CAPLA CERTIFICATION PROGRAM EVERYTHING YOU NEED TO KNOW ABOUT THE CERTIFICATION EXAM
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1 CAPLA CERTIFICATION PROGRAM EVERYTHING YOU NEED TO KNOW ABOUT THE CERTIFICATION EXAM
2 HOW TO APPLY TO WRITE Application Forms may be obtained by downloading copies from CAPLA s website. Once you have logged into the CAPLA website using your e- mail address and password, click the Certification Program in the drop down menu under the Resources tab Then under Certification Application Forms open and download the necessary form for the exam you would like to write (Mineral, Surface, Contracts). The Certification committee will review your application looking for a combined 5 years of experience in any or all of the three disciplines before you will be approved.
3 HOW MUCH DOES IT COST TO WRITE? CAPLA has a $50.00 application fee, which is currently being waived by the Board of Directors. Once your application has been approved, the fee for writing the exam is $ GST. This fee is to be paid directly to Olds College, prior to writing. The $200 fee covers the administration costs to deliver the exam to approved applicants. There is no additional charge for up to three (3) re-writes within 24 months of the first exam sitting. You have to pay the exam fee for each exam discipline you write.
4 WHAT IS THE FORMAT OF THE EXAM? The exam is in multiple-choice format, which includes 100 questions in total. Exams are computerized The exams are split into 4 parts: Pre-Acquisition Acquisition Maintenance Relinquishment You submit your answers after completing each of the 4 sections and you receive immediate marks. You may only bring a calculator (not a phone app) and a pen/pencil into the exam. There will be blank paper available for your use, but you will not be able to take this with you at the end of the exam
5 WHAT IS THE MINIMUM MARK THAT MUST BE ACHIEVED IN ORDER TO PASS THE EXAM? A passing grade for the exam requires an overall 80% on all 4 sections. However, there is also a minimum grade of 70% on Section A (Pre-Acquisition) and a minimum 80% on all other sections This means that if you only achieve a 70% on Section A you will need to receive a higher than 80% grade on the remaining sections to reach the overall 80% for the complete exam.
6 WHAT HAPPENS IF I DON T PASS MY EXAM? The exam is structured to give the initial exam sitting and three (3) opportunities for rewrites. You are not required to rewrite any sections of the exam where you have achieved the minimum pass mark (although you may choose to in order to increase your mark) You have the lesser of 24 months from your first exam date, or 3 re-write attempts in order to successfully complete the entire exam For example - on your first attempt you wrote all 4 sections, but only passed 1 section. On your first re-write you could attempt the all of remaining 3 sections or only 1 section, saving the other 2 sections for your next re-write attempts.
7 The exams are written at the Bow Valley College - Downtown Calgary campus WHEN AND WHERE ARE THE EXAMS OFFERED? Exams are offered four (4) times each year. Two in the spring and two in the fall, with an approximately 6 week time span between the two spring exams and fall exams. The current year s exam dates can be found on the CAPLA Website (
8 WHY SHOULD I BOTHER TO WRITE THE EXAM? These exams can be used as a benchmark to show: How well do I really understand this business I am working in? In what areas could I use additional training and/or experience? A way to set yourself apart from your peers to your current management, or to a potential employer A way to show not only knowledge based skills but also intangible skills such as self-motivation, perseverance, inquisitiveness, eagerness to learn and grow.
9 I VE DECIDED TO WRITE THE EXAM, HOW DO I START TO PREPARE? There is no specific study material. Practical working experience supplemented by knowledge gained from various relevant industry and post-secondary courses will prepare you for writing. The exam itself is also to be utilized as a learning tool to assist members in determining their strengths and weaknesses. Your results may direct you to take additional training There are also study group facilitators listed on the CAPLA website. These can be an opportunity to gather with other prospective writers as an chance to share knowledge
10 THE ROADMAPS The Roadmaps were created as a detailed list of the type of subject matter that you will be tested on: Pre-Acquisition Phase Background knowledge of applicable Business Law Acquisition - Creating new: Contractual Relationships (C) Mineral Interests (M) Surface rights (S) Maintenance Operating under existing Contracts (C) Mineral agreement maintenance (M) Surface agreement maintenance (S) Relinquishment Phase End of life cycle for Contractual Relationships (C) Mineral Interests (M) Surface rights (S)
11 PREPARATION CONTINUED Nexus articles The Nexus articles can be used as a guide to topics that could be encountered on the exam. Keep in mind that these articles represent a point in time and may not reflect the most current regulations. An online archive of all issues of the Nexus is available as a searchable tool on the CAPLA website. Government websites will be helpful such as the Alberta Crown, AER, Saskatchewan s IRIS system, BC Crown, OGC, NEB, IOGC etc.
12 SAMPLE QUESTIONS MINERAL From Phase 1 Pre-Acquisition (M.PRE-AC.RP.FE.1.2) If a person holding a life estate dies and the original grantor pre-deceased them, the estate A) will revert to the Crown B) will revert to the Crown, unless the original grantor designated someone else in their Will C) will go to the person holding the remainder interest D) will go to the person designated by the life estate holder s will
13 ANSWER From Phase 1 Pre-Acquisition C) Will go to the person holding the remainder interest
14 SAMPLE QUESTIONS MINERAL From Phase 2 - Acquisition (M.ACQ.P.CAV.1.1) What is the impact of not registering a caveat for subsequent amendments under a freehold lease agreement? A) loss of priority on title B) loss of right of first refusal rights C) loss of royalty rights D) loss of transferability
15 ANSWER From Phase 2 - Acquisition A) loss of priority on title
16 SAMPLE QUESTIONS MINERAL From Phase 3 Maintenance - Financial (M.MAINT.FIN.FH.2.2) Under a CAPL 1991 PNG Lease with a negotiated periodic payment of $ under Clause 2 Rentals, what payments are due after the end of the primary term when the lease is held by a producing well? A) $ B) $ C) Suspended well payment D) Royalties
17 ANSWER From Phase 3 Maintenance - Financial D) Royalties
18 SAMPLE QUESTIONS MINERAL From Phase 4 - Relinquishment (M.RELINQ.ARP.DTC.2.3) The Alberta Crown may grant an extension of a Section 18 notice period (Section 18(6)) if they feel the extension is warranted. Which one of the following would not qualify for an extension? A) areas of winter drilling only B) spring break-up C) caribou lands D) circumstances beyond control
19 ANSWER From Phase 4 - Relinquishment B) spring break-up
20 From Phase 1 - Pre-Acquisition Assuming the Farmout Agreement was amended by the Industry Agreement regarding Limitations, how long would Farmor have to commence action for non-payment of the Farmor royalty? SAMPLE QUESTION CONTRACTS A) 2 years B) 4 years C) 6 years D) 8 years
21 ANSWER From Phase 1 - Pre-Acquisition B) 4 Years
22 From Phase 2 - Acquisition C.ACQ.RDC.DEF.1.1 SAMPLE QUESTION A party paying the Gross Overriding Royalty in a farmout agreement is referred to as: CONTRACTS A) the Farmee B) the Farmor C) the Grantee D) the Payee
23 ANSWER From Phase 2 - Acquisition A) the Farmee
24 From Phase 3 Maintenance How long does a receiving party have to respond to an Independent Operations Notice? (1990 CAPL) A) 15 days B) 20 days SAMPLE QUESTION CONTRACTS C) 30 days D) 45 days
25 ANSWER From Phase 3 Maintenance C) 30 Days
26 From Phase 4 Relinquishment Companies E, F, G, H are parties to a JOA with Clause 2401B selected. The WI are E40%, F30%, G20% and H10%. Company E wants to sell its interest to Company F and a ROFR notice is issued. G exercises, H waives and F does not respond. SAMPLE QUESTION CONTRACTS By the strict terms of the 1990 CAPL Operating Procedures what are the resultant WI? A) F70%, G20%, H10% B) F54%, G36%, H10% C) F50%, G30%, H20% D) F30%, G60%, H10%
27 ANSWER From Phase 4 Relinquishment D) F30%, G60%, H10%
28 SAMPLE QUESTION SURFACE From Phase 1 Pre Acquisition Joint Tenancy could be defined as follows: A) Involves one person on title, with 2 or more people occupying the said lands. B) Two or more owners on title, should one of the landowners on title be deceased, the remaining landowner must forfeit the lands. C) A person whom is the sole owner of the land and has willed the lands to a family member. D) Two or more owners, but each owner has a right of survivorship.
29 ANSWER From Phase 1 Pre Acquisition D) Two or more owners, but each owner has a right of survivorship
30 SAMPLE QUESTION SURFACE From Phase 2 Acquisition To get access to land where the Lessor is not in possession of the land, you must get permission from the interested party in what form? A) Assignment B) Consent of Occupant C) Grant D) Right-of-entry Order
31 ANSWER From Phase 2 Acquisition B) Consent of Occupant
32 SAMPLE QUESTION SURFACE From Phase 3 Maintenance When is an Alberta Landowner eligible for a Rent Review? A) Every three years with the process beginning in the second year B) Every four years with the process beginning in the third year C) Every five years with the process beginning in the fifth year D) Every five years with the process beginning in the fourth year
33 ANSWER From Phase 3 Maintenance D) Every five years with the process beginning in the fourth year
34 SAMPLE QUESTION SURFACE From Phase 4 Relinquishment You have been advised that your company has not drilled the well for which a Crown Mineral Surface Lease was acquired and no entry on the land has taken place. How do you obtain cancellation of the Crown disposition on this site? A) Apply for a Reclamation Certificate from Alberta Environment B) Apply for a Certificate of Restoration from the Oil and Gas Commission C) Apply for a No Entry Cancellation from the AER D) Apply for Termination Order from the Surface Rights Board
35 ANSWER From Phase 4 Relinquishment C) Apply for a No Entry Cancellation from the AER
36 Buddy up Find a study partner or group who may have a different skill set or experience than you do. This can give you a resource for areas you may have not encountered yet in your career STUDY TIPS FROM SUCCESSFUL WRITERS Don t be discouraged if you don t pass on the first try. You are given a total of 4 tries to write the exam for a reason it s harder than you think Some people use the first writing as a gauge to test how much you already know and find out the areas where you are weak. Gives you a feel for the exam
37 QUESTIONS? CONTACT CASSANDRA ERVICK OR MELANIE BACHAND AS CO-CHAIRS OF THE CAPLA CERTIFICATION COMMITTEE
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