The Society of Petroleum Evaluation Engineers

Headnote

National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions -- Acceptance as a professional organization under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities -- An entity wishes to be accepted as a "professional organization" under section 1.1(w)(iv)(B) of NI 51-101 -- The entity admits members primarily on the basis of their educational qualifications; the entity requires its members to comply with professional standards of competence and ethics relevant to the estimation, evaluation, review or audit of reserves data; the entity has disciplinary powers, including the power to suspend or expel a member.

Applicable National Instrument

National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities, s. 1.1(w)(iv)(B).

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,

MANITOBA, ONTARIO, QUÉBEC,

NEW BRUNSWICK, NOVA SCOTIA,

NEWFOUNDLAND AND LABRADOR,

PRINCE EDWARD ISLAND, YUKON,

NORTHWEST TERRITORIES AND NUNAVUT

(the Jurisdictions)

AND

IN THE MATTER OF

THE PROCESS FOR EXEMPTIVE RELIEF

APPLICATIONS IN MULTIPLE JURISDICTIONS

AND

IN THE MATTER OF

THE SOCIETY OF PETROLEUM EVALUATION ENGINEERS

(the Filer)

AND ITS MEMBERS WHO ARE MEMBERS,

HONORARY LIFE MEMBERS AND LIFE MEMBERS

DECISION

Background

The securities regulatory authority or regulator in each of the Jurisdictions (the Decision Maker) has received an application from the Filer for a decision under the securities legislation of the Jurisdictions (the Legislation) that it be accepted as a "professional organization" under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101). In addition, the Decision Maker has received the recommendation of the Canadian Securities Administrators staff committee responsible for NI 51-101 that the Decision Maker accept the Filer as a "professional organization" under NI 51-101, but only for those individuals who are Members, Honorary Life Members and Life Members of the Filer (the Recommended Decision).

Under the Process for Exemptive Relief Applications in Multiple Jurisdictions (for a coordinated review application):

(a) the Alberta Securities Commission is the principal regulator for this application; and

(b) this decision is the decision of the principal regulator and evidences the decision of each other Decision Maker.

Interpretation

Terms defined in National Instrument 14-101 Definitions or NI 51-101 have the same meaning in this decision unless otherwise defined herein.

Representations

This decision is based on the following facts represented by the Filer:

1. The Filer's head office is located in Houston, Texas.

2. Of all the jurisdictions in Canada, the Filer has the most significant connection with Alberta.

3. The Filer is a self-regulatory organization of engineers, geologists and other geo-scientists whose practice includes reserves evaluations.

4. With respect to its members who qualify as Members, Honorary Life Members and Life Members, the Filer:

(a) admits members primarily on the basis of their educational qualifications;

(b) requires its members to comply with the professional standards of competence and ethics prescribed by the Filer that are relevant to the estimation, evaluation, review or audit of reserves data; and

(c) has disciplinary powers, including the power to suspend or expel a member.

Decision

Each of the Decision Makers is satisfied that the decision meets the test set out in the Legislation for the Decision Maker to make the decision.

The decision of the Decision Makers under the Legislation is that the Recommended Decision is made, and the acceptance so granted will continue for so long as the representations herein remain true.