Presentation on theme: "BC Tenure Regulations CAPL"— Presentation transcript:
1 BC Tenure Regulations CAPL October 19, 2010Page 1.
2 SEMINAR OUTLINE PART 1 Oil & Gas in British Columbia Legislation and Incentive InitiativesClean Energy ActOil and Gas Activities ActRoyalty Credit ProgramsFirst Nations EngagementRelationships and AgreementsCaribou Conservation and Habitat ProtectionPage 2.
3 SEMINAR OUTLINE PART 1 (continued) PART 2 – Tenure Community and Landowner EngagementCrown Sale and Referral ProcessOrganizational Structure and FunctionAccomplishments and InitiativesPART 2 – TenureResources for Tenure ManagersIntroduction to BC’s tenure, land, and zone systemsPermits
4 PART 3 – Payments & Instruments SEMINAR OUTLINEPART 2 (continued)Drilling LicencesLeasesPART 3 – Payments & Instrumentse-PaymentsTransfers, Encumbrances, and Related
5 Key ContactsLaurel Nash, Executive Director, Oil and Gas Titles BranchPOSTINGS, PETROLEUM TITLES ONLINE, WEBMASTER, MAPPINGChris Blaney, Manager, Crown Sale and GIS ServicesPRE-SALE CONSULTATIONS, TENURE CAVEATSMay Mah-Paulson, Director, Resource DevelopmentGEOLOGY, ZONE DESIGNATIONDave Richardson, Manager, GeologyDRILLING LICENCES, WORK PROGRAMS, PERMITSTerry Branscombe, Senior Tenure Management AdvisorDRILLING LICENCES, LEASE CONTINUATIONSCindy Kocol, Tenure Management AdvisorDRILLING LICENCES, TRANSFERS, ENCUMBRANCESChristine McCarthy, Tenure Management AdvisorE-PAYMENTS, BCeID, PRE-AUTHORIZED DEBITSCarolyn Desjardins, Manager, Revenue Collection, Reconciliation and ReportingGENERAL INQUIRIESWWW:
8 Clean Energy Act (2010)The Clean Energy Act, 2010, builds on the foundation of the BC Energy Plan and the Climate Action PlanThree policy goals:Ensuring electricity self sufficiency at low rates;Harnessing BC’s clean power potential to create jobs in every region; andStrengthening environmental stewardship and reducing greenhouse gases.
9 BC Oil & Gas Activities Act (OGAA) OGAA passed in 2008;Became law October 4, 2010;See OGC website:
10 OGAA: Consolidation of legislation Tenure Admin.Explore & DevelopPetroleum & Natural Gas ActPipeline ActOGC ActSpecified Enactment PowersOGAAThe amended version of the P&NG Act is on the BC Laws website:Moves and updates the regulation of the oil and gas industry from the Petroleum & Natural Gas Act, the Pipeline Act and the Oil and Gas Commission Act into one new Act.Amendments to the Petroleum & Natural Gas Act take effective October 4,Amendments to the Petroleum and Natural Gas Act will change the name of the Mediation and Arbitration Board to the Surface Rights Board – and enhance some of the authorities of the Board.Mediation and Arbitration Board changed to Surface Rights Board:
11 OGAA: Summary of Changes Modernized, consolidated regulatory framework;Flexibility & innovation;Enhanced C&E framework;Stakeholder input & comments;Protect/manage environmental valuesFormal review and appeal process
12 OGAA: Summary of Changes Permitting:Consultation & notificationOGC must consider Government’s Environmental Objectives (GEOs)Review & appeal provisionsCompliance history consideredActivities:Industry standardsResults-based requirementsEnvironmental protection & managementSafety & securityConsultation & notifications now a legal requirement (OGAA sec. 32)GEOs for water, riparian areas, wildlife and OGMAs must be consideredOGC may refuse to issue a permit based on actions of applicant or agent (OGAA sec 26(3)(4))
13 Targeted Royalty Programs What was the challenge?What was the solution?B.C. drilling activity very concentrated during winter months, when ground frozenSummer Royalty Credit ProgramWestern Canada sedimentary basin deepens towards the WestDeep Royalty Credit ProgramNew, conventional wells with lower productivityMarginal Royalty ProgramTight gas developmentUltra-marginal (tight gas) Royalty ProgramCoalbed gas potential development challengesCoalbed Methane Royalty Program“White spaces” and areas with limited infrastructure (roads/pipes) availableInfrastructure Royalty Credit ProgramHuge potential in new, remote, high-risk unconventional resourcesNet Profit Royalty Program
14 How Can These Royalty Programs Help Develop Unconventional Resources? These programs can be combined in many cases, thus providing enough margin to move certain projects to economic territory.Example - a well that…a road project (an infrastructure credit),is drilled in the “summer”,is deep, andis marginal……can receive all the associated benefits for those programs.For more information:
15 Infrastructure Royalty Credit Program Oil and Gas Stimulus Package Facilitates increased oil and gas exploration and production in under-developed areas and extends the drilling season to allow for year-round activityIssued a request for applications for road and pipeline projects in March 2010In August 2010, $115.6 million in royalty credits were awarded to 16 companies for 21 natural gas and petroleum infrastructure projectsStimulus Package (August 2009):4 royalty initiatives and 2 regulatory initiatives designed to address economic slowdown by generating new stimulus for drilling in B.C.
16 Long Term Results: Becoming a Leader in North American Natural Gas Markets Second natural gas producer in Canada, after AlbertaIncreasing market share in CanadaPotential to triple production as unconventional natural gas develops – existing production 1 Tcf/yearHow successful have we been?We are the second natural gas producer in Canada, after Alberta – and catching up…We have consistently increased our “market share” in the natural gas market in CanadaIncrease in wells drilled, production, reserves and capital spendingIndustry investment increased from only 9.7% 2000, to 23.2% of total industry investment in conventional oil and gas in 2009.Similar trends are observed in wells drilled, natural gas production and natural gas reserves, with BC’s participation increasing in all.We have the potential to triple our natural gas production in the next decade and we have the plan, the commitment, and the programs in place to “un-tap” our unconventional resources and get thereBC is well on its way to become a leader in North American Natural Gas markets.
18 First Nation Engagement Recent legal decisions confirm Aboriginal rights exist in B.C. Means consultation at a pre-tenure stageAboriginal and Treaty rights are protected under section 35 of the Constitution Act1998 Halfway (Metachia) decision confirmed government must consultResults in change in government policy dealing with First Nations and confirms need to consult at the tenures stage
19 First Nation Engagement Assign caveats in the Notice of Public Tender that respond to First Nation comments"Oil and Gas Tenure 101" Presentations to Chief & Council and Lands StaffResponsive to First Nation commentsProvide more detailed mapping and information for specific sitesMeet to resolve area-specific issues
20 New RelationshipSignificant steps taken by government to recognize and reconcile the gap between aboriginal people and other British ColumbiansMilestones reached:Improved Treaty processReconciliation and Economic Benefit AgreementRevenue Sharing Agreements on Mine ProjectsLand Use PlansLanguage and culture preservationSupport for aboriginal learnersImproved health care and housingFor further information visit:
21 Treaty 8 Treaty originally signed in 1899 For further information visit:
22 Economic Benefits Agreement Outlines obligations of British ColumbiaOutlines when benefits are paid to a bandOutlines dispute resolution proceduresOutlines obligations of Treaty 8 First NationsDoig RiverProphet RiverWest MoberlyEBA enables resource management agreements; more specifically, the Long Term Oil and Gas Agreement.For further information visit:Blueberry River First Nation are part of a separate EBA from the other three, and are not members of the T8 association (additional notes on next slide).
23 T8-BC Long Term Oil and Gas Agreement (LTOGA) The Ministry and the OGC signed a completed LTOGA with BC-based Treaty 8 First Nations in the Spring of 2009.LTOGA is separate from the OGC’s Consultation Process AgreementsThe main categories of the agreement are the Crown land disposition process, emergency response management, compliance and enforcement, reclamation, collaborative projects and commitment to ongoing communication and educational opportunities.The LTOGA will be administered by an Implementation Committee that will find efficiencies by working with the CPA Implementation CommitteeThe LTOGA negotiations include Doig River First Nation, Prophet River First Nation and West Moberly First Nation. Fort Nelson withdrew from the negotiations in the Spring of Saulteau and Halfway First Nations are not signatories to the EBA. Blueberry River First Nation and McLeod Lake Indian band are not members of the T8 Tribal Association, nor are they signatories to the T8 EBA.
24 T8-BC Long Term Oil and Gas Agreement (LTOGA): Industry Engagement During negotiations, the Ministry/OGC and Treaty 8 had a series of workshops with First Nation and Industry participation (including CAPL and CAPP representatives).A December 2008 workshop focused on identifying issues and collaborative solutions in the tenuring process. The negotiation teams used the ideas and input from the workshops in drafting the Agreement.In September 2009 the Ministry/OGC and Treaty 8 held a follow up workshop that focused on how First Nation related terms and conditions could be made more clear and transparent for First Nations, industry and Government.The Parties will continue to engage with Industry in the implementation of the Agreement.
25 Fort Nelson First Nation Fort Nelson First Nation (FNFN) were an original signatory to the Treaty 8 Economic Benefit Agreement (EBA) and participant in the negotiation of the Collaborative Management Agreements, including the Long Term Oil and Gas Agreement.In April of 2009, FNFN voted to withdraw from the Treaty 8 EBA in favour of pursuing solutions outside of the Treaty 8 EBA framework.The Ministry and the OGC are currently working with the leadership of FNFN and the Horn River Producers Group with regard to their interests and concerns.
26 Treaty 8 Consultation Process Agreements Treaty 8 Consultation Process Agreements (CPA) are due to expire March 31, 2011.The CPA Implementation Committee is currently undertaking a review to prepare for the renewal of these agreements.Implementation Committee is composed of Treaty 8 land managers and representatives from the OGC and MEMPR.
27 Caribou Conservation and Habitat Protection Northeastern BC encompasses the western extent of boreal caribou in Canada, which are listed as threatened and Priority 1 species for action under the BC Conservation Framework.500,000 hectares of boreal caribou habitat have been set aside as “resource review areas” (RRAs) where no natural gas and petroleum tenure requests will be accepted for 5 years. The RRAs will be revisited after five years when the effectiveness of caribou population management measures and population assessments are better understood. Government will collaborate on this step with First Nations, industry and stakeholders.Key aspects of Boreal Caribou management and recovery will be formalized and enabled through the implementation of the Oil and Gas Activity Act (OGAA) Environmental Protection and Management Regulation.Most of the information I took straight from the information letter online . The last bullet I took from a letter we wrote to Husky energy (MJ)
28 Resource Review Areas (RRAs) Most of the information I took straight from the information letter online . The last bullet I took from a letter we wrote to Husky energy (MJ)Source:
30 Northeast Energy and Mines Advisory Committee - NEEMAC NEEMAC was established in 2006 to facilitate community engagement in relation to energy, mining and petroleum issues2008 achievements:Landowner Notification ProgramOil and Gas Activities Act inputCoordination Agreement between OGC and Mediation and Arbitration BoardCreation of Regional Executive Director position in NE British ColumbiaSubcommittee consisting of industry, landowners and govt., working on a Standard Surface Lease Agreement for private landowners to be included as part of LON ProgramFor further information on NEEMAC visit:
31 Landowner Notification Program initiated in April 2008Landowner Notification Program provides landowners with:information about oil and gas exploration and development, andopportunity to provide companies surface feature information.The highest bidder is provided checklist(s) with Landowner commentsFor further information visit:NOTE: nothing new for Landowner notification, so can delete slide if no longer want to mention it.
32 Standard Surface Lease (Voluntary) Negotiated : CAPL, SEPAC, CAPP together with MEMPR and Land Owner groupsFinal Version “Completed” with organizational commitment: September, 2009Included in BC Landowner Notification materials: October 2009Thank you to the CAPL members who contributed to the negotiation and completion of the voluntary standard surface lease.It is intended as a ‘guide’ with key concepts negotiated in legal detail with legal representation.This is a registerable instrument.
33 Surface Lease Agreement - Affirmation “A surface lease between landowners and industry members is an agreement between parties, and may need to be tailored to address the specific concerns of each party. The Canadian Association of Petroleum Producers encourages its members to use appropriate clauses of the sample agreement to enter into site specific agreements. The only exception to this is clause 4. These provisions are required by the provisions of B.C. Reg.497/74 and, as such, must form a part of every surface lease in British Columbia.”The draft surface lease agreement is a result of a two year consultative process with representativesof government, industry and stakeholders, including the following Ministry of Energy, Mines and Petroleum Resources (MEMPR) Mediation Arbitration Board (MAB) Attorney General’s Office Deputy Surveyor General (Land Title & Survey Authority of British Columbia Deputy Registrar (Land Title & Survey Authority of British Columbia) Custodians of the Peace BC Cattlemen Association BC Grain Producers Association Canadian Association of Petroleum Producers (CAPP) Small Producers and Explorers Association of Canada (SEPAC) Canadian Association of Petroleum Landmen (CAPL)As a result of the extensive consultation process, industry, stakeholders and government have abetter understanding of the multiple common interests in land stewardship and access issues as wework to supply a safe secure energy supply and provide economic benefit to British Columbia overthe next decades. The process has resulted in the development of a surface lease that not onlyconforms to the Petroleum and Natural Gas Act but also addresses many concerns of industry andstakeholders.A surface lease between landowners and industry members is an agreement between parties, andmay need to be tailored to address the specific concerns of each party. The Canadian Association ofPetroleum Producers encourages its members to use appropriate clauses of the sample agreement toenter into site specific agreements. The only exception to this is clause 4. These provisions arerequired by the provisions of B.C. Reg.497/74 and, as such, must form a part of every surface leasein British Columbia.
34 Farmers AdvocateOffice opened October 1, 2010, funded by Peace River Reg. Dist. & MEMPRBased in Dawson Creek, B.C.Provide a no-fee information service to NE B.C. rural landowners related to oil and gas development:Disseminating informationResolving problemsEmphasizing facilitation and negotiationAn independent, effective gateway to existing organizationsFor further information visit:
36 Subsurface Ownership Two forms of subsurface ownership: Crown: MEMPR issues Crown-owned subsurface tenures and consults on all of these requested issuancesFreehold: There are cases where subsurface is “freehold” and owned by the private parties. These may be for all rights or specific rights e.g. coal, phosphate and PNGOGC regulates all industry activity, whether Crown or freehold
37 Oil & Gas Tenure Tenure does provide : exclusive rights to the subsurface resourceright to apply to the Oil and Gas Commission (OGC) for activities approvalTenure does not provide:the authority to conduct any activities on lands (e.g. drilling)
38 Sale Process Monthly auctions of tenure Industry nominates parcels for each auctionInternal reviewProposed parcels referred to First Nations, local governments and Provincial agenciesIf parcel accepted for sale “posting”, then caveats added to proposed tenureProposed tenure is advertised seven weeks prior to sale dateInterested parties submit sealed bidsIf sold (bids not always accepted), highest cash offer
39 Oil and Gas Posting Request and Sale Process 12 sales per year106-day processPosting RequestsInternal Review and ProcessDistribute ReferralsProvincial MinistriesLocal/Regional GovernmentsFirst NationsReturns Compiled for AnalysisDetermine Crown PNG RightsNotice of Public TenderLandowner NotificationMonthly Rights Auction
40 Posting RequestPre-tenure process is initiated by posting requests by industry for PNG rightsCompanies request parcels for each sale, which includes the following information:Specific formations(s) requestedParcel configuration if more than one parcel is requestedCompanies do not provide information on what development will take place or what resource they are targeting
41 Internal Review and Process Parcels are reviewed to identify if MEMPR is able and willing to send parcels out for reviewThe Oil and Gas Commission (OGC) participates in this internal review processFor example:Are the parcels configured correctly (i.e., on spacing area)Are the rights availableDo the parcels overlap:Previously deferred parcelLand use planning areas (PMT)Areas which require Pre-Tenure Plan (MK)
42 Referral ProcessFirst Nations, local governments, and Crown Agencies are sent referral packages.MEMPR encourages FN to provide:Site-specific information when available: Gravesites, cabins, campsites, etc., andWhat current treaty activities are taking place, on what species and when these activities are occurring
43 Referral Comments Comments requested within four weeks Comments generally focus on high level access management issues, do include some site specific informationComments are assessed to determine next steps:Proceed to dispositionNot to proceed for dispositionFurther consultation/research
44 Provincial Ministries Local/Regional Governments Referral CommentsProvincial MinistriesFirst NationsLocal/Regional GovernmentsReview parcels for conflict with:Official Community Plansresidential areasdrinking water supply areasreservessacred areas/ burial groundshunting sitestraditional use siteswildlife habitatsother tenure holders (e.g. grazing, forest, coal)
45 Caveats CreatedWhere appropriate, comments are used to assign caveats to reflect issues or concerns that should be considered prior to development.Caveats identify high level issues which:The OGC should be aware of at the activity stageProponents should be aware of when acquiring tenureIdentify that potential mitigation strategies may be required at the activity stage
46 Caveat Examples Caveats – near First Nation areas (examples) X FIRST NATION HAS REQUESTED ENGAGEMENT PRIOR TO ON-THE-GROUND ACTIVITIES. TRADITIONAL USE, ARCHAEOLOGICAL, OR WILDLIFE ASSESSMENTS AND MITIGATION PLANS MAY BE REQUESTED PRIOR TO ON-THE-GROUND ACTIVITIES.PARCEL OVERLAPS TRAPLINE REGISTERED TO FIRST NATION COMMUNITY MEMBER
47 Caveat Examples Caveat – near community/residential area (example) PARCEL CONTAINS OR IS NEAR RESIDENTIAL DEVELOPMENTS. THE OIL AND GAS COMMISSION PUBLIC ENGAGEMENT AND DISPUTE RESOLUTION MANAGER RECOMMENDS THAT OPERATORS CONSIDER REDUCING OR ELIMINATING FLARING, AND MANAGE NOISE AS PER BC NOISE CONTROL BEST PRACTICES GUIDELINES.
48 Caveat Examples Caveats – in the Horn River (examples) PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER TENURE HOLDERS MAY BE REQUIRED TO COORDINATE ACTIVITIES, EXPLORATION AND DEVELOPMENT.
49 Enhanced Collaboration with the OGC We have been working with the OGC to look for opportunities to better link the MEMPR pre-tenure referral process with that of the OGC activity application referral processMEMPR assigns caveats to individual tenure parcels based on comments received through the referral process and internal analysis; this includes discussions with the OGC to ensure there is a common understanding of the intent of the assigned caveatsAt the activity application stage, the OGC reviews caveats assigned to the relevant PNG tenure
50 Notice of Public Tender Prepare full parcel description for publication.
51 Landowner Notification The Landowner Notification packages are sent out six weeks prior to the monthly rights sale by Public Auction.Package includes:Cover/information letterOil and Gas and You BookletProperty ChecklistStandard Surface Lease AgreementMapCompleted property checklists are sent by the Ministry to the company that successfully acquires tenure – this information is intended to assist companies to engage landowners and plan development
52 Monthly Disposition Interested parties submit sealed bids Parcel awarded to top bidder if considered fair value
54 Crown Sales-Adjudication Province reserves the right to reject any or all bidsBid adjudication based on a technical review of:Area geologyHistoric pricesCurrent bidding trendsEconomic climateFor bids not accepted, comment in results posting will be ‘No bid or No acceptable bid’
55 Improvements/ Initiatives Longer timeline:from 99 days to 106 daysEnhanced collaboration with the OGCIncreased communication/response to local government staff and First Nation land staff with regards to comments providedIncreased communication with industry on expectationsquarterly meetingsEnhanced maps to assist local government staff and First Nation land staff in the review of the parcels
57 Assistant Deputy Minister Ministry StructureDeputy MinisterMinistry of Energy, Mines and Petroleum ResourcesAssistant Deputy MinisterTitles, Aboriginal and Corporate Relations DivisionOil and Gas DivisionMining and Minerals DivisionElectricity and Alternative Energy Division
59 Titles Branch Structure There are over 60 people who work for the Titles, Aboriginal and Corporate Relations Division. The largest branch – both in terms of staff and revenue generation – is the Titles Branch.This is the group of folks who manage the subsurface resources to get maximum benefit for British Columbians.
60 Titles Branch Functions Subsurface TenuringTenure dispositions (sales)Creation/maintenance of geological zone descriptionsLand access restrictions (caveats):Client and stakeholder engagementFirst Nation and Community engagementLand Owner Notification ProgramMapping:First Nation consultationLand Access/Land UseResource DevelopmentGeologySpecial RequestsTitle Administration:Fees, rentals & drilling depositsRenewals, continuations, extensionsTenure conversionsCancellationsSplits, transfers & encumbrancesCreation/evaluation of policy and legislation re oil, gas, mineral and geothermal resourcesReview and update PNG Act and Regulations , Mineral Tenure Act and Regulations and Geothermal Resources Act and Regulations
61 Resource Development First Nations and Community Engagement Lead Referral process for land salesDaily client and stakeholder engagementFirst Nation and Community EngagementLTOGAEBAsOfficial community plansLandowner Notification ProgramGeothermal Referral ProcessCoal Referral ProcessLinks - Oil and Gas Division- Electricity and Alternative EnergyDivision- Aboriginal Relations Division- Oil & Gas Commission- Other agencies/levels of Government
62 Resource Development Crown Sales and GIS Services Responsible for principle phase of Crown Sale Management ProgramDaily client/stakeholder engagementMapping“Offered” parcels shapefiles are being posted to website as of January 2010.Ad Hoc Mapping Requests in Support of:First Nation ConsultationLand access/Land useResource DevelopmentGeologySpecial requestsMinisterPublic AffairsForecasting for Crown sales
63 Policy and Planning Policy Review and update: PNG Act and Regulations Geothermal Act and RegulationsReview and develop policy and proceduresResponding to Energy Plan policy actionsUpdating information lettersOil and Gas Tenure 101Geothermal Tenure 101Links - Compliance and Administration Branch- Corporate Policy & Planning Branch- Oil and Gas Division- Alternative Energy Division- Oil and Gas Commission- Other agencies/levels of Government
64 Policy & Planning Tenure Management Maintenance of Provincial oil and gas titles registry – PTS (Petroleum Titles System is web-based application to provide direct access to Crown oil & gas titles)Daily client and stakeholder engagementLegislation and Regulations:Review PNG Act and Regulations.E-businessOwnership changesLease continuationsConversionsPermitsDLsIndustry training sessionsCAPL Seminar Oct. 19/10Links - Compliance and Administration Branch- Oil and Gas Commission- Oil and Gas Division
65 GeologyCreation and maintenance of system of geological zone descriptions that divide B.C. into packages which can be issued in the form of Crown PNG titleEvaluates and make decisions on title continuation and maintenanceParticipates in creation/evaluation of policy and legislation re oil, gas, and geothermal resourcesPuts in place definitions that can be used in special agreements for development of unconventional gasContributes expert advice to Ministry departments that promote development of unconventional gasDaily client and stakeholder engagementContinuations BacklogIn past 6 months have reduced 6-month backlog to daysAll continuations now working on a 60-day turnaround, which is the period of application specified in the PNG ActLand Plats to be published to industry and commercial vendorsCo-op bridging program, training for successionLinks - Oil and Gas Division- Oil and Gas Commission- Electricity and Alternative Energy Division
67 Accomplishments TITLES 2010 POLICY & LEGISLATION Business AreaRecent AccomplishmentsPOLICY & LEGISLATIONDevelopment of the Oil and Gas Activities Act (OGAA)Provides a streamlined and simplified regulatory framework – consolidation of the Petroleum and Natural Gas Act, Oil and Gas Commission Act and Pipeline Act.Establishment of a Northern Caribou Management StrategyEstablished Resource Review Areas (RRAs) in a portion of the remaining untenured areas across B.C.’s northern caribou range.Planning for the Management of Boreal CaribouEstablished Resource Review Areas (RRAs) in untenured areas across B.C.’s boreal caribou range, accounting for 500,000 hectares.Identification of boreal caribou habitat for management under the OGAA.Developing mitigation practices with First Nations and industry.Review and amendment of the Drilling Licence Regulation (2009)Re-emphasized Drilling Licenses (DL) as an “exploration’” tenure.Linked risk to reward through redefinition of earning wells and small DL grouping rules.
68 Average price per hectare AccomplishmentsTITLES2010Business AreaRecent AccomplishmentsCROWN SALES & GIS SERVICESThe June 2010 natural gas and petroleum rights sale was the fifth largest on record for B.C., contributing over $404 million in bonus bids to the calendar year total of over $609 million.Crown Sale Performance (calendar year)20092010 (to July)# of hectares disposed389,146281,830Total tender bonus$892,956,403.79$662,457,744.35Average price per hectare$2,294$2,350.56
69 Accomplishments TITLES 2010 Business AreaRecent AccomplishmentsRESOURCE DEVELOPMENTCompleted improvements to Landowner Notification (LON) Program as per 2009 formal review. Key changes include:Notification packages revised for improved readability;Creation of automated map process;Installation of direct phone line in Titles Branch specific to LON;Follow-up phone calls with landowners initiated for each disposition;Improved data and information tracking.Improved communication and working relationship with the Oil and Gas Commission (OGC) with regards to parcel conditions/caveats.Engagement with the Ministry of Environment on streamlining the referral process for caribou habitat.Improvements to referral process with First Nations.
70 Accomplishments TITLES 2010 Business Area Recent Accomplishments GEOLOGYCleared the Land Plat publication backlog of more than two years. Land Plats will soon be available from Crown Publications.COMPLIANCE & ADMINISTRATIONDevelopment of IPS (Integrated Petroleum System) software, a newly integrated system designed to replace and/or streamline current software systems, including Petroleum Titles System (PTS), Petroleum Accounts Receivable System (PARS), and Sales Parcel System (SPS) – design phase completed; development phase to be completed by August 31, 2011.GEOTHERMAL RESOURCESInitiated a pre-tenure referral process with First Nations, local governments, and provincial agencies for four areas of industry interest – June 2009.Hosted a Crown sale for geothermal exploration rights in March 2010 for one referred area and issued a geothermal permit near Knight Inlet (central coast).Seven additional parcels sent out for pre-tenure referral – June 2010.Next auction for geothermal rights expected for fall 2010.
72 Current Initiatives eBusiness Industry Engagement Lands Plats - used to continue Lease tenure – are drafted and current. Queen’s Printer will distribute after a survey of company interest is completed by the Industry-Government Tenure Working Group.Geothermal tenure dispositionOther priority initiatives are:Review of Mineral Tenure Act and regulationsReview of Geothermal Resources ActReview of PNG Act and RegulationsReview of PNG referral processImplementation of coal referral processImplementation of zone-specific retention
73 eBusiness UpdateIntegrated Petroleum System – (iPS) will transition 3 legacy applications to current technologyApplication delivery and integration testing is scheduled to be complete in Sept 2011UAT is scheduled for Oct 2011Industry will have an opportunity to participate as it relates to eBiddingProduction launch including eBidding is Nov 2011ePaymentsSubmissions issues are, for the most part, resolved.Still dealing with some company specific itemsAutomated s will be enhanced to provide clarity for clientsSome issues remain associated with refunds
74 Industry EngagementSince May 2008, a working group has been established between industry and govt. that meets on a quarterly basis to discuss:Improved communicationLegislation and RegulationsOpportunities to work more efficiently and effectivelyEducational opportunitieseBusinessDeveloped Shared Principles to help guide discussions around policy, legislation and regulation changesUsed the Shared Principles to guide the discussions on the Drilling Licence Regulation amendments
75 Shared PrinciplesEnsuring the Crown, as the resource owner, receives an equitable share of economic rent (including all revenue streams).Ensuring Industry receives an economically commensurate reward and recognition for risks taken ("risk/reward").Recognizing close linkages to environmental footprint and stakeholder considerations.Recognizing close linkage to First Nations considerations.Recognize the relationship and responsibility Industry and MEMPR have to the people of BC.Viewing tenure as an element in a continuum of the exploration and development process, rather than as a discrete compartment.Recognizing the close integration of tenure with the broader regulatory and royalty regimes.Creating and maintaining a fair, efficient, effective and transparent process for management of tenure across the province.Maintaining flexibility to address custom solutions for specific emerging play types and developing technologies.
76 Review of PNG Act & Regulations The Petroleum and Natural Gas Act (PNG Act) has not had an overall review since the late 1980’sA comprehensive review of the PNG Act is required to ensure it is responsive to both conventional and unconventional gas development and responds to government direction.Ministry/Industry working group has identified priorities for further discussionLegislation (PNGA)Expansion of Director of Petroleum Land’s discretionary powerLease term lengthsFees & rentalsRegulationTenuring processRental rates for all tenure types
79 Tenure Management Resources Available Tools Information PTS Web Information LettersReferral Maps, Sales Notices, Results Notices“Other Publications”Subscriptions byToolsPTS WebPTO: online Postings and MappingePayments
80 Online Tools – Titles Home Subscription Services ( )Posting MapsSale NoticesSale ResultsInfo LettersActs & RegsPublicationsPTO & PTS WebePaymentsThis really is the ONE resource you can’t do without, because it leads to almost all the other resources you’ll ever need to manage your tenure. What’s all here?On centre stage are instructions for subscribing to our distribution lists. There are currently 3 lists: Sale Notices, Sale Results, and Information Letters. Once you are subscribed to any or all of these lists, you will receive an copy of the relevant documents the moment they become public.On the left of the OGTB home page is a white banner with a list of links. These links lead to the bulk of the resources you’ll need so we advise everyone to make bookmark this page.
81 Online Resources Petroleum Titles Online (PTO) ePayments PTS Web ePaymentsPTS WebFrom PTO home, click “Title Searches (PTS Web)” linkIf you’re like me at all, you’ll like to set up shortcuts directly to what you need, rather than click through a mess of linksHere are some key URLs you can use to shortcut around the OGTB home page.Included here are the SUPPORT addresses you can send your questions, comments, and complaints to. Each of these addresses is monitored daily, so if you have a technical problem with any of the three services, please use these addresses to report the problem.
83 Description Amendments TITLE: DL DRILLING LICENCEDESCRIPTION AMENDMENT DATE : 2006-OCT-24AMENDED DESCRIPTIONTRACT 1NTS 094-P-10 BLK A UNITS 94 95NTS 094-P-10 BLK H UNITS 4 5INC : PETROLEUM AND NATURAL GASDOWN TO BASE OF JEAN MARIE ZONE20002 JEAN MARIE ZONE DEFINED IN THE INTERVAL4140.2' ' ON THE BHC SONIC LOG OF THE WELLW.A A-85-G/94-P-07.NO FURTHER TRACTSCONTAINING HECTARESDATED AT VICTORIA, BRITISH COLUMBIA2006-OCT-24THE DIRECTOR, ON BEHALF OFTHE MINISTER OF ENERGY, MINES AND PETROLEUM RESOURCES
84 Acts and Regulations Petroleum and Natural Gas Act Grid Regulation Drilling Licence RegulationFee, Rental and Work Requirement RegulationStorage Reservoir Regulation
85 Tenure Management + Time Things to Manage Land Zones Fluids Size Ownership+ Time
86 Land Survey SystemsDominion Land Survey (DLS)Petroleum Grid (NTS)
87 DLS PNG Grid Regulation Schedule 1 Familiar divisions: But in B.C… LSD – Section – Township – Range – MeridianBut in B.C…Legal Areas (for rent) defined by published map“Peace River Block Gas Spacing Units and Hectarage Map”Peace River BlockTWPsRGEs 13 – 26 W6M
89 Petroleum Grid (NTS) PNG Grid Regulation Schedule 3 Applies everywhere the DLS does notBased on longitude and latitudeSub-divisions achieve oil and gas spacing areas similar in size to DLSAreas taken from lookup tablesAlso for geothermal and coal tenures
93 Other-than-Normal Spacing Drilling and Production RegulationAdministered and declared by the OGCGenerally larger than normal spacing areasSome are already declaredPeace River Block – Petroleum GridBC – YT, NWT, AB boundariesBC – USAProtected Areas1 OTN gas spacing = 1 gas spacing for calculating earnings from Drilling LicencesAlternativesGood Engineering Practice (GEP)
97 Decoding Wells Well Authorizations (WA) Well Names Simple 5-digit number assigned to each well license the OGC issuesWell NamesConsists of: “Operator”, (“HZ”), “Field”, “Surface Location”, (“Exceptions”)DLS sample: BRC HTR BRASSEY , ANTS sample: ECAOG HZ SPRUCE b-013-D/094-I-16, b-A013-D/094-I-16Unique Well Identifiers (UWI)A 16-digit well identifier issued at spudNew UWIs added for subsequent drilling and completion eventsDLS: W603NTS: 200D024H094H1604Digit 1: DLS or NTSDigits 2-3: surface event sequence; see “exceptions” in well namesDigits 4-14: Approved or actual bottom-hole locationDigits 15-16: drilling or completion event sequenceFirst completion event in a drilling event gets same UWI as its drilling event
98 BC’s PNG Zone System Zones are packages of one or more formations Defined by specific intervals on reference well logsZone boundaries are carefully selected to avoid disputes; widespread markers in non- productive strata5-digit code and (often hyphenated) zone names34002 Artex-Halfway-Doig33012 Montney (excluding Basal Lag)15401 Muskwa-Otter Park-Klua-EvieZone code and nameDigits 1-3: relative stratigraphic positionDigits 4-5: geographic identifierNumbers increase from bottom to topDownload from “Other Publications” page
99 Zone? Pool? Formation?Zones are geographically constrained packages of one or more geological formationsPools are instances of specific formationsLand plats depict eligible spacing areas within specific formations and tenure areasLeasesProve a formation; continue a zoneDrilling LicencesEvaluate a formation; earn a zone (maybe)Rights usually described in relation to a zone base, e.g.:PNG Down to Base (from surface)NG In 36002PET From Base To Base 36002PNG Below Base 36002
100 Tenure Size (hectares) All tenure rentals are based on area, measured in whole hectaresPetroleum Grid (NTS) Unit“NTS Unit Areas” (download)Crown Publications map GM15For NWT/YT and other boundary areas, call usPeace River Block (DLS)Crown Publications map GM14 (2 sheets)Includes size of fractional spacing's on NTS/DLS boundaryDepicts lands in other-than-normal spacing areasRegardless of source, calculate area the sameSum individual unit areas in title, keep intermediate fractionsRound sum to nearest whole hectare
101 Tenure Size – NTSUsage; find the area of units of Block E in 094-H-06Map 94 EFGHSheet 5 to 8Block E F G HUnit 41-50Total: 6 X 69.8 or ha.
102 Tenure Size – DLS Fractional spacing areas are predefined Whole spacing areas are defined or inferredUsage; find the area inside the OTN GSA and secOTN: or ha.Sec : 263.9Total: ha.
104 Main Features A right to explore for oil and gas Available only by Crown salePostings up to one NTS block accepted, with causeRequires annual exploration spendingActual exploration or cash-in-lieu paymentsOne year initial term; renewable from 4 to 7 timesPermit ClassDetermines work requirements, rent, and renewal optionsClass B most likely
105 Permit Renewals Four to seven renewals (Class B) Annual application required to renew3 ways to obtain renewal approvalBy affidavit of expenditures for work doneBy cash-in-lieu of work not doneBy refundable deposit and work commitmentMay surrender all or part of a Permit at renewalPayment of applicable rent, fees, deposits, and penalties within 60 days after expiry
107 Permits – Lease Selection Fifth year work requirement must be met (Class B)Up to 50% of the Permit area is convertibleLeases must be configured, where possible, with 4 sides in 1 of 6 shapes defined by NTS units, andShapes must coincide with gas spacing areasLeases must corner other leases, or be separated by at least 2 NTS unitsExceptions made to reach 50% of Permit areaNo splitting of gas spacing areasExceptions are available where Permit shape or location prevents 50% rule, but in no case will any one Lease exceed 9 GSUs
108 Permits – Lease Selection Available lease configuration options, i.e., shapesExceptions may be considered if 50% rule cannot be met with these configurations
110 Main Features A right to explore for oil and gas by drilling wells Not a right to take production; but testing OKAcquired only from Crown SalePostings: 1 – 36 gas spacing areasTerm is 3, 4, or 5 years; depends on “Area”Term may be extended, at least once, more depending on circumstancesSplits not allowed; but partial surrenders OKConvertible to Lease by drilling or grouping
111 Term Extensions Section 3(5) - “Standard Extension” Available after expiry or other extensionAvailable once onlyPre-requisite for some other extension typesOne year$500 fee; double rent ($7/ha)ApplicationDue by expiry dateApply using ePayments
112 Term Extensions Section 3(5.1) - “Special Extension” Available after term expiry or another extensionRenewable, if delay persists and Director approvesRequires:WA application be filed with OGC at least 30 days before expiryStart of drilling is delayed past term expiry or extension by one of:Environmental or socio-economic studyPublic hearingPlanning or consultation processMay include DLs that would otherwise be groupedOne year, or lessApplicationApplication due by expiry dateNo extra feeNormal DL rent ($3.50/ha)
113 Term Extensions Section 3(5.3) - “Coal Bed Gas” Applications must be sent before expiryApplies only to land and rights within a coalbed gas project approved by the OGC under s.75 of OGAAMay be used 5 times after both the primary term and an "automatic" extension have expired
114 Term Extensions Sections 3(7), 3(9), 3(10) - “Drilling past expiry” Available only after the standard extension, s.3(5)Extends term to the date a rig is released from drilling operationsDrilling must be:Past 150m at midnight on expiry dateConducted “diligently”Rig may be withdrawn during drilling interruptions due to road bans or unsafe working conditions, e.g., avalanche hazardNo other well may be started during extension, except in the event of mechanical failures in the first wellOther DLs grouped with extended DL are extended to same date
115 Grouping One Group per Earning Well Criteria for inclusion: In the opinion of the Director, an "earning" well exists or has been spudded on one of the DLs to be groupedAll DLs to be grouped lie within 4 km. of the DL with the earning wellUse scaled map, GIS, PTO ViewerCall to receive written verificationWritten application and ePayment submission sent before earliest expiring DLWritten authority of one titleholder of each DL if applicant is not the Payor or a titleholder of all DLs
116 Grouping Maximum Number of DLs in a Group Depends on number of whole gas spacing areas in DLs to be grouped at time of issueIf any one DL had more than four gas spacing areas, the maximum is two DLs in the groupOtherwise, number limited only by distance from DL with earning well, i.e., 4 km. rule always appliesRules aim for tighter link of risk to reward
118 Grouping – Distance Guide Four NTS Units or DLS quarter-sections are always less than 4 kilometres when measured directly north- south or east-westFor all other circumstances, use caution, i.e. GIS:Shortest distance is a diagonal lineShortest distance is E-W or N-S, but across the DLS/NTS boundary
119 Lease Earnings Awarded in terms of gas spacing areas and zones GSAs awarded depends on:Prescribed Area of DLWhen DL spans two or more Areas, earnings are based on the Area with the greatest earningsWhen well penetrates 2 or more DLs, applicant nominates one DL to the ‘drilled’ DL for both earnings and grouping eligibilityCombined length of drilling eventsLess any length drilled through rights held by lease that are not necessary for the purpose of evaluating the DLZones awarded are to base of deepest zone "evaluated”Evaluated = “significant” new geological informationVerifies existence of new hydrocarbon-bearing reservoirEstablish that a known reservoir is wet or absentEstablish the sedimentological or structural characterization of a zone in a new area
121 DL Term and Earnings Download from: Info Letter TITLES-05-03 “NEBC DL Boundary .pdf Map”Wall size; print with plotter
122 When is a Zone “evaluated”? High‘Significance’ of info rises with:Quality and variety of information collected, andProportion of zone evaluated, andDistance from comparable playsSignificant New Geological Information CollectedLowLowHighCertainty of Earning the Zone
123 Earning Wells Definition before August 20, 2009 remains in force "A well drilled in a spacing area all or part of which is in a location described in a drilling licence, and includes a well redrilled in a spacing area formerly described in a(a) permit,(b) drilling licence, or(c) lease... no longer in effect"A "redrilled" well includes a "recompleted" wellIf the completion is over an interval not previously completed, or, if previously completed, it will provide significant new information
124 Earning Wells Amendments of August 20, 2009 Wellbore must be first to evaluate a particular zone on at least one spacing areaOne well may be first to evaluate several spacing areasEvaluation is deemed to have occurred when either:150m of wellbore has been drilled in a spacing area, orthe Director is satisfied the well evaluates the zone first
132 Lease Selection Applications e-Payments Submission THEN Application Letteradd Letter of Authority if neither Payor nor TitleholderInclude e-Payments Submission number in subject lineLetter must include, for each earning well:Name and OGC Well Authorization (WA)Estimated total eligible wellbore lengthEnclose the directional survey where applicableEstimated earnings (gas spacing areas)Statement of deepest evaluated formation or zoneDesired configuration of LeasesEarnings from two or more WAs may be combinedUse legal descriptions that match formats used in the Drilling Licence
133 Lease ConfigurationThe number and location of selected Leases are up to the applicant, except Leases must:include all spacing areas to be placed on productionbe located entirely within one DLcontain only contiguous tractsnot result in split gas spacing areas (oil wells excepted)
135 Leases A right to explore for and produce oil and gas Available from Crown SaleMax. posting is 1 GSUConverting Permits and Drilling LicencesSplit from another Lease (transfer)May be continued beyond term
136 Leases – Term Inside Area 1: 5 years Outside Area 1: 10 years A Lease overlapping both areas has a 5-year termPosting requests and Lease selections intersecting the boundary should be done carefully!
137 Leases – Continuations Several formsSection 62Section 61Section 61,1 (rights revert – zone specific)Section 58 (rights revert – deep or specific)One year, in all casesDownload from “Other Publications”:“Lease Continuation Options”"Recommended Technical Package Contents"
138 s. 62 Continuation Continuation by payment Year 1 $15.00 / HaYears 2 or 3 $25.00 / HaAvailable three times for any 10-year LeaseNo rights reversionNeed not be used in consecutive yearsApplication made through ePaymentsUse the statement when no other continuation types are anticipated for the Lease, orUse submission and written application when other continuation types (splits) are anticipated or desired for the Lease
139 s. 61 Continuation Continuation by drilling commitment Drill at least one well on location of Lease during continuation that evaluates at least one zone held by that LeaseDrilling past expiry OK, but must make best effort to reach target zone(s) named in Well AuthorizationAvailable for any LeaseNo rights reversionMay be used more than once, but spacing area(s) of successful commitment wells will be split out under s.58Applies only to Lease(s) being drilledApplications made through e-PaymentsMust make Submission and written application
140 s Continuationa.k.a. 61WContinues spacing areas in relation to existing and planned disposal operationse.g. water, CO2, waste fluidsShallow and deep rights revertSpacing areas included in projects approved under s.75 of the Oil and Gas Activities Act are not eligibleWritten application with supporting technical material to accompany e-Payments for first approvalOnce approved, application is by annual rental until further notice by Director
141 s. 58 Continuation Four types of continuation: 58(3)(a): Eligible Spacing Areas58(3)(b): Unit agreements58(3)(c): Work programs58(3)(d): Establishing a wellAll s.58 continuations subject to rights reversion, deep or specific zones (s.59)Leases approved under two or more s.58 sub- section may have to be split
142 s. 58 Continuations. 58(3)(a) – Eligible spacing areas are spacing areas that:Contain a “petroleum” or “gas” wellAre located in a project area approved by the OGC under s.75 of the Oil and Gas Activities ActAre >50% covered by a designated EMPR pools (aka: land plat)Are being drained from an adjacent spacing areaOnce approved, continuation is by rental payment until further notice
143 s. 58 Continuation Section 58(3)(b) - “unit agreements” Spacing areas within Unit AgreementsOnce approved, continuation is by rental payment until further noticeSection 58(3)(c) - “work programs”May include multiple leasesNot intended for multi-year exploration programs, depends on circumstances (e.g., access, scope)Section 58(3)(d) - “incomplete drilling”The drilling of, or work on the establishment of, a well is incomplete on the expiry dateThe Director is satisfied that the drilling or work will continue
144 s. 58(3)(c) General Features May include multiple Leases, even multiple target zones, and different expiry datesRequires written commitment to specific workMajority are one year only; exceptions to this on a case-by-case basis, typically due to very limited access and unusually large project scopeNon-performance of commitments jeopardizes future work program approvals
145 s. 58(3)(c) Application must include: Technical package contents The locations to be includedThe formation(s) that will be delineatedA firm commitment, e.g. “XYZ Corp. commits to carry out the following program of work: . . .”A clear depiction (map) of where the work will take place in relation to the locations to be includedA clear explanation of how the work will delineate a hydrocarbon-bearing reservoir on each spacing areaTechnical package contentsmust demonstrate how the work will “delineate” a field or poolSimple – notice of a new wellComplex – interpreted seismic, X-sections, well results, etc.
146 s. 58(3)(c)Programs with seismic components require a geophysical report at year endResource DocumentLook for “Requirements for Affidavits and Reports” in the chapter appendix or here:
147 s. 58(3)(d)Designed to allow leaseholders to finish “establishing” a well clearly in progressApplies only to a single LeaseAt minimum, must have Well Authorization before expiryEstimated rig release date well past expiry60 days to make any s. 58 application, butWe encourage s. 58(3)(a) within 60 days where possibleMore scrutiny if well not spud by expiryAll rights below the base of the deepest objective zone named in the Well Authorization (WA) are subject to rights reversion, deep or specific
150 ePayments Mandatory – October 2009 Online statements, payments, and receiptsClient initiates payment – NOT Auto DebitPayments associated with Rent and Fees for lease selections, extensions, continuations and primary term annual rentalsElectronic refunds – Mandatory Oct. 1, 2010NOT included in ePayments – requires chequeSplit TransfersPermitsOIC - S 72 AgreementsUnderground Storage Leases/Licences
151 BCeID is a Portal or Passport Petroleum Titles OnlineIntegrated Land Mgmt RegistryMineral Titles OnlineBCeIDTitles, Aboriginal & Corporate Relations Division assigns Subscription CodeBCeID is a Portal, or Passport, to all online systems in the BC Government. You need a Unique BCeID, under your corporate umbrella, to access any of these online systems.ePayments is just one of these online systems that you need a BCeID Username for, whenever you want to access it.BCeID is an entity that assigns BCeID’s.The Titles, Aboriginal & Corporate Relations Division is a separate entity that will assign your Company Administrator a Subscription Code for entry into its online ePayments system.ePaymentsGATORCrown LandCorporate Registries
152 Obtain a BCeIDIf you are not sure if your company has a BCeID, go to the BCeID website and click on ‘Is My Business Already Registered’.From there, type in your company name and click on Search.If your company is registered, the name of your BCeID Profile or Account Manager will appear.If you are the Company Administrator, contact that person to obtain a unique BCeID Username and Password for each person who will be accessing ePayments.If your company is not registered, you will need to appoint a Profile Manager (could be your Company Administrator) and request a registration package be sent to your company headquarters for completion and submission to BCeID.Your BCeID corporate registration package will be sent to your corporate headquarter in BC, which could be a lawyer’s office.If you are the BCeID business profile or account manager, you will need to let them know the package is coming, so they will know what to do with it.If you are the BCeID business profile or account manager, you will also need to follow-up to make sure the documentation gets completed and sent back to BCeID, so your Company Administrator can get your BCeID Usernames and Passwords.Once you receive confirmation your company is registered, your BCeID business profile or account manager will assign unique BCeID Usernames and passwords – first to your Company Administrator, then to all the other Users who will require access to ePayments.Individual BCeID’s, not under the corporate umbrella, are not acceptable for using ePayments.
153 BCeIDDo not share your BCeID password with anyone except the Company AdministratorSharing BCeID Passwords means you are not using the system securelyYou can identify who makes transactions by their BCeID for audit purposesYou will need to share your BCeID Username with your Company Administrator, so they can add you to ePayments.You should not share your password with anyone.If you are sharing passwords, you are not using the system securely and you will not be able to identify who conducted transactions in ePayments.This information is not readily available to the client, but can be obtained by contacting the Ministry, should an occasion arise where it is necessary to obtain that information.Also, when someone leaves your company that has your username and password, you cannot prevent them from accessing your company’s information on ePayments until you change the password. This leaves your company’s confidential information vulnerable.
154 ePayments - Next Steps You have your BCeID... Company Administrator requests subscription codeReceives code then signs onto ePayments main pageEnter subscription codeAdd other authorized user’sIf you are going to be a payor on titles you will need to submit Pre-authorized Debit formsRental and Fee PADRental and Fee PAD for refundsA BCeID, subscription code and PAD forms are required for each of your company entitiesEpayments administrator should be someone who is involved in the day to day land administration functions.
155 ePayments – User Roles BCeID Profile Manager Applies for BCeID Appointments Company AdministratorCompany ePayments AdministratorAssigns roles to other users; can view, add or change banking information; can perform all functionsPayment AdministratorsMake the actual paymentsLand AdministratorsInitiate submissions to continue titles beyond their primary term and convert drilling licences to leaseViewersView Only access – financial and/or senior staff that are not required to conduct transactionsLet’s review the User Roles you can have in ePayments.Beginning with the Company Administrator, who not only has the authority to assign roles to other users, they have the authority to conduct any required function in ePayments.If you are the Company Administrator for your company and there are no other members in your payment team, you do not need to assign yourself other roles.You can do everything as the Company Administrator.The Payment Administrators make the actual payments and you can have as many Payment Administrators as you need.The Land Administrators create Submissions to continue titles beyond their initial term, convert drilling licences to lease and authorize the Payment Administrator to make payments from Statements.You can have as many Land Administrator roles as your team requires.Viewers have view only access. This role would likely be assigned to management and accounts staff who only require the ability to view and print reports.If you need to be assigned both Payment Administrator and Land Administrator roles, that can be done too. When you log on, using your BCeID username, you will be asked to choose which role you wish to work under.
156 ePayments - Designated Payor Companies will need to designate payor on all title they have ownership inPayor’s cannot be designated 11 days prior to the anniversary date and 60 days afterAny registered owner or designated payor can nominate a designated payorCrown Sale, bid letter must include who will be the designated payor for future rental paymentsWhen a title is issued by other means, the Designated Payor is defaulted to the registered Owner with the highest interestIn the case of 50/50, the decision will be made alphabeticallyLet’s talk about the concept of a Designated Payor.There was much discussion as to who should be the Designated Payor in ePayments and whether there should even be a Designated Payor.While the Ministry will accept payment from any party, the Ministry also requires that only one party make payment on a title, to avoid duplicate payments, so that limited the concept to a Designated Payor.As to who that should be, there was also much debate.After several discussions, the Industry Working Group and the Ministry agreed that any registered Owner or Designated Payor can nominate a Designated Payor. This rule was created to satisfy and offer flexibility for different requests from different companies.The Designated Payor is the party to whom the registered Owner gives the right and responsibility for making payments and making decisions on payments, continuations beyond primary term, converting drilling licences to lease and cancelling titles to.If a registered Owner does not want a 3rd party to make these decisions, they should appoint themselves as the Designated Payor.If there is more than one Owner, you will have to reach the decision between yourselves.The Ministry will not decide for you, but upon issuance of a title the Designated Payor responsibility may default to the Owner with the Highest interest, or in the case of equal interests, alphabetically, unless otherwise instructed by a registered Owner.
157 Primary Term Continuation Conversion Payment TypesPrimary Term Continuation Conversion
158 All Titles ScreenTo view all the titles you are a registered Owner and/or Payor of, click on TitlesThe All Titles page is a LIST of titles you are either an Owner or a registered Payor of. It is not a Statement and you do NOT make payments from this screen, but you will want to use this page to make sure ePayments is listing all your titles.If you don’t see a title and think it should be there, ask yourself if you are the registered owner or if a Broker is.That could be why you’re not seeing it.If your company should be the Payor and isn’t, contact your Broker or the Registered Owner at least 15 days before the anniversary date of the title and ask to be nominated as the Designated Payor. You will have to talk to each other. We will talk about the concept of a Designated Payor in the detailed review.
160 Statement Types Primary Term Statement Continuation/Extension StatementSubmission Request StatementThe Statements were divided into three unique sub-sets - Primary Term, Continuation/Extension and Submission Request Statements - to allow Payment Administrators to manage their titles more efficiently and with greater clarity.The Industry Working Group requested the original Current Statement be divided into three statements, rather than two for Phase 2, to distinguish titles being continued by way of a payment from those being continued by way of a Submission or application.We will be talking about the concept of a Submission in the detailed review, but for now let’s give everyone a brief definition.Remember that all three Statements must be viewed and, if necessary, paid each month.
161 Primary Term Statement Unpaid titles, Carried Forward from the Previous Statement, appear under the red heading bar.Unpaid titles that are part of the Current Statement appear under the blue heading bar.There are two different coloured header bars in the Primary Term Statement.You may find that, if you are paying several months in advance, you may never see a red header bar.If you are paying only one month in advance, you will always be paying the titles that are under the red header bar.It all depends on your internal process and requirements.Just keep in mind that titles paid after their anniversary date will be subject to late payment penalties, just like before ePayments.The Primary Term Statement displays all titles within their primary term that you are the Designated Payor of. If you are the registered Owner of a title, but not the Designated Payor, you won’t see the title on your Primary Term Statement. You must be the Designated Payor to pay it.Every ePayments User within your company will be given 150 days, or 5 months, notice of what primary term titles are owed, prior to the anniversary date of every title you are a Payor of.The Statement is always available for viewing and you will be reminded at the beginning of each month to view and pay it.To pay all of your primary term titles from the Statement, click on the Select All checkbox at the left of the header line – either red or blue. The Select All checkbox will be disabled if not all titles are available to be checked. This would occur, for example, if some titles are already part of a Pending Payment.
162 Continuation Submission From the Managing Expiring Titles screenWe Create a Continuation/Extension Submission from the Manage Expiring Titles screen. Again, we will be going over this in the Detailed Review. This is just a screen shot to give you a general overview of the screens available in ePayments.
163 Items to RememberSubmission’s should contain titles that are linked geologically or geographically and share a common technical packageConfirm payment is made (Payment Acknowledgement No.)Submit letter and technical packageInclude submission number in your application letter
164 Convert to Lease Submission From the All Titles screen1. Check Title 2. Click on Create Pending SubmissionCreate a Convert Drilling Licence to Lease Submission from the All Titles screen by clicking on the drop-down list and clicking on Convert to LeaseThe data table will display all titles that are eligible to be converted to Lease.They will all be drilling licences.Check the title or titles you wish to convertClick on Create Pending SubmissionREMEMBER: When you are creating a Conversion Submission, you are calculating and making payment on the ‘child’ leases only. Continuation of the remainder of the parent DL [if there is anything remaining] must be done under a separate submission or from the Continuation/Extension Statement.We will talk about groupings separately.
165 Convert to Lease Submission You can adjust the HectaresAll fees will be calculatedYour Pending Submission Number will appearYour Pending Submission Number will appearThe type of submission will be displayed - ConversionThe fees associated with each title will appearFrom here you can edit the Submission by adding another title,Deleting a checked title, orDeleting the entire Pending Submission, if you decide to start overYou can add another child lease from a checked title by checking it and clicking on Add Lease to Checked Title.You can also add another Parent title to the Submission and subsequent child titles to that parentYou MUST click on the Save Modified Pending Submission button to Save your Submission, before you close the screen, or the titles will be locked and you not be able to return to the submission. It may mean a telephone call to the Ministry to get them unlocked.
166 GroupingsFor each Grouping, whether 2 drilling licences or a cluster of drilling licences, they should go together in the same Submission, if they’re relatedIf the Groupings are not related, they should be in separate Submissions.
167 Groupings – 2 DLsTwo DL’s grouped together should be submitted as one SubmissionDL 1DL 2
168 Groupings – Cluster (all within 4 km of each other) DL 5DL 4DL 1DL 3Multiple DL groupings that have a DL that is used more than once should be submitted as one SubmissionIn this example, All of these DLs are related somehow because of the way they are grouped.They should be included in one Submission. Grouping DL’s relates them.You could group DL 1 with DL 3; DL 3 with DL 4; DL 1 with DL 2; DL 1 with DL 6; DL 2 with DL 6; and DL 4 with DL 5. They are all related somehow and should therefore be in One Submission.You could ultimately end up with 6 leases - one from each of these drilling licences, because you have 6 earning wells.If you send in a Submission on DL 1 and DL 3, you cannot follow it with a separate submission involving either DL 1 or DL 3. Once a title is part of a Submission, it cannot be part of another Submission. You must submit them all under one Submission.The entire paper application has to come in as one too. You should not send it in separate packages. It must come in at the same time as a cluster. If anything is ‘missing’ from your Submission, we can’t process it.Also important to note is that BOTH the payment and the paper documentation for your application must be in the Ministry’s office by midnight of the expiry date on the earliest expiring drilling licence, or before a well on one of the DL’s goes on production. This is no different from prior to ePayments.Your Submission Number must be included with your paper application, so the Ministry can match your application to the payment made in ePayments.DL 2DL 6
169 Continuing your Tenure Continuation/Extension(Managing Expiring Titles Screen)NO Paper Application RequiredTypes of PaymentsFinal Year–Primary Term–10year - When applying forSection 6258 A, B and 61.1 (repeat only)62 (1, 2, 3)Drilling Licence Extension 3.5Submission(All Titles Screen)Paper Application RequiredFinal Year–Primary Term-5 year58A & B – 1st year58A–no longer eligible–continue under other section58C & D, 61DL extension 3(5.1) Environmental – 1st yearDL extension 3(5.3) Coalbed Methane – 1st yearLease Selections (conversion)
170 RECAPContinuation/Extension Submission Create from: Manage Expiring TitlesConversion Submission Create from: All TitlesContinuation/Extension Submissions are always created from the Manage Expiring Titles screen.Conversion Submissions are always created from the All Titles screen.Remember to write the submission number on the written application before submitting to the Ministry.Include Submission Number on Written Application
171 Managing Rental Deadlines Default Notices eliminated July 1, 2010Manage titles from the All Titles screenEpayments sends you a monthly reminder to view your statementsOverdue titles are shown in purple and fall off ePayments on day 60 past expiryDefault letters became a thing of the past, effective July 1, 2010If you want, you’ll be able to go online every single day to view what titles are due, for how much and when.Your Statements are available for viewing any time.You will receive a monthly reminder to view them, but you can look at them as many times as you want, whenever you want.The Ministry will continue to send a cancellation letter to all registered Owners, after a title has been cancelled.You may or may not receive a courtesy call before the 60-day period. Don’t rely on it.
172 Late PenaltiesLate penalties are automatically calculated once the anniversary date has passedPermits (Manual Payment)Day 1-10 $100.00Day $500.00LeasesDay %Day – 3.0 %Drilling LicenceDay 1-60 $500.00Should the time between when you create your Pending Payment and when you return to epayments to Make Payment be long enough, late penalties may be incurred and calculated into your Pending Payment.ePayments will calculate these late penalties itself and add them to your Pending Payment.You have no choice but to pay them because you cannot pay them separately.If you are paying far enough in advance, this should not be an issue.However, if it is….
173 Cancellations Request from All Titles screen Ministry will cancel 60 days after anniversary date and send confirmationCheck title to be cancelledCan be reversed by selecting title and hitting Cancel Requestministry to confirm reversalManual letters for titles not included in ePaymentsPage 173.
174 Letters of AuthorityLetter of Authorization’s are needed when you are neither a owner or payorRequired for Titles not covered by ePaymentsThe registered Owner’s intent is implied by authorizing the Designated Payor to make decisions on the titleThis is probably a good time to talk about Letters of Authority.Letters of Authority for Section 62 continuation of leases and 1 year extensions of drilling licences and any title added to the Continuation/Extension Statement and paid through the Statement will not be required.For Submissions, as long as the Designated Payor submits both the payment and backup documentation, Letters of Authority will not be required.By nominating a Designated Payor, you are giving them the authority to make decisions on the title.If you, as a registered Owner, are not comfortable with that authority being held by another party, then nominate your company as the Designated Payor.This includes Letters of Authority for: 58A first year, 58C, 58D, 61, 62’s, drilling licence 1 year extensions, environmental and coalbed methane extensions and lease selections.If a party, other than the Designated Payor, sends in backup documentation for a Submission, a Letter of Authority may be required.Please refer to the Quick Reference sheet to determine if an LOA is required.
175 Training Information Self-Tutoring Online: Modular Self-paced Computer-basedGetting Started, Self-Tutoring, FAQ’s & Quick Reference Tool available onlineCalgary–contact CAPLA:Victoria - contact:
177 Power-of-Attorney No fees required Cover letter is required Power of Attorney documents should have original signatures or be a Certified True CopyThe document must clearly state the types of document that the person/position is authorized to sign on behalf of the companyA registration number will be assigned to the company upon the initial registration, this number will be used for all future registrations
178 Partnerships Permitted to hold title in BC Partnership needs to provide documentation showing the partnership structureDocumentation must be signed by all parties of the partnershipContact Oil & Gas Commission to confirm requirements to licence well
179 Title Transfers No fees required Cover letter must accompany documents Transfers are considered effective from the date received, not the execution dateStale-dated transfers are acceptableChanges are recorded against title specified in the documentOnly transfers of undivided interest are permissibleSignatures in counterpart are acceptableAny color ink acceptable for signaturesElectronic Signatures and signature stamps are not acceptablePage 179.
180 Title Transfers Transfer documents must: Be originalsList all title numbers to be transferredBe executed by all transferors and all transfereesSubsequent edits must be initialled by all partiesA properly “executed” document is:Dated, andSigned by a signing officer of the firm or by a person with a Power of Attorney registered with Titles, Aboriginal and Corporate Relations Division, andWitnessed or affixed with a corporate seal
181 Title TransfersSchedules are permitted and should include only the title number and the company reference numberTransfer documents must specify interest as a percentage of the undivided interest8 decimal places (max)Interests displayed as percentages of percentages are not acceptable:Interest amounts are not required on transfer of all a companies interest in a title45% of their 50% interest = 22.5%We would need to see 22.5% undivided interest
182 Title TransfersSample forms available from the Division website, no prescribed form necessaryInformation Letter EMD-008Must not contain implied or explicit encumbrances, eg: “subject to” clauseDo not send title documents with your transfer requestUse full legal name of companiesIf legal descriptions must be included for corporate reasons, they:Must be identical to registered legal descriptionMust include complete tract rightsPage 182.
183 Split TransfersA procedure to divide one lease into two or more leasesLeases only$ fee for each new lease to be issuedLeases may be divided by:Surface hectaresStratigraphicA combination of both
184 Split TransfersAll criteria applicable to simple transfers are applicable to split transfers, plus:“in and to a portion of….” must be used on the transfer documents”Legal descriptions of the transferred portion, including the rights held by that portion, must be specifiedMust not divide gas spacing areas containing gas wellsMay divide gas spacing areas if:Contains an oil well; orSpacing area already splitPage 184.
185 Pooling Agreements Purpose – joint development of a spacing area Recorded in the Oil and Gas Titles BranchLetter contents:Name all title holdersTitle numbersWell authorization No.UWI of wellDate of Pooling AgreementSignature of all title holders
186 Encumbrances Information Letter EMD02-01 A claim or lien placed on a title by a third-partyNOT a legal registry; information purposes onlyEncumbrances do not restrict the application of any provision of the Petroleum and Natural Gas ActExamples of types of documents:Bank Act assignmentDeed of TrustDebentureMortgageBuilder’s Lien
187 Recording Encumbrances Requests must include:Letter of instruction and feeState the type of encumbranceState the full legal names of the companies involvedEncumbrance documentOriginal or certified true copyDocument must be dated and signed by a signing officer of the company holding the encumbranceFee:$50.00 per title per encumbrance, includes discharge
188 Discharging Encumbrances Requests must:Be dated and signed by a signing officer of the company holding the encumbranceInclude original encumbrance registration numbersState the type of encumbranceState full legal names of the companies named in the encumbranceInclude the date of the original encumbrance registrationInclude the date of the encumbranceIndicate if the discharge is full or partialList only active title numbers to be dischargedOriginal signatures or certified true copyEach encumbrance must be discharged with a separate document
189 Copies of Encumbrances Requests for copies of encumbrances can be sent by faxFax: (250)Send to Attention of : Diane JensenFees – minimum charge of $10.00, or .75 cents per page whichever is greater, an invoice will be sent with the documentsWe copy the first 10 pages of the documents and the signature page only, due to the size of some encumbrance documentsReturn by fax or up to 50 pages, by collect courier or mail – include your courier name and account number with your request
190 Name Changes & Amalgamations Requests must include:May be sent by mail, fax orLetter or requestCopy of certificate and articles of amendment, photocopies are acceptableChanges are only recorded against “active” titleAll federal and provincial certificates are accepted where:Jurisdiction and registration numbers are includedFull legal names of the parties are used
191 Signed Title Searches Available if required Send request via fax or mail to Diane JensenResults can be delivered by:Fax or – up to 50 pagesMailCourier (sent collect)Fees $7.50 per title numberInvoice will be returned with request
192 PTS Web Search www.ptonline.gov.bc.ca Title number and type Term and AreaKey Dates: Issuance, Effective, ExpiryTracts – Lands and Rights heldOwnershipContinuation HistoryTransfer HistoryEncumbrance HistorySpecial Projects, Wells, Units, Groupings
193 THANK YOU ! Laurel Nash 952-0335 Christine McCarthy Terry Branscombe GENERAL INQUIRIESPhone.