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

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The commentary to the CAPL is instructive:. 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. Challenge notices under the terms of the CAPL Operating procedure This case will be of interest to 1990 capl operating procedure oil and gas bar for two reasons.

The Decision Justice Colleen Kenny denied the application. This is of course 1990 capl operating procedure standard expected of an operator and in cl. The commentary recognizes the difficulty that the challenger faces. See the note here and consider posting something yourself or sending some feedback more anonymously to Professor Jennifer Koshan at koshan ucalgary.

Your email address will not be published. Cwpl relevant commentary is essentially unchanged. Please click here for more information.

For as the commentary indicates, it is already very difficult for a joint operator to put together a challenge notice that is not a leap into the dark; the idea that procwdure is a further condition precedent would make the challenge provisions little operafing than a dead letter.

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Challenge Notices Under the Terms of the CAPL Operating Procedure |

First, the case provides some guidance as to the quality of the information that a joint operator must provide to support a challenge notice. Chair of Natural Resources Law. Given these practical difficulties one should perhaps be careful not to be too demanding of 1990 capl operating procedure information that the challenger must adduce in support of its challenge.


The CAPL operating procedure contemplates a number 1990 capl operating procedure ways in which the joint procdure s can obtain a change in the operatorship: Leave a Reply Cancel reply Your email address will opefating be published.

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Since one is unable to quantify qualitative changes, the provision seems limited to financial terms. Proudly powered by WordPress. But in this case the challenger seems to have provided only the barest information. In addition, PW was of the view that Diaz might be 1990 capl operating procedure default under the agreement given the magnitude of unresolved receivables as between PW and Diaz.

Justice Colleen Kenny denied the application.

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. Diaz failed to support its Notice with the information required by cl.

Challenge Notices Under the Terms of the 1990 CAPL Operating Procedure

Discussion The CAPL operating procedure contemplates a number of ways in which the joint operator s can obtain a change in the operatorship: The case law suggests that a joint operator will face an uphill battle against an incumbent who wishes to retain its position: 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 testing costsmechanical difficulties, the demand for equipment and inflation?

A challenge on the basis of terms and conditions, therefore, might in practice only be the right to challenge on 1990 capl operating procedure basis of overhead rates.


1990 capl operating procedure

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

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This case will be of interest to the oil and gas bar for two reasons. This would leave too much to the auto-interpretation of the incumbent operator who would simply say that an inexperienced joint operator could never have the competence to assume the operatorship. The commentary to the CAPL is 1990 capl operating procedure In addition to the three ways outlined above there is also the challenge provision in cl.

PW took the position, in a timely way, that the Notice 1990 capl operating procedure deficient in that it did not provide sufficient information to assess whether the proposal was more favourable to the joint account or not, or if Diaz would be able to conduct operations in a safe and good and workmanlike manner.

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

Implicit in this is the idea that the incumbent operator is better placed to identify where it might be possible to identify efficiencies.