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Volume 52, No. 3

B.C. Reg. 17/2009

The British Columbia Gazette,

Part II

February 10, 2009

B.C. Reg. 17/2009 , deposited January 30, 2009, pursuant to the PETROLEUM AND NATURAL GAS ACT [Section 73]. Order in Council 43/2009, approved and ordered January 29, 2009.

— B. LEKSTROM, Minister of Energy, Mines and Petroleum Resources ; S. BOND, Presiding Member of the Executive Council .

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective February 1, 2009, 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.

Schedule

Section 1 of the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, B.C. Reg. 495/92, is amended

(

a) in subsection (1) by repealing the

definitions of "deep discovery well event" , "deep re-entry well event" , "deep well depth" and "horizontal length factor " and substituting the following:

"deep discovery well event" means a gas well event that

(

a) is in a discovery well,

(

b) has a completion point that has a true vertical depth deeper than 4 000 metres,

(

c) is in a well that has a spud date after November 30, 2003,

(

d) is in a well that has a surface location at least 20 kilometres away from the surface location of any well in a recognized pool of the same formation, and

(

e) is not part of a coalbed methane project;

"deep re-entry well event" means a gas well event that

(

a) is in a well that has been altered in accordance with an alteration application,

(

b) has a completion point that has a true vertical depth deeper than 2 300 metres, and

(

c) is not part of a coalbed methane project;

"deep well depth" means, for a deep well event,

(

a) if in a vertical well, the measured depth to the completion point, and

(

b) if in a horizontal well, the sum of

(

i) the measured depth to the completion point, and

(ii) the product of the applicable horizontal length factor multiplied by the positive difference between the total measured depth and the measured depth to the completion point;

"horizontal length factor" , in relation to a gas well event, has the following meaning:

(

a) for a gas well event with a measured depth to the completion point of between 2 300 metres and 2 875 metres, the amount determined by the following formula:

60 – 0.035 × (measured depth to completion point – 2300)

(

b) for a gas well event with a measured depth to the completion point deeper than 2 875 metres, 0.40; ,

(

b) in subsection (1) by adding the following

definitions:

"completion point" means, in respect of a gas well event that

(

a) is in a vertical well and

(

i) has not been completed as an open hole, the bottom of the deepest perforations in the gas well event, or

(ii) has been completed as an open hole, the bottom of the last

section of casing in the gas well event, or

(

b) is in a horizontal well, the point in the wellbore referred to in paragraph (

a) of the definition of "horizontal well" at which the angle of the wellbore first exceeds 80 degrees from vertical;

"measured depth to the completion point" , in relation to a gas well event, means the measured depth along the wellbore from the intersection with the completion point of the well event to the kelly bushing used in drilling the well; ,

(

c) by adding the following subsection:

(1.1) Despite subsection (1), for the purposes of applying this regulation to wells with a spud date after November 30, 2003 and before January 1, 2009, the following terms continue to have the meanings they had on December 31, 2008:

(

a) deep discovery well event;

(

b) deep re-entry well event;

(

c) deep well depth;

(

d) deep well event. , and

(

d) by repealing subsection (5) and substituting:

(5) A well event is a deep well event if

(

a) the well event is a gas well event,

(

b) the well event, if in a horizontal well, has a completion point that has a true vertical depth deeper than 2 300 metres,

(

c) the well event, if in a vertical well, has a completion point that has a true vertical depth deeper than 2 500 metres,

(

d) the well event is not a deep re-entry well event, and

(

e) the well event is not part of a coalbed methane project.

Section 7 (7.1) is amended

(

a) in paragraph (a), by adding " the well event has a spud date after November 30, 2003 and before January 1, 2009 and " after " well event if ", and

(

b) by adding the following paragraph:

(a.1) the portions of the table in subsection (7) applicable to East apply to a well event if the well event has a spud date after December 31, 2008 and is located in any of the following areas, which areas, in the case of areas referred to in subparagraphs (

i) to (xxxvi), are described in accordance with the petroleum and natural gas grid established under the Petroleum and Natural Gas Grid Regulation, B.C. Reg. 536/2004, and, in the case of the areas referred to in subparagraphs (xxxvii) to (lxiii), are described in accordance with the Dominion Land Survey System:

(

i) that portion of Group 095-A-01 to Group 095-A-04 (inclusive) that is located within British Columbia;

(ii) that portion of Group 095-B-01 to Group 095-B-04 (inclusive) that is located within British Columbia;

(iii) that portion of Group 095-C-01 that is located within British Columbia;

(iv) Group 094-P-01 to Group 094-P-16 (inclusive);

(

v) Group 094-O-01 to Group 094-O-3 (inclusive);

(vi) Blocks A to C, Units 1-7 and 11-100 of Block D, and Blocks E to L of Group 094-O-04;

(vii) Group 094-O-05 to Group 094-O-16 (inclusive);

(viii) Units 11-100 of Block A, Units 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block B, Units 71-77, 81-87, 91-97 of Block E, Units 71-100 of Block F, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-100 of Block G, Blocks H to K (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block L of Group 094-N-01;

(ix) Units 71-77, 81-87, 91-97 of Block G, Units 71-100 of Block H, Block I, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block J, of Group 094-N-07;

(

x) Blocks A to C (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block D, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-100 of Block E, Blocks F to L (inclusive) of Group 094-N-08;

(xi) Blocks A-D, Units 1-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block E, Blocks F-K (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block L of Group 094-N-09;

(xii) Block A, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block B, Units 1-7, 11-17, 21-27 of Block G, Units 1-30 of Block H of Group 094-N-10;

(xiii) Block A, Units 1-73, 81-83, 91-93 of Block B, Units 1-70 of Block C, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67 of Block D, Units 1-3, 11-13, 21-23, 31-33, 41-43, 51-53, 61-63, 71-73, 81-83, 91-93 of Block G, Block H and I, Units 1-3, 11-13, 21-23, 31-33, 41-43, 51-53, 61-63, 71-73, 81-83, 91-93 of Block J of Group 094-N-16;

(xiv) Group 094-J-01 to Group 094-J-03 (inclusive);

(xv) Blocks A to C (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block D, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block E, Blocks F to K (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block L of Group 094-J-04;

(xvi) Blocks A to C (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block D, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block E, Blocks F to K (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block L of Group 094-J-05;

(xvii) Group 094-J-06 to 094-J-11 (inclusive);

(xviii) Blocks A to C (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block D, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block E, Blocks F to K (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block L of Group 094-J-12;

(xix) Blocks A to C (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block D, Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block E, Blocks F to K (inclusive), Units 1-7, 11-17, 21-27, 31-37, 41-47, 51-57, 61-67, 71-77, 81-87, 91-97 of Block L of Group 094-J-13;

(xx) Group 094-J-14 to Group 094-J-16 (inclusive);

(xxi) Group 094-I-01 to Group 094-I-16 (inclusive);

(xxii) Group 094-H-01 to Group 094-H-16 (inclusive);

(xxiii) Block A, Units 1-3, 11-13, 21-23, 31-37, 41-47, 51-57, 61-67, 71-100 of Block B, Units 71, 81, 91 of Block C, Unit 91 of Block E, Units 1, 11-15, 21-25, 31-35, 41-45, 51-59, 61-69, 71-79, 81-89, 91-100 of Block F, Blocks G to K (inclusive), Units 1, 11, 21, 31-33, 41-43, 51-55, 61-65, 71-75, 81-85, 91-97 of Block L of Group 094-G-01;

(xxiv) Units 31, 41, 51-53, 61-63, 71-73, 81-83, 91-95 of Block A, Units 51, 61, 71-73, 81-83, 91-95 of Block G, Units 1-5, 11-17, 21-27, 31-39, 41-49, 51-100 of Block H, Block I, Units 1-5, 11-15, 21-25, 31-37, 41-47, 51-59, 61-69, 71-79, 81-89, 91-100 of Block J, Unit 91 of Block K of Group 094-G-07;

(xxv) Block A to Block C (inclusive), Units 1-7, 11-19, 21-29, 31-100 of Block D, Blocks E to L of Group 094-G-08;

(xxvi) Group 094-G-09;

(xxvii) Block A and B, Units 1, 11-13, 21-23, 31-33, 41-43, 51-55, 61-65, 71-77, 81-87, 91-100 of Block C, Unit 91 of Block D, Units 1, 11-13, 21-23, 31-37, 41-47, 51-100 of Block E, Blocks F to L (inclusive) of Group 094-G-10;

(xxviii) Units 51, 61, 71-75, 81-85, 91-99 of Block H, Units 1-9, 11-100 of Block I, Units 11-13, 21-23, 31-37, 41-47, 51-100 of Block J, Units 51, 61, 71-73, 81-83, 91-97 of Block K of Group 094-G-11;

(xxix) Units 71-73, 81-83, 91-97 of Block A, Units 71, 81, 91-95 of Block F, Units 31-35, 41-45, 51-59, 61-69, 71-100 of Block G, Units 1-7, 11-19, 21-29, 31-100 of Block H, Blocks I and J, Units 1-5, 11-19, 21-29, 31-100 of Block K, Units 31-33, 41-43, 51-57, 61-67, 71-77, 81-87, 91-97 of Block L of Group 094-G-13;

(xxx) Blocks A and B, Units 1-7, 11-100 of Block C, Units 11, 21, 31-33, 41-43, 51-59, 61-69, 71-100 of Block D, Blocks E to L (inclusive) of Group 094-G-14;

(xxxi) Group 094-G-15 and Group 094-G-16;

(xxxii) Unit 91 of Block H, Units 1, 11-13, 21-23, 31-37, 41-47, 51-57, 61-67, 71-79, 81-89, 91-100 of Block I, Units 91-93 of Block J of Group 094-B-16;

(xxxiii) that portion of Group 094-A-09 to Group 094-A-11 that is located outside the Peace River Block;

(xxxiv) that portion of Block I, Units 1, 11-15, 21-25, 31-35, 41-45, 51-57, 61-67, 71-100 of Block J, Units 71, 81, 91 of Block K of Group 094-A-12 that is located outside the Peace River Block;

(xxxv) Blocks A and B, Units 1, 11-13, 21-23, 31-35, 41-45, 51-55, 61-65, 71-77, 81-87, 91-99 of Block C, Units 11-13, 21-23, 31-35, 41-45, 51-57, 61-67, 71-79, 81-89, 91-100 of Block E, Units 1-9, 11-100 of Block F, Blocks G to L (inclusive) of Group 094-A-13;

(xxxvi) Group 094-A-14 to Group 094-A-16 (inclusive);

(xxxvii) that portion of the Peace River Block within Sections 1-3, 10-15, 22-29, 32-36 of Township 88 Range 23 W6M;

(xxxviii) that portion of the Peace River Block with Township 88 east of Range 23 W6M within British Columbia;

(xxxix) Sections 1-3, 10-15, 22-27, 34-36 of Township 87 Range 23 W6M;

(xl) Township 87 east of Range 23 W6M within British Columbia;

(xli) Sections 1-5, 8-16, 21-28, 33-36 of Township 86 Range 23 W6M;

(xlii) Township 86 east of Range 23 W6M within British Columbia;

(xliii) Sections 1, 2, 12, 13, 24 of Township 85 Range 24 W6M;

(xliv) Township 85 east of Range 24 W6M within British Columbia;

(xlv) Sections 1-5, 8-16, 22-27, 35, 36 of Township 84 Range 24 W6M;

(xlvi) Township 84 east of Range 24 W6M within British Columbia;

(xlvii) Sections 1, 12, 13, 24 of Township 83 Range 25 W6M;

(xlviii) Township 83 east of Range 25 W6M within British Columbia;

(xlix) Sections 1, 2, 10-15, 22-27, 34-36 of Township 82 Range 25 W6M;

(

l) Township 82 east of Range 25 W6M within British Columbia;

(li) Sections 12, 13, 24-26, 35, 36 of Township 81 Range 25 W6M;

(lii) Township 81 east of Range 25 W6M within British Columbia;

(liii) Sections 1-3, 9-16, 20-29, 31-36 of Township 80 Range 24 W6M;

(liv) Township 80 east of Range 24 W6M within British Columbia;

(lv) Sections 12, 13, 23-26, 34-36 of Township 79 Range 24 W6M;

(lvi) Township 79 east of Range 24 W6M within British Columbia;

(lvii)

Section 36 of Township 78 Range 24 W6M;

(lviii) Sections 1-4, 9-17, 19-36 of Township 78 Range 23 W6M;

(lix) Township 78 east of Range 23 W6M within British Columbia;

(lx) Sections 1, 12-14, 23-27, 34-36 of Township 77 Range 23 W6M;

(lxi) Township 77 east of Range 23 W6M within British Columbia;

(lxii) that portion of the Peace River Block within

Section 36 of Township 76 Range 23 W6M;

(lxiii) that portion of the Peace River Block within Township 76 east of Range 23 W6M within British Columbia.

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