2015 CAPL Operating Procedure
Fun fact: The light blue colour for the cover page honours Jim O’Byrne and those involved in the creation of the 1974 CAPL Operating Procedure by using the same colour as was used for the cover page of that document. In part, this also reflected our belief that history would repeat itself and that industry would accept the 2015 document much more easily than had been the case for the 2007 document.
Here is the hyperlink to the CAPL website content respecting the 2015 CAPL Operating Procedure and prior versions of the Operating Procedure: https://landman.ca/downloads/bizforms. The CAPL website includes materials in addition to those provided here, including the annotated version of the document, a redline copy relative to the 2007 document and a downloadable election sheet.
Doing the update to the 1997 CAPL Farmout & Royalty Procedure in parallel with the update to the 2007 CAPL Operating Procedure created an alignment between the 2015 versions of those documents that reinforces the use of each document. The interrelationship between those documents is such that the vision for future updates is to continue to prepare them in parallel.
Although there were a number of changes between the 2007 and 2015 documents, they were typically a combination of changes associated with well pad developments and “long reach wells” and relatively minor drafting changes. The three-phase industry review process on the 2015 document basically validated the quality of work done with respect to the 2007 document, such that this should increase significantly the comfort of users previously uncomfortable with the 2007 document.
Matrix of Changes: Here are a 20-page matrix of changes between the 2015 and 2007 documents and a 68-page matrix of changes between the 2015 and 2007 documents relative to the 1990 document. They provide a context for every material change in the documents and the rationale for each change. They offer a compelling case for change that can largely be summed up in two words - horizontal wells.
2015 & 2007 Changes Relative to 1990
Overview Presentation: Here is a PDF of the overview presentation that highlights the major changes between the 2015 and 2007 documents.
CAPL Negotiator Articles: (i) Here is a PDF of a series of articles published in the CAPL Negotiator in 2016 to facilitate industry’s transition to the 2015 document by outlining the major differences relative to the 2007 document and a 2018 article in the Negotiator about a potential approach with respect to possible updates of older agreements.
2015 Transition Negotiator Articles
(ii) Here is a PDF of a three-part series of articles published in the Negotiator in the fall of 2019 and January, 2020 with respect to the handling of defaults and delinquent parties under the Operating Procedure.
Negotiator Articles on Default & Delinquent Parties
(iii) Here are two articles published in the CAPL Negotiator in 2021 with respect to the evolution of Clause 24.02 of the CAPL Operating Procedure over time.
(iv) Here is a link to a Negotiator article about whether a party may unilaterally propose to drill a horizontal well to exploit both the Joint Lands and other lands in which it holds an interest.
Negotiator Article On Hz Wells Proposed To Be Drilled Beyond Joint Lands
Evolution of the CAPL Operating Procedure Over Time: Here are several matrices that review the evolution of modules of content of the CAPL Operating Procedure through the various versions of the document respecting: (i) approval processes for expenditures; (ii) the cost recovery/production penalty process; (iii) the processes respecting surrender and abandonment; and (iv) the disposition of interest process.
CAPL Approval Processes Overview
CAPL Payout & Cost Recovery Overview