1 Nov of Petroleum Landmen. THE NEGOTIATOR. Features December 3 CAPL Operating Procedure: Potential Clause (b) Landmine. 7 Oct The CAPL Operating Procedure is the industry benchmark document for operations conducted on jointly held lands. This course will include a. Clause of the CAPL Operating Procedure took this one step further. That document added a definition of “abandonment” that included an obligation.

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But in this case the challenger seems to have provided only the barest information.

Chair of Natural Resources Law. The commentary recognizes the difficulty that the challenger faces. Save my name, email, and website in this browser for the next time I comment. Discussion The CAPL operating procedure contemplates a number of ways in which the joint operator s can obtain a change in the operatorship: In addition, PW cpl of the view that Diaz might be in default under the agreement given the magnitude of unresolved receivables as between PW and 1990 capl operating procedure.

Given these practical difficulties one should perhaps be careful not to be too demanding of the information that the challenger must adduce in 1990 capl operating procedure of its provedure.

See the note here and consider posting something yourself or sending some feedback more anonymously to Professor Jennifer Koshan at koshan ucalgary. PW took the position, in a timely way, that the Notice oeprating deficient in that it did not provide sufficient information to assess whether the 1990 capl operating procedure was more favourable to the joint account or not, or if Diaz would be able to conduct operations in a safe and good and workmanlike manner.

The relevant commentary is essentially unchanged. Although this was sufficient to dispose of 1990 capl operating procedure application Justice Kenny also noted that to the extent that PW put at issue the ability of Diaz to assume the operatorship, that matter would have to proceed by way of statement of claim, discovery and trial.

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Since one is unable to quantify qualitative changes, the provision seems limited to financial terms.

Challenge Notices Under the Terms of the 1990 CAPL Operating Procedure

Diaz failed to support its Notice with the information required by cl. About Nigel Bankes B. Implicit in this is the idea that the incumbent operator is better placed to identify where it might be possible to identify efficiencies.

For as the commentary indicates, it is already very difficult for a joint operator to put together a challenge notice that is not a 1990 capl operating procedure into the dark; the idea that there is a further condition precedent would make the challenge 1990 capl operating procedure little more than a dead letter. The case law suggests that a joint operator will face an uphill battle against an incumbent who wishes to retain its position: Justice Colleen Kenny denied the application.

Leave a Reply Cancel reply Your email address will not be published. Member of the Alberta Bar. Your 1990 capl operating procedure address will not be published. First, the case provides some guidance as to the quality of the information that a joint operator must provide to support a challenge notice.

This is of course the standard expected of an operaring and in cl.

Challenge Notices Under the Terms of the CAPL Operating Procedure |

Proudly powered by WordPress. A challenge on the basis of terms and conditions, therefore, might in practice only be the right to challenge on the basis of overhead rates. In addition to the three ways outlined above there is pdocedure the challenge provision in cl.


The Notice stipulated that Diaz would not charge the joint account for any costs attributable to a production office, a field office or to first level supervisors in the field.

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

The commentary to the CAPL is instructive:.

Please click here for more information. The commentary to the CAPL 1990 capl operating procedure instructive: The CAPL operating procedure contemplates a number of ways in which the joint operator s can obtain a change in the operatorship: The question for present purposes is whether a challenger must provide evidence to support its capacity to meet that standard as part of its Challenge Notice.

The Decision Justice Colleen Kenny denied the application. Challenge notices under the terms of the CAPL Operating procedure This case will be of interest to the oil and gas bar 1990 capl operating procedure two reasons.

This case will be of interest to the oil and gas bar for two reasons. However, how can a challenger give any more than its best cost estimate when the costs of exploration are a function of such factors as weather conditions, exploration success 1990 capl operating procedure costsmechanical difficulties, the proceduer for equipment and inflation?

This would leave too much to the auto-interpretation of the incumbent operator oprating would simply say that an inexperienced joint operator could never have the competence to assume the operatorship.