Alberta Regulation 220/2013

New Home Buyer Protection Act

NEW HOME BUYER PROTECTION (MINISTERIAL) REGULATION

Filed: December 2, 2013

For information only: Made by the Minister of Municipal Affairs on November 27,

2013 pursuant to

section 28(2) of the New Home Buyer Protection Protection Act.

Table of Contents

Definitions

Part 1

General

2 Application of Act

3 Owner builder criteria

4 Owner builder authorizations

5 Compliance orders

6 Service of compliance orders and notices

Part 2

New Home Buyer Protection Act Appeal Board

7 Establishment of New Home Buyer Protection Act Appeal Board

8 Notice of appeal

9 Persons affected by compliance orders

10 Interveners

11 Additional grounds

12 Applications for stay

13 Notice of hearing

14 Nature of hearing

15 Adjournments

16 Case management

17 Representation by lawyer or other agent

18 Hearing open to public

19 Rules of Court

20 Absence of party

21 Oral hearing procedures

22 Appeal without hearing

23 Dismissal of appeals

24 Withdrawals

25 Dispute resolution

26 Reconsiderations

27 Costs

28 Evidence

29 Decisions and orders of Board

30 Publication

31 Expiry

32 Coming into force

Schedule

Definitions

1 In this Regulation,

(a) "Act" includes the regulations made under the statute;

(b) "appeal" means an appeal referred to in

section 17(1) of the

statute;

(c) "statute" means the New Home Buyer Protection Act.

Part 1

General

Application of Act

2(1) In subsection (2)(b),

(a) "building code" means the Alberta Building Code 2006

declared in force by the Building Code Regulation

(AR 117/2007);

(b) "mobile home" means a structure that is designed to be

moved from place to place and that is intended for residential

occupancy.

(2) The following buildings are exempt from the definition of new

home in

section 1(1)(

s) of the statute:

(

a) a home built by one of the following societies:

(

i) Habitat for Humanity - Camrose Society;

(ii) Habitat for Humanity - Edmonton Society;

(iii) Habitat for Humanity Lethbridge Society;

(iv) Habitat for Humanity Red Deer Region Society;

(

v) Habitat for Humanity Southern Alberta Society;

(

b) any mobile home that is not subject to the building code;

(

c) detached amenity buildings;

(

d) detached parking garages;

(

e) detached recreation facilities;

(

f) detached swimming pools.

(3) Subsection (2)(

a) applies only

(

a) where one of the societies listed in subsection (2)(

a) sells a

home to an individual who has the intention of living in it,

and

(

b) the purchase and sale agreement in respect of that home

prohibits the individual from selling the home to anyone

other than the society or its successors.

(4) The Alberta Social Housing Corporation is exempt from the

application of the Act.

(5) Despite

section 3(8) of the statute,

(

a) a residential builder of a multiple family dwelling built for

rental purposes is exempt from the requirement of

section

3(1)(

a) of the statute, and

(

b) a sole owner of a multiple family dwelling built for rental

purposes is exempt from the requirement of

section 3(2) of

the statute.

(6) Subsection (5) applies only where the residential builder or owner

registers the building with the Registrar and

(

a) does not sell or agree to sell or make any other disposition of

the multiple family dwelling except if the multiple family

dwelling is sold to a person who satisfies the requirements of

subsection (5) and this subsection,

(

b) does not register a condominium plan in respect of the

multiple family dwelling or a portion of the multiple family

dwelling, or

(

c) does not subdivide the multiple family dwelling in any other

manner

for 10 years from the earlier of

(

d) the date an accredited agency, accredited municipality or

accredited regional services commission grants permission to

occupy the multiple family dwelling, and

(

e) if permission described in clause (

d) is not granted, the date

the multiple family dwelling is first occupied

and provides an acknowledgment in a form satisfactory to the

Registrar of the obligations under the Act of the residential builder or

the owner if the exemption ceases to apply.

Owner builder criteria

3 For the purposes of

section 5 of the statute, the prescribed criteria

that an individual must meet to obtain an authorization are as follows:

(

a) the individual must intend to personally reside in the new

home for at least 10 years;

(

b) the individual must be the registered owner

(

i) as the sole owner,

(ii) as a joint tenant, or

(iii) as a tenant in common with at least a one-half interest

of an estate in fee simple in the land upon which the new

home is to be constructed;

(

c) if clause (b)(ii) or (iii) applies, that the individual is the

registered owner with other owners who are all individuals;

(

d) the individual must intend to personally engage in, arrange

for or manage all or substantially all of the construction of

the new home;

(

e) the individual has not made a false or misleading statement in

a previous application for an authorization;

(

f) the individual has not contravened the Act;

(

g) the individual has not been issued an authorization for at least

3 years since the date of the individual's first occupancy of a

new home for which the individual was issued the most

recent previous authorization;

(

h) the individual has not been ordinarily resident in a new home

for which another individual was issued an authorization in

the previous 3 years.

Owner builder authorizations

4(1) In this section,

(a) "operator's licence" has the same meaning as in

section

1(1)(bb) of the Traffic Safety Act;

(b) "identification card" has the same meaning as in

Schedule

12,

section 16 of the Government Organization Act.

(2) An applicant for an authorization must provide information,

including but not limited to the following, in a form and manner

acceptable to the Registrar:

(

a) the civic address and legal description of the land where the

new home will be built;

(

b) the applicant's address for service;

(

c) a description of the applicant's registered interest in the land

on which the new home will be built;

(

d) a true copy of the applicant's operator's licence or

identification card;

(

e) the names and birthdates of the adults who intend to be

normally resident in the new home;

(

f) a list of the names, trades and contact information for all the

subcontractors that the applicant intends to be involved in

building the new home.

(3) The applicant must also provide a statement in a form and manner

acceptable to the Registrar and signed by the applicant acknowledging

or confirming that

(

a) the applicant meets the criteria listed in

section 3,

(

b) the applicant intends to personally engage in or arrange for or

manage all of the new construction of the new home,

(

c) the applicant intends to personally occupy the new home as

the applicant's primary residence for at least 10 years,

(

d) the applicant understands the conditions under the Act

applicable to authorizations and, in particular, the applicant's

potential obligations under

section 4 of the statute,

(

e) the applicant is required to and will update the registry under

the Act to include information required under subsection (5),

(

f) the applicant is required to obtain warranty coverage on the

new home, or obtain an exemption from the Registrar from

that requirement, if the applicant wishes to sell or offer to sell

the new home before the end of the purchase period, and

(

g) warranty providers have the discretion respecting owner built

homes

(

i) not to provide coverage under a home warranty

insurance contract,

(ii) to determine the cost of coverage under a home

warranty insurance contract based on a risk assessment

performed by a warranty provider, and

(iii) to request detailed information about the new home and

the construction process from the owner builder.

(4) Despite subsection (3)(a), if the applicant does not meet the criteria

listed in

section 3, the applicant must provide, with the statement under

subsection (3), a written explanation as to why the application should

still be considered.

(5) An applicant for an authorization must undertake to provide

information, including but not limited to the following, in a form and

manner acceptable to the Registrar at the time the information becomes

available:

(

a) the names of and contact information for all the

subcontractors who were involved in building the new home,

if different from those who were listed on the statement

provided under subsection (2)(f);

(

b) the date when the applicant first occupies the new home.

(6) Where

section 3(b)(ii) or (iii) applies, all registered owners of an

interest in an estate in fee simple in the land upon which the new home

is to be constructed must apply for the authorization.

(7) The Registrar may require any document that an applicant

provides under this

section be witnessed by a person who sees the

applicant for authorization actually sign the document, who then must

swear an affidavit of execution and give it to the Registrar.

Compliance orders

5(1) A compliance order must specify the action that a person must

take, stop or modify, including but not limited to the following, by the

date specified in the order:

(

a) apply to obtain an authorization or to be granted an

exemption in accordance with the Act;

(

b) comply with a provision of the Act;

(

c) obtain the required home warranty coverage;

(

d) provide to a prospective owner a copy of the disclosure

notice referred to in

section 3(2) or (5) of the statute;

(

e) provide documentation to a compliance officer to assist the

officer in the execution of the officer's duties;

(

f) register a new home or the person's intention to build a new

home in accordance with the Act;

(

g) stop work on the new home;

(

h) arrange for the preparation or revision of a building

assessment report for a condominium building or a phase of

development to comply with the requirements of the Act;

(

i) give a copy of a building assessment report for a

condominium building or a phase of development to a person

entitled to it under the Act;

(

j) remove from publication, including publication on the

internet, any offer for sale or advertisement for sale of a new

home that does not comply with

section 3 of the statute.

(2) On issuing an order, the compliance officer shall

(

a) serve a copy on the person to whom it is issued in accordance

with this Regulation,

(

b) mail a copy of it to the registered owner at the address

recorded on the certificate of title of the land,

(

c) mail a copy of it to the warranty provider listed in the registry

in respect of the new home, and

(

d) send a copy of it to the Registrar within the time satisfactory

to the Registrar.

(3) The compliance order shall remain in force notwithstanding

(

a) that a request for review has been made under

section 13 of

the statute,

(

b) a notice of appeal has been filed under

section 17 of the

statute, or

(

c) that a review or appeal is underway,

unless the chair of the Board issues a stay of the compliance order

under

section 19 of the statute.

(4) The form to be used under the Act is set out in the Schedule.

Service of compliance orders and notices

6(1) In this section, "recorded mail" means a form of document

delivery by mail or courier in which receipt of the document must be

acknowledged in writing.

(2) A compliance order issued, amended, confirmed, varied or

cancelled under the Act and a notice of administrative penalty or other

written notice or document required by the Act to be issued or sent

must be served

(

a) in the case of an individual,

(

i) by personal service,

(ii) by leaving it for the individual with a person apparently

at least 18 years of age at the individual's current or

most usual dwelling place,

(iii) by sending it by recorded mail to

(

A) the individual's last known address, or

(

B) the most recent address provided by the individual

to the Registrar,

(iv) by sending it by facsimile or other form of electronic

transmission to the individual's last known facsimile

number or electronic address, if there is a record of so

sending it,

and

(

b) in the case of a corporation,

(

i) by leaving it with a director, manager or officer of the

corporation, or the president, chairperson or other head

officer, by whatever name that person is known, of the

corporation,

(ii) by leaving it at the corporation's registered office,

(iii) by sending it by recorded mail to the corporation's

registered office,

(iv) in the case of an extra-provincial corporation, by

leaving it with, at the address of, or by sending it by

recorded mail to the address of

(

A) the corporation's attorney for service appointed as

required by the Business Corporations Act, or

(

B) the corporation's principal place of business in

Alberta,

(

v) by sending it by facsimile or other form of electronic

transmission to the corporation's last known facsimile

number or electronic address, if there is a record of so

sending it.

(3) Service is effected under subsection (2)(a)(iv) and (b)(

v) when the

sender obtains or receives confirmation of the successfully completed

transmission.

(4) The Board may decide questions of the sufficiency, validity or

timeliness of the service of compliance orders or notices.

Part 2

New Home Buyer Protection

Act Appeal Board

Establishment of New Home Buyer Protection Act Appeal Board

7(1) In this Part,

(a) "Board" includes a panel of the Board;

(b) "case management instructions" include

(

i) directing parties to

(

A) state, clarify or focus the issues in dispute,

(

B) identify any relevant agreed or alleged facts, or

(

C) identify any witnesses to be called and provide a

summary of the evidence intended to be introduced

through those witnesses,

(ii) directing disclosure of material or information from any

party to facilitate a fair, orderly and timely process,

(iii) directing that communication with the Board or

disclosure of some or all material or information be

made or remade in an electronic format approved by the

Board or in hard copy format, or any combination of

both,

(iv) directing that evidence be submitted to the Board by

affidavit by a particular date, and

(

v) establishing or rescheduling dates for hearings,

disclosure or exchanges of information;

(c) "case manager" means a member of the Board or of the

Board's administration designated by the chair as a case

manager;

(d) "electronic hearing" means an oral hearing conducted by

conference telephone or other electronic means where each

participant is able to hear and respond to the comments of the

other participants at the time the comments are made;

(e) "party" means

(

i) an appellant,

(ii) an intervener,

(iii) the Registrar, and

(iv) for the purposes of proceedings under this Part, any

other person whom the Board determines to be a party.

(2) There is established a board to be known as the New Home Buyer

Protection Act Appeal Board consisting of the persons appointed by

the Minister.

(3) The Board may be referred to as the New Home Buyer Protection

Board.

(4) The Minister shall appoint one of the members of the Board as

chair.

(5) The chair may

(

a) arrange for matters to be set down before the Board,

(

b) adjourn matters set down before the Board, and

(

c) perform the administrative functions that are necessary to

enable the Board to carry out its duties under the Act.

(6) The chair may appoint a Board member as acting chair.

(7) The acting chair has and may exercise and perform the powers and

duties conferred or imposed on the chair by the Act at any time.

(8) The chair may select one or more members of the Board to sit as a

panel of the Board.

(9) The chair may establish as many panels as the chair considers

necessary.

(10) The chair may appoint a presiding officer for a panel, if

applicable, but if the chair does not do so, the members of a panel must

choose a presiding officer from among themselves.

(11) If a member named to a panel is unable to hear an appeal, the

chair may appoint a replacement member.

(12) A majority of members of a panel of the Board constitutes a

quorum.

Notice of appeal

8(1) A notice of appeal referred to in

section 17 of the statute must be

in the form approved by the chair and set out

(

a) the appellant's name, municipal address and contact

information, including an e-mail address,

(

b) a copy of the decision, order or administrative penalty being

appealed,

(

c) the date the decision, order or notice of administrative

penalty was received by the appellant,

(

d) any information contained in or on the decision, order or

notice of administrative penalty that the appellant believes to

be incorrect, and

(

e) a brief description of the reasons for the appeal.

(2) A notice of appeal is deemed to be filed when it is received

(

a) at an e-mail address specified by the Minister or the chair, or

(

b) at the address specified by the Minister or the chair.

(3) Any filing fee for an appeal must be received by the Minister or

the Board by the later of

(a) 7 days after the filing of the notice of appeal, or

(

b) the deadline for filing the appeal under

section 17 of the

statute.

(4) A filing fee may be refunded to the person who paid a fee if

(

a) the Board decides in favour of the person, or

(

b) the matter is appealed to the Court and the Court decides in

favour of the person.

Persons affected by compliance orders

9(1) A person who is not named in a compliance order but who claims

to be affected by a compliance order may apply in writing within one

month after the issuance of the compliance order to the Minister for

permission to appeal the compliance order.

(2) The application to the Minister must include a completed notice of

appeal with the information set out in

section 8(1) and payment of any

filing fee.

(3) The Minister may decide, with or without reasons,

(

a) whether the person is affected by a compliance order, and

(

b) if the person is allowed to appeal the compliance order.

(4) If the Minister decides to allow the person to appeal, the appeal

procedure set under the Act shall be followed.

(5) The Minister may seek a recommendation from the Board as to

whether a person is affected by a compliance order, and the Board may

hold a hearing to inquire into the matter.

Interveners

10(1) A person may apply to intervene in an appeal before the Board

where the person has a financial or other interest in the matter by

providing the following information in the form approved by the chair:

(

a) the intervener's name, municipal address and contact

information, including an e-mail address;

(

b) identification of the decision, order or administrative penalty

being appealed;

(

c) a concise statement indicating

(

i) the manner in which the intervener's rights may be

directly and adversely affected by a decision of the

Board on the appeal,

(ii) the nature and scope of the intervener's intended

participation,

(iii) the disposition of the appeal that the intervener

advocates, if any, and

(iv) the reasons why the intervener believes the Board

should decide in the manner that the intervener

advocates.

(2) An application to intervene is deemed to be filed when it is

received

(

a) at an e-mail address specified by the Minister or the chair, or

(

b) at the address specified by the Minister or the chair.

(3) Any filing fee for an application to intervene must be received by

the Minister or the Board by the later of

(a) 7 days after the filing of the application, or

(

b) the deadline for filing an appeal under

section 17 of the

statute.

(4) A filing fee may be refunded to the person who paid a fee if

(

a) the Board decides in favour of the person, or

(

b) the matter is appealed to the Court and the Court decides in

favour of the person.

(5) The Board may allow or refuse a person to intervene in an appeal,

Additional grounds

11(1) A person may appeal a decision of the Registrar as to whether a

building, portion of a building, or proposed building or portion of a

proposed building is

(

a) a new home,

(

b) entitled to an exemption under the Act, or

(

c) otherwise exempt from the application of the Act.

(2) The appeal procedure set out under the Act shall be followed for

appeals under this section.

Applications for stay

12(1) A person may apply for a stay under

section 19 of the statute in

the form and manner approved by the chair.

(2) The chair shall notify the Registrar of any stay applications, and

set or extend a deadline for a response.

(3) The chair may

(

a) accept or refuse the application,

(

b) refer the application to the Board for a recommendation, or

(

c) issue an order,

with or without reasons.

(4) If the chair refers the application to the Board, the Board may hold

a hearing.

(5) The chair may reconsider an application for a stay on the chair's

own motion.

Notice of hearing

13(1) Unless

section 22 applies, the Board must mail or e-mail a

notice of the time and place of the hearing of the appeal to the parties

at least 7 days before the hearing date.

(2) If the notice is sent by e-mail, it must be sent to the party's last

known electronic address.

(3) The notice under subsection (2) is deemed to have been sent when

the sender obtains or receives confirmation of the successfully

completed transmission.

(4) The Board may, on its own motion or application by a party,

extend or abridge a time limit specified in this Part or by the Board, on

any terms that the Board considers appropriate.

Nature of hearing

14 For greater certainty, when hearing an appeal of a decision, an

order or an administrative penalty, the Board may also consider, but is

not bound by

(

a) any relevant guidelines and

interpretation bulletins

issued by the Registrar, and

(

b) any matter on the record, including decisions of a

compliance officer, the Registrar or any other person.

Adjournments

15 The Board may grant an adjournment of a hearing for any period

and on any terms it considers appropriate if the Board is satisfied that

(

a) there are compelling reasons for granting the adjournment, or

(

b) not granting the adjournment would amount to a denial of

fairness to one or more of the parties to the appeal.

Case management

16(1) A case manager may do one or more of the following:

(

a) correspond with parties on behalf of the Board;

(

b) make case management instructions that in the case

manager's opinion are desirable or necessary for the

resolution of a matter before the Board;

(

c) provide parties with copies of correspondence received,

decisions, authorities and other information relevant to an

appeal;

(

d) hold meetings or discussions with parties to facilitate any of

the actions outlined in this section;

(

e) refer any matter to a panel for a preliminary hearing;

(

f) refuse to accept an appeal or an application to intervene on

behalf of the Board if

(

i) the notice of appeal or application to intervene is not

substantially complete, including instances where a

means of contacting the party is not provided,

(ii) respecting a notice of appeal, the notice of appeal is not

filed in time,

(iii) the filing fee is not paid in time, or

(iv) in the case manager's opinion, the party's claim is not

properly before the Board;

(

g) identify potential parties and determine the extent of their

involvement in an appeal, if any.

(2) Parties may ask a case manager for case management instructions.

(3) Parties may ask for a hearing with respect to case management

instructions.

(4) A party who disagrees with a case manager under this

section may

request a hearing within 7 days after receiving case management

instructions.

(5) The chair or a case manager may refer any matter to a hearing,

with or without a prior request by a party.

(6) A Board member who has acted as a case manager in respect of a

matter may not participate in any subsequent hearing concerning the

same matter unless all affected parties consent.

Representation by lawyer or other agent

17(1) A party appearing before the Board may be represented by a

lawyer or other agent.

(2) An agent may not act for a party before the Board unless the party

has provided the Board with written authorization for the agent to act

in a form acceptable to the chair.

(3) Subsection (2) does not apply where the party attends before the

Board.

Hearing open to public

18(1) Subject to subsections (2) and (3), all oral hearings and

electronic hearings are open to the public.

(2) If the Board considers it necessary to prevent the disclosure of

intimate personal, financial or commercial matters or other matters

because, in the circumstances, the need to protect the confidentiality of

those matters outweighs the desirability of an open hearing, the Board

may conduct all or part of the hearing in private.

(3) If all or any part of an oral hearing or an electronic hearing is to be

held in private, no party may attend the hearing unless the party files

an undertaking stating that the party will hold in confidence any

evidence heard in private.

(4) Subject to subsection (5), all documents filed in respect of an

appeal must be placed on the public record.

(5) The Board may exclude documents from the public record

(

a) if the Board is of the opinion that disclosure of the document

could reasonably be expected to disclose intimate personal,

financial or commercial matters or other matters, and

(

b) the Board considers that the person's interest in

confidentiality outweighs the public interest in the disclosure

of the document.

(6) Nothing in this

section limits the operation of any statutory

provision that protects the confidentiality of information or documents.

Rules of Court

19 The provisions of the Alberta Rules of Court (AR 124/2010) do

not apply to appeals.

Absence of party

20 If a party to an appeal fails to appear in person or by lawyer or

other agent within one hour from the time set out in the notice given

under

section 13, the appeal may be

(

a) dismissed,

(

b) heard and determined in that party's absence,

(

c) adjourned to a later time or date, or

as the Board considers proper in the circumstances.

Oral hearing procedures

21(1) Hearings may be recorded at the Board's discretion.

(2) No hearing may be recorded unless the person making the

recording is authorized to do so by the Board.

(3) The Board may hold an electronic hearing unless a party satisfies

the Board that holding an electronic hearing is likely to cause the party

significant prejudice.

Appeal without hearing

22(1) With the consent of the parties to an appeal, the consideration

of the appeal may be conducted without a hearing before the chair or

the Board.

(2) Where an appeal is conducted under subsection (1) without a

hearing, all matters concerning the appeal must be submitted in

writing, or as otherwise directed by the Board, to the Board not more

than 30 days after the parties provide their consent under subsection

(1).

Dismissal of appeals

23 The Board may dismiss an appeal if the Board is of the opinion

that

(

a) the appellant has not complied with an order of the Board or

case management instructions by the date required,

(

b) the appeal

(

i) has no reasonable chance of success,

(ii) is frivolous, trivial, vexatious or an abuse of process, or

(iii) has been appropriately dealt with in another proceeding,

(

c) the appeal is outside of the jurisdiction of the Board, or

(

d) the appellant has withdrawn the appeal.

Withdrawals

24(1) A party may withdraw from an appeal in writing.

(2) If a withdrawal is received by the Board less than 15 days before a

scheduled hearing, the Board may allow a withdrawal with or without

costs.

(3) If an appellant provides an address to the Board, but

correspondence, including by e-mail, to that address is returned or

rejected and the appellant does not provide a current address to the

Board within 7 days, the appeal is suspended.

(4) If an intervener provides an address to the Board, but

correspondence, including by e-mail, to that address is returned or

rejected and the intervener does not provide a current address to the

Board within 7 days,

(

a) the intervener's status is suspended, and

(

b) the intervener is no longer entitled to notice of proceedings

on the appeal.

(5) If an appeal is suspended, the chair, the Board or a case manager

may cancel any scheduled hearings, with or without notice to the

parties.

(6) A suspension under this

section is lifted if the Board receives a

current address from the appellant whose appeal was under suspension,

or an intervener whose status was under suspension.

(7) If an appeal is suspended for 21 days, the appeal is deemed to have

been withdrawn.

(8) If an intervener's status is suspended for 21 days, the intervener

loses intervener status.

(9) An appeal which is deemed to have been withdrawn, or intervener

status which is lost, may be restored with leave of the Board and made

Dispute resolution

25 The Board may accept or reject a recommendation to resolve a

dispute from the parties.

Reconsiderations

26(1) The Board may correct typographical errors, errors of

calculation and similar errors or omissions in its orders, decisions or

reasons.

(2) The Board may rehear any matter before making its decision, and

may review, rescind or vary any order or decision made by it.

(3) A party may apply for reconsideration of an order or decision of

the Board by filing the application with the Board within one month of

the date of the order or decision, accompanied by

(

a) the order or decision that is the subject of the request,

(

b) the reasons for the party's application for reconsideration,

and

(

c) any filing fee.

(4) The Board may waive any filing requirement where it considers it

to be appropriate.

(5) The Board may accept or reject a request for reconsideration, with

or without reasons.

(6) The chair may refer a decision or order for reconsideration to the

Board with instructions

(

a) to correct an error or omission,

(

b) to clarify a statement, or

(

c) to address an issue relating to a court decision or judicial

review.

(7) The Board shall notify all parties to the original decision of the

reconsideration and provide a copy of any supporting material.

(8) All parties to the original decision may file a submission within

one month after receipt of the notice of reconsideration.

(9) The Board may extend or abridge the time for filing a submission.

(10) Reconsideration applications are to be heard in writing only.

(11) The Board, on a reconsideration, may

(

a) dismiss the application,

(

b) return the matter to the original panel, or

(

c) refer the matter to a new panel,

and may set terms of the reconsideration order.

Costs

27 The Board may order costs against a person in any circumstances

that the Board determines to be appropriate.

Evidence

28(1) The Board is not bound by the rules of evidence in judicial

proceedings.

(2) Evidence may be given before the Board in any manner that the

Board considers appropriate.

(3) The Board may accept any oral or written evidence that the Board

considers proper, whether or not it would be admissible in a court of

law.

(4) No proceeding is invalid by reason of a defect or other irregularity

in form.

Decisions and orders of Board

29(1) The decisions and orders of the Board must be issued in

writing.

(2) Reasons of the Board, including dissenting reasons, if any, may be

issued orally or in writing.

(3) A party to an appeal may ask the Board for written reasons within

14 days of the issuance of oral reasons.

Publication

30 The Registrar may publish decisions, orders and reasons of the

Board in any manner that the Registrar considers appropriate.

Expiry

31 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be

repassed in its present or an amended form following a review, this

Regulation expires on February 1, 2019.

Coming into force

32 This Regulation comes into force on the coming into force of

section 28(2) of the New Home Buyer Protection Act.

Schedule

Form 1

Compliance Order

(New Home Buyer Protection Act

section 12)

To (name)

of (address)

Take notice that:

This order is issued in respect of the new home located at (address

or legal description) .

You are hereby ordered, on or before , pursuant to

section

12 of the New Home Buyer Protection Act ("the Act"), to take, stop or

modify the following action:

This order is being issued because________________________:

Non-compliance with this order is an offence under the Act.

Pursuant to sections 6, 15 and 26 of the Act, contravention of or failure

to comply with this order may result in one or more of the following

actions being taken against you:

- you might be prosecuted under the Act in respect of the

contravention or failure to comply;

- you might have an administrative penalty imposed on you in

respect of the contravention or failure to comply;

- you might be refused an authorization as an owner builder

under the Act or have an authorization issued to you as an

owner builder under the Act suspended or cancelled.

This compliance order may be reviewed by the Registrar under

section

13 of the Act if a written request for review is made within 30 days of

the date of receipt of this order to (name, address, telephone number

and facsimile number of the Registrar) .

The Registrar's decision on a review of the compliance order may be

appealed under

section 17 of the Act by filing a notice of appeal

with (name and address of Minister) within one month of receipt of

the Registrar's decision.

Dated this day of , 20 .

Compliance Officer

--------------------------------

Alberta Regulation 221/2013

Victims Restitution and Compensation Payment Act

PROPERTY AND REVENUE FORMS AMENDMENT REGULATION

Filed: December 4, 2013

For information only: Made by the Lieutenant Governor in Council (O.C. 392/2013)

on December 4, 2013 pursuant to

section 55 of the Victims Restitution and

Compensation Payment Act.

1 The Property and Revenue Forms Regulation

(AR 180/2004) is amended by this Regulation.

2 The title is repealed and the following is substituted:

VICTIMS RESTITUTION AND COMPENSATION

PAYMENT FORMS REGULATION

Section 1 is amended by adding "with the Court" after

"filed".

4 The following is added after

section 1:

Notice of objection

1.1 A notice of objection to be filed with the Minister under

section

1.6 of the Act must be in Form

Section 2 is amended by striking out "May 31, 2014" and

substituting "May 31, 2019".

6 The following is added after Form 1:

Form 2

Notice of Objection

I, (name), (occupation), of (name of city/town/district) in the (province/state) of

___________, and in relation to Civil Forfeiture Office (CFO) File Number

_______ (on Notice of Disposition), MAKE OATH AND SAY THAT:

(Select all that apply by placing an "x" in the appropriate box and provide all

requested information related to B or C):

1. I have the following interest in the subject property identified in

section 2:

? A. Ownership

? B. Rights of Possession. Owner's name and address is: ________

? C. Other (specify nature of interest in space below)

_________________________________________

2. The subject property is as follows:_________________________________

3. The origin, nature and extent of my interest in the subject property is as

follows:

(List origin, nature and extent - for example, with respect to a claim to

cash, explain who or what it came from, the nature of the transaction the

cash was derived from and the purpose for it being in your possession. If

more space is needed, add additional sheets.)

_________________________________________________

4. I dispute disposition and forfeiture of the subject property for the following

reason(s): ______________________________________________________

5. My/Our address for service of documents is ________________________

SWORN/AFFIRMED BEFORE ME at )

the_____of__________ in the Province )

of Alberta, this ___ day of ______, 20 ) ______________________

________________________________ )

A Commissioner for Oaths in and for the )

Province of Alberta, or a Notary Public. )

7 This Regulation comes into force on the coming into

force of

section 12 of the Victims Statutes Amendment Act,

--------------------------------

Alberta Regulation 222/2013

Alberta Investment Management Corporation Act

ALBERTA INVESTMENT MANAGEMENT CORPORATION

AMENDMENT REGULATION

Filed: December 4, 2013

For information only: Made by the Lieutenant Governor in Council (O.C. 394/2013)

on December 4, 2013 pursuant to sections 2(8) and 20 of the Alberta Investment

Management Corporation Act.

1 The Alberta Investment Management Corporation

Regulation (AR 225/2007) is amended by this Regulation.

Section 1(2) is amended by adding the following after

clause (a):

(a.1) "investment management services" does not include

services described in

section 6.1(3)(a);

3 The following is added after

section 6:

Clarifying and expanded powers

6.1(1) The Corporation may

(

a) establish, use and maintain corporations, trusts, partnerships

or any other legal entities or relationships for the purpose of

holding, structuring and administering investments in

connection with the provision of investment management

services, and

(

b) exercise any other powers and perform any other duties and

functions that are incidental or ancillary to the provision of

investment management services.

(2) In addition to any other powers, duties and functions, the

Corporation may, in accordance with, and to the extent authorized

by, any agreement with the Minister, provide shared services to the

Crown.

(3) The Corporation may enter into agreements with one or more

persons, other than designated entities,

(

a) to provide valuation or other ancillary services in relation to

investments jointly entered into or proposed to be entered

into with those persons, and

(

b) to charge fees for providing the services.

Subsidiary re venture capital

6.2(1) The Corporation is authorized to own a subsidiary

corporation for purposes relating to venture capital only if the

subsidiary corporation

(

a) is and continues to be wholly owned by the Corporation,

(

b) maintains its principal office in Alberta, and

(

c) carries on its business exclusively in respect of matters

relating to venture capital.

(2) The Corporation may provide advisory or other shared services

to the subsidiary corporation.

(3) Section 19 of the Act applies to the subsidiary corporation.

4 The following is added after

section 8:

Investment management agreements

8.1 An investment management agreement must include terms that

deal with the following:

(

a) the funds and other assets administered by the designated

entity in respect of which the Corporation is to provide

investment management services;

(

b) the investment management services to be provided by the

Corporation;

(

c) the costs to be recovered from the designated entity for the

services to be provided.

Alberta Regulation 223/2013

Freehold Mineral Rights Tax Act

FREEHOLD MINERAL RIGHTS TAX REGULATION

Filed: December 4, 2013

For information only: Made by the Lieutenant Governor in Council (O.C. 396/2013)

on December 4, 2013 pursuant to

section 23 of the Freehold Mineral Rights Tax Act.

Table of Contents

Part 1

General

Definitions

2 Exemption

Part 2

Tax

3 Establishment of unit values

4 Calculation of tax payable

5 $1600 reduction in tax payable

6 Exemption from tax

7 Order reducing tax payable

8 Prescribed date for payment of tax

9 Prescribed date for sending tax statement

10 Notice of objection to tax

11 Interest on unpaid tax

12 Multiple ownership

Part 3

Administration and Enforcement

13 Requirement to keep records

14 Penalty for failing to comply with Minister's direction

15 Confidentiality

16 Service of documents

Part 4

Repeal, Expiry and Coming into Force

17 Repeal

18 Expiry

Schedules

Part 1

General

Definitions

1 In this Regulation,

(a) "Act" means the Freehold Mineral Rights Tax Act;

(b) "condensate" means a mixture mainly of pentanes and

heavier hydrocarbons

(

i) that may be contaminated with sulphur compounds,

(ii) that is recovered or is recoverable at a well from an

underground reservoir, and

(iii) that may be gaseous in its virgin reservoir state,

but is liquid at the conditions under which its volume is

measured or estimated;

(c) "crude bitumen" means a naturally occurring viscous

mixture, mainly of hydrocarbons heavier than pentane,

(

i) that may contain sulphur compounds, and

(ii) that in its naturally occurring viscous state, will not flow

to a well;

(d) "crude oil" means a mixture mainly of pentanes and heavier

hydrocarbons

(

i) that may be contaminated with sulphur compounds,

(ii) that is recovered or is recoverable at a well from an

underground reservoir, and

(iii) that is liquid at the conditions under which its volume is

measured or estimated,

and includes all other hydrocarbon mixtures so recovered or

recoverable except gas, condensate or crude bitumen;

(e) "designated payor", in relation to a taxable mineral right,

means the designated payor recorded in the Electronic

Transfer System for that taxable mineral right;

(f) "Electronic Transfer System" means the electronic

information system administered by the Department and

called the Electronic Transfer System;

(g) "heavy oil" means the category of crude oil determined under

section 2 of

Schedule A as heavy oil;

(h) "light oil" means the category of crude oil determined under

section 2 of

Schedule A as light oil;

(i) "natural gas right" means an estate in fee simple in natural

gas located in a tract;

(j) "operator", in relation to a taxable mineral right, means a

person who is responsible for conducting a drilling,

development or production operation for the recovery of the

taxable mineral from the tract;

(k) "petroleum right" means an estate in fee simple in petroleum

located in a tract;

(l) "production entity" means

(

i) a drilling spacing unit, to the extent that the drilling

spacing unit is not included in an area described in

subclause (ii), and

(ii) a unit area under a unit agreement or unit operation

order;

(m) "production entity administrator", in relation to a production

entity for a taxable mineral right, means the production entity

administrator recorded in the Electronic Transfer System for

that production entity;

(n) "raw gas" means a mixture containing methane, other

paraffinic hydrocarbons, nitrogen, carbon dioxide, hydrogen

sulphide, helium and minor impurities, or some of them,

(

i) that is recovered or is recoverable at a well from an

underground reservoir, and

(ii) that is gaseous at the conditions under which its volume

is measured or estimated;

(o) "recorded lessee", in relation to a taxable mineral right,

means a person recorded in the Electronic Transfer System as

a recorded lessee in respect of that taxable mineral right;

(p) "solution gas" means

(

i) gas that is separated from crude oil or crude bitumen

after recovery from a well event,

(ii) gas that is dissolved in crude oil under initial reservoir

conditions and includes any of that gas that evolves as a

result of changes in pressure or temperature, or both,

due to human disturbance, and

(iii) gas that is dissolved in bitumen under initial reservoir

conditions and includes any of that gas that evolves as a

result of changes in pressure due to human disturbance

but does not include gas produced through chemical

alteration of crude bitumen using high temperature, high

pressure, a catalyst or otherwise;

(q) "well event" means

(

i) a part of a well completed in a zone and given a unique

well identifier by the Alberta Energy Regulator,

(ii) parts of a well completed in 2 or more zones and given

a single unique well identifier by the Alberta Energy

Regulator,

(iii) a part of a well completed in and recovering petroleum

or natural gas from a zone but which has not yet been

given a unique well identifier by the Alberta Energy

Regulator, or

(iv) parts of a well completed in and recovering petroleum

or natural gas from 2 or more zones during the period

when the parts are considered by the Minister as a

single well event for the purposes of this Regulation and

before the Alberta Energy Regulator makes a decision

whether or not to give the parts a single unique well

identifier.

Exemption

2 All mineral rights other than petroleum rights and natural gas rights

are exempt from the provisions of the Act.

Part 2

Tax

Establishment of unit values

3(1) The Minister shall establish the following values to be used in

calculating the tax payable with respect to petroleum rights for a

taxation year:

(

a) an amount per cubic metre as the unit value for light oil;

(

b) an amount per cubic metre as the unit value for heavy oil;

(

c) an amount per cubic metre as the unit value for crude

bitumen;

(

d) an amount per gigajoule as the unit value for solution gas.

(2) The Minister shall establish the following values to be used in

calculating the tax payable with respect to natural gas rights for a

taxation year:

(

a) an amount per gigajoule as the unit value for raw gas;

(

b) an amount per cubic metre as the unit value for condensate.

(3) Notwithstanding subsections (1) and (2), the Minister may, on

application by the recorded lessee in respect of a petroleum or natural

gas right, establish a unit value with respect to the petroleum or natural

gas right in accordance with the unit value submission guidelines

established by the Minister.

(4) In determining the value per unit of a mineral pursuant to this

section, the Minister may have regard to any matters the Minister

considers relevant.

Calculation of tax payable

4(1) The tax payable in respect of a petroleum right for a taxation year

shall be calculated in accordance with

Schedule A.

(2) The tax payable in respect of a natural gas right for a taxation year

shall be calculated in accordance with

Schedule B.

$1600 reduction in tax payable

5(1) The Minister may reduce the tax payable in respect of a

petroleum right in a taxation year by an amount not exceeding $1600

per each person who is an owner of the petroleum right on December

31 of that taxation year.

(2) The Minister may reduce the tax payable in respect of a natural gas

right in a taxation year by an amount not exceeding $1600 per each

person who is an owner of the natural gas right on December 31 of that

taxation year.

Exemption from tax

6(1) No tax is payable by an owner for a taxation year in respect of

that owner's taxable mineral rights within a single tract if the entire

amount of tax otherwise payable by the owner in respect of those

mineral rights in that tract for that taxation year, after any reduction

under

section 5, is less than $100.

(2) No tax is payable in respect of a taxable mineral right for a

taxation year if a royalty is payable to the Crown in that year on the

mineral to which the tax relates by reason of a reservation of the

royalty contained in the certificate of title to the mineral right.

Order reducing tax payable

7 Where in the Minister's opinion it is necessary or desirable in the

interests of conservation or of maintaining or increasing the recovery

of a mineral, the Minister may by order prescribe

(

a) a tax payable with respect to the taxable mineral right that is

less than the tax payable under this Regulation,

(

b) the taxation years to which the order applies, and

this

section of tax payable under this Regulation, including

(

i) the person entitled to the reduction,

(ii) the relationship between the costs incurred for

conservation or to maintain or increase the recovery of a

mineral and the amount of the reduction, and

(iii) the information required to be submitted in order to be

entitled to the reduction.

Prescribed date for payment of tax

8 For the purposes of

section 2(2) of the Act, the date on or before

which the tax must be paid is April 25 in the year following the

taxation year.

Prescribed date for sending tax statement

9 For the purposes of

section 3(1) of the Act, the date on or before

which the Minister must send the owner a tax statement is March 25 in

the year following the taxation year.

Notice of objection to tax

10(1) For the purposes of

section 4(1) of the Act, the following are

prescribed as persons who may object to the amount of tax calculated

by the Minister as payable in respect of a taxable mineral right for the

taxation year:

(

a) a recorded lessee in respect of the mineral right;

(

b) a designated payor in respect of the mineral right;

(

c) a person who has paid all or part of the tax.

(2) For the purposes of

section 4(1) of the Act, the prescribed date for

service on the Minister of a notice of objection is

(

a) in the case of an objection to tax payable shown in a tax

statement, other than a new tax statement referred to in

section 3(3) of the Act or a corrected tax statement referred

to in

section 3(4) of the Act, August 15 in the year following

the taxation year in respect of which the objection is made, or

(

b) in the case of an objection to tax payable shown in a new tax

statement referred to in

section 3(3) of the Act or a corrected

tax statement referred to in

section 3(4) of the Act, a date 90

days after the date of issue shown on the new or corrected tax

statement.

Interest on unpaid tax

11(1) If any tax is not paid when it is due under

section 8, interest is

payable to the Crown in right of Alberta on the balance of the tax

remaining unpaid from time to time until the date on which the entire

balance of the unpaid tax is received by the Crown together with any

interest on the unpaid tax to that date.

(2) If, under

section 3(3) or (4) of the Act, the tax payable by an

owner for a taxation year is increased or decreased from that shown in

the last tax statement issued to the owner in respect of that taxation

year, interest is payable,

(

a) in the case of a decrease, by the Crown on the amount of the

decrease to the person who paid the tax from April 25 of the

year following the taxation year to the date that the new or

corrected tax statement is sent to the owner in which the

overpayment and interest are credited,

(

b) in the case of an increase, by the owner to the Crown on the

amount of the increase from April 25 of the year following

the taxation year to the date the underpayment and accrued

interest are received by the Crown.

(3) If interest is payable under this

section by or to the Crown in

respect of any day, the rate of interest in respect of that day is the

yearly rate that is 1% greater than the rate of interest established by

Alberta Treasury Branches as its prime lending rate on loans payable

in Canadian dollars and in effect on the first day of the month in which

that day occurs.

(4) Interest computed under subsection (3) must, unless the Minister

directs otherwise, be compounded monthly in respect of the period for

which it is computed.

Multiple ownership

12(1) If a person is registered as owner under the Land Titles Act of a

specified undivided interest of less than the whole in a taxable mineral

right,

(

a) tax is payable, and

(

b) any proceedings authorized with respect to the taxable

mineral right may be taken

with respect to the interest of that person in the taxable mineral right in

the same manner as if that person owned the taxable mineral right in

the whole of the tract and without regard to any other owner of an

interest in the taxable mineral right in the same tract.

(2) If more than one person is registered under the Land Titles Act as

owner jointly or in common

(

a) of a taxable mineral right, or

(

b) of a specified undivided interest of less than the whole in a

taxable mineral right,

all those persons are regarded as one owner for the purposes of the Act

and this Regulation.

(3) This

section applies to the 2010 and subsequent taxation years.

Part 3

Administration and Enforcement

Requirement to keep records

13(1) For the purposes of

section 7 of the Act, the following persons

are required to keep the records referred to in subsection (2):

(

a) owners of the taxable mineral right;

(

b) recorded lessees in respect of the taxable mineral right;

(

c) production entity administrators in respect of the taxable

mineral right;

(

d) designated payors in respect of the taxable mineral right;

(

e) former owners, recorded lessees, production entity

administrators, or designated payors in respect of the taxable

mineral right.

(2) The records required to be kept by a person referred to in

subsection (1) are those records that come into the possession of that

person or that person's agents and that relate to

(

a) the quantity of the minerals recovered from the tract for the

taxable mineral right concerned,

(

b) the sale or other disposition of those minerals, or products

obtained by processing those minerals,

(

c) the cost of recovering and processing those minerals and the

cost of transportation of those minerals or those products,

(

d) the payment of royalties to the owner of the taxable mineral

right, or

(

e) the payment of tax under the Act.

(3) If the owner of a taxable mineral right has no place of business in

Alberta, the owner may keep the records required to be kept by that

owner

(

a) at the owner's residence in Alberta, or

(

b) at the place of business in Alberta of a person appointed as

the owner's agent for the purpose.

Penalty for failing to comply with Minister's direction

14(1) If a person contravenes

section 8 of the Act by failing to

comply with a direction of the Minister to submit a written return

within the time stated in the direction, the Minister may assess a

penalty against the person under

section 8.1 of the Act that must not

exceed

(a) $10 000 in respect of the first day of the default period, and

(b) $1000 in respect of the 2nd and each subsequent day of the

default period.

(2) The "default period" for the purposes of subsection (1) is the

period

(

a) commencing on the day after the expiration of the date

specified by the Minister in the direction given pursuant to

section 8 of the Act for the written return to be submitted to

the Minister, and

(

b) ending on the day immediately before the day on which the

written return is submitted to the Minister.

(3) The notice of assessment must specify the return to which the

notice relates and may be

(

a) personally delivered to the person that is to receive it, or

(

b) sent by registered mail to person that is to receive it at the

person's most recent address as shown in the records of the

Department.

Confidentiality

15(1) Information or records obtained with respect to a taxable

mineral right by the Minister or a person employed or engaged in the

administration or enforcement of the Act may be communicated,

disclosed or made available in any legal proceedings under the Act

with respect to the taxable mineral right or proceedings in respect of

offences under the Act.

(2) Information or records obtained by the Minister or a person

employed or engaged in the administration or enforcement of the Act

may be communicated, disclosed or made available to a person

employed in or acting on behalf of the Department for the purpose of

evaluating, formulating or administering any policy or program of the

Department.

(3) Subject to subsection (4), a person employed or engaged in the

administration of the Act may communicate, disclose or make

available information or records in respect of a taxable mineral right to

(

a) the owner of the taxable mineral right or the owner's

successor in title;

(

b) the production entity administrator in respect of the taxable

mineral right;

(

c) a recorded lessee in respect of the taxable mineral right;

(

d) a person who pays or is liable to pay all or part of the tax in

respect of the taxable mineral right by reason of a contractual

obligation to do so;

(

e) anyone acting on behalf of a person referred to in clause (

a) to (d);

(

f) anyone who has the written consent of a person referred to in

clause (

a) to (

d) to receive or examine the information or

records;

(

g) a person to whom a copy of a default notice is mailed

pursuant to

section 13(1)(

b) of the Act.

(4) Information or records may not be communicated, disclosed or

made available to a person referred to in subsection (3)(

b) to (

f) unless

(

a) the Minister is satisfied that the person is entitled to the

records or information under subsection (3)(

b) to (f), and

(

b) that person's entitlement to the records or information has

neither expired nor been terminated to the knowledge of the

Minister.

(5) For the purposes of subsection (4)(b), the Minister is not

considered to have knowledge of the expiration or termination of a

person's entitlement to records or information under subsection (3)(

b) to (

f) unless

(

a) evidence furnished to the Minister pursuant to subsection

(4)(

a) shows the date of expiration of the entitlement, or

(

b) the Minister receives evidence satisfactory to the Minister of

the expiration or termination of the entitlement.

Service of documents

16 Unless otherwise provided by the Act or this Regulation, any

document required to be given, provided, sent, communicated or

served by the Minister under the Act may be

(

a) personally delivered to the person or company that is to

receive it,

(

b) sent by courier, regular mail or registered mail to person or

company that is to receive it at the person's or company's

most recent address as shown in the records of the

Department, or

(

c) sent by electronic means through the Electronic Transfer

System to the person or company that is to receive it.

Part 4

Repeal, Expiry and Coming into Force

Repeal

17 The Freehold Mineral Rights Tax Regulation (AR 12/84) is

repealed.

Expiry

18 For the purpose of ensuring that this Regulation is reviewed, with

the option that it may be repassed in its present or an amended form

following a review, this Regulation expires on January 31, 2018.

Schedule A

Calculation of Tax on Petroleum Rights

Interpretation

1 In this Schedule,

(a) "taxable quantity" in respect of a mineral means the quantity

of that mineral that was recovered from a well event in a

taxation year and allocated to a petroleum right in respect of

that taxation year;

(

b) a reference to a quantity of a mineral that was recovered from

a well event means the quantity of that mineral that was

recovered from the well event according to the records of the

Alberta Energy Regulator.

Categories and densities of crude oil

2(1) The categories of crude oil and the density of each category are

as specified in the following Table:

Crude Oil Category and Density Table

Category of Crude Oil

Density

light oil

less than 900 kilograms per cubic

metre

heavy oil

greater than or equal to 900

kilograms per cubic metre

(2) The category for crude oil recovered from a well event during a

taxation year is determined by the Minister based on density

information available to the Minister.

(3) If density information is not available to make a determination

under subsection (2), the category for crude oil recovered from a well

event during a month is light oil.

Calculation of tax payable

3(1) For each taxable quantity of crude oil, solution gas or crude

bitumen the Minister shall calculate the following factors in

accordance with this Schedule:

(

a) the light crude oil factor;

(

b) the heavy crude oil factor;

(

c) the solution gas factor;

(

d) the crude bitumen factor.

(2) For the purposes of

section 4 of the Regulation, the tax payable in

respect of a petroleum right for a taxation year is the sum of the factors

calculated under subsection (1) for each of the taxable quantities of

crude oil, solution gas and crude bitumen that were allocated to the

petroleum right in respect of that taxation year.

Calculation of light crude oil factor for a taxable quantity

4(1) The light crude oil factor for the light crude oil that was

recovered from a well event in a taxation year and allocated to a

petroleum right in respect of that taxation year is the amount calculated

in accordance with the following equation:

LCOF$ = R% x M x UV x (TQ/Q)

where

LCOF$ is the light crude oil factor, in dollars;

R% is the percentage rate of tax prescribed by

section 8 of this

Schedule for light crude oil for the taxation year;

M is the quantity of light crude oil that was recovered from that

well event in the taxation year, adjusted in accordance with

subsection (2);

UV is the unit value for light crude oil for the taxation year

established by the Minister under

section 3 of the Regulation;

TQ is the quantity of light crude oil that was recovered from the

well event in the taxation year and allocated to the petroleum

right, in cubic metres;

Q is the quantity of light crude oil that was recovered from the

well event in the taxation year, in cubic metres.

(2) For the purposes of subsection (1), M is determined by adjusting

the quantity of light crude oil that was recovered from the well event in

the taxation year in accordance with the following Table:

Adjustment for Quantity Table

Quantity of light

crude oil recovered

from well event in

taxation year

Adjustment Formula

greater than zero and

less than 2288.4

cubic metres

M = (light crude oil x 0.0833)2 ö 105.94

equal to or greater

than 2288.4 cubic

metres

M = (light crude oil ö 4) - 228.84

Calculation of heavy crude oil factor for a taxable quantity

5(1) The heavy crude oil factor for the heavy crude oil that was

recovered from a well event in a taxation year and allocated to a

petroleum right in respect of that taxation year is the amount calculated

in accordance with the following equation:

HCOF$ = R% x M x UV x (TQ /Q)

where

HCOF$ is the heavy crude oil factor, in dollars;

R% is the percentage rate of tax prescribed by

section 8 of this

Schedule for heavy crude oil for the taxation year;

M is the quantity of heavy crude oil that was recovered from

that well event in the taxation year, adjusted in accordance

with subsection (2);

UV is the unit value for heavy crude oil for the taxation year

established by the Minister under

section 3 of the Regulation;

TQ is the quantity of heavy crude oil that was recovered from the

well event in the taxation year and allocated to the petroleum

right, in cubic metres;

Q is the quantity of heavy crude oil that was recovered from the

well event in the taxation year, in cubic metres.

(2) For the purposes of subsection (1), M is determined by adjusting

the quantity of heavy crude oil that was recovered from the well event

in the taxation year in accordance with the following Table:

Adjustment for Quantity Table

Quantity of heavy

crude oil

recovered from

well event in

taxation year

Adjustment Formula

greater than zero and

less than 2288.4

cubic metres

M = (heavy crude oil x 0.0833)2 ö 105.94

equal to or greater

than 2288.4 cubic

metres

M = (heavy crude oil ö 4) - 228.84

Calculation of solution gas factor for a taxable quantity

6 The solution gas factor for the solution gas that was recovered from

a well event in a taxation year and allocated to a petroleum right in

respect of that taxation year is the amount calculated in accordance

with the following equation:

SGF$ = R% x Q x UV x (TQ /Q)

where

SGF$ is the solution gas factor, in dollars;

R% is the percentage rate of tax prescribed by

section 8 of this

Schedule for solution gas for the taxation year;

Q is the quantity of solution gas recovered from the well event

in the taxation year, in thousand cubic metres;

UV is the unit value for solution gas for the taxation year

established by the Minister under

section 3 of the Regulation;

TQ is the quantity of solution gas that was recovered from the

well event in the taxation year and allocated to the petroleum

right, in thousand cubic metres.

Calculation of crude bitumen factor for a taxable quantity

7(1) The crude bitumen factor for the crude bitumen that was

recovered from a well event in a taxation year and allocated to a

petroleum right in respect of that taxation year is the amount calculated

in accordance with the following equation:

CBF$ = R% x M x UV x (TQ /Q)

where

CBF$ is the crude bitumen factor, in dollars;

R% is the percentage rate of tax prescribed by

section 8 of this

Schedule for crude bitumen for the taxation year;

M is the quantity of crude bitumen that was recovered from that

well event in the taxation year, adjusted in accordance with

subsection (2);

UV is the unit value for crude bitumen for the taxation year

established by the Minister under

section 3 of the Regulation;

TQ is the quantity of crude bitumen that was recovered from the

well event in the taxation year and allocated to the petroleum

right, in cubic metres;

Q is the quantity of crude bitumen that was recovered from the

well event in the taxation year, in cubic metres.

(2) For the purposes of subsection (1), M is determined by adjusting

the quantity of crude bitumen that was recovered from the well event

in the taxation year in accordance with the following Table:

Adjustment for Quantity Table

Quantity of crude

bitumen recovered

from well event in

taxation year

Adjustment Formula

greater than zero and

less than 2288.4 cubic

metres

M = (crude bitumen x 0.0833)2 ö 105.94

equal to or greater

than 2288.4 cubic

metres

M = (crude bitumen ö 4) - 228.84

Rate of tax

8(1) For the purposes of

section 4 of this Schedule, the rate of tax in

respect of light crude oil is 26.9 %.

(2) For the purposes of

section 5 of this Schedule, the rate of tax in

respect of heavy crude oil is 26.9 %.

(3) For the purposes of

section 6 of this

Schedule the rate of tax in

respect of solution gas is 6.9 %.

(4) For the purposes of

section 7 of this Schedule, the rate of tax in

respect of crude bitumen is 26.9%.

Schedule B

Calculation of Tax on Natural Gas Rights

Interpretation

1 In this Schedule,

(a) "taxable quantity" in respect of a mineral means the quantity

of that mineral that was recovered from a well event in a

taxation year and allocated to a natural gas right in respect of

that taxation year;

(

b) a reference to a quantity of a mineral that was recovered from

a well event means the quantity of that mineral that was

recovered from the well event according to the records of the

Alberta Energy Regulator.

Calculation of tax payable

2(1) For each taxable quantity of raw gas or condensate the Minister

shall calculate the following factors in accordance with this Schedule:

(

a) the gas factor;

(

b) the condensate factor.

(2) For the purposes of

section 4 of the Regulation the tax payable in

respect of a natural gas right for a taxation year is the sum of the

factors calculated under subsection (1) for each of the taxable

quantities of raw gas and condensate that were allocated to the natural

gas right in respect of that taxation year.

Calculation of gas factor for a taxable quantity

3(1) The gas factor for the raw gas that was recovered from a well

event in a taxation year and allocated to a natural gas right in respect of

that taxation year is the amount calculated in accordance with the

following equation:

FGF$ = [R% - rQ%] x Q x UV x (TQ /Q)

where

FGF$ is the gas factor, in dollars;

R% is the percentage rate of tax prescribed by

section 5 of this

Schedule for raw gas for the taxation year;

rQ% is the rate for quantity, determined in accordance with

subsection (2);

Q is the quantity of raw gas that was recovered from that well

event in the taxation year, in thousand cubic metres;

UV is the unit value for raw gas for the taxation year established

by the Minister under

section 3 of the Regulation;

TQ is the quantity of raw gas that was recovered from the well

event in the taxation year and allocated to the natural gas

right, in thousand cubic metres.

(2) For the purposes of subsection (1), rQ% is calculated in accordance

with the formula in the following Table, where

R% is the percentage rate of tax prescribed by

section 5 of this

Schedule for raw gas for the taxation year;

ADP is the average daily production of raw gas for the well event:

Rate for Quantity Table

Quantity

Formula

ADP less than

16.9 thousand cubic

metres per day

rQ% = [(R% - 1%) x (16.9 - ADP)2]

(16.9)2

ADP equal to or

greater than

16.9 thousand cubic

metres per day

rQ% = 0

Calculation of condensate factor for a taxable quantity

4(1) The condensate factor for the condensate that was recovered

from a well event in a taxation year and allocated to a natural gas right

in respect of that taxation year is the amount calculated in accordance

with the following equation:

FCF$ = R% x M x UV x (TQ /Q)

where

FCF$ is the condensate factor, in dollars;

R% is the percentage rate of tax prescribed by

section 5 of this

Schedule for condensate for the taxation year;

M is the quantity of condensate that was recovered from that

well event in the taxation year, adjusted in accordance with

subsection (2);

UV is the unit value for condensate for the taxation year

established by the Minister under

section 3 of the Regulation;

TQ is the quantity of condensate that was recovered from the

well event in the taxation year and allocated to the natural

gas right, in cubic metres;

Q is the quantity of condensate that was recovered from the

well event in the taxation year, in cubic metres.

(2) For the purposes of subsection (1), M is determined by adjusting

the quantity of condensate that was recovered from the well event in

the taxation year in accordance with the following Table:

Adjustment for Quantity Table

Quantity of

condensate recovered

from well event in

taxation year

Adjustment Formula

greater than zero and

less than 2288.4 cubic

metres

M = (condensate x 0.0833)2 ö 105.94

equal to or greater

than 2288.4 cubic

metres

M = (condensate ö 4) - 228.84

Rate of tax

5(1) For the purposes of

section 3 of this Schedule, the rate of tax in

respect of raw gas is 6.9 %.

(2) For the purposes of

section 4 of this Schedule, the rate of tax in

respect of condensate is 26.9 %.

--------------------------------

Alberta Regulation 224/2013

Mines and Minerals Act

PETROLEUM AND NATURAL GAS TENURE AMENDMENT REGULATION

Filed: December 4, 2013

For information only: Made by the Lieutenant Governor in Council (O.C. 397/2013)

on December 4, 2013 pursuant to sections 5 and 83 of the Mines and Minerals Act.

1 The Petroleum and Natural Gas Tenure Regulation

(AR 263/97) is amended by this Regulation.

Section 1 is amended

(

a) by repealing clause (m.1) and substituting the

following:

(m.1) "minimum depth" means

(i) 75 metres of measured depth, or

(ii) a lesser measured depth approved by the Minister

under

section 9(3);

(

b) in clause (

p) by adding ", penalty" after "fee";

(

c) by adding the following after clause (t):

(t.1) "shallowest productive zone", with reference to a

spacing unit containing the whole or a part of the

location of a lease continued pursuant to

section 15(1),

means the shallowest of the zones in the spacing unit to

which the continuation extends under

section 15(2);

(

d) by adding the following after clause (v):

(v.1) "unused earned section" means one of the number of

sections of land

(

i) that the Minister has determined under

Schedule 2

has been earned by a validating well, and

(ii) that has not been used to validate a

section of land

as qualified to remain in the location of a licence;

Section 6 is amended by repealing subsections (2) and

(3) and substituting the following:

(2) If

(

a) the drilling of a well is commenced before the expiration of

the initial term of the licence,

(

b) the rig release date for the well occurs after the expiration of

the initial term of the licence,

(

c) the drilling operations for the well are conducted diligently

and continuously to the satisfaction of the Minister, and

(

d) the well

(

i) is or may be approved as a validating well in respect of

the licence, or

(ii) will, after the rig release date for the well occurs, have

unused earned sections of land that will meet the

requirements of

section 11.1 in respect of that licence,

the initial term of the licence is extended to the expiration of the

one-month period following the rig release date for the well and the

licensee may submit evidence in respect of that well before that

period expires.

(3) If a licensee of a licence that has been extended under subsection

(2) commences the drilling of a well in the location of the licence

during the period of the extension of the term under subsection (2),

except a well that is, by reason of

section 26, deemed to be the

continuation of the drilling of a well referred to in subsection (2), the

well does not qualify as a validating well.

Section 9 is repealed and the following is substituted:

Validating wells

9(1) Subject to subsection (5), the following qualify as validating

wells in respect of a licence:

(

a) a well that is drilled in the location of the licence during the

initial term of the licence if the well

(

i) is drilled within the location of the licence for at least 75

metres, and

(ii) is drilled for the purpose of evaluating petroleum and

natural gas rights in the location of the licence;

(

b) a well that is drilled in the location of the licence and that has

been re-entered during the initial term of the licence if, after

the re-entry, the well

(

i) is drilled within the location of the licence for at least 75

metres, and

(ii) is drilled for the purpose of evaluating petroleum and

natural gas rights in the location of the licence;

(

c) a well that is drilled outside the location of the licence during

the initial term of the licence if

(

i) the well is drilled in a spacing unit part of which is in

the location of the licence, and

(ii) the well is drilled for at least 75 metres and, in the

opinion of the Minister, evaluates the petroleum and

natural gas rights in the location of the licence;

(

d) a well that is drilled outside the location of the licence and

that has been re-entered during the initial term of the licence

(

i) the well is drilled in a spacing unit part of which is in

the location of the licence, and

(ii) after the re-entry, the well is drilled for at least 75

metres and, in the opinion of the Minister, evaluates the

petroleum and natural gas rights in the location of the

licence;

(

e) a well approved by the Minister as a validating well pursuant

to subsection (2), (3) or (4).

(2) The Minister may approve a well as a validating well in respect

of a licence if

(

a) the licensee applies for the approval before the drilling of the

well is commenced,

(

b) the well is drilled during the initial term of the licence

(

i) in a spacing unit no part of which is within the location

of the licence, and

(ii) in the location of a lease or in the location of a licence,

(

c) the well is drilled for at least 75 metres and, in the opinion of

the Minister, evaluates the petroleum and natural gas rights in

the location of the licence, and

(

d) the Minister is satisfied through evidence from the licensee

or otherwise that all of the other criteria that the Minister

may establish for the drilling of the well as a validating well

have been met.

(3) The Minister may approve a well that is drilled less than 75

metres as required under subsection (1) as a validating well in

respect of a licence if

(

a) the well has been drilled or re-entered during the initial term

of the licence

(

i) in the location of the licence, or

(ii) outside the location of the licence in a spacing unit part

of which is in the location of the licence,

and

(

b) the Minister is of the opinion that

(

i) the well is productive

(

A) from a zone that occurs within the location of the

licence, and

(

B) in the case of a well that has been re-entered, from

a zone that occurs within the metres that have been

drilled in the well after re-entry,

(ii) there are exceptional circumstances that prevented the

lessee from drilling at least 75 metres in the location of

the licence.

(4) The Minister may approve a well that does not meet the

requirements of subsection (1), (2) or (3) as a validating well in

respect of a licence if

(

a) the well is re-entered during the initial term of the licence

and was drilled

(

i) in the location of the licence, or

(ii) outside the location of the licence in a spacing unit part

of which is in the location of the licence,

and

(

b) the well becomes a productive well in a zone within the

location of the licence.

(5) A well referred to in subsection (1)(b), (1)(d), (3) or (4) may

qualify as a validating well under this

section only on the basis of

one re-entry operation.

Section 10 is repealed.

Section 11 is amended

(

a) by repealing subsection (2) and substituting the

following:

(2) An application under subsection (1) must

(

a) be received by the Minister within the 3-month period

before the expiration of the initial term of the licence,

not including any extension of that period under

section

6(2),

(

b) identify each well that the licensee is applying to use as

a validating well in respect of the licence and provide

sufficient evidence to demonstrate that each well is a

validating well,

(

c) for each well referred to in clause (

b) that is a multileg

well, identify

(

i) the wellbore that the licensee is applying to use as

the validating well and that the Minister is to use

under subsection (4)(

a) to determine the measured

depth of the well, and

(ii) the wellbore that the Minister is to use under

subsection (8) to determine the zone that is

penetrated by the well,

(

d) identify each validating well that has unused earned

sections that the licensee is applying to use in respect of

the licence and provide sufficient evidence to

demonstrate that the requirements of

section 11.1 are

met,

(

e) identify each well referred to in

section 6(2)(d)(ii) that

will earn sections of land that the licensee is applying to

use in respect of the licence, and provide sufficient

evidence to demonstrate that the requirements of

section

11.1 will be met,

(

f) show the licensee's selection of the sections of land

requested for validation, which shall not exceed the

number of sections that may remain in the location of

the licence at the commencement of the intermediate

term in accordance with

Schedule 2, and

(

g) provide sufficient evidence to show the deepest zone in

which rights may, in accordance with subsection (8), be

validated under this section.

(

b) in subsection (3)

(

i) by striking out "or grouping well" in that portion

preceding clause (a);

(ii) in clause (a)(ii) by adding "prescribed rental for the

licence and the" after "on payment of the";

(

c) in subsection (3.1) by striking out "period of time

within which the licensee is entitled to respond" and

substituting "deadline before which the licensee may

respond";

(

d) by repealing subsections (4) and (5) and

substituting the following:

(4) In granting an application made under this section, the

Minister

(

a) shall determine

(

i) in accordance with the criteria established by the

Minister, the measured depth of each validating

well identified in the application and the number of

sections of land earned by the well under

Schedule

(ii) the number of sections of land to remain in the

location of the licensee's licence at the

commencement of the intermediate term of the

licence, and

(iii) in accordance with subsection (8), the rights that

may be validated under this section,

and

(

b) may determine the configuration of the location of the

licence at the commencement of its intermediate term.

(

e) by repealing subsection (5.1) and substituting the

following:

(5.1) The Minister shall not make a final decision in respect of

an application made under subsection (1) until

(

a) after the expiry of the initial term of the licence, and

(

b) if a notice was given under subsection (3.1), after the

Minister receives a response to the notice or, if no

response is received, the deadline specified in the notice

passes.

(

f) in subsection (8) by striking out "or grouping well, as

the case may be" wherever it occurs.

7 The following is added after

section 11:

Requirements for use of unused earned sections

11.1 A licensee may apply under

section 11 for validation of a

section of land in the location of a licence using an unused earned

section if all of the following apply:

(

a) the unused earned

section was determined by the Minister

under

Schedule 2 in respect of a validating well, other than a

validating well approved under

section 9(4);

(

b) the validating well was drilled or re-entered during the initial

term of that licence;

(

c) the location of that licence is separated from the location of

the licence that contains the validating well by not more than

one intervening

section at their closest points;

(

d) where the validating well is located

(

i) in the location of that licence, the validating well

evaluates petroleum and natural gas rights in the

location of the licence, or

(ii) outside the location of that licence, in the opinion of the

Minister the validating well evaluates petroleum and

natural gas rights in the location of the licence.

Section 12 is amended by striking out "Sections 14 to 18"

and substituting "Sections 13.1 to 18".

9 The following is added after the heading "Continuation

of Leases":

Interpretation

13.1 For the purposes of this Part, a reference to the term of a lease

includes any period during which the term of the lease is continued

or extended under this Regulation or extended under

section 8(1)(

h) of the Act.

Cancellation

13.2 For the purposes of

section 82(2) of the Act, a notice given

by the Minister under

section 14(6), 14.1(5) or 14.2(5) shall set out

the parts of the location of a lease that have ceased to qualify for

continuation under this Part that will be cancelled by the Minister.

Section 14 is amended

(

a) in subsection (5)(a)

(

i) in subclause (

i) by striking out "and (2)(a)";

(ii) in subclause (ii) by striking out "and (2)(e)";

(

b) in subsection (6)(a)

(

i) in subclause (

i) by striking out "and (2)(a)";

(ii) in subclause (ii) by striking out "and (2)(c)";

(

c) in subsection (7)

(

i) in clause (

a) by striking out "and (2)(b)";

(ii) in clause (

b) by striking out "and (2)(d)".

Section 14 is repealed and the following is substituted:

Application for continuation

14(1) A lessee may apply to the Minister for the continuation of a

lease pursuant to

section 15, 16 or 17, or any combination of those

sections

(

a) within the last year of the term of the lease, or

(

b) with the consent of the Minister, at any time before the last

year of the term of the lease.

(2) On receipt of an application under subsection (1), the Minister

shall determine

(

a) whether the lease qualifies for continuation as to the whole or

part of the location of the lease in respect of which the

application is made, and

(

b) if any part of the location of the lease is not included in the

application, whether the lease qualifies for continuation

pursuant to

section 14.1 as to that part.

(3) If the Minister determines under subsection (2)(

a) that a lease

qualifies or does not qualify for continuation with respect to any part

of the location of the lease that is included in the application, the

Minister shall give a notice to the lessee that

(

a) sets out what the Minister has determined under subsection

(2)(a), and

(

b) in the case of a determination that a lease does not qualify for

continuation with respect to any part of the lease that is

included in the application, specifies the deadline by which

the lessee may respond to the notice.

(4) The Minister shall not make a final decision in respect of an

application made under subsection (1) until

(

a) after the expiry of the term of the lease, and

(

b) if a notice was given under subsection (3) that requires a

response, after the Minister receives a response to the notice

or, if no response is received, the deadline specified in the

notice passes.

(5) If the Minister determines under subsection (2)(

a) that the lease

qualifies for continuation as to the whole or part of its location in

accordance with the application, the Minister shall continue the lease

with respect to the whole or that part of its location.

(6) On making a final decision in respect of an application made

under subsection (1), the Minister shall give notice of the decision to

the lessee.

No application for continuation

14.1(1) Where no application is made under

section 14 in respect of

a lease before the expiration of its term, or where an application is

made under

section 14 but it omits a reference to a part of the

location of the lease, the Minister shall review the Department's

records after the expiration of the term of the lease to determine

whether the lease

(

a) must be continued as to the whole or part of its location

pursuant to

section 15(1)(

b) or (d), or

(

b) may be continued as to the whole or part of its location

pursuant to

(i)

section 15(1)(

a) on the basis of a producing well,

(ii)

section 15(1)(c), or

(iii)

section 16(4) on the basis of a qualifying well

(

A) that is drilled in the location of the lease or in a

section of land containing the whole or part of the

location of the lease, and

(

B) in respect of which the rig release date has not

occurred at the expiration of the term of the lease.

(2) If the Minister determines under subsection (1)(

a) that a lease

must be continued as to the whole or part of its location, the Minister

shall continue the lease as to the whole or part of its location, as the

case may be in accordance with

section 15(2).

(3) If the Minister determines under subsection (1)(

b) that the lease

may be continued as to the whole or part of its location, the Minister

shall send the lessee a notice that

(

a) describes the Minister's determination,

(

b) states that the lessee may, within the one-month period

following the date of the notice, apply to the Minister for

continuation of the lease as to the whole or part of its location

as set out in the notice in accordance with the Minister's

determination, and

(

c) states that the lessee must pay the prescribed rental for the

lease and the prescribed late application penalty.

(4) If a lessee makes an application that complies with a notice sent

under subsection (3), the Minister shall continue the lease as to the

whole or part of its location in accordance with the application.

(5) On making a final decision under subsection (1), the Minister

shall give a notice of the decision to the lessee.

Late application for continuation

14.2(1) After the expiration of the term of a lease, the lessee may

apply to the Minister for continuation of the lease as to the whole or

any part of its location that

(

a) was not included in an application for continuation under

section 14, and

(

b) was not referred to in a notice sent to the lessee pursuant to

section 14.1(3).

(2) An application under this

section must be made within 60 days

after the latest of whichever of the following is applicable:

(

a) the date of a notice sent to the lessee respecting the lease

under

section 14.1(3);

(

b) the date of a report or letter sent by the Minister to the lessee

respecting the expiration of the lease as to the whole or any

part of its location, as the case may be;

(

c) the date of a letter that is sent by the Minister to the lessee

advising that the Minister has notified the Regulator of the

need to abandon a well in the location.

(3) The lessee must

(

a) include with the application evidence, satisfactory to the

Minister, that the lease qualifies for continuation as to the

whole or part of its location specified in the application

pursuant to

(i)

section 15(1)(a)(ii) on the basis of a producing well,

(ii)

section 15(1)(c), or

(iii)

section 16(4) on the basis of a qualifying well that is

drilled in the location of the lease or in a

section of land

containing the whole or part of the location of the lease,

and

(

b) pay the prescribed rental for the lease and the prescribed late

application penalty.

(4) If the lessee makes an application that complies with this

section

and the Minister is satisfied that the lease qualifies for continuation

as to the whole or part of its location pursuant to

(a)

section 15(1)(a)(ii) or (c), the Minister shall continue the

lease in accordance with

section 15(2), or

(b)

section 16(4) on the basis of a qualifying well referred to in

subsection (3)(a)(iii), the Minister shall continue the lease in

accordance with

section 16(4).

(5) On making a final decision in respect of an application made

under subsection (1), the Minister shall give notice of the decision to

the lessee.

Section 15(2) is repealed and the following is

substituted:

(2) The continuation of a lease as to the whole or part of its location

that is within a spacing unit referred to in subsection (1) shall be

granted

(

a) down to the base of whichever of the following zones is

stratigraphically the deepest in that spacing unit:

(

i) the deepest zone from which the well is productive, in

the case of a lease that is continued on the basis of a

productive well pursuant to subsection (1)(a);

(ii) the deepest zone that is subject to a unit agreement, in

the case of a lease that is continued pursuant to

subsection (1)(b);

(iii) the offset zone from which the freehold well is

producing petroleum or natural gas, in the case of a

lease that is continued on the basis of a freehold well

pursuant to subsection (1)(c);

(iv) the deepest zone that is subject to a gas storage

agreement, in the case of a lease that is continued

pursuant to subsection (1)(d);

(

v) the deepest productive zone, in the case of a lease that is

continued pursuant to subsection (1)(e),

and

(

b) up to the top of whichever of the following zones is

stratigraphically the shallowest in that spacing unit:

(

i) the shallowest zone from which the well is productive,

in the case of a lease that is continued on the basis of a

productive well pursuant to subsection (1)(a);

(ii) the shallowest zone that is subject to a unit agreement,

in the case of a lease that is continued pursuant to

subsection (1)(b);

(iii) the offset zone from which the freehold well is

producing petroleum or natural gas, in the case of a

lease that is continued on the basis of a freehold well

pursuant to subsection (1)(c);

(iv) the shallowest zone that is subject to a gas storage

agreement, in the case of a lease that is continued

pursuant to subsection (1)(d);

(

v) the shallowest productive one, in the case of a lease that

is continued pursuant to subsection (1)(e).

Section 15 is repealed and the following is substituted:

Qualification for continuation

15(1) Subject to subsection (2), a lease qualifies for continuation

pursuant to

section 14, 14.1 or 14.2 as to a part of its location that is

within any of the following:

(

a) the spacing unit for a well that is

(

i) productive from a zone in the location, in the case of

section 14, or

(ii) producing petroleum or natural gas from a zone in the

location, in the case of

section 14.1 or 14.2;

(

b) a spacing unit all or part of which is within the unit area of a

unit agreement to which the lease is subject;

(

c) a spacing unit adjoining the spacing unit for a freehold well if

(

i) in accordance with this Regulation and before the

expiry of the term of the lease, the lessee has notified

the Minister in writing that the lessee elects to pay

offset compensation in respect of the location or the part

of the location within the spacing unit, and

(ii) offset compensation is being paid in respect of the

location or the part of the location within the spacing

unit;

(

d) a spacing unit all or part of which is within the area of a gas

storage agreement to which the lease is subject;

(

e) a spacing unit all or part of which is productive from a zone

in the location.

(2) The continuation of a lease as to the whole or part of its location

that is within a spacing unit referred to in subsection (1) shall be

granted

(

a) down to the base of whichever of the following zones is

stratigraphically the deepest in that spacing unit:

(

i) the deepest zone from which the well is

(

A) productive, in the case of a lease that is continued

on the basis of a productive well pursuant to

subsection (1)(a)(i), or

(

B) producing petroleum or natural gas, in the case of a

lease that is continued on the basis of a producing

well pursuant to subsection (1)(a)(ii);

(ii) the deepest zone that is subject to a unit agreement, in

the case of a lease that is continued pursuant to

subsection (1)(b);

(iii) the offset zone from which the freehold well is

producing petroleum or natural gas, in the case of a

lease that is continued on the basis of a freehold well

pursuant to subsection (1)(c);

(iv) the deepest zone that is subject to a gas storage

agreement, in the case of a lease that is continued

pursuant to subsection (1)(d);

(

v) the deepest productive zone, in the case of a lease that is

continued pursuant to subsection (1)(e),

and

(

b) up to the top of whichever of the following zones is

stratigraphically the shallowest in that spacing unit:

(

i) the shallowest zone from which the well is

(

A) productive, in the case of a lease that is continued

on the basis of a productive well pursuant to

subsection (1)(a)(i), or

(

B) producing petroleum or natural gas, in the case of a

lease that is continued on the basis of a producing

well pursuant to subsection (1)(a)(ii);

(ii) the shallowest zone that is subject to a unit agreement,

in the case of a lease that is continued pursuant to

subsection (1)(b);

(iii) the offset zone from which the freehold well is

producing petroleum or natural gas, in the case of a

lease that is continued on the basis of a freehold well

pursuant to subsection (1)(c);

(iv) the shallowest zone that is subject to a gas storage

agreement, in the case of a lease that is continued

pursuant to subsection (1)(d);

(

v) the shallowest productive zone, in the case of a lease

that is continued pursuant to subsection (1)(e).

Section 16 is repealed and the following is substituted:

Continuation because of drilling

16(1) For the purposes of this section,

(

a) a well is a "qualifying well" in relation to a lease if all of the

following apply at the expiration of the term of the lease:

(

i) the drilling of the well has commenced and the rig

release date for the well has not yet occurred, or the rig

release date for the well occurred not more than 3

months before the date of the expiration of the term of

the lease;

(ii) in the opinion of the Minister, the well has or will

evaluate petroleum and natural gas rights in the location

of the lease;

(iii) the well has not previously been used as a qualifying

well for continuation of any lease as to the whole or a

part of its location pursuant to this section;

(iv) if the lease was previously continued as to the whole or

part of its location pursuant to this section, the well is

drilled in a

section of land that contains a portion of the

previously continued location;

(

b) the "qualifying area" in relation to a well that is a qualifying

well in respect of a lease is

(

i) the location of the lease, if the qualifying well is drilled

in the location of the lease or in a

section of land

containing the whole or part of the location of the lease,

(ii) if the qualifying well is drilled outside the location of

the lease, the portions of the location of the lease that

are contained within the sections of land that

(

A) adjoin the

section containing the well, or

(

B) are, at their closest points, less than one

intervening

section from the

section containing the

well;

(c) "previously continued location" means the whole or part of

the location of one or more leases that have been continued

pursuant to this

section on the basis of a single qualifying

well.

(2) If at the expiration of the term of a lease there is a qualifying

well in respect of the lease, the lease qualifies for continuation on

application under

section 14 as follows:

(

a) if the lease was not previously continued as to the whole or

part of its location pursuant to this section, the Minister shall

continue the lease as to parts of its location that are contained

in not more than 9 sections of land within the qualifying area

of that well;

(

b) if the lease was previously continued as to the whole or part

of its location pursuant to this section, the Minister shall

continue the previously continued location, except for any

portions of the previously continued location that have been

surrendered or that have been continued pursuant to

section

(3) If a well is a qualifying well in relation to more than one lease,

the Minister may, in accordance with subsection (2), continue all or

portions of some or all of the leases.

(4) If at the expiration of the term of a lease there is a qualifying

well in relation to the lease that is described in

section 14.1(1)(b)(iii)

or 14.2(3)(a)(iii), the lease qualifies to be continued under

section

14.1 or 14.2 as to the location or part of the location, as the case may

be, contained in the

section of land in which the qualifying well is

drilled.

(5) Where a lease is continued pursuant to this

section as to the

whole or part of its location, the whole or part of its location so

continued expires at the end of the 6-month period following

(

a) the rig release date of the qualifying well, or

(

b) where there are 2 or more qualifying wells in respect of a

previously continued location, the rig release date of the well

with the latest rig release date.

(6) If a lease is continued pursuant to this section, the Minister may

from time to time grant an extension of that continuation period

subject in the case of each extension to the following:

(

a) the lessee must apply to the Minister for the extension before

the continuation period expires;

(

b) the application will be granted only if the Minister considers

the extension warranted in the circumstances.

Section 17 is repealed and the following is substituted:

Continuation in respect of potentially productive wells

17(1) Subject to subsection (8), a lease qualifies for continuation as

to the whole or part of its location that is contained in up to 9

sections of land described in subsection (2) that are selected by the

lessee on the basis of a well that

(

a) is productive, or

(

b) in the opinion of the Minister, is potentially productive.

(2) Each

section of land that the lessee may select with respect to a

well must

(

a) contain the well, or

(

b) adjoin or, at its closest point, be less than one intervening

section from the

section that contains the well.

(3) If a lessee applies under

section 14 for continuation of a lease as

to the whole or part of its location pursuant to this section, the

application must in respect of each well to which the application

pertains,

(

a) include evidence satisfactory to the Minister that the well

(

i) is productive or potentially productive, and

(ii) has or will evaluate petroleum and natural gas rights in

the location of the lease,

and

(

b) set out the sections of land that the lessee has selected on the

basis of the well to qualify the lease for continuation as to the

whole or part of its location contained in those sections.

(4) If a lessee applies under

section 14 for continuation of a lease as

to the whole or a part of its location pursuant to

section 15 or 16 and

the Minister determines that the whole or part of the location does

not qualify for continuation under those sections but qualifies for

continuation pursuant to this

section on the basis of a well described

in subsection (1), the Minister's notice under

section 14(3)

(

a) must set out that the Minister is offering to continue the lease

as to the whole or part of its location pursuant to this section,

(

b) must state that the lessee may accept the offer in whole or in

part as set out in the notice by selecting up to 9 sections of

land described in subsection (2) to qualify the lease for

continuation as to the whole or part of its location contained

in those sections, and

(

c) must state that if the lessee accepts the offer, the lessee must

pay

(

i) the prescribed rental for any part of the location in

respect of which the rental has not yet been paid for the

first year following the expiration of the term of the

lease, and

(ii) the prescribed acceptance fee.

(5) If a lessee accepts an offer made under subsection (4) in respect

of a well, the Minister may continue the lease as to the whole or part

or its location as provided for in the offer and accepted by the lessee

(6) The continuation of the whole or part of the location of a lease

on the basis of a well pursuant to this

section shall be granted to the

base of the deepest zone in the location of the lease from which the

well

(

a) is productive, or

(

b) in the opinion of the Minister, is potentially productive.

(7) Where a lease is continued pursuant to this

section as to the

whole or part of its location

(

a) the lease continues in effect as to the whole or part of the

location in respect of which it was continued for a period of

one year from the expiration of the term of the lease, and

(

b) the lessee must pay

(

i) the prescribed rental for any part of the location in

respect of which the rental has not yet been paid for the

first year following the expiration of the term of the

lease, and

(ii) the prescribed acceptance fee.

(8) A lease does not qualify for continuation pursuant to this

section

as to the whole or a part of its location

(

a) that has previously been continued under this

section or

section 16, or

(

b) is contained in the spacing unit that contains the well to

which the application relates if that part of the location

qualifies for continuation under

section 15.

Section 18(9) is amended by striking out "section 14

applies" and substituting "sections 14, 14.1 and 14.2 apply".

Section 36 is amended by striking out "June 30, 2014"

and substituting "November 30, 2018".

Schedule 2 is amended

(

a) by repealing the heading and substituting the

following:

Number of Sections of Land

Earned by Validating Well

(

b) in

section 1

(

i) by striking out "or grouping well";

(ii) by striking out "that may be validated" and

substituting "earned by the well that may be used to

validate sections of land";

(

c) by repealing

section 2.

19(1) In this section, "former regulation" means the Petroleum and

Natural Gas Tenure Regulation (AR 263/97) as it read immediately

before the coming into force of this Regulation.

(2) Notwithstanding the amendment effected by

section 14, on the

coming into force of this Regulation the further continuation period set

out in

section 16(7)(

a) of the former regulation continues to apply with

respect to a lease that has been approved for further continuation under

section 16(5) of the former regulation.

20(1) Sections 1, 2(c), 10 and 12 of this Regulation come

into force on January 1, 2014.

(2) Sections 2(a), (

b) and (d), 3 to 9, 11 and 13 to 19 come

into force on March 1, 2014.

Alberta Regulation 225/2013

Insurance Act

HOME WARRANTY INSURANCE REGULATION

Filed: December 9, 2013

For information only: Made by the Lieutenant Governor in Council (O.C. 405/2013)

on December 6, 2013 pursuant to

section 548.1 of the Insurance Act.

Table of Contents

Definitions

2 Home warranty insurance policy limits

3 Other rights not affected

4 Notice of coverage

5 Policy conditions

6 Permitted coverage exclusions

7 Permitted loss or damage exclusions

8 Deductibles

9 Calculation of claim

10 Termination of insurance

11 Reconstructions

12 Alberta New Home Warranty Program

13-14 Consequential amendments

15 Expiry

16 Coming into force

Definitions

1 In this Regulation,

(a) "Act" means the Insurance Act;

(b) "delivery and distribution system" has the same meaning as

section 1(1)(

m) of the New Home Buyer Protection Act;

(c) "home warranty insurance contract" has the same meaning as

section 548.1(2) of the Act;

(d) "new home" has the same meaning as in

section 1(1)(

s) of

the New Home Buyer Protection Act;

(e) "owner" has the same meaning as in

section 1(1)(

t) of the

New Home Buyer Protection Act;

(f) "owner builder" has the same meaning as in

section 1(1)(

u) of the New Home Buyer Protection Act;

(g) "Provincial Historic Resource" has the same meaning as in

section 1(

i) of the Historical Resources Act;

(h) "purchase period" has the same meaning as in

section 1(1)(

y) of the New Home Buyer Protection Act;

(i) "reconstruction" has the same meaning as in

section 1(1)(

z) of the New Home Buyer Protection Act;

(j) "recorded mail" means recorded mail as defined in the

Alberta Rules of Court (AR 124/2010);

(k) "Registered Historic Resource" has the same meaning as in

section 1(

j) of the Historical Resources Act;

(l) "residential builder" has the same meaning as in

section

1(1)(dd) of the New Home Buyer Protection Act;

(m) "warranty provider" has the same meaning as in

section

548.1(1) of the Act.

Home warranty insurance policy limits

2(1) Every home warranty insurance policy must provide coverage for

defects as required by

section 3(6) of the New Home Buyer Protection

Act.

(2) Where an insured has purchased additional coverage as required to

be offered by a warranty provider under

section 3(7) of the New Home

Buyer Protection Act, the home warranty insurance policy must

provide coverage for those defects.

(3) Limits of coverage provided under subsection (1), exclusive of

interest and costs, must not be less than the following:

(

a) for a single dwelling unit constructed by a residential builder,

the lesser of the original purchase price paid to the residential

builder and $265 000;

(

b) for a single dwelling unit constructed by an owner builder,

the lesser of the appraised value of the new home at the time

of commencement of coverage and $265 000;

(

c) for a single dwelling unit in a condominium or a multiple

family dwelling, the lesser of the original purchase price paid

to the residential builder and $130 000;

(

d) subject to subsection (4), for the common property in a

condominium or a multiple family dwelling, or for the

property for which a condominium corporation is responsible

under its bylaws, the lesser of

(i) $130 000 times the number of single dwelling units in

the condominium or multiple family dwelling, and

(ii) $3 300 000.

(4) If a condominium consists of a number of buildings, the applicable

coverage limit in subsection (3)(

d) applies to each building.

(5) For greater certainty, in this section,

(a) "the original purchase price paid to the residential builder"

does not include the portion of the purchase price attributable

to the purchase of the land, and

(b) "the appraised value of the new home" does not include the

value of the land.

Other rights not affected

3(1) Nothing in this regulation affects the rights of an insured under

the insured's contract with a residential builder.

(2) An insured may exercise rights and seek remedies under a home

warranty insurance policy without exercising any rights referred to in

subsection (1).

(3) No home warranty insurance policy may contain requirements

contrary to subsection (2).

Notice of coverage

4(1) A warranty provider must, as soon as reasonably possible after

the commencement of coverage under the home warranty insurance

policy, provide the owner with details of coverage under the home

warranty insurance policy and with a

schedule of the expiry dates for

all types of coverage.

(2) The

schedule referred to in subsection (1) must include an

adhesive label that is a minimum size of 150 mm by 150 mm and is

suitable for affixing by the owner in a conspicuous location in the new

home.

(3) The adhesive label referred to in subsection (2) must set out all the

expiry dates for all types of coverage.

Policy conditions

5(1) The conditions set out in this

section must be included in every

home warranty insurance policy in force in Alberta and must be

printed under the heading "Policy Conditions".

(2) No variation or omission of or addition to any policy condition is

binding on the insured.

Policy Conditions

In these policy conditions, unless the context otherwise requires,

"insured" means a person insured by the home warranty insurance

contract whether named in the home warranty insurance contract or

not.

REQUIREMENTS AFTER DISCOVERY OF

DEFECT 1(1) Within a reasonable time after the discovery of a

defect in a new home, the insured must, if the defect is covered by the

policy, give notice of the defect in reasonable detail to the warranty

provider.

(2) The warranty provider may require that the notice from the insured

be in writing.

WHO MAY GIVE NOTICE AND PROOF 2 Notice of a defect

under Policy Condition 1(1) may be given

(

a) by the agent of the insured if

(

i) the insured is absent or unable to give the notice or

make the proof, and

(ii) the absence or inability is satisfactorily accounted for,

(

b) by any person who has an insurable interest in the new home,

if the named insured fails or refuses to do so, or in the

circumstances described in clause (

a) of this condition.

MITIGATION 3(1) In the event of loss or damage to a new home

resulting from a defect, the insured must take all reasonable steps to

prevent further loss or damage to the new home as a result of the

defect.

(2) The warranty provider must pay to the insured all reasonable and

proper expenses incurred in connection with steps taken by the insured

under subparagraph (1) of this condition.

ENTRY AND CONTROL 4 After a defect has been reported to a

warranty provider, the warranty provider has an immediate right of

access and entry to the new home by itself and by its accredited

representatives, who may include the residential builder, sufficient to

(

a) enable them to determine if a defect exists,

(

b) make an estimate of the repairs required to rectify the defect,

and

(

c) make the repairs necessary to rectify the defect.

MATERIAL CHANGE IN RISK 5(1) The insured must promptly

give notice in writing to the warranty provider or its agent of any

change that is

(

a) material to the risk, and

(

b) within the control and knowledge of the insured.

(2) The warranty provider may require that the notice from the insured

be in writing.

IN CASE OF DISAGREEMENT 6(1) In the event of disagreement

as to whether a defect exists, the nature and extent of the repairs or

replacements required, the adequacy of repairs or replacements made

or the amount of loss or damage, those questions must be determined

using the applicable dispute resolution process set out in

section 519 of

the Insurance Act whether or not the insured's right to recover under

the home warranty insurance contract is disputed, and independently of

all other questions.

(2) There is no right to a dispute resolution process under this

condition until

(

a) a specific demand is made for it in writing, and

(

b) the proof of loss has been delivered to the insurer.

TRANSFER OF TITLE 7 If title to the new home is transferred at

any time during the purchase period, the home warranty insurance

contract is transferred to the new owner and the new owner is deemed

to have given good and valuable consideration to the warranty provider

under the home warranty insurance contract.

ADDITIONAL LIVING EXPENSES 8(1) If a new home is

uninhabitable as a result of a defect or during the rectification of a

defect, then reasonable living expenses incurred by the insured will be

payable by the warranty provider to the insured to a maximum of $150

per day or such greater amount as may be established from time to

time by the Superintendent of Insurance.

(2) The total amount payable under subparagraph (1) of this condition

shall not exceed $15 000 for each period of time the home is

uninhabitable while warranty coverage is in effect.

WARRANTY OF REPAIRS OF DEFECTS 9(1) All repairs and

replacements made to rectify defects are warranted against defects in

materials and labour until the later of the first anniversary of the date

of completion of the repair or replacement and the expiry of coverage

for that type of defect under the home warranty insurance policy.

(2) If an insured accepts payment from a warranty provider in lieu of

repairs or replacements to rectify a defect, then no further warranty

coverage applies to the defect covered by the payment.

NOTICE 10(1) Written notice to the warranty provider may be

delivered, or sent by recorded mail, to the chief agency or head office

of the warranty provider in the province.

(2) Written notice to the insured may be personally delivered, or sent

by recorded mail addressed, to the address of the new home covered by

the home warranty insurance policy.

Permitted coverage exclusions

6 A warranty provider may exclude the following from coverage

under a home warranty insurance policy:

(

a) any non-residential use area and any construction or

reconstruction associated with a non-residential use area;

(

b) site grading and surface drainage except as required by a

building code, and not including subsidence beneath footings

of a home or under driveways or walkways;

(

c) utility services;

(

d) septic tanks and septic or absorption fields, unless

constructed or otherwise provided by the residential builder

or owner builder;

(

e) home appliances, including but not limited to refrigerators,

stoves, ovens, garbage disposal units, dishwashers,

microwaves, clothing washers, clothing dryers and freezers;

(

f) water wells, except equipment installed for the operation of

the water well where the equipment is part of a delivery and

distribution system;

(

g) the quality or quantity of water from a municipal water

supply, a water well or any other source;

(

h) any component of a Registered Historic Resource or

Provincial Historic Resource that is being converted from

commercial to residential use, where that component has

been exempted from the application of any provision

contained in any building code pursuant to

section 51 of the

Historical Resources Act;

(

i) designs, materials or labour supplied by anyone other than

the residential builder or the employees, agents or

subcontractors of a residential builder, but not including any

designs, material or labour retained by the residential builder

or by an owner builder in a reconstruction.

Permitted loss or damage exclusions

7 A warranty provider may exclude from coverage under a home

warranty insurance policy any loss or damage resulting from the

following:

(

a) weathering, normal wear and tear, deterioration or deflection

consistent with normal industry standards;

(

b) normal shrinkage of materials caused by drying after

construction;

(

c) substantial use of the residence for non-residential purposes;

(

d) negligent or improper maintenance or improper operation of

the new home or anything in the new home by anyone other

than the residential builder or its employees, agents or

subcontractors;

(

e) alterations to the home by anyone other than the residential

builder or its employees, agents or subcontractors;

(

f) changes to the grading of the ground by anyone other than

the residential builder, or its employees, agents or

subcontractors;

(

g) insects, rodents or other animals, unless the damage results

from non-compliance with a building code by the residential

builder or its employees, agents or subcontractors, or the

owner builder;

(

h) acts of nature;

(

i) bodily injury, disease, illness or death resulting from any

cause;

(

j) damage to personal property or real property that is not part

of a new home;

(

k) contaminated soil, except where supplied by or through the

residential builder and the residential builder knew or ought

to have known that the soil was contaminated;

(

l) subsidence of the land around a new home or along utility

lines, not including subsidence beneath footings of a new

home or under driveways or walkways;

(

m) diminished value of a new home or any component of a new

home;

(

n) deficiencies that have been agreed to between a residential

builder and the insured prior to or at the time of possession;

(

o) defects that have been caused or substantially contributed to

by a change that is material to the risk and is within the

control and knowledge of the insured;

(

p) fire, explosion, smoke, flooding or sewer back-up;

. (

q) loss of income or opportunity;

(

r) loss of enjoyment, use or benefit of the new home;

(

s) inconvenience or distress to the owner;

(

t) any professional fees, including legal, consulting or medical

costs.

Deductibles

8(1) Subject to subsection (2), a warranty provider may require an

insured to pay a deductible on claims made under a home warranty

insurance policy.

(2) An insured may bundle any number of defects into a single claim

to be submitted to a warranty provider.

(3) Only one deductible is payable per claim submitted to a warranty

provider, regardless of the number of defects reported by the insured to

the warranty provider in that claim.

(4) The maximum amount of a deductible payable under subsection

(1) shall not exceed

(

a) for claims related to the common property, common facilities

and other assets of a condominium corporation

(i) $100 for claims related to the coverage in

section

3(6)(

a) of the New Home Buyer Protection Act, and

(ii) $500 for all other claims,

and

(

b) for all other claims, $50.

(5) The total sum of deductibles payable in each calendar year for

claims made, not including claims relating to the common property,

common facilities and other assets of a condominium corporation,

must not exceed $300.

(6) A warranty provider may refund a deductible paid or waive a

deductible payable by an insured.

(7) When a home warranty insurance contract evidenced by a policy

contains a deductible clause, the contract must have printed or stamped

on the first page in conspicuous bold type the words:

This policy contains a clause which may limit the amount payable.

and unless these words are so printed or stamped, the clause is not

binding on the insured.

Calculation of claim

9 When a warranty provider calculates the cost of a claim, the

warranty provider may include

(

a) the cost of repairs,

(

b) the cost of any investigation, engineering and design required

for the repairs,

(

c) the cost of adjusting and supervision of repairs, including

professional review but excluding legal costs,

(

d) the cost of mitigation paid by a warranty provider to an

insured, and

(

e) the cost of additional living expenses of an owner paid by a

warranty provider.

Termination of insurance

10(1) The home warranty insurance contract may only be terminated

by the warranty provider before coverage begins by giving the insured

15 days' notice of termination by recorded mail or 5 days' written

notice of termination personally delivered.

(2) If t