Alberta Gazette — 31 December 2016 (Part II)
31 December 2016
Alberta — Gazette
Alberta Regulation 191/2016
Electric Utilities Act
BALANCING POOL AMENDMENT REGULATION
Filed: December 1, 2016
For information only: Made by the Minister of Energy (M.O. 116/2016) on
November 28, 2016 pursuant to
section 88 of the Electric Utilities Act.
1 The Balancing Pool Regulation (AR 158/2003) is
amended by this Regulation.
2 The following is added after
section 5:
Annualized amount -
interpretation
5.1 For the purposes of sections 5.2, 5.3 and 5.4,
(a) "active period" means the period commencing January 1,
2018 and ending December 31, 2020;
(b) "amortization period" means the period commencing January
1, 2021 and ending December 31, 2030;
(c) "annualized amount" means
(
i) in respect of the 2017 fiscal year, the negative amount
of $65 000 000;
(ii) in respect of each fiscal year commencing with 2018
and ending with 2030, the levelized annual amount
calculated by the Balancing Pool in accordance with
section 5.2(1)(
a) or 5.3(1)(a).
Active period calculations
5.2(1) Before the Balancing Pool prepares or amends a budget
under
section 82 of the Act for a fiscal year during the active period,
the Balancing Pool must forecast its revenues and expenses
(
a) for the active period and calculate a levelized annual amount
that, if included in the ISO tariff, would result in the amount
in the balancing pool accounts totalling $0 at the end of the
amortization period, and
(
b) for that fiscal year and calculate an amount that, if included
in the ISO tariff, would result in the amount in the balancing
pool accounts at the end of that fiscal year not exceeding the
amount of working capital and reserves included in the
budget or amended budget for that fiscal year.
(2) The Balancing Pool must immediately notify the Minister if the
amount calculated for a fiscal year under subsection (1)(
b) differs
from the levelized annual amount calculated under subsection (1)(
a) by more than $15 000 000 or differs from the annualized amount
applied in the previous fiscal year by more than $15 000 000 and
may make any recommendation the Balancing Pool considers
appropriate concerning the amendment of this Regulation.
Amortization period calculations
5.3(1) Before the Balancing Pool prepares or amends a budget
under
section 82 of the Act for a fiscal year during the amortization
period, the Balancing Pool must forecast its revenues and expenses
(
a) for the amortization period and calculate a levelized annual
amount that, if included in the ISO tariff, would result in the
amount in the balancing pool accounts totalling $0 at the end
of the amortization period, and
(
b) for that fiscal year and calculate an amount that, if included
in the ISO tariff, would result in the amount in the balancing
pool accounts at the end of that fiscal year not exceeding the
amount of working capital and reserves included in the
budget or amended budget for that fiscal year.
(2) The Balancing Pool must immediately notify the Minister if the
amount calculated for a fiscal year under subsection (1)(
b) differs
from the levelized annual amount calculated under subsection (1)(
a) by more than $15 000 000 or differs from the annualized amount
applied in the previous fiscal year by more than $15 000 000 and
may make any recommendation the Balancing Pool considers
appropriate concerning the amendment of this Regulation.
Balancing Pool duties - clarification
5.4(1) The duties of the Balancing Pool set out in
section 85(1) of
the Act are clarified as follows:
(
a) for the purposes of the duty set out in clause (h), the
Balancing Pool must ensure that by the end of the
amortization period, any net amount in the balancing pool
accounts that is greater than $0 or less than $0 is included in
the ISO tariff;
(
b) for the purposes of the duty set out in clause (j), the
Balancing Pool must ensure that by the end of the
amortization period, no profit or loss results, after accounting
for the annualized amount as a revenue or expense of the
Balancing Pool.
(2) The Balancing Pool must provide to the Minister any
information respecting its calculations under
section 5.2 or 5.3 that
the Minister requests.
Section 8 is amended by striking out "June 30, 2021" and
substituting "December 31, 2030".
--------------------------------
Alberta Regulation 192/2016
Public Sector Pension Plans Act
MANAGEMENT EMPLOYEES PESNION PLAN (2017 CONTRIBUTION
RATE) AMENDMENT REGULATION
Filed: December 6, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 314/2016)
on December 6, 2016 pursuant to
Schedule 5,
section 5 of the Public Sector Pension
Plans Act.
1 The Management Employees Pension Plan (AR 367/93) is
amended by this Regulation.
Section 15(1) is amended by striking out "21.85%" and
substituting "17.20%".
3 This Regulation comes into force on February 1, 2017.
--------------------------------
Alberta Regulation 193/2016
Pharmacy and Drug Act
PHARMACEUTICAL EQUIPMENT CONTROL REGULATION
Filed: December 6, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 319/2016)
on December 6, 2016 pursuant to
section 18.82 of the Pharmacy and Drug Act.
Definitions
1 In this Regulation,
(a) "Act" means the Pharmacy and Drug Act;
(b) "natural health product" means a natural health product as
defined in the Natural Health Products Regulations
SOR/2003-196.
Designated equipment
2 For the purposes of
section 18.8 of the Act and this Regulation,
(a) "capsule filling machine" means a mechanical or manual
device that
(
i) holds capsules and facilitates their even filling with
powders, granular solids, semi-solids, liquids or other
substances,
(ii) may cap or close capsules,
(iii) is marketed, designed or utilized for drug or natural
health product use, and
(iv) has more than 100 capsule-holding cavities;
(b) "pharmaceutical mixer" means a mechanical or manual
device that
(
i) mixes or blends liquids, semi-solid materials, powders,
granular solids or any other substances to produce a
homogenous product, and
(ii) is marketed, designed or utilized for drug or natural
health product use,
but does not include a household appliance or device or a
device intended for use by a non-pharmaceutical industry or
business;
(c) "pill or tablet press", "tablet machine" or "tablet punch"
means a mechanical or manual device that
(
i) compresses, compacts or molds powders, granular
solids, semi-solids or other substances into solid tablets,
pills or any other form of uniform size and weight, and
(ii) is marketed, designed or utilized for drug or natural
health product use;
(d) "tablet die" means a device used to cut, shape or impress a
utilized for drug or natural health product use.
Exemption
3 The following are exempt from
section 18.81(1) of the Act:
(
a) a person authorized to compound or manufacture natural
health products under
an Act or regulation of Alberta or
Canada;
(
b) a person or museum who collects, sells or restores historical
or reproduction designated equipment that is considered to be
a historic object as defined under the Historical Resources
Act.
Coming into force
4 This Regulation comes into force on the coming into force of
section 2 of the Pharmacy and Drug (Pharmaceutical Equipment
Control) Amendment Act, 2016.
--------------------------------
Alberta Regulation 194/2016
Responsible Energy Development Act
SPECIFIED ENACTMENTS (JURISDICTION)
AMENDMENT REGULATION
Filed: December 6, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 327/2016)
on December 6, 2016 pursuant to
section 26 of the Responsible Energy Development
Act.
1 The Specified Enactments (Jurisdiction) Regulation
(AR 201/2013) is amended by this Regulation.
Section 6(1)(
b) is amended by adding ", except in respect of
an appeal of a notice of administrative penalty for an administrative
penalty ordered under
section 112 of the Mines and Minerals Act"
after "the Act".
Schedule 3 is amended
(
a) by renumbering
section 1 as
section 1.1 and by
adding the following before
section 1.1:
1 Mines and Minerals Act (Part 8)
(
a) section 112.1.
(
b) in
section 1.1 by renumbering clause (
a) as clause
(
b) and by adding the following before clause (b):
(
a) section 12, in respect of an appeal of a notice of
administrative penalty for an administrative penalty
ordered under
section 112 of the Mines and Minerals
Act;
4 This Regulation comes into force on the coming into
force of
section 3(4), (7) and (8) of the Administrative
Penalties and Related Matters Statutes Amendment Act,
--------------------------------
Alberta Regulation 195/2016
Responsible Energy Development Act
RESPONSIBLE ENERGY DEVELOPMENT ACT GENERAL
AMENDMENT REGULATION
Filed: December 6, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 328/2016)
on December 6, 2016 pursuant to
section 60 of the Responsible Energy Development
Act.
1 The Responsible Energy Development Act General
Regulation (AR 90/2013) is amended by this Regulation.
Section 3.1 is repealed and the following is substituted:
Appealable decisions and eligible persons
3.1(1) For the purposes of
section 36(a)(
v) of the Act, the
imposition of an administrative penalty under the following
provisions is an appealable decision:
(
a) section 70 of the Act;
(
b) section 112 of the Mines and Minerals Act.
(2) For the purposes of
section 36(b)(iii) of the Act, a person who is
required to pay an administrative penalty under the following
provisions is an eligible person:
(
a) section 70 of the Act;
(
b) section 112 of the Mines and Minerals Act.
Section 8.3(3) is amended by striking out "71(4)(b)"and
substituting "71(4)(c)".
4 This Regulation comes into force on the coming into
force of
section 3(4), (7) and (8) of the Administrative
Penalties and Related Matters Statutes Amendment Act,
--------------------------------
Alberta Regulation 196/2016
Electric Utilities Act
BALANCING POOL AMENDMENT REGULATION
Filed: December 7, 2016
For information only: Made by the Minister of Energy (M.O. 132/2016) on
December 7, 2016 pursuant to
section 88 of the Electric Utilities Act.
1 The Balancing Pool Regulation (AR 158/2003) is
amended by this Regulation.
Section 1 is amended by adding the following after
clause (d):
(d.1) "MSA" means the Market Surveillance Administrator
continued under
section 32 of the Alberta Utilities
Commission Act;
3 The following is added after
section 2(4):
(5) If the Government settles a dispute with a party to an
arrangement or derivative as to whether or not an extraordinary
event has occurred,
(a) subsections (1)(
h) and (2) do not apply,
(
b) the Balancing Pool, if it is not a party to the settlement, is
bound by the settlement as if it were a party to the settlement,
(
c) the Balancing Pool must implement the terms of the
settlement that apply to it and that apply to the arrangement
or derivative, and
(
d) the Minister may give directions to the Balancing Pool with
respect to the settlement, and the Balancing Pool must
comply with those directions.
3 The following is added after
section 3:
Record sharing
3.1(1) Subject to this section, the Balancing Pool may share records
referred to in
section 3(1) of the Fair, Efficient and Open
Competition Regulation (AR 159/2009) with a person to enable that
person to make offers in the Alberta electricity and ancillary services
markets in respect of an arrangement that the Balancing Pool holds
as a buyer.
(2) The records referred to in subsection (1) include records with
respect to the arrangement that relate to price, quantity and
availability information
(
a) for the committed capacity of the arrangement with respect to
offers in the Alberta electricity and ancillary services
markets, or
(
b) for any excess energy from the arrangement with respect to
offers in the Alberta electricity and ancillary services
markets.
(3) Before the Balancing Pool shares the records with a person
pursuant to subsection (1), the Balancing Pool shall file with the
Commission and the MSA a draft order that sets out
(
a) the arrangement to which the records relate,
(
b) the person the Balancing Pool is sharing the records with,
shared,
(
d) the date the Balancing Pool intends to share the records, and
(
e) the date that the draft order terminates.
(4) If the MSA objects to the draft order filed by the Balancing Pool
under subsection (3), the MSA must file a notice of objection with
the Commission and the Balancing Pool of the MSA's concerns no
later than 5 days after the day the draft order is filed under
subsection (3).
(5) If no notice of objection is filed by the MSA under subsection
(4), the Commission shall
(
a) confirm the draft order, and
(
b) publish a notice of the draft order, which must include
sufficient detail to allow a reasonable understanding of the
nature of order.
(6) If the MSA files a notice of objection under subsection (3), the
Commission
(
a) shall publish a notice of the draft order, and
(
b) shall hold in private a hearing or other proceeding involving
only the Balancing Pool and the MSA.
(7) After holding the hearing or other proceeding, the Commission
may, by order,
(
a) approve the draft order,
Commission considers appropriate, or
(
c) refuse to approve the draft order,
and shall publish a notice of the order and, in the opinion of the
Commission, include sufficient detail to allow a reasonable
understanding of the nature of the hearing or other proceeding and
the findings of the Commission.
(8) The Balancing pool and the persons with whom the records will
be shared must comply with the draft order, if confirmed under
subsection (5) or approved under subsection (7)(
a) or (b), as
applicable.
Alberta Regulation 197/2016
Oil and Gas Conservation Act
OIL AND GAS CONSERVATION RULES AMENDMENT REGULATION
Filed: December 8, 2016
For information only: Made by the Alberta Energy Regulator on September 9, 2016
pursuant to
section 10 of the Oil and Gas Conservation Act.
1 The Oil and Gas Conservation Rules (AR 151/71) are
amended by this Regulation.
Section 1.020 is amended
(
a) by adding following after definition 5.14.:
5.14001. "Directive 013" means Directive 013: Suspension
Requirements for Wells;
(
b) by repealing definition 28.1.
Section 3.020 is repealed and the following is
substituted:
3.020(1) A licensee shall suspend a well when required by and in
accordance with Directive 013, or as otherwise directed by the
Regulator.
--------------------------------
Alberta Regulation 198/2016
Fair Trading Act
DOOR-TO-DOOR (ENERGY SALES) AMENDMENT REGULATION
Filed: December 12, 2016
For information only: Made by the Minister of Service Alberta (M.O. SA:029/2016)
on December 6, 2016 pursuant to sections 12, 105 and 162(2) of the Fair Trading Act.
Part 1
Direct Selling Business Licensing Regulation
1(1) The Direct Selling Business Licensing Regulation
(AR 190/99) is amended by this Part.
(2) Section 1 is amended by adding the following after
clause (b):
(b.1) "energy audit" means an inspection, survey or assessment of
the energy usage or efficiency of a home or any of its
components;
(3) The following is added after
section 9:
Prohibited practices
9.1(1) A direct selling business shall not solicit, negotiate or
conclude a consumer transaction in person at a consumer's home for
the following goods and services:
(
a) furnaces;
(
b) air conditioners;
(
c) water heaters;
(
d) windows;
(
e) energy audits.
(2) Subsection (1) does not apply if the consumer invites a direct
selling business to attend at the consumer's home and the invitation
complies with subsection (3).
(3) An invitation by a consumer must be
(
a) express,
(
b) made
(
i) by phone, e-mail, text or other electronic
communication,
(ii) through the direct selling business's website, or
(iii) in person at the direct selling business's normal place of
business or at such other place where the direct selling
business is conducting business,
and
(
c) made before the direct selling business attends at the
consumer's home.
(4) A direct selling business who has been invited to attend in
person at a consumer's home to perform an energy audit shall not
solicit, negotiate or conclude a consumer transaction for the supply
of any of the goods and services referred to in subsection (1) while
attending in person at the consumer's home.
(5) For the purpose of this section, a direct selling business is
attending in person at a consumer's home if any employee,
representative, agent or contractor of the direct selling business
attends at the consumer's home.
(4) Section 10 is repealed and the following is substituted:
Offences
10 A contravention of
section 2(4), 9 or 9.1(1) or (4) is, for the
purposes of
section 162 of the Act, an offence.
Unfair practice
10.1 A contravention of
section 9.1(1) or (4) is an unfair practice.
Part 2
Energy Marketing and Residential Heat
Sub-metering Regulation
2(1) The Energy Marketing and Residential Heat
Sub-metering Regulation (AR 246/2005) is amended by this
Part.
(2) Section 19 is amended
(
a) in subsection (2) by renumbering clause (
a) as
clause (a.1) and by adding the following before
clause (a.1):
(
a) except in accordance with subsection (5), a marketer
must not solicit, negotiate or conclude a marketing
contract in person at a consumer's home;
(
b) in subsection (4) by striking out "Subsection (2)(a)"
and substituting "Subsection (2)(a.1)".
(
c) by adding the following after subsection (4):
(5) A marketer may solicit, negotiate or conclude a marketing
contract in person at a consumer's home if the consumer
invites the marketer to attend at the consumer's home and the
invitation is
(
a) express,
(
b) made
(
i) by phone, e-mail, text or other electronic
communication,
(ii) through the marketer's website, or
(iii) in person at the marketer's normal place of
business or at such other place where the marketer
is conducting business,
and
(
c) made before the marketer attends at the consumer's
home.
(3) The following is added after
section 21:
Unfair practice
21.1 A contravention of
section 19(2)(
a) is an unfair practice.
Part 3
Prepaid Contracting Business
Licensing Regulation
3(1) The Prepaid Contracting Business Licensing
Regulation (AR 185/99) is amended by this Part.
(2) Section 1 is amended by adding the following after
clause (a):
(a.1) "energy audit" means an inspection, survey or assessment of
the energy usage or efficiency of a home or any of its
components;
(3) The following is added after
section 8:
Prohibited practices
8.1(1) A prepaid contracting business shall not solicit, negotiate or
conclude a prepaid contract at a consumer's home for the following
goods and services:
(
a) furnaces;
(
b) air conditioners;
(
c) water heaters;
(
d) windows;
(
e) energy audits.
(2) Subsection (1) does not apply if the consumer invites a prepaid
contracting business to attend at the consumer's home and the
invitation complies with subsection (3).
(3) An invitation by a consumer must be
(
a) express,
(
b) made
(
i) by phone, e-mail, text or other electronic
communication,
(ii) through the direct selling business's website, or
(iii) in person at the direct selling business's normal place of
business or at such other place where the direct selling
business is conducting business,
and
(
c) made before the direct selling business attends at the
consumer's home.
(4) A prepaid contracting business who has been invited to attend in
person at a consumer's home to perform an energy audit shall not
solicit, negotiate or conclude a consumer transaction for the supply
of any of the goods and services referred to in subsection (1) while
attending in person at the consumer's home.
(5) For the purpose of this section, a prepaid contracting business is
attending in person at a consumer's home if any employee,
representative, agent or contractor of the prepaid contracting
business attends at the consumer's home.
(4) Section 11 is repealed and the following is substituted:
Offences
11 A contravention of
section 2(4), 8.1(1) or (4), 9 or 10 is, for
the purposes of
section 162 of the Act, an offence.
Unfair practice
11.1 A contravention of
section 8.1(1) or (4) is an unfair
practice.
Part 4
Coming into Force
4 This Regulation comes into force on January 1, 2017.
Alberta Regulation 199/2016
Marketing of Agricultural Products Act
REVIEW AND APPEAL REGULATION
Filed: December 12, 2016
For information only: Made by the Minister of Agriculture and Forestry
(M.O. 035/2016) on December 7, 2016 pursuant to
section 43.1 of the Marketing of
Agricultural Products Act.
Table of Contents
Definitions
Part 1
Reviews
2 Application for review
3 Conducting a review
4 Timing of the review
5 Refusal to hear
6 Adjournments
7 Right of applicant to attend
8 Evidence
9 Failure to appear
10 Review decisions
Part 2
Appeals
11 Appeal
12 Conducting the appeal
13 Timing of the appeal hearing
14 Refusal to refer
15 Adjournments
16 Chair may act
17 Right of parties to attend
18 Evidence
19 Witnesses
20 Failure to appear
21 Rules of Court
22 Refusal to hear
23 Appeal decisions
24 Cost recovery
Part 3
Appeal Tribunal
25 Appointment of appeal tribunal
26 Appointment to hear appeal
27 Remuneration
Part 4
Transitional Provisions,
Repeal and Expiry
28 Transitional
29 Repeal
30 Expiry
Definitions
1 In this Regulation,
(a) "Act" means the Marketing of Agricultural Products Act;
(b) "appeal" means an appeal under
section 36(2) of the Act of a
decision of a board or commission made pursuant to a review
under
section 36(1) of the Act;
(c) "decision maker" means the board, commission or the
Council whose decision is subject to an application for
review;
(d) "party" means the applicant and the board or commission
whose decision is being appealed;
(e) "review" means a review of a decision of a board,
commission or the Council as provided for under
section
36(1) of the Act.
Part 1
Reviews
Application for review
2 An application for review must, as set out in
section 36(1) of the
Act, be received by the decision maker within 60 days from the day the
applicant was notified of the decision or served with the decision,
whichever is earlier, and must
(
a) be in writing,
(
b) identify the decision that is being reviewed,
(
c) state why the decision should be rescinded or varied,
(
d) state the outcome requested,
(
e) state whether the applicant
(
i) is requesting an oral hearing, or
(ii) consents to complete the review solely on the basis of
written submissions,
(
f) provide the applicant's name, address and telephone number
and, if available, the applicant's email address,
(
g) if the applicant has an agent to act on the applicant's behalf
in respect of the review, provide the agent's name, a
telephone number at which the agent may be contacted
during regular business hours and, if available, the agent's
email address,
(
h) provide a mailing address and, if available, an email address
for the delivery of notices in respect of the review, and
(
i) be signed by the applicant or the applicant's agent.
Conducting a review
3(1) Subject to
section 5, if an application for review has been
received by a decision maker, the decision maker must hold a review.
(2) A review may be conducted solely on the basis of written
submissions if the applicant consents.
(3) The decision maker must determine the time and place of a review
and provide written notice to the applicant.
Timing of the review
4 Subject to
section 5,
(
a) if an oral hearing is required, a review must be held by the
decision maker within 60 days of receiving the review
application, and
(
b) if the applicant has consented to complete the review solely
on the basis of written submissions
(
i) the written submissions must be received by the
decision maker within 30 days of receiving the review
application and consent, and
(ii) a review must be held by the decision maker within 30
days of receiving the written submissions.
Refusal to hear
5(1) The decision maker may refuse to conduct a review if the
decision maker considers the review to be trivial or not made in good
faith.
(2) If the decision maker refuses to conduct a review, the decision
maker must provide a written notice that sets out the reasons for
refusal to the applicant within 30 days of receiving the application for
the review.
Adjournments
6(1) The granting and duration of an adjournment is in the sole
discretion of the decision maker.
(2) The time limits prescribed in sections 4 and 9 do not run during a
period of adjournment.
Right of applicant to attend
7 The applicant has the right to attend the review, make
representations, present evidence and cross-examine witnesses.
Evidence
8(1) The decision maker may receive any evidence that it considers
relevant to the matter being reviewed.
(2) The rules of evidence that apply in judicial proceedings do not
apply in a review.
Failure to appear
9 If a review is being held in person and the applicant fails to appear
for the review within one hour from the time set out in the applicable
notice or adjournment, the decision maker may
(
a) dismiss the review,
(
b) adjourn the review, or
(
c) conduct the review in the applicant's absence.
Review decisions
10(1) The decision maker may, on completion of a review, confirm,
rescind or vary the decision being reviewed.
(2) The decision maker must provide a written decision, with reasons,
within 30 days of the completion of the review to the applicant.
Part 2
Appeals
Appeal
11(1) An application for appeal must, as set out in
section 36(2) of the
Act, be received by the appeal tribunal within 60 days from the day the
party requesting the review was served with the review decision, and
must
(
a) be in writing,
(
b) identify the review decision that is being appealed,
(
c) state why the review decision should be rescinded,
(
d) state the outcome requested,
(
e) state whether the applicant
(
i) is requesting an oral appeal hearing, or
(ii) consents to complete the appeal hearing solely on the
basis of written submissions,
(
f) provide the appellant's name, mailing address and telephone
number and, if available, the appellant's email address,
(
g) if the appellant has an agent to act on the appellant's behalf
in respect of the review, provide the agent's name, a
telephone number at which the agent may be contacted
during regular business hours and, if available, the agent's
email address,
(
h) provide a mailing address and, if available, an email address
for delivery of notices in respect of the appeal, and
(
i) be signed by the appellant or the appellant's agent.
(2) The appeal tribunal must provide a copy of the application for
appeal
(
a) to the board or commission whose review decision is being
appealed, and
(
b) to the Minister.
(3) The board or commission whose review decision is being appealed
must, within 15 days of the date when the application for appeal was
provided, state in writing whether the board or commission
(
a) is requesting an oral appeal hearing, or
(
b) consents to complete the appeal hearing solely on the basis of
written submissions.
Conducting the appeal
12(1) Subject to
section 14, if an application for appeal has been
received by the appeal tribunal, the application for appeal must be
referred to a panel appointed in accordance with
section 26(1)(a).
(2) An appeal hearing may be conducted solely on the basis of written
submissions if the parties consent.
(3) The panel must determine the time and place of the appeal hearing
and provide written notice to
(
a) the parties,
(
b) the Minister, and
(
c) the Council.
Timing of the appeal hearing
13 Subject to
section 14,
(
a) if an oral appeal hearing is required, the panel must conduct
the appeal hearing within 120 days of the date when the
application for appeal was received by the appeal tribunal,
and
(
b) if the parties have consented to complete the appeal solely on
the basis of written submissions,
(
i) the written submissions must be received by the panel
within 30 days of the date when the panel received the
application for appeal and consent, and
(ii) the appeal hearing must be held within 90 days of the
date when the written submissions were received by the
appeal tribunal.
Refusal to refer
14(1) The chair of the appeal tribunal may refuse to refer an
application for appeal to a panel for hearing
(
a) if the chair of the appeal tribunal considers the application for
appeal to be trivial or not made in good faith, or
(
b) if the application for appeal does not satisfy the requirements
set out in
section 11(1).
(2) If the chair of the appeal tribunal refuses to refer an application for
appeal for hearing, the chair of the appeal tribunal must provide a
written notice that sets out the reasons for refusal to the appellant
within 30 days of receiving the application for appeal.
Adjournments
15(1) The granting and duration of an adjournment is in the sole
discretion of the panel.
(2) The time limits prescribed in sections 13 and 20 do not run during
a period of adjournment.
Chair may act
16(1) The chair of the tribunal may exercise a power or perform a
duty of the tribunal under
section 11(2) or 12(1).
(2) The chair of a panel may exercise a power of the panel under
sections 12(3) and 15.
Right of parties to attend
17 A party to an appeal has the right to attend the appeal hearing,
make representations, present evidence and cross-examine witnesses.
Evidence
18(1) A panel may receive any evidence that it considers relevant to
the matter being appealed.
(2) The rules of evidence that are applicable to judicial proceedings do
not apply in an appeal.
(3) A record of the appeal hearing must be made and maintained as
required by the Minister and must include
(
a) a written or electronic record of oral evidence, and
(
b) all records or things received in evidence.
Witnesses
19(1) A panel has the powers vested in the Court of Queen's Bench in
a civil action to
(
a) summon and enforce the attendance of a witness,
(
b) compel a witness to give evidence on oath or otherwise, and
(
c) compel a witness to produce any record or thing.
(2) Subsection (1) does not apply to a member of the Council or an
employee under the Council's administration.
Failure to appear
20 If an appeal hearing is being held in person and the appellant fails
to appear for the appeal hearing within one hour from the time set out
in the applicable notice or adjournment, the panel may
(
a) dismiss the appeal,
(
b) adjourn the appeal, or
(
c) conduct the appeal hearing in the appellant's absence.
Rules of Court
21 The provisions of the Alberta Rules of Court relating to the
payment of conduct money and witness fees apply.
Refusal to hear
22(1) The panel may, at any time following the referral of an
application for appeal, refuse to hear the appeal
(
a) if the panel considers the application for appeal to be trivial
or not made in good faith, or
(
b) if the application for appeal does not satisfy the requirements
set out in
section 11(1).
(2) If the panel refuses to hear an application for appeal, the chair of
the panel must provide a written notice that sets out the reasons for
refusal to the appellant within 30 days of the refusal.
Appeal decisions
23(1) The panel may, on completion of an appeal hearing,
(
a) confirm the decision being appealed, or
(
b) rescind the decision being appealed and refer the matter
being appealed back to the relevant decision maker with or
without recommendations.
(2) The panel must provide a written decision, with reasons, within 30
days of the completion of the appeal hearing to
(
a) the parties,
(
b) the Council, and
(
c) the Minister.
(3) The Minister may publish an appeal decision.
Cost recovery
24(1) The appeal tribunal may recover the cost of administering and
hearing an appeal, including the costs for legal counsel for the appeal
tribunal.
(2) The total costs assessed by the appeal tribunal under subsection
(1) is a debt owing to the Government of Alberta as follows:
(
a) for the first day of the hearing, 35% is owed by each party;
(
b) for every other day of the hearing, 50% is owed by each
party.
(3) The Minister may, on the request of a party, waive payment, in
whole or in part, of the costs recovered under subsection (1).
Part 3
Appeal Tribunal
Appointment of appeal tribunal
25(1) The Minister must establish an appeal tribunal.
(2) The appeal tribunal must consist of at least 5 members.
(3) The term of an appointment to the appeal tribunal is 3 years.
(4) A person who has been appointed to an appeal tribunal for 2
consecutive terms is not eligible to be appointed to the appeal tribunal
until one year has passed since the expiration of the 2nd consecutive
term.
(5) Despite subsections (2) and (3), the Minister may appoint
additional persons to the appeal tribunal to hear a single appeal and
that appointment shall not be considered as a term for the purpose of
subsection (4).
(6) The Minister must designate one member of the appeal tribunal as
the chair and another member as the vice-chair of the appeal tribunal.
(7) The chair of the appeal tribunal must perform the responsibilities
imposed on, and may exercise the powers given to, the chair by this
Regulation.
(8) If the chair is absent or unable to act for any reason or if the
position of chair is vacant, the vice-chair must act as chair and, while
so acting, must perform all the responsibilities imposed on, and may
exercise all the powers given to, the chair.
(9) In accordance with the Public Service Act, there may be appointed
employees to provide administrative services in respect of appeals.
(10) A member of the Council or an employee under the Council's
administration is not eligible to be an appeal tribunal member.
Appointment to hear appeal
26(1) When an application for an appeal is received by the appeal
tribunal, the chair of the appeal tribunal or, in the absence or inability
to act of the chair, the vice-chair must
(
a) appoint an appeal panel consisting of 3 members of the
appeal tribunal to hear the appeal, and
(
b) appoint one of the 3 members as chair.
(2) If the chair is a member of a panel under subsection (1), he or she
must designate himself or herself as chair of the panel for the purposes
of subsection (1).
(3) If the vice-chair is a member of a panel under subsection (1) and
the chair is not a member of the panel, the vice-chair must designate
himself or herself as chair of the panel for the purposes of subsection
(1).
(4) If a panel is established under subsection (1) and neither the chair
nor the vice-chair is designated as a member of the panel, the chair or
vice-chair, as the case may be, must designate one of the members of
the panel as chair.
Remuneration
27 The Minister may determine the remuneration and expenses
payable to members of the appeal tribunal.
Part 4
Transitional Provisions,
Repeal and Expiry
Transitional
28(1) The designation of a person who immediately before the
coming into force of this Regulation was a member, chair or vice-chair
of the appeal tribunal under the Review and Appeal Regulation
(AR 84/2010) shall continue in force as if the person had been
designated under
section 25 of this Regulation.
(2) A notice, adjournment, referral, refusal or any other thing done in
the course of a review or appeal under the Review and Appeal
Regulation (AR 84/2010) before this Regulation came into force is
considered to have been made or done under this Regulation and to
have the same effect under this Regulation as under the former
Regulation.
(3) This Regulation applies to an application for review submitted in
accordance with the Review and Appeal Regulation (AR 84/2010) that
has not been concluded.
(4) If, before the coming into force of this Regulation, a decision
maker as defined in the Review and Appeal Regulation (AR 84/2010)
has received an appeal for hearing in accordance with that Regulation,
the decision maker must complete the appeal hearing and provide an
appeal decision as if the former Review and Appeal Regulation
(AR 84/2010) was still in force.
Repeal
29 The Review and Appeal Regulation (AR 84/2010) is repealed.
Expiry
30 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 November 30, 2024.
Alberta Regulation 200/2016
Environmental Protection and Enhancement Act
MERCURY EMISSIONS FROM COAL-FIRED POWER PLANTS
(EXPIRY DATE EXTENSION) AMENDMENT REGULATION
Filed: December 12, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 326/2016)
on December 6, 2016 and jointly with the Minister of Environment and Parks
(M.O. 55/2016) on December 6, 2016 pursuant to sections 85, 86, 122 and 239 of the
Environmental Protection and Enhancement Act.
1 The Mercury Emissions from Coal-fired Power Plants
Regulation (AR 34/2006) is amended by this Regulation.
Section 13 is amended by striking out "December 31, 2016"
and substituting "December 31, 2021".
--------------------------------
Alberta Regulation 201/2016
Assured Income for the Severely Handicapped Act
APPLICATIONS AND APPEALS (MINISTERIAL)
AMENDMENT REGULATION
Filed: December 12, 2016
For information only: Made by the Minister of Human Services (M.O. 2016-32) on
December 12, 2016 pursuant to
section 12(2) of the Assured Income for the Severely
Handicapped Act.
1 The Applications and Appeals (Ministerial) Regulation
(AR 89/2007) is amended by this Regulation.
Section 3 is repealed.
3 This Regulation comes into force on the coming into
force of the Agencies, Boards and Commissions Review
Statutes Amendment Act.
Alberta Regulation 202/2016
Persons with Developmental Disabilities Services Act
PERSONS WITH DEVELOPMENTAL DISABILITIES
SERVICES AMENDMENT REGULATION
Filed: December 12, 2016
For information only: Made by the Minister of Human Services (M.O. 2016-33) on
December 12, 2016 pursuant to
section 23 of the Persons with Developmental
Disabilities Services Act.
1 The Persons with Developmental Disabilities Services
Regulation (AR 228/2013) is amended by this Regulation.
Section 5 is amended
(
a) by repealing subsection (2);
(
b) by repealing subsection (3) and substituting the
following:
(3) The Minister must set a date for hearing the appeal,
(
a) within 45 days after a proper notice of appeal has been
received, or
(
b) within 30 days after mediation has ended and a proper
notice of appeal has been received.
3 This Regulation comes into force on the coming into
force of the Agencies, Boards and Commissions Review
Statutes Amendment Act.
Alberta Regulation 203/2016
Investing in a Diversified Alberta Economy Act
ALBERTA INVESTOR TAX CREDITS REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 332/2016)
on December 13, 2016 pursuant to
section 55 of the Investing in a Diversified Alberta
Economy Act,
Table of Contents
Definitions and
interpretation
2 Equity share - prescribed rights
3 Eligible business corporation - permitted share transfers
4 Minimum capital requirements
5 Additional conditions for registration
6 Register to contain additional information
7 Calculation period
8 Deemed amount of investment
9 Small business - number of employees
10 Prescribed percentage of wages
11 Determination of wages and salaries
12 Business activities
13 Prescribed aggregate amount
14 Annual expense limits
15 Calculation re
section 20(9) of the Act
16 Additional conditions for tax credit certificates
17 Notice to Minister
18 Prescribed amount
19 Fair market value
20 Other prohibited investments
21 Other permitted investments
22 Permitted investment in a security
23 Reporting requirements
24 Cancellation of tax credit certificate
25 Coming into force
Definitions and
interpretation
1(1) In this Regulation, "Act" means the Investing in a Diversified
Alberta Economy Act.
(2) In the Act and this Regulation,
(a) "cash" and "money" mean lawful currency of Canada;
(b) "common interest group", in relation to a corporation, means
2 or more persons, whether or not associated or affiliated,
who, pursuant to an agreement, commitment or
understanding, exercise, or intend to exercise, in concert, any
rights attached to or associated with their shares.
(3) A shareholder who is receiving, or is proposed to receive, any fees
or remuneration from the corporation or whose associate or affiliate is
receiving, or is proposed to receive, any fees or remuneration from the
corporation is deemed to be not entitled to vote in person or by proxy
at a general meeting in respect of an ordinary resolution to approve or
ratify the payment of any fees or remuneration by the corporation.
(4) A debt instrument that meets all of the following criteria is hereby
prescribed as an investment that is an eligible investment for the
purposes of the definition of "eligible investment" in
section 2(1)(
h) of
the Act:
(
a) if the debt instrument is secured by property, the property has
a value that does not exceed 50% of the amount of the
indebtedness under the debt instrument at the time of the
investment;
(
b) the debt instrument does not
(
i) restrict the borrower from incurring other indebtedness,
(ii) penalize the borrower for incurring other indebtedness;
(
c) the outstanding balance from time to time under the debt
instrument bears interest at a rate not exceeding 12% per
annum, calculated semi-annually not in advance;
(
d) the debt instrument will be converted within 18 months after
its issuance into one or more equity shares issued by a small
business.
(5) A limited partnership that meets all of the following criteria is
hereby prescribed as a limited partnership unit for the purposes of
section 12(1)(d)(iv) of the Act:
(
a) the limited partnership unit is issued by a limited partnership
that
(
i) is formed under
section 52 of the Partnership Act,
(ii) has not received money as an investment from the
Alberta Enterprise Corporation,
(iii) is managed by a general partner who, if an individual,
resides in Alberta or, if a corporation, has a permanent
establishment, as defined in the Alberta Corporate Tax
Act, in Alberta,
(iv) within the same period as that prescribed under
section
10(2)(
a) of the Act will make eligible investments in
small businesses in amounts that, in total, are at least
twice the amounts, in total, that the limited partnership
has received from a venture capital corporation as
investments made by it under
section 12 of the Act, and
(
v) will keep the eligible investments described in
subclause (iv) for at least the same period as that
prescribed under
section 10(2)(
b) of the Act;
(
b) the venture capital corporation investing in a limited
partnership by acquiring the limited partnership unit as a
limited partner has satisfied the Minister through agreements
to which the venture capital corporation is a party, or by
other documentary evidence, that
(
i) the venture capital corporation, or
(ii) any of its shareholders or their associates
will not claim, take advantage of or otherwise avail itself,
himself or herself of any benefits, rights or entitlements,
including, but not limited to, any benefits, rights or
entitlements that are or may be available under the federal
Act, for the purpose of reducing the impact of any loss the
venture capital corporation or a shareholder may sustain in
holding or disposing of the limited partnership unit.
(6) For the purposes of
section 16 of the Act, amounts received
indirectly by a small business from venture capital corporations
include amounts received by an affiliate of the small business from
venture capital corporations.
Equity share - prescribed rights
2(1) Subject to the Act, prescribed rights and restrictions, for the
purposes of the definition of "equity share" in
section 2(1)(
k) of the
Act, are rights and restrictions attached to the share or rights and
restrictions contained in or forming part of an agreement, commitment
or understanding in respect of the share that
(
a) create a debt between the holder or beneficial owner of the
share and any other person,
(
b) impair or will impair the ability of a venture capital
corporation to maintain the levels of equity capital invested
in eligible investments required by
section 10 of the Act,
(
c) impair or will impair the ability of a corporation, in which a
venture capital corporation has made an eligible investment,
to carry on an ongoing business with a reasonable
expectation of profit, or
(
d) will entitle the holder or beneficial owner of the share to
reduce the impact of any loss the holder or beneficial owner
will sustain in holding or disposing of the share.
(2) Notwithstanding subsection (1), prescribed rights and restrictions
do not include rights and restrictions that become operative upon the
death, permanent disability, bankruptcy or other similar hardship of a
shareholder of the venture capital corporation or the small business in
which the venture capital corporation makes an eligible investment if
that shareholder is a party to a contract with the venture capital
corporation or the small business.
(3) For the purpose of subsection (2), "similar hardship" means a
hardship that, in the opinion of the Minister, warrants overriding the
considerations referred to in subsection (1).
Eligible business corporation - permitted share transfers
3 The following circumstances are prescribed for the purposes of
section 42(6)(
b) of the Act:
(
a) the share transfer is a direct share transfer by the purchaser to
the purchaser's retirement savings plan, tax-free savings
account or registered retirement income fund;
(
b) the share transfer is a direct share transfer by the purchaser to
a spousal retirement savings plan or spousal registered
retirement income fund;
(
c) the share transfer is a share transfer to an executor or estate
due to the death of a purchaser;
(
d) the share transfer occurs as the result of a company share
exchange right, share reorganization, acquisition or
amalgamation and
(
i) the eligible business corporation remains registered
under
section 34 of the Act, and
(ii) the registered owner of the share is the same after the
share transfer takes place;
(
e) the share transfer occurs as the result of the exercise of a
warrant, option or right entitling the holder to purchase or
acquire an equity share of an eligible business corporation as
defined in
section 2(1)(
k) of the Act, and the registered
owner of the equity share so purchased or acquired is the
same as the registered holder of the warrant, option or right.
Minimum capital requirements
4(1) For the purposes of
section 10(2)(
a) of the Act, a venture capital
corporation must have invested in eligible investments
(
a) an amount at least equal to 40% of the equity capital it has
raised during any fiscal year, by the end of its first following
fiscal year, and
(
b) an amount at least equal to 80% of the equity capital it has
raised during any fiscal year, by the end of its second
following fiscal year.
(2) For the purposes of
section 10(2)(
b) of the Act, a venture capital
corporation must keep the amounts referred to in subsection
(1) invested in eligible investments for at least 5 years after the date of the
applicable investment.
(3) An amount referred to in subsection (1)(
a) or (
b) is reduced by the
amount of any dividend paid from the venture capital corporation to its
shareholders if the dividend is not one that is paid from the venture
capital corporation's
(
a) net income, or
(
b) retained earnings
calculated in accordance with generally accepted accounting
principles.
Additional conditions for registration
5(1) The articles of a corporation applying for registration under the
Act must provide that fees or remuneration of any kind to any
shareholder, director or officer of the corporation, or to any affiliate or
associate of those persons, are prohibited except as permitted by an
annual ordinary resolution.
(2) It is a requirement under
section 4(
f) of the Act that the articles of
the venture capital corporation state that a majority of the directors of
the corporation must be ordinarily resident in Alberta.
(3) It is a requirement under
section 4(
f) of the Act that the articles of
the venture capital corporation state that on registration of the
corporation under the Investing in a Diversified Alberta Economy Act
the corporation is subject to the Investing in a Diversified Alberta
Economy Act.
(4) It is a requirement under
section 35(1)(
e) of the Act that the small
business does not receive direct or indirect investment from the
Alberta Enterprise Corporation after the coming into force of this
section.
Register to contain additional information
6 In addition to the information referred to in
section 6(3) of the Act,
the register of venture capital corporations must also include the
following information:
(
a) the principal place of business of the venture capital
corporation;
(
b) the total amount of equity capital approved under
section 11
of the Act;
(
c) the amount of equity capital, to the knowledge of the
Minister, that the venture capital corporation has raised;
(
d) the amount that the venture capital corporation has, to the
knowledge of the Minister, invested in eligible investments.
Calculation period
7(1) For the purposes of sections 9, 11 and 12, "calculation period"
means
(
a) where a small business or affiliate of a small business has
been in business for a period of less than one year as at the
date of the calculation, that entire period, or
(
b) where a small business or affiliate of a small business has
been in business for one year or longer, the 52 weeks just
ended at the date of the calculation.
(2) For the purpose of applying the formulas in sections 9, 11 and 12
to determine whether a proposed investment by a venture capital
corporation in a small business is an eligible investment, the
calculation period ends immediately before the venture capital
corporation proposes to make the investment.
Deemed amount of investment
8(1) For the purposes of
section 10(2) of the Act, the amount of equity
capital invested by a venture capital corporation in an eligible
investment is deemed to be zero as at the date the investment was
made if an agreement, commitment or understanding in respect of that
investment may result in the acquisition of that investment from the
venture capital corporation within 5 years or such shorter time as the
Minister specifies.
(2) Subsection (1) does not apply with respect to an agreement,
commitment or understanding authorizing the acquisition of the
investment on the death, permanent disability, bankruptcy or similar
hardship of a shareholder of the venture capital corporation or the
small business in which the venture capital corporation makes an
eligible investment if that shareholder is a party to a contract with the
venture capital corporation or the small business.
(3) For the purposes of subsection (2), "similar hardship" means a
hardship that, in the opinion of the Minister, warrants overriding
subsection (1).
Small business - number of employees
9(1) The number of employees of a corporation must be calculated, at
the option of the venture capital corporation or the eligible business
corporation, in accordance with either of the following formulas:
(
a) Number of Employees = Total Hours
40 x w
where
Total Hours = the total hours worked by all employees each
of whom worked for at least 20 hours (counting all time
worked by each employee whether for the small business,
any of its affiliates or both) during any week of the
calculation period;
w = the number of weeks in the calculation period;
(
b) Number of Employees = Employee Costs x 52 ö 57 000
where
Employee Costs = all amounts paid or payable by the small
business to or on behalf of employees for work performed or
services provided by them during the calculation period;
w = the number of weeks in the calculation period.
(2) For the purpose of sections 12(1)(
a) and 35(1)(
a) of the Act, the
number of employees of a small business together with its affiliates, is
the sum of the number of employees calculated pursuant to subsection
(1) of this
section for the small business and each of its affiliates.
Prescribed percentage of wages
10 For the purposes of sections 12(1)(
b) and 35(1)(
b) of the Act, the
percentage of wages in Alberta is
(
a) in the case of a small business engaged in the export of goods
from Alberta or in the provision of services outside Alberta,
at least 50%, and
(
b) in the case of all other small businesses, at least 75%.
Determination of wages and salaries
11 The percentage of wages and salaries that are paid to employees
of a corporation or corporations for the purposes of sections 12(1)(
b) and 35(1)(
b) of the Act must be determined in accordance with the
following formula:
Percentage of wages and salaries = Wages (AB) x 100
Total Wages
where
Wages (AB) = the total remuneration that was paid to employees,
of the corporation or corporations, who regularly reported to work
at operations located in Alberta during the calculation period;
Total Wages = the total remuneration that was paid to all
employees, of the corporation or corporations, during the
calculation period.
Business activities
12(1) The following are business activities for the purposes of
sections 11(c), 12(1)(
c) and 37(3) of the Act:
(
a) the development and operation of a destination tourist resort,
a tourist attraction or a tourist service, if
(i) 50% or more of the gross revenue of the resort,
attraction or service is derived from tourists, and
(ii) the resort, attraction or service is located outside a
national park of Canada;
(
b) the research, development and commercialization of
proprietary technologies produced within Alberta including
services that are directly associated with the export of the
technology and are provided inside or outside of Alberta;
(
c) the development within Alberta for commercial use of
interactive digital media or video game product that
(
i) responds to user interactions with moving images,
animation, video or audio, and
(ii) is not, based on inquiries the Minister considers
adequate and appropriate, a product for which public
financial support would be contrary to public policy;
(
d) the development and delivery within Alberta of
post-production services including
(
i) the development of visual effects and digital animation
for commercial use, and
(ii) the editing of video and audio, subtitling, closed caption
and the creation and editing of visual and sound effects,
other than post-production services that, in the Minister's
opinion, are directly associated with a product for which
public financial support would be contrary to public policy.
(2) Despite subsection (1), a business activity prescribed under
subsection (1) does not include
(
a) exploration or extraction of minerals or the operation of a
mine unless those activities are carried on by a small business
that is substantially engaged in the activities referred to in
subsection (1)(b),
(
b) financial services such as providing loans, selling insurance
or real estate or trading in securities,
(
c) property management or the rental or leasing of land or
improvements,
(
d) the development of or improvement to land,
(
e) agricultural activities other than non-traditional agricultural
activities such as
(
i) specialized small crops, livestock and poultry
production, or
(ii) high technology enterprises,
(
f) retail and commercial services other than services referred to
in subsection (1)(
a) that are provided by a small business that
derives more than 50% of its gross revenue from the
provision of services to tourists,
(
g) restaurant or food services, or
(
h) the lease of tangible or intangible personal property to a
person for the person's personal consumption or use.
(3) The Minister may exercise his or her discretion to the extent
required in reaching a conclusion that a business activity is one
prescribed under subsection (1) or (2).
(4) For the purposes of sections 12(1)(c), 35(1)(
c) and 37(3) of the
Act, a small business is substantially engaged in a business activity
prescribed under subsection (1)
(
a) if the result obtained from the following formula is greater
than 0.5:
Activity Assets + Activity Expenses
Total Assets + Total Expenses
where, for the purposes of this clause,
Activity Assets = the value of assets of the small business
used in Alberta in the business activity;
Total Assets = the total value of all assets of the small
business;
Activity Expenses = all expenses incurred during the
calculation period with respect to the portion of the
business activity carried on in Alberta;
Total Expenses = the total of all expenses incurred during
the calculation period with respect to all operations of the
small business,
(
b) if the small business's permanent establishment, as defined in
the Alberta Corporate Tax Act, is in Alberta, and
(
c) if not more than 20% of the small business's assets are
located outside of Alberta.
(5) For the purpose of the calculation in subsection (4)(a), the value of
assets and expenses must be determined in accordance with generally
accepted accounting principles.
Prescribed aggregate amount
13(1) For the purposes of
section 16(1)(
a) of the Act, the prescribed
amount is $10 million.
(2) For the purposes of
section 16(1)(
b) of the Act,
(
a) the prescribed amount is $10 million, and
(
b) the prescribed period is the previous 2 years.
Annual expense limits
14(1) A venture capital corporation may incur annual expenses of no
more than 20% of its equity capital raised under
section 11 of the Act,
other than expenses paid out of retained earnings, if
(
a) the expenses are reasonable and are incurred for
(
i) share issuance,
(ii) office occupancy,
(iii) legal fees,
(iv) preparation of financial accounts by an external
accountant,
(
v) preparation of the annual return under
section 23, or
(vi) a management fee of no more than 3% per annum of the
equity capital raised,
and
(
b) any expenses paid to a person who controls directly or
indirectly, or who belongs to a group that controls directly or
indirectly, the venture capital corporation have been
specifically approved by ordinary resolution in advance of
payment and are made to a person whose business it is to
provide the services or things in respect of which the
expenses were incurred.
(2) For the purposes of subsection (1), retained earnings and expenses
must be determined in accordance with generally accepted accounting
principles.
Calculation re
section 20(9) of the Act
15 An amount authorized under
section 20(9) of the Act to be paid
out of the investment protection account must be the lesser of
(a) 30% of the amount for which the share acquired was
originally issued, and
(
b) the amount deposited in the investment protection account in
respect of the share acquired.
Additional conditions for tax
credit certificates
16 It is a condition under
section 21(6)(
g) of the Act that the equity
capital that is the subject of the application for the tax credit
certificates will not be used by the venture capital corporation to invest
in a small business that has received a direct or indirect investment
from the Alberta Enterprise Corporation after the coming into force of
this section.
Notice to Minister
17 A venture capital corporation or eligible business corporation
must within 30 days notify the Minister
(
a) of ceasing to maintain a place of business, or a permanent
establishment, as defined in the Alberta Corporate Tax Act,
in Alberta,
(
b) of changing its registered office under the Business
Corporations Act,
(
c) of acquiring a different or additional place of business or
permanent establishment, as defined in the Alberta Corporate
Tax Act, in Alberta or elsewhere,
(
d) of changing its fiscal year end,
(
e) of directly or indirectly acquiring, redeeming or cancelling
one of its own shares,
(
f) in the case of a venture capital corporation
(
i) of failing to comply with
section 10(2), 13(1), 14(1), 15,
16, 17(1), 18, 19(1) or (2) or 20 of the Act,
(ii) if an investment ceases to meet the criteria set out in
section 12(1)(
b) or (
c) of the Act,
(iii) of passing a resolution referred to in
section 23(1)(
a) to
(
c) or 24(1)(
a) of the Act, or
(iv) of taking or having taken against it action referred to in
section 25(
b) to (
d) of the Act,
(
g) in the case of an eligible business corporation
(
i) of failing to comply with
section 37, 40, 41, 42(3) or
(4) or 48 of the Act, or
(ii) of ceasing to meet the criteria set out in
section 35(1) of
the Act.
Prescribed amount
18 For the purposes of
section 40(1) of the Act, the prescribed
amount is $5 million.
Fair market value
19 The onus of demonstrating that goods and services are sold for
fair market value to a small business in accordance with sections
13(1)(
e) and 48(
e) of the Act is on the venture capital corporation and
the small business.
Other prohibited investments
20 Sections 13(1)(g)(iv) and 48(g)(iv) of the Act do not apply where
all or part of the proceeds of the investment referred to in that
section
are directly or indirectly used, or intended to be used, by the small
business to purchase any assets of a proprietorship, partnership, joint
venture, trust or corporation
(
a) for utilization in a business or activity that is neither the same
as nor similar to any business or activity that the seller of the
assets to the small business carried on before, or at the time
of, the sale of the assets to the small business,
(
b) that is the subject of a proposal to, or arrangement with, its
creditors that has been approved by the court under the
Bankruptcy and Insolvency Act (Canada), or
(
c) if all or substantially all of the purchased assets are under the
control of a receiver, receiver manager, sequestrator or
trustee in bankruptcy.
Other permitted investments
21 For purposes of
section 19(1)(
e) of the Act, securities that are
issued by the Government of Alberta or Canada are permitted
investments.
Permitted investment in a security
22 A venture capital corporation must not make an investment in a
security under
section 19(1)(
c) of the Act unless the security is issued
directly to the venture capital corporation by the small business.
Reporting requirements
23 For the purposes of
section 28 of the Act, a venture capital
corporation must, with respect to its most recently ended fiscal year,
include the following information in its annual return:
(
a) the amount of equity capital raised by the venture capital
corporation;
(
b) the aggregate value at cost of investments made by the
venture capital corporation, the name of each small business
the shares of which the venture capital corporation sold and
the value at cost of those shares;
(
c) the balance held in the investment protection account of the
venture capital corporation at the end of the fiscal year;
(
d) the aggregate amount of expenses incurred by the venture
capital corporation and the amount paid as management fees;
(
e) whether any fees or remuneration were paid to the
shareholders, officers or directors of the venture capital
corporation or to any associate or affiliate of any of them by
a small business in which the venture capital corporation
made an eligible investment;
(
f) whether the articles of the venture capital corporation were
amended in a manner that changed the share structure of the
venture capital corporation or altered any rights or
restrictions attached to any share of the venture capital
corporation;
(
g) the amount of all dividends received by the venture capital
corporation in respect of an eligible investment made by it in
a small business;
(
h) whether the venture capital corporation redeemed any of its
shares;
(
i) whether a share redemption referred to in clause (
h) was
reported to the Minister;
(
j) in relation to a share redemption referred to in clause (
h) that
was not reported to the Minister, the name of each investor
whose shares were redeemed, the date of each redemption,
the number of shares redeemed in each redemption, the
investor's cost of each share redeemed in each redemption
and the consideration paid by the venture capital corporation
in respect of the redemption;
(
k) whether the venture capital corporation paid any expenses to
any person or group of persons who, at the time the payment
was made, directly or indirectly controlled the venture capital
corporation;
(
l) whether the venture capital corporation notified the Minister
of the occurrence of any events referred to in
section 17.
Cancellation of tax credit certificate
24(1) The Minister must cancel a tax credit certificate and issue a new
tax credit certificate where information on the original certificate is
incorrect or has changed since the date the original tax credit certificate
was issued or for any other similar reason the Minister considers
appropriate.
(2) A tax credit certificate cancelled under subsection (1) is deemed
never to have been issued.
(3) A tax credit certificate issued under subsection (1) is deemed to
have been issued on the same date that the certificate cancelled under
subsection (1) was issued under
section 21 or 39 of the Act.
Coming into force
25 This Regulation comes into force on January 1, 2017.
--------------------------------
Alberta Regulation 204/2016
Investing in a Diversified Alberta Economy Act
ALBERTA CAPITAL INVESTMENT TAX CREDITS REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 333/2016)
on December 13, 2016 pursuant to
section 69 of the Investing in a Diversified Alberta
Economy Act.
Table of Contents
Interpretation
2 Operation of tourism infrastructure business
3 Applications for conditional approval letters
4 Minimum amount of investment
5 Maximum amount of tax credit
6 Evaluation of applications
7 Applications for tax credit certificate
8 Cancellation of tax credit certificate
9 Coming into force
Interpretation
1(1) In this Regulation,
(a) "Act" means the Investing in a Diversified Alberta Economy
Act;
(b) "NAICS Canada 2012" means the North American Industry
Classification System (NAICS) Canada 2012 published by
Statistics Canada.
(2) For the purposes of
section 56(1)(
j) of the Act, "tourism activities"
means business activities of an eligible corporation that fall within one
or more of the following NAICS Canada 2012 categories:
(a) 487 Scenic and sightseeing transportation;
(b) 721113 Resorts;
(c) 713920 Skiing facilities;
(d) 713990 All other amusement and recreation industries;
(e) 721211 Recreational vehicle parks and campgrounds;
(f) 721212 Hunting and fishing camps;
(g) 721213 Recreational (except hunting and fishing) and
vacation camps.
Operation of tourism infrastructure business
2 An eligible corporation that provides or operates tourism
infrastructure must provide or operate that infrastructure for at least
120 consecutive days in a 12-month period to be eligible to be issued a
conditional approval letter.
Applications for conditional approval letters
3(1) An eligible corporation may apply for a conditional approval
letter during a 30-day application period every 180 days as determined
by the Minister.
(2) The minimum amount of the anticipated capital cost of the eligible
qualified properties in an eligible corporation's proposed investment
plan for the plan to be approved as an approved investment plan and
for the corporation to be issued a conditional approval letter under
section 58(2) of the Act is the amount set out in
section 4.
Minimum amount of investment
4 The minimum amount of the anticipated capital cost of the eligible
qualified properties in an approved investment plan for an eligible
corporation to be granted a capital investment tax credit under the Act
is $1 000 000.
Maximum amount of tax credit
5 The maximum amount of a tax credit that may be granted in respect
of an approved investment plan is $5 000 000.
Evaluation of applications
6 The Minister may assess applications for a conditional approval
letter received in an application period in accordance with the
requirements set out in
section 58 of the Act.
Applications for tax credit certificate
7 A corporation that applies for a tax credit certificate in accordance
with
section 61 of the Act must
(
a) provide evidence that the eligible qualified property has been
acquired and is available for use, and
(
b) declare that the corporation will hold the eligible qualified
property for at least one year in Alberta from the date of the
issuance of the tax credit certificate.
Cancellation of tax credit certificate
8(1) The Minister must cancel a tax credit certificate and issue a new
tax credit certificate where information on the original tax credit
certificate is incorrect or has changed since the date the original tax
credit certificate was issued or for any other similar reason the Minister
considers appropriate,
(2) A tax credit certificate cancelled under subsection (1) is deemed
never to have been issued.
(3) A tax credit certificate issued under subsection (1) is deemed to
have been issued on the same date that the certificate cancelled under
subsection (1) was issued under
section 61(2) of the Act.
Coming into force
9 This Regulation comes into force on January 1, 2017.
--------------------------------
Alberta Regulation 205/2016
Judgment Interest Act
JUDGMENT INTEREST AMENDMENT REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 340/2016)
on December 13, 2016 pursuant to
section 4 of the Judgment Interest Act.
1 The Judgment Interest Regulation (AR 215/2011) is
amended by this Regulation.
Section 1 is amended by adding the following after
clause (x):
(
y) the interest rate from January 1, 2017 to December 31, 2017
is prescribed at 0.53% per year.
--------------------------------
Alberta Regulation 206/2016
Safety Codes Act
AMUSEMENT RIDES STANDARDS AMENDMENT REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 345/2016)
on December 13, 2016 pursuant to
section 65 of the Safety Codes Act.
1 The Amusement Rides Standards Regulation
(AR 223/2001) is amended by this Regulation.
Section 2(1) is repealed and the following is substituted:
Codes and standards
2(1) The following standards published by the American Society for
Testing and Materials International are declared in force as amended
or replaced from time to time:
(
a) ASTM F2783-14, Standard Practice for Design,
Manufacture, Maintenance and Inspection of Amusement
Rides and Devices, in Canada, except the following
referenced standards:
(
i) ASTM F2007, Standard Practice for Design,
Manufacture and Operation of Concession Go-Karts
and Facilities;
(ii) ASTM F2376, Standard Practice for Classification,
Design, Manufacture, Construction and Operation of
Waterslide Systems;
(
b) ASTM F2959-14, Standard Practice for Special
Requirements for Aerial Adventure Courses, for zip lines
only.
Section 3 is repealed.
Section 3.1(1) to (4) are repealed and the following is
substituted:
Metal defects
3.1(1) Despite
section 2, this
section applies following the
observation of a metal defect, whether through the maintenance,
inspection, testing, operation and emergency procedures referred to
in F1193 Standard Practice for Quality, Manufacture and
Construction of Amusement Rides and Devices, or otherwise.
(2) If a metal defect is observed in a critical component of an
amusement ride or device, the ride or device shall be removed from
service.
(3) The ride or device may be returned to service only if the
following are completed and documented, indicating that the metal
defect is not critical to the safe operation of an amusement ride or
device:
(
a) an assessment by the original manufacturer or a professional
engineer to determine whether the metal defect is critical to
the safe operation of the ride or device;
(
b) Non-destructive testing in accordance with F1193 Standard
Practice for Quality, Manufacture and Construction of
Amusement Rides and Devices.
5 This Regulation comes into force on January 1, 2017.
Alberta Regulation 207/2016
Safety Codes Act
PERMIT (EXPIRY DATE EXTENSION) AMENDMENT REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 346/2016)
on December 13, 2016 pursuant to
section 65 of the Safety Codes Act.
1 The Permit Regulation (AR 204/2007) is amended by this
Regulation.
Section 29 is amended by striking out "January 31, 2017"
and substituting "January 31, 2019".
--------------------------------
Alberta Regulation 208/2016
Safety Codes Act
PLUMBING CODE AMENDMENT REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 347/2016)
on December 13, 2016 pursuant to
section 65 of the Safety Codes Act.
1 The Plumbing Code Regulation (AR 119/2007) is
amended by this Regulation.
Section 1 is amended
(
a) in subsection (1)(
c) by striking out "2010" and
substituting "declared in force by this Regulation";
(
b) by adding the following after subsection (2):
(3) References to the following expressions in a code that is
declared in force by this Regulation are to be read as references
to the "Alberta Building Code as declared in force by the
Building Code Regulation (AR 31/2015)":
(a) "National Building Code of Canada";
(b) "NBC".
(4) References to the following expressions in a code that is
declared in force by this Regulation are to be read as references
to the "Alberta Fire Code as declared in force by the Fire Code
Regulation (AR 32/2015)":
(a) "National Fire Code of Canada";
(b) "NFC".
Section 4 is amended
(
a) by repealing subsection (1) and substituting the
following:
Plumbing Code
4(1) The National Plumbing Code of Canada 2015, published
by the National Research Council of Canada, is declared in
force as amended or replaced from time to time.
(
b) by repealing subsections (2) to (17).
Section 5 is amended by striking out "referred to in, and as
varied by,
section 4" and substituting "declared in force by this
Regulation".
5 This Regulation comes into force on January 1, 2017.
--------------------------------
Alberta Regulation 209/2016
Mines and Minerals Act
EMERGING RESOURCES ROYALTY REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 348/2016)
on December 13, 2016 pursuant to sections 5 and 36 of the Mines and Minerals Act.
Table of Contents
Interpretation
2 Application of regulation
3 Project application
4 Project activity level
5 Project benefit period
6 Project benefit period commencement date
7 Project approval
8 Eligible well
9 C* multiplier and C*ERP
10 C*ERP pool
11 Royalty
12 Re-entry
13 Project approval amendment
14 Project approval revocation
15 Project approval termination
16 Furnishing information
17 Project benefit period extension
18 Expiry
19 Coming into force
Schedule
Interpretation
1(1) In this Regulation,
(a) "approved project" means a project granted an approval
under
section 7;
(b) "C*" means the C* for a well as determined under the
Petroleum Royalty Regulation, 2017 or the Natural Gas
Royalty Regulation, 2017, as the case may be;
(c) "C*ERP" means the C*ERP for an eligible well calculated in
accordance with
section 9;
(d) "C*ERP pool" means the C*ERP pool for an approved project
determined in accordance with
section 10;
(e) "formation" is an underground geological formation
according to the records of the Alberta Energy Regulator;
(f) "hydrocarbon" includes any crude oil, natural gas, gas
product or oil sands product that is subject to the calculation
of royalty under the Petroleum Royalty Regulation, 2017, the
Natural Gas Royalty Regulation, 2017 or the Oil Sands
Royalty Regulation, 2009, as the case may be;
(g) "maximum number of eligible wells" means the maximum
number of eligible wells calculated in accordance with
section 10(3);
(h) "oil sands project" means a Project as defined in the Oil
Sands Royalty Regulation, 2009;
(i) "project activity level" means the project activity level
determined in accordance with
section 4 and specified in a
project approval under
section 7;
(j) "project approval" means an approval granted under
section
(k) "project area" means the project area referred to in
section
3(2)(a);
(l) "project benefit period" means the project benefit period
determined in accordance with
section 5 and specified in a
project approval under
section 7;
(m) "project benefit period commencement date" means the
project benefit period commencement date determined in
accordance with
section 6;
(n) "project evaluation area" means the project evaluation area
referred to in
section 3(2)(b);
(o) "project participant" means a project participant referred to in
section 3(2)(d);
(p) "project representative" means the person
(
i) making an application under
section 3, or
(ii) approved by the Minister as the project representative
according to the records of the Department of Energy;
(q) "target formation" means the target formation referred to in
section 3(2)(c);
(r) "total potential wells within the project area" means 4 wells
per
section of the project area, unless otherwise determined
by the Minister;
(s) "total potential wells within the project evaluation area"
means 4 wells per
section of the project evaluation area,
unless otherwise determined by the Minister.
(2) A reference in this Regulation to hydrocarbons obtained from a
well is also a reference to hydrocarbons produced or recovered from a
well.
(3) Except in
section 16, a reference in this Regulation to a month,
whether by its name or not, shall be construed as the period
commencing at 8:00 a. m. Mountain Standard Time on the first day of
the month and ending immediately before 8:00 a. m. Mountain
Standard Time on the first day of the next month.
Application of regulation
2 This Regulation applies only to hydrocarbons that are obtained
from an eligible well on or after January 1, 2017, and on or before
December 31, 2039, in which the percentage of Crown ownership, as
determined by the Minister in accordance with
section 26.1 of the
Petroleum and Natural Gas Tenure Regulation (AR 263/97), is greater
than 0.
Project application
3(1) An application for a project may be made on or after January 1,
2017 and on or before December 31, 2024.
(2) An application must be in the form provided by the Minister and
contain the information required by the Minister, including the
following:
(
a) the project area, which must be an area of land greater than
or equal to 18 sections and less than or equal to 144 sections;
(
b) the project evaluation area, determined in accordance with
parameters specified by the Minister;
(
c) the target formation;
(
d) the project participants;
(
e) an agreement between the project participants in respect of
the project, in the form provided by the Minister, if there is
more than one project participant.
(3) Only one person may make an application and that person must
(
a) hold a valid and subsisting hydrocarbon agreement issued
under the Mines and Minerals Act applicable to the project
area, and
(
b) must be a project participant.
(4) At the time of application, the project participants must
collectively hold one or more valid and subsisting hydrocarbon
agreements issued under the Mines and Minerals Act applicable to the
entire project area.
(5) An application must not include a well that is part of an oil sands
project application pending a decision by the Minister.
Project activity level
4(1) In this section,
(a) "bottom hole location" means the subsurface point at the
greatest measured penetration of a well;
(b) "confidential well" means a confidential well as defined in
the Oil and Gas Conservation Rules (AR 151/71) or
Directive 056: Energy Development Application and
Schedules, as published by the Alberta Energy Regulator, as
amended from time to time;
(c) "evaluation well" means a well within the project evaluation
area, based on bottom hole location, penetrating the target
formation, including the following:
(
i) dry holes;
(ii) confidential wells of a project participant;
(iii) abandoned wells;
(iv) commingled wells;
(
v) wells producing a hydrocarbon.
(2) The project activity level is calculated by dividing the total number
of evaluation wells by the total number of potential wells within the
project evaluation area, expressed as a percentage.
Project benefit period
5 The project benefit period is the number of years specified in
column 2 of the
Schedule that corresponds to the project activity level
calculated under
section 4(2) and specified in column 1 of the
Schedule.
Project benefit period commencement date
6(1) Subject to subsection (2), the project benefit period commences
on the first day of the 3rd month following the month a project is
approved under
section 7.
(2) Subject to subsection (3), a project representative may, in an
application under
section 3, or in a written request submitted to the
Minister within 3 months of the date a project is approved under
section 7, select the month in which the project benefit period
commences
(
a) from between and including the month an application is
received under
section 3 and the 3rd month following the
month the project is approved under
section 7, or
(
b) from between and including the month an oil sands project
application is received by the Minister and the 3rd month
following the month the project is approved under
section 7,
in the case of a project that includes a well that is part of an
oil sands project application denied approval.
(3) The project benefit period commences on the first day of a month
selected under subsection (2).
Project approval
7(1) The Minister may approve a project if
(
a) the total number of evaluation wells, as defined in
section
4(1)(c), at the time of application is less than or equal to 10%
of the total potential wells within the project evaluation area,
rounded up to the next whole number,
(
b) the total number of wells producing a hydrocarbon from the
target formation within the project area at the time of
application is less than or equal to 15% of the total potential
wells within the project area, rounded up to the next whole
number, and
(
c) the Minister is of the opinion that
(
i) there is a large development potential of hydrocarbons
from the target formation,
(ii) the project would not be commercially viable if not
approved,
(iii) positive net royalty from the production of
hydrocarbons from the target formation is likely if the
project is approved, and
(iv) it is in the public interest to approve the project.
(2) The Minister shall specify in an approval under subsection (1) the
following:
(
a) the project participants;
(
b) the project area;
(
c) the project evaluation area;
(
d) the target formation;
(
e) the project activity level;
(
f) the project benefit period;
(
g) the maximum number of eligible wells;
Eligible well
8(1) Subject to subsection (2), an eligible well is a well that
(
a) is spud
(
i) within the project area,
(ii) during the project benefit period, and
(iii) for the purpose of producing a hydrocarbon from the
target formation,
and
(
b) commences production during the project benefit period.
(2) A well is not an eligible well if the well
(
a) is spud after December 31, 2034,
(
b) commences production after December 31, 2034,
(
c) is part of an oil sands project,
(
d) produces from a formation other than the target formation,
(
e) produces from 2 or more formations, or
(
f) has been at any time part of an approved scheme under the
Enhanced Hydrocarbon Recovery Royalty Regulation or the
Enhanced Oil Recovery Royalty Regulation.
C* multiplier and C*ERP
9(1) The C* multiplier for an eligible well is the value specified in
column 4 of the
Schedule that corresponds to
(
a) the number of years set out in column 3 of the
Schedule that
have elapsed between the project benefit period
commencement date and the date the well first commenced
production, and
(
b) the project activity level calculated under
section 4(2).
(2) The C*ERP for an eligible well is calculated by multiplying the C*
for the well by the C* multiplier applicable to the well determined in
accordance with subsection (1).
C*ERP pool
10(1) In this section, "excluded well" means a well in a project area
that is
(
a) spud before the project benefit period commencement date,
(
b) producing a hydrocarbon from the target formation at the
time an application is made under
section 3, or
(
c) producing a hydrocarbon from more than one formation,
including the target formation.
(2) The C*ERP pool for an approved project is determined by
aggregating the C*ERP for each eligible well until the maximum
number of eligible wells is reached in accordance with subsection (3).
(3) The maximum number of eligible wells is calculated by
(
a) multiplying the total potential wells within the project area
by 0.15,
(
b) rounding the result obtained under clause (
a) up to the next
whole number, and
(
c) subtracting the total number of excluded wells from the result
obtained under clause (b).
Royalty
11(1) In this section, "cumulative revenue" means the total revenue,
as determined by the Minister under the Petroleum Royalty Regulation,
2017 or the Natural Gas Royalty Regulation, 2017, as the case may be,
from hydrocarbons obtained from a well since the project benefit
period commencement date.
(2) If an eligible well is part of a C*ERP pool,
(
a) the C*ERP for the well supersedes the C* for the well for the
purposes of the Petroleum Royalty Regulation, 2017 or the
Natural Gas Royalty Regulation, 2017, as the case may be,
and
(
b) the royalty payable to the Crown on hydrocarbons obtained
from the well is calculated
(
i) at a rate of 5% until the earlier of
(A) 5 years following the expiry of the project benefit
period,
(
B) the aggregate cumulative revenue of eligible wells
forming part of the C*ERP pool is equal to the
amount of the C*ERP pool, or
(
C) December 31, 2039,
(ii) if subclause (i)(A), (
B) or (
C) apply, in accordance with
the Petroleum Royalty Regulation, 2017 or the Natural
Gas Royalty Regulation, 2017, as the case may be,
deeming the cumulative revenue equal to the C* for the
well.
Re-entry
12(1) In this section, "re-entry activity" means re-entry as defined in
the Petroleum Royalty Regulation, 2017 or the Natural Gas Royalty
Regulation, 2017, as the case may be.
(2) If a re-entry activity occurs in respect of an eligible well that is
part of a C*ERP pool and results in incremental production of
hydrocarbons from only the target formation, the incremental C*
associated with the re-entry activity shall be added to the C*ERP for the
well and the C*ERP pool for the approved project.
(3) If a re-entry activity occurs in respect of an eligible well that is
part of a C*ERP pool and results in incremental production of
hydrocarbons from 2 or more formations,
(
a) the well shall cease being an eligible well as of the date
incremental production commences,
(
b) the incremental C* associated with the re-entry activity
(
i) shall not be included in the C*ERP for the well and the
C*ERP pool for the approved project, and
(ii) shall be subject to the Petroleum Royalty Regulation,
2017 or the Natural Gas Royalty Regulation, 2017, as
the case may be,
(
c) the C*ERP calculated for the well prior to the re-entry activity
shall continue to be part of the C*ERP pool for the approved
project, and
(
d) the revenue from the well after the incremental production
commences,
(
i) shall not be included in the aggregate cumulative
revenue determined under
section 11(2)(b)(i)(B), and
(ii) shall only be applied in respect to the incremental C*
associated with the re-entry activity in accordance with
the Petroleum Royalty Regulation, 2017 or the Natural
Gas Royalty Regulation, 2017, as the case may be.
Project approval amendment
13(1) The Minister may, on receipt of a written request from the
project representative or on the Minister's own initiative, amend a
project approval.
(2) A project approval shall not be amended
(
a) to reduce the project area by more than 20%, or
(
b) to add lands to the project area that are outside of the project
evaluation area.
Project approval revocation
14 The Minister may revoke a project approval if, in the opinion of
the Minister, a project participant made
(
a) any misrepresentation that is attributable to neglect,
carelessness or wilful default, or
(
b) has committed a fraud in providing a document or other
information under this Regulation.
Project approval termination
15(1) The Minister may terminate a project approval if
(
a) requested to do so in writing by the project representative,
(
b) the project area is less than 18 sections or greater than 144
sections,
(
c) a term or condition of a project approval is breached, or
(
d) documents or information are not provided under
section 16.
(2) If the Minister terminates a project approval, the royalty payable to
the Crown on hydrocarbons obtained from an eligible well that is part
of the C*ERP pool as of the date of termination shall continue to be
calculated in accordance with
section 11.
(3) If an eligible well is spud after the date of termination, the C* for
the well
(
a) applies for the purposes of the Petroleum Royalty Regulation,
2017 or the Natural Gas Royalty Regulation, 2017, as the
case may be, and
(
b) shall not be included in the C*ERP for the well and the C*ERP
pool for the approved project.
Furnishing information
16 For the purposes of administering this Regulation, the project
representative or any previous project representative shall furnish
documents or any other information
(
a) requested or required by the Minister,
(
b) in the form specified by the Minister, and
(
c) within the time period specified by the Minister.
Project benefit period extension
17(1) The Minister may extend the project benefit period for all
approved projects, or a class of approved projects, if the Minister is of
the opinion that an extension is justified based on a significant and
prolonged reduction in market prices that is negatively impacting the
production of hydrocarbons in Alberta.
an extension under subsection (1).
Expiry
18 This Regulation expires on June 30, 2045.
Coming into force
19 This Regulation comes into force on January 1, 2017.
Schedule
Project Activity Table
Column 1
Project Activity Level
Column 2
Project
Benefit
Period
(Years)
Column 3
Elapsed Time
(Years)
Column 4
C* Multiplier
less than 5%
0-4
2.00
5-8
1.75
9-10
1.50
greater than or equal to 5%
and less than 6%
0-3
2.00
4-7
1.75
8-9
1.50
greater than or equal to
6% and less than 7%
0-2
2.00
3-6
1.75
7-8
1.50
greater than or equal to 7%
and less than 8%
0-1
2.00
2-5
1.75
6-7
1.50
greater than or equal to 8%
and less than 9%
0-4
1.75
5-6
1.50
greater than or equal to 9%
and less than or equal to 10%
0-3
1.75
4-5
1.50
greater than 10%
N/A
N/A
--------------------------------
Alberta Regulation 210/2016
Mines and Minerals Act
ENHANCED HYDROCARBON RECOVERY ROYALTY REGULATION
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 349/2016)
on December 13, 2016 pursuant to sections 5 and 36 of the Mines and Minerals Act.
Table of Contents
Interpretation
Definitions
2 Application of Regulation
New Approvals for EHR Schemes
3 Enhanced hydrocarbon recovery scheme
4 Application for approval
5 Approval
6 Percentage rate for calculation of royalty
7 Transition of pre-2017 wells
General
8 T-factor for tertiary recovery schemes
9 Excluded well events
10 Amendment of approval
11 Duty to provide information and file reports
12 Suspension of approval
13 Termination of approval
14 Consequential amendments
15 Coming into force
Schedule
Interpretation
Definitions
1(1) In this Regulation,
(a) "approval" means an approval granted under
section 5;
(b) "approved scheme" means an enhanced hydrocarbon
recovery scheme in respect of which there is a subsisting
approval granted under
section 5;
(c) "base recovery scheme" in respect of an area that is or is
proposed to be subject to an enhanced hydrocarbon recovery
scheme means
(
i) if subclause (ii) does not apply, the scheme that the
Minister considers from time to time to be the most
technically viable scheme to obtain hydrocarbons from
the pool in that area using only conventional techniques,
(ii) the most recent previous enhanced hydrocarbon
recovery scheme that the Minister considers technically
viable that has been used to obtain hydrocarbons from
the pool in that area;
(d) "enhanced hydrocarbon recovery scheme" means an
enhanced hydrocarbon recovery scheme as determined under
section 3;
(e) "enhanced recovery" means a method of injection of
substances into a pool
(
i) to add to or maintain reservoir pressure,
(ii) to displace hydrocarbons to production wells, or
(iii) to alter the reservoir fluids so that hydrocarbon flow or
recovery is improved;
(f) "hydrocarbon" includes any crude oil, natural gas, gas
product or oil sands product that is subject to a determination
of royalties under the Petroleum Royalty Regulation, 2017,
the Natural Gas Royalty Regulation, 2017 or the Oil Sands
Royalty Regulation, 2009, as the case may be;
(g) "oil sands project" means a Project as defined in the Oil
Sands Royalty Regulation, 2009;
(h) "operator", in respect of a scheme or proposed scheme,
means the person who is the operator of the wells that are
within the scheme or proposed scheme according to the
records of the Department;
(i) "pool" means a pool as defined in the Oil and Gas
Conservation Act;
(j) "previous enhanced hydrocarbon recovery scheme" means an
enhanced recovery scheme implemented pursuant to a
requirement under
section 38(
a) of the Oil and Gas
Conservation Act or an approval under
section 39(1)(
a) of the
Oil and Gas Conservation Act, whether or not the scheme
was an approved scheme under this Regulation or the
Enhanced Oil Recovery Royalty Regulation (AR 156/2014),
(
i) that was previously implemented by an operator making
an application under
section 4 to obtain hydrocarbons
from the pool in the same area referred to in the
application, and
(ii) in which a different enhanced hydrocarbon recovery
technique was used from the technique described in the
application under
section 4;
(k) "secondary recovery scheme" means a scheme for the
enhanced recovery of hydrocarbons from a pool by water
flooding, polymer flooding, gas cycling, gas flooding or
other methods approved by the Minister;
(l) "tertiary recovery scheme" means a scheme for the enhanced
recovery of hydrocarbons from a pool by immiscible
flooding, solvent flooding, miscible flooding, chemical
flooding or other methods approved by the Minister, but does
not include a secondary recovery scheme;
(m) "well event" means a well event as defined in the Petroleum
Royalty Regulation, 2017 or the Natural Gas Royalty
Regulation, 2017.
(2) A reference in this Regulation to hydrocarbons obtained from a
well event is also a reference to hydrocarbons produced or recovered
from a well event.
(3) Except in
section 11, a reference in this Regulation to a month,
whether by its name or not, shall be construed as the period
commencing at 8:00 a.m. Mountain Standard Time on the first day of
the month and ending immediately before 8:00 a.m. Mountain
Standard Time on the first day of the next month.
Application of Regulation
2 This Regulation applies only to hydrocarbons obtained under an
enhanced hydrocarbon recovery scheme that is approved by the
Minister under
section 5(1) on or after January 1, 2017, in which the
percentage of Crown ownership, as determined by the Minister in
accordance with
section 26.1 of the Petroleum and Natural Gas
Tenure Regulation (AR 263/97), is greater than 0.
New Approvals for EHR Schemes
Enhanced hydrocarbon
recovery scheme
3 A secondary or tertiary recovery scheme is an enhanced
hydrocarbon recovery scheme if the scheme
(
a) is implemented or proposed to be implemented pursuant to
(
i) a requirement under
section 38(a),
(ii) an approval under
section 39(1)(a), or
(iii) an amendment under
section 26, which amends the
enhanced recovery method used in a scheme,
of the Oil and Gas Conservation Act,
(
b) if water flooding, gas flooding or gas cycling is proposed, the
Minister is satisfied that
(
i) for a new scheme, it is located in a pool or part of a pool
where water flooding, gas flooding or gas cycling has
not occurred previously, or
(ii) for an existing scheme, it is extended vertically into a
pool or part of a pool where water flooding, gas
flooding or gas cycling has not occurred previously,
and
(
c) was, for an approval under
section 39(1)(a), or amendment
under
section 26, of the Oil and Gas Conservation Act,
applied for and granted on or after October 23, 2016.
Application for approval
4(1) On or after January 1, 2017, an operator of an enhanced
hydrocarbon recovery scheme or proposed enhanced hydrocarbon
recovery scheme may apply for an approval under
section 5.
(2) An application under subsection (1) must be in the form provided
by and contain the information required by the Minister.
(3) The operator of an enhanced hydrocarbon recovery scheme may,
in the application or in writing provided to the Minister at any time
before or after an approval is granted, indicate the month in which the
operator wants the term determined under
section 6(2) to begin.
(4) A request submitted under subsection (3) for a particular month on
which to commence a term under
section 6(2) must be received before
the first day of the month requested.
(5) An application must not include a well that is part of an oil sands
project application pending a decision of the Minister.
Approval
5(1) Subject to
section 9, the Minister may, on application, grant an
approval providing for the percentage rate under
section 6(1) to apply
to the calculation of royalty on hydrocarbons obtained from well
events that are part of an enhanced hydrocarbon recovery scheme if, at
the time the information required by the Minister with respect to the
application has been received,
(
a) the Minister is of the opinion that the scheme is an enhanced
hydrocarbon recovery scheme,
(
b) the Minister is of the opinion that the primary function of the
scheme is the recovery of hydrocarbons from a pool,
(
c) the Minister is of the opinion that more hydrocarbons are
likely to be obtained using the enhanced hydrocarbon
recovery scheme than would be obtained using the base
recovery scheme,
(
d) the Minister is satisfied, taking into consideration any
estimates provided by the operator of the costs for
implementing and operating the enhanced hydrocarbon
recovery scheme and for implementing and operating the
base recovery scheme, that the costs for implementing and
operating the enhanced hydrocarbon recovery scheme
significantly exceed the costs for implementing and operating
the base recovery scheme, and
(
e) the Minister is of the opinion that it is in the public interest to
grant an approval under this section.
(2) In an approval under subsection (1), the Minister
(
a) shall set out
(
i) the pool that is subject to the enhanced hydrocarbon
recovery scheme to which the approval applies,
(ii) the area that is subject to the enhanced hydrocarbon
recovery scheme to which the approval applies, and
(iii) the well events in the area referred to in subclause (ii) to
which the approval applies,
and
scheme.
(3) On granting an approval under subsection (1) the Minister shall, in
accordance with
section 8, establish the t-factor for an approved
tertiary recovery scheme, or in accordance with
section 6(2)(b),
establish a term for an approved secondary recovery scheme, as the
case may be.
Percentage rate for calculation of royalty
6(1) The royalty on hydrocarbons obtained from well events to which
an approval under
section 5(1) applies for any month during the term
determined under subsection (2) shall be calculated under the
Petroleum Royalty Regulation, 2017, the Natural Gas Royalty
Regulation, 2017 or the Oil Sands Royalty Regulation, 2009, as the
case may be, using a percentage rate of 5%.
(2) The term during which subsection (1) applies with respect to an
approved scheme referred to in subsection (1) is,
(
a) for an approved tertiary recovery scheme, the term of
calendar months in the
Schedule applicable to the t-factor
range in the
Schedule that includes the t-factor of the
approved scheme, and
(
b) for an approved secondary recovery scheme, the term
determined by the Minister, not in excess of 90 calendar
months.
(3) The term determined under subsection (2) begins
(
a) for a tertiary recovery scheme,
(
i) on the first day of the month indicated by the operator
under
section 4(3), if
(
A) the first injection of material using the method
under the approved scheme occurred on that day,
(
B) the day indicated by the operator is within 36
months of the first injection of material using the
method under the approved scheme occurred,
(ii) if subclause (
i) does not apply, on the first day of the
36th month after the month in which the first injection
of material using the method under the approved
scheme occurred,
and
(
b) for a secondary recovery scheme, as determined by the
Minister, but no later than 36 months after the month in
which the first injection of material using the method under
the approved scheme occurred.
(4) The Minister may redetermine the term of an approved scheme
under subsection 2(b).
(5) For well events drilled on or after January 1, 2017, the following
run concurrently:
(
a) the term determined under subsection (3) during which
subsection (1) applies to the well event;
(
b) the determination of the related well C* and total revenue
under the Petroleum Royalty Regulation, 2017 or the Natural
Gas Royalty Regulation, 2017, as the case may be.
Transition of pre-2017 wells
7 Royalties payable in respect of wells drilled prior to January 1, 2017
that at any time form part of a scheme approved under
section 5(1)
shall be calculated under the Petroleum Royalty Regulation, 2017 or
the Natural Gas Royalty Regulation, 2017, as the case may be.
General
T-factor for tertiary recovery schemes
8(1) The t-factor of an approved tertiary recovery scheme is the
greater of
(a) 0.224, and
(
b) the t-factor determined by the Minister in accordance with
the following formula:
t - factor = itr ö tco
where
itr is the amount of incremental hydrocarbons
recoverable from the pool under the approved
scheme over the life of the approved scheme;
tco is the total amount of hydrocarbons that in the
Minister's opinion remains to be recovered from
the pool at the start of the approved scheme.
(2) The Minister may redetermine the t-factor of an approved scheme
under subsection (1) at any time if the Minister is of the opinion that a
different amount should be used in place of an amount that was used to
calculate the t-factor.
(3) If the Minister is not satisfied that sufficient information has been
received from the operator to calculate the t-factor of an approved
scheme under subsection (1), the Minister shall establish a temporary
t-factor of 0.324 for the approved scheme.
(4) The Minister may increase the temporary t-factor established
under subsection (3) up to a maximum temporary t-factor of 0.381 if
(
a) the operator of the approved scheme submits an application
to the Minister for an increase that contains the information
required by the Minister, and
(
b) the Minister is of the opinion that exceptional circumstances
exist that warrant an increase.
(5) If the Minister is not satisfied that sufficient information has been
received from the operator of an approved scheme for which a
temporary t-factor is established under subsection (3) to determine the
t-factor for the approved scheme under subsection (1), the approval for
the approved scheme terminates at the end of the last month of the
term that applies to the temporary t-factor under the Schedule.
(6) On being satisfied that sufficient information has been received
from the operator to determine the t-factor of an approved scheme for
which a temporary t-factor has been established under this section, the
Minister shall determine the t-factor of the approved scheme under
subsection (1) and any temporary t-factor established for the approved
scheme under this
section ceases to apply.
(7) If the t-factor or temporary t-factor of an approved scheme is
replaced by a new t-factor as provided by subsection (2) or (6) and the
term set out in the
Schedule that applies to the new t-factor is longer
than the term that applied to the previous t-factor, the longer term only
applies for the purposes of
section 6(2) if the term that applied to the
previous t-factor has not expired.
(8) If the t-factor or temporary t-factor of an approved scheme is
replaced by a new t-factor as provided by subsection (2) or (6) and the
term set out in the
Schedule that applies to the new t-factor is shorter
than the term that applied to the previous t-factor, the royalty for each
month not included in the shorter term for which the royalty was
calculated in accordance with
section 6(1) shall be recalculated using
the percentage rate that would otherwise have been applicable under
the Petroleum Royalty Regulation, 2017 or the Natural Gas Royalty
Regulation, 2017, as the case may be.
(9) The result of a calculation under this
section shall
(
a) be expressed to 3 decimal points, and
(
b) be rounded
(
i) up if there is a number at the 4th decimal point that is 5
or greater, or
(ii) down if there is a number at the 4th decimal point that is
less than 5.
Excluded well events
9 For the purposes of this Regulation, an approval granted under
section 5(1) does not apply to any of the following well events that are
in the area to which the approval applies:
(
a) well events as defined in the Oil Sands Royalty Regulation,
2009 (AR 223/2008) that are part of a Project as defined in
that Regulation;
(
b) any other well events that are in the area to which the
approval applies that are not included in the approval.
Amendment of approval
10 The Minister may amend an approval granted under
section 5(1)
(
a) to add, change or remove conditions relating to the approved
scheme,
(
b) on the application of the operator of the approved scheme, to
add a well event that has been added to the approved scheme
if the Minister is satisfied that the well event is in the area to
which the approval applies and is part of the enhanced
hydrocarbon recovery scheme to which the approval applies,
(
c) on the application of the operator of the approved scheme, to
increase the area to which the approval applies to include
well events located outside the existing area if no new
injection well event has been added outside the existing area.
Duty to provide information and file reports
11 On receiving a request from the Minister to provide information or
file a report for the purposes of the Minister's administration of this
Regulation, a person who is or was an operator of an approved scheme
shall provide the information or file the report specified in the request
within the time specified in the request.
Suspension of approval
12(1) The Minister may suspend an approval for an approved scheme
if the operator of the approved scheme fails to provide information or
file a report requested by the Minister within the time specified in the
request.
(2) If an approval for an approved scheme is suspended under
subsection (1),
section 6(1) does not apply to the calculation of royalty
on hydrocarbons obtained from well events to which the approval
applies for any month during which the suspension is in effect for all
or any part of the month.
(3) If an operator of an approved scheme provides the information or
files the report with respect to which a suspension was imposed under
subsection (1), the royalty on hydrocarbons obtained from well events
to which the approval applies for each month during the term
determined under
section 6(2) during which the approval was
suspended shall be recalculated in accordance with
section 6(1).
(4) Subsection (3) does not apply if
(
a) the approval for the approved scheme is terminated before
the suspension of the approval ends, and
(
b) in the opinion of the Minister, the reason for the termination
of the approval for the approved scheme is substantially the
same as the reason for the suspension of the approval for the
approved scheme.
(5) A suspension of an approval for an approved scheme does not
operate to extend the term determined under
section 6(2).
Termination of approval
13 The Minister may terminate an approval for an approved scheme
(
a) the operator of the approved scheme requests termination of
the approval,
(
b) the operator of the approved scheme has failed to provide
information or file a report requested by the Minister within
the time specified in the request,
(
c) the Minister is of the opinion that a term or condition relating
to the approved scheme set out in the approval is not being
met,
(
d) the t-factor for the scheme is 0,
(
e) the Minister is of the opinion that the scheme is no longer
producing hydrocarbons and no further use of the method
referred to in
section 1(1)(
k) or (
l) is intended, or
(
f) a requirement of
section 5(1) is no longer satisfied with
respect to the approved scheme.
Consequential amendments
14(1) The Enhanced Oil Recovery Royalty Regulation
(AR 156/2014) is amended by this section.
(2) Section 1(1) is amended by adding the following after
clause (d):
(d.1) "licence" means a licence for a well, as defined in the
Oil and Gas Conservation Act;
(d.2) "licensed well" means a well subject to a licence;
(3) Section 2 is amended by adding "and on or before December
31, 2026," after "January 1, 2014,".
(4) Section 3(2) is repealed and the following is substituted:
(2) An application under subsection (1) must be
(
a) in the form provided by and contain the information required
by the Minister, and
(
b) made on or before December 31, 2016.
(5) Section 4(1) is amended by striking out "and" at the end
of clause (d), by adding "and" at the end of clause (
e) and by
adding the following after clause (e):
(
f) the scheme was approved under the Oil and Gas
Conservation Act on or before December 31, 2016.
(6) The following is added after
section 7:
Re-entered well event
7.1(1) In this section, "re-entry" means a re-entry as defined in the
Petroleum Royalty Regulation, 2017.
(2) In an approved scheme, when a licensed well is subject to
re-entry on or after January 1, 2017,
(
a) all well events under the licence related to the licensed well
shall have royalties determined in accordance with
section 3
of the
Schedule to Petroleum Royalty Regulation, 2017,
without reference to the royalty rate under
section 5(1), and
(
b) the term determined under
section 5(2) continues to elapse.
(3) For a licence referred to in subsection (2), upon the end of
royalties being calculated under
section 3 of the
Schedule to the
Petroleum Royalty Regulation, 2017, the royalty rate on well events
under the licence shall be determined under
(a)
section 5(1), for well events to which an approval under
section 4(1) applies if there is time remaining in the term
determined under
section 5(2), for the remainder of that term,
(
b) the Petroleum Royalty Regulation, 2009, in any other case.
(7) The following is added after
section 10:
Post-2016 well royalty treatment
10.1 For well events under an approval, the following run
concurrently:
(
a) the term determined under
section 5(2) during which
section
5(1) applies to the well event, and
(
b) the determination of the related well C* and total revenue
under the Petroleum Royalty Regulation, 2017.
(8) Section 11 is repealed and the following is substituted:
Separate approval for scheme expansions
11(1) On or after January 1, 2017, an operator of an approved
scheme must apply for a separate approval of that scheme under the
Enhanced Hydrocarbon Recovery Royalty Regulation as an
enhanced hydrocarbon recovery scheme when an approved scheme
is modified by
(
a) a new injection pattern outside the area to which the existing
approval applies, or
(
b) a change in the injection method or the material referred to in
section 1(1)(d)(ii) used in the scheme.
(2) On approval of the scheme under the Enhanced Hydrocarbon
Recovery Royalty Regulation, the approved scheme under this
regulation is terminated as of the date of the first injection of
material using the method contemplated in the replacement scheme
approved under the Enhanced Hydrocarbon Recovery Royalty
Regulation.
(9) The following is added after
section 14:
Termination of benefits and transitions
14.1(1) Approved schemes are no longer subject to the royalty
determinations under sections 5(1) and 7(1) upon the earlier of
(
a) the end of the term determined under
section 5(2) or 7(2), as
the case may be, or
(
b) December 31, 2026.
(2) After December 31, 2026, any remaining approved schemes
under this regulation, and associated well events, are not eligible for
approval in a scheme under the Enhanced Hydrocarbon Recovery
Royalty Regulation.
(10) Section 17 is amended by striking out "December 31,
2018" and substituting "June 30, 2032".
Coming into force
15 This Regulation comes into force on January 1, 2017.
Schedule
Term for Tertiary Recovery Schemes under
Section 6(2)
T-factor range
(Beginning t-factor - Ending t-factor)
Term of Months
0.001 - 0.223
0.224 - 0.228
0.229 - 0.233
0.234 - 0.238
0.239 - 0.247
0.248 - 0.252
0.253 - 0.257
0.258 - 0.266
0.267 - 0.271
0.272 - 0.276
0.277 - 0.285
0.286 - 0.290
0.291 - 0.295
0.296 - 0.304
0.305 - 0.309
0.310 - 0.314
0.315 - 0.323
0.324 - 0.328
0.329 - 0.333
0.334 - 0.342
0.343 - 0.347
0.348 - 0.352
0.353 - 0.361
0.362 - 0.366
0.367 - 0.371
0.372 - 0.380
0.381 - 0.385
0.386 - 0.390
0.391 - 0.400
0.401 - 0.404
0.405 - 0.409
0.410 - 0.419
0.420 - 0.423
0.424 - 0.428
0.429 - 0.438
0.439 - 0.442
0.443 - 0.447
0.448 - 0.457
0.458 - 0.461
0.462 - 0.466
0.467 - 0.476
0.477 - 0.480
0.481 - 0.485
0.486 - 0.495
0.496 - 0.500
0.501 - 0.504
0.505 - 0.514
0.515 - 0.519
0.520 - 0.523
0.524 - 0.533
0.534 - 0.538
0.539 - 0.542
0.543 - 0.552
0.553 - 0.557
0.558 - 0.561
0.562 - 0.571
0.572 - 0.576
0.577 - 0.580
0.581 - 0.590
0.591 - 0.595
0.596 - 0.600
0.601 - 0.609
0.610 - 0.614
0.615 - 0.619
0.620 - 0.628
0.629 - 0.633
0.634 - 0.638
0.639 - 0.647
0.648 - 0.652
0.653 - 0.657
0.658 - 0.666
0.667 - 0.671
0.672 - 0.676
0.677 - 0.685
0.686 - 0.690
0.691 - 0.695
0.696 - 0.704
0.705 - 0.709
0.710 - 0.714
0.715 - 0.723
0.724 - 0.728
0.729 - 0.733
0.734 - 0.742
0.743 - 0.747
0.748 - 0.752
0.753 - 0.761
0.762 - 0.766
0.767 - 0.771
0.772 - 0.780
0.781 - 1.000
--------------------------------
Alberta Regulation 211/2016
Mines and Minerals Act
NATURAL GAS ROYALTY REGULATION, 2017
Filed: December 14, 2016
For information only: Made by the Lieutenant Governor in Council (O.C. 350/2016)
on December 13, 2016 pursuant to sections 5 and 36 of the Mines and Minerals Act.
Table of Contents
Part 1
General
Interpretation
2 Lessee's liability unaffected
3 Application of Regulation
4 Furnishing documents to the Minister
5 Reporting standards
6 Petrinex
7 Prescribed prices, factors, deductions and allowances
Part 2
Royalty
Division 1
Determination of the Crown's
Royalty Share
8 Royalty share of natural gas, gas products
and field condensate
9 Calculation of royalty
10 Royalty calculation point
11 Special royalty O.C.
12 Unit operations
13 Proportionment of royalty liability
14 When royalty not payable
15 Royalty exemptions
Division 2
Royalty Compensation
16 Liability for royalty compensation
17 Payment of royalty compensation
18 Injection credits
19 Allowable costs
20 Deposits
Part 3
Opted in Wells
Definitions
22 Eligible well
23 Application
24 Approval
25 When opt in has effect
26 When opt in approval ceases to have effect
Part 4
Administration and Enforcement
27 Well groups
28 Royalty clients
29 Responsibility for quantities available for sale
30 Allocations of quantities available for sale
31 Provisional royalty compensation
32 Other reports
33 Natural gas liquids reports
34 Keeping of records
35 Penalties
36 Penalty following audit
37 Interest
38 Audit of Department records
39 Approved schemes under the Enhanced Hydrocarbon
Recovery Royalty Regulation and the Emerging Resources
Royalty Regulation
Part 5
Consequential Amendments
and Coming into Force
40 - 41 Consequential amendments
42 Coming into force
Schedules
Part 1
General
Interpretation
1(1) In this Regulation,
(a) "Act" means the Mines and Minerals Act;
(b) "allocation data" means owner allocation data or stream
allocation data or both;
(c) "allowable costs" means costs and allowances for which the
Crown is liable under
section 19(2);
(d) "battery" means a pipeline or pipeline installation at which
natural gas recovered from one or more wells is collected and
measured prior to its delivery to another facility or into a
pipeline;
(e) "butanes" means, in addition to its normal scientific meaning,
a mixture mainly of butanes that ordinarily may contain some
propane or pentanes plus;
(f) "commercial storage facility" means the wells and other
facilities used in the operation of a commercial storage
scheme and designated by the Minister as a commercial
storage facility for the purposes of this Regulation;
(g) "commercial storage scheme" means a scheme approved or
ordered by the Regulator under the Oil and Gas
Conservation Act for the storage of natural gas or a gas
product in an underground formation or subsurface cavern
and designated by the Minister as a commercial storage
scheme for the purposes of this Regulation or the 2002
Regulation;
(h) "common stream operator", in relation to natural gas or
residue gas delivered from one or more facilities to a receipt
meter station in a production month, means the person who is
recorded in Petrinex as the common stream operator in
relation to that natural gas or residue gas;
(i) "component ana