Issues resulting from separation of production and facilities interests

Traditionally, Canadian oil and gas producers have had full control over the exploration, production, marketing, processing and transportation aspects of their business. The disadvantages and recent changes to this traditional structure were discussed. It was shown how the deregulation of gas markets and prices in the 1980s led to some major changes in the industry. The separation of production interests from the processing and gathering facilities required a new focus by both producers and owners of the facilities. The concerns of both sides (i.e. producers and processors) were outlined. The importance of the Petroleum Joint Venture Agreement (PJVA) in defining obligations in plant expansion and development, and the jurisdictional issues over gathering and processing were described