Canadian Publication Mail Contract - 40070050 $3.00 VOLUME ... files/pdfs... · ConocoPhillips Tel:233-3113 Fax:233-5374 [email protected] CORPORATE RELATIONS

Canadian Publication Mail Contract - 40070050 $3.00

JANUARY 2005VOLUME 32, ISSUE 1

■ An Overview of Alberta’s

Oil and Gas Land Tenure System

■ Simplifying Seismic

■ Halifax 2005

■ Annual Awards Report

■ AAPG 2005 – Core Conference

■ An Overview of Alberta’s

Oil and Gas Land Tenure System

■ Simplifying Seismic

■ Halifax 2005

■ Annual Awards Report

■ AAPG 2005 – Core Conference

January 12/11/04 5:46 PM Page 1


3

CSPG OFFICE#160, 540 - 5th Avenue SWCalgary,Alberta, Canada T2P 0M2Tel: 403-264-5610 Fax: 403-264-5898Web: www.cspg.orgOffice hours: Monday to Friday, 8:30am to 4:00pm

Business Manager:Tim HowardEmail: [email protected] Manager: Deanna Watkins Email: [email protected] Manager: Jaimè CroftEmail: [email protected] Manager: Lori Humphrey-ClementsEmail: [email protected] Relations Manager: Kim MacLeanEmail: [email protected]

EDITORS/AUTHORSPlease submit RESERVOIR articles to the CSPGoffice. Submission deadline is the 23rd day of the month, two months prior to issue date.(e.g., January 23 for the March issue).

To publish an article, the CSPG requires digitalcopies of the document. Text should be inMicrosoft Word format and illustrations should be in TIFF format at 300 dpi. For additionalinformation on manuscript preparation, refer tothe Guidelines for Authors published in the CSPGBulletin or contact the editor.

COORDINATING EDITOR & OPERATIONSJaimè CroftCSPGTel: 403-264-5610 Fax: 403-264-5898Email: [email protected]

TECHNICAL EDITORBen McKenzieGEOCAN Energy Inc.Tel: 403-261-3851Email: [email protected]

ADVERTISINGKim MacLeanCorporate Relations, CSPGTel: 403-264-5610, Ext 205Email: [email protected]

Advertising inquiries should be directed to Kim MacLean. The deadline to reserveadvertising space is the 23th day of the month,two months prior to issue date. All advertisingartwork should be sent directly to Kim MacLean.

The RESERVOIR is published 11 times per yearby the Canadian Society of Petroleum Geologists.This includes a combined issue for the monthsof July/August.

Advertisements, as well as inserts, mailed withthe publication are paid advertisements. Noendorsement or sponsorship by the CanadianSociety of Petroleum Geologists is implied.

The CSPG Rock Shop is an attractive andaffordable way to target the CSPG readership.Spaces are sold at business card sizes (3.5” wideby 2” high). To reserve space or for moreinformation, please contact Kim MacLean at 403-264-5610, ext. 205.

The contents of this publication may not bereproduced either in part or in full without theconsent of the publisher.

Design & Layout by Sundog Printing.Printed in Canada by Sundog Printing.

Additional copies of the RESERVOIR are availableat the CSPG office for $3.00.

AN OVERVIEW OF ALBERTA’S OIL AND GAS LAND TENURE SYSTEM . . . . 29

SIMPLIFYING SEISMIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

HALIFAX 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

ANNUAL AWARDS REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

BETSY NICHOLS: 1946-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

AAPG 2005 – CSPG CORE CONFERENCE . . . . . . . . . . . . . . . . . . . . . . . . . . 41

FORMER PRESIDENT DIGBY MCLAREN HONOURED WITH NEW MEDAL . . . 44

GUSSOW CONFERENCE 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

ARTICLES

DEPARTMENTS

CONTENTS

FRONT COVER

Northern Ellesmere Island, Nunavut – Braided delta at Greely Fiord. Photo by Jon Devaney.

EXECUTIVE COMMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

TECHNICAL LUNCHEONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

DIVISION TALKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

ROCK SHOP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

CALENDAR OF EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

JACK PORTER: VIGNETTES OF CANADIAN PETROLEUM GEOLOGY . . . . . . . 23



5

EXECUTIVE COMMENTA MESSAGE FROM THE PAST PRESIDENT

PRESIDENTJeff PackardBurlingtonTel: 260-8041 Fax: [email protected]

VICE PRESIDENTJim ReimerResult EnergyTel: 539-5207 Fax: [email protected]

PAST PRESIDENTCraig LambHusky EnergyTel: 750-1499 Fax: [email protected]

FINANCE DIRECTORAllan SchinkBerland Expl.Tel: 770-2002 Fax: [email protected]

ASSISTANT FINANCE DIRECTORMarty HewittEncanaTel: [email protected]

PROGRAM DIRECTORDoug HamiltonEncanaTel: 290-3193 Fax: [email protected]

ASSISTANT PROGRAM DIRECTORMemory MarshallHusky EnergyTel: 298-6309 Fax: [email protected]

SERVICE DIRECTORAstrid ArtsConocoPhillipsTel: 233-3049 Fax: [email protected]

ASSISTANT SERVICE DIRECTORDave MiddletonPetro-CanadaTel: [email protected]

COMMUNICATIONS DIRECTORAshton EmbryGSC - CalgaryTel: 292-7125 Fax: [email protected]

OUTREACH DIRECTORShannon Nelson EversConocoPhillips Tel: 233-3113 Fax: [email protected]

CORPORATE RELATIONSVacant

BUSINESS MANAGERTim HowardCSPGTel: 264-5610 Fax: [email protected]

2004 was another active and successful onefor the Society. A key milestone was ourachievement of holding three conferences.The first conference was on Dolomites and“by all accounts this fully-subscribed technicalmeeting was an unqualified success”. InMarch, the first Gussow Conference was heldin Canmore. The theme of that conferencewas Water Resources and EnergyDevelopment. The purpose of these smallerconferences is to provide venues forpresentation of ideas on specific topics andto promote discussion within a smaller groupof participants. Our major event of the year,the annual conference, was held jointly withthe Canadian Well Logging Society (CWLS)and, for the first time, the Canadian HeavyOil Association (CHOA). The program wasboth a technical and financial success. Inaddition to the conferences, we continued tohave a strong technical luncheon program. In2005, we will be the host society for theAAPG Convention and I know many of youare now working hard to make it an event ofwhich we can all be proud.

Although, there were no new publications in2004, we are hopeful that the GeologicalAtlas of the Western Canada SedimentaryBasin will be available in 2005 via theinternet.Also, an agreement was signed withGeoScienceWorld to make our publicationsavailable on their website commencing inJanuary, 2005.This is a good opportunity tomake our publications available worldwidewhile generating additional income for theSociety.

The one publication which has grown overthe year is The Reservoir. Kim MacLeanjoined the staff on a permanent basis inJanuary and has been instrumental in makingThe Reservoir a profitable venture. Relatedto the increased level of advertising andsupport, we are now working on increasingthe content of the magazine. The ReservoirCommittee, supported by Jaimè Croft, ourCommunications Manager, is now working on

increasing the quality and quantity of contentin the magazine to increase its value to themembers. If you have an article that you thinkthe members would enjoy, please submit it tothe office.

Successful efforts continued with ouroutreach programs (SIFT, Visiting Lecturers,ETC.) which are funded by the CSPGEducational Trust Fund (ETF). During the yearit became apparent that there was someconfusion among the membership regardingthe CSPG and the ETF and it was decided toinclude the outreach programs within theprograms of the CSPG. To this end the newposition of Outreach Director has beenestablished on the CSPG Executive.The ETFwill continue to focus on fund-raising to fundthose programs.

We continue to maintain a close liaison withother technical societies.We have been urgedby our members, sponsors, and conferenceexhibitors to hold more joint conferences,particularly with the CSEG.We are thereforein discussions with the CSEG as well as othersocieties to determine how we can bestwork together. Related to technical synergy,the Executive is evaluating the possibility ofjoining with several other societies, includingPetroleum Society of CIM, CSEG, and PTACin a joint office facility which could enable usto share common facilities while cuttingoverhead costs.We think this could also leadto better communications and more jointcooperation between these organizations.

Your Executive spent a lot of time over theyear examining both technical and socialprograms.This has been driven, in part, by theresults of the 2004 Membership Survey(July/August Reservoir). As part of thisprocess, attention has been focused onmaking all our programs and eventsprofitable. As a result, we have decided todiscontinue the Awards Banquet traditionsince it is no longer being supportedsufficiently by the members. In its place, anew format of volunteer recognitions andaward presentation will be implemented in2005. We are committed to continuing toevaluate our programs to ensure that theyare providing benefits for all members.

As you no doubt realize, our industry ischanging and that, with the agingdemographics, we have to take a closer lookat what the future will be for the CSPG.Wehave a major challenge ahead since the

(Continued on Page 31...)


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7

THE CSPG GRATEFULLY ACKNOWLEDGES ITS

*CORPORATE MEMBERS:

ABU DHABI OIL CO., LTD. (JAPAN)

ARCHEAN ENERGY LTD.

BAKER ATLAS

BURLINGTON RESOURCES CANADA LTD.

BG CANADA EXPLORATION & PRODUCTION, INC.

BP CANADA ENERGY COMPANY

CALPINE CANADA

CANADIAN FOREST OIL LTD.

CONOCOPHILLIPS CANADA

CORE LABORATORIES CANADA LTD.

DEVON CANADA CORPORATION

DOMINION EXPLORATION CANADA LTD.

DUVERNAY OIL CORP.

ECL CANADA

HUNT OIL COMPANY OF CANADA, INC.

HUSKY ENERGY INC.

IHS ENERGY

IMPERIAL OIL RESOURCES LIMITED

LARIO OIL & GAS COMPANY

MJ SYSTEMS

MURPHY OIL COMPANY LTD.

NCE RESOURCES GROUP INC.

NEXEN INC.

NORTHROCK RESOURCES LTD.

PENN WEST PETROLEUM LTD.

PETRO-CANADA OIL AND GAS

PRECISION WIRELINE

SAMSON CANADA

SHELL CANADA LIMITED

SPROULE ASSOCIATES LIMITED

STARPOINT ENERGY INC.

SUNCOR ENERGY INC.

TALISMAN ENERGY INC.

TOTAL E&P CANADA LIMITED

*CORPORATE MEMBERS AS OF

NOVEMBER 24, 2004

What isyour

competitiveadvantage?

In the game we play, we cannot

survive on yesterday’s ideas.

Knowledge is an important resource

for industry success, and our key

competitive advantage is what we

know and how well we apply it.

The CSPG has always been the

primary conduit for

knowledge transfer within

the geologic community.

As oil and gas becomes

even harder to find, the

knowledge needs of our industry will

continue to increase almost

exponentially. The CSPG will continue

to provide forums for networking and

the exchange of ideas.

The CSPG is not peripheral to

industry success; it is a part of

everything we do.

When you invest in the

CSPG, you invest in

the future.Canadian Society of Petroleum Geologists

...the SOURCE


TECHNICAL LUNCHEONSJANUARY LUNCHEON

8

Conglomerates: interpretationof depositional environmentsand bounding discontinuities*

SPEAKERSDr. Laurie DavisFugro-Jacques Geosurveys Inc.St. Johns, Newfoundland

Dr. John D. HarperConocoPhillips Canada Ltd.Calgary,Alberta

11:30 amTuesday, January 11, 2005

TELUS CONVENTION CENTRE CALGARY, ALBERTA

Please note:The cut-off date for ticket sales is 1:00 pm,Thursday, January 6th.Tickets are $28.00 + GST.

Conglomerates occur in almost everyenvironment as a matter of normal

depositional processes. In the bulk of theliterature they occur as fluvial channeldeposits, transgressive lags, and marinecoastal sediments. They commonly have asequence boundary associated with them,usually at their base.The reason for this isthat in many instances the underlyingsands commonly lack any pebblescontained within them. It was thisobservation that led to our research.Studies of modern deposits, including our own investigations, have identified the fact that the base of conglomeratesdoes not necessarily requireinterpretation as an erosional contact.The transition, albeit abrupt, can simplyrepresent a normal depositional changefrom underlying non-conglomeratic sands.There is valid reason for the lack ofconglomerate in those same sands. Inaddition, conglomerates are difficult towork with in core because of their largegrain size. In outcrop, sedimentarystructures are readily evident.Interpretation of the environments ofdeposition is also hampered by the lack of

research on the fabric and grain-sizedifferences of conglomerates, which rangefrom granules to large boulders.

The very occurrence of conglomeratesimplies the existence of topographic reliefrelatively close to the deposits. This reliefmay be in the source area whether theconglomerates have been transported influvial systems from higher terrain, orremobilized through secondary coastalerosion, or the cutting of canyons on ashelf margin. Continental glacial transportcan carry coarse-grained sediments longdistances beyond the high altitude sourceterrain, and even into deep water and therealm of dropstones, whereas mountainglacial transport keeps the conglomeratesclose to their alpine source.

Deepwater conglomerates derived fromland imply a narrow shelf because suchsediments require storm conditions tomove them. Deepwater conglomeratescan be generated also through erosionand/or collapse of shelf margin slopes.


9

Thus, the provenance of the sediment isimportant for determining its origin andthe environment.

The high energy conditions necessary tomove conglomerates normally do notextend deeper than the shallow shorefacealong relatively long linear coastlines.Even in fluvial settings, conglomerates do not move unless they are involved with flood water settings in high-velocityriver systems.

We will look at conglomerates in a variety of settings from mountain terrainsto deep water to offshore marineoccurrences in association with glacialtills in the context of process models andbase level relationships. Our goal is toencourage that studies not be misled into paradigm interpretations. Tough asconglomerates are to study, answers fortheir interpretation can be found in thesubtleties they leave in the record.

BIOGRAPHYLaurence Davis, Ph.D., (Memorial University ofNewfoundland): Presently employed as a seniorproject geoscientist with Fugro JacquesGeoSurveys Inc., St. John’s, specializing inoffshore 2D and 3D geohazard assessment andrelated marine geoscience investigations. He waspreviously affiliated with the Centre for ColdOcean Resources Engineering (C-C0RE),Memorial University, where he was a projectmanager and research scientist involved in ajoint industry-government funded MarineMinerals Research Program. His doctoralresearch involved a multi-disciplinaryinvestigation of a modern coarse-grained barriersystem and its application to the interpretationof analogous ancient systems.

John D. Harper, Ph.D., P. Geol., FGSA, FGAC:presently Senior Geological Advisor,ConocoPhillips Canada Ltd.; Retired FullProfessor, Petroleum Geology, and the firstDirector of the Centre for Earth ResourcesResearch at Memorial University ofNewfoundland to Jan 1, 1998, and more recentlyan Adjunct Professor to 2002; formerly with ShellDevelopment, Shell Oil, Shell Canada, and TrendExploration. He has operational, managementand research credentials over the past 36 yearsin reservoir characterization and basin analysisfor Canadian, US, and International onshore andoffshore basins. His most recent activities havebeen in the Mackenzie Delta - Beaufort, theScotian Shelf and Deep Water, the West Coast ofNewfoundland, and the Grand Banks.

*Please note, this abstract has been updatedsince the December Reservoir. Our apologiesfor any inconvenience.


PETROLEUM INDUSTRY COURSESt e c h n o l o g y • s e i s m i c • r o c k s • m a p s • f o r m a t i o n s • l a n d • s e d i m e n t s • h i s t o r y • s e a • f o s s i l s • e n v i r o n m e n t

WHO SHOULD ATTENDNew geologists, engineers, geophysicists and landmen, as well as summer students entering the industry for the first time will find the courses a very beneficial introduction to the petroleum industry. These courses will be extremely useful to nonprofessional and support staff in the oil and gas industry, as well as accountants, lawyers, brokerage and financial personnel working primarily alongside the oil and gas industry.

TO REGISTERTo register or to obtain additional information regarding in-house and upcoming courses, please contact:

Ayrton Exploration Consulting Ltd.Tel: (403) 262-5440

Email: [email protected]

Or visit our website:www.ayrtonexploration.com

OVERVIEW OF THE OIL & GAS INDUSTRY IN WESTERN CANADADate: February 15 & 16, 2005Cost: $856 incl. GSTInstructor: Bill Ayrton

Effective for personnel just joining the oil patch, or for financial, accounting, and information systems personnel.• Learn about the many facets of the industry.• Oil finding, land acquisition, drilling, seismic, well

completion, jargon and terminology.

GEOLOGY OF THE WESTERN CANADIAN SEDIMENTARY BASIN Date: March 29, 30 & 31, 2005Cost: $1284 incl. GSTInstructor: Bill Ayrton

Ideal for those who wish to improve their geological understanding of where and how we look for oil and gas fields in Western Canada.• To visualize what Western Canada looked like throughout

the stages of history, for example, the position of the sea versus land, what sediments were deposited, and what type of life that existed and evolved.

• To review the importance of each major stratigraphic unit, i.e. Devonian, Mississippian, Cretaceous, etc.

• Discuss the geological and seismic expression of typical oil and gas fields in each unit.

GEOLOGY FOR NON-GEOLOGISTSDate: March 15 & 16, 2005Cost: $856 incl. GST Instructor: Bill Ayrton

Effective for geological technicians or secretaries, or for those who just want a better understanding of geology to appreciate the world around us.• Learn about earth structure, geologic time-scale and processes,

Western Canada geology, and interesting nearby locations.• Participate in a rock identification exercise, contouring

project and a mini-field trip in downtown Calgary.

GEOLOGY FORNON-GEOLOGISTS

Presented by:W.G. (Bill) Ayrton

SUCCESSFUL PROSPECTINGin the WESTERN CANADIAN

SEDIMENTARY BASIN

Prepared by:W.G. (Bill) Ayrton

SUCCESSFUL PROSPECTING in theWESTERN CANADIAN SEDIMENTARY BASINDate: January 25 & 26, 2005Cost: $856 incl. GST Instructor: Bill Ayrton

Generating and recommending successful prospects is the lifeblood of exploration and production companies. We acquire land rights and seismic, drill wells, evaluate acquisitions and farm-in / farm-out proposals, and those involved will find this course an excellent review of how prospecting should be done.Course objectives:• Review the steps critical to successful prospecting• Create reliable subsurface interpretations, consider “multiple hypotheses”, and select the one that best fits the data• Integrate interdisciplinary coordination• Develop a “prospect template”• Make effective presentations and recommendations.

NewCourse

Mammoth, Tyrell Museum.Photo: Bill Ayrton


11

JANUARY LUNCHEON

Revisiting the Early Cretaceouspaleogeography of N.E. BritishColumbia – important stratigraphiccontrols on large gas fields

SPEAKERBrad J. HayesPetrel Robertson Consulting Ltd.

11:30 amTuesday, January 25, 2005


Please note:The cut-off date for ticket sales is 1:00 pm,Thursday, January 20th.

Early Cretaceous paleogeography has beenmapped in exquisite detail in the WesternCanada Sedimentary Basin. In particular, reliefon the pre-Mannville unconformity shows aremarkably intricate drainage system,characterized by three major trunk valleys –the Spirit River, Edmonton, and St. Paul /Assiniboia valleys – and intervening highlands.However, the northwestern terminus of theEarly Cretaceous drainage system is relativelypoorly understood,as illustrated by significantlydifferent maps drawn by Jackson (1984 AAPGDeep Basin Memoir) and Smith (1994Geological Atlas of Western Canada).

Detailed study of uppermost Jurassic andLower Cretaceous strata in northeasternB.C. and adjacent Alberta allows us to tie thisarea into the basin-wide drainage systemwith a high degree of confidence.The key liesin distinguishing Aptian/Albian fluvial valley-fillsandstones (Gething Formation) fromuppermost Jurassic and lowest Cretaceousdeltaic strata (Buick Creek sandstone).Mapping out these relationships also leads usto a better understanding of stratigraphiccontrols on hydrocarbon distribution andexploration/ development potential.

Buick Creek strata consist of moderately topoorly sorted, highly quartzose sandstones,containing coals up to a few metres thick,and bay-fill shales up to ten metres thick. Itwas deposited in a broad deltaic systemlying along the eastern edge of the foredeep,and sourced from the northeast. It isequivalent to the Nikanassin Formation ofthe Deep Basin and to the Minnes Group inoutcrop, and clearly pre-dates the pre-Gething unconformity. Westward, towardthe foredeep, the Buick Creek interfingerswith prodeltaic upper Fernie shales.

Lower Gething strata comprise stacked fluvialfining-upward successions, grading from sandychert-pebble conglomerates and lithicsandstones, up to interbedded fine sandstonesand mudstones with coaly material.Mineralogy,distribution, stratigraphic succession, and lackof substantial coals distinguish the lowerGething from the Buick Creek, although thetwo units can be difficult to distinguish wheresand-on-sand contacts occur. Lower Gethingstrata were deposited along the axes of pre-Gething valleys, during the earliest stages ofAptian/Albian relative sea-level rise.

Upper Gething strata are more heterolithic,consisting of interbedded fine sandstones andshales deposited in floodplain and channelizedsettings. Lithologically, they are very similar to thelower Gething, but are finer-grained, except inchannel bodies containing coarser sands locallyeroded from the Buick Creek.The upper Gethingcompletely infilled pre-Gething topographyduring a period of Early (?) Albian highstand.

Post-Gething, pre-Bluesky relative sea-level falland valley incision can be mapped in the AitkenCreek / Nig North / Wargen areas by linkingisolated bodies of valley-fill strata assigned tothe Bluesky Formation. Fluvial conglomeratesand estuarine sands filled these younger valleys,but were eroded and reworked in most areasto form Bluesky transgressive shorefacecomplexes. The pre-Bluesky drainage systemparalleled pre-Gething drainage topographyclosely, likely as a result of differentialcompaction of the Gething valley fill.

Using these stratigraphic observations, we canmap two converging northwesterly-directedregional valleys.The northeastern valley links tothe Edmonton / Peace River valley system ofthe central and western Alberta Plains, whilethe more southwesterly valley correlates to theSpirit River and Cut Bank valley systems ofwest-central and southwestern Alberta. Both

are filled with lower Gething fluvial strata, whilethe regional interfluve between the two iscapped by Buick Creek sandstones. UpperGething heterolithic strata complete the pre-Gething valley fill and cap the interfluve, andpinch out to the northeast on the flank of theKeg River Highlands. Pre-Bluesky valleys occuronly in the far west, but Bluesky transgressiveshorefaces are much more widespread.

Buick Creek, Gething, and Bluesky strata host upto two TCF of gas reserves and tens of millions ofbarrels of oil in northeastern B.C.Today, they arestill active exploration and development targets.Most production to date has been from high-quality, stratigraphically continuous Buick Creekdeltaic sandstones and from Bluesky valley-fill andshoreface sandstones and conglomerates.Tremendous productive potential remains inlower-quality Gething fluvial sandstones,undiscovered Bluesky valley fills, and bypassedopportunities in the Buick Creek. Improvedunderstanding of Jurassic/Cretaceous stratigraphyand paleogeography will assist in converting thispotential to economically-recoverable reserves.

BIOGRAPHYBrad Hayes is Executive Vice-President of PetrelRobertson Consulting Ltd.,where one of his major areasof interest is mapping Mesozoic petroleum geology ofthe Western Canada Sedimentary Basin. Thispresentation has been developed from four regionalexploration evaluation studies of the Lower Cretaceousof northeastern B.C.and adjacent Alberta,done at PetrelRobertson over the past several years. Brad graduatedfrom the University of Toronto in 1978 with a B.Sc.(Honours) in Geology,and from the University of Albertain 1982 with a Ph.D. in Geology. In addition to regionalexploration studies at Petrel Robertson, he is leading asystematic evaluation of unconventional (“tight”) gasopportunities in Western Canada. Brad also hasextensive experience in field assessments and geologicalmodeling, in Canada and internationally. Brad is a Past-President of the CSPG, and is currently an AssociateEditor with the Bulletin of Canadian Petroleum Geology.

Saskatchewan Industry and Resources and North Dakota Geological Survey

Thirteenth Williston Basin

Petroleum Conference

Informal talks, poster discussions and workshops on geology, engineering, and geophysics

pertaining to new developments in petroleum exploration and production within or

applicable to the Williston Basin.

April 24 - 26, 2005

Delta Regina Hotel

Regina, Saskatchewan, Canada

For more information, please call:

(306) 787-7662 Canada or (701) 328-8000 United States

(formerly Williston Basin Horizontal Well Workshop)(formerly Williston Basin Horizontal Well Workshop)(formerly Williston Basin Horizontal Well Workshop)(formerly Williston Basin Horizontal Well Workshop)(formerly Williston Basin Horizontal Well Workshop)


12

TECHNICAL LUNCHEONSFEBRUARY LUNCHEON

Natural gas storage:western Canada perspective

SPEAKERKaren James

AUTHORSGarry McCarroll,Shaju Koickel,Heather Joy,Karen James

11:30 amTuesday, February 8, 2005


Please note:The cut-off date for ticket sales is 1:00 pm,Thursday, February 3rd.Ticket price is $28.00 + GST.

Natural gas storage capacity in the WesternCanada Sedimentary Basin currentlyexceeds 300 Bcf. Gas is stored by a varietyof users for a variety of purposes. Theseinclude utility companies to meet winterpeak demands, pipeline companies foroperational balancing, producers to increasesales revenues, end users to reduce costs,and by all types of industry participants tocapture opportunities from gas pricevolatility.

Despite a history of almost 40 years inAlberta, “street awareness” of business andtechnical criteria for storage developmentand operations remains low. Why is gasstorage an attractive business? Why does anE&P company have clear advantages overUtilities in the storage business? Whatmakes a good storage reservoir? A briefoverview of the business drivers behind gasstorage will be presented in addition to adetailed discussion of technical elements.

Multi-disciplinary efforts combiningconventional geology, geophysics, andreservoir engineering are rigorously appliedto define the potential storage container.High quality reservoirs, high deliverabilitywells, and high commodity prices dictatethat operators commit to best practices forinventory control. Understanding andcommunicating the spatial geometry of thetank is a critical aspect to managing thereservoir. Often, the selected reservoirs

have been depleted by very few wellsattesting to the high quality of the original(now depleted) reservoir.Thus, well controlmay not be as dense as typicallyencountered in secondary or tertiary oilrecovery schemes. With less rock data tocharacterize internal variations of thereservoir, high quality seismic and mappingof analogy pools are required to extrapolatebetween wells inside the storage pool andalong pool boundaries. Detailed mapping issubject to frequent revision according toreservoir performance and simulationresults.

One important difference betweenconventional exploitation and natural gasstorage is cycle time (injection todepletion). The premise that underpins gasstorage operations is the ability to deliverlarge volumes of gas at specific times of peakdemand (and attractive commodity pricing).Thus, a pool may be cycled from full toempty within a few months.With such rapidcycling, reservoir assumptions if notcarefully considered will quickly be proveninaccurate with potential costly results.

BIOGRAPHY

EnCana is the largest independent gasstorage operator in North America withfacilities in Alberta, California, and Oklahoma.Two years ago, EnCana’s Western Canadianproject team successfully built the 29 BcfCountess Storage facility from grassroots.Thedevelopment took place over one year fromconcept to in-service date. EnCana’s US NewVentures project team is currently developingits first salt cavern storage facility inLouisiana.

The four authors cited here represent part ofa larger dynamic team. Karen James hasbeen project geologist with EnCana’s GasStorage Team for 11 years. Garry McCarrollhas been leading reservoir engineering andoperations for Gas Storage for 7 years, ShajuKoickel has been reservoir engineer with theteam for 5 years. Heather Joy recently joinedthe Gas Storage Team as project geophysicist.


u n e a r t h i n g i d e a su n e a r t h i n g i d e a sLTD.LTD.

0 50 100 150 200 250 300 350 400 450 500 550

Avg Ult Rec BOE (mboe)

179 Nordegg Pekisko Subcrop S

75 Nordegg Pekisko Subcrop P

19 Glauconitic Barrier Hoadley Jenner S

42 Glauconitic Barrier Hoadley Jenner P

4 Banff Subcrop S

6 Banff Subcrop P

2 Second White Specks S

1 Second White Specks P

4 Leduc Rimbey Meadowbrook S

41 Leduc Rimbey Meadowbrook PPLAY

TYPE

PRIME

&

SEC

COMP

163

394

273

286

353

277

137

509

359

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Canadian Discovery Ltd.


14

FEBRUARY LUNCHEON

Issues and approaches forintegrated hydrocarbon systemsanalysis in tertiary deltas - whatwe have learned: examples fromdeep water Nigeria

SPEAKERLori L. Summa

11:30 amTuesday, February 22, 2005

TELUS CONVENTION CENTRECALGARY, ALBERTA

Please note:The cut-off date for ticket sales is 1:00 pm,Thursday, February 17th.Ticket price is $28.00 + GST.

One consequence of the search for newexploration opportunities has been a pushinto higher-risk areas of known hydrocarbonprovinces such as Tertiary deltas. We aretesting new plays in deeper water and olderstrata, and using that experience to push intodeeper plays in shallow water. Given thisactivity, it seems an appropriate time toexamine how our paradigms for hydrocarbonsystems in Tertiary deltas have shifted throughongoing successes and failures, and use thatknowledge to exploit newer opportunitiesmore effectively. This presentation exploreselements of what we have learned, via anintegrated plate to molecular-scale approachto hydrocarbon systems analysis, withemphasis on alternate scenarios, and on whatwe might have overlooked.

Evolution in both technologies and approachesto hydrocarbon systems analysis in Tertiarydeltas has been driven by a major goal ofpredicting liquids, though this objective is nowchanging as natural gas acquires greatereconomic value. Efforts to accomplish this goalhave led to the development of technologiesthat improve our ability to quantify thevolumes and types of hydrocarbons enteringand leaving a trap. We use source faciesdistribution and maturity, structure timing, andthe PVT properties of generatedhydrocarbons to constrain the inflow ofhydrocarbons to a trap. These variables areamenable to quantitative evaluation, assuminga good genetic understanding of the processescontrolling basin formation and fill, includingregional tectonics, climate, and sedimentsupply, assisted by understanding of molecularclues from rocks and oils. We use structuralstyle, physical properties of seals, regionalcontinuity of major aquifers, and the PVT

properties of reservoired hydrocarbons toconstrain the outflow of hydrocarbons from atrap.These variables can also be quantified andrelated to one another using a series ofmolecular- to regional-scale tools.

But how have the ongoing efforts to quantifyhydrocarbon type and distribution modifiedour overall hydrocarbon systems models forTertiary deltas? Early models tended topredict a relatively simple hydrocarbondistribution, controlled largely by the presenceof higher maturity source rocks in depositionalthicks.That simple paradigm has evolved to amodel in which complex migration historiesand trapping mechanisms are now thought tobe a major control on hydrocarbon type anddistribution. In addition, timing of hydrocarboncharge relative to trap development has alwaysbeen recognized as an important factor inpredicting hydrocarbon type and quality, butthe tools developed over the past severalyears enable us to quantify those relationshipsand better predict hydrocarbon distribution.Finally, our understanding of how fluidpressures and seal properties constrain the

type and distribution of hydrocarbons has alsoevolved significantly. This presentationillustrates the evolution of these tools andapproaches, with examples of evolvinghydrocarbon systems models from deepwater Nigeria, and potential application toother deltaic systems.

BIOGRAPHY• Lori received her B.Sc. from University of

Rochester, New York in 1979 and her Ph.D.from University of California, Davis in 1985

• Lori has worked with ExxonMobil UpstreamResearch Company in Houston,Texas since 1985.

• Her research includes Integrated hydrocarbonsystems analysis, fluid flow, basin modeling, fluidinclusions, and clastic diagenesis. Since 1990, shehas been the research scientist and team lead forthe hydrocarbon migration and basin modelingtechnical team. Currently she is team lead on aresearch project targeting new explorationopportunities through integration of technologiesrelated to basin formation, fill, and evolution

• Lori is an AAPG member and is an author withnumerous publications and presentations toher credit

ASSISTANT PROFESSOR APPLIED SEDIMENTOLOGY AND/OR STRATIGRAPHYDEPARTMENT OF EARTH AND OCEAN SCIENCESTHE UNIVERSITY OF BRITISH COLUMBIA

The Department of Earth and Ocean Sciences at the University of British Columbiainvites applications for a tenure-track faculty position in the area of sedimentologyand/or stratigraphy. We seek a scientist whose research enhances and extends ourexisting strengths, particularly in areas that are process oriented and/or applied,including but not limited to, exploration and exploitation of fossil fuels,environmental studies and economic geology. This appointment is at the AssistantProfessor level although applications from exceptionally well-qualified, more seniorscientists will be considered, particularly if they address under-representation ofdesignated equity groups such as women, visible minorities, disabled persons oraboriginal people. Candidates from all relevant fields of Science and Engineeringare encouraged to apply. The position will be available as early as July 1, 2005. APh.D. is required by the commencement date. Teaching at the undergraduate andgraduate levels is expected.

The University of British Columbia hires on the basis of merit and is committed toemployment equity. All qualified persons are encouraged to apply; however,Canadians and Permanent Residents of Canada will be given priority. This positionis subject to final budgetary approval. For more information about the Departmentand this position, visit our web site at http://www.eos.ubc.ca.

Applicants should send their curriculum vitae and a statement of research andteaching interests, and arrange for three letters of recommendation to be sent to:

Dr. Paul L. Smith, HeadDepartment of Earth and Ocean SciencesUniversity of British Columbia, 6339 Stores RoadVancouver, B.C. Canada V6T 1Z4E-mail: [email protected] Fax: 604-822-9014The deadline for receipt of complete applications is February 14, 2005.


15

DIVISION TALKSHYDROGEOLOGY DIVISION

Burial and charge historymodelling of the Peace Rivertar sands: implications formaturation and migration ofAthabasca tar sand oils

SPEAKERSJennifer J.Adams, C. Riediger,and S. Larter Petroleum Reservoir Group,Department of Geology and Geophysics,University of Calgary

M. FowlerGeological Survey of CanadaCalgary,Alberta

12:00 NoonThursday, January 20, 2005

Encana Amphitheatre, 2nd FloorEast end of the Calgary Tower Complex 1st Street and 9th Avenue SWCalgary, Alberta

Tar sand bitumen has been wellcharacterized chemically; however, muchcontroversy remains concerning the sourcerocks, migration pathways, and time ofmigration.The Peace River hydrocarbons arethe only tar sands trapped west of theExshaw sub-crop edge between the oilkitchen and the Athabasca tar sands.Previous cursory characterization hasidentified the Exshaw Formation as the mainsource rock, and varying levels ofbiodegradation (API gravity 8-24), whichmay reflect complex maturation and/orreservoir charge history.

In this study, 30 Mesozoic bitumen sampleswere taken across the Peace River oil sandsregion, for detailed petroleum geochemicalanalysis. Biomarkers were used to define oil-source rock correlations and to mapbiodegradation levels across the area. One-dimensional basin models along an up-dipPeace River Arch section were developed toinvestigate burial history of the tar sands.

From biomarker analysis, the source of thePeace River bitumens and western Gethingreservoirs is the Exshaw Formation. Thepresence of both biodegraded and non-degraded oils in closely spaced pools pointsto a complex charging history before andafter burial past 80°C. Charge historymodelling of lower Cretaceous reservoirsoverpredicted the levels of biodegradationdue to early charge, and long residencetimes at low temperatures. Thus, water legand cooling effects were incorporated intothe models to reduce simulated degradationand replicate observed tar sand alteration.Timing of maturation and the dominant oilmigration driving forces and pathways to theAthabasca tar sands will be discussed in thecontext of oil degradation patterns acrossthe province.

Attention CSPG VOLUNTEERSPast and Present!

You are invited to the 2nd Annual Volunteer Appreciation Day!

When: Tuesday, January 25th, 10:30 am - 1:30 pmWhere: Telus Convention Centre

Sponsored by: Baker Atlas and geoLOGIC

This will be a fun get together with great

PRIZE DRAWS, food and beverages!

Also don't forget to buy your

Technical Luncheon tickets and attend the

presentation of the 2004 VOLUNTEER AWARDS

held prior to the scheduled speaker.

For more information visit www.cspg.org and click on VOLUNTEER SOURCE!

Jump in... and get involved!


16

STRUCTURAL DIVISION

SEDIMENTARY DIVISION

Structural controls on karstdevelopment, Oparure Block,New Zealand.

SPEAKERColin FrostadAnadarko Canada

12:00 NoonMonday, January 17, 2005

Nexen Annex Theatre+15 Level, North of C-Train Platform (Nexen Annex Building)801 – 7th Avenue SECalgary, Alberta

ABSTRACTTe Kuiti Group limestones and MahoenuiGroup mudstones crop out extensively on

the Oparure Block, southern WaikatoDistrict, New Zealand. Reactivation of majornorth-south-oriented normal faults, includingthe Waipa Fault, to an oblique-slip motion hasresulted in a consistent set of Riedelfractures in the Te Kuiti Group limestones.Large, discontinuous fracture breccias formalong first-order Riedel faults.

The Mangawhitikau Stream drains theOparure Block from west to east, down theregional dip on the Te Kuiti Group of a fewdegrees to the east. As groundwaterinteracted with the Te Kuiti Grouplimestones, karst development began. Alongwith the epikarst zone a shaft and conduitzone was formed primarily along first- andsecond-order Riedel fractures. By the timethe Mangawhitikau Stream eroded down tothe Te Kuiti Group many open conduits

were present in the limestone and capturedthe stream flow, resulting in the formation of caves.

BIOGRAPHYColin Frostad received his M.Sc. from theUniversity of Calgary in 2001, specializing in thestructural controls of karst formation, under thesupervision of John Hopkins. Colin is presentlyworking as a geologist for Anadarko Canada.

INFORMATIONTalks are free – don’t forget to bring your lunch!Coffee and donuts will be provided. If you areinterested in joining the Sedimentology Division e-mail listing which currently provides luncheonreminders, or if you care to suggest a technicaltopic or present a talk to the division, pleasecontact Scott Rose at (403) 699-4780 [email protected].

Evolution of pull-apart basinsand transtensional structureson strike-slip faults.

SPEAKERJohn W.F.Waldron,Department of Earth and AtmosphericSciences, University of Alberta

12:00 NoonThursday, January 20, 2005

Petro-Canada West Tower room 17 D (17th floor)150 6th Ave SWCalgary, Alberta

Many deep sedimentary basins are formed inassociation with strike-slip faults, typicallylate in the history of orogens, and containsignificant amounts of coal, oil, and naturalgas. However, interpretations of thedevelopment of strike-slip andtranstensional basins are generally based onhighly simplified models, which describe onlyinstantaneous strains and stresses, and donot take into account the significantrotations associated with basindevelopment.

Several well documented examples of suchbasins occur in the Appalachians of AtlanticCanada, where sediments of Carboniferous(Mississippian-Pennsylvanian) age were

deposited unconformably across the mosaicof terranes assembled in the DevonianAcadian orogeny.The largest of these basins,the Maritimes Basin, contains numerous sub-basins, many of which record evidence fordextral strike-slip motion during theirdevelopment.

Within the Maritimes Basin, the Stellartonsub-basin is a Pennsylvanian pull-apartstructure located close to the Meguma-Avalon terrane boundary, at the stepoverbetween major dextral faults. The basincontains a thick succession of rapidlydeposited Pennsylvanian clastic sedimentaryrocks, documented through a history of coalmining, and more recently throughexploration for coal-bed methane. Coalseams and oil shales allow stratigraphiccorrelation within the basin, permittingreconstruction of basin subsidence andstructural evolution. Coal seams representapproximate paleo-horizontal surfaces;thickness variations in the most coal-richportion of the basin-fill (corrected for tiltand compaction) show that the basinsubsided asymmetrically during deposition.Rapid fault-related subsidence created a trapfor coarse sediment, allowing coal-formingmires to develop on the opposite side of thebasin. North-striking normal faults dissectedthe basin fill during and soon afterdeposition, early in the diagenetic history.Contouring of mine plans allows fault offsets

to be identified and measured. Faults arefound to show offsets that varysystematically along strike, demonstratingthat fault-bounded blocks were rotatedclockwise during movement. The miningdata also show that both coal seams andfaults were folded by east- to northeast-trending folds, consistent with an overallenvironment involving dextral strike-slipmotion.

The geometry of normal faults in theStellarton sub-basin may be developed intoa generalized kinematic model for thebehaviour of fault-bounded blocks thatabsorb the extensional component ofdeformation in a pull-apart basin. The faultheaves are simply related to the shear strainand the amount of extension. At largerstrains than occurred at Stellarton, it can beshown that previously formed extensionalfaults would begin to show inversion asreverse faults. These results have generalapplication in both the stratigraphic and thestructural development of transtensionalbasins, and have important implications forfuture exploration in environments affectedby strike-slip faulting.

BIOGRAPHYJohn Waldron grew up in the UK, attendingCambridge University as an undergraduate and




18

GEOMATHEMATICS AND COMPUTER DIVISION

Seismic reservoircharacterization:methods and applications

SPEAKERTodor TodorovPetro-Canada Oil and Gas

12:00 NoonWednesday, January 26, 2005

ConocoPhillips Auditorium3rd Floor- above Plus 15+ level401 9th Ave SWCalgary, Alberta

Integration of seismic data and geologicalmodels is an important part of any successfulexploration and development project.Well logmeasurements provide high resolution andaccurate picture of the subsurface rockproperties and fluid content. Unfortunately inmost of the cases this information is spatiallysparse. Seismic data provide a very goodspatial coverage, but a band-limited in nature,have lower resolution, and are contaminatedwith noise.The integration of both sources ofinformation for rock properties and fluidprediction is the goal of seismic reservoircharacterization.

The following are the main methods used toachieve the above goal:

• Post-Stack Seismic Inversion: derives theacoustic impedance of the subsurface,usually relates to porosity

• Elastic Impedance Inversion: inversion ofmid- or far-stacks, relates to lithology andfluid content

• Amplitude Versus Offset Analysis (AVO):derives elastic rock properties, relates tolithology and fluid content

• Geostatistical mapping: methods to

integrate seismic maps and log properties,honors the well information at the welllocations

• Statistical Inversion using Neural Networks:builds a complex, non-linear relationshipbetween seismic information (seismicattributes) and any log property, can beused to derive volume shale, porosity,lithology,… models

A complete project usually requires the useof all the above methods.

PALAEONTOLOGY DIVISION

Darkened skies and sparklinggrasses: the potential impact of the Mazama ash fall on theNorthern Plains

SPEAKERDr Gerald A. OetelaarUniversity of Calgary

7:30 PMFriday, January 21, 2005

Mount Royal CollegeRoom B1084825 Richard Road SWCalgary, Alberta

Mazama ash has long served as an importantchronostratigraphic marker for geologistsand archaeologists working in southernAlberta. Despite the thickness and

widespread distribution of the tephra, few ofthese researchers have examined thepotential impact of the ash fall on the plant,animal and human communities of the area.To some extent, this failure to explore theconsequences of such natural disastersreflects the paucity of historicaldocumentation and the lack of currentresearch on the impacts of volcaniceruptions on human communities.The 1980eruption of Mount St. Helens has prompteda renewed interest in the study ofvolcanoes, including their impacts onclimate, plants, animals, and humans. Thispaper explores the potential impact of theMazama ash fall on the climate, ecology, andhuman populations of the northern Plains inlight of this current research.

BIOGRAPHYDr Gerald Oetelaar is an Associate Professor in

the Department of Archaeology at theUniversity of Calgary. He received his B.A. fromthe University of Calgary, his M.A. for SimonFraser University, and his Ph.D. from SouthernIllinois University in Carbondale. His currentresearch interests centre on landscape evolutionduring the Holocene and First Nations’perceptions and uses of the northern Plains.

INFORMATIONThis event is jointly presented by the AlbertaPalaeontological Society, Mount Royal College,and the CSPG Palaeontology Division. Forinformation or to present a talk in the futureplease contact CSPG Paleo Divison Chair PhilipBenham at 403-691-3343 or [email protected]. Visit the APS website forconfirmation of event times and upcomingspeakers: http://www.albertapaleo.org/


Feb. 14-18, 2005HOUSTON

TUITION FOR THE WEEK IS ONLY $1095 FOR AAPG MEMBERS OR $250/DAY FOR INDIVIDUAL COURSES

HOSTED BY THE HILTON HOUSTON SOUTHWEST HOTEL6780 SOUTHWEST FREEWAY

713-977-7911FAX 713-977-6310

2nd Annual AAPGWinter Education

Conference

REGISTRATION and INFORMATION:

email: [email protected] - Register Online at: http://www.aapg.org/educationToll-free (U.S. and Canada) 888-338-3387or 918-560-2621 Fax 918-560-2678

Courses include:- Reservoir Engineering for Geologists- Geochemical Exploration- Tight Gas Sands- Risk Analysis for Development Applications- Giant Oil and Gas Fields- Well Log Analysis- Assessment, Classification & Reporting of Reserves- Practical Salt Tectonics- Essentials of Subsurface Mapping- Permeability in Carbonate Rocks


ROCK SHOP

403.263.0449www.ecqc.com

Y. Marc Tremblay, B.Sc. (Geol.)

403.242.6080www.wellsitegeologist.com

Independent Wellsite Geologist

403.242.6080

Independent Wellsite Geologist

C. Alex Francoeur, P.Geol.President

Tel/Fax: (403) 281-6694Cell: (403) 861-6753

Email: [email protected]

Heavy Oil Specialists• SAGD/Horizontal• Coring Programs

Conventional Wells• Horizontal/Directional

• Gas Detection

Coal Bed Methane

Wellsite Geological Supervision since 1980

(OIL & GAS FINDING ASPECTS)Instructor: Hugh Reid

May 16 - 19, 2005

HYDRODYNAMICS SEMINAR

For course outline, please visit:www.hughwreid.com or call 403-262-1261


21

PALAEONTOLOGY DIVISION

The Immiugak A-06 gaschimney in the Beaufort Sea –direct evidence of hydrocarbonmigration preserved inmicrofossils

SPEAKERDr. Dave McNeilGeological Survey of Canada

12:00 NoonWednesday, January 26, 2005

Shell Centre4th floor (Room 447)400 4th Avenue SWCalgary, Alberta

(Audience members are requested checkwith Shell front security desk for roomaccess instructions)

The Gulf et al Immiugak A-06 well, drilled inthe offshore Tertiary fold belt of the west-central Beaufort Sea, penetrated 3,800metres of marine-to-terrestrial strata ofLate Cenozoic to Early Eocene age (Iperk,Mackenzie Bay, Kugmallit, Richards, and Taglusequences). The well is situated on anorthwest-southeast aligned, shale-coredanticline, which has been breached by vertically migrating hydrocarbons.Syndepositional growth of the diapiricanticline occurred from the Eocene to theEarly Pliocene. An apparent gas chimneyoccurs in Oligocene-Miocene strata

(Kugmallit and Mackenzie Bay sequences) atthe crest of the structure. The gas chimneymay extend to the top of the sedimentarysuccession, suggesting gas migration via theIperk Sequence to the seafloor. Anoverpressured zone occurs below 1,300-1,500 metres, within the Eocene Richardsand Taglu sequences, based on well loginterpretations.

Benthic foraminifera, both agglutinated andcalcareous, from cuttings of the A-06 wellclearly show evidence of migratinghydrocarbons (bitumen) and other fluidsand chemical reactions (dissolution andprecipitation of silica). Additionally, mineralgrains recovered from the well cuttingsappear to indicate carbonate and magneticmineralization characteristic of hydro-carbon-related diagenesis within a gaschimney environment.

The microfossil analysis indicates that themain phase of hydrocarbon migrationpassed through Oligocene and Miocenestrata immediately above the overpressuredzone. Pliocene-Pleistocene foraminifera ofthe Iperk Sequence show little or nodiagenetic alteration. Additionally,foraminifera in the shale/mud and coalysection (Richards to Taglu Sequence) in thelower part of the well show essentiallynormal burial diagenetic trends.

Thermal maturity, determined by Rock-Eval,vitrinite reflectance (%Ro), and FCI

(Foraminiferal Colouration Index), indicatethat Taglu strata are within the early oilgeneration window (e.g., ~0.60%Ro; Tmaxup to 436oC, and FCI up to 5.9).

BIOGRAPHYDave McNeil (Ph.D., University ofSaskatchewan) is a micropaleontologist with theGeological Survey of Canada. His main areas ofresearch are Cenozoic and Mesozoicmicrofossils in the Beaufort-Mackenzie andWestern Canada Sedimentary basins. Hisexpertise is on benthic “forams” used forregional biostratigraphy and sequencestratigraphic analysis. An innovative sideline tohis primary biostratigraphic work is the analysisof burial diagenetic effects on microfossils andthe assessment of thermal maturity based oncolour changes in agglutinated foraminifera. Dr.McNeil’s interpretation of the Immiugak A-06well relies heavily on contributions fromnumerous colleagues at the Geological Surveyof Canada.

INFORMATIONThis event is presented by the CSPGPalaeontology Division and the AlbertaPalaeontological Society. For information or topresent a talk in the future please contact CSPG Paleo Divison Chair Philip Benham at 403-691-3343 or [email protected] the APS website for confirmation of event times and upcoming speakers:http://www.albertapaleo.org/

STRUCTURAL DIVISION - PROFILE

The Structural Division’s mandate is toprovide a forum for CSPG members whoare interested in structural geology andtectonic processes, and to showcase what is new and current in structural geology.Topics are wide-ranging and include bothcompressional and extensional tectonics.

The division aims to provide informalbrownbag talks every month fromSeptember to May. Talks typically averageabout 45 minutes followed by a shortquestion/discussion period, and arecurrently located on the 17th floor of thePetro-Canada West Tower, 150 6th Ave. S.W.Speakers for the luncheons are sought fromindustry and academia, and new volunteersare always welcome.

The division also hosts at least one field tripper year. These trips are informal and arelead by volunteers within the structuralcommunity. They are designed to be lowcost, and involve no more than one eveningaway from home.

If you are interested in joining the StructuralDivision e-mail listing which currentlyprovides luncheon reminders and a fewother notices of interest to the structuralcommunity, if you care to suggest a technicaltopic or present a talk to the division, or ifyou have a field trip idea, please contactElizabeth Atkinson at (403) 296-3694 [email protected]

KEEPING TRACK

KAREN WEBSTER

New:

Enerplus

Senior Geologist

Previous:

Nexen

Senior Geologist


22

2004 CALENDAR OF EVENTS

DATE: March 9-11, 2005EVENT: 2005 Gussow Geoscience Conference - Coalbed

Methane: Back to the Basics of Coal GeologyLOCATION: Canmore,Alberta

INFORMATION: Get fired up for a discussion on one of the hottesttopics in the industry while relaxing at theRadisson Inn, nestled in the beautiful RockyMountain setting of Canmore,Alberta.The 2005Gussow conference will focus on geologicalaspects around Coalbed Methane (CBM)/NaturalGas from Coal (NGC) reservoirs. Sessions willfocus on the following themes: geological controlson CBM, microscopic and geochemical coalstudies, technical aspects of CBM from the lab tothe field, and CBM in the Western CanadaSedimentary Basin.Preceding the conference is an optional shortcourse to be held in Calgary.The 2005 Gussow Conference is presented by theCSPG in partnership with the Canadian Societyfor Unconventional Gas (CSUG),The Society forOrganic Petrology (TSOP), and the CanadianSociety for Coal and Organic Petrology (CSCOP).Members of any of these organisations are eligiblefor member’s registration rates.RegistrationEarly bird registration will open December 1, 2004.Rates:• Early Bird (Member): $250.00 • Early Bird (Non-Member): $350.00 • Regular Registration Rates will commence on

February 1, 2005.• Member: $350.00 • Non-Member: $450.00 Conference registration closes March 4th, 2005.Conference registration fees include admission tothe ice-breaker on the evening of March 9, thekeynote address dinner on March 10, the keynoteaddress lunch on March 11, as well as continentalbreakfasts, coffee breaks, and buffet-style lunchesthroughout the conference.Accommodations at the Canmore Radisson Innand Conference Centre are available toconference delegates at preferred rates.

DATE: May 15-18, 2005EVENT: Halifax 2005 - a Joint Meeting of the Geological

Association of Canada, the MineralogicalAssociation of Canada, the Canadian Society ofPetroleum Geologists, and the Canadian Society ofSoil Sciences.

LOCATION: Dalhousie University, Halifax, Nova Scotia INFORMATION: Extensive seacoast exposures and a diverse

geological history provide the backdrop for a richtechnical program.The “Building Bridges” theme ofthe meeting is both symbolic of the harbour bridgesthat distinguish our Halifax – Dartmouth skyline,and a metaphor for the multi-disciplinary programthat is designed to bridge the gaps withingeoscience, and between geoscience and society.

We look forward to providing you with theopportunity to discover the charms of our beautifulcity and renew the ties that bind our geosciencecommunity.For more information please visitwww.halifax2005.ca

DATE: June 19-22, 2005EVENT: AAPG Annual Convention in Calgary,Alberta –

Exploring Energy SystemsLOCATION: Round-up Centre, Calgary,Alberta

INFORMATION: For more information please visithttp://www.aapg.org/calgary/index.cfm

DATE: August 8-11, 2005EVENT: Earth System Processes 2

LOCATION: Calgary,Alberta INFORMATION: Sponsored by the Geological Society of America

and the Geological Association of Canada Web site: www.geosociety.org/meetings/esp2Theme Session Proposal submission deadline:September 15, 2004.Abstract submission deadline:April 26, 2005Description: International meeting with aninterdisciplinary focus on Earth’s surfaceenvironment as a complex web of feedbacks amongthe biota, oceans, atmosphere, lithosphere, andcryosphere. ESP 2 will discuss advances made in thelast four years toward better understanding thenature of these feedbacks in the modern world,how they have emerged and evolved over theEarth’s history, and how they will respond to humanperturbations in the future.For more information, contact:Diane Matt,P.O. Box 9140, Boulder, CO 80301-91401-303-357-1014 (phone) 1-303-357-1074 (fax) dmatt@geogociety. org (e-mail)

DATE: November 13-17, 2005EVENT: SETAC North America 26th Annual Meeting

LOCATION: Baltimore, MarylandINFORMATION: The Society of Environmental Toxicology and

Chemistry (SETAC) will hold the SETAC NorthAmerica 26th Annual Meeting at the BaltimoreCovention Center in Baltimore, Maryland,November 13-17, 2005.This year’s theme is “Environmental Science in aGlobal Society: SETAC’s Role in the Next 25 Years.” More information can be found on the society’sweb site www.setac.org


23

Martin Frobisher’s Third Voyage to his “Frobishers Streytes” to mine for gold

Of the 15 vessels comprising Frobisher’sfleet, four were provided by the Company ofCathay, namely: the Ayde, Gabriel, Michael andJudith; the last being commanded byFrobisher’s lieutenant general, EdwardFenton, who had volunteered to supervisethe intended temporary colony to besituated on Anne Warwick (Kodlunarn)Island. Frobisher, as admiral of the fleet, wasassigned to sail in the flotilla’s flagship, Ayde.The fleet’s other 11 vessels were owned bythe various investors involved in his thirdexpedition to Meta Incognita. Six of thesewere sturdily built merchant ships, designatedto transport the ”gold ore” back to England.Christopher Hall, the chief pilot of theexpedition, had been assigned to sail asmaster of the merchant ship, Thomas Allen. Hehad previously served as master of theGabriel as well as the Ayde on Frobisher’sexpedition to Meta Incognita in 1576 and1577 respectively. The remaining five shipswere smaller, 20- to 40-ton merchant vessels,one of which was destined to become thefleet’s single casualty.

Proceeding, initially, southwest down theEnglish Channel, the fleet turned north atLand’s end to berth at Plymouth, wheretheir crews took on water for their Atlanticcrossing. Later, on June 6, 1578, while sailingoff Cape Clear in southernmost Ireland, theycame to the rescue of the vessel,Grechwinde, manned by an English crew fromBristol. A party of Frobisher’s seamenboarded the distressed vessel and found thesurviving crew members in dire straits, theirships and its contents having been ravagedand pillaged, following an attack by Frenchpirates. Martin Frobisher, true to hisseafaring compatriots, came to their rescue.A party from his crew dressed the woundsof the disabled survivors and provided themwith food and water, such that they weresufficiently recuperated to make their ownway back to Bristol Harbour.

Sailing northwest into the Atlantic underfavourable winds and clear weather, thesoutheastern tip of Friesland (Greenland)was sighted during the early hours of June 20.After rounding Kap Farvel (Cape Farewell),Frobisher decided a landing attempt wouldbe made after sighting human habitationabove the shoreline. Accordingly, he

communicated with his pilot, ChristopherHall and ordered him to transfer from theThomas Allen to the smaller Gabriel where he,in turn, would join him from his flagship.When this was accomplished, the Gabrielproceeded inshore and after droppinganchor, Frobisher, Hall, and a number ofseamen were rowed ashore in the ship’s longboat. On disembarking, Frobisherimmediately took possession of the region inthe name of Queen Elizabeth and christenedit West England. He and his fellow marinerswere under the misapprehension that theywere the first Christians to set foot on theirnewly discovered land. Subsequently, EdwardFenton of the Judith and several of hisseamen, also came ashore to join Frobisher’s

party. Together they proceeded to thenatives’ encampment, where on arriving, theyfound it to be deserted.The natives, in theirhaste to avoid contact with the landing party,had retreated into the interior, abandoningtheir tents and equipment, including 40 pups.Frobisher had ordered that only one pup betaken but one of the ships’ trumpters,surreptitiously, was able to smuggle anotheraboard.To compensate for the theft: lookingglasses (mirrors), bells, and small toys wereleft in one of the native’s tents (Ibid.,McDermott – pp. 218, 219).

Edward Sellman, a member of Frobisher’sthird expedition, who had written an

JACK PORTER-VIGNETTES OF CANADIAN PETROLEUM GEOLOGY Continued from the December Reservoir



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26

account of the voyage, makes reference toFrobisher’s investigation of the abandonednative encampment in Greenland, bynoting: “Some of our men that were withthe General (Frobisher) aland did see intheir tente nalyes like scupper (shipboard)nalyes, and a tryvet of yron.” Thisparadoxical example of a Stone Age cultureutilizing Iron Age artifacts would indicatethat the Greenland natives had commercialcontact through bartering with Europeantraders.

The writer, at this juncture, would like todigress temporarily from Frobisher’s thirdvoyage and instead refer the reader to TryggiJ. Oleson’s book: Early Voyages and NorthernApproaches 1000-1632, published byMcClelland and Stewart Limited in 1963.Oleson presents a credible, thoroughlyresearched, and illuminating account of thedevelopment of our present Eskimo/Inuitculture by the intermixing of NordicGreenlanders with the indigenous natives ofGreenland (Skraelings). He chronicles thehistory of the Icelandic settlements inGreenland, which were established by EirikiThorvaldsson (Eric the Red) in 986 A.D. –from their viable existence, through a period of isolation commencing in the late14th century, to their disappearance by themid-16th century.

Oleson examines the numerous theories,advanced by authorities, concerning theirdisappearance. He can find little substantiveevidence to agree with any of the proposedhypotheses. In particular, he disputes therole of climate change in causing the slowdeterioration and ultimate demise of thesettlements. In this regard, reference is madeto the paper entitled: Present TemperatureCompared to Medieval Warm Period and LittleIce Age (Gerhard, C. Lee, 2004, Climatechange: Conflict of observable science,theory and politics; Am. Assoc. PetroleumGeologists Bull., vol. 88 no. 9, p. 1214).Gerhard’s Fig. 2, as supplied by David Wojick,illustrates the Medieval Warm Period waspresent in 1000 A.D. and continued until1200 A.D. During the following 200 years agradual cooling occurred until 1400 A.D., atwhich juncture the Little Ice Agecommenced. It lasted for almost 500 years,having terminated near the close of the 19thcentury.A gradual warming has continued tothe present. The earth’s temperaturedifferential between the Medieval WarmPeriod and the Little Ice Age is shown to bealmost 3°C dropping from +2°C in 1200A.D. to almost -1°C at the onset of thelatter period.This data would indicate, whenapplied to the Icelandic settlements inGreenland, that the colonists enjoyed astable, tolerable climate for the first 200

years of their colonization. During thatperiod, the principal economy was animalhusbandry, their farms being located in thelower coastal regions of the fjords, whichcontained grassy meadows for the grazing oftheir cattle and sheep. During thetemperature descent to the Little Ice Age,the settlements began to wither with themales leaving the farms to engage in a full-time livelihood of hunting. Concomitantly,the indigenous natives, known as Skraelings(little people), began to migrate south, fromtheir northern hunting habitats, to interactwith the Nordic hunters.

Culturally, the Skraelings, representing theDorset Culture, were a very primative race,their physical characteristics being decidedlydiminutive. They have been described asnon-violent pygmies, having black hair withlittle facial hair, flat noses, very dark eyes, andswarthy complexions. They were eaters ofraw meat and fish as well as carrion. Theirstone tools and weapons, like themselveswere also diminutive. Dogs were not utilizedfor drawing sleds.

Dionyse Settle, who accompanied Frobisheron his second voyage to Meta Incognita in1577, described in his memoir two distincttypes of native’s dwellings, which he

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observed on the mainland of Countess ofWarwick Sound. He believed them to becontemporary, to quote: “– the poore cauesand house of those countrie people, whichserue them (as it shoulde seeme) for theirwinter dwellings, & are made two fadomevnder grounds, in compasse rounde lyke toan Ouen, being ioyned fast by one another,hauing holes like to a Foxe or Conny berrie,to keepe and come togither.” Theseexcavated caves are known as vistir(s) andare associated with the Skraeling. Theypredate Settle’s description of thecontiguous dwellings he refers to as“houses,” which: “– are seated commonly inthe foote of a hil, to shielde them betterfrom the colde winds, hauing their dore andentrance euer open towardes the South.From the ground vpward they builde withwhales bones, for lacke of timber, whichebending one ouer another, are handsomlycompacted in the toppe togither, & arecoureed ouer with Seales skinnes – In eachehouse they haue only one roome, hauing theone halfe of the floure raysed with broadstones a fote higher than y other, whereonstrawing Mosse, they make their nests tosleepe in.” Oleson contends that these twotypes of dwellings are not contemporary;that Settle’s cave type was inhabited by theSkraeling (Dorset Culture) and predate hishouse type, the latter constructed by theemerging or present Eskimo/Inuit (ThuleCulture) (Ibid., 1963, Oleson – pp. 52, 53).

The male Icelandic colonists, with theirNordic features, were viewed by theSkraelings as giants. In their role as hunters,they were referred to as the Tunnit (men ofthe reindeer). Oleson asserts that thelengthy period of interrelationship of theTunnit with the Skraelings, in their commonpursuit for survival, through hunting andfishing, extended beyond Greenland. Manymembers of both races had migrated to thecoastal areas of northern Labrador,southern Baffin Island (where they wereknown as the Tornit), Ungava Bay, UngavaPeninsula, and the islands of Canada’seastern Arctic. They lived in rectangular orsquare-shaped houses containing severalrooms with sunken floors. The low wallswere built of large stone slabs with the roofsupports consisting of whale ribs, its surfacecovered with seal skins. The remains ofthese stone dwellings, as well as burial sites,are still evident in parts of theaforementioned regions. Such archaeologicalevidence patently confirms the presence ofthe Tunnit in these regions, they havingpredated the present Inuit.

The commingling of Tunnit males withSkraeling women signaled the erosion of the




29

AN OVERVIEW OF ALBERTA’S OIL AND GAS LAND TENURE SYSTEM

INTRODUCTIONTenure – term used to describe the systemwhereby mineral rights are managed by theDepartment of Energy and disposed toindividuals and companies as agreements.

The importance of proper management ofnon-renewable resources (i.e., oil, gas, andminerals) has long been recognized asessential by both the government and by theoil and gas industry.Alberta’s oil and gas tenurelegislation has evolved in response to changingknowledge and requirements of thepetroleum industry and the government.However, three key principles have remainedconstant throughout the process:

1) No tenure agreement conveying rightsis necessary for methods of explorationother than well drilling, although accessis subject to permission by the surfacerights owner.

2) Once discovered, there is no obligationfor oil and gas to be produced.

3) Tenure is granted beyond the term ofan agreement on the basis of theagreement’s capability to produce inpaying quantity.

In Alberta, the mineral rights in approximately81% of the province’s 66 million hectares areowned by the provincial government and aremanaged by the Department of Energy. Theremaining 19% are held by the federalgovernment, by the successors in title to theHudson’s Bay Company, by the national railwaycompanies, and by the descendants of originalhomesteaders through rights granted by theCrown before 1887.The former are known asCrown mineral rights and the latter asFreehold rights.

HISTORYBetween 1670 and 1869, the Hudson’s BayCompany held the mineral rights in what isnow Manitoba, Saskatchewan,Alberta, and theNorthwest Territories. Most of these rightswere traded to the Dominion of Canada inexchange for five percent of the land surveyedin the fertile belt (including the mineral rights).In Alberta, this amounted to slightly less than1,000,000 hectares.

The Government of Canada administeredthese mineral rights until 1930, when theCrown mineral rights in Alberta weretransferred to the Province. The ProvincialLands Act came into force the following year;however, it and the associated regulationswere almost identical to the former federalregulations. During these early years,Prospecting (i.e., exploration) Permits were

granted for one year on a maximum area of768 hectares.The permit holder was requiredto conduct core drilling on the permit area toearn the entire area in lease. Leases weregranted with a 21-year-term and could berenewed a further 21 years if they werecapable of producing commercial quantities ofhydrocarbons. Leases could be grouped (up toa maximum of 8,000 hectares) to allow formore efficient exploration and exploitation.

By 1936, it had become apparent that the

prospecting permit areas were too small for thescale of exploration needed. Regulations werechanged to allow for larger areas and themaximum size of lease groupings was increasedto 20,000 hectares. Prospecting Permits werediscontinued in 1937 and replaced by thePetroleum and Natural Gas Reservation. Up to40,000 hectares could be included in areservation, allowing exploration over largetracts where little was known about the geologyand the hydrocarbon potential of the area.

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Reservations were acquired by competitivebid. If no bid was received on the sale date, thereservation became available the following dayfor a minimum filing fee on a first-come, first-served basis. Loosely specified workrequirements were imposed on thereservation holder to ensure that anexploration effort was maintained throughoutthe life of the reservation. Reservations couldbe grouped to a maximum of 80,000 hectares(312 sections).

Completion of the work program entitled thereservation holder to select 50% of the area aslease blocks. Each block could be no largerthan a nine-section square or eight-sectionrectangle. The leases had to be arranged in achecker-board fashion or separated by

corridors at least one section (1.6km) wide. Inthe event of a commercial oil discovery, thereservation holder had to make a leaseselection around the discovery within threemonths. An equal area surrounding the leasereverted to the Crown, which couldsubsequently be made available to industry forfurther development. Although this created acomplex leasing system, it provided a highlycompetitive situation for companies of all sizes.

Initially, hydrocarbon exploration was mainlydirected at crude oil, however, increasingamounts of natural gas were being discovered.At the same time,major limitations to gas pooldevelopment were recognized in the tenuresystem with its lease block and corridorapproach. As a result, the natural gas licence

was introduced in 1951. The lease block andCrown Reserve corridor requirements werewaived, but the area selected had to becontiguous and were zone specific.Natural gaslicences also required a continuous drillingprogram over the term of the licence. At theend of the term, 21-year natural gas leasescould be selected.

As time proceeded, technical and economicreasons led to further revisions of the tenuresystem. In 1952, the Crown Reserve naturalgas licence was introduced to stimulate long-range exploration for natural gas, which wasconsidered marginally economic at the time. In1954, Crown Reserve drilling reservationswere introduced to stimulate drilling tospecific target zones thought to have goodprospects for crude oil. Likewise, in 1962, itwas recognized that the focus of explorationactivity was moving into the central basin areain pursuit of deeper multi-zone prospects.Thisshift was causing a decline in activity in thesoutheast portion of the province.As a result,a new administrative area (Block A) wascreated. In that area (Twp. 1-64, Rge. 1-30W4),the Crown Reserve system was replaced bythe petroleum and natural gas permit, whichhad a number of incentives to makeexploration there more attractive.

By the mid-seventies, a number of concernsabout the existing tenure system had beenidentified. One of the most important issueswas the stagnation in exploration of deepergeological zones. Some operators wereholding large lease blocks by production fromshallow zones, which many smaller operatorsfelt was delaying the development of thedeeper zones. Other issues included:

1) the need to stimulate drilling activity,2) the decreasing possibility of discovering

new oil pools that would exceed theareal extent of a lease block, and

3) the need to simplify and reduce thenumber of agreement types.

Thus, in 1976, the government passedamendments to the Mines and Minerals Actto address these issues. In addition torevisions to simplify the types and terms ofagreements offered, the concept of deeperrights reversion was introduced. This newprinciple required that the rights below thedeepest productive zone in the lease wouldrevert to the Crown, as well as any landsconsidered to be non-productive.

In 1985, the Mines and Minerals Act was againrevised in order to further simplify leasecontinuation and to carry the principle ofdeeper rights reversion a step further.Amongthe more significant changes was the shiftfrom the government to the lessee of the


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• Pre-tournament registration social will be at Bow Valley Racquet Club (3rd Streetand 5th Avenue S.W.) on Tuesday, February 1 at 5:00 pm. Pick up your tournamentkit and first draw time, and enjoy a free pint of Ale with munchies.

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31

former’s culture. During their lengthyperiod of dispersion and amalgamation withthe Skraelings, the Icelandic Tunnit lost, notonly their language, but their traditionalcustoms and Christian faith, as theyretrogressed from an Iron Age culture into aStone Age culture.According to Oleson, theformer Icelandic Greenlanders (Tunnit) andthat country’s Skraelings (Dorset Culture)are the progenitors of the modernEskimo/Inuit (Thule Culture). WhenEuropeans, some of whom were Danishmissionaries, arrived in Greenland in the late16th and early 17th centuries, they found theGreenlanders to be highly varied inappearance. Some had retained vestiges oftheir Icelandic ancestors while mostexemplified the modern Eskimo/Inuit. Allwere considered pagan and collectivelyspoke the unique Eskimo/Inuit linguistictongue inherited from the Skraelings (Ibid.,1963, Oleson – p. 70).

This remarkable fusion of two ethnicallydistinct people produced an unique hybridrace.Within a span of 500 years, they spreadacross the Arctic regions from Greenland tothe north coast of Siberia. This begs thequestion: was the Little Ice Age the causationof this process?

To be continued...

industry is currently not hiring enough newgraduates to replace those of us who will beretiring over the next decade. Othersocieties are already facing decreases in theirmemberships; we have to develop a strategyof keeping ours strong. Therefore, we aregoing to hold a strategic planning session inearly 2005 and would like to have a goodrepresentation of our membership involved.Please contact me if you are interested inparticipating.

It has been an honour and privilege to serveas your President in 2004. I could not havedone it without the hard work of manyothers. I would therefore like to express mythanks to the members of the Executive fortheir support. I would also like to thank allthe volunteers who have worked so hard tomake our Society strong and vibrant.Thanksalso to the staff – Tim, Jaimè, Deanna, Kim,Lori, and Sarah – for running dailyoperations so effectively.You have all done afantastic job!

Craig LambPast President

EXECUTIVE COMMENT...Continued from page 5



32

responsibility for identifying a productivelease and applying for a continuation.Also, thepractice of allowing all the productive lands ina lease to be continued based on the deepestproductive zone anywhere in the lease waschanged to reflect production by specificspacing units.This allowed further freeing upof unproven rights.

A decade later, a new list of issues had

accumulated and, in 1995, the IndustryAdvisory Committee was established. Itspurpose was to review the petroleum andnatural gas tenure legislation, regulations,policies, and rules, and to involve the oil andgas industry as fully as possible in the reviewprocess. Further review led to additionalamendments to the Petroleum and NaturalGas Tenure Regulation, which took place onJanuary, 26, 2000. The Industry AdvisoryCommittee remains active and is the primaryvehicle for discussing future changes to theregulations.

PRESENT TENURE SYSTEMThe present tenure system allows for theDepartment of Energy to dispose ofpetroleum and natural gas (P&NG) leases andlicences (1) on application, dependent onMinisterial approval, (2) by sale by publictender, and (3) pursuant to any otherprocedure determined by the Minister. Themajority of agreements are issued by sale bypublic tender. The word ‘sale’ is a misnomeras the Crown always retains title to theminerals and the process is actually anauction by sealed tender with the rightsleased to the highest bidder.

Any company or individual who wishes toacquire P&NG rights may submit astandardized Posting Request form. TheDepartment examines the requested rightsto ensure that they are undisposed and thenrefers the request to the multi-agencyCrown Mineral Disposition ReviewCommittee. This committee is responsiblefor identifying any surface accessrestrictions, e.g., seasonal restrictions forthe protection of wildlife habitats.

The maximum size for a single posting is 15 sections in the Plains Region (Figure 1),

32 sections in the Northern Region, and 36sections in the Foothills Region. Theminimum size for most parcels is an oil wellspacing unit. Land sales typically are heldevery two weeks, the dates of which arepublished two years in advance. The normalposting cycle of 17 weeks consists of a two-week acceptance period, seven weeks forinternal processing, and eight weeks from thepublication date of the Public Offering Noticeto the sale date.

A request may be made for all the rights in aposting parcel, or for only a portion of them(Figure 2). If all rights are available, a requestmay be made for:

1) All rights,2) All rights from the surface to the base

of a specified zone, or3) All rights below the base of a specified

zone to some other specified zone

If there is an existing agreement so that not allthe rights are available, the request can be for:

1) All available rights from the surface orthe base of a specified zone to the topof the existing agreement, or

2) All available rights from the base of theexisting agreement to some otherspecified zone

Bids have to be submitted by noon on thedate of the sale. The bids must be in one ofthe prescribed formats and has to include (byelectronic funds transfer) a $625 applicationfee, the rental for the first year of theagreement (at $3.50 per hectare), and abonus bid. The minimum bonus amount is$2.50 per hectare for a lease and $1.25 perhectare for a licence. Results are available at9:00 a.m. via the Department’s electronicmailing list and are published at 10:00 a.m. theday after the sale.

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Figure 1: Alberta P&NG Licence Regions.(After figure 4, page 9, Alberta Oil and Gas Tenure)

Figure 2. Combination of zones available for leasing (After Figure 3, Page 8, Alberta Oil and Gas Tenure)



34

BRIEFHISTORY OFGEOPHYSICS(EARTHPHYSICS)Aristotle (383-322 B.C.) isusually given the credit forcompiling thefirst known geo-physical treatise,the “Meteoroligica”,which embraced weather,oceanography, astronomy and meteors. Formalseismic instrumentation appeared in A.D.132when Chang Heng set up his seismoscope inChina, which indicated earthquake activity.Anymovement would cause water to flow from aspout into the frog’s mouth. This woulddetermine magnitude and direction.

Throughout medieval times, the divining stickor rod became a standard tool in the searchfor groundwater or rare minerals. Even todaythis particular methodology is still practicedbut is not yet understood.

The main growth phase occurred during theRenaissance when Leonardo da Vinci (1452-1519) initiated new thinking on geology,vulcanology, aircraft, parachutes, submarines,and art, notably the Mona Lisa. The paintingitself is Leonardo’s understanding of the Earthas a “living organism” and not simply a deadplanet. He also deduced that alpine rocks wereonce submerged under the sea when heidentified the fossil clam shells they contained.Leonardo’s work with sound and light hasprovided the tools for the modernunderstanding of the main geophysical methodsemployed in the oil and mining industry.

Many other famous scientists have contributedto the development of geophysical methods.These include William Gilbert (1540-1603) whofounded the science of magnetism; GalileoGalilei (1564-1642) who developed theformulae for gravity and invented thethermometer; Christian Huygens (1629-1695)who explained refraction and diffraction in wavebehavior; Sir Isaac Newton (1642-1727) whoformulated the basic Laws of Motion; BenjaminFranklin (1702-1790) who studied lightning andpostulated continental drift.

These early scientists had great skills and insightand few could stray from a natural curiosity ofthe earth amongst their other interests.However, the development of geophysics wassomewhat slow and academic during the 1800sand the first attempts at recording earthquakesdid not occur until 1880. In 1897 the first globalnetwork of seismic monitoring systems wasproposed and was operating by 1899.

The early investigations and development ofgeophysics has followed four unique pathwaysbased on four important earth properties:• Density, measured as the force of gravity• Magnetization, expressed as the local

magnetic force

• Electrochemical, measured withelectrodes

• Acoustic response (seismic), measuredby geophones

Each of these methods has played a key rolein the evolution of applied geophysics inexploration for minerals, coal, and oil and gas.While each one has special characteristicsand applications, our interest will be focusedon the seismic method which is the mostpopular and provides the best definition ofthose targets we seek in the oil and gasindustry. We will follow the changes thatoccurred when earthquake physicists beganto consider the possibility of creating artificialearthquakes to make images of the geologicalsubsurface and began the exploration processfor natural resources.

Simplifying SeismicChapter 1 Dr. Easton Wren

This is the first chapter in a series, which will explain the

seismic business in simple terms. Designed specifically for

geological personnel in the oil industry, it should provide a

forum for information and questions.This opening installment

will focus on the very early history of geophysics in

exploration in general and trace the beginnings of the seismic

method exploration.

Aristotle Replica of Chang Heng’s seismoscope

Leonardo da Vinci

Galileo Galilei


35

EARLY DEVELOPMENTS WITHSEISMIC The use of seismic methods as an explorationtool is essentially a twentieth centuryphenomenon. While the global network ofseismic (i.e., earthquake) observatories wasestablished in the 1890s, it was not until theearly 1920s that an artificial earthquakemethod was developed to use seismic as aremote sensing or imaging tool forsubsurface geology.

There were several independent discoveriesthat ultimately were to be embraced in thegeneral understanding and application. One ofthe more romantic was the work of theGerman scientist, Ludger Mintrop. He hadbeen a Professor of Earthquake Seismologyprior to World War I and was drafted by themilitary.The German High Command was notsure how to use his talents and assigned himto various sectors of the war. He served in theairship division as a physicist but it was as acommander of a long range artillery unit thathe suggested that he could detect the positionof enemy artillery installations using hisseismograph equipment from the university.The idea was simple. Lay out the seismicdetectors (geophones) in a pattern and recordthe miniature earthquakes created by theshock waves of the enemy guns and identifytheir position by triangulation.

After a demonstration of the method at afiring range, Ludendorff, the SupremeCommander, was convinced and ordereddeployment of these units at the front.However, resources were scarce, the war wasdrawing to a close, and the system was neverimplemented.

Mintrop entered the post-war years with anidea that it was possible to generate artificialearthquakes at the surface and inject energyinto the ground to produce informationabout the geological subsurface. An earlyexperiment focused on salt domes buried inthe Rhine Valley which were considered tobe causing oil traps. Success was achievedand Mintrop was invited by Gulf Oil to bringhis technique to the United States anddemonstrate its value. In 1923, his seismictechniques were applied and identified theOrchard Salt Dome, between Houston andSan Antonio. This was drilled and becamethe Orchard Oilfield. Seismic had arrived asa viable tool and swept throughout NorthAmerica. The first geophysical crew arrivedin western Canada in the summer of 1926,working out of Lethbridge.

Of particular interest here is that Mintrophad a business relationship with Conradand Marcel Schlumberger in Paris in theearly 1920s. Together they formed theSociete de Prospection Electrique, ageophysical company engaged primarily inmineral exploration using electrical(resistivity) methods. After a short periodMintrop went his own way and created hiscommercial company “Seismos” (the Greekwork for sound). In the 1960s this companybecame “Prakla,” then “Geo-Prakla” thenfinally, Schlumberger. It is fascinating thatthe founding fathers of the two serviceindustries, seismic and well logging, createdtheir own companies and ultimately unitedunder the one flag at the end of thecentury.

Mintrop’s story does not end here. He laterreturned to university life as a professor.Weshall see how his influence with one of hisgraduate students, a young Dutchman calledOtto Koefoed, resulted in a dramaticdiscovery which became part of modernseismic’s most powerful interpretive tools –the method of A.V.O., or amplitude versusoffset.

EARLY EXPLORATION FOR OIL AND GAS WITH GEOPHYSICALTOOLSIt is over two hundred years since earlypioneers noticed the peculiar oil-saturatedsandstone exposed along the banks of theAthabasca River. Since that time, the historyof oil and gas in western Canada hasgathered much momentum and geophysicshas played an increasingly significant role.

The first Canadian discovery of natural gashappened by accident at Alderson inAlberta in 1883. A cable-tool rig drilling awater well along the CPR right-of-wayencountered gas at a depth of 335 metersand the well blew wild with severeconsequences when several of the drillingcrew were injured. At Medicine Hat in1890, natural gas was discovered duringcoal seam drilling operations and led to thefirst commercial development of a naturalgas field. In 1914 the Dingman well wascompleted in Turner Valley and producedwet gas with very light oil.

During the course of this early history,geophysics was emerging as a practicalmethod of reducing the odds in exploratorydrilling. The earliest indications ofgeophysical operations in western Canadainclude torsion balance (gravity) surveys runat Norman Wells and over the southernplains of Alberta in the 1920s. In 1930,extensive torsion balance surveys wereconducted in southern Alberta by Hudson’sBay Oil and Gas. The first full-timegeophysicist appears to have been J. EdgarDuncan who worked for the Gas Companyfrom 1929 till 1933.The first seismic surveywas run at Turner Valley in 1929 for Royalite.This was followed by seismic operations inLethbridge (1933) and High River (1934).

The crews all came from the United Statesand had no sense of winter conditions.Thus,all seismic work was done in thesummertime, avoiding the extreme heat ofmid-Continent areas like Texas andOklahoma. Winter activities were not

Sir Issac Newton

Benjamin Franklin


36

initiated until after World War II.Today, mostseismic operations are run in the winter,peaking in January, when budgets usually kickin and when frozen ground conditionsprovide easier access, less surface damage, nointerference with crops, and achieve betterquality data at relatively lower cost.

By the late 1930s, seismic work was on theincrease only to be partly affected by WorldWar II. In 1944, seismic data acquired byUnited Geophysical led to the discovery ofShell’s Jumping Pound Gas field.

Canada’s most noted petroleum geophysicistof the time was the late Norman J. Christie(1914-1997). Not only was he highlyrespected as a scientist but he had an acutesense of business and gained the reputationof being Canada’s geophysical ambassador. Heachieved the highest honours that the seismicindustry could bestow including beingpresident of the SEG (the global Society ofExploration Geophysicists).

Western Canada’s oil industry made aquantum leap with the discovery fromseismic data of the Leduc Number 1 nearEdmonton in February 1947.This came afterImperial had drilled over 120 consecutive dryholes and were thinking of abandoningwestern Canada. In spite of known Devonianreef oil at Norman Wells and oil in the olderrocks of the Foothills, it was not consideredlikely that there would be much to be foundunder the Cretaceous of the prairie. Thus,Leduc was as much a milestone for thegeophysical industry as it was for the oil andgas industry itself. Both came of age withLeduc.

Note: Questions on this and subsequent articlesare invited. Please send any question by email tothe author at [email protected]. A selection ofquestions with answers will be publishedregularly.

Leduc Number 1


37

HALIFAX 2005BY H. SCOTT SWINDEN, GENERAL CHAIR, HALIFAX 2005

Halifax, Nova Scotia, is the site of the 2005joint meeting of the Geological Association ofCanada, the Mineralogical Association ofCanada, the Canadian Society of PetroleumGeologists and the Canadian Society of SoilScience. The meeting, hosted by the AtlanticGeoscience Society (an affiliated society ofCSPG), will be held at Dalhousie Universitybetween May 15 and 18.The theme of Halifax2005 is “Building Bridges” and the meetinglogo is a stylized bridge that is both symbolicof the harbour bridges that distinguish theHalifax – Dartmouth skyline, and a metaphorfor a multi-disciplinary technical program thatis designed to bridge the gaps withingeoscience, and between geoscience andsociety.

The Halifax organizing committee has beenworking on behalf of the four societies formore than three years, to develop a diverseand interesting program of science and socialevents.Although this is not the first time thatCSPG has teamed up with GAC and MAC –many members will remember St. John’s1988, and, of course, GeoCanada 2000 inCalgary - it is the first time that the societieshave met jointly with the CSSS. We are

excited by this opportunity and think thatthis will add an interesting new scientificdimension to the meeting.

Halifax 2005 will augment the CSPG annualmeeting, by providing a focus for a diverseprogram of geoscience focused on easternNorth Amerca and its hydrocarbon systems.CSPG’s premier contribution to thetechnical program is a symposium entitledPetroleum Systems of the Arctic and AtlanticMargins, organized by Grant Wach ofDalhousie University, who is also the CSPGvice-chair of the meeting’s organizingcommittee. This symposium will run for thethree days of the meeting and featuressessions on: Atlantic Margin PetroleumSystems; Basin Evolution and Salt Tectonics;Stratigraphic Successions and PetroleumSystems of Lacustrine Basins; PaleozoicBasins in Eastern Canada - New Conceptsfor Hydrocarbon Systems; and New Insightsfor Exploration of Petroleum Systems(Plenary Session). In addition to thissymposium, there will be a number of SpecialSessions dealing with aspects of sedimentarybasin evolution and sedimentation that willbe of interest to CSPG members.

The meeting features 16 field trips, to a widevariety of geological environments within theAtlantic Provinces.Of special interest to CSPGmembers will be Trip A2, Salt Tectonics andSedimentation in Western Cape Breton Island,Nova Scotia led by Ian Davison (Earthmoves)and Chris Jauer (Geological Survey of Canada– Atlantic) and Trip A5, Facies Heterogeneity inLacustrine Basins:The Transtensional MonctonBasin (Mississippian) and Extensonal FundyBasin (Triassic - Jurassic), New Brunswick andNova Scotia led by David Keighley (Universityof New Brunswick) and David E. Brown(Canada–Nova Scotia Offshore PetroleumBoard).

CSPG is also making a significant contributionto the Halifax 2005 program through itssponsorship of three short courses: SC-3Sequence Stratigraphy for Students organizedby Art Donovan, Cindy Yielding, and GrantWach; SC-4 From Lithosphere to basin:numerical and analogue modelling of basinand foldbelt evolution organized by JuergenAdam, Chris Beaumont, Ritske Huismans,Steven Ings, and Glen Stockmal; and SC-5Seismic geomorphology organized by HenryPosamentier.

In addition to the technical program, theorganizing committee is planning a full slateof special events including a harbour tour andMaritime feast on the Halifax waterfront, afull slate of awards luncheons, a fun run, and astudent breakfast, sponsored by CSPG.Because the MAC will be celebrating its 50thanniversary in 2005, we are planning anumber of celebratory events including a galabirthday party, a public lecture on minerals insociety, and a display of specimens from thePinch mineralogical collection.

The Halifax 2005 organizing committee isproud of the bridges we are building and weare looking forward to showing them off tothe Canadian geoscience community nextMay. CSPG has played a key role in planningfor Halifax 2005, and in ensuring that theprogram is well stocked with science fromthe emerging hydrocarbon plays of easternNorth America. For more information on themeeting, please visit our website atwww.Halifax2005.ca. We look forward toproviding you with the opportunity todiscover the charms of our beautiful city andrenew the ties that bind our geosciencecommunity.

Scott SwindenGeneral ChairHalifax 2005 Organizing Committee

... and get involved.

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38

ANNUAL AWARDS REPORTBY DEBBIE HORBACHEWSKI, AWARDS COORDINATOR

Every year the Canadian Society ofPetroleum Geologists and the CSPGEducational Trust Fund present anassortment of awards to deservingindividuals for excellence in the science ofpetroleum and sedimentary geology,distinction in the field of fossil fuelexploration, high quality oral and writtenpresentations, leadership in volunteerism,and exemplary academic performance atthe graduate and undergraduate levels.Thisyear, due to a change in presentation

format, we will be highlighting each award inthe CSPG Reservoir prior to theirpresentation at the Technical Luncheons.Please check back every month for a newAward spotlight.

This month the CSPG Executive andAwards Committee take great pride andpleasure in presenting those volunteersreceiving Volunteer and Service Awards for2004. It is with much gratitude andappreciation that these recipient’s names

are brought forward by their respectivenominators. Without a strong core ofvolunteers in the CSPG, we would not bethe society we are today. From volunteeringat the annual Convention to chairing acommittee for a number of years, CSPGvolunteers have continued to provethemselves to be dedicated, talentedindividuals.

Congratulations and well done!

SERVICE AWARDSShaun AlspachWes BaderJim BarclaySelena BillesbergerGraeme BloyMark CaplanDouglas CarstedAllan CarswellAndre ChowNancy ChowMaria CioppaJohn CodyBill CoxGraham DaviesEva DrivetJon DudleyPhil EsselingerRichard EvoyGeorge EynonSteve GrasbyDoug HamiltonDoug HardmanGreg HaydenBrad HayesSean HayesAndrea HenryPeter HodginsMemory MarshallDon KeithLuc LalondeLarry LaneDale LeckieScott LerouxGrant LosEd MathisonRobert McAuleyDennis MelocheDon MunroTom Moslow

Ian MuirShannon NelsonAndy NewsonBob NixonJeff PackardVic PaneiPaul PiovosoBrian PrattIndy RaychaudhuriCindy RiedigerTerri SamiMike SeifertRick SteedmanRichard ThomTed WatchukJack WendteJohn-Paul Zonneveld

VOLUNTEER AWARDSLeah AlspachNicholas AyreRyan BarnettLawrence BernsteinPeter BoylePaul BushellDavid CaldwellIan CameronRandi ChristiansenGela CranePeter DankersMarianne DoehlerAngela DowdMark DucheckJames DugganNed EtrisKym FawcettJessie GouldKaren GreengrassDawn HodginsDebbie Horbachewski

Melany HysertPat JansDeanne KatnickShawn LaFleurTherese LynchJames MacEachernMark MallamoMarc CharestJennifer MarquesBill MartindaleBlair MattisonChris MayDavid MiddletonNolan MoorePeter MustardPatrick ElloittFrank PogubilaKen PotmaAndrew RoyleAl RutherfordAsma SaleemDeborah SandersonDon SimmonsStacia SkappakNadya SlemkoRandy SmithJennifer SquanceTim SteelsColin ThiessenKevin TreptauJennifer UnterschutzStephanie Van HoekelenKrista WalkerKaren WebsterWallace WellsKent WilkinsonDick WillottJolene WoodKeith YaxleyColin Yeo


39

BETSY NICHOLLS: 1946-2004

The Royal Tyrrell Museum mourns the lossof award-winning researcher Dr. Betsy(Elizabeth) Nicholls, who passed away onOctober 18, 2004, after a prolonged andcourageous battle with cancer. Dr. Nichollshad been the marine reptile specialist at theRoyal Tyrrell Museum since 1990. She wasone of Alberta and Canada’s mostcelebrated and accomplished vertebratepalaeontologists.

Nicholls was internationally known fordiscovering and describing new species ofmarine reptiles. A sampling of her careerhighlights includes:

• Collecting and researching the world’slargest known ichthyosaur found in thePink Mountain region of northeasternBritish Columbia. In 2000, Nichollsreceived the Rolex Award for Enterprisefor her pivotal role in recovering theremains of the 23-metre-long reptile.

• Collecting and studying new primitivemarine reptiles from the Wapiti Lake area ofnortheastern British Columbia, a projectthat established western Canada as one ofthe world’s most important localities forTriassic marine reptiles.

• Collecting and studying North America’soldest known plesiosaur, discovered northof Crowsnest Pass.

Dr. Nicholls was born in Oakland, California,in 1946. At the age of 10, she moved withher family to Melbourne,Australia. She laterreturned to the U.S. where she completedher undergraduate studies in palaeontologyat the University of California at Berkeley.

In 1969, Betsy moved to Canada with herhusband, Jim, who had accepted a positionwith the University of Calgary. Shecompleted her M.Sc. in biology(palaeontology) at the University of Calgaryin 1972 and in 1989, after completing herthesis on marine reptiles from Morden,Manitoba, she received her Ph.D.

Throughout her 14 years at the TyrrellMuseum, Betsy called Calgary home andmade the 170-kilometre commute toDrumheller and back every day. Dr. Nichollstouched all those who were fortunateenough to have known her. She will beremembered for her tireless efforts,commitment and dedication to her work, andto the museum. She is survived by husbandJim and daughters Jennifer and Kat.

Edinburgh University as a graduate student,where he studied the sedimentary andstructural geology of southwest Turkey for hisPh.D. project. Moving to Newfoundland for ashort stint as a post-doc, he developed aninterest in the sedimentary geology andtectonics of the Appalachians. In 1981 hemoved to Nova Scotia, to a position at SaintMary’s University, teaching both sedimentaryand structural geology, and continuing researchin the Appalachians. Work with Glen Stockmal(Geological Survey of Canada) led to theidentification of a triangle zone and therecognition of previously poorly known Acadianstructures in western Newfoundland. In NovaScotia he worked on the evolution of theturbidite-dominated Meguma Group and ondeformation associated with Carboniferousstrike-slip faults. Comparison of deformedturbidite successions took him into Archeanrocks of the Slave Province (NorthwestTerritories).

In 2000, he moved to the Department of Earthand Atmospheric Sciences at the University ofAlberta, where he was appointed AssociateChair with responsibility for undergraduatestudies in 2004. He has continued to doresearch on Atlantic Canadian tectonics inNewfoundland and Nova Scotia, interpretingnew industry data as they became available. Hehas also begun projects in the Cordillera, lookingat the Proterozoic Windermere Supergroup ofthe Rockies and Cariboo Mountains, and theMesozoic Bowser Basin of Northern BC.

INFORMATIONTalks are free; please bring your lunch. Goodiesand drinks are provided by HEF PetrophysicalConsulting. If you would like to be on theStructural Division e-mail list, or if you’d like togive a talk, please contact Elizabeth Atkinson at(403) 296-3694 or [email protected].

STRUCTURAL DIVISION ...Continued from Page 16


40


41

AAPG 2005 – CSPG CORE CONFERENCE, JUNE 23-24, 2005

EXPLORING ENERGY SYSTEMS

One of the cornerstones of the CanadianSociety of Petroleum Geologists’ technicalactivities is the Core Conference heldannually in conjunction with the Society’sspring convention. In 2005 the AAPGAnnual Convention is slated for Calgary(June 19 – 22) with the CSPG as the hostSociety. But the tradition will live on! TheCSPG Core Conference is scheduled forJune 23 – 24 immediately following theAAPG Annual Meeting. The venue will be (as it has been for the past 35 years) theAlberta Energy and Utilities Board (AEUB)Core Research Centre, the largest andmost functional facility of its kind in the world.

The theme for the CSPG Core Conferencewill follow that of the AAPG AnnualMeeting: Exploring Energy Systems. Overthirty core displays, with supportingposters, will be organized into three sub-themes: unconventional, conventional,and frontier/ international hydrocarbonsystems. The unconventional displays willinclude coal-bed methane, tight-gas, and oil-sands/heavy-oil cores from Canada and theUnited States. The conventional coredisplays will consist of both sandstone andcarbonate reservoirs representative of thevaried producing zones in the WesternCanada Sedimentary Basin. The CanadianFrontier examples will include the

Mackenzie Delta, Scotian Shelf, NorthwestTerritories, and Grand Banks. Internationaldisplays from regions such as the AlaskanNorth Slope, North Sea, and Gulf ofMexico and from countries such asEcuador, Saudi Arabia, Brazil, Mexico, andYemen are either confirmed or in theprocess of being solicited.

It is anticipated that the 2005 CSPG CoreConference will set a precedent in terms ofoverall attendance because it immediatelyfollows the AAPG Annual Meeting. Thus,core displays/posters are being invited/

accepted so as to cover the broadspectrum of interest of both CSPGmembers and AAPG Conventionattendees.A registration fee of $20 U.S. willbe charged to attend the Core Conference.For your $20 registration you’ll alsoreceive a core-manual publication, as wellas entry into the annual Core Meltdown,slated for Friday afternoon.

All CSPG members are encouraged toattend the AAPG convention, but if you areunable to do so, you can still attend theCore Conference. Registration forms forthe 2005 AAPG Conference are available onthe AAPG website www.aapg.org, or youcan follow the links from the CSPG websiteat www.cspg.org. You can also fill out theregistration form in the Final Circular whichwill be available in February’s Reservoir andAAPG Explorer.

On behalf of my committee, thank you foryour support. We look forward to seeingyou at the Core Conference.

Gerry ReinsonCore Conference Chair



43

AGREEMENTSThere are two basic types of agreementsavailable – licences and leases. The licencewas intended to operate as a short-termexploratory agreement and the lease as alonger-term development agreement. Theydiffer in the amount of land a single parcel cancontain and in the length of initial term forwhich the rights are acquired.

For a licence, along with the right to drill forand recover oil and gas comes an obligationto evaluate the rights contained in the parcel.In the Plains Region (Figure 1), the lessee hastwo years to do so. The term for theNorthern Region is four years, while that ofthe Foothills Region is five years.These termstake into account the different geology,climate, topography, and access restrictions ofthe three regions.

Generally, drilling on a licence satisfies thisobligation. However, the licence could also begrouped with other initial-term licences inthe immediate area. This would then allowthe lessee to develop the best geologicalprospect and validate the parcels whilereducing the need to drill unnecessary wells.The number of sections validated by a well isdependent on the depth of the well and theregion that the licence is in. Table 1, is aportion of Schedule 2 of the Petroleum andNatural Gas Tenure Regulations, whichidentifies the amount of land earned by thedepth of the validating well.

The well must evaluate rights that arecontained in the licence, but is not requiredto have encountered oil or gas – a well thatis dry and abandoned can be used forvalidation. In addition to a new well, re-entered wells may also be used for groupingand validating purposes, provided they aredrilled to at least the prescribed minimumdepth beyond the total measured depth ofthe well prior to the re-entry. Once a wellhas been drilled, the lessee may validate theearned land (convert to lease) for anintermediate term of five years. Theintermediate-term licence takes on the samecharacteristics as a primary-term lease.

The other agreement type is the lease.A leasecan be continued beyond its primary term ifthe lessee can demonstrate that it is capable ofproducing petroleum or natural gas in payingquantity at expiry. However, the rights belowthe deepest productive zone in the lease, aswell as any land considered to be non-productive would revert to the Crown.

When a lease reaches the end of its primaryterm or a licence the end of its intermediateterm, it expires unless the lessee can provethat it is capable of production. Each spacing

unit in the lease or licence is assessedindividually. A spacing unit is eligible to becontinued if it:

1) Contains a productive well,2) Is considered to be productive based

on technical information,3) Is subject to an obligation to pay

offset compensation,4) Is subject to a unit agreement, or5) Is subject to a gas storage unit agreement

OFFSET REQUIREMENTSWhen a well is placed on production, theassumption is that it will drain all the oil orgas from the spacing unit in which it islocated and then will begin to drain the oil orgas from the adjoining spacing units. BecauseAlberta operates under the Rule of Capture*,the owner of an adjacent spacing unit is notentitled to any compensation for thisdrainage.The adjacent owner’s only recourseis to drill a well and produce the oil or gasbefore the offsetting well does.

When the producing well is on freehold landthat adjoins Crown land, drainage of theadjacent Crown spacing units would ultimatelyresult in a loss of revenue to the Crown and,by extension, the people of Alberta. Thegovernment is obligated to take some actionto prevent, or obtain compensation for, thedrainage. The Department of Energy,therefore, serves notice on each adjoiningCrown lessee that they must put a well onproduction in each Crown spacing unit inorder to offset the drainage by the freeholdwell. Unless the lessee can demonstrate thatthe freehold well is not draining Crownreserves, failure to comply with the noticeresults in the cancellation of the affectedCrown spacing units.

UNITIZATIONOil and gas reservoirs may extend acrossmultiple leases or intermediate-termlicences. In such cases, the various lesseesmay combine their agreements and operateas a single entity in order to achieve a moreefficient and cost-effective operation. Thearea within the unit is divided into tracts,which are assigned a percentage value basedon technical parameters. When the unitreaches the end of its usefulness, it isterminated and the agreements contained init become subject once again to normal landtenure requirements for productivity.

CONCLUSIONThe tenure system facilitates the leasing ofthe province’s petroleum and natural gasrights. This allows companies to explore forand develop Alberta’s oil and gas resources,for the benefit of the province’s residents.Recent events have shown the impact theseresources have on the province.

The tenure system has evolved over theyears to keep pace with changing geologicalknowledge, technology, and world events. Forover 70 years, the Alberta government hasoverseen the orderly development of theprovince’s petroleum and natural gasresources. Their efforts have led to theAlberta tenure system being looked upon byindustry as one of the best in the world.

*The rule of capture: a doctrine based on English

common law. If a game animal or bird from one estate

migrated to another, the owner of the latter estate was

perfectly within his rights to kill the game on his land.

Similarly, owners of land had the right to draw out

whatever wealth lay beneath it; for, as one English judge

had ruled, no one could be sure of what was actually

going on “through these hidden veins of the earth.”

As applied to oil production, the rule of capture meant

that the various surface owners atop a common pool

could take all the oil they could get, even if they

disproportionately drained the pool or reduced the

output of nearby wells and neighboring producers.

Inevitably, therefore, the owners of adjacent wells were

in heated competition to produce as much as they

could as swiftly as possible, to avoid having the pool

drained by another (Definition from The Prize by Daniel

Yergin, 1991, p. 32).

This article is a summary of the informationcontained in the Alberta Oil and Gas Tenurepublication prepared by the Alberta Departmentof Energy.The complete document is available at:http://www.energy.gov.ab.ca/ten/docs/ABR_2002_ tenure.pdf

For additional information on Tenure, please seealso: http://www.energy.gov.ab.ca/com/Tenure/default.htm

Schedule 2 of the Petroleum and Natural GasTenure Regulations can be found at:ht tp : / /www.energy.gov.ab .ca/com/Room/Industry+Room/Industry+Updates/Information+B u l l e t i n s / M i n e r a l s / M i n e r a l / 2 0 0 1 - 0 1+Appendix+2.htm.

Earning Entitlement (sections)For Validating and Grouping Wells

Drilled on P & NG LicencesWell Depth (metres) Plains Northern Foothills

Min. Depth (150m) 3 5 8

600 3 6 9

900 4 7 10

1200 5 8 11

1500 6 9 12

1800 7 10 13

2100 8 11 14

Table 1. Examples of earning entitlement (sections) forvalidating and grouping wells drilled on P&NG licences.



44

A

FORMER PRESIDENT DIGBY MCLAREN HONOURED WITH NEW MEDALBY STAN FINNEY AND GODFREY NOWLAN

During the Opening Ceremony of the 32ndInternational Geological Congress, held inFlorence, Italy, August 20-28, 2004, theInternational Commission on Stratigraphymade its first-ever presentation of the DigbyMcLaren Medal. This Medal was establishedto recognize a geoscientist who hasproduced a significant body of internationallyimportant contributions to stratigraphy overa number of years. It is essentially a careerachievement award, recognizing anoutstanding career with numerous importantaccomplishments. At the Congress inFlorence, the award was presented to Dr. JanHardenbol for his fruitful career offundamental research in calibrating andunderstanding the sedimentary record of theMesozoic and Cenozoic history of the Earth.

The Medal is named in honor of Canadiangeologist Digby McLaren. While a scientistwith the Geological Survey of Canada, hechaired from 1968 to 1972 the Silurian-Devonian boundary working group of theInternational Union of Geological SciencesCommission on Stratigraphy. Under Dr.McLaren’s leadership, this group developedthe “golden spike” concept of a GlobalStratotype Section and Point (GSSP) indefining the Silurian/Devonian boundary.From 1972 to 1976, Dr. McLaren chaired theInternational Commission on Stratigraphy,and under his leadership the procedures andstandards used to define inter- and intra-systemic boundaries were developed andformalized. In addition, the Commission onStratigraphy set up subcommissions in everygeological system and working groups forevery boundary between systems. Theprimary, on-going goal of the International

Commission on Stratigraphy is to defineGSSPs for the 90 stage-level boundaries ofthe Geologic Time Scale. More than 50 havebeen defined with Dr. McLaren beingresponsible for the first. In addition, DigbyMcLaren was a founder and later chairman ofthe International Geological CorrelationProgramme (IGCP), sponsored by IUGS andUNESCO. In the early 1980s, he served onthe Advisory Committee on Science andTechnology in Society to the DirectorGeneral of UNESCO. In 1987, McLaren waselected the 101st President of the RoyalSociety of Canada, and was largelyresponsible for revitalizing and expanding itsrole and scope. In particular, he successfullycreated a firm foundation for the CanadianGlobal Change Programme. McLaren is theauthor of over 100 publications and maps inthe fields of paleontology, biostratigraphy andregional geology. Of particular note, he wasone of the earliest proponents of the theoryof mass extinctions caused by catastrophicmeteorite impact, linking these ideas firmly todisconformities in the fossil record (1969Presidential Address to the PaleontologicalSociety of America). McLaren has the raredistinction of being both a Fellow of theRoyal Society (London) and a ForeignAssociate of the U.S. National Academy ofSciences, and has had a distinguished servicerecord as President of the PaleontologicalSociety, the Alberta Society of PetroleumGeologists, and the Geological Society of

America. His contributions have earned himnumerous accolades and honours. Hereceived Canada’s highest civilian honour, asan officer of the Order of Canada, in 1987.By naming the career achievement medalafter Digby McLaren, the InternationalCommission on Stratigraphy honours notonly Dr. McLaren but also the many hundredsof stratigraphers past and present who havecontributed to the scientific mission of theInternational Commission on Stratigraphyand its various Subcommittees and WorkingGroups.

Jan Hardenbol, now with Global SequenceStratigraphy Inc., in Houston, Texas,was recognized for several majoraccomplishments, especially during his thirtyyears (1964-1994) with Exxon ProductionResearch, initially in Bordeaux, then inHouston. He was the leading stratigrapher inthe development and calibration of sequencestratigraphy and a guiding force inchronostratigraphy, especially for thePaleogene System. In addition to being seniorauthor of the immensely valuable integrated-stratigraphy charts for the Mesozoic andCenozoic (published in 1998) that built on hisearlier global sea-level compilations withExxon, Dr. Hardenbol continues to be anactive leader in development of high-resolution time scales, in the understandingof global sequences, and in interpretingsedimentary facies patterns.

Digby McLaren (2nd from right) with, from left to right, Jim Ogg – Secretary General of ICS, Stan Finney – Vice Chairof ICS, Jan Hardenbol – recipient of the Digby McLaren Medal, Felix Gradstein – Chair of ICS, and Nicol Morton –Chair of the ICS Stratigraphic Prize committee and Chair of the Jurassic Subcommission.

Digby McLaren (right) with Felix Gradstein (left), Chairof ICS, and Jan Hardenbol, first recipient of the DigbyMcLaren Medal.


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The Canadian Society of PetroleumGeologists, in partnership with the CanadianSociety for Unconventional Gas (CSUG),TheSociety for Organic Petrology (TSOP), and TheCanadian Society for Coal and OrganicPetrology (CSCOP) invite you to join us forthe 2005 Gussow Geoscience Conference.The CSPG is pleased and honoured todedicate this “Banff Conference” style two-dayconference series to William C.Gussow, a pastpresident and Honorary Member of the CSPGwho has distinguished himself, his society, andhis country through his pioneering work ingeology. The conference is sponsored by theGeological Survey of Canada (MarqueeSponsor) and Burlington Resources (KeynoteSponsor).

Following last year’s successful inauguralconference, the 2nd annual GussowGeoscience Conference will focus on thegeological aspects of coalbed methanereservoirs. This exciting conference will beheld at the Radisson Hotel, nestled in thebeautiful Rocky Mountain setting of Canmore,Alberta. This is an ideal intimate setting fordiscussing issues and innovations surroundingcoalbed methane reservoirs with invitedspeakers and peers from industry.

The conference will open on March 9 with anoptional core workshop on Coal cores:examination for source rock and reservoirproperties in CSG exploration at the AEUBCore Research Centre in Calgary. PresentersDrs. David Marchioni (of Petro-Logic Services)and Judith Potter (of JP Petrographics) willexamine the macroscopic features of coal, coalrank, and compositional factors controllingthem, and the implications for exploration andproduction of natural gas from coal.

The plenary session will begin on Thursdaywith a keynote address by Dr. Dale Leckie ofNexen Energy, followed by two engagingsessions: Geological Controls of CBM, andPetrographic and Geochemical Aspects ofCBM. The day will close with a dinner andkeynote address by Mr.Andrew Scott of AltudaEnergy Corporation.Two sessions will be heldon Friday,Technical Aspects of CBM from the Labto the Field and CBM Case Studies from Aroundthe World, as well as a luncheon keynoteaddress by Dr.Marc Bustin of the University ofBritish Columbia and CBM Solutions.

Don’t delay…register for this exciting event byJanuary 31st and take advantage of the early-bird registration rates. To register for theconference, please see our website athttp://www.cspg.org/gussow_conference.html.

46

Here is a sampling of the range of topics covered by our 21 invited speakers…

KEYNOTE SPEAKERS:Dale A. Leckie, Nexen Inc., Calgary, AB, Canada

Sequence Stratigraphic Setting and the Accommodation Space of Coal Accumulations

R. Marc Bustin, Department of Earth & Ocean Sciences,The University of British Columbia,Vancouver, BC, Canada

Factors Influencing the Reservoir Capacity of Coal and Gas Shale

Andrew Scott, Altuda Energy Corporation, San Antonio,TX, USAHow to Explore for Coalbed Methane in Frontier Regions with Limited Data:

Overview of a Coalbed Methane Exploration Model

SESSION SPEAKERS:Andrew Beaton, Alberta Geological Survey Charles R. Nelson, University of North Dakota EERCJ. Sebastian Bell, Sigma H Consultants Ltd. Chad Hartman, TICORA Geosciences, Inc.Rusty Riese, BP Peter J. Crosdale, Energy Resources Consulting Pty Ltd.Romeo Flores, U.S. Geological Survey Charles E. Barker, U.S. Geological SurveyJudith Potter, JP Petrographics Mohinudeen Faiz, CSIRO PetroleumGareth Chalmers, University of British Columbia Greg Bell, Coal Gas Technology Co.R. Marc Bustin, The University of British Columbia Thomas Gentzis, CDX CanadaPrasanta Mukhopadhyay, Nova Scotia Shane Harrison, SH Consulting

Department of Energy Steve Tedesco, Dorado Gas ResourcesMaria Masterlez, Indiana University H.A. von Schoenfeldt, CDX Gas

For a complete list of speakers and topics, please refer to our website.

Coalbed Methane: Back to Basics of Coal Geology

Early Bird Registration closes January 31Registration closes March 4

2005 Gussow Geoscience Conference March 9-11, 2005



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