February 2017
President's NoteEditor's Note
February Lunch
Contracts Corner
PJVA/PASC/SPE Joint Luncheon
Facilities 101
January Early Morning Session Summary
Volunteers in Action
President's Note
In the tradition started last year by Marcel in the first Presidents Note, happy new year! Unfortunately, as was also started by Marcel last year, we wish a not very fond farewell to last year, and look to 2017 with guarded hope.
Rather than another industry forecast, of which we’ve all read far too many, I’m simply going to thank all of the PJVA board, committee, volunteers, members and contributors for keeping our association alive and healthy; and give a mid-year (PJVA runs July to June) update on some of the accomplishments and actions we’re proud of.
We continue to work with SAIT to complete the transition of our PJVA courses from Mount Royal. Like any major change, there are unforeseen obstacles, but Michelle Thoen, Helen O’Brien and Tracey Moore-Lewis have all worked diligently alongside our BaseCorp partners to update and revise all of the materials. The copyright and IP world has changed dramatically since we first created the course material almost a decade ago, and while it’s a lot of work, it will be good to have it all up to current standards.
We had a sold out classroom for the premier Facilities 101 course put on by newly awarded lifetime member Rein Evelin and co-instructor Marie Mislan. I’ve read through the classroom comments, and for the first time this course was run, they are simply fantastic! If I can get a jump on our marketing team, one of the first comments to jump out at me was
…it was excellent! I have been waiting for a course like this for the past 10+ years.
We have implemented a new membership rate for members who are between jobs; to help them stay current while seeking new opportunities. We have absolutely exceeded our luncheon expectations, holding more joint luncheons with other associations, and with a simply outstanding lineup of speakers!
Projects that are in progress include a Canadian energy association’s joint event calendar that will be a one stop shop for listing and registering for events from a multiple of related energy industry groups. Debuting with several associations, PJVA is organizing and building this and will continue to add other associations to allow members from all to go to one website to see what events are happening with associations across our sector.
Finally, as many of the long-time members will remember, we’ve been circling the idea of a mentorship program for over a decade. Well, the undertaking of interviewing, matching, and managing the mentors and mentees was always far too large and complex for the volunteer board to attempt manually. Luckily, now there’s an app for that! Our Strategic Advisory Group has recently accepted the challenge of reviewing the commercial options and moving forward with a mentorship program now that technology has solved a lot of the challenges we couldn’t manually overcome. Stay tuned for more!
As we move into the second half of our year, I’ve already started succession planning for next year’s board, and I’m happy to report that this great group of people will continue relatively unchanged into next year. We have a very strong team that works so well together, it really is a pleasure to be part of. However, in that light, if you would like to take on a larger role in helping the PJVA, we’re always happy to welcome you to the team, and we have a number of committees that would love another member. Please e-mail myself at josh.carter@cnrl.com or Connie at pjva@pjva.ca.
I want to thank every one of you for your support of the association over the years; it truly is a blessing to be a part of it!
Josh Carter P.Eng
Editor's Note
Happy belated new year everyone! Welcome to 2017 – a new year, a new set of challenges and opportunities, and a good time to revisit some thoughts on goal setting.
Setting goals, whether personal or professional, is often a difficult skill set for people to develop. As many of you already know, studies show that physically writing down a goal makes it more real and tangible to the goal setter. When setting goals, following the SMART guidelines will also help achieve success.
- Specific
The goal should be clear and explicit. State exactly what do you want to achieve
(who, what, where, why). - Measurable
The goal needs to be measurable. How will you track your progress and evaluate the extent to which the goal has been met? - Attainable
The goal should be achievable but challenging. Is it set high enough to be motivating or too low to be easy and meaningless? - Relevant
- Timely
The goal should be relevant for you and/or your company and aligned with where you want to go. How does the goal tie in to your key responsibilities and/or personal objectives?
The goal must have a time limit, either a date or an elapsed time. By when do you want to achieve your goal? The time frame must be aggressive yet realistic.
Once the goal is clearly defined, create an Action Plan. Write down exactly what needs to be done and by when to accomplish your goal. Break it down into smaller, more definable goals if necessary. Stop and review your progress often – is the Action Plan working or is there something that needs to change? Reward yourself along the way for the small steps achieved and remember how good it will feel when your goal is realized!
Don't wait to start tomorrow or next week – start your goal setting today. And here are some thoughts to ponder during the process…
- A goal properly set is halfway reached.
- It’s better to be at the bottom of the ladder you want to climb than at the top of the one you don’t.
- The greater danger for most of us isn’t that our aim is too high and miss it, but that it is too low and we reach it.
- We are kept from our goal not by obstacles, but by a clear path to a lesser goal.
– Zig Ziglar
– Stephen Kellogg
– Michelangelo
– Bhagavad Gita
A new year is on the way and the possibilities are yours. We at PJVA wish you all success in the coming year.
Continuing the Dialogue on Carbon Taxes
February 16, 2017
2017 is another year of challenge and we all may be reeling from the latest declarations in the news regarding the industry. Can the O&G Industry really remain competitive with the implementation of a Carbon Tax? What will be the Administrative burden?
Next month, at the February 16, 2017 PJVA Luncheon, we will be digging deeper into the topic of Carbon Taxes and hosting Price Waterhouse Cooper’s Tax Specialist team once again to further analyze the impact of regulations and investigate the government incentive and credit programs that O&G companies can access to minimize the impact of the Carbon levy on your company and maximize cost saving.
The PJVA is collaborating with The Petroleum Accountants Society of Canada and the Institute of Internal Auditors to bring together Financial, Operations and Commercial in the same room for discussion on New Carbon Tax strategies, exemptions, rebates and credits with PWC’s team of Tax Specialists.
Contracts Corner
It’s a brand new year and the JV Administration Corner is launching 2017 with a brand new name, Contracts Corner. The JV Administration Portfolio Task Force decided this name better represented the content and intention of this Article.
This is a forum where we can share information and talk about all things related to contracts; such as clause interpretation and definition, impacts of not adhering to contractual commitments, how to navigate special situations, bring to the forefront any contractual issues that may be ambiguous and to communicate and gain feedback on Best Practices that support the consistent upkeep, communication and administration of our PJVA Model Agreements.
To start off 2017, let’s talk about AFE inaccuracies. These can cause a lot of extra work for a lot of people (AFE Coordinators, JV Admin, JV Reps and Accounting professionals). As Operator, why not take a few extra minutes to ensure your AFE is accurate before the AFE leaves your office. Here is a list of critical information required:
- Is the Cost Centre Correct?
- Is the DOI correct (Opex DOI vs. Capital DOI)?
- UWI and/or Locations are correct?
- Does the AFE Description make sense?
- Does it answer all questions that a partner may ask in order to approve the project?
(who, what, where, why)
- Does it answer all questions that a partner may ask in order to approve the project?
Time wasted on cancelling/re-issuing AFEs due to minor errors or lack of information can add up to thousands of dollars in G&A burn. Not to mention delays in project starts and collecting your money.
As JV Reps, Analysts or Administrators, we have the opportunity to identify any required corrections. It is far more efficient to take the extra time to make corrections before the AFE is issued to partners. Save yourself some time and energy – be diligent and aim to get it right the first time. A whole lot of people in a lot of other departments will thank you for it. So will your partners!
Coming Soon
Coming Spring of 2017 are the Mail Ballot Template Letters. Please stay tuned for this exciting new addition to the suite of Administration Portfolio template letters, which are already available for use.
Ask a Question/Feedback
Do you have a question about an agreement? Do you constantly get stumped with the same Agreement clause? Do you have something to share about a unique contractual situation you have dealt? We want to hear from you.
Please send in your questions or feedback to admin@pjva.ca.
PJVA/PASC/SPE Joint Luncheon
March 22, 2017
Calgary based Inter Pipeline Inc. was the subject of a recent article in JWN Energy titled Midstream by far the most optimistic part of Canadian oil and gas going into 2017: Oilweek outlook survey. In that article, they made an interesting statement:
Inter Pipeline is an example of where midstream in Canada is headed.Inter Pipeline Inc. recently acquired two plants, a fractionator and a 490 km pipeline connecting them from Williams Energy Canada. With this acquisition, Inter Pipeline also assumed responsibility for the construction of a $1.85 billion propane dehydrogenation (PDH) facility and they are currently assessing the commercial viability of an additional propylene to polypropylene conversion facility.
Join us for a PJVA/PASC/SPE Joint luncheon on March 22, 2017 and hear Amelie Delisle, PDH Commercial Manager at Inter Pipeline, speak about Growth in PetroChemicals – Adding Value to NGL’s in Alberta.
SpeakerAmelie Delisle, PDH Commercial Manager at Inter Pipeline
Facilities 101
The long awaited Facilities 101 course was offered at the PJVA office on January 19, 2017 and January 20, 2017 to a sold out crowd! We apologize to all that were on the waiting list. We will offer the course again this year and will contact each of you when we know the dates.
PJVA would again like to thank Rein Evelein and Marie Mislan for taking time to help create this lecture course, but also to work with their colleagues and family (Teresa Waddington) to design it and then teach it. Their collaboration is a remarkable show of innovation and true joint venture community spirit!
This course will be offered again very soon.
January Early Morning Session Summary
Stay in Control – Dispute Resolution
The Early Morning Session held on January 25th was moderated by David B. Savage and Lynda MacNeill David is a founding member of and the Chief Collaboration Officer for the Collaborative Global Initiative and as a guest speaker, facilitator, collaborator and radio talk show host, Dave engages his audiences from a different perspective – that of offering insight awareness and vision while promoting accountability towards building better business relationships. Lynda MacNeill is well known for her volunteer contribution to industry associations over her career. Lynda believes that to get people on the same page, one needs to give them a page to get onto. With a passion for equipping people and facilitating understanding of our complex business, Lynda continues to apply her unique perspective to authoring and/or contributing to over 25 industry guidance documents and courses. Lynda has also developed or co-authored several workshops and courses to aid in the development of JV professionals with the hope that through equipping and elevating people through education and knowledge sharing and simple messages, complex issues and disputes can be broken down and resolved more readily. Lynda is an active member in the PJVA, C2C ADR Council, PASC, COPAS and is an Honorary Lifetime Member of both PJVA and PASC.
The presentation started off by asking key questions to the audience regarding dispute resolution; What kinds of disputes do you deal with regularly? What are the root causes of the majority of them? Where do you feel most challenged when trying to present your perspective to another party? What do you wish will change? Dave and Lynda discussed the sources of conflict using the idea of The Funnel of Disputes. This is the source of disputes which includes avoidance, power imbalance, failed negotiation, litigation which then leads to growing costs, time and uncertainty. At this point, Dave and Lynda described how things get personal and the level of frustration increases. The speakers did an excellent job presenting on the ‘Situation Assessment Process’ that can help companies in their negotations. The process scale showed one extreme of positive negotiating vs negative assessments. The process scale included company to company consultations, facilitation and mediation which are low cost, less formal and interest based compared to the process of arbitration and litigation where parties have less control over the decision making process which becomes very costly for all parties involved.
Another highlight of the EMS was the opportunity for the audience to list current issues companies are dealing with when negotiating with other parties. These issues were captures by Lynda on a flip chart which led to a great discussion between the speakers and the audience. Some of the most notable concerns in the industry were items such as low dollar disputes, time consuming audit queries, statute of limitations, limited resources at companies and litigation. A very valuable portion of the EMS was breaking out into groups of four and discussing how people’s respective companies currently dealt with dispute resolution in existing CO&O and other JV Agreements. The major consensus was that most companies conduct a situation assessment during negotations which then leads to mediation, however, very few companies move forward with arbitration and litigation as it can be very costly and time consuming. I really enjoyed how David provided a great overview of the C2C ADR Situation Assessment Meeting process. He highlighted key points companies must look at when identifying the best available resolution choices. A company should ask the 7 W’s. Where are we? What got us here? What are the challenges that have hindered resolution? What are the costs? What neutral third party might we access? What are the options for resolving the dispute and what is our Action Plan that we are accountable to each other for?
The EMS was very beneficial to our members as we are seeing an increase in disputes between companies as a result of the current economic environment. Dave and Lynda did an excellent job engaging the audience with thought provoking questions and using specific examples of common JV disputes such as failure to pay approved expenditures, unresolved audit claims and rights of first refusal. The PJVA members really enjoyed the EMS and we were very lucky that Dave and Lynda, such experienced and knowledgeable industry leaders, volunteered their time to present to us.
The next Early Morning Session will be held on March 29th were Cody Battershill, the founder and spokesperson for Canada Action/Oil Sands Action, will be coming to the Petroleum Club to speak to us on misinformation related to Canadian oil sands and the stigma it puts on Canada’s oil and gas sector.
Volunteers in Action
Written by Risha Tedros, Energy Asset Management Student, SAIT
The Petroleum Joint Venture Association (PJVA) highlights the extraordinary efforts and contributions of select members in the appreciation piece, Volunteers in Action. In the November edition, Trudi Thomas was recognized for her ability to immerse and establish herself within Joint Venture. At PJVA, our members epitomize the dexterity, adaptability and willfulness needed to create harmonious relationships within their respective organizations and our association. The Volunteers in Action articles commend the knowledge, experience and achievements of these volunteers. Our intention is to introduce and connect our volunteers with both industry and PJVA members, and to highlight their commitment to PJVA.
For the February 2017 edition, Volunteers in Action are pleased to present:
Carolina Hodgson
Carolina Hodgson, Joint Venture Contracts Analyst, of Suncor Energy Services Inc. (Suncor) has been an active and engaged member of PJVA since 2009. Her career in oil and gas began as a Contractual Administrative Assistant with Petro-Canada. Soon after the Petro-Canada and Suncor merger, she became a Joint Venture Contracts Administrator with Suncor. She has remained in her current role as Joint Venture Contracts Analyst within the Upstream Land and Joint Ventures department.
Carolina’s career began with earning a chemistry degree while she lived in Manila, Philippines. Because of her education in science, she was able to apply technical research and development skills to her new career in the oil and gas industry. Her designation as a Research and Development Analyst involved exploring an array of local indigenous materials that was essential for Carolina to be decisive and accurate, in order, to communicate her position and technical findings. Her trainings and research undertakings completed locally as well as in Japan, Northern Ireland and India were recognized and revered in publications both internationally and domestically.
Carolina relocated with her family from Manila to Mississauga, Ontario to pursue a career within the pharmaceutical industry. Upon arriving in Canada, she joined a pharmaceutical company and became the Health and Legal Administrative support to the Medical and Regulatory Affairs team and to various external groups. Her scientific training and administrative capabilities reflect her tenacity and versatility amongst the areas of Science, Pharmaceuticals and Joint Ventures.
Succeeding her previous roles, the prospect of working within the oil and gas sector dawned upon Carolina when her husband was offered a new job assignment. The employment relocated her family to Calgary, Alberta. Although the decision to leave was daunting, she was enthusiastic and graciously accepted the opportunity to “expand (her) career roadmap”. Two weeks after arriving to Calgary, Carolina secured her original position with Petro-Canada.
Since 1967, Suncor has commercially developed Canadian oil sands. Globally speaking, the Canadian oil sands are one of the largest petroleum reserves. Through competitive expansion, Suncor has established and grown the company’s portfolio to include: top-quality assets, stable financial reports and the possibility of future endeavors1. Suncor has particularly been instrumental to Carolina’s development and progression within the Land and Joint Ventures department. Throughout the interview, she described her organization with the upmost admiration, and depicted a company with both longevity and sustainability in the development of resources and employment satisfaction.
Carolina regards her transitions from research and development and pharmaceuticals to oil and gas, as an opportunity for her to measure and gage her efficacy. She is a self-motivated individual that has utilized her past experiences to learn the various facets associated to Land and Joint Ventures. Carolina describes her experience with Suncor as:
(An organization where I am) continuously learning, working with (a variety of) disciplines, (implementing daily) work experiences and practices, and, most importantly, (provided) constant influential support and mentoring from (my) colleagues.
Carolina has related her aims of accuracy and efficiency from her previous roles to her current position within Joint Venture. She is an advocate of consistency and control, and has been able to demonstrate commonalities from each industry into her current work place. Her positive outlook and ability to identify business optimization has made her an integral asset within each job role. Her continuous efforts to maintain these practices and develop new methods within Suncor and PJVA are of high importance to Carolina.
Personal Interests
In her spare time, Carolina enjoys spending quality time with family, ranging from weekly family gatherings to planned vacations. She and her family have travelled along the pacific coast through BC, Oregon, and California. She has also indulged in east coast trips from Toronto through to the Maritimes. In addition, her family has enjoyed various cruises through the Caribbean Islands, Mexico, and Alaska. Carolina says, “(She) is very excited for her next family adventure”.
Supporting the interests of her family is meaningful to Carolina. She is an avid fan of her son’s hockey team and cheers him on at all of his games. Collectively, her family enjoys biking, cooking and listening to music together
Carolina is engaged with volunteer work and community involvement. She is passionate and proud of the awareness and engagement she has provided as part of the Canadian Breast Cancer Run for the Cure. Her family and friends have participated in this annual event. She recollected fondly on the memories created with the charity and reveals, “I’m fortunate to be a part of these experiences”.
Furthermore, Suncor has days of caring events. These functions comprise of team-building and giving-back to society. Carolina has described how proud she was to be an employee of an organization that is considerate of strengthening the relationships between families, employees and communities. For years, both her personal and Suncor families have volunteered for the Suncor Stampede Breakfast, Petro-Canada Teddy Bear Toss and Suncor United Way events.
PJVA Involvement
Carolina became an involved and active PJVA member since the Petro-Canada and Suncor merger. She states:
Industry involvement is a strong asset for an individual to progress, personally.
Carolina promotes standardization through collaboration within her department at Suncor. She characterizes the keys to success as the ability to communicate amongst various departments and your peers. Her confidence and positive attitude is appreciated and celebrated at PJVA.
Carolina began her volunteer work by coordinating Early Morning Sessions (EMS). EMS are industry-related discussions that encompass: introspective resolutions, alternative considerations, and updates on existing provisions. PJVA accommodates members by organizing times that may not conflict with their work. Her responsibilities included organizing Suncor boardrooms, EMS directors and presenters. She credits her due diligence and meticulous nature for the success of these hosted events. The EMS are important to deliver fundamental concepts, and to meet fellow PJVA members. Carolina encourages members to attend these sessions or consider PJVA luncheons. The multiple benefits of attending these sessions include the Joint Venture learnings, comprehending current industry-related topics and expanding your network. Since 2013 to present, Carolina has been immersed with the creation and execution of the Administration Portfolio Task Force. Her contributions within the committee are parallel to her personal pursuit of best practices, processes and procedures. The thoroughness she applies to her work was developed during her role as a Research and Development Analyst. The application of concordance and accuracy is exhibited in the Administration Portfolio Task Force mission. The committee provides: a selection of industry letter templates that maintain Join Venture standards, best practice methods, and suggested processes that have been tailored to support both corporate culture and contractual compliance.
During the interview, Carolina continuously attested to PJVA committee achievements reflecting the needs of industry. She states:
PJVA values the team member’s knowledge, experience and dedication towards initiatives of creating an industry standard for administration that will be sustained for many years.
From August 2016 to currently, Carolina has been offered to assist with the development of the Academic Portfolio Agreements Course. As an Agreements Coordinator, she will oversee the course held at SAIT and on the PJVA e-studies site. The course will provide individuals with a range of Joint Venture agreements that are used within industry. Students will have the ability to generate agreements and identify contractual issues within the documents.
The PJVA committees continue to assimilate concepts that will improve the work, and add value to industry. Carolina recognizes and respects the collaborative efforts of her team to produce supportive agreements and procedures for industry. The volunteer work has constructed a platform and generated value for professionals to share these principles.
Her eagerness to assist PJVA to lead industry with Joint Venture models has provided Carolina with “great pleasure”. Throughout her career, she has been encouraged by both her teammates at Suncor and PJVA. The relationships built have remained long-lasting and provided her with mentoring assistance.
Based on her diverse experiences, Carolina has flourished and become “self-confident” and has a sense of “pride and identity”. She has been able to combine her experiences and interests into her workmanship. Carolina hopes to encourage individuals to recognize their value and pursue their professional goals. Her career path is a testament to her determination, ambition and beliefs in her abilities. She describes her personal history as “professionally rewarding” and states, “I thoroughly enjoy what I do”. Her ascertainable outlook is due to her belief in herself. Carolina lives the words quoted by Confucius:
Choosing a job you love, and you’ll never have to work a day in your life.PJVA is grateful to showcase the positivity and commitment of members like Carolina Hodgson. Her outstanding contributions are a direct reflection of her willingness to balance her occupation with personal awareness, and demonstrate consciousness to those surrounding her.
References
1. “Suncor website” (2016, December 18), About Us, www.suncor.com/about-us
Upcoming Events
February 16, 2017 – PJVA/PASC Joint Luncheon
February 22, 2017 – Early Morning Discussion Cancelled
March 22, 2017 – PJVA/PASC/SPE Joint Luncheon
May 11, 2017 – Land Agreements Seminar
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.