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September 2019

2019-2020 PRESIDENT'S MESSAGE
PJVA Luncheon September 12, 2019
Notice of PJVA Annual General Meeting
Stampede 2019
Article: Why I Work in Oil and Gas
JV Certificate Program Volunteers are required!
Who's On Board?
Nebraska Supreme Court Affirms Keystone XL Route Approval
'Noise' Makes Trans Mountain Pipeline Bid Unlikely: Pembina CEO
Alberta's smaller oil producers eye output boost after curbs lifted
UofC Petroleum & Energy Society (PES) Launches 2019-2020 Mentorship Program




2019-2020 PRESIDENT'S MESSAGE

As I sit back and reflect on the year that was 2018-2019 I'm struck by a few thoughts. Our industry and our community remains in a state of flux and with that comes uncertainty and unrest. No longer is it an industry of breakneck speed of operations and profits, we are but a fraction of what we used to be. It is precisely due to this that I believe the PJVA and the functions we provide are needed now more than ever. When costs are being scrutinized and commodity prices are lower than ever, who better to be minding the store?

PJVA has a plethora of educational, model agreements and networking offerings which creates a solid foundation from where its members can embark on fulfilling those vital tasks for their companies. Creating and maintaining that foundation is what the PJVA Board of Directors does year in and year out. We are a volunteer organization and it is simply amazing that year after year, we have so many great volunteers working towards that common goal. A few years ago, an effort for the board to be more open and transparent was undertaken and it is in this spirit that we want to evolve and have more participation from our membership in all things PJVA. September 17, 2019 is a step in that direction. In years past, the Annual General Meeting was a footnote at the September luncheon. This year it is a standalone meeting geared towards providing attendees with more insight into who the Board is and what they will be working on this year and into the future. I encourage members to sign up as soon as possible, as seating is a little limited, for this first ever separate AGM (please refer to the website for further details).

We, as a Board, also have to finish what has been started by previous leaders of our organization. Several years ago, an initiative to re-Brand all things PJVA was started. To date, we've made great strides. However, we have more work to do to complete this. In an effort to clearly firm up that foundation for our membership, I'm hopeful that this fiscal year will see the launch of a new suite of agreements, courses, course materials and last but not least: New ways of consuming those products and services.

I would be remiss if I didn't say a heartfelt Thank You to our outgoing Directors and a vigorous welcome to our new Directors. Through the hard work and dedication of those Directors that have served before us, the PJVA has benefited and will continue to benefit through the on-going hard work of those joining our ranks this year. Your 2019-2020 Board of Directors:

  • Richelle Lindsay (Crescent Point Energy Corp.), Past President
  • Helen O'Brien (Husky Energy), Vice President
  • Kevin Myson (Bennett Jones, LLP), Chair - LMS
  • Kody Carroll (Integrity Audit), Treasurer
  • Maureen McCall (Independent), Luncheons
  • Bradley Hodges (Consultant), Sponsorship
  • Claire Turner (Crescent Point Energy Corp.), JV Administration
  • Kevin Kalra (Steelreef Infrastructure Corp.), Marketing
  • Dan Tonellato (Repsol Oil & Gas Canada Inc.), Seminars
  • Mark Pelzer (JVSA), Seminars (D.I.T.)
  • Randy Tomilson (Retired), Education
  • Brittaney LaBranche (BDP), Director at Large – Legal
  • Jana Prete (Bennett Jones, LLP), Social/Membership/Volunteers
  • Jaime Botero (Repsol Oil & Gas Canada Inc.), Membership/Volunteer
  • Darren Belak (Retired), Social Events
  • Doug Klug (Independent), EMS
  • John Downey (Enerplus Corp.), Task Forces
  • Connie Pruden (Associations Plus Inc.), Administration

I look forward to working and meeting with new people this year and spending time with many of you over the course of the year to come.

Grant Feddema (PETRONAS Energy Canada Limited)
President, PJVA
#Stronger Together



PJVA Luncheon September 12, 2019

The Canadian energy sector is facing tough times with challenges like the impact of the Carbon tax, Bills C-69 & C-48, regulatory paralysis, pipeline project cancellations, market access challenges, an unsupported natural gas sector and investor disinterest to name a few.

The September PJVA Luncheon looks to discuss some of these issues in a panel discussion on "Canada's Energy Security - Federal & Provincial Cooperation and the Energy Corridor Approach". The speakers are from Government, Industry and Academia - Dale Nally, Alberta Associate Minister of Natural Gas; Kevin Birn - VP, North American Crude Oil Markets, IHS Markit; G. Kent Fellows, Research Associate at U of C's School of Public Policy and Greg McLean CIM, MBA - Criterium Merchant Capital.

Thursday, September 12th from 11:30 am to 1:00 pm at The Calgary Petroleum Club. Tickets are $50.00 for members and $60.00 for nonmembers, plus GST.

REGISTER NOW

Sponsored by

Maureen McCall
PJVA Director - Programs-Luncheons



Notice of PJVA Annual General Meeting

This year's AGM is being held separately from the September luncheon so that membership can have access to far greater detail about what their Board has been, and will be, working on.

Tuesday, September 17, 2019
7:30 am – 9:00 am
Petronas Canada
1600, 215 – 2 Street SW

Agenda

  1. Call to order
  2. Reading and Dispensing of the Minutes from the Annual Election Meeting of June 20, 2019 and the
    Annual General Meeting of September 13, 2018
  3. Financial Report
    Approval of the June 30, 2019 Financial Statement
  4. Appointment of Auditors 2020
  5. 2018/19 Directors' Highlights
  6. Ratification of the Actions of the Board of Directors
  7. Recognition of Retiring Directors
  8. Recognition of Volunteers
  9. New Business
  10. Adjournment


Stampede 2019

A major Calgary event took place this summer: Stampede. As ever, it contained a lot of variety and involved many professionals from the Oil & Gas industry. Here is my summary of my participation in the 2019 Stampede, along with profound analysis.

Stampede brunch hosted by Calgary UCP

My first Stampede event was a brunch which took place in a parking lot close to Southcentre Mall. A spirted beginning to the Stampede, it included an orchestra and I had my first of many pancakes. I welcomed the opportunity to speak with my recently newly elected MLA, Rebecca Schulz (UCP).

Getting to know a voter she had never met, I let my MLA know that most of my network in the Canadian Oil & Gas industry were pleased that the provincial government had recently changed. I also mentioned that the same individuals were hoping for a change in federal government in October: "The current government is doing the same thing to the economy and national unity." MLA Schulz then followed up by asking what that was. My reply: "Sabotage."

Family Day breakfast at Stampede stadium

The day after, I went to what has been my favourite Stampede event for several years. Food tickets were being distributed by sailors from HMCS Calgary. It was a fine example of volunteering by members of the Canadian armed forces, even more so as they serve on a navy ship named after the Stampede city.

The Family Day breakfast is still carried out by Cenovus Energy, with many of their staff cooking pancakes and burgers. There was an agriculture exhibition, showcasing another major Canadian industry. Many farms are also landowners who benefit from royalties received from producers and operators.

GPAC/PJVA Stampede Lunch – July 8, 2019

This year, it took place at The Metropolitan on Stephen Avenue. As every year, it contained a broad mixture of over 300 industry professionals. Having spoken with many of them, there is a trend of increasing optimism regarding both the medium-term and the long-term future.

There were several PJVA members present to enjoy the photobooth, games, music and amazing weather on the patio.

Many First Nations participants in the Stampede events were seen passing by the lunch on horseback. They were a useful reminder of the June 20 PJVA Luncheon – "First Nations Collaboration and Ownership of Energy Companies."

Pancake Breakfast

My final Stampede event took place close to TD Square on the morning after the GPAC/PJVA Stampede Lunch, during which I was invited by the hosting company, Keywest Projects. Many took part and made pancakes, including the President & CEO.

Looking forward to Stampede 2020

I (and probably many others) am looking forward to next year's Stampede. This year's Stampede has been a great event with lots of variety. I achieved my primary aim of networking and gaining feedback from an impressive variety of individuals.

Peter Mitchelmore
PJVA Newsletter Editor



Article: Why I work in Oil and Gas

*Article published by The Province August 14, 2019 in the editorial section. Posted by the Editor, Gordon Clark, and written by Deidra Garyk

The Coastal GasLink pipeline, intended to supply the proposed LNG Canada liquefied natural gas plant, shown here in the conceptual drawing. LNG Canada / VSUNwp Opinion: "When (environmentalists) attack the industry, they're not attacking some abstract corporate entity — they're attacking me".

I work in oil and gas. I don't work on a drilling rig, I don't work in the oilsands, and I'm not a male executive sitting around a boardroom table. I don't fit those stereotypes. I am a female who works in an office tower in downtown Calgary for a natural gas producer, and I'm proud of the work I do. When I was younger, I supported the Green Party when their goals were pragmatic protection of the environment and the economy. Caring for the environment has always been very important to me. It became even more important after I spent some time living in Asia. The city I lived in was densely populated, loud, dirty and polluted. I had to boil my water to drink it. I had to wear a face mask while driving my scooter. I could barely see the sun through the thick brown smog, and didn't see blue sky for four months until I left the city to visit a beach.

This exposure to the ugliness of poor environmental policy impacted me to my core. I don't want to have to live like that again, so I care about what we do to the environment, both locally and globally. It's because of my first-hand experiences that I have unwavering support for Canada's oil and gas sector. Like many young people who completed their post-secondary education, I struggled to find meaningful, fulfilling work for a few years. I worked at a job that didn't pay well and certainly didn't challenge me or make me excited to wake up every morning. I was fortunate that the oil and gas industry took me in and gave me training and opportunities for advancement.

I wasn't sure what it would be like to work in a male-dominated industry, but I've had the good fortune of working with educated, capable, kind people, including many men. These same men who have been villainized by the environmental movement have supported me throughout my career by working alongside me, providing guidance, mentorship and friendship.

The industry didn't just give me a job, it gave me a stimulating, long-term career. But my career is under attack by environmentalists and others who want to shut down my industry. When they attack the industry, they're not attacking some abstract corporate entity — they're attacking me. Worse, they're threatening the economic well-being of every Canadian.

I may be one of the quiet majority, but I will not be silent. The anti-oil and gas activists have gone beyond wanting pragmatic protection of the environment. Their stated goal is to shut down Canada's oil and gas industry. They oppose my work. This is misguided, short-sighted and is due to a lack of understanding of the people who work in this industry and our desire to be stewards of the resources and the environment.

Lost in the noise created by the opponents of responsible energy resource development is the fact that Canada has the highest environmental standards in the world. We set the bar for developing our energy resources in the cleanest possible ways. We also have a gold standard regulatory process, as witnessed recently by the National Energy Board decision that the Coastal Gaslink Pipeline does not fall under federal jurisdiction and that B.C.'s Environmental Assessment Office is the correct regulator of this project. Not only do our regulators have high standards, they have a higher-than-usual degree of common sense.

My goal as a Canadian oil and gas worker and advocate is to inspire others to think critically about current issues so we can have balanced, respectful, fact-based conversations about energy. For decades, the environmentalists have had their say. We need dialogue, not a one-sided monologue, to move forward.

If you want a greater understanding of Canada's oil and gas sector, please talk to someone who works in it. We want people to understand what we do, how responsibly we do it and how it adds value to each life on this planet.

Deidra Garyk is an energy advocate based in Calgary, working in the oil and gas sector, and a freelance writer.

*The newsletter may contain material sourced from to third party websites. The material is provided solely as a convenience to you and not as an endorsement by PJVA of the contents on such third party Websites. PJVA is not responsible for the content of third party sourced material and does not make any representations regarding the content or accuracy of materials on such third party Websites, or the availability of such Websites. If you decide to access third party Websites, you do so at your own risk.



JV Certificate Program Volunteers required!

Volunteers are required for the JV Certificate Program as follows:

These are longer term commitments – ideally, you will be ready to stay in the role for 1 or more years. Time commitment: 2 – 5 hours/month, varying based on work required and number of committee members available

Experience required:

  • 2+ years' experience with completion of the JV Administration or JV Analyst Certificate Program; OR
  • 5+ years' experience in a JV Administrator or JV Analyst role

Ideal candidates for these roles exhibit some or all of the following skills:

  • Able to work in a confidential manner;
  • Have current, relevant, industry experience and an understanding of the current PJVA Model agreements in use;
  • The ability to identify, research and summarize information from various sources;
  • Able to write new material, or edit existing materials, in a clear and concise manner suitable for use as an educational resource.

ALL interested PJVA members are welcomed to submit their names to Randy Tomilson (randytomilson@shaw.ca) for any of these roles – your unique combination of experience, background, and skills might be exactly what is needed for the ongoing development and maintenance of our course materials.



Who's On Board?

Mark Pelzer, Education – Seminars co-Director

Tell us about yourself:

I started in the industry in 1985 in the Budgets and Statement department (now more commonly referred to as Financial Reporting) of DeKalb Petroleum. After a couple of years, I transferred into the Production Revenue department where I remained for 3 years. In 1990, I moved to Signalta Resources and took the role of Accounting Supervisor and that is where I first dipped my feet into the Joint Venture world. After 16 years I then moved into the Contracts and Joint Venture department of AltaGas and lead a team of analysts and accountants for the next 5 years.

Currently I am the Senior Manager at Joint Venture Strategic Advisors and lead a team that does both audit and virtual office work. I also have been engaged by different law firms as an expert witness for Joint Ventures both in Canada and in the United States.

During my career I received my Cappa Certificate, Computer Operating and Programming diploma and CPA professional designation.

When did you get involved on the PJVA Board and why?

This is my first year on the Board of PJVA. I got involved as with the turnover in the industry we are seeing a drain of knowledge and I believe we need to get involved in preparing the leaders of the future.

Tell us about why you like the challenges of the joint venture business?

The great thing about Joint Ventures is that it proves that collaboration between companies in the same industry can exist. The intent is not to compete with each other but to make each other stronger based on our collective knowledge and abilities.

Tell us about the Education - Seminars co-Director portfolio you're responsible for and your goals for the next year or two?

As this is my first year having a fresh set of eyes and ideas will be my target. Along with expanding the visibility of PJVA in respect to training and professional expertise.

Best advice you have ever received?

Don't believe your own B.S. ---- There is always room to evaluate others' opinions and find new and better ways of doing things.



Nebraska Supreme Court Affirms Keystone XL Route Approval

*Article published by Globe Newswire August 23, 2019 and republished shortly after by boereport.ca (author name not provided)

OMAHA, Neb., Aug. 23, 2019 (GLOBE NEWSWIRE) — TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) today announced the Nebraska Supreme Court has affirmed the November 2017 decision by the Nebraska Public Service Commission that approved the Keystone XL Pipeline route through the state.

"The Supreme Court decision is another important step as we advance towards building this vital energy infrastructure project," said Russ Girling, TC Energy's President and Chief Executive Officer. "We thank the thousands of government leaders, landowners, labor unions and other community partners for their continued support through this extensive review process. It has been their unwavering support that has advanced this project to where it is today."

*The newsletter may contain material sourced from to third party websites. The material is provided solely as a convenience to you and not as an endorsement by PJVA of the contents on such third party Websites. PJVA is not responsible for the content of third party sourced material and does not make any representations regarding the content or accuracy of materials on such third party Websites, or the availability of such Websites. If you decide to access third party Websites, you do so at your own risk.



'Noise' Makes Trans Mountain Pipeline Bid Unlikely: Pembina CEO

*Article published by Canadian Press August 21, 2019 and republished shortly after by Energynow.ca (author name not provided)

The CEO of Pembina Pipeline Corp. says the Trans Mountain pipeline system would fit neatly into his company's business model but he wouldn't want the "noise” associated with its controversial expansion project.

On a conference call to discuss his company's agreement announced Wednesday to purchase Kinder Morgan Canada Ltd., Mick Dilger was non-committal when asked if Pembina would consider buying the pipeline which Kinder Morgan sold to the federal government last year.

"If you think about our 10-year plan and our strategy of getting Western Canada's hydrocarbons to the highest price markets on the globe, TMX would clearly fit into that mandate, but we cannot take on the noise with something like that,” he said, adding he wants his company to avoid being mentioned in news articles.

"Could we successfully own and operate that asset? I can say we're uniquely qualified to do that, but we've got a lot of other things that are going our way and we don't want to subject our entire organization and reputation to all the noise that that entails. But strategically, for sure, it's in scope.”

Kinder Morgan Canada was created in mid-2017 to raise money to build the Trans Mountain pipeline expansion but it sold both the existing and proposed lines to the federal government for $4.5 billion last summer. It announced in May it had decided to remain a stand-alone public company after a strategic review of options that could have included the sale of part or all of the corporation. Separately, Trans Mountain announced Wednesday that construction would restart on the expansion project within a month after it received the required permits. Ottawa has indicated it will sell the pipeline back to private owners after it has "de-risked” the expansion.

In addition, it said it would pay roughly $2.05 billion in cash to purchase the U.S. side of the Cochin pipeline from Kinder Morgan, Inc., which owns 70 per cent of Kinder Morgan Canada. The Cochin pipeline runs 2,900 kilometres between Fort Saskatchewan, northeast of Edmonton, and Chicago and has a design capacity of up to 110,000 barrels per day. It imports into Canada a prized light petroleum called condensate which is used to dilute oilsands bitumen to allow it to flow in a pipeline. The deal also includes an Edmonton storage and terminal business and Vancouver Wharves, a bulk storage and export-import business.

"We believe KML's assets will be a great fit with Pembina's business and this transaction is highly beneficial to KML's shareholders,” said Steve Kean, CEO of both Kinder Morgan Canada and its U.S.-based parent, in a news release.

Pembina's deal to buy Kinder Morgan Canada – including its ownership of the Canadian portion of the Cochin pipeline – is an all-shares deal valued at $2.3 billion including the assumption of preferred shares and outstanding net debt.

"This transaction gives KML's public shareholders the opportunity to participate in a larger and growing platform of North American midstream energy assets. The Cochin pipeline is one of two cross-border condensate import pipelines and it both complements Pembina's existing condensate infrastructure in Western Canada and further extends the company's reach into the U.S.,” Dilger said on the call.

The pipeline was once used to send propane from Canada into the United States, he pointed out, adding Pembina will have the option to reverse the line to export crude oil if demand for condensate ebbs.

*The newsletter may contain material sourced from to third party websites. The material is provided solely as a convenience to you and not as an endorsement by PJVA of the contents on such third party Websites. PJVA is not responsible for the content of third party sourced material and does not make any representations regarding the content or accuracy of materials on such third party Websites, or the availability of such Websites. If you decide to access third party Websites, you do so at your own risk.



Alberta's smaller oil producers eye output boost after curbs lifted

*Article published by Reuters August 21, 2019 and republished shortly after by Energynow.ca (authors and editor named at the end of the article)

Small and mid-sized Alberta oil producers are looking to increase drilling as early as this autumn after the Canadian province exempted a dozen of them from government-mandated oil production cuts, boosting the struggling industry. On Tuesday, the new United Conservative Party government extended curtailments through 2020, citing a delay to Enbridge Inc's Line 3 replacement that could swell inventories again unless the limits remained in place.

It also doubled an exemption threshold in the curtailment policy to 20,000 barrels per day (bpd), eliminating constraints on 13 companies whose output falls below that level. Alberta's 16 biggest producers will be the only ones receiving curtailment orders starting in October.

"We were diverting capital into share buybacks and into Saskatchewan,” Tamarack Valley Energy Ltd Chief Executive Brian Schmidt told Reuters in an interview. "Now we'll put capital back to work in Alberta.”

Tamarack will adjust 2020 capital spending plans because of the changes and could lift its Alberta production by another 2,000-3,000 bpd, Schmidt said. The Calgary-based company currently produces 11,000 bpd in Alberta, just under half its total output.

Other producers that benefit include Whitecap Resources Inc., Athabasca Oil Corp., Pengrowth Energy Corp., Baytex Energy Corp. and Obsidian Energy Ltd . AltaCorp Capital Research said in a note.

Pengrowth deferred spending more than half of its C$45 million ($33.9 million) capital budget earlier in 2019, but now looks to increase drilling as early as October, Chief Executive Pete Sametz said. That will also reduce the need to buy credits from other producers that allowed Pengrowth to produce over its quota.

"We're really happy about (the higher exemption). That's good for our company.”

"Whitecap, which shifted capital to neighbouring province Saskatchewan this year because of curtailments, can now consider restoring Alberta production for 2020,” said CEO Grant Fagerheim.

The company has capacity to produce 15,000-16,000 bpd in Alberta. "This is a very wise move by the Alberta government,” Fagerheim said. "Now as we go into our budget cycle (for 2020), it changes the way we think for sure. We can look at our assets on a total basis to get the best returns.”

"Tweaking the exemption will prop up Alberta's struggling oilfield services companies by increasing drilling,” said Gary Mar, CEO of the Petroleum Services Association of Canada, but he said the outlook is still challenging. "Making small adjustments so small producers are exempt will help keep people in the service business around. It's the best of a bad situation,” Mar said.

With curtailments lasting longer, differentials between Canadian heavy and U.S. light crude look more stable, giving investors reason for greater comfort in heavy oil producers Canadian Natural Resources Ltd., Cenovus Energy Inc., MEG Energy Corp. and Athabasca, CIBC analyst Jon Morrison said in a note. Toronto-listed shares of MEG and Cenovus led the way higher among producers on Wednesday, rising 4% and 3% respectively.

"Extending curtailments is modestly negative for integrated producers Suncor Energy Inc., Imperial Oil Ltd. and Husky Energy Inc., as their operations, which include refineries, are less vulnerable to discounted Canadian prices,” Morrison said.

All three have supported ending curtailments as soon as possible. A Suncor spokeswoman said on Wednesday the company does not support government intervention in the markets, while a Husky spokeswoman said uncertainty about how long curtailments will last had dented investor confidence.

Reporting by Rod Nickel in Winnipeg, Manitoba and Nia Williams in Calgary, Alberta Editing by Marguerita Choy

*The newsletter may contain material sourced from to third party websites. The material is provided solely as a convenience to you and not as an endorsement by PJVA of the contents on such third party Websites. PJVA is not responsible for the content of third party sourced material and does not make any representations regarding the content or accuracy of materials on such third party Websites, or the availability of such Websites. If you decide to access third party Websites, you do so at your own risk.



UofC Petroleum & Energy Society (PES) Launches 2019-2020 Mentorship Program

The University of Calgary Petroleum & Energy Society (PES) is excited to launch the 2019-2020 Mentorship Program for the upcoming school year and we are looking to recruit industry professionals to become mentors and assist capable and enthusiastic students in their growth as young professionals.

More professionals are actively pursuing mentoring in order to advance in their careers and gain rewarding experiences in giving back to communities. A mentoring partnership is the perfect opportunity for mentors to become trusted advisers and role models through offering their knowledge and providing personal support to facilitate success in our industry. Our primary goal is to provide our industry with the next generations of inspired and knowledgeable graduates and this program fits perfectly in doing so.

All details and information of the program as well as the mentor registration form can be found here - https://www.pesucalgary.ca/mentorship - registration closes on Friday, September 20, 2019.

Please feel free to contact Yufang Hu at yufang.hu@pesucalgary.com should you have any questions.



PJVA Membership Renewals are due for 2019-2020

Don't forget to renew your membership to continue taking advantage of the various benefits, including lower event rates and being listed on the web directory.

Contact the office for your invoice, or check out the membership page for more information.



Upcoming Events

PJVA September Luncheon
September 12, 2019

PJVA Annual General Meeting
September 17, 2019

PJVA Early Morning Session
September 25, 2019