Alberta Regulation 213/2002

Electric Utilities Act

ROLES, RELATIONSHIPS AND RESPONSIBILITIES

AMENDMENT REGULATION

Filed: October 21, 2002

Made by the Minister of Energy (M.O. 54/2002) on October 17, 2002 pursuant

section 31.995(1) of the Electric Utilities Act.

1 The Roles, Relationships and Responsibilities Regulation (AR 86/2000)

is amended by this Regulation.

Section 20 is repealed and the following is substituted:

Settlement system code

20(1) The Power Pool Council

(

a) must establish the settlement system code, and

(

b) may review and change the settlement system code if

the Power Pool Council considers it appropriate.

(2) Without restricting the generality of subsection (1), the

settlement system code may provide for

(

a) the approval by the Power Pool Council of

professional and other costs relating to the development and implementation

of the settlement system code and any amendments to or replacements or

substitutions for the settlement system code, and

(

b) the payment of the costs approved under clause (

a) by owners of electric distribution systems and wire services providers

conducting load settlement under the settlement system code and by the

Transmission Administrator, including

(

i) establishment of procedures to provide

for the payment of those costs, and

(ii) determination of the proportions or

amounts of those costs to be paid by owners of electric distribution

systems, wire services providers and the Transmission Administrator.

(3) Owners of electric distribution systems and transmission

facilities, wire services providers, retailers, the Transmission

Administrator, the power pool and any other person involved in the delivery

and exchange of electric energy in Alberta must comply with the settlement

system code.

(4) An owner of an electric distribution system may recover

(

a) under its distribution tariff, or

(

b) directly from users of load settlement information,

its prudent costs related to complying with the settlement system

code, including the costs referred to in subsection (2).

(5) Without restricting the generality of

section 16 of the Act, the

Board may in accordance with that

section determine the justness and

reasonableness of

(

a) any costs approved under subsection (2),

(

b) any procedures established to provide for the

payment of those costs, and

(

c) any determination of the proportions or amounts of

those costs to be paid by owners of electric distribution systems, wire

services providers and the Transmission Administrator.

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

Alberta Regulation 214/2002

Fisheries (Alberta) Act

GENERAL FISHERIES (ALBERTA) AMENDMENT REGULATION

Filed: October 22, 2002

Made by the Lieutenant Governor in Council (O.C. 489/2002) on October 22,

2002 pursuant to

section 43 of the Fisheries (Alberta) Act.

1 The General Fisheries (Alberta) Regulation (AR 203/97) is amended by

this Regulation.

Section 2 is amended

(

a) in clause (

a) by adding the following after subclause (i)(C):

(

D) with a term of one day for a non-resident of

Canada;

(

b) by repealing clause (d)(v):

(

c) by repealing clause (

h) and substituting the following:

(

h) fish stocking licence;

Section 3 is amended

(

a) in subsection (2)(

f) by adding "and equipment, including water

and equipment used in transporting fish," after "water";

(

b) by repealing subsection (4) and substituting the following:

stocking licence generally or specifically with respect to the following:

(

a) the possession of cultured fish, including the

source of the fish, and transport to the location where they may be

stocked;

(

b) where and when cultured fish may be stocked;

(

c) the person or persons authorized to transport and

stock the cultured fish;

(

d) the number of cultured fish of a species to be

stocked at any location;

(

e) the reporting of cultured fish stocking activities

and the submission of records.

Section 23 is repealed.

Section 25 is amended by adding the following after subsection (2):

(3) No person shall possess fish taken under the authority of a

licence issued under the Fisheries Act (Canada) that authorizes the licence

holder to catch fish solely for the purpose of providing food for the

licence holder's personal use or for the use of their immediate family,

except for that purpose.

6 The heading "Trout Stocking" preceding

section 26 and

section 26 are

repealed and the following is substituted:

Fish Stocking

Fish stocking licence

26(1) A fish stocking licence may be issued by the Minister that

authorizes

(

a) the possession and transport of live cultured fish

of a species listed in

section 1 of

Schedule 2 of the Ministerial

Regulation, and

(

b) the placing of live cultured fish of a species

mentioned in clause (

a) into the bodies of water specified in the licence.

(2) A body of water specified in a fish stocking licence may not

include

(

a) contained waters,

(

b) water that forms part of a premises that is the

subject of a fish culture licence, or

(

c) water that is not accessible to the public.

(3) The Minister may refuse the issuance of a fish stocking licence

for any reason that relates to environmental concerns or proposed

activities involving the fish.

Section 27(2)(

c) is repealed and the following is substituted:

(

c) subject to

section 31, sell the live cultured fish and eggs

referred to in clause (

a) to the holder of a Class A commercial fish

culture licence, to the holder of a recreational fish culture licence or to

a premises that holds a food establishment permit under the Food Regulation

(AR 240/85).

Section 30(

b) is repealed and the following is substituted:

(

b) the person does not hold such a licence but receives the fish

from the premises of the holder of a licensed Class A or Class B commercial

fish culture licence and

(

i) the fish are held in not more than 5 contained

waters in a premises identified in a food establishment permit under the

Food Regulation (AR 240/85), and

(ii) not more than 100 fish are kept in each such

contained water.

Section 31(1) is repealed and the following is substituted:

Selling Class A fish

31(1) No person shall dispose of or sell, in Alberta, live fish from

a Class A commercial fish culture premises, except to

(

a) a recreational fish culture licensee,

(

b) a commercial fish culture licensee,

(

c) a research licensee,

(

d) a fish stocking licensee,

(

e) a person authorized to receive fish under

section

30(b), or

(

f) a person who is authorized to possess the fish in

another jurisdiction and who is obtaining the fish for immediate removal

from Alberta.

Section 40 is repealed and the following is substituted:

Diseased and escaped fish

40 The holder of a fish culture licence, the person in charge of

live fish at a licensed fish culture premises, the holder of a fish

research licence who possesses live fish or the holder of a food

establishment permit under the Food Regulation (AR 240/85) in charge of a

food establishment where live cultured fish are possessed must, immediately

on discovery of diseased fish at the premises or in that person's

possession, or immediately on discovery of an escape of fish, report that

fact to the Director.

Section 58 is amended

(

a) in subsection (1) by striking out "or" at the end of clause

(a), by adding "or" at the end of clause (

b) and by adding the following

after clause (b):

(

c) within the period or periods, if any, specified in

the licence or in any attachment to the licence.

(

b) by adding the following after subsection (1):

(1.1) Subsection (1) does not apply to a person who is

lawfully catching cultured fish.

Section 62 is amended by striking out "October 31, 2002" and

substituting "October 31, 2012".

Schedule 1 is repealed and the following is substituted:

SCHEDULE 1

Item Column 1 Column 2 Column 3

No.

Lakes Species Species

1 AMISK Northern Pike

(68-18-W4)

2 ATHABASCA Lake Whitefish

(117-I-W4)

3 BISTCHO Lake Whitefish

(124-6-W6)

4 CALLING Lake Whitefish

(72-22-W4)

5 EDWARDS Northern Pike

(75-9-W4)

6 ELINOR Northern Pike

(64-11-W4)

7 ETHEL Northern Pike

(64-3-W4)

8 FROG Lake Whitefish

(57-3-W4)

9 GLOVER Northern Pike

(75-9-W4)

10 GOODFISH Lake Whitefish

(89-5-W5)

11 HAIG Lake Whitefish

(91-14-W5)

12 HELENA Lake Whitefish Walleye

(66-11-W4)

13 HILDA Lake Whitefish Walleye

(63-3-W4) Tullibee

14 IRONWOOD Northern Pike

(65-11-W4) Walleye

15 KEHEWIN Lake Whitefish

(59-7-W4)

16 LAC LA BICHE Tullibee

(68-15-W4)

17 LESSER SLAVE Lake Whitefish

(74-11-W4)

18 LONG Lake Whitefish

(90-2-W5)

19 MOOSE Northern Pike

(61-7-W4) Walleye

20 MUSKWA Northern Pike

(68-18-W5) Walleye

21 NIPISI Tullibee

(78-7-W5)

22 NORTH BUCK Tullibee

(66-17-W4)

23 NORTH WABASCA Lake Whitefish

(82-4-W5)

24 RATTLESNAKE Northern Pike

(12-8-W5) Walleye

25 ROCK ISLAND Tullibee

(75-22-W4)

26 ROLLING HILLS Northern Pike

(16-14-W4)

27 SANDY Lake Whitefish

(79-22-W4)

28 SAWN Lake Whitefish

(92-12-W5)

29 SKELETON Lake Whitefish

(65-18-W4)

30 SOUTH WABASCA Tullibee

(80-24-W4)

31 ST. MARYS Walleye

(4-24-W4)

32 VANDERSTEENE Lake Whitefish

(88-3-W5)

33 WEST TWIN Lake Whitefish

(90-4-W5)

14 Sections 2(

a) and (

b) and 4 come into force on April 1, 2003.

Alberta Regulation 215/2002

Provincial Court Act

PROVINCIAL COURT CIVIL DIVISION AMENDMENT REGULATION

Filed: October 22, 2002

Made by the Lieutenant Governor in Council (O.C. 492/2002) on October 22,

2002 pursuant to

section 9 of the Provincial Court Act.

1 The Provincial Court Civil Division Regulation (AR 329/89) is amended

by this Regulation.

Section 1.1 is amended by striking out "$7500" and substituting "$25

000".

3 This Regulation comes into force on November 1, 2002.

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

Alberta Regulation 216/2002

Provincial Court Act

PROVINCIAL COURT FEES AND COSTS AMENDMENT REGULATION

Filed: October 22, 2002

Made by the Lieutenant Governor in Council (O.C. 493/2002) on October 22,

2002 pursuant to

section 9 of the Provincial Court Act.

1 The Provincial Court Fees and Costs Regulation (AR 18/91) is amended by

this Regulation.

Section 1 is amended in clauses (

a) and (

b) by striking out "$100.00"

and adding the following at the end of each:

(

i) for claims of $7500 or less $100.00

(ii) for claims exceeding $7500 $200.00

3 The following is added after

section 1:

1.1 The clerk of the Court may waive the whole fee or part of the

fee payable under

section 1(

a) or (

b) by an individual who the clerk,

applying the guidelines (if any) established by the Minister, considers is

unable to pay that fee.

Section 2 is amended

(

a) in clauses (

a) and (

b) by striking out "$25.00" and adding the

following at the end of each:

(

i) for claims of $7500 or less $100.00

(ii) for claims exceeding $7500 $200.00

(

b) by repealing clause (g);

(

c) in clause (h)(iii) by striking out "0.085" and substituting

"0.105";

(

d) by repealing clause (j);

(

e) in clause (k)(

i) and (ii) by striking out "$25.00" and adding

the following at the end of each:

(

A) for claims of $7500 or less $100.00

(

B) for claims exceeding $7500 $200.00

(

f) by adding the following after clause (k):

(

l) on an application or hearing, payment for

additional classes of costs not otherwise specified in clauses (

a) to (

k) may be awarded, in the judge's discretion.

5 The following is added after

section 3:

All Divisions

3.1(1) In this section, "peace officer" means

(

a) a member of the Royal Canadian Mounted Police,

(

b) a member of a municipal police service within the

meaning of the Police Act,

(

c) a special constable within the meaning of the

Police Act,

(

d) a person whose legal functions include written

authorization to issue violation tickets under

Part 2 or 3, or both, of the

Provincial Offences Procedure Act, or

(

e) a person appointed under the regulations under the

National Defence Act (Canada) for the purposes of

section 156 of that Act.

(2) Notwithstanding anything in this Regulation, fees for the search

of a name, the inspection of a file or a copy or the certification of a

document are not payable by a peace officer when the service in question is

required in the execution or discharge of the peace officer's duties.

6 This Regulation comes into force on November 1, 2002.

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

Alberta Regulation 217/2002

Regulations Act

MISCELLANEOUS CORRECTION AND REPEAL REGULATION

Filed: October 22, 2002

Made by the Lieutenant Governor in Council (O.C. 494/2002) on October 22,

2002 pursuant to

section 10 of the Regulations Act.

1 The Freedom of Information and Protection of Privacy Regulation (AR

200/95) is amended in

Schedule 1 under the heading "SOLICITOR GENERAL" by

striking out "Criminal Injuries Appeal Board" and substituting "Criminal

Injuries Review Board".

2 The Planning Exemption Regulation (AR 223/2000) is amended in

section

2(1)(

a) by striking out "the a" and substituting "a".

3 The Student Financial Assistance Regulation (AR 215/99) is amended in

section 30(

b) by striking out "Provincial Treasurer's" and substituting

"Minister's".

4 The Expropriation Act Forms Regulation (AR 188/2001) is amended

(

a) in the

Schedule in Form 1, in item 4 as it relates to

section

6(2) of the Act, by striking out "therein" and substituting "in it";

(

b) in the

Schedule in Form 1, in item 5 as it relates to

section

10(1)(

a) of the Act, by striking out "within 21 days of service on him" and

substituting "within 21 days after service on the owner".

5 The Wildlife Regulation (AR 143/97) is amended in

section 65 by

striking out "65(1)" and substituting "65".

6 The Agriculture Financial Services Regulation (AR 99/2002) is amended

section 20(1)(

e) by striking out "production." and substituting

"production,".

7 The Balancing Pool Regulation (AR 169/99) is amended in

section

5(1)(g.1) by striking out "subclause (g)" and substituting "clause (g)".

8 The Gaming and Liquor Regulation (AR 143/96) is amended in

section

68(4) by striking out "containers" and substituting "container".

9 The Correctional Institution Regulation (AR 205/2001) is amended in

section 34(1) by striking out "inmates's" and substituting "inmate's".

10 The Weed Regulation (AR 171/2001) is amended in

Schedule 2

(

a) in Form 1

(

i) in the text from

section 28(1)(

b) of the Act by

striking out "12.1 or 17(1)" and substituting "13 or 18(1)";

(ii) in the text from

section 28(4) of the Act by

striking out "accompanied by" and substituting "accompanied with";

(iii) in the text from

section 28(5) of the Act by

striking out "his" and substituting "the appellant's";

(

b) in Form 2

(

i) by striking out "(Section 17)" and substituting

"(Section 18)";

(ii) by striking out "under

section 17(1)" and

substituting "under

section 18(1)";

(iii) in the text from

section 28(1)(

b) of the Act by

striking out "12.1 or 17(1)" and substituting "13 or 18(1)";

(iv) in the text from

section 28(4) of the Act by

striking out "accompanied by" and substituting "accompanied with";

(

v) in the text from

section 28(5) of the Act by

striking out "his" and substituting "the appellant's";

(

c) in Form 3

(

i) by striking out "(Section 12.1)" and substituting

"(Section 13)";

(ii) by striking out "under

section 12.1" and

substituting "under

section 13";

(iii) in the text from

section 28(1)(

b) of the Act by

striking out "12.1 or 17(1)" and substituting "13 or 18(1)";

(iv) in the text from

section 28(4) of the Act by

striking out "accompanied by" and substituting "accompanied with";

(

v) in the text from

section 28(5) of the Act by

striking out "his" and substituting "the appellant's".

11 The Access Enforcement Regulation (AR 61/2000) is amended

(

a) in

section 5 by striking out "61.3, 61.31 or 61.41" and

substituting "68, 69 or 71 of the Act";

(

b) in

section 6 by striking out "61.7" and substituting "74 of the

Act".

12 The Access Enforcement Forms Regulation (AR 74/2000) is amended in the

Schedule, in the Affidavit in the Notice of Hearing by striking out

"Commissioner of Oaths" and substituting "Commissioner for Oaths".

13 The Dairy Industry Regulation (AR 139/99) is amended in the 4th

subsection of

section 25 by striking out "

(3) Despite" and substituting

"

(4) Despite".

14(1) The following regulations are repealed:

(

a) Section 90 Declaration Regulations (AR 329/78);

(

b) Section 14 Declaration Regulation (AR 333/78);

(

c) Camrose Agricultural Society Loan Guarantee Regulation (AR

458/83);

(

d) Natural Gas Royalty (Pre-1994) Regulation (AR 246/90);

(

e) section 2(a), (b), (c), (d), (f), (g), (

h) and (

i) of the Fee

Reduction Regulation (AR 44/2000);

(

f) Fees (Reduction of Certain Fees to be Charged by the New

Employment Pension Plans Regulation) Regulation (AR 36/2000);

(

g) Fees (Reduction of Certain Fees Charged by the Fisheries

(Ministerial) Regulation) Regulation (AR 57/2000);

(

h) Fees (Reduction of Certain Fees Charged by the Wildlife

Regulation) Regulation (AR 58/2000);

(

i) Probate Fees Reduction Regulation (AR 43/2000);

(

j) Approved Corporations Regulation (AR 365/84);

(

k) Entitlement Shares Regulation (AR 223/95);

(

l) Reservation Payments Shares Regulation (AR 224/95);

(

m) Saskatchewan Interconnection Facilities Regulation (AR 225/95);

(

n) Unit Obligation Amounts Regulation (AR 226/95);

(

o) Temporary Suspension Regulation (AR 284/95).

(2) The Reactivated Well Incentive Regulation (AR 404/91) is repealed on

December 31, 2002.

Alberta Regulation 218/2002

Public Health Act

WORK CAMPS REGULATION

Filed: October 22, 2002

Made by the Lieutenant Governor in Council (O.C. 496/2002) on October 22,

2002 pursuant to

section 66 of the Public Health Act.

Table of Contents

Definitions 1

Compliance required by owner 2

Location of work camps 3

Buildings 4

Beds and bedding 5

Furnishings 6

Laundry service 7

Outdoor privies 8

Handwashing facilities 9

Water 10

Notice 11

Sewage disposal 12

Garbage 13

Work camp closed 14

Repeal 15

Expiry 16

Definitions

1 In this Regulation,

(a) "building" means any permanent or temporary structure, tent,

vehicle or mobile unit used for recreation or accommodation for persons

working or residing at a work camp or for the storage, preparation or

serving of food at a work camp;

(b) "potable water" means water that is safe for human consumption;

(c) "work camp" means one or more buildings established to

accommodate persons who are employed in mining, lumbering, construction,

drilling, resource exploration or any other similar industry, and includes

the land on which the building or buildings are situated.

Compliance required by owner

2 The owner of a work camp shall ensure that sections 3 to 14 are

complied with.

Location of work camps

3 A work camp must be

(

a) located on land that is adequately drained, and

(

b) located, operated and equipped so that no nuisance is created.

Buildings

4 All buildings of a work camp must be

(

a) structurally sound,

(

b) effectively protected against entry by vermin and other

animals, and

(

c) maintained

(

i) in good repair, and

(ii) in a safe, clean and sanitary and weatherproof

condition.

Beds and bedding

5(1) Mattresses, pillows and other bedding that are supplied at a work

camp must be maintained in a clean and sanitary condition.

(2) Mattresses and pillows that are supplied at a work camp must have

covers that can be laundered.

(3) Sheets and pillowcases that are supplied at a work camp must be

laundered as required to keep them clean and before each new user.

Furnishings

6 All furnishings provided at a work camp must be maintained in good

repair and in a clean condition.

Laundry service

7 A work camp must be provided with a laundry service or laundry

facilities in a manner sufficient to enable persons working or residing at

the work camp to launder their personal items at least once a week.

Outdoor privies

8(1) Where no other Act, regulation or by-law requires that a work camp be

equipped with water closets or chemical closets, the work camp must be

provided with outdoor privies in a number and location and constructed so

as to adequately meet the needs of persons working or residing at the work

camp.

(2) Water closets, chemical closets and outdoor privies must be maintained

in a clean and sanitary condition.

Handwashing facilities

9(1) A work camp must be provided with handwashing facilities in a number

and manner sufficient to adequately meet the needs of the persons working

or residing at the work camp.

(2) A work camp must be equipped with an adequate supply of

(

a) soap or detergent in dispensers, and

(

b) single service towels or hot air dryers.

Water

10(1) A work camp must be supplied with hot and cold water in an amount

and manner sufficient to adequately meet the needs of persons working or

residing at the work camp for cleaning and laundering.

(2) A work camp must be supplied with potable water in an amount and

manner sufficient to adequately meet the needs of persons working or

residing at the work camp for drinking, food preparation and personal

hygiene purposes.

(3) The potable water supply and equipment used for transmission,

treatment and storage of it must be maintained in good repair and in a

sanitary condition.

(4) When a work camp is not serviced by a municipal watermain, the

regional health authority in which the work camp is located may give

directions to the owner with respect to

(

a) the source of the water to be used as potable water,

(

b) the method of water treatment,

(

c) the method of transmission of water,

(

d) the storage of water, and

(

e) the equipment used in connection with the storage of water,

and the owner shall comply with the regional health authority's directions.

Notice

11 A notice must be posted in a conspicuous place in a work camp

indicating which water sources are not potable.

Sewage disposal

12 A work camp must have an adequate sewage disposal system to manage the

sewage generated by the camp.

Garbage

13 Garbage and refuse must not be allowed to accumulate in a work camp so

as to cause a nuisance or provide a breeding ground for vermin and other

animals.

Work camp closed

14 When a work camp is permanently closed, the camp location must be left

in a clean condition.

Repeal

15 The Work Camps Regulation (AR 251/85) is repealed.

Expiry

16 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 August 31, 2011.

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

Alberta Regulation 219/2002

Agriculture Financial Services Act

AGRICULTURE FINANCIAL SERVICES AMENDMENT REGULATION

Filed: October 22, 2002

Made by the Lieutenant Governor in Council (O.C. 497/2002) on October 22,

2002 pursuant to sections 18, 37 and 56 of the Agriculture Financial

Services Act.

1 The Agriculture Financial Services Regulation (AR 99/2002) is amended

by this Regulation.

Section 18 is repealed and the following is substituted:

Qualifications to be an applicant for a loan re primary producer

18(1) In order for a person to qualify to be an applicant for a

direct loan, the person must

(

a) in the case of an individual,

(

i) be a primary producer,

(ii) be a resident of Alberta or intend to

become a resident of Alberta, and

(iii) be a Canadian citizen;

(

b) in the case of a company,

(

i) be a primary producer,

(ii) be incorporated in Alberta,

(iii) have or intend to have its business

operations directed and managed in Alberta,

(iv) have at least 80% of the equity shares

of the company beneficially owned by individuals, each of whom must be a

Canadian citizen who ordinarily resides in Canada, and

(

v) have the majority of the voting and

equity shares of the company controlled by individuals each of whom is a

Canadian citizen who is or intends to become a resident of Alberta.

(2) In order for a person to qualify to be an applicant for a

guaranteed loan, the person must

(

a) in the case of an individual,

(

i) be a primary producer,

(ii) be a resident of Alberta or intend to

become a resident of Alberta, and

(iii) be a Canadian citizen;

(

b) in the case of a company,

(

i) be a primary producer,

(ii) be incorporated in Canada and

registered to carry on business in Alberta,

(iii) have or intend to have its business

operations directed and managed in Alberta,

(iv) have at least 80% of the equity shares

of the company beneficially owned by individuals, each of whom must be a

Canadian citizen who ordinarily resides in Canada, and

(

v) have the majority of the voting and

equity shares of the company controlled by individuals each of whom is a

Canadian citizen who is or intends to become a resident of Alberta.

(3) Where a person intends to apply

(

a) to the Corporation for a direct loan or a

guaranteed loan, that person must provide to the Corporation evidence

satisfactory to the Corporation that the person meets the qualifications

referred to in subsection (1) in the case of a direct loan, or subsection

(2) in the case of a guaranteed loan, to be an applicant, or

(

b) to a lender for a guaranteed loan, that person must

provide to the lender evidence satisfactory to the lender that the person

meets the qualifications referred to in subsection (2) to be an applicant.

Section 21(

a) is amended by striking out "produces" and substituting

"producers".

Section 53(1) is amended by striking out "(i) "structural change"" and

substituting "(j) "structural changes"".

Section 57(10) is repealed.

6 The Alberta Opportunity Fund Regulation (AR 273/94) is repealed.

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

Alberta Regulation 220/2002

Mines and Minerals Act

NATURAL GAS ROYALTY REGULATION, 2002

Filed: October 22, 2002

Made by the Lieutenant Governor in Council (O.C. 498/2002) on October 22,

2002 pursuant to sections 5 and 36 of the Mines and Minerals Act.

Table of Contents

Part 1

General

Definitions 1

Miscellaneous interpretive rules 2

Furnishing documents to the Minister 3

Reporting standards 4

Petroleum Registry of Alberta 5

Prescribed prices, factors, deductions and allowances 6

Fees 7

Lessee's liability unaffected 8

Application of Regulation 9

Part 2

Royalty

Division 1

Determination of the Crown's Royalty Share

Royalty share of natural gas, gas products and field condensate 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 16

Division 2

Royalty Compensation

Liability for royalty compensation 17

Payment of royalty compensation 18

Injection credits 19

Allowable costs 20

Deposits 21

Part 3

Administration and Enforcement

Well groups 22

Royalty clients 23

Responsibility for quantities available for sale 24

Allocations of quantities available for sale 25

Provisional royalty compensation 26

Other reports 27

Keeping of records 28

Penalties 29

Penalty following audit 30

Interest 31

Application of payments 32

Audit of Department records 33

Part 4

Consequential Amendments and Repeal

Amends AR 351/93 34

Amends AR 263/97 35

Repeal 36

Schedule 1

Natural Gas and Residue Gas

Definitions 1

Royalty Share of Gas

Calculation of royalty quantity for gas 2

Gas royalty for low productivity wells 3

Royalty Compensation for Gas

Aggregate Gas Reference Price 4

Transportation Allowance 5

Net Gas Reference Price 6

Calculation of royalty compensation for gas 7

CAP election 8

Determining a royalty client's annual CAP 9

Recalculation of royalty compensation for gas sold

under long-term contracts 10

Schedule 2

Ethane

Definitions 1

Royalty Share of Ethane

Calculation of royalty quantity for ethane 2

Ethane royalty for low productivity wells 3

Royalty Compensation for Ethane

Transportation Allowance 4

Net Ethane Reference Price 5

Calculation of royalty compensation for ethane 6

Schedule 3

Propane

Propane royalty quantity 1

Propane royalty compensation 2

Schedule 4

Butanes

Butanes royalty quantity 1

Butanes royalty compensation 2

Schedule 5

Pentanes Plus

Royalty quantity of pentanes plus 1

Royalty compensation for pentanes plus 2

Schedule 6

Sulphur

Definitions 1

Royalty quantity of sulphur 2

Determination of royalty client's annual S-CAP 3

Report of sulphur disposition 4

Sulphur royalty compensation 5

Schedule 7

New Gas, New Ethane and New Pentanes Plus

New gas categories 1

Residue gas and ethane 2

New pentanes plus 3

Schedule 8

Royalty Exemptions

Exemption for Otherwise Flared Solution Gas

Interpretation 1

Exemption for solution gas 2

Exemptions for Qualifying Intervals

in Deep Gas Wells

Definitions 3

Application for exemption 4

Nature of exemption 5

Determinations by Minister 6

Value of Crown's royalty share 7

Transfer of exemption 8

Table 1 - Value of Crown Royalty Share of Natural Gas Exempted per

Eligible Well

Table 2 - Areas

Part 1

General

Definitions

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 20(1);

(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) "Board" means the Energy Resources Conservation Board or the

Alberta Energy and Utilities Board;

(f) "butanes" means, in addition to its normal scientific meaning,

a mixture mainly of butanes that ordinarily may contain some propane or

pentanes plus;

(g) "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;

(h) "commercial storage scheme" means a scheme approved or ordered

by the Board 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;

(i) "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 the Petroleum

Registry of Alberta as the common stream operator in relation to that

natural gas or residue gas;

(j) "component analysis" means an analysis of a sample of natural

gas or residue gas to determine the respective volumes and quantities of

in-stream components of the natural gas or residue gas;

(k) "Crown lease" means an agreement granting petroleum and natural

gas rights, natural gas rights, petroleum rights or oil sands rights;

(l) "Crown percentage", in relation to a well group, means the

portion of the production from well events in the group that is recovered

pursuant to a Crown lease, as shown in the records of the Department;

(m) "dispose of", in relation to any natural gas or gas product,

means

(

i) to sell and deliver the natural gas or gas product

to a buyer, or

(ii) to otherwise dispose of and deliver the natural gas

or gas product to a person who by reason of the disposition becomes its

owner;

(n) "document" includes information transmitted electronically;

(o) "facility" means

(

i) a battery,

(ii) a gathering system,

(iii) a gas processing plant,

(iv) a reprocessing plant,

(

v) a gas injection facility, or

(vi) a commercial storage facility;

(p) "field condensate" means products obtained from natural gas or

solution gas before it is delivered to a gathering system;

(q) "field straddle plant" means a reprocessing plant designated by

the Minister as a field straddle plant for the purposes of this Regulation

in a designation that remains unrevoked;

(r) "gas injection facility" means

(

i) the wells and other associated injection

facilities, or

(ii) a well without any associated injection facilities,

used by an operator in the operation of one or more gas

injection schemes;

(s) "gas injection scheme" means a scheme, other than a commercial

storage scheme, approved or ordered by the Board under the Oil and Gas

Conservation Act and respecting the injection of natural gas or a gas

product into an underground formation;

(t) "gas processing plant" means a plant for the processing of

natural gas but does not include a reprocessing plant, well head separator,

treater or dehydrator;

(u) "gas product" means residue gas, ethane, propane, butanes,

pentanes plus, sulphur or any other product obtained by processing natural

gas or by reprocessing residue gas or otherwise, but does not include field

condensate;

(v) "gathering" includes compressing by means of a compressor

forming part of a gathering system;

(w) "gathering system" means a pipeline or pipeline system,

including installations and equipment associated with the pipeline or

pipeline system, that transmits natural gas from one or more wells to a gas

processing plant or other delivery point;

(x) "in-stream component" or "ISC" means a component of natural gas

or residue gas, including, without limitation, methane, ethane, propane,

butanes, pentanes plus, carbon dioxide, hydrogen, hydrogen sulphide, helium

and nitrogen;

(y) "ISC reference prices", in relation to a production month,

means, collectively, the Methane ISC Reference Price, Ethane ISC Reference

Price, Propane ISC Reference Price, Butanes ISC Reference Price and

Pentanes Plus ISC Reference Price for that production month;

(z) "light-ends" means a gas product that is obtained at a gas

processing plant or reprocessing plant and is given by the owner of the

product to another person for no consideration and that is, in the

Minister's opinion, not of a kind or quantity sufficient for the owner of

the product to dispose of by way of sale;

(aa) "mainline straddle plant" means a plant for the reprocessing of

residue gas that is designated by order of the Minister as a mainline

straddle plant for the purposes of this Regulation in a designation that

remains unrevoked;

(bb) "new ethane" means ethane obtained from new gas;

(cc) "new gas" means natural gas or residue gas that qualifies as

new gas under

section 1 or 2 of

Schedule 7;

(dd) "new pentanes plus" means pentanes plus that qualifies as new

pentanes plus under

section 3 of

Schedule 7;

(ee) "1994 Regulation" means the Natural Gas Royalty Regulation,

1994 (AR 351/93);

(ff) "old ethane" means ethane other than new ethane;

(gg) "old gas" means natural gas or residue gas other than new gas;

(hh) "old pentanes plus" means pentanes plus other than new pentanes

plus;

(ii) "operator", with reference to a facility, means the person who

is the operator of the facility according to the records of the Department;

(jj) "owner allocation data", in relation to an allocation of

quantities available for sale to a royalty client, means the owner

allocation factor or factors for that allocation and the related data

referred to in

section 25(3)(e)(ii);

(kk) "owner allocation factor" means an owner allocation factor

referred to in

section 25(3)(

c) or (d);

(ll) "pentanes plus" means a mixture of hydrocarbons consisting

wholly or mainly of pentanes and heavier hydrocarbons and obtained from

natural gas by processing or otherwise, but does not include field

condensate;

(mm) "Petroleum Registry of Alberta" or "Registry" means the

electronic information system administered by the Department and called the

Petroleum Registry of Alberta;

(nn) "plant gate" means

(

i) in relation to a gas processing plant, the first

point of measurement of the quantity of a gas product after it is obtained

at that gas processing plant, or

(ii) in relation to a reprocessing plant, the first

point of measurement of the quantity of a gas product after it is obtained

at that reprocessing plant;

(oo) "pool" means a natural underground reservoir containing or

appearing to contain an accumulation of petroleum or natural gas separated

or appearing to be separated from any other such accumulation;

(pp) "production entity" means

(

i) a drilling spacing unit prescribed by or

established pursuant to regulations under the Oil and Gas Conservation Act

to the extent that it is not included in an area described in subclause

(ii) or (iii),

(ii) the area of a project as defined in the Oil and Gas

Conservation Act, or

(iii) a unit area;

(qq) "production month", in relation to any natural gas, gas product

or field condensate, means the month in which it is recovered or obtained;

(rr) "propane" means, in addition to its normal scientific meaning,

a mixture mainly of propane that ordinarily may contain some ethane or

butanes;

(ss) "quantities available for sale", in relation to a production

month, means

(

i) the quantities or volumes of gas products obtained

during the production month at a gas processing plant or reprocessing

plant,

(ii) the quantities or volumes of natural gas or gas

products delivered from a gathering system during the production month,

except quantities or volumes delivered to a gas processing plant,

reprocessing plant or to another gathering system,

(iii) the quantities of natural gas delivered during the

production month from a battery, or

(iv) the quantities or volumes of natural gas or gas

products disposed of during the production month before being delivered to

a gas processing plant or reprocessing plant;

(tt) "receipt meter station" means each place on a pipeline at which

natural gas or residue gas can be received and the quantity so received can

be measured;

(uu) "reprocessing plant" means a plant for the reprocessing of

residue gas, with or without the capacity of processing natural gas, but

does not include a mainline straddle plant;

(vv) "residue gas" means a gaseous mixture consisting primarily of

methane and obtained as a separate product at a gas processing plant or

reprocessing plant;

(ww) "royalty calculation point", in relation to any natural gas,

gas product or field condensate, means the place determined under

section

11 as the place at which the Crown's royalty share of the natural gas, gas

product or field condensate is to be calculated;

(xx) "royalty client" means

(

i) with reference to a well group, a person shown in

the records of the Department as a royalty client for that well group, or

(ii) with reference to the Crown's royalty share of

excess or unallocated quantities of natural gas or gas products referred to

section 26, a person who is deemed to be a royalty client in respect of

those quantities by reason of the operation of

section 26(1)(

c) or (2)(c);

(yy) "royalty client account" means an account maintained by the

Department for a royalty client pursuant to

section 18(6);

(zz) "royalty compensation" means money payable to the Crown under

this Regulation as compensation in respect of the Crown's royalty share of

natural gas, a gas product or field condensate, the Crown's title to which

is transferred pursuant to

section 17;

(aaa) "royalty invoice" means a monthly invoice issued and sent to a

royalty client pursuant to

section 18(1);

(bbb) "solution gas" means the gaseous component of petroleum that is

separated from crude oil after the recovery of the petroleum from a well;

(ccc) "special pentanes plus" means pentanes plus designated by the

Minister as special pentanes plus for the purposes of this Regulation;

(ddd) "stream allocation data", in relation to an allocation of

quantities available for sale, means the stream allocation factor or

factors for that allocation and the related data referred to in

section

25(3)(e)(i);

(eee) "stream allocation factor" means a stream allocation factor

referred to in

section 25(3)(

a) or (b);

(fff) "unit area" means the unit area under a unit agreement or unit

operation order;

(ggg) "well event" means

(

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

unique well identifier by the Board,

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

given a single unique well identifier by the Board,

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

natural gas from a zone but which has not yet been given a unique well

identifier by the Board, or

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

gas from 2 or more zones during the period when the parts are considered by

the Minister as a single well event for the purposes of this Regulation and

before the Board makes a decision whether or not to give the parts a single

unique well identifier;

(hhh) "well group" means a well group referred to in

section 22.

Miscellaneous interpretive rules

2(1) Where any reference is made in this Regulation to a month, whether by

its name or not, the reference shall be construed as being the period

commencing at 8:00 a.m. on the first day of that month and ending

immediately before 8:00 a.m. on the first day of the next month.

(2) For the purposes of the provisions of this Regulation that refer to

persons being associated with each other, persons are associated with each

other if they are considered associated with each other by reason of a

general or special direction of the Minister.

(3) For the purpose of the provisions of this Regulation that refer to

persons dealing at arm's length with each other, persons shall be regarded

as not dealing at arm's length with each other if, at a material time under

this Regulation, they are related parties within the meaning of the CICA

Handbook published from time to time by the Canadian Institute of Chartered

Accountants.

(4) If any natural gas or gas product is injected into a pool and any

question arises as to the purpose for which the gas was injected, then, for

the purposes of this Regulation, the question shall be decided by the

Minister.

(5) The Minister shall decide any question arising under this Regulation

as to whether any particular plant, pipeline or installation is a battery,

a gathering system, a gas processing plant, a reprocessing plant, a gas

injection facility or a receipt meter station for the purposes of this

Regulation.

(6) Where any question arises pertaining to the

interpretation or

application of this Regulation, the Minister is the sole judge of the

question and there shall be no appeal from the Minister's decision.

Furnishing documents to the Minister

3(1) If a provision of this Regulation requires a document to be furnished

to the Minister, or an amount to be paid to the Crown, on or before a day,

the document shall be considered furnished or the amount shall be

considered paid, as the case may be, if it is received by the Department on

or before that day.

(2) Unless otherwise directed by the Minister, any document required or

permitted to be furnished under this Regulation must

(

a) contain all the information called for by the prescribed form,

if any, for the document, and

(

b) be completed in accordance with any general directions given by

the Minister or any instructions shown in the prescribed form, if any, for

the document.

(3) The Minister may refuse to accept a document that does not meet the

requirements of subsection (2) and in that case the document shall, for the

purposes of this Regulation, be considered not to have been furnished.

Reporting standards

4(1) In this section,

(a) "cubic metre of gas" means the volume of natural gas or residue

gas which, when dry and at standard temperature and under standard

pressure, will fill a space of one cubic metre;

(b) "gross or higher heating value" means, for the purposes of

subsection (3)(a), the total joules obtained by the complete combustion of

one cubic metre of natural gas or residue gas and air under conditions

where

(

i) the combination reaction is at constant standard

pressure,

(ii) the gas, including acid gas components, is free of

all water vapour,

(iii) the temperature of the gas, air and products of

combustion are at standard temperature, and

(iv) all water formed by the combustion reaction is

condensed to a liquid state;

(c) "heat content" means the total amount of heat contained in a

gas stream, including the sensible heat and latent heat of condensation;

(d) "standard pressure" means the absolute pressure of 101.325

kilopascals;

(e) "standard temperature" means 15 degrees Celsius.

(2) In a document furnished to the Minister under the Act or this

Regulation,

(

a) volumes of natural gas or residue gas shall be expressed in

thousands of cubic metres of gas to the nearest tenth of a thousand cubic

metres;

(

b) the heating value of natural gas or residue gas shall be

expressed in megajoules per cubic metre to the nearest hundredth of a

megajoule per cubic metre;

(

c) quantities of natural gas or residue gas shall be expressed as

heat content in gigajoules to the nearest whole gigajoule;

(

d) volumes of ethane, propane, butanes, pentanes plus and field

condensate shall be expressed in cubic metres to the nearest tenth of a

cubic metre;

(

e) volumes of in-stream components shall be expressed in thousands

of cubic metres, to 3 decimal places;

(

f) quantities of in-stream components shall be expressed as heat

content in gigajoules, to 3 decimal places;

(

g) quantities of sulphur shall be expressed in tonnes to the

nearest tenth of a tonne;

(

h) prices of natural gas or residue gas shall be expressed in

dollars per gigajoule to the nearest cent.

(3) Subject to subsection (4), in a document furnished to the Minister

under the Act or this Regulation,

(

a) volumes of natural gas, residue gas or ethane in gaseous form

shall be converted to gigajoules by multiplying the volumes of the gas by

the gross or higher heating value of the gas, and

(

b) if the gross or higher heating value used under clause (

a) is

calculated from a component analysis of the gas, the gross or higher

heating value of the gas shall be calculated in accordance with Calculation

of Gross Heating Value, Relative Density and Compressibility Factor for

Natural Gas Mixtures from Compositional Analysis (GPA Standard 2172)

published from time to time by the Gas Processors Association.

(4) If the Minister requires a document furnished under the Act or this

Regulation to show volumes or quantities of in-stream components of natural

gas or residue gas,

(

a) the respective volumes of the in-stream components of the gas

shall be determined from a component analysis of the gas,

(

b) the respective volumes of the in-stream components of the gas

shall be converted to gigajoules by multiplying those volumes by the gross

or higher heating value of the respective in-stream components as shown in

any edition of Table of Physical Constants of Paraffin Hydrocarbons and

Other Components of Natural Gas (GPA Standard 2145) published by the Gas

Processors Association, and

(

c) the quantities of the in-stream components calculated under

clause (

b) shall be normalized so that the aggregate quantities of those

in-stream components equal the aggregate quantities of the gas.

(5) The conditions of measurement of volume and heating value when not

otherwise specified in this

section shall be

(

a) in accordance with the provisions of the Electricity and Gas

Inspection Act (Canada), and

(

b) corrected for actual atmospheric pressure to the nearest 2

kilopascals.

(6) For the purposes of calculating royalty on ethane under this

Regulation, volumes of ethane in liquid form shall be converted to the

number of cubic metres the ethane would occupy in gaseous form at standard

temperature and under standard pressure.

Petroleum Registry of Alberta

5(1) Subject to this section, where a provision of this Regulation

requires a person to furnish to the Minister

(

a) allocation data,

(

b) information respecting volumes or quantities of in-stream

components of natural gas or residue gas,

(

c) information referred to in

section 27(4), (5) or (7),

(

d) a report the deadline for the furnishing of which occurs on or

after October 31, 2002, or

(

e) a report related to October, 2002 or any subsequent production

month,

the allocation data, information or report shall be furnished by electronic

transmission to the Petroleum Registry of Alberta in accordance with the

directions of the Minister respecting the operation of the Registry.

(2) The Minister may by a general direction exempt from the operation of

subsection (1)

(

a) any class of persons other than operators, or

(

b) any class of reports, subject to any conditions in the

direction.

(3) Section 5 of the Mines and Minerals Administration Regulation (AR

262/97) does not apply to the furnishing of allocation data or any

information or reports to which subsection (1) applies.

(4) A reference in this Regulation to a report filed with the Board, to

the extent it applies to a report related to October, 2002 or any

subsequent production month, shall be read as a reference to a report filed

with the Board by electronic transmission to the Registry.

(5) For the purposes of this Regulation, where natural gas or a gas

product is delivered in a production month from a facility (the "sending

facility") to a receipt meter station or another facility, the reports

filed with the Board showing the volumes of the natural gas or gas product

received at the receipt meter station or the other facility from the

sending facility in that month shall, subject to subsequent corrections, be

considered as the volumes delivered from the sending facility in that

month.

(6) Without limiting the operation of

section 4 of the Mines and Minerals

Administration Regulation (AR 262/97),

(

a) the Minister may send to a person a royalty invoice or any

notice or other document authorized or required to be sent to that person

under this Regulation by electronic transmission to the Petroleum Registry

of Alberta in accordance with the directions of the Minister respecting the

operation of the Registry, and

(

b) a royalty invoice or a notice or other document sent in

accordance with clause (

a) is deemed for the purpose of this Regulation to

be received by that person when it is transmitted to the Registry.

Prescribed prices, factors, deductions and allowances

6(1) The Minister shall, by order, prescribe an amount per gigajoule as

the Gas Reference Price for October, 2002 and for each subsequent

production month.

(2) The Minister shall, by order, for October, 2002 and for each

subsequent production month, prescribe the following, each expressed as an

amount per gigajoule:

(

a) the Methane ISC Reference Price;

(

b) the Methane ISC Par Price;

(

c) the Methane ISC Adjusted Intra-Alberta Transportation

Deduction.

(3) The Minister shall, by order, for October, 2002 and for each

subsequent production month, prescribe the following, each expressed as an

amount per gigajoule:

(

a) the Ethane Reference Price;

(

b) the Ethane Par Price;

(

c) the Ethane ISC Reference Price;

(

d) the Ethane ISC Adjusted Intra-Alberta Transportation Deduction.

(4) The Minister shall, by order, for October, 2002 and for each

subsequent production month, prescribe

(

a) an amount per cubic metre as the Propane Reference Price,

(

b) an amount per gigajoule as the Propane Par Price,

(

c) an amount per gigajoule as the Propane ISC Reference Price, and

(

d) an amount per gigajoule as the Propane ISC Adjusted

Intra-Alberta Transportation Deduction.

(5) The Minister shall, by order, for October, 2002 and for each

subsequent production month, prescribe

(

a) an amount per cubic metre as the Butanes Reference Price,

(

b) an amount per gigajoule as the Butanes Par Price,

(

c) an amount per gigajoule as the Butanes ISC Reference Price, and

(

d) an amount per gigajoule as the Butanes ISC Adjusted

Intra-Alberta Transportation Deduction.

(6) The Minister shall, by order, for October, 2002 and for each

subsequent production month, prescribe

(

a) an amount per cubic metre as the Pentanes Plus Reference

Price,

(

b) an amount per cubic metre as the Pentanes Plus Par Price,

(

c) an amount per gigajoule as the Pentanes Plus ISC Reference

Price, and

(

d) an amount per gigajoule as the Pentanes Plus ISC Adjusted

Intra-Alberta Transportation Deduction.

(7) The Minister shall, by order, for 2002 and for each subsequent year,

prescribe the following:

(

a) an amount per gigajoule as the New Methane ISC Select Price;

(

b) an amount per gigajoule as the Old Methane ISC Select Price;

(

c) an amount per gigajoule as the New Ethane Select Price;

(

d) an amount per gigajoule as the Old Ethane Select Price;

(

e) an amount per gigajoule as the Propane Select Price;

(

f) an amount per gigajoule as the Butanes Select Price;

(

g) an amount per cubic metre as the Pentanes Plus Select Price.

(8) The Minister shall, by order, for 2002 and for each subsequent year,

prescribe

(

a) the royalty factor for new pentanes plus, and

(

b) the royalty factor for old pentanes plus.

(9) The Minister shall, by order, for October, 2002 and for each

subsequent production month, prescribe

(

a) the respective Transportation Allowances, expressed as amounts

per cubic metre, applicable to

(

i) propane and butanes obtained as separate products

from a natural gas liquids mix by fractionation,

(ii) pentanes plus obtained as a separate gas product

from a natural gas liquids mix by fractionation, and

(iii) propane, butanes and pentanes plus contained in a

natural gas liquids mix,

for each region of Alberta established pursuant to subsection

(10);

(

b) the Fractionation Allowance, expressed as an amount per cubic

metre, applicable to propane, butanes and pentanes plus obtained as

separate products from a natural gas liquids mix by fractionation occurring

downstream from

(

i) the gas processing plant or reprocessing plant at

which the mix was obtained, or

(ii) a gathering system, where the mix was not obtained

at a gas processing plant or reprocessing plant;

(

c) the Special Pentanes Plus Processing Allowance, expressed as an

amount per cubic metre.

(10) The Minister shall, by order, divide Alberta into regions for the

purposes of subsection (9)(a).

(11) The Minister may, by order, for October, 2002 and for each subsequent

production month, prescribe a receipt meter station factor for a receipt

meter station.

Fees

7 The Minister may prescribe fees for information, materials or

documents, and training and other services, provided by the

Department under this Regulation.

Lessee's liability unaffected

8 Nothing in this Regulation operates to relieve a lessee from

(

a) the lessee's liability to the Crown under an agreement for the

payment of royalty, or

(

b) the lessee's liability under this Regulation to pay to the

Crown the royalty compensation in respect of the Crown's royalty share of

natural gas, gas products or field condensate.

Application of Regulation

9(1) This Regulation applies to royalty on natural gas recovered, and gas

products and field condensate obtained, in October, 2002 and subsequent

production months.

(2) This Regulation applies

(

a) to solution gas as though it were natural gas, and

(

b) except as provided in

section 10(6) and (7), to products

obtained from solution gas.

Part 2

Royalty

Division 1

Determination of the Crown's Royalty Share

Royalty share of natural gas, gas products and field condensate

10(1) If natural gas is recovered from a well event pursuant to a Crown

lease and the natural gas is

(

a) disposed of,

(

b) consumed as a fuel,

(

c) delivered from a gathering system to a mainline straddle plant,

(

d) removed from Alberta

without having first been processed at a gas processing plant or

reprocessing plant, then, subject to this Regulation, the royalty

reserved to the Crown on that natural gas shall be that portion of the

natural gas so recovered calculated in accordance with

Schedule 1.

(2) If

(

a) natural gas is recovered from a well event pursuant to a Crown

lease, and

(

b) pentanes plus are obtained from the natural gas and delivered

from a gathering system before the natural gas is processed, disposed of,

consumed as a fuel or removed from Alberta,

then, subject to this Regulation, the royalty reserved to the Crown on the

pentanes plus shall be that portion of the pentanes plus calculated in

accordance with

Schedule 5.

(3) Where natural gas is recovered from a well event pursuant to a Crown

lease and gas products are obtained by processing the natural gas, then,

subject to this Regulation, the royalty reserved to the Crown on the

natural gas shall instead be calculated in accordance with this Regulation

on gas products obtained by processing the natural gas and by reprocessing

residue gas obtained from the natural gas.

(4) The royalty reserved to the Crown on gas products referred to in

subsection (3) shall be calculated as follows:

(

a) except as provided in clause (b), where natural gas is

processed at a gas processing plant or reprocessing plant and

(

i) the residue gas obtained as a result of the

processing is disposed of, consumed as a fuel or removed from Alberta

without being reprocessed or is reprocessed at a field straddle plant or

mainline straddle plant, or

(ii) the gas products, other than residue gas, obtained

as a result of the processing are disposed of, consumed as a fuel or

removed from Alberta,

the royalty reserved to the Crown on the residue gas and other

gas products shall be calculated on the residue gas and other gas products

obtained as a result of the processing;

(

b) where residue gas obtained by the processing of natural gas is

reprocessed at one or more reprocessing plants other than a field straddle

plant before the residue gas is disposed of, consumed as a fuel, delivered

to a mainline straddle plant or removed from Alberta,

(

i) the royalty reserved to the Crown on the residue

gas shall be calculated on the quantity of the residue gas obtained at the

last of those reprocessing plants, and

(ii) the royalty reserved to the Crown on the gas

products other than residue gas shall be calculated on the quantities of

those gas products obtained at each of those reprocessing plants.

(5) The royalty reserved to the Crown on gas products referred to in

subsection (4) is

(

a) with respect to residue gas, the percentage of the residue gas

calculated in accordance with

Schedule 1;

(

b) with respect to ethane, the percentage of the ethane calculated

in accordance with

Schedule 2;

(

c) with respect to propane, the percentage of the propane

calculated in accordance with

Schedule 3;

(

d) with respect to butanes, the percentage of the butanes

calculated in accordance with

Schedule 4;

(

e) with respect to pentanes plus, the percentage of the pentanes

plus calculated in accordance with

Schedule 5;

(

f) with respect to sulphur, the percentage of the sulphur

prescribed in

Schedule 6;

(

g) with respect to any other gas product not mentioned in clauses

(

a) to (f), 30% of the gas product.

(6) The royalty reserved to the Crown on field condensate shall be

determined in accordance with subsection (7) as though the field condensate

were non-heavy oil as defined in the Petroleum Royalty Regulation (AR

248/90).

(7) For the purposes of subsection (6), the royalty reserved to the Crown

on field condensate shall be determined

(

a) under

Schedule 3 of the Petroleum Royalty Regulation (AR

248/90), if

(

i) the natural gas from which it is obtained is new

gas,

(ii) the crude oil from which it is separated when it is

obtained from petroleum is new oil by reason of

section 5(2) of the

Petroleum Royalty Regulation (AR 248/90), or

(iii) the Minister determines that the royalty reserved

on it should be determined under

Schedule 3 of the Petroleum Royalty

Regulation (AR 248/90) in a particular case,

(

b) under

Schedule 2 of the Petroleum Royalty Regulation (AR

248/90), in any other case.

(8) The Crown's royalty share of natural gas and gas products shall be

calculated with reference to natural gas and gas products that are

quantities available for sale.

(9) The royalty on natural gas, gas products and field condensate shall be

free and clear of all deductions.

Royalty calculation point

11 Unless the Minister otherwise determines in a particular case, the

place at which the Crown's royalty share of natural gas, gas products or

field condensate is to be calculated is the place determined in accordance

with the following rules:

(

a) the royalty share of natural gas referred to in

section 10(1)

shall be calculated at

(

i) the last point of measurement before the natural

gas is delivered from the gathering system in which it is transported, or

(ii) the point of delivery under the disposition, if the

natural gas is disposed of and the point of delivery is upstream from the

point referred to in subclause (i);

(

b) the royalty share of pentanes plus referred to in

section 10(2)

shall be calculated at the first point of measurement after the pentanes

plus are delivered from the gathering system;

(

c) the royalty share of residue gas and other gas products

referred to in

section 10(4)(

a) shall be calculated at the plant gate of

the gas processing plant at which the residue gas and other gas products

are obtained;

(

d) the royalty share of residue gas referred to in

section

10(4)(b)(

i) shall be calculated at the plant gate of the last of the

reprocessing plants referred to in that subclause;

(

e) the royalty share of a gas product referred to in

section

10(4)(b)(ii) shall be calculated at the plant gate of the reprocessing

plant at which the gas product is obtained;

(

f) the royalty share of field condensate shall be calculated at

its first point of measurement after being obtained from natural gas or

solution gas.

Special royalty O.C.

12 Where in the opinion of the Lieutenant Governor in Council it is

necessary or desirable in the interest of conservation or of maintaining or

increasing the recovery of crude oil or natural gas from a well event, a

group of well events, a pool or any portion of a pool, the Lieutenant

Governor in Council may by order

(

a) prescribe a royalty payable with respect to natural gas

obtained from the well event, the group of well events, the pool or portion

of the pool, or any gas products obtained from that natural gas, that is

less than the royalty that would otherwise be payable under this

Regulation, and

(

b) prescribe the period in respect of which the order is to apply.

Unit operations

13 When natural gas recovered pursuant to a Crown lease is subject to a

unit agreement or unit operation order, the unit area shall be deemed to be

a location for the purposes of determining the rate of royalty applicable

to the portion of the production allocated to any tract wholly or partly

within the location of the Crown lease.

Proportion-ment of royalty liability

14(1) When the whole or part of a location forms a part only of a

production entity other than a unit area, the royalty payable to the Crown

under this Regulation on production from a well event or events in the

production entity shall be

(

a) in the proportion that the area of the location within the

production entity bears to the whole of the area of the production entity,

(

b) if the production entity is a drilling spacing unit and an

order under

section 80 or 81 of the Oil and Gas Conservation Act is in

effect with respect to the drilling spacing unit, in the proportion that

the share of the production allocated to the location or the part of the

location contained in the drilling spacing unit bears to the whole of the

production from the drilling spacing unit,

and the well event or events in the production entity are deemed to be in

the location or part of the location.

(2) Where the whole or part of a location forms the whole or part of a

drilling spacing unit that is partly inside and partly outside a unit area,

then, for the purposes of calculating royalty on the natural gas recovered

from a well event in the drilling spacing unit and gas products and field

condensate obtained from that natural gas, portions of the natural gas

shall be attributed to the parts of the drilling spacing unit inside and

outside the unit area, in the proportions that the areas of those

respective parts of the drilling spacing unit inside and outside the unit

area bear to the whole of the area of the drilling spacing unit.

When royalty not payable

15(1) No royalty is payable to the Crown,

(

a) subject to subsection (3), on natural gas or residue gas

consumed as a fuel in operations for gathering or processing natural gas

recovered pursuant to a Crown lease, or on residue gas consumed as a fuel

in operations for reprocessing residue gas obtained from natural gas

recovered pursuant to a Crown lease, where

(

i) the natural gas so consumed is recovered from the

same pool as the natural gas that is gathered or processed, or

(ii) the residue gas so consumed is obtained from

natural gas recovered from the same pool as the natural gas that is

gathered or processed,

as the case may be, including consumption as a fuel for the

purpose of generating electricity and steam in a power plant that is

provided for such operations in exchange for the fuel;

(

b) with approval of the Minister given before January 1, 1994, on

natural gas or residue gas consumed as a fuel in operations for the

recovery or processing of oil sands conducted under a commercial oil sands

scheme under the Oil Sands Conservation Act, where the scheme is also the

subject of a contract entered into pursuant to

section 9(

a) of the Act;

(

c) unless the Minister otherwise directs in any case, on natural

gas or residue gas consumed as a fuel in operations for the recovery or

processing of oil sands pursuant to a Project as defined in the Oil Sands

Royalty Regulation, 1997 (AR 185/97) where

(

i) the consumed natural gas, or the natural gas from

which the consumed residue gas was obtained, respectively, was recovered

under an agreement under which oil sands are to be recovered pursuant to

the Project, and

(ii) the oil sands so recovered or processed were

recovered from the development area, as defined in the Oil Sands Royalty

Regulation, 1997 (AR 185/97) of the Project;

(

d) unless the Minister otherwise directs in any case, on natural

gas or residue gas consumed as a fuel in operations for the recovery or

processing of oil sands that is subject to the payment of royalty under the

Oil Sands Royalty Regulation, 1984 (AR 166/84), where the consumed natural

gas, or the natural gas from which the consumed residue gas is obtained,

respectively, and the oil sands recovered or processed in such operations,

are recovered pursuant to the same agreement;

(

e) unless the Minister otherwise directs in any case, on natural

gas, or residue gas that is obtained from natural gas, recovered pursuant

to an experimental project as defined in the Experimental Oil Sands Royalty

Regulation (AR 347/92), where the natural gas or residue gas is consumed as

a fuel in the operation of the experimental project;

(

f) with the approval of the Minister, on natural gas or residue

gas consumed as a fuel in operations for the production of experimental oil

from an experimental project approved under the Experimental Project

Petroleum Royalty Regulation (AR 65/92) that is subject to the payment of

royalty to the Crown;

(

g) unless the Minister otherwise directs in any case, on any

natural gas or residue gas, other than natural gas or residue gas referred

to in clauses (

b) to (f), consumed as fuel for drilling or production

operations in respect of a well drilled pursuant to an agreement.

(2) Despite subsection (1), in respect of natural gas or residue gas

consumed in a month in accordance with clause (

b) or (

f) of that

subsection,

(

a) an amount equal to the royalty compensation that would be

payable on the gas in the absence of subsection (1) shall be paid to the

Crown as if subsection (1) did not apply in respect of the gas, and

(

b) the Minister shall credit an equivalent amount to the royalty

client account of the royalty client who made the payment, no later than

the last day of the month following the month in which the Minister

receives from the royalty client a report satisfactory to the Minister

concerning the consumption of the gas.

(3) Subsection (1)(

a) does not apply to residue gas consumed as a fuel at

a gas processing plant where the residue gas is obtained from a field

straddle plant.

(4) The Minister may, by written notice given to the person identified by

the Minister as the operator of a commercial oil sands scheme referred to

in subsection (1)(b), withdraw an approval referred to in that subsection

that relates to the scheme.

(5) Subsection (1)(

b) ceases to apply to natural gas and residue gas

consumed in a commercial oil sands scheme on or after the date indicated in

a notice given under subsection (4) as the effective date of withdrawal of

the approval referred to in subsection (1)(

b) in respect of the scheme.

(6) If any natural gas or residue gas that is subject to the payment of

royalty to the Crown is consumed as a fuel without having first been

disposed of, then, unless the Minister otherwise directs, the Crown's

royalty share of the natural gas or residue gas may, subject to the other

provisions of this Regulation that prescribe the royalty payable with

respect to the natural gas or residue gas, be consumed for the same

purpose.

Royalty exemptions

16 Natural gas is exempted from the payment of royalty to the Crown under

this Regulation in accordance with and to the extent authorized under

Schedule 8.

Division 2

Royalty Compensation

Liability for royalty compensation

17(1) The Crown's title to the Crown's royalty share of natural gas and

gas products is automatically transferred

(

a) at the point immediately downstream from the royalty

calculation point for the natural gas or gas products, or

(

b) in the case of sulphur,

(

i) at the place where it is solidified at the site of

the gas processing plant or reprocessing plant at which it is obtained, or

(ii) at the place where it leaves the gas processing

plant or reprocessing plant at which it is obtained, where it leaves the

plant in liquid form without having first been solidified,

to the person who is, in relation to that royalty share, the owner of the

lessee's share of the natural gas or gas products.

(2) When the Crown's title to the Crown's royalty share of natural gas or

a gas product is transferred pursuant to subsection (1), compensation is

payable to the Crown in accordance with this Regulation in respect of that

royalty share.

(3) Subject to this Regulation, the compensation payable to the Crown

under subsection (2) shall be an amount calculated

(

a) in accordance with

Schedule 1, with respect to natural gas

referred to in

section 10(1) and to residue gas;

(

b) in accordance with

Schedule 2, with respect to ethane;

(

c) in accordance with

Schedule 3, with respect to propane;

(

d) in accordance with

Schedule 4, with respect to butanes;

(

e) in accordance with

Schedule 5, with respect to pentanes plus;

(

f) in accordance with

Schedule 6, with respect to sulphur.

(4) Royalty compensation is not payable in respect of

(

a) gas products other than residue gas, ethane, propane, butanes,

pentanes plus and sulphur, and

(

b) light-ends.

(5) Where the Crown is entitled to a royalty on field condensate,

(

a) unless the Minister directs otherwise in a particular case, the

Crown's title to the Crown's royalty share of the field condensate is

automatically transferred at point immediately downstream from its royalty

calculation point to the person who is, in relation to that royalty share,

the owner of the lessee's share of the field condensate, and

(

b) the royalty compensation payable to the Crown in respect of the

royalty share so transferred shall be an amount calculated by multiplying

the quantity of the royalty share by the Pentanes Plus Reference Price for

the production month in which the field condensate was obtained less the

Transportation Allowance prescribed for the production month pursuant to

section 6(9)(a)(iii).

Payment of royalty compensation

18(1) The Minister shall, on or before the last day of the 2nd month

following a production month, issue and send an invoice to each royalty

client showing for that production month the Minister's calculations of at

least the following:

(

a) the aggregate quantities available for sale allocated to the

royalty client for the production month and the Crown's royalty share of

those quantities available for sale;

(

b) the amount payable to the Crown by the royalty client under

this Regulation.

(2) Where the Minister is satisfied that incorrect information in the

Registry or information omitted from the Registry may affect the

calculation of royalty compensation payable by a royalty client for a

production month,

(

a) the Minister may, subject to clause (b), calculate the royalty

compensation on the basis of one or more assumptions that, when applied to

the calculation, will ensure that the Crown is not financially prejudiced

by the incorrect or omitted information, and

(

b) when the incorrect or omitted information is corrected or

entered, as the case may be, in the Registry, the Minister shall

recalculate the royalty compensation accordingly and have any resulting

difference reflected in the royalty client's royalty client account.

(3) On receipt of a royalty invoice in respect of a production month, the

royalty client shall pay the Crown the net amount shown in the invoice on

or before

(

a) the last day in which the offices of the Department are open

during the 3rd month following the production month, where the production

month to which the invoice relates is December, or

(

b) the last day of the 3rd month following the production month,

in any other case.

(4) Where for any reason the Minister fails to issue and send royalty

invoices to royalty clients in respect of a production month by the

deadline prescribed by subsection (1) then, despite subsections (1) and

(3),

(

a) the Minister may, by general directions to the royalty clients

affected, require them to pay amounts on account of royalty compensation in

respect of that production month by the deadline prescribed by subsection

(3) on the basis of estimates by those royalty clients of the amounts owing

or on any other basis specified in the directions, and

(

b) the royalty clients affected must pay the amounts in accordance

with the directions.

(5) After the end of each year the Minister shall, with respect to each

royalty client,

(

a) calculate the actual quantities available for sale for all of

the production months in that year that are allocated to the royalty

client;

(

b) calculate the actual royalty compensation payable to the Crown

in respect of the Crown's royalty share of the quantities available for

sale calculated for the year pursuant to clause (a);

(

c) if the aggregate amount of the actual royalty compensation

calculated for the year under clause (

b) exceeds the aggregate of the

amounts of royalty compensation calculated for all production months in the

year shown in the royalty invoices for those production months, show the

excess amount payable to the Crown as an adjustment in the client's next

royalty invoice and also show in that invoice how the excess amount was

calculated;

(

d) if the aggregate amount of the actual royalty compensation

calculated for the year under clause (

b) is less than the aggregate of the

amounts of royalty compensation calculated for all production months in the

year shown in the royalty invoices for those production months, credit the

excess amount to the client in the client's next royalty invoice and also

show in that invoice how the excess amount was calculated.

(6) The Minister shall maintain for each royalty client an account called

a "royalty client account" that reflects the amounts debited and credited

to the account.

(7) If the royalty client account for a royalty client shows a net credit

balance in the client's favour as of the end of a month, then, unless

the Minister or the royalty client directs otherwise, the Crown shall

pay the royalty client an amount equal to that credit balance.

Injection credits

19(1) If natural gas or a gas product is injected during a production

month into a pool through a gas injection facility for the account of or

for the benefit of a royalty client, the Minister shall establish for the

royalty client a credit for that production month, called an "injection

credit", in an amount determined in accordance with this section.

(2) Except as provided in subsection (5), an injection credit for a

royalty client in respect of natural gas or a gas product injected into a

pool through a gas injection facility in a production month shall be

calculated by

(

a) determining the quantity of the Crown's royalty share of the

natural gas or gas products received at the gas injection facility for the

purposes of injection for the account of or for the benefit of the royalty

client (without deducting any part of the gas or gas products that are

subsequently lost or used as fuel in conducting injection) that would have

been payable for that production month if

(

i) the natural gas had instead been recovered from

that pool in that production month, or

(ii) the gas products had instead been obtained in that

production month from natural gas recovered from that pool,

as the case may be, and

(

b) determining the royalty compensation that would have been

payable by the royalty client under this Regulation with respect to the

royalty quantity determined under clause (a).

(3) In determining royalty compensation under subsection (2)(b), if

(

a) natural gas or a gas product is injected during a production

month into a pool through a gas injection facility,

(

b) the operator of the gas injection facility has informed the

Minister pursuant to

section 27(4) or (7) of a facility (in this

section

called the "reproducing facility") to which natural gas, or gas products

obtained from natural gas, that may be recovered from the pool in that

production month can be delivered, and

(

c) the Minister is satisfied that natural gas, or gas products

obtained from natural gas, recovered from the pool during the month could

be delivered to the reproducing facility,

the Minister shall, in addition to considering the natural gas or gas

products received at the gas injection facility as having been recovered,

or obtained from natural gas recovered, respectively, from the pool in that

month, and for the purpose of determining the royalty calculation point for

the natural gas or gas products and the royalty trigger factor for the

purposes of

section 5 of

Schedule 1 for that point, also consider the

natural gas or gas products as having been delivered to the reproducing

facility after being so recovered or obtained.

(4) In determining royalty compensation under subsection (2)(b), if

(

a) natural gas or a gas product is injected during a production

month into a pool through a gas injection facility,

(

b) the operator of the gas injection facility has informed the

Minister pursuant to

section 27(4) or (7) that there is no reproducing

facility for that month in respect of the gas injection facility, and

(

c) the Minister is satisfied there is no reproducing facility to

which natural gas, or gas products obtained from natural gas, recovered

from the pool during the month could be delivered,

the royalty trigger factor for the purpose of applying

section 5(1) of

Schedule 1 in respect of the natural gas or gas products shall, despite

section 5(2) of that Schedule, be 1.0.

(5) If natural gas or residue gas is injected into a pool in a production

month through a single well having no associated injection facilities or

through a gas injection facility in respect of which there is no

reproducing facility for that production month, an injection credit for a

royalty client for that production month shall be calculated by

(

a) determining the quantity of the Crown's royalty share of the

natural gas or residue gas so injected for the account of or for the

benefit of the royalty client (without deducting any part of the natural or

residue gas that are subsequently lost or used as fuel in conducting

injection) that would have been payable for that production month if

(

i) the natural gas had instead been recovered from

that pool in that production month, or

(ii) the residue gas had instead been obtained in that

production month from natural gas recovered from that pool,

as the case may be,

(

b) determining the respective volumes and quantities of the

in-stream components of the natural gas or residue gas so injected,

(

c) determining the average of the ISC reference prices for the

production month, weighted according to the respective proportionate

quantities of methane, ethane, propane, butanes and pentanes plus

components of the natural gas or residue gas, and

(

d) multiplying the weighted average price determined under clause

(

c) by the quantities of the natural gas or residue gas injected in that

production month.

(6) The Minister shall apply an injection credit calculated for a

production month as a credit to the royalty client's royalty client

account.

Allowable costs

20(1) The costs and allowances to which the Minister consents and that are

incurred

(

a) in gathering or processing the Crown's royalty share of natural

gas or reprocessing the Crown's royalty share of residue gas, and

(

b) in handling the Crown's royalty share of gas products within a

gas processing plant or reprocessing plant after the place in the plant

where the Crown's royalty share is calculated

shall, subject to this section, be deducted from the royalty compensation

otherwise payable in respect of the Crown's royalty share of the natural

gas and gas products.

(2) In this section, "facility" does not include a gas injection facility

or commercial storage facility.

(3) The Minister may determine the amount of the costs and allowances

referred to in subsection (1) in respect of 2002 and each subsequent year.

(4) Subject to subsection (5), the Minister may for the purposes of this

section

(

a) estimate the amount of the allowable costs calculated for a

royalty client for a year and, subject to clause (b)(ii), consent to that

estimated amount, and

(

b) after the end of the year determine the actual allowable costs

calculated for that royalty client for that year and,

(

i) if the actual costs exceed the estimated amount

referred to in clause (a), consent to further costs equal to the

difference, or

(ii) if the estimated amount referred to in clause (

a) exceed the actual allowable costs, invoice the royalty client for the

difference.

(5) The allowable costs consented to under this

section in respect of a

royalty client for a year may not exceed the aggregate royalty compensation

calculated under

section 17(3) in respect of that royalty client for that

year.

(6) The Minister may not consent under subsection (1) to the Crown being

liable for any allowable costs in relation to approved equipment as defined

in the Gas Processing Efficiency Assistance Regulation (AR 275/89) if

credits have been established under that Regulation in relation to that

approved equipment.

(7) If credits have been established pursuant to a regulation made under

the Act

(

a) on the basis of costs the Minister estimates may be saved in

the gathering or processing of the Crown's royalty share of natural gas or

the reprocessing of the Crown's royalty share of residue gas, and

(

b) that may be applied against the payment of money owing to the

Crown under this Regulation,

the Minister may, in determining the amount of costs and allowances under

subsection (3) in relation to such gathering, processing or reprocessing,

reduce the costs and allowances by an amount or amounts that the Minister

considers necessary to ensure that an amount equal to the present value, as

of the date the credits are established, of the estimated costs savings is

recovered by the Crown.

(8) The operator of a facility that commences operations in 2002 or any

subsequent year must furnish to the Minister by March 1 of the following

year a report respecting the facility, its owners and their respective

percentage interests in the facility, as of December 31 of the year in

which the facility commences operations.

(9) If one or more changes occur in the owners of a facility or their

respective percentage interests in the facility during a year, other than

the year in which the facility commences operations, the operator of the

facility must furnish a report to the Minister by the next March 1

respecting the owners and their respective percentage interests as of the

end of the year.

(10) Despite subsection (9), the operator of a facility must, on written

notice from the Minister, furnish to the Minister, within the time

indicated in the notice, a report respecting the owners of the facility and

their respective percentage interests in the facility as of the date

indicated in the notice.

(11) A person replaced as the operator of a facility shall furnish to the

Minister a report respecting the change in operators by the last day of the

month following the month in which the change occurs.

(12) The operator of a facility shall furnish to the Minister in respect

of 2002 and each subsequent year

(

a) a report respecting the allowable capital costs of the facility

for that year, on or before April 30 in the year following the year to

which the report relates, and

(

b) if the operator is directed to do so by the Minister, a report

respecting the allowable operating costs of the facility for that year, on

or before March 31 in the year following the year to which the report

relates.

(13) If a facility commences operations in 2002 or any subsequent year, a

report may not be furnished under subsection (12) by the operator of that

facility in respect of that year if the operator has not furnished a report

under subsection (8) in respect of that facility.

(14) A royalty client must furnish to the Minister in respect of 2002 and

each subsequent year a report respecting the consideration given by that

client for custom processing fees for that year and, to the extent approved

by the Minister, preceding years, for gathering or processing natural gas

and reprocessing residue gas during that year or preceding years, as the

case may be, and the report must be furnished on or before May 15 of the

year following the latest year to which the report relates.

(15) A royalty client may reallocate all or part of the allowable capital

costs allocated to it to one or more other royalty clients, but in that

event must furnish to the Minister a report respecting that reallocation on

or before May 15 following the year to which the reallocation relates.

Deposits

21(1) A deposit made by a royalty client pursuant to

section 18 of the

1994 Regulation and held by the Crown on October 1, 2002 shall be held as a

deposit for the purposes of this

section as though it had been paid to the

Crown under this section.

(2) A person who initially becomes a royalty client under this Regulation

on or after October 1, 2002 shall pay to the Crown, as a deposit, an amount

specified by the Minister, in the manner determined by the Minister.

(3) If a royalty client pays a deposit to the Crown under this

section

during a year, the Minister shall in each subsequent year, recalculate the

deposit to be maintained by the royalty client, as an amount equal to the

lesser of

(a) 1/6 of the Minister's estimate of the aggregate amount of

royalty compensation for which the royalty client was liable in respect of

the preceding year after deducting allowable costs, and

(

b) the product of the amount of the deposit maintained by the

royalty client immediately prior to the recalculation and the amount

determined by dividing the long term Gas Reference Price on the date on

which the recalculation occurs by the long term Gas Reference Price on the

date on which the immediately preceding recalculation under this clause

occurred.

(4) For the purposes of subsection (3)(b), the long term Gas Reference

Price on the date on which a recalculation occurs is the Minister's

estimate as of that date of the average Gas Reference Price for the period

commencing the first day of the year in which the recalculation occurs and

ending on a future date specified from time to time by the Minister.

(5) Despite subsection (3), the Minister may at any time recalculate the

deposit in an amount determined by the Minister where the Minister

considers the recalculation is warranted in the circumstances.

(6) If the amount of a deposit is recalculated pursuant to subsection (5),

the Minister shall

(

a) notify the royalty client of the amount of the recalculated

deposit,

(

b) if the amount of the recalculated deposit is greater than the

existing deposit, by a notice to the royalty client, require the royalty

client to pay the difference to the Crown within the time prescribed by the

notice in order to maintain the deposit in the recalculated amount, and

(

c) if the amount of the recalculated deposit is less than the

existing deposit, credit the difference to the client's royalty client

account unless the Minister directs that the difference is to be paid to

the client.

(7) Money paid to the Crown under this

section as a deposit or to increase

a deposit

(

a) shall be paid into the General Revenue Fund but not credited to

the royalty client's royalty client account, and

(

b) shall be refunded to the person maintaining the deposit when

that person ceases to be a royalty client, subject to any rights of the

Crown to set off against the amount otherwise refundable any debt owing by

that person to the Crown.

(8) Interest is not payable to a royalty client on the amount of a deposit

maintained by the royalty client under this section.

Part 3

Administration and Enforcement

Well groups

22(1) For the purposes of this Regulation, 2 or more well events

constitute a well group if those well events are

(

a) within a block as defined in the Oil and Gas Conservation Act,

(

b) subject to a unit agreement or unit operation order,

(

c) within a pool or part of a pool that is subject to a scheme for

enhanced recovery approved pursuant to

section 39(1)(

a) of the Oil and Gas

Conservation Act, or

(

d) subject to a commercial storage scheme.

(2) A well event that is not included in a well group under subsection

(1) is itself a well group for the purposes of this Regulation.

Royalty clients

23(1) The Department shall maintain records showing the persons who are

royalty clients for a well group by reason of

(

a) allocations of quantities available for sale made to those

persons pursuant to

section 25 in their capacity as royalty clients for

that well group, or

(

b) assignments made to those persons pursuant to subsection

(2) and relating to that well group.

(2) If a person assigns to another or others responsibility for paying

royalty compensation in respect of quantities available for sale allocated

pursuant to

section 25 to that person in the capacity of a royalty client

for a well group, the assignment must be in the form determined by the

Minister and must be furnished to the Minister on or before the last day of

the third month following the production month in which the assignment is

effective.

(3) On the filing by the Minister of an assignment that conforms with

subsection (2), the assignee becomes the royalty client in respect of

quantities available for sale allocated to the assignor pursuant to

section

25 for the production month in which the assignment is effective and for

subsequent production months.

(4) A royalty client is authorized to

(

a) make a request to the Minister under

section 38(2)(

b) of the

Act, or

(

b) make an objection to the Minister under

section 39 of the Act.

Responsibility for quantities available for sale

24 For the purposes of this Regulation,

(

a) the operator of a reprocessing plant is responsible for

quantities available for sale for a production month if they are obtained

at that reprocessing plant in a production month;

(

b) the operator of a gas processing plant is responsible for

quantities available for sale for a production month if they are obtained

at that gas processing plant in that production month;

(

c) the operator of a gathering system is responsible for

quantities available for sale for a production month if they are delivered

from that gathering system in that production month

(

i) other than to a gas processing plant or

reprocessing plant or to another gathering system, or

(ii) to a delivery point outside Alberta;

(

d) the operator of a battery is responsible for quantities

available for sale for a production month if they are delivered from that

battery in that production month.

Allocations of quantities available for sale

25(1) Unless the Minister otherwise directs in a particular case,

quantities available for sale for a production month must be allocated in

accordance with the following:

(

a) where an operator of a reprocessing plant is responsible for

the quantities available for sale, the operator may make allocations of

those quantities to one or more well groups but must allocate the

remainder, if any, to the gas processing plants, gathering systems or

batteries from which the quantities were delivered;

(

b) where an operator of a gas processing plant is responsible for

the quantities available for sale, the operator may make allocations of

those quantities, and the quantities available for sale allocated to the

operator's gas processing plant pursuant to clause (a), to one or more well

groups but must allocate the remainder, if any, to the gathering systems or

batteries from which the quantities were delivered for processing;

(

c) where a gathering system operator is responsible for the

quantities available for sale, the operator may make allocations of those

quantities, and the quantities available for sale allocated to the

operator's gathering system pursuant to clause (

a) or (b), to one or more

well groups but must allocate the remainder, if any, to the gathering

systems or batteries from which the quantities were delivered;

(

d) where a battery operator is responsible for the quantities

available for sale, the operator must allocate all of those quantities to

one or more well groups;

(

e) where an operator allocates quantities available for sale to a

well group pursuant to clause (a), (b), (

c) or (d), the operator must

further allocate those quantities to the royalty clients for the well

group;

(

f) where a well group consists of well events within a unit area,

allocations under clause (

e) to royalty clients must be in accordance with

the tract factors under the unit agreement or unit operation order.

(2) Notwithstanding subsection (1), the Minister may in a particular case

direct that a facility operator is to be responsible for specified

quantities available for sale and, in that event, the operator must comply

with subsection (1) with respect to those quantities available for sale.

(3) Allocations of quantities available for sale under subsection (1) must

be made in accordance with the following:

(

a) where an allocation is made to one facility or well group only,

the stream allocation factor for that allocation is 1.0;

(

b) where allocations are made to 2 or more facilities or well

groups or any combination of them, the stream allocation factor for each

allocation to a facility or well group is in the proportion that the

quantities allocated to that facility or well group bear to all of the

quantities required to be allocated, expressed as a decimal fraction;

(

c) where an allocation is made pursuant to subsection (1)(

e) to

one royalty client only, the owner allocation factor for that allocation is

1.0;

(

d) where allocations are made pursuant to subsection (1)(

e) to 2

or more royalty clients, the owner allocation factor for each allocation to

a royalty client is in the proportion that the quantities allocated to that

royalty client bear to all of the quantities required to be allocated to

the royalty clients for the well group, expressed as a decimal fraction;

(

e) the facility operator making the allocations must furnish to

the Minister

(

i) the stream allocation factor or factors for the

allocations made to facilities and well groups and any other data related

to the factor or factors that the Minister requires, and

(ii) the owner allocation factor or factors for

allocations made to royalty clients pursuant to subsection (1)(

e) and any

other data related to the factor or factors that the Minister requires.

(4) If natural gas or a gas product is received at a gas injection

facility or commercial storage facility in a production month for the

account of a royalty client for the purpose of injection or storage, as the

case may be, the operator of the facility must furnish to the Minister

(

a) the stream allocation data and owner allocation data respecting

the quantities so injected at that facility in that production month, as

though those quantities had been recovered from wells at that facility in

that production month, and

(

b) information respecting the volumes and quantities of in-stream

components of the natural gas or residue gas injected at that facility in

that production month.

(5) Allocation data referred to in subsection (3) or (4) must be furnished

to the Minister on or before the 15th day of the 2nd month following the

end of the production month to which the allocation data relates.

(6) A facility operator may furnish to the Minister amended allocation

data for a production month.

(7) If allocation data required to be furnished by subsection (3) is not

received by the Minister by the deadline prescribed by subsection (5), the

allocation data shall be deemed to be furnished by that deadline for the

purpose only of determining responsibility for quantities available for

sale and to show nil allocations of quantities available for sale.

Provisional royalty compensation

26(1) If a facility operator is responsible for allocating quantities

available for sale pursuant to

section 25 but fails to allocate all of

those quantities pursuant to that section,

(

a) the unallocated quantities of natural gas are deemed to be

recovered pursuant to Crown leases and the unallocated quantities of gas

products are deemed to be obtained from natural gas recovered pursuant to

Crown leases,

(

b) the unallocated quantities are deemed to be allocated to the

facility operator,

(

c) the facility operator is deemed for the purposes of this

Regulation to be the royalty client with respect to the Crown's royalty

share of those unallocated quantities, and

(

d) the facility operator, in the capacity of a royalty client, is

liable to the Crown for the payment of royalty compensation in respect of

the Crown's royalty share of those unallocated quantities, calculated in

accordance with subsection (3).

(2) Where, according to a report filed with the Board in respect of a

production month that identifies a common stream operator, the total

quantities of natural gas and residue gas received at a receipt meter

station exceed the aggregate of the quantities shown as received at the

receipt meter station from one or more facilities then, for the purposes of

this Regulation and despite any other provision of this Regulation,

(

a) the excess quantities of natural gas are deemed to be recovered

pursuant to Crown leases and the excess quantities of residue gas are

deemed to be obtained from natural gas recovered pursuant to Crown leases,

(

b) the excess quantities are deemed to be quantities available for

sale allocated to the common stream operator,

(

c) the common stream operator is deemed to be the royalty client

with respect to the Crown's royalty share of the excess quantities,

(

d) the common stream operator, in the capacity of a royalty

client, is liable to the Crown for the payment of royalty compensation in

respect of the Crown's royalty share of those excess quantities, calculated

in accordance with subsection (3), and

(e) subsection (6) applies, as far as practicable, to the common

stream operator and any royalty compensation owing by the common stream

operator under clause (d).

(3) Royalty compensation payable under subsection (1) or (2) shall be

called "provisional royalty compensation" and shall be calculated in

accordance with the following:

(

a) the Crown's royalty share of the unallocated or excess

quantities, as the case may be, shall be deemed to be 35% of those

quantities;

(

b) the provisional royalty compensation payable in respect of the

Crown's royalty share of those quantities shall be calculated by

multiplying the Crown's royalty share of those quantities by

(

i) the Gas Reference Price for the production month,

where the quantities consist of natural gas or residue gas,

(ii) the Ethane Reference Price for the production

month, where the quantities consist of ethane,

(iii) 95% of the Propane Reference Price for the

production month, where the quantities consist of propane,

(iv) 95% of the Butanes Reference Price for the

production month, where the quantities consist of butanes,

(v) 95% of the Pentanes Plus Reference Price for the

production month, where the quantities consist of

(

A) pentanes plus, or

(

B) a mixture comprising any two or more of

pentanes plus, propane or butanes, where the relative proportions of each

such gas product in the mixture has not been reported to the Minister for

the purposes of this Regulation in accordance with the Minister's

directions,

(vi) the price determined by the Minister for the

production month in accordance with subsections (4) and (5), where the

quantities consist of sulphur;

(

c) provisional royalty compensation computed under clause (

b) shall not be reduced by an amount for allowable costs.

(4) The price referred to in subsection (3)(b)(vi) shall be determined for

each production month by dividing

(

a) the total net revenue for sales of sulphur by all royalty

clients in the month to persons at arm's length with the royalty clients

and reported to the Minister for the production month pursuant to

section

4(1) or (2) of

Schedule 6,

(

b) the total number of tonnes of sulphur sold in the month under

the sales referred to in clause (a).

(5) In determining the total net revenue referred to in subsection (4)(a),

the net revenue from any sale included in the determination shall not be

less than zero.

(6) Where provisional royalty compensation is owing in respect of

unallocated or excess quantities available for sale and the facility

operator concerned allocates all or any of those quantities in accordance

with

section 25 by way of initial or amended allocation data furnished to

the Minister or reports filed with the Board, the Minister shall

recalculate the royalty compensation in respect of those allocated

quantities without reference to subsection (3) and any difference shall be

reflected in the facility operator's royalty client account.

(7) The Crown is not liable for interest on any amounts of provisional

royalty compensation that are reduced pursuant to subsection (6), but will

refund any interest received by it under

section 31(2)(

a) in respect of

those amounts to the extent those amounts are so reduced.

(8) Despite

section 31, where

(

a) provisional royalty compensation owing by a facility operator

in respect of unallocated or excess quantities available for sale is

included in a royalty invoice, and

(

b) the provisional royalty compensation is reduced as a result of

a recalculation under subsection (6) where the facility operator furnished

amended allocation data or filed reports with the Board by the 15th day of

the month following the month in which the invoice was issued,

no interest is payable by the facility operator under

section 31(2)(

b) in

respect of the provisional royalty compensation to the extent it is so

reduced.

Other reports

27(1) The operator of a gas injection facility must furnish to the

Minister a report respecting

(

a) the commencement of the operation of the gas injection

facility, if the operation commences after October 1, 2002, and

(

b) any change in

(

i) the persons having participating interests in a

well group that is subject to the gas injection scheme,

(ii) the Crown percentage for a well group that is

subject to the gas injection scheme,

(iii) the percentage of new gas or new pentanes plus for

a well group that is subject to the gas injection scheme,

(iv) the well events comprising a well group or the code

number assigned by the Minister to a well group, where natural gas or a gas

product recovered or obtained from the well group is injected into a pool

through the gas injection facility,

(

v) the pool or pools into which natural gas or a gas

product is injected through that gas injection facility or the Board's code

number for any of those pools, or

(vi) the field containing a pool referred to in

subclause (

v) or the Board's code number for that field,

on or before the last day of the month following the production

month in which the commencement date occurs or in which the effective date

of the change occurs, as the case may be.

(2) A person designated by the Minister as a reporter for the purposes of

this

section shall furnish to the Minister, on or before the 10th day of

the 2nd month following each production month, any one or more of the

following in accordance with the designation:

(

a) a report respecting the volumes of propane, butanes and

pentanes plus purchased by the person in that production month at points in

Alberta specified by the Minister, and the purchase prices of the propane,

butanes and pentanes plus;

(

b) a report respecting the volumes of propane, butanes and

pentanes plus sold by the person in that production month at points in

Alberta specified by the Minister, and the selling prices of the propane,

butanes and pentanes plus;

(

c) a report respecting the volumes of ethane purchased by that

person in that production month at points in Alberta specified by the

Minister, and the purchase prices of the ethane;

(

d) a report respecting the volumes of ethane sold by that person

in that production month at points in Alberta specified by the Minister,

and the selling prices of the ethane.

(3) In subsection (2), "pentanes plus" includes field condensate.

(4) The operator of a gas injection facility must furnish to the Minister

information indicating, for the purposes of

section 19(4),

(

a) the reproducing facility referred to in

section 19 to which

natural gas, or gas products obtained from natural gas, that may be

recovered from the receiving pool of the gas injection facility can be

delivered, if there is only one such facility when the information is

required to be furnished, or indicating one of those facilities if there is

more than one, or

(

b) indicating that there is no reproducing facility to which such

natural gas or gas products can be delivered at that time.

(5) The operator of a facility shall furnish information to the Minister

(

a) respecting the pipelines to which natural gas or gas products

can be delivered from the facility without first passing through an

intervening facility, and the receipt meter stations through which such

natural gas or gas products can be so delivered, or

(

b) indicating that there is no pipeline to which the natural gas

or gas products can be delivered at that time.

(6) Information referred to in subsection (4) or (5) shall be furnished to

the Minister on or before the last day of the month following the month in

which operation of the gas injection facility or facility commences, if

operation commences on or after October 1, 2002.

(7) If any change occurs in respect of the information furnished to the

Minister under subsection (4) or (5), the operator of the gas injection

facility or facility in respect of which the information was furnished

shall furnish the Minister with further information respecting the change

on or before the last day of the month following the month in which the

change occurs.

(8) If natural gas recovered in October, 2002 or any subsequent production

month is disposed of without having first been processed at a gas

processing plant or reprocessing plant, the person who disposed of the

natural gas must furnish to the Minister, on or before the 15th day of the

2nd month following the month in which the natural gas was recovered, a

report

(

a) relating to each disposition of the natural gas and the person

to whom the disposition was made and containing any other related

information the Minister requires, and

(

b) containing or accompanied by a component analysis of the

natural gas that is the subject of each disposition.

(9) Where natural gas or residue gas is delivered in October, 2002 or any

subsequent production month to the first facility downstream from the

royalty calculation point for that natural gas or residue gas, the operator

of that facility must furnish to the Minister, on or before the 18th day of

the month following the production month, information respecting the

volumes and quantities of in-stream components of the natural gas or

residue gas.

(10) Where

(

a) according to a report filed with the Board, natural gas or

residue gas is received in October, 2002 or any subsequent production month

at a receipt meter station,

(

b) the natural gas or residue gas is received from one or more

facilities at which the royalty calculation point for the natural gas or

residue gas is located, and

(

c) the report identifies a person as the common stream operator,

the common stream operator must furnish to the Minister, on or before the

18th day of the following month, information respecting the volumes and

quantities of in-stream components of the natural gas or residue gas.

Keeping of records

28(1) A person who is or was required or permitted by this Regulation or

the 1994 Regulation to submit or furnish to the Minister any report or

other document or information shall keep all records that come or came into

that person's possession or the possession of any of that person's agents

and that are, were or could be used for the purpose of preparing the

report, document or information.

(2) If information furnished to the Minister by one or more persons for

the purposes of this Regulation is inconsistent with information furnished

to the Minister by any other person or persons for the purposes of this

Regulation, the Minister may disclose the information to any or all of

those persons to the extent the Minister considers necessary to resolve the

inconsistency.

(3) A person required by subsection (1) to keep records must keep those

records in the form of paper documents or store them in an electronic

medium.

Penalties

29(1) A person who is required to furnish a report to the Minister under

section 20(12)(

a) or under

section 4(1) or (2) of

Schedule 6 and fails to

do so by the prescribed deadline applicable to the report is liable to pay

a penalty of $100 for each month or part of a month during which the

failure continues.

(2) Despite subsection (1), where

(

a) a person who is required to furnish a report to the Minister

under

section 20(12)(

a) in respect of a year fails to do so by the

prescribed deadline for the report by reason of the subsequent rejection of

the report by the Minister,

(

b) the penalty under subsection (1) is included in the royalty

invoice issued following the prescribed deadline for the report, and

(

c) the person furnishes the report by the 15th day of the month

following the month in which the invoice was issued,

the person is not liable for the penalty.

(3) Despite subsection (1), if

(

a) a person who is required to furnish a report to the Minister

under

section 4(1) or (2) of

Schedule 6 in respect of a month fails to do

so by the prescribed deadline for the report, and

(

b) before furnishing the report or without having furnished the

report, furnishes a report to the Minister under

section 4(4) of

Schedule 6

in respect of the year containing that month,

the person is not liable for a penalty under subsection (1) in relation to

the report referred to in clause (

a) in respect of any month occurring

after the month following the month in which the report referred to in

clause (

b) is furnished to the Minister.

(4) A person who is required to furnish a report to the Minister under

section 20(12)(

b) and fails to do so by the prescribed deadline for the

report is liable to pay a penalty of $200, and an additional penalty of

$200 upon the passing of each subsequent anniversary of the prescribed

deadline without the report being furnished.

(5) A person who furnishes a report to the Minister under

section 20(14)

after the prescribed deadline for the report is liable to pay a penalty of

$100 for each month following the deadline, ending with the month in which

the report is furnished.

(6) Despite subsection (5), where

(

a) a person who is required to furnish a report to the Minister

under

section 20(14) in respect of a year fails to do so by the prescribed

deadline for the report by reason of the subsequent rejection of the report

by the Minister, and

(

b) the penalty under subsection (5) is included in the first

royalty invoice issued following the prescribed deadline for the report,

and

(

c) the person furnishes the report by the 15th day of the month

following the month in which the invoice was issued,

the person is not liable for the penalty.

(7) A person who is required to furnish a report to the Minister under

section 27(2) or under

section 10(4) of

Schedule 1 and fails to do so by

the prescribed deadline applicable to the report is liable to pay a penalty

of $1000 for each month or part of a month during which the failure

continues.

(8) A person who is required to furnish a report to the Minister under

section 9(7) of

Schedule 1 or under

section 4(4) of

Schedule 6 and fails to

do so by the prescribed deadline applicable to the report is liable to pay

a penalty of $1000.

(9) The Minister may waive, in whole or part, a penalty imposed under this

section on being satisfied that it is appropriate to do so in the

circumstances.

Penalty following audit

30(1) Where, as a result of an audit or examination conducted by or on

behalf of the Minister under the Act, the Minister determines that the

royalty compensation actually payable by a royalty client in respect of all

production months in 2002 or any subsequent year is greater than the

aggregate royalty compensation paid in respect of that year, the Minister

(

a) subject to subsection (2), may impose on the royalty client a

penalty in an amount equal to 10% of the deficiency, and

(

b) shall, whether a penalty is imposed under clause (

a) or not,

give a notice to the royalty client describing what in the Minister's

opinion was the cause giving rise to the deficiency.

(2) Where the Minister has given a notice to a royalty client under

subsection (1)(

b) relating to an audit or examination in respect of a year

and, as a result of an audit or examination conducted by or on behalf of

the Minister under the Act in respect of a subsequent year, the Minister

determines that

(

a) the royalty compensation actually payable by the royalty client

in respect of all production months in that subsequent year is greater than

the aggregate royalty compensation paid in respect of that subsequent year,

and

(

b) the cause giving rise to the deficiency was the same as or

similar to the cause described in the notice,

the Minister may, subject to subsection (3), impose on the royalty client a

penalty in an amount not exceeding 50% of that part of the deficiency in

respect of that subsequent year that the Minister considers to be

attributable to that cause.

(3) No penalty may be imposed under this

section if the amount of the

penalty otherwise payable in the absence of this subsection would be less

than $1000.

Interest

31(1) In this section, "overpayment of royalty compensation" and

"underpayment of royalty compensation" means an overpayment or

underpayment, respectively, of royalty compensation payable by a royalty

client, as determined by the Minister in a recalculation of the amount of

royalty compensation.

(2) Interest is payable by a royalty client to the Crown in accordance

with this

section

(

a) on an underpayment of royalty compensation, computed

(

i) from the first day of the 3rd month following the

production month in respect of which the royalty compensation is payable,

and

(ii) to the last day of the month in which the first

royalty invoice is issued in which the underpayment of royalty compensation

initially appears,

and

(

b) on any amount that appears as payable to the Crown in a royalty

invoice issued to the royalty client in respect of a production month,

including an underpayment of royalty compensation, computed

(

i) from the first day of the 4th month following the

production month, and

(ii) to the date on which the entire unpaid balance,

together with accrued interest, is received by the Minister.

(3) Interest is payable by the Crown to a royalty client in accordance

with this

section on an overpayment of royalty compensation payable by the

royalty client in respect of a production month, computed

(

a) from the first day of the 3rd month following the end of the

production month, and

(

b) to the last day of the month in which the first royalty invoice

is issued in which the overpayment and interest are credited.

(4) For the purposes of this section,

(

a) interest payable by or to the Crown on any amount referred to

in subsection (2) or (3) is payable on the balance of that amount remaining

unpaid from time to time,

(

b) if interest is payable under this

section by or to the Crown in

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

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

Alberta Treasury Branches as its prime lending rate on loans payable in

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

day occurs, and

(

c) interest computed under subsection (2) or (3) shall, unless the

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

for which it is computed.

Application of payments

32 Unless the Minister directs otherwise, if money is paid to the credit

of a royalty client's royalty client account, the money shall be applied in

the following order:

(

a) first, on arrears of fees owing by the royalty client under

this Regulation;

(b) 2nd, on penalties owing by the royalty client under this

Regulation;

(c) 3rd, on interest owing by the royalty client under this

Regulation;

(d) 4th, on an amount owing by the royalty client under

section

21(6)(

b) to increase a deposit maintained by the royalty client;

(e) 5th, on royalty compensation owing by the royalty client.

Audit of Department records

33(1) The Minister may enter into a contract or arrang