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Alberta Regulation 198/2008
Income and Employment Supports Act
INCOME SUPPORTS, HEALTH AND TRAINING BENEFITS 
AMENDMENT REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 559/2008) 
on December 3, 2008 pursuant to section 18 of the Income and Employment Supports 
Act. 
1   The Income Supports, Health and Training Benefits 
Regulation (AR 60/2004) is amended by this Regulation.

2   Section 5(2) is amended by adding the following after 
clause (j):
	(j.1)	a Registered Disability Savings Plan;

3   Section 6(4)(a) is amended by adding the following after 
subclause (xxiii);
	(xxiv)	payments received from a Registered Disability Savings 
Plan;


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Alberta Regulation 199/2008
Animal Health Act
TRACEABILITY LIVESTOCK IDENTIFICATION REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 562/2008) 
on December 3, 2008 pursuant to section 69 of the Animal Health Act. 
Table of Contents
	1	Definitions
	2	Application
	3	Recording and reporting livestock information
	4	Feedlots
	5	Retagging
	6	Records
	7	Reporting into the Canadian Livestock Tracking System
	8	Offence
	9	Expiry
	10	Coming into force
Definitions
1   In this Regulation,
	(a)	"actual birth date" means the day, month and year of birth of 
livestock;
	(b)	"approved tag" means a tag that meets the requirements of 
the Health of Animals Regulations (Canada);
	(c)	"birthing start date" means the day, month and year of the 
first head of livestock born as part of a herd;
	(d)	"Canadian Livestock Tracking System" means the database 
operated by the Canadian Cattle Identification Agency;
	(e)	"dairy farm" means an operation, including the buildings and 
land occupied or used in connection with the production of 
milk, where dairy livestock are kept and part or all of the 
milk obtained from the dairy livestock is sold, offered for 
sale or supplied for human consumption;
	(f)	"farm of origin" has the meaning set out in the Health of 
Animals Act (Canada);
	(g)	"feedlot" means an operation that feeds more than 5000 head 
of livestock annually and is operated in whole or in part for 
the purposes of growing or finishing livestock by means 
other than grazing, but does not include
	(i)	an overwintering site where livestock are fed and 
sheltered,
	(ii)	a dairy farm, or
	(iii)	a site for breeding livestock and their offspring;
	(h)	"livestock" means cattle;
	(i)	"premises" means a premises as defined in the Traceability 
Premises Identification Regulation;
	(j)	"premises identification number" means a premises 
identification number as defined in the Traceability Premises 
Identification Regulation.
Application
2   This Regulation applies to all cattle born in Alberta on or after 
January 1, 2009.
Recording and reporting livestock information
3(1)  A livestock owner must identify livestock following the birth of a 
head of livestock, keep records and report to the Minister in 
accordance with this section.
(2)  Except as provided in subsection (5), a livestock owner must 
ensure that livestock are identified by an approved tag and that 
corresponding records required by subsection (4)(b) are created and 
reported to the Minister,
	(a)	if the livestock owner records birth dates by birthing start 
date, within 8 months of the birthing start date, or
	(b)	 if the livestock owner records birth dates by actual birth 
date, within 90 days of the birth of each head of livestock
or before the livestock leave the farm of origin, whichever occurs first.
(3)  A livestock owner must record the age of livestock by
	(a)	the actual birth date, or
	(b)	the birthing start date.
(4)  A livestock owner must 
	(a)	apply an approved tag required to be applied to the livestock 
in a manner that meets the requirements of the Health of 
Animals Regulations (Canada),
	(b)	record in the livestock owner's records for each head of 
livestock
	(i)	the livestock owner's premises identification number,
	(ii)	the approved tag number applied to the livestock in 
accordance with the Health of Animals Regulations 
(Canada),
	(iii)	the actual birth date or birthing start date for the 
livestock, and
	(iv)	the method by which the birth date is determined 
according to subclause (iii),
		and
	(c)	report all information required by clause (b) to the Minister.
(5)  A livestock owner may move livestock without an approved tag to 
a site that meets the requirements of the Health of Animals Regulations 
(Canada) for the purposes of having an approved tag applied to the 
livestock at that site and must apply an approved tag within 6 months 
of the birthing start date. 
Feedlots
4(1)  A feedlot owner must identify livestock by recording and 
reporting all of the following information to the Minister:
	(a)	the premises identification number for the feedlot;
	(b)	the approved tag number for each head of livestock that 
moves into the feedlot within 7 days of the date the livestock 
moves into the feedlot;
	(c)	the approved tag number for each head of livestock that 
moves out of the feedlot within 7 days of the date the 
livestock moves out of the feedlot, unless the head of 
livestock is destined for slaughter.
(2)  A head of livestock is destined for slaughter if the livestock is 
delivered directly to a meat facility licensed under the Meat Inspection 
Act or to a registered establishment operating under the Meat 
Inspection Act (Canada) after leaving the feedlot.
Retagging
5   A person who owns, possesses or has the care or control of 
livestock that does not bear an approved tag must
	(a)	apply a new approved tag in accordance with the Health of 
Animals Regulations (Canada), and
	(b)	report to the Minister
	(i)	the date the new approved tag is applied to the 
livestock,
	(ii)	the new approved tag number,
	(iii)	the previously approved tag number, if available, and
	(iv)	the premises identification number of the person from 
whom the livestock owner or feedlot owner took 
possession of, custody of or control of the livestock, if 
available,
within 30 days of the date the new tag is applied by livestock owners 
or before the date the livestock leave the farm of origin, whichever is 
earlier, and within 7 days of the date the new tag is applied by feedlot 
owners or before the livestock leave the feedlot, whichever is earlier. 
Records
6   Any person who is required to identify livestock under this 
Regulation must
	(a)	retain records containing the livestock's approved tag 
number and the livestock's production number or other 
on-farm or feedlot livestock identification numbers, 
	(b)	correlate records required by sections 3(4)(b) and 4(1), as 
applicable, with records retained in clause (a) for each head 
of livestock, and
	(c)	provide a copy of the records referred to in this section to the 
Minister upon request.
Reporting into the Canadian Livestock Tracking System
7   Livestock owners and feedlot owners must comply with the 
reporting requirements of this Regulation except the requirements of 
section 6(c) by reporting the required information into the Canadian 
Livestock Tracking System.
Offence
8(1)  No person shall create false records or provide false information 
to the Minister or to the Canadian Livestock Tracking System for the 
purposes of this Regulation.
(2)  Any person who contravenes section 3, 4, 5, 6 or 7 is guilty of an 
offence.
Expiry
9   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 January 31, 2014.
Coming into force
10   This Regulation comes into force on January 1, 2009.


Alberta Regulation 200/2008
Animal Health Act
TRACEABILITY PREMISES IDENTIFICATION REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 563/2008) 
on December 3, 2008 pursuant to section 69 of the Animal Health Act. 
Table of Contents
	1	Definitions
	2	Premises identification
	3	Commingling site
	4	Application for premises identification account
	5	Application for premises identification number
	6	Information
	7	Offence
	8	Expiry
	9	Coming into force
Definitions
1   In this Regulation,
	(a)	"applicant" means a person who applies for a premises 
identification account and at least one premises identification 
number;
	(b)	"commingling site" means a commingling site under section 
3;


	(c)	"feedlot" means an operation that feeds more than 5000 head 
of livestock annually and is operated in whole or in part for 
the purposes of growing or finishing livestock by means 
other than grazing, but does not include
	(i)	an overwintering site where livestock are fed and 
sheltered,
	(ii)	a dairy farm, or
	(iii)	a site for breeding livestock and their offspring;
	(d)	"location" means one or more premises that are contiguous to 
each other and that are under one management for breeding, 
raising, displaying, assembling, growing, finishing and 
disposing of livestock;
	(e)	"premises" means the area of land contained in a legal land 
description or identified by georeferenced coordinates and is 
where recordable animals are bred, kept, raised, displayed, 
assembled or disposed of;
	(f)	"premises identification account" means a unique identifying 
account number assigned by the Minister to an owner of a 
recordable animal or to an operator of a commingling site;
	(g)	"premises identification number" means a unique identifying 
number assigned by the Minister to premises;
	(h)	"recordable animal" means
	(i)	alpacas,
	(ii)	asses,
	(iii)	bees,
	(iv)	bison,
	(v)	cattle,
	(vi)	domestic cervids,
	(vii)	doves in captivity,
	(viii)	ducks in captivity,
	(ix)	fish acquired, propagated, reared or kept in accordance 
with a class A commercial fish culture licence or a class 
B commercial fish culture licence issued under the 
Fisheries (Alberta )Act,
	(x)	fur-bearing animals as defined in the Fur Farms Act,
	(xi)	geese in captivity,
	(xii)	goats,
	(xiii)	guinea fowl in captivity,
	(xiv)	horses,
	(xv)	llamas,
	(xvi)	mules,
	(xvii)	peafowl in captivity,
	(xviii)	pheasants in captivity,
	(ixx)	pigeons in captivity,
	(xx)	poultry in captivity,
	(xxi)	quail in captivity,
	(xxii)	rabbits raised for the production of meat,
	(xxiii)	ratites,
	(xxiv)	sheep,
	(xxv)	swine,
	(xxvi)	wild boars,
	(xxvii)	wild turkeys in captivity, and
	(xxviii)	yaks.
Premises identification
2(1)  An owner of a recordable animal must apply for a premises 
identification account and at least one premises identification number 
in the form and manner approved by the Minister within 30 days of 
assuming ownership of a recordable animal.
(2)  An owner of a recordable animal may obtain a premises 
identification number for each location, other than a commingling site, 
where the owner's recordable animal may be located.
(3)  A commingling site operator must provide premises identification 
numbers to recordable animal owners who have recordable animals on 
the commingling site.
(4)  An owner of an animal that is kept at a commingling site must 
provide the premises identification number for the commingling site in 
the application for a premises identification account.
(5)  No owner of a recordable animal shall breed, keep, raise, display, 
assemble or dispose of the recordable animal unless that owner has a 
premises identification account.
Commingling site
3(1)  In this Regulation, a commingling site is a location, other than a 
farm or a ranch, where recordable animals owned by different owners 
are kept together either temporarily or permanently.
(2)  Commingling sites include
	(a)	an abattoir under the Meat Inspection Act,
	(b)	animal artificial insemination centres,
	(c)	animal embryo transfer stations,
	(d)	assembling stations,
	(e)	carcass disposal sites,
	(f)	boarding stables,
	(g)	community pastures,
	(h)	fairs and exhibitions,
	(i)	feedlots,
	(j)	livestock markets,
	(k)	an establishment operating under the Meat Inspection Act 
(Canada),
	(l)	meat facilities under the Meat Inspection Act,
	(m)	race tracks,
	(n)	renderers,
	(o)	veterinary clinics,
	(p)	veterinary laboratories, and
	(q)	veterinary hospitals.
(3)  An operator of a commingling site shall obtain a premises 
identification account and at least one premises identification number 
for each commingling site operated by the operator within 30 days of 
assuming ownership or operation of the commingling site in the form 
and manner approved by the Minister.
Application for premises identification account
4(1)  An application for a premises identification account must include 
the following information:
	(a)	the applicant's name;
	(b)	the name of the business the applicant will be operating 
under, if any;
	(c)	the applicant's contact information during business hours and 
after business hours, including the applicant's
	(i)	address,
	(ii)	telephone number,
	(iii)	cell phone number, if available,
	(iv)	fax number, if available, and
	(v)	e-mail address, if available.
(2)  If the applicant is an owner of a recordable animal that is located at 
a commingling site, the applicant must provide the premises 
identification number of the commingling site, obtained from the 
operator of the commingling site under section 2(3) in the application 
for a premises identification account.
Application for premises identification number
5(1)  An application for a premises identification number must include 
the following information:
	(a)	the applicant's name;
	(b)	the applicant's contact information and the contact 
information for the person who will be the primary contact 
for the premises during business hours and after business 
hours, including each person's
	(i)	address,
	(ii)	telephone number,
	(iii)	cell phone number, if available,
	(iv)	fax number, if available, and
	(v)	e-mail address, if available;
	(c)	the applicant's previously obtained Canadian Cattle 
Identification Agency premises number, if obtained;
	(d)	the applicant's previously obtained Alberta Pork Producers' 
premises number, if obtained;
	(e)	the legal land description or georeferenced coordinates for 
the premises to be associated with the premises identification 
account required under section 2(1), 3(3) or 4(2);
	(f)	the type of premises the premises identification number is to 
be assigned to;
	(g)	the species of recordable animals that will be present on each 
location associated with the applicant's management of a 
recordable animal operation;
	(h)	the maximum capacity of each species of recordable animals 
that may be present on each location associated with the 
applicant's management of a recordable animal operation.
(2)  If a recordable animal is located at a commingling site, the owner 
of the recordable animal must use the premises identification number 
issued to the operator of the commingling site and does not need to 
obtain a separate premises identification number for the commingling 
site.
Information
6   An applicant must inform the Minister of any change in the 
information provided under section 4 or 5 within 30 days after the 
change in information occurs.
Offence
7   Any person who knowingly provides false information in an 
application under section 4 or 5 or provides false information under 
section 6 is guilty of an offence.
Expiry
8   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 January 31, 2014.
Coming into force
9   This Regulation comes into force on January 1, 2009.



Alberta Regulation 201/2008
Stray Animals Act
STRAY ANIMALS AMENDMENT REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 566/2008) 
on December 3, 2008 pursuant to section 35 of the Stray Animals Act. 
1   The Stray Animals Regulation (AR 301/96) is amended by 
this Regulation.



2   Section 1 is amended by renumbering it as section 1(1) 
and by adding the following after subsection (1):
(2)  In the Act, "livestock" means
	(a)	alpacas,
	(b)	bison,
	(c)	cattle,
	(d)	donkeys,
	(e)	goats,
	(f)	horses, 
	(g)	llamas,
	(h)	mules,
	(i)	sheep, and
	(j)	swine.

3   Sections 2 to 4 are repealed.

4   Section 7 is amended by striking out "2009" and 
substituting "2014".

5   This Regulation comes into force on the coming into 
force of the Stray Animals Amendment Act, 2005.



Alberta Regulation 202/2008
Alberta Enterprise Corporation Act
ALBERTA ENTERPRISE CORPORATION REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 568/2008) 
on December 3, 2008 pursuant to section 16 of the Alberta Enterprise Corporation 
Act. 
Table of Contents
	1	Interpretation
	2	Investments
	3	Disqualification of directors
	4	Borrowing
	5	Indemnities
	6	Subsidiaries
	7	Expiry


	8	Coming into force
Interpretation
1   In this Regulation, "Act" means the Alberta Enterprise 
Corporation Act.
Investments
2   The Corporation may make investments only as a limited partner in 
a limited partnership, and may not act as a general partner in respect of 
any investment.
Disqualification of directors
3(1)  A director is disqualified if the director
	(a)	becomes a dependent adult as defined in the Dependent 
Adults Act or the subject of a certificate of incapacity under 
that Act,
	(b)	becomes a formal patient as defined in the Mental Health 
Act,
	(c)	is found to be a person of unsound mind by a court elsewhere 
than in Alberta,
	(d)	becomes a bankrupt in Canada or a person having a status 
equivalent to bankrupt in any other jurisdiction,
	(e)	is convicted
	(i)	of an indictable offence or of an offence of a similar 
nature in another jurisdiction, or has been convicted of 
such an offence within the immediately preceding 5 
years, or
	(ii)	of an offence under the Bank Act (Canada) or the Loan 
and Trust Corporations Act, the Credit Union Act, the 
Insurance Act or the Securities Act, or an equivalent law 
of another jurisdiction,
	(f)	becomes an individual who is an employee of, or who is an 
employee of an agent of, the Crown,
	(g)	becomes a Member of the Legislative Assembly of Alberta, 
or
	(h)	is found, after being appointed, to have been
	(i)	less than 18 years of age at the time of the appointment,
	(ii)	a person described in any of clauses (a), (b), (c), (d) or 
(f) at the time of the appointment,
	(iii)	convicted of an offence referred to in clause (e)(i) 
within the 5 years immediately preceding the 
appointment, or
	(iv)	convicted of an offence referred to in clause (e)(ii) at 
any time preceding the appointment.
(2)  An act of the board or a committee of the board is valid 
notwithstanding that a director may have been disqualified under this 
section.
Borrowing
4   Subject to the Financial Administration Act, the Corporation may, 
if authorized by a resolution of the board, borrow money
	(a)	by credit card, if the money is required for operating 
purposes in the ordinary course of the Corporation's 
business, or
	(b)	by another means or for another purpose, with the prior 
written authorization of the Minister.
Indemnities
5(1)  The Corporation may indemnify a person under section 7(1) of 
the Act if the indemnity
	(a)	is in writing,
	(b)	is authorized by a resolution of the board, and
	(c)	provides that it applies only to the extent that the person is 
not otherwise indemnified.
(2)  An indemnity referred to in subsection (1) may contain additional 
terms and conditions required by the Corporation.
(3)  Subject to subsections (4) and (5), the Corporation may provide an 
indemnity under section 7(2) of the Act if the indemnity is in writing, 
is authorized by a resolution of the board and 
	(a)	is ancillary and incidental to the business purpose of an 
agreement involving the Corporation and that agreement is of 
a kind where no liability under the indemnity is likely to arise 
in the normal course of the performance of the agreement if 
the agreement is properly performed, or
	(b)	is an indemnity against losses that may be incurred by a 
financial institution resulting from a loan to a receiver, 
liquidator, bankruptcy trustee, administrator or other person 
acting in a similar capacity who is appointed by the 
Corporation.
(4)  The Corporation may give indemnities only as a limited partner in 
respect of an obligation of the limited partnership, and shall not give 
any indemnity that requires or could require the Corporation to 
individually indemnify any person.
(5)  The Corporation may give an indemnity only if all indemnification 
that may become payable under it is to be paid from the assets of the 
limited partnership.
Subsidiaries
6   The Act and this Regulation apply to any subsidiaries of the 
Corporation.
Expiry
7   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 March 31, 2014.
Coming into force
8   This Regulation comes into force on the coming into force of the 
Alberta Enterprise Corporation Act.


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Alberta Regulation 203/2008
Assured Income for the Severely Handicapped Act
ASSURED INCOME FOR THE SEVERELY HANDICAPPED GENERAL 
AMENDMENT REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 569/2008) 
on December 3, 2008 pursuant to section 12 of the Assured Income for the Severely 
Handicapped Act. 
1   The Assured Income for the Severely Handicapped 
General Regulation (AR 91/2007) is amended by this 
Regulation.

2   Schedule 1, Table 1 is amended by adding the following 
after section 1(f):
	(f.1)	a payment under a registered disability savings plan under 
section 146.4 of the Income Tax Act (Canada);

3   Schedule 2 is amended by adding the following after 
section 2(2)(c):
	(c.1)	a registered disability savings plan under section 146.4 of the 
Income Tax Act (Canada);


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Alberta Regulation 204/2008
Health Insurance Premiums Act
HEALTH INSURANCE PREMIUMS AMENDMENT REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 575/2008) 
on December 3, 2008 pursuant to section 2 of the Health Insurance Premiums Act. 
1   The Health Insurance Premiums Regulation (AR 217/81) 
is amended by this Regulation.

2   The following is added before section 2:

1.1   Notwithstanding anything in this Regulation, the monthly 
premium payable for basic health services and insured hospital 
services for January, 2009 and subsequent months is $0.00.

3   The Schedule is amended by striking out "Regular 
Premiums" under the heading "Basic Health Services and 
Insured Hospital Services" and substituting "Regular 
Premiums (ending December 31, 2008)".

4   This Regulation comes into force on January 1, 2009.


--------------------------------
Alberta Regulation 205/2008
Forests Act
TIMBER MANAGEMENT AMENDMENT REGULATION
Filed: December 3, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 576/2008) 
on December 3, 2008 pursuant to section 4 of the Forests Act. 
1   The Timber Management Regulation (AR 60/73) is 
amended by this Regulation.

2   Section 122.2 is repealed.

3   Section 141.6 is repealed and the following is 
substituted:
141.6(1)  Subject to section 141.61, the timber disposition holder 
shall submit to the Minister an establishment survey for an area to be 
reforested.
(2)  If the reforestation standards have not been completely met by 
the end of the year in which the establishment survey is required to 
be submitted, the timber disposition holder shall, before the end of 
the following year, re-treat the area by methods and operations that 
were approved in writing by the Minister under section 143.1 prior 
to the commencement of the re-treatment.
141.61(1)  A timber disposition holder who at any time after the 
reforestation referred to in section 141.1 knows that the area to be 
reforested is not likely to meet the applicable reforestation standards 
without additional treatment, may, instead of submitting an 
establishment survey referred to in section 141.6(1), submit a 
declaration to that effect along with a written commitment to carry 
out the reforestation operations as necessary to meet the applicable 
reforestation standards.
(2)  A written commitment under subsection (1) must be submitted 
for the approval of the Minister on or before the date on which an 
establishment survey for that area would have been required to be 
submitted.

4   Section 142(1) is repealed and the following is 
substituted:
142(1)  Where a timber disposition holder fails to completely meet 
the reforestation standards by the end of the year in which the survey 
under section 141.6(1) or 141.7, as the case may be, is required to be 
submitted, the Minister may, notwithstanding  section 141.6(2), 
order
	(a)	the suspension of some or all,
	(i)	of the operations that may be carried out under any 
timber disposition held by the timber disposition holder, 
and
	(ii)	of the reforestation operations referred to in the order,
		or
	(b)	if any of the operations have not yet commenced, that any or 
all of the operations not commence.

5   Section 142.2 is repealed.

6   Section 142.9 is amended by striking out "Survey Manual" 
and substituting "reforestation requirements".

7   Schedule 2 is repealed and the following is substituted:
Schedule 2  
 
Penalties for Contravention
Contravened  
Section of  
Regulation
 
 
Penalty
57(1)(b), 64, 68, 
72, 73, 105, 112, 
113, 114, 115.1, 
119, 120, 169
Not less than $50 nor more than $500 on the first 
offence.  Not less than $100 nor more than 
$1000 on any subsequent offence that occurs 
within 2 years of the payment of any penalty for 
a previous offence against the same section.
74, 160, 170
Not less than $10 nor more than $100 for each 
offence.
70, 109
Not less than $50 nor more than $100 for each 
offence.
71, 98, 100(1)(h), 
143.1, 143.2(2), 
144.3
Not less than $100 nor more than $500 for each 
offence.
57(1)(c), 99, 
100(1)(a), (b), (c), 
(d), (f), (g), (i) and 
(j), 101(3), 
141.3(2), 141.5, 
142(2), 142.8, 
143(2), 144.2, 
146, 164.1
Not less than $300 nor more than $5000 for each 
offence.
122.02, 122.03
Not less than $500 nor more than $5000 for each 
offence.
100(1)(e), 111, 
148, 153(2)
Where the Minister can readily estimate the 
volume of timber that has been wasted, he may 
assess a penalty of not less than twice and not 
more than 4 times the general rate of timber dues 
on the estimated volume.  Otherwise he may 
assess a penalty of not less than $100 nor more 
than $1000 for each offence.
116.1
Where there is unreported volume, not less than 
$1000 and not more than twice the amount of the 
general rate of timber dues payable on the 
unreported volume if that amount is greater than 
$1000.

Where there is not any unreported volume, not 
less than $1000 nor more than $5000.
117, 117.1
Not less than $200 nor more than $500 for each 
offence.
118(1)
Where the form is inaccurate or incomplete or 
the wrong form is produced, not less than $200 
nor more than $500 for each offence.

Where a form is not produced when demanded, 
not less than $1000 nor more than $5000 for 
each offence.
141.1(1), 141.6(2)
$2.50 per hectare for each month of 
contravention.
141.6(1), 141.61, 
141.7(1)
For each late submission of an acceptable survey 
or commitment, the Minister may assess a 
penalty in accordance with the following table 
computed on the Minister's estimate of the area 
involved and on the date when the acceptable 
submission of the survey or commitment is 
made:

Month following end of 
year in which acceptable 
submission of the survey 
or commitment was 
required by the applicable 
provision
Penalty to be assessed for each hectare 
that is the subject of the submission, 
where an acceptable submission of the 
survey or commitment is received in the 
relevant month listed in the first column
May
$0.02 for each day of the month until 
submission received.
June
$0.62 plus $0.05 for each day of the 
month until submission received.
July
$2.12 plus $0.07 for each day of the 
month until submission received.
August
$4.29 plus $0.10 for each day of the 
month until submission received.
September
$7.39 plus $0.10 for each day of the 
month until submission received.
October
$10.39 plus $0.10 for each day of the 
month until submission received.
November
$13.49 plus $0.10 for each day of the 
month until submission received.
December
$16.49 for submission received on any 
date in the month.
January 
February 
March 
April
$17.30 for submission received on any 
date in any of the months.

The penalties shown are repeated in each 
consecutive year, in addition to the 
penalties assessed in the previous years, 
until acceptable submission of the survey 
or commitment, as the case may be, is 
received, although other action may also 
be taken by the Minister as provided in 
the Act and the Regulation.


--------------------------------
Alberta Regulation 206/2008
Stray Animals Act
STRAY ANIMALS DELEGATION REGULATION
Filed: December 3, 2008
For information only:   Made by the Minister of Agriculture and Rural Development 
(M.O. 29/2008) on November 17, 2008 pursuant to section 27 of the Stray Animals 
Act. 
Table of Contents
	1	Definitions
	2	Delegation
	3	Inspection and audit
	4	Conditions
	5	Delegation agreement
	6	Permitted activities
	7	Licences
	8	Financial reports
	9	Handling of public auction proceeds
	10	Accounting
	11	Privacy
	12	Records
	13	Articles and members
	14	Notice to Minister
	15	Appeal of decision
	16	Appeal board and notice
	17	Appeal hearing
	18	Appeal secretary
	19	Mediation
	20	Limiting legal liability
	21	Repeal
	22	Expiry
	23	Coming into force
Definitions
1   In this Regulation,
	(a)	"Act" means the Stray Animals Act;
	(b)	"delegated power, duty or function" means a power, duty or 
function delegated under section 2; 
	(c)	"LIS" means Livestock Identification Services Ltd. 
incorporated under Part 9 of the Companies Act.
Delegation
2(1)  LIS is continued for the purposes of this Regulation as a 
delegated authority referred to in section 27 of the Act.
(2)  The powers, duties and functions of the Minister under the 
following sections of the Act are delegated to LIS:
	(a)	section 4;
	(b)	section 19;
	(c)	section 21; 
	(d)	section 22.
(3)  The powers, duties and functions of inspectors under the Act and 
the regulations are delegated to LIS.
Inspection and audit
3(1)  To determine if LIS is carrying out a delegated power, duty or 
function in a manner satisfactory to the Minister, the Minister may
	(a)	enter a premises in which LIS carries out a delegated power, 
duty or function during normal business hours, 
	(b)	audit LIS's operations, and
	(c)	inspect LIS's records. 
(2)  Without limiting section 12, the Minister may make copies of 
records related to a delegated power, duty or function during normal 
business hours.
(3)  The Minister may charge LIS for the reasonable costs incurred in 
carrying out an audit.
Conditions
4   A delegation of a power, duty or function is subject to the 
conditions set out in sections 5 to 14.
Delegation agreement
5   LIS shall comply with the terms and conditions of a delegation 
agreement with the Minister, if any, with respect to a delegation of a 
power, duty or function.
Permitted activities
6   LIS shall engage only in the following activities:
	(a)	a delegated power, duty or function under this Regulation or 
any other Act or regulation;
	(b)		livestock related reporting, education, assistance and audits;
	(c)	co-operation in enforcement of livestock related legislation;
	(d)	information services related to livestock tracing for product 
recall and disease control purposes;
	(e)	co-operation in implementation of livestock related quality 
assurance program certification;
	(f)	animal welfare services in co-operation with other agencies;
	(g)	livestock identification and directly related services; 
	(h)	research into and co-operation in animal ownership and age 
verification systems;
	(i)	any other activity as authorized by the Minister.
Licences
7   LIS shall maintain all municipal, provincial and federal licences 
required to carry out a delegated power, duty or function.
Financial reports
8(1)  LIS shall,
	(a)	at least 60 days before the beginning of each fiscal year, 
provide a report to the Minister with LIS's business plan and 
budget for the coming fiscal year,
	(b)	not more that 120 days after the end of each fiscal year, 
provide a report to the Minister with
	(i)	a summary of LIS's activities,
	(ii)	any rules made by LIS under section 28 of the Act, and
	(iii)	audited financial statements
		for the past fiscal year,
	(c)	at least 30 days before the beginning of each quarter of each 
fiscal year, provide a report to the Minister forecasting 
revenues and expenditures for the coming quarter,
		and
	(d)	not more than 30 days after the end of each month, provide a 
report to the Minister with a financial statement for all LIS's 
activities for that past month.
(2)  A report required under this section must be provided in a form 
and manner acceptable to the Minister.
(3)  An audited financial statement provided under subsection 
(1)(b)(iii) must include the remuneration and benefits paid or provided 
to
	(a)	each director of LIS, 
	(b)	the managers who reported directly to the board of directors 
of LIS, and
	(c)	the persons not referred to in clause (a) or (b) who were 
employed by or under contract with LIS.
(4)  Despite subsection (3)(a), the Minister may permit LIS to provide 
the remuneration and benefits for the directors of LIS on a group basis.
(5)  In this section, "remuneration and benefits" includes
	(a)	regular salary, bonuses, overtime, lump sum payments and 
honoraria,
	(b)	the employer's share of all employee benefits and 
contributions or payments made on behalf of employees, and
	(c)	the employer's share of the cost of any other benefits 
provided to employees.
(6)  The Minister is authorized to disclose information about an 
identifiable individual collected under this section.
Handling of public auction proceeds  
9(1)  The Stray Animals Proceeds Trust Fund is continued for the 
purposes of section 19(5) of the Act.
(2)  LIS shall maintain the Fund at a financial institution in an account 
that is used for the sole purpose of administering sections 19 and 21 of 
the Act.
(3)  LIS shall keep a separate accounting record for the Fund.
(4)  LIS may invest the money in the Fund in investments in which 
trustees are permitted to invest trust money under the Trustee Act.
(5)  Income and interest from the Fund accrue to and form part of the 
Fund.
Accounting
10   All money collected by LIS under a delegated power, duty or 
function must be recorded and accounted for in accordance with 
generally accepted accounting principles.
Privacy 
11(1)  LIS shall comply with the Freedom of Information and 
Protection of Privacy Act in the course of carrying out a delegated 
power, duty or function as if LIS were a public body.
(2)  LIS shall designate a person to be responsible for Freedom of 
Information and Protection of Privacy Act matters.
(3)  LIS shall immediately direct a request for access to information 
under the Freedom of Information and Protection of Privacy Act to the 
Minister.
(4)  LIS shall comply with the directions of the Minister with respect to 
matters under the Freedom of Information and Protection of Privacy 
Act.
(5)  LIS is authorized to collect, use and disclose information about an 
identifiable individual as required to carry out a delegated power, duty 
or function.
Records
12(1)  A record in the custody or control of LIS that is created or 
required to carry out a delegated power, duty or function is the 
property of the Crown in right of Alberta.
(2)  LIS shall comply with the Records Management Regulation 
(AR 224/2001) or an enactment which replaces the Records 
Management Regulation (AR 224/2001) with respect to all records  
referred to in subsection (1) as if LIS were a department.
(3)  LIS shall designate a person to be responsible for Records 
Management Regulation matters.
(4)  LIS shall comply with the directions of the Minister with respect to 
the handling of the records.
Articles and members
13   LIS shall not, without the prior written consent of the Minister,
	(a)	amend its Memorandum of Association or Articles of 
Association, or
	(b)	permit a person to become a member of LIS.
Notice to Minister
14   LIS shall
	(a)	notify the Minister within 15 days of a change to the 
directors of LIS, and
	(b)	at the same time the following are circulated to the directors 
or members of LIS, provide a copy to the Minister: 
	(i)	notice of LIS directors' meetings;
	(ii)	minutes of LIS directors' meetings;
	(iii)	resolutions of the directors and any committee of the 
directors;
	(iv)	background information and documents provided by 
LIS to its directors;
	(v)	notices or mailings provided by LIS to its members.
Appeal of decision
15(1)  A person affected by a decision made by LIS or an employee, 
agent, director or officer of LIS in the carrying out of a delegated 
power, duty or function may appeal that decision.
(2)  The appeal must be made in writing to LIS and within 30 days of 
being notified of the decision.
(3)  The appeal must contain
	(a)	a description of the decision being appealed,
	(b)	the grounds of appeal, and
	(c)	the name, address and telephone number of the appellant.
Appeal board and notice 
16(1)  If an appeal is received in accordance with section 15(2) and 
(3), LIS shall
	(a)	immediately notify the Minister of the appeal, and
	(b)	within 10 days of receiving the appeal, appoint an appeal 
board to hear the appeal.
(2)  An appeal board shall consist of
	(a)	a total of 3 members or, if there is an appeal where there is an 
amount in dispute that exceeds $20 000, 5 members,
	(b)	2 members or, in the circumstances referred to in clause (a), 
3 persons who are appointed to the Tribunal under section 72 
of the Livestock Identification and Commerce General 
Regulation, and
	(c)	persons nominated by the Minister.
(3)  A director, officer or employee of LIS must not be appointed to an 
appeal board.
Appeal hearing
17(1)  The appeal board shall hear the appeal within 30 days after the 
appeal board is appointed.
(2)  The appeal board shall serve a written decision, with reasons, on 
the parties within 15 days of the appeal.
(3)  An appeal may be heard on the basis of written submissions or an 
oral hearing at the discretion of the appeal board.
(4)  The appeal board may confirm, vary or reverse the decision 
appealed from.
(5)  The appeal board may establish rules and procedures for the 
conduct of an appeal.
Appeal secretary
18(1)  The Minister shall appoint a person to act as a secretary to the 
appeal board.
(2)  The secretary shall set and notify the parties to the appeal of
	(a)	the time, date and place of the appeal hearing, or
	(b)	the deadline for written submissions.
Mediation
19   LIS shall, if possible, try to resolve an appeal in good faith prior 
to the filing of an appeal or the commencement of the appeal hearing.
Limiting legal liability
20   No action in negligence lies against LIS or its employees, agents, 
directors or officers for anything done or not done in good faith while 
carrying out a delegated power, duty or function.
Repeal
21   The LIS Delegated Authority Regulation (AR 219/98) is repealed.
Expiry
22   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 June 30, 2014.
Coming into force
23   This Regulation comes into force on the coming into force of the 
Stray Animals Amendment Act, 2005.


Alberta Regulation 207/2008
Livestock Identification and Commerce Act
LIVESTOCK IDENTIFICATION AND COMMERCE 
DELEGATION REGULATION
Filed: December 3, 2008
For information only:   Made by the Minister of Agriculture and Rural Development 
(M.O. 30/2008) on November 17, 2008 pursuant to section 84 of the Livestock 
Identification and Commerce Act. 
Table of Contents
	1	Definitions
	2	Delegation
	3	Inspection and audit
	4	Conditions
	5	Delegation agreement
	6	Permitted activities
	7	Licences


	8	Financial reports
	9	Handling of unidentified livestock sale proceeds
	10	Fees
	11	Accounting
	12	Privacy
	13	Records
	14	Articles and members
	15	Notice to Minister
	16	Appeal of decision
	17	Appeal board and notice
	18	Appeal hearing
	19	Appeal secretary
	20	Mediation
	21	Limiting legal liability
	22	Repeal
	23	Expiry
	24	Coming into force
Definitions
1   In this Regulation,
	(a)	"Act" means the Livestock Identification and Commerce Act;
	(b)	"delegated power, duty or function" means a power, duty or 
function delegated under section 2; 
	(c)	"LICA General Regulation" means the Livestock 
Identification and Commerce General Regulation;
	(d)	"LIS" means Livestock Identification Services Ltd. 
incorporated under Part 9 of the Companies Act.
Delegation
2(1)  LIS is continued for the purposes of this Regulation as a 
delegated authority referred to in section 84 of the Act.
(2)  The powers, duties and functions of the Minister under the Act are 
delegated to LIS except for 
	(a)	the power to make regulations, and
	(b)	the powers, duties and functions in sections 66(6), 85 and 90.
(3)  The powers, duties and functions of the Minister under the LICA 
General Regulation are delegated to LIS except for
	(a)	sections 12 and 13,
	(b)	section 17(1)(c),
	(c)	section 33,
	(d)	section 47, 
	(e)	section 48(2)(f), and 
	(f)	sections 71 to 73.
(4)  The powers, duties and functions of inspectors under the Act and 
the LICA General Regulation are delegated to LIS.
Inspection and audit
3(1)  To determine if LIS is carrying out a delegated power, duty or 
function in a manner satisfactory to the Minister, the Minister may
	(a)	enter a premises in which LIS carries out a delegated power, 
duty or function during normal business hours, 
	(b)	audit LIS's operations, and 
	(c)	inspect LIS's records. 
(2)  Without limiting section 13, the Minister may make copies of 
records related to a delegated power, duty or function during normal 
business hours.
(3)  The Minister may charge LIS for the reasonable costs incurred in 
carrying out an audit.
Conditions
4   A delegation of a power, duty or function is subject to the 
conditions set out in sections 5 to 15.
Delegation agreement
5   LIS shall comply with the terms and conditions of a delegation 
agreement with the Minister, if any, with respect to a delegation of a 
power, duty or function.
Permitted activities
6   LIS shall engage only in the following activities: 
	(a)	a delegated power, duty or function under this Regulation or 
any other Act or regulation;
	(b)		livestock related reporting, education, assistance and audits;
	(c)	co-operation in enforcement of livestock related legislation;
	(d)	information services related to livestock tracing for product 
recall and disease control purposes;
	(e)	co-operation in implementation of livestock related quality 
assurance program certification;
	(f)	animal welfare services in co-operation with other agencies;
	(g)	livestock identification and directly related services;
	(h)	research into and co-operation in animal ownership and age 
verification systems;
	(i)	any other activity as authorized by the Minister.
Licences
7   LIS shall maintain all municipal, provincial and federal licences 
required to carry out a delegated power, duty or function. 
Financial reports
8(1)  LIS shall,
	(a)	at least 60 days before the beginning of each fiscal year, 
provide a report to the Minister with LIS's business plan and 
budget for the coming fiscal year, 
	(b)	not more that 120 days after the end of each fiscal year, 
provide a report to the Minister with
	(i)	a summary of LIS's activities,
	(ii)	any rules made by LIS under section 85 of the Act, and
	(iii)	audited financial statements
		for the past fiscal year,  
	(c)	at least 30 days before the beginning of each quarter of each 
fiscal year, provide a report to the Minister forecasting 
revenues and expenditures for the coming quarter,
		and
	(d)	not more than 30 days after the end of each month, provide a 
report to the Minister with a financial statement for all LIS's 
activities for that past month.
(2)  A report required under this section must be provided in a form 
and manner acceptable to the Minister. 
(3)  An audited financial statement provided under subsection 
(1)(b)(iii) must include the remuneration and benefits paid or provided 
to
	(a)	each director of LIS,
	(b)	the managers who reported directly to the board of directors 
of LIS, and
	(c)	the persons not referred to in clause (a) or (b) who were 
employed by or under contract with LIS.
(4)  Despite subsection (3)(a), the Minister may permit LIS to provide 
the remuneration and benefits for the directors of LIS on a group basis.  
(5)  In this section, "remuneration and benefits" includes
	(a)	regular salary, bonuses, overtime, lump sum payments and 
honoraria,
	(b)	the employer's share of all employee benefits and 
contributions or payments made on behalf of employees, and
	(c)	the employer's share of the cost of any other benefits 
provided to employees.
(6)  The Minister is authorized to disclose information about an 
identifiable individual collected under this section.
Handling of unidentified livestock sale proceeds 
9(1)  The sale proceeds received by LIS under section 34(3) or 35(2) 
of the Act shall be deposited at a financial institution in an account that 
is used for the sole purpose of administering sections 35 and 36 of the 
Act.
(2)  LIS shall keep a separate accounting record for the account.
(3)  Lis may pay interest to a person entitled to the sale proceeds if LIS 
considers it to be appropriate in the circumstances.
Fees
10   LIS may not collect a fee with respect to a delegated power, duty 
or function except as set out in the LICA General Regulation.
Accounting
11   All money collected by LIS under a delegated power, duty or 
function must be recorded and accounted for in accordance with 
generally accepted accounting principles.
Privacy
12(1)  LIS shall comply with the Freedom of Information and 
Protection of Privacy Act in the course of carrying out a delegated 
power, duty or function as if LIS were a public body.
(2)  LIS shall designate a person to be responsible for Freedom of 
Information and Protection of Privacy Act matters.
(3)  LIS shall immediately direct a request for access to information 
under the Freedom of Information and Protection of Privacy Act to the 
Minister.
(4)  LIS shall comply with the directions of the Minister with respect to 
matters under the Freedom of Information and Protection of Privacy 
Act.
(5)  LIS is authorized to collect, use and disclose information about an 
identifiable individual as required to carry out a delegated power, duty 
or function.
Records
13(1)  A record in the custody or control of LIS that is created or 
required to carry out a delegated power, duty or function is the 
property of the Crown in right of Alberta.
(2)  LIS shall comply with the Records Management Regulation 
(AR 224/2001) or an enactment which replaces the Records 
Management Regulation (AR 224/2001) with respect to all records  
referred to in subsection (1) as if LIS were a department.
(3)  LIS shall designate a person to be responsible for Records 
Management Regulation matters.
(4)  LIS shall comply with the directions of the Minister with respect to 
the handling of the records.
Articles and members
14   LIS shall not, without the prior written consent of the Minister,
	(a)	amend its Memorandum of Association or Articles of 
Association, or
	(b)	permit a person to become a member of LIS.
Notice to Minister
15   LIS shall
	(a)	notify the Minister within 15 days of a change to the 
directors of LIS, and
	(b)	at the same time the following are circulated to the directors 
or members of LIS, provide a copy to the Minister: 
	(i)	notice of LIS directors' meetings;
	(ii)	minutes of LIS directors' meetings;
	(iii)	resolutions of the directors and any committee of the 
directors;
	(iv)	background information and documents provided by 
LIS to its directors;
	(v)	notices or mailings provided by LIS to its members.
Appeal of decision
16(1)  A person affected by a decision made by LIS or an employee, 
agent, director or officer of LIS in the carrying out of a delegated 
power, duty or function may appeal that decision.
(2)  The appeal must be made in writing to LIS and within 30 days of 
being notified of the decision.
(3)  The appeal must contain
	(a)	a description of the decision being appealed,
	(b)	the grounds of appeal, and
	(c)	the name, address and telephone number of the appellant.
(4)  Subsection (1) does not apply to a decision made under section 
56(7) of the Act.
Appeal board and notice 
17(1)  If an appeal is received in accordance with section 16(2) and 
(3), LIS shall
	(a)	immediately notify the Minister of the appeal, and
	(b)	within 10 days of receiving the appeal, appoint an appeal 
board to hear the appeal.
(2)  An appeal board shall consist of 
	(a)	a total of 3 members or, in the following circumstances, 5 
members:
	(i)	an appeal of a decision to refuse to issue or to cancel or 
suspend a licence;
	(ii)	an appeal where the amount in dispute in the appeal 
exceeds $20 000, 
	(b)	2 members or, in the circumstances referred to in clause (a)(i) 
or (ii), 3 persons who are appointed to the Tribunal under 
section 72 of the LICA General Regulation, and
	(c)	persons nominated by the Minister.
(3)  A director, officer or employee of LIS must not be appointed to an 
appeal board.
Appeal hearing
18(1)  The appeal board shall hear the appeal within 30 days after the 
appeal board is appointed.
(2)  The appeal board shall serve a written decision, with reasons, on 
the parties within 15 days of the appeal.
(3)  An appeal may be heard on the basis of written submissions or an 
oral hearing at the discretion of the appeal board.
(4)  The appeal board may confirm, vary or reverse the decision 
appealed from.
(5)  The appeal board may establish rules and procedures for the 
conduct of an appeal.
Appeal secretary
19(1)  The Minister shall appoint a person to act as a secretary to the 
appeal board.
(2)  The secretary shall set and notify the parties to the appeal of
	(a)	the time, date and place of the appeal hearing, or
	(b)	the deadline for written submissions.
Mediation
20   LIS shall, if possible, try to resolve an appeal in good faith prior 
to the filing of an appeal or the commencement of the appeal hearing.
Limiting legal liability
21   No action in negligence lies against LIS or its employees, agents, 
directors or officers for anything done or not done in good faith while 
carrying out a delegated power, duty or function.
Repeal
22   The following regulations are repealed:
	(a)	LIS Delegated Authority Regulation (AR 218/98);
	(b)	LIS Delegated Authority Regulation (AR 220/98);
	(c)	LIS Delegated Authority Regulation (AR 221/98).
Expiry
23   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 June 30, 2014.
Coming into force
24   This Regulation comes into force on the coming into force of the 
Livestock Identification and Commerce Act.


--------------------------------
Alberta Regulation 208/2008
Livestock Identification and Commerce Act
LIVESTOCK IDENTIFICATION AND COMMERCE 
GENERAL REGULATION
Filed: December 3, 2008
For information only:   Made by the Minister of Agriculture and Rural Development 
(M.O. 31/2008) on November 17, 2008 pursuant to sections 13, 43, 65, 76 and 92 of 
the Livestock Identification and Commerce Act. 
Table of Contents
	1	Interpretation
Part 1 
Application of Act
	2	Livestock brands
	3	Transactions, transportation, inspection
	4	Levies, assurance funds, security
	5	Out of province livestock - livestock manifest, livestock permit
	6	Security
	7	Inspection fee
Part 2 
Registration of Livestock Brands and Honorary Brands
	8	Application
	9	Registry
Part 3 
Transporting or Driving Livestock
Division 1 
Inspections
	10	Inspection required
	11	Notice of inspection
	12	Exception - abattoir, feedlot
	13	Waiver - entering inspection site
	14	Waiver - issuing permit
	15	Duty to provide inspection facilities
Division 2 
Permits
	16	Livestock permit required
	17	Livestock permit exemption
	18	Application
	19	Issuing
	20	Types of permits
	21	Completion, distribution, handling
	22	Terms and conditions
	23	Expiry
	24	Cancellation
Division 3 
Livestock Manifests
	25	Completion, distribution, handling
	26	Signing restrictions
	27	Use as livestock security interest declaration
Division 4 
Transportation
	28	Transporting or driving livestock - one owner
	29	Delivery destination
	30	Adding person or destination - livestock permit
	31	Amending person or destination - livestock permit
	32	Amending person or destination - livestock manifest
Part 4 
Sale of Livestock
Division 1 
Sale Documents and Requirements
	33	Bill of sale, invoice, settlement statement
	34	Livestock security interest declaration
	35	Disclosure of status by owner or dealer
	36	Document retention
Division 2 
Levies
	37	Payment of levy
	38	Waiver of eligibility
	39	Refund of levy
Division 3 
Recovery for Non-payment
	40	Livestock Assurance Fund claims
	41	Livestock Dealers' Assurance Fund claims
	42	Terms and conditions
	43	Maximum recovery
	44	Eligibility - security
	45	Eligibility - Livestock Assurance Fund
	46	Eligibility - Livestock Dealers' Assurance Fund
	47	Eligibility - security or assurance funds
Part 5 
Livestock Dealers and Livestock Dealer's Agents
	48	Dealing in livestock or livestock products
Division 1 
Licensing
	49	Application
	50	Grounds of refusal, suspension, cancellation
	51	Automatic refusal, suspension, cancellation
	52	Automatic reinstatement
	53	Notice of refusal, suspension, cancellation
	54	Terms and conditions
	55	Expiry
	56	Determination of security
Division 2 
Obligations and Duties
Relations with Public
	57	Good faith
	58	Representations
	59	Accounting for dealings
Relations Between Livestock Dealers and  
Livestock Dealer's Agents
	60	Permitted agents
	61	Termination of Agency
	62	Consent for dual licensing
Dealings and Transactions
	63	Deduct and remit levy
	64	Dealing in livestock dealer's name
	65	Sale or supply prohibited
	66	Record keeping and retention
	67	Trust accounts
	68	Livestock weight
	69	Required sale transaction documentation
Part 6 
Miscellaneous
Division 1 
Establishment and Operation of Tribunal
	70	Tribunal
	71	Designated associations
	72	Requirement to appoint
	73	Revocation and reinstatement of authorization
	74	Chair
	75	Quorum
Division 2 
Fees
	76	Registry fees
	77	Inspection fees
	78	Inspection fee reduction - grazing
	79	Special permit fee
	80	Collection of inspection fees
	81	Licence fees
Division 3 
Information and Offences
	82	Collection of third party information
	83	Offences
Division 4 
Transition of Matters to Act
	84	Interpretation
	85	Brand registry
	86	Licence
	87	Inspectors
	88	Withheld sale proceeds
	89	Livestock manifest
	90	Livestock permit
	91	Rules
	92	Assurance Funds
	93	Appeal to Court of Appeal
	94	Document retention
Division 5 
Other
	95	Repeals
	96	Expiry
	97	Coming into force 
 
Schedules
Interpretation
1(1)  In this Regulation,
	(a)	"Act" means the Livestock Identification and Commerce Act;
	(b)	"country sale site" means a place
	(i)	where livestock is offered for sale to more than one 
prospective purchaser, and
	(ii)	that is not a livestock assembling station, livestock 
market, feedlot or abattoir;
	(c)	"feeder" means a feeder association member acting on behalf 
of a feeder association pursuant to a feeder agreement under 
the Feeder Associations Guarantee Regulation (AR 75/98);
	(d)	"feeder association" means a feeder association as defined in 
the Feeder Associations Guarantee Act;
	(e)	"feedlot" means a place, other than a seasonal feeding and 
bedding site, that is operated for the purpose of feeding 
livestock by a means other than grazing; 
	(f)	"livestock assembling station" means a place that is operated 
for the purpose of assembling, weighing or sorting livestock;
	(g)	"livestock market" means a place operated for the purpose of 
selling livestock;
	(h)	"sheep" means an animal of genus Ovis;
	(i)	"special permit" means a horse permit, pedigree cattle permit 
or a rodeo and exhibition permit;
	(j)	"swine" means an animal of the species Sus scrofa;
	(k)	"unlicensed person" means a person who is not licensed as a 
livestock dealer or livestock dealer's agent under the Act.
(2)  In the Act,
	(a)	"assured livestock" means cattle or horses that have been 
	(i)	supplied or sold by a participant, and
	(ii)	if the participant is not a livestock dealer, present in 
Alberta as defined in subsection (7) for 30 
consecutive days immediately prior to the supply or 
sale;
	(b)	"business day" means any day other than Saturday or, as 
defined in the Interpretation Act, a holiday;
	(c)	"livestock manifest" means a manifest completed in the form 
set out in Schedule 2;
	(d)	"livestock permit" means a livestock permit issued in the 
form required by the Minister;
	(e)	"participant" means, with respect to a specific supply or sale 
transaction, a person
	(i)	who, at the time of the supply or sale,
	(A)	is an Alberta resident, and
	(B)	is not an associated person of the person to 
whom the assured livestock is supplied or 
sold,
			and
	(ii)	who supplies or sells assured livestock within the 
circumstances described in one of the following 
paragraphs:
	(A)	a supply or sale in Alberta to a livestock dealer; 
	(B)	a sale in Alberta by a licensed livestock dealer to 
an unlicensed person;
	(C)	a supply in Dawson Creek, British Columbia or 
Lloydminster, Saskatchewan to a livestock market 
that is approved by the Minister;
	(f)	"permit" includes a rodeo and exhibition permit;
	(g)	"settlement statement" means a form of sales documentation 
that includes the information set out in section 33.
(3)  For the purposes of section 1(j) of the Act, the following are 
designated as financial institutions: 
	(a) 	the Agriculture Financial Services Corporation established 
under the Agriculture Financial Services Act; 
	(b)	the Farm Credit Corporation established under the Farm 
Credit Canada Act (Canada).
(4)  For the purposes of section 1(p) of the Act, the following are 
designated as inspection sites:
	(a)	a country sale site;
	(b)	a livestock assembling station;
	(c)	a livestock market;
	(d)	a feedlot;
	(e)	an abattoir.
(5)  For the purposes of section 1(s) of the Act, sheep and swine are 
designated as livestock.
(6)  In section 16 of the Act and section 3(3) of this Regulation,
	(a)	"pay" means
	(i)	to deposit the purchase funds electronically,
	(ii)	to send the purchase funds by postmarked mail,
	(iii)	to deliver the purchase funds,
	(iv)	to make the purchase funds available for pickup, or
	(v)	if there is no livestock security interest in the livestock 
or the dam of the livestock being sold, to sign a 
financing agreement with the owner of the livestock 
granting the owner a purchase-money security interest;
	(b)	"possession" means the day on which or, if the sale of the 
livestock is subject to a condition and the livestock has not 
been rejected on the basis of that condition, 2 business days 
after the day on which
	(i)	the livestock is delivered to the purchaser or the 
purchaser's agent, or
	(ii)	the purchaser or the purchaser's agent may take delivery 
of the livestock;
	(c)	"price discovery" means the day on which the person who is 
required to pay the sale proceeds knows or ought to know the 
amount of the sale proceeds payable.
(7)  In subsection (2)(a), "present in Alberta" includes the presence of 
the assured livestock at and the transportation or driving of the assured 
livestock directly to or from a location outside of Alberta that is 
approved by the Minister for the purposes of section 17(1)(b) or 78.
(8)  In subsection (2)(e), "Alberta resident" means
	(a)	a person whose ordinary place of residence is in Alberta,
	(b)	a corporation registered under the Business Corporations Act, 
or
	(c)	a partnership where a majority of the partners are described 
in clause (a) or (b).
Part 1 
Application of Act
Livestock brands
2(1)  Part 1 of the Act does not apply to sheep or swine.
(2)  Part 2 of this Regulation does not apply to sheep or swine.
Transactions, transportation, inspection
3(1)  The following provisions of Part 2 of the Act do not apply to 
sheep:
	(a)	sections 19(1)(b) and (c) and (4) and 23 to 39;
	(b)	sections 44 to 46 to the extent they relate to a section referred 
to in clause (a).
(2)  Part 2 of the Act does not apply to swine except for  
	(a)	section 17, and
	(b)	sections 44 to 46 to the extent they relate to section 17.
(3)  Because swine are exempted from section 16 of the Act, section 55 
of the Act applies to swine subject to the following modification and 
addition: 
	(a)	non-payment occurs when payment is not received as agreed 
to by the parties to the supply or sale agreement;
	(b)	the notification must be made no later than 30 days from the 
date of price discovery or possession, whichever occurs later.
(4)  Part 3 of this Regulation, except for sections 25 to 29 and 32, does 
not apply to sheep.
(5)  Part 3 and Division 1 of Part 4 of this Regulation do not apply to 
swine.
Levies, assurance funds, security
4(1)  Part 4 of the Act does not apply to sheep or swine.
(2)  Divisions 2 and 3 of Part 4 of this Regulation do not apply to 
sheep or swine except for sections 44 and 47.
Out of province livestock - livestock manifest, livestock permit
5(1)  Section 19(1)(c) of the Act and section 16 of this Regulation do 
not apply to a person who is transporting or driving livestock into or 
through Alberta from an originating point outside of Alberta.
(2)  Section 19(1)(a) of the Act does not apply to a person referred to 
in subsection (1) if 
	(a)	the originating jurisdiction requires that the livestock be 
accompanied by documentation to be transported or driven 
out of the jurisdiction to the livestock's destination, and
	(b)	the livestock is accompanied by the documentation.
(3)  An exemption under subsection (1) or (2) expires when the 
livestock
	(a)	stops in Alberta for a purpose other than rest, or
	(b)	is required to be inspected under the Act.
(4)  If the livestock stops in Alberta for a purpose other than rest, the 
point at which the livestock stops is considered to be its originating 
point for the purpose of section 16(a).
(5)  The documentation referred to in subsection (2)(b) is required to 
be completed, distributed and retained in the same manner as,
	(a)	if the documentation was issued as a result of an inspection, a 
livestock permit, or
	(b)	if clause (a) does not apply, a livestock manifest.
(6)  A person required to provide a copy of the documentation referred 
to in subsection (2)(b) shall ensure that there are sufficient copies 
available.
(7)  A person required to complete the documentation referred to in 
subsection (2)(b) shall make whatever modifications or attachments 
are necessary to include the information that would be included in a 
livestock manifest or livestock permit, whichever applies.
Security
6   The requirement under section 53 of the Act to provide security 
does not apply to a livestock dealer if the livestock dealer and the 
livestock dealer's agents do not deal in livestock or livestock products 
as referred to in section 48(1)(a).
Inspection fee
7   The requirement under section 27 of the Act to pay an inspection 
fee does not apply if the livestock is inspected as a result of a vehicle 
search under section 40 of the Act.
Part 2 
Registration of Livestock Brands and 
Honorary Brands
Application
8(1)  The application form to register a brand or honorary brand is set 
out in Schedule 1.
(2)  An application to change or correct a brand or honorary brand 
registration, including a change to reflect a surrender or transfer of the 
brand or honorary brand, must be made in the form and manner 
required by the Minister.
Registry
9   The following information must be entered and maintained in the 
registry:
	(a)	the name of the brand or honorary brand owner;
	(b)	the name of the municipality in which the brand or honorary 
brand owner resides;
	(c)	a description of the brand or honorary brand;
	(d)	the location of the brand or honorary brand on the livestock;
	(e)	the type of livestock for which the brand or honorary brand is 
registered;
	(f)	in the case of an honorary brand, the purpose of the honorary 
brand.
Part 3 
Transporting or Driving Livestock
Division 1 
Inspections
Inspection required
10(1)  Livestock must be inspected
	(a)	subject to sections 12 and 13, if the livestock enters an 
inspection site,
	(b)	before the livestock is offered for sale or sold at a livestock 
market if the livestock has remained in the  livestock market 
for more than 48 hours since the livestock was last inspected 
at the livestock market,
	(c)	subject to section 14, to issue a permit,
	(d)	if an inspector believes the livestock may have improperly 
entered an abattoir or a feedlot without inspection under 
section 12, or
	(e)	if an inspector believes the livestock may be stolen.
(2)  Livestock present at a country sale site before and during the 
country sale must be considered to have entered the country sale site.
Notice of inspection 
11(1)  The operator of an inspection site shall notify an inspector of 
the entry of livestock into an inspection site,
	(a)		in the case of a feedlot, within 24 hours of the livestock 
entering the feedlot, 
	(b)		in the case of a livestock assembling station, livestock market 
or an abattoir, 2 business days before the proposed entry of 
the livestock into the inspection site, or
	(c)	in the case of a country sale site, 5 business days before the 
first day of the country sale. 
(2)  A person requesting a permit, excluding a livestock permit 
required to transport or drive livestock from an inspection site, or a 
voluntary inspection shall notify an inspector 2 business days before 
the permit or inspection is needed.
(3)  A person requesting a livestock permit to transport or drive 
livestock from an inspection site shall notify an inspector,
	(a)	if the livestock has been inspected at the inspection site 
within the previous 48 hours, as required by the inspector in 
the circumstances, or
	(b)	if clause (a) does not apply, 24 hours before the livestock 
permit is needed.
(4)  An inspector may consent to a different length of notice subject to 
any terms and conditions the inspector may require.
(5)  The notice must be given in the form and manner required by the 
Minister.
Exception - abattoir, feedlot
12   Section 10(1)(a) does not apply to livestock entering an abattoir or 
a feedlot
	(a)	if the livestock is transported or driven under a livestock 
permit directly to the abattoir or feedlot from the location in 
Alberta where the livestock permit was issued, or
	(b)	in the case of livestock that is transported or driven into  
Alberta from out of province, if the livestock is transported 
or driven directly to the abattoir or feedlot
	(i)	from a location
	(A)	where the livestock was inspected, and
	(B)	in a jurisdiction approved by the Minister,
			and
	(ii)	the livestock is transported or driven under the 
documentation
	(A)	required in that jurisdiction to transport or drive 
the livestock to the abattoir or feedlot, and
	(B)	that is issued as a result of the inspection.
Waiver - entering inspection site
13(1)  An inspector may waive an inspection of livestock required on 
entering an inspection site if
	(a)	the livestock enters the inspection site for the purpose of rest,
	(b)	the inspection site is a country sale site, or
	(c)	the inspection site is a feedlot and
	(i)	the livestock is transported or driven directly to the 
feedlot from an out of province location in a jurisdiction 
that has not been approved by the Minister,
	(ii)	the livestock is transported or driven directly to the 
feedlot from another feedlot in Alberta where the 
livestock
	(A)	was inspected on entry, or
	(B)	entered without inspection under section 12,
			or
	(iii)	the livestock is re-entering the feedlot from grazing.
(2)  An inspector may revoke a waiver given under this section before 
the livestock is transported or driven from the inspection site.
Waiver - issuing permit
14(1)  An inspector may waive an inspection of livestock required to 
issue
	(a)	a livestock permit if
	(i)	the livestock permit is required to transport or drive 
livestock from an inspection site, and
	(ii)	the inspection site is not an abattoir,
		or
	(b)	a special permit if a special permit was issued for the 
livestock in the previous calendar year.
(2)  An inspector may revoke a waiver given under this section before 
the permit is issued.
Duty to provide inspection facilities
15(1)  For greater certainty, the facilities that shall be provided by an 
owner or operator of a place where an inspection is carried out under 
section 25 of the Act may include office space, buildings, alleys, pens, 
chutes and gates.
(2)  An owner or operator of a place where an inspection is carried out 
in a building or where sunlight is inadequate shall provide artificial 
light.
(3)  The facilities provided for carrying out inspections must be 
adequate and appropriate for the purpose of performing the inspection 
to be carried out.
(4)  On request, an owner or operator of an inspection site, excluding a 
country sale site, shall lease office space satisfactory to the Minister at 
a rate acceptable to the Minister.
Division 2 
Permits
Livestock permit required
16   A livestock permit is required to transport or drive livestock from
	(a)	an originating point in Alberta to a destination outside of 
Alberta, or
	(b)	an inspection site to a destination in Alberta.
Livestock permit exemption
17(1)  Section 16(a) does not apply if the livestock is transported or 
driven
	(a)	under a special permit,
	(b)	directly to a delivery destination
	(i)	that is owned or leased by the owner of the livestock,
	(ii)	that is contiguous to or near the Alberta border, and
	(iii)	that is approved by the Minister as part of the owner's 
operation in Alberta, 
		or
	(c)	directly to a delivery destination
	(i)	that is approved by the Minister, and
	(ii)	where the livestock will be inspected by that 
jurisdiction.
(2)  Section 16(b) does not apply if the livestock is transported or 
driven from
	(a)	a feedlot,
	(b)	a country sale site if the livestock was not inspected while at 
the country sale site, or
	(c)	an inspection site if the livestock entered and remained at the 
inspection site for the purpose of rest.
Application
18   A person who requests a permit shall
	(a)	make the request in the form and manner required by the 
Minister, and
	(b)	notify an inspector in accordance with section 11.
Issuing
19(1)  An inspector may issue a permit if
	(a)	a person requests the permit in accordance with section 18,
	(b)	subject to section 14, the inspector inspects the livestock, and
	(c)	the inspector is satisfied that the person in possession of the 
livestock is 
	(i)	the owner of the livestock or the owner's agent, or
	(ii)	otherwise lawfully entitled to be in possession of the 
livestock.
(2)  Subsection (1)(c)(ii) does not apply to a special permit.
(3)  The permit shall
	(a)	be issued in the form and manner required by the Minister, 
and
	(b)	include a unique numerical code assigned by the Minister.
Types of permits
20(1)  An inspector may issue 
	(a)	a livestock permit with respect to livestock,
	(b)	a horse permit or a lifetime horse permit with respect to a 
horse,
	(c)	a pedigree cattle permit with respect to pedigree cattle, or
	(d)	a rodeo and exhibition permit with respect to rodeo or 
exhibition livestock.
(2)  A lifetime horse permit may only be issued with respect to one 
horse per lifetime horse permit.
Completion, distribution, handling
21(1)  If a livestock permit is required by the Act, the livestock permit 
must be completed, distributed, retained and handled in accordance 
with this section.
(2)  The person who is issued the livestock permit shall
	(a)	give 2 copies to the person transporting or driving the 
livestock,
	(b)	retain one copy, and
	(c)	if required under section 30 or 31(2), complete or amend Part 
B.
(3)  The person transporting or driving the livestock shall
	(a)	if required under section 30 or 31(2), complete or amend Part 
B,
	(b)		ensure that at least one copy accompanies the livestock to the 
livestock's destination,
	(c)	complete Part E,
	(d)	provide one copy to the person receiving the livestock, and
	(e)	retain one copy.
(4)  The person receiving the livestock shall
	(a)	complete Part F, and
	(b)	retain one copy.
(5)  A person required to retain a livestock permit under this section 
shall
	(a)	retain a copy for a period of 10 years, and
	(b)	provide a copy to the Minister upon request.
Terms and conditions
22(1)  A person who transports or drives livestock under a permit shall 
comply with the terms and conditions of the permit.
(2)  A livestock permit is subject to the following terms and 
conditions:
	(a)	the livestock shall remain in the possession and control of the 
person to whom the livestock permit is issued or that 
person's agent;
	(b)	the livestock shall be transported or driven together to the 
livestock's destination;
	(c)	any other terms or conditions the Minister considers 
appropriate.
(3)  A special permit is subject to the following terms and conditions:
	(a)	the permit shall not be used to transport or drive livestock for 
sale or slaughter;
	(b)	any other terms or conditions the Minister considers 
appropriate.
Expiry
23   A permit expires on the earliest of the following:
	(a)	in the case of a livestock permit,
	(i)	7 days from the date of issue,
	(ii)	when the livestock is delivered to the livestock's 
destination, or
	(iii)	when an inspection is required under section 10;
	(b)	in the case of a special permit,
	(i)	when there is a change of ownership in the livestock, or
	(ii)	except in the case of a lifetime horse permit, on 
December 31 of the year in which the permit is issued.
Cancellation
24(1)  An inspector shall cancel a permit if the inspector is satisfied 
that the permit was improperly issued.
(2)  An inspector may cancel a permit if
	(a)	the inspector is satisfied that a term or condition of the permit 
has been breached,
	(b)	section 20 of the Act or section 28 of this Regulation has not 
been complied with, or
	(c)	in the case of a livestock permit, section 21, 30 or 31 has not 
been complied with.
(3)  If a permit is cancelled, the inspector
	(a)	shall advise the permit holder of its cancellation, and
	(b)	may require the return of the permit.
(4)  Nothing in this section affects the rights of a person who has acted 
in good faith and in reliance on the permit.
Division 3 
Livestock Manifests
Completion, distribution, handling
25(1)  If a livestock manifest is required by the Act, the livestock 
manifest set out in Schedule 2 must
	(a)	be completed, distributed, retained and handled in 
accordance with this section, and
	(b)	include a unique numerical code assigned by the Minister.
(2)  The owner of the livestock or the owner's agent shall
	(a)	subject to section 26, complete Parts A, B and C,
	(b)	provide the original plus 3 copies to the person transporting 
or driving the livestock,
	(c)	retain one copy, and
	(d)	if required under section 32(2), amend Part B.
(3)  The person transporting or driving the livestock shall
	(a)	ensure that the original plus 3 copies accompany the 
livestock to the livestock's destination,
	(b)	complete Part E,
	(c)	if required under section 32(2), amend Part B,
	(d)	provide the original plus 2 copies to the person receiving the 
livestock or that person's agent, and
	(e)	retain one copy.
(4)  The person receiving the livestock shall
	(a)	complete Part G,
	(b)	if an inspection is not required upon delivery of the livestock, 
retain the original plus one copy, and
	(c)	if an inspection is required upon delivery of the livestock,
	(i)	provide the original plus 2 copies to an inspector, and
	(ii)	retain the copy returned to the person by the inspector.
(5)  If an inspection is required upon delivery of the livestock, the 
inspector shall
	(a)	complete Part D,
	(b)	return one copy to the person who received the livestock, and
	(c)	retain the original and one copy.
(6)  A person required to retain a livestock manifest under this section 
shall
	(a)	retain a copy for a period of 10 years, and
	(b)	provide a copy to the Minister upon request.
(7)  In this section, "owner" includes a feeder.
Signing restrictions
26(1)  If the livestock is being transported or driven for sale and the 
livestock manifest does not direct payment solely to the owner of the 
livestock, only the owner may complete Part C.
(2)  Despite subsection (1), a livestock dealer or livestock dealer's 
agent acting on behalf of the owner or the livestock dealer's agent may 
complete Part C if the livestock manifest directs payment to the 
livestock dealer.
Use as livestock security interest declaration
27   The owner of the livestock may complete Part F of the livestock 
manifest for the purpose of providing a livestock security interest 
declaration with respect to the livestock being transported or driven 
under the livestock manifest.
Division 4 
Transportation
Transporting or driving livestock - one owner
28   If livestock of one owner is transported or driven together under 
more than one document, the person transporting or driving the 
livestock shall ensure that the livestock is distinctively identified so 
that the livestock transported or driven under each document can be 
readily distinguished.
Delivery destination
29(1)  A person who transports or drives livestock under a livestock 
manifest or livestock permit shall deliver the livestock to the person, 
including that person's agent, and destination indicated in the 
document.
(2)  The person or destination may be added or amended in accordance 
with sections 30 to 32.
Adding person or destination - livestock permit
30   If an inspector issues a livestock permit without indicating the 
person or destination for the delivery of the livestock in Part B,
	(a)	the person who was issued the livestock permit shall provide 
the information required to complete Part B
	(i)	to the person transporting or driving the livestock as 
soon as reasonably possible after the livestock permit is 
issued, and
	(ii)	to the Minister no later than 2 business days from the 
day the livestock permit is issued,
		and
	(b)	the person transporting or driving the livestock and the 
person who was issued the livestock permit shall include the 
information in Part B on all the copies of the livestock permit 
in their possession
	(i)	as soon as the information is known, and 
	(ii)	before the livestock is transported or driven.
Amending person or destination - livestock permit
31(1)  A person who is issued a livestock permit may change the 
person or destination for the delivery of the livestock under a livestock 
permit.
(2)  If the person who was issued the livestock permit changes the 
person or destination for the delivery of the livestock,
	(a)	the person transporting or driving the livestock and the 
person who was issued the livestock permit shall amend this 
information in Part B on all copies of the livestock permit in 
their possession as soon as the information is known, and
	(b)	the person who was issued the livestock permit shall provide 
the Minister with the updated information within 2 business 
days of the amendment.
Amending person or destination - livestock manifest
32(1)  The owner of livestock or the owner's agent may change the 
person or destination for the delivery of the livestock under a livestock 
manifest.
(2)  If the owner of the livestock or the owner's agent changes the 
person or destination for the delivery of the livestock, the person 
transporting or driving the livestock and the owner of the livestock or 
the owner's agent shall amend this information in Part B on all copies 
of the livestock manifest in their possession as soon as the information 
is known.
Part 4 
Sale of Livestock
Division 1 
Sale Documents and Requirements
Bill of sale, invoice, settlement statement
33(1)  For the purpose of section 14 of the Act, the documentation for 
a sale of livestock shall identify
	(a)	the date of the sale transaction,
	(b)	the names and addresses of the owner of the livestock and the 
purchaser,
	(c)	a description of the livestock that includes the kind, colour 
and number of head of livestock sold,
	(d)	a description and the location of any brands on the livestock,
	(e)	if the livestock is sold by weight, the weight of the livestock 
sold,
	(f)	the purchase price, the deductions from the purchase price 
and the sale proceeds, and
	(g)	any other information required by the Minister.
(2)  For the purpose of section 14 of the Act, a settlement statement 
shall also identify
	(a)	the name and address of the person issuing the settlement 
statement,
	(b)	any unique codes on the documentation under which the 
livestock is transported or driven, and
	(c)	if the livestock was transported or driven into Alberta for the 
sale, the jurisdiction from where the livestock originated.
(3)  Despite subsection (1)(b), if a livestock dealer or livestock dealer's 
agent issues a settlement statement, the settlement statement may 
solely identify
	(a)	the owner, on the purchaser's copy, and
	(b)	the purchaser, on the owner's copy
by a unique code assigned by the livestock dealer or livestock dealer's 
agent.
Livestock security interest declaration
34(1)  An owner of livestock shall provide a declaration required 
under section 15 of the Act before or at the time the livestock is 
supplied or offered for sale.
(2)  The declaration must also
	(a)	be dated,
	(b)	be signed by the owner of the livestock, and
	(c)	identify the address of each holder of a livestock security 
interest in the livestock or the dam of the livestock.
(3)  For the purposes of section 15 of the Act and this section, "owner" 
includes a feeder.
Disclosure of status by owner or dealer
35   A person who sells livestock or deals in livestock shall make a 
disclosure under section 14.1 of the Act
	(a)	in writing,
	(b)	to a person from whom the sale proceeds will be received, 
and
	(c)	before or at the time the livestock is supplied or offered for 
sale.
Document retention
36   A person who makes or receives a document referred to in section 
33 or 34 shall
	(a)	retain a copy of that document for a period of 10 years, and
	(b)	provide a copy to the Minister upon request.
Division 2 
Levies
Payment of levy
37(1)  A participant shall pay the levy to the Tribunal within the time 
and in the manner required by the Tribunal.
(2)  Subsection (1) does not apply if the levy was deducted from the 
sale proceeds under section 63.
(3)  The Tribunal shall deposit the levy of a participant who sells or 
supplies assured livestock to a livestock dealer into the Livestock 
Assurance Fund.
(4)  The Tribunal shall deposit the levy of a participant who is a 
livestock dealer and who sells assured livestock to an unlicensed 
person into the Livestock Dealers' Assurance Fund.
Waiver of eligibility
38(1)  A participant may
	(a)	waive the ability to claim against an assurance fund, and
	(b)	revoke the waiver given under clause (a).
(2)  The waiver or revocation of waiver
	(a)	must be made to the Tribunal in writing and in the form and 
manner required by the Tribunal, and
	(b)	is effective as of January 1 of the year following the year in 
which the waiver or revocation of the waiver is made.
(3)  The participant is ineligible to claim against an assurance fund 
while the waiver is in effect.
Refund of levy
39(1)  A participant may apply to the Tribunal for a refund of levies 
paid by the participant while the participant is ineligible to claim 
against the assurance fund under section 38.
(2)  The application must be made to the Tribunal in the form and 
manner required by the Tribunal.
(3)  The Tribunal shall refund a levy from an assurance fund if
	(a)	the participant applies in accordance with subsection (1),
	(b)	for refunds of less than $5000, the chair of the Tribunal has 
determined that the refund is payable,
	(c)	for refunds of $5000 or more, the Tribunal has determined 
that the refund is payable, and
	(d)	the request for the refund was received by the Tribunal no 
later than March 31 of the year following the year in which 
the levy was paid.
(4)  An eligible refund must be paid within 90 days of the application.
Division 3 
Recovery for Non-payment
Livestock Assurance Fund claims
40(1)  The Tribunal shall treat a notification under section 58 of the 
Act or a successful appeal under section 59 of the Act as a claim 
against the Livestock Assurance Fund.
(2)  If an appeal under section 59 of the Act may affect the amount a 
participant may receive from the Livestock Assurance Fund, the 
Tribunal may
	(a)	delay determining the participant's claim, and
	(b)	provide an interim payment to the participant from the 
Livestock Assurance Fund.
(3)  The Tribunal may at any time require a participant to provide 
documentation or any other information as required by the Tribunal in 
support of the claim.
(4)  A participant who makes a claim under subsection (1) must meet 
the conditions and eligibility requirements set out in sections 45 and 47 
in order to be entitled to receive a payment from the Livestock 
Assurance Fund.
(5)  On determining the claim, the Tribunal shall serve the participant 
with a copy of the Tribunal's decision, with reasons.
Livestock Dealers' Assurance Fund claims
41(1)  For the purposes of this section, a default occurs in respect of a 
sale of assured livestock to an unlicensed person when
	(a)	the unlicensed person fails to pay the livestock dealer the sale 
proceeds in respect of the assured livestock as required by the 
Act, unless the main reason for the failure to pay is a contract 
dispute between the unlicensed person and the livestock 
dealer respecting the sale of the assured livestock or the 
obligation to pay for the assured livestock, or
	(b)	the unlicensed person fails to pay the livestock dealer the sale 
proceeds in respect of the assured livestock as required by the 
Act, the livestock dealer obtains a judgment against the 
unlicensed person based on the unlicensed person's failure to 
pay and the judgment is unsatisfied for 20 or more days after 
the judgment becomes final.
(2)  If a livestock dealer wishes to claim against the Livestock Dealers' 
Assurance Fund because an unlicensed person has committed a default 
in a sale of assured livestock to the unlicensed person, the livestock 
dealer shall
	(a)	notify the Tribunal of the non-payment as soon as is 
reasonably possible after the livestock dealer knows or ought 
to know of the non-payment, and
	(b)	provide documentation or any other information as required 
by the Tribunal in support of the claim.
(3)  If the Tribunal receives a notice under subsection (2), the Tribunal 
may by notice in writing require the unlicensed person identified in the 
notice to provide the Tribunal with any information specified by the 
Tribunal relating to the sale transaction.
(4)  An unlicensed person who receives a notice under subsection (3) 
shall comply with it.
(5)  If the Tribunal is satisfied that an unlicensed person has committed 
a default with respect to a sale transaction, the Tribunal shall publish a 
notice requiring any livestock dealer who has a claim against the 
unlicensed person arising from a default in respect of a sale of assured 
livestock to that unlicensed person to make a claim to the Tribunal by 
the date specified in the notice.
(6)  The Tribunal may
	(a)	publish the notice referred to in subsection (5) in any form 
and manner that the Tribunal considers appropriate, and
	(b)	take any other steps that the Tribunal considers appropriate to 
bring the default of the unlicensed person to the attention of 
livestock dealers who may sell assured livestock to the 
unlicensed person.
(7)  A claim against the Livestock Dealers' Assurance Fund must be 
verified by statutory declaration or any other manner specified by the 
Tribunal and must
	(a)	contain a statement as to the particulars of the default,
	(b)	contain or refer to a statement of account showing particulars 
of the amount owing with respect to the default, and
	(c)	specify the documentation, if any, by which the default and 
amount owing can be verified.
(8)  The Tribunal may at any time require a claimant to provide 
documentation or any other information as required by the Tribunal in 
support of the claim.
(9)  A livestock dealer who makes a claim under subsection (2) must 
meet the conditions and eligibility requirements set out in sections 46 
and 47 in order to be entitled to receive a payment from the Livestock 
Dealers' Assurance Fund.
(10)  On determining the claim, the Tribunal shall serve the claimant 
with a copy of the Tribunal's decision, with reasons.
Terms and conditions
42   The Tribunal may impose terms or conditions that the Tribunal 
considers appropriate on a payment made from an assurance fund.
Maximum recovery
43(1)  The maximum recovery from an assurance fund, including any 
amount recovered from a livestock dealer's security, is the lesser of
	(a)	80% of the non-payment, and
	(b)	80% of the value of the assured livestock.
(2)  If a participant makes a claim for a non-payment that occurs in the 
first calendar year after revoking a waiver of the right to claim against 
the assurance fund, the maximum recovery is
	(a)	in the case of a non-payment in the first quarter, 25%,
	(b)	in the case of a non-payment in the 2nd or 3rd quarter, 50%, 
or
	(c)	in the case of a non-payment in the 4th quarter, 75%
of the amount the claimant would otherwise receive.
(3)  If there are insufficient funds to pay all outstanding successful 
claims against an assurance fund, each successful claimant shall 
receive a prorata share of the amount the claimant would otherwise 
receive from the remainder of the fund after the following are paid:
	(a)	first, all the fund's operating expenses;
	(b)	second, all outstanding levy refunds.
Eligibility - security
44   To be eligible to claim against security, a person must, in the 
opinion of the Minister, or, in the event of an appeal, in the opinion of 
the Tribunal,
	(a)	have supplied or sold livestock 
	(i)	if the person was not a livestock dealer, that was present 
in Alberta as defined in section 1(7) for 30 consecutive 
days immediately prior to the supply or sale, and
	(ii)	to a livestock dealer who
	(A)	committed a default within the meaning of section 
56 of the Act, and
	(B)	was not an associated person of the person making 
the claim,
	(b)	have notified the Minister as required by section 55 of the 
Act and section 3(3) of this Regulation,
	(c)	have submitted the claim within the time specified in the 
notice given under section 56(2)(b)(iii) of the Act, and
	(d)	meet the remaining eligibility requirements set out in section 
47.
Eligibility - Livestock Assurance Fund
45   To be eligible to claim against the Livestock Assurance Fund, a 
participant must, in the opinion of the Tribunal,
	(a)	have supplied or sold assured livestock to a livestock dealer 
who committed a default within the meaning of section 56 of 
the Act,
	(b)	have notified the Minister as required by section 55 of the 
Act,
	(c)	have submitted the claim within the time specified in the 
notice given under section 56(2)(b)(iii) of the Act,
	(d)	have paid the levy with respect to the assured livestock,
	(e)	not be ineligible to claim from the fund under section 38, and
	(f)	meet the remaining eligibility requirements set out in section 
47.
Eligibility - Livestock Dealers' Assurance Fund
46   To be eligible to claim against the Livestock Dealers' Assurance 
Fund, a participant must, in the opinion of the Tribunal,
	(a)	be a livestock dealer and have sold assured livestock to an 
unlicensed person who committed a default within the 
meaning of section 41(1),
	(b)	have notified the Tribunal as required by section 41(2),
	(c)	have submitted the claim within the time specified in the 
notice given under section 41(5),
	(d)	have paid the levy with respect to the assured livestock,
	(e)	not be ineligible to claim from the fund under section 38, and
	(f)	meet the remaining eligibility requirements set out in section 
47.
Eligibility - security or assurance funds
47   Subject to sections 44 to 46, to be eligible to claim against 
security or an assurance fund, a person must
	(a)		not have colluded with the purchaser of the livestock or the 
purchaser's agent to make a claim against the livestock 
dealer's security or an assurance fund,
	(b)	have complied with an inspection requirement of
	(i)	the Act, and
	(ii)	if the livestock was supplied in Dawson Creek, British 
Columbia or Lloydminster, Saskatchewan to a livestock 
market approved by the Minister, the laws of that 
jurisdiction,
	(c)	have delivered the livestock,
	(d)	if the person did not own the livestock, have paid the sale 
proceeds to the person who supplied the livestock, 
	(e)	not have agreed expressly or implicitly to accept payment of 
the sale proceeds contrary to the requirements of section 16 
of the Act, if applicable, and
	(f)	have deposited or cashed sale proceeds received by way of 
cheque within a reasonable time.
Part 5 
Livestock Dealers and Livestock 
Dealer's Agents
Dealing in livestock or livestock products
48(1)  A person deals in livestock or livestock products if the person
	(a)	as an agent or on the person's own behalf, purchases or sells 
livestock or livestock products, including an ownership 
interest in livestock or livestock products, or
	(b)	provides information about livestock or livestock products 
that are for sale to assist in the purchase or sale of the 
livestock or livestock products.
(2)  Despite subsection (1), a person is not dealing in livestock or 
livestock products if
	(a)	the person is
	(i)	dealing in livestock or livestock products for the 
purpose of administering the estate of a deceased 
livestock dealer,
	(ii)	the personal representative of the estate or, if there is no 
personal representative, approved by the Minister, and
	(iii)	dealing within 90 days of the deceased's death,
	(b)	the person purchases and sells livestock in accordance with 
section 47(3) of the Act,
	(c)	the person sells livestock the person has owned and 
maintained since the livestock's birth,
	(d)	the person is a feeder,
	(e)	the person is
	(i)	named as an authorized representative in the licence of a 
livestock dealer or livestock dealer's agent who is a 
corporation or partnership, and
	(ii)	acting in the course of the person's duties as an 
authorized representative,
	(f)	the person is an agricultural society under the Agricultural 
Societies Act or a similar organization recognized by the 
Minister, or
	(g)	the person is an incorporated not-for-profit livestock pedigree 
association or is an Alberta 4-H club that sells livestock as an 
agent if
	(i)	the sale of livestock is held as an incidental service to 
association or club members,
	(ii)	in the case of a pedigree association, the livestock is 
pedigree livestock, and
	(iii)	at least one association or club member participates in 
the livestock sale as a purchaser or a seller.
Division 1 
Licensing
Application
49(1)  An application to issue, renew, reinstate or replace a licence 
must be
	(a)	made in the form and manner required by the Minister, and
	(b)	accompanied by the fee set out in section 81.
(2)  An application to issue, renew or reinstate a livestock dealer's 
licence must be accompanied with a declaration in the form and 
manner required by the Minister for the purpose of section 56.
(3)  The Minister may refuse to accept an application if the applicant 
has unsuccessfully submitted an application in the previous 12 months.
Grounds of refusal, suspension, cancellation
50(1)  The Minister may refuse a licence application or suspend or 
cancel a licence if, in the Minister's opinion, the applicant or licence 
holder
	(a)	contravened the Act, this Regulation or the following Acts 
and the regulations made under those Acts:
	(i)	Brand Act;
	(ii)	Livestock Identification and Brand Inspection Act;
	(iii)	Livestock and Livestock Products Act;
	(iv)	Livestock Diseases Act;
	(v)	Animal Protection Act;
	(vi)	Health of Animals Act (Canada),
	(b)	is an associated person of a person who could be refused a 
licence under clause (a),
	(c)	held a licence to deal in livestock or livestock products, in 
any jurisdiction, that was suspended or cancelled,
	(d)	had a livestock dealer's agent whose licence was suspended 
or cancelled while licensed under the applicant or licence 
holder,
	(e)	contravened a term or condition of a licence issued under this 
Regulation,
	(f)	provided false, misleading or incomplete information with 
respect to a licence application,
	(g)		failed to pay a fee, levy, assessment or penalty under the Act 
or this Regulation when due,
	(h)	is unlikely to comply or to be able to comply with the Act 
and this Regulation,
	(i)	is incorporated and a director, officer or authorized 
representative of the applicant or licence holder could be 
refused a licence under clauses (a) to (h),
	(j)	is a partnership and a partner or authorized representative of 
the applicant or licence holder could be refused a licence 
under clauses (a) to (h), or
	(k)	in the case of a replacement licence, fails to satisfy the 
Minister that the original was lost or destroyed.
(2)  The Minister may refuse, suspend or cancel a licence if, in the 
Minister's opinion, to do so is in the public interest.
Automatic refusal, suspension, cancellation
51(1)  The Minister shall 
	(a)	cancel a licence if the licence was improperly issued,
	(b)	cancel a livestock dealer's agent's licence on the receipt of 
notice in accordance with section 61, and
	(c)	suspend or cancel a livestock dealer's agent's licence if the 
related livestock dealer's licence is suspended or cancelled.
(2)  The Minister shall refuse a licence application or suspend or 
cancel a licence if the livestock dealer fails to provide security as 
determined by the Minister in accordance with section 56.
(3)  Unless the Tribunal waives the application of this section, the 
Minister shall refuse a licence application or suspend or cancel a 
licence if
	(a)	the applicant or licence holder is or may be subject to a claim 
by the Tribunal under section 73 of the Act for an amount 
paid from the assurance fund, or 
	(b)	the applicant or licence holder is 
	(i)	an associated person of a person referred to in clause 
(a), and 
	(ii)	was directly involved in the transaction giving rise to 
the payment from the assurance fund.
Automatic reinstatement
52   The Minister shall reinstate a livestock dealer's agent's licence if
	(a)	the licence was suspended under section 51(1)(c), and
	(b)	the related livestock dealer's licence is reinstated.
Notice of refusal, suspension, cancellation 
53(1)  If a licence application is refused, the Minister shall provide 
notice to the applicant in writing.
(2)  If a licence is not renewed or is suspended, cancelled or reinstated, 
the Minister shall
	(a)	provide notice to the licence holder in writing, and
	(b)	publish a notice advising of the non-renewal, suspension, 
cancellation or reinstatement of the licence.
(3)  The Minister may publish the notice referred to in subsection 
(2)(b) in any form and manner that the Minister considers appropriate.
Terms and conditions
54(1)  A livestock dealer or a livestock dealer's agent shall comply 
with the terms and conditions of the livestock dealer's or livestock 
dealer's agent's licence.
(2)  A licence is subject to the following terms and conditions:
	(a)	the licence holder must complete the educational 
requirements, if any, as required by the Minister;
	(b)	the licence must, immediately on request, be returned to the 
Minister;
	(c)	the licence must be displayed in a conspicuous place in the 
licence holder's business premises;
	(d)	any other terms or conditions the Minister specifies when the 
licence is issued, renewed or reinstated.
Expiry
55   A licence expires on the earlier of
	(a)	December 31 of the year for which the licence is issued,
	(b)	the cancellation of the licence by the Minister, and
	(c)	in the case of a livestock dealer's agent's licence, on the 
death of the livestock dealer under whom the livestock 
dealer's agent is licensed.
Determination of security
56(1)  The Minister shall, on an application to issue, renew or reinstate 
a livestock dealer's licence, determine the amount and form of security 
a livestock dealer is required to provide under section 53 of the Act.
(2)  A livestock dealer shall, on request, provide financial statements in 
the form and manner required by the Minister.
(3)  If a livestock dealer does not operate an abattoir, the amount of 
security a livestock dealer is required to provide is, based on the annual 
volume of livestock supplied or sold to the livestock dealer as assessed 
by the Minister, as follows:

12 000 head or less 	$40 000
12 001 to 25 000 head 	50 000
25 001 to 35 000 head 	60 000
35 001 to 45 000 head 	70 000
45 001 to 55 000 head 	80 000
55 001 to 65 000 head 	90 000
65 001 to 75 000 head 	100 000
75 001 to 85 000 head 	110 000
85 001 to 95 000 head 	120 000
95 001 to 110 000 head 	150 000
110 001 to 135 000 head 	175 000
135 001 to 175 000 head 	200 000
more than 175 000 head 	400 000
(4)  If a livestock dealer operates an abattoir, the amount of security a 
livestock dealer is required to provide is, based on the annual volume 
of livestock purchased by the livestock dealer as assessed by the 
Minister, as follows:
1000 head or less	$10 000
1001 to 3000 head	20 000
3001 to 20 000 head	50 000
20 001 to 35 000 head 	100 000
35 001 to 75 000 head	200 000
more than 75 000 head	500 000
(5)  For the purpose of subsections (3) and (4), sheep and swine must 
be counted as follows:
	(a)	10 sheep = 1 head of livestock;
	(b)	8 swine = 1 head of livestock.
(6)  The Minister may consider the extent of the livestock dealer's 
previous dealings and intended dealings in livestock or livestock 
products to assess the annual volume of livestock supplied, sold or 
purchased for the purpose of subsection (3) or (4).
(7)  The Minister may accept as security a bond, a letter of credit, a 
deposit secured to the Minister or another form of security approved by 
the Minister.
Division 2 
Obligations and Duties
Relations with Public
Good faith
57   A livestock dealer or a livestock dealer's agent shall conduct all 
dealings in livestock or livestock products
	(a)	honestly and in good faith, and
	(b)	if acting as a person's agent, in that person's best interests.
Representations
58   A livestock dealer or livestock dealer's agent shall not 
	(a)	misrepresent the goods or services offered by the livestock 
dealer or livestock dealer's agent, or
	(b)	mislead or attempt to mislead anyone with respect to a 
dealing in livestock or livestock products
nor permit or require a person acting on the livestock dealer's or 
livestock dealer's agent's behalf to do so.
Accounting for dealings
59   A livestock dealer shall account to a person for whom the 
livestock dealer or livestock dealer's agent acts or from whom the 
livestock dealer or livestock dealer's agent purchases livestock or 
livestock products with respect to a dealing in livestock or livestock 
products.
Relations Between Livestock Dealers 
and Livestock Dealer's Agents
Permitted agents
60(1)  Subject to subsection (3), a livestock dealer shall not permit a 
person to deal in livestock or livestock products on the livestock 
dealer's behalf unless the person is licensed under the livestock 
dealer's licence as a livestock dealer's agent.
(2)  Subject to subsection (3), a livestock dealer's agent shall not 
permit a person to deal in livestock or livestock products on the 
livestock dealer's agent's behalf.
(3)  A livestock dealer or livestock dealer's agent who is a corporation 
or a partnership may permit a person who is named as authorized 
representative under the livestock dealer's or livestock dealer's agent's 
licence to deal in livestock or livestock products on the livestock 
dealer's or livestock dealer's agent's behalf.
Termination of Agency
61   If a livestock dealer's agent ceases to represent a livestock dealer 
or an authorized representative ceases to represent a livestock dealer or 
livestock dealer's agent, the livestock dealer or livestock dealer's agent 
shall notify the Minister
	(a)	immediately by telephone, and
	(b)	by facsimile or e-mail within one business day.
Consent for dual licensing
62   A livestock dealer's agent shall not agree to be licensed under 
more than one livestock dealer without the prior written approval of 
the livestock dealers.
Dealings and Transactions
Deduct and remit levy
63(1)  A livestock dealer to whom assured livestock is supplied or sold 
shall
	(a)	deduct the levy from the sale proceeds, and
	(b)	remit the levy to the Tribunal on behalf of the participant.
(2)  If the livestock dealer fails to deduct or remit the levy to the 
Tribunal, the livestock dealer is jointly and severally liable to the 
Tribunal for the levy.
Dealing in livestock dealer's name
64(1)  A livestock dealer's agent shall, before dealing in livestock or 
livestock products, disclose to the person with whom the livestock 
dealer's agent is dealing the name of the livestock dealer on whose 
behalf the livestock dealer's agent is acting.
(2)  A livestock dealer's agent shall deal in livestock or livestock 
products in the name under which the livestock dealer for whom the 
livestock dealer's agent is acting as an agent is licensed.
(3)  A livestock dealer or livestock dealer's agent shall pay sale 
proceeds in the name under which the livestock dealer is licensed.
Sale or supply prohibited
65   A livestock dealer or livestock dealer's agent shall not sell or 
supply livestock or livestock products to a person dealing in livestock 
or livestock products who the livestock dealer or livestock dealer's 
agent knows or ought to know is not licensed.
Record keeping and retention
66(1)  A livestock dealer shall make and retain detailed records in the 
form and manner required by the Minister with respect to the dealing 
in livestock or livestock products by the livestock dealer or livestock 
dealer's agent.
(2)  The records shall include
	(a)	copies of all documents related to the dealings that come into 
the livestock dealer's or livestock dealer's agent's 
possession, and
	(b)	financial and trust account records.
(3)  The records must be retained for 10 years and must be provided to 
the Minister upon request.
Trust accounts
67(1)  A livestock dealer required to maintain a trust account under 
section 17(2) of the Act shall operate the trust account in the form and 
manner required by the Minister.
(2)  A withdrawal from a trust account must be made by a cheque or 
bank transfer that is identified as a withdrawal from a trust account.
(3)  A livestock dealer shall deposit trust money within one business 
day of receipt of the trust money.
(4)  If a person requests that trust money held on that person's behalf 
be provided to the person, the balance of the trust money shall be 
provided within 2 business days of the request.
Livestock weight
68   A livestock dealer or a livestock dealer's agent who purchases or 
sells livestock by weight shall
	(a)	weigh the livestock on a weigh scale approved under the 
Weights and Measures Act (Canada) at the time of sale,
	(b)	if the livestock dealer or livestock dealer's agent is not the 
owner of the livestock, provide the owner with a copy of the 
official scale ticket, and
	(c)	use the weight from the official scale ticket in a bill of sale, 
invoice or settlement statement.
Required sale transaction documentation
69   If one or more livestock dealers or livestock dealer's agents are 
involved in a sale transaction, a livestock dealer or livestock dealer's 
agent shall document the sale transaction in the form of a settlement 
statement for the purpose of section 14 of the Act.
Part 6 
Miscellaneous
Division 1 
Establishment and Operation of Tribunal
Tribunal
70(1)  The Tribunal shall consist of one person appointed by each 
association authorized under this section.
(2)  Subject to section 73, the following associations are authorized to 
appoint a person to the Tribunal:
	(a)	Alberta Auction Markets Association;
	(b)	Alberta Beef Producers;
	(c)	Alberta Cattle Feeders Association;
	(d)	Feeder Associations of Alberta Ltd.;
	(e)	Alberta Livestock Dealers and Order Buyers Association;
	(f)	Western Stock Growers Association;
	(g)	any other association designated in accordance with section 
71.
Designated associations
71(1)  The Tribunal may, by resolution, designate an association for 
the purposes of section 70(2)(g).
(2)  The resolution is not effective unless approved by the Minister.
Requirement to appoint
72(1)  For the purpose of section 70, an association that is authorized 
to appoint a person to the Tribunal shall appoint 2 persons, one of 
which will act in the event the other is unwilling or unavailable to act.
(2)  An appointment is not effective unless approved by the Minister.
Revocation and reinstatement of authorization
73(1)  The Tribunal may, by unanimous resolution, revoke the 
authorization of an association to appoint a person to the Tribunal if, 
without a satisfactory explanation,
	(a)	the association fails to appoint 2 persons in accordance with 
section 72, or
	(b)	both persons appointed by the association fail to attend a 
meeting of the Tribunal.
(2)  For the purposes of a resolution under subsection (1), the Tribunal 
does not include a member appointed by the association whose 
authorization may be revoked.
(3)  The Tribunal may, by unanimous resolution, reinstate the 
authorization of an association to appoint a person to the Tribunal.
(4)  A resolution under this section is not effective unless approved by 
the Minister.
Chair
74(1)  The Tribunal shall elect a person appointed to the Tribunal as 
chair.
(2)  In the event of a tie, the chair has an additional vote.
Quorum
75(1)  Subject to subsection (2), 2/3 of the Tribunal constitutes a 
quorum.
(2) One hundred percent of the Tribunal constitutes a quorum for the 
purpose of
	(a)	assessing a claim,
	(b)	hearing an appeal, or
	(c)	authorizing or revoking or reinstating the authorization of an 
association to appoint a person to the Tribunal.
Division 2 
Fees
Registry fees
76   The following fees are prescribed for the purpose of sections 2, 5, 
6 and 7 of the Act:
	(a)		to register a brand or to change the registered 
description or location of a brand	$220;
	(b)	to register an honorary brand or to change the 
registered description or location of an 
honorary brand	$275;
	(c)	to transfer ownership of a registered brand or  
honorary brand	$50;
	(d)	to search the registry to obtain a certified copy 
of an extract of the registry's records	$25.
Inspection fees 
77(1)  The fee for an inspection, other than an inspection for a special 
permit, is
	(a)	per head of livestock, excluding horses, $1, and
	(b)	per horse, $2.
(2)  The fee for an inspection for a special permit is $10 per head of 
livestock.
(3)  The minimum inspection fee under subsection (1) or (2) is
	(a)	$20, or
	(b)	in the case of an inspection for the purpose of a lifetime horse 
permit, $30.
Inspection fee reduction - grazing
78   The inspection fee for an inspection of livestock may be reduced 
by the Minister by 50% if
	(a)	the full fee is received by the Minister in accordance with the 
Act,
	(b)	the inspection was for the purpose of issuing a livestock 
permit,
	(c)		the livestock permit is used to transport or drive livestock 
outside of Alberta for the purpose of grazing at a location and 
in a jurisdiction approved by the Minister,
	(d)	Part B of the livestock permit
	(i)	was  completed by the inspector when the livestock 
permit was issued, and
	(ii)	was not amended to change the person or destination for 
delivery,
	(e)	the livestock was not sold, and
	(f)	in the same calendar year during which the livestock permit 
is issued,
	(i)	the livestock, as described in the livestock permit, 
returns to Alberta after grazing,
	(ii)	the livestock is inspected in the approved jurisdiction 
for the purpose of returning to Alberta and an inspection 
fee was paid, and
	(iii)	the owner of the livestock or the owner's agent applies 
to the Minister in the form and manner required by the 
Minister for a fee reduction.
Special permit fee
79(1)  The fee for a special permit issued without an inspection is $10 
per head of livestock under the special permit.
(2)  The minimum special permit fee under subsection (1) is $20.
Collection of inspection fees
80(1)  An owner and operator of an inspection site shall pay the 
inspection fees due for inspections carried out at the inspection site to 
the Minister within 7 days of a request for payment by the Minister.
(2)  An owner and operator of an inspection site may deduct a 5% 
commission from all inspection fees paid to the Minister.
Licence fees
81   The following are the licence fees for the purpose of section 49:
	(a)	to issue or renew a livestock dealer's licence	$100;
	(b)	to issue or renew a livestock dealer's agent's  
licence	$50;
	(c)	to reinstate a suspended livestock dealer's  
licence 	$50;
	(d)	to reinstate a suspended livestock dealer's  
agent's licence	$25.
Division 3 
Information and Offences
Collection of third party information
82(1)  For the purposes of the Freedom of Information and Protection 
of Privacy Act, personal information is authorized to be collected from 
a third party for the following purposes:
	(a)	the registration of a brand or honorary brand;
	(b)	issuing, renewing, reinstating, suspending or cancelling a 
licence;
	(c)	issuing, completing or cancelling a permit;
	(d)	an inspection, including a notice of a proposed or required 
inspection;
	(e)	a claim against security or an assurance fund, including a 
notice of a claim.
Offences
83(1)  A person is guilty of an offence if the person
	(a)	contravenes sections 5(5) and (6), 11, 21, 22, 25, 28, 30(a) 
and (b)(ii), 31(2), 32(2), 36, 41(4), 54, 59, 60, 63 to 69 or 94,
	(b)	fails to remit an inspection fee to an inspector or an owner or 
operator of an inspection site,
	(c)	fails to return a permit required under section 24(3)(b),
	(d)	not being the owner of the livestock completes a livestock 
security interest declaration in respect of the livestock, or
	(e)	fails to pay a levy as required by section 69(2) of the Act.
(2)  The offences in subsection (1) are in addition to the offences set 
out in sections 11, 44 and 64 of the Act.
Division 4 
Transition of Matters to Act
Interpretation
84(1)  In this Division,
	(a)		"new enactment" means the Act and the regulations under 
the Act;
	(b)	"previous enactment" means the following Acts and the 
regulations under the following Acts:
	(i)	Brand Act;
	(ii)	Livestock Identification and Brand Inspection Act;
	(iii)	Livestock and Livestock Products Act.
(2)  The provisions in this Division respecting the transition of matters 
from a previous enactment to the new enactment do not limit the 
application of section 35 or 36 of the Interpretation Act except as 
specifically set out in this Part.
Brand registry
85   The Minister shall enter in the registry all brands or honorary 
brands that were registered under a previous enactment.
Licence
86   If a licence issued under a previous enactment has not expired or 
been cancelled, that licence is deemed to be issued under the new 
enactment.
Inspectors
87   A person appointed as an inspector under a previous enactment is 
deemed to be designated as an inspector under the new enactment.
Withheld sale proceeds
88   A claim for the return of settlement funds withheld under a 
previous enactment because ownership of the livestock could not be 
determined is subject to the limitation period for making the claim set 
out in the new enactment.
Livestock manifest 
89   A livestock manifest in the form required under a previous 
enactment is permitted as an alternative to the livestock manifest 
required under the new enactment until March 31, 2009.
Livestock permit
90(1)  A permit issued under a previous enactment that has not expired 
is deemed to be issued under the new enactment.
(2)  A requirement to obtain a permit under section 16 does not take 
effect until 30 days after the coming into force of this Regulation.
Rules
91   All Rules made by a delegated authority under a previous 
enactment are deemed to have been made under the new enactment, 
insofar as they are not inconsistent with the new enactment.
Assurance Funds
92   The levies collected under a previous enactment and the interest 
on those levies shall be paid,
	(a)	if the levies were collected with respect to the sale or supply 
of assured livestock to a licensed person, into the Livestock 
Assurance Fund, and
	(b)	if the levies were collected with respect to the sale of assured 
livestock to an unlicensed person, into the Livestock Dealers' 
Assurance Fund.
Appeal to Court of Appeal
93   A decision of a Tribunal issued after the coming into force of the 
new enactment is subject to the limitation period for an appeal to the 
Court of Appeal in the new enactment notwithstanding the claim on 
which the decision is based arose under a previous enactment.
Document retention
94   A person required to retain a document for 2 years under a 
previous enactment is required to retain that document for 10 years and 
to provide the document to the Minister upon request if, on the coming 
into force of the new enactment, the document
	(a)	is still required to be retained under a previous enactment, or 
	(b)	has not been previously disposed of.
Division 5 
Other
Repeals
95   The following regulations are repealed: 
	(a)	Brand Regulation (AR 217/98);
	(b)	Livestock Identification and Brand Inspection Fees 
Regulation (AR 216/98); 
	(c)	Livestock Identification and Brand Inspection Regulation 
(AR 195/98);
	(d)	Application and Licence Form Regulation (AR 215/98); 
	(e)	Fees Regulation (AR 222/98); 
	(f)	Livestock Dealers and Livestock Dealers' Agents Regulation 
(AR 66/98); 
	(g)	Livestock Patrons' Claims Review Tribunal Regulation (AR 
257/97); 
	(h)	Livestock Transportation Regulation (AR 22/99); 
	(i)	Section 8 Livestock Designation Regulation (AR 198/98); 
	(j)	Stock Yard Regulation (AR 197/98); 
	(k)	Weighing of Beef Carcasses Regulation (AR 252/2002); 
	(l)	Ribbon Branding of Carcasses Regulation (AR 251/2002).
Expiry
96   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 June 30, 2014.
Coming into force
97   This Regulation comes into force on the coming into force of the 
Livestock Identification and Commerce Act.
Schedule 1
Client No.

File No.
 
Livestock Identification and Commerce Act 
 
BRAND AND HONORARY BRAND
APPLICATION FORM
APPLICATION FOR A   ?   BRAND or HONORARY BRAND 
                               FOR   ?   CATTLE or HORSES
Part A - Status of Applicant - check the appropriate boxes
?  Individual - If more than one individual, as 
?  Joint Owners or as    ?   Co-Owners
?  Partnership              ?   Corporation 
Part B - Applicant Name


--------------------------------
If an individual(s) (if more than 4 owners attach separate sheet of paper)
    Applicant 1:     (Last Name)        (First Name)         (Middle Name)     
    Applicant 2:     (Last Name)        (First Name)         (Middle Name)     
    Applicant 3:     (Last Name)        (First Name)         (Middle Name)     
    Applicant 4:     (Last Name)        (First Name)         (Middle Name)     
    Trade name, if any:                                                                                 
    The applicant(s) is/are over 18 years of age: ___Yes    ___No
If a partnership or corporation:
    Partnership or Company Name:                                                             
    Corporate Access Number:                                                                    
    Trade name, if any:                                                                                 
The following individuals are authorized to sign on behalf of the 
partnership or corporation: 
   (Print Name)                       (Position)                                (Signature)    
   (Print Name)                       (Position)                                (Signature)    
Part C - Applicant Contact Information
Location of the farm, ranch, pasture where the livestock bearing the 
brand will be kept 
Primary location:                                                                                        
                                Quarter  -  Sec - Twp    -  Rge - Mer.    Premise ID #
Mailing Address:                                                                                         
Town/City, Prov, Postal Code:                                                                   
Phone:                                      Fax:                                                            
E-mail Address:                                                                                          
Part D - Description of the brand or honorary brand
1st Choice



Location:
2nd Choice



Location:
3rd Choice



Location:
4th Choice



Location:
Does the applicant presently own a brand:
?  Yes        ?  No      If yes:  ? Cattle Brand
                                                    ? Horse Brand
Description:


Location:
Part E - Honorary Brands only
The purpose of the honorary brand is to:
    ?  Promote the livestock industry, or
    ?  Recognize outstanding service to the livestock industry
Description of how the honorary brand will be used to promote the 
livestock industry or to recognize outstanding service to the livestock 
industry:
Part F - Signature of each individual applicant
The undersigned hereby declare that all of the above information is true 
and correct.
(Date)
(Printed name of applicant(s))
(Signature of applicant(s))












Part G - Signature of Corporate or Partnership applicant
The undersigned hereby declare that all of the above information is true 
and correct and that the undersigned has authority to complete this 
application on behalf of the partnership or the corporation.
Date:
Print Name:

Signature:

Position:
This information is being collected for the purposes of brand registry 
records in accordance with the Livestock Identification and Commerce 
Act.  Questions about the collection of this information can be directed to 
the Freedom of Information and Protection of Privacy Coordinator for 
the brand registry at 109, 264 Midpark Way SE, Calgary, Alberta T2X 
1J6.
Documents to submit with the Brand or Honorary Brand 
Application
Corporations
Certificate of Incorporation 
Proof of filing of their annual return
Partnerships
Filed Declaration of Partnership
Any applicant operating 
under a trade name
Filed Declaration of Trade Name
If applying on behalf of 
an applicant under 18 
years of age
Guardian's Acknowledgment of 
Responsibility (Form 1 under the Minors' 
Property Act - Minors' Property Regulation) 
available from Livestock Identification 
Services on request.
Permitted Brand Locations
For Cattle:   Left Shoulder, Left Rib, Left Hip, Right Shoulder, Right 
                      Rib, Right Hip
For Horses: Left Jaw, Left Shoulder, Left Thigh, Right Jaw, Right 
                     Shoulder, Right Thigh 
Application Fee
Application Fee payable to Livestock Identification Services Ltd. is: 
              For a Brand:   $220 plus GST
              For an Honorary Brand:  $275 plus GST

Schedule 2 

LIVESTOCK IDENTIFICATION SERVICES LTD.              ZZ999999 
ALBERTA LIVESTOCK MANIFEST                                (Bar code)
Part A - Purpose of Manifest
?  Transport 
       Only
Transport 
for Sale by:
?  Owner
?  Dealer on Behalf of 
       Owner
Check if Livestock Security Declaration is by Separate Document ?
Part B - Transportation and Sale Details
Pen or Lot Number
Date  YYYY/MM/DD
Owner or Dealer Name    (Print Clearly & Press Hard)               Phone #
Owner or Dealer Address
On Account Of
Pay To (If Other Than Owner)                       Address
Transport From Address
Premises ID
Transport To Name
Transport To Address
Description of Livestock
Number
Colour
Kind
Brand(s)/ 
Identifier(s)
Loc.
AV
Other 
Information

















































Total
Part C - Parts A and B Certification

I CERTIFY THAT PARTS A AND B ARE TRUE  
X  Signature of Owner or (if Permitted) Owner's Agent
Part D - Inspector
Adj. Total
Inspector Signature                  Inspector 
#
Client #
Sale Point #
Assur. Fund 
#     Eligible
Check-off 
# Eligible
Livestock Permit #
Part E - Transporter
Transporter Name and Address
Trailer or Conveyance Licence #
Transporter Signature                          Phone #
Trucking Charges
Part F - Livestock Security Interest Declaration (If Sale by Owner)
Name and Address of Holder of Livestock Security Interest in the 
Livestock or in the Dam of the Livestock or if None Indicate "NONE"
I CERTIFY THAT THIS DECLARATION IS TRUE 
X    Signature of Owner
         Date 
YYYY/MM/DD
Part G - Destination
Date and Time Received 
    YYYY/MM/DD
Time
Count
Placed in Pen #
Received and Counted By:  (Print Name) /Signature)
Premise ID #
	Manifest #      ZZ999999



Alberta Regulation 209/2008
Animal Health Act
REPORTABLE AND NOTIFIABLE DISEASES REGULATION
Filed: December 3, 2008
For information only:   Made by the Minister of Agriculture and Rural Development 
(M.O. 32/2008) on November 17, 2008 pursuant to section 70 of the Animal Health 
Act. 
Table of Contents
	1	Definition
	2	Reportable diseases
	3	Notifiable diseases
	4	Repeal
	5	Expiry


	6	Coming into force 
 
Schedules
Definition
1   In this Regulation, "animal" includes the animals listed in column 1 
of the Schedules.
Reportable diseases
2   The diseases listed in Schedule 1 are reportable diseases prescribed 
for the purposes of section 3 of the Act.
Notifiable diseases
3   The diseases listed in Schedule 2 are notifiable diseases prescribed 
for the purposes of section 4 of the Act.
Repeal
4   The Designated Communicable Diseases Regulation 
(AR 301/2002) is repealed.
Expiry
5   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 January 31, 2014.
Coming into force
6   This Regulation comes into force on January 1, 2009.
Schedule 1  
Reportable Diseases
ROW
COLUMN 1
COLUMN 2
1
cattle and yaks
Disease caused by Salmonella dublin;
Disease caused by Salmonella 
typhimurium;
Bovine spongiform encephalopathy;
Foot-and-mouth disease;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

2
swine and wild 
boars
Transmissible gastroenteritis;
Foot-and-mouth disease;
Classical swine fever;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

3
domestic chickens, 
bantams, pheasants 
and peafowl
Infectious laryngotracheitis;
Disease caused by highly pathogenic 
strains of avian influenza or all strains 
of H5 or H7 strains of avian influenza;
Exotic Newcastle disease;
Disease caused by Salmonella 
gallinarum;
Disease caused by Salmonella 
pullorum;


Disease caused by Salmonella 
enteritidis;
Disease caused by Salmonella 
heidelberg;
Disease caused by Salmonella 
typhimurium;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

4
any of the 
following birds 
when kept in 
captivity: 
 
domestic turkeys, 
ostriches, emu, 
rheas, pigeons, 
doves, quail, 
guinea fowl and 
wild turkeys
Disease caused by highly pathogenic 
strains of avian influenza or all strains 
of H5 or H7 strains of avian influenza;
Exotic Newcastle disease;
Disease caused by Salmonella 
gallinarum;
Disease caused by Salmonella 
pullorum;
Disease cause by Salmonella 
enteritidis;
Disease caused by Salmonella 
heidelberg;
Disease caused by Salmonella 
typhimurium;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

5
domesticated ducks 
and domesticated 
geese
Disease caused by highly pathogenic 
strains of avian influenza or all strains 
of H5 or H7 strains of avian influenza;
Exotic Newcastle disease;
Disease caused by Salmonella 
enteritidis;


Disease caused by Salmonella 
heidelberg;
Disease caused by Salmonella 
typhimurium;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

6
farmed bison
Foot-and-mouth disease;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

7
sheep and goats
Scrapie;
Foot-and-mouth disease;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

8
domestic cervids
Chronic wasting disease;
Foot-and-mouth disease;
Disease caused by any toxic substance 
that is a threat to animal health or 
human health.

Schedule 2  
Notifiable Diseases
ROW
COLUMN 1
COLUMN 2
1
all animals
Disease caused by any Salmonella 
species other than those listed in 
Schedule 1;
All transmissible spongiform 
encephalopathies other than those 
listed in Schedule 1;
Lyme disease or the presence of the 
vector Ixodes species ticks;
Anthrax.

2
birds kept in 
captivity, including 
poultry

Avian chlamydiosis (Chlamydophila 
psittaci).

3
wild birds
Avian influenza;
Exotic Newcastle disease.
4
ruminant animals 
residing in a zoo
Anaplasmosis;
Bluetongue.

5
cattle and yaks
Anaplasmosis;
Bluetongue;
Johne's disease;
Vibriosis (genital campylobacteriosis);
Bovine trichomoniasis.

6
swine and wild 
boars

Swine influenza.

7
sheep and goats
Anaplasmosis;
Bluetongue;
Johne's disease;
Foot rot.

8
domestic cervids
Anaplasmosis;
Bluetongue;
Epizootic hemorrhagic disease;
Johne's disease.

9
wild cervids

Anaplasmosis;
Bluetongue;
Bovine tuberculosis;
Epizootic hemorrhagic disease;
Foot-and-mouth disease.

10
farmed bison
Anaplasmosis;
Bluetongue;
Bovine tuberculosis;
Brucellosis;
Johne's disease;
Malignant catarrhal fever.
11
wild bison

Anaplasmosis;
Bluetongue;
Bovine tuberculosis;
Brucellosis.

12
horses and donkeys
Disease caused by West Nile virus;
Disease caused by the neurotropic 
variant form of equine herpesvirus 
Type-1 (nEHV-1).



--------------------------------
Alberta Regulation 210/2008
Animal Protection Act
ANIMAL PROTECTION AMENDMENT REGULATION
Filed: December 9, 2008
For information only:   Made by the Minister of Agriculture and Rural Development 
(M.O. 35/2008) on November 27, 2008 pursuant to section 15 of the Animal 
Protection Act. 
1   The Animal Protection Regulation (AR 203/2005) is 
amended by this Regulation.

2   Section 1 is amended
	(a)	in clause (d) by striking out "area of land" and 
substituting "place";
	(b)	in clause (e) by striking out "stock yard" and 
substituting "place";
	(c)	by repealing clause (g).

3   Section 10(2) is amended by striking out "within the 
meaning of the Livestock Transportation Regulation (AR 22/99)".

4   Section 16 is amended by striking out "Livestock and 
Livestock Products Act" wherever it occurs and substituting 
"Livestock Identification and Commerce Act".

5   This Regulation comes into force on the coming into 
force of the Livestock Identification and Commerce Act.


--------------------------------
Alberta Regulation 211/2008
Municipal Government Act
ELECTRIC ENERGY GENERATION EXEMPTION REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 579/2008) 
on December 10, 2008 pursuant to section 603 of the Municipal Government Act. 
Electric power systems exempt from taxation
1   Notwithstanding sections 358, 359.1(4) and 359.2(4) of the Act, the 
Minister may in respect of a taxation year, to any extent the Minister 
considers appropriate, exempt electric power systems intended for or 
used in the generation of electricity from taxation for the purpose of 
raising revenue needed to pay the requisitions referred to in section 
326(a)(ii) and (iii) of the Act.
Repeal
2   The Electric Energy Generation Exemption Regulation 
(AR 264/2006) is repealed.
Expiry
3   This Regulation is made under section 603(1) of the Act and is 
subject to repeal under section 603(2) of the Act.
Coming into force
4   This Regulation comes into force on January 1, 2009.



Alberta Regulation 212/2008
Municipal Government Act
EXTENSION OF LINEAR PROPERTY REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 580/2008) 
on December 10, 2008 pursuant to section 603 of the Municipal Government Act. 
Linear property includes electric power system
1   Notwithstanding section 284(1)(k)(i) of the Act, linear property is 
to be construed as including an electric power system intended for or 
used in the generation of electricity owned or operated by a person 
whose rates are not controlled or set by the Alberta Utilities 
Commission or by a municipality or under the Small Power Research 
and Development Act but not including, unless the Minister otherwise 
directs, 
	(a)	an electric power system that is owned or operated by a 
person generating or proposing to generate electricity solely 
for the person's own use, or
	(b)	a micro-generation generating unit as defined in the 
Micro-Generation Regulation (AR 27/2008).
Repeal
2   The Extension of Linear Property Regulation (AR 265/2006) is 
repealed.
Expiry
3   This Regulation is made under section 603(1) of the Act and is 
subject to repeal under section 603(2) of the Act.
Coming into force
4   This Regulation comes into force on January 1, 2009.



Alberta Regulation 213/2008
Alberta Capital Finance Authority Act
ALBERTA CAPITAL FINANCE AUTHORITY  
AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 581/2008) 
on December 10, 2008 pursuant to section 35 of the Alberta Capital Finance 
Authority Act. 
1   The Alberta Capital Finance Authority Regulation 
(AR 258/2006) is amended by adding the following after 
section 1:
Maximum outstanding loans and securities
1.1   For the purpose of section 27(1) of the Act, the aggregate 
principal sum of all outstanding loans and securities shall not 
exceed $9 000 000 000.


--------------------------------
Alberta Regulation 214/2008
Alberta Investment Management Corporation Act
ALBERTA INVESTMENT MANAGEMENT CORPORATION  
AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 582/2008) 
on December 10, 2008 pursuant to section 20 of the Alberta Investment Management 
Corporation Act. 
1   The Alberta Investment Management Corporation 
Regulation (AR 225/2007) is amended by this Regulation.

2   Section 1 is repealed and the following is substituted:
Interpretation
1(1)  In this Regulation,
	(a)	"Act" means the Alberta Investment Management 
Corporation Act;
	(b)	"chair" means the chair of the board;
	(c)	"senior publicly traded issuer" means a publicly traded issuer 
that has or had a market capitalization of at least 
$75 000 000.
(2)  For the purposes of the Act and this Regulation,
	(a)	"costs" includes funds advanced to defray the costs, charges 
and expenses of an action or proceeding referred to in section 
12 of the Act;
	(b)	"party" includes a person involved in an action or 
proceeding;
	(c)	"proceeding" includes an investigation.

3   Section 7 is amended
	(a)	in subsection (3)(a) by striking out "and provide that it 
applies only to the extent that the person is not otherwise 
indemnified";
	(b)	by adding the following after subsection (3):
(3.1)  If the Corporation advances funds to a person in order to 
defray the costs of an action or proceeding, the person shall 
repay the funds advanced unless the person fulfils the 
conditions set out in section 12(1) of the Act and any terms and 
conditions required under subsection (3)(b).


--------------------------------
Alberta Regulation 215/2008
Alberta Treasury Branches Act
ALBERTA TREASURY BRANCHES (TFSA, 2008) 
AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 583/2008) 
on December 10, 2008 pursuant to section 34 of the Alberta Treasury Branches Act. 
1   The Alberta Treasury Branches Regulation (AR 187/97) is 
amended by this Regulation.

2   Section 4 is amended by adding the following after 
clause (d):
	(e)	a self-directed registered tax-free savings account under the 
Income Tax Act (Canada).


--------------------------------
Alberta Regulation 216/2008
Credit Union Act
CREDIT UNION (PRINCIPAL) (TFSA, 2008) 
AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 584/2008) 
on December 10, 2008 pursuant to section 230 of the Credit Union Act. 
1   The Credit Union (Principal) Regulation (AR 249/89) is 
amended by this Regulation.

2   Section 18 is amended by adding ", self-directed registered 
tax-free savings accounts" after "funds".


--------------------------------
Alberta Regulation 217/2008
Government Organization Act
FINANCE AND ENTERPRISE GRANT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 585/2008) 
on December 10, 2008 pursuant to section 13 of the Government Organization Act. 
Table of Contents
	1	Definition
	2	Delegation
	3	General authority to make grants
	4	Eligibility criteria
	5	Applications for grants
	6	Conditions
	7	Variation
	8	Repayment of grant
	9	Payment
	10	Agreements
	11	Refusal to provide grant
	12	Repeal
	13	Expiry
Definition
1   In this Regulation, "Minister" means the Minister of Finance and 
Enterprise.
Delegation
2   The Minister may delegate in writing any power, duty or function 
under this Regulation to any employee of the Government.
General authority to make grants
3   The Minister may make grants, in accordance with this Regulation, 
for any purpose related to any program, service or matter under the 
administration of the Minister.
Eligibility criteria
4   The Minister may establish eligibility criteria for grants.
Applications for grants
5   An application for a grant must be made in a manner and form 
satisfactory to the Minister.
Conditions
6   The following conditions apply to a grant:
	(a)	that the recipient
	(i)	use the grant only for the purpose for which it is made,
	(ii)	account to the Minister, in the manner required by the 
Minister, for the way in which the grant is spent in 
whole or in part,
	(iii)	permit a representative of the Minister or the Auditor 
General to examine any books or records that the 
Minister or the Auditor General considers necessary to 
determine how the grant has been or is being spent, and
	(iv)	provide to the Minister, on request, any information the 
Minister considers necessary for the purpose of 
determining whether or not the recipient has complied 
or is complying with the conditions of the grant;
	(b)	any other conditions imposed by the Minister.
Variation
7   The Minister may vary
	(a)	the eligibility requirements for a grant,
	(b)	the purpose of a grant, or
	(c)	a condition on which a grant is made.
Repayment of grant
8(1)  Subject to subsection (4), a recipient of a grant shall repay a grant 
or part of a grant
	(a)	that the recipient receives for which the recipient is not 
eligible,
	(b)	where the recipient provided false, inaccurate or misleading 
information to obtain the grant, or
	(c)	where the recipient fails to comply with a condition on which 
the grant or part of the grant is made.
(2)  Subject to subsection (4), a recipient of a grant shall repay any 
unused portion of the grant.
(3)  A grant or part of a grant that is required to be repaid under this 
section constitutes a debt due to the Government and is recoverable by 
the Minister in an action in debt against the recipient of the grant.
(4)  Subsections (1) and (2) do not apply where the Minister varies the 
eligibility criteria for, the purpose of or the conditions applicable to the 
grant to allow the recipient to retain the grant or to use the grant for the 
varied purpose or under the varied conditions.
Payment
9   The Minister may provide for the payment of any grant in a lump 
sum or by way of instalments and may determine the time or times at 
which the grant is to be paid.
Agreements
10   The Minister may enter into agreements with respect to any matter 
relating to the payment of a grant.
Refusal to provide grant
11   The Minister may refuse to provide a grant under this Regulation 
to an applicant who
	(a)	makes or has made a false or misleading statement in an 
application under this Regulation or in any other document 
required by the Minister or who furnishes or has furnished 
the Minister or the Government of Alberta or the 
Government of Canada with any false or misleading 
information that, in the opinion of the Minister, materially 
affects the applicant's eligibility to receive a grant under this 
Regulation, or
	(b)	if the Minister, in the Minister's sole discretion, considers it 
appropriate to refuse to make the grant.
Repeal
12   The Treasurer's Grants Regulation, Order in Council numbered 
O.C. 474/78, is repealed.
Expiry
13   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 April 30, 2016.


--------------------------------
Alberta Regulation 218/2008
Feeder Associations Guarantee Act
FEEDER ASSOCIATIONS GUARANTEE AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 587/2008) 
on December 10, 2008 pursuant to section 5 of the Feeder Associations Guarantee 
Act. 
1   The Feeder Associations Guarantee Regulation 
(AR 75/98) is amended by this Regulation.
2   Section 3(2) is amended by striking out "brand inspected in 
accordance with the Livestock Identification and Brand Inspection 
Act" and substituting "inspected under the Livestock Identification 
and Commerce Act".

3   This Regulation comes into force on the coming into 
force of the Livestock Identification and Commerce Act.


--------------------------------
Alberta Regulation 219/2008
Livestock Diseases Act
LIVESTOCK MARKET AND LIVESTOCK ASSEMBLING STATION 
AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 589/2008) 
on December 10, 2008 pursuant to section 12 of the Livestock Diseases Act. 
1   The Livestock Market and Livestock Assembling Station 
Regulation (AR 70/2000) is amended by this Regulation.

2   Section 1 is amended
	(a)	in clause (c) by striking out "stock yard" and 
substituting "place";
	(b)	in clause (d) by striking out "stock yard" and 
substituting "place";
	(c)	in clause (e) by striking out "stock yard in accordance 
with the Stock Yard Regulation (AR 197/98)" and 
substituting "livestock market or livestock assembling 
station";
	(d)	by repealing clause (f).

3   This Regulation comes into force on the coming into 
force of the Livestock Identification and Commerce Act.



Alberta Regulation 220/2008
Stray Animals Act
HORSE CAPTURE AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 590/2008) 
on December 10, 2008 pursuant to section 35 of the Stray Animals Act. 
1   The Horse Capture Regulation (AR 59/94) is amended by 
this Regulation.

2   Section 12(1)(a) is amended by striking out ", electronic 
identification or vent, within the meaning of the Brand Act, or any 
other identifying mark specified in an order made by the Minister," 
and substituting "or other identifier as defined in the Livestock 
Identification and Commerce Act".

3   This Regulation comes into force on the coming into 
force of the Livestock Identification and Commerce Act.


--------------------------------
Alberta Regulation 221/2008
Mines and Minerals Act
NATURAL GAS ROYALTY REGULATION, 2009
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 593/2008) 
on December 10, 2008 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
Part 1 
General
	1	Interpretation
	2	Lessee's liability unaffected
	3	Application of Regulation
	4	Furnishing documents to the Minister
	5	Reporting standards
	6	Petroleum Registry of Alberta
	7	Prescribed prices, factors, deductions and allowances
Part 2 
Royalty
Division 1 
Determination of the Crown's Royalty Share
	8	Royalty share of natural gas, gas products and field condensate
	9	Royalty calculation point
	10	Special royalty O.C.
	11	Unit operations
	12	Proportionment of royalty liability
	13	When royalty not payable
	14	Royalty exemptions
Division 2 
Royalty Compensation
	15	Liability for royalty compensation
	16	Payment of royalty compensation
	17	Injection credits
	18	Allowable costs
	19	Deposits
Part 3 
Administration and Enforcement
	20	Well groups
	21	Royalty clients
	22	Responsibility for quantities available for sale
	23	Allocations of quantities available for sale
	24	Provisional royalty compensation
	25	Other reports
	26	Keeping of records
	27	Penalties
	28	Penalty following audit
	29	Interest
	30	Application of payments
	31	Audit of Department records
Part 4 
Consequential Amendments, 
Expiry and Coming into Force
	32	Amends AR 220/2002
	33	Amends AR 263/97
	34	Amends AR 288/99
	35	Expiry
	36	Coming into force
Schedule 1 
Natural Gas, Residue Gas and Solution Gas
	1	Interpretation
Royalty Share of Gas
	2	Calculation of royalty quantity for gas
	3	Calculation of C%
Royalty Compensation for Gas
	4	Aggregate Gas Reference Price
	5	Transportation Allowance
	6	Net Gas Reference Price
	7	Calculation of royalty compensation for gas
	8	Recalculation of royalty compensation for gas sold under long-term 
contracts
Schedule 2  
Methane and Ethane
	1	Definitions
Royalty Share of Methane and Ethane
	2	Calculation of royalty
	3	Calculation of rate for price
	4	Calculation of rate for quantity
	5	Calculation of the acid gas factor
	6	Calculation of the depth factor
Ethane Royalty Compensation
	7	Ethane Transportation Allowance
	8	Net Ethane Reference Price
	9	Ethane royalty compensation
Schedule 3  
Propane
	1	Propane royalty quantity
	2	Propane royalty compensation
Schedule 4  
Butanes
	1	Butanes royalty quantity
	2	Butanes royalty compensation
Schedule 5  
Pentanes Plus
	1	Pentanes plus royalty quantity
	2	Pentanes plus royalty compensation
Schedule 6  
Sulphur
	1	Definitions
	2	Sulphur royalty quantity
	3	Determination of royalty client's annual S-CAP
	4	Report of sulphur disposition
	5	Sulphur royalty compensation
Schedule 7  
Exemption for Otherwise Flared Solution Gas
	1	Interpretation
	2	Exemption for solution gas
Part 1 
General
Interpretation
1(1)  In this Regulation,
	(a)	"Act" means the Mines and Minerals Act;
	(b)	"allocation data" means owner allocation data or stream 
allocation data or both;
	(c)	"allowable costs" means costs and allowances for which the 
Crown is liable under section 18(2);
	(d)	"battery" means a pipeline or pipeline installation at which 
natural gas recovered from one or more wells is collected and 
measured prior to its delivery to another facility or into a 
pipeline;
	(e)	"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 or the 2002 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)	"cost of conservation gas" means the cost of conservation gas 
determined in accordance with section 7(5) of Schedule 1;
	(l)	"Crown lease" means an agreement granting petroleum and 
natural gas rights, natural gas rights, petroleum rights or oil 
sands rights;
	(m)	"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;
	(n)	"crude oil" means a mixture mainly of pentanes and heavier 
hydrocarbons
	(i)	that may be contaminated with sulphur compounds,
	(ii)	that is recovered or is recoverable at a well from an 
underground reservoir, and
	(iii)	that is liquid at the conditions under which its volume is 
measured or estimated, 
		and includes all other hydrocarbon mixtures so recovered or 
recoverable except natural gas, field condensate or crude 
bitumen;
	(o)	"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;
	(p)	"document" includes information transmitted electronically;
	(q)	"drilling spacing unit" means a drilling spacing unit 
prescribed or established pursuant to regulations under the 
Oil and Gas Conservation Act;
	(r)	"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;
	(s)	"field condensate" means products, other than gas products 
and oil sands products, obtained from natural gas or solution 
gas before it is delivered to a gathering system;
	(t)	"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;
	(u)	"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;
	(v)	"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;
	(w)	"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;
	(x)	"gathering" includes compressing by means of a compressor 
forming part of a gathering system;
	(y)	"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;
	(z)	"IETP costs" means allocable costs as defined in the 
Innovative Energy Technologies Regulation (AR 250/2004);
	(aa)	"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;
	(bb)	"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;
	(cc)	"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;
	(dd)	"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 or 
the 2002 Regulation in a designation that remains unrevoked;
	(ee)	"1994 Regulation" means the Natural Gas Royalty 
Regulation, 1994 (AR 351/93);
	(ff)	"oil sands product" means oil sands product as defined in the 
Oil Sands Royalty Regulation, 2009;
	(gg)	"operator", with reference to a well or facility, means the 
person who is the operator of the well or facility according to 
the records of the Department;
	(hh)	"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 23(3)(e)(ii);
	(ii)	"owner allocation factor" means an owner allocation factor 
referred to in section 23(3)(c) or (d);
	(jj)	"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;
	(kk)	"Petroleum Registry of Alberta" means the electronic 
information system administered by the Department and 
called the Petroleum Registry of Alberta;
	(ll)	"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;
	(mm)	"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;
	(nn)	"production entity" means
	(i)	a drilling spacing unit, to the extent that the drilling 
spacing unit 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;
	(oo)	"production month", in relation to any natural gas, gas 
product or field condensate, means the month in which it is 
recovered or obtained;
	(pp)	"propane" means, in addition to its normal scientific 
meaning, a mixture mainly of propane that ordinarily may 
contain some ethane or butanes;
	(qq)	"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;
	(rr)	"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;
	(ss)	"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;
	(tt)	"residue gas" means a gaseous mixture consisting primarily 
of methane and obtained as a separate product at a gas 
processing plant or reprocessing plant;
	(uu)	"royalty calculation point", in relation to any natural gas, gas 
product or field condensate, means the place determined 
under section 9 as the place at which the Crown's royalty 
share of the natural gas, gas product or field condensate is to 
be calculated;
	(vv)	"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 in section 24, a person who is deemed to be a 
royalty client in respect of those quantities by reason of 
(the operation) of section 24(1)(c) or (2)(c);
	(ww)	"royalty client account" means an account maintained for a 
royalty client pursuant to section 16(6);
	(xx)	"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 15;
	(yy)	"royalty invoice" means a monthly invoice issued and sent to 
a royalty client pursuant to section 16(1);
	(zz)	"solution gas" means
	(i)	gas that is separated from crude oil or crude bitumen 
after recovery from a well event,
	(ii)	gas that is dissolved in crude oil 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, and
	(iii)	gas that is dissolved in bitumen under initial reservoir 
conditions and includes any of that gas that evolves as a 
result of changes in pressure due to human disturbance
		but does not include gas produced through chemical 
alteration of crude bitumen using high temperature, high 
pressure, a catalyst or otherwise;
	(aaa)	"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 23(3)(e)(i);
	(bbb)	"stream allocation factor" means a stream allocation factor 
referred to in section 23(3)(a) or (b);
	(ccc)	"2002 Regulation" means the Natural Gas Royalty 
Regulation, 2002 (AR 220/2002);
	(ddd)	"unit area" means the unit area under a unit agreement or unit 
operation order;
	(eee)	"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;
	(fff)	"well group" means a well group referred to in section 20.
(2)  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.
(3)  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.
(4)  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.
(5)  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 is to be decided by the 
Minister.
(6)  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.
(7)  Where any question arises pertaining to the interpretation or 
application of this Regulation, the Minister is the sole judge of the 
question and there is no appeal from the Minister's decision.
Lessee's liability unaffected
2   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 royalty 
compensation to the Crown.
Application of Regulation
3(1)  This Regulation applies to royalty on natural gas recovered, and 
gas products and field condensate obtained on or after January 1, 2009.
(2)  This Regulation applies
	(a)	to solution gas as though it were natural gas, and
	(b)	except as provided in section 8(6) and (7), to products 
obtained from solution gas.
Furnishing documents to the Minister
4(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 is deemed to be furnished or the amount is 
deemed to be 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, where any document 
required or permitted to be furnished under this Regulation must be 
provided in a form required by the Minister, the document must
	(a)	contain complete and accurate information required by the 
form, and
	(b)	be completed in accordance with any general directions given 
by the Minister or any instructions shown in the form.
(3)  The Minister may refuse to accept a document that does not meet 
the requirements of subsection (2) and in that case the document is, for 
the purposes of this Regulation, deemed not to have been furnished.
Reporting standards
5(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 must 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 must 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 must be expressed as 
heat content in gigajoules to the nearest whole gigajoule;
	(d)	volumes of ethane, propane, butanes, pentanes plus and field 
condensate must be expressed in cubic metres to the nearest 
tenth of a cubic metre;
	(e)	volumes of in-stream components must be expressed in 
thousands of cubic metres, to 3 decimal places;
	(f)	quantities of in-stream components must be expressed as heat 
content in gigajoules, to 3 decimal places;
	(g)	quantities of sulphur must be expressed in tonnes to the 
nearest tenth of a tonne;
	(h)	prices of natural gas or residue gas must 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 
must 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 must 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 must be determined from a component analysis of the 
gas,
	(b)	the respective volumes of the in-stream components of the 
gas must 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) must 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 must 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 must be converted to the 
number of cubic metres the ethane would occupy in gaseous form at 
standard temperature and under standard pressure using the conversion 
factor for a month determined by the Minister.
(7)  For the purposes of calculating royalty on field condensate under 
this Regulation, volumes of natural gas in gaseous form must be 
converted to the number of cubic metres the field condensate would 
occupy in liquid form at standard temperature and under standard 
pressure using the conversion factor of 0.78783 103m3 of natural gas 
per cubic metre of field condensate.
Petroleum Registry of Alberta
6(1)  Subject to this section, where 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 25(4), (5) or (7),
	(d)	a report, the deadline for the furnishing of which occurs on or 
after January 1, 2009, or
	(e)	a report related to January, 2009 or any subsequent 
production month,
the allocation data, information or report must 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 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.
(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 January, 2009 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 are, subject to subsequent 
corrections, deemed to be 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
7(1)  The Minister shall, by order, prescribe an amount per gigajoule 
as the Gas Reference Price for January, 2009 and for each subsequent 
production month.
(2)  The Minister shall, by order, for January, 2009 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 January, 2009 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 January, 2009 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 ISC Reference Price, 
and
	(c)	an amount per gigajoule as the Propane ISC Adjusted 
Intra-Alberta Transportation Deduction.
(5)  The Minister shall, by order, for January, 2009 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 ISC Reference Price, 
and
	(c)	an amount per gigajoule as the Butanes ISC Adjusted 
Intra-Alberta Transportation Deduction.
(6)  The Minister shall, by order, for January, 2009 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 January, 2009 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 
(8),
	(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.
(8)  The Minister shall, by order, divide Alberta into regions for the 
purposes of subsection (7)(a).
(9)  The Minister may, by order, for January, 2009 and for each 
subsequent production month, prescribe a receipt meter station factor 
for a receipt meter station.
(10)  The Minister may, by order, for January, 2009 and for each 
subsequent production month, prescribe the following:
	(a)	an adjustment factor for the month for any well event 
completed in the interval from the top of the Wabiskaw 
member to the base of the McMurray Formation in the 
Athabasca Oil Sands Area;
	(b)	a quantity of conservation gas for the month for any well 
event perforated in the interval from the top of the Wabiskaw 
member to the base of the McMurray Formation in the 
Athabasca Oil Sands Area;
	(c)	an adjustment factor for the month for any well event 
completed in the interval from the top to the base of the 
Clearwater Formation in the Fisher and Moore fields in the 
Cold Lake Oil Sands Area;
	(d)	a quantity of conservation gas for the month for any well 
event perforated in the interval from the top to the base of the 
Clearwater Formation in the Fisher and Moore fields in the 
Cold Lake Oil Sands Area.
(11)  The Minister may, by order, designate or terminate the 
designation of any well event as a technical solution pilot well event.
(12)  The adjustment factor for a well event for a production month is 
deemed to be zero if
	(a)	the Minister does not prescribe an adjustment factor for the 
well event for the production month, or
	(b)	the well event is designated as a technical solution pilot well 
event.
(13)  For the purpose of subsection (10)(a) and (b), the Athabasca Oil 
Sands Area is the strata and area designated as the Athabasca Oil 
Sands Area by the Board pursuant to the Oil Sands Conservation Act 
as of October 1, 2004, and includes any pool that lies in whole or in 
part within that strata and area.
(14)  For the purpose of subsection (10)(c) and (d), the Cold Lake Oil 
Sands Area is the strata and area designated as the Cold Lake Oil 
Sands Area by the Board pursuant to the Oil Sands Conservation Act 
as of September 1, 2007, and includes any pool that lies in whole or in 
part within that strata and area.
Part 2  
Royalty
Division 1 
Determination of the Crown's  
Royalty Share
Royalty share of natural gas, gas products and field condensate
8(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, or
	(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 is 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 is 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 must 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) must 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 
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 must 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 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 
must 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 must 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 methane and ethane, the percentage of the 
methane and 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 obtained in 
a month from natural gas or solution gas recovered from a well event is 
to be determined in accordance with section 6 of the Petroleum 
Royalty Regulation, 2009 as though the field condensate were crude 
oil.
(7)  For the purposes of subsection (6), the royalty reserved to the 
Crown on field condensate is to be determined under the Schedule to 
the Petroleum Royalty Regulation, 2009 except that 
	(a) 	the par price to be used under section 3 of that Schedule is 
the Pentanes Plus Par Price for the month as prescribed under 
section 7(6)(b) of this Regulation, and  
	(b) 	the quantity to be used under section 4 of that Schedule is the 
sum of
	(i)	 the quantity of field condensate obtained in the month, 
and 
	(ii)	the quantity of natural gas or solution gas obtained from 
the well event in the month, converted to equivalent 
quantities of field condensate in accordance with section 
5(7).
(8)  The royalty reserved to the Crown on natural gas and gas products 
must be calculated with reference to natural gas and gas products that 
are quantities available for sale.
(9)  The royalty reserved to the Crown on natural gas, gas products and 
field condensate must be free and clear of all deductions.
Royalty calculation point
9   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 Crown's royalty share of natural gas referred to in section 
8(1) must 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 Crown's royalty share of pentanes plus referred to in 
section 8(2) must be calculated at the first point of 
measurement after the pentanes plus are delivered from the 
gathering system;
	(c)	the Crown's royalty share of residue gas and other gas 
products referred to in section 8(4)(a) must be calculated at 
the plant gate of the gas processing plant at which the residue 
gas and other gas products are obtained;
	(d)	the Crown's royalty share of residue gas referred to in section 
8(4)(b)(i) must be calculated at the plant gate of the last of 
the reprocessing plants referred to in that subclause;
	(e)	the Crown's royalty share of a gas product referred to in 
section 8(4)(b)(ii) must be calculated at the plant gate of the 
reprocessing plant at which the gas product is obtained;
	(f)	the Crown's royalty share of field condensate must be 
calculated at its first point of measurement after being 
obtained from natural gas or solution gas.
Special royalty O.C.
10   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 the natural gas 
obtained or any gas products recovered 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
11   When natural gas recovered pursuant to a Crown lease is subject 
to a unit agreement or unit operation order, the unit area is deemed to 
be a location for the purposes of determining the royalty rate 
applicable to the portion of the production allocated to any tract wholly 
or partly within the location of the Crown lease.
Proportionment of royalty liability
12   Liability for royalty payable to the Crown is determined by the 
Minister in accordance with section 26.1 of the Petroleum and Natural 
Gas Tenure Regulation (AR 263/97).
When royalty not payable
13(1)  No royalty is payable to the Crown,
	(a)	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, residue gas or solution gas consumed as a fuel 
in operations for the recovery or processing of oil sands or oil 
sands products 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 directs otherwise in any case, on solution 
gas consumed as a fuel in operations for the recovery or 
processing of oil sands or oil sands products that is subject to 
royalty under the Oil Sands Royalty Regulation, 2009, where 
the consumed solution gas and the oil sands or oil sands 
products recovered or processed in such operations are 
recovered pursuant to the same agreement;
	(d)	unless the Minister directs otherwise in any case, on any 
natural gas, residue gas or solution gas other than natural gas, 
residue gas or solution gas referred to in clause (b) or (c), 
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, residue gas or 
solution gas consumed in a month in accordance with clause (b) of that 
subsection,
	(a)	an amount equal to the royalty compensation that would be 
payable on the gas in the absence of subsection (1) must 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)  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.
(4)  Subsection (1)(b) ceases to apply to natural gas, residue gas and 
solution gas consumed in a commercial oil sands scheme on or after 
the date indicated in a notice given under subsection (3) as the 
effective date of withdrawal of the approval referred to in subsection 
(1)(b) in respect of the scheme.
(5)  If any natural gas, residue gas or solution gas that is subject to 
royalty is consumed as a fuel without having first been disposed of, 
then, unless the Minister directs otherwise, 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, residue gas or solution gas, be consumed for the same 
purpose.
Royalty exemptions
14   In accordance with and to the extent authorized under Schedule 7, 
otherwise flared solution gas is exempted from the payment of royalty 
to the Crown.
Division 2 
Royalty Compensation
Liability for royalty compensation
15(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), royalty 
compensation is payable to the Crown in accordance with this 
Regulation in respect of that royalty share.
(3)  Subject to this Regulation, the royalty compensation payable to the 
Crown under subsection (2) is an amount calculated
	(a)	in accordance with Schedule 1, with respect to natural gas, 
residue gas and solution gas;
	(b)	in accordance with Schedule 2, with respect to methane and 
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 a 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 in respect of the royalty share so 
transferred is an amount calculated by multiplying the 
quantity of the Crown's 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 
7(7)(a)(iii).
Payment of royalty compensation
16(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 royalty compensation payable 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 shall pay the amounts in 
accordance with the directions.
(5)  After the end of each year the Minister may, with respect to each 
royalty client,
	(a)	calculate, recalculate or make additional calculations of the 
actual quantities available for sale for all of the production 
months in that year that are allocated to the royalty client,
	(b)	calculate, recalculate or make additional calculations of the 
actual royalty compensation in respect of the Crown's royalty 
share of the quantities available for sale determined for the 
year pursuant to clause (a),
	(c)	if the aggregate amount of the actual royalty compensation 
determined for the year under clause (b) exceeds the 
aggregate of the amounts of royalty compensation 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 determined, and
	(d)	if the aggregate amount of the actual royalty compensation 
determined for the year under clause (b) is less than the 
aggregate of the amounts of royalty compensation 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 determined.
(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
17(1)  If natural gas or a gas product is injected during a production 
month after December 31, 2008 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 25(4) or (7) of a facility (in this 
section called the "reproducing facility") to which natural gas 
obtained, or gas products recovered, that may be recovered 
from the pool in that production month can be delivered, and
	(c)	the Minister is satisfied that natural gas recovered from the 
pool, or gas products obtained from that natural gas, 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 25(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 recovered from the pool, or gas products 
obtained from that natural gas, 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 well event 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 is 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.
(7)  In determining royalty compensation for the purposes of 
subsection (2)(b), no reduction shall be made in respect of the cost of 
conservation gas or in respect of IETP costs.
Allowable costs
18(1)  In this section, "facility" does not include a gas injection 
facility or commercial storage facility.
(2)  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
must, subject to this section, be deducted from the royalty 
compensation otherwise payable.
(3)  The Minister may determine the amount of the costs and 
allowances referred to in subsection (2) in respect of 2009 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 determined 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 
determined 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) exceeds 
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 15(3) in respect of that royalty 
client for that year.
(6)  The Minister may not consent under subsection (2) 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 2009 or 
any subsequent year shall 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 shall 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 shall, 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 2009 and each subsequent year 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.
(13)  If a facility commences operations in 2009 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 shall furnish to the Minister in respect of 2009 
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 costs 
allocated to it that arise in relation to its facility capital costs and its 
facility operating costs to one or more other royalty clients that
	(a)	are owners of that facility,
	(b)	own natural gas or gas products processed at that facility, or
	(c)	pay royalty compensation on behalf of an owner of that 
facility,
and if a reallocation is made, shall furnish to the Minister a report 
respecting the reallocation on or before May 15 following the year to 
which the reallocation relates.
Deposits
19(1)  A deposit made by a royalty client pursuant to section 18 of the 
1994 Regulation or section 21 of the 2002 Regulation and held by the 
Crown on January 1, 2009 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 January 1, 2009 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 1/6 of the 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, multiplied by a factor determined by 
dividing the long term Gas Reference Price on the date on which the 
recalculation occurs by the average of Gas Reference Prices for the 
previous year.
(4)  In estimating royalty compensation for the purposes of subsection 
(3), no reduction shall be made in respect of the cost of conservation 
gas or in respect of IETP costs.
(5)  For the purposes of subsection (3), 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 on 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.
(6)  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.
(7)  If the amount of a deposit is recalculated pursuant to subsection 
(6), 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 provided for in 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.
(8)  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.
(9)  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
20(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
21(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 23 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 23 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 3rd 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 23 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
22   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
23(1)  Unless the Minister directs otherwise 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)  Despite 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 the 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 each well event of all 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
24(1)  If a facility operator is responsible for allocating quantities 
available for sale pursuant to section 23 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 must be calculated in 
accordance with the following:
	(a)	the Crown's royalty share of the unallocated or excess 
quantities, as the case may be, is deemed to be 50% of those 
quantities in the case of natural gas, residue gas or ethane, 
40% of those quantities in the case of pentanes plus, 30% of 
those quantities in the case of butanes and propanes and 
16.66667% of those quantities in the case of sulphur;
	(b)	the provisional royalty compensation payable in respect of 
the Crown's royalty share of those quantities must 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)	the Propane Reference Price for the production month, 
where the quantities consist of propane,
	(iv)	the Butanes Reference Price for the production month, 
where the quantities consist of butanes,
	(v)	the Pentanes Plus Reference Price for the production 
month, where the quantities consist of
	(A)	pentanes plus, or
	(B)	a mixture comprising any 2 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,
			or
	(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 calculated under clause (b) 
shall not be reduced by an amount for allowable costs.
(4)  The price referred to in subsection (3)(b)(vi) must 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,
by
	(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 23 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 must 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 
shall refund any interest received by it under section 29(2)(a) in respect 
of those amounts to the extent those amounts are so reduced.
(8)  Despite section 29, 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 29(2)(b) in 
respect of the provisional royalty compensation to the extent it is so 
reduced.
Other reports
25(1)  The operator of a gas injection facility shall furnish to the 
Minister a report respecting
	(a)	the commencement of the operation of the gas injection 
facility, if the operation commences on or after January 1, 
2009, 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 natural gas or a gas product 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 shall furnish information to 
the Minister indicating, for the purposes of section 17(4),
	(a)	the reproducing facility referred to in section 17 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) must 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 January 1, 2009.
(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 January, 2009 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 with a component analysis of the 
natural gas that is the subject of each disposition.
(9)  Where natural gas or residue gas is delivered in January, 2009 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 January, 2009 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
26(1)  A person who is or was required or permitted by this 
Regulation, the 1994 Regulation or the 2002 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
27(1)  A person who is required to furnish a report to the Minister 
under section 18(12) 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, to a maximum of $600.
(2)  Despite subsection (1), where
	(a)	a person who is required to furnish a report to the Minister 
under section 18(12) 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 the 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 furnishes a report to the Minister under section 
18(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, to a maximum of $600.
(5)  Despite subsection (4), where
	(a)	a person who is required to furnish a report to the Minister 
under section 18(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,
	(b)	the penalty under subsection (4) 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.
(6)  A person who is required to furnish a report to the Minister under 
section 25(2) or under section 8(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.
(7)  A person who is required to furnish a report to the Minister 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.
(8)  The Minister may waive, in whole or in part, a penalty imposed 
under this section on being satisfied that it is appropriate to do so in the 
circumstances.
Penalty following audit
28(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 2009 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
29(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 calculation, 
additional calculation or 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)	interest shall not be computed and payable under subsection 
(2)(a) or (3) on the portion of an underpayment or 
overpayment of royalty compensation, as the case may be, 
resulting from the determination made under section 
18(4)(b), but must be computed and payable on any 
subsequent determination made under that section from the 
date of the initial determination,
	(c)	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
	(d)	interest computed under subsection (2) or (3) must, unless the 
Minister directs otherwise, be compounded monthly in 
respect of the period for which it is computed.
Application of payments
30   Unless the Minister directs otherwise, if money is paid to the 
credit of a royalty client's royalty client account, the money must 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 
19(7)(b) to increase a deposit maintained by the royalty 
client;
	(e)	5th, on royalty compensation owing by the royalty client.
Audit of Department records
31(1)  The Minister may enter into a contract or arrangement with one 
or more organizations representative of the oil and gas industry in 
Alberta providing for the following:
	(a)	the appointment by those organizations of an independent 
auditor to conduct an audit or examination under this section;
	(b)	the conducting by the independent auditor from time to time 
of audits or examinations of records of the Department and 
the Alberta Petroleum Marketing Commission to the extent 
that they relate to the method and calculations by which the 
Minister determines any amount prescribed under section 
7(1) to (6), (7) or (9), the method and calculations by which 
allowable costs are determined by the Minister or the method 
and calculations by which any other amounts are determined 
by the Minister under this Regulation;
	(c)	the matters arising out of an audit or examination on which 
the auditor may report to the organization or organizations 
and the Minister;
	(d)	the disclosure by the Minister of matters reported to the 
Minister under clause (c) to any other organization that
	(i)	is determined by the Minister to have a legitimate 
interest in those matters, and
	(ii)	has paid or agrees to pay to the organization or 
organizations appointing the auditor, the amount 
specified by the Minister.
(2)  The costs of an audit or examination referred to in subsection (1) 
shall be paid by the organization or organizations that appointed the 
auditor.
(3)  Information obtained by the Minister under this Regulation may be 
communicated, disclosed or otherwise made available to the auditor if 
the information
	(a)	relates to the manner in which amounts referred to in 
subsection (1)(b) were determined before being prescribed, 
and
	(b)	is communicated, disclosed or made available in accordance 
with the contract or arrangement.
(4)  Information obtained from the Minister by an auditor pursuant to 
subsection (3)
	(a)	must be held by the auditor in confidence and must not be 
further communicated, disclosed or made available by the 
auditor in any circumstances where it is possible to relate that 
information to any particular identifiable person, gas 
contract, well, pipeline or facility at which natural gas or gas 
products are used or stored inside or outside Alberta, and
	(b)	subject to clause (a), may be used by the auditor for the 
purpose of preparing a report to the organization or 
organizations that appointed the auditor if the information is 
used in accordance with that contract or arrangement.
Part 4  
Consequential Amendments, 
Expiry and Coming into Force
Amends AR 220/2002
32(1)   The Natural Gas Royalty Regulation, 2002 
(AR 220/2002) is amended by this section.
(2)  Section 5(1) is amended
	(a)	in clause (d) by adding "and before January 1, 2009" 
after "October 31, 2002";
	(b)	in clause (e) 
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month".
(3)  Section 6 is amended
	(a)	in subsection (1)
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(b)	in subsection (2)
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(c)	in subsection (3)
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(d)	in subsection (4)
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(e)	in subsection (5)
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(f)	in subsection (6)
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(g)	in subsection (7) by adding "up to and including 2008" 
after "subsequent year";
	(h)	in subsection (8) by adding "up to and including 2008" 
after "subsequent year";
	(i)	in subsection (9) 
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(j)	in subsection (11) 
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(k)	in subsection (12)
	(i)	by striking out "October, 2004" and substituting 
"October 2004";
	(ii)	by adding "up to and including December 2008" after 
"production month".
(4)  Section 9(1) is amended 
	(a)	by striking out "October, 2002" and substituting 
"October 2002";
	(b)	by adding "up to and including December 2008" after 
"production months".
(5)  Section 19 is amended by adding "up to and including 
December 2008" after "a production month" wherever it occurs.
(6)  Section 20 is amended
	(a)	by adding the following after subsection (2):
(2.1)  Subsections (3) to (15) do not apply in respect of 2009 and 
subsequent years.
	(b)	in subsection (3) by adding "up to and including 2008" 
after "in respect of 2002 and each subsequent year".
(7)  Section 21(2) is amended by adding "up to and including 
January 1, 2009" after "October 1, 2002".
(8)  Section 27 is amended
	(a)	in subsection (1)(a) by adding "and before January 1, 
2009" after "October 1, 2002";
	(b)	in subsection (2) by adding "up to and including 
"December 2008" after "following each production month";
	(c)	in subsection (6) by adding "and before January 1, 
2009" after "October 1, 2002";
	(d)	in subsection (8) 
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month";
	(e)	in subsection (9) 
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month" wherever it occurs;
	(f)	in subsection (10)(a)
	(i)	by striking out "October, 2002" and substituting 
"October 2002";
	(ii)	by adding "up to and including December 2008" after 
"production month".
(9)  Section 30(1) is amended by adding "up to and including 
2008" after "subsequent year".
(10)  Section 31 is amended
	(a)	in subsection (2)(a)(ii) by adding "under this Regulation 
or under section 16(1) of the Natural Gas Royalty 
Regulation, 2009" after "issued";
	(b)	in subsection (3)(b) by adding "under this Regulation or 
under section 16(1) of the Natural Gas Royalty Regulation, 
2009" after "issued".
(11)  The following is added after section 36:
Expiry
37   This Regulation expires on June 30, 2014.
(12)  Schedule 1 is amended
	(a)	in section 8(5) by adding "up to and including 2008" 
after "succeeding years";
	(b)	in section 9(2) by adding "up to and including 2008" 
after "subsequent year";
	(c)	in section 10(1) by adding "up to and including 2008" 
after "production year".
(13)  Schedule 6 is amended
	(a)	in section 3(1) by adding "up to and including 2008" 
after "subsequent year";
	(b)	in section 4(1), (2) and (4) by adding "up to and 
including 2008" after "subsequent year".
(14)  Schedule 8 is amended
	(a)	in section 3(1)
	(i)	in clause (d)(i) by striking out "April 1, 2010" and 
substituting "January 1, 2009";
	(ii)	in clause (g.1)(i) by striking out "and on or before 
August 31, 2011" and substituting "and before 
January 1, 2009";
	(iii)	in clause (j)(i) by adding "and both the eligible well 
and the qualified well must be spudded before January 
1, 2009" after "in the case of a qualified well";
	(b)	in section 5 
	(i)	in subsection (1.1)
	(A)	in clause (a) by striking out "April 1, 2012, 
and" and substituting "January 1, 2009";
	(B)	by repealing clause (b);
	(ii)	in subsection (6) by adding "or beginning January 
1, 2009" after "deepening";
	(c)	in section 6
	(i)	in subsection (2.1) 
	(A)	in clause (a) by striking out "April 1, 2012, 
and" and substituting "January 1, 2009";
	(B)	by repealing clause (b);
	(ii)	in subsection (3) by adding "or after December 31, 
2008, whichever occurs first" after "deepening";
	(d)	in section 10
	(i)	in subsection (2) by adding "before January 1, 
2009" after "qualified well";
	(ii)	in subsection (6) by adding "or after December 31, 
2008, whichever occurs first" after "deepening";
	(e)	in section 11
	(i)	in subsection (3) by adding "before January 1, 
2009" after "qualified well";
	(ii)	in subsection (4) by adding "or after December 31, 
2008, whichever occurs first" after "deepening".
Amends AR 263/97
33   The Petroleum and Natural Gas Tenure Regulation 
(AR 263/97) is amended in section 23(2)(b) by striking out 
"or the Natural Gas Royalty Regulation, 2002" and substituting 
", the Natural Gas Royalty Regulation, 2002 or the Natural Gas 
Royalty Regulation, 2009".
Amends AR 288/99
34   The Regulations Act Regulation (AR 288/99) is amended 
by repealing section 17(1)(r) and substituting the following:
	(r)	all orders of the Minister under section 6 of the Natural Gas 
Royalty Regulation, 2002 (AR 220/2002) and section 7 of the 
Natural Gas Royalty Regulation, 2009;
Expiry
35   For the purpose of ensuring that this Regulation is reviewed, with 
the option that it may be repassed in its present or an amended form 
following a review, this Regulation expires on November 30, 2018.
Coming into force
36   This Regulation comes into force on January 1, 2009.
Schedule 1  
 
Natural Gas, Residue Gas and Solution Gas
Interpretation
1(1)  In this Schedule,
	(a)	"gas" means natural gas, residue gas or solution gas;
	(b)	"receipt meter station factor" means, in respect of a receipt 
meter station for a production month, the meter station factor 
prescribed for the receipt meter station under section 7(9) of 
this Regulation for the month or, if no meter station factor 
has been so prescribed for the receipt meter station for the 
month, 1.0.
(2)  For the purposes of this Schedule, references to methane ISC, 
ethane ISC, propane ISC, butanes ISC and pentanes plus ISC in 
relation to any gas shall be read as the methane, ethane, propane, 
butanes and pentanes plus components respectively of that gas.
Royalty Share of Gas
Calculation of royalty quantity for gas
2   The royalty reserved to the Crown on gas in respect of a production 
month is the percentage of the gas recovered or obtained in that 
production month calculated in accordance with the following formula:
GR% =[MR%(MQ)+ER%(EQ)+30%(PQ)+30%(BQ)+40%(PPQ)] + [C% x AF]
MQ + EQ + PQ + BQ + PPQ
where
	GR% 	is the Crown's royalty share of the gas expressed as a 
percentage of the gas on which the royalty is payable;
	MR%	is the percentage calculated under Schedule 2 for 
methane;
	ER% 	is the percentage calculated under Schedule 2 for 
ethane;
	C% 	is the percentage determined in accordance with section 
3 with respect to the well event from which the gas is 
recovered;
	AF 	is the adjustment factor for the well event prescribed or 
determined pursuant to section 7(10)(a) or (c) or (12) of 
this Regulation;
MQ, EQ, PQ, BQ and PPQ are the quantities of methane ISC, 
ethane ISC, propane ISC, butanes ISC and pentanes plus ISC, 
respectively, contained in the gas.
Calculation of C% 
3(1)  Subject to subsection (2), C% for a production month for each 
well event completed in the same pool is the percentage specified in 
column 2 of the Table following this section that corresponds to the 
number of months set out in the Table that have expired from and after 
the earliest production month during which
	(a)	production from any of those well events is shut in pursuant 
to an order or other decision of the Board requiring 
production from the well event to be shut in, or
	(b)	any of those well events that never commenced production 
due to an order or other decision of the Board precluding the 
recovery of the production from the well event are completed 
in the interval referred to in section 7(10)(a) or (c) of this 
Regulation
to and including the month immediately preceding the first production 
month in a period of at least 2 consecutive production months for 
which the Minister does not prescribe a quantity of conservation gas 
pursuant to section 7(10)(b) or (d) of this Regulation for a well event 
that was completed in that pool, where the Minister has prescribed a 
quantity of conservation gas for such a well event for one or more 
production months preceding that first production month.
(2)  For production months following the production month in which 
the total royalty compensation received for the additional royalty share 
payable by virtue of the [C% x AF] component of the formula in 
section 2 of this Schedule equals the total cost of conservation gas 
calculated under section 7(5) of Schedule 1 of the 2002 Regulation and 
section 7(5) of this Schedule for all royalty clients, C% is zero (0%) 
for all well events.
             Table
Column 1 
Months Expired
Column 2 
C%
12 to 23 months
1%
24 to 35 months
2%
36 to 47 months
3%
48 to 59 months
4%
60 to 71 months
5%
72 to 83 months
6%
84 to 95 months
7%
96 to 107 months
8%
108 to 119 months
9%
120 months or more
10%
Royalty Compensation for Gas
Aggregate Gas Reference Price
4   For the purposes of this Schedule, the Aggregate Gas Reference 
Price for any gas for a production month is the amount determined in 
accordance with the following formula:
AGRP = MRP(MQ)+ERP(EQ)+PRP(PQ)+BRP(BQ)+PPRP(PPQ)
MQ + EQ + PQ + BQ+ PPQ
where
	AGRP  	is the Aggregate Gas Reference Price for the gas for the 
month;
MRP, ERP, PRP, BRP and PPRP are the respective ISC 
reference prices prescribed for the production month under 
section 7 of this Regulation;
MQ, EQ, PQ, BQ and PPQ are the quantities of methane ISC, 
ethane ISC, propane ISC, butanes ISC and pentanes plus ISC, 
respectively, contained in the gas.
Transportation Allowance
5(1)  For the purposes of this Schedule, the Transportation Allowance 
for any gas for a production month is the amount determined in 
accordance with the following formula:
TA = (RTF - 1) D
where
	TA	is the Transportation Allowance for the gas for the 
production month, which may be a positive or negative 
amount or zero;
	RTF	is the royalty trigger factor determined in accordance with 
subsection (2) for the production month for the royalty 
calculation point for the gas;
	D 	is the adjusted intra-Alberta transportation deduction 
determined in accordance with subsection (3) for the 
production month.
(2)  For the purposes of subsection (1), the royalty trigger factor for a 
production month for the royalty calculation point for any gas is
	(a)	the receipt meter station factor for the receipt meter station 
for the month if the gas can only be delivered into a single 
pipeline through a single receipt meter station, or
	(b)	if the gas can be delivered into one or more pipelines through 
more than one receipt meter station, the amount determined 
by rounding to the nearest hundredth the amount determined 
by
	(i)	multiplying the quantity of gas delivered to each receipt 
meter station from that royalty calculation point during 
the month by its receipt meter station factor,
	(ii)	determining the aggregate of the amounts calculated 
under subclause (i), and
	(iii)	dividing the aggregate amount determined under 
subclause (ii) by the total quantity of gas delivered to all 
those receipt meter stations from that royalty calculation 
point in that production month.
(3)  For the purposes of subsection (1), the adjusted intra-Alberta 
transportation deduction for a production month for the royalty 
calculation point for any gas is the amount determined in accordance 
with the following formula:
D = MD(MQ) + ED(EQ) + PD(PQ) +  BD(BQ) + PPD(PPQ)
MQ + EQ + PQ + BQ + PPQ
where
	D  	is the adjusted intra-Alberta transportation deduction for the 
production month for the royalty calculation point for that 
gas; 
MD, ED, PD, BD and PPD are the Methane ISC Adjusted 
Intra-Alberta Transportation Deduction, Ethane ISC Adjusted 
Intra-Alberta Transportation Deduction, Propane ISC Adjusted 
Intra-Alberta Transportation Deduction, Butanes ISC Adjusted 
Intra-Alberta Transportation Deduction and Pentanes Plus ISC 
Adjusted Intra-Alberta Transportation Deduction, respectively, for 
the production month;
MQ, EQ, PQ, BQ and PPQ are the quantities of methane ISC, 
ethane ISC, propane ISC, butanes ISC and pentanes plus ISC, 
respectively, contained in the gas.
Net Gas Reference Price
6   For the purposes of this Schedule, the Net Gas Reference Price in 
respect of the Crown's royalty share of any gas for a production month 
is
	(a)	the Aggregate Gas Reference Price for the gas for the 
production month
minus
	(b)	the Transportation Allowance for the gas for the production 
month.
Calculation of royalty compensation for gas
7(1)  Subject to subsections (2), (3) and (4), the royalty compensation 
for a production month is an amount calculated by multiplying the 
quantity of the Crown's royalty share of gas in the production month 
by the Net Gas Reference Price for the gas for that production month 
and by subsequently reducing the amount so calculated to an amount 
not less than zero by subtracting firstly, the cost of conservation gas of 
the royalty client for the production month, and secondly, any IETP 
costs established and allocated to the royalty client in the month 
following the production month.
(2)  If natural gas is
	(a)	consumed as a fuel, or delivered from a gathering system to a 
mainline straddle plant, in a production month without 
having first been processed at a gas processing plant or 
reprocessing plant, or
	(b)	disposed of in a production month without having first been 
processed at a gas processing plant or reprocessing plant and 
subsequently processed,
and royalty compensation on that natural gas would in the absence of 
this subsection be calculated in accordance with subsection (1), then, 
unless the Minister otherwise determines in a particular case, the 
royalty compensation is an amount calculated by multiplying the 
quantity of the royalty share by 80% of the Gas Reference Price for 
that production month.
(3)  Subject to subsection (2), if
	(a)	natural gas is removed from Alberta in a production month 
without having first been processed at a gas processing plant 
or reprocessing plant, and is subsequently processed, and
	(b)	royalty compensation on that natural gas would in the 
absence of this subsection be calculated in accordance with 
subsection (1),
then, unless the Minister otherwise determines in a particular case, the 
royalty compensation is 80% of the amount that would, in the absence 
of this subsection, be calculated as the royalty compensation under 
subsection (1) before that amount is reduced by the cost of 
conservation gas or by any IETP costs.
(4)  Where
	(a)	gas is delivered pursuant to a contract under which the total 
consideration for sale of the gas is paid on or before the date 
of commencement of deliveries of gas under the contract, and
	(b)	the Minister determines that the contract is a prepayment 
contract for the purposes of this section and that subsection 
(2) does not apply to the gas,
the royalty compensation payable on the gas delivered under the 
prepayment contract shall be calculated in accordance with subsection 
(1) without any reduction in respect of the cost of conservation gas or 
in respect of any IETP costs.
(5)  The cost of conservation gas of a royalty client for a production 
month shall be determined in accordance with the following formula:
C = .5 [(SQ x .8) (GRP - $.3791 per GJ)]
where
	C  	is the cost of the conservation gas of the royalty client for the 
production month;
	SQ	is the aggregate of the quantities of conservation gas 
prescribed pursuant to section 7(10)(b) or (d) of this 
Regulation for the production month for all the well events 
for which the royalty client is, during the month, the operator 
according to the records of the Department;
	GRP	is the Gas Reference Price prescribed for the production 
month under section 7(1) of this Regulation.
Recalculation of royalty compensation for gas sold under long-term 
contracts
8(1)  Despite anything in this Schedule, the Minister may, in 
accordance with this section, recalculate the royalty compensation on 
natural gas and residue gas sold under a long-term contract during the 
whole of 2009 and each subsequent production year if
	(a)	an application was made under section 7 of Schedule 1 of the 
1994 Regulation to have that section apply to the long-term 
contract, and
	(b)	the Minister approved the application.
(2)  This section applies to a contract referred to in subsection (1) in 
respect of the remainder of the period of years specified by the 
Minister pursuant to section 7(3) of Schedule 1 of the 1994 Regulation.
(3)  In respect of each year to which this section applies to a contract 
by reason of subsection (2), the Minister shall, after the end of the 
year,
	(a)	recalculate the royalty compensation on natural gas and 
residue gas sold under the contract in that year by 
multiplying the quantity of the gas royalty for the year by the 
price payable to the seller for gas sold under the contract in 
that year, and
	(b)	compute the amount by which the royalty compensation 
payable under section 7(1) and (2) exceeds or is exceeded by 
the royalty compensation recalculated under clause (a) and 
have the difference reflected in the royalty client account of 
the royalty client.
(4)  If this section applies to a contract in respect of a year, the royalty 
client concerned shall furnish to the Minister a report respecting the 
prices of natural gas and residue gas sold under the contract in the 
preceding year on or before March 31 of the next year.
Schedule 2  
 
Methane and Ethane
Definitions
1(1)  In this Schedule,
	(a)	"ADP" or "average daily production" means the volume of 
natural gas recovered in a month from a well event in 103m3 
divided by the number of hours of operation of the well event 
in the production month and multiplied by 24; 
	(b)	"AGF" or "acid gas factor" is determined under section 5 of 
this Schedule;
	(c)	"DF" or "depth factor" is determined under section 6 of this 
Schedule;
	(d)	"drain" is a well event that is given a status of a drain, 
according to the records of the Board, but that contributes to 
the production of natural gas from the well that contains the 
drain;
	(e)	"kick-off point" means each deviation or branch of a 
wellbore or leg according to the records of the Board;
	(f)	"par price" means the par price for methane and ethane 
prescribed under section 7 of this Regulation;
	(g)	"quantity" means the monthly production in 103m3 of natural 
gas recovered from a well event according to the records of 
the Board.
Royalty Share of Methane and Ethane
Calculation of royalty
2(1)  Subject to subsection (2), the royalty reserved to the Crown on 
methane and ethane in respect of a production month is the percentage 
of the methane and ethane recovered or obtained in that production 
month calculated in accordance with the following formula:
R% = rp% + rq%
where
	R%	is the Crown's royalty share of the methane or ethane 
expressed as a percentage of the methane or ethane on which 
the royalty is payable;
	rp%	is the rate for price calculated pursuant to section 3 in 
relation to the methane or ethane; 
	rq%	is the rate for quantity calculated pursuant to section 4 in 
relation to the methane or ethane.
(2)  Despite sections 3 and 4 of this Schedule, if R% for the purposes 
of subsection (1) is
	(a)	less than 5%, R% is 5%, or
	(b)	more than 50%, R% is 50%.
(3)  For the purposes of Schedule 1, R% determined for methane shall 
be expressed as MR%, and R% determined for ethane shall be 
expressed as ER%
Calculation of rate for price
3(1)  The rp% is calculated in accordance with the following Table:
Rate for Price Table
Par Price
Formula
par price greater than zero 
and less than or equal to 
$7.00/GJ
rp% = [(par price - 4.50) x 0.0450] x 
100
par price greater than 
$7.00/GJ and less than or 
equal to $11.00/GJ
rp% = [(par price - 7.00) x 0.0300 + 
0.1125] x 100
par price greater than 
$11.00/GJ
rp% = [(par price - 11.00) x 0.0100 + 
0.2325] x 100
(2)  Where rp% calculated under subsection (1) exceeds 30%, rp% is 
deemed to be 30%.
(3)  The rp%, determined in accordance with this section, may be less 
than or equal to 0%.
Calculation of rate for quantity 
4(1)  The rq% is calculated in accordance with the following Table:
Rate for Quantity Table
Quantity
Formula
ADP greater than zero and less 
than or equal to [ 6.0 103m3/day 
x DF]
rq% = [(ADP - ( 4.0  x DF)) x 
(0.0500/DF)] x 100
[6.0 103m3/day x DF] greater 
than ADP and less than or 
equal to [ 11.0 103m3/day x 
DF]
rq% = {[ADP - (6 .0 x DF)]  x 
(0.0300/DF) + 0.1000} x 100
ADP greater than [ 11.0 
103m3/day x DF]
rq% = {[ADP - (11.0  x DF)] x 
(0.0100/DF) + 0.25000} x 100
(2)  Where rq% calculated under subsection (1) exceeds 30%, rq% is 
deemed to be 30%.
(3)  rq%, determined in accordance with this section, may be less than 
or equal to 0%.
(4)  For the purposes of this section, ADP for solution gas only is the 
sum of
	(a)	the volumes of crude oil in cubic metres recovered in a 
month from the well event that is converted to volumes of 
natural gas in 103m3 that the crude oil would occupy in 
gaseous form at standard temperature and under standard 
pressure, and
	(b)	the total volume of natural gas recovered in a month from 
that well event in 103m3 
divided by the number of hours of operation of the well event in the 
production month and multiplied by 24.
(5)  The conversion factor used to convert crude oil to natural gas in 
subsection (4) is 1.0686 103m3 natural gas per cubic metre of crude oil. 
Calculation of the acid gas factor
5(1)  If, according to the records of the Board, the percentage of the 
natural gas recovered from a well event starting on January 1, 2009 
production month, that is comprised of hydrogen sulphide and carbon 
dioxide exceeds 3% but is equal to or below 25% of the natural gas by 
volume, ADP for a well event is adjusted by multiplying ADP by AGF 
determined by using the formula:
AGF = 1.03-(H2S% + CO2%) 
where
	AGF	 is the acid gas factor;
	H2S%	is the percentage of the natural gas that is, according to the 
records of the Board, composed of hydrogen sulphide;
	CO2%	is the percentage of the natural gas that is, according to the 
records of the Board, composed of carbon dioxide.
(2)  If the AGF is
	(a)	less than 0.78, the AGF is deemed to be 0.78, and
	(b)	more than 1.00, the AGF is deemed to be 1.00.
(3)  If the Board has no records as described in subsection (1), the AGF 
is deemed to be 1.00
Calculation of the depth factor
6(1)  For the purposes of section 4 of this Schedule, DF for a well 
event for a production month is
	(a)	one, in the case of a well event for which the measured depth 
is less than or equal to 2000 metres or for which a measured 
depth is not indicated in the Registry,
	(b)	the square of the quotient of the measured depth of the well 
event divided by 2000 metres, in the case of a well event for 
which the measured depth is greater than 2000 metres and 
less than 4000 metres, and
	(c)	4, in the case of a well event for which the measured depth is 
greater than or equal to 4000 metres.
(2)  For the purposes of subsection (1), and according to the records of 
the Board,
	(a)	for a well containing one or more well events and no drains, 
the measured depth for each well event in the well is the 
longest distance, in metres, along the bore of the well from 
the kelly bushing of the well containing the well event to the 
base of the zone from which that well event is producing,
	(b)	for  a well containing one well event and one or more drains, 
the measured depth for that well event is the sum of
	(i)	the length, in metres, of the well event, from the kelly 
bushing of the well containing the well event to the base 
of the zone from which the well event is producing, and
	(ii)	the sum of the lengths, in metres, of all the drains in the 
well containing the well event, from the kick-off point 
of each drain to the base of the zone from which that 
drain is producing, 
		or
	(c)	for a well not described in clause (a) or (b), the measured 
depth may be determined by the Minister.
Ethane Royalty Compensation
Ethane Transportation Allowance
7(1)  For the purposes of this Schedule, the Transportation Allowance 
for any ethane for a production month is the amount determined in 
accordance with the following formula:
TA = (RTF   1) D
where
	TA	is the Transportation Allowance for the ethane for the 
production month, which may be a positive or negative 
amount or zero;
	RTF	is the royalty trigger factor determined in accordance with 
subsection (2) for the production month for the royalty 
calculation point for the ethane;
	D	is the Ethane ISC Adjusted Intra Alberta Transportation 
Deduction for ethane for the production month.
(2)  For the purposes of subsection (1), the royalty trigger factor for a 
production month for the royalty calculation point for any ethane is
	(a)	if the gas obtained at the same gas processing plant or 
reprocessing plant as the ethane can only be delivered into a 
single pipeline through a single receipt meter station, the 
receipt meter station factor for the receipt meter station for 
the month, or
	(b)	if the gas obtained at the same gas processing plant or 
reprocessing plant as the ethane can be delivered into one or 
more pipelines through more than one receipt meter station, 
the amount determined by rounding to the nearest hundredth, 
the amount determined by
	(i)	multiplying the quantity of gas delivered to each receipt 
meter station from that royalty calculation point in the 
production month by its receipt meter station factor,
	(ii)	determining the aggregate of the amounts calculated 
under subclause (i), and
	(iii)	dividing the aggregate amount determined under 
subclause (ii) by the total quantity of gas delivered to all 
those receipt meter stations from that royalty calculation 
point in the production month.
Net Ethane Reference Price
8   For the purpose of this Schedule, the Net Ethane Reference Price in 
respect of the Crown's royalty share of any ethane for a production 
month is
	(a)	the Ethane Reference Price for the production month
minus
	(b)	the Transportation Allowance for the ethane for the 
production month.
Ethane royalty compensation
9(1)  Subject to subsection (2), the amount of royalty compensation on 
ethane for a production month is an amount calculated by multiplying 
the quantity of the royalty share by the Net Ethane Reference Price for 
that production month.
(2)  Where
	(a)	ethane is delivered pursuant to a contract under which the 
total consideration for sale of the ethane is paid on or before 
the date of commencement of deliveries of ethane under the 
contract, and
	(b)	the Minister determines that the contract is a prepayment 
contract for the purposes of this section,
the royalty compensation payable in respect of the Crown's royalty 
share of the ethane delivered under the prepayment contract shall be 
calculated in accordance with subsection (1).
Schedule 3  
 
Propane
Propane royalty quantity
1   The royalty reserved to the Crown on propane obtained in a 
production month is 30%.
Propane royalty compensation
2(1)  The amount of royalty compensation on propane for a production 
month is an amount calculated by multiplying the quantity of the 
royalty share in cubic metres by the Net Propane Reference Price for 
that production month.
(2)  For the purposes of this section, the Net Propane Reference Price 
for a production month is the Propane Reference Price for the 
production month minus the aggregate of the following:
	(a)	the Transportation Allowance applicable to the propane, 
prescribed for the production month pursuant to section 
7(7)(a) of this Regulation for the region in which is located 
the gas processing plant or reprocessing plant at which the 
propane is obtained;
	(b)	the Fractionation Allowance for the production month, if 
applicable.
Schedule 4  
 
Butanes
Butanes royalty quantity
1   The royalty reserved to the Crown on butanes obtained in a 
production month is 30%.
Butanes royalty compensation
2(1)  The amount of royalty compensation on butanes for a production 
month is an amount calculated by multiplying the quantity of the 
royalty share in cubic metres by the Net Butanes Reference Price for 
that production month.
(2)  For the purposes of this section, the Net Butanes Reference Price 
for a production month is the Butanes Reference Price for the 
production month minus the aggregate of the following:
	(a)	the Transportation Allowance applicable to the butanes, 
prescribed for the production month pursuant to section 
7(7)(a) of this Regulation for the region in which is located 
the gas processing plant or reprocessing plant at which the 
butanes are obtained;
	(b)	the Fractionation Allowance for the production month, if 
applicable.
Schedule 5  
 
Pentanes Plus
Pentanes plus royalty quantity
1   The royalty reserved to the Crown on pentanes plus obtained in a 
production month is 40%.
Pentanes plus royalty compensation
2(1)  The amount of royalty compensation on pentanes plus for a 
production month is an amount calculated by multiplying the quantity 
of the royalty share in cubic metres by the Net Pentanes Plus 
Reference Price for that production month.
(2)  For the purposes of this section, the Net Pentanes Plus Reference 
Price for a production month is the Pentanes Plus Reference Price for 
the production month minus the aggregate of the following:
	(a)	the Transportation Allowance applicable to the pentanes plus, 
prescribed for the production month pursuant to section 
7(7)(a) of this Regulation for the region in which is located 
the gas processing plant or reprocessing plant at which the 
pentanes plus are obtained;
	(b)	the Fractionation Allowance for the production month, if 
applicable.
Schedule 6  
 
Sulphur
Definitions
1   In this Schedule,
	(a)	"corporate average price for sulphur" or "S-CAP", in relation 
to a royalty client and a year, is the corporate average price 
for sulphur established for that royalty client for that year 
pursuant to section 3 of this Schedule;
	(b)	"Sulphur Default Price", in relation to a year, is the price 
determined from time to time by the Minister for the year 
pursuant to section 5 of this Schedule.
Sulphur royalty quantity
2   The royalty reserved to the Crown on sulphur obtained by 
processing natural gas is 16.66667% of the sulphur obtained.
Determination of royalty client's annual S-CAP
3(1)  Subject to this section, a royalty client shall determine the 
client's corporate average price for sulphur for 2009 and each 
subsequent year if
	(a)	the royalty client is required to furnish a report under section 
4(4) of this Schedule, or elects to furnish a report under 
section 4(5) of this Schedule, in respect of the year, and
	(b)	the quantity of sulphur disposed of by the client in the year to 
persons at arm's length from the client is not less than 10% 
of the total quantity of sulphur allocated to the client in that 
year.
(2)  The corporate average price determined by a royalty client for a 
year is the amount calculated by dividing
	(a)	the royalty client's total net revenue for sales of sulphur for 
the year, calculated in accordance with the Minister's 
directions,
by
	(b)	the total number of tonnes of sulphur sold in the same year 
under sales referred to in clause (a).
(3)  A royalty client's S-CAP for a year cannot be an amount per tonne 
less than zero.
(4)  A royalty client's S-CAP for a year may be recalculated in 
accordance with the Minister's directions.
(5)  A royalty client required under subsection (1) to determine the 
client's S-CAP for a year, and any person associated with that royalty 
client, must
	(a)	whenever requested to do so by the Minister, consent to an 
audit or examination of the records of the royalty client or 
associated person that are or may be relevant to the 
determination of the royalty client's S-CAP for that year, and
	(b)	co-operate with and give all reasonable assistance to the 
person conducting the audit or examination requested under 
clause (a) for the purpose of enabling that person to conduct 
the audit or examination satisfactorily.
(6)  When an audit or examination is requested by the Minister under 
subsection (5), the royalty client or associated person has the choice of 
having the audit or examination conducted
	(a)	by or on behalf of the Minister, at the Crown's expense, or
	(b)	by an independent auditor approved by the Minister, at the 
expense of the royalty client and the persons associated with 
the royalty client or any one or more of them.
Report of sulphur disposition
4(1)  A royalty client shall furnish to the Minister for each production 
month of 2009 and of each subsequent year a report respecting the 
quantities of sulphur disposed of by the client in each month if the 
Minister determines that the quantity of sulphur allocated to the client 
in the preceding year was 30 000 tonnes or more.
(2)  A royalty client who is not required to furnish reports to the 
Minister under subsection (1) in respect of the production months of 
2009 or a subsequent year, shall nonetheless furnish those reports for 
the 2nd and each subsequent production month of the year if the client 
elects to do so by furnishing the report in respect of the first production 
month of the year by the 15th day of the 2nd month following that first 
production month.
(3)  A report furnished by a royalty client pursuant to subsection (1) or 
(2) in respect of a production month may, to the extent consented to by 
the Minister, include information regarding the quantities of sulphur 
disposed of by the client in any preceding production month.
(4)  A royalty client shall furnish a report to the Minister for 2009 and 
each subsequent year in respect of which the client is required to 
furnish reports to the Minister under subsection (1) or (2) in relation to 
production months of the year, respecting the total quantity of sulphur 
disposed of by the royalty client in the year.
(5)  A royalty client who is not required to furnish a report under 
subsection (4) in respect of a year may nonetheless elect to furnish a 
report under subsection (4) by furnishing the report to the Minister by 
the 15th day of April of the following year.
(6)  A report required to be furnished
	(a)	under subsection (1) or (2) in respect of a production month 
shall be furnished to the Minister by the 15th day of the 2nd 
month following the production month, and
	(b)	under subsection (4) in respect of a year, shall be furnished to 
the Minister by the 15th day of April of the following year.
Sulphur royalty compensation
5(1)  The amount of royalty compensation on sulphur allocated to the 
royalty client in a production month is an amount calculated by 
multiplying the quantity of the royalty share
	(a)	by the royalty client's S-CAP for the year containing the 
month, in any case where clause (b) does not apply, or
	(b)	by the Sulphur Default Price for the year containing the 
month if
	(i)	the quantity of sulphur disposed of by the royalty client 
in the year containing the month to persons at arm's 
length from the client is less than 10% of the total 
quantity of sulphur allocated to the client in that year,
	(ii)	the Minister determines that less than 30 000 tonnes of 
sulphur were allocated to the royalty client in the year 
preceding the year containing the month, and the client 
is not required to furnish a report under section 4(4) of 
this Schedule, and does not elect to furnish a report 
under section 4(5) of this Schedule, in respect of the 
year containing the month, or
	(iii)	the royalty client was given a direction under subsection 
(5) and the direction applies to the month.
(2)  Subject to subsections (3) and (4), the Sulphur Default Price for a 
year is the price determined by dividing
	(a)	the total net revenue for sales of sulphur by all royalty clients 
in the year to persons at arm's length with the clients, 
calculated in accordance with the Minister's directions,
by
	(b)	the total number of tonnes of sulphur sold in the same year 
under sales referred to in clause (a).
(3)  In determining the total net revenue referred to in subsection 
(2)(a), the net revenue from any sale included in the determination 
shall not be less than zero.
(4)  Subject to section 38 of the Act, the Minister may from time to 
time recalculate the Sulphur Default Price for a year.
(5)  If a royalty client or a person associated with the royalty client 
refuses to give consent to an audit or examination pursuant to section 
3(5)(a) of this Schedule or fails to comply with section 3(5)(b) of this 
Schedule with respect to an audit or examination conducted under that 
section, the Minister may direct that the royalty compensation on 
sulphur allocated to the royalty client in that year be calculated in 
accordance with subsection (1)(b).
(6)  Subject to subsection (7), if a royalty client who is required to 
furnish a report under section 4(4) of this Schedule in respect of a year 
fails to furnish the report by the 15th day of April of the following 
year, the Minister may direct that the royalty compensation on sulphur 
allocated to the royalty client in that year be calculated in accordance 
with subsection (1)(b).
(7)  Subject to section 38 of the Act, if a royalty client for whom the 
calculation of royalty compensation is subject to a direction by the 
Minister under subsection (6) subsequently furnishes the report 
required to be filed by it under section 4(4) of this Schedule in respect 
of a year, the Minister may, in accordance with subsection (1)(a), 
recalculate the royalty compensation on sulphur allocated to the 
royalty client in that year.
Schedule 7  
 
Exemption for Otherwise Flared Solution Gas
Interpretation
1   In this Schedule,
	(a)	"approved well event" means a well event approved by the 
Minister under section 2(1) of Schedule 8 of the 2002 
Regulation or under section 2(1) of this Schedule;
	(b)	"average daily production", in relation to solution gas 
recovered from a well event in a production month, means 
the volumes of solution gas recovered from the well event in 
that production month in m3, divided by the number of hours 
of operation of the well event in the production month and 
multiplied by 24;
	(c)	"bitumen battery" means a battery that is, according to the 
records of the Board, a bitumen battery;
	(d)	"crude oil battery" means a battery that is, according to the 
records of the Board, a crude oil battery.
Exemption for solution gas
2(1)  The Minister may, on application from the operator of a crude oil 
battery or a bitumen battery and on the recommendation of the Board,
	(a)	approve, for the purposes of the exemption from royalty 
under subsection (4) or (5), a well event from which solution 
gas is recovered and delivered to the battery, and
	(b)	specify an apportionment factor for the approved well event 
that is not more than 1.0, expressed as a decimal fraction.
(2)  An application under subsection (1) must be received by the 
Minister within 6 months of the date when, according to the records of 
the Board, routine flaring or venting of all or part of the solution gas 
recovered from the well event permanently ceased.
(3)  The Minister may extend the time by which an application must be 
received if, in the Minister's opinion, an extension is warranted in the 
circumstances.
(4)  Subject to subsections (6) to (11), solution gas that is
	(a)	recovered in a production month after September, 2002 from 
an approved well event,
	(b)	delivered to a crude oil battery, and
	(c)	used or consumed for some useful purpose and not injected
is exempt from the payment of royalty otherwise payable to the Crown 
under this Regulation.
(5)  Subject to subsections (6) to (11), solution gas that is
	(a)	recovered in a production month after December, 2008 from 
an approved well event,
	(b)	delivered to a bitumen battery, and
	(c)	used or consumed for some useful purpose and not injected
is exempt from the payment of royalty otherwise payable to the Crown 
under this Regulation.
(6)  Where an apportionment factor is specified for an approved well 
event, the royalty exemption under subsection (4) or (5) applies only to 
the portion of the solution gas referred to in that subsection that is 
equal to the product of the quantity of the solution gas and the 
apportionment factor.
(7)  Subject to subsections (9) and (10), a royalty exemption under 
subsection (4) or (5) applies in respect of solution gas recovered from 
an approved well event during the period of 120 consecutive months 
commencing with the month in which the application under subsection 
(1) and section 2(1) of Schedule 8 of the 2002 Regulation in respect of 
the well event is received by the Minister.
(8)  Where a well event was approved under section 12.1(2) of the 
1994 Regulation,
	(a)	the well event is deemed to be an approved well event for the 
purposes of this section, and
	(b)	subject to subsections (10) to (12), the royalty exemption 
provided for under section 12.1(4) of the 1994 Regulation in 
respect of solution gas recovered from that approved well 
event continues for the remainder of the period of 120 
consecutive months referred to in section 12.1(6)(b) of the 
1994 Regulation.
(9)  The Minister may terminate a royalty exemption under subsection 
(4), (5) or (8) in respect of solution gas recovered from an approved 
well event if
	(a)	according to the records of the Board, the average daily 
production of solution gas recovered from the well event has 
exceeded 15 000 m3 in each of 3 consecutive production 
months commencing with any month after July, 2002,
	(b)	the Minister receives a recommendation from the Board to 
terminate the exemption, and
	(c)	the Minister is of the opinion that solution gas recovered 
from the well event should not be exempt from the payment 
of royalty under this section.
(10)  The Minister may make the termination of a royalty exemption 
pursuant to subsection (9) effective commencing with the production 
month following the 3-month period referred to in that subsection or 
commencing with any subsequent production month.
(11)  If the Minister terminates a royalty exemption pursuant to 
subsection (9), the Minister shall
	(a)	give written notice of the termination to the operator of the 
crude oil battery or bitumen battery to which solution gas 
recovered from the well event is delivered, and
	(b)	specify in the notice the production month specified by the 
Minister under subsection (10) as the initial production 
month in which the termination is effective.
(12)  Qualifying batteries under the 1994 Regulation or the 2002 
Regulation are not eligible to receive a royalty exemption under 
Schedule 7 of this Regulation.


--------------------------------
Alberta Regulation 222/2008
Mines and Minerals Act
PETROLEUM ROYALTY REGULATION, 2009
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 594/2008) 
on December 10, 2008 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
	1	Interpretation
	2	Application of Regulation
	3	s86 of the Mines and Minerals Act
	4	Categories and densities of crude oil
	5	Prescribing par prices
	6	Royalty
	7	Adjustment of royalty
	8	Crown tract in unit
	9	Lesser royalty
	10	Responsibility of operator
	11	Minister's decision final
	12 - 21	Consequential amendments
	22	Expiry
	23	Coming into force
 
Schedule
Interpretation
1(1)  In this Regulation,
	(a)	"Board" means the Energy Resources Conservation Board or 
the Alberta Energy and Utilities Board;
	(b)		"crude oil" means a mixture mainly of pentanes and heavier 
hydrocarbons 
	(i)	that may be contaminated with sulphur compounds, 
	(ii)	that is recovered or is recoverable at a well from an 
underground reservoir, and 
	(iii)	that is liquid at the conditions under which its volume is 
measured or estimated, 
		and includes all other hydrocarbon mixtures so recovered or 
recoverable except natural gas, field condensate or crude 
bitumen;
	(c)	"field condensate" means field condensate as defined in the 
Natural Gas Royalty Regulation, 2009;
	(d)	"heavy oil" means the category of crude oil determined under 
section 4 as heavy oil;
	(e)	"IETP costs" means allocable costs as defined in the 
Innovative Energy Technologies Regulation (AR 250/2004);
	(f)	"licence" means a licence for a well issued under the Oil and 
Gas Conservation Act;
	(g)	"licensee" means the holder of a licence according to the 
records of the Board and includes a trustee or 
receiver-manager of property of a licensee;
	(h)	"light oil" means the category of crude oil determined under 
section 4 as light oil;
	(i)	"medium oil" means the category of crude oil determined 
under section 4 as medium oil;
	(j)	"operator", in respect of a well, means the person who is the 
operator according to the records of the Department;
	(k)	"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;
	(l)	"royalty" means royalty reserved to the Crown in right of 
Alberta;
	(m)	"solution gas" means
	(i)	gas that is separated from crude oil after recovery from 
a well, and
	(ii)	gas that is dissolved in crude oil 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;
	(n)	"ultra heavy oil" means the category of crude oil determined 
under section 4 as ultra heavy oil;
	(o)	"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 oil 
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 oil 
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;
	(p)	"zone" means any stratum or any sequence of strata that is 
designated by the Board as a zone.
(2)  A reference in this Regulation to a month, whether by its name or 
not, shall be construed as the period commencing at 8:00 a.m. 
Mountain Standard Time on the first day of the month and ending 
immediately before 8:00 a.m. Mountain Standard Time on the first day 
of the next month.
Application of Regulation
2   This Regulation applies to royalty on crude oil and solution gas 
obtained from petroleum recovered from a well event on or after 
January 1, 2009.
s86 of the Mines and Minerals Act
3   Section 86 of the Mines and Minerals Act applies to all agreements 
granting petroleum and natural gas rights or petroleum rights and to 
crude oil obtained from petroleum recovered pursuant to those 
agreements.
Categories and densities of crude oil
4(1)  The categories of crude oil and the density of each category are 
as specified in the following Table:
Crude Oil Category and Density Table
Category of Crude Oil
Density
light oil
less than 850 kilograms per cubic 
metre
medium oil
greater than or equal to 850 
kilograms per cubic metre and less 
than 900 kilograms per cubic 
metre
heavy oil
greater than or equal to 900 
kilograms per cubic metre and less 
than 925 kilograms per cubic 
metre
ultra heavy oil
greater than or equal to 925 
kilograms per cubic metre
(2)  The category for crude oil recovered from a well event during a 
month is determined by the Minister based on density information 
included in records provided to the Minister by the Board.
(3)  In making a determination under subsection (2), the Minister may 
request and consider density information from the Alberta Petroleum 
Marketing Commission and the operator.
(4)  If density information is not available to make a determination 
under subsection (2), the category for crude oil recovered from a well 
event during a month is light oil.
Prescribing par prices
5   The Minister may, with respect to any month, prescribe an amount 
per cubic metre as the par price for each of the following:
	(a)	light oil;
	(b)	medium oil;
	(c)	heavy oil;
	(d)	ultra heavy oil.
Royalty
6(1)  The royalty on petroleum recovered from a well event pursuant 
to an agreement granting petroleum and natural gas rights, petroleum 
rights or natural gas rights is
	(a)	that part of the crude oil obtained from the petroleum in each 
month calculated in accordance with the Schedule, and
	(b)	that part of the solution gas obtained from the petroleum in 
each month calculated in accordance with the Natural Gas 
Royalty Regulation, 2009.
(2)  The royalty on crude oil and solution gas must be free and clear of 
all deductions.
Adjustment of royalty
7(1)  If IETP costs have been established and allocated to a well event, 
at the sole option of the Minister,
	(a)	the Minister shall pay to the operator by the end of the next 
month the IETP costs established and allocated to the well 
event to an amount not exceeding the royalty calculated 
under section 6(1)(a) for the previous month multiplied by 
the par price prescribed under section 5 for the previous 
month applicable to that calculation, or
	(b)	the Alberta Petroleum Marketing Commission shall direct the 
operator to reduce the quantity of crude oil to be delivered in 
the next month under the Petroleum Marketing Regulation 
(AR 174/2006) by a quantity of crude oil calculated by 
dividing the IETP costs established and allocated to the well 
event by the par price prescribed under section 5 for the 
month in which the delivery is to occur to an amount not 
exceeding the royalty calculated for the previous month 
under section 6(1)(a).
(2)  Section 22 of the Mines and Minerals Administration Regulation 
(AR 262/97) does not apply in respect of any payment or delivery of 
crude oil under subsection (1).
(3)  Where, by an order made pursuant to the Oil and Gas 
Conservation Act, the maximum allowable production from a well 
event is determined for a period in excess of one month, the royalty 
that has been calculated, levied and collected on crude oil shall, on 
application by the operator or licensee, at the end of that period be 
recalculated for each month during the period that crude oil was 
produced from the well event, and for that purpose the production of 
crude oil is deemed to have been produced at the same rate as specified 
in the order for each month of the period.
(4)  If the royalty that has been levied and collected is in excess of the 
amount recalculated under subsection (3), a payment of the excess 
amount must be made in accordance with section 15 of the Petroleum 
Marketing Regulation (AR 174/2006) as if the excess amount was an 
overdelivery of crude oil for the purposes of that section.
Crown tract in unit
8   If petroleum owned by the Crown is subject to a unit agreement or 
unit operation order, the unit area under the unit agreement or order is 
deemed to be a location for the purpose of determining the royalty 
calculated under section 2(1) of the Schedule applicable to the portion 
of the production allocated to any tract contained in an agreement. 
Lesser royalty
9   Where in the opinion of the Lieutenant Governor in Council it is 
necessary or desirable in the interests of conservation or of maintaining 
or increasing the recovery of crude oil or natural gas from one or more 
well events in one or more wells, a pool or any portion of a pool, the 
Lieutenant Governor in Council may by order
	(a)	prescribe a royalty with respect to the crude oil recovered 
from the one or more well events, the pool or portion of the 
pool, that is less than the royalty that would otherwise be 
deliverable under this Regulation, and
	(b)	prescribe the period in respect of which the order is to apply. 
Responsibility of operator
10   Where petroleum is recovered from a well in a month pursuant to 
an agreement, the operator of the well for that month is responsible as 
the agent of the lessee of the agreement for the delivery of the royalty 
on crude oil under the agreement in respect of that month.
Minister's decision final
11   Where any question arises pertaining to the interpretation or 
application of this Regulation, the Minister is the sole judge of the 
question and there is no appeal from the Minister's decision.
Consequential amendments
12(1)  The Enhanced Recovery of Oil Royalty Reduction 
Regulation (AR 348/93) is amended by this section.
(2)  Section 1 is amended
	(a)	in clause (j) by striking out "section 1.1(4) of";
	(b)	by repealing clause (k) and substituting the 
following:
	(k)	"Petroleum Royalty Regulation" means, in respect of a 
month prior to January 2009, the Petroleum Royalty 
Regulation (AR 248/90), and in respect of January 2009 
or a subsequent month, the Petroleum Royalty 
Regulation, 2009;
(3)  The following is added after section 27:
Rebate for pre-1994 injection costs
27.1(1)  In this section, "remaining total" means remaining total, as 
defined in section 9 of the Petroleum Royalty Regulation 
(AR 248/90) as of December 31, 2008, less reductions made under 
subsection (2)(a).
(2)  The Minister may
	(a)	rebate an amount not exceeding 5% of the royalty payable on 
crude oil for a month if the remaining total is reduced by an 
amount equal to the same percentage of the selling price or 
fair value of the crude oil on which the royalty on crude oil 
for the month is based, or
	(b)	rebate a single lump sum amount determined by the Minister 
in respect of the remaining total, after which the remaining 
total is zero.
Consequential amendments
13(1)  The Experimental Project Petroleum Royalty 
Regulation (AR 65/92) is amended by this section.
(2)  The following is added after section 1:
Application of Regulation
1.1   This Regulation applies to experimental oil won, worked, 
recovered or obtained on or before December 31, 2008.
(3)  The following is added after section 8:
Expiry
9   This Regulation expires on June 30, 2014.
Consequential amendments
14(1)  The Horizontal Re-entry Well Royalty Reduction 
Regulation (AR 348/92) is amended by this section.
(2)  Section 1.1 is amended by adding "on or before December 
31, 2008" after "eligible oil if it is obtained".
(3)  Section 5(1) and (2) are amended by striking out "prior to 
September 1, 2012" and substituting "on or before December 31, 
2008".
(4)  Section 6(1)(f) is amended by adding "and on or before 
December 31, 2008" after "August 31, 2007".
(5)  Section 10 is amended by striking out "December 31, 
2017" and substituting "June 30, 2014".
Consequential amendments
15(1)  The Innovative Energy Technologies Regulation 
(AR 250/2004) is amended by this section.
(2)  Section 1(1) is amended
	(a)	in clauses (c) and (i) by striking out "Oil Sands Royalty 
Regulation, 1997 (AR 185/97)" and substituting "Oil 
Sands Royalty Regulation, 2009";
	(b)	in clause (j) by striking out "Natural Gas Royalty 
Regulation, 2002 (AR 220/2002)" and substituting 
"Natural Gas Royalty Regulation, 2009";
	(c)	in clause (k) by striking out "Petroleum Royalty 
Regulation (AR 248/90)" and substituting "Petroleum 
Royalty Regulation, 2009".
Consequential amendments
16(1)  The Low Productivity Well Royalty Reduction 
Regulation (AR 350/92) is amended by this section.
(2)  Section 2(a) is amended by adding "and on or before 
December 31, 2008" after "December 1992".
(3)  Section 2.1(1) is amended by adding "on or before 
December 31, 2008" after "eligible oil if it is obtained from a low 
productivity well".
(4)  Section 3(3) is amended by adding "and on or before 
December 31, 2008" after "August 31, 2007".
(5)  Section 4(1)(g) by adding "and on or before December 31, 
2008" after "August 31, 2007".
(6)  Section 10 is repealed and the following is substituted:
Expiry
10   This Regulation expires on June 30, 2014.
Consequential amendments
17(1)  The Petroleum and Natural Gas Tenure Regulation 
(AR 263/97) is amended by this section.
(2)  Section 23(2) is amended
	(a)	in clause (a)(ii) by adding "and before January 1, 2009" 
after "February, 2000" and by adding ", and" after 
"spacing unit";
	(b)	by adding the following after clause (a)(ii):
	(iii)	for any month from and after January 1, 2009 shall, in 
respect of crude oil, be calculated using the par price 
prescribed for that month under the Petroleum Royalty 
Regulation, 2009 that would apply to the petroleum 
produced from the freehold well if the well had instead 
produced the petroleum from the offset zone in the 
Crown spacing unit,
	(c)	in clause (b) by striking out "or the Natural Gas Royalty 
Regulation, 2002" and substituting ", the Natural Gas 
Royalty Regulation, 2002 (AR 220/2002) or the Natural Gas 
Royalty Regulation, 2009".
(3)  The following is added after section 26:
Determination of Crown ownership in  
crude oil and natural gas
26.1(1)  In this section,
	(a)	"crude oil" means crude oil as defined in the Petroleum 
Royalty Regulation, 2009;
	(b)	"field condensate" means field condensate as defined in the 
Natural Gas Royalty Regulation, 2009;
	(c)	"gas product" means gas product as defined in the Natural 
Gas Royalty Regulation, 2009;
	(d)	"production entity" means
	(i)	a drilling spacing unit prescribed or established pursuant 
to regulations under the Oil and Gas Conservation Act, 
to the extent the drilling spacing unit is not included in a 
block or area described in subclause (ii), (iii) or (iv),
	(ii)	a block established pursuant to regulations under the Oil 
and Gas Conservation Act,
	(iii)	the area of a project as defined in the Oil and Gas 
Conservation Act, or
	(iv)	the unit area under a unit agreement or unit operation 
order;
	(e)	"solution gas" means solution gas as defined in the Natural 
Gas Royalty Regulation, 2009;
	(f)	"well event" means well event as defined in the Petroleum 
Royalty Regulation, 2009.
(2)  If the whole or part of a location forms a part only of a 
production entity other than the unit area under a unit agreement or 
unit operation order, 
	(a)	the percentage of Crown ownership in crude oil, natural gas 
or solution gas recovered from a well event or events in the 
production entity, or gas product or field condensate obtained 
from that gas is
	(i)	the proportion that the area of the location within the 
production entity bears to the whole area of the 
production entity, or
	(ii)	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 spacing 
unit, the proportion that the production allocated to the 
location or to the part of the location contained in the 
spacing unit bears to the whole of the production from 
the spacing unit, 
		and
	(b)	the well event or events in the production entity are deemed 
to be in the location or part of the location.
(3)  If the production entity is a drilling spacing unit that is partly 
inside and partly outside the unit area under a unit agreement or unit 
operation order,
	(a)	the crude oil, natural gas or solution gas recovered from a 
well event in the drilling spacing unit or gas product or field 
condensate obtained from that gas must be allocated to the 
parts of the drilling spacing unit inside or outside the unit 
area, and
	(b)	the percentage of Crown ownership in the parts allocated 
under clause (a)
	(i)	inside the unit area is as stipulated in the unit agreement 
or unit operation order, and
	(ii)	outside the unit area is the proportion that those parts 
bear to the drilling spacing unit outside of the unit area.
(4)  For the purposes of subsection (2)(a)(i), the production entity for 
a well event in a well designated by the Energy Resources 
Conservation Board as a gas well producing crude oil is the quarter 
section of land on which the well is located, unless the Minister 
otherwise designates a larger or smaller area of land.
Consequential amendments
18(1)  The Petroleum Royalty Regulation (AR 248/90) is 
amended by this section.
(2)  Section 1 is amended
	(a)	in subsection (1.1) by striking out "A" and 
substituting "Subject to subsection (1.2), a";
	(b)	by adding the following after subsection (1.1):
(1.2)  For the purposes of this Regulation, the month of 
December, 2008 shall be construed as the period commencing at 
7:00 a.m. Mountain Standard Time on the first day of the month 
and ending immediately before 8:00 a.m. Mountain Standard 
Time on the first day of January, 2009.
(3)  The following is added after section 1:
Application of Regulation
1.01   This Regulation applies to royalty on crude oil and solution 
gas obtained from petroleum recovered from a well event on or 
before December 31, 2008.
(4)  Section 2.1 is amended by adding "prior to January 1, 
2009" after "for a month".
(5)  The following is added  after section 23:
Expiry
24   This Regulation expires on June 30, 2014.
Consequential amendments
19(1)  The Reactivated Well Royalty Exemption Regulation 
(AR 352/92) is amended by this section.
(2)  Section 2.1(1) is amended by adding "on or before 
December 31, 2008" after "eligible oil if it is obtained from a 
reactivated well".
(3)  Section 3(1) is amended by adding "on or before December 
31, 2008" after "Eligible oil obtained from a reactivated well".
(4)  Section 4(1)(g) is amended by adding "and on or before 
December 31, 2008" after "August 31, 2007".
(5)  Section 10 is repealed and the following is substituted:
Expiry
10   This Regulation expires on June 30, 2014.
Consequential amendments
20   The Regulations Act Regulation (AR 288/99) is 
amended in section 17(1)(s) by adding "or section 5 of the 
Petroleum Royalty Regulation, 2009" after "(AR 248/90)".
Consequential amendments
21(1)  The Third Tier Exploratory Well Royalty Exemption 
Regulation (AR 16/93) is amended by this section.
(2)  Section 2(1)(b) by adding "and on or before December 31, 
2008" after "September 30, 1992".
(3)  Section 3(2) is amended 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)	until December 31, 2008,
(4)  The following is added after section 13:
Expiry
14   This Regulation expires on June 30, 2014.
Expiry
22   For the purpose of ensuring that this Regulation is reviewed, with 
the option that it may be repassed in its present or an amended form 
following a review, this Regulation expires on November 30, 2018.
Coming into force
23   This Regulation comes into force on January 1, 2009.
Schedule 
 
Crown Royalty Share of Crude Oil
Definitions
1   In this Schedule,
	(a)	"Crown interest" means the percentage of Crown ownership 
of crude oil recovered from a well event as determined by the 
Minister in accordance with section 26.1 of the Petroleum 
and Natural Gas Tenure Regulation (AR 263/97);
	(b)	"par price" means the par price prescribed under section 5 of 
the Regulation applicable to the category of crude oil 
determined by the Minister under section 4 of the Regulation;
	(c)	"quantity" means the monthly production in cubic metres of 
crude oil from a well event according to the records of the 
Board.
Calculation of Crown royalty share
2(1)  Subject to subsection (2), the royalty for a month is the amount 
calculated in accordance with the following formula:
royalty in cubic metres = (rp% + rq%) x quantity x Crown interest
where
	rp%	is the percentage rate for price calculated in accordance with 
section 3;
	rq%	is the percentage rate for quantity calculated in accordance 
with section 4.
(2)  Where the calculation of (rp% + rq%)
	(a)	is less than 0%, the amount is 0%, or
	(b)	is more than 50%, the amount is 50%.
Calculation of rate for price 
3(1)  The rp% is calculated in accordance with the following Table:
Rate for Price Table
Par Price
Formula
par price greater than zero and 
less than or equal to $250.00 per 
cubic metre
rp% = ((par price - 190.00) x 
0.0006) x 100
par price greater than $250.00 per 
cubic metre and less than or 
equal to $400.00 per cubic metre
rp% = [((par price - 250.00) x 
0.0010) + 0.0360] x 100
par price greater than $400.00 per 
cubic metre
rp% = [((par price - 400.00) x 
0.0005) + 0.1860] x 100
(2)  Where the rp% calculated under subsection (1) exceeds 35%, the 
rp% is deemed to be 35%.
Calculation of rate for quantity 
4(1)  The rq% is calculated in accordance with the following Table:
Rate for Quantity Table
Quantity
Formula
quantity greater than zero and 
less than or equal to 106.4 cubic 
metres
rq% = ((quantity - 106.4) x 
0.0026) x 100
quantity greater than 106.4 cubic 
metres and less than or equal to 
197.6 cubic metres
rq% = ((quantity - 106.4) x 
0.0010) x 100
quantity greater than 197.6 cubic 
metres and less than or equal to 
304.0 cubic metres
rq% = [((quantity - 197.6) x 
0.0007) + 0.0912] x 100
quantity greater than 304.0 cubic 
metres
rq% = [((quantity - 304.0) x 
0.0003) + 0.1657] x 100
(2)  Where the rq% calculated under subsection (1) exceeds 30%, the 
rq% is deemed to be 30%.



Alberta Regulation 223/2008
Mines and Minerals Act
OIL SANDS ROYALTY REGULATION, 2009
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 595/2008) 
on December 10, 2008 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
Part 1 
General
	1	Interpretation
	2	Affiliate rules
	3	Month


	4	Recovery and disposition presumption
	5	Submissions
	6	Measurement
	7	Other royalty liability
	8	Prescribed components
	9	Application of Regulation
Part 2 
Projects
		10	Applications
	11	Approvals
	12	Ministerial amendments
	13	Effective date
	14	Project description
	15	Prior net cumulative balance
	16	Amendment of prior net cumulative balance
	17	Revocation 
Part 3 
Costs and Revenues
	18 	Timing of costs 
	19	General rules for costs and revenues
	20	Fair market value for revenues
	21	Calculated value
	22	Revenue
	23	Other net proceeds
	24	Net revenue and net loss
	25	Payout
Part 4 
Royalty
Division 1 
Non-Projects
	26	Non-Project mining operations
	27	Non-Project well events
	28	Trucking costs and allowances
Division 2 
Projects
	29	Royalty share from Projects
	30	Royalty calculation point
	31	Transfer of Crown's royalty share
	32	Unit price
	33	Royalty compensation 
	34	Previously paid royalty
Part 5 
Administration and Enforcement
	35	Definition
Division 1 
Reporting
	36	Operator changes
	37	Operator's forecast
	38	Monthly report
	39	Annual report
	40	Ad hoc reports
	41	Reporting changes
	42	Records
Division 2 
Compliance
	43	Provisional royalty compensation
	44	Penalties
	45	Interest
	46	Application of payments
	47	Objections
	48	Referral of disputes
	49	Minister's decision final
Part 6 
Consequential Amendments, Expiry and  
Coming into Force
	50	Crown Agreements
	51-54	Consequential amendments
	55	Expiry
	56	Coming into force
Part 1 
General
Interpretation
1(1)  In this Regulation,
	(a)	"Act" means the Mines and Minerals Act;
	(b)	"allowed cost" means costs or other amounts that are allowed 
costs under the Oil Sands Allowed Costs (Ministerial) 
Regulation;
	(c)	"blended bitumen" means cleaned crude bitumen blended 
with diluent;
	(d)	"Board" means the Energy Resources Conservation Board or 
the Alberta Energy and Utilities Board;
	(e)	"cogeneration plant" means a plant that is approved under the 
Hydro and Electric Energy Act and produces electricity 
concurrently with thermal energy;
	(f)	"core or supporting asset" means, in relation to a Project,
	(i)	a capital asset without which oil sands or oil sands 
products to be recovered or obtained pursuant to the 
Project could not physically be so recovered or 
obtained, or
	(ii)	a capital asset necessary for the operation and 
maintenance of a capital asset described in subclause (i),
		but does not include an overhead asset;
	(g)	"cost of diluent" means the cost of diluent determined under 
section 22(3);
	(h)	"crude bitumen" means a viscous mixture, mainly of 
hydrocarbons heavier than pentanes, that may contain 
sulphur compounds and that is obtained from oil sands;
	(i) 	"description of the Project" means,
	(i)	in relation to a Project other than a Prior Project, the 
description specified for the Project pursuant to sections 
11(4)(b) and 14, and
	(ii)	in relation to a Prior Project, the description specified 
for the Prior Project pursuant to sections 16(2)(a)(i) and 
17(1)(d) of the Prior Regulation or pursuant to a 
contract under section 9(a) of the Act relating to the 
Prior Project,
		as that description may be amended from time to time;
	(j)	"development area" means
	(i)	in relation to a Project other than a Prior Project, the 
area and strata described pursuant to section 14(1)(d), 
and
	(ii)	in relation to a Prior Project, the area and strata 
described pursuant to section 17(1)(d)(i) of the Prior 
Regulation, 
		from which oil sands or oil sands products are to be 
recovered pursuant to the Project, as that area and strata may 
be amended from time to time;
	(k)	"diluent" means hydrocarbon substances used to dilute crude 
bitumen;
	(l)	"diluent recovery unit" means a processing plant or part of a 
processing plant at which diluent is separated from blended 
bitumen;
 	(m)	"effective date" means,
	(i)	in respect of a Prior Project, the effective date referred 
to in section 1(1)(i) of the Prior Regulation or deemed 
by a contract under section 9(a) of the Act to have been 
specified for the Prior Project,
	(ii)	in respect of a Project other than a Prior Project, the 
effective date specified under section 11(4)(d),
	(iii)	in respect of a Prior Project expansion, the effective 
date referred to in section 1(l)(ii) of the Prior 
Regulation, and
	(iv)	in respect of a Project expansion, the effective date 
specified under section 11(5)(d) for the amendment 
relating to the Project expansion;
	(n)	"gross revenue" means, in relation to a Project, the gross 
revenue of the Project determined in accordance with section 
22(2);
	(o)	"IETP costs" means allocable costs as defined in the 
Innovative Energy Technologies Regulation (AR 250/2004);
	(p)	"lessee" means,
	(i)	in relation to a Project, a lessee of an agreement, the 
location of which includes the whole or a part of the 
development area of a Project,
	(ii)	in relation to a non-Project well event, a lessee of the 
agreement pursuant to which an oil sands product is 
recovered from the non-Project well event, and
	(iii)	in relation to a non-Project mining operation, a lessee of 
the agreement pursuant to which oil sands is recovered 
by the non-Project mining operation;
	(q)	"net loss" means, in relation to a Project, the net loss of the 
Project determined in accordance with section 24(3); 
	(r)	"net revenue" means, in relation to a Project, the net revenue 
of the Project determined in accordance with section 24(2); 
	(s)	"non-Project mining operation" means a mining operation, as 
defined in the Oil Sands Conservation Act, that is not part of 
a Project;
	(t)	"non-Project well event" means a well event from which an 
oil sands product is recovered and that is not part of a 
Project;
	(u)	"oil sands product" means 
	(i)	any product recovered from oil sands,
	(ii)	any product obtained by processing oil sands, and
	(iii)	any other product obtained directly or indirectly from a 
product referred to in subclause (i) or (ii), 
		but does not include solution gas;
	(v)	"operator" means the person who from time to time is shown 
in the records of the Department as the operator of a Project, 
proposed Project, non-Project mining operation or the well 
containing a non-Project well event, as the case may be, or if 
no such person is shown in the records of the Department, the 
person who from time to time is shown in those records as 
the lessee of the Project, proposed Project, non-Project 
mining operation or non-Project well event, respectively;
	(w)	"other net proceed" means an amount specified, determined 
or deemed to be an other net proceed under section 23;
	(x)	"overhead asset" means, in relation to a Project, a capital 
asset that is used in connection with the functions and other 
items described in section 1(1)(b)(i) to (vi) of the Oil Sands 
Allowed Costs (Ministerial) Regulation;
	(y)	"Period" means each calendar year or partial calendar year 
comprising the months between the effective date of a 
Project and the date the approval of the Project under section 
16 of the Prior Regulation, a contract under section 9(a) of 
the Act or section 11 of this Regulation, as the case may be, 
is revoked, except that where the Project payout date of a 
Project occurs during the calendar year or partial calendar 
year, the months of the portion of the calendar year or partial 
calendar year that ends on the day before the Project payout 
date and the months of the portion of the calendar year or 
partial calendar year that commences on the Project payout 
date shall each be considered separate Periods;
	(z)	"post-payout Period" means each Period commencing on or 
after the Project payout date;
	(aa)	"pre-payout Period" means each Period commencing before 
the Project payout date; 
	(bb)	"Prior Approval" means an approval given under section 16 
of the Prior Regulation and subsisting on January 1, 2009, 
whether given pursuant to an application under section 15 of 
the Prior Regulation or pursuant to the provisions of a 
contract under section 9(a) of the Act;
	(cc)	"prior net cumulative balance" means,
	(i)	in relation to a Project that is not a Prior Project, the 
amount determined under section 15 or 16 as the prior 
net cumulative balance of the Project,
	(ii)	in relation to a Project expansion, the amount 
determined under section 15 or 16 as the prior net 
cumulative balance of the Project expansion,
	(iii)	in relation to a Prior Project, the amount specified under 
section 16(2)(a)(iii) of the Prior Regulation as the prior 
net cumulative balance of the Prior Project, and
	(iv)	in relation to a Prior Project expansion, the amount 
specified under section 16(2)(b)(iii) of the Prior 
Regulation as the prior net cumulative balance of the 
Prior Project expansion,
		as that amount has been or is amended from time to time 
pursuant to this Regulation or the Prior Regulation, as the 
case may be;
	(dd)	"Prior Project" means, subject to section 50(2), a scheme or 
operation approved in a Prior Approval;
	(ee)	"Prior Project expansion" means an addition to a Prior 
Project that is included in the description of the Project under 
section 16 of the Prior Regulation by virtue of section 
16(2)(b)(i) of that Regulation;
	(ff)	"Prior Regulation" means the Oil Sands Royalty Regulation, 
1997 (AR 185/97);
	(gg)	"processing plant" means a facility
	(i)	for obtaining crude bitumen from oil sands that have 
been recovered, or
	(ii)	for obtaining oil sands products from oil sands, crude 
bitumen or a derivative of crude bitumen that have been 
recovered, 
			that is approved under the Oil Sands Conservation Act;
	(hh)	"Project" means a project approved in one or more subsisting 
approvals under section 11, and includes a Prior Project;
	(ii)	"Project expansion" means an addition to a Project that is 
included or incorporated in the description of the Project 
under section 11 by virtue of section 11(5)(b);
	(jj)		"Project lands" means, in relation to a Project,
	(i)	the development area of the Project, and
	(ii)	the surface areas occupied by the Project
		specified from time to time in the description of the Project;
	(kk)	"Project operations" means 
	(i)	in relation to a Project other than a Prior Project, the 
description referred to in section 14(1)(a) of the 
approval granted under section 11 in respect of the 
Project, as that description may be amended from time 
to time, and
	(ii)	in relation to a Prior Project, the operations described in 
the description of the Project for the Prior Project, as 
that description may be amended from time to time;
	(ll)	"Project payout date" means the date a Project achieves 
payout in accordance with section 25;
	(mm)	"Project revenue" means the amount determined as the 
Project revenue of the Project under section 22;
	(nn)	"Project substances" means oil sands and oil sands products 
recovered, whether before, on or after the effective date of a 
Project, from the development area of the Project;
	(oo)	"Project use threshold" means 75%;
	(pp)	"royalty calculation point" means,
	(i) 	in relation to an oil sands product, or blended bitumen 
containing crude bitumen, obtained pursuant to a 
Project that is a Project substance, the place specified in 
section 30(1) or (2) at which the Crown's royalty share 
of the oil sands product or crude bitumen is to be 
calculated, or
	(ii)	in relation to an oil sands product, or blended bitumen 
containing crude bitumen, obtained pursuant to a 
Project that is not a Project substance, the place 
specified in section 30(3) as the royalty calculation 
point for the oil sands product or the blended bitumen, 
as the case may be;
	(qq)	"royalty compensation" means money payable to the Crown 
under this Regulation as compensation in respect of the 
Crown's royalty share of oil sands or oil sands products, the 
Crown's title to which is transferred pursuant to sections 26, 
27 or 31;
	(rr)	"solution gas" means gas dissolved in crude bitumen under 
initial reservoir conditions and includes any of that gas that 
evolves as a result of changes in pressure due to human 
disturbance, but does not include gas produced through 
chemical alteration of crude bitumen using high temperature, 
high pressure, a catalyst or otherwise;
	(ss)		"synthetic crude oil" means a mixture, mainly of pentanes 
and heavier hydrocarbons, that may contain sulphur 
compounds, that is obtained from crude bitumen and that is 
liquid at a temperature of 15 degrees Celsius and at a 
pressure of 101.325 kilopascals;
	(tt)	"unit price" means, in relation to each oil sands product 
obtained pursuant to a Project and delivered at a royalty 
calculation point of the Project for that kind of product 
during a month or Period, including blended bitumen 
containing crude bitumen so obtained or recovered and 
delivered, the price determined under section 32 in respect of 
that product for that month or Period, as the case may be;
	(uu)	"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.
(2)  In this Regulation, "cleaned crude bitumen" means
	(a)	crude bitumen from which impurities have been removed 
sufficiently to allow it, when blended with diluent, to be 
transported by pipeline,
	(b)	crude bitumen delivered from
	(i)	a Project to a processing plant that is not included in the 
description of the Project, or
	(ii)	the part of a processing plant that is included in the 
description of a Project to another part of the processing 
plant that is not included in the description of the 
Project, 
		where the processing plant is, for the purposes of this clause, 
designated by the Minister in a subsisting designation as an 
integrated upgrader, and
	(c)	crude bitumen delivered from a diluent recovery unit that is 
the last facility of a Prior Project from which the product is 
permanently removed from the Prior Project.
(3)  In using the definition of "cleaned crude bitumen" for the purposes 
of this Regulation, crude bitumen described in subsection (2)(b) and 
(c) is deemed to have had impurities removed from it.
Affiliate rules
2(1)  For the purposes of this Regulation, a person is affiliated with 
another person if, under subsection 1206(5) of the Income Tax 
Regulations under the Income Tax Act (Canada), the person is 
considered to be connected with the other person, but in making that 
determination, paragraph 1206(5)(a) shall be read as if it were replaced 
by the following:
	(a)	a person and another person (in this paragraph referred to as 
"that other person") are connected with each other if
	(i)	the person and that other person are not dealing at arm's 
length,
	(ii)	the person has an equity percentage in that other person 
that is not less than 10%, or
	(iii)	where the person is a corporation, the corporation and 
that other person are linked by another person who has 
an equity percentage in each of them of not less than 
10%;
(2)  For the purposes of subsection (1)(a)(i), persons are not dealing at 
arm's length with each other if, under the Income Tax Act (Canada), 
they would not be considered to be dealing at arm's length.
(3)  For the purposes of this Regulation, other than subsection (1)(a)(i), 
a transaction is, subject to subsection (4), a non-arm's length 
transaction if
	(a)	a party to the transaction is affiliated with any other party to 
the transaction,
	(b)	any party to the transaction is in a position to compel any 
other party to the transaction to enter into the transaction, or
	(c)	the consideration for any party under the transaction is in 
whole or in part based on or tied to 
	(i)	any other contractual or other obligation with another 
party to the transaction, or
	(ii)	any consideration under a contractual or other 
obligation described in subclause (i), 
but does not include any transaction to which the only parties are the 
Crown and another party.
(4)  Despite subsection (3), the Minister may, on application by the 
operator of a Project or on the Minister's own initiative, determine that 
a transaction is an arm's length transaction.
(5)  The Minister may revoke a determination made under subsection 
(4) effective as of the date of any change in the circumstances relied on 
by the Minister to make the determination or as of any later date.
(6)  For the purposes of this Regulation, other than subsection (1)(a)(i), 
a transaction is an arm's length transaction if it is not a non-arm's 
length transaction under subsection (3) or so long as it is determined 
by the Minister to be an arm's length transaction pursuant to a 
subsisting determination under subsection (4).
Month
3   Where any reference is made in this Regulation to a month, 
whether by its name or not, the reference shall, except to the extent 
otherwise specified by the Minister in respect of any particular Project, 
non-Project mining operation or non-Project well event, 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, except that the month of January of 2009 shall be 
construed as commencing at midnight on December 31, 2008.
Recovery and disposition presumption
4(1)  Where any reference is made in a provision of this Regulation to 
any oil sands product recovered from a place specified in the 
provision, the reference shall, where the context requires, be construed 
as referring to an oil sands product obtained from oil sands or another 
oil sands product recovered from that place.
(2)  Where any reference is made in this Regulation to the disposing or 
disposition of any thing, the reference shall be construed as referring to 
a sale or any other disposition of the thing to a person who by reason 
of the sale or disposition becomes its owner.
Submissions
5(1)  If this Regulation requires or permits anything to be furnished or 
an amount to be paid to the Minister on or before a day, the thing 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)  Any document required or permitted to be furnished to the 
Minister under this Regulation must be in the form determined by the 
Minister or in a form otherwise acceptable to the Minister.
(3)  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 form determined 
by the Minister, if any, for the document, 
	(b)	be completed in accordance with any directions given by the 
Minister or any instructions shown in the form determined by 
the Minister, if any, for the document, and 
	(c)	be accompanied by any additional information or documents 
called for by the form of the document or by any directions 
given by the Minister.
(4)  Subject to section 10(6), the Minister may reject a document that 
does not meet the requirements of subsections (2) and (3), and in that 
case the document shall, for the purposes of this Regulation, be 
considered not to have been furnished.
Measurement
6(1)  Subject to subsections (2) and (3), measurement and calculation 
of oil sands, oil sands products or blended bitumen for the purposes of 
this Regulation shall be undertaken in accordance with
	(a)	the regulations under the Act governing such measurement or 
calculation, 
	(b)	the enactments governing such measurement or calculation, 
administered from time to time by the Board, to the extent 
such measurement or calculation
	(i)	is not addressed by the regulations referred to in clause 
(a), and
	(ii)	is, in relation to the use of the results of the 
measurement or calculation for the purposes of this 
Regulation, the Oil Sands Allowed Costs (Ministerial) 
Regulation or the Bitumen Valuation Methodology 
(Ministerial) Regulation, acceptable to the Minister, 
		or
	(c)	the directions of the Minister governing such measurement or 
calculation, to the extent such measurement or calculation is 
not addressed under clauses (a) and (b).
(2)  If a measurement or calculation is not undertaken in accordance 
with subsection (1) or at all, the Minister may authorize calculation in 
accordance with the directions of the Minister, in lieu of measurement 
or calculation in accordance with subsection (1).
(3)  If calculation is not undertaken in accordance with subsection (2), 
the Minister may undertake the calculation.
Other royalty liability
7   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 royalty compensation in respect of the Crown's 
royalty share of oil sands or an oil sands product.
Prescribed components
8   The Minister may, by order, with respect to any month, prescribe 
the following:
	(a)	an amount per tonne as the par price for oil sands;
	(b)	a percentage as the estimated annual RN% for the month;
	(c)	a percentage as the estimated annual RG% for the month;
	(d)	a percentage as the Third Party Disposition Threshold for the 
month;
	(e)	a transportation allowance for a Project for the month for a 
kind of oil sands product obtained pursuant to a Project.
Application of Regulation
9   Unless otherwise provided in this Regulation, this Regulation 
applies 
	(a)	to oil sands products recovered from a non-Project well event 
on or after January 1, 2009,
	(b)	to oil sands recovered by a non-Project mining operation on 
or after January 1, 2009,
	(c)	to oil sands products recovered or obtained pursuant to a 
Project and delivered at a royalty calculation point for the 
product on or after January 1, 2009,
	(d)	to each Period of a Project that commences on or after 
January 1, 2009, and
	(e)	to the determination of the Crown's royalty share, and of the 
royalty compensation payable in relation to the Crown's 
royalty share, of the oil sands and oil sands products referred 
to in clauses (a), (b) and (c).
Part 2 
Projects
Applications
10(1)  The lessees of an agreement may apply to the Minister for 
approval of a proposed Project for the recovery of oil sands and oil 
sands products from the whole or a part of the location of the 
agreement if the proposed Project
	(a)	includes the whole or a part of one or more schemes or 
operations for such recovery, approved by the Board under 
the Oil Sands Conservation Act,
	(b)	contemplates such recovery only from oil sands rights owned 
by the Crown in right of Alberta, and
	(c)	includes a processing plant for obtaining crude bitumen from 
oil sands so recovered, if a scheme or operation referred to in 
clause (a) is a mining operation.
(2)  In addition to satisfying the requirements of section 5(2) and (3), 
an application under subsection (1) must include at least the following:
	(a)	 a proposed description of Project operations;
	(b)	a listing and description of the kinds of oil sands products to 
be recovered or obtained pursuant to the Project;
	(c)	a description of the capital assets proposed to be included in 
the Project, including whether any such assets will be located 
other than on Project lands;
	(d)	a description of all other assets that are expected to be of 
material relevance to Project operations;
	(e)	a proposed description of Project lands;
	(f)	a listing and description of non-arm's length transactions 
expected to occur for the supply of any capital assets, goods 
or services for the Project, or for the supply of any capital 
assets, goods or services produced or generated pursuant to 
the Project other than for the purposes of the Project;
	(g)	a proposed effective date for the Project;
	(h)	a proposed calculation of the prior net cumulative balance for 
the Project;
	(i)	the name of the operator of the Project.
(3)  An application may be made for approval of a proposed 
amendment to a Project by
	(a)	the lessees of the Project, and
	(b)	any lessees of agreements, the whole or a part of the location 
of which are proposed to be added to the development area of 
the Project by the proposed amendment,
if the requirements in subsection (1)(a), (b) and (c) would continue to 
be satisfied despite the amendment. 
(4)  In addition to satisfying the requirements of section 5(2) and (3), 
an application under subsection (3) must include at least the following 
contemplated by or relating to the amendment:
	(a)	a description of any material changes to Project operations;
	(b)	a description of any change in the kinds of oil sands products 
to be recovered or obtained pursuant to the Project; 
	(c)	a description of any capital assets proposed to be added to or 
removed from the Project, including whether any to be added 
will be located other than on Project lands;
	(d)	a description of any other assets that are expected to be of 
material relevance to Project operations and that were not 
disclosed in a previous application for which an approval was 
granted under section 11 in respect of the Project;
	(e)	a description of any addition to or deletion from Project 
lands;
	(f)	any addition or other change to the listing and description of 
non-arm's length transactions described in subsection (2)(f) 
disclosed in a previous application for which an approval was 
granted under section 11 in respect of the Project;
	(g)	a proposed effective date for the amendment;
	(h)	a proposed calculation of the prior net cumulative balance of 
a Project expansion, if any;
	(i)	a proposed calculation of other net proceeds arising in 
relation to any capital assets to be removed from the Project. 
(5)  Each lessee who has made an application under this section or 
section 15(1) or (3) of the Prior Regulation, and the operator of the 
Project or proposed Project to which the application relates shall, 
whenever requested to do so by the Minister,
	(a)	provide the Minister in accordance with the request, with any 
additional information specified in the request that is not 
already required to be provided pursuant to section 5(2) or 
(3),
	(b)		consent to, and provide access in accordance with the request 
for, an examination of the records of the lessee or operator 
that, in the Minister's opinion, are or may be relevant to any 
information required to be provided in or with the application 
or required to be provided pursuant to clause (a), and
	(c)	co-operate with and give all reasonable assistance in 
accordance with the request, to the person conducting the 
examination under clause (b).
(6)  If an application under subsection (1) or (3) does not satisfy the 
requirements of section 5(2) and (3) or of subsection (1), (2), (3) or (4) 
of this section, as the case may be, or if a lessee or operator does not 
comply with subsection (5) in relation to an application, the Minister 
may, by written notice, 
	(a)	reject the application, or
	(b)		notify the lessees of the deficiencies or non-compliance and 
the period of time within which the lessees must rectify the 
deficiencies or non-compliance, and reject the application if 
the deficiencies or non-compliance are not rectified within 
that period. 
(7)  Subject to section 11(7), an application that is rejected by the 
Minister may not be revived, however nothing in this section precludes 
the lessees who made the rejected application from submitting a new 
application under this section in relation to the proposed Project or 
amendment.
Approvals 
11(1)  The Minister may by order approve a Project for which an 
application for approval is made under section 10(1) of this Regulation 
or section 15(1) of the Prior Regulation, or reject the application, and 
in doing so shall, without limitation, take into consideration at least the 
following:
	(a)	whether the Project will be substantially operationally 
integrated and operated under common management;
	(b)	whether any part of the Project, other than a processing plant 
for the obtaining of synthetic crude oil from oil sands or 
crude bitumen, is more than 50 kilometres distant from any 
other part of the Project;
	(c)	whether all the parts of the Project, other than a processing 
plant referred to in clause (b), are substantially 
geographically contiguous;
	(d)	whether any parts of the Project will be located outside 
Alberta;
	(e)	whether the Project, if it is not a demonstration project,
	(i)	will predominantly generate net revenue rather than net 
losses, and
	(ii)	can reasonably be expected to achieve payout as 
described in section 25
		during the period the Project is expected to be conducted;
	(f)	whether the Project is likely to exceed the maximum 
production capacity and the maximum period of time for 
expansion of the Project's production capacity that the 
Minister considers appropriate for the Project.
(2)  Subject to subsection (3), the Minister may by order approve an 
amendment to a Project for which an application for approval is made 
under section 10(3) of this Regulation or section 15(3) of the Prior 
Regulation, or reject the application, and in doing so shall, without 
limitation, take into consideration at least
	(a)	the items referred to in subsection (1)(a) to (f), and
	(b)	the overall impact the Minister anticipates the amendment 
will have on royalty payable to the Crown, in relation to both 
the Project and otherwise, where the Minister makes the 
determination of overall impact using, as the discount rate to 
determine the present value of future royalty payments, the 
Minister's estimate of the return allowance rate, as defined in 
the Oil Sands Allowed Costs (Ministerial) Regulation, for the 
period for which the present value is being determined by the 
Minister.
(3)  Subsection (2)(b) does not apply if
	(a)	the amendment that is the subject-matter of the application 
relates to a proposed Project expansion for a Project, and
	(b)	the Minister, 
	(i)	in approving the Project pursuant to subsection (1), has 
already considered the proposed Project expansion 
when considering the Project for the purposes of the 
consideration referred to in clause (e) of that subsection, 
or
	(ii)	in approving the Project pursuant to section 16(1) of the 
Prior Regulation, has already considered the proposed 
Project expansion when considering the Project for the 
purposes of the consideration referred to in section 
17(3)(f) of that Regulation,
		and determined that the Project, contemplating the potential 
inclusion of the proposed Project expansion, was acceptable 
in relation to that consideration.
(4)  An order under subsection (1) approving a Project must specify at 
least the following:
	(a)	a name for the Project;
	(b)	a description of the Project;
	(c)	the prior net cumulative balance of the Project;
	(d)	the effective date of the Project;
	(e)	any terms and conditions to which the approval is subject, 
including, without limitation, the maximum production 
capacity of the Project and the maximum period of time for 
expansion of the production capacity of the Project.
(5)  An order under subsection (2) approving an amendment to a 
Project must specify at least the following contemplated by or relating 
to the amendment:
	(a)	any change to the name of the Project;
	(b)	any change to the description of the Project, or a restated 
description of the Project that combines the description of the 
Project prevailing immediately prior to approval of the 
amendment with any changes to that description arising from 
the amendment;
	(c)	the prior net cumulative balance of a Project expansion, if 
any;
	(d)	the effective date of the amendment;
	(e)	any changes to, or any new, terms and conditions to which 
the approval for the Project is subject, which may include, in 
the case of an amendment to a Prior Project, a term or 
condition that specifies a maximum daily production 
capacity, and the maximum period of time for expansion, of 
the Project.
(6)  In specifying the content of an order under subsection (1) or (2), 
the Minister 
	(a)	shall do so taking into consideration, without limitation, at 
least the items referred to in those respective subsections 
required to be taken into consideration in making the 
decision to approve the Project or amendment, as the case 
may be, and
	(b)	is not required to conform to the content or information 
provided in, or in relation to, the application in respect of 
matters addressed or required to be addressed in the order.
(7)  If the Minister decides to reject an application made under section 
10(3) of this Regulation or section 16(1) of the Prior Regulation for 
reasons other than those referred to in section 10(6) and the application 
was for approval of a proposed Project expansion, 
	(a)	the Minister may treat the application as one made under 
section 10(1) for approval of the proposed Project expansion 
as a separate Project from that proposed to be amended in the 
application, and
	(b)	the provisions of this Part that apply in relation to an 
application under section 10(1) shall apply in relation to the 
application if the Minister chooses to treat the application as 
described in clause (a), 
if the lessees have requested in the application that the application be 
treated as described in clause (a) in those circumstances.
(8)  If the Minister decides to reject an application for reasons other 
than those referred to in section 10(6), the Minister shall, by written 
notice, inform the lessees who made the application of the Minister's 
decision
	(a)		to treat the application in accordance with subsection (7), in 
the case of an application to which that subsection applies, or
	(b)	to reject the application and of the reasons for the decision.
Ministerial amendments
12(1)  Subject to this section, the Minister may, by order on the 
Minister's own initiative, amend an order issued under section 11 or 
this section or a Prior Approval.
(2)  The Minister may not, pursuant to subsection (1), amend the 
description of the Project specified in an order issued under section 11 
or this section or in a Prior Approval unless 
	(a)	the amendment corrects a clerical error in the description of 
the Project, or an error in the description that the Minister is 
satisfied arises as a result of a clerical error in the application 
or in any other information that the Minister relied on to 
specify the description,
	(b)	the amendment removes from the description of the Project a 
capital asset 
	(i)	that has been disposed of to a person who is not a lessee 
in respect of the Project,
	(ii)	that is used to produce, gather, compress, process or 
reprocess solution gas recovered through Project 
operations, if the Minister is of the opinion that the 
solution gas is being disposed of on more than an 
isolated basis, or
	(iii)	that is a core or supporting asset in respect of which the 
Minister is of the opinion that
	(A)	the use of the asset for the purposes of the Project 
during the previous Period as a percentage of the 
total use of the asset for all purposes during that 
Period was less than the Project use threshold, and
	(B)	the sustained use of the asset over the remaining 
useful life of the asset for the purposes of the 
Project as a percentage of the total use of the asset 
for all purposes is unlikely to equal or exceed the 
Project use threshold,
	(c)	the amendment relates to any other part of the Project 
description that in the Minister's opinion should be changed 
as a result of the removal of a capital asset from the 
description of the Project pursuant to clause (b), or
	(d)	a Board approval relating to the whole or any part of the 
Project is amended by the Board and the Minister is of the 
opinion that the amendment to the description of the Project 
should be made to make the description conform to the Board 
approval. 
(3)  Section 14(3) applies in relation to the formulation of an opinion 
by the Minister for the purposes of subsection (2)(b)(iii).
(4)  An order under subsection (1) must specify at least the following:
	(a)	any change to the name of the Project;
	(b)	any change to the description of the Project, or a restated 
description of the Project that combines the description of the 
Project prevailing immediately prior to the making of the 
order with any changes to that description arising from the 
order;
	(c)	the effective date of any changes to the description of the 
Project, which may be earlier than, the same as or later than 
the date the order is made;
	(d)	any amendment to any prior net cumulative balance relating 
to the Project;
	(e)	any change to the effective date of the Project, Project 
expansion or Prior Project expansion, as the case may be;
	(f)	any changes to, or any new, terms and conditions of the 
approval to which the order relates.
(5)  The Minister shall, at least 30 days before making an amendment 
pursuant to subsection (1), give the operator of the Project notice of the 
Minister's intention to make the amendment, unless the operator 
waives this requirement.
(6)  The Minister shall notify the operator of the Project of
	(a)	any amendment made pursuant to subsection (1), and
	(b)	any decision by the Minister not to make an amendment in 
respect of which a notice was given to the operator under 
subsection (5).
(7)  The Minister may at any time, for administrative convenience, 
issue an amended and restated Project approval order for a Project, 
consolidating any Prior Approval or approval order issued under 
section 11(1) in respect of the Project and all amendment approval 
orders issued under section 11 and this section in respect of the Project.
Effective date
13   The effective date of a Project or Project expansion must not be 
earlier than either of the following:
	(a)	the first day of the month in which the application for 
approval of the Project or amendment relating to the 
expansion is received by the Minister;
	(b)		the first day of the month that precedes by 9 months the 
month in which the Project or amendment relating to the 
expansion is approved by the Minister.
Project description
14(1)  A description of a Project specified or amended under section 
11 or 12 must include
	(a)	a description of the operations that will be undertaken 
pursuant to the Project, including the major activities to be 
undertaken, and the principal technologies and 
methodologies to be employed, for or in respect of the 
operations,
	(b)	a listing and description of the kinds of oil sands products 
that will be recovered or obtained pursuant to the Project, 	
	(c)	a description of the core or supporting assets included in the 
Project, and
	(d)	a description of the area and strata from which oil sands or 
oil sands products will be recovered pursuant to the Project 
and of the surface areas to be occupied by the Project.
(2)  Subject to subsection (10), a capital asset may be included in the 
description of a Project if 
	(a)	the asset is a core or supporting asset,
	(b)	the Minister is of the opinion that the sustained use of the 
asset over the remaining useful life of the asset for the 
purposes of the Project as a percentage of the total use of the 
asset for all purposes is likely to equal or exceed the Project 
use threshold, and
	(c)	all approvals required by law in relation to the asset are 
subsisting.
(3)  In forming an opinion for the purposes of subsection (2)(b), the 
Minister 
	(a)	may, without limitation, base the Minister's opinion on 
measures of relative use such as time of use for the purposes 
of the Project and for other purposes, or proportion of 
delivery of output for the Project and other than for the 
Project, and
	(b)	shall, where the capital asset is a processing plant or 
cogeneration plant referred to in subsection (5), (6) or (8), 
form the Minister's opinion on the basis that the proportion 
of the whole or part of the processing plant or cogeneration 
plant, as the case may be, that may be included in the Project 
is the capital asset.
(4)  Capital assets may not be partially included in the description of a 
Project except as provided in subsections (5), (6) and (8).
(5)  If the ownership of a processing plant, other than a processing 
plant described in subsection (6), is held by one or more lessees of a 
Project along with one or more persons who are not lessees of the 
Project, the Minister may include in the description of the Project a 
proportion of the plant that is the same as the proportion of the 
ownership of the plant that is held by lessees of the Project.
(6)  Subject to subsection (7), the Minister may include in the 
description of a Project a part of a processing plant that is designated 
by the Minister as an integrated upgrader for the purposes of this 
section, or a proportion of the plant or part of the plant.
(7)  In making a decision under subsection (6), the Minister shall, 
without limiting any other factors that the Minister may consider, take 
into consideration at least the following:
	(a)	the extent to which portions of the plant would comprise core 
or supporting assets in relation to the kinds of oil sands 
products to be recovered or obtained pursuant to the Project;
	(b)	the proportionate ownership of the plant by lessees of the 
Project and persons who are not lessees of the Project, where 
the plant is owned by both kinds of persons. 
(8)  Subject to subsection (9), the Minister may include in the 
description of a Project the whole or any part of a cogeneration plant or 
a proportion of the plant or part of the plant.
(9)  In making a decision under subsection (8), the Minister shall, 
without limiting any other factors that the Minister may consider, take 
into consideration at least the following:
	(a)	the extent to which thermal energy or electricity, or both, 
produced from the plant will, in the Minister's opinion, be 
utilized for the purposes of the Project;
	(b)	the proportionate ownership of the plant by lessees of the 
Project and persons who are not lessees of the Project, where 
the plant is owned by both kinds of persons.
(10)  The Minister shall not include in the description of a Project a 
diluent recovery unit that is part of a processing plant unless 
	(a)	the whole of the processing plant is included in the 
description of the Project, or
	(b)	a proportion of the whole of the plant has been included in 
the description of the Project pursuant to subsection (5) or (6) 
and the proportion of the diluent recovery unit included in the 
description of the Project is the same as the proportion of the 
plant included in the description of the Project.
Prior net cumulative balance
15(1)  The Minister shall determine the prior net cumulative balance 
of a Project, other than a Prior Project, or of a Project expansion in 
accordance with this section.
(2)  In determining the prior net cumulative balance of a Project or of a 
Project expansion, the Minister shall, without limitation, take into 
consideration at least the following with respect to amounts to be 
included in determining the prior net cumulative balance:
	(a)	the costs of the Project or of the expansion, respectively, 
incurred during the period of 3 years preceding the effective 
date of the Project or expansion;
	(b)	the costs of the Project or of the expansion, respectively, 
incurred during the period comprising the whole or the 
portion of the 4th and 5th years preceding the effective date 
of the Project or expansion, as the case may be, during which 
the obtaining of the approval of the Board under the Oil 
Sands Conservation Act for a scheme or operation included 
in whole or in part in the Project or expansion subsequent to 
the 4th year preceding the effective date of the Project or 
expansion, as the case may be, was diligently pursued;
	(c)	the costs of the tangible assets of the Project or of the 
expansion, respectively, incurred prior to the periods referred 
to in clauses (a) and (b), to the extent the Minister is satisfied 
that the use of the assets in relation to the Project after the 
effective date of the Project or expansion, as the case may be, 
will clearly result in significant savings of costs to the 
Project;
	(d)	the aggregate of the proceeds of royalty and the royalty 
compensation paid to the Crown
	(i)	pursuant to the Oil Sands Royalty Regulation, 1984 (AR 
166/84) on Project substances recovered from the 
development area of the Project or expansion, as the 
case be, prior to the effective date of the Project or 
expansion, respectively, and
	(ii)	pursuant to section 26 or 27 of this Regulation on oil 
sands or oil sands products recovered from the 
development area of the Project or expansion, as the 
case may be, prior to the effective date of the Project or 
expansion, respectively. 
(3)  In determining the prior net cumulative balance of a Project or of a 
Project expansion, the Minister shall, without limitation, take into 
consideration at least the following with respect to amounts to be 
excluded in determining the prior net cumulative balance:
	(a)	the costs referred to in subsection (2)(a), (b) and (c),
	(i)	incurred during any portion of the periods referred to in 
those clauses when development of oil sands in the 
development area of the Project or the area and strata to 
be added to the development area by virtue of the 
Project expansion, as the case may be, was, in the 
Minister's opinion, substantially suspended or 
abandoned,
	(ii)	incurred to recover or obtain oil sands or oil sands 
products to which the Experimental Oil Sands Royalty 
Regulation (AR 347/92) applies, 
	(iii)	to the extent they would not be allowed costs under the 
Oil Sands Allowed Costs (Ministerial) Regulation if 
they had been incurred after the effective date of the 
Project or Project expansion, as the case may be, or
	(iv)	to the extent they are not evidenced by original 
invoices, receipts, contracts, timesheets or other like 
original documentation;  
	(b)	the costs in respect of which IETP costs have been 
established.
(4)  In determining the prior net cumulative balance of a Project or of a 
Project expansion, the Minister shall, without limitation, take into 
consideration at least the following with respect to amounts to be 
deducted in determining the prior net cumulative balance:
	(a)	any consideration received or receivable in respect of the 
Project or Project expansion, as the case may be, during the 
periods referred to in subsection (2)(a), (b) and (c) that, had 
they been received or receivable after the effective date of the 
Project or Project expansion, respectively, would have 
comprised other net proceeds of the Project;
	(b)	any consideration received or receivable during the periods 
referred to in subsection (2)(a), (b) and (c) in respect of 
Project substances.
(5)  If the amounts included by virtue of subsection (2) and not 
excluded by virtue by subsection (3) in determining a prior net 
cumulative balance exceed, are equal to, or are exceeded by, the 
amounts deducted in determining the prior net cumulative balance, the 
amount of the prior net cumulative balance shall be considered a 
positive amount, zero or a negative amount, respectively.
(6)  Despite subsections (2) through (5), the Minister may determine as 
the prior net cumulative balance of a Project or of a Project expansion 
the amount determined in the proposed calculation specified under 
section 10(2)(h) or (4)(h), respectively, if the Minister is satisfied that 
the amount so determined would be less than the prior net cumulative 
balance that would be determined pursuant to subsections (2) through 
(5).
Amendment of prior net cumulative balance
16(1)  Subject to this section, the Minister may, on the request of the 
operator of the Project or on the Minister's own initiative, amend a 
prior net cumulative balance in relation to a Project, Project expansion 
or Prior Project expansion, other than a prior net cumulative balance 
determined under section 15(6).
(2)  The Minister may not amend a prior net cumulative balance 
pursuant to subsection (1) on the request of the operator of the Project 
if the request is received by the Department after the earlier of
	(a)	the date the Minister notifies the operator that the 
examination of records pursuant to section 10(5) in respect of 
that prior net cumulative balance has concluded, and
	(b)	the later of
	(i)	December 31, 2009, and
	(ii)	the last day of the 4th year following the year in which 
the effective date of the Project, Project expansion or 
Prior Project expansion, as the case may be, falls.
(3)  Subject to subsection (4), the Minister may not amend a prior net 
cumulative balance pursuant to subsection (1) on the Minister's own 
initiative after the earlier of
	(a)	the date the Minister notifies the operator of the Project that 
the examination of records pursuant to section 10(5) in 
respect of that prior net cumulative balance has concluded, 
and
	(b)	the later of
	(i)	December 31, 2009, and
	(ii)	the last day of the 4th year following the year in which 
the effective date of the Project, Project expansion or 
Prior Project expansion, as the case may be, falls.
(4)  Subsection (3) does not apply
	(a)	if an amendment to the prior net cumulative balance of a 
Project or Project expansion beyond the time limit specified 
in that subsection is made necessary by reason of 
	(i)	fraud, or 
	(ii)	misrepresentation attributable to neglect, carelessness or 
wilful default 
		in the creation, maintaining or concealment of a record 
subject to examination pursuant to section 10(5) or section 
15(5) of the Prior Regulation, or in the filing or submission 
of any report or other information in connection with the 
determination of the prior net cumulative balance, or 
	(b)	if the Minister is of the opinion that full access to any record 
for examination in accordance with section 10(5) or section 
15(5) of the Prior Regulation, or complete co-operation in 
relation to an examination in accordance with either of those 
sections, was not provided.
(5)  The Minister shall, at least 30 days before amending the prior net 
cumulative balance of a Project, Project expansion or Prior Project 
expansion on the Minister's own initiative, give notice of the 
Minister's intention to make the amendment to the operator of the 
Project.
(6)  The Minister shall notify the operator of the Project of
	(a)	any amendment made to a prior net cumulative balance 
relating to the Project,  
	(b)	the Minister's refusal of a request by the operator to amend a 
prior net cumulative balance relating to the Project, and
	(c)	a decision by the Minister not to make an amendment 
described in a notice given under subsection (5). 
Revocation 
17(1)  The lessees of a Project may apply for the revocation by the 
Minister of an approval made under section 11, or of a Prior Approval, 
in respect of the Project.
(2)  The Minister may by order, in respect of a Project, revoke an 
approval made under section 11, a Prior Approval or an order made 
under section 12 if
	(a)	the lessees of the Project have applied for revocation of the 
approval, and the overall impact the Minister anticipates 
revocation of the approval will have on royalty payable to the 
Crown, in relation to both the Project and otherwise, is 
acceptable to the Minister,
	(b)	the Minister is satisfied that
	(i)	fraud, or 
	(ii)	misrepresentation attributable to neglect, carelessness or 
wilful default 
		occurred in the filing or submission of the application for the 
approval or of any other information in connection with the 
application, or in the creation, maintaining or concealment of 
a record subject to examination pursuant to section 10(5) or 
section 15(5) of the Prior Regulation, or otherwise relating to 
the application, order or Project,
	(c)	a requirement set out in section 10(1)(a), (b) or (c) ceases to 
be satisfied in relation to the Project,
	(d)	any term or condition of the approval or order has been 
breached and, if the breach is capable of rectification, the 
breach has not been rectified within the period of time 
specified in a notice given to the operator of the Project 
informing the operator of the breach,
	(e)	the operator or a lessee of the Project has materially or 
repeatedly breached any provision of the Act, of any 
regulations under the Act or of any enactment referred to in 
section 6(1)(b),
	(f)	the Project has been abandoned, or
	(g)	all the agreements granting the right to recover oil sands or 
oil sands products from the development area of the Project 
have expired or been cancelled.
(3)  The Minister shall
	(a)	 at least 30 days before revoking an approval or order 
pursuant to subsection (2)(b) to (g), give the operator of the 
Project notice of the Minister's intention to revoke the 
approval or order,
	(b)	notify the operator of the Project of the revocation of any 
such approval or order, and
	(c)	notify the lessees of the revocation of an approval, or of the 
Minister's refusal to revoke an approval, in the case of a 
revocation requested under subsection (1).
(4)  An order made under subsection (2) may include any terms and 
conditions to which the order is subject.
(5)  The lessees of the agreement, the location of which contained the 
area and strata included in the development area of a Project for which 
an approval or order is revoked under this section, shall comply with 
any terms and conditions in the order effecting the revocation.
Part 3 
Costs and Revenues
Timing of costs 
18(1)  For the purposes of this Regulation, an allowed cost
	(a)	is, in the case of a cost that becomes payable on or after 
January 1, 2009, deemed to be incurred
	(i)	in the month in which the cost is payable, to the extent 
of the amount of the cost that is paid within 90 days 
after the cost becomes payable, or
	(ii)	in the month in which the cost is paid, to the extent of 
the amount of the cost that is paid more than 90 days 
after the cost becomes payable, 
		or
	(b)	is deemed to be incurred when the cost is paid, if the cost 
becomes payable before January 1, 2009, is paid on or after 
that date, and is not deemed by section 7(2)(a) of the Prior 
Regulation to be incurred before that date.
(2)  Despite subsection (1), if services or materials have been supplied 
in relation to a Project by a lessee or the operator of the Project, or an 
affiliate of either of them, and no invoice for those services or 
materials is subsequently sent by the lessee, the operator or the 
affiliate, the cost of the services or materials is deemed to be incurred 
in the month in which the services were supplied or the materials were 
received at any part of the surface areas occupied by the Project.
(3)  For the purposes of this Regulation, a cost considered in 
determining prior net cumulative balance under Part 2 is deemed to be 
incurred
	(a)	in the month in which the cost is payable, to the extent of the 
amount of the cost that is paid within 90 days after the cost 
becomes payable, or
	(b)	in the month in which the cost is paid, to the extent of the 
amount of the cost that is paid more than 90 days after the 
cost becomes payable.
General rules for costs and revenues 
19(1)  Subsections (2), (3) and (4) apply to the determination of any 
consideration that is part of the calculation or determination of TC, as 
described in section 32(2), (3), (4) or (5), other net proceeds or prior 
net cumulative balance under this Regulation.
(2)  When consideration other than money is received or receivable, 
whether alone or in addition to money, the amount of the consideration 
is deemed to be the greater of
	(a)	its fair market value, and
	(b)	the value agreed to by the persons giving and receiving the 
consideration.
(3)  Subject to subsection (4), when consideration, whether in the form 
of money or otherwise, is received or receivable under a non-arm's 
length transaction by a lessee or operator of a Project or non-Project 
well event, or a person affiliated with either of them, the amount of the 
consideration is deemed to be the greater of
	(a)	the fair market value of the thing for which the consideration 
is received or receivable, and
	(b)	the aggregate of the amount of money received or receivable 
and the amount determined in accordance with subsection (2) 
with regard to any consideration other than money.
(4)  When an asset is
	(a)	removed from the description of a Project, and
	(b)	included in the description of another Project,
and the lessees of either Project are the lessees of the other Project or 
are affiliated with the lessees of the other Project, the Minister may, 
instead of determining the fair market value of the asset pursuant to 
section 20 and subsection (3)(a) of this section as the amount of the 
consideration received or receivable for the asset for the purposes of 
section 23(2)(a)(i), determine as the amount of the consideration the 
amount of the allowed costs for the asset of the Project referred to in 
clause (b).
(5)  When no consideration is received or receivable under a 
transaction, consideration in the amount of the fair market value of the 
thing for which no consideration is received or receivable is deemed to 
have been received or receivable.
(6)  The following is excluded from any cost, charge, revenue, price, 
value, consideration, proceeds or royalty compensation that is part of a 
calculation or determination under this Regulation:
	(a)	the amount of any taxes paid, payable or collected under Part 
IX of the Excise Tax Act (Canada) by or on behalf of the 
lessees of a Project or non-Project well event;
	(b)	the amount of any revenues, payments and costs arising in 
relation to transactions that are, in the Minister's opinion, 
entered into to hedge price risk in relation to a commodity or 
currency, but not including
	(i)	contracts of insurance, surety, guarantee or indemnity, 
	(ii)	contracts for the forward disposition or acquisition of a 
commodity where delivery or receipt, respectively, of 
the commodity actually occurs under the contract, or
	(iii)	contracts that hedge price risk specifically in relation to 
allowed costs of a Project or currency required to pay 
such costs.
Fair market value for revenues
20(1)  The amount of any fair market value referred to in this 
Regulation is the value determined by the Minister in accordance with 
this section.
(2)  In determining fair market value of anything under this 
Regulation, other than pipeline transportation service or an oil sands 
product, the Minister may, without limiting any other method for 
determining fair market value, 
	(a)	adopt any of the following methodologies if the Minister is of 
the opinion that comparable open markets exist in relation to 
the thing for which fair market value is required to be 
determined:
	(i)	the price of comparable things, if that price is published 
and generally adopted by buyers and sellers of such 
things;
	(ii)	a price for comparable things prescribed or determined 
pursuant to a regulation or statute other than this 
Regulation;
	(iii)	an average of the prices paid for comparable things in 
arm's length transactions, 
		or
	(b)	adopt any of the following methodologies if the Minister is of 
the opinion that comparable open markets do not exist in 
relation to the thing for which fair market value is required to 
be determined:
	(i)	the amount charged by the lessees of the Project for the 
thing;
	(ii)	the actual cost incurred by the lessees, operator or 
affiliate of either of them to produce the thing, if it is 
not obtained by the lessees, operator or affiliate from 
another person;
	(iii)	the actual cost incurred by the person from whom the 
thing was obtained by the lessees, operator or affiliate 
of either of them to produce the thing;
	(iv)	the net book value of the thing according to the records 
of the Department, or if the Department has no such 
records, the records of the owner of the thing.
(3)  In determining, for the purposes of this Regulation, the fair market 
value of pipeline transportation service provided using a pipeline that 
is included in the description of a Project, the Minister may, without 
limiting any other method of determining fair market value but subject 
to subsections (5) to (7), adopt
	(a)	a tariff charged for the service, if the tariff is fixed or 
approved for such service by a regulatory authority having 
jurisdiction to do so,
	(b)	the tariff charged for the service by the lessees or operator of 
the Project if, in the Minister's opinion,
	(i)	clause (a) does not apply,
	(ii)	the pipeline is subject to regulation on a complaints 
basis,
	(iii)	the tariff is generally agreed to and paid by persons who 
obtain the service under an arm's length transaction,
	(iv)	the tariff is just and reasonable in the circumstances,
	(v)	all tariffs charged for the service are published, and
	(vi)	no tariff or any other term for the service unjustly 
discriminates among persons seeking to obtain or 
obtaining such service,
		or
	(c)	the weighted average of the prices paid for comparable 
service by persons under arm's length transactions or, if the 
Minister is satisfied no comparable service is provided, the 
weighted average of the prices paid by persons under arm's 
length transactions with the lessee or operator for pipeline 
transportation service provided using the pipeline if, in the 
Minister's opinion,
	(i)	clauses (a) and (b) do not apply,
	(ii)	the pipeline is subject to regulation on a complaints 
basis,
	(iii)	not less than 2/3 of the quantities of substances 
transported by means of the pipeline during the period 
the weighted average is adopted obtain that service 
under arm's length transactions, and
	(iv)	the weighted average of prices is just and reasonable in 
the circumstances.
(4)  The Minister may adjust a tariff or weighted average of prices 
referred to in subsection (3) to reflect differences between the terms of 
service applicable in respect of the tariff or weighted average of prices 
and the terms of service applicable in respect of the pipeline 
transportation service actually provided.
(5)  For the purposes of subsection (3), "subject to regulation on a 
complaints basis" means subject to a process pursuant to legislation 
whereby a customer or potential customer for pipeline transportation 
service can complain regarding the charge for or terms of the service, 
or both, to a regulatory authority having jurisdiction to hear such a 
complaint and to fix the charge and terms of service.
(6)  In determining the fair market value of an oil sands product, the 
Minister may, without limiting any other method for determining fair 
market value, 
	(a)	adopt a value determined by the Minister on the basis of 
arm's length transactions occurring in comparable open 
markets in relation to the oil sands product or similar 
commodities if the Minister is of the opinion that a 
comparable open market exists in relation to the oil sands 
product or the similar commodities, or
	(b)	adopt any of the following prices or methodologies if the 
Minister is of the opinion that comparable open markets do 
not exist in relation to the oil sands product or a similar 
commodity:
	(i)	a price for that kind of oil sands product, or a similar 
kind of commodity, prescribed or determined  pursuant 
to a regulation or statute other than this Regulation,
	(ii)	a price derived from the prices of products that could be 
obtained from the oil sands product or from the prices 
of commodities similar to those products, or
	(iii)	a price derived from prices for the feedstock from which 
the oil sands product or products similar to the oil sands 
product could be obtained, or from prices for similar 
feedstock. 
(7)  Subject to subsection (8), a price, average of prices, cost,  charge, 
value, methodology or a tariff may be adopted by the Minister 
pursuant to subsection (2), (3) or (6) for such period or periods as the 
Minister may specify from time to time.
(8)  A price, average of prices, cost, charge, value, methodology or 
tariff adopted by the Minister pursuant to subsection (2), (3) or (6) 
ceases to apply prior to the end of the period or periods specified under 
subsection (7) if any requirement specified in subsection (2), (3) or (6) 
with respect to the adoption of the price, average of prices, cost, 
charge, value, methodology or tariff ceases to be met.
Calculated value
21(1)  If the Minister is of the opinion that a fair market value referred 
to in a provision of this Regulation, other than section 20, cannot 
reasonably be determined pursuant to section 20, the Minister may, 
employing engineering, economic or financial principles, determine a 
calculated value for the thing for which the provision contemplated the 
use of a fair market value.
(2)  If the Minister has determined a calculated value pursuant to 
subsection (1), the calculated value shall be used in the provision 
referred to in that subsection in place of the fair market value.
Revenue 
22(1)  The Project revenue of a Project is, in respect of a post-payout 
Period or a month of a pre-payout Period, the aggregate of the products 
calculated by multiplying
	(a)	each quantity of
	(i)	blended bitumen that contains crude bitumen recovered 
pursuant to the Project from the Project's development 
area, and
	(ii)	each oil sands product, other than crude bitumen 
referred to in subclause (i), recovered pursuant to the 
Project from the Project's development area,
			that is delivered at a royalty calculation point for the crude 
bitumen or other oil sands product, as the case may be, 
during the Period or month respectively, 
by
	(b)	the unit price applicable to the blended bitumen or the oil 
sands product referred to in clause (a)(ii), as the case may be, 
for the Period or month respectively.
(2)  The gross revenue of a Project in respect of a post-payout Period 
or a month of a pre-payout Period is the Project revenue of the Project 
for that Period or month, respectively, minus the cost of diluent 
contained in any blended bitumen included in the calculation of the 
Project revenue.
(3)  The cost of diluent referred to in subsection (2) is the product of 
the total volume of the diluent contained in the blended bitumen 
multiplied by the weighted average cost per unit volume of that diluent 
calculated in accordance with the Minister's directions.
Other net proceeds
23(1)  The "other net proceeds" of a Project are
	(a)	the amounts described in subsection (2),
excluding
	(b)	any amounts described in subsection (3).
(2)  The following are the amounts for the purposes of subsection 
(1)(a):
	(a)	any consideration received or receivable from the sale, lease, 
licence or other disposition of any
	(i)	substances or assets of the Project, other than oil sands 
products, or
	(ii)	technology developed pursuant to, or for the purposes 
of, the Project;
	(b)	any proceeds received or receivable
	(i)	under a contract of insurance, as defined in the 
Insurance Act, providing for property insurance in 
relation to the Project, and including property insurance 
in relation to profits, earnings, pecuniary interests and 
indirect losses of the lessees or operator of the Project;
	(ii)	pursuant to a judgment of a court, or in settlement of 
litigation or threatened litigation, in relation to the 
Project, other than a judgment or litigation or threatened 
litigation against the Crown in respect of amounts paid 
or payable to the Crown under section 90 of the Act as 
that section stood on October 1, 2008 or under this 
Regulation in relation to the Project;
	(iii)	as a refund of a deposit paid to secure the performance 
of reclamation or abandonment in relation to the 
Project;
	(c)	any consideration received or receivable for transporting, or 
for granting the right to transport, by means of the 
transportation facilities of the Project, oil sands or oil sands 
products not owned by or on behalf of the lessees of the 
Project;
	(d)	any consideration received or receivable for
	(i)	processing, or granting the right to process, oil sands or 
oil sands products not owned by or on behalf of the 
lessees of the Project, in a processing plant or a part of a 
processing plant, the whole or a proportion of which is 
included in the description of the Project, or
	(ii)	producing thermal energy or electricity in a 
cogeneration plant, or a part of a cogeneration plant, the 
whole or a proportion of which is included in the 
description of the Project where the thermal energy or 
electricity is not utilized for the purposes of the Project, 
			to the extent that such processing or production utilizes any 
part of the capacity of the plant or of the part of the plant, as 
the case may be, that corresponds to the proportion of the 
plant or part, respectively, included in the description of the 
Project;
	(e)	the aggregate of the products obtained by multiplying
	(i)	each quantity of
	(A)	blended bitumen that contains crude bitumen 
obtained pursuant to the Project from substances 
that are not Project substances but that are owned 
by or on behalf of the lessees of the Project, or
	(B)	each oil sands product, other than crude bitumen 
referred to in paragraph (A), obtained pursuant to 
the Project from substances that are not Project 
substances but that are owned by or on behalf of 
the lessees of the Project,
		that is delivered at a royalty calculation point for the 
crude bitumen or other oil sands product, as the case 
may be,
		by
	(ii)	the unit price applicable to the quantity;
	(f)	the amount, if any, by which the other net proceeds 
determined for the Project pursuant to this section for the 
preceding Period exceed the allowed costs of the Project for 
that preceding Period, if that preceding Period is a 
post-payout Period that commences on or after January 1, 
2009; 
	(g)	the amount, if any, by which the other net proceeds for 2008, 
determined for the Project pursuant to section 22 of the Prior 
Regulation, exceed the allowed costs of the Project for that 
same year, where "other net proceeds" and "allowed costs" 
have the same meaning as in the Prior Regulation;
	(h)	any consideration received or receivable for the use of an 
asset of the Project, other than for the purposes of the Project;
	(i)	an amount equal to the fair market value of an asset that is 
removed from the description of the Project without being 
sold, leased, licensed or otherwise disposed of;
	(j)	an amount equal to the net book value, determined by the 
Minister, of an asset that is used to gather, compress, process 
or reprocess any solution gas recovered through Project 
operations and that, without being sold, leased, licensed or 
otherwise disposed of, is removed from the description of the 
Project;
	(k)	the amount by which the consideration received or receivable 
for the disposition of a capital asset referred to in sections 
1(1)(c) and 11 of the Oil Sands Allowed Costs (Ministerial) 
Regulation by the person providing a good or service to the 
Project using the asset exceeds the cost determined for the 
asset pursuant to that section;
	(l)	the additive inverse of the prior net cumulative balance of the 
Project determined under section 15 or 16, excluding any 
expansions of the Project, if that prior net cumulative balance 
is a negative amount;
	(m)	the additive inverse of the prior net cumulative balance of a 
Project expansion of the Project determined under section 15 
or 16 if
	(i)	the Project payout date of the Project precedes the 
effective date of the Project expansion, and
	(ii)	that prior net cumulative balance is a negative amount;
	(n)	the amount by which the cumulative revenue of a Project 
exceeds the cumulative cost of the Project if
	(i)	the excess amount arises as a result of the approval of a 
Project expansion of the Project,
	(ii)	the prior net cumulative balance of the Project 
expansion is a negative amount, and
	(iii)	the Project payout date is the same day as the effective 
date of the Project expansion by virtue of the approval 
of the Project expansion;
	(o)	the net amount of any other proceeds and recoveries relating 
to the Project.
(3)  The following are the amounts for the purposes of subsection 
(1)(b):
	(a)	any consideration received or receivable for a disposition of a 
participating interest, an overriding royalty interest, a carried 
interest, a net profit interest or any other like interest in the 
Project;
	(b)	Project revenue of the Project;
	(c)	the consideration received or receivable for the sale or other 
disposition of an asset of the Project from a lessee of the 
Project to another lessee of the Project, if the asset remains in 
the description of the Project.
(4)  The terms "cumulative costs" and "cumulative revenue" have the 
meaning given to them in section 25.
Net revenue and net loss
24(1)  In this section and section 25,
	(a)	"amalgamated Project" means the Project that arises from the 
amalgamation of 2 or more Projects pursuant to an 
amendment approved under section 11(2);
	(b)	"amendment Period" means the Period of a Project during 
which the effective date of an amendment to the Project 
occurs that amalgamates it with one or more other Projects to 
form an amalgamated Project;
	(c)	"first amalgamated Period" means, in respect of an 
amalgamated Project that arises from the amalgamation of 2 
or more Projects pursuant to an amendment approved under 
section 11(2), the period of time that commences on the 
earliest day that an amendment Period of those Projects 
commences, and that ends on the earlier of
	(i)	the last day of the calendar year during which the 
effective date of the amendment occurs, and
	(ii)	the date on which the approval under section 16 of the 
Prior Regulation, a contract under section 9(a) of the 
Act or section 11 of this Regulation in respect of the 
amalgamated Project, as the case may be, is revoked.
(2)  Subject to subsection (4), the net revenue of a Project for a Period 
is the amount by which Project revenue of the Project for the Period 
exceeds the amount by which the allowed costs of the Project for the 
Period exceed the other net proceeds of the Project for the Period.
(3)  Subject to subsection (4), the net loss of a Project for a Period is 
the amount by which the allowed costs of the Project for the Period 
exceed the aggregate of the Project revenue and other net proceeds of 
the Project for the Period.
(4)  If, as of the day preceding the effective date of an amendment 
approved under section 11(2) that amalgamates 2 or more Projects, the 
Project payout date has occurred for at least one of the Projects being 
amalgamated, the net revenue and net loss of the amalgamated Project 
for its first amalgamated Period shall be determined on the basis of
	(a)	the aggregate allowed costs, the aggregate Project revenues 
and the aggregate other net proceeds, of the Projects being 
amalgamated, for the portions of their respective amendment 
Periods that precede the effective date of the amendment, and
	(b)	the allowed costs, Project revenue and other net proceeds of 
the amalgamated Project for the portion of the first 
amalgamated Period of the Project that commences on the 
effective date of the amendment.
Payout
25(1)  Subject to subsections (4) and (5), a Project achieves payout on 
	(a)	the effective date of the Project, in the case of a Project for 
which the prior net cumulative balance is zero or a negative 
amount, or
	(b)	the first day of the month during which the cumulative 
revenue of the Project first equals the cumulative cost of the 
Project, in the case of any other Project.
(2)  The cumulative cost of a Project referred to in subsection (1)(b) is 
the aggregate of the following amounts: 
	(a)	the prior net cumulative balance of the Project;
	(b)	the prior net cumulative balance of any Prior Project 
expansions or Project expansions included in the Project;
	(c)	the aggregate of the proceeds, and royalty compensation, 
paid to the Crown in respect of royalty 
	(i)	on Project substances reserved under section 29(1), and
	(ii)	on Project substances, as defined in the Prior 
Regulation, reserved under section 90(2) of the Act, as 
that section stood on October 1, 2008, if the Project is a 
Prior Project;
	(d)	allowed costs of the Project, other than allowed costs under 
Part 3 of the Oil Sands Allowed Costs (Ministerial) 
Regulation, incurred on or after January 1, 2009;
	(e)		allowed costs of the Project described in sections 15(3) and 
16(2) of the Oil Sands Allowed Costs (Ministerial) 
Regulation;
	(f)	if the Project is a Prior Project, the aggregate of  
	(i)	allowed costs of the Project incurred before January 1, 
2009, other than allowed costs described in section 4 of 
Schedule 1 or 2 to the Prior Regulation, as the case may 
be, and
	(ii)	allowed costs of the Project described in section 4(c) of 
Schedule 1 or 2 to the Prior Regulation, as the case may 
be, for a month prior to January 1, 2009,
			where "allowed cost" and "incurred" have the same meaning 
as in the Prior Regulation.
(3)  The cumulative revenue of a Project referred to in subsection (1) is 
the aggregate of the following:
	(a)	the Project revenue of the Project for the month commencing 
on the later of January 1, 2009 and the effective date of the 
Project, and for each subsequent month;
	(b)	other net proceeds of the Project arising on or after the later 
of January 1, 2009 and the effective date of the Project, other 
than other net proceeds described in section 23(2)(f) or (g);
	(c)	if the Project is a Prior Project, the aggregate of
	(i)	the Project revenue of the Project for all months prior to 
January 1, 2009, and
	(ii)	the other net proceeds of the Project arising prior to 
January 1, 2009, other than other net proceeds described 
in section 22(2)(e) of the Prior Regulation,
		where "Project revenue" and "other net proceeds" have the 
same meaning as in the Prior Regulation.
(4)  If, as of the day preceding the effective date of an amendment 
approved under section 11(2) that amalgamates 2 or more Projects, the 
Project payout date has occurred for at least one of the Projects being 
amalgamated, the amalgamated Project is deemed to be a Project that 
has achieved payout.
(5)  If, as of the day preceding the effective date of an amendment 
approved under section 11(2) that amalgamates 2 or more Projects, the 
Project payout date has not occurred for any of the Projects,
	(a)	the amalgamated Project is deemed as of the effective date to 
be a Project that has not yet achieved payout, and
	(b)	the aggregate of the cumulative costs of the Projects as of the 
day preceding the effective date of the amendment and the 
aggregate of the cumulative revenues of the Projects as of the 
same day shall, for the purpose of determining the Project 
payout date of the amalgamated Project, be the cumulative 
cost and cumulative revenue, respectively, of the 
amalgamated Project as of the commencement of the 
effective date of the amendment.
Part 4 
Royalty
Division 1 
Non-Projects
Non-Project mining operations
26(1)  The royalty reserved to the Crown on oil sands recovered by a 
non-Project mining operation pursuant to an agreement granting oil 
sands rights and delivered in a month at the boundary of the location of 
the agreement is 20% of the oil sands.
(2)  Royalty on oil sands under subsection (1) shall be free and clear of 
all deductions.
(3)  The Crown's title to the Crown's royalty share of any oil sands 
recovered by a non-Project mining operation pursuant to an agreement 
and delivered in a month at the boundary of the location of the 
agreement is automatically transferred to the lessee of the agreement 
immediately downstream from the place at the boundary where the oil 
sands is so delivered.
(4)  When the Crown's title to the Crown's royalty share of oil sands 
delivered in a month at the boundary of the location of the agreement 
pursuant to which the oil sands was recovered is transferred pursuant 
to subsection (3), the lessee to whom the title is transferred shall, not 
later than the last day of the following month, pay to the Crown, in 
respect of that royalty share, an amount equal to the product of the 
quantity of the royalty share measured in tonnes multiplied by the par 
price for oil sands prescribed for the month pursuant to section 8(a).
Non-Project well events
27(1)  The royalty reserved to the Crown on an oil sands product 
recovered from a non-Project well event pursuant to an agreement 
granting oil sands rights and delivered in a month from the well 
containing the well event is the royalty that would be reserved to the 
Crown under the Petroleum Royalty Regulation, 2009 if the oil sands 
product was crude oil.
(2)  Royalty on an oil sands product under subsection (1) shall be free 
and clear of all deductions.
(3)  The Crown's title to the Crown's royalty share of any oil sands 
product recovered from a non-Project well event is automatically 
transferred to the lessee of the well event at the point immediately 
downstream from the well containing the well event.
(4)  When the Crown's title to the Crown's royalty share of an oil 
sands product delivered in a month from a well is transferred pursuant 
to subsection (3), the lessee to whom the title is transferred shall, not 
later than the last day of the following month, pay to the Crown, in 
respect of that royalty share, an amount equal to the product of the 
quantity of the royalty share multiplied by the greater of zero and the 
unit value determined under subsection (5) for that kind of oil sands 
product for that month.
(5)  The unit value applicable to the Crown's royalty share for a month 
of each kind of oil sands product recovered from a non-Project well 
event is the value determined by the Minister as of the time the 
Crown's royalty share is transferred pursuant to subsection (3) taking 
into consideration, without limitation, dispositions during that month 
of that kind of oil sands product recovered from the well event, 
notwithstanding the consideration actually given for the Crown's 
royalty share when it was sold or otherwise disposed of.
Trucking costs and allowances
28(1)  The costs and allowances to which the Minister consents for a 
month in respect of the costs that are paid by the lessee of a 
non-Project well event during the month in trucking the Crown's 
royalty share of crude bitumen recovered from the well event 
	(a)	from the last facility at which impurities are removed from 
the crude bitumen before the crude bitumen is delivered into 
a pipeline, and
	(b)	to an unloading facility connected to a pipeline,
shall, subject to subsections (2), (3) and (4), and despite the transfer of 
the royalty share pursuant to section 27(3), be deducted from the 
royalty compensation payable by the lessee in respect of crude bitumen 
recovered from non-Project well events during that month.
(2)  The Minister may determine the amount of the costs and 
allowances referred to in subsection (1).
(3)  Subject to subsections (4) and (6), the Minister may, for the 
purposes of this section,
	(a)	estimate the amount of the costs and allowances for a lessee 
for a month and, subject to clause (b)(ii), consent to that 
estimated amount, and
	(b)	after the 3rd month following the month referred to in clause 
(a), determine the actual costs and allowances for the lessee 
for the month, and
	(i)	if the actual costs and allowances exceed the estimated 
amount referred to in clause (a), consent to further costs 
and allowances equal to the difference, or
	(ii)	if the estimated amount referred to in clause (a) exceeds 
the actual costs and allowances, invoice the lessee for 
the difference, or deduct the difference from costs and 
allowances consented to for the next month or months, 
as the case may be.
(4)  The costs and allowances consented to under this section in respect 
of a lessee for a month may not exceed the aggregate of the royalty 
compensation payable by the lessee for the month under section 27.
(5)  The lessee to whom an invoice is issued under subsection (3) shall 
pay the Crown the amount invoiced on or before the last day of the 
month following the month in which the invoice is issued.
(6)  It is a condition of any consent given under subsection (1) or (3) 
that
	(a)	the trucking of the Crown's royalty share from the place 
described in subsection (1)(a) to the place described in 
subsection (1)(b) occurred in an uninterrupted manner, and
	(b)	the Crown's royalty share, while being trucked, met the 
quality specifications in respect of the pipeline referred to in 
subsection (1)(b).
Division 2 
Projects
Royalty share from Projects
29(1)  The royalty reserved to the Crown, under each agreement 
granting oil sands rights in the development area of a Project, on each 
oil sands product recovered from the development area and delivered 
at a royalty calculation point for the product during each month of a 
pre-payout Period is the percentage, calculated in accordance with the 
following formula, of the quantity of the oil sands product so 
recovered and delivered:
RG% = 1% + [FG (A - B)]  
 
where
	RG%  	is the Crown's royalty share of the quantity expressed as 
a percentage;
	FG      	is 8% divided by $65 per barrel;
	A      	is the lesser of the WTI price for the preceding month 
and $120 per barrel;
	B     	is the lesser of A for the month and $55 per barrel. 
(2)  The royalty reserved to the Crown, under each agreement granting 
oil sands rights in the development area of a Project, on each oil sands 
product recovered from the development area and delivered at a 
royalty calculation point for the product during a post-payout Period is 
the greater of
	(a)	the percentage of the quantity of the oil sands product so 
recovered and delivered during the Period calculated in 
accordance with the following formula:
RG% = 1% + [FG (A - B)]  
 
where
	RG% 	is the Crown's royalty share of the quantity 
expressed as a percentage;
	FG  	is 8% divided by $65 per barrel;
	A   	is the lesser of the WTI price for the year 
containing the Period and $120 per barrel;
	B   	is the lesser of A for that year and $55 per barrel; 
		and
	(b)	the percentage of the quantity of the oil sands product so 
recovered and delivered during the Period calculated in 
accordance with the following formula:
RN% = [25% + (FN (A - B))][NR] 
                                 GR 
 
where
	RN%	is the Crown's royalty share of the quantity 
expressed as a percentage;
	FN    	is 15% divided by $65 per barrel;
	A    	is the lesser of the WTI price for the year 
containing the Period and $120 per barrel;
	B    	is the lesser of A for that year and $55 per barrel;
	NR 	is the net revenue of the Project for the Period;
	GR  	is the gross revenue of the Project for the Period.
(3)  For the purposes of subsections (1) and (2), 
	(a)	the WTI price for a month is the simple average of the WTI 
prices for the trading days of the month, where that simple 
average is converted to Canadian currency using the simple 
average of the daily actual USD/CAD (noon) exchange rates 
for that month,
	(b)	the WTI price for a year is the simple average of the simple 
averages of the WTI prices for the trading days of each of the 
months of the year, converted to Canadian currency using the 
simple average of the simple averages of the daily actual 
USD/CAD (noon) exchange rates for each of the months of 
the year, and
	(c)	RG% and RN% shall be expressed to the nearest 5th decimal 
place.
(4)  For the purposes of subsection (3),
	(a)	the WTI price for a trading day is the closing price for the 
day of the prompt month contract of Light Sweet Crude Oil 
(CL1) as traded in NYMEX,
	(b)	a trading day is a day during which a prompt month contract 
referred to in clause (a) is traded in NYMEX, and
	(c)	the actual USD/CAD (noon) exchange rate for a day is that 
published in relation to that day by the Bank of Canada.
(5)  If crude bitumen or cleaned crude bitumen recovered pursuant to a 
Project from the development area of the Project
	(a)	is delivered to a royalty calculation point for the crude 
bitumen or cleaned crude bitumen, and
	(b)	when so delivered is contained in a blend with diluent,
the royalty reserved under subsections (1) and (2) shall be calculated 
on the quantity determined by deducting from the quantity of blended 
bitumen the quantity of diluent contained in the blended bitumen.
(6)  Royalty on oil sands and oil sands products under this section shall 
be free and clear of all deductions.
Royalty calculation point 
30(1)  If an oil sands product recovered pursuant to a Project from the 
development area of the Project, other than crude bitumen processed, 
and cleaned crude bitumen obtained, as described in subsection (2), 
	(a)	is disposed of, or
	(b)	is permanently removed from Project facilities,
royalty shall be calculated on the quantity of the oil sands product at 
the place the product is permanently removed from Project facilities.
(2)  If oil sands or crude bitumen recovered from the development area 
of a Project, without first being disposed of, 
	(a)	is processed in a processing plant that is or is not included in 
the description of the Project, to obtain cleaned crude 
bitumen described in section 1(2)(a), and
	(b)	the cleaned crude bitumen 
	(i)	is disposed of, or
	(ii)	remains permanently removed from Project facilities, 
royalty shall be calculated on the quantity of the cleaned crude bitumen 
at the place the cleaned crude bitumen is delivered from the processing 
plant at which it is obtained.
(3)  For the purposes of sections 23(2)(e) and 32, the royalty 
calculation point of a Project for blended bitumen or an oil sands 
product described in section 23(2)(e)(i)(A) or (B), respectively, is the 
place that would be the royalty calculation point under subsection (2) 
or (1) for the crude bitumen contained in the blended bitumen or the oil 
sands product, respectively, if the crude bitumen or oil sands product 
were a Project substance.
Transfer of Crown's royalty share
31(1)  The Crown's title to the Crown's royalty share of any oil sands 
product recovered from the development area of a Project is 
automatically transferred at the point immediately downstream from 
the royalty calculation point for the product to the person who is, in 
relation to that royalty share, the owner of the lessee's share of the oil 
sands product.
(2)  When the Crown's title to the Crown's royalty share of an oil 
sands product is transferred pursuant to subsection (1), compensation 
is payable to the Crown in accordance with this Regulation in respect 
of that royalty share.
Unit price
32(1)  In this section,
	(a)	"handling charges" means the handling charges, export 
charges, pipeline tariff charges and charges of a similar 
nature that are paid to transport third party disposition 
quantities of a kind of oil sands product obtained pursuant to 
a Project that are disposed of in third party dispositions 
during a month or Period, as the case may be, from the 
royalty calculation point for the product to the place where 
those dispositions occur, but does not include 
	(i)	any charges that are allowed costs of the Project,
	(ii)	any charges that are taken into consideration in 
determining a prior net cumulative balance in respect of 
the Project,
	(iii)	any marketing costs or charges, brokerage fees or other 
like charges,
	(iv)	any cost of diluent referred to in section 22(2) or 
33(3)(a)(ii) or that is an allowed cost of the Project, and
	(v)	any costs or charges arising in relation to a diluent 
recovery unit;
	(b)	"NQ" means, in relation to a Project for a month or Period,
	(i) 	in the case of blended bitumen described in subsection 
(6)(a)(i), the volume of cleaned crude bitumen 
contained in the volume of blended bitumen determined 
by deducting from the production quantity of the Project 
for the month or Period, respectively, of blended 
bitumen, the third party disposition quantity of the 
Project for the month or Period, respectively, of blended 
bitumen, or
	(ii)	in the case of any other kind of oil sands product, the 
volume of the oil sands product determined by 
deducting from the production quantity of the Project 
for the month or Period, respectively, of that kind of oil 
sands product, the third party disposition quantity of the 
Project for the month or Period, respectively, of that 
kind of oil sands product;
	(c)	"oil sands product" includes blended bitumen that contains 
cleaned crude bitumen obtained pursuant to a Project; 
	(d)	"production quantity", for a month or Period, means, in 
relation to each kind of oil sands product obtained pursuant 
to a Project and delivered at a royalty calculation point for 
the product during the month or Period, respectively, the 
quantity of that kind of oil sands product so obtained and 
delivered during the month or Period, respectively;
	(e)		"third party disposition" means the first disposition of an oil 
sands product obtained pursuant to a Project and delivered at 
a royalty calculation point for the product, made
	(i)	in an arm's length transaction, whether or not the 
transaction is preceded by one or more non-arm's length 
transactions in which the oil sands product is disposed 
of, and
	(ii)	before the oil sands product is processed in order to 
produce other discrete kinds of oil sands products or is 
otherwise consumed or used;
	(f)	"TPD percentage for a month" means, in relation to each 
kind of oil sands product obtained pursuant to a Project and 
delivered at a royalty calculation point for the product during 
a month, the percentage that the third party disposition 
quantity of the Project for the month of that kind of product 
is of the production quantity of the Project for the month of 
that kind of product;
	(g)	"TPD percentage for a Period" means, in relation to each 
kind of oil sands product obtained pursuant to a Project and 
delivered at a royalty calculation point for the product during 
a Period, the percentage that the third party disposition 
quantity of the Project for the Period of that kind of product 
is of the production quantity of the Project for the Period of 
that kind of product;
	(h)	"third party disposition quantity", for a month or Period, 
means the quantity of each kind of oil sands product obtained 
pursuant to a Project and delivered at a royalty calculation 
point for the product that is disposed of in third party 
dispositions during the month or Period, respectively, 
whether the quantity disposed of was so obtained and 
delivered during that month or a preceding month, or during 
that Period or a preceding Period, respectively;
	(i) 	"Third Party Disposition Threshold" means,
	(i)	in relation to a month, the percentage prescribed under 
section 8(d) as the Third Party Disposition Threshold 
for the month, and
	(ii)	in relation to a Period, the simple average of the Third 
Party Disposition Thresholds so prescribed under 
section 8(d) for the months of the Period.
(2)  If the TPD percentage for a month for a kind of oil sands product 
obtained pursuant to a Project and delivered at a royalty calculation 
point for the product during the month is greater than or equal to the 
Third Party Disposition Threshold for the month, the unit price 
applicable to the production quantity of the Project for the month of 
that kind of oil sands product is the price calculated in accordance with 
the following formula:
Unit price = TC - HC
	TD
where
	TC	is the total consideration, calculated in accordance with the 
Minister's directions, received or receivable by the seller 
under all third party dispositions of the third party disposition 
quantity of the Project for the month of that kind of oil sands 
product;
	HC	is the handling charges in relation to that third party 
disposition quantity;
	TD	is that third party disposition quantity.
(3)  If the TPD percentage for a Period for a kind of oil sands product 
obtained pursuant to a Project and delivered at a royalty calculation 
point for the product during the Period is greater than or equal to the 
Third Party Disposition Threshold for the Period, the unit price 
applicable to the production quantity of the Project for the Period of 
that kind of oil sands product is the price calculated in accordance with 
the formula set out in subsection (2) except that, for the purposes of 
this section,
	(a)	"TC" is the total consideration, calculated in accordance with 
the Minister's directions, received or receivable by the seller 
under all third party dispositions of the third party disposition 
quantity of the Project for the Period of that kind of oil sands 
product,
	(b)	"HC" is the handling charges in relation to the third party 
disposition quantity referred to in clause (a), and
	(c)	"TD" is the third party disposition quantity referred to in 
clause (a). 
(4)  If the TPD percentage for a month for a kind of oil sands product 
obtained pursuant to a Project and delivered at a royalty calculation 
point for the product during the month is less than the Third Party 
Disposition Threshold for the month, the unit price applicable to the 
production quantity of the Project for the month of that kind of oil 
sands product is the price calculated in accordance with the following 
formula:
Unit price = (TC - HC) + [(NQ x P) + CD] 
 	          PQ 
where  
	TC	is the total consideration, calculated in accordance with the 
Minister's directions, received or receivable by the seller 
under all third party dispositions of the third party disposition 
quantity of the Project for the month of that kind of oil sands 
product;
	HC	is the handling charges in relation to that third party 
disposition quantity;
	NQ	is the NQ of the Project for the month for that kind of oil 
sands product;
	P  	is the price determined for the month pursuant to subsection 
(6) for that kind of oil sands product obtained pursuant to the 
Project;
	CD	is the cost of diluent contained in the volume of blended 
bitumen determined for the month under subclause (i) of the 
definition of "NQ", if the kind of oil sands product is blended 
bitumen described in subsection (6)(a)(i), or zero in the case 
of any other kind of oil sands product;
	PQ 	is the production quantity of the Project for the month of that 
kind of oil sands product.
(5)  If the TPD percentage for a Period for a kind of oil sands product 
obtained pursuant to a Project and delivered at a royalty calculation 
point for the product during the Period is less than the Third Party 
Disposition Threshold for the Period, the unit price applicable to the 
production quantity of the Project for the Period of that kind of oil 
sands product is the price calculated in accordance with the formula set 
out in subsection (4) except that, for the purposes of this section,
	(a)	"TC" is the total consideration, calculated in accordance with 
the Minister's directions, received or receivable by the seller 
under all third party dispositions of the third party disposition 
quantity of the Project for the Period of that kind of oil sands 
product,
	(b)	"HC" is the handling charges in relation to that third party 
disposition quantity,
	(c)	"NQ" is the NQ of the Project for the Period for that kind of 
oil sands product,
	(d)	"P" is the price determined for the Period pursuant to 
subsection (7) for that kind of oil sands product obtained 
pursuant to the Project,
	(e)	"CD" is the cost of diluent contained in the volume of 
blended bitumen determined for the Period under subclause 
(i) of the definition of "NQ", if the kind of oil sands product 
is blended bitumen described in subsection (6)(a)(i), or zero 
in the case of any other kind of oil sands product, and
	(f)	"PQ" is the production quantity of the Project for the Period 
of that kind of oil sands product.
(6)  The price for a month in relation to a kind of oil sands product 
obtained pursuant to a Project and referred to as "P" in subsection (4) 
is
	(a)	if the oil sands product is 
	(i)	cleaned crude bitumen described in section 1(2)(a) 
where the cleaned crude bitumen is of a density equal to 
or greater than the BVM Dilbit density for the month 
determined under section 3(4) of the Bitumen Valuation 
Methodology (Ministerial) Regulation, or
	(ii)	cleaned crude bitumen described in section 1(2)(b) or 
(c) of a density that is equal to or greater than the BVM 
Dilbit density for the month determined under section 
3(4) of the Bitumen Valuation Methodology 
(Ministerial) Regulation, 
		the Hardisty Bitumen Price determined pursuant to the 
Bitumen Valuation Methodology (Ministerial) Regulation for 
the Project for the month minus the transportation allowance 
specified in subsection (8) for the Project for the month for 
that kind of oil sands product, or
	(b)	the price determined by the Minister as the fair market value 
of the oil sands product, in the case of any other oil sands 
product.
(7)  The price for a Period in relation to a kind of oil sands product 
obtained pursuant to a Project and referred to as "P" in subsection (5) 
is the average of the prices determined under subsection (6) for the 
Project for the months of the Period for that kind of oil sands product, 
weighted according to the respective volumes for those months of that 
kind of oil sands product obtained pursuant to the Project that comprise 
NQ for those months.
(8)  The transportation allowance for a Project 
	(a)	for a month for a kind of oil sands product obtained pursuant 
to the Project is
	(i)	the transportation allowance, if any, prescribed for the 
Project for the month for that kind of oil sands product 
pursuant to section 8(e), or
	(ii)	the transportation allowance determined for the Project 
for the month for that kind of oil sands product pursuant 
to the Bitumen Valuation Methodology (Ministerial) 
Regulation, if a transportation allowance is not 
prescribed for the Project for the month for that kind of 
oil sands product pursuant to section 8(e), and
	(b)	for a Period for a kind of oil sands product obtained pursuant 
to the Project is the average of the transportation allowances 
for the Project for the months of the Period for that kind of 
oil sands product, weighted according to the respective 
quantities of the oil sands product referred to in subsection 
(6)(a), as the case may be, comprising "NQ" referred to in 
the formula in subsection (4) for those months.
(9)  Despite subsections (2) to (8), if the kind of oil sands product 
obtained pursuant to a Project and delivered at a royalty calculation 
point for the product during a month or Period is crude bitumen that is 
not cleaned crude bitumen (in this subsection called "raw crude 
bitumen"), the unit price applicable in respect of that month or Period, 
respectively, to the raw crude bitumen is the price calculated in 
accordance with the formula in subsection (2), except that
	(a)	the fair market value of the cleaned crude bitumen that is or 
could be obtained from the raw crude bitumen shall be used 
as TC,
	(b)	the aggregate of
	(i)	the charges of the kind described in the definition of 
"handling charges" in subsection (1) that the Minister is 
of the opinion would have been incurred to transport the 
raw crude bitumen from the royalty calculation point to 
the place at which it is or could be processed to produce 
cleaned crude bitumen, and 
	(ii)	the charges that the Minister is of the opinion would 
have been incurred to process the raw crude bitumen to 
produce cleaned crude bitumen
		shall be used as HC, and
	(c)	the quantity of that kind of oil sands product so obtained and 
delivered during the month or Period, respectively, shall be 
used as TD.
(10)  A unit price may be determined under this section as a positive 
amount, zero or a negative amount.
Royalty compensation 
33(1)  When the title to the Crown's royalty share of an oil sands 
product delivered in a month of a pre-payout Period at the royalty 
calculation point for the product is transferred pursuant to section 
31(1), the operator of the Project pursuant to which the oil sands 
product is obtained shall, not later than the last day of the following 
month, pay to the Crown, in respect of that royalty share, the royalty 
compensation calculated under subsection (3).
(2)  Subject to subsections (4) to (14), when the Crown's royalty share 
of an oil sands product delivered in a post-payout Period at the royalty 
calculation point for the product is transferred pursuant to section 
31(1), the operator of the Project pursuant to which the oil sands 
product is obtained shall, not later than the last day of the 4th month 
following the Period, pay to the Crown, in respect of that royalty share, 
the royalty compensation calculated under subsection (3).
(3)  For the purposes of subsections (1) and (2), the royalty 
compensation for the Crown's royalty share of an oil sands product 
obtained by a Project and delivered at a royalty calculation point for 
the product in a month or Period, as the case may be, shall, subject to 
subsections (4) and (5), respectively, be calculated as follows:
	(a)	in the case of cleaned crude bitumen contained in blended 
bitumen, 
	(i)	the quantity of the blended bitumen that contains the 
Crown's royalty share of the cleaned crude bitumen so 
obtained and delivered shall be multiplied by the greater 
of zero and the unit price for the month or Period, as the 
case may be, applicable to the blended bitumen, and
	(ii)	the lesser of the cost of diluent included in that quantity 
of blended bitumen and the amount determined under 
subclause (i) shall be deducted from the amount 
determined under subclause (i);
	(b)	in the case of any other oil sands product, the quantity of the 
Crown's royalty share of the oil sands product so obtained 
and delivered shall be multiplied by the greater of zero and 
the unit price for the month or Period, as the case may be, 
applicable to the product.
(4)  The aggregate of the royalty compensation payable under 
subsection (1) in respect of a Project for a month shall be reduced to an 
amount not less than zero by subtracting the IETP costs established 
and allocated to the Project during the month.
(5)  The aggregate of the royalty compensation payable under 
subsection (2) in respect of a Project for a Period shall be reduced to an 
amount not less than zero by subtracting the IETP costs established 
and allocated to the Project during the months of the Period.
(6)  The operator of a Project shall pay to the Crown in respect of each 
month of a post-payout Period, as an instalment with respect to the 
aggregate of the royalty compensation required to be paid by the 
operator under subsection (2) for the Period as reduced under 
subsection (5), the amount calculated by subtracting from the greater 
of the percentage for the month, described in subsection (8)(a), of the 
gross revenue of the Project for the month and the preceding months of 
the Period ending with the month and the amount calculated in respect 
of the Project for the month in accordance with subsection (7),
	(a)	the aggregate of the amounts paid by the operator under this 
subsection in respect of the preceding months of the Period 
and not repaid under subsection (11), and
	(b)	if the amount remaining after subtracting the aggregate 
amount referred to in clause (a) is greater than zero, the IETP 
costs established and allocated to the Project during the 
month to the extent those costs do not exceed the amount 
remaining.
(7)  The amount referred to in subsection (6) to be calculated in 
accordance with this subsection for the Project for a month of a 
post-payout Period shall be calculated in accordance with the 
following formula:
P = (ER x ENR) x GR
                    EGR
where
	P	is the amount referred to in subsection (6) to be calculated in 
accordance with this subsection in respect of the month;
	ER	is the percentage for the month, described in subsection 
(8)(b);
	ENR	is the amount estimated by the Minister under section 38(7) 
for the month as the net revenue of the Project for the Period 
or, if the Minister has not for that month estimated the net 
revenue of the Project for the Period, the operator's estimate 
of that amount contained in the report furnished under 
section 38(1) by the operator for that month;
	EGR	is the amount estimated by the Minister under section 38(7) 
for the month as the gross revenue of the Project for the 
Period or, if the Minister has not estimated for that month the 
gross revenue of the Project for the Period, the operator's 
estimate of that amount contained in the report furnished 
under section 38(1) by the operator for that month;
	GR	is the aggregate of the gross revenue of the Project for the 
month and for the preceding months of the Period.
(8)  The percentage 
	(a)	for the month for the purposes of subsection (6) is the 
estimated annual RG% prescribed for the month under section 
8(c), and
	(b)	for the month for the purposes of ER in subsection (7) is the 
estimated annual RN% prescribed for the month under section 
8(b).
(9)  An amount required to be paid by the operator of a Project to the 
Crown under subsection (6) in respect of a month of a Period shall be 
paid by the last day of the following month.
(10)  If the amount required to be paid by the operator under 
subsection (6) in respect of a month of a Period is a negative amount, 
the amount shall, subject to subsection (11), be deducted by the 
operator from the amounts required to be paid by the operator under 
subsection (6) in respect of the next ensuing month or months of the 
Period until the amount is fully deducted.
(11)  If the amount required to be deducted under subsection (10) is, in 
the Minister's opinion, likely to exceed the amounts payable by the 
operator under subsection (6) in the remaining months of the Period, 
the amount shall be paid by the Minister to the operator by the last day 
of the month following the month in which the report is provided 
under section 38(1) that first identifies the amount. 
(12)  If the aggregate of the royalty compensation payable to the 
Crown under subsection (2) in respect of the royalty share for a Period 
as indicated in a report furnished under section 39(1) exceeds the 
royalty compensation paid to the Crown under subsection (6) that has 
not been repaid under subsection (11) in respect of the months of the 
Period, the operator shall pay the excess amount to the Crown by the 
last day of the 4th month following the end of the Period.
(13)  If the aggregate of the royalty compensation payable to the 
Crown under subsection (2) in respect of the royalty share for a Period 
as indicated in a report furnished under section 39(1) is less than the 
royalty compensation paid to the Crown under subsection (6) that has 
not been repaid under subsection (11) in respect of the months of the 
Period, the Minister must pay the deficiency to the operator by the last 
day of the 4th month following the end of the Period.
(14)  A reference in this section to "the last day of the month" means, 
in respect of the month of March, the last day of March on which the 
offices of the Department are open.
Previously paid royalty
34   Any royalty compensation in respect of oil sands and oil sands 
products recovered from the development area of a Project on or after 
January 1, 2009 paid to the Crown, other than pursuant to section 33, 
for each month during the period, if any, commencing with the later of 
the effective date of the Project or January 1, 2009 and ending with the 
last day of the month in which the Project is approved under section 
11, shall for the purposes of this Regulation be considered
	(a)	an amount paid in respect of that month pursuant to section 
33(1), if the month is part of a pre-payout Period, or
	(b)	an amount paid in respect of that month pursuant to section 
33(6), if the month is part of a post-payout Period.
Part 5 
Administration and Enforcement 
Definition
35   In this Part, "reporting entity" means a non-Project well event, 
non-Project mining operation or Project.
Division 1 
Reporting
Operator changes
36(1)  When a person is replaced as the operator of a reporting entity, 
the person shall furnish a report to the Minister by the end of the 
month in which the change is made, notifying the Minister of the 
change. 
(2)  Only one person may be the operator of a reporting entity at any 
time.
Operator's forecast
37(1)  The operator of a Project shall, unless the Minister otherwise 
directs in a particular case, furnish to the Minister by January 15, 2009 
and by December 15 of each calendar year a report that contains the 
operator's forecast of the information regarding the Project called for 
by the form of the report and relating to
	(a)	the Periods that occur during the calendar year and that may 
occur during the following 9 calendar years, and
	(b)	when the Project payout date of the Project is expected to 
occur.
(2)  The Minister shall not, in making a direction under subsection (1), 
reduce the period of 9 calendar years to less than 4 calendar years.
(3)  A report required to be furnished under subsection (1) may call for 
the furnishing of actual information, estimated or forecasted 
information or any combination of actual and estimated or forecasted 
information.
Monthly report
38(1)  Unless the Minister otherwise directs in a particular case, 
	(a)	the operator of a Project shall furnish a report to the Minister 
for each month of a Period, and
	(b)	the operator of any other reporting entity shall furnish a 
report to the Minister for each month.
(2)  A report under subsection (1) must be furnished by the last day of 
the month following the month for which the report is required.
(3)  Despite subsection (2), a report required to be furnished under 
subsection (1)(a) must, if the report is in respect of a month that 
precedes the month during which the Project is first approved under 
section 11, be furnished by the last day of the month following the 
month during which the Project is so approved.
(4)  A report required to be furnished under subsection (1) may call for 
the furnishing of actual information, estimated or forecasted 
information or any combination of actual and estimated or forecasted 
information.
(5)  A report under subsection (1) in respect of a Project must be 
accompanied by a statement indicating approval of the report by the 
chief financial officer of the operator or by another senior officer of the 
operator approved in advance by the Minister.
(6)  Subject to section 44, an officer who in good faith approves a 
report furnished under this section is not liable to the Crown in any 
civil proceeding arising from the approval of the report.
(7)  If a report furnished under subsection (1) in respect of a Project 
contains an estimate of any amount for a period of time and the 
Minister is not satisfied with the accuracy of the estimate, the Minister 
may substitute the Minister's estimate of the amount for the period and 
any other period.
(8)  If the Minister substitutes an estimated amount pursuant to 
subsection (7), the Minister shall notify the operator of the Project of 
the substitution, the Minister's estimate of the amount and the period 
for which the Minister's estimate applies.
(9)  The Minister may from time to time amend or replace a notice 
given under subsection (8) by giving a further notice to the operator.
Annual report
39(1)  The operator of a Project shall, unless the Minister otherwise 
directs in a particular case, furnish to the Minister within 3 months 
after the end of each Period, a report in respect of the Period. 
(2)  A report under subsection (1)
	(a)	must be signed by the operator of the Project or by the 
operator's representative, and
	(b)	unless the Minister otherwise directs, must, if the aggregate 
quantity of crude bitumen and cleaned crude bitumen 
recovered or obtained pursuant to the Project and delivered at 
a royalty calculation point during the Period, whether as part 
of blended bitumen or otherwise, is greater than the product 
of the number of days in the Period and 1590 cubic metres 
per day, be accompanied by
	(i)	an opinion by the auditors retained by the operator, and
	(ii)	an opinion by the auditors retained by each lessee of the 
Project to report to the shareholders of the lessee,
as to whether the operator, in the case of the opinion referred to in 
subclause (i), and the lessee, in the case of the opinion referred to in 
subclause (ii), have complied with the requirements of this Regulation.
(3)  A report under subsection (1) must be accompanied by a statement 
indicating approval of the report by the chief financial officer of the 
operator or by another senior officer of the operator approved in 
advance by the Minister. 
(4)  Subject to section 44, an officer who in good faith approves a 
report furnished under subsection (1) is not liable to the Crown in any 
civil proceeding arising from the approval of the report.
Ad hoc reports
40(1)  If the Minister is of the opinion 
	(a)	that a person is in possession of information that may be 
relevant in calculating, determining, specifying, prescribing 
or verifying any amount, factor or other component for the 
purposes of this Regulation, or a regulation made by the 
Minister and referred to in this Regulation, that is used in the 
calculation of royalty or royalty compensation in relation to a 
reporting entity, and
	(b)	that the information cannot be gathered at all, or adequately, 
in reports otherwise required to be furnished under this 
Regulation, 
the Minister may, by written notice given to the person, require the 
person to furnish one or more reports to the Minister respecting the 
information.
(2)  A notice given under subsection (1) must specify the frequency 
with which reports called for by the notice are to be furnished and 
deadlines for the submission of the reports.
(3)  A person given a notice under subsection (1) shall furnish the 
Minister with the reports called for by the notice with the frequency 
and by the deadlines specified in the notice, and in accordance with the 
requirements of section 5.
(4)  If a notice given under subsection (1) does not specify a time after 
which reports called for by the notice are no longer required to be 
furnished to the Minister, the person given the notice may cease to 
furnish the reports 24 months after the date of the notice unless
	(a)	the Minister gives the person another notice under subsection 
(1) requiring the person to continue furnishing the reports, or
	(b)	the Minister gives the person notice that the person may 
sooner cease to furnish the reports called for by the notice 
given under subsection (1).
(5)  The Minister may from time to time amend or replace a notice 
given under subsection (1) by giving a further notice to the person 
provided with the notice given under subsection (1).
Reporting changes
41(1)  An operator or other person who has furnished a report under 
this Part shall, when the operator or other person learns of a material 
change or error in, or a material omission from, the information 
contained in the report, furnish to the Minister a replacement report 
containing the updated, corrected or missing information.
(2)  An operator or other person who has furnished a report under this 
Part shall, on receipt of a notice from the Minister to do so, furnish the 
Minister with a replacement report 
	(a)	for the report furnished under this Part, and 
	(b)	in which any deficiency in the report referred to in clause (a) 
and identified by the Minister in the notice is rectified.
(3)  When the operator of a Project is required to furnish the Minister 
with a replacement report for a report furnished under section 39 or 
this section for a pre-payout Period, the operator shall also furnish a 
replacement report for each report furnished under section 38 for a 
month of the Period where the change, error, omission or deficiency 
required to be addressed in the replacement report for the Period 
relates in whole or in part to the month.
(4)  A replacement report required to be furnished pursuant to this 
section shall be furnished to the Minister by the last day of the month 
following the month in which 
	(a)	the operator or other person who furnished the report 
required to be replaced learns of the material change, error or 
omission in the information contained in that report, or
	(b)	the Minister issues the notice pursuant to subsection (2) 
calling for the furnishing of the replacement report.
Records 
42(1)  The lessees and operator of a reporting entity, and any person 
furnishing a report under section 40, shall keep and maintain, and 
cause those persons affiliated with them to keep and maintain, records 
satisfactory to the Minister relating to the reporting entity or to oil 
sands or oil sands products recovered or obtained pursuant to, by or 
from the reporting entity, or used, or that would be required, to prepare 
any application, report, statement, opinion or other document permitted 
or required to be submitted or furnished under this Regulation.
(2)  The Minister may make available any record, return or other 
information obtained under the Act or a regulation made under the Act, 
or under an agreement, to the Board for the purposes of obtaining 
information from the Board that the Minister is of the opinion is 
necessary for the purposes of administering this Regulation, the Prior 
Regulation, the Oil Sands Allowed Costs (Ministerial) Regulation or 
the Bitumen Valuation Methodology (Ministerial) Regulation.
Division 2 
Compliance
Provisional royalty compensation
43(1)  In this section, "provisional royalty compensation" means 
royalty compensation calculated in accordance with subsection (2).
(2)  Despite the provisions of Parts 3 and 4, but subject to the other 
subsections of this section, in any case where information respecting 
the total consideration received or receivable
	(a)	by the seller under third party dispositions, as defined in 
section 32, during a period of time in relation to any oil sands 
product obtained pursuant to a Project, or
	(b)	by the lessee in dispositions of any oil sands product 
recovered from a non-Project well event during a period of 
time
is not provided to, or cannot be verified by audit or examination of 
records by, the Minister, royalty and royalty compensation payable in 
relation to the oil sands product shall, for that period of time, be 
calculated by the Minister in accordance with Parts 3 and 4 but using 
the highest unit price or highest unit value, respectively, for that kind 
of oil sands product achieved in respect of all Projects or all 
non-Project well events, respectively, during that period of time.
(3)  If provisional royalty compensation calculated in relation to an oil 
sands product obtained pursuant to a Project or from a non-Project well 
event for any period of time exceeds the royalty compensation paid in 
relation to that oil sands product for that period, the operator of the 
Project or of the well containing the non-Project well event shall pay 
the excess amount to the Minister by the end of the month following 
the month in which the Minister issues an invoice to the operator for 
the amount.
(4)  Where provisional royalty compensation has been paid in respect 
of an oil sands product and the operator concerned provides the 
Minister with the information described in subsection (2) and access to 
records that in the Minister's opinion are sufficient to verify the 
information, the Minister shall recalculate the royalty compensation in 
respect of the oil sands product without reference to subsection (2) and 
any difference shall be 
	(a)	paid by the operator to the Minister, or 
	(b)	refunded to the operator by the Minister, 
as the case may be, by the end of the month following the month in 
which the operator is notified by the Minister of the results of the 
recalculation.
(5)  Despite section 45, the Crown is not liable for interest on any 
amounts of provisional royalty compensation that are reduced pursuant 
to subsection (4), but will refund any interest received by it under 
section 45(1)(a) in respect of those amounts to the extent those 
amounts are so reduced.
Penalties 
44(1)  If a person is required to furnish to the Minister any report, 
statement or auditor's opinion required to be furnished pursuant to this 
Part, other than a report referred to in section 40, and fails to do so by 
the respective dates required by this Regulation, the Minister may 
impose on the person a penalty of $5000 for each month or part of a 
month during which the failure continues.
(2)  Despite subsection (1), a penalty shall not be imposed in respect of 
a month or part of a month for a failure to furnish
	(a)	a statement described in section 38(5) or 39(3) if a penalty is 
imposed in respect of that month or part of a month for a 
failure to furnish the report under section 38(1) or 39(1), 
respectively, or the replacement report under section 41, that 
was to be accompanied by the statement, or
	(b)	an auditor's opinion described in section 39(2)(b) if a penalty 
is imposed in respect of that month or part of a month for a 
failure to furnish the report under section 39(1) or the 
replacement report under section 41 that was to be 
accompanied by the opinion.
(3)  If a person is required to furnish the Minister with a report under 
section 40 and fails to do so by the deadline specified in the notice 
given by the Minister calling for the report to be furnished, the 
Minister may by notice impose on the person a penalty of not more 
than $5000 for each day during which the failure continues.
(4)  The Minister may waive a penalty imposed under subsection (1) or 
(3) on being satisfied that the failure to furnish the report, statement or 
opinion by the deadline was due to circumstances beyond the control 
of the person required to furnish it.
(5)  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 to the Crown in respect of a 
period of time on oil sands or oil sands products recovered or obtained 
by a reporting entity is greater than the aggregate royalty compensation 
paid to the Crown in respect of the oil sands or oil sands products, the 
Minister may give a notice to the operator of the reporting entity 
describing the deficiency and what, in the Minister's opinion, was the 
cause giving rise to the deficiency.
(6)  If the Minister gives a notice under subsection (5) to an operator in 
respect of a period of time, and
	(a)	has previously given another notice to the operator under 
subsection (5) in respect of a deficiency for not more than 
one earlier separate period of the same duration where the 
cause giving rise to the whole or a part of the deficiency for 
the earlier period is, in the Minister's opinion, the same as or 
similar to the cause giving rise to the whole or a part of the 
deficiency for the period of time first referred to in this 
subsection, or
	(b)	has previously given notices to the operator under subsection 
(5) for more than one earlier separate period of the same 
duration in respect of the deficiencies for those earlier 
periods where the cause giving rise to the whole or a part of 
the deficiencies for those earlier periods is, in the Minister's 
opinion, the same as or similar to the cause giving rise to the 
whole or a part of the deficiency for the period of time first 
referred to in this subsection,
the Minister may impose on the operator a penalty in an amount not 
exceeding
	(c)		10%, in a case where clause (a) applies, or
	(d)	50%, in a case where clause (b) applies,
of the whole or that part, as the case may be, of the deficiency for the 
period of time first referred to in this subsection that the Minister 
considers attributable to that cause.
(7)  No penalty may be imposed under subsection (6) if the amount of 
the penalty is less than $1000.
(8)  If a person fails to undertake a measurement or calculation in 
accordance with section 6, the Minister may by notice impose on the 
person a penalty of not more than $5000 for each day during which the 
failure continues.
(9)  The Minister may waive the whole or a part of a penalty imposed 
under subsection (6) or (8) if the Minister is of the opinion that the 
circumstances warrant such a waiver.
(10)  A penalty imposed by the Minister under this section must be 
paid within 30 days after the Minister
	(a)	informs the person on whom the penalty is imposed of the 
imposition of the penalty, in the case of a penalty imposed 
under subsection (1), or
	(b)	gives notice of imposition of the penalty to the person on 
whom the penalty is imposed, in the case of any other 
penalty.
Interest
45(1)  If any of the following amounts are not paid by the date 
required by this Regulation, interest is payable to the Crown in 
accordance with this section on the amount by the person required to 
pay the amount, computed from the day following the date payment of 
the amount is required by this Regulation until the day the amount is 
paid to the Crown:
	(a)	an amount required to be paid under section 26(4), 27(4), 
28(5), 33(1) or (6) or 43(3) or (4)(a);
	(b)	a penalty required to be paid under section 44;
	(c)	any interest required to be paid under this section;
	(d)	the portion of an amount referred to in subsection (2) that 
does not arise as a result of a calculation or estimate made by 
the Minister under section 6(3) or 38(7), unless interest is 
payable on that portion under subsection (2).
(2)  Subject to subsections (3) and (4), interest is payable by the 
operator of a Project to the Crown in accordance with this section on 
any of the following amounts required to be paid in respect of the 
Project, computed from the first day of the 7th month of the Period in 
respect of which the amount is required to be paid until the amount is 
paid to the Crown:
	(a)	an excess amount required to be paid by the operator under 
section 33(12) in respect of the Project;
	(b)	the amount of any underpayment of royalty compensation 
payable in respect of a post-payout Period to the Crown in 
respect of oil sands products recovered from the development 
area of the Project, other than an amount described in clause 
(a), where the underpayment is identified in a recalculation 
by the Minister under the Act. 
(3)  Interest is not payable under subsection (2) 
	(a)	on any portion of an amount referred to in clause (a) or (b) of 
that subsection that arises as a result of a calculation or 
estimate made by the Minister under section 6(3) or 38(7), 
and 
	(b)	if the amount referred to in clause (a) or (b) of that 
subsection, excluding any portion of that amount that arises 
as a result of an estimate made by the Minister under section 
6(3) or 38(7), is not more than 10% of the aggregate of the 
royalty compensation payable to the Crown under section 
33(2) for the Period in relation to which the amount arises. 
(4)  If the Period referred to in subsection (2) or (6)(b)(ii) includes the 
effective date of the Project, interest under that subsection shall be 
computed from the day that follows the effective date by half of the 
number of days between the effective date and the last day of the 
Period.
(5)  Interest payable under this section by a person in relation to any 
amount shall be paid by the last day of the month following the month 
in which the due date specified in this Regulation for payment of the 
amount occurs.
(6)  Subject to subsection (4), interest is payable by the Crown to the 
operator of a reporting entity in accordance with this section on
	(a) 	an amount required to be paid by the Crown to the operator 
under section 33(11) in respect of a Project, computed from 
the day following the last day of the Period in respect of 
which the amount is required to be paid, 
	(b)	the amount of
	(i)	any deficiency payable under section 33(13), or
	(ii)	any overpayment of royalty compensation
	(A)	payable in respect of a post-payout Period of a 
Project by the operator of the Project to the Crown 
in respect of oil sands products recovered from the 
development area of the Project, other than an 
amount described in subclause (i) or clause (a), 
and
	(B)	identified in a recalculation by the Minister under 
the Act,
		computed from the first day of the 7th month of the 
Period in respect of which the deficiency is payable or 
the overpayment has been paid, respectively, if the 
deficiency or overpayment is more than 10% of the 
aggregate of the royalty compensation payable under 
section 33(2) for the Period,
	(c)	an amount required to be refunded by the Crown to the 
operator under section 43(4)(b), computed from the first day 
of the 2nd month following the month in which the operator 
is notified by the Minister of the results of the recalculation 
pursuant to which the refund was determined,
	(d)	an overpayment of royalty compensation payable in respect 
of a month by the lessee of a non-Project mining operation or 
non-Project well event, computed from the first day of the 
month following the month in which the overpayment arose, 
and
	(e)	an amount referred to in clause (b) computed from the due 
date for payment of the amount, unless interest is payable on 
that amount under clause (b),
until the date the Minister requisitions a cheque for the amount or 
notifies the operator to deduct the amount from an amount required to 
be paid by the operator under this Regulation.
(7)  For the purposes of this section,
	(a)	interest payable to or by the Crown on any amount is 
payable, subject to subsection (1)(c), on a simple interest 
basis on the balance of that amount remaining unpaid from 
time to time until the date on which the entire balance of the 
unpaid amount is received by the Minister or dealt with by 
the Minister in accordance with subsection (6), respectively, 
and
	(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 the Province of 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.
Application of payments
46   Unless the Minister otherwise directs, if money is paid to the 
Crown by the operator of a reporting entity, the money shall be applied 
in the following order:
	(a)	first, on penalties owing under this Regulation or the Prior 
Regulation;
	(b)	2nd, on interest owing under this Regulation or the Prior 
Regulation;
	(c)	3rd, on royalty compensation or proceeds of royalty owing 
under this Regulation or the Prior Regulation, respectively.
Objections
47   The operator of a reporting entity is authorized to make a request 
referred to in section 38(3)(b) of the Act, and an objection under 
section 39(1) of the Act, with respect to the reporting entity. 
Referral of disputes
48(1)  If
	(a)	the Minister specifies terms and conditions under which the 
Minister will, pursuant to section 7 of the Government 
Organization Act, establish a committee or board to hear a 
dispute between the Minister and the lessees or operator of a 
Project with respect to a matter under this Regulation, the Oil 
Sands Allowed Costs (Ministerial) Regulation or the Bitumen 
Valuation Methodology (Ministerial) Regulation, and 
	(b)	the operator of a Project makes a written request, in 
accordance with those terms and conditions, to refer a dispute 
to such a committee or board that is of a kind permitted by 
the terms and conditions to be so referred,
the Minister shall not make a decision with respect to the matter in 
dispute until the Minister has established the committee or board, the 
matter has been referred to the committee or board and its 
recommendations have been received and considered by the Minister.
(2)  A dispute referred to in subsection (1) does not include a dispute 
with respect to any decision made by the Minister within the Minister's 
discretion under this Regulation, the Oil Sands Allowed Costs 
(Ministerial) Regulation or the Bitumen Valuation Methodology 
(Ministerial) Regulation.
Minister's decision final
49   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.
Part 6 
Consequential Amendments, 
Expiry and Coming into Force
Crown Agreements
50(1)  This Regulation, the Oil Sands Allowed Costs (Ministerial) 
Regulation, the Bitumen Valuation Methodology (Ministerial) 
Regulation and the Prior Regulation are the regulations referred to in 
the definitions of "Generic Royalty Regulation" contained in
	(a)	the Alberta Crown Agreement, as amended from time to 
time, referred to in Order in Council numbered O.C. 469/76, 
and
	(b)	the "Alberta Suncor (O.S.G.) Crown Agreement: Second 
Amendment and Transition Agreement", referred to in Order 
in Council numbered O.C. 245/96.
(2)  The oil sands projects deemed by the Agreements referred to in 
subsection (1) to have been approved by the Minister for the purposes 
of the Regulations referred to in that subsection are Prior Projects for 
the purposes of this Regulation.
Amend AR 250/2004
51   The Innovative Energy Technologies Regulation 
(AR 250/2004) is amended in section 1(1)(c) and (i) by 
striking out "Oil Sands Royalty Regulation, 1997 (AR 185/97)" and 
substituting "Oil Sands Royalty Regulation, 2009.
Amends AR 166/84
52   The Oil Sands Royalty Regulation, 1984 (AR 166/84) is 
amended in section 5 by adding "ending with December, 2008" 
after "and subsequent months".
Amends AR 185/97
53(1)  The Oil Sands Royalty Regulation, 1997 (AR 185/97) is 
amended by this section.
(2)  Section 1(ee) is amended by adding "on or before 
December 31, 2008" after "consumed or used".
(3)  Section 3 is amended by adding ", except that the month of 
December of 2008 shall be construed as ending at midnight on 
December 31, 2008" after "next month".
(4)  Section 7(2) is amended by adding "that becomes payable 
on or before December 31, 2008" after "subsection (1)".
(5)  The following is added after section 12:
Application of this Regulation
12.1   Unless otherwise provided in this Regulation, this Regulation 
applies to 
	(a)	each Period of a Project that ends on or before December 31, 
2008, 
	(b)	each oil sands product obtained pursuant to a Project and 
delivered at a royalty calculation point for the product and 
disposed of, consumed or used on or before December 31, 
2008, and
	(c) 	the determination of the Crown's royalty share, and of the 
proceeds payable in relation to the Crown's royalty share, of 
the oil sands products referred to in clause (b).
(6)  Section 15 is amended 
	(a)	in subsection (1) by adding ", on or before December 
31, 2008," after "Project may";
	(b)	in subsection (3) by adding ", on or before December 
31, 2008," after "owners may".
(7)  Section 16 is amended 
	(a)	in subsection (1) by adding ", on or before December 
31, 2008," after "Minister may";
	(b)	by repealing subsection (3)(c) and substituting the 
following:
	(c)	the first day of the month that precedes by 9 months the 
month in which the Project or amendment is approved 
by the Minister.
	(c)	by repealing subsection (4).
(8)  Section 20 is amended by adding ", on or before December 
31, 2008," after "Minister may".
(9)  Section 27 is amended by adding "prior to 2008" after  
"each calendar year".
(10)  Section 28(1) is amended by adding "ending on or before 
December 31, 2008," after "month of a Period".
(11)  Section 29(1) is amended by adding "ending on or before 
December 31, 2008" after "each Period".
(12)  Section 31 is amended 
	(a)	in subsection (1)(b) by adding "ending on or before 
December 31, 2008" after "pre-payout Period";
	(b)	in subsections (2)(b) and (4) by adding "ending on or 
before December 31, 2008" after "post-payout Period".
(13)  Section 32(3) is amended by adding "ending on or before 
December 31, 2008" after "of a Period".
(14)  Section 33 is amended
	(a)	in subsection (1)(a) by adding ", 38.1(3) or 38.2(2) or 
(7)" after "or (4)";
	(b)	in subsections (2)(c) and (4)(b)(ii) by adding "ending 
on or before December 31, 2008" after "of a Period".
(15)  Section 34 is amended by adding "on or before December 
31, 2008" after "of a Project".
(16)  Section 36 is amended by repealing subsection (4).
(17)  Section 38 is amended by 
	(a)	renumbering it as section 38(1);
	(b)	in subsection (1) by striking out "Any" and 
substituting "If a Project is approved under section 16, 
any" and by striking out "of a Project" and 
substituting "of the Project";
	(c)	adding the following after subsection (1):
(2)  If a Project, as defined in the Oil Sands Royalty Regulation, 
2009, is approved under section 11(1) of that regulation, any 
proceeds of royalty in respect of oil sands and oil sands products 
recovered from the development area of the Project paid to the 
Crown, other than pursuant to this Regulation, for each month 
during the period, if any, commencing with the effective date of 
the Project and ending on December 31, 2008 shall, for the 
purposes of this Regulation, be considered
	(a)	an amount paid in respect of that month pursuant to 
section 31(1), if the month is part of a pre-payout 
Period, or
	(b)	an amount paid in respect of that month pursuant to 
section 31(4), if the month is part of a post-payout 
Period.
(18)  The following is added after section 38:
Pre-2009 inventory
38.1(1)  For the purposes of this Regulation, an oil sands product, 
	(a)	that is obtained pursuant to a Project and delivered at a 
royalty calculation point for the product before January 
1, 2009, and 
	(b)	that is not disposed of, consumed or used before that 
date,
is, along with the Crown's royalty share of the oil sands product, 
deemed to be disposed of during December of 2008.
(2)  Despite section 21, the unit price applicable to the quantity of an 
oil sands product referred to in subsection (1) is the simple average 
of the unit prices that
	(a)	would be determined under section 32 of the Oil Sands 
Royalty Regulation, 2009 for the months of 2009, and
	(b)	would apply to an oil sands product of that kind 
obtained pursuant to the Project and delivered at a 
royalty calculation point under that Regulation for the 
product during those months,
if those months were part of a pre-payout Period of the Project.
(3)  Despite section 31, the proceeds of disposition of the Crown's 
royalty share of an oil sands product referred to in subsection (1) 
shall be paid to the Crown by April 30, 2010 by the operator of the 
Project pursuant to which the oil sands product is recovered.
Pre-2009 transitional inventory
38.2(1)  In this section, "transitional crude bitumen" means crude 
bitumen that is
	(a)	described in section 1(2)(b) or (c) of the Oil Sands 
Royalty Regulation, 2009,
	(b)	a Project substance, and
	(c)	obtained before January 1, 2009 pursuant to a Project 
referred to in section 36(2)(b) or (c),
in respect of which royalty is not reserved under section 90 of the 
Act, as that section stood on October 1, 2008, on the crude bitumen 
or on oil sands products obtained from the crude bitumen.
(2)  Despite section 31, if on or before December 31, 2008, an oil 
sands product other than transitional crude bitumen is
	(a)	obtained pursuant to a Project referred to in section 
36(2)(b) or (c),
	(b)	delivered at a royalty calculation point for the oil sands 
product, and
	(c)	 is not disposed of, consumed or used on or before that 
date,
the operator of the Project shall pay the Crown the proceeds of the 
Crown's royalty share of the oil sands product by April 30, 2010.
(3)  Subject to subsections (4) and (5), the proceeds of the Crown's 
royalty share of an oil sands product referred to in subsection (2) 
shall, despite section 21 and 31, be calculated by multiplying the 
quantity of the Crown's royalty share by the price calculated in 
accordance with the following formula:
(C - T) รถ Q 
 
where
	C	is the total consideration, calculated in accordance with 
the Minister's directions, received or receivable by the 
seller under all third party dispositions, as defined in 
section 21(1)(b), during 2009, of that kind of oil sands 
product obtained pursuant to the Project;
	T	is all handling charges, export charges, pipeline tariff 
charges and charges of a similar nature that are paid to 
transport the oil sands product disposed of in the 
dispositions referred to in the definition of C from the 
royalty calculation point for the oil sands product to the 
place where those dispositions occur;
	Q	is the total quantity of the oil sands product disposed of 
in the dispositions referred to in the definition of C.
(4)  If the oil sands product referred to in subsection (3) is cleaned 
crude bitumen contained in blended bitumen, the price for the 
purposes of that subsection shall be calculated in accordance with 
the formula set out in that subsection, except that
	(a)	"C" is the total consideration, calculated in accordance 
with the Minister's directions, received or receivable by 
the seller under all third party dispositions, as defined in 
section 21(1)(b), during 2009, of blended bitumen 
containing cleaned crude bitumen obtained pursuant to 
the Project,
	(b)	"T" is all handling charges, export charges, pipeline 
tariff charges and charges of a similar nature that are 
paid to transport the blended bitumen disposed of in the 
dispositions referred to in clause (a) from the royalty 
calculation point for the cleaned crude bitumen 
contained in the blended bitumen to the place where 
those dispositions occur, and includes the cost of diluent 
contained in that blended bitumen, and
	(c)	"Q" is the quantity of cleaned crude bitumen contained 
in the blended bitumen disposed of in the dispositions 
referred to in clause (a). 
(5)  If the Minister is of the opinion that the quantity of an oil sands 
product disposed of in third party dispositions referred to in 
subsection (3) or (4) is insufficient to determine a reasonably 
accurate price for the purposes of subsection (3), the price used for 
the purposes of subsection (3) shall be the price determined by the 
Minister as the fair market value of the product.
(6)  The royalty reserved to the Crown on transitional crude bitumen 
is the same percentage of the quantity of the transitional crude 
bitumen as the percentage of the royalty reserved under section 90(3) 
of the Act, as that section stood on October 1, 2008, on other oil 
sands products obtained pursuant to the Project during the 2008 
Period.
(7)  The proceeds payable to the Crown for the Crown's royalty 
share of transitional crude bitumen is the product of the quantity of 
the Crown's royalty share and the simple average of the unit prices 
that
	(a)	would be determined under section 32 of the Oil Sands 
Royalty Regulation, 2009 for the months of 2009, and
	(b)	would apply to crude bitumen described in section 
1(2)(b) or (c) of the Oil Sands Royalty Regulation, 2009 
obtained pursuant to the Project and delivered at a 
royalty calculation point under that Regulation for the 
product during those months,
if those months were part of a pre-payout Period of the Project.
(8)  The proceeds referred to in subsection (6) shall be paid to the 
Crown by April 30, 2010.
(19)  Section 40 is repealed and the following is substituted:
Expiry
40   This Regulation expires on June 30, 2014.
(19)  Schedule 1 is amended 
	(a)	in section 2(d) by adding "and on or before December 
31, 2008" after "the Project";
	(b)	in section 3(j)(iv) by adding "under this Regulation or in 
the determination of unit price under section 32 of the Oil 
Sands Royalty Regulation, 2009" after "unit price";
	(c)	in section 4 by adding "and section 16 of the Oil Sands 
Allowed Costs (Ministerial) Regulation"  after "subject to 
section 5 of this Schedule".
(20)  Schedule 2 is amended 
	(a)	in section 2(d) by adding "and on or before December 
31, 2008" after "the Project";
	(b)	in section 3(j)(iv) by adding "under this Regulation or in 
the determination of unit price under section 32 of the Oil 
Sands Royalty Regulation, 2009" after "unit price";
	(c)	in section 4 by adding "and section 16 of the Oil Sands 
Allowed Costs (Ministerial) Regulation"  after "subject to 
section 5 of this Schedule".
Amends AR 288/99
54(1)  The Regulations Act Regulation (AR 288/99) is 
amended by this section.
(2)  Section 17(1) is amended by adding the following after 
clause (s):
	(s.1)	all orders of the Minister under section 8 of the Oil Sands 
Royalty Regulation, 2009;
Expiry
55   For the purpose of ensuring that this Regulation is reviewed for 
ongoing relevancy and necessity, with the option that it may be 
repassed in its present or an amended form following a review, this 
Regulation expires on November 30, 2018.
Coming into force
56   This Regulation comes into force on January 1, 2009.



Alberta Regulation 224/2008
Mines and Minerals Act
NATURAL GAS DEEP DRILLING REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 596/2008) 
on December 10, 2008 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
	1	Definitions
	2	Application of regulation
	3	Eligible well
	4	Nature of royalty adjustment
	5	Determinations by Minister 
	6	Transfer of royalty adjustment
	7	Factors affecting adjustment or determination
	8	Reporting circumstances affecting eligibility
	9	Transition wells
	10	Minister's decision final
	11	Expiry


	12	Coming into force 
 
Schedule
Definitions
1(1)  In this Regulation,
	(a)	"abandoned well" means a well classified as an abandoned 
well by the Board;
	(b)	"Act" means the Mines and Minerals Act;
	(c)	"Board" means the Energy Resources Conservation Board or 
the Alberta Energy and Utilities Board;
	(d)		"Crown interest" means the percentage of Crown ownership 
of gas recovered or obtained as determined by the Minister in 
accordance with section 26.1 of the Petroleum and Natural 
Gas Tenure Regulation (AR 263/97);
	(e)	"crude oil" means crude oil as defined in the Natural Gas 
Royalty Regulation, 2009;
	(f)	"deepening" means, in relation to a well, the drilling of the 
well below the true vertical depth referred to in the licence 
for the well, pursuant to an amendment to the licence;
	(g)	"designated pool" means a pool that, as of June 1, 1985, has 
been designated as a pool by the Board pursuant to the Oil 
and Gas Conservation Act;
	(h)	"development well" means a well classified as a development 
well by the Board;
	(i) 	"drilling spacing unit" means a drilling spacing unit as 
defined in the Natural Gas Royalty Regulation, 2009;
	(j)	"eligible well" means an eligible well described in section 3;
	(k)	"eligible well event" means a well event contained in an 
eligible well that has a Crown interest greater than 0%;
	(l)	"exploratory well" means a well classified as an exploratory 
well by the Board;
	(m)	"field condensate" means field condensate as defined in the 
Natural Gas Royalty Regulation, 2009;
	(n)	"finished drilling date" means a finished drilling date for a 
well event according to the records of the Board;
	(o)	"gas" means natural gas, residue gas, gas products and field 
condensate;
	(p)	"gas product" means gas product as defined in the Natural 
Gas Royalty Regulation, 2009;
	(q)	"lengthening" means increasing the measured depth of a well 
referred to in the licence for the well, pursuant to an 
amendment to the licence;
	(r) 	"licence" means a licence for a well issued under the Oil and 
Gas Conservation Act;
	(s)	"licensee", in relation to a well, means the holder of the 
licence in respect of that well under the Oil and Gas 
Conservation Act;
	(t)	"measured depth" means, in relation to a well, the longest 
distance in metres according to the records of the Board, 
measured along the bore of the well from the kelly bushing 
of the well to the base of the deepest natural gas producing 
interval in the well that is producing in paying quantities; 
	(u)	"operator", with reference to a well, means the person who is 
the operator of the well according to the records of the 
Department;  
	(v)	"pool" means a pool as defined in the Oil and Gas 
Conservation Act;
	(w)	"qualifying pool" means a pool, other than a designated pool, 
that, in the opinion of the Minister, is in a producing zone the 
top of which is at a true vertical depth of more than
	(i)	2500 metres, or
	(ii)	a number of metres less than 2500 metres specified by 
the Minister for that zone, if the zone is partly below 
and partly at or above a depth of 2500 metres and the 
Minister considers it appropriate to so specify either 
generally or for the purpose of a specific case;
	(x)	"residue gas" means residue gas as defined in the Natural 
Gas Royalty Regulation, 2009;
	(y)	"shortening" means decreasing the measured depth of a well 
where the base of the deepest natural gas producing interval 
in the well that is producing in paying quantities has a true 
vertical depth greater than 2500 metres but is shallower than 
the most recent measured depth determined previously for 
that well;
	(z)	"true vertical depth" means the vertical distance, in metres, 
measured in a perpendicular line from the kelly bushing of a 
well to the top of the deepest zone that the well is, in the 
opinion of the Minister, producing natural gas in paying 
quantities; 
	(aa)	"twin well", in relation to an eligible well, means a well that 
is
	(i)	spudded on or after October 25, 2007,
	(ii) 	located in the same legal subdivision or drilling spacing 
unit, whichever is of lesser area, as that in which the 
eligible well is located, and
	(iii)	drilled to produce gas that, in the opinion of the 
Minister, is not initially recoverable from the eligible 
well due to inadvertent damage to the well;
	(bb)	"2002 Regulation" means the Natural Gas Royalty 
Regulation, 2002 (AR 220/2002);
	(cc)		"unit area" means a unit area as defined in the Natural Gas 
Royalty Regulation, 2009;
	(dd)	"well event" means a well event as defined in the Natural 
Gas Royalty Regulation, 2009.
(2)  A reference to the true vertical depth or measured depth of a well 
or a part of a well in this Regulation is a reference to the depth of the 
well or part of the well in metres according to the records of the Board.
Application of regulation
2   This Regulation applies to royalty on gas recovered or obtained 
from an eligible well on or after January 1, 2009.
Eligible well
3(1)   Subject to subsection (3), an eligible well is a well that,
	(a)	is an exploratory well or a development well,
	(b)	is spudded, or deepened, on or after October 25, 2007 but 
before January 1, 2014,
	(c)	is drilled, or deepened, in a drilling spacing unit that is not 
wholly or partly within the boundaries of a designated pool,
	(d)	is drilled into a producing zone, the top of which is greater 
than a true vertical depth of 2500 metres, 
	(e)	produces gas from a qualifying pool, and
	(f)	has a Crown interest greater than 0%.
(2)  Additional information must be provided to the Minister by the 
operator or licensee if required to aid in determining that a well meets 
the requirements of subsection (1).
(3)  A well is not an eligible well if,
	(a)	subject to section 9, that well, or any well event in that well, 
has been the subject of a royalty exemption, adjustment or 
reduction under any former regulation,
	(b)	unless otherwise approved by the Board, that well is off 
target within the meaning of the Oil and Gas Conservation 
Regulations (AR 151/71),
	(c)	that well initially produces oil either alone or with gas at a 
gas oil ratio of less than 1800:1, 
	(d)	that well produces oil sands or crude bitumen, other than a 
gas well as defined in the Oil and Gas Conservation 
Regulations (AR 151/71),
	(e)	it is a well whose production of crude oil or crude bitumen is 
exempt from royalty under the Third Tier Exploratory Well 
Royalty Exemption Regulation (AR 16/93) or eligible for a 
royalty adjustment under the Deep Oil Exploratory Well 
Regulation and that exemption or adjustment has not been 
wholly revoked,
	(f)	that well is within the pool boundaries as designated by the 
Board as of June 1, 1985, or
	(g)	that well is a re-entry into an abandoned well.
Nature of royalty adjustment
4(1)  The royalty otherwise payable to the Crown on gas recovered or 
obtained from each eligible well event is adjusted in accordance with 
this section.
(2)  Subject to subsection (3),
	(a)	the royalty rate on natural gas recovered, or on residue gas or 
on gas products obtained from natural gas, from eligible well 
events on or after January 1, 2009, is reduced to 5%, and
	(b)	the royalty rate on field condensate obtained from natural gas 
recovered from eligible well events on or after January 1, 
2009 is reduced to 0%.
(3)  Subsection (2)(a) and (b) do not apply to the last production month 
that a royalty reduction is applicable if there is not enough remaining 
in the total amount of royalty adjustment for the well, as calculated 
under subsection (7), to reduce the royalty rate for each well event in 
that well to 5% or 0%, as the case may be.
(4)  In the case of the deepening of an eligible well, a royalty 
adjustment does not apply if the gas is recovered or obtained from a 
zone that is not below the deepest zone to which the well was 
previously drilled or deepened.
(5)  The total royalty adjustment amount for an eligible well classified 
as a development well is the aggregate amount as determined under the 
Schedule.
(6)  The total royalty adjustment amount for an eligible well classified 
as an exploratory well is the aggregate amount as determined under the 
Schedule.
(7)  When the total royalty adjustment amount is determined for an 
eligible well under subsection (5) or (6), that amount is reduced each 
month by the total difference in the value of the adjusted royalty 
quantity for that well and the total royalty compensation determined as 
a result of the reduced royalty rate under subsection (2)(a) or (b), as 
applicable, for all eligible well events in that well, commencing with 
the first month of production from each eligible well event until
	(a)	the total royalty adjustment amount is reduced to zero, 
	(b)	5 years from the first finished drilling date of the eligible 
well has expired, or
	(c)	December 31, 2018,
whichever occurs first.
(8)  A royalty adjustment 
	(a)	does not apply in respect of any month that occurs after the 
5-year period following the finished drilling date applicable 
to the drilling, deepening, lengthening or shortening of an 
eligible well, and
	(b)	if the eligible well is abandoned, terminates effective as of 
the date of abandonment.
Determinations by Minister
5(1)  If
	(a)	an eligible well is drilled or deepened below a true vertical 
depth of 2500 metres to a new measured depth that is below 
the base of the natural gas bearing interval of the deepest 
zone from which the well was, in the opinion of the Minister, 
producing gas in paying quantities, and
	(b)	the Minister is satisfied that the gas recovered or obtained 
from a qualifying pool in the deeper interval was 
subsequently recovered or obtained in paying quantities from 
a drilling spacing unit that, on the date the spudding in or 
commencement of deepening of the eligible well occurred, 
was not wholly or partly within the boundaries of a 
designated pool,
the Minister may determine a new measured depth and a new total 
royalty adjustment amount for the eligible well as if the well was 
deepened.
(2)  If the Minister determines a new measured depth pursuant to 
subsection (1), the royalty otherwise payable to the Crown on gas 
recovered or obtained from the eligible well determined by the 
Minister is eligible for a royalty adjustment in accordance with section 
4.
(3)  If an eligible well has received a royalty adjustment under this 
Regulation and 
	(a)	that well is subsequently deepened,
	(b)	the deepening results in a new measured depth, and
	(c)	the new measured depth results in a new total royalty 
adjustment amount calculated for the well,
the new total royalty adjustment amount applied to the well
	(d)	is the total royalty adjustment amount, and
	(e)	shall be applied as of the effective date of the deepening,
and the finished drilling date of the eligible well is deemed to be the 
latest finished drilling date as a result of the deepening of the well.
(4)  If an eligible well has received a royalty adjustment under this 
Regulation and 
	(a)	that well is subsequently lengthened or shortened,
	(b)	the lengthening or shortening results in a new measured 
depth, and
	(c)	the new measured depth results in a new total royalty 
adjustment amount calculated for the well,
the new total royalty adjustment amount applied to the well 
	(d)	is the total royalty adjustment amount, and
	(e)	shall be applied as of the effective date of the lengthening or 
shortening,
and the finished drilling date of the eligible well is deemed to be the 
first finished drilling date of the well before the well was lengthened or 
shortened.
(5)  If the new total royalty adjustment amount determined for an 
eligible well under subsection (3) or (4) is less than the amount of 
royalty adjustment already received by that well as of the effective date 
of the new total royalty adjustment, that well shall not receive any 
further royalty adjustments.
(6)  If an eligible well is receiving a royalty adjustment under this 
Regulation and that well subsequently becomes part of a unit area, 
	(a)	the Crown interest of each well event in that well is the 
Crown interest under the unit area, effective as of the date of 
the unit area,
	(b)	the Minister shall determine whether or not that well or well 
event is an eligible well or eligible well event as of the 
effective date of the unit area,
	(c)	the total royalty adjustment amount determined for that well 
does not change, and
	(d)	the amounts that well received in royalty adjustments prior to 
the well becoming part of a unit area do not change.
(7)  If an eligible well is receiving a royalty adjustment under this 
Regulation and the Crown interest in that well, or in any well event in 
that well, subsequently changes for a reason other than becoming part 
of a unit area as described under subsection (6), the Crown interest is 
adjusted accordingly, and there is no change to the total royalty 
adjustment amount determined for that well, or to the amounts that 
well received in royalty adjustments prior to the change in Crown 
interest.
(8)  For the purpose of this section, the "value of the adjusted royalty 
quantity" with respect to an eligible well is the aggregate of the 
amounts of royalty compensation that would have been payable under 
the Natural Gas Royalty Regulation, 2009 in respect of the Crown's 
royalty share of gas recovered or obtained from each eligible well 
event in that well in the absence of 
	(a)	any royalty exemption, adjustment or reduction under 
another current or former regulation, and
	(b)	any royalty adjustment under this Regulation
applied to that well event, or to the well that contains that well event, 
and without any deductions for allowable costs.
Transfer of royalty adjustment
6(1)  The Minister may approve the transfer of a royalty adjustment in 
section 4 or 5 from an eligible well to its twin well.
(2)  If the Minister approves the transfer of a royalty adjustment 
pursuant to subsection (1),
	(a)	the royalty adjustment on gas recovered or obtained from the 
eligible well from which the royalty adjustment was 
transferred terminates on the effective date of the transfer of 
the royalty adjustment to the twin well, and
	(b)	the royalty adjustment period applicable to the twin well is 
the balance of the royalty adjustment period that would have 
been applicable to the eligible well from which the royalty 
adjustment was transferred.
Factors affecting adjustment or determination
7   If, in respect of an eligible well or a twin well, the Minister is of the 
opinion that
	(a)	gas recovered or obtained from an eligible well or a twin well 
subject to royalty adjustment has resulted in a material 
reduction of gas recovered or obtained from another well that 
is not subject to a royalty adjustment,
	(b)	there are circumstances that, had they been known when the 
approval of a transfer of a royalty adjustment to a twin well 
was made, would have resulted in a refusal to allow the 
transfer,
	(c)	there are circumstances that, had they been known when a 
determination under section 5 was made, would have resulted 
in a refusal to make the determination, 
	(d)	a provision of this Regulation has not been complied with,
	(e)	compliance with section 47(6) of the Act in connection with 
an audit or examination relating to a royalty adjustment in 
respect of an eligible well was inadequate, or
	(f)	one or more acts, agreements, arrangements, transactions or 
operations were, before or after the coming into force of this 
Regulation, effected for the purpose of improperly, 
artificially or unduly obtaining or increasing a royalty 
adjustment,
the Minister may determine that gas recovered or obtained in respect of 
a well is not eligible in whole or in part for the royalty adjustment, may 
revoke a royalty adjustment in whole or in part and may disallow the 
transfer of a royalty adjustment to a twin well.
Reporting circumstances affecting eligibility
8   A person who has received a royalty adjustment shall forthwith 
notify the Minister in writing on learning of any circumstances that 
indicate the well or well event from which gas was recovered or 
obtained was not eligible for the royalty adjustment in whole or in part.
Transition wells
9(1)  A well that is eligible for, or received a royalty exemption or 
royalty adjustment under the 2002 Regulation is eligible for a royalty 
adjustment under this Regulation if it is an eligible well and if it meets 
the following criteria:
	(a)	the well was spudded or commenced deepening on or after 
October 25, 2007 and on or before December 31, 2008;
	(b)	the well is not a well described under section 3(3);
	(c)	the well, or a well event in that well, has unused royalty 
exemption or royalty adjustment under the 2002 Regulation. 
(2)  The total amount of royalty adjustment is calculated for a 
transition well as if it were an eligible well under this Regulation but 
the total royalty adjustment amount is then reduced by the amount of 
royalty exemption or adjustment received by the well, or by all well 
events in that well, under the 2002 Regulation.
Minister's decision final
10   Where any question arises pertaining to the interpretation or 
application of this Regulation, the Minister is the sole judge of the 
question and there is no appeal from the Minister's decision.
Expiry
11   This Regulation expires on June 30, 2024.
Coming into force
12   This Regulation comes into force on January 1, 2009.
Schedule
Development wells
1(1)  The total royalty adjustment for an eligible well classified as a 
development well is determined in accordance with the following 
formula:
total royalty adjustment = A+B+C+D+E
where 
	A	is the number of metres of the measured depth more than 
2500 but not more than 3500 multiplied by $625 per metre;
	B	is the number of metres of the measured depth more than 
3500 but not more than 4000 multiplied by $2500 per metre;
	C	is the number of metres of the measured depth more than 
4000 but not more than 5000 multiplied by $2500 per metre;
	D	is the number of metres of the measured depth more than 
5000 multiplied by $3000 per metre;
	E	is the supplemental royalty adjustment determined under 
subsection (2).
(2)  The supplemental royalty adjustment is as follows:
	(a)	if the measured depth is less than 4000 metres, $0;
	(b)	if the measured depth is 4000 metres or more, $875 000.
(3)  The maximum royalty adjustment is $8 000 000.
Exploratory wells
2(1)  The total royalty adjustment for an eligible well classified as an 
exploratory well is determined in accordance with the following 
formula:
total royalty adjustment = A+B+C+D+E
where 
	A	is the number of metres of the measured depth more than 
2500 but not more than 3500 multiplied by $625 per metre;
	B	is the number of metres of the measured depth more than 
3500 but not more than 4000 multiplied by $2500 per metre;
	C	is the number of metres of the measured depth more than 
4000 but not more than 5000 multiplied by $3125 per metre;
	D	is the number of metres of the measured depth more than 
5000 multiplied by $3750 per metre;
	E	is the supplemental royalty adjustment determined under 
subsection (2).
(2)  The supplemental royalty adjustment is as follows:
	(a)	if the measured depth is less than 4000 metres, $0;
	(b)	if the measured depth is 4000 metres or more, $875 000.
(3)  The maximum royalty adjustment is $10 000 000.


--------------------------------
Alberta Regulation 225/2008
Mines and Minerals Act
DEEP OIL EXPLORATORY WELL REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 597/2008) 
on December 10, 2008 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
	1	Interpretation
	2	Exploratory well
	3	Re-entry well
	4	Exploratory oil
	5	Declaration that well is an eligible well
	6	Royalty adjustment
	7	Twin well
	8	Deemed production
	9	Excluded production
	10	Effect of further work
	11	Termination of adjustment
	12	Factors affecting adjustment, designation or determination
	13	Request to revoke adjustment
	14	Effect of revocation
	15	Reinstatement of royalty adjustment
	16	Reporting circumstances affecting eligibility
	17	Minister's decision final
	18	Expiry
	19	Coming into force
Interpretation
1(1)  In this Regulation,
	(a)	"Act" means the Mines and Minerals Act;
	(b)	"Board" means the Energy Resources Conservation Board or 
the Alberta Energy and Utilities Board;
	(c)	"Crown interest" means the percentage of Crown ownership 
of crude oil recovered from a well event as determined by the 
Minister in accordance with section 26.1 of the Petroleum 
and Natural Gas Tenure Regulation (AR 263/97);
	(d)		"crude oil" means crude oil as defined in the Petroleum 
Royalty Regulation, 2009;
	(e)	"deepening" means the re-entry into a well and the drilling of 
any bore of the well away from the course of a pre-existing 
bore of the well and beyond the total depth of a pre-existing 
bore referred to in the licence for the well pursuant to an 
amendment of the licence or to any other approval by the 
Board relating to the well, so that crude oil or oil sands is 
obtained from a pool or oil sands deposit not penetrated by a 
pre-existing bore before the re-entry;
	(f)	"excluded production" means any substance obtained from 
an oil well or oil sands well that the Minister determines 
under section 9 to be excluded production;
	(g)	"exploratory interval" means,
	(i)	in the case of an exploratory well classified by the 
Board as a new field wildcat well or a new pool wildcat 
well, the interval that extends from the surface to the 
base of the well, and
	(ii)	in the case of an exploratory well classified by the 
Board as a deeper pool test well, the interval the Board 
specifies as the exploratory interval of the well;
	(h)	"exploratory oil" means crude oil or oil sands that is 
determined to be exploratory oil under section 4;
	(i)	"exploratory well" means an exploratory well described in 
section 2;
	(j)	"finished drilling date" means a finished drilling date for a 
well event according to the records of the Board;
	(k)	"ineligible well" means a well described in section 2(4);
	(l)	"licence" means a licence for a well issued under the Oil and 
Gas Conservation Act or the Oil Sands Conservation Act;
	(m)	"licensee" means the holder of a licence according to the 
records of the Board and includes a trustee or 
receiver-manager of property of a licensee;
	(n)	"oil sands well" means a well that produces oil sands, other 
than a gas well as defined in the Oil and Gas Conservation 
Regulations (AR 151/71);
	(o)	"oil sands well event" means a well event that is part of an 
oil sands well;
	(p)	"oil well" means an oil well as defined in the Oil and Gas 
Conservation Regulations (AR 151/71);
	(q)	"oil well event" means a well event that is part of an oil well;
	(r)	"operator" means an operator as defined in the Petroleum 
Royalty Regulation, 2009;
	(s)	"pool" means a pool as defined in the Petroleum Royalty 
Regulation, 2009;
	(t)	"re-entry well" means a re-entry well or resumption well 
described in section 3;
	(u)	"royalty adjustment" means the royalty adjustment referred 
to in section 6 or a royalty adjustment that has been 
transferred under section 7;
	(v)		"scheme boundary" means, in respect of a scheme that is an 
approved scheme under the Enhanced Recovery of Oil 
Royalty Reduction Regulation (AR 348/93),
	(i)	the boundaries of the scheme as described in an order 
issued by the Board approving the scheme, or
	(ii)	if the boundaries of the scheme are not so described, the 
boundaries of the pool or pools containing the whole or 
any part of the scheme and designated by order of the 
Board,
		including any changes to those boundaries that extend those 
boundaries outward;
	(w)	"true vertical depth" means the vertical distance measured in 
a perpendicular line from the kelly bushing of a well to the 
base of the bore of the well;
	(x)	"twin well" means a well designated as a twin well under 
section 7;
	(y)	"well event" means a well event as defined in the Petroleum 
Royalty Regulation, 2009.
(2)  A reference in this Regulation to a month, whether by its name or 
not, shall be construed as the period commencing at 8:00 a.m. 
Mountain Standard Time on the first day of the month and ending 
immediately before 8:00 a.m. Mountain Standard Time on the first day 
of the next month.
Exploratory well
2(1)  Subject to subsections (2) and (4), an oil well or an oil sands well 
is an exploratory well if it is classified by the Board as a new field 
wildcat well, a new pool wildcat well or deeper pool test well, and
	(a)	where the spudding or the commencement of drilling or 
deepening of the well occurs on or after January 1, 2009 and 
on or before December 31, 2013, 
	(i)	the well is drilled to a true vertical depth of greater than 
2000 metres, and
	(ii)	the top of the producing interval is below a true vertical 
depth of 2000 metres,
		or
	(b)	where the spudding or the commencement of drilling or 
deepening occurred on or after October 25, 2007 and on or 
before December 31, 2008,
	(i)	the well meets the requirements of clause (a)(i) and (ii), 
and
	(ii)	the well qualifies as a third tier exploratory well and has 
unused royalty exemption under the Third Tier 
Exploratory Well Royalty Exemption Regulation 
(AR 16/93).
(2)  If, under subsection (1)(a) with respect to a pool, there are multiple 
oil wells or oil sands wells that meet the requirements of subsection 
(1)(a)(i) and (ii), the first well in that pool to have discovered 
exploratory oil, in the opinion of the Minister, is the exploratory well.
(3)  The Minister may ask for additional information to aid in 
determining that a well meets the requirements of subsection (1) or (2).
(4)  An oil well or oil sands well is not an exploratory well under 
subsection (1) if
	(a)	any production of the well is subject to a royalty that has 
been prescribed under section 9 of the Petroleum Royalty 
Regulation, 2009,
	(b)	the well is eligible for a royalty adjustment under the Natural 
Gas Deep Drilling Regulation,
	(c)	the well is in whole or in part within the area enclosed by a 
scheme boundary or less than 0.8 kilometres from a scheme 
boundary, unless the Minister has made a declaration in 
respect of the well under section 5,
	(d)	exploratory oil or excluded production is not obtained from 
the well in the first month in which a substance is obtained 
from the well, or
	(e)	exploratory oil obtained from a well event of the well is not 
obtained in segregation from crude oil or oil sands obtained 
from another well event of the well that is not exploratory oil 
under section 4 of this Regulation.
Re-entry well
3   The Minister may, on application by an operator or licensee within 
6 months of the finished drilling date, determine that a well is a 
re-entry well eligible for a royalty adjustment if
	(a)		the well is a re-entry well or resumption well according to the 
records of the Board,
	(b)	the well meets the requirements of an exploratory well under 
section 2(1)(a) and is not an ineligible well,
	(c)	as a result of deepening of the well, the production from the 
well comes from a newly discovered pool, and
	(d)	the well meets any other requirements determined by the 
Minister.
Exploratory oil
4   Crude oil or oil sands that are not determined to be excluded 
production under section 9 are exploratory oil if 
	(a)		the crude oil or oil sands is obtained from an oil well event or 
oil sands well event, in segregation from any other crude oil 
or oil sands obtained from the well that is not exploratory oil, 
and the well event is part of
	(i)	an exploratory well classified by the Board as a new 
field wildcat well or a new pool wildcat well,
	(ii)	an interval specified by the Board as the exploratory 
interval of an exploratory well classified as a deeper 
pool test well by the Board,
	(iii)	a well that has been designated as a twin well in respect 
of an exploratory well classified as a deeper pool test 
well by the Board from a pool specified by the Minister,
	(iv)	a well that has been designated as a twin well in respect 
of an exploratory well classified by the Board as a new 
field wildcat well or a new pool wildcat well,
	(v)	a re-entry well, or
	(vi)	a well declared to be an eligible well under section 5,
	(b)	the Crown interest in the well event is greater than 0%, and
	(c)	the crude oil or oil sands is subject to the payment of royalty 
under the Petroleum Royalty Regulation, 2009 or the Oil 
Sands Royalty Regulation, 2009, respectively.
Declaration that well is an eligible well
5(1)  The Minister may, by order, declare that a well that is in whole or 
in part within the area enclosed by the scheme boundary of a scheme 
or less than 0.8 kilometres from the scheme boundary of a scheme is 
an eligible well if
	(a)	the Board has cancelled its requirement for a scheme or 
cancelled its approval of a scheme under section 38 or 39 of 
the Oil and Gas Conservation Act, or
	(b)	the t-factor for the scheme, if any, for the purposes of the 
Enhanced Recovery of Oil Royalty Reduction Regulation 
(AR 348/93) is zero.
(2)  An order by the Minister under subsection (1) may be made 
effective on a date earlier than the date the order is made, but may not 
be effective in respect of any period of time for which the Minister's 
power under section 38 of the Act to recalculate or make additional 
calculations of the Crown's royalty share of a mineral has expired.
Royalty adjustment
6(1)  In this section,
	(a)	"heavy oil" means heavy oil as defined in the Petroleum 
Royalty Regulation, 2009;
	(b)	"light oil" means light oil as defined in the Petroleum 
Royalty Regulation, 2009;
	(c)	"medium oil" means medium oil as defined in the Petroleum 
Royalty Regulation, 2009;
	(d)	"ultra heavy oil" means ultra heavy oil as defined in the 
Petroleum Royalty Regulation, 2009.
(2)  The royalty on exploratory oil obtained from an oil well event or 
oil sands well event that is payable under the Petroleum Royalty 
Regulation, 2009 or the Oil Sands Royalty Regulation, 2009 is adjusted 
to zero
	(a)	for the first 12 months that exploratory oil is obtained from 
the oil well event or oil sands well event,
	(b)	until the cumulative value of the royalty on the exploratory 
oil that would be payable in the absence of this Regulation 
equals $1 000 000 multiplied by the Crown interest in the 
exploratory oil,
	(c)	5 years from the finished drilling date if the finished drilling 
date is on or before December 31, 2013, or
	(d)	until December 31, 2018,
whichever occurs first.
(3)  For the purposes of subsection (2)(b) and section 11(1)(b), the 
value of each cubic metre of the royalty for exploratory oil obtained in 
any month after December 2008 is,
	(a)	in the case of exploratory oil that is light oil, the light oil par 
price for that month prescribed under the Petroleum Royalty 
Regulation, 2009 multiplied by the quantity of exploratory 
oil in cubic metres,
	(b)	in the case of exploratory oil that is medium oil, the medium 
oil par price for that month prescribed under the Petroleum 
Royalty Regulation, 2009 multiplied by the quantity of 
exploratory oil in cubic metres,
	(c)	in the case of exploratory oil that is heavy oil, the heavy oil 
par price for that month prescribed under the Petroleum 
Royalty Regulation, 2009 multiplied by the quantity of 
exploratory oil in cubic metres, and
	(d)	in the case of exploratory oil that is ultra heavy oil, the ultra 
heavy oil par price for that month prescribed under the 
Petroleum Royalty Regulation, 2009 multiplied by the 
quantity of exploratory oil in cubic metres.
(4)  For the purposes of subsection (2)(b),
	(a)	the Crown interest is the Crown interest applicable in the 
month in which the royalty adjustment commences,
	(b)	in the case of an exploratory well under section 2(1)(b), the 
cumulative value of the royalty that may be adjusted is 
further reduced by the amount of any royalty exemption 
received under the Third Tier Exploratory Well Royalty 
Exemption Regulation (AR 16/93), and
	(c)	in the month that the cumulative value of the royalty on the 
exploratory oil that would be payable in the absence of this 
Regulation equals $1 000 000 multiplied by the Crown 
interest in the exploratory oil, the royalty that is payable shall 
be adjusted only by the amount that would result in a 
cumulative value of $1 000 000 multiplied by the Crown 
interest in the exploratory oil, which may result in royalty 
payable greater than zero for that month.
Twin well
7(1)  The Minister may, on application by an operator or licensee, 
designate an oil well or oil sands well that meets the following criteria 
to be a twin well:
	(a)	the well, in the opinion of the Board, is drilled to obtain 
exploratory oil because the oil is not recoverable from an 
exploratory well due to inadvertent damage to the 
exploratory well;
	(b)	the well meets the requirements of an exploratory well under 
section 2(1)(a);
	(c)	the well is located in the same drilling spacing unit or legal 
subdivision, whichever is of lesser area, of the exploratory 
well if the exploratory well is within a drilling spacing unit or 
legal subdivision;
	(d)	the well is located not further from the exploratory well than 
a distance approved by the Minister if the exploratory well is 
not within a drilling spacing unit or legal subdivision.
(2)  When the Minister designates a well to be a twin well in respect of 
an exploratory well,
	(a)	the royalty adjustment ceases to apply to production from the 
exploratory well,
	(b)	the balance of the exploratory well's royalty adjustment 
period under section 6(2)(a) and the balance of the royalty 
value under section 6(2)(b) in respect of the exploratory well 
is transferred to the twin well, and
	(c)	the latest finished drilling date of the exploratory well 
becomes the finished drilling date of the twin well.
(3)  The Minister may, in the designation of a twin well,
	(a)	specify that the transfer of the royalty adjustment applies 
only to crude oil or oil sands obtained from a certain pool,
	(b)	make the effective date of the transfer a date that is before the 
application for a designation was made, and
	(c)	make the transfer of the royalty adjustment subject to other 
terms and conditions.
Deemed production
8   If exploratory oil is not obtained from an exploratory well or twin 
well in a month because the Board suspended production from the well 
for a contravention of or non-compliance with the Oil and Gas 
Conservation Act or the Oil Sands Conservation Act, the regulations 
under either Act or an order of the Board, that month is deemed for the 
purposes of section 6(2)(a) to be a month in which exploratory oil has 
been obtained from the well.
Excluded production
9(1)  The Minister may, on application by an operator or licensee, 
determine that any substance obtained from an oil well or oil sands 
well is excluded production if the Minister is of the opinion that 
	(a)	during the test of the well all natural gas and solution gas 
obtained from the well was flared or vented, and 
	(b)	after the test of the well all natural gas and solution gas 
obtained from the well is conserved. 
(2)  For the purposes of subsection (1), a substance is obtained during a 
test of an oil well or oil sands well if the Minister is of the opinion that
	(a)		the substance was obtained in an isolated occurrence,
	(b)	the quantity of the substance obtained is consistent with a test 
of the well, and
	(c)	the number of hours over which the substance is obtained is 
consistent with a test of the well.
(3)  An application under subsection (1) in respect of an oil well or oil 
sands well must be made by the operator in a form determined by the 
Minister within 6 months after the end of the first month in which any 
substance is obtained from the well.
Effect of further work
10   No crude oil or oil sands obtained from an exploratory well or a 
twin well after a royalty adjustment terminates in respect of the well 
under section 6(2) is eligible for a new royalty adjustment even if the 
crude oil or oil sands is obtained as a result of further drilling or 
deepening.
Termination of adjustment
11(1)  A royalty adjustment in respect of exploratory oil obtained from 
an exploratory well or a twin well terminates
	(a)	at the end of 12 months of production under section 6(2)(a),
	(b)	once the cumulative value of the royalty on the exploratory 
oil that would be payable in the absence of this Regulation 
equals
	(i)	in the case of an exploratory well under section 2(1)(a), 
$1 000 000 multiplied by the Crown interest in the 
exploratory oil, or
	(ii)	in the case of an exploratory well under section 2(1)(b), 
$1 000 000 multiplied by the Crown interest in the 
exploratory oil less any royalty exemption received 
under the Third Tier Exploratory Well Royalty 
Exemption Regulation (AR 16/93),
	(c)	at the end of the month in which the exploratory well is 
abandoned or, if a twin well has been designated, at the end 
of the month in which the twin well is abandoned,
	(d)	at the end of the month in which the exploratory well or twin 
well becomes an ineligible well referred to in section 2(4),
	(e)	at the end of the month in which the well has reached 5 years 
from the earliest finished drilling date, or
	(f)	at the end of the month in which a well has received a closed 
status from the Board,
whichever occurs first.
(2)  For the purposes of subsection (1)(b), the Crown interest is the 
Crown interest applicable in the month in which the royalty adjustment 
commences.
Factors affecting adjustment, designation or determination
12   If, in respect of an exploratory well or a twin well, the Minister is 
of the opinion that
	(a)	production of exploratory oil has exceeded the maximum 
allowable production authorized by the Board,
	(b)	production from an exploratory well or a twin well subject to 
a royalty adjustment has resulted in a material reduction of 
the production of crude oil or oil sands from another well, 
production from which is not subject to a royalty adjustment,
	(c)	there are circumstances that, had they been known when a 
designation of a twin well was made, would have resulted in 
a refusal to make the designation,
	(d)	there are circumstances that, had they been known when a 
determination under section 3 or a designation under section 
7(1) or (2) was made, would have resulted in a refusal to 
make the determination, 
	(e)	a term or condition specified in a designation of a twin well 
has not been complied with or satisfied,
	(f)	a provision of this Regulation has not been complied with,
	(g)	compliance with section 47(6) of the Act in connection with 
an audit or examination relating to a royalty adjustment in 
respect of a well has been inadequate, or
	(h)	one or more acts, agreements, arrangements, transactions or 
operations were, before or after the coming into force of this 
Regulation, effected for the purpose of improperly, 
artificially or unduly obtaining or increasing a royalty 
adjustment,
the Minister may refuse to designate a well to be a twin well, may 
determine that crude oil or oil sands in respect of a well may not in 
whole or in part receive a royalty adjustment or may revoke a royalty 
adjustment in whole or in part.
Request to revoke adjustment
13(1)  The Minister may wholly revoke a royalty adjustment in respect 
of exploratory oil obtained from an exploratory well or a twin well on 
receiving a request to do so from the operator or licensee of the well.
(2)  No crude oil or oil sands obtained from an exploratory well or a 
twin well after a royalty adjustment is revoked under subsection (1) or 
terminated under section 11 may receive a new royalty adjustment 
even if the crude oil or oil sands is obtained as a result of further 
drilling or deepening.
Effect of revocation
14   If the Minister revokes a royalty adjustment under section 12 or 
13 in respect of an exploratory well or a twin well, royalty on the 
exploratory oil obtained from the well is calculated as if entitlement to 
the adjustment never arose or arose only in part, in accordance with the 
revocation. 
Reinstatement of royalty adjustment
15(1)  If the Minister considers it appropriate to do so, the Minister 
may reinstate a royalty adjustment that was revoked wholly or in part 
under section 12 or 13.
(2)  If the Minister reinstates a royalty adjustment under subsection (1) 
in respect of an exploratory well or a twin well, royalty on the eligible 
oil obtained from the well is calculated as if entitlement to the 
adjustment was never revoked.
(3)  A reinstatement may be made effective on a date determined by 
the Minister, but may not be effective in respect of any period of time 
for which the Minister's power under section 38 of the Act to 
recalculate or make additional calculations of the Crown's royalty 
share of a mineral has expired.
Reporting circumstances affecting eligibility
16   An operator or licensee shall forthwith notify the Minister in 
writing on learning of any circumstances that indicate that exploratory 
oil was not eligible in whole or in part for a royalty adjustment that 
was applied to the royalty payable on the exploratory oil.
Minister's decision final
17   Where any question arises pertaining to the interpretation or 
application of this Regulation, the Minister is the sole judge of the 
question and there is no appeal from the Minister's decision.
Expiry
18   This Regulation expires on June 30, 2024.
Coming into force
19   This Regulation comes into force on January 1, 2009.


--------------------------------
Alberta Regulation 226/2008
Mines and Minerals Act
CO2 PROJECTS ROYALTY CREDIT AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 598/2008) 
on December 10, 2008 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
1   The CO2 Projects Royalty Credit Regulation 
(AR 120/2003) is amended by this Regulation.

2   Section 14 is repealed and the following is substituted:
Expiry
14   This Regulation expires on June 30, 2014.


--------------------------------
Alberta Regulation 227/2008
Public Trustee Act
PUBLIC TRUSTEE INVESTMENT AMENDMENT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 604/2008) 
on December 10, 2008 pursuant to section 46 of the Public Trustee Act. 
1   The Public Trustee Investment Regulation (AR 24/2006) 
is amended by this Regulation.

2   Section 7 is renumbered as section 7(2) and the 
following is added before subsection (2):
Separate investments
7(1)  For the purpose of section 37(3) of the Act, the Public Trustee 
may make a separate investment for a client by doing one or more of 
the following:
	(a)	contributing money of the client to a registered disability 
savings plan as defined in the Income Tax Act (Canada);
	(b)	contributing money of the client to a TFSA as defined in the 
Income Tax Act (Canada).


--------------------------------
Alberta Regulation 228/2008
Trustee Act
TRUSTEE ACT REGULATION
Filed: December 10, 2008
For information only:   Made by the Lieutenant Governor in Council (O.C. 605/2008) 
on December 10, 2008 pursuant to section 47 of the Trustee Act. 
Tax-free savings plan
1   A TFSA under section 146.2 of the Income Tax Act (Canada) is 
prescribed for the purpose of section 47(1)(c)(iv) of the Trustee Act.


--------------------------------
Alberta Regulation 229/2008
Traffic Safety Act
BUS SAFETY AMENDMENT REGULATION
Filed: December 11, 2008
For information only:   Made by the Minister of Transportation (M.O. 44/08) on 
December 10, 2008 pursuant to sections 81 and 156 of the Traffic Safety Act. 
1   The Bus Safety Regulation (AR 212/2006) is amended by 
this Regulation.

2   Section 8 is amended by striking out "2008" and 
substituting "2009".



Alberta Regulation 230/2008
Traffic Safety Act
COMMERCIAL BUS EQUIPMENT AND SAFETY 
AMENDMENT REGULATION
Filed: December 11, 2008
For information only:   Made by the Minister of Transportation (M.O. 45/08) on 
December 10, 2008 pursuant to sections 81 and 156 of the Traffic Safety Act. 
1   The Commercial Bus Equipment and Safety Regulation 
(AR 213/2006) is amended by this Regulation.

2   Section 21 is amended by striking out "2008" and 
substituting "2009".


--------------------------------
Alberta Regulation 231/2008
Mines and Minerals Act
OIL SANDS ALLOWED COSTS (MINISTERIAL) REGULATION
Filed: December 11, 2008
For information only:   Made by the Minister of Energy (M.O. 82/2008) on December 
10, 2008 pursuant to section 36(5.1) of the Mines and Minerals Act. 
Table of Contents
	1	Interpretation
	2	Return allowance rate
Part 1 
Requirements for Allowed Costs
	3	Allowed costs
	4	Fundamental costs
	5	Discretionary allowed costs
	6	Evidence of costs
	7	Reduction of allowed cost
Part 2 
Amount of Costs and Charges
Division 1 
Allocation of Allowed Costs
	8	Allocation
Division 2 
Non-arm's Length Costs and Charges
	9	Application of this Division
	10	Fair market value for costs
	11	Capital assets for cost of service determination
	12	Cost of non-arm's length goods and services
	13	Cost of non-arm's length capital assets
	14	Calculated value
Part 3 
Deemed Allowed Costs
	15	Allowed costs on and after January 1, 2009
	16	Carry-over of allowed costs under Prior Regulation
Part 4 
Expiry and Coming into Force
	17	Expiry
	18	Coming into force 
 
Schedule
Interpretation
1(1)  In this Regulation,
	(a)	"basic service", in respect of a Project, means a service
	(i)	without which oil sands or oil sands products to be 
recovered or obtained pursuant to the Project could not 
physically be so recovered or obtained, or
	(ii)	necessary for the operation or maintenance of a core or 
supporting asset referred to in section 1(1)(f)(i) of the 
Oil Sands Royalty Regulation, 2009,
		performed utilizing a core or supporting asset that is not 
included in the description of the Project, but does not 
include a service the cost of which is corporate overhead;
	(b)	"corporate overhead", in respect of a Project, means costs 
that are not directly and solely incurred for the purposes of 
Project operations, including, without limitation, expenses in 
relation to
	(i)	information technology,
	(ii)	performance of human resource functions,
	(iii)	office space and office operations,
	(iv)	accounting services,
	(v)	research, and 
	(vi)	any other corporate operation or purpose;
	(c)	"cost of service", in respect of a service performed by any 
person, means the actual cost to the person to perform the 
service, except that the portion of the actual cost attributable 
to the use of a capital asset to perform the service is
	(i)	an amount determined in accordance with the Minister's 
directions as depreciation in respect of the cost of the 
capital asset determined in accordance with section 11, 
and 
	(ii)	a rate of return determined in accordance with clause (i) 
on the undepreciated portion of the cost of the capital 
asset determined in accordance with section 11;
	(d)	"cumulative cost" has the meaning given to it in section 25 of 
the Oil Sands Royalty Regulation, 2009;
	(e)	"cumulative revenue" has the meaning given to it in section 
25 of the Oil Sands Royalty Regulation, 2009;
	(f)	"environmental laws" means legally enforceable obligations 
in respect of the environment imposed by Acts or regulations 
of the Government of Alberta or Canada or bylaws of a 
municipality in Alberta, and includes any levies or charges 
based on levels of production, consumption or emissions, but 
does not include taxes;
	(g)	"fair market value" means fair market value as determined by 
the Minister in accordance with section 10;
	(h)	"fundamental cost" means a cost described in section 4, but 
does not include a specifically included cost, a specifically 
excluded cost or a cost excluded from allowed costs under 
section 3(2);
	(i)	"rate of return", unless the Minister specifies otherwise, 
means
	(i)	the return allowance rate that is applicable from time to 
time, in the case of a capital asset utilized to perform a 
basic service in relation to a Project, or
	(ii)	the return allowance rate referred to in subclause (i) plus 
an additional amount, if any, specified by the Minister 
from time to time by order or otherwise in respect of the 
capital asset or the applicable class of capital asset, in 
the case of a capital asset utilized to perform any other 
kind of service;
	(j)	"return allowance rate" means return allowance rate as 
determined under section 2;
	(k)	"specifically excluded costs" means costs listed in, or costs 
of activities listed in, column 2 of the Schedule;
	(l)	"specifically included costs" means costs listed in, or costs of 
activities listed in, column 1 of the Schedule.
(2)  Sections 1, 2, 3, 5, 6, 14, 18, 19, 48 and 50 of the Oil Sands 
Royalty Regulation, 2009 apply with respect to this Regulation unless 
otherwise specified in this Regulation or otherwise required by 
necessary implication.
Return allowance rate
2(1)  The return allowance rate for any month is the rate calculated in 
accordance with the following formula:
mr = (1+LTBR)(1/12)-1
where
mr	is the return allowance rate for the month;
LTBR	is the simple average of the Selected Government of Canada 
long-term benchmark yields, published as a percentage and 
for the purposes of this formula expressed in a decimal 
format, specified for the Wednesdays of the preceding month 
in the Weekly Financial Statistics next published by the Bank 
of Canada after the last of those Wednesdays of that preceding 
month.
(2)  The return allowance rate for a Period is the simple average of the 
Selected Government of Canada long-term benchmark yields specified 
for the last Wednesday of each month of the Period in Weekly 
Financial Statistics next published by the Bank of Canada after each of 
those Wednesdays.
(3)  If the long-term benchmark yields referred to in subsections (1) 
and (2) cease to be published by the Bank of Canada for any period of 
time, the Minister may prescribe a substitute benchmark yield to be 
used for the purposes of subsections (1) and (2) in the place of those 
long-term benchmark yields.
Part 1 
Requirements for Allowed Costs
Allowed costs
3(1)  A cost is an allowed cost of a Project to the extent that
	(a)	the cost
	(i)	is incurred by or on behalf of the lessee or operator of 
the Project,
	(ii)	is incurred on or after the later of January 1, 2009 and 
the effective date of the Project,
	(iii)	is incurred to carry out Project operations,
	(iv)	is reasonable under the circumstances in which it is 
incurred, and
	(v)	is adequately evidenced in accordance with section 6 
and affirmatively established to the satisfaction of the 
Minister,
	(b)	the cost is one of the following:
	(i)	a specifically included cost;
	(ii)	a fundamental cost of the Project under section 4;
	(iii)	a cost approved by the Minister under section 5,
		and
	(c)	the cost is not a specifically excluded cost or a cost excluded 
from allowed costs under subsection (2).
(2)  If the lessee or operator of a Project obtains a core or supporting 
asset that is not included in the description of the Project, the amount 
of the capital cost of the asset is not an allowed cost of the Project.
Fundamental costs
4(1)  Fundamental costs of a Project are costs incurred directly
	(a)	to recover, obtain, process or transport oil sands or oil sands 
products, or to market oil sands products, pursuant to the 
Project,
	(b)	to reclaim or abandon Project lands, or
	(c)	to comply with environmental laws applicable to the Project 
or applicable to a lessee or operator of the Project in respect 
of the Project.
(2)  Fundamental costs of a Project do not include costs incurred in 
respect of
	(a)	corporate overhead,
	(b)	lands other than Project lands, or
	(c)	an expansion of the Project before the effective date of the 
Project expansion.
Discretionary allowed costs
5(1)  The operator of a Project may apply to the Minister for approval 
of any of the following as an approved cost of the Project:
	(a)	a cost that has been incurred;
	(b)	a cost that is being incurred;
	(c)	a cost that will be incurred.
(2)  The Minister may approve a cost as an approved cost of the 
Project if
	(a)	the Minister is satisfied that 
	(i)	the requirements of section 5(2) and (3) of the Oil Sands 
Royalty Regulation, 2009 have been complied with in 
relation to the application, and
	(ii)	approving the cost would not expose the Crown to the 
risk of overstated or unverifiable costs being included in 
allowed costs of the Project,
		and
	(b)	in the Minister's opinion, incurring the cost directly and 
materially benefits the Project operations and is not too 
remote from the Project operations.
(3)  An approval granted under subsection (2) may specify 
	(a)	a term for the approval, which may include a period of time 
that precedes the date of the approval, and
	(b)	the terms and conditions to which the approval is subject.
(4)  If the Minister is of the opinion that a requirement set out in 
subsection (2) or a term or condition specified in an approval has not 
been or is not being met or complied with, the Minister may by notice 
to the operator of the Project
	(a)	terminate the approval granted under subsection (2), effective 
from the date of termination, or
	(b)	revoke the approval granted under subsection (2), effective 
from the date of revocation or from a date that precedes the 
date of revocation.
(5)  Termination of an approval in relation to a cost does not preclude a 
further application under subsection (1) in relation to the cost, and the 
cost ceases to be treated as an approved cost on the effective date of 
the termination.
(6)  Revocation of an approval in relation to a cost precludes a further 
application under subsection (1) in relation to the cost, and the cost 
ceases to be treated as an approved cost on the effective date of the 
revocation.
Evidence of costs
6   The lessee or operator of a Project must be capable of providing 
contracts, invoices, receipts, time sheets and other documents or 
records that clearly establish
	(a)	that a cost has been incurred,
	(b)	the gross and net amounts of the cost, and
	(c)	that the cost has actually been paid and the date of payment.
Reduction of allowed cost
7(1)  An allowed cost of a Project is reduced 
	(a)	to the extent it would not be allowed as a deduction in 
computing income under the Income Tax Act (Canada), if it 
is in respect of the human consumption of food or beverages 
or the enjoyment of entertainment, 
	(b)	by the amount of any credit or discount received by the 
operator or lessee of the Project, or by an affiliate of either of 
them, that is intended to reduce or offset the cost, and
	(c)	by the amount of any economic assistance, other than 
economic assistance in the form of a reduction in income tax 
payable or in the form of a reduction of royalty, royalty 
proceeds or royalty compensation by virtue of allocable 
costs, that is
	(i)	provided by the Province of Alberta or the Government 
of Canada, or an agency of either, to the operator or 
lessee of the Project, or to an affiliate of either of them, 
and
	(ii)	intended to reduce or offset the cost.
(2)  The amount of an allowed cost does not include the amount of any 
taxes paid or payable under Part IX of the Excise Tax Act (Canada) by 
or on behalf of the lessee of a Project.
Part 2 
Amount of Costs and Charges
Division 1 
Allocation of Allowed Costs
Allocation
8(1)  Where a cost incurred by or on behalf of a lessee of a Project 
may only be an allowed cost in part, the operator of the Project must 
allocate the portion of the cost that is an allowed cost and the portion 
of the cost that is not an allowed cost.
(2)  The Minister may, with respect to any amount reported to the 
Minister as an allowed cost of a Project, give the operator a notice 
requiring the operator to disclose to the Minister within the time 
specified in the notice
	(a)	any allocation used by the operator to determine the amount 
of the allowed costs reported,
	(b)	the basis and justification for the allocation, and
	(c)	any documentation and records supporting the allocation.
(3)  If the Minister is satisfied that an allocation disclosed under 
subsection (2) or otherwise is not fair and reasonable or is not justified 
by adequate supporting documentation, the Minister may, by notice, 
direct the operator to supply additional information or otherwise justify 
the allocation within the time specified in the notice.
(4)  After the expiry of the period set out in the notice given under 
subsection (2) or (3), or both, the Minister may determine the 
allocation and the amount of the portion of the cost that is an allowed 
cost, and must provide the determination of the allocation to the 
operator.
(5)  The Minister may refrain from making a determination under 
subsection (4) if 
	(a)	the Minister did not receive, in accordance with and within 
the time specified in a notice given under subsection (2), the 
items required to be provided pursuant to the notice,
	(b)	the Minister did not receive, in accordance with and within 
the time specified in a notice given to the operator under 
subsection (3), the additional information or further 
justification required to be provided pursuant to the notice, if 
a notice was given under that subsection,
	(c)	the operator did not comply with section 5(2) or (3) of the Oil 
Sands Royalty Regulation, 2009 in relation to submission of 
the items, information or further justification required to be 
provided pursuant to a notice given under subsection (2) or 
(3), as the case may be, or
	(d)	the items received by the Minister pursuant to a notice given 
under subsection (2), or the additional information or further 
justification received pursuant to a notice, if any, given under 
subsection (3) are not, in the Minister's opinion, adequate for 
the Minister to make the determination.
(6)  If the Minister has made a determination under subsection (4), the 
portion of the cost that is determined to be an allowed cost is the 
amount of the allowed cost for the purposes of the Oil Sands Royalty 
Regulation, 2009.
(7)  If the Minister refrains from making a determination under 
subsection (4), then no portion of the cost that was the subject of the 
notice given under subsection (2) or (3), as the case may be, is an 
allowed cost for the purposes of the Oil Sands Royalty Regulation, 
2009.
(8)  The making of a determination by the Minister under subsection 
(4) in relation to a cost does not preclude the making of a further 
determination pursuant to this section in relation to the same cost.
Division 2 
Non-arm's Length Costs and Charges
Application of this Division
9(1)  This Division applies, in conjunction with Part 1 and section 8, to 
the determination of the amount of allowed costs relating to goods, 
services or capital assets other than goods, services or capital assets 
acquired pursuant to an arm's length transaction.
(2)  This Division applies to the determination of the amount
	(a)	of handling charges as defined in section 32(1)(a) of the Oil 
Sands Royalty Regulation, 2009, other than such handling 
charges that arise pursuant to an arm's length transaction, and
	(b)	of charges included in TRC and DRC, as those terms are 
defined in section 5(2) and (4) of the Bitumen Valuation 
Methodology (Ministerial) Regulation, other than such 
charges that arise pursuant to an arm's length transaction.
(3)  Despite the other sections of this Division, if the Minister is of the 
opinion that a fair market value, calculated value or cost of service 
determined under this Division duplicates, in whole or in part, a cost or 
charge of a kind referred to in subsection (1) or (2) that arises pursuant 
to an arm's length transaction, the amount of that cost or charge is, as 
of the date the cost or charge is incurred, deemed to be reduced to the 
extent of the duplication.
(4)  For the purposes of this Division,
	(a)	the providing of thermal energy for the purposes of a Project 
is a service,
	(b)	the transmission and distribution of electricity and the 
provision of ancillary services as defined in the Electric 
Utilities Act are services, and
	(c)	electricity is a good.
Fair market value for costs
10(1)  The amount of any fair market value referred to in this Division 
in relation to a good, service or other asset is the value determined by 
the Minister in accordance with this section.
(2)  Subject to this section, in determining for the purposes of this 
Division, the fair market value of a good, service or asset, other than 
the service of transporting a substance by pipeline, the Minister may, 
without limiting any other method of determining fair market value, 
adopt
	(a)	the price of comparable goods, services or assets, if that price 
is published and generally adopted by buyers and sellers of 
such goods, services or assets,
	(b)	a price for comparable goods, services or assets prescribed or 
determined pursuant to any Act or regulation of the 
Government of Alberta or Canada, or
	(c)	an average of the prices paid for comparable goods, services 
or assets in arm's length transactions.
(3)  The Minister may adjust a price or average of prices referred to in 
subsection (2) to reflect the most cost effective means of delivery from 
the place at which the price is determined.
(4)  Subject to this section, in determining for the purposes of section 
12(1)(a) the fair market value of the service of transporting a substance 
by pipeline, the Minister may, without limiting any other method of 
determining fair market value, adopt
	(a)	a tariff charged for the service, if the tariff is fixed or 
approved for such service by a regulatory authority having 
jurisdiction to do so,
	(b)	the tariff charged for the service by the owner of the pipeline, 
if, in the Minister's opinion,
	(i)	clause (a) does not apply,
	(ii)	the pipeline is subject to regulation on a complaints 
basis,
	(iii)	the tariff is generally agreed to and paid by persons who 
obtain the service in arm's length transactions,
	(iv)	the tariff is just and reasonable in the circumstances,
	(v)	all tariffs charged for transporting substances by means 
of the pipeline are published, and
	(vi)	no tariff or any other term for transporting substances 
by means of the pipeline unjustly discriminates among 
persons seeking to obtain or obtaining such service,
		or
	(c)	the weighted average of the prices paid by persons pursuant 
to arm's length transactions for comparable service, or if the 
Minister is satisfied no comparable service is provided, for 
transporting the substances by means of the pipeline, if, in 
the Minister's opinion,
	(i)	clauses (a) and (b) do not apply,
	(ii)	the pipeline is subject to regulation on a complaints 
basis,
	(iii)	not less than 2/3 of the quantities of oil sands products 
transported by means of the pipeline during the period 
the weighted average is adopted are transported 
pursuant to arm's length transactions, and
	(iv)	the weighted average of prices is just and reasonable in 
the circumstances.
(5)  The Minister may adjust a tariff or weighted average of prices 
referred to in subsection (4) to reflect differences between the terms of 
service applicable in respect of the tariff or weighted average of prices 
and the terms of service applicable in respect of the transportation 
service actually provided.
(6)  For the purposes of subsection (4)(b)(ii) and (c)(ii), "subject to 
regulation on a complaints basis" means subject to a process pursuant 
to legislation whereby a customer or potential customer for the 
transportation service can complain regarding the charge for or terms 
of such service, or both, to a regulatory authority having jurisdiction to 
hear such a complaint and to fix the charge and terms of service.
(7)  Subject to subsection (8), a price, an average of prices or a tariff 
may be adopted by the Minister pursuant to subsection (2) or (4) for 
such period or periods as the Minister may specify from time to time.
(8)  A price, an average of prices or a tariff adopted by the Minister 
pursuant to subsection (2) or (4) ceases to apply prior to the end of the 
period or periods specified under subsection (7) if any requirement 
specified in subsection (2) or (4) with respect to the adoption of the 
price, average of prices or tariff ceases to be met.
Capital assets for cost of service determination
11(1)  Subject to subsection (3), the cost of a capital asset for the 
purposes of determining a cost of service for a service provided using 
the capital asset is the lesser of 
	(a)	the fair market value of the asset, where the Minister is 
satisfied that a fair market value can reasonably be 
determined, and
	(b)	the net book value of the asset to the person providing the 
service using the capital asset,
when the use of the capital asset to provide the service for which the 
cost of service is being determined commences.
(2)  The net book value of an asset for the purposes of subsection 
(1)(b) is the undepreciated portion of the cost to the person referred to 
in that subsection, according to 
	(a)	the records of the Department, or
	(b)	if the Department has no records, the records of the person.
(3)  If the Minister is of the opinion that a capital asset used to provide 
a service is also used to provide other kinds of services, the Minister 
may from time to time give the operator of the Project a notice 
requiring the operator to propose, within the time specified in the 
notice, an allocation of the cost of the capital asset determined under 
subsection (1) between
	(a)	the portion that fairly and reasonably represents the 
proportionate use of the asset to provide the service, and
	(b)	the portion that represents the proportionate use of the asset 
to provide other kinds of services.
(4)  If the Minister is satisfied that a proposed allocation under 
subsection (3) is not fair and reasonable or is not justified by adequate 
supporting documentation, the Minister may, by notice, direct the 
operator to supply additional information or otherwise justify the 
proposed allocation within a time specified by the Minister.
(5)  The Minister may, by notice to the operator, determine the portion 
of the cost of the capital asset that the Minister considers to fairly and 
reasonably represent the proportionate use of the asset to provide a 
service, except that the Minister shall not do so until after the time 
specified under subsection (4) has expired if the Minister gave a notice 
under that subsection.
(6)  The Minister may refrain from making a determination under 
subsection (5) if 
	(a)	the Minister did not receive a proposed allocation in 
accordance with, and within the time specified in, a notice 
given under subsection (3),
	(b)	the Minister did not receive additional information or further 
justification for the operator's proposed allocation in 
accordance with, and within the time specified in, a notice 
given to the operator under subsection (4), 
	(c)	the operator did not comply with section 5(2) or (3) of the Oil 
Sands Royalty Regulation, 2009 in relation to the submission 
of the proposed allocation or the submission of the additional 
information or further justification, or
	(d)	the Minister received additional information or further 
justification in accordance with the notice given under 
subsection (4), but the information or justification was not, in 
the Minister's opinion, adequate for the Minister to make the 
determination.
(7)  If the Minister has made a determination under subsection (5), the 
portion of the cost of the capital asset identified in the determination 
shall be used for the purposes of determining the cost of service for the 
service provided using the capital asset, rather than the cost of the 
capital asset determined under subsection (1), until that portion is 
changed by a further determination, if any, by the Minister in 
accordance with subsections (3), (4) and (5).
Cost of non-arm's length goods and services
12(1)  Subject to subsection (3) and section 14, the amount of a cost or 
charge referred to in section 9(1) or (2) incurred for a good or service, 
other than a basic service, is
	(a)	where the Minister is satisfied that a fair market value can 
reasonably be determined for the good or service, the lesser 
of 
	(i)	the amount charged for the good or service, and
	(ii)	the fair market value of the good or service,
		or
	(b)	where the Minister is satisfied that a fair market value cannot 
reasonably be determined for the good or service, and that 
the service is performed without utilizing a capital asset, the 
lesser of
	(i)	the amount charged for the good or service, and
	(ii)	the actual cost to produce the good or perform the 
service, incurred by the person who produced the good 
or performed the service.
(2)  Subject to subsection (4) and sections 11 and 14, the amount of
	(a)	an allowed cost of a Project incurred for a basic service, or
	(b)	a cost or charge referred to in section 9(1) or (2) for any other 
service for which the Minister is satisfied that a fair market 
value cannot reasonably be determined and that is performed 
utilizing a capital asset
is the lesser of the amount charged for the service and the cost of 
service of the person who performs the service.
(3)  If a service is performed in order to produce a good referred to in 
subsection (1)(b) and that service is performed utilizing a capital asset, 
the portion of the actual cost incurred to produce the good that is 
attributable to the service is, subject to subsection (4),  
	(a)	the fair market value of the service, if the Minister is satisfied 
that a fair market value can reasonably be determined for the 
service, or
	(b)	the cost of service of the person who performs the service, in 
any other case.
(4)  If the Minister is of the opinion that a cost of service cannot be 
determined for the purposes of subsection (2) or (3) because
	(a)	the Minister has refrained from making a determination 
under section 11(5) in relation to a capital asset where that 
determination is required to determine the cost of service, or
	(b)	the Minister has not given a notice under section 11(3) 
because, in the Minister's opinion, the circumstances do not 
reasonably permit the determination of a cost of service,
the Minister shall, by notice to the operator of the Project in respect of 
which the determination is otherwise required, provide an estimate of 
the value of the service, and that estimate shall apply for the purposes 
of subsections (2) and (3) in place of the cost of service.
Cost of non-arm's length capital assets
13(1)  The amount of an allowed cost of the Project incurred for a 
capital asset that is included in the description of the Project is the least 
of
	(a)	the amount charged to the Project for the capital asset, 
	(b)	the fair market value of the asset, where the Minister is 
satisfied that a fair market value can reasonably be 
determined, and
	(c)	the net book value of the asset 
	(i)	to the lessee or operator of the Project, as the case may 
be, if the asset is not obtained by either from another 
person, or
	(ii)	to any other person from whom the asset is obtained by 
the lessee or operator of the Project
when the asset is delivered to the Project site.
(2)  The net book value of an asset for the purposes of this section is 
the undepreciated portion of the cost to the lessee, operator or other 
person for whom net book value is being determined, according to
	(a)	the records of the Department, or
	(b)	if the Department has no records, the records of the lessee, 
operator or other person, respectively.
Calculated value
14(1)  If the Minister is of the opinion that a fair market value or a cost 
of service, that is required by a provision of this Division to be used in 
determining the amount of an allowed cost, cannot reasonably be 
determined pursuant to this Division, the Minister may, employing 
engineering, economic or financial principles, determine a calculated 
value for the fair market value or cost of service, as the case may be.
(2)  If the Minister has determined a calculated value pursuant to 
subsection (1), the calculated value is to be used in the relevant 
provision of this Division in place of the required fair market value or 
cost of service, as the case may be.
Part 3 
Deemed Allowed Costs
Allowed costs on and after January 1, 2009
15(1)  The net loss of a Project for a post-payout Period commencing 
on or after January 1, 2009 is an allowed cost of the Project for the 
next post-payout Period.
(2)  Any royalty compensation paid in respect of royalty calculated 
under section 29(2)(a) of the Oil Sands Royalty Regulation, 2009 in 
respect of a Project for a post-payout Period commencing on or after 
January 1, 2009 is, to the extent it exceeds the royalty compensation 
that would otherwise have been paid in respect of royalty calculated 
under section 29(2)(b) of that Regulation in respect of the Project for 
the same Period, an allowed cost of the Project for the next post-payout 
Period.
(3)  The product calculated by multiplying
	(a)	the excess, if any, of 
	(i)	the cumulative cost of a Project as of the last day of a 
month of a pre-payout Period of the Project 
commencing on or after January 1, 2009, 
		over
	(ii)	the cumulative revenue of the Project as of the same 
day,
by
	(b)	the return allowance rate for the month
is an allowed cost of the Project for the following month, unless 
subsection (6) applies.
(4)  The product calculated by multiplying the return allowance rate of 
a Project for a post-payout Period commencing on or after January 1, 
2009
	(a)	by the product of 183/365 and the net loss, if any, of the 
Project for the Period, if 
	(i)	the preceding post-payout Period also commenced on or 
after January 1, 2009 and a net loss did not also arise in 
respect of the Project for that preceding post-payout 
Period, or
	(ii)	the preceding post-payout Period ended on December 
31, 2008 and a net loss, as defined in the Prior 
Regulation, did not also arise in respect of the Project 
for that preceding post-payout Period,
	(b)	by the net loss, if any, of the Project for the Period, if 
	(i)	the preceding post-payout Period also commenced on or 
after January 1, 2009 and a net loss also arose in respect 
of the Project for that preceding post-payout Period, or
	(ii)	the preceding post-payout Period ended on December 
31, 2008 and a net loss, as defined in the Prior 
Regulation, also arose in respect of the Project for that 
preceding post-payout Period,
		or
	(c)	by the portion specified by the Minister of the net loss, if any, 
of the Project for the Period, in any other case,
is an allowed cost of the Project for the next post-payout Period, unless 
subsection (6) applies.
(5)  The prior net cumulative balance of a Project expansion is, to the 
extent it is a positive amount, an allowed cost of the Project to which 
the expansion relates, for the Period in which the effective date of the 
Project expansion occurs, if that Period is a post-payout Period.
(6)  The products referred to in subsection (3) in respect of any month 
of a pre-payout Period of a Project and in subsection (4) in respect of a 
post-payout Period of the Project, as the case may be, are not allowed 
costs of the Project for the next month or next post-payout Period, 
respectively, if the Minister has notified the operator of the Project that 
the Minister is of the opinion that operations in respect of the Project 
have been or are substantially suspended or abandoned for a period of 
time and the month or post-payout Period, respectively, falls within 
that period.
(7)  The excess, if any, of
	(a)	the cumulative cost of a Project as of the day preceding the 
Project payout date, where the Project payout date is on or 
after January 1, 2009,
over
	(b)	the cumulative revenue of the Project as of the same day
is an allowed cost of the Project for the Period starting on the Project 
payout date.
(8)  If the unit price applicable to the quantity of blended bitumen 
containing the Crown's royalty share of cleaned crude bitumen 
obtained pursuant to a Project and delivered at a royalty calculation 
point for the cleaned crude bitumen in a month of a pre-payout Period 
or in a post-payout Period
	(a)	is zero or a negative amount, the cost of diluent included in 
the blended bitumen is an allowed cost of the Project for the 
next month or Period, respectively, or
	(b)	is a positive amount, the excess, if any, of 
	(i)	the cost of diluent included in the blended bitumen,
		over
	(ii)	the product of the unit price and the quantity of the 
blended bitumen
		is an allowed cost of the Project for the next month or Period, 
respectively.
(9)  If an amendment of a Project is approved under section 11(2) of 
the Oil Sands Royalty Regulation, 2009 that provides for the 
amalgamation of
	(a)	a Project for which the Project payout date has not occurred 
as of the day preceding the effective date of the amendment, 
and
	(b)	one or more other Projects for at least one of which the 
Project payout date has occurred as of the day preceding the 
effective date of the amendment,
the excess, if any, of
	(c)	the cumulative cost of the Project referred to in clause (a) as 
of the last day preceding the amendment Period of the 
Project, 
over
	(d)	the cumulative revenue of the Project as of that last day
is an allowed cost of the amalgamated Project for the first 
amalgamated Period of the amalgamated Project.
(10)  In subsection (9), "amendment Period", "amalgamated Project" 
and "first amalgamated Period" have the meaning given to those terms 
in section 24 of the Oil Sands Royalty Regulation, 2009.
Carry-over of allowed costs under Prior Regulation
16(1)  If an amount is, pursuant to section 4(a), (b) or (d) of Schedule 
1 or 2 of the Prior Regulation, as the case may be, an allowed cost of a 
Project for a next post-payout Period of the Project and that next 
Period commences on January 1, 2009, that amount is, for the purposes 
of this Regulation and without duplication, an allowed cost of the 
Project for that next Period, unless subsection (3) applies.
(2)  If an amount is, pursuant to section 4(c) of Schedule 1 or 2 of the 
Prior Regulation, as the case may be, an allowed cost of a Project for a 
following month and that following month is January 2009, that 
amount is, for the purposes of this Regulation and without duplication, 
an allowed cost of the Project for January 2009, unless subsection (3) 
applies.
(3)  The products referred to in section 4(c) and (d) of Schedules 1 and 
2 of the Prior Regulation that are otherwise deemed by subsection (1) 
or (2) of this section, respectively, to be allowed costs of a Project in 
respect of the post-payout Period of the Project commencing January 
1, 2009, or in respect of January 2009, as the case may be, are not 
allowed costs of the Project if the Minister has notified the operator of 
the Project that the Minister is of the opinion that operations in respect 
of the Project have been or are substantially suspended or abandoned 
for a period of time and the post-payout Period of the Project ending 
December 31, 2008, or December of 2008, respectively, falls within 
that period.
Part 4 
Expiry and Coming into Force
Expiry
17   For the purpose of ensuring that this Regulation is reviewed for 
ongoing relevancy and necessity, with the option that it may be 
repassed in its present or an amended form following a review, this 
Regulation expires on November 30, 2018.
Coming into force
18   This Regulation comes into force on January 1, 2009.
Schedule
Item
Column 1
Specifically Included Costs
Column 2
Specifically Excluded Costs
1
Obtaining Board approvals required 
for the Project as follows:
-	preparing and presenting the 
application to the Board ("Board 
application") for approval of 
Project operations, or facilities, to 
be included in the Project
-	acquiring baseline environmental 
data required for the Board 
application 


-	preparing and supporting 
environmental impact assessments 
for those areas required by the 
Board
-	holding community or stakeholder 
meetings to obtain feedback and 
concerns regarding the Board 
application

2
Preparation of the Project lands for 
oil sands mining, including:
-	tree clearing and removing and 
stockpiling overburden on Project 
lands, and drilling geotechnical 
wells on Project lands for siting 
Project mines and facilities
Construction of facilities or assets on 
Project lands, including well pads, 
access roads and containment berms, 
including:


-	the quarrying on Project lands of 
construction materials required for 
these activities
Construction of those facilities or 
assets located off Project lands 
provided they are specifically listed 
within the description of the Project 
as being a Project facility or asset

3
In relation to oil sands mining 
Projects, the acquisition and 
operation of: 
-	shovels, dozers, trucks, mining 
and construction equipment and 
similar earth moving equipment
In relation to oil sands mining 
Projects, the construction, 
acquisition and operation on Project 
lands of:


-	haulage roads 
-	power lines and service facilities 
-	mine pits and site drainage 
-	mine utilities, including those 
required for power and steam 
generation

4
In relation to recovering in-situ oil 
sands products, the following 
activities on Project lands:
-	drilling, re-drilling, completing, 
recompleting, plugging and 
abandoning and deepening wells 
for the recovery of oil sands 
products


-	constructing well pads and surface 
facilities
-	pumping systems for the recovery 
of oil sands products
-	gathering and processing solution 
gas, unless the assets required are 
removed from the description of 
the Project


-	installing lift gas systems, casing 
gas and solution gas separation 
and conservation equipment
-	removing basic sediment and 
water, gas and solvents using 
crude bitumen separators
-	heating bitumen in tank heaters
-	treating raw water, de-oiling 
produced water and bitumen and 
recycling produced water


-	installing fuel gas compression 
and distribution systems and flare 
stacks
-	blending diluent and operating 
diluent blending facilities
-	constructing and operating steam 
generation facilities for in-situ 
operations


-	drilling or converting existing 
wells to observation wells, water 
source wells, water disposal wells 
or injection wells for water, steam 
or emulsion
-	enhancing primary production 
with water, polymer and solvent 
floods
-	constructing and operating water, 
effluent, bitumen, steam, gas and 
solvent pipelines
-	constructing and operating surface 
disposal pits

5

Drilling and completing gas wells, 
or converting bitumen or other 
wells to a crude oil or natural gas 
well
Any work on any portion of a crude 
oil or natural gas well
6
In relation to recovering oil sands 
from mining Projects, the 
construction, acquisition and 
operation of the following equipment 
or facilities on Project lands:
-	truck dump hoppers 
-	crushers and sizers 
-	surge bins, conveyors, feeders
-	separation cell feed sumps, 
conditioning drums, feed 
conveyors, rotary breakers, 
vibrating screens


-	reject conveyors, oversize rejects 
bin
-	pump boxes, hot and fresh water 
pipelines 
-	power transmission lines to ore 
preparation and conditioning 
facilities 
-	hot process water exchangers, 
hydro transport units, including 
pumps, surge cells and pipelines

7
In relation to primary extraction of 
oil sands products from oil sands in 
mining Projects, the construction, 
acquisition and operation of the 
following equipment or facilities on 
Project lands:


-	separation cells, secondary 
flotation systems, hydro cyclone 
banks and tertiary flotation 
systems
-	tailings pump stations and 
separation bottoms density control 
systems
-	feed pumps, pipelines and 
electrical systems

8
In relation to secondary extraction of 
oil sands products from oil sands in 
mining Projects, the construction, 
acquisition and operation of the 
following equipment or facilities on 
Project lands:
-	raw bitumen pipelines 
-	froth launderers, settlers, de-
aerators, froth recycle system and 
feed pumps 


-	centrifuge feed systems, flotation 
banks or scavenger banks and 
interstage storage tanks 
-	froth pumps, froth settler bottoms 
pumps, inclined plate separation 
units, cyclone banks, sumps and 
pumping systems 
-	diluent storage and handling 
systems and diluent pipelines


-	froth treatment filters and 
centrifuges
-	diluted bitumen tanks (tank farm) 
and vapour recovery units 
-	condenser and cooling water 
pumps 
-	diluent recovery units, if 
specifically included in the 
description of a Prior Project

9
In relation to tailings management in 
oil sands mining Projects, the 
construction, acquisition and 
operation of the following equipment 
or facilities on Project lands:
-	consolidated tailings plant, tailings 
lines, final tailings pump house, all 
pump trains and support 
equipment, including hydro 
cyclones for minerals separation


-	tailings ponds (including 
extraction tailings, upgrading 
process waters and mine pit 
drainage waters) 
-	dikes 
-	tailings pump house 
-	piezometers 
-	wildlife deterrent systems

10
In relation to transportation of oil 
sands products on Project lands, the 
construction, acquisition and 
operation of 
-	on-Project pipelines
Pipelines that do not begin and 
terminate on Project lands

-	intra-Project transport of oil sands 
and oil sands products
-	oil sands product pumping stations
-	trucking crude bitumen from 
Project wells to a central storage 
facility or to an on-Project pipeline 
terminal

11
Natural gas, diesel, gasoline or other 
fuels not produced from Project 
leases purchased for consumption in 
undertaking Project operations
Any fuel arising from Project 
substances or solution gas 
exempted from royalty under the 
Natural Gas Royalty Regulation, 
2009
12
Transporting Project operations 
personnel or materials to or from 
Project lands and on Project lands

13
In relation to storage of oil sands 
products on Project lands, the 
construction, acquisition and 
operation of:
-	tank farms
In relation to storage facilities of oil 
sands products on Project lands, the 
labour and materials for the 
construction, acquisition and 
operation of the following:
-	pumping facilities


-	dikes 
-	fire foam injection systems and 
inert gas blanket systems 
-	dewatering facilities 
-	vapour recovery units 
-	slop oil tanks

14
Processing of crude bitumen 
recovered from the Project leases in 
one or more non-Project processing 
plants to produce cleaned crude 
bitumen before the cleaned crude 
bitumen so produced is delivered to 
a royalty calculation point

15
Transporting crude bitumen 
recovered from the development area 
of the Project from the Project to a 
non-Project processing plant where 
cleaned crude bitumen is obtained 
from the crude bitumen before the 
cleaned crude bitumen is delivered at 
a royalty calculation point for the 
cleaned crude bitumen

16
Purchasing, transporting and 
handling of non-Project oil sands 
products, for processing or 
reprocessing in one or more 
processing plants that are part of the 
Project

17
Diluent used by a Project, provided 
the diluent does not form part of 
handling charges in determining unit 
price

18
In relation to utilities required for 
Projects, the construction, 
acquisition and operation of the 
following equipment and facilities 
on Project lands:
-	water treatment conditioning and 
filtering units
-	raw water supply system, river 
water pump houses, cooling water 
pump houses and recycled water 
pumps


-	main boilers and once through 
steam generators 
-	backup steam units used as 
standby steam production units
-	gas turbine generator or heat 
recovery steam generator system 
cogeneration units
-	primary electrical distribution 
system and power substations 


-	electrostatic precipitator units
-	utilities plant flue gas 
desulphurization units
-	hot water pipelines
-	natural gas pipelines
-	diesel pipelines
-	(gypsum) tailings pipelines
-	recycled water pipelines 
-	steam, water and compressed air 
distribution systems


In relation to utilities required for 
mining Projects, the construction, 
acquisition and operation of the 
following equipment and facilities 
on Project lands:
-	(gypsum) tailings pipelines


In relation to utilities required for in-
situ Projects, the construction, 
acquisition and operation of the 
following equipment and facilities 
on Project lands:
-	water treatment plants, settling 
ponds, filters, softeners and de-
aerators 
-	boiler water feed pumps 
-	water storage and distribution 
systems, fire-water systems and 
potable water systems 


-	pumping stations and pump houses 
-	gas-fired package boiler facilities 
-	compressor building 
-	steam distribution systems 
-	air systems 
-	wastewater systems 
-	waste heat recovery systems, 
cooling towers and ponds 
-	oil spill preparedness systems 
-	natural gas import pipeline and 
distribution pipelines

19
The construction, acquisition and 
operation of the following equipment 
and facilities used on Project lands:
-	ecology pits, land fill sites, waste 
management, wastewater 
treatment, sewage systems and 
hazardous waste storage buildings 
-	closed sewer system, separators 
for oil-contaminated water, slop 
oil tanks, settling tanks, sewage 
treatment system and sour water 
treatment system to treat waste 
water


-	fire hall, fire prevention and 
suppression systems 
-	emergency health and safety 
systems and buildings 
-	maintenance shops and fueling 
stations 
-	truck loading and offloading 
facilities 
-	air and heating utilities 
-	cogeneration plants
-	non-cogeneration electricity 
generation equipment, including 
backup and emergency generation 
equipment


-	power transmission lines and 
substations 
-	control rooms and buildings
-	instrumentation, monitoring and 
control systems 
-	camps, including food services 
facilities 
-	equipment trailer
-	road use charges paid to third 
parties to access Project lands 
-	buildings, equipment and service 
complexes, used for maintaining 
heavy equipment
-	roads and bridges included in the 
description of the Project, 
connecting Project facilities 
-	airstrips and associated facilities 
included in the Project description

20
Complying with Board or Alberta 
Environment requirements regarding 
Project air and water quality, soil 
and wildlife monitoring

21
Acquiring, modifying or installing, 
operating and maintaining 
equipment on Project lands to 
reduce, or capture and dispose of, 
greenhouse gas emissions

22
Abandonment, reclamation and 
decommissioning as a result of 
Project operations as follows:
-	deposits paid to the Crown to 
ensure the proper reclamation of 
Project lands
-	payments required by the Crown 
to secure reclamation of Project 
lands
-	performing reclamation work on 
the Project lands
-	abandoning and decommissioning 
surface and subsurface facilities
Cost of abandonment of non-
Project wells (PNG, etc.), 
regardless of whether such 
activities promote bitumen 
recovery and regardless of whether 
required by the Board
The cost of orphan well levies 
imposed by the Board
23
Communications infrastructure 
located on Project lands
Equipment used for remote control 
of Project facilities

24
Repair and maintenance of Project 
assets, including direct labour, 
benefits, materials and supplies, and 
work performed by other companies 
or individuals expended in 
performing such repair and 
maintenance

25
Safety equipment and safety 
manuals, and costs of preparing and 
implementing emergency and 
disaster recovery procedures for the 
Project

26
Insurance premiums under a contract 
of insurance, as defined in the 
Insurance Act, providing for 
property insurance in relation to 
profits, earnings, pecuniary interests 
and indirect losses of the lessees or 
operator of the Project

27
Acquiring surface lands included in 
Project lands
Annual rental required as part of 
Crown oil sands agreements within 
Project lands
Rent or lease payments for use of 
surface areas included in Project 
lands
Purchasing oil sands agreements 
from prior lessees
Bonus bids paid to the Crown for 
an oil sands agreement
Escalating rental payments made 
under the Oil Sands Tenure 
Regulation


Work performed on or in respect of 
the mineral rights in the 
development area of the Project or to 
create wells, facilities, roads, 
pipelines or other assets or 
infrastructure that is part of the 
Project in order to earn the interest 
or estate (i.e., farm-ins)

28
Municipal taxes and improvement 
fees of the type common to all 
individuals or industries

29
Compensation paid to registered 
individual trappers whose trap lines 
are impacted directly by Project 
operations

30
Purchasing a licence or the right to 
use intellectual property that is used 
directly for the recovery, production, 
or processing activities within 
Project operations

31
Any training facility or area 
exclusively dedicated toward 
providing training services to one or 
more approved Projects
Any warehouse exclusively 
dedicated toward providing 
inventory services to one or more 
approved Projects
Any training facility or area not 
exclusively dedicated toward 
providing training services to one 
or more approved Projects
Any warehouse not exclusively 
dedicated toward providing 
inventory services to one or more 
approved Projects
32
Exploration and delineation drilling, 
geophysical surveys on Project lands
Evaluating data acquired with 
respect to Project lands
Costs of exploration or delineation 
drilling, geophysical surveys 
outside Project lands or evaluating 
the data acquired
33
Planning, designing and engineering 
Project facilities

34
Penalties or other compensation paid 
to an arm's length party, not 
including any government, that are 
required to be paid under a written 
contractual obligation when the 
operator is unable to complete the 
terms of a contract
Penalties for late or deficient 
payment on any borrowing charge
35
Legal services in relation to a 
claimed breach of private law 
matters arising as a result of 
undertaking Project operations
Legal services required in relation 
to a claimed breach of applicable 
laws, rules or regulations of any 
government or government agency
Legal services required in relation 
to the shutting in of natural gas in 
oil sands areas, where the Crown is 
one of the parties
36
Recruitment advertising solely to 
attract potential employees to 
undertake Project operations
Travel and accommodation costs of 
the potential candidate attending an 
interview for a position to perform 
Project operations


The travel and accommodation costs 
of non-Project staff that attend 
recruitment fairs or specific 
recruitment initiatives in search 
solely of employees to undertake 
Project operations

37
Employee gifts, rewards and similar 
products arising from Project 
specific recognition and awards 
programs
Gifts, rewards and similar products 
or promotional items for non-
Project employees
Employee gifts, rewards and 
products arising from corporate 
initiatives or corporate recognition 
and reward programs
Promotional items not associated 
with a recognition and reward 
program
38
Bonuses given to Project employees 
based on those employees or the 
Project achieving or exceeding 
specific, pre-defined performance 
criteria for the individual or the 
Project, as the case may be
Signing bonus or retention bonus 
payments
Bonuses given based on achieving 
or exceeding non-Project based 
performance criteria
39
Hosting and entertainment costs 
limited to employees conducting 
Project operations and their 
immediate family, to the extent 
allowed as a deduction in computing 
income under the Income Tax Act 
(Canada)
Any hosting and entertainment 
costs which are not exclusive to 
Project operations, Project 
employees and their immediate 
family
40
Information technology hardware on 
Project lands and dedicated to 
Project operations
Project specific software licenses for 
personnel conducting Project 
operations

41
Supplies and labour for 
administration in field offices 
located on Project lands
Parking areas and security gates on 
Project lands
Administration buildings for general 
administration, office support and 
engineering on Project lands

42
Subscriptions to periodicals and 
journals where any individual 
subscription is $500.00 or less per 
year

43

Sponsorship, donations or gifts to 
cultural, charitable, sporting or 
community initiatives
Matching employee contributions 
to any of the above
Purchase of naming rights for 
buildings or other facilities
44

Funding provided for scholarships
45
Business and economic feasibility 
studies exclusively prepared to 
address problems of immediate 
applicability for the recovery, 
production or processing activities 
within Project operation
Contracts that hedge price risk 
specifically in relation to allowed 
costs of a Project or currency 
required to pay such costs
Any activity related to debt or 
equity financing
Foregone opportunity costs 
resulting from the non-arms length 
supply of goods and services to 
Project operations even though 
potentially more profitable third 
party transactions are available 
with respect to those goods and 
services
Any business or economic 
feasibility studies not included in 
Column 1
46

Production of promotional or 
informational material for investors 
or potential investors
Arranging and hosting tours of the 
Project
47
Consultation in respect of the 
proposed or current Project 
operations, limited to:
-	notifying stakeholders 
-	meeting facilities 
-	conducting meetings of 
stakeholders, including hosting
Consultation initiatives or studies 
concerning regional matters
Any amount paid or the costs of 
items given to stakeholders not 
arising from:
-	terms of a commercial 
arrangement
-	participation in regulatory 
proceedings or consultation in 
respect of the proposed or current 
Project operations as limited to 
Column 1
-	trapper compensation under 
Column 1


The following costs of consultation 
or of membership or participation 
in associations:


-	membership and participation in, 
or contributions to, business or 
industry associations or 
organizations, including but not 
limited to: Canadian Association 
Petroleum Producers (CAPP), 
Small Explorers and Producers 
Association of Canada (SEPAC), 
The Oil Sands Developers 
Group, Canadian Oil Sands 
Network for Research and 
Development (CONRAD), 
Petroleum Technology Alliance 
of Canada (PTAC), Alberta 
Chamber of Resources (ACR), 
the In-Situ Oil Sands Alliance or 
the Conference Board of Canada


-	membership and participation in, 
or contributions to, local or 
community organizations, 
regional organizations or interest 
groups, including but not limited 
to: the Cumulative Effects 
Management Association 
(CEMA), the Lakeland Industry 
and Community Association 
(LICA) and the Athabasca Tribal 
Council (ATC) 
48

Any loss arising as a result of a 
disposition of accounts receivable
Uncollected portions of any 
account receivable
49

Any amount deducted in the 
determination of unit price
50

Interest or any other borrowing or 
financing charges, including the 
financing component of capital 
leases
Charges for late payment or 
payment shortfalls
Any fines, penalties or payments 
made for non-compliance with any 
legally enforceable obligation 
imposed by any government
51
External audits required for the 
purposes of reporting called for by 
the Oil Sands Royalty Regulation, 
2009, in relation to the Project
Audits other than those required 
under the Oil Sands Royalty 
Regulation, 2009
52

Amounts assessed by the Board as 
part of industry's share of the 
Board's funding (Board levies)
53

Depreciation, except as specifically 
permitted in this Regulation
54

Dispute resolution processes, 
including a referral under section 
35 of the Oil Sands Royalty 
Regulation, 1997 or under section 
48 of the Oil Sands Royalty 
Regulation, 2009, of arbitration or 
of litigation, of any dispute with the 
Crown in connection with any 
matter relating to royalty, royalty 
compensation, interest or any 
penalty payable or paid to the 
Crown in relation to the Project
55
Amounts paid as Overriding Royalty 
as specified in Schedule 3, section 
101(n) of the Metis Settlements Act
Overriding royalty interests, carried 
interests, net profit interests or any 
similar interest
56
Research personnel and their 
consumed supplies toward the 
development of technology to solve 
a problem of immediate applicability 
for the recovery, production or 
processing activities within Project 
operations
Any research facility, laboratory or 
area exclusively dedicated toward 
the development of technology to 
solve problems of immediate 
applicability for the recovery, 
production or processing activities 
within Project operations
Research that provides the 
foundation for further research, or 
research conducted without any 
defined practical end pointing to 
practical applications
Any research facility, laboratory or 
area not exclusively dedicated 
toward the development of 
technology to solve problems of 
immediate applicability for the 
recovery, production, or processing 
activities within Project operations
Management fees or membership 
fees in research organizations
Research grants, research chairs 
and research fellowships to 
educational and research 
institutions
57
Salaries, wages, benefits, training, 
travel and accommodations for 
employees solely dedicated to 
carrying out Project operations
Salaries, wages, benefits, training, 
travel and accommodations for 
employees or personnel performing 
information technology, 
administration or office support 
work and solely dedicated to Project 
operations
Salaries, wages, benefits, training, 
travel and accommodations, for 
employees to the extent those 
employees carry out Project 
operations in the following 
circumstances:
-	legal counsel for matters integral 
to furthering Project operations
-	providing production accounting 
and royalty accounting for oil 
sands products
Salaries, wages, benefits, bonuses, 
stock options, training, travel and 
accommodations, relocation and 
severance (including associated 
relocation and training expenses in 
respect of that severance) for 
executive or management 
employees not solely dedicated to 
Project operations
Salaries, wages, benefits, training, 
travel and accommodations for 
employees or personnel performing 
information technology, 
administration, or office support 
work and not solely dedicated to 
Project operations
Relocation and severance 
(including associated relocation 
and training expenses in respect of 
that severance) for employees not 
solely dedicated to Project 
operations

-	purchasing assets, materials or 
supplies delivered for use in, or 
disposing from, Project operations 
-	conducting recruitment, 
classification, employee relations 
activities for employees carrying 
out Project operations 
-	carrying out engineering activities 
for Project operations 
-	carrying out marketing activities 
for oil sands products
Relocation and severance (including 
associated relocation and training 
expenses in respect of that 
severance) for employees solely 
dedicated to Project operations

58
Office assets and equipment (and 
their maintenance) exclusively used 
for the Project regardless of location.
The following items not 
exclusively used for the Project, 
regardless of whether a portion of 
the labour cost of the user may be 
an allowed cost:
-	office assets and equipment (and 
their maintenance) not located on 
Project lands
-	telecommunications and 
information technology support, 
where the items supported are 
not located on Project lands 


-	all line charges associated with 
telephones or other 
telecommunications equipment, 
not used for remote control of 
facilities or operations, where 
those telephones or other 
telecommunications equipment 
are not located on Project lands
59
Third party office space leases, 
including operating costs associated 
therewith, for office space located 
off Project lands, exclusively 
accommodating Project personnel 
carrying out Project operations 
Office space leases, including 
operating costs associated 
therewith, for office space located 
off Project lands which 
accommodates Project and non-
Project personnel
60

Allowed costs of another project or 
another Project


Alberta Regulation 232/2008
Mines and Minerals Act
BITUMEN VALUATION METHODOLOGY (MINISTERIAL) REGULATION
Filed: December 11, 2008
For information only:   Made by the Minister of Energy (M.O. 83/2008) on December 
10, 2008 pursuant to section 36(5.1) of the Mines and Minerals Act. 
Table of Contents
	1	Interpretation
	2	Hardisty Bitumen Price
	3	BVM Blend volume
	4	BVM Dilbit Value
	5	Transportation Allowance
	6	Expiry


	7	Coming into force
Interpretation
1(1)  In this Regulation,
	(a)	"dilbit" means a blend of heavy crude oil or cleaned crude 
bitumen mixed with diluent in order to meet pipeline 
viscosity and density specifications, where the density of the 
diluent included in the blend is less than 800 kg/m3;
	(b)	"dilbit fraction", in respect of a month, means the ratio of the 
volume of dilbit received during the month at the Hardisty 
WCS blending facility over the aggregate of all volumes of 
dilbit and synbit received during the month at the facility;
	(c)	"diluent" has the meaning given to it in the Oil Sands Royalty 
Regulation, 2009 but
	(i)	in relation to dilbit, the diluent will usually be 
condensate, and
	(ii)	in relation to synbit, the diluent will usually be synthetic 
crude oil;
	(d)	"Floor Price", in respect of a month, means the greater of
	(i)	$10 per m3, and
	(ii)	the simple average of the weekly Mexico Maya Spot 
Prices FOB for the month, expressed in Canadian 
dollars per m3, minus $250 per m3;
	(e)	"four-month rolling average dilbit fraction", in respect of a 
month, means the simple average of the dilbit fractions for 
the month and the 3 immediately preceding months;
	(f)	"four-month rolling average synbit premium", in respect of a 
month, means the simple average of the synbit premiums for 
the month and the 3 immediately preceding months;
	(g)	"Hardisty WCS blending facility" means the terminal and 
related facilities located at Hardisty, Alberta and managed by 
Husky Energy Inc. at which WCS is produced;
	(h)	"NQ", in respect of a Project for a month or Period, means
	(i)	in the case of blended bitumen described in section 
32(6)(a)(i) of the Oil Sands Royalty Regulation, 2009, 
the volume of cleaned crude bitumen contained in the 
volume of blended bitumen determined by deducting 
from the production quantity of the Project for the 
month or Period, respectively, of such blended bitumen, 
the third party disposition quantity of the Project for the 
month or Period, respectively, of such blended bitumen, 
or
	(ii)	in the case of cleaned crude bitumen described in 
section 32(b)(a)(ii) of the Oil Sands Royalty Regulation, 
2009, the volume of the cleaned crude bitumen 
determined by deducting from the production quantity 
of the Project for the month or Period, respectively, of 
such cleaned crude bitumen, the third party disposition 
quantity of the Project for the month or Period, 
respectively, of such cleaned crude bitumen;
	(i)	"Project CCB", in respect of a Project for a month, means 
cleaned crude bitumen obtained pursuant to the Project and 
delivered at a royalty calculation point for the cleaned crude 
bitumen during the month, whether as part of blended 
bitumen or otherwise;
	(j)	"synbit" means a blend of heavy crude oil or cleaned crude 
bitumen mixed with diluent in order to meet pipeline 
viscosity and density specifications, where the density of the 
diluent included in the blend is 800 kg/m3 or more;
	(k)	"synbit premium", in respect of a month, means the 
equalization premium paid for the month for crude bitumen 
based synbit over crude bitumen based dilbit received during 
the month at the Hardisty WCS blending facility;
	(l)	"WCS" means the blended crude oil called "Western 
Canadian Select" comprised mostly of cleaned crude bitumen 
and diluent;
	(m)	"WCS index", in respect of a month, means the amount 
reported as the WCS index for the month pursuant to 
subsection (3) or the amount otherwise specified under 
subsection (4).
(2)  Sections 1, 2, 3, 6, 32, 48 and 50 of the Oil Sands Royalty 
Regulation, 2009 and Division 2 of Part 2 of the Oil Sands Allowed 
Costs (Ministerial) Regulation apply in respect of this Regulation 
unless otherwise specified in this Regulation or otherwise required by 
the context or by necessary implication.
(3)  Subject to subsection (4) and unless the Minister specifies 
otherwise in any particular case, 
	(a)	the density of Project CCB reported to the Minister by the 
operator of the Project shall be as measured by the operator 
of the Project in accordance with section 6 of the Oil Sands 
Royalty Regulation, 2009,
	(b)	the following amounts referred to in this Regulation shall be 
as reported for each month to the Minister by Canadian 
Natural Resources Limited as the representative for the WCS 
founders which include, in addition to Canadian Natural 
Resources Limited, Talisman Energy Inc., Petro-Canada and 
EnCana Corporation:
	(i)	the four-month rolling average dilbit fraction;
	(ii)	the four-month rolling average synbit premium;
	(iii)	the WCS density as defined in section 3(4),
	(c)	the WCS index for each month shall be as published by 
NetThruPut Inc.,
	(d)	the following shall be as determined for each month by the 
Equalization Steering Committee and as published on the 
website of the Canadian Association of Petroleum Producers:
	(i)	the Condensate Allowance Price;
	(ii)	the Condensate (CRW) Density,
		and
	(e)	the weekly Mexico Maya Spot Price FOB shall be as 
published by the Energy Information Administration of the 
U.S. Government.
(4)  If any item referred to in subsection (3) reported to the Minister or 
published ceases to be so reported or published, or if the Minister is of 
the opinion that any such item has ceased to be appropriate in relation 
to how it is used in this Regulation, the Minister may specify an 
alternative to the item, and the alternative shall be used in lieu of that 
item for the purposes of this Regulation.
(5)  The simple average of the weekly Mexico Maya Spot Prices FOB 
for a month referred to in subsection (3)(e), the synbit premium for a 
month and the BVM Dilbit Value for a month referred to in section 
4(1) shall be converted from U.S. dollars per barrel to Canadian dollars 
per m3, using
	(a)	a conversion factor of 6.29234 barrels per m3, and
	(b)	the simple average of the daily actual USD/CAD (noon) 
exchange rates for the month published by the Bank of 
Canada, rounded to 5 decimal places.
Hardisty Bitumen Price
2   The Hardisty Bitumen Price for a Project for a month for the 
purposes of section 32(6)(a) of the Oil Sands Royalty Regulation, 2009 
is the greater of
	(a)	the Floor Price, and
	(b)	the price determined for the month in accordance with the 
following formula:
HBP = [QBVM Blend x BVM Dilbit Value] - [QBVM Diluent 
x CRWP]
where
HBP	is the Hardisty Bitumen Price for the 
Project for the month;
QBVM Blend	is the BVM Blend volume for the Project 
for the month determined under section 
3;
BVM Dilbit Value	is the BVM Dilbit Value for the month 
determined under section 4;
QBVM Diluent	is the BVM Diluent volume for the 
Project for the month determined under 
section 3(2);
CRWP	is the amount determined as the 
Condensate Allowance Price for the 
month.
BVM Blend volume
3(1)  The BVM Blend volume for a Project for a month for the 
purposes of section 2 is the volume of blended bitumen produced by 
blending one cubic metre of Project CCB obtained during the month 
with the BVM Diluent volume for the Project for the month 
determined in accordance with subsection (2).
(2)  The BVM Diluent volume for the purposes of subsection (1) is the 
volume of condensate having a density equal to the Condensate 
(CRW) Density for the month that must be blended with one cubic 
metre of Project CCB in order for the density of the resulting blended 
bitumen to be equal to the BVM Dilbit density determined for the 
month in accordance with subsection (4).
(3)  The BVM Blend volume referred to in subsection (1) shall be 
calculated in accordance with chapter 12.3 of the Manual of Petroleum 
Measurement Standards published by the American Petroleum 
Institute.
(4)  The BVM Dilbit density for a month is the amount determined in 
accordance with the following formula:
BVMDD = WCS density - DDA
where
BVMDD	is the BVM Dilbit density for the month;
WCS density	is the monthly volume weighted average 
density of all WCS delivered to pipelines 
during the month from the Hardisty WCS 
blending facility;
DDA	is the dilbit density adjustment determined for 
the month in accordance with subsection (5).
(5)  The dilbit density adjustment for a month is the amount 
determined in accordance with the following formula:
DDA = 12 kg/m3 x [1 - FMDF]
where
DDA 	is the dilbit density adjustment for the month;
FMDF	is the four-month rolling average dilbit fraction 
for the month.
BVM Dilbit Value
4(1)  The BVM Dilbit Value for a month for the purposes of section 2 
is the difference between
	(a)	the WCS Settlement Price for the month determined under 
subsection (2), and
	(b)	the BVM Dilbit Value adjustment for the month determined 
under subsection (3)
converted to Canadian dollars per m3.
(2)  The WCS Settlement Price for a month is the sum of 
	(a)	the simple average of the WTI prices for the trading days of 
the month where
	(i)	the WTI price for a trading day is the closing price for 
the day of the prompt month contract of Light Sweet 
Crude Oil (CL1) as traded in NYMEX, and
	(ii)	a trading day is a day during which a prompt month 
contract referred to in subclause (i) is traded in 
NYMEX,
		and
	(b)	the WCS index for the month.
(3)  The BVM Dilbit Value adjustment for a month is the product of 
	(a)	the four-month rolling average synbit premium for the 
month, and
	(b)	the difference between
	(i)	1, and
	(ii)	the four-month rolling average dilbit fraction for the 
month.
Transportation Allowance
5(1)  In this section,
	(a)	"aggregate transportation rate", in respect of a removal 
pipeline of a Project, means, for a month,
	(i)	the transportation rate for the month determined under 
subsection (3), (5) or (6), as the case may be,  for the 
removal pipeline, where the removal pipeline is a single 
pipeline, or
	(ii)	the sum of the transportation rates for the month 
determined under subsection (3), (5) or (6), as the case 
may be, for each pipeline that comprises a part of the 
removal pipeline, where the removal pipeline is 
comprised of a series of 2 or more connected pipelines;
	(b)	"diluent pipeline", in respect of a Project for a month, means 
a pipeline, if any, that is capable of transporting  diluent to a 
place on or near the Project lands during the month from 
another point on or near the route of the removal pipeline of 
the Project for the month, but does not include such a 
pipeline for a month during which a pipeline described in 
subsection (5) 
	(i)	is the removal pipeline of the Project for the month, or 
	(ii)	is a part of the removal pipeline of the Project for the 
month and is capable of taking delivery of crude 
bitumen at a place on or near the Project lands;
	(c)	"end", in respect of a pipeline that is the whole or a part of a 
removal pipeline of a Project, means the point on the pipeline 
closest to Hardisty, Alberta or Edmonton, Alberta, as the case 
may be;
	(d)	"removal pipeline", in respect of a Project, means each 
pipeline, or each series of 2 or more connected pipelines, that 
is capable of transporting cleaned crude bitumen, or oil sands 
products obtained from cleaned crude bitumen, from a place 
on or near the Project lands to a point at or near Hardisty, 
Alberta or Edmonton, Alberta, regardless of
	(i)	whether the cleaned crude bitumen to be transported 
would be transported as part of blended bitumen or 
otherwise, and 
	(ii)	whether the oil sands products so obtained and to be 
transported are obtained at one or more processing 
plants located on or near the route of the pipeline or 
series of pipelines, as the case may be, between the 
royalty calculation point of the Project for cleaned crude 
bitumen and the point at or near Hardisty, Alberta or 
Edmonton, Alberta;
	(e)	"removal pipeline of the Project for the month" means the 
removal pipeline of the Project that has for a month the 
lowest aggregate transportation rate relative to any other 
removal pipeline of the Project;
	(f)	"tariff", in respect of a pipeline that is a removal pipeline or 
diluent pipeline in respect of a Project, means
	(i)	the tariff setting out the charges for transportation 
service on the pipeline, where the transportation service 
would, if obtained by the lessee or operator of the 
Project, be obtained pursuant to an arm's length 
transaction, or
	(ii)	the amount determined under Division 2 of Part 2 of the 
Oil Sands Allowed Costs (Ministerial) Regulation as the 
cost of transportation service on the pipeline, in any 
other case.
(2)  The transportation allowance for a Project for a month for cleaned 
crude bitumen referred to in section 32(6)(a)(i) and (ii) of the Oil 
Sands Royalty Regulation, 2009 is the sum of
	(a)	 the aggregate transportation rate for the month for the 
removal pipeline of the Project for the month, and
	(b)	the transportation rate determined under subsection (8) or (9) 
for the month for the diluent pipeline, if any, for the Project 
for the month.
(3)  	Subject to subsection (4), the transportation rate for a month of a 
pipeline that comprises the whole or a part of a removal pipeline of a 
Project and that transports dilbit or synbit is the amount determined in 
accordance with the following formula:
BRC + (.754 x GRC) 
            CCBQ
where
	BRC 	is the amount that would be charged under the tariff for 
the pipeline to transport during the month the volume of 
dilbit determined by multiplying the BVM Blend 
volume for the Project for the month determined under 
section 3 by the NQ for the Project for the month;
	GRC	is the amount that would be charged under the tariff for 
the pipeline to transport during the month the volume of 
dilbit equal to the volume of diluent that would be 
contained in the volume of dilbit referred to in the 
definition of BRC;
	CCBQ	is the NQ for the Project for the month.
(4)  In determining the transportation rate for a month for a pipeline 
under subsection (3),
	(a)	the transportation service capacity contracted for on the 
pipeline to transport the volumes of dilbit referred to in the 
definitions of BRC and GRC in subsection (3) shall be 
considered to be equal to the aggregate of those volumes, and
	(b)	GRC for the month is zero if the pipeline referred to in 
subsection (3) is the whole or a part of the removal pipeline 
of the Project for the month and there is a diluent pipeline for 
the Project for the month that is capable of transporting 
diluent during that month from a place at or near the end of 
the pipeline referred to in subsection (3) to a place on or near 
the Project lands.
(5)  The transportation rate for a month of a pipeline that comprises the 
whole or a part of a removal pipeline of a Project and that transports 
cleaned crude bitumen rather than dilbit or synbit is the amount 
determined by dividing 
	(a)	the amount that would be charged under the tariff for the 
pipeline to transport during the month the NQ for the Project 
for the month,
by
	(b)	the NQ for the Project for the month.
(6)  Subject to subsection (7), the transportation rate for a month of a 
pipeline that comprises the whole or a part of a removal pipeline of a 
Project and that transports synthetic crude oil is the amount determined 
in accordance with the following formula:
TRC + (.92 x DRC) 
            CCBQ
where
	TRC  	is the amount that would be charged under the tariff for 
the pipeline to transport a volume of synthetic crude oil 
having a density of not less than 800 kg/m3 and not 
more than 875 kg/m3 and equal to the volume of dilbit 
determined by multiplying the BVM Blend volume for 
the Project for the month determined under section 3 by 
the NQ for the Project for the month;
	DRC 	is the amount that would be charged under the tariff for 
the pipeline to transport a volume of synthetic crude oil 
meeting the density requirements specified in the 
definition of TRC and equal to the volume of diluent 
that would be contained in the volume of dilbit referred 
to in the definition of TRC;
	CCBQ	is the NQ for the Project for the month.
(7)  In determining the transportation rate for a month for a pipeline 
under subsection (6),
	(a)	the transportation service capacity contracted for on the 
pipeline to transport the volumes of synthetic crude oil 
referred to in the definitions of TRC and DRC in subsection 
(6) shall be considered to be equal to the aggregate of those 
volumes, 
	(b)	the components of the tariff for the pipeline that vary 
according to the density of the synthetic crude oil transported 
on the pipeline shall be multiplied by a factor of 1.22, and
	(c)	DRC for the month is zero if the pipeline referred to in 
subsection (6) is the whole or a part of the removal pipeline 
of the Project for the month and there is a diluent pipeline for 
the Project for the month that is capable of transporting 
diluent during that month from a place at or near the end of 
the pipeline referred to in subsection (6) to a place on or near 
the Project lands.
(8)  Subject to subsection (9), the transportation rate for a month of the 
diluent pipeline for a Project for the month is the amount determined 
by dividing
	(a)	the amount, if any, that would be charged under the tariff for 
the diluent pipeline to transport to the Project during the 
month the volume of diluent determined by multiplying the 
NQ of the Project for the month by the BVM Diluent volume 
for the Project for the month determined under section 3(2),
by
	(b)	the NQ for the Project for the month.
(9)  The transportation rate for a month of the diluent pipeline for the 
Project for the month is zero if the cost of transporting the volume of 
diluent referred to in subsection (8) on the pipeline during the month is 
included in the transportation rate determined under subsection (3) for 
a pipeline that is the whole or a part of the removal pipeline of the 
Project for the month.
Expiry
6   For the purpose of ensuring that this Regulation is reviewed for 
ongoing relevancy and necessity, with the option that it may be 
repassed in its present or an amended form following a review, this 
Regulation expires on November 30, 2018.
Coming into force
7   This Regulation comes into force on January 1, 2009.