Tenure Regulations

and Appropriates Dispute Resolution Courses. It is very clear that

Government and Industry looks to the CAPL as a vehicle to keep

Industry current on the latest developments of industry initiatives.

In 1999, Jim Moore’s vision was to have our own office with a train-

ing centre. To support this vision, we created the CAPL Training

Centre that is a fully functional training venue. There was tremen-

dous focus on creating a state of the art Training Centre to educate

our Membership on all facets of our business. Since the creation of

this centre we have held over 20 courses with excellent responses.

Jeff Newcommon (NCE Resources) led our Topical Issues Luncheon

Committee by showcasing two luncheons. The first, “www. Show Me

the Money.com” had an attendance of 206 while the second lunch-

eon, “Surviving the Savage Mountain” had over 400 in attendance.

We are very proud of the contribution that this committee provides

to our Membership.

Our Scholarship Committee, directed by Lorraine Schwetz (CNR), over-

saw our Scholarship Trust Fund which generates $2,700 interest. The

CAPL donated $7,300 towards the following scholarship distributions:

6 University of Calgary

3 Olds College

1 Mount Royal College

Your Mentoring Committee led by Wayne Lawman (Suncor) has built

a tremendous program providing a connection with upcoming Grads

and Industry Partners. This program is unique in North America and

there have been requests to develop similar programs through the

AAPL and Olds College.

The CAPL fosters a very close relationship with the University of

Calgary. Carolyn Murphy (Independent) has spent the past year lead-

ing a Joint Committee that develops new Grads to satisfy the needs

of our Industry. Our relationship with the U of C, PLM Program is very

special and we work hard with the University to develop Graduates

who will strengthen our participation in the Oil and Gas Community.

Mount Royal College has a very strong program providing Land

Administrators to our Land Community. The education focus at this

Academic Institution is to ensure that it meets the needs of the

Land Industry and it continues to fulfil this requirement.

Finally, we participated with the Professional Development

Consortium, which is a group of Associations across the Oil and Gas

Business including APEGGA, SPE, CIM, CSPC, CSEM, NRCIRAP, CIPS,

CWLS and OPAL. This past year we presented the following programs:

Series A: Introduction to Finance and Control Series

Series B: Risk Management

Series C: Project Management

Series D: Business Ethics

Series E: International Business

This past year was a special year for me. My vision was to escalate the

importance of the CAPL as Industry Advisors and provide a vehicle to

educate our Membership and Industry on all aspects of our Industry,

with a focus on updating our members on recent Government and

Industry initiatives. Through the efforts of over 100 volunteers we

have accomplished this vision and I sincerely wish to thank them all,

as well as Denise Grieve and Karin Steers for their endless hours of

support to this effort. Education to our Membership is dear to me and

I am thankful to all that have contributed to this effort.

Dave Horn

Director of Education

N

Message from the Executive

N Pa g e 8apr 2001

In a letter dated 1990 April 24, M.J. Day, Assistant Deputy Minister,

Mineral Resources Division of Alberta Energy wrote, “The enclosed

1990 April 19 draft of a proposed oil sands regulation reflects the

culmination of a 3-year review with the industry on the direction oil

sands tenure should take in Alberta.”

It is interesting and instructive to read correspondence related to

past discussions between Industry and Government, and discussions

within Industry, regarding changes in legislation and regulation that

impact our province and business activity within the province. When

regulations change they do so within a certain context, and within a

specific political and economic climate. As the world continues to

change, having forgotten the context

that gave rise to legislation or regula-

tion, one is caught wondering how

regulation is so out of touch with

reality.

Within this context Alberta

Department of Energy began a consul-

tation with Industry in 1997 to once

again review and change the Oil Sands

Regulations. Through a joint

Government and Industry Committee

existing regulations were reviewed,

new regulations proposed, and on

March 8, 2000, by Order in Council,

the new Oil Sands Tenure Regulation (OSTR) was approved.

The guiding philosophy for the review was agreed to:

• Industry should receive appropriate reward for risks;

• The Province should receive a fair share of economic rent in

terms of bonuses, rent, and royalty;

• Tenure rules should be clear, fair, predictable, and

consistently applied;

• Definitions and practices should be aligned between

government agencies;

• Oil Sands leases should be in the hands of those who are

committed to development;

• Oil sands resources need to be effectively evaluated and lessees need

to be able to retain sufficient resources for their committed needs;

• Regulation should encourage development, and encourage upgrad-

ing in Alberta;

• The parties would like to gain information on the nature, abun-

dance, and economic potential of other minerals within the surface

mineable oil sands area.

Oil Sands Tenure Regulation (AR 50/2000) carried forward the two

main types of Oil Sands Agreements from the 1990 regulations:

Permits and Oil Sands Leases. There are now two types of Oil Sands

Leases; primary and continued; whereas the former regulations

provided for nine types of leases. The term of a Permit is 5 years and

the term of a Primary Oil Sands Lease is 15 years. Leases existing

under the 1990 regulations are allowed to complete the terms

provided for by the prior regulation, so you may find 21-year oil

sands leases in existence.

Having stated that only two types of

leases are issued pursuant to the current

regulations, a review of the regulations

will find reference to terms such as:

continued lease, deemed primary lease,

existing oil sands lease, first term OS

lease, primary lease, second term OS

lease, and third term OS lease. Whereas

the current regulations cannot be totally

understood without understanding the

1990 regulations, the purpose of this

article is to provide an overview of the

current Oil Sands Regulations. In addi-

tion to reducing the oil sands leases to two types, the current

regulations provide for the following:

1. The primary purpose of the Permit is as an exploratory tool. Toapply for a Primary Lease from a Permit the lessee must provide atechnical report indicating that the required minimum level of oilsands evaluation has been achieved.

2. A Primary Lease is issued either from a Permit, or issued to asuccessful bidder at the biweekly oil sands public sales. The termof a Primary Lease is 15 years.

3. During the last year of the term of the Primary Lease the lesseemay apply for the continuation of the lease. If the lessee hasachieved the “minimum level of evaluation” the lease will becontinued as a Continued Lease.

4. A lease that has been continued is then defined as a “continuedproducing” or a “continued non-producing” lease.

a. The status of a non-producing lease can be changed toproducing by bringing the lease into production;

b. The status of a producing lease can be changed to non-producing if the lease ceases to produce for three or more years.

5. A non-producing Continued Lease is subject to escalating rental.Two areas within the Oil Sands designated areas in the Province,

Oil Sands Tenure RegulationsAn Overview Al E. Siemens

N Pa g e 9apr 2001

have been established for escalating rental purposes. “Area A” iscomprised of the Cold Lake Oil Sands area, the Athabasca surfacemineable area, and a primary oil sands producing geographic areanear Wabasca. The escalating rent in “Area A” begins at $7.00 perhectare and doubles at 3 year intervals to a maximum of $224.00per hectare. “Area B” contains the remainder of the Athabascadeposit area, and the Peace River deposit area. Within “Area B” theescalating rental begins at $3.00 and doubles at three year intervalsto a maximum of $96.00.

6. Escalating rental can be reduced or eliminated, on a dollar fordollar basis, by conducting exploration or development work on theaffected lease, or by conducting research that has a direct connec-tion and application to a non-producing lease.

7. Lessees who are upgrading bitumen in Alberta, either at their ownupgrader or through binding contract with an Alberta upgrader, arerewarded with the ability to have approximately one hectare deemedproducing for each ten barrels of bitumen upgraded. The hectaresdeemed producing are not subject to escalating rent and may beassigned to any oil sands lease held by the company.

A key concept applied to the Oil Sands Tenure Regulation is “minimum

level of evaluation” as it affects Permits and Primary Leases. In brief,

this means drilling one well per section or partial section of a permit

or lease, and coring 25% of the wells. Some variation of this approach

is provided for by regulation. If seismic is used as part of the evalua-

tion process at least 60% of the sections must be drilled, 25% cored,

and an amount of seismic located on the undrilled sections equal to

3.2 kilometres for each section not drilled. It is my understanding that

the seismic must be located on the undrilled sections and tied to

existing wells on the lease being evaluated.

No doubt many questions arise in the readers mind while reading the

above information. What constitutes “producing”, in regards to a

producing or non-producing lease? What exploration activity and data

will be acceptable for rental reduction? What research costs will be

allowed to be applied to rental reduction? Where must research be done

to be allowed as an applicable cost – in Alberta, in Canada, anywhere

in the world? Must seismic be over the section? Can seismic be use as

part of the evaluation if it is run on the road allowance? These, and

many more questions are not defined within the regulations.

An Oil Sands Tenure Business Design Team comprised of Government

and Industry has been established and has begun developing Oil Sands

Tenure Guidelines. The Business Design Team will grapple with the

above questions and with many other issues, and will develop guide-

lines to set out ways for handling the daily issues that arise as the

regulations are applied.

The new regulations have been in place since March, 2000. Guidelines

applicable to the administration of the regulations are being devel-

oped. By the time the guidelines are in place it will almost be time for

a comprehensive review of the regulations.

On the 8th day of February in the year 2001, we

met again and experienced the “2nd Annual”

CAPL Gin Tournament. We were pleased to see

last year’s players coming out to try their

luck and skill again and we had new

participants trying to get a taste of the

cash payouts. Once the first hand was dealt, the

tournament was underway. There was a lot of laughing,

conversing and we did manage to grab a bite, but continued

trying to get good hands. After hours passed, we ended up with the

following on top:

1st Place “A” Side Ed Melville

2nd Place “A” Side Mark Wanner

1st Place “B” Side Tom Holland

2nd Place “B” Side Jeff Lebbert

1st Place “Doubles” Terry Henkelman/Tom Brock

2nd Place “Doubles” Suzanne Stahl/Ken Armstrong

The following sponsors played a very big part in this tournament and

we are very grateful for their generosity. We were delighted to see

some of our sponsors playing again this year. Their donations helped

the CAPL Gin Tournament be a huge success:

We must not forget to thank the CAPL Gin Tournament committee for

all the time and effort they put into this event. Without them this fun

and entertaining evening would not have taken place. Our special

thanks to: “Texas Hold Em” (Tom) Holland, “Bounty Man” (Bob) Garies

and “Winning” (Wayne) Moses. You all did a terrific job, Gentlemen!

Stay tuned for the 3rd Annual CAPL Gin Tournament!

M.L. (Merv) Henkelman

Chairman

All West Surveys Ltd.

All-Can Engineering & Surveys

(1976) Ltd.

Allied Land Services (1978) Ltd.

Antelope Land Services Ltd.

Benchmark Land & Mineral

Company Ltd.

Britt Resources Ltd.

Cadastral Group Inc.

Caltech Surveys Ltd.

Canada West Land Services Ltd.

Canadian Landmasters Resource

Services Ltd.

Cavalier Land Ltd.

Explorer Software Solutions Ltd.

Focus Surveys Ltd.

D.R. Hurl & Associates Ltd.

Magin Energy Inc.

McElhanney Land Surveys Ltd.

Meridian Land Services (90) Ltd.

Midwest Surveys Inc.

Petroland Services (1986) Ltd.

Pioneer Land Services Ltd.

Scott Land & Lease Ltd.

Standard Land Company Inc.

Swenson Morrison Land Surveys

Western Land Services Co. Ltd.

N

The 2nd Annual CAPL Gin Tournament

N

N Pa g e 1 0apr 2001

Olds College Land AgentProgram Update

• The annual reception for the Olds College Land Agent program was

held on Tuesday, March 15th, 2001 in the Alberta Room at the

Palliser Hotel. Industry attendance showed encouraging support

for the program and is greatly appreciated.

• Land administrators were on a two-week practicum from Feb. 22

to March 4. And while we are talking Land Administration, start-

ing September 2001, the Land Administration program will be

shortened to one-year to conform to similar programs in Calgary.

• Field trips are a big part of the Land Agent program at Olds

College. Recent trips include visits to Atco Power at Forestberg,

Alberta and a Surface Rights Board Hearing at Three Hills in

December. In February there was a Plant and Field Facilities Tour

of Canadian 88 in Olds.

• In response to a strong recommendation from the Olds College

Land Agent Advisory Committee regarding the importance of a full

understanding of AEUB Guides 56, 60, 62 and ADR, a seminar is

planned on Sour Gas and its Regulation for all 1st and 2nd year

Land Agent students. The seminar will provide 15-hours of instruc-

tion on sour gas regulation from Bob Garies, P. Land and Ron

Swist of Swist & Co.

• Seven curlers from Olds College participated in the CAPL Curling

Bonspiel on Thursday, March 1st at the Calgary Winter Club. A

good time was had by all.

• The CAPL Mentoring program for Land Agents is well underway.

Most students have made initial contacts with their mentors and

are looking forward to developing meaningful relationships under

the guidance of this program.

• Two courses are scheduled for upgrading during the summer break:

Land 201 Rural Appraisal and Land 220 Surface Rights Law.

Ron Reid

Land Agent Program

Olds College

N

COMPLETE LAND, ENVIRONMENTAL AND EMERGENCY RESPONSE SERVICES

FOR THE ENERGY INDUSTRY.

Visit us at www.pioneerland.ca

CALGARY T (403) 229-3969, F (403) 244-1202E pioneer@cadvision.com

EDMONTON T (780) 462-4486, F (780) 468-4325E lsmeland@pioneerland.ca

GRANDE PRAIRIE T (780) 532-7707, F (780) 532-7711E imcnary@pioneerland.ca

FORT ST. JOHN T (250) 785-0669, F (250) 785-0644TOLL FREE 1-800-439-7990E kfowler@pioneerland.ca

REGINA T (306) 584-3044, F (306) 584-3066TOLL FREE 1-877-584-7707E pioneer.land@sk.sympatico.ca

LLYODMINSTER T (780) 871-0945, F (780) 871-0946E lsmeland@pioneerland.ca

THEY SPENT LONG DAYS

OPENING FRONTIERS,

BLAZING TRAILS,

STAKING CLAIMS,

AND SETTLING

THE LAND.

THE REALLY

TOUGH STUFF,

THEY LEFT TO US.

Western Land ServicesSurface and Mineral Acquisition • Personal Consultation under Guides 56 and 60

In Edmonton callJim Armstrong at

(780) 426-6220

In Calgary callGary Weiler or Marie O'Neill at

(403) 266-3076

In Medicine Hat callRon Betts at

(403) 527-7903

E-mail us at: wlsmain@telusplanet.net

CAPL/PLM Mentoring ProgramUrgently Needed – Summer & Full Time Jobs (March Update)

The CAPL/PLM Mentoring Program can only be successful if our PLM Majors have theopportunity to advance their careers through summer and full time jobs that we asCAPL members make available to them. This year appears to be a very difficult year forour PLM Majors. For March 2001 the numbers are as follows:

3rd Year PLM Majors: only 9 out of 15 PLM Majors have summer jobs4th Year PLM Majors: only 9 out of 25 PLM Majors have part time or full time jobs

If you can help out visit the CAPL Web Site at www.landman.ca under the heading“University PLM” or contact Martina Payette at the University of Calgary, ManagementCareer Centre, 220-3733 or by e-mail at payette@mgmt.ucalgary.ca.

Help us keep the tradition growing!

W.F. Lannan, Chairman, CAPL/PLM Mentoring Program

N

N Pa g e 1 2apr 2001

Dr. John Hamm, Premier of

Nova Scotia, addressed CAPL

members and corporate guests

at the annual CAPL

Management Night on Monday,

February 26, 2001.

Dr. Hamm initially focused on

the opportunities in Nova

Scotia’s energy sector. The natu-

ral gas potential in Nova Scotia

was traditionally estimated to

be around 20 trillion cubic feet,

but this figure evaluated only

the Scotian shelf and not any

deepwater hydrocarbons. Current

industry estimates have

increased the gas potential to

be around 40 trillion cubic feet. However, recent developments have

pushed the figures up to 100 trillion cubic feet with the potential for

more discoveries off the coast of Newfoundland and Labrador.

A number of companies are currently exploring for oil and gas in

Nova Scotia. PanCanadian has several significant projects underway

and more in the planning stages. Marathon, Kerr-McGee, Shell,

Chevron, Petro Canada and Anadarko, as well as

numerous other explorers, have

drilling plans for the deep water

off the Nova Scotia coast. Hunt

Oil and Northstar are planning to

explore onshore.

Geographic proximity to New

England markets is Nova Scotia’s

economic advantage. The Sable

pipeline provides the infrastructure to

access major east coast markets and

keeps the cost of bringing new discov-

eries on production reasonable.

Dr. Hamm anticipates that Halifax will become

another energy centre for Canada and that

maritime oil and gas development will develop

into an industry. Projects are now being designed

and engineered in Nova Scotia, generating

economic benefits for this region.

The second half of Dr.

Hamm’s speech focused

on the revenue sharing

situation that currently

exists between Nova

Scotia and Ottawa and

how Dr. Hamm’s govern-

ment is seeking a more

equitable division of that

revenue. The Offshore

Accord signed fifteen

years ago by Ottawa and

Nova Scotia allows

Ottawa to set the devel-

opment rules and

implements joint federal-

provincial regulation of

the industry. In return for these concessions, Nova Scotia was to be

the prime beneficiary of offshore development.

Recent analysis by the province indicates that for each dollar generated

by offshore development, Nova Scotia sees an incremental gain of $0.19

while Ottawa gains $0.81. The citizens of Alberta can clearly see how the

economic activity of the oil and gas industry bene-

fits the general population. The population of Nova

Scotia does not see that clear relationship.

Instead, they see that the oil and gas exploration

mostly benefits Ottawa. Nova Scotia wants access

to oil and gas resources so they have the oppor-

tunity to build a strong, diversified provincial

economy in a manner similar to Alberta.

Dr. Hamm is campaigning across Canada,

seeking support for fairness in royalty distri-

bution. He seeks to create a strong nation

by having opportunities, prosperity and

balance in all regions of Canada.

Lori Van Immerzeel

Editorial Board

Dr. John Hamm Discusses Nova Scotia’s Energy Outlook

Top photo: CAPL President Kevin Burke-Gaffney presents a limited edition printof the CAPL chuckwagon to Dr. John Hamm, Premier of Nova Scotia

Bottom photo: From left to right: Murray Wade, Dennis Eisner, Premier JohnHamm, Ken Pretty, Kevin Burke-Gaffney

N

The goal of the Public Relations Committee

is to promote the CAPL, not only to its

members and industry, but also to the

general public, by communicating the value

of the land profession to the oil and gas

industry. One of the ways in which we

accomplish this goal is through the use of

the CAPL Booth.

In addition to having the CAPL Booth set up at significant industry

functions such at NAPE in Houston and the Prospect Exchange here in

Calgary, the CAPL Booth has been utilized extensively at various career

expos which are held at many of the Calgary and outlying area high

schools and post-secondary education institutions such as SAIT, Mount

Royal College, the University of Calgary and Olds College.

Our Association has had a long history of involvement with and promo-

tion of education through the establishment of scholarships, student

mentoring programs and a student membership category. The CAPL

Booth provides yet another excellent opportunity to interact with

students. Typically, two CAPL members volunteer their time in two-hour

intervals throughout the day. These volunteers provide information on

the CAPL, the multifaceted role of the landman, and the various post-

secondary institutions that provide land related programs. In addition

to answering a myriad of questions on everything from job possibilities

to salary expectations, the volunteers provide interested students with

a host of printed materials such as our CAPL brochures and brochures

from the post secondary institutions.

On February 15, 2001, the CAPL Booth was set up at the Foothills

Composite High School in Okotoks for a Career Fair. Throughout the

evening, an estimated 3000 people, composed of high school students

and their parents, perused the various exhibits. Thanks to Evelyn

Vandenhengel, Dave Bernatchez and Debbie Rowland for their time and

effort in making this event a success.

On March 1, 2001, the CAPL Booth was

taken to Mount Royal College for its annual

Career Day. Historically, this event is very

well attended and this year there was in

excess of 1000 students viewing and

requesting information from 65 exhibitors.

The volunteers at the CAPL Booth were

kept busy and reported a keen interest by

many transfer students who were looking at the PLM program at the

University of Calgary. Thanks to Nancy Wilson, Winston Gaskin, Lynn

Dyson, Joe Iaquinta, Erin McCoy and Dave Bernatchez for taking time

out of their busy schedules.

The CAPL Booth provides all CAPL members with an important volun-

teer opportunity to get out and promote the CAPL and its members as

a professional and integral part of the business fabric that adds value

to the energy industry. In speaking with past volunteers, they have all

expressed how much fun it was to speak with the students; and, a few

have even expressed that in marketing the CAPL and the roles of the

landman to students, they were able to better appreciate what a

fulfilling career they had chosen.

I know everyone is extremely busy, especially in these times of

unprecedented commodity prices and industry activity, but if you can

spare just two hours (O.K. maybe three with traveling time) to attend

one of these career expos, please contact the writer at 246-4173 or

any member of the Public Relations Committee.

Gloria Boogmans

On behalf of the Public Relations Committee

N

The CAPL Booth

N Pa g e 1 4apr 2001

The CAPL held its 24th annual curling bonspiel on March 1, 2001 at the Calgary

Winter Club. As always, this event continues to be one of our Association’s

premier social activities. The event is known for it’s “networking friendly”

environment, good food, great laughs and great entertainment. Thanks

to Terry Henkelman for volunteering with the entertainment!!

On behalf of the committee, I would like to extend a sincere word of thanks and apprecia-

tion to outgoing chair, Carla Luiken. Carla’s passion for the event and dedication is more

than noteworthy. Thank-you Carla for all your hard work.

I would also like to extend our deep appreciation to all of our sponsors without whose

support, the event would not be the same. Thank-you to all who contributed to making this

event such a great success.

Finally, thank-you to those who volunteered on the curling committee. These individuals are:

Joanne Sipka, Ian Ross, Donna Phillips, Mike Mork, Carla Luiken and Dave Laurie.

FIRST PLACE: the Meridian Land Trophy to: Ian Ross, Mike Lemire, Norm Ganes and Errol Stewart

SECOND PLACE: the Raymac Surveys Trophy to: Kevin Burke-Gaffney, Cindy Judd, Drew

McQueen and Mike Mooney.

THIRD PLACE: the All West Surveys Trophy to: Ward Nicholson, Tina Henderson, Colleen Allen

and Wes Engman.

FOURTH PLACE: the McNally Land Trophy to: Paul Pypers, Pat Burgess, Greg Bessey and

Dalton Dalik

Wiping up in last place, the Biffy award to: Guy Jones, Darren Gramlich, Sharon Gordon and

Tyler Samashkewich.

Button Sponsors:

McNally Land Services Ltd.

Raymac Surveys Ltd.

All West Surveys Ltd.

Canada West Land Services Ltd.

Benchmark Land and Mineral

Company Ltd.

Prairie Land and Investment

Services Ltd.

Meridian Land Services (90) Ltd.

Heritage Freehold Specialists & Co.

Touchdown Land Consultants Ltd.

Four-Foot Sponsors:

Caltech Surveys Ltd.

McElhanney Land Surveys Ltd.

Focus Surveys

Pioneer Land Services Ltd.

Scott Land & Lease Ltd.

The Cadastral Group

Standard Land Company Ltd.

All-Can Engineering & Surveys

(1976) Ltd.

Petroland Services (1986) Ltd.

Cavalier Land Ltd.

Miller Thompson

Canadian Landmasters

Horizon Land Services Ltd.

D.R. Hurl & Associates Ltd.

Fugro SESL Geomatics

Britt Resources Ltd.

Battle River Enterprises Ltd.

Midwest Surveys Inc.

IHS Accumap Ltd.

Canadian 88 Energy Corp.

United Safety

IDC Datashare Inc.

Lane Land Services Ltd

Maverick Land Consultants (87) Inc.

Northcan Surveys

Western Land Services Co. Ltd.

The CAPL 24th AnnualCurling Bonspiel

N

Margaret Wyonzek, Larry Loomes,Mert Hameister, Hank Radomski

This picture sponsored by CrestToothpaste. Mike Dabbs, TerryHenkelman, Mike Mork, Tiara Falica

First Place: Meridian Land Trophypresented by Mike Mork. Norm Ganes, Ian Ross, Mike Mork,Errol Stewart

The CAPL Education Committee is pleased topresent the following courses:

Drilling and Production Operations

April 10 & 11, 2001 8:30 a.m. – 4:30 p.m.

This course 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 cover 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 downhole

equipment. Production operations will cover production facilities and

equipment, methods of artificial lift and enhanced recovery techniques.

Management of Offshore Oil & Gas Resources on Canada’s East Coast

April 25, 2001 8:30 a.m. – 4:30 p.m.

This seminar will provide a valuable introduction to the East Coast

regulatory regime and Atlantic Accord Acts including such topics as the

land tenure system, rights issuance process, regulatory requirements

and procedures and related regulations.

Creative Negotiating

May 1 & 2, 2001 8:30 a.m. – 4:30 p.m.

This will provide the participants with the principles of the creative

negotiating model followed by discussions and practice sessions on

how to apply the model in order to achieve successful outcomes. The

instructor will deal with topics such as recognition of negotiable situa-

tions, development of effective strategies, establishing good working

relationships, assessing the power in a conflict, and countering the

strategic moves of the opposition.

Well Log Analysis for Landmen

May 8 & 9, 2001 Day 1: 8:30 a.m. – 4:30 p.m.

Day 2: 8:30 a.m. – 12:00 p.m.

Sessions will involve discussions on the well logging tools, basic geol-

ogy and basic well log interpretation with the introduction to Archie,

Wyllie, Waxman and Smits equations along with an understanding of

Rw, m, n, and ARI concepts. Participants will be given a "hands on"

workshop, to further enhance the understanding of how to get net pay,

porosity and hydrocarbon saturation.

AEUB Guide 56/60

May 15 & 16, 2001 8:30 a.m. – 4:30 p.m.

Public consultation under G56/60: Do you understand what’s required

when you make an application to the AEUB for a well license or

pipeline permit?

The Board believes that appropriate notification and public consulta-

tion must be conducted well in advance of the submission of an

application to the Board. It must be thorough and the public must

have sufficient information to participate meaningfully. The proponents

information must be extensive, consistent, factual and disclosed in a

timely way.

Acquisitions and Divestments – The Paper Chase

May 17, 2001 8:30 a.m. – 4:30 p.m.

Procedures, processes and tips necessary to properly time, evaluate,

create and disseminate the flow of paper, from beginning to end of an

acquisition, divestment or trade, will be covered. This will include

scheduling, due diligence, closing and post-closing responsibilities.

Documentation such as Land Schedules to the Purchase and Sale

Agreement and Right of First Refusal Notices, as well as numerous

specific conveyance, post-closing and tracking documents will be

reviewed. A comprehensive reference binder containing examples of

these items will be provided. N

Get Smart

For further information or to register, please contact the CAPL office at 237-6635 or e-mail dgrieve@landman.ca,

or complete the registration form provided on the blue insert and fax it to 263-1620.

What is the liability of

a company to clean up

a contaminated site

for which a reclama-

tion certificate had

been issued several

years earlier?

Many companies that operated oil and gas wells in the 1950’s and

1960’s, and received reclamation certificates once they ceased opera-

tions, are now being targeted by Alberta Environmental Protection

(“AEnv”) to clean up the sites which are still contaminated pursuant to

AEnv’s authority under the Alberta Environmental Protection and

Enhancement Act (“EPEA” or “the Act”).

On its face, it would appear that such activity would be unfair and

illegal as retroactive application of legislation (the EPEA came into

force in 1993). However, an analysis of the environmental legislation

may support AEnv’s authority. In general, liability under the Act is

status-based rather than fault-based. The Act, however, also embodies

the “polluter pays” principle which provides that the one who caused

the pollution, must pay to clean it up. The Act also provides for broad

liability and binds the Crown.

AEnv may issue an Environmental Protection Order (“EPO”) requiring

the responsible party to clean up contaminated sites under two divi-

sions of the Act: (1)

Contaminated Sites and (2)

Release of Substances.

These provisions differ with

respect to: (a) the defini-

tion of a “person

responsible”, (b) the

threshold required to incur liability; (c) the factors to be considered in

issuing an EPO; and (d) retroactive application.

Under the Contaminated Sites provisions, AEnv has the power to desig-

nate sites as “contaminated sites” notwithstanding that a reclamation

certificate has been issued in respect of that site. The Act provides for

a wide liability net in its definition of “person responsible for the

contaminated site”. Once a site has been designated as a contami-

nated site, AEnv may issue an EPO which may direct any person named

in the order to restore the affected environment (s.114).

Of particular interest are provisions which require the Director to

consider several factors when deciding whether or not to issue an EPO

against any particular person responsible for a contaminated site. The

application of these factors are critical as they may assist a company

in avoiding or minimizing liability.

As a practical matter, however, AEnv employs the Release of

Substances provisions to deal with abandoned sites that are still

Reclamation Certificatesand Continuing Liabilityfor Contaminated Sites

Ashley Evans,Associate, Bennett Jones LLP

N Pa g e 1 7oct 2000

contaminated. Similar to the Contaminated Sites provisions, the AEnv

may issue an EPO to the responsible party to clean up the site (s.102).

Unlike the Contaminated Sites provisions, the Director is not required

to consider fairness factors and the threshold for finding liability is

lower. Also unlike the Contaminated Sites provisions, AEnv is not

expressly authorized to apply these provisions retroactively. Moreover,

there is a general presumption against retroactive application of legis-

lation unless it is provided for expressly or by implication in the

legislation. Therefore, it is questionable whether AEnv has the legal

authority under these provisions to pursue clean up of contaminated

sites that have received reclamation certificates prior to 1993 unless

there is a current release.

The decision of the Environmental Appeal Board (“EAB” or “Board”)

in Legal Oil and Gas v. Director, Land Reclamation Division, Alberta

Environmental Protection (Appeal No. 98-009, July 23, 1999)

(“Legal Oil”) provides guidance on the retroactive application of

s.102. Legal Oil purchased a site which was contaminated by the

previous oil and gas company during its tenure as licensee of the

site. A reclamation certificate had not been issued to the previous

licensee. Some 30 years later, AEnv issued an EPO to Legal Oil to

clean up the site. On appeal, the Board held that there was an

“ongoing occurrence” of the contamination and that s.102 could be

applied retrospectively. On further appeal, the Alberta Court of

Queen’s Bench upheld the Board’s reasoning, having regard to the

fact that the purpose of s.102 was “protection of the public” rather

than to punish and thus an exception to the presumption against

retroactive application is appropriate. Therefore, this case suggests

that it is no defence to argue that contamination occurred prior to

the Act coming into force.

Despite the apparent “unfairness” of the retroactive application of

environmental liability, companies may take some consolation from the

situation in Ontario where the courts have recognized a “Doctrine of

Fairness”. The principle provides that although a party is legally liable,

i.e. as having care, management and control of a substance, in some

circumstances, it is unfair to impose full liability for contamination on

that party on the basis of several factors including: the extent to

which the party benefitted from the harmful activity; the degree of

influence the person could exercise in relation to the environmental

risks; whether the person exercised due diligence; and the degree of

the person’s contribution to the environmental problem. It is unclear

how far the “Doctrine of Fairness” goes in Alberta as it has not yet

been tested in this context. However, these are precisely the same

factors as set out in the Contaminated Sites section of the EPEA.

The Board’s decision in Legal Oil also suggests that fairness could be

considered in determining liability under s.102. Consideration of such

fairness factors could support an argument that additional parties

other than the licensee of record may also be liable for substance

release and resulting contamination. Further, unlike Legal Oil, the fact

that a reclamation certificate was issued lends support to a fairness

argument that should assist in minimizing a company’s liability. As

such a determination is fact specific, it is unclear how a court would

balance these fairness factors against the public interest.

A company may also argue that the purpose of reclamation certificates

was to provide certainty that the site was cleaned up. The issuance of

the certificate by the government can be characterized as, essentially,

a release of liability under section 127(3) of the Act. In addition, and

as the alternative, a company may argue that it had relied on the

reclamation certificate issued by the Alberta Government as evidence

that the site was not contaminated. It may be possible to argue that

the government was negligent in issuing the certificate and that the

government must bear the responsibility for the “botched” inspection.

The merits of such an argument are unclear as this provision in this

context has not yet been argued in court.

Impact on Companies In summary, there is broad authority under the EPEA to impose liabil-

ity for contaminated sites, notwithstanding that a reclamation

certificate has been issued for the site. All parties that have been or

are involved with the subject site are exposed to such liability. The

consideration of several “fairness” factors may assist in minimizing a

company’s liability. A determination of several facts including the role

of the third parties and their level of control of the site and

substances would assist in assessing the fairness factors. However, it

should be noted as well that getting a designation as a contaminated

site is not easy and AEnv will prefer to proceed under section 102.

Bennett Jones LLP has its roots in the legal practice of R.B. Bennett, Prime Minister

of Canada (1930-1935). Our professional practice encompasses virtually every sector

of business, industry and government.

Ashley Evan’s practice is focused on environmental and regulatory law issues and

includes work experience for oil and gas companies, telecommunications and electric

utility companies, and local citizen groups. Ashley provides advice on a range of

environmental and regulatory legal issues including environmental due diligence,

environmental assessments, environmental and regulatory approvals, contaminated

sites, pesticides and constitutional issues.

N

The 2000 CAPL Property Transfer Procedure ("PTP")

was endorsed by CAPL, CAPLA, PASC, PJVA and SEPAC in

late September, with over 55 customers also identified as

supporters of the document at that time. As the PTP is now being used

in transactions, this column will be included in The Negotiator for the next

several months to address questions and concerns of users as they begin

to work with the document. We have also included a detailed overview of

the PTP on CAPL’s website (www.landman.ca) as part of the associated

education effort.

The January-March columns addressed a mix of high level concerns and

perceived deficiencies specific to certain provisions of the PTP. This

month’s column addresses the opportunity of using the PTP as a means

to streamline transactions involving only undeveloped properties.

Using The PTP To Streamline Transactions Involving Undeveloped Lands

One of the growth areas in industry’s A&D activities in recent years has

been the application of asset management principles to industry’s inven-

tory of undeveloped acreage. Parties exiting an area or play have often

chosen to sell or trade their undeveloped holdings, rather than using the

more traditional farmout route to extract value for those assets.

Parties effecting those transactions quickly discovered that the tradi-

tional P&S Agreement is not suitable for the disposition of

undeveloped properties, largely because the P&S Agreement is prima-

rily designed to manage the parties’ respective rights and obligations

associated with production. As a result, those parties have typically

used a 5-12 page conveyance format for those transactions, such that

they are generally able to move from an agreement on price to the

finalization of the transaction on an accelerated basis.

In last month’s column, I expressed the opinion that the PTP should

be used instead of a conveyance form for transactions involving small

value non-operated producing properties and overrides. This is based

on my belief that the PTP can (and will) reduce significantly the effort

required to complete a sale agreement for those types of properties,

while also increasing greatly the level of protection and certainty in

the pre-closing period for both Vendors and Purchasers.

Having used a conveyance form of document for undeveloped lands

since the mid-1990s, I have the opposite opinion for transactions

involving only undeveloped lands. I believe that a conveyance format

should generally continue to be used for those transactions, since the

use of the PTP for those transactions would very seldom be an attrac-

tive option. The PTP would provide a breadth and depth of coverage

that is largely irrelevant to undeveloped properties, and would have

the practical effect of overly complicating and probably delaying what

should be industry’s easiest transactions to complete.

The PTP, however, is potentially a very helpful tool for the completion of

transactions involving undeveloped properties. By incorporating by refer-

ence specific provisions of the PTP that are relevant to undeveloped lands,

we were able to reduce our own undeveloped lands sale and trade docu-

ments by about 50%, while also greatly simplifying the other provisions of

the documents. The net effect of this approach is that our precedent for a

typical undeveloped lands sale is about 2.5 pages, plus the land schedule.

CAPL Property Transfer Procedure Update

It is our expectation that this approach will often allow like-minded compa-

nies to complete an undeveloped lands transaction in under 3 days with

minimal effort, particularly if dealing with 100% Crown leases.

To illustrate, assume that I am selling my entire interest in a simple

undeveloped lease for $75K. Provisions included to address that transac-

tion would be something such as the following:

• Parties, recital and execution provisions similar to those in the

Addendums to the PTP;

• Definitions of Agreement, Assets and Effective Date;

• Mutatis mutandis incorporation of various provisions of the PTP by reference;

• Definitions of: AFE, Business Day, Interim Period, Lands, Leases,

Losses and Liabilities, Miscellaneous Interests, Party, Permitted

Encumbrances, Petroleum and Natural Gas Rights, Petroleum

Substances, Regulations, Right of First Refusal, Specific Conveyance,

Title and Operating Documents;

• Interpretation Article clauses 1.03, 1.07 and 1.08;

• Distribution of Specific Conveyances clause 3.05;

• Maintenance of Business clauses 5.03 and 5.04;

• Reps and warranties clauses 6.01, 6.02 (optional reps (a)-(d), (f)-

(h), (j), (r) and (s) only), 6.04 and 6.05;

• Dispute Resolution Article (9.00);

• Indemnity and Liability clauses 13.01, 13.02 and modified 13.04;

• Notices article (15.00), with addresses for service identified in the document;

• Possibly the Confidentiality article (16.00); and

• Miscellaneous Provisions Article (18.00), other than 18.07.

• A one line clause referencing the Land Schedule;

• A 4 line clause addressing the conveyance and tax allocation;

• A 4 line clause addressing the delivery of files and Specific

Conveyances;

• An 8 line clause allocating obligations, etc. as of the Effective Date

and outlining a simple expectation as regards any adjustments, which

is premised on operations not then being conducted on the lands; and

• A 4 line maintenance of business clause confirming that the Vendor

hasn’t entered into new commitments following the Effective Date

without the Purchaser’s consent.

The agreement would be somewhat more complicated if the deal also

involved the retention of an ORR by the Vendor. However, this could be

handled very simply if the nine page 1997 CAPL Overriding Royalty

Procedure were used to document the ORR, since this approach would

only require a short clause in the Agreement and the inclusion of the

Overriding Royalty Procedure (or an election sheet therefor) as a

Schedule. (For context, the 1997 CAPL Overriding Royalty Procedure is

basically a parallel document to the 1997 CAPL Farmout & Royalty

Procedure that is intended to be used for non-convertible ORRs that are

not created under a farmout.)

The use of a conveyance form for undeveloped lands agreements and a

linkage of that form to the CAPL PTP standards allows landmen to handle

these transactions with much less effort, much greater confidence and on

a much shorter cycle than would typically otherwise be the case.

Jim MacLean

C A N - A M S U R V E Y S L T D .

403.269.8887

C A N - A M S U R V E Y S L T D .www.canam.com

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N

Alberta land sale update

FEBRUARY FEBRUARY 2001 > $1000.00/ha

BONUSES

FEBRUARY 2000 > $1000.00/ha

TOTAL # OF HECTARES SOLD IN FEBRUARY

GRAND TOTAL

AREA 2000 2001

126,145

PLAINS 100,276 33,556

NORTHERN 208,013 89,004

FOOTHILLS 26,129 3,584

334,418

AVERAGE $/ha

FEB '00$237.23

FEB '01$332.25

FEB '01$249.57

FEB '01$187.31

FEB '00$121.57

FEB '00$592.17

Medicine Hat

Calgary

Edmonton

Fort McMurray

High Level

11

10

20

30

102030

40

50

60

70

80

90

100

110

120

10201 11 102010

FOU

RTH

MER

IDIA

N

FIFT

H M

ERID

IAN

SIXT

H M

ERID

IAN

Northern Area

Plains Area

Foothills

Area

HOT SALE AREAS

Edmonton

High Level

20

30

40

50

60

70

80

90

100

110

120

1102011020110

FOU

RTH

MER

IDIA

N

FIFT

H M

ERID

IAN

SIXT

H M

ERID

IAN

Northern AreaFoothills Area

Calgary

11

10

102030

BON

USE

S IN

MILL

ION

S $

2000

20010

BON

USE

S IN

MILL

ION

S $

NORTHERN PLAINS FOOTHILLS

10

20

30

40

50

60

70

80

JAN

UA

RY

FEBR

UA

RY

MA

RCH

APR

IL

MA

Y

JUN

E

JULY

AU

GU

ST

SEPT

EMBE

R

OC

TOBE

R

NO

VEM

BER

DEC

EMBE

R

20

40

60

80

100

120

0

(2)(2)

(2)

(2)

(2)

(2)

(2)

(1)

(2)

(3)

(3)

(2) (2)

(1)

Total Average Bonuses Per Month Total Average Bonuses Per Area (FEBRUARY)

Months( ) number of sales per month

Medicine Hat

Plains Area

Fort McMurray

N Pa g e 2 1apr 2001

N

AprilGeneralMeetingV O T EElection Meeting for 2001-2002

CAPL Executive and Board of

Directors

Guest Speaker: Mr. EricHanson, AAPL President

Tuesday, April 24, 2001Westin HotelCocktails 5:00 PMDinner 6:00 PM

Members who have notreturned their completedballots to the CAPL Officecan deposit them with theCommissionaire at theMeeting until 6:00 PM.

Members must fax theirresponse as to their atten-dance to the CAPL office(263-1620) by 12:00 noon,Thursday, April 19, 2001.

Tickets for guests areavailable at the CAPLoffice until 12:00 noon,Thursday, April 19, 2001.Please contact the CAPLoffice for further information.

MayGeneralMeetingThursday, May 24, 2001Imperial Ballroom, HyattRegency HotelCocktails 5:00 PMDinner 6:15 PM

Guest SpeakerMr. John Carpay,Provincial DirectorCanadian TaxpayersFederation

Members must fax theirresponse to the CAPLoffice (263-1620) by12:00 noon, Friday, May 18, 2001.

Tickets for guests areavailable at the CAPLoffice until 12:00 noon,Friday, May 18, 2001.

Please contact the CAPLoffice for further information.

Meeting Announcements

N Pa g e 2 2apr 2001

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becomes information

new MEMBERSNew MembersThe following members were approved at the

February 6, 2001 Executive Meeting:

Applicant Current Employer SponsorsCraig Borgland Market Energy Inc. Kevin Chau

Kim McKay, P.Land

Wayne Wells, P.Land

Student Members

Carolyn Huggins Olds College Ron Reid

N Pa g e 2 4apr 2001

on the MOVE

Roster Updates

Randy Berg, P.Land

Numac Energy Inc.

to Anderson Exploration Ltd.

Dave Bernatchez

Numac Energy Inc.

to Independent

Alida deBoer, P.Land

Independent

to Marathon Canada Limited

Catherine Findlater

Numac Energy Inc.

to Anderson Exploration Ltd.

Sharon Gordon, P.Land

Sentinel Enterprises Inc.

to Penn West Petroleum Ltd.

Mark Lackie

Ranger Oil Limited

to Richland Petroleum Corporation

David Olsen

Gulf Canada Resources Limited

to Wascana Energy Inc.

John Ramescu

Vermilion Resources Ltd.

to Tempest Energy Corp.

Don Robson, P.Land

Renaissance Energy Ltd.

to Energy North, Inc.

Greg Sawchenko

Numac Energy Inc.

to Anderson Exploration Ltd.

Korby Zimmerman

TriGas Exploration Inc.

to Independent

On the Move

PLM MentoringProgram: Students’ Perspective

The PLM Mentoring Program was developed through the

initiative of the Canadian Association of Petroleum

Landmen (CAPL), the University of Calgary (U of C) and

the Petroleum Landman Undergraduate Society (PLUS). The

mentoring program provides benefits for both students and

mentors alike. Students gain enhanced education and practical

experience. Mentors gain the satisfaction of contributing to the

PLM program and the chance to meet up and coming landmen.

As the second year of the PLM Mentoring Program winds down,

students and mentors took the chance to reflect on their experi-

ences as mentors and protégés. To discover the “real” benefits

of the program I contacted a few mentors and protégés to find

out their thoughts of the program. Kyla Mumby and her mentor,

Harry Ediger of Storm Energy Inc., have developed a solid year-

and-a-half relationship as mentor and protégé. Kyla stated,

“Having Harry offer the opportunity for me to come and watch

and learn from him is something I have learned the importance

of as I have progressed through the PLM program. I now meet

with Harry at least once a week to work on Mentoring

Assignments, and watch him in action to learn more about the

landman profession. In addition, Harry also continues to extend

offers for me to attend lunches and other CAPL functions”. This

statement reflects what the mentoring program is all about. The

program can and does offer more than just an opportunity to

work on assignments; it should provide the protégé with a link

to the Landman community and to learn more about the land

profession aside from the day-to-day dealings in the office.

Harry Ediger sees the mentoring program as value-adding. “I’ve

been able to meet many of the up and coming landmen. It

reminds me of when I started and all the help I got from other

landmen. I see where CAPL and PLUS put the students way

ahead of me when I started with the topics they cover in the

classroom, their exposure to real life land departments and their

ability to make lots of good contacts through their contact with

working landmen. Students tell us some of the things they are

being taught and I am amazed at what they are expected to

continued ➔ p.25

know and how in depth much

of these topics are. I’m glad

I’m not in school. I tell

them my response to

most of their ques-

tions is ‘ask the

engineer or the

marketing guy’”.

I also spoke with

Steve Bradford

and his mentor

Jim McCormick of

Magin Energy Inc.

Steve said, “I’ve

been able to get to

know Jim on both a

professional and

personal level, and feel

that the opportunity will

exist to keep in touch when I

have graduated”. When asked

what he has learned from Jim, Steve

responded, “I have been able to get a

better overall picture of the different things that

landmen have to deal with on a day-to-day basis from continuing

education, to having to deal with public hearings. Not only have I

gained insight into various deal-making strategies, but also I have

seen how knowledge gained through land experience can be taken

and used for personal gains outside of the work place”.

A success story from the first year of the program is that of Jodi Gosling

and her mentor Brian Birchall of Anadarko Canada Corporation. When

asked what Jodi has learned from Brian she responded, “Credibility, and

that there isn’t always one way to do things. In addition, maintaining a

level of time spent towards networking is valuable”. Jodi also mentioned

that it is comforting to always have an

ally in the land community to bounce

ideas off and turn to for guidance.

One comment echoed by all

protégés is that it is a great

opportunity to get together

with your mentor and go for

beers on Friday afternoons.

Kim Schumann,

VP Operations, PLUS

The PLM Mentoring Program is always recruiting. Should you wish to consider joining theprogram as a Mentor or committee member, please contact any of the PLM MentoringCommittee members for further information:

Wayne Lannan Suncor Energy Inc. (269-8130)

Arnold Lee AEC Oil & Gas (515-2738)

Ted Lefebvre Corsair Exploration Inc. (237-5813)

Lawrence Fisher Anderson Exploration Ltd. (232-7622)

John Lawson Anderson Exploration Ltd. (232-7337)

Kim Schumann PLUS (220-4961)

Sandy Sandhar PLUS (220-4961)

Ann Dyer University of Calgary (220-2154)

Strategist, Coordinator, Facilitator. The

Vancouver Conference theme is not unlike

the work going on behind the scenes,

ensuring what we know will be another

successful conference. The Activities

Committee uses all three when planning

and executing an activities schedule that

will not only enhance your experience at the Conference itself but will

also ensure new and lasting relationships throughout the busy year.

Activities have been planned and prepared using experiences gained

from past Conferences, as well as input based on the Committee’s

ingenuity and imagination. This good work, coupled with a sense of

good time and camaraderie, have resulted in an activities program

that complements the rest of the Conference. The City of Vancouver,

listed as one of the most beautiful cities in the world, as well as the

prime location of the Westin Bayshore Resort, allows for an experi-

ence you won’t forget. Our activities cover a wide spectrum to allow

for the different interests of the delegates and are available within

close range of the hotel, if not right from the hotel dock itself.

The Conference kicks off with a Welcoming Reception at the world

renowned Vancouver Aquarium, which is within walking distance of

the Westin Bayshore Resort. Discover the diversity of the ocean while

savouring hors d’oeuvres and renewing acquaintances. To assist in a

“change of attitudes as well as latitudes”, our theme night on

Monday evening vows to be a night of fun and activities in a beauti-

ful setting along the pier adjacent to the harbour, surrounded by

yachts, sailboats and the songs of Jimmy Buffet. The Tuesday activi-

ties allow for a wide selection of interests and at the end of the day

you can experience what Vancouver has to offer on your own time

with some of the new contacts you have made. Our committee is

available to assist you with ideas of where to go and what to do.

Wrapping up a week of excellent speakers and programs, we are

pleased to present a night that is unlike most others offered in past.

The evening at the Westin Bayshore Resort promises to be the “place

to be” in Vancouver that night as we present a casual evening with

great food and the music of Juno award winner, Colin James. This busi-

ness casual evening with a party atmosphere allows for the bonding of

contacts and relationships built over the course of the conference as

well as an evening (with a few surprises) that you won’t soon forget.

Our committee has worked hard to ensure that there is something

for everyone, while still providing time to enhance your business

relationships in one of the most beautiful settings in the world. We

hope to see you in Vancouver.

Ron Vermeulen, Diane Jaques

Co-Chairs, Activities Committee – 2001 CAPL Conference

N

Activities Committee

Kathy Armstrong

Andy Gibson

Dave Horn

Jane McKinnon

Sharon Cooper

Gary Peddle

Ken Young

Brian West

Rob Drew

Steve Moran

Success Stories

Ladyfern prospect – shown and acquired at The Prospect Exchange. Slave Point play drilled after 3D, tested at over 60 MMCF/day

Last year over 600 deals were shown, encompassing over 1,500,000 acres

More than half of the exhibitors sold deals ranging in prices from $25,000 to $100 million

Project attendance of 125 exhibitors and 2000+ viewers

Various international attendees including Ecopetrol (Columbia)

Torch Canada Speaker’s Forum

Tom Budd, President, Griffiths, McBurney & Partners – No one is safe: the continuing takeover game

Jeff Errico, Executive Vice President & COO, NCE Resources – Funding of prospects from a royalty trust perspective, their successes and strategies

Dr. Robert Michaels, Cal State Fullerton – California’s electricity disaster and the future of competitive power

Peter Adams, President, Canadian Petroleum Institute – International opportunities and challanges

Ken MacDonald, President, Pulse Data Inc. – The explosion to success!!

Chris Slubicki, Managing Director, Waterous Securities – Update on A&D: what the future holds

Panel Discussion – Speakers to be announced – Growth by farmin

, Canada

N Pa g e 2 8apr 2001

AprilSunday Monday Tuesday Wednesday Thursday Friday Saturday

MaySunday Monday Tuesday Wednesday Thursday Friday Saturday

Gregg Scott , President

900, 202-6th Avenue SWCalgary, Alberta T2P 2R9Telephone: 403-261-1000Fax: 403-263-5263Scott Land offers its clients a network of six full-service offices. Each region is

managed by a long-time Scott Land professional. We offer a complete line ofservices, including freehold lease plays and surface projects of all sizes andtypes, administrative support including A and D projects and land sales.

Experience the difference!EdmontonTelephone: (780) 428-2212Facsimile: (780) 425-5263

ReginaTelephone: (306) 359-9000Facsimile: (306) 359-9015

LloydminsterTelephone: (780) 875-7201Facsimile: (780) 808-5263

Grande Prair ieTelephone: (780) 513-8540Facsimile: (780) 513-8541

Brandon Telephone: (204) 727-1511Facsimile: (204) 728-1622

A N e t w o r k o f S e r v i c e s

1 2 3 4 5

6 7 8 9 10 11 12

CAPL Calendar of Events

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

NegotiatorDeadline for

May

Offshore EastCoast

BC Land Sale

Alberta LandSale

SquashTournament

ElectionsMeeting

(Hyatt Hotel)

The ProspectExchange

President’sSpring Ball

Sask Land SaleExecutiveMeeting

CAPL OperatingProcedure

AB Land Sale

Drilling &ProductionOperations

NegotiatorDeadline for

JuneCreative

Negotiating

AB Land Sale

Well LogAnalysis

ExecutiveMeeting

Good Friday

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AccuMap's already extensive existing audience.

IHS Market Gateway - a new exceptional lead generator andevaluator, making it easier and faster than ever before.

Prospect Exchange - April 26 and 27Telus Convention Centre, Calgary

...at the PROSPECT

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CAPL April General Meeting

Elections

Westin Hotel

Date: Tuesday, April 24, 2001

Cocktails: 5:00 p.m.

Dinner: 6:15 p.m.

Cost: Members No Charge

Guest Tickets are $32.10 each (includes G.S.T.)

Fax Karin Steers at 263-1620 for guest tickets and confirmation.

All members are required to confirm their attendance by return fax. Only

guests are required to purchase a ticket. Please fax this order form and

guest tickets will be sent to your office with an invoice.

From: (Member's Name)

(Company Name)

I will be bringing guests ($32.10 per guest ticket) includes GST

Guest: (Name of Guest)

(Company Name for Ticket)

Guest: (Name of Guest)

(Company Name for Ticket)

Please confirm your attendance by faxing your response to the CAPL office at 263-1620

before 12:00 noon on April 17, 2001.

Thursday, May 24, 2001

Guest Speaker: Mr. John Carpay, Provincial DirectorCanadian Taxpayers Federation

Cocktails: 5:00 p.m.

Dinner: 6:15 p.m.

Location: Hyatt Regency Calgary

Imperial Ballroom

700 Centre Street South

Cost: No Charge for Members

Guests $32.10 includes GST

All members are required to confirm their attendance by return fax. Only guests are required to purchase a ticket. Please fax

this order form and guest tickets will be sent to your office with an invoice.

Registration Form (Fax to 263-1620) Attn: Karin Steers

From: (Member's Name)

(Company Name)

I will be bringing guests ($32.10 per guest ticket) includes GST

Guest: (Name of Guest)

(Company Name for Ticket)

Guest: (Name of Guest)

(Company Name for Ticket)

Please confirm your attendance by faxing your response to the CAPL office

at 263-1620 before noon on Friday May 18, 2001.

CAPL May General Meeting

Friday, July 20, 2001Canmore Golf & Curling Club

Texas ScrambleShot-gun Tee Off Times starting at 10:00 a.m. (sharp)

Name:

Telephone:

Fax:

Email:

Company:

Current Handicap: _____________ at ______________Club

or best three scores of 2000: ______________, ________________, ______________.

Shirt Size: Medium _________, Large _________, Extra Large __________

REGISTRATION IS ON A FIRST COME, FIRST SERVED BASIS, BASED ON RECEIPT OF REGISTRATION FORM AND CHEQUE TOGETHER.TOURNAMENT SIZE IS LIMITED TO 144 REGISTRANTS.

Fee includes: golf, dinner, cart and prizes: $93.46 + GST of $6.54 = $100.00Registration form must be accompanied by a cheque made payable

to PLM Alumni Golf Tournament.

Return this form with your cheque to:

Nathan MacBeyc/o Cypress Energy Inc.2700, 500 – 4th Avenue SWCalgary, Alberta T2P 2V6

NO POST DATED CHEQUES. NO REFUNDS AFTER JUNE 29, 2001.

Donations and sponsorship opportunities are available and are greatly appreciated.Please contact any member of the organizing committee.

11th Annual University of Calgary Petroleum Landman’sInvitational Charity Golf Tournament

All money raised goes directly to theBoys and Girls Clubs of Calgary

Please register the following individual for:

Name of Seminar

Name

Company

Address

Telephone Postal Code

CAPL Member Non-Member

Position

Experience

Education

Fee: GST: Total:

How did you hear about the course?

Negotiator DOB Nexus Mailout TableTalker Other

CAPL GST: R121989016

Note: One Seminar Registration per Form.

CAPLSuite 350, 500 – 5 Avenue S.W.

Calgary, Alberta T2P 3L5[ph] 403-237-6635 [fax] 403-263-1620

FOR OFFICE USE ONLY:

Received: Notified:

CAPL Course Registration Form