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Volume 62, No. 22

232/2019

The British Columbia Gazette,

Part II

November 19, 2019

B.C. Reg. 232/2019 , deposited November 7, 2019, under the INCOME TAX ACT [section 213]. Order in Council 581/2019, approved and ordered November 7, 2019.

On the recommendation of the undersigned, the Lieutenant Governor, by and with

the advice and consent of the Executive Council, orders that the Natural Gas Tax Credit

Regulation, B.C. Reg. 145/2019, is amended as set out in the attached Schedule.

— C. JAMES, Minister of Finance and Deputy Premier ; L. POPHAM, Presiding Member of the Executive Council .

Schedule

Section 1 of the Natural Gas Tax Credit Regulation, B.C. Reg. 145/2019, is repealed

and the following substituted:

Definitions

1 In this regulation:

"Act" means the Income Tax Act ;

"Compressor Station 2" means the compressor station located at 55° 38' 54.76" north latitude and 122° 12'

30.70" west longitude on the natural gas pipeline known as the Westcoast Transmission

System.

2 The following sections are added:

Prescribed amount of LNG

1.1 For the purposes of paragraph (

b) of the definition of "major LNG facility" in

section 172

of the Act, the prescribed amount of LNG per year is 2 million tonnes.

Reference point

1.2 For the purposes of the definition of "reference point" in

section 177 of the Act,

the prescribed reference point is Compressor Station 2.

Pipeline fuel and losses adjustment

2.1

(1) For the purposes of

section 180 of the Act, a corporation's pipeline fuel and

losses adjustment, in respect of a major LNG facility and for the month, is the amount

determined by the following formula:

pipeline fuel and

losses adjustment

volume variance

x 100%

adjusted LNG facility inlet volume

where

volume variance

the amount determined under subsection (2) for the month;

adjusted LNG facility inlet volume

the total of the following:

(

a) the volume of natural gas deemed to have been purchased

under

section 178 of the Act by the corporation in the month at an LNG facility inlet

meter for the major LNG facility;

(

b) the volume of natural gas disposed of by the

corporation in the month at an LNG facility inlet meter for the major LNG facility;

(

c) the volume of natural gas disposed of by the corporation in the month while that

natural gas is in the feedstock pipeline that delivers natural gas to the major LNG

facility.

(2) For the purposes of the description of "volume variance" in subsection (1),

the amount determined for the month is the amount determined by the following formula:

volume variance

feedstock pipeline inlet volume

acquisitions

dispositions

change in inventory

LNG facility inlet volume

where

feedstock pipeline inlet volume

the volume of natural gas owned by the corporation that passes, in the month, through

the feedstock pipeline inlet designated in respect of the major LNG facility;

acquisitions

the volume of natural gas acquired by the corporation in the month

(

a) while that

natural gas is in the feedstock pipeline that delivers natural gas to the major LNG

facility, or

(

b) at an LNG facility inlet meter for the major LNG facility from a

person or partnership;

dispositions

the volume of natural gas disposed of by the corporation in the month

(

a) while

that natural gas is in the feedstock pipeline that delivers natural gas to the major

LNG facility, or

(

b) at an LNG facility inlet meter for the major LNG facility;

change in inventory

the volume of natural gas equal to the volume of natural gas owned by the corporation

and in the feedstock pipeline at the end of the month less the volume of natural gas

owned by the corporation and in the feedstock pipeline at the end of the preceding

month;

LNG facility inlet volume

the volume of natural gas notionally acquired by the corporation at an LNG facility

inlet meter for the major LNG facility in the month.

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