APRIL 2005 ISSUE

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compliance
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A Company that Hires APEGGA Professionals Doesn’t Necessarily Require Permit to Practice

The Compliance Department assumes that companies employing APEGGA members are engaging in the practice of engineering, geology or geophysics. However, this is not always the case.

Sometimes after contact and investigation, we find the legal definitions in the EGGP Act are not applicable. Several of the following cases are examples of these situations.

• Company employing APEGGA members was contacted for a permit. The company responded by describing activities as that of a manufacturer's agent. Our investigation revealed that the company represents various suppliers and matches a client's specifications to items in the appropriate supplier's catalogues.

• Engineering is done by clients. The legal definition section 1(q) of the EGGP Act was considered along with exemption clause 2(4)(a). We determined that the activities could not be considered the practice of engineering. Disclaimer letter sent confirming the decision with the reminder that if the situation should change in the future a permit would be required.

• Company employing APEGGA members was contacted for a permit. We determined that the activities are the practice of engineering as they involve the manufacture, distribution, sale and service of oil field equipment. The company was very cooperative and immediately obtained a permit to practice.

• Company employing APEGGA members was contacted for a permit. The company advised that its activities are described on its web site and its managers think they do not imply the practice of engineering.

The file was referred to a member of APEGGA's Enforcement Review Committee for an opinion by applying the activities to the legal definition in section 1(q) in the EGGP Act. Considering that the activities involve commerce and primarily a service to bill consumers based on transactions, it is not considered to be the practice of engineering as defined by the act.

We sent a disclaimer letter confirming the decision, but with the reminder that if the situation should ever change, a permit would be required.

• Company employing APEGGA members was contacted for a permit. The activities consist of the exploration and development of natural gas and crude oil and involve the practice of engineering, geology and geophysics. The company immediately submitted an application and a permit was approved for the practice of all three disciplines.

• An APEGGA member forwarded a business card to Compliance. The card indicated the company

FREQUENTLY ASKED QUESTION

APEGGA members often incorporate a company with engineering, geology or geophysics in the name. Notice of the incorporation is published in the Alberta Gazette. The Compliance Department reviews all Alberta Gazette publications and notifies the individual if a permit to practice application has not been submitted.

It is assumed the purpose for the incorporation is to actively practice the professions. Although intentions are meaningful, sometimes the individual will obtain employment as a regular employee and the corporation becomes dormant.

Q: Since my company is dormant, am I required to dissolve it by deregistering with corporate registry or should I just remove the word engineering, geology or geophysics from the name?

A: The Compliance Department will accept a written undertaking from the professional member confirming the situation. During the time that the company is dormant, APEGGA will not pursue a permit to practice and does not require that the name be changed or that the company be deregistered with corporate registry

If the situation changes and the company actively begins to promote or engage in engineering or geoscience activities under the company name, a permit to practice is required __ before these activities begin.

Activity Report

The following statistics track this year's APEGGA Compliance Department activity. The department's job is to enforce the right-to-practice and right-to-title provisions of the EGGP Act Part 1. The Compliance Department's focus, therefore, is on individuals and companies that are not members — those that may be, inadvertently or otherwise, holding themselves out as members or practicing the professions illegally.

*Note: Compliance files not mentioned above were resolved for various other reasons, such as confirmation that an individual or company is already registered with APEGGA, verification that an individual contacted is not living or working in Alberta , clarification that a company is actually a trade name of a member etc.