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By Kevin O?Callaghan

Applying Legal Concepts - The Crown must consult, and where necessary accommodate, when: - Crown has knowledge, real or constructive, of the potential existence of Aboriginal rights or title and contemplates conduct that might adversely affect it - Duty to consult is triggered at a low threshold - How much consultation necessary? - Proportional to the strength of claim and potential impact - Spectrum: notice to direct involvement in decision making - Not duty to agree or to get consent (no veto) - Reciprocal: Duty requires good faith and sincere engagement on both sides Role of Proponents: Crown may delegate procedural aspects of its legal duty

May 1, 2010

By R. Llewellyn

"Wear damage is responsible for very high maintenance costs and significant production losses in the oil sands industry of northern Alberta.It affects all areas of operations and involves a panoply of wear mechanisms from low stress sliding abrasion at extremely frigid temperatures during winter mining, to elevated temperature erosion/corrosion in processes where bitumen is converted to lighter hydrocarbon products.There is no universal panacea to defend against such diverse attack and a wide selection of resistant materials and systems is employed. These range from relatively soft rubbers which rely on their elastic properties for their protective capability, to some of the hardest ceramics and cermets which are currently available commercially.Details are presented of the characteristics and forms of the variety of wear materials being used and how they relate to the requirements of their areas of application. The review focuses on the practices followed at Syncrude Canada Ltd., which is the larger of the two commercial oil sands plants."

Jan 1, 1997

By T. R. Kostecki, K. V. Jessu

"Roof bolts are subjected to axial stresses, shear stresses, or both. Axial and shear stresses were compared between roof bolts machined with two and three slots. Shear stresses perpendicular to and at an angle to the shear planes were evaluated by analyzing a three-slot instrumented roof bolt, performing laboratory tests on two- and three-slot roof bolts, and conducting in-situ test analyses. Threeslot bolts appear to provide a complete bending strain profile, requiring no prior knowledge of the estimated shear-plane orientation. Minimum displacements occur in roof bolts installed perpendicular to rather than at an angle to the shear planes.RÉSUMÉ Les boulons d’ancrage dans le toit d’une mine sont sujets à des contraintes axiales, des contraintes de cisaillement ou les deux. On a comparé les contraintes axiales et de cisaillement de boulons d’ancrage usinés avec deux ou trois fentes. Les contraintes de cisaillement perpendiculaires et à angle aux plans de cisaillement ont été évaluées en analysant un boulon d’ancrage de toit à trois fentes, en effectuant des essais en laboratoire sur des boulons d’ancrage de toit à deux et à trois fentes et en effectuant des analyses de tests in situ. Les boulons à trois fentes semblent fournir un profil complet de résistance aux contraintes de flexion, sans avoir besoin de connaître l’orientation estimée du plan de cisaillement. Des déplacements minimums ont lieu dans les boulons d’ancrage de toit installés perpendiculairement, plutôt qu’à un angle, aux plans de cisaillement."

Jan 1, 2016

By H. B. Farnam

"THE IRON ORE Company of Canada has been using do-it-yourself type explosives for three years. During the last 12 months we have used over 10 million pounds of ammonium nitrate-fuel oil explosives and either purchased or formulated one million pounds of slurried explosives.W e have been moving approximately one million cubic yards of stripping and ore per month and we expect our production rate to in-crease. Eighty per cent of our strip-ping and ore is soft enough to be blasted successfully with ammonium nitrate-fuel oil mixtures. Twenty per cent of our material is extremely hard and requires an explosive having greater strength than an AN-fuel oil mixture.W e had been using canned am-monium nitrate base explosives and TNT pellets to give maximum bottom loading density to fracture hard rock. As AN -fuel oil became widely used, it was apparent that other types of explosives could be formulated to fit our blasting requirements. Dr. M. A. Cook of the University of Utah was consulted regarding new explosives and together we developed the blasting slurries.Figure 1 shows a general view of one of our hard rock pits. The foot wall is on the right-hand side and this material is called iron forma-Figure 1.-General view of hard rock pitstion by our Company but is called 'Taconite by the operators on the Mesabi Range. This material runs 35 to 45 per cent iron and many pieces are hard enough to scratch glass. The formation is tilted at an angle of 55 degrees as can be seen in Figure 3.The bedding planes of this rock are about 24 to 36 inches apart and if the material is not well broken or fragmented, large chunks or slabs must be handled by the shovels which reduces shovel capacity and efficiency and increases maintenance costs."

Jan 1, 1960

By Michael Li, Arie Moerman

"Paste backfill as a means of supporting underground mining is gaining popularity. Despite this trend, engineering and design of mine paste backfill systems are still largely based on empirical methods rather than established scientific principles. Because of a lack of sound understanding of mineral paste flow, some degree of trial and error is often involved during commissioning and operating of new paste fill systems. New operations often have to be built with flexibilities and contingencies, escalating the overall project costs.Disciplines that can lend some science to mineral paste flow include slurry transport, fresh concrete rheology, and soil mechanics. This paper reviews the applicability of some scientific and engineering principles found in those related disciplines to mineral paste flows. Examples are given to illustrate important points. The phenomenon of mineral paste flow is examined from new perspectives. Gaps in our understanding of mineral paste rheology are identified and from those some future research directions naturally emerge. Status and problems of the current engineering and design practice are also briefly discussed.INTRODUCTIONPaste backfill as a means of supporting underground mining is gaining popularity. Despite this trend, engineering and design of paste fill production and distribution systems today are still largely based on empirical methods rather than established science. One of the weaknesses of such empirical methods is the lack of scalability and transferability of rheological data from pre-engineering test phases to production phases. It is not uncommon that flow fiction data generated from expensive loop pumping tests turn out to be uncharacteristic of the paste in fullscale production. In such a case the operators have to re-climb the learning curve, sometimes with expensive disruptions to the mining operation."

Jan 1, 2002

By Dale L. Pitt

Introduction In opening up a new country, one of the most vital problems is that of transportation Without roads, railways, or water routes, development is very slow because these are the arteries through which the life-blood of the country flows. British Columbia is unusually fortunate in having along its western coast, for some 600 miles, a stretch of inside water unequalled, for comfortable and safe navigation, by any other similar stretch of ocean in the world. This solves in a general way the major north and south transportation problem for the coast section, and offers comparatively cheap rates for the shipping of all commodities. The principal cities and centres of distribution will naturally grow up on the coast. These cities, however, must have methods of communication with the hinterland, and it is the necessity of supplying these, as feeders to the principal ports, which presents problems of considerable magnitude.

Jan 1, 1930

By Euler De Souza

"Underground operation ventilation energy requirements constitute a significant portion of mine energy consumption (40–50%) and total energy costs (25–40%). In general, mine ventilation systems are energy inefficient; the author has found several systems that operate at efficiencies below 65%. This paper presents how engineering design principles can improve the performance and efficiency of ventilation appliances, resulting in reduced power consumption and operating costs. Case studies demonstrate that, by retrofitting ventilation appliances using proper engineering concepts, systems will operate at efficiencies well above common operating efficiencies, resulting in a drastic reduction in costs and base electrical and energy loads.RÉSUMÉ Les besoins énergétiques nécessaires à l’aérage d’une exploitation souterraine représentent une part considérable de la consommation d’énergie d’une mine (de 40 à 50 %) ainsi que des coûts totaux liés à l’énergie (de 25 à 40 %). De manière générale, les systèmes d’aérage d’une mine sont loin d’être écoénergétiques ; l’auteur a trouvé plusieurs systèmes fonctionnant à des rendements inférieurs à 65 %. Cet article présente les principes de conception technique qui peuvent améliorer la performance et l’efficacité des systèmes d’aérage, entraînant une réduction de la consommation d’électricité et des coûts d’exploitation. Des études de cas montrent qu’en les rénovant à l’aide de concepts techniques adéquats, les systèmes d’aérage fonctionneront à des rendements bien supérieurs aux rendements habituels d’une exploitation. Ces rénovations donneront lieu à une réduction considérable des coûts ainsi que des charges électriques et énergétiques de base.INTRODUCTIONIncreasing electricity supply problems in North America have encouraged an industry-wide evaluation of energy consumption, resulting in a more urgent emphasis on energy-efficient design and operation for all energy-consuming systems. Electricity is the main mode of energy supply and the mining industry is affected by the increasing cost of this commodity (Natural Resources Canada, 2017). Ventilation systems normally operate 24 hours per day, 365 days per year, and account for 25–40% of the total energy costs and 40–50% of the electrical consumption of a mine operation (De Souza, 2013). Ventilation engineers are under ever-increasing pressure to reduce ventilation energy consumption and be cost effective."

Jan 1, 2018

By C. Pelley, S. Kelebek, T. Katsabanis, B. Nanthakumar

"As part of a larger investigation on generation of fines from mining activities and their effect on downstream operations, ore samples from Onaping area stockpiles of Falconbridge Ltd were studied. Batch flotation tests were conducted on the stockpile samples and fresh ore samples to explore the effect of stockpiling on grade-recovery performance. Head grade and particle size distribution of the samples from stockpiles were adjusted so that the samples compared are similar to each other. In additional tests, fresh ore samples were blended with stockpile samples at various percentages, representing 27.4, 50.2 and 81.5% of stockpile samples.The samples from stockpiles produced inferior nickel grade-recovery curves compared to fresh ore. The poorer grade-recovery performance was attributable to two factors. First, a significant dilution effect was observed due to the nearly complete flotation of pyrrhotite. Secondly, while pyrrhotite from stockpiled ore became highly floatable, the same stockpiling conditions caused nickel losses that were attributable to non-floatability of some pentlandite.In the case of blending, there was generally insignificant difference in the nickel grade-recovery between fresh and blended samples when the blending cases involved 27.4 and 50.2% stockpile samples. However, an increase in pyrrhotite recovery was observed for both blending cases. At 81.5% blending case, degraded grade-recovery was significant primarily due to the nearly complete flotation of pyrrhotite. There was a small, but noticeable amount of nickel loss for this case. However, for lower ratios of blending this loss was negligible.The increase in pyrrhotite recovery was partly attributed to its activation by Cu and Ni ions. Formation of a significant amount of elemental sulphur was also apparent from analysis of stockpiled samples. It can be concluded that pyrrhotite is mildly oxidized under stockpiling conditions while part of the pentlandite undergoes a more severe oxidation."

Jan 1, 2006

By Randolph R. Dreher, Michael L. Schreder

"In recent years, FFE Minerals has designed, installed and commissioned several large grinding mill circuits. This paper discusses the issues related to the erection and commissioning of large grinding mill circuits. The three circuits discussed are Collahuasi in Chile, Minera Los Pelambres in Chile, and Century Zinc in Australia. These circuits include large SAG and ball mills with both gear and gearless drive arrangements, as well as, both trunnion and shell supported mills. Aspects of these features are discussed with respect to their impact on installation and commissioning. While the normal challenges of mill erection and start-up were experienced, there were also a few unexpected challenges encountered partly due to the large scale of the equipment. An overview of the equipment and design ratings of these circuits is also provided.COLLAHUASIOverviewThe Collahuasi mills were started-up in November of 1998. The site is located in the Andes Mountains at an elevation of 4300 meters. The grinding circuit includes two lines featuring one SAG mill and one ball mill for each line. The circuit features a recycle conveyor around the SAG mills with provision for adding a pebble crusher in the future. The design tonnage of the grinding plant is 60,000 MTPD with an ore BWI of 10.5 kWh/MT.The SAG mills are 32’ x 15’ (1 3’ EGL) with 10,800 HP drives. The drive arrangements are dual pinion through pneumatic clutches. The mills are driven by low speed synchronous motors with CCV variable speed drives. The SAG mills are trunnion supported and use hydrostatic lubrication. Feed to the SAG mills is via a rock-box type feed chute on a cart. The mills discharge on to trommel screens with a bucket wheel to remove the oversize.The ball mills are 22’ x 36.5’ (36’ EGL) with 12,500 HP drives. The drive arrangements are dual pinion through pneumatic clutches. The fixed speed mills are driven by low speed synchronous motors with GE Quadramatic load sharing drives. The ball mills are shell-supported and feature multi-pad bearings with hydrodynamic lubrication. The mills are fed via a rubber lined sump box with feed spout on a cart. The ball mills also discharge on to trommel screens. Twenty-six inch (26”) diameter hydrocyclones are in closed circuit with the ball mills."

Jan 1, 2001

By N. Coli

The exhausted Santa Barbara open pit mine (Tuscany, Italy), owned by the main electric power company in Italy (ENEL S.p.A,) extracted lignite as a fuel for the Santa Barbara thermoelectric power plant. The mining activity led to the excavation of a wide slope (with maximum height of 200 m and a planar extension of about 1300 m x 500 m) in the Shale Limestone Chaotic Complex (SLCC) (Figure 1). Since the beginning of its excavation the slope underwent rotational landslides and diffuse instability phenomena. From a geotechnical point of view the SLCC represents a typical bimrock (block-in-matrix rock) (Medley 1994, Medley 2002, Medley 2007) characterized by a mixture of a highly sheared, scaly-fabric, clayey matrix and calcareous blocks ranging from a few millimetres to tens of metres in size. Since the geometrical properties of blocks (grain-size distribution, shape, orientation and volumetric proportion) have been proved to influence the mechanical behaviour of bimrocks (Lindquist & Goodman 1994, Goodman & Ahlgren 2000, Kim et al. 2004, Sonmez et al. 2006), the aim of the present study is to investigate the geometrical properties of calcareous blocks in order to properly characterize the mechanical behaviour of the SLCC bimrock and to further assess the stability of the slope. Block size-distribution and shape were investigated by means of advanced image analysis techniques of SLCC pictures taken in the field. Geostatistical semivariograms and variographic maps were also used in order to investigate the anisotropy of block spatial distribution. Finally, in-situ large sized sieving tests were carried out to investigate the volumetric block proportion within the clayey matrix.

May 1, 2009

By W. P. Campbell

Foreword At the outset, it should be stated that this paper does not pretend to present a panacea for the ills that 'frozen' wells are heir to, but rather is an attempt to bring to the attention of those whose special concern it is, a little theory and some facts, which have been brought to light recently, in connection with the problem of 'freezing' as it applies to naphtha-producing wells in the Turner Valley field, and to draw some conclusions that follow from the facts discovered. It should also be stated that the investigation is not to be regarded as in any sense complete, but in progress. Doubtless new facts will be brought to light from time to time which may modify present ideas on the subject, but whether favourable or contrary, these will be welcomed, as the purpose of the Department is to secure as complete information as possible of the factors contributing to 'freezing', since this must be the first step to an intelligent attempt to remedy or prevent its occurrence, if such can be done. It is possible, too, that the cause or causes of freezing may not be the same in all cases, but whether this be so or not will have to be determined later as new information comes to hand. Introduction One of the worries which must constantly confront the operators of gas-naphtha producing wells in Turner Valley-although all, fortunately, have not met with it-is the possibility of the occurrence of what is commonly called 'freezing' (going off production).

Jan 1, 1930

By E. De Souza

The instrumentation and monitoring of rock behaviour have played an important and necessary role in the practice of potash, rocksalt, gypsum, trona and coal mining. The art of rock instrumentation applied to soft rock and coal mining has progressively evolved over the past years and will surely continue to advance at a faster pace in the future as a result of the technological revolution we experience today. The development of sophisticated mine-wide data communications systems is being used for instrumentation and sensor automation, and laser, sonar and geophysics technology are being continuously adapted for rock monitoring purposes. In this paper, the author provides an overview of typical rock instrumentation used today and offers some views of the progressive evolution in rock mechanics instrumentation sophistication and design.

Jan 1, 1998

By L. Gonzalez-Sardi, W. McCombe, M. Pearson

Pressure oxidation is increasingly being used for processing refractory sulphide ores and concentrates because it offers highly effective base metal and precious metal extraction while minimizing elemental sulphur, arsenic & mercury emissions. Yet pressure oxidation processes introduce new safety concerns and process risks as demonstrated by a number of safety incidents over the last 20 years, including overfilling, oxygen-metal fires, nozzle/sparger failures, and uncontrolled pressure relief events. Chemical Process Safety regulations in the United States and Canada mandate that companies constructing or operating chemical process facilities perform a rigorous hazard and risk analysis based on either ANSI/ISA-84.00.01 or IEC 61511 safety standards to determine the level of protection required for each hazard in the plant. This paper describes the application and implementation of three (3) unique safety instrumented systems developed by Hatch for ensuring the safe operation of three different pressure oxidation processes.

Jan 1, 2014

By Marc Piard

In a cool mine, tapping high-pressure lines through reducing valves lowers the temperature beyond remedy. It is the writer's suggestion that, for low-pressure work, law-pressure air ,should be generated in a compressor installed underground adjacent to the work, and that the jacket-water of the compressor should be utilised for re-heating purposes. Such a system of compressed air distribution, designed especially for service in cool mines, is described in the following notes. The suggested system includes a three-wire pole line from the sub-station to the opening nearest to the working face, with a cable connection extending to the latter from the openings; an electrical centrifugal unit; a reservoir excavated in the ground; and a distribution line, re-heated by jacket-water. As regards the reservoir, it may be pointed out that in many mines there are blind or abandoned tunnels that could be used for the purpose. The centrifugal type of compressed air machine is a comparatively new departure, and it was formerly considered that such a machine, operating at less than 1,000 kilowatts per unit, would be commercially impracticable. At the present time, however, these machines are being built in Europe for as little as 400 kilowatts per unit, and as much as 110 lb. per sq. inch pressure. One advantage which these centrifugal machines have over other types is that they may be driven by plain induction motors, without the help of special starters-a consideration of the first importance where the electrical regulations are severe.

Jan 1, 1926

OVERVIEW OF PRESENTATION ? What is LMI ? Who uses LMI and how? ? Value of LMI to the Mining Industry ? Mining Industry Workforce Information Network (MIWIN) ? The Challenge: Forecasting the future in uncertain times ? Results: Hiring requirements in the next decade ? Results: Occupational information ? Next steps

May 1, 2009

By William C. Browning

An economic drilling programme is one which costs the !east in chemicals, equipment, and time. The basis for such a programme with rotary drilling techniques is a drilling fluid in which bentonites do not swell. This is recognized in the growing trend toward gyp and other inhibited mud systems. Therefore, even though the mechanism of thinner action is a subject of applied colloid ,chemistry, the understanding of this mechanism is of economic importance in controlling the flow properties of inhibited muds. In phosphate, or sodium tannate, conditioned muds that are relative-!y free of contaminating-electrolytes, the thinner, or dispersing agent, is adsor.bed, ?creating an electrical double layer about the clay particles. The mutual repulsion of these charged particles effects colloidal stabilization, or deflocculation of the suspended clays, as discussed by Norton and others. In inhibited muds, however, the electrolyte concentration in the filtrate is sufficient to collapse the double layer and flocculation of the mud solids occurs, as evidenced by increased viscosity and gel values. Chemicals to control the flow properties of inhibited muds, therefore, are vital to the successful use of these systems as it is not always economical to adjust flow properties by watering back. Flocculation of suspended particles, as indicated in the work of Vervey, Overbeek, and others, is due primarily to gravity-like, long-range Van der Waals forces. Prevention of flocculation may, therefore, be secured by the interposition of any barrier between the particles, the thickness of which approximates the extension of the Van der Waals at-traction. Organic polyelectrolytes, such as Kembreak, Rayf!o, and Q-Broxin, may act to increase the double layer charge when used in small amounts in fresh-water muds. More important, however, is the fact that in inhibited muds an increase in concentration of the polyelecholyte permits the formation of a condensed film adsorption layer of the polyelectrolyte about the clay particle. When this occurs, the extremely viscous condensed adsorption layer creates a mechanical. barrier that prevents flocculation of clays, even in the presence of inhibiting concentrations of elecholytes. Rheological evaluation of the degree of deflocculation, or colloidal stability, may be made by utilizing the known effects of particle inter-action and volume concentration on the flow properties of suspensions. Rheological evaluation should be supplemented by direct microscopic or ultra-microscopic observation.

Jan 1, 1958

By René Dufour

Jusqu?à son acquisition par MM René Dufour et Alain Robin en 1994, les claims miniers et les droits de surface de la propriété étaient détenus depuis 1953 par la société Québec Columbium, une filiale de la socité américaine Kennecott Copper qui y a réalisé d?importants travaux miniers. En 1995 la compagnie NIOCAN inc. fut incorporée; ses actions furent inscrites à la bourse de Montréal en 1997, et à la bourse de Toronto en décembre 1999. Jusqu?à maintenant, NIOCAN a investi plus de 7 millions de dollars dans le développement de sa propriété minière de niobium située à quelques 40 kilomètres au nord-ouest de Montréal. Le haut rendement économique des deux gisements principaux que compte exploiter la compagnie, le S-60 et le HWM-2, a été établie par des études de faisabilité effectuées par le consortium Met-Chem/SNC-Lavalin. La mission que s?est donnée NIOCAN inc. consiste à mettre en production ses deux gisements et à devenir ainsi productrice de ferroniobium dans les plus brefs délais. Figure 2 Le projet est présentement à un stade avancé d?obtention du certificat d?autorisation du ministère de l?Environnement. À plus long terme, la compagnie compte aussi exploiter les sous-produits de ses gisements (apatite, forsterite, magnétite, calcaire et terres rares).

May 1, 2003

By R. S. Jones

"Fording Coal Ltd. is now in its fifth year of a 15-year contract to supply 3 million long tons of clean coal per annum to its Japanese steel-making customers. The mine employs both conventional truck-shovel and unconventional ""walking"" dragline coal mining techniques in multiple-seam pits. This paper describes the present and future application of the 60-cu.-yd dragline and truck-shovel pre-stripping fleet in 1•ecovering 5- to 40-footthick coal seams in mountainous terrain. Deep blastholes, coal flow demands, spring ""run-off"", seam and inter-seam thrust faulting, limited seam outcrop data and regional faulting are a few of the problems encountered in this application. The author discusses these problems and their solutions as applied at Fording Coal Ltd."

Jan 1, 1976

By C. Velásquez, W. Bergholz, C. Spence, P. Lind

NuevaUnión SpA (NuevaUnión) is a development project located in the Huasco province of the Atacama region of Chile. It is held in a joint venture company owned 50:50 by Teck Resources Limited (Teck) and Newmont Goldcorp. It includes the Cu-Mo Relincho deposit and the Cu-Au La Fortuna deposit, with plans to utilise a single concentrator to be built at the Relincho site. The Relincho site is at an altitude of 2,000 masl and is 40 km from the La Fortuna site which is at an altitude of 4,100 masl. The project is currently completing a Feasibility Study and is reviewing equipment selection and flowsheet options. This paper is based on the current thinking, and design decisions will be finalized at the completion of the Feasibility Study. NuevaUnión is currently planning for phased operation, processing Relincho ore at 104 ktpd followed by processing ore from La Fortuna at 116 ktpd. Plans for the third phase include doubling the main processing lines and returning to Relincho ore at a processing rate of 208 ktpd. The NuevaUnión concentrator will incorporate comminution and flotation circuits that are being designed to maximize the overall economic value of the combined ore deposits. Major ore characteristics differ between the two ore bodies, such as ore competency, grindability, liberation grind size, pulp rheology, tailings properties, minerals and metals of value, as well as gangue mineralogy. Mineral processing choices have been made to optimise value from each deposit and the combined project. INTRODUCTION Between 2010 and 2013, two significant mining projects were being developed in Chile: Goldcorp’s El Morro project had recently finalized a Feasibility Study and, in 2011, had received its environmental approval for construction; and Teck Resources Limited’s (Teck) Relincho project was finalizing a Feasibility Study and preparing its Environmental Impact Study. Both projects were: Geographically close, at only 40 km apart. Considering similar infrastructure. Each was planning to have its own concentrator, tailings management facility, high voltage power line, port, concentrate transport system, seawater desalination plant and pumping system to mine site.

Jan 1, 2019

By Karl J. C. Harries

"11.1. INTRODUCTIONA royalty is the most common form of interest retained by an owner who is disposing of his property or by a joint venturer who ceases, voluntarily or otherwise, to participate in the joint venture.1 Rarely does a non-participating party have a direct interest in the property and/or assets of a project, except during the period when a non-participating joint venturer may be having his interest diluted.2 In fact, it is most unwise to permit a non-participating party to have such an interest. It may give rise to significant problems that could prevent or substantially delay the development of an orebody and require a considerable amount of time, effort, and money to correct.3In negotiating a royalty, it is important to be aware that there is no law or convention that says, “You just don’t do that in a royalty agreement.” As with any agreement, inventiveness and flexibility on the part of the negotiator are not just assets, but virtual necessities. It is also for this reason that it is essential to read the royalty provisions, particularly the definitions, fully and carefully, especially if you are the recipient. On the other hand, if your inventiveness and flexibility cause your accountant to question the advisability of one of your ideas, pay close attention to him.4 He will, no doubt, have had experience with many royalties, and no competent professional adviser disparages a client’s ideas without good reason. Besides, he will probably be the person who will be determining the royalty or certifying the determination of it. At the very least, he will be auditing your general financial statements, which must, of course, reflect the royalty determination. Heeding his advice not only may make the determination easier but also will probably save you money in professional fees later on. Nevertheless, do not simply accept his comments or recommendations without understanding what they mean, why they have been made with respect to your royalty agreement (sometimes professionals have comments that they make as a matter of course and, even though they may be valid, you should require them to be justified to you), and how they will affect your royalty determination.It is surprising how many corporate payors insist that their standard royalty provisions5 be used as a matter of policy, thereby effectively tying the negotiator’s hands. It is even more surprising, and to professional advisers frightening, how many of the senior employees who insist that such a policy be adhered to, virtually without variation, do not know what is in the standard provisions and would be hard-pressed to explain them to a property owner. If standard provisions are appropriate, by all means use them, but do allow experienced and sensible negotiators some flexibility and make sure that everyone within the corporation who may have to use such provisions – negotiator and supervisor alike – knows what they contain and why they are as they are. For example, there are often good and convincing reasons to describe a deduction in a certain way or to include a certain specific type of deduction. On the other hand, quite often the answer to the question “why?” is that “it has always been there”; this is, or should be, an unacceptable answer. In any event, if you, as the negotiator, appear to know what you are talking about, are familiar and comfortable with your royalty provisions, and are backed up by your boss with the same words or reasoning, a property owner cannot help but be satisfied that you are knowledgeable, even if he still does not agree with your provisions. Finally, if you do use standard provisions, make sure that they are reviewed and updated regularly."

Jan 1, 2003