What:

The initial draft of the joint PJVA-CAPL Pad Site Sharing Agreement was released at the end of April.

This document reflects a shared belief by the PJVA and CAPL that the only efficient and effective way to address the growing issue of shared well pads without any agreements in place is to create a precedent document that can be used as a starting point for the vast majority of pad sharing agreements.

The document also reflects a shared belief that pad sharing arrangements are much more complex than is typically perceived to be the case.  They may initially appear to be a simple surface sharing arrangement designed to decrease the environmental footprint and to enhance operating efficiencies.  The cost of the construction of the Pad Site and the installation of the shared facility to manage production on an ongoing basis will also typically be very modest relative to the investments in the wells.  The relationship of the owners is much more complex, though, because of the issues resulting from differences in ownership between the Pad Site (and the related common facility) and the wells located on the Pad Site (e.g., cross-indemnifications, a staged abandonment, enlargements).

This information session will offer context about such matters as: (i) the issues the joint PJVA-CAPL Task Force perceives with the current approach of not documenting pad site sharing arrangements; (ii) the use of the PJVA CO&O precedent as a starting point for the document (as updated by some of the recent work on the 2007 & 2015 CAPL Operating Procedures where applicable); (iii) our vision for the process to move the project to closure; and (iv) the manner in which the Task Force currently proposes to address the relationship of the parties involved in a Pad Site sharing arrangement.  Because there is no admission fee for this session, please make a copy of the applicable materials by going to the following hyperlink on the CAPL webpage:

http://landman.ca/resources/industry-news/

The purpose of the discussion is to increase awareness of the issues, to provide a context for the draft materials that were distributed to industry and to build engagement for the review of our drafts and their ultimate use by your companies in due course.

Attendance at this session will also provide you with real time insights about industry's initial reaction to the project.

We hope that you will choose to attend this information session.

Instructors:

Jim MacLean (CAPL), Michael Bruch (PJVA) and Lorraine Grant (CAPL, PJVA)

Please email dgrieve@landman.ca or call the CAPL Office at 403 237-6635 to register.

Note:  If you register and then are unable to attend, please let the office know so we can fill your spot!