JVViews: May 2014 Issue
Editor's NoteA Note from the Editor...
The PJVA previewed its newest model agreement at the Early Morning Session on April 30th. Like all of the PJVA model agreements, this is a guide meant to be applicable in most situations.
PJVA thanks Jan McLean for introducing the Production Administration Service Agreement to attendees. This agreement defines the specific relationship between the licenced "operator"/Owner of the "Sources", sending the production to a facility "operator"(the Administrator), who will be responsible for reporting the volumes. This agreement is specific to the situation where an entity other than the Administrator is "operating" (turning the valves) on the Sources. The Owner of the sources retains control of the Sources and is responsible for providing production data to the Administrator. The Administrator retains control of how the Service (reporting) is provided.
Some key points:
- The use of the words Source to identify the source of reported production volumes rather than the words well or facilities and event distinguishing the producing zone.
- Regulatory permitted commingled volumes are one source.
- Maintaining well status and associated Regulatory compliance for the identified status is the responsibility of the Owner. Reporting is required for all wells unless the status indicates: standing, suspended, abandoned and closed. In other words, the Administrator must continue reporting even when production is zero (0), if the status indicates the well is producing or capable of producing.
- Term - the normal thirty day termination is included, however, the agreement remains in effect as long as reporting is required.
- Exhibit "D" - Modifications takes precedence over the body of the agreement. If changes to the body of agreement are not identified on Exhibit "D", they are not enforceable
One concern identified during discussion is the fact that Petrinex allows the ability to back date the suspended well status. To avoid potential disputes, companies need to ensure they can provide documentation for required reporting periods.
The model Production Service Administration Agreement is now available on the PJVA website.
PJVA is looking for member feedback - is there a need for a receipt point agreement? A few companies have approached the PJVA to develop an agreement which will define the relationship for providing information for reporting and remedies to address situations where incorrect information is provided. Please contact Task Force Director, Martine O'Connor, with your comments.Joan Lee
2014 Task Forces Update
May 2014 - Update
The Agreement Monitoring Committee would like to update the membership on the status of our Task Force Groups. It is another very busy year for the PJVA members involved with the Task Force portfolios. I would like to thank each of the volunteers for their time and effort spent on developing new and updating current PJVA Module Agreements, your time and effort is much appreciated!
The Agreement Monitoring Committee, (AMC) is a standing committee tasked with the review and maintenance of existing model agreements, as well as the identification of additional required model agreements. This AMC is also responsible for monitoring the use of the PJVA model agreements and the need for education or discussion of them. This year, the AMC will work in conjunction with the CO & O Task Force and the Emulsion Handling Agreement Task Force. Our committee meets every month and is made up of the following members:
- Cindy McIvor
- Karen Hall
- Richelle Lindsay
- Marilyn McAvoy
- Jan McLean
- Martine O'Connor
- Trevor Ross
- Adrienne Krukoff
Currently the AMC group finalized a Production Accounting Agreement. I would like to thank the AMC members for all their hard work and dedication in getting this agreement finalized. It can be found on the PJVA website for industry to use. We are in the process of reviewing the need for a Receipt Point Agreement and will advise the membership of the outcome in due course.
Any issues with the current PJVA model agreements, questions about model wording and of potential new model agreements may be referred to any member of the Agreement Monitoring Committee.
The Emulsion Handling Agreement Task Force (EHA), led by Marcel Savoie, is very close to completion of the agreement and has submitted it to the PJVA Board members for approval. I would like to thank the EHA Task Force for all their hard work and dedication in getting this agreement so close to finalization so that it can be used by PJVA members in the very near future. Watch out for upcoming EMS and mini seminar to introduce the agreement and watch for the agreement on line to begin using in the industry shortly. Great Job to the EHA Task Force! The EHA Task Force is made up of the following members:
- Deidra Garyk
- Tanis Kalynchuk
- Marcel J. Savoie
- Beth Swift-Hill
The CO & O Agreement Committee, led by Tim Reimer, is working hard to get us an updated version in the very near future. I would like to thank all those that are assisting in getting the CO&O Agreement updated, thank you for all your time and effort, it is much appreciated. The CO & O Agreement Task Force formed several separate committees to handle the different parts of the CO & O and the individual Appendices within the agreement. We hope to have an updated version in the later part of 2014 or early part of 2015. The CO& O Agreement Task Force (main group) is made up of the following members:
- Carrie Fyfe
- Nick Harris
- Crawford Hutchinson
- Jan McLean
- Lynda MacNeil
- Ib Moller
- Tim Reimer
- John Rothwell
The main Task Force Committee and 13 subcommittees meet on a regular basis.
Director, Task Forces
PASC June Luncheon
Wednesday, June 18th at the Calgary Petroleum Club - a presentation by Cameron Gingrich and Dr. Lev Virine, Ziff Energy as they present on "Full Cycle Cost of Oil & Gas".
Cameron Gingrich, B.Sc., B.A. - Director, Gas Services, has a decade of natural gas experience. Responsible for analytical support and in- depth customized data analysis, trending, and modeling. Focuses effort toward the North American Gas Strategies Retainer Service, multi-client studies, and custom consulting projects include: analysis of pipeline tolls, gas supply/storage load duration modeling, gas demand outlooks, and gas price modeling. Mr. Gingrich was the lead analyst on the Northern Gas and Evolution of Dawn Multi-client studies, and authored papers on: Summer Gas Storage Analysis, Canadian Gas Exports to 2025, Natural Gas Price Forecast to 2045, and LNG Outlook to 2035. In addition to the Canadian Securities Course, Mr. Gingrich has two degrees: a Bachelor of Science from the University of Alberta and a Bachelor in Arts in Economics from the University of Calgary where his studies focused on strategic energy and financial markets.
Dr. Lev Virine, P.Eng., Ph.D. - Manager, Gas Consulting, has over 2 decades of technical experience, economic evaluation of oil and gas reserves, decision and risk analysis, portfolio management, and oil and gas reserves management. He assisted leading national and international exploration and production companies in establishing reserves evaluation and decision analysis processes. Dr. Virine is the author of more than 40 scientific papers and articles, 7 patents, and two books. His current focus is gas production outlooks, gas supply decline analysis, and full cycle cost assessment. He has spoken at conferences and symposiums around the world. Dr. Virine received his doctoral degree in engineering and computer science from Moscow State University of Railway Engineering.
Presentation Summary: The costs for the Energy Industry to find, develop, produce, and manage oil and gas production has 3 key components:
- Technology enhancements improve industry performance
- Finding & Development costs can shrink with more reserves identified for each well (multi-lateral horizontal wells completed with dozens of hydraulic fractures)
- Operating costs can be driven down through ruthless efficiency gains extracted by applying best practices, benchmarking, and determined focus on the bottom line
By combining the cost components, full cycle costs can be compared between Western Canada and other basins throughout North America. The industry will systematically develop lower cost basins first. Natural Gas Liquids can provide an important price uplift for gas producers, thus producers may select liquid prone regions first. The presentation concludes with a quick recap of LNG, full cycle oil & gas costs, along with oil sands cost. If you want to get a concise version on full cycle costs, this is the Event for you.
Registration: Secure Online Registration
25th Annual Golf Networking Event
This year the event will be hosted at the Hamptons for the 25th Anniversary! Congratulations to our early bird winner Tanis Kalynchuk from ARC Resources!
Date: Wednesday, June 4, 2014
Complimentary BBQ lunch - 11:30 am
SHOTGUN START - 1:00 pm
Location: The Hamptons Golf Club
69 Hamptons Drive NW
(off Country Hills Blvd NW)
TEXAS SCRAMBLE TEAM FORMAT (limited to 128 players)
(Proper Golf Attire: soft spikes, shorts 6" inseam)
Member News Section
PJVA is considering a "member news section" to track notifications of members on the move, retirements, etc. These announcements would be reviewed by PJVA to ensure appropriateness and would be published only with the individual's written permission. Please contact either Connie Pruden or Joan Lee with thoughts, concerns or announcements for publication.
PJVA/GPAC Joint Conference
21st Annual PJVA/GPAC Joint Conference
Proposals for topics and speakers for the 2014 conference are now being accepted!
The PJVA conference committee is continuously looking for interesting topics and speakers for the annual conference. The PJVA invites you to submit ideas on topics for a possible presentation or panel discussion. Please send your ideas to Brooke Archibald at Brooke.Archibald@shell.com.
1995 Annual Report RequestIf anyone has a copy of the 1995 Annual Report could you please forward a scan or original to the PJVA office. It will be in preparation of the 25th Anniversary Golf Networking event!
Luncheon Director's NotePlease continue to foward your input on the past year's luncheons as well as any ideas of topics or speakers you would like to see for 2014.
Your input is important as the PJVA wants to offer a variety of luncheon presentations that are of interest to the most important aspect of our association - YOU!
We had a variety of topics since September when I took over; from legal, to software to technical. Here's your chance to voice your valued opinion!
- How did you find the past year's topics?
- What would you like to see in the future?
- Are there past luncheons you would like to see revisited?
- Do you know someone who is looking to present?
Cheers to an exciting 2014! Richelle Lindsay
Luncheon Director, PJVA
June 19, 2014
Pub Networking Nights
Aug 28, 2014
Sep 11, 2014
Intro to JV Accounting - May 27, 2014
25th Annual Golf Networking - June 4, 2014
eStudies and Web Based LearningPJVA has a suite of web based courses geared towards practicing and prospective JV professionals and personnel involved in the development and operation of a Joint Venture facility. These courses, available via the eStudies link at www.pjva.ca, are a supplement to the Joint Venture Certificate Program offered through PJVA and Mount Royal University. The courses offered on eStudies are identical to the courses offered at Mount Royal, the only distinction being that the Mount Royal courses are applicable towards the Joint Venture Certificates while eStudies are not. As well, the eStudies courses are offered in segments such that the student can customize and streamline their learning experience. eStudies courses include Joint Venture Agreements, with modules in Construction, Ownership and Operating Agreements, Unit Agreements, and Service Agreements, Joint Venture Administration as well as Joint Venture Analyst Levels 1 and 2. The Agreements courses offer excellent background knowledge to anyone who works with or is bound by a Joint Venture Agreement. Joint Venture Administration details exactly how work is to be conducted within the legal framework of Joint Venture agreements. The Analyst courses provide understanding of Joint Ventures techniques and processes. PJVA is excited to offer customizable and accessible web-based learning options to industry professionals. Check out www.pjva.ca today and click on eStudies!
Looking for a New Opportunity?Check out the PJVA Job Board for recent postings.
PJVA LinkedIn® GroupPJVA is now on LinkedIn®, the world's largest professional network. It's a great way to stay connected and exchange ideas with other PJVA members and industry professionals.
Click here to join the discussion!
PJVA was incorporated in 1985 to represent individuals and organizations involved in petroleum joint ventures. JVViews is published to keep members informed about upcoming PJVA and industry events, courses and seminars offered and/or sponsored by PJVA and current projects being facilitated by the Association.