Open AccessProduction Revenues and the Insolvent Operator
Author(s) -
W. Grant Buchan-Terrell
Publication year - 1985
Publication title -
alberta law review
Language(s) - English
Resource type - Journals
eISSN - 1925-8356
pISSN - 0002-4821
DOI - 10.29173/alr741
Subject(s) - insolvency , bankruptcy , operator (biology) , principal (computer security) , equity (law) , revenue , economics , law and economics , business , computer science , law , accounting , finance , computer security , political science , biochemistry , chemistry , repressor , transcription factor , gene
This paper analyzes the problems a non-operator may suffer in attempting to recover from a receiver or a trustee in bankruptcy monies received by, or paid to. an insolvent operator of an oil and gas project. The contractual relationships which give rise to the issues are reviewed with particular reference to the 1981 Canadian Association of Petroleum Landmen Operating Procedure. An overview of the remedies available to the non-operator in these circumstances is presented, with the principal emphasis upon tracing in equity and at common law. From the uncertainly and shortcomings of these remedies emanates a consideration of new measures to protect the non-operator's position.