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Volume 56, No. 5

128/2013

The British Columbia Gazette,

Part II

March 26, 2013

B.C. Reg. 128/2013 , deposited March 20, 2013, pursuant to the PETROLEUM AND NATURAL GAS ACT [sections 73 (2) and 80 (2)]. Order in Council 160/2013, approved and ordered March 19, 2013.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that, effective April 1, 2013, the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, B.C. Reg. 495/92, is amended as set out in the attached schedule.

— R. COLEMAN, Minister of Energy, Mines and Natural Gas and Minister Responsible for Housing and Deputy Premier ; N. LETNICK, Presiding Member of the Executive Council .

Schedule

Section 4 (4) (

b) of the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, B.C. Reg. 495/92, is amended by adding “ up to 2012 ” after “ any subsequent year ”.

Section 7 is amended

(

a) by adding the following subsections:

(0.1) In this section, “minimum royalty amount” means the sum of the following:

(a) 3% of the volume of marketable gas made available for sale in the producing month from a well event multiplied by the reference price for that marketable gas;

(b) 3% of the volume of natural gas liquids sold from a well event in the producing month multiplied by the reference price for the natural gas liquids;

(c) 3% of the volume of sulphur sold from a well event in the producing month multiplied by the reference price for the sulphur.

(0.2) Subsection (5) (c) (iii) and (iv) and (d) (iii) and (iv) applies only to producing months after March 2013. ,

(

b) in subsection (5) (

c) by adding “ and if the difference obtained by reducing the amount of the well depth deduction amount determined under subsection (7) (

c) by the total of all previous deductions made under this paragraph is positive, ” after “ November 30, 2003, ”,

(

c) in subsection (5) (c) (

i) by striking out “ subsection (7) (a), and ” and substituting “ subsection (7) (a), ”,

(

d) in subsection (5) (c) (ii) by striking out “ positive ” and by striking out “ subparagraph (

i) of this paragraph, and ” and substituting “ subsection (5) (c), ”,

(

e) in subsection (5) (

c) by adding the following subparagraphs:

(iii) the positive difference obtained by reducing the amount of the well depth deduction amount determined under subparagraph (

i) of this paragraph by the minimum royalty amount, and

(iv) zero, if the difference obtained by reducing the amount of the well depth deduction amount determined under subparagraph (

i) of this paragraph by the minimum royalty amount is equal to or less than zero, and ,

(

f) in subsection (5) (

d) by adding “ and if the difference obtained by reducing the amount of the well depth deduction amount determined under subsection (7) (

c) by the total of all previous deductions made under subsection (5) (

c) is positive, ” after “ November 30, 2003, ”,

(

g) in subsection (5) (d) (

i) by striking out “ subsection (7) (a), and ” and substituting “ subsection (7) (a), ”,

(

h) in subsection (5) (d) (ii) by striking out “ positive ” and by striking out “ subparagraph (

i) of this paragraph, ” and substituting “ subsection (5) (d), ”, and

(

i) in subsection (5) (

d) by adding the following subparagraphs:

(iii) the positive difference obtained by reducing the amount of the deep re-entry incremental deduction amount determined under subparagraph (

i) of this paragraph by the minimum royalty amount, and

(iv) zero, if the difference obtained by reducing the amount of the deep re-entry incremental deduction amount determined under subparagraph (

i) of this paragraph by the minimum royalty amount is equal to or less than zero.

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