No, partnering via a 'fist up last down' contractual guarantee of work is not the type of partnership you seem to think. All it means is they were hired.
9.5 million litres of toxic waste spills in Northern Alberta
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No, partnering via a 'fist up last down' contractual guarantee of work is not the type of partnership you seem to think. All it means is they were hired.
It would have been stated that there was a guaranteed contract in place with a 'client' (or company, producer, entity, established concern, etc).
From a legal standpoint, the choice of words used in the published description (regardless of who published it) has extremely far reaching consequences with respect to revenues and especially liabilities.
EnCana may have deliberately used the arrangement as a PR event, but make no mistake, their lawyers (and the lawyers for the Dene and Lakota companies) would NEVER permit that language if a formal arrangement did not exist.
So, it comes down to this, Either EnCana is getting into the drilling game or the Dene/Lakota concern is getting (directly or indirectly) into the oil game
From a legal standpoint, the choice of words used in the published description (regardless of who published it) has extremely far reaching consequences with respect to revenues and especially liabilities.
EnCana may have deliberately used the arrangement as a PR event, but make no mistake, their lawyers (and the lawyers for the Dene and Lakota companies) would NEVER permit that language if a formal arrangement did not exist.
So, it comes down to this, Either EnCana is getting into the drilling game or the Dene/Lakota concern is getting (directly or indirectly) into the oil game
Why? EnCana described the agreement in very precise terms in the publication.
The Dene own a 50/50 share in two oil rigs which EnCana has contracted. The other article I linked to goes on to further explain that in way of convincing/assuring the Dene that it was a good idea to purchase a 50/50 share in two oil rigs, EnCana made an agreement with them in the form of a 'first up last down' contract. There's nothing unclear about either of these articles, or the way in which EnCana partnered with the Dene to support their venture. The contract is nothing to sniff at, but it still doesn't make them an oil company.
The Dene own a 50/50 share in two oil rigs which EnCana has contracted. The other article I linked to goes on to further explain that in way of convincing/assuring the Dene that it was a good idea to purchase a 50/50 share in two oil rigs, EnCana made an agreement with them in the form of a 'first up last down' contract. There's nothing unclear about either of these articles, or the way in which EnCana partnered with the Dene to support their venture. The contract is nothing to sniff at, but it still doesn't make them an oil company.
Whatever you like... But FYI - EnCana (and the Dene/Lakota companies) provided details they chose suitable for release... That doesn't mean that they published the arrangement in it's entirety.
Well, if you think the Dene are a secret oil company, there's not much arguing with that now is there?
Tell ya what. Next time you change cable/internet providers or get a contractor to work on your house, demand that the arrangement be structured as a JV or Partnership.
That ought to clear up the issue for ya
That ought to clear up the issue for ya
Taking a drilling contract doesn't make you an oil company.
... But apparently, it makes you partners.... What a laugh
You mentioned that your husband is in completions, right?. Ask him if all of their clients are all Joint Venture Partners on a site by site basis.
Why would I need to ask my husband?
His clients are just that, clients.
EnCana's shareholder's letter about their contract with the Dene.... (I don't know how to share a link to a Google PDF, feel free to Google it yourselves). Yep, contractors, not 'an oil company'.
"
June 18, 2002
First Nation, Metis acquire Lakota Drilling rigs; Investment, training, ownership enhance
group involvement in oilpatch economy
Calgary, June 18, 2002 - Alberta's First Nation and Metis populations today took yet another significant step in becoming
more directly involved in exploration activities related to Alberta's oil and natural gas resources.
EnCana Corporation, the largest driller in Canada, today hosted and participated in a ceremony with representatives of the
Dene Tha' First Nation, the Metis Nation of Alberta Association, and Lakota Drilling that signaled a transfer of ownership and
eventual full operatorship of three heavy duty drilling rigs.
EnCana also announced a separate agreement with Saddle Lake First Nation to contract that group's Lakota drilling rig, also
for work at EnCana sites in Alberta and northeast British Columbia.
The noontime ceremony took place during EnCana's corporate celebration and recognition of Aboriginal Awareness Week.
The significance of this event is that it is the second such commitment with Aboriginal groups, and the first involving more than
one rig . The precedent setting agreement one year ago was between Precision Drilling, four First Nations from northeast
Alberta, and EnCana's predecessor, Alberta Energy Company Ltd. Another precedent this year is a similar relationship with the
Metis Nation of Alberta . Also attending the ceremony were the Honourable Stephen Owens, Secretary of State (Western
Economic Diversification and Indian Affairs and Northern Development), Government of Canada, and Alberta's Minister of
Aboriginal Affairs and Northern Development, Honourable Pearl Calahasen.
The Dene Tha' First Nation, part of Treaty 8 region in northwest Alberta and northeast BC, has acquired two 3000-meter TSM
7000 telescopic double rigs with 800-horsepower mud pumps. The Metis Nation of Alberta Association, which has
representation throughout Alberta, is also working with another rig of the same model. Collectively, the Aboriginal groups will
eventually invest a total of $13.5 million towards the overall purchase cost of the rigs. EnCana has made a minimum four-year
drilling commitment at competitive rates to ensure that the rigs are fully engaged.
Ownership of all four rigs, currently held by Lakota Drilling, will transfer to First Nation and Metis groups under terms of the
agreements, ranging from 50 to 100 percent ownership. They will be managed by Lakota Drilling. The commercial or work
value of the transactions will total more than $30 million. The rig deals are designed to increase jobs, training and business
expertise among groups of Aboriginal people. Each rig will provide employment for approximately 25 workers, complemented by
additional spinoff business opportunities associated with serving the rig.
"EnCana fully recognizes the tremendous source of manpower potential that is available, to our Company and the industry
generally, through First Nation and Metis communities. We were pleased to pioneer the concept in Alberta last year, and we
are now very proud to be associated with the opportunities afforded to Dene Tha' and Saddle Lake First Nations and to the
Metis Nation of Alberta. This is consistent with the principle of capacity building that serves as the foundation of our Community
Investment programs and guidelines," said Randy Eresman, President of EnCana's Onshore North America Division.
Participating in the rig signing ceremony were Audrey Poitras President of the Metis Nation of Alberta Association; Chief
Stephen Didzena of the Dene Tha' First Nation; Chief Eddy Makokis, of Saddle Lake First Nation; and Elson McDougald,
president of Lakota Drilling Inc.
EnCana, with an enterprise value of approximately $30 billion, is the largest North American based independent oil and gas
company, driven to be the industry's best-in-class benchmark in production cost, per-share growth and value creation. EnCana
common shares trade on the Toronto and New York stock exchanges under the symbol ECA.
For further information please contact EnCana Corporation:
Media Contact:
**** Wilson
Vice-President, Public Affairs
"
His clients are just that, clients.
EnCana's shareholder's letter about their contract with the Dene.... (I don't know how to share a link to a Google PDF, feel free to Google it yourselves). Yep, contractors, not 'an oil company'.
"
June 18, 2002
First Nation, Metis acquire Lakota Drilling rigs; Investment, training, ownership enhance
group involvement in oilpatch economy
Calgary, June 18, 2002 - Alberta's First Nation and Metis populations today took yet another significant step in becoming
more directly involved in exploration activities related to Alberta's oil and natural gas resources.
EnCana Corporation, the largest driller in Canada, today hosted and participated in a ceremony with representatives of the
Dene Tha' First Nation, the Metis Nation of Alberta Association, and Lakota Drilling that signaled a transfer of ownership and
eventual full operatorship of three heavy duty drilling rigs.
EnCana also announced a separate agreement with Saddle Lake First Nation to contract that group's Lakota drilling rig, also
for work at EnCana sites in Alberta and northeast British Columbia.
The noontime ceremony took place during EnCana's corporate celebration and recognition of Aboriginal Awareness Week.
The significance of this event is that it is the second such commitment with Aboriginal groups, and the first involving more than
one rig . The precedent setting agreement one year ago was between Precision Drilling, four First Nations from northeast
Alberta, and EnCana's predecessor, Alberta Energy Company Ltd. Another precedent this year is a similar relationship with the
Metis Nation of Alberta . Also attending the ceremony were the Honourable Stephen Owens, Secretary of State (Western
Economic Diversification and Indian Affairs and Northern Development), Government of Canada, and Alberta's Minister of
Aboriginal Affairs and Northern Development, Honourable Pearl Calahasen.
The Dene Tha' First Nation, part of Treaty 8 region in northwest Alberta and northeast BC, has acquired two 3000-meter TSM
7000 telescopic double rigs with 800-horsepower mud pumps. The Metis Nation of Alberta Association, which has
representation throughout Alberta, is also working with another rig of the same model. Collectively, the Aboriginal groups will
eventually invest a total of $13.5 million towards the overall purchase cost of the rigs. EnCana has made a minimum four-year
drilling commitment at competitive rates to ensure that the rigs are fully engaged.
Ownership of all four rigs, currently held by Lakota Drilling, will transfer to First Nation and Metis groups under terms of the
agreements, ranging from 50 to 100 percent ownership. They will be managed by Lakota Drilling. The commercial or work
value of the transactions will total more than $30 million. The rig deals are designed to increase jobs, training and business
expertise among groups of Aboriginal people. Each rig will provide employment for approximately 25 workers, complemented by
additional spinoff business opportunities associated with serving the rig.
"EnCana fully recognizes the tremendous source of manpower potential that is available, to our Company and the industry
generally, through First Nation and Metis communities. We were pleased to pioneer the concept in Alberta last year, and we
are now very proud to be associated with the opportunities afforded to Dene Tha' and Saddle Lake First Nations and to the
Metis Nation of Alberta. This is consistent with the principle of capacity building that serves as the foundation of our Community
Investment programs and guidelines," said Randy Eresman, President of EnCana's Onshore North America Division.
Participating in the rig signing ceremony were Audrey Poitras President of the Metis Nation of Alberta Association; Chief
Stephen Didzena of the Dene Tha' First Nation; Chief Eddy Makokis, of Saddle Lake First Nation; and Elson McDougald,
president of Lakota Drilling Inc.
EnCana, with an enterprise value of approximately $30 billion, is the largest North American based independent oil and gas
company, driven to be the industry's best-in-class benchmark in production cost, per-share growth and value creation. EnCana
common shares trade on the Toronto and New York stock exchanges under the symbol ECA.
For further information please contact EnCana Corporation:
Media Contact:
**** Wilson
Vice-President, Public Affairs
"
As a limited partner in a joint venture they definitely would be getting a gross over riding royalty even if it were off Rez on Crown lands. That is the standard when the Feds fund FN business in the resource sector. It benefits the FN in the long term and it's how the Feds get their investment back on a split of the GORR.
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Cute spin.
It looks to me like Encana's public statement included the word "partnered" incidentally.
If you have a copy of that contract and it said that the Dene and Encana were partners, you'd have proof. Otherwise, Karrie's guess is as good as yours. Either way, as I said whoever owned the rigs and drilled the oil in 2002 is irrelevant to the topic. So is the "partnership". It's a fat red herring.
When it comes to business there is no sloppy English. The use of the term "joint venture" was sloppy as well I suppose? It's not spin at all Les, it's the rules of the game.
Yeah. Kind of like an electrical company being a plumbing company and vice versa simply because they both do stuff for a general contracting company. lol Funny shyte this thread. And it's still way the fµck off topic.
Yes, and then they lied to their share holders about the nature of their business dealings with the Dene. lol.
sneaky secret oil company natives.
When you were providing heavy mechanic services to your clients, were you 'partners'?.. Was it a Joint Venture?
Anything and everything to try to say that the natives ought to shut up and smile and accept whatever 'we' give them.
Yeah right. Publicity articles are always eztremely accurate. uhuh If you believe that, I have a bit of land to sell you: http://www.leelau.net/2005/sme/day4symphony/viewfromsymphonypeaksirdouglas01.jpg
Legally, there's a difference between "joint venture" and " partnership". But that's not the part I was saying was spin.
If the contract said they were partners, they were partners. If not, they weren't. Like I said, without reading the contract, Karrie's guess at what the publicity article meant is as good as yours.
Are we feeling sorry for our self here???
Nope, just summarizing petros' argument thus far throughout the thread.
Personally I would have dropped a few grand on bus tickets to where the jobs are than invest $150M to give the remote lads experience.