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(Consolidated up to 223/2008)
ALBERTA REGULATION 166/84
Mines and Minerals Act
OIL SANDS ROYALTY REGULATION, 1984
1 The royalty reserved to the Crown on oil sands recovered from a well event pursuant to an agreement granting oil sands rights is the royalty that would be reserved to the Crown under the Petroleum Royalty Regulation (Alta. Reg. 248/90) if the oil sands were crude oil.
AR 166/84 s1;354/93
1.1 This Regulation does not apply to natural gas recovered from a well event pursuant to an agreement granting oil sands rights.
AR 156/2001 s18
1.2 This Regulation does not apply to solution gas.
AR 208/2006 s14
2(1) If any oil sands are recovered from a well event pursuant to an agreement granting oil sands rights and are sold or otherwise disposed of,
(a) the Crown’s royalty share of the oil sands shall be included in the sale or other disposition,
(b) the lessee shall act as the agent of the Crown for the purpose of selling or otherwise disposing of the Crown’s royalty share of the oil sands, and
(c) except where the oil sands are sold to the Alberta Petroleum Marketing Commission,
(i) the Minister may determine the value of the Crown’s royalty share of the oil sands at the time they are sold or otherwise disposed of, notwithstanding the consideration actually given for the Crown’s royalty share when it was sold or otherwise disposed of, and
(ii) subject to subsection (1.1), the lessee shall pay to the Crown the amount of the value of the Crown’s royalty share of the oil sands, as determined under subclause (i), not later than the last day of the month following the month in which they were sold or otherwise disposed of.
(1.1) Where a payment under subsection (1)(c)(ii) is required not later than the last day of a month and that month is March, the lessee shall make the payment not later than the last day of March on which the offices of the Department are open.
(2) A lessee does not have any of the rights, privileges, prerogatives or immunities of the Crown by reason only of acting as an agent of the Crown under this section.
(3) The lessee of an agreement granting oil sands rights shall file with the Minister not later than the last day of each month, a report showing the amounts of oil sands recovered from each well event pursuant to the agreement and sold or otherwise disposed of or consumed in the preceding month.
AR 166/84 s2;354/93;47/2007
3 This Regulation does not apply to oil sands to which the Experimental Oil Sands Royalty Regulation (Alta. Reg. 347/92) apply.
AR 166/84 s3;354/93
4 In this Regulation,
(a) “solution gas” means
(i) gas that is separated from crude bitumen after recovery from a well, and
(ii) gas that is dissolved in crude bitumen under initial reservoir conditions and includes any of that gas that evolves as a result of changes in pressure or temperature, or both, due to human disturbance;
(b) “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 crude bitumen 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 crude bitumen 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.
AR 354/93 s5;208/2006
5 This Regulation applies with respect to oil sands recovered in May, 1984 and subsequent months ending with December, 2008.
AR 166/84 s6;354/93;223/2008
