New Canadian Oil and Gas Disclosure Legislation, National Instrument 51-101: A Model for Other Countries?

David C. Elliott
Alberta Securities Commission, Calgary, AB

National Instrument 51-101, Standards of Disclosure for Oil and Gas Activites, came into legislative force in Canada in September 2003, and is probably the most comprehensive disclosure regime in the world. The reporting requirements include:

Form F1, Statement of Reserves Data and Other Oil and Gas Information. This prescribes the information on the evaluation of oil and gas reserves and resources that is to be disclosed. Proved and Probable reserves, at constant and forecast prices must be disclosed and Possible reserves and resources may be included. Additional information, including a reconciliation of changes over the reporting period are also required.

Form F2, Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor. This provides an opinion on the data. No reservations are allowed unless the evaluator or auditor is not able to remove them.

Form F3, Report of Management and Directors on Oil and Gas Disclosure. This establishes that the responsibiity for the quality of disclosure lies with the management and directors of a company, not with the evaluator.

The legislation was developed with considerable industry input, which included the preparation of the Canadian Oil and Gas Evaluation Handbook (COGEH). The handbook and its ongoing development, including non-conventional oil and gas, will be described.

AAPG Search and Discovery Article #90039©2005 AAPG Calgary, Alberta, June 16-19, 2005