LAW REVIEW a special publication on business law by the calgary herald www.calgaryherald.com/business/lawreview NOVEMBER, 2012 ‘Don’t hamstring energy deals with demands on China’

by brian burton

he Canadian government should use caution and a modicum of Thistorical perspective before demanding strict reciprocity from China in foreign investment, oil and gas law- yers say. It’s worth making the point with the Chinese government about equal access to markets, they say, but big energy deals in Calgary shouldn’t be hamstrung by direct linkages to spe- cific Canadian efforts to buy into com- panies in China. “It’s harder (for us) to make invest- ments there than it is (for them) to make investments here,” concedes Peter Glossop, a competition and antitrust specialist with Osler Hoskin Harcourt. But Glossop says Canadians need of only look back to Power the National Energy Peter Glossop Program of 1980 to recall a time when Canada sought to control foreign attorney ownership in its oil industry. Calgary litigator, Now, as Canada promotes foreign investment to ac- mother of four, spouse celerate enormous energy develop- Frank Turner ments in this and university instructor country, and as state-owned enterprises (SOEs) in China have responded with more than — you can have it all, $30 billion worth of energy investment in the past four years, Glossop suggests says Maureen Killoran, we should cut China some slack on the principle of equal access to their economy. managing partner for “In a perfect world, everybody would be perfectly reciprocal,” he says. But attempting to use access to Ca- Osler Hoskin Harcourt nadian energy as a lever to open up the Chinese economy to Canadian invest- ment might be expecting too much of a country going through rapid change, he INTERVIEW BY BRIAN BURTON • PHOTOS BY WIL ANDRUSCHAK warns. “I think it’s better, on balance, to have capital coming into this country than not.” Litigator, Calgary managing partner well, if I’m going to practice law, it and, again, wasn’t entirely sure yers in town. That’s the most mean- Osler colleague Frank Turner agrees for Osler Hoskin Harcourt, winner doesn’t mean I have to do it in the that I wanted to be on the corpo- ingful thing to me. that huge inbound energy investments of a Women in Law leadership award traditional way. I don’t have to be rate side of litigation. I started I remember when my kids were could be needlessly complicated by from the Association of Women Law- with a big , Bay Street firm. off doing quite a bit of medical little, somebody asked them what horse trading on unrelated Canadian yers; mother of four and university If you’d asked me, in first year, I malpractice defence when I was a their mom did for a living and they investments in China. instructor: Maureen Killoran never probably thought I would do some- lawyer at Bennett Jones. And, once said, “She goes to an office and she Turner is a Calgary-based merg- started out to be a downtown, power thing a little left of centre and some- again, the reason I turned to that yells at people on the telephone.” ers and acquisitions (M&A) expert attorney for one of the biggest law thing more human rights oriented. was because I found the material (Laughs) And some days it feels like and he and Glossop have worked on firms in Canada. Killoran says it all I worked with LEAF (the Women’s interesting, the interaction with that. (Laughs) But most days it’s several mega deals in which the Chi- came from taking a flexible approach Legal Education and Action Fund) people interesting. And after a pretty civilized. nese have acquired energy assets in to finding out what she was good at and one of our professors was really short period of time, I found it not Canada. — and a rather more rigid approach involved in the Bosnia Herzegovina so interesting. You’re now managing partner for a “It’s well recognized by both indus- to setting priorities. war crimes trial, so I did some work You dealt with people whose lives big, corporate law firm. How did that try and government that we need bil- with her on that. had really been compromised by happen? lions and billions of dollars to develop When and how did you decide you And then I summered at a law firm some awful event. Sometimes chil- I have no idea. (Laughs) I missed our resources and Canadian capital were going to become a lawyer? and was shocked at how much I liked dren. And, to be perfectly frank, when a meeting, I think. It certainly wasn’t markets just aren’t big enough,” I did my degree in English and his- the actual practice of it. So I went you do energy law, as I do, or corpo- anything I aspired to be. But I think, Turner says. “There are only a very tory at Queens and I knew I didn’t want from thinking I was going to be a rate litigation, you’re not dealing with when your partners ask you to fulfill small number of capital pools that to be a teacher. I wasn’t really quite sure left-of-centre human rights lawyer to life and death situations and people the role, it’s one that you ought to step are big enough to do these deals” and what I wanted to do and I was resisting being at a Bay Street firm. whose lives have been turned upside up and fulfill. And we’d had someone Chinese SOEs are an important part of my parents’ advice. As two people who down, plaintiffs who are weeping. It’s in the position for eight years, Tris that picture. grew up in the Depression, they told all What was it that appealed to you just about money. (Tristram) Mallett, and he’d done a Glossop adds that there is also a limit four of their kids to get a professional about corporate law? It’s about being creative. Some- fantastic job. to the amount of investment exposure degree, doctor, lawyer, engineer, and It’s the problem solving, I think. It’s all times, finding a solution that At Osler, the firm feels very multinational oil companies want to you’re set for life. about trying to find the business answer everybody will buy into, that’s a strongly that you ought to continue have in any one country and companies So after my degree I actually worked for your client, with the help of the law. moderate compromise, is the way to practice while you manage such as Exxon and Shell may well be for a couple of years and then ulti- I think I was really encouraged to see to go. — and I feel very strongly that I near those limits with the investments mately decided to apply to law school. how 99.9 per cent of the time, your gut And sometimes it’s adversarial don’t want to give up my practice. they’ve already made and proposed in The reason it took me so long is, I ac- feeling was actually the right answer and it’s aggressive. I think I pride I want to do 100 per cent of it and Canada. tually didn’t think it was going to be my and that the courts give you case law myself on working really hard I do. If a great file comes in, I’m The obvious and eager alternative is thing. And I was so pleasantly surprised that’s really based on common sense. for my clients and taking the hard going to do it. I really love my prac- Asian SOEs. in law school by how much I liked it. stand. But never in such a way that tice. I love litigating and I’m not Turner says Canada also badly needs You’re a litigator. That’s a very win- my credibility is compromised … going to give any of it up. to diversify and expand markets for its That’s a big jump to take when you’re or-lose kind of thing. What attracted because that’s what I have to offer increasing oilsands output. of two minds. you to litigation? my clients — my reputation with Yeah, I guess it was. I thought, I took kind of a circuitous route the judges and with the other law- See KIDS, Page 2 See EXPORTS, Page 2

eyeing the ENERGY LAW SOCIAL MEDIA, PROFILES INSIDE: arctic for PROGRAM CROSSES THE GOOD OF CALGARY resources BORDERS AND THE cautious LAWYERS

P 4 P 6 P 6 3, 5, 7 2 CALGARY LAW REVIEW

KIDS, from page 1 observation are such that they say, “Wow. You volunteered at my kindergarten classes.” Sometimes I think I couldn’t have done it in How many kids do you have? another city. I mean, in Calgary, you can hop Four. All boys. (Arran, 23; Fraser, 21; Josh, in your car and in 10 minutes flat I was at their 14; and Liam, 13.) preschool, at the hockey arenas and soccer arenas. And I think, if I were in Toronto, it just So, you’ve got the managing partner gig, would have been an awful lot tougher to do it. you’ve got a full case load, a very full home life, obviously, and you teach at U of C. As managing partner, have you been able to do I probably will this year. The first year I think I anything that makes a difference for women? missed was last year — that’s 2012. So I’ll be on I’m thinking of that in light of your award for the schedule again in 2013. I generally try to do Women in Law (2011). the intensive trial advocacy courses. That’s in- You know, naturally as you sort of ascend structing trial lawyers in town on trial skills. And through the ranks of a law firm, you tend to then they have a similar one at the University identify more with the women who come to of Calgary. The third-year class is put through a work for you. And I think all of us who’ve one-week intensive program. I usually instructed reached a level of seniority tend to take a spe- that. The other one I do is at the University of cial interest in the women beneath us, to say, Notre Dame in South Bend, Ind. I try to do that “You can have it all.” And when I say that, I once a year, which is another trial advocacy in- really mean you can do it without sacrificing tensive training course. your priorities. You can be a great parent. You can be a great spouse. You probably have to How did you come to teach at an American have a great spouse. (Laughs) Like I do. He university? (Ray Daniels, senior vice-president, opera- — Calgary Herald Archive I met Jim Seckinger, a professor at Notre tions, Enerplus) and I made a commitment The Chinese National Offshore Oil Corp.’s bid to buy Calgary oil producer Nexen Inc. is just one of the Dame Law School, while I was teaching trial to each other that we are raising these kids moves by China to invest in Canadian resources. skills at the University of Calgary about five together and they’re our priority. years ago. He has a great intensive trial skills Sometimes stuff hits the fan and we pull out our EXPORTS, from page 1 involving Chinese SOEs, as Where major deals with course that he offers his students twice per Blackberries and say, “Whose day is more impor- well as a friendly takeover of a SOEs are concerned, Hoskins year. It’s taught by trial lawyers from all over tant and who can cancel things?” You have to have failing Canadian oil company says, “a mirror image analy- the States — lots of hard-nosed Chicago liti- an equal partner at home, but you can do it. Currently, Canada sells its oil by a Chinese state-owned en- sis of reciprocity is probably gators. He invites me down to ND to instruct and gas exports exclusively to terprise. not the best way of looking at annually. Jim is especially tickled to compare On at least one occasion, you’ve been to the the United States but pipeline Norton Rose is currently things. the U.S. trial lawyers with their Canadian London Court of International Arbitration. constraints and rising tight-oil establishing a Canada Desk “China is an enormous counterparts. As you might expect, Canadians Whose rules do you play by there? production in the U.S. have in China to support Chinese country with enormous issues are much more polite — but equally effective. Usually you’ll find, especially in oil and gas caused sharp discounts on investment here and a China and undergoing enormous contracts, the contract will (specify) the London prices paid for Canadian oil. Desk in Canada to assist Ca- changes. To think that Canada There are lots of women graduating law schools, Court of International Arbitration. But more The Canadian Imperial Bank nadian companies seeking is going to push them (on in- but if you look at senior partners, not so many. often than not, I’m still dealing with law. of Commerce has estimated Chinese investment or needing vestment policy) is likely fal- We’re still losing women. It’s a difficult is- So, we’re seen as a jurisdiction with so much Canadian producers will take legal support for investments lacious.” sue, especially as a woman who … who beat experience in energy and in oil and gas contracts an $18-billion hit on prices this in China. Hoskins suggests it’s better those odds. And if you ask me how, I’m not and operations, that you’ll find, internationally, year alone and Turner says the This effort is backed by to engage with China on energy sure I could give you an answer. Other than, parties are okay with choosing Alberta law. alternative is to develop Asian senior partner and former Ca- investments than to wait until I really loved what I did in the day. I think it markets. nadian prime minister Brian its market and legal reforms are makes me a better parent. Chinese M&A (mergers and acquisitions) in But that will require major Mulroney, who recently visited completed to Western standards town — have you acted on any of those? pipeline projects to carry oil to Beijing and Shanghai with because Canada’s energy oppor- You’ve got to explain that! Lot’s of them. Usually, I will be asked to take a West Coast shipping terminals. senior Norton Rose colleagues tunity is now. Not better than other parents. Just better than I look at an arbitration clause in one of the agree- Natural gas also badly needs a to help raise the firm’s profile “File-by-file reciprocity may would be, otherwise. For me, it’s the right choice. I ments or take a look at some of the litigation that West Coast outlet to Asian mar- there. be like throwing the baby out have a lot of energy — and I’m probably attention may be exposed in the due diligence process. kets — and that means Canada Norton Rose partner and with the bath water and we deficit. I need tons of stimulation and I’m not good We have acted for many of those in-bound needs still more foreign invest- Calgary-based M&A specialist could forego a lot of investment at taking things slow. I go home — and it’s been investments. We were on the transaction where ment in pipelines and massive Craig Hoskins says Mulroney’s without speeding change.” But this way ever since my boys arrived — and I am we sold ConocoPhillips’ interest in Syncrude. liquefaction plants. status as a former head of gov- he adds that now is likely a good energized and completely focused on making the ($4.5 billion sale to Sinopec.) “The Chinese believe they un- ernment is a major door opener time to make the Chinese aware most of every moment I have with them. And I’ve derstand the (investment) rules throughout Asia. that Canada is keeping score on done what I’ve done by being, not just organized There’s been recent speculation that’s there’s here,” Turner says, and it would He says that, while huge reciprocity. with my time, but absolutely rigid when it comes a great deal of foreign M&A going on behind be a potential setback for Canada energy deals involving SOEs Turner and Hoskins decline to my priorities. the scenes besides the Nexen deal that’s cur- if demands for mathematical grab the headlines, a “wave” to comment on whether either Actions speak louder than words. So, for rently getting all the press. Is that accurate? reciprocity changed that. of more modest, “normal of their firms was among those me, when I’m home with my kids I’m interact- Yes. There have been stories that there’s a Much has been made of course” M&A investments is warned by the Canadian Secu- ing and I play a big role in their lives — and whole bunch of activity out there and I would China’s $30-billion buy into taking shape as private capital rity Intelligence Service (CSIS) they in mine. And it wasn’t always easy. certainly say that that’s our view, as well. And Canadian energy, but Glos- from mainland China seeks about systematic hacking efforts Especially when they’re little and they’re say- this Nexen deal is a pretty important one, right? sop says Chinese investment investment opportunities in based in China and aimed at ing, “How come you don’t stay home, like Depending on how the government decides, it’s shouldn’t be seen as aggressive Canadian energy. seven Canadian law firms. But my friend’s mom does?” But the two young- really going to set the tone for our market and or threatening. At the same time, Canadian Hoskins dismisses hacking as a est guys are now 13 and 14. Their powers of what’s going to happen in the next few years. He notes it’s small compared oilsands producers are ap- “red herring” where investment with Chinese investments in proaching Norton Rose seeking is concerned. Australia and Russia and minute Chinese partners for projects. “Canada needs to engage compared with the $300 million Where they can, he says, en- with the world and it will annual investment made by U.S. ergy companies are dodging encounter a whole myriad of companies in Canada. the volatility of stock markets risks,” he says. The Calgary office of global and turning to private capital “You manage those risks. You law firm Norton Rose has also for more patient investment in don’t eliminate them by closing acted in major joint ventures energy joint ventures. off investment.” China’s thirst for oil unquenchable

There’s a reason China’s China’s vehicle fleet is the government seeks to maintain state-owned oil companies are world’s second largest, growing domestic economic growth rapidly becoming some of the 20-fold in the decade ending in and, thereby, it’s own political biggest clients of Calgary’s top 2010 and now totalling 78 mil- legitimacy. law firms. lion units. It’s also the world’s The same logic applies to It’s because, in some ways, largest vehicle manufacturer, Canadian natural gas reserves the two vast countries are mir- producing 18.4 million units — but with two added incen- ror opposites of each other. Put in 2011. By 2050, the Chinese tives for Chinese investment. simply, each has what the other fleet is predicted to surpass 500 Gas is the lowest-carbon fossil lacks. million vehicles, easily making fuel in an increasingly carbon- Canada has the world’s it the largest in the world. constrained world. second-largest oil reserves, at Every day, China produces And North American natural 170 billion barrels — and the about four million barrels of gas prices, depressed by a con- largest reserves open to foreign oil and consumes about 10 mil- tinental glut, are running about investment. (Saudi reserves and lion. By 2017, Chinese daily one-tenth of the price natural production are state owned, as consumption is forecast to reach gas commands in Asia. are those of many other major 12 million barrels per day, push- Producing gas in Alberta and exporters.) Canada also has a ing imports to nine million bpd British Columbia, pipelining it very small population and cor- as domestic deliveries decline. to the West Coast and liquefying — Wil Andruschak photo Osler Hoskin Harcourt managing partner and litigator Maureen Killoran at her firm’s offices respondingly smallish capital And by 2050, consumption is it for shipment to China would located in Calgary’s TransCanada Tower. formation capacity from which expected to reach 20 million produce a huge and ongoing to fund identified opportunities barrels per day, most of it com- savings in energy costs on for some $200 billon worth of ing from offshore. whatever reserves China might energy projects. And Canada Seen in this light, it’s not hard acquire. is learning that it needs export to understand why Chinese In the process, China would CALGARY LAW REVIEW alternatives to the U.S. state-owned oil companies are help to fund development of Conversely, China is the Calgary Law Review is a special publication of the Calgary Herald willing to spend a few billion more than $100 billion worth world’s second-largest and dollars out of China’s $3 tril- of proposed projects in the oil- Special Projects Manager/Editor: Barb Livingstone, 403-235-7339, fastest-growing oil importer lion in depreciating foreign sands and a somewhat smaller [email protected] and its emergence as an eco- exchange reserves to buy oil number of proposed liquefied nomic powerhouse has given sands assets that are likely to natural gas projects in Alberta Co-ordinator: Jennifer Worley it immense cash reserves with appreciate in value. Fees paid to and B.C. Each deal would re- which to buy oil and gas proper- Calgary law firms, running into quire armies of construction ties, projects or entire energy millions of dollars, are simply workers — and smaller armies companies. inconsequential as the Chinese of Calgary lawyers. CALGARY LAW REVIEW 3

PROFILE: PAT Maguire, bennett jones

Pat Maguire is a partner at Bennett Jones, where practise. My area of specialty is in com- he serves as co-head of the corporate depart- mercial transactions, which is not overly ment. A member of the firm’s energy practice bound by procedural rules, and provides group. Maguire acts for energy companies on room for a great degree of creativity. a broad range of commercial transactions, in Canada and internationally. Q: What’s the best part of your job? Born in the U.S., Maguire grew up in the town A: I am lucky to work at Bennett Jones with of Millet, Alta. He obtained his law degree from some very smart, engaged people. These the University of Alberta and articled at Bennett are some of the best lawyers in the field and Jones in Calgary in 1991, where he worked until they are leaders in the community. It is a 1996 before moving on to Nexen. While at Nexen, fantastic environment to be in. It challenges Maguire took on a variety of international as- me every day and is really rewarding. signments, including spending a couple of years in Yemen. Q: What’s the most challenging part of Because he particularly enjoyed the interna- your job? tional environment and wanted to expand his A: Time management is definitely the understanding of the business world, Maguire biggest challenge. It’s not uncommon headed back to university to do an MBA at Cam- to have clients asking for more of your bridge University in 2000. He wrote his thesis time than you have to give. I occasionally while living in the south of France, and travelled over-commit, based on the time I have the world before rejoining Bennett Jones in 2001. available. “The job is increasingly international,” notes Maguire, 46. “Our firm has offices in China and Q: What makes a good lawyer? in the Middle East, and that provides me with A: The right balance of brains, technical ex- great opportunities, as I have always been inter- pertise, business sense and personal skills. nationally focused. Most recently, Bennett Jones has been acting in connection with a lot of Asian Q: Whom do you admire? investment into Canada.” A: Nelson Mandela. His ability to always see there is a path forward into the future Q: How would you describe yourself? that will be better than where we’re at A: There are different kinds of lawyers. today, has been awe-inspiring. On a pro- Some are great technical practitioners, fessional level, a senior regulatory lawyer and some are very business oriented. I at Bennett Jones who mentored me in the would describe myself as being a balance early years, taught me how to be a good of the best of those. I want to get the deal lawyer, a good business adviser and a done, but I want to get it done right. good partner.

Q: What was your first job? Q: What are you most passionate about? A: My first job was as a maintenance A: Family, friends, my colleagues and my person for the County of Wetaskiwin. It clients. Within the day, each of them will incented me greatly to go to law school. have priority. My first legal job was at Bennett Jones, where I articled in 1991. Q: What does a great day off look like for you? Q: What attracted you to your area of A: Spending time with the family, skiing, specialization? golfing, and in the evening, a good bottle A: The economics in Alberta are re- of red wine and a nice meal. ally based on the energy industry, and it seemed to be the obvious place for me to — Jacqueline Louie

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— Calgary Herald Archive Greenland is being eyed by countries around the world for the rich resources that lay beneath the barren island, which is a quarter the size of the U.S. Climate change brings Arctic resources closer by brian burton on Arctic and maritime law with Nor- like Canadian law, which gives each the area above the Arctic Archipelago. claim to extend its territory in a way ton Rose, explains that Article 82 is province undivided right to its own “As oil and gas become rarer and that would project far onto the Ca- very kid knows the North Pole based on the concept that the seafloor resources, UNCLOS and ISA use rarer, 51 countries have applied for nadian side of the pole, based on the is hallowed ground, free of beyond the 200-mile limit is part of the resources as the source for revenue extensions in various areas around the huge Lomonosov Ridge having arisen Ethe grasping claims of nation “common heritage of mankind.” redistribution. world.” With that, Spicer says, the Ar- from the European continental shelf. states. Santa, after all, is a law unto Regardless of who succeeds in Nations which succeed in extend- ticle-82 sleeping giant is edging closer Canada says the ridge, some 1,800 himself, who, presumably, has scant claiming various extended tracts of ing their claims beyond 200 miles to an awakening. kilometres long and up to 200 km need for the services of lawyers and seafloor and the resources under them, will, in effect, become paid manag- The first stirrings took place during wide, arose from the North American other mortals. Article 82 specifies that the first royal- ers of subsea resources, overseeing an UNCLOS conference in Beijing, continental shelf and properly falls And, in fact, the latest map docu- ties, up to seven per cent of revenues, their development on behalf of the where Spicer attended and monitored under Canadian jurisdiction. Russia menting the territorial ambitions of will be shared “equitably” between 162 UNCLOS signatories, remitting issues important to Canada, including says it has spent $50 million research- Canada, Russia, Denmark, Norway 162 nations who are signatories to the first seven-per-cent of revenues how resource royalties will be calcu- ing its claim, while Canada has spent and the United States shows an area UNCLOS. to ISA for the “least developed” na- lated, who controls the Lomonosov $109 million on a 10-year mapping adjacent to the pole that is, at least “This article has been sort of a tions and, hopefully, retaining any Ridge under the Arctic Ocean, who project. Canada has until 2013 to sub- notionally, unclaimed. Think of it as sleeping giant and no one has made royalties beyond seven per cent. controls a section of the Beaufort Sea mit its counterclaim, but with seabed Santa Land — for now, anyway. The payments under it, so far,” Spicer says. The unanswered question, in an and how pollution management will extension disputes going on all over rest of the vast seabed between Canada But global warming is bringing Arctic extremely remote and hostile envi- be extended to the 350-nautical mile the world, there’s no telling when a rul- and Russia is more or less up for grabs, resources within reach and the U.S. ronment, is whether there will be limit. ing might be made. (Denmark has also as five nations around the pole seek Geological Survey has estimated that any room for royalties to rise beyond “We stand to be huge winners on signaled an interest in the Lomonosov legal extensions oil reserves alone could exceed 90 seven per cent. the extended continental shelf issues,” issue, based on its ownership of Green- of their territorial billion barrels or $7 trillion, at today’s Spicer describes Canada as a con- Spicer says. land.) waters beyond prices. tented signatory to UNCLOS, willing Canada and the U.S. are contesting Additionally, Spicer says the issue the established “Obviously, resource companies to abide by its terms and see first royal- control of a sliver of the Beaufort Sea of resource royalty calculations re- 200-nautical-mile should be very aware of agreements ties go to developing nations. The U.S., —about the size of Lake Ontario — quires considerable refinement, even limit. governing these extensions of seabed meanwhile, has not signed on to UN- that the National Energy Board (NEB) though most countries have signed Claims are made boundaries,” Spicer observes. CLOS. In July, 34 Republican sena- has estimated could contain some 10 on to general terms. It’s not known, to the United Na- The International Seabed Authority tors once again indicated opposition billion barrels of oil. Canada bases its for instance, whether royalties will tions Commission (ISA) — a creature of UNCLOS based to signing the Law of the Sea Treaty, claim on a straight-line extension of be calculated before or after produc- Wylie Spicer on the Limits of in Kingston, Jamaica — is charged denying the two-thirds Senate majority the Alaska/Yukon border as delineated tion companies recover the costs of the Continental with distributing royalty revenues that international treaties need for U.S. in an 1825 treaty between Russia and hugely expensive arctic development Shelf (CLCS). The commission is from extensions of seabed rights. ratification. Great Britain, while the U.S. bases projects. guided by the UN Convention on the Under Article 82, the ISA is directed Ironically, Spicer says, in the much its claim on a line drawn equidistant From recent public hearings of the Law of the Sea (UNCLOS) and in to distribute royalties, up to seven per more developed Gulf of Mexico, the from both coasts. Both countries are National Energy Board in Inuvik, particular by Article 82 of the Law of cent of production or revenues, “taking U.S. has drafted detailed regulations reviewing offshore drilling regulations Spicer says, he learned that Northern- the Sea Treaty. Article 82 allows exten- into account the interests and needs for remitting royalties to ISA in the in light of the blowout in the Gulf of ers are generally supportive of devel- sions “with respect to the exploitation of developing States, particularly the extension zone between 200 and 350 Mexico. And both have publicly sug- opment — but the ocean is a primary of the continental shelf ” — from least developed and the landlocked miles offshore. Canada, meanwhile, gested a resolution may lie in the fact food source and they want very close 200 to as much as 350 nautical miles among them.” has no corresponding royalty regula- that, beyond the 200-mile limit, the regulation to ensure that pollution will — with certain important provisos. In Canadian terms, think of it as an tions for the high Arctic or off New- American line appears to be better for be prevented. Article 82, then, is where Santa Land equalization payment, redistributing foundland. While there is some active Canada, while the Canadian line ap- “An oil spill under the sea ice would ends and the laws of men take over. a portion of the wealth from richer exploration in the extension zone off pears to be better for the U.S. be catastrophic and the NEB got that Wylie Spicer, Calgary-based expert jurisdictions to poorer ones. But, un- Newfoundland, no drillers are active in In 2001, Russia submitted a formal message, loud and clear,” he says. Law faculty distinctively ‘Calgarian’

by Jacqueline louie ing up with inflation, and so increas- wonderful blend of lawyers in private Enbridge, Precision Drilling, Total, ingly law schools at every university in practice and corporate counsel.” Chevron and others. The University of Calgary’s law fac- Canada have to turn to external sources The honorary co-chairs of the U of C “The makeup of our cabinet is re- ulty has a clear and simple goal: to be of support,” Holloway says. law school’s development campaign are ally unique amongst law schools in ‘Calgary’s law school.’ “Trying to put those two things Rick George, former Suncor CEO; and North America,” Holloway says. “To “We want our programs to be reflec- together — a need for resources, and Jim Palmer, Q.C., chairman emeritus of have such a blend of lawyers in private tive of the needs of our community. We a desire to be more reflective of our law firm Burnet, Duckworth & Palmer. practice and business executives, is want to be a central part of Calgary and community — led us to put together Senior leaders on the committee are not something that you (typically) see its future. We want our graduates to go what we call a campaign cabinet — a Brian Felesky, Q.C., managing direc- in North American law school cam- on to be leaders within the community, group of women and men who are tor of Credit Suisse Securities; Kerry paigns. We are very proud of it. It re- and we want to be a part of the profes- leaders within the legal profession in Dyte, Q.C., executive vice-president ally does say something special about sional fabric of Calgary,” says dean of Calgary. of Cenovus; and Eric Miller, vice- this city, and the level of civic pride law, Ian Holloway, Q.C. They include senior people from president of Agrium. and engagement in Calgary.” That’s why, when the U of C’s faculty law firms, but also include corporate Approximately 20 people are part of The development campaign’s objec- of law recently launched a new devel- counsel people from industry — and the campaign cabinet, which includes tive, is to raise $20 million over the opment campaign, it brought together that’s unique. One of the things that managing partners or senior partners next five years. a diverse, broadly representative group makes Calgary such a special city, of most of the major law firms in Cal- In addition to raising additional re- from Calgary’s legal community to at least from the perspective of the gary, as well as senior executives from sources, the development campaign also help reach its goal. legal profession, is the extent to which a number of corporations, including seeks to integrate the U of C’s law school — Calgary Herald Archive “The level of government support corporate counsel are involved in companies such as Nexen, Trans- more closely with Calgary’s legal and Ian Holloway, U of C’s dean of law. for legal education has not been keep- things. On our committee, we’ve got a Canada Pipelines, Talisman Energy, professional community. CALGARY LAW REVIEW 5

PROFILE: keith byblow, McCarthy Tétrault

When he was 19 years old, Keith Byblow fault, but enough to do my job well. I in, I was hooked. Reading Daniel ing parts are also what make the that you add value and are a business sold all his belongings and went to Holly- am a fairly social person. Thankfully Yergin’s The Prize really cinched job most interesting and rewarding. facilitator. What you are ultimately wood to be a rock star. my wife Carla is very outgoing, and it. I am fascinated by the industry, Staying up-to-date on industry and trying to build at the end of the day, While his dreams of Hollywood music star- I have learned from her to be a little and how this commodity is so fun- market trends, and finding innova- is trust. dom didn’t pan out, Byblow has found his more outgoing. damental to every social and eco- tive ways to deliver the service calling in oil and gas law. nomic element of our lives. at the caliber that we do is very Q: Whom do you admire? Born and raised in Calgary, with a law Q: What was your first job? demanding. Logistically, there are A: So many of my colleagues and degree from the University of Calgary (and A: A paper route and washing dishes Q: What’s the best part of your job? always competing forces on your friends. You can learn something a bachelor of music degree in jazz perfor- at a Bonanza restaurant. I was 14. I A: The people I work with, both time, given how demanding and from pretty much any person and mance from St. Francis Xavier University), don’t think there is a job that I haven’t clients and the people at McCarthy competitive the service element is. It situation if you watch for it and are Byblow is a partner in McCarthy Tétrault’s done in one capacity or another — I Tétrault. Also, I really enjoy putting makes all the difference to have a self-aware. If I had to pick only a Energy Department of Business Law like to think that keeps me grounded. deals together, particularly those that family that understands and is sup- few, I would have to say my parents, Group, with a practice that includes a wide are atypical and require you to take a portive. They make a lot of sacrifices for their tremendous work ethic and range of domestic and international trans- Q: What attracted you to your area of client’s ideas and issues, and build the behind the scenes. selflessness. actions. Byblow, 41, also counsels clients on specialization? structure from scratch. That is very structuring and negotiating international A: The first clue was my interest rewarding. That, and the fact that the Q: What makes a good lawyer? Q: What are you most passionate joint ventures and partnerships for the ac- in property and oil and gas law challenges in this profession are con- A: Of course, the highest level of about? quisition, exploration and development of courses in law school. Once I ar- stantly changing. competence substantively. What A: My kids. I am most passionate oil and gas assets abroad. ticled and realized I did not want to sets you apart, is your approach to about providing them with opportu- be a litigator or a securities lawyer, Q: What’s the most challenging part service and how your expertise is nity and seeing them be happy. Q: How would you describe yourself? I joined our oil and gas group as of your job? delivered. You need to listen and A: Cliché Type A, hopefully not to a an associate — and once I was A: Substantively, the most challeng- hear what your clients are saying so — Jacqueline Louie

You talk. We listen. A relentless focus on client success is at the heart of our firm. Business achievement begins with the right team, asking the right questions. Our team integrates legal expertise, industry insight, and legal project management to deliver more value to our clients. We not only help clients achieve success – we make the journey better.

mccarthy.ca McCarthy Tétrault LLP 6 CALGARY LAW REVIEW Calgary, Houston connect for dual degree program

by JACQUELINE LOUIE concurrently: a bachelor of applied simulation of arguments done before science degree in chemical engineer- the International Court of Justice. The of C law student Barrett ing, with an option in management student teams participating in the com- Schitka has had a whirlwind science, and a bachelor of arts degree petition represent fictional countries Uof a semester so far. He’s in Spanish. involved in an international dispute, in Houston, enrolled in the Interna- Another draw for Schitka, was and present and argue their case in tional Energy Lawyers Program — a Waterloo’s co-operative education front of a panel of judges. new joint degree program offered program, which allows students to Schitka is also a member of the edi- by the University of Calgary and the spend every four months alternating torial boards of two student-published University of Houston which allows between a study term and a work term. journals: the Alberta Law Review, law students at the U of C and the Over the five years that Schitka spent and the Houston Journal of Health University of Houston Law Center on his engineering degree, he received Law and Policy. “We put out journals to earn Canadian and American law a year-and-a-half of industry work throughout the year. We do everything degrees in four years. Students will experience, doing everything from from article selection to copy editing spend two years at each institution, waste water treatment and research and to note writing — every element of and at the end of the program will development, to engineering simula- the publication process,” he explains. be able to apply for admission to bar tion software. During his first term, he The journals, which go into law librar- associations in both the U.S. and worked as a research assistant at the ies around the world, feature articles Canada. National University of Engineering written by law faculty and legal schol- “That’s a flagship program that in Lima, Peru, and in his third year he ars nation-wide. we developed in partnership with worked for a Sarnia, Ont. petrochemi- Through the joint degree program, the University of Houston, reflec- cal company that was renegotiating Schitka is gaining an understand- tive of the Houston-Calgary axis, some of its service agreements. As a ing of the U.S. and other countries which is really the backbone of the co-op student, Schitka went through “on a more fundamental level. You North American energy industry,” contracts and production data, and start to understand why the U.S. has says Ian Holloway, dean of the U of participated in some of the negotia- evolved the way it has, why laws C’s faculty of law. tions and strategy processes that were have evolved the way they have, and Schitka, who was admitted to going on. how decisions made 100 years ago the program in July and moved to “That’s when I started to see that have an impact today,” he says. “You Houston in August, is the program’s maybe there was a way to put the two start to see things on both sides of the first and — so far only — student. together — law and engineering. The border that you may not have seen “There are a few other dual degree more I looked into things, spoke with before. Both countries have the same programs in Canada. What’s unique people and did research, I knew that English common law roots, but it’s about this program, is its focus on that was what I wanted to do, and I seeing things from a slightly differ- energy and natural resources law,” never looked back.” ent angle.” he says. Schitka returned to Calgary in 2011 After he graduates from law school, Born and raised in Calgary, Schitka, to attend law school, where the draw- Schitka would like to develop an 24, has always had an interest in law. ing factor was the U of C’s energy and energy practice. “I’m not quite sure A student in the International Bac- natural resources focus. Since his ac- yet whether it will be a transactional- calaureate program at St. Mary’s High ceptance into the International Energy based practice or a litigation-based School in Calgary, he enjoyed debat- Lawyers Program, he has continued to practice — there are elements of ing, and was a competitive athlete for pack his schedule. both that I very much enjoy,” he says. many years. Among other things, Schitka was “My intention is to have some sort of At the same time, he is also very selected to participate in the Philip C. international flavour to it, whether it strong in math and the sciences, and Jessup International Law Moot Court be domestic clients with international opted to study chemical engineering, Competition, the largest, and one of the interests, or international clients. — Courtesy Jessica Franklin, UHLC choosing the best program he could most prestigious moot court competi- Hopefully one day as I continue to de- University of Calgary law student Barrett Schitka is the first student in the International find: at the University of Waterloo, tions in the world. In the case of the velop, grow, work and learn, I’ll be at Energy Lawyers program, a new joint degree program between the U of C and the Uni- where he obtained two degrees Jessup competition, moot court is a the forefront of that sort of industry.” versity of Houston.

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PROFILE: DALE SPACKMAN, PARLEE McLAWS

Dale Spackman, Q.C., is a partner at working through complicated cor- learn and problem solve and I find the difference in other people’s lives. of the board of directors of the Law Parlee McLaws LLP in Calgary, where he porate and commercial transactions, law gives you a really great opportu- Some of the people I admire the most, Society of Alberta for eight years — has been a lawyer for 32 years. Born and and seeing the transactions come to nity to do that in a practical setting. are those closest to me. For example, my and lots of other stuff. raised in Calgary, Spackman, 58, is a third- a satisfactory conclusion. My ex- wife Cathy, because she has all of the generation southern Albertan. He and his pertise in aviation law, which is the Q: What’s the most challenging part qualities that I admire in people. She is a Q: What are you most passionate wife have two grown children. main area of my practice now, really of your job? professional accountant, she is the CFO about? came out about as a consequence of A: Juggling the competing demands of a large public corporation and she A: My family would come first, and Q: How would you describe your- circumstance. One of the first clients of clients and keeping them all happy. always spends an enormous amount of secondly the law. I am also passion- self? I had obtained as a young lawyer was The other very challenging part of time helping the community. ate about sports, especially hockey A: I’m a people person. I try to do the a commercial air service company. the job is keeping up on the law in my and football. And I am passionate right thing and work hard. I really enjoyed that work and de- areas of specialization because it’s Q: What type of volunteering do about children. That’s why I got so veloped a lot of relationships in that continually evolving. you do? involved in coaching and minor soc- Q: What was your first job? industry, and it just grew from there. A: I started doing things like coach- cer. I am a real believer in team sports A: As a Calgary Herald delivery boy, My other main area of specialization Q: What makes a good lawyer? ing sports teams and refereeing — that it’s one of the most important when I was about 15. I had one of the is banking law. A: In no particular order of impor- sports when in high school and things a child can participate in, to largest paper routes in Calgary. tance: intelligence, common sense, carried that through into my profes- help them in their adult life. Q: What’s the best part of your job? excellent communication skills, sional career. I’ve done everything Q: What attracted you to your area of A: The interaction I have with clients, integrity, courtesy, humility and ex- from being a Boy Scout leader and Q: What does a great day off look specialization? and the satisfaction I get from help- tremely hard work. coaching my kids’ sports teams and like for you? A: Early on, I wanted to focus my ing them with their legal needs. Add other sports teams to coaching and A: Spending time with my family, es- practice on solicitor’s work — corpo- to that the intellectual challenges and Q: Whom do you admire? serving on the board of directors of pecially at our cabin at Pigeon Lake. rate and commercial law. I took a lot the opportunity to continually gain A: I admire anyone who is hardwork- the Calgary Minor Soccer Associa- of satisfaction in advising clients and new knowledge and skills. I love to ing, genuine and makes a positive tion for eight years. I was a member — Jacqueline Louie 8 CALGARY LAW REVIEW Social media: good, bad and ... cautious

by barbara balfour

fter months agonizing over whether he should delete his AFacebook profile, Sander Duncanson was pleasantly surprised when, on his first day as a summer student at a law firm, he was given instructions on how to set up his own LinkedIn account. It was 2009, a time when profiles on Facebook and other social media were as ubiquitous as they were potentially incriminating. “I always thought social media would be discouraged because of certain things in your personal life that law firms didn’t want you broadcast- ing to the world,” says the 29-year-old associate at Osler, Hoskin & Harcourt. “Instead, the marketing manager said, ‘Here are the basics you should have — now get out there and use them. “‘This will be the most important tool you have to develop your personal brand as you go through your career.’”

The use of social media to grow a firm’s reputation, share legal resources, and pro- — Wil Andruschak photo vide instant updates is only one example Claire Stilwell, a lawyer at Norton Rose specializing in technology and innovation, says Google and Facebook are no substitute for researching law or staying in touch with of how much and how quickly technology clients. Textbook research and face-to-face time with clients are still critical. has changed lawyers’ approach to their practice. Yet as younger lawyers are more relationships are often maintained in a or while we’re having an ongoing issue. virtual desktop anytime, anywhere, tions. Today, Hawkes will often spend likely to take for granted the accessibility virtual world. This is regardless of privacy settings says insurance defence lawyer Alex time even while on vacation fielding and speed of today’s digital world, senior “We’ve heard a lot of discussion about — they may believe they have locked it Yiu, 31. “Nearly 100 per cent of our urgent matters electronically. colleagues are reminding them that tech- what it really means to have 500 friends down or unfriended the ex-partner, but lawyers use a mobile device and nearly “With e-mail, clients expect to hear nology is not infallible. within the context of Facebook. You their information is still available through a quarter of our members use an iPad back within the hour if not within “When you’re dealing with a legal area can use Facebook to keep in touch with other people on their friends list. as a staple in their everyday usage.” minutes.” you’re not familiar with, your first re- people, but it’s no substitute for sitting “I can get a lot more information Other examples where technol- At the same time, some lawyers have sponse is to see what comes up on Google, down with a client and taking them out about the opposing party than I ever ogy comes into play include affidavit noted a general reluctance to rely on tech- but that information is not always reli- for lunch. And sometimes, you can get so used to be able to before.” records and legal cases now available nology too much. “I go to a lot of hearings, able,” says Claire Stilwell, a 20-something much more done by picking up the phone In 1998, when Tose first started prac- in digital format and even full-blown and my tendency is to put all the files I lawyer at Norton Rose who specializes in than by sending a million e-mails.” ticing, she would have never dared to trials that are run electronically in need on a USB key, take my laptop, and technology and innovation. As a way of reaching younger audi- bring a cellphone into the courtroom. “smart” courtooms, says Yiu. I’m good to go,” says Duncanson. “I was directed by a senior colleague ences and potential clients, Facebook is “Now judges expect you to have it While being connected to the office “Most senior lawyers will say, to actually take out a textbook at the start also integral in trial preparation. Family handy to look up queries for them, when outside of it physically can give ‘That’s great, but make sure you always of my research to become more familiar law attorney Lisa Tose often educates quickly use applications to access case lawyers more freedom, it can also add have a hard copy.’ It may seem exces- with this area of law. When I had that ex- her clients on the damage their online law or do child support calculations,” more pressure. sive but every once in a while comput- tra context, it made my searching much profiles can do to their case. says Tose, 40. “I couldn’t imagine “When I was just starting out, fax ers crash and I have had that happen. more efficient — I knew what was useful “It’s very commonplace for Face- going into a trial without my phone machines had become the big thing When technology fails, you still have and what wasn’t. I don’t think I would book postings to be brought into the charged and ready to go.” and lawyers were bemoaning that to be able to continue your practice. have had that approach otherwise.” trial or hearing, especially when chil- At legal firms such as Field Law, clients expected to hear back within a “The older generation has learned Stilwell also credits her older col- dren are involved,” says Tose, 40. remote access usage is encouraged day,” says Robert Hawkes, 51, a part- to practice law without that technol- leagues for stressing the importance “I always advise my clients to elimi- so lawyers are not confined to their ner at JS Barristers who specializes ogy so they still make sure they can do of face-to-face time with clients when nate Facebook altogether prior to a trial offices — they can practice using a in commercial litigation and class ac- without it.”

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