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.
|Published (Last):||15 March 2018|
|PDF File Size:||17.26 Mb|
|ePub File Size:||15.85 Mb|
|Price:||Free* [*Free Regsitration Required]|
The CAPL operating procedure contemplates a number of ways in which 1990 capl operating procedure joint proedure s can obtain a change in the operatorship: The question for present purposes is whether a challenger must provide evidence to support 1990 capl operating procedure capacity to meet that standard as part of its Challenge Notice. Implicit in this is the idea that the incumbent operator is better placed to identify where it might be possible to identify efficiencies.
Save my name, email, and website in this browser for the next time I comment.
This would leave too much to the auto-interpretation of the incumbent operator who would simply say that an inexperienced joint 1990 capl operating procedure could never have the competence to assume the operatorship. See the note here and consider posting something yourself or sending some feedback more anonymously to Professor Jennifer Koshan at koshan ucalgary.
Challenge Notices Under the Terms of the CAPL Operating Procedure |
The Decision Justice Colleen Kenny denied the application. Your email address will not be published. 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 oprrating the idea that there is a further condition precedent would make the challenge provisions 1990 capl operating procedure more than a dead letter.
The commentary to the CAPL is instructive:. About Nigel Bankes B. Chair of Natural Resources Law. In addition, PW was of the view that Diaz might be in default under 19990 agreement given the magnitude of unresolved receivables as between 1990 capl operating procedure and Diaz.
In addition to the three ways outlined above there procesure also the challenge provision in cl. Challenge notices under the prcoedure of the CAPL Operating procedure This case will be of interest to the oil and gas bar for two reasons. This later information detailed the specific costs savings but it also provided that Diaz would continue to retain an existing contractor thereby speaking belatedly to the ability to operate in safe and workmanlike 1990 capl operating procedure.
This is of course the standard expected of an operator and 1990 capl operating procedure cl. Diaz failed to support its Notice with the information required by cl. This case will be 1990 capl operating procedure interest to the oil and gas bar for two reasons. 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.
Leave a Reply Cancel reply Your email address will not be published. Since one is unable to quantify qualitative changes, the provision seems limited to financial opefating. The relevant commentary is essentially unchanged.
Challenge Notices Under the Terms of the 1990 CAPL Operating Procedure
First, the case provides some guidance as to the quality of the information that 19990 joint fapl must provide to support a challenge notice. The commentary to the CAPL is instructive: 1990 capl operating procedure challenge on the basis of terms and conditions, therefore, might in practice only be the right to challenge on the basis of overhead rates.
Discussion The CAPL operating procedure contemplates a number of ways in which 1990 capl operating procedure joint operator s can obtain a change in the operatorship: Proudly powered by WordPress. Justice Colleen Kenny denied the application.
CAPL Operating Procedure: Overview of Operating Issues
The case law suggests that a joint operator will face an uphill battle against an incumbent who wishes to retain its position: The commentary recognizes the difficulty that the challenger faces.
However, how can a challenger operahing 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?
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 1990 capl operating procedure proceeure assume the operatorship, that matter would have to proceed by way of statement of claim, discovery and trial. Member of the 1990 capl operating procedure Bar. Please click 1990 capl operating procedure for more information.
Given these practical difficulties one should perhaps be careful not to be too demanding of the information that the challenger must adduce in support of its challenge. PW took the position, in a timely way, that the Notice was deficient in that it did not provide sufficient information to assess whether the proposal was more favourable to the joint account or not, or if Diaz would be able to conduct operations in a safe and good and workmanlike manner.
But in this case the challenger seems to have provided only the barest information.