Canadian - Standards of Disclosure for Oil and Gas Activities
International Reciprocity of Competent Persons
The Australian Stock Exchange ("ASX") introducted in 2003, a procedure for identifying "Recognised Overseas Professional Organisations" ("ROPO") as accredited organisations to which Competent Persons must belong for the purpose of preparing reports on Exploration Results, Mineral Resources and Ore Reserves for submission to the ASX, if they are not members of the recognised Australian professional bodies, AusIMM or AIG. The following are the overseas professional organisations that are now recognised by the ASX for this purpose:
Alberta Securities Commission
Mutual Reliance Review System: Acceptance of American Institute of Professional Geologists as a "professional organization" under NI 51-101.
Applicable National Instrument
National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ? section 1.1(w)(iv)B).
Citation: The American Institute of Professional Geologists, 2004 ABASC 1025 Date: 20041004
In the Matter of the Securities Legislation of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Yukon, Northwest Territories and Nunavut and
In the Matter of National Instrument 51-101
Standards of Disclosure for Oil and Gas Activities (NI 51-101) and
In the Matter of the Mutual Reliance Review System for Exemptive Relief Applications and
In the Matter of The American Institute of Professional Geologists (AIPG) and its members who are Certified Professional Geologists MRRS Decision Document
1. The local securities regulatory authority or regulator (the Decision Maker) in each of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Yukon, Northwest Territories, and Nunavut (the Jurisdictions) has received the recommendation of the Canadian Securities
Administrators staff committee responsible for NI 51-101 that the Decision Maker accept the AIPG as a "professional organization" under NI 51-101, but only for those members of AIPG who are AIPG Certified Professional Geologists in good standing (the Requested Relief).
2. Under the Mutual Reliance Review System for Exemptive Applications:
2.1 the Alberta Securities Commission is the principal regulator for this application, and
2.2 this MRRS Decision Document evidences the decision of each Decision Maker.
3. Defined terms contained in National Instrument 14-101 Definitions or in Appendix 1 of Companion Policy 51-101CP have the same meaning in this decision unless they are defined in this decision.
4. This decision is based on the following facts represented by AIPG:
4.1 the AIPG has provided copies of the AIPG?s Bylaws, Code of Ethics, and Disciplinary Procedures that establish that, for AIPG members who qualify as Certified Professional Geologists, the AIPG
4.1.1 admits members primarily on the basis of their educational qualifications;
4.1.2 requires its members to comply with the professional standards of competence and ethics prescribed by the AIPG that are relevant to the estimation, evaluation, review or audit of reserves data; and
4.1.3 has disciplinary powers, including the power to suspend or expel a member.
5. Each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the decision has been met.
6. The decision of the Decision Makers under the Legislation is that the Requested Relief is granted for so long as the AIPG continues to:
6.1 admit members as Certified Professional Geologists primarily on the basis of their educational qualifications;
6.2 require Certified Professional Geologists to comply with the professional standards of competence and ethics prescribed by the AIPG that are relevant to the estimation, evaluation, review or audit of reserves data; and
6.3 have disciplinary powers, including the power to suspend or expel a Certified Professional Geologist.
Glenda A. Campbell, Q.C., Vice-Chair
Alberta Securities Commission
James A. Millard, Q.C., Member
Alberta Securities Commission
Proposed Changes in Canadian NI 43-101—State-licensed PGs Not Recognized
The Canadian Securities Administrators (CSA) on April 8, 2011 adopted changes to National Instrument 43-101 that covers technical reports about mining properties. Some of the changes, such as the re-organization of and relaxing of the rigidity of the form of the report (NI 43-101F1) are welcome improvements. However, the proposed change in the definition of “qualified person” is causing concern to some professional organizations, particularly US state-licensed PGs and RGs. The definition of “qualified person” is being changed to make it less prescriptive and more adaptable. This requirement would relieve the CSA from having to amend NI 43-101’s list of recognized foreign professional associations every time another professional requests recognition. At the same time, the CSA has shortened its list of recognized foreign professional organizations. The proposed changes to NI 43-101 contains an Appendix A, the “Accepted Foreign Associations and Membership Designations.” (http://www.osc.gov.on.ca/en/NewsEvents_nr_20110408_csa-new-mining-rule.htm. When converted to a PDF file (40 MB in size), the revised Appendix A of recognized foreign professional associations is on page 46.) The CSA’s proposal is designed to bring greater consistency in the assessment of those organizations and their membership grades that are deemed appropriate for recognition as “qualified persons.”
AIPG CPGs are listed in Appendix A, as do licensed or certified professional engineers from a US state. Licensed or registered geologists by US states are conspicuously absent. Those of you and your colleagues who are relying on a US state-issued Professional or Registered Geologist license for their credential for “qualified person” status should apply for AIPG certification.
On October 19, 2001 the Canadian Securities Administrators (CSA) issued a notice accepting AIPG certification as meeting the professional association membership criteria for a Qualified Person as defined in National Instrument 43-101, the new Canadian rules for reporting mineral resources and ore reserves. Acceptance of AIPG certification resolves a major uncertainty for U.S. economic geologists involved in mineral resource and reserve estimation. Item 2.1 of Staff Notice 43-302, Frequently Asked Questions about National Instrument 43-101 (NI43-101), specifically addresses the issue of how an individual can meet the "professional association" requirement of the "Qualified Person" definition and includes AIPG CPGs in a list of accepted organizations and groups.
NI 43-101 was developed in response to the 1997 Bre-X scandal and represents a new standard for reporting mineral resources and reserves in Canada that has world-wide impact. Among other requirements, all reports containing estimates of mineral resources and reserves must be prepared or under the supervision of a Qualified Person, who, by being named as such, accepts personal liability for the professional quality of the report and underlying work. A Qualified Person must have at least five years of experience including appropriate experience in the minerals being reported on and must be a member of a "professional association." The requirement that the professional association "has been given authority or recognition by statute" created uncertainty about which non-Canadian organizations would qualify. The CSA Staff Notice resolves the uncertainty.
Economic geologists should read the other parts of CSA Staff Notice 43-302, which was issued as a 17-page PDF file. Although available through various CSA member websites, finding the Staff Notice is difficult. Therefore a copy has been posted on AIPG's web site.
AIPG's contacts with the Canadian Council of Professional Geoscientists (CCPG) and the support of the CCPG in identifying AIPG as acceptable professional association helped in this important recognition of AIPG certification. This is one example of something AIPG has done for an important segment of its membership.
Updated October 4, 2004
This notice updates and replaces the information in CSA Staff Notice 51-309 originally dated January 19, 2004, and updated June 8, 2004.
In January 20041, we added the following professional boards to the list of professional organizations accepted for the purposes of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101).
On June 8, 20042, we added the American Association of Petroleum Geologists (AAPG) to that list.
On October 4, 20043, we added to that list the American Institute of Professional Geologists (AIPG), but only for the AIPG?s Certified Professional Geologists.
Accompanying this notice is an updated list of all accepted professional organizations under NI 51-101.
NI 51-101 requires reporting issuers to appoint one or more qualified reserves evaluators or reserves auditors to report to its board of directors on its reserves data (section 3.2). To be "qualified", a reserves evaluator or reserves auditor must possess appropriate professional qualifications and experience and be a member in good standing of a "professional organization" (subsections 1.1(x) and (y)).
The definition of "professional organization" in subsection 1.1(w) has four elements:
(w) "professional organization" means a self-regulatory organization of engineers, geologists, other geoscientists or other professionals whose professional practice includes reserves evaluations or reserves audits, that:
(i) admits members primarily on the basis of their educational qualifications;
(ii) requires its members to comply with the professional standards of competence and ethics prescribed by the organization that are relevant to the estimation, evaluation, review or audit of reserves data;
(iii) has disciplinary powers, including the power to suspend or expel a member; and (iv) is either:
A. given authority or recognition by statute in a Canadian jurisdiction; or
B. accepted for this purpose by the securities regulatory authority or the regulator.
CSA staff reviewed relevant documentation concerning the professional organizations, authority and recognition, membership requirements and disciplinary powers. We concluded that acceptance of the professional organizations would not be contrary to the public interest and would facilitate compliance with NI 51-101 by enabling reporting issuers active in the United States to continue the traditional, and acceptable, practice of engaging US professionals whose qualifications are consistent with the objectives of NI 51-101.
Acceptance of Professional Organizations does not Supersede Other Requirements
Membership in one of the accepted professional organizations does not automatically mean that a person is a "qualified reserves evaluator" or "qualified reserves auditor" under NI 51-101. To be qualified under NI 51-101, the person must also have the requisite professional experience to carry out reserves evaluations or reserves audits in accordance with the requirements of NI 51-101 and the standards of the Canadian Oil and Gas Evaluation Handbook.
The CSA's acceptance of the professional organizations under NI 51-101 is only for the purposes of NI 51-101. NI 51-101 does not supersede or alter local regulations or requirements regarding professional membership, practice or proficiency.
MRRS Decision Document dated January 6, 2004 In the Matter of ... National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101) ... and ...[the professional boards named in this CSA notice].
MRRS Decision Document dated June 8, 2004 In the Matter of ... National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101) ... and ...the American Association of Petroleum Geologists (AAPG).
MRRS Decision Document dated October 4, 2004 In the Matter of ... National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101) ... and ...the American Institute of Professional Geologists (AIPG).
Please refer questions to:
Senior Legal Counsel
Alberta Securities Commission
Phone: (403) 297-7274
Fax: (403) 297-6156
The Canadian Council of Professional Geoscientists (CCPG) is the national organization in Canada for provincial and territorial associations having the legislated authority to register geoscientists and the American Institute of Professional Geologists (AIPG) is a national professional organization in the United States of America which certifies professional geologists.
CCPG and AIPG recognize that their objectives with respect to the professional practice of the geological sciences are similar and further recognize the importance of cooperation as the practice of the geological sciences transcends national borders.
In recognition of these common interests, CCPG and AIPG enter into this Cooperation Agreement.
Under this Agreement, CCPG and AIPG agree to:
Canadian Council of Professional Geoscientists (CCPG)
American Institute of Professional Geologists (AIPG)
October 2, 2001
Basic Stipulation: A Certified Professional Geologist (CPG) in good standing with the AIPG may request certification in the Division of Professional Affairs (DPA). Reciprocal certification will be granted if the applicant meets all requirements as set out in the Bylaws of the DPA.
AAPG will confirm your status in the appropriate organization. If there are other specific requirements called for by the Board of Certification, these must be satisfied before approval of the application.