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Alberta Regulation 15/2012
Hospitals Act
CROWN'S RIGHT OF RECOVERY AMENDMENT REGULATION
Filed: February 2, 2012
For information only:   Made by the Lieutenant Governor in Council (O.C. 032/2012) 
on February 2, 2012 pursuant to section 96 of the Hospitals Act. 
1   The Crown's Right of Recovery Regulation (AR 163/96) is 
amended by this Regulation.

2   Section 6 is amended by striking out "March 31, 2012" and 
substituting "March 31, 2013".


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Alberta Regulation 16/2012
Hospitals Act
CROWN'S RIGHT OF RECOVERY (MINISTERIAL) 
AMENDMENT REGULATION
Filed: February 3, 2012
For information only:   Made by the Minister of Health and Wellness (M.O. 04/2012) 
on January 16, 2012 pursuant to section 96(2) of the Hospitals Act. 
1   The Crown's Right of Recovery (Ministerial) Regulation 
(AR 160/96) is amended by this Regulation.

2   Section 10 is amended by striking out "April 30, 2012" and 
substituting "April 30, 2013".



Alberta Regulation 17/2012
Government Organization Act
RESTRICTED ACTIVITY AUTHORIZATION AMENDMENT REGULATION
Filed: February 3, 2012
For information only:   Made by the Minister of Health and Wellness (M.O. 05/2012) 
on January 16, 2012 pursuant to section 3 of Schedule 7.1 of the Government 
Organization Act. 
1   The Restricted Activity Authorization Regulation 
(AR 5/2004) is amended by this Regulation.

2   Section 3 is amended by striking out "March 31, 2012" and 
substituting "March 31, 2014".


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Alberta Regulation 18/2012
Oil and Gas Conservation Act
OIL AND GAS CONSERVATION AMENDMENT REGULATION
Filed: February 7, 2012
For information only:   Made by the Energy Resources Conservation Board on 
January 30, 2012 pursuant to sections 10(1)(aa) and 73(1) of the Oil and Gas 
Conservation Act. 
1   The Oil and Gas Conservation Regulations (AR 151/71) 
are amended by this Regulation.

2   Section 8.090(1)(a) and (b) are repealed and the following 
is substituted:
	(a)	"fire" means any open or enclosed flame or other sources of 
ignition except sources of ignition associated with the 
installation and operation of electrical equipment;
	(b)	"flame type equipment" means any fired equipment using an 
open or enclosed flame and includes, without limitation, a 
space heater, torch, heated process vessel, boiler, open flame 
welder and thermo electric generator;

3   Section 16.530(1) is repealed and the following is 
substituted:
16.530(1)  For the 2012-2013 fiscal year of the Board, the orphan 
fund levy payable by a licensee or approval holder is calculated in 
accordance with the following formula:
Levy = A x $12 000 000
             B
where
	A	is the licensee's or approval holder's deemed liability on 
February 4, 2012 for all of its facilities, wells and 
unreclaimed sites included within the LLR and OWL 
programs, as calculated in accordance with Directive 006, 
Directive 011 and Directive 075, and
	B	is the sum of the industry's liability on February 4, 2012 for 
all facilities, wells and unreclaimed sites included within the 
LLR and OWL programs, as calculated in accordance with 
Directive 006, Directive 011 and Directive 075.


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Alberta Regulation 19/2012
Mines and Minerals Act
OIL SANDS ALLOWED COSTS (MINISTERIAL) 
AMENDMENT REGULATION
Filed: February 9, 2012
For information only:   Made by the Minister of Energy (M.O. 2/2012) on January 30, 
2012 pursuant to section 36(5.1) of the Mines and Minerals Act. 
1   The Oil Sands Allowed Costs (Ministerial) Regulation 
(AR 231/2008) is amended by this Regulation.

2   Section 1 is amended
	(a)	in subsection (1)
	(i)	by repealing clause (c) and substituting the 
following:
	(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 or engineering system is
	(i)	an amount determined in accordance with the 
Minister's directions as depreciation in 
respect of the cost of the capital asset or 
engineering system determined in accordance 
with sections 12.6 and 12.7, and
	(ii)	a return on the undepreciated portion of the 
cost of the capital asset or engineering system 
determined in accordance with sections 12.4 
and 12.7;
	(ii)	by repealing clause (i);
	(iii)	in clauses (k) and (l) by striking out "the 
Schedule" and substituting "Schedule 1";
	(iv)	by adding the following after clause (l):
	(m)	"syngas" means a mixture of gases mainly 
comprising carbon monoxide and hydrogen 
produced by the gasification of asphaltenes, 
petroleum coke or coal;
	(n)	"upgrader produced fuel gas" means a mixture of 
primarily hydrocarbon gases, natural gas liquids 
and olefins produced by upgrading operations.
	(b)	in subsection (2) 
	(i)	by adding "8.1, 10(2.1), (2.2) and (4), 11.1(5)" after 
"5, 6,";
	(ii)	by adding "39," after "18, 19,".

3   Section 3 is amended
	(a)	by adding the following after subsection (1):
(1.1)  Subject to the other provisions of this Regulation, the 
amount of the capital cost of a core or supporting asset that is 
included in the description of a Project is an allowed cost of the 
Project.
	(b)	by repealing subsection (2) and substituting the 
following:
(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, that core or supporting asset does not form part of the 
Project, and no cost associated with that core or supporting asset 
may be included as an allowed cost, except in accordance with 
section 12.2(1)(b).

4   Section 7(1)(c) is amended by striking out "by virtue of 
allocable costs" and substituting "by virtue of IETP costs".

5   Section 8 is repealed and the following is substituted:
Allocation
8   Subject to sections 8.1 to 8.4, where a cost incurred by or on 
behalf of a lessee of a Project may be an allowed cost only in part, 
the cost must be allocated by the operator such that a portion of the 
cost is treated as an allowed cost and the remaining portion of the 
cost is not treated as an allowed cost.
Allocation for a Project that is part of an integrated project
8.1(1)  The methodology for allocating, in respect of a Project that 
forms part of an integrated project, a portion of the cost of a capital 
asset or engineering system that is an allowed cost, the portion that is 
allocable to the integrated upgrader that is not an allowed cost and 
the portion that is allocable to integrated shared operations as an 
allowed cost is that set out in Schedules 2 and 3 to this Regulation.
(2)  Where a methodology for allocating a cost in respect of an 
integrated project is set out in Schedule 2, an operator must use that 
methodology for the purpose of allocating that cost.
(3)  The methodology for allocating, in respect of any costs of an 
integrated project that have been allocated to integrated shared 
operations, the portion of those costs that are allowed costs of the 
Project and the portion of those costs that are allocated to the 
integrated upgrader is that set out in Schedule 3 to this Regulation.
(4)  Where a methodology for allocating a cost in respect of 
integrated shared operations is set out in Schedule 3, an operator 
must use that methodology for the purpose of allocating that cost.
(5)  For the purpose of applying the methodology in Schedule 3 to 
determine the percentage of the value of energy used by a Project 
that forms part of an integrated project, the Minister may, by order or 
otherwise, specify the price per unit of each energy source used by 
the Project in relation to one or more of the following:
	(a)	steam;
	(b)	electricity;
	(c)	manufactured fuel gases, including syngas and upgrader 
produced fuel gas;
	(d)	petroleum coke;
	(e)	carbon monoxide gas derived from the combustion of 
petroleum coke; 
	(f)	natural gas.
(6)  In respect of a cost that must be allocated pursuant to subsection 
(1), if an operator is of the opinion that a cost cannot be allocated in 
accordance with Schedule 2, or a cost that is to be allocated is not 
listed in Schedule 2, the operator may apply to the Minister, in the 
manner specified by the Minister, stating its reasoning as to why 
Schedule 2 cannot be applied to allocate that cost.
(7)  Subject to subsection (8), in an application made under 
subsection (6), an operator must provide its suggestion as to how the 
cost should be allocated among the Project, the integrated upgrader 
and the integrated shared operations.
(8)  The allocation suggested by the operator in an application made 
under subsection (6) must allocate a portion of the cost to each of the 
Project, the integrated upgrader and the integrated shared operations 
and must apply one or more of the following methodologies:
	(a)	head count ratios for costs related to facilities or functions 
that serve personnel, including but not limited to cafeterias, 
catering and medical facilities;
	(b)	geographic location for costs relating to facilities, including 
but not limited to shared parking lots and roads located on 
Project lands;
	(c)	the capital cost ratio for the Project, as specified by the 
Minister by order, for costs including, but not limited to 
security, fences, site maintenance and procurement staff.
(9)  Where the Minister disagrees with the methodology suggested 
for an allocation pursuant to subsection (8), or the Minister disagrees 
with the manner in which the suggested methodology is applied, the 
Minister may by order specify an appropriate methodology to be 
used for the purpose of the allocation and the manner in which the 
methodology is to be applied.
(10)  Where the Minister accepts an operator's suggestion for 
allocation under subsection (7), or the Minister under subsection (9) 
specifies the methodologies to be used for the purpose of the 
allocation and the manner in which the methodologies are to be 
applied, the cost must be allocated to the Project, the integrated 
upgrader and the integrated shared operations accordingly, and any 
costs allocated to the integrated shared operations must be further 
allocated to the Project pursuant to Schedule 3. 
Allocation for a Project that is not part of an integrated project
8.2(1)  The methodology for allocating, with respect to a Project that 
does not form part of an integrated project, a portion of the cost of a 
capital asset or engineering system that is an allowed cost, the 
portion that is not allocable to the Project, and therefore is not an 
allowed cost, is that set out in Schedule 2.
(2)  Where a methodology for allocating a cost in respect of a Project 
that does not form part of an integrated project is set out in Schedule 
2, an operator must use that methodology for the purpose of 
allocating that cost.
(3)  In respect of a cost that must be allocated pursuant to subsection 
(2), if an operator of a Project that does not form part of an 
integrated project is of the opinion that a cost cannot be allocated in 
accordance with Schedule 2, or a cost that is to be allocated is not 
listed in Schedule 2, the operator may apply to the Minister, in the 
manner specified by the Minister, stating its reasoning as to why 
Schedule 2 cannot be applied to allocate that cost.
(4)  In an application made under subsection (3), an operator must 
provide its suggestion as to how the cost should be allocated between 
the Project and the portion not allocable to the Project.
(5)  The Minister may, by order, approve an operator's application 
under subsection (3) if the Minister is satisfied
	(a)	that
	(i)	the methodology set out in Schedule 2 cannot, on a 
sound engineering or economic basis, be applied in 
respect of the operator's Project, or
	(ii)	the methodology for allocating a portion of the cost that 
is an allowed cost is not listed in Schedule 2,
		and
	(b)	that approving the operator's suggestion as to how a cost 
should be allocated will not expose the Crown to the risk of 
overstated or unverifiable costs being allocated to the Project 
as allowed costs.
(6)  Where the Minister does not approve an operator's application 
under subsection (3), or the Minister is of the opinion that the 
information used by the operator in calculating the allocation in 
accordance with Schedule 2 does not justify the portion of the cost 
that is proposed to be allocated to the Project, the Minister may, by 
order, substitute the Minister's own calculation in respect of the 
allocation of a cost as an allowed cost.
Ministerial determination
8.3(1)  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, whether or not included 
in Schedule 2 or 3, 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.
(2)  If the Minister is of the opinion that an allocation disclosed 
under subsection (1) 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.
(3)  After the expiry of the period set out in the notice given under 
subsection (1) or (2), or both, the Minister may, by order, 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.
(4)  The Minister may refrain from making a determination under 
subsection (3) if 
	(a)	the Minister did not receive, in accordance with and within 
the time specified in a notice given under subsection (1), 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 (2), 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 (AR 223/2008) in relation to 
submission of the items, information or further justification 
required to be provided pursuant to a notice given under 
subsection (1) or (2), as the case may be, or
	(d)	the items received by the Minister pursuant to a notice given 
under subsection (1), or the additional information or further 
justification received pursuant to a notice, if any, given under 
subsection (2) are not, in the Minister's opinion, adequate for 
the Minister to make the determination.
(5)  If the Minister has made a determination under subsection (3), 
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 (AR 223/2008).
(6)  If the Minister refrains from making a determination under 
subsection (3), then no portion of the cost that was the subject of the 
notice given under subsection (1) or (2), as the case may be, is an 
allowed cost for the purposes of the Oil Sands Royalty Regulation, 
2009 (AR 223/2008).
(7)  The making of a determination by the Minister under subsection 
(3) in relation to a cost does not preclude the making of a further 
determination pursuant to this section in relation to the same cost.
Terms and conditions in orders
8.4(1)  An order made by the Minister pursuant to sections 8.1(5) or 
(9), 8.2(5) or (6) or 8.3(3) may contain any terms and conditions the 
Minister considers necessary and, in respect of an order that 
establishes an allocation, must contain the date on which the 
allocation is in effect.
(2)  The effective date of an order of the Minister referred to in 
subsection (1) may be earlier than the date of the order that contains 
it, but must not be earlier than January 1, 2011.

6   Section 9(1) is amended
	(a)	by striking out "section 8" and substituting "sections 8 
to 8.4";
	(b)	by striking out "or capital assets" wherever it occurs 
and substituting ", capital assets or engineering systems".

7   Section 11 is repealed.

8   Section 12 is amended
	(a)	in subsection (1)(b) by adding "or engineering system" 
after "capital asset";
	(b)	in subsection (2) 
	(i)	by striking out "sections 11 and 14" and 
substituting "sections 12.1 to 12.7 and 14";
	(ii)	in clause (b) by adding "or engineering system" 
after "capital asset";
	(c)	in subsection (3) by adding "or engineering system" 
after "capital asset";
	(d)	by repealing subsection (4) and substituting the 
following:
(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, 
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 required, provide an estimate of the value of the 
service for the purposes of subsections (2) and (3).

9   The following is added after section 12:
Cost of service determination definitions
12.1(1)  In this section and sections 12.2 to 13,
	(a)	"annual capital charge" in respect of a capital asset or 
engineering system, during a calendar year, means the sum of 
the depreciation charge for that capital asset or engineering 
system for the calendar year and the return on capital for that 
capital asset or engineering system for the calendar year;
	(b)	"annual operating charge" in respect of a capital asset or 
engineering system for all or a portion of a calendar year 
following the date it is first commissioned means the cost 
incurred during the calendar year to operate the capital asset 
or engineering system, provided that such costs would be 
allowed costs, had the capital asset or engineering system 
formed part of the Project receiving a service;   
	(c)	"capital unit charge", in respect of a capital asset or 
engineering system that, in the opinion of the Minister, has a 
readily identifiable measure of capacity, for a calendar year 
means, subject to section 12.5(2) and (3), the annual capital 
charge divided by the units of capacity of that capital asset or 
engineering system;
	(d)	"cumulative capital cost" in respect of a capital asset or 
engineering system is determined in accordance with section 
12.3;
	(e)	"depreciation charge" in respect of a capital asset or 
engineering system is the amount determined in accordance 
with sections 12.6 and 12.7;
	(f)	"End Capital" in respect of a capital asset or engineering 
system for a calendar year means, subject to section 12.6(b), 
the greater of 
	(i)	the difference between the Initial Capital of the capital 
asset or engineering system for the calendar year and 
the depreciation charge on the capital asset or 
engineering system for the calendar year, and
	(ii)	zero;
	(g)	"Initial Capital" in respect of a capital asset or engineering 
system for a calendar year means the End Capital of that 
capital asset or engineering system from the preceding 
calendar year, plus the cost to construct or acquire additions 
of a capital nature made to the capital asset or engineering 
system during the preceding calendar year, less the net book 
value of retirements made to the capital asset or engineering 
system during the preceding calendar year, where
	(i)	the Initial Capital of a capital asset or engineering 
system that was in service immediately prior to January 
1, 2011, or that provided service at any time prior to 
January 1, 2011, is the cumulative capital cost of the 
capital asset or engineering system determined under 
section 12.3(1)(a), and
	(ii)	the Initial Capital of a capital asset or engineering 
system put into service on or after January 1, 2011, is 
the cumulative capital cost of the capital asset or 
engineering system determined under section 
12.3(1)(b);
	(h)	"net book value" of a capital asset or engineering system, or 
part thereof, for the purposes of this Division is the 
undepreciated portion of the cost to the lessee, operator or 
other person for whom net book value is being determined, 
according to
	(i)	the records of the Department, or
	(ii)	if the Department has no records, the records of the 
lessee, operator or other person;
	(i)	"operating unit charge", in respect of a capital asset or 
engineering system that in the opinion of the Minister has a 
readily identifiable measure of capacity, for a calendar year 
means, subject to section 12.5(2) and (3), the annual 
operating charge divided by the actual measured throughput 
of that capital asset or engineering system during that 
calendar year;  
	(j)	"rate of return on capital" 
	(i)	as it relates to determining the cost of service where a 
capital asset or engineering system is used to provide a 
basic service, is equal to the return allowance rate for 
the calendar year, as calculated pursuant to section 2(2) 
and (3), but, for the purposes of this Part, as if section 
2(2) referred to "calendar year" instead of "Period", and
	(ii)	is equal to 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 engineering system, in 
the case of a capital asset or engineering system utilized 
to perform any other kind of service;   
	(k)	"retirement" means, in respect of all or a part of a capital 
asset or engineering system, the operator has, in the 
Minister's opinion, discontinued the use of the capital asset 
or engineering system by the operator;   
	(l)	"return on capital" means that amount determined in 
accordance with sections 12.4 and 12.7 for a capital asset or 
engineering system, for a calendar year;  
	(m)	"unit charge" means that amount determined in accordance 
with section 12.5 in respect of a capital asset or engineering 
system; 
	(n)	"units of capacity", in respect of a capital asset or 
engineering system having a readily identifiable measure of 
capacity for a calendar year, means, subject to section 12.5(2) 
and (3), the greater of 
	(i)	the actual measured throughput during the calendar 
year, and
	(ii)	75% of the expected capacity of that capital asset or 
engineering system under normal operating conditions 
for the calendar year as determined by the Minister, 
taking into account all retirements from the capital asset 
or engineering system.
(2)  For the purposes of this Regulation, costs incurred to construct a 
capital asset or engineering system do not include 
	(a)	interest or any other borrowing or financing charges that may 
have been charged during the construction of the capital asset 
or engineering system, or 
	(b)	the financing component of capital leases.
Cost of service determination for capital asset 
or engineering system
12.2(1)  For the purposes of determining cost of service
	(a)	when determining the allowed cost to a Project when a 
non-Project capital asset or engineering system is providing 
goods or services to the Project, or
	(b)	when determining the other net proceeds when using a 
capital asset or engineering system of the Project to provide 
goods and services for purposes other than the Project,
the cost of service must be determined in accordance with subsection 
(2). 
(2)  The cost of service for a capital asset or engineering system 
providing a service is
	(a)	where the capital asset or engineering system has, in the 
Minister's opinion, a readily identifiable measure of capacity, 
the unit charge of the capital asset or engineering system 
multiplied by the number of units produced for the Project, or
	(b)	where the capital asset or engineering system does not, in the 
Minister's opinion, have a readily identifiable measure of 
capacity, the sum of the annual capital charge and annual 
operating charge of the asset or engineering system.
(3)  The operator must, in the form specified by the Minister, advise 
the Minister
	(a)	within 30 days following the Minister's request, in respect of 
each capital asset and engineering system providing services 
to the Project prior to January 1, 2011, and
	(b)	within 90 days following the calendar year during which a 
capital asset or engineering system is first commissioned, if 
first commissioned on or after January 1, 2011, 
of the proposed cumulative capital cost and the Initial Capital, 
	(c)	as of January 1, 2011, in the case of a capital asset or 
engineering system referred to in clause (a), and 
	(d)	as of the first day of the calendar year in which the capital 
asset or engineering system is first commissioned, in the case 
of a capital asset or engineering system referred to in clause 
(b).
(4)  Within 60 days of receiving the completed form referred to in 
subsection (3), the Minister must notify the operator as to whether 
the Minister agrees or disagrees with the operator's determination of 
cumulative capital cost or Initial Capital, based on the information 
provided.
(5)  If the Minister is satisfied that
	(a)	the information provided under subsection (3) is accurate and 
complete and is verified by adequate supporting 
documentation, and
	(b)	the operator's determination of cumulative capital cost or 
Initial Capital is correct,
the Minister may, by order or otherwise, specify either or both of the 
cumulative capital cost or Initial Capital of a capital asset or 
engineering system.
(6)  If the Minister is satisfied that the information provided under 
subsection (3) or otherwise is not accurate and complete or is not 
verified by adequate supporting documentation, the Minister may, by 
notice, direct the operator to supply additional information or 
otherwise justify the operator's determination of either or both of the 
cumulative capital cost or Initial Capital of a capital asset or 
engineering system within the time specified in the notice.
(7)  After the earlier of
	(a)	the expiry of the period set out in the notice given under 
subsection (6), or
	(b)	the date on which the Minister receives the additional 
information or further verification required to be provided 
under subsection (6),
the Minister may determine either or both of the cumulative capital 
cost or Initial Capital of a capital asset or engineering system and 
must provide the determination to the operator.
(8)  The Minister may refrain from making a determination under 
subsection (7) if 
	(a)	the Minister did not receive, in accordance with and within 
the time specified in a notice given to the operator under 
subsection (6), the information 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 (6), the additional information or further 
verification 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 (AR 223/2008) in relation to 
submission of the additional information or further 
verification required to be provided pursuant to a notice 
given under subsection (6), or
	(d)	the additional information or further verification received 
pursuant to a notice, if any, given under subsection (6) is not, 
in the Minister's opinion, adequate for the Minister to make 
the determination.
(9)  If the Minister has made a decision under subsection (4) or a 
determination under subsection (7), the cumulative capital cost or 
Initial Capital of a capital asset or engineering system that is 
determined by the Minister is the amount for the purposes of this 
Regulation.
(10)  If the Minister, under subsection (8), refrains from making a 
determination under subsection (7), then no portion of the capital 
unit charge or annual capital charge of the capital asset or 
engineering system that was the subject of the notice given under 
subsection (6) is an allowed cost for the purposes of the Oil Sands 
Royalty Regulation, 2009 (AR 223/2008).
(11)  The making of a determination by the Minister under 
subsection (7) in relation to the cumulative capital cost or Initial 
Capital of a capital asset or engineering system does not preclude the 
making of a further determination by the Minister pursuant to this 
section in relation to the same capital asset or engineering system.
Determination of cumulative capital cost
12.3(1)  The cumulative capital cost in respect of a capital asset or 
engineering system must be determined as follows:
	(a)	subject to section 12.7(7), for each capital asset or 
engineering system that was in service immediately prior to 
January 1, 2011, or that provided service at any time prior to 
January 1, 2011, the cumulative capital cost in respect of that 
capital asset or engineering system on January 1, 2011 is the 
sum of the costs incurred to construct or acquire the capital 
asset or engineering system, and all costs incurred prior to 
January 1, 2011 to construct or acquire each addition of a 
capital nature made to it, less the sum of the costs originally 
incurred to construct or acquire any capital assets or 
engineering systems that were retired prior to that date;
	(b)	for each capital asset or engineering system that is first 
commissioned on or after January 1, 2011, the cumulative 
capital cost of that capital asset or engineering system on the 
first day of the calendar year in which it is first 
commissioned is the sum of the costs incurred prior to the 
first day of that calendar year to construct or acquire that 
capital asset or engineering system and the costs incurred 
prior to that date to construct or acquire each addition of a 
capital nature made to it, less the sum of the costs originally 
incurred to construct or acquire any capital assets or 
engineering systems that were retired prior to that date.
(2)  Subject to section 12.7(3), if an addition of a capital nature is 
made to a capital asset or engineering system and the addition is first 
commissioned during a calendar year following the date the 
cumulative capital cost of that capital asset or engineering system is 
determined under subsection (1)(a) or (b), the costs incurred to 
construct or acquire that addition will, on January 1 of the next 
calendar year, be added to the then-current cumulative capital cost of 
that capital asset or engineering system.
(3)  If a retirement is made during a calendar year following the date 
the cumulative capital cost of that capital asset or engineering system 
is determined under subsection (1)(a) or (b), the sum of the costs 
originally incurred to construct or acquire the retired capital asset or 
engineering system will, on January 1 of the next calendar year, be 
subtracted from the then-current cumulative capital cost of the 
capital asset or engineering system. 
Determination of return on capital 
12.4   Subject to section 12.7, return on capital, in respect of a 
capital asset or engineering system, for a calendar year, is 
determined in accordance with the following formula:
(IC + EC) x RRC  x  number of days  
      2                                      365
where 
	(a)	"EC" means the End Capital of that capital asset or 
engineering system for that calendar year;
	(b)	"IC" means the Initial Capital of that capital asset or 
engineering system for that calendar year;
	(c)	"number of days" means 
	(i)	in respect of a capital asset or engineering system in 
service prior to January 1, 2011, for a calendar year in 
which that capital asset or engineering system is not in 
retirement, 365,
	(ii)	in respect of a capital asset or engineering system that is 
first commissioned on or after January 1, 2011, for the 
calendar year in which that capital asset or engineering 
system is first commissioned, the number of days in the 
calendar year following the day the capital asset or 
engineering system is first commissioned, provided that 
the capital asset or engineering system continued to 
provide service for the balance of that calendar year, 
	(iii)	in respect of a capital asset or engineering system that is 
in service at the beginning of a calendar year, and is 
placed into retirement during that calendar year, the 
number of days in the calendar year prior to the capital 
asset or engineering system being placed into 
retirement, and
	(iv)	in respect of a capital asset or engineering system first 
commissioned on or after January 1, 2011 that is also 
placed into retirement during the same calendar year, 
the number of days in the calendar year following the 
day the asset was first commissioned to the date the 
capital asset or engineering system was placed into 
retirement;
	(d)	"RRC" means the rate of return on capital for that calendar 
year.
Determination of unit charge
12.5(1)  Subject to subsection (2), if a capital asset or engineering 
system has, in the opinion of the Minister, a readily identifiable 
measure of capacity, the unit charge for that capital asset or 
engineering system for a calendar year is the sum of the capital unit 
charge for the calendar year and the operating unit charge for the 
calendar year. 
(2)  If an operator can demonstrate to the satisfaction of the Minister 
that in accordance with sound engineering practice a capital asset or 
engineering system has been over-sized for the benefit of the Project, 
when calculating the unit charge under subsection (1), the units of 
capacity to be used in the determination of both the capital unit 
charge and the operating unit charge of that capital asset or 
engineering system are the actual measured throughput of the capital 
asset or engineering system during that calendar year.    
(3)  For the purpose of determining units of capacity, the Minister 
may specify, by order, one or more classes of capital assets or 
engineering systems where section 12.1(1)(n)(ii) does not apply, so 
that for a capital asset or engineering system in a class so prescribed, 
"units of capacity" in respect of that capital asset or engineering 
system are its actual measured throughput during the calendar year.  
(4)  For a capital asset or engineering system that does not, in the 
opinion of the Minister, have a readily identifiable measure of 
capacity, the cost of service for a calendar year is the sum of the 
annual capital charge for that calendar year and the annual operating 
charge for that calendar year.
(5)  If there is a need to calculate on a monthly basis the capital unit 
charge of a capital asset or engineering system providing non-arm's 
length services to a Project calculated under subsection (1), or the 
annual capital charge of a capital asset or engineering system 
calculated under subsection (3), then the operator must estimate the 
applicable amount on an annualized basis, and divide the estimate by 
12.
(6)  The report filed by an operator pursuant to section 39 of the Oil 
Sands Royalty Regulation, 2009 (AR 223/2008) in respect of a 
Period must reflect the actual capital unit charge, if applicable, and 
the cost of service for each capital asset or engineering system for 
the Period. 
Determination of depreciation charge
12.6   Subject to section 12.7, the depreciation charge, in respect of 
a capital asset or engineering system, for a calendar year during 
which that capital asset or engineering system is providing a service 
for all or a portion of that calendar year is
	(a)	for the calendar year in which the capital asset or engineering 
system is first commissioned on or after January 1, 2011, the 
product of the cumulative capital cost of that capital asset or 
engineering system at the beginning of that calendar year 
multiplied by 0.04, multiplied by the number of days in the 
calendar year during which the capital asset or engineering 
system was actually providing services, divided by 365, and 
	(b)	for each calendar year subsequent to the year in which the 
capital asset or engineering system is first commissioned, the 
product of the cumulative capital cost of that capital asset or 
engineering system at the beginning of that calendar year 
multiplied by 0.04, provided that if the depreciation charge 
normally determined for a calendar year is greater than the 
Initial Capital for that calendar year, then the depreciation 
charge for that year will be deemed to be equal to the Initial 
Capital, so that the End Capital for that capital asset or 
engineering system for that calendar year is zero.
Rules used to determine depreciation and return on capital
12.7(1)  The rules set out in this section apply for the purpose of 
determining the depreciation on, and return on capital in respect of, a 
capital asset or engineering system.
(2)  If, prior to January 1, 2011, a capital asset or engineering system 
has been depreciated, according to the records of the Department, on 
a basis other than as described in section 12.6, that capital asset or 
engineering system will continue to be depreciated on that basis until 
the end of the calendar year in which the first capital addition to it 
was made, subject to subsection (3).
(3)  If the costs of any addition to a capital asset or engineering 
system
	(a)	are less than 10% of the cumulative capital cost of the capital 
asset or engineering system at the time the addition is first 
commissioned, and 
	(b)	would otherwise fit the eligibility requirements under this 
Regulation as an allowed cost, had the capital asset or 
engineering system formed part of the Project receiving the 
service,
the costs of the addition are deemed to be a cost to operate the 
capital asset or engineering system, as the case may be, and must not 
be added to the Initial Capital or the cumulative capital cost of the 
capital asset or engineering system. 
(4)  Subject to subsection (3), the costs to construct or acquire any 
additions to a capital asset or engineering system that arise over two 
or more Periods are deemed to have been incurred in the calendar 
year in which the addition, in its entirety, is first commissioned.
(5)  The cost to construct or acquire an addition to a capital asset or 
engineering system must be added to the End Capital of that capital 
asset or engineering system for the calendar year in which it is first 
commissioned for the purpose of determining the Initial Capital of 
the capital asset or engineering system as of January 1 of the next 
calendar year.   
(6)  If a capital asset or engineering system, or a portion of it, is 
placed into retirement, the net book value of the retirement must be 
subtracted from the End Capital for the calendar year in which it is 
retired for the purpose of determining the Initial Capital of the 
capital asset or engineering system as of January 1 of the next 
calendar year, and if the Initial Capital of the capital asset or 
engineering system as of January 1 of that next calendar year after 
applying subsection (5) is less than zero, the Initial Capital is 
deemed to be zero.  
(7)  For a capital asset or engineering system in service prior to 
January 1, 2011, for which depreciation on a straight line basis has 
been taken into consideration in determining the cost of service for 
that capital asset or engineering system for goods and services 
provided prior to January 1, 2011, and for which the operator cannot 
provide evidence satisfactory to the Minister of the cumulative 
capital cost, the cumulative capital cost of the capital asset or 
engineering system is the amount of depreciation charged in the 
previous calendar year according to the records of the Department 
multiplied by the number of years over which the straight line 
depreciation is based.
(8)  Subject to subsections (4) and (5), if a capital asset or 
engineering system breaks down or otherwise does not provide 
service during a calendar year, depreciation on, and return on capital 
in respect of, that capital asset or engineering system for that 
calendar year will continue to be calculated as though it were still 
providing service throughout the calendar year.

10   Section 13 is repealed and the following is substituted:
Cost of non-arm's length capital assets 
or engineering systems
13   The amount of an allowed cost of the Project incurred for a 
capital asset or engineering system that is included in the description 
of the Project is the least of
	(a)	the amount charged to the Project for the capital asset or 
engineering system,
	(b)	the fair market value of the capital asset or engineering 
system, where the Minister is satisfied that a fair market 
value can reasonably be determined, and
	(c)	the net book value of the capital asset or engineering system
	(i)	to the lessee or operator of the Project, as the case may 
be, if the capital asset or engineering system is not 
obtained by either from another person, or
	(ii)	to any other person from whom the capital asset or 
engineering system is obtained by the lessee or operator 
of the Project,
at the time when the capital asset or engineering system is delivered 
to the Project site.

11   The following is added after section 13:
Definitions for valuation of transferred heat
13.1(1)  In this section and sections 13.2 to 13.6,
	(a)	"average hourly bitumen production rate" is the rate 
determined under section 13.3(b), expressed in cubic metres 
per hour;  
	(b)	"GRP" for a month is the Gas Reference Price for that month 
as prescribed by the Minister pursuant to section 7 of the 
Natural Gas Royalty Regulation, 2009 (AR 221/2008);
	(c)	"net hourly average synergy-adjusted useful heat transfer 
rate" is the rate determined under section 13.3(a), expressed 
in gigajoules per hour, which will be greater than zero if, on a 
net basis, useful heat is transferred from the non-Project 
components of an integrated project to the Project, and will 
be less than zero if, on a net basis, useful heat is transferred 
from the Project to the non-Project components of the 
integrated project;
	(d)	"net synergy-adjusted useful heat transfer per unit of 
bitumen" means, in respect of a Project that comprises part of 
an integrated project, the quotient obtained by dividing the 
net hourly average synergy-adjusted useful heat transfer rate 
by the average hourly bitumen production rate, expressed in 
gigajoules per cubic metre;   
	(e)	"net synergy-adjusted useful heat transfer quantity" means, in 
respect of a Project that comprises part of an integrated 
project, in any month or Period, the product of the net 
synergy-adjusted useful heat transfer per unit of bitumen for 
that Project and the quantity of bitumen, in cubic metres, 
delivered in that month or Period to the royalty calculation 
point of the Project, expressed in gigajoules;
	(f)	"site wide thermal energy value" with respect to an 
integrated project, in any month or Period, is the 
energy-weighted average cost, expressed in dollars per 
gigajoule, of all fuels used to produce heat in the integrated 
project, for that month or Period;
	(g)	"synergy factor" is 0.66;  
	(h)	"useful heat" means heat that is put to use in Project 
operations. 
Determining the value of useful heat
13.2   For the purposes of determining the value of useful heat in 
process streams transferred to or from a Project that forms part of an 
integrated project, the Minister may, by order or otherwise, specify 
any of the following or specify methodologies for determining any 
of the following: 
	(a)	the value of
	(i)	transferred heat,  
	(ii)	manufactured fuel gases, including syngas and upgrader 
produced fuel gas,
	(iii)	petroleum coke, 
	(iv)	carbon monoxide gas derived from the combustion of 
petroleum coke, and
	(v)	natural gas; 
	(b)	the net synergy-adjusted useful heat transfer per unit of 
bitumen;
	(c)	the site wide thermal energy value.
Determining components for calculating value 
of useful heat transferred
13.3   For each Project that comprises part of an integrated project, 
the Minister shall determine  
	(a) 	the net hourly average synergy-adjusted useful heat transfer 
rate, with respect to heat in process streams, according to 
engineering design specifications and under normal operating 
conditions, between the non-Project components of the 
integrated project and the Project, expressed in gigajoules per 
hour,  
	(b)	the average hourly bitumen production rate of the Project, 
expressed in cubic metres per hour, according to engineering 
design specifications and under normal operating conditions, 
and
	(c) 	the site wide thermal energy value, expressed in dollars per 
gigajoule.
Methodologies may be specified
13.4(1)  The Minister may, by order or otherwise, specify the 
methodologies required to calculate
	(a)	the net hourly average synergy-adjusted useful heat transfer 
rate of an integrated project,
	(b)	the average hourly bitumen production rate of a Project that 
forms part of an integrated project, and
	(c)	the site wide thermal energy value of an integrated project. 
(2)  If the operator of a Project that comprises part of a integrated 
project is of the opinion that one or more of the methodologies 
specified by the Minister in respect of those items listed in 
subsection (1) are not applicable to or appropriate for the Project that 
forms part of the integrated project, the operator may apply to the 
Minister, in the manner specified by the Minister, stating its 
reasoning as to why the methodology or methodologies are not 
applicable or appropriate.   
(3)  In an application made under subsection (2), an operator must 
provide its suggestion as to what methodology or methodologies it 
considers applicable or appropriate.   
(4)  Where the Minister disagrees with the methodology or 
methodologies suggested by the operator pursuant to subsection (3), 
the Minister may by order specify the methodology or 
methodologies to be used, which may differ from the methodology 
or methodologies prescribed in subsection (1) and those suggested 
by the operator under subsection (3).  
(5)  The Minister may, on his own initiative or on the request of an 
operator or lessee, from time to time recalculate one or more of the 
items referred to in subsections 13.3(a) to (c). 
Calculation of site wide thermal energy value
13.5   In determining the site wide thermal energy value for an 
integrated project,
	(a)	the cost of any natural gas used to generate heat must be 
calculated in accordance with this Regulation,
	(b)	the cost of any syngas used to generate heat in a month must 
be calculated as 100% of the GRP for that month, 
	(c)	the cost of any upgrader produced fuel gas used to generate 
heat in a month must be calculated as 90% of the GRP for 
that month, and
	(d)	the cost of any petroleum coke used to generate heat is 
deemed to be zero.
Results of calculation of value of useful heat transferred
13.6(1)  If the product of the net synergy-adjusted useful heat 
transfer quantity for an integrated project and the site wide thermal 
energy value of that integrated project for a month or Period is 
greater than zero, that product is an allowed cost of the Project that 
forms part of the integrated project for that month or Period.
(2)  If the product of the net useful synergy-adjusted heat transfer 
quantity for an integrated project and the site wide thermal energy 
value of that integrated project for a month or Period is less than 
zero, the additive inverse of that product forms an other net proceed 
of the royalty Project that forms part of the integrated project for that 
month or Period.

12   The Schedule is amended
	(a)	by repealing the heading and substituting 
"Schedule 1";
	(b)	in Column 1 of item 4
	(i)	by striking out "and flare stacks";
	(ii)	by adding "- installing and operating flare systems 
composed of flare headers, knock-out drums and flare 
stacks" after "- installing fuel gas compression and 
distribution systems";
	(iii)	by adding "and gas injection" after "polymer and 
solvent floods";
	(c)	in Column 1 of item 8 by adding "- flare systems 
composed of flare headers, knock-out drums and flare 
stacks" after "- diluent recovery units, if specifically 
included in the description of a Prior Project";
	(d)	by repealing item 11 and substituting the following:
11
Natural gas, diesel, gasoline or other 
fuels not produced from Project 
leases purchased for consumption in 
undertaking Project operations
Solution gas exempted from royalty 
under the Natural Gas Royalty 
Regulation, 2009 (AR 221/2008).
Any other fuels arising from 
Project substances consumed 
within the Project, prior to those 
fuels being processed in non-
Project operations to produce other 
kinds of discrete oil sands product
11.1
The value of useful heat, as 
determined by the Minister, that is 
transferred from an integrated 
upgrader to a Project that forms part 
of an integrated project, for use in 
the Project's operations

	(e)	by repealing item 18 and substituting the following:
18
In relation to utilities required for 
Projects, the construction, 
acquisition and operation of the 
following equipment and facilities 
on Project lands:
- boiler feed water system, including 
water clarifying, filtering and 
treatment facilities, softeners and 
demineralization units, boiler feed 
water pumps and distribution 
system, and de-aerators if not a 
dedicated part of a boiler
- raw water system, including raw 
water pump houses and pumps, 
flow lines and valves, tanks and 
basins, raw water filtering and 
treatment facilities
- cooling water system, including 
cooling water pump houses and 
pumps, flow lines, cooling water 
towers, cooling water filtering and 
chemical treatment facilities 
- steam generation system, including 
main boilers, once through steam 
generators, back pressure steam 
turbine generators, gas turbine 
waste heat boilers, steam 
distribution systems and other heat 
recovery steam generator system 
cogeneration units
- backup steam units used as standby 
steam production units
- fuel gas system providing fuel and 
natural gas to fired heaters and 
steam methane reformers, 
composed of flowlines, valves, 
odoriser, knockout and mixing 
drums and pressure reducers
- electricity transmission system, 
including transmission lines, 
insulating and support structures, 
substations, transformers and 
switchgear, operational, 
telecommunication and control 
devices 
- electrostatic precipitator units
- utilities plant flue gas 
desulphurization units
- hot water pipelines
- natural gas pipelines
- diesel pipelines
- (gypsum) tailings pipelines
- recycled water pipelines 
- instrument air system, including 
instrument air compressors, air 
treatment facilities and air 
distribution system
- other utility distribution systems 
including potable water lines, 
waste water lines, sewer lines, 
sour water lines and slop oil lines
- fire water system, comprising fire 
water tank and basins, fire 
hydrants and monitors, fire water 
mains and distribution system, fire 
water pumps and fire water pump 
building
- emergency power system, 
including backup and emergency 
generation equipment, dedicated 
transformers, cables, controls and 
switchgear
- control system, including control 
room equipment (panels, cabinets, 
operator interface), field 
instruments, junction boxes, 
multiplex, cables and cable trays, 
control room building and field 
auxiliary rooms
- flare systems composed of flare 
headers, knock-out drums and 
flare stacks
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 
- waste water systems 
- waste heat recovery systems, 
cooling towers and ponds 
- oil spill preparedness systems 
- natural gas import pipeline and 
distribution pipelines

	(f)	by repealing item 19 and substituting the following:
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 fuelling 
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

	(g)	in Column 2 of item 27 by striking out "Escalating 
rental payments made under the Oil Sands Tenure 
Regulation" and substituting "Escalating rental payments 
made under the Oil Sands Tenure Regulation (AR 50/2000) 
or the Oil Sands Tenure Regulation, 2010 (AR 196/2010)";
	(h)	in item 45 
	(i)	in Column 1 by adding "Contracts that hedge price 
risk specifically in relation to allowed costs of a Project 
or currency required to pay those costs" after 
"activities within Project operation";
	(ii)	in Column 2 by striking out " Contracts that hedge 
price risk specifically in relation to allowed costs of a 
Project or currency required to pay such costs";
	(i)	in Column 2 of item 47 
	(i)	by striking out "- terms of a commercial 
arrangement";
	(ii)	by adding ", organizations or corporations" after 
"membership or participation in associations";
	(j)	in item 57 
	(j)	in Column 1 by adding ", accounts payable" after 
"administration";
	(ii)	in Column 2 by adding "accounts payable" after 
"administration,".

13   The following is added after Schedule 1:
Schedule 2
A   Direct Measurement of Use
The costs of each of the following engineering systems for a Period 
must be allocated based on the actual measured use of engineering 
system output by each of 
	(a)	the Project,
	(b)	the integrated shared operations, if any, and 
	(c)	operations that are neither part of the Project nor of the 
integrated shared operations, 
as a percentage of the total of the engineering system output during the 
Period. 
Engineering System	Engineering System Output
Boiler feed water (BFW) 	Actual BFW use in m3
   treatment system
Raw water system	Actual raw water use in m3
Fuel gas system	Actual fuel gas use in gigajoules
Steam generation system	Actual net steam energy  
	   use in gigajoules
Electricity transmission	Actual net power use in megawatt     
system	   hours
In accordance with this Regulation,
	(a)	a cost allocated to the Project is an allowed cost of the 
Project, 
	(b)	a cost allocated to the integrated shared operations, if any, is 
subject to further allocation under Schedule 3, and
	(c)	a cost allocated to the operations that are neither part of the 
Project nor of the integrated shared operations is not an 
allowed cost of the Project.
B   Design Intent
The costs of each of the following engineering systems must be 
allocated based on the designed use of engineering system output by  
	(a)	the Project,
	(b)	the integrated shared operations, if any, and
	(c)	operations that are neither part of the Project nor of the 
integrated shared operations,  
as a percentage of the total of designed use of the engineering system 
output.    
System Type	Engineering System Output
Control system	Designed input/output (I/O)  
	   channel count
Cooling water system	Designed cooling water demand in m3/hour
Instrument air system	Designed instrument air demand in m3/hour
Fire water system	Designed fire hydrants/monitors flow 
	   capacity in m3/hour
Emergency power 	Designed emergency power demand in 
   system	megawatts
In accordance with this Regulation,
	(a)	a cost allocated to the Project is an allowed cost of the 
Project, 
	(b)	a cost allocated to the integrated shared operations, if any, is 
subject to further allocation under Schedule 3, and
	(c)	a cost allocated to the operations that are neither part of the 
Project nor of the integrated shared operations is not an 
allowed cost of the Project.
C   Ratio of Length
The costs of each of the following engineering systems must be 
allocated to the Project, the integrated shared operations, if any, and 
the operations that are not part of the Project or integrated shared 
operations, based on the length of the engineering system located 
within
	(a)	the Project,
	(b)	the integrated shared operations, if any, and
	(c)	operations that are neither part of the Project nor of the 
integrated shared operations,  
as a percentage of the total length of the engineering system.  
Potable water lines 
Waste water lines 
Sewer lines 
Sour water lines 
Slop oil lines 
Pipe racks
In accordance with this Regulation,
	(a)	a cost allocated to the Project is an allowed cost of the 
Project, 
	(b)	a cost allocated to the integrated shared operations, if any, is 
subject to further allocation under Schedule 3, and
	(c)	a cost allocated to the operations that are neither part of the 
Project nor of the integrated shared operations is not an 
allowed cost of the Project.
D   Miscellaneous
The costs of each of the following items must be allocated to each of
	(a)	the Project,
	(b)	the integrated shared operations, if any, and
	(c)	operations that are neither part of the Project nor of the 
integrated shared operations,  
based on the methodologies described in the following table.
Cost
Methodology
Camps
Costs must be allocated in the following proportions:
The number of person days of accommodation provided during the 
Period to employees, excluding contractors, working on each of
(i) the Project, 
(ii) the integrated shared operations, if any, and 
(iii) the operations that are neither part of the Project nor of the 
integrated shared operations,
as a percentage of the total person days of accommodation 
provided during the Period to employees, excluding contractors, 
working on the Project, the integrated shared operations, if any, 
and the operations that are neither part of the Project nor of the 
integrated shared operations.
Airstrips and 
associated 
facilities
Costs must be allocated in the following proportions:
The number of person flights during the Period by persons 
working on each of 
(i) the Project, 
(ii) the integrated shared operations, if any, and 
(iii) the operations that are neither part of the Project nor of the 
integrated shared operations, 
as a percentage of the total person flights utilizing the airstrips and 
associated facilities during the Period.
In accordance with this Regulation,
	(a)	a cost allocated to the Project is an allowed cost of the 
Project, 
	(b)	a cost allocated to the integrated shared operations, if any, is 
subject to further allocation under Schedule 3, and
	(c)	a cost allocated to the operations that are neither part of the 
Project nor of the integrated shared operations is not an 
allowed cost of the Project.
Schedule 3 
 
Allocation of Costs in Respect of  
Integrated Shared Operations
Costs that have been attributed to integrated shared operations pursuant 
to Schedule 2 or section 8.1(10) of the Regulation must be allocated to 
the Project that forms part of an integrated project as an allowed cost 
of that Project, unless the Minister determines otherwise, based on the 
proportion of the value of energy used by that Project as a percentage 
of the total value of energy used by the integrated project.

14   This Regulation has effect on and from January 1, 2011.


--------------------------------
Alberta Regulation 20/2012
Provincial Court Act 
Court of Queen's Bench Act
PROVINCIAL COURT JUDGES AND MASTERS IN CHAMBERS 
COMPENSATION AMENDMENT REGULATION
Filed: February 9, 2012
For information only:   Made by the Lieutenant Governor in Council (O.C. 044/2012) 
on February 9, 2012 pursuant to section 9.52 of the Provincial Court Act and section 
16 of the Court of Queen's Bench Act. 
1   The Provincial Court Judges and Masters in Chambers 
Compensation Regulation (AR 176/98) is amended by this 
Regulation.

2   Section 0.1 is amended
	(a)	by renumbering clause (a) as clause (a.4) and by 
adding the following before clause (a.4):
	(a)	"administrative judge" means the Chief Judge, the 
Deputy Chief Judge or an assistant chief judge;
	(a.1)	"appointed" includes reappointed;
	(a.2)	"full-time judge" means a judge to whom section 1(1) 
applies;
	(a.3)	"half-time master" means a person appointed as such 
under section 8.21 of the Court of Queen's Bench Act;
	(b)	in clause (a.4) (as renumbered) by adding "means a 
judge within the meaning of section 1 of the Provincial Court 
Act, but" before "does";
	(c)	in clause (b) by adding "or a part-time master in 
chambers" after "ad hoc master in chambers";
	(d)	by adding the following after clause (b):
	(c)	"part-time judge" means a person appointed as such 
under section 9.24 of the Provincial Court Act;
	(d)	"part-time master" means a person, other than a 
half-time master or an ad hoc master, who is appointed 
to perform the duties of a master in chambers on a 
part-time basis;
	(e)	"year", except in sections 1(3) and (4) and 9, section 
3(1) of Schedule 1 and section 5 of Schedule 2, means 
the period of one year commencing at the beginning of 
April in one year and ending at the end of March in the 
next.

3   Section 1 is repealed and the following is substituted:
Salaries for full-time judges
1(1)  For the period from the beginning of April 2009 to the end of 
March 2010, the salary to be paid to judges who are appointed on a 
full-time basis and who are not administrative judges is $250 000.
(2)  For the period from the beginning of April 2010 to the end of 
March 2011, the salary to be paid to full-time judges is $255 000.
(3)  For the period from the beginning of April 2011 to the end of 
March 2012, the salary to be paid to full-time judges is $255 000, as 
increased by the year-over-year percentage increase, if any, in the 
Alberta (All Items) Consumer Price Index published by Statistics 
Canada for 2010.
(4)  For the period from the beginning of April 2012 to the end of 
March 2013, the salary to be paid to full-time judges is the salary 
arrived at in accordance with subsection (3), as increased by the 
year-over-year percentage increase, if any, in the Alberta (All Items) 
Consumer Price Index published by Statistics Canada for 2011.
Salaries for administrative judges
1.01(1)  For the period from the beginning of April 2009 to the end 
of March 2010,
	(a)	the salary to be paid to the Chief Judge is $270 000,
	(b)	the salary to be paid to the Deputy Chief Judge is $265 000, 
and
	(c)	the salary to be paid to an assistant chief judge is $260 000.
(2)  For the period from the beginning of April 2010 to the end of 
March 2013, the annual salaries to be paid to the administrative 
judges are to be calculated by applying the appropriate following 
percentage multiple to the annual salary for the year in question of a 
full-time judge arrived at under section 1:
	(a)	1.1% for the Chief Judge;
	(b)	1.075% for the Deputy Chief Judge;
	(c)	1.05% for an assistant chief judge.

4   Section 1.1 is amended
	(a)	by repealing subsection (1) and substituting the 
following:
Salary on expiration of appointment  
as administrative judge
1.1(1)  Where the appointment of an administrative judge 
expires, notwithstanding anything in section 1, that judge's 
salary is to remain unchanged until the salary of a full-time 
judge, applying section 1, exceeds that judge's salary.
	(b)	in subsection (2) by striking out "Chief Judge, Deputy 
Chief Judge or Assistant Chief Judge" and substituting 
"an administrative judge".

5   The following is added after section 1.1:
Salaries for part-time judges
1.2(1)  In this section,
	(a)	"pension benefits" means pension benefits payable under the 
Provincial Judges and Masters in Chambers Registered and 
Unregistered Pension Plans (AR 196/2001);
	(b)	"12-month term of appointment" means the 12-month period 
immediately following the appointment of a part-time judge 
and, where applicable, includes any subsequent 12-month 
period of appointment as such.
(2)  Subject to subsection (3), the annual salary to be paid to a 
part-time judge is 50% of the annual salary of a full-time judge.
(3)  If the aggregate of a part-time judge's salary and pension 
benefits payable during a 12-month term of appointment exceeds the 
salary of a full-time judge for that 12-month term of appointment, 
the salary payable to that judge during that term shall be reduced by 
an amount equal to that excess.

6   Section 2 is amended by repealing subsections (1) to 
(2.5) and substituting the following:
Remuneration and benefits for supernumeraries
2(1)  For the period from the beginning of April 2009 to the end of 
March 2013, the remuneration to be paid to a supernumerary judge 
for holding a sitting or otherwise acting as a supernumerary judge, 
for each day or partial day, is 1/207.5 of a full-time judge's salary 
under section 1 for the relevant year.

7   Section 4.1 is amended
	(a)	in subsection (1)
	(i)	by striking out "other than a supernumerary judge";
	(ii)	by adding the following after clause (d):
	(e)	payment of or for individual
	(i)	fitness facility (including membership) fees,
	(ii)	fitness, health and nutrition lessons, programs 
and courses,
	(iii)	fitness equipment, and
	(iv)	library memberships.
	(b)	in subsection (2)
	(i)	by striking out "Master in Chambers other than an ad 
hoc Master in Chambers or a Master in Chambers who 
performs the duties of a master in chambers on a 
part-time basis" and substituting "master";
	(ii)	by adding the following after clause (d):
	(e)	payment of or for individual
	(i)	fitness facility (including membership) fees,
	(ii)	fitness, health and nutrition lessons, programs 
and courses,
	(iii)	fitness equipment, and
	(iv)	library memberships;
	(f)	the purchase and cleaning of court attire related to 
the carrying out of the duties and functions of a 
master in chambers, including business clothing 
and gowns for ceremonial proceedings.
	(c)	by repealing subsections (3) to (5) and substituting 
the following:
(3)  The amount of the allowance referred to in subsections (1) 
and (2), for the period from the beginning of April 2009 to the 
end of March 2013, is up to a maximum of $3750 per year.
(4)  Notwithstanding subsection (3), a part-time judge or a 
half-time master may only claim a maximum allowance of 
$1875 per year for the period referred to in that clause.
(5)  Where an expenditure that is covered by subsection (1) or 
(2) is incurred in one year and there is not a sufficient amount 
of allowance available in that year for the payment or full 
payment of that expenditure, then that expenditure, or the 
portion of it that remains not reimbursed, as the case may be, 
may be carried forward for payment in the following year.

8   Section 8(1) and (2) are amended by adding "or a part-time 
judge" after "judge".

9   Section 8.1 is repealed and the following is substituted:
Pensions
8.1   The Provincial Judges and Masters in Chambers Registered 
and Unregistered Pension Plans (AR 196/2001) applies, to the 
extent provided in it, with respect to judges and masters.

10   Section 9.1 is amended
	(a)	in subsections (2) and (3) by adding "or a half-time 
master" after "master";
	(b)	by adding the following after subsection (3):
(3.1)  Subject to subsection (3.2), the annual salary to be paid 
to a half-time master is 50% of the annual salary of a full-time 
judge.
(3.2)  If the aggregate of a half-time master's salary and 
pension benefits within the meaning of section 1.2(1) payable 
during a 12-month term of appointment exceeds the salary of a 
full-time judge for that 12-month term of appointment, the 
salary payable to that master during that term shall be reduced 
by an amount equal to that excess.
(3.3)  In subsection (3.2), "12-month term of appointment" 
means the 12-month period immediately following the 
appointment of a half-time master and, where applicable, 
includes any subsequent 12-month period of appointment as 
such.

11   Section 10 is repealed.

12   Schedule 1 is amended
	(a)	in the heading by striking out "Full-Time";
	(b)	in section 1 by adding "or a half-time master" after 
"full-time master";
	(c)	by repealing section 3(1) and substituting the 
following:
3(1)  A judge or master is entitled to vacation of 30 working 
days per year except that a part-time judge or a half-time 
master is entitled to vacation of 15 working days per year.
	(d)	in section 4 by adding "and half-time masters" after 
"part-time judges";
	(e)	by repealing section 5.

13   Section 8(1) of Schedule 2 is repealed and the following 
is substituted:
Amount of benefit
8(1)  The benefit amount for a participant, which is effective on 
completion of the elimination period, is 70% of the monthly salary 
paid to a judge or master, based on the appropriate salary level set 
from time to time under section 1, 1.2 or 9.1(3.1) or (3.2), as the case 
may be, of the portion of this Regulation preceding Schedule 1.

14(1)  Subject to this section, this Regulation is deemed to 
have come into force on April 1, 2009.
(2)  Section 12(e) is deemed to have come into force on 
January 1, 2009.
(3)  Section 2, except section 2(a) insofar as it inserts a new 
section 0.1(a) and (a.1) and section 2(d) insofar as it inserts 
a new section 0.1(e), and sections 7(b)(i), 8, 9, 10, 11, 12(a) 
to (d) and 13 are deemed to have come into force on 
December 8, 2011.


--------------------------------
Alberta Regulation 21/2012
Provincial Court Act 
Court of Queen's Bench Act
PROVINCIAL COURT JUDGES AND MASTERS IN  
CHAMBERS REGISTERED AND UNREGISTERED 
PENSION PLANS AMENDMENT REGULATION
Filed: February 9, 2012
For information only:   Made by the Lieutenant Governor in Council (O.C. 045/2012) 
on February 9, 2012 pursuant to section 9.52 of the Provincial Court Act and section 
16 of the Court of Queen's Bench Act. 
1   The Provincial Judges and Masters in Chambers 
Registered and Unregistered Pension Plans (AR 196/2001) 
is amended by this Regulation.

2   Schedule 1 is amended by sections 3 to 6.

3   Section 1(1) is amended
	(a)	in clause (b.1) by adding "master, half-time master or ad 
hoc master," after "part-time judge,";
	(b)	by adding the following after clause (f):
	(f.1)	"half-time master" means a person appointed as such 
under section 8.21 of the Court of Queen's Bench Act;
	(c)	in clause (g) by adding ", half-time master" after "ad 
hoc master";
	(d)	in clause (o) by adding "or half-time master" after 
"part-time judge";
	(e)	in clause (q.2) by adding "a half-time master or" before 
"an ad hoc".

4   Sections 24(1) and 33 are amended by adding "or half-time 
master" after "part-time judge".

5   Section 43(5)(b) is repealed and the following is 
substituted:
	(b)	either
	(i)	1 + .6X with respect to persons who terminated before 
April 1, 2009, or
	(ii)	1 + 1X with respect to persons who terminated after 
March 31, 2009. 

6   Section 47(4) is amended by adding "or half-time master" 
after "part-time master".

7   Schedule 2 is amended by sections 8 and 9.

8   Section 1(2) is amended by adding ""half-time master"," 
after ""former Regulation",".

9   Section 33 is amended by adding "other than a part-time 
judge or half-time master" after "person".

10(1)   Sections 1, 2 and 5 are deemed to have come into 
force on January 1, 2010. 
(2)   Sections 3, 4, 6, 7, 8 and 9 are deemed to have come 
into force on December 8, 2011.



Alberta Regulation 22/2012
Safety Codes Act
EXEMPTION AMENDMENT REGULATION
Filed: February 15, 2012
For information only:   Made by the Minister of Municipal Affairs (M.O. P:004/12) 
on February 8, 2012 pursuant to section 2(2) of the Safety Codes Act. 
1   The Exemption Regulation (AR 351/2003) is amended by 
this Regulation.

2   The following is added after section 10:
Building Code 2006 exemption
10.1(1)  In this section,
	(a)	"Alberta Building Code 2006" means the Alberta Building 
Code 2006 declared in force by section 1 of the Building 
Code Regulation (AR 117/2007);


	(b)	"exposing building face", "professional engineer", 
"registered architect" and "residential occupancy" have the 
meanings given to them in the Alberta Building Code 2006;
	(c)	"historic resource" means a historic resource designated 
under the Historical Resources Act as a Provincial Historic 
Resource or a Municipal Historic Resource.
(2)  Notwithstanding section 1 of the Building Code Regulation 
(AR 117/2007), a grain elevator that is part of a historic resource 
listed in the Schedule is exempt from the Alberta Building 
Code 2006 if
	(a)	it is being operated, or being renovated for operation, solely 
as a museum or an information centre,
	(b)	no building of residential occupancy is located within 30 m 
of any exposing building face of the grain elevator,
	(c)	all exposing building faces of the grain elevator that are not 
adjacent to a railway right of way are surrounded by a fire 
break at least 6 m wide and composed of gravel or an 
equivalent noncombustible material,
	(d)	a professional engineer has prepared a report respecting the 
structural condition of the grain elevator and any remediation 
recommended in the report as being necessary to ensure the 
structural stability of the grain elevator has been completed 
in consultation with a registered architect,
	(e)	portable fire extinguishers are 
	(i)	sized and located in the grain elevator in conformance 
with the Extra Hazard Occupancy portion of Table 
5.2.1. of NFPA 10 "Portable Fire Extinguishers", 
published by the National Fire Protection Association, 
and
	(ii)	installed in the grain elevator in accordance with the 
Fire Code Regulation (AR 118/2007),
	(f)	the occupant load of the grain elevator is 20 persons and a 
permanent sign indicating that occupant load is posted in a 
conspicuous location,
	(g)	no hand-powered counterbalanced manlifts, as defined in 
CAN/CSA B311 "Safety Code for Manlifts", published by 
the Canadian Standards Association, within the grain elevator 
are capable of being operated,
	(h)	smoke alarms conforming to CAN/ULC S531 "Smoke 
Alarms", published by the Underwriters' Laboratories of 
Canada,
	(i)	are located throughout all publicly accessible areas of 
the grain elevator,
	(ii)	are located not more than 5 m from any wall and spaced 
not more than 10 m apart, and
	(iii)	are wired so that the actuation of one smoke alarm will 
cause all smoke alarms within the grain elevator to 
sound, 
	(i)	all combustible dust is removed before the grain elevator is 
opened to the public,
	(j) 	in the case of a grain elevator in which a mechanical grain 
handling system that produces any combustible dust is 
operated, procedures are in place for weekly removal of the 
combustible dust,
	(k)	the aggregate weight of any oilseeds, legumes or other seeds 
or grain in the grain elevator does not exceed 2000 kg,  
	(l)	any seeds or grain referred to in clause (k) are used only for 
the purposes of display and demonstration,
	(m)	no hazardous projections are present on any interior walls of 
the grain elevator at a height of 2.1 m or less above the 
finished floor level, and
	(n)	no food or beverage preparation or service is carried on in the 
grain elevator.
(3)  The following requirements of Division B of the Alberta 
Building Code 2006 apply to every grain elevator referred to in 
subsection (2):
	(a)	emergency lighting requirements under Subsection 3.2.7.; 
	(b)	exit sign requirements under Subsection 3.4.5. 
(4)  Notwithstanding this section and section 6(1) of the Permit 
Regulation (AR 204/2007), a permit in the building discipline is 
required
	(a)	for any renovation of or addition to, or
	(b)	for a change in occupancy of
a grain elevator referred to in subsection (2).

3   The following is added after section 12:
Schedule
1   Alberta Wheat Pool Grain Elevator Site Complex  
Location:  Andrew, Alberta
2   Alberta Pacific Grain Elevator 
Location:  Castor, Alberta
3   Alberta Wheat Pool Grain Elevator Site Complex 
Location:  Leduc, Alberta
4   Alberta Wheat Pool Grain Elevator 
Location:  Mayerthorpe, Alberta
5   Alberta Pacific Grain Elevator Site Complex 
Location:  Meeting Creek, Alberta
6   Alberta Wheat Pool Grain Elevator 
Location:  Paradise Valley, Alberta
7   Krause Milling Company Grain Elevator and 
Flour Mill Site Complex 
Location:  Radway, Alberta
8   Rowley Grain Elevator Row 
Location:  Rowley, Alberta
9   Alberta Wheat Pool Grain Elevator and Bow Slope Stockyard 
Location:  Scandia, Alberta
10   Alberta Grain Company Grain Elevator 
Location:  St. Albert, Alberta
11   Alberta Wheat Pool Grain Elevator 
Location:  St. Albert, Alberta