Description:

The 2014 Unconventional Resources Operating Agreement (“UROA”) provides an excellent starting point for the joint development of onshore unconventional resources around the world, including in Canada. However, the UROA requires some customization to suit the unique legal regimes and industry practices in each jurisdiction. The UROA Canadian User’s Guide provides guidance about how the UROA could be adapted for Canadian unconventional resource development, excluding oil sands projects. The general approach of the User’s Guide is to identify issues that a drafting party needs to be aware of and consider rather than suggesting specific language. The User’s Guide is organized into three parts: Part 1 (Overview) describes some key features of the Canadian legal system related to resource development, including mineral ownership and regulatory regimes, First Nations (Aboriginal and Indigenous Peoples) considerations and legal principles of general application. Part 2 (Global Changes) describes some of the changes that could be considered mandatory when adapting the UROA in light of Canadian law and industry practice. Part 3 (Commentary and Guidance Notes) is the section that may be most familiar to users as it offers context and commentary about how drafting party could best adapt the UROA for his or her particular circumstances. The User’s Guide does not specifically address the use and application of the AIPN Accounting Procedure in Canada.