September 2017
President's MessageEditor's Note
JV Certificate Program at SAIT – Starts September!!
Pad Site Sharing Agreement – Draft 3 Ready for Comment!
CAPL Property Transfer Procedure – suggested for smaller deals – PJVA your comments are welcome!
24th Annual GPAC/PJVA Conference
Lunches
Contract Well/Facilities Operating Agreement Task Force
Early Morning Session. September 27, 2017.
PJVA Phishing Trip
Volunteers in Action
Fall Pub Night
President's Message
Let me begin by welcoming each of you to a new year for PJVA.
For the last few years it has been present in our industry and every day we often hear, "do more with less” leaving a mix of optimism and apprehension in our workplace. As Joint Venturers "we don't expect it all, but we strive for it all" knowing its both an effort and a numbers challenge mixed with supply, demand, and politics world-wide. We are a resilient industry faced with overcoming adversity and educating others about the benefits of our work and our value but as the commodity indicator remains at less than $50 per barrel, the uncertainty continues. Yes, it's tough, but well worth it.
Today, after having lost many great colleagues due to a slumping economy and lower commodity price, our industry focuses on core values, engagement and teamwork to build or rebuild the characteristics in people necessary to sculpt the future of this great business. I expect that we may see another year of challenge ahead. However the considerable shifts of late only strengthen our goals and reaffirm what resiliency truly means. For PJVA, the drivers that once built this Association, remain unchanged. We are focused on providing tools necessary to connect and navigate joint ventures and work together with other disciplines, fairly.
When our Association was built, Shell Canada, Petro-Canada, Amoco Canada and Esso Resources were our first founding companies. By the inaugural meeting held in November of 1985 there were close to 45 companies represented and 200 members. Today we are represented by over 200 companies, and 700 members. And in true 'joint venture' fashion, together, we thrive. We have created standardized agreements, Jumping Pound calculations, education materials, luncheons and seminars as well as building bridges between ourselves and other associations. Really though, we 'built our business' as we know it today!
Your Board of Directors is challenged with stewarding the trust that its members have put into the PJVA for the past 32 years, with tremendous pride! This year, our strategy will be focused on executing goals identified in previous years. We plan to invest in further alignment of our core agreements and expect to bring them current and add to our inventory. We will continue to work with SAIT on our JV Certificate program, advance our eStudies programs and other PJVA offerings as well. We will continue to move the development of a mentorship program forward and build inroads with other associations. We are up for these challenges!
The PJVA wouldn't exist without each of you and your passion for the business built entirely through its membership. As each year passes and our industry changes, we add to the foundation already existing. Through the years, this organization helped shape my career and I am proud to be your representative for the 2017/18 year.
I would like to extend my personal thanks to our former president, Josh Carter, and each and every member of the 2016/17 Board of Directors and the Board's countless committee volunteers for your after-business hours, your energy, innovation and commitment to our membership. As well, I would like to thank our 2017/18 Board of Directors for embracing the goals we have set in the year ahead. Our 2017/18 Directors and their positions are as follows:
- Josh Carter (CNRL), Past President
- Richelle Lindsay (Crescent Point Energy Corp.), Vice President
- Grant Feddema (Independent), Treasurer
- Maureen McCall (Independent), Luncheons
- Bradley Hodges (Consultant), Conference
- Lorie Caron (EnCana Corporation), JV Administration
- David Norris (Keyera Corp.) Marketing
- Dan Tonellato (Repsol Oil & Gas Canada Inc.), Seminars
- Helen O'Brien (Husky Energy Canada), Education – Estudies
- Michelle Thoen (CNRL), Education – JV Certificate Program
- Ashley Weldon (BDP), Director at Large – Legal
- Scott Wolfson (Whitecap Resources Inc.), Social/Membership/Volunteer
- Kent Black (Paramount Resources (TEC) Ltd.), Newsletter/Website
- Jonathan Cassetta (Cenovus Energy Inc.) Education – EMS
- Ruth Onyett (Ridgeback Resources Inc.), Task Forces
- Connie Pruden (Associations Plus Inc.), Administration
Sincerely,
Tracey Moore-Lewis (Enerplus Corporation)
President
Editor's Note
After taking the summer off, your PJVA is back in full swing. We on the PJVA Board of Directors hope you had an enjoyable summer and were able to take advantage of the spectacular weather. September has a full slate of events including:
- Luncheon and Annual General Meeting (AGM) on Sep 13,
- Early Morning Session on Sep 27,
- 2-day seminar on Joint Venture Agreements on Sep 19-20 and
- JV Accounting course on Sep 28.
Please read on for highlights of each event. Also look for the Volunteers in Action article, this month featuring Marcel Savoie, former President and Past-President of the PJVA. And finally, an interesting article on….fishing?
And now, your Oil Industry Tidbits….
- 2003 (Jan) - True North Energy (Koch) postpones the Fort Hills tar sands project citing lack of a partner plus environmental and Kyoto concerns.
- 2003 (Feb) - Gasoline spikes to record high prices in Canada (90c per litre) on threat of supply shortages if war begins in Iraq.
- 2003 (Feb) - Encana to delay development of Deep Panuke (off-shore Nova Scotia) citing excessive cost for reserves discovered.
- 2003 (Aug) - Access Northeast Energy Inc. announces plans to build an LNG terminal at Bear Head, Nova Scotia.
- 2003 (Aug) - Gasoline prices exceed 90c per litre in parts of Canada.
- 2003 (Sept 1) - 337gas wells (about 100 MMcf/d) in the Fort McMurray area are shut-in by the AEUB to preserve reservoir pressure for future bitumen extraction.
- 2003 (Sept) - Largest ever Crown land sale in Canada. BC Government raised $417.98MM in the sale of mineral rights, primarily in the Sundown area of NEBC. Encana later acknowledged being the buyer to pursue a Cadomin gas play.
- 2003 (Oct) - AEUB announced that Peace River #1 (04-31-085-20W5) had finally been abandoned after 88 years.
- 2003 (Dec) - AEUB rejects application by Polaris Resources Ltd to drill in the Whaleback area of the Alberta foothills.
- 2003 – A record number of wells are drilled in Canada (19,955) during 2003 but gas production declined and prices climbed.
Kent Black
Publicity Director 2017/18
JV Certificate Program at SAIT – Starts September!!
This is a reminder that the NEW PJVA Certificate Program, being offered through our partner, SAIT, commences in September 2017. We know it has been a long time coming but it’s finally here and for those individuals wanting to learn, grow, we recommend the Joint Venture Certificate at SAIT.
Program schedule (Click here to register at SAIT)
Petroleum Overview (24hrs): September 5-28, 2017
Introduction to Facilities (24hrs): October 3-26, 2017
Joint Venture Agreements (45hrs): October 31 - December 19, 2017
Joint Venture Administration (45 hrs): January 9 - February 27, 2018
Joint Venture Analyst Level 1 (45 hrs): March 6 - April 24, 2018
Please be advised that the PJVA estudies program is not transferrable to SAIT. However, PJVA has been able to create a process for those who want to receive credit for the Petroleum Overview Course as follows:
Petroleum Overview Course – PTOV 126
If a student has five years or more experience in the Oil and Gas industry or has taken a similar course; the prerequisite Petroleum Overview — PTOV 126 will be waived.
Some other options to obtain credit for the Petroleum Overview Course include:
- Write a challenge exam if they had less than five years of industry experience - $250
- Go through the PLAR (Prior Learning Assessment Request) process as noted below - $150
PLAR (Prior Learning Assessment Request)
To apply, all students need to fill out an application form from their office and provide learning portfolios, one for each SAIT course they are seeking credit for, which outlines their experience and knowledge in relation to the learning outcomes of a SAIT course.
Portfolios generally include but are not limited to the following:
- A recent resume
- Detailed job description
- Letters from employers/supervisors confirming skill level and ability in regard to the SAIT course in which credit is being sought
- Samples/examples/drawings/blue prints etc. of relevant work completed
- Proof of non-formal or informal training and education
- Plus, any other documentation you feel will help strengthen your request for credit
Should a student want to get credit for the Facilities Course, the PLAR process is applicable for obtaining this credit.
Should you have any inquiries regarding these credits for courses, please contact:
Phone: 403-284-8881
Pad Site Sharing Agreement – Draft 3 Ready for Comment!
We are pleased to advise you that the joint CAPL and PJVA materials associated with the 3rd industry draft of the 2017 Pad Site Sharing Agreement are now available through this hyperlink to PJVA.
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 arrangements.
The task force was delighted with the comments received on Draft 2, and we sincerely thank you for this. The comments and the responses from the task force have been gathered into a matrix that is posted with Draft 3. Names of commenting parties have been removed. The matrix will be sent to all companies and individuals who contributed comments. Nearly all the comments were used to make the changes in Draft 3.
Click here to see what the package includes and for deadline dates.
CAPL Property Transfer Procedure – suggested for smaller deals – PJVA your comments are welcome!
The 3rd industry draft of the 2017 CAPL Property Transfer Procedure is now available on the CAPL websiter20.rs6.net.
This standardized purchase and sale document is intended to be used for low to modest value transactions that do not have any issues of significance. The document also offers a significant simplification opportunity for sales or swaps involving only undeveloped land without wells.
This package includes:
- an overview of the project scope and the major changes;
- a detailed matrix that outlines all material changes and their rationale; and
- the text and annotations.
You can obtain a facing page presentation of the text and annotations by printing the PDF's in a double sided format.
We would appreciate your comments by October 3, 2017, so that the committee is positioned to finalize the agreement.
If you have any comments on the draft please send them to Paul de Villenfagne (PJVA Liaison) at pjdeville@shaw.ca.
24th Annual GPAC/PJVA Conference
November 14-15, 2017
The 24th Annual GPAC/PJVA Conference is fast approaching! This two-day event is scheduled for November 14 and 15 at the Petroleum Club in downtown Calgary. Day 1 is the main conference, which will include a full day of speakers, meals and networking. The Canadian Association of Petroleum Producers will be the morning keynote presenter to provide insights on CAPP's most pertinent initiatives. Price Waterhouse Cooper is the lunch keynote and will explain what digitizing strategies are coming to the oil and gas industry. Other presentations on topics including petroleum supply/demand, climate policy, facility development, drone surveying, and international negotiations are sure to draw the interest of attendees.
Day 2 will be two half-day sessions, with the morning dedicated to business and joint venture presentations organized by the PJVA, and the afternoon focused on a technical panel discussion facilitated by GPAC. Both sessions include a meal before the presentations commence.
Anyone who purchases a ticket for Day 1 will receive complementary entrance to both Day 2 sessions. Day 1 tickets are also transferable to co-workers interested in attending one or both Day 2 sessions. For those wishing to attend the Day 2 sessions only, those tickets may be purchased individually. Early Bird (purchased on or before October 14) ticket costs for PJVA members are:
Further details on the speakers, schedule, corporate tables, and sponsorship opportunities can be found on the PJVA web site (Events & Education), which has a link to the conference web site.
Lunches
We have a great Fall line up of speakers on the O&G industry's current topics.
On Oct 19th, Jeff Gaulin, VP Communications at CAPP will speak on Energy for Tomorrow – Canada in the World's Energy Future - a presentation with a panel of Energy Association Leaders from the PJVA, CAPL, PASC and the AIPN discussing their insights and analysis into the current climate and their views of the responses that will shape Canada's Energy future. PJVA President Tracey Moore-Lewis, Josh Carter- PJVA Past President, PASC President Cody Austin, CAPL President Larry Buzan and AIPN Past President Tony Cioni will participate.
On Nov 23rd, Tim Richardson, Norton Rose Fulbright Canada LLP will have a presentation on Joint Venture Partner Insolvency – Risks and Opportunities. Change seems to be the only constant in the current economic climate. If a JV partner becomes insolvent, how do you protect your company before, during and after insolvency proceedings? How can companies effectively harvest opportunities from insolvency situations? This session will feature plenty of time for Q&A afterwards.
Register here for these presentations
Contract Well/Facilities Operating Agreement Task Force
A Task Force has been assembled to review and update the PJVA 2003 Model Contract Well/Facilities Operating Agreement, in order to address current issues, restrictions and concerns raised by the PJVA Membership that have been identified to deal with current Industry practices. The Task Force is currently reviewing the feedback received from the Membership and is hopeful that an updated Draft will be available in Q1 of 2018.
The individuals that make up the Task Force are Cindy McIvor, Ruth Onyett, Bruce Gordon, Michelle White and Tara Paton. The Task Force may be reaching out to those Members who provided feedback and would like to take this opportunity to thank those individuals who provided comments.
Ruth Onyett
PJVA Task Forces Director 2017/18
Early Morning Session. September 27, 2017.
Bow Valley Club – Dining Room
Mutual Consent – Which agreements and clauses does it apply to?
Kyla Ulmer from ARC Resources will be presenting this topic focusing on the importance for Joint Venture Contracts Analysts/Administrators on verifying terms of agreements. The topic of discussion will pertain to service Agreements, revisions of exhibits and dispositions and what current industry standards and practices are in place.
PJVA Phishing Trip
This was not your typical fishing trip. No, this was a phishing trip. For those of you who don't know, Wikipedia defines phishing as "the attempt to obtain sensitive information such as usernames, passwords, and credit card details (and, indirectly, money), often for malicious reasons, by disguising as a trustworthy entity in an electronic communication." So, phishing is a form of fraud in which a cyber-attacker tries to gain confidential information by masquerading as a reputable person in an email or some other form of electronic communication. The victim will usually receive a message that appears to be from a known contact or organization, with an attachment or link in the message that may install malware on the victim's device or direct them to a phony website set up to trick them into divulging personal / financial information, such as passwords, account IDs or credit card details. The term "phishing" was created as a homophone of fishing, both of which involve using bait to catch fish (victims).
That being said, here is what happened just recently to Grant Feddema, PJVA Treasurer…
The day started out as any other day – sit down, log in, check e-mails, prioritize them and get busy. On this day however, what appeared to be a request for assistance peaked my interest. It was an e-mail from our PJVA President asking me to help her out. At first glance, the e-mail was very short and had an "urgent" feeling to it. "Grant, I'm in and out of meetings all day can you help me. Thanks."
I replied and simply asked, "What do you need me to do?" What followed was a more in-depth request to process a payment. Now, as Treasurer of the Association, I am indeed the right person to contact for such a request. That being said, the timing was suspicious. I have just recently taken over the role of Treasurer and have not yet been cleared to handle the "books", and our President knows that. It was at this point that I sent a separate e-mail to the Executive Board asking if anyone had any idea about this payment request. In the time, it took for the Executive to start responding I received another e-mail with some payment information including a bank account from B.C. I looked at this e-mail very closely and immediately saw an e-mail address from the U.K. By this time the Executive had responded and said they knew nothing about this matter and that we were probably being phished. One of the Executives forwarded the e-mails to their IT department for further investigation, due to the fact that the email address used in the first email appeared to be the correct email address, that of the PJVA President.
The lesson learned is that even if an email address appears to be from a trusted friend or colleague, if the request is out of character then MAKE SURE you take the necessary steps to confirm what you are being asked to do is legitimate. With an Alberta university, recently being scammed out of close to twelve million dollars, the extra time and effort to verify is well worth it.
Grant Feddema
PJVA Treasurer 2017-2018
Volunteers in Action
Written by Risha Tedros
B.Mgt Finance Student, University of Lethbridge
Energy Asset Management Graduate, SAIT
The Petroleum Joint Venture Association (PJVA) released their first Volunteers in Action segment one year ago in the September 2016 JV Views newsletter. The article has featured many outstanding candidates who have greatly contributed to the JV community, and shared their passion with other PJVA members. These biographies help members relate, and become inspired by their accomplishments and perseverance. At PJVA, our intention is to support meaningful, mentoring and motivational relationships. To our featured volunteers, thank you for giving your time to be part of these article series.
For the September 2017 edition, Volunteers in Action are pleased to present:
Marcel Savoie
Marcel Savoie, Principal Consultant at MJ Savoie Joint Venture Consulting, has recently joined Enhance Energy (Enhance) as a JV Consultant. Marcel has been a PJVA member for 16 years. His current position with Enhance is an opportunity to showcase his knowledge in joint venture.
Enhance is focused on reducing environmental impacts by implementing the largest Carbon Capture and Storage (CCS), through the Alberta Carbon Trunk Line (ACTL). CCS is a controlled process that confines carbon dioxide (CO2) and deposits the release into a storage site. This practice decreases damage to the atmosphere by capturing up to 90 percent of CO2 emissions, transporting, and then securely placing underground or deep within salt aquifer formations. Enhance responsibly manages the greenhouse gas emissions, and is reducing the carbon footprint.
"The ACTL is the first large-scale Enhanced Oil Recovery (EOR) and storage project" [1]. The company has created precedence within Alberta, and has employed upwards of 10,000 indirect and direct job opportunities to support the pipeline construction. Through the ACTL, Alberta will have better control of their resources, oil sands production and operate in an "environmentally responsible way"[2].
The company has joint venture interest at the Clive oil field in the Leduc and Nisku reservoirs. The recovery project is expected to become a forefront of global implementation. Marcel describes his role of JV Consultant as an "impeccable opportunity". He utilized his network, knowledge and teaching experience to help prospect him for this new position. Marcel was in contact with a colleague, from his past employer, whose husband was interested in the JV Certificate offered through the association. The conversation led to Marcel to suggest that he consults, whilst providing training and mentoring for her husband.
He has been helpful by providing familiarity in contracts, understanding the commonalities and practices, and maintaining the operating budget. The role also includes technical application of land and joint venture systems to manage JV electronic files. The JV Consulting position has given the liberty to structure and maintain files accordingly. Before his current role, Marcel was Staff Joint Venture Representative at Cenovus, focused mainly on the Weyburn Unit. His transition to Enhance had "challenged (him) to learn new properties and the manner, in which, they were cared".
Personal Interests
During his personal downtime, Marcel enjoys golfing, short term travels to Summerland, BC and extended vacations to the Caribbean. He has been fortunate enough to visit numerous islands. Closer to home, he has a property in the Crowsnest Pass where he and his wife spend many weekends.
PJVA Involvement
Marcel has a Bachelor of Arts (B.A.) Economics major, Business minor degree from the University of Calgary. In addition, he has expanded his scope of industry by completing an accounting credential, Enform safety courses, and courses within the JV Certificate through the association.
He was motivated, dedicated and applied himself to understanding the full scope of joint venture. He began his career within JV accounting and working within contracts as a JV auditor. This experience allowed him to understand the cost, governance of charges, and generate monthly audits. His involvement and pursuit of JV knowledge is praiseworthy.
His continuous betterment was pinnacle to his decision to instruct for PJVA. Ironically, he states "I was unable to get the certificate because I began to teach it".
His first volunteer role was on the Task Force committee that determined the need for a certificate program. At that time, the focus of the program was on the Construction, Ownership and Operation (CO&O) agreement. He recounts working with three members, two that were considered JV Legends (John Stayura and Ash Khan). Together, they packaged the modules for the first certificate program.
Once in place, Marcel taught at Mount Royal University (formally Mount Royal College). He recollects learning about human behavior, personality and nature. This experience, on countless occasions, has reintroduced former students during PJVA events. He states, "I find it rewarding to have people approach me, and to find out where they are". During the interview, Marcel remembered one student who was well-versed and understood joint venture. "This person is now a JV Manager, and I find it rewarding to know that I played a small part in it."
Marcel has recently stepped down from sitting on the board for a consecutive six years, and completed Past President on June 30, 2017. However, he has volunteered for a total of 16 years with PJVA, and remains on the Strategic Advisory Group. This fall, Marcel will teach the JV Certificate of Achievement at SAIT.
Marcel continues to support PJVA by encouraging members to attend the social gatherings. PJVA is a place to create mentoring relationships, expand knowledge, and share information with other members. He mentions, "recognition by your peers is essential" for future successes.
PJVA has generated support of their members and strengthened the community ties by allowing people to remain active members during recessionary times. This gave members access to their PJVA network for a reduced rate.
Marcel encourages members to become actively involved to experience the social events, such as "Pub Night". At these social gatherings, an array of industry professionals attend to socialize and build their network. They are also ideal for individuals expanding their profession into JV, students, new graduates or retirees to converse with someone in their field of interest.
Influential and important connections can be made through PJVA. Marcel named his most prominent connections as: Lee Wahl, Country Manager, of Kuwait Foreign Petroleum Exploration Company (KUFPEC) and Kim Foore, General Operating Manager, of Transport, Services and Logistics (TSL) Canada. Marcel attributes his PJVA achievements from the support of his contacts. "(They) had pushed me because (they) believed in me".
Marcel Savoie is a leader and teacher within the PJVA. His roles of Past President and Instructor are an asset to the development and growth of new members, students and graduates offered through PJVA. The association continues to flourish because of the volunteer work of people like Marcel. He embodies the definition of community and commitment to share JV knowledge. His contributions are inspiring, and we are thankful for his continued work with PJVA.
References
[1] (n.d.). Retrieved August 22, 2017, from https://enhanceenergy.com/
[2] (n.d.). Retrieved August 22, 2017, from http://www.enhanceenergy.com/actl/community_benefits
Fall Pub Night
September 28, 2017
The first Fall Pub Night of the new PJVA year will be held Thursday, Sept. 28th at State & Main Kitchen & Bar. Please sign up and come out to catch-up with your fellow members now that summer is winding down. A great way to network in a casual atmosphere after work with some good conversation and a few laughs. Students and non-members are always welcome to attend. Light appetizers will be provided.
Upcoming Events
September 19-20, 2017 – JV Agreements Seminar
September 26, 2017 – JP05 Workshop Seminar
September 28, 2017 – JV Accounting 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.