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Alberta Regulation 191/2016
Electric Utilities Act
BALANCING POOL AMENDMENT REGULATION
Filed: December 1, 2016
For information only:   Made by the Minister of Energy (M.O. 116/2016) on 
November 28, 2016 pursuant to section 88 of the Electric Utilities Act. 
1   The Balancing Pool Regulation (AR 158/2003) is 
amended by this Regulation.

2   The following is added after section 5:
Annualized amount - interpretation
5.1   For the purposes of sections 5.2, 5.3 and 5.4, 
	(a)	"active period" means the period commencing January 1, 
2018 and ending December 31, 2020;
	(b)	"amortization period" means the period commencing January 
1, 2021 and ending December 31, 2030;
	(c)	"annualized amount" means
	(i)	in respect of the 2017 fiscal year, the negative amount 
of $65 000 000;
	(ii)	in respect of each fiscal year commencing with 2018 
and ending with 2030, the levelized annual amount 
calculated by the Balancing Pool in accordance with 
section 5.2(1)(a) or 5.3(1)(a).
Active period calculations
5.2(1)  Before the Balancing Pool prepares or amends a budget 
under section 82 of the Act for a fiscal year during the active period, 
the Balancing Pool must forecast its revenues and expenses
	(a)	for the active period and calculate a levelized annual amount 
that, if included in the ISO tariff, would result in the amount 
in the balancing pool accounts totalling $0 at the end of the 
amortization period, and
	(b)	for that fiscal year and calculate an amount that, if included 
in the ISO tariff, would result in the amount in the balancing 
pool accounts at the end of that fiscal year not exceeding the 
amount of working capital and reserves included in the 
budget or amended budget for that fiscal year.
(2)  The Balancing Pool must immediately notify the Minister if the 
amount calculated for a fiscal year under subsection (1)(b) differs 
from the levelized annual amount calculated under subsection (1)(a) 
by more than $15 000 000 or differs from the annualized amount 
applied in the previous fiscal year by more than $15 000 000 and 
may make any recommendation the Balancing Pool considers 
appropriate concerning the amendment of this Regulation.
Amortization period calculations
5.3(1)  Before the Balancing Pool prepares or amends a budget 
under section 82 of the Act for a fiscal year during the amortization 
period, the Balancing Pool must forecast its revenues and expenses
	(a)	for the amortization period and calculate a levelized annual 
amount that, if included in the ISO tariff, would result in the 
amount in the balancing pool accounts totalling $0 at the end 
of the amortization period, and
	(b)	for that fiscal year and calculate an amount that, if included 
in the ISO tariff, would result in the amount in the balancing 
pool accounts at the end of that fiscal year not exceeding the 
amount of working capital and reserves included in the 
budget or amended budget for that fiscal year.
(2)  The Balancing Pool must immediately notify the Minister if the 
amount calculated for a fiscal year under subsection (1)(b) differs 
from the levelized annual amount calculated under subsection (1)(a) 
by more than $15 000 000 or differs from the annualized amount 
applied in the previous fiscal year by more than $15 000 000 and 
may make any recommendation the Balancing Pool considers 
appropriate concerning the amendment of this Regulation.
Balancing Pool duties - clarification
5.4(1)  The duties of the Balancing Pool set out in section 85(1) of 
the Act are clarified as follows:
	(a)	for the purposes of the duty set out in clause (h), the 
Balancing Pool must ensure that by the end of the 
amortization period, any net amount in the balancing pool 
accounts that is greater than $0 or less than $0 is included in 
the ISO tariff;
	(b)	for the purposes of the duty set out in clause (j), the 
Balancing Pool must ensure that by the end of the 
amortization period, no profit or loss results, after accounting 
for the annualized amount as a revenue or expense of the 
Balancing Pool.
(2)  The Balancing Pool must provide to the Minister any 
information respecting its calculations under section 5.2 or 5.3 that 
the Minister requests.

3   Section 8 is amended by striking out "June 30, 2021" and 
substituting "December 31, 2030".


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Alberta Regulation 192/2016
Public Sector Pension Plans Act
MANAGEMENT EMPLOYEES PESNION PLAN (2017 CONTRIBUTION 
RATE) AMENDMENT REGULATION
Filed: December 6, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 314/2016) 
on December 6, 2016 pursuant to Schedule 5, section 5 of the Public Sector Pension 
Plans Act. 
1   The Management Employees Pension Plan (AR 367/93) is 
amended by this Regulation.

2   Section 15(1) is amended by striking out "21.85%" and 
substituting "17.20%".

3   This Regulation comes into force on February 1, 2017.


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Alberta Regulation 193/2016
Pharmacy and Drug Act
PHARMACEUTICAL EQUIPMENT CONTROL REGULATION
Filed: December 6, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 319/2016) 
on December 6, 2016 pursuant to section 18.82 of the Pharmacy and Drug Act. 
Definitions
1   In this Regulation,
	(a)	"Act" means the Pharmacy and Drug Act;
	(b)	 "natural health product" means a natural health product as 
defined in the Natural Health Products Regulations 
SOR/2003-196.
Designated equipment
2   For the purposes of section 18.8 of the Act and this Regulation, 
	(a)	"capsule filling machine" means a mechanical or manual 
device that 
	(i)	holds capsules and facilitates their even filling with 
powders, granular solids, semi-solids, liquids or other 
substances,
	(ii)	may cap or close capsules, 
	(iii)	is marketed, designed or utilized for drug or natural 
health product use, and
	(iv)	has more than 100 capsule-holding cavities;
	(b)	"pharmaceutical mixer" means a mechanical or manual 
device that 
	(i)	mixes or blends liquids, semi-solid materials, powders, 
granular solids or any other substances to produce a 
homogenous product, and
	(ii)	is marketed, designed or utilized for drug or natural 
health product use, 
		but does not include a household appliance or device or a 
device intended for use by a non-pharmaceutical industry or 
business; 
	(c)	"pill or tablet press", "tablet machine" or "tablet punch" 
means a mechanical or manual device that
	(i)	compresses, compacts or molds powders, granular 
solids, semi-solids or other substances into solid tablets, 
pills or any other form of uniform size and weight, and 
	(ii)	is marketed, designed or utilized for drug or natural 
health product use; 
	(d)	"tablet die" means a device used to cut, shape or impress a 
design into a tablet or pill and is marketed, designed or 
utilized for drug or natural health product use.
Exemption 
3   The following are exempt from section 18.81(1) of the Act: 
	(a)	a person authorized to compound or manufacture natural 
health products under an Act or regulation of Alberta or 
Canada; 
	(b)	a person or museum who collects, sells or restores historical 
or reproduction designated equipment that is considered to be 
a historic object as defined under the Historical Resources 
Act. 
Coming into force
4   This Regulation comes into force on the coming into force of 
section 2 of the Pharmacy and Drug (Pharmaceutical Equipment 
Control) Amendment Act, 2016.


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Alberta Regulation 194/2016
Responsible Energy Development Act
SPECIFIED ENACTMENTS (JURISDICTION) 
AMENDMENT REGULATION
Filed: December 6, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 327/2016) 
on December 6, 2016 pursuant to section 26 of the Responsible Energy Development 
Act. 
1   The Specified Enactments (Jurisdiction) Regulation 
(AR 201/2013) is amended by this Regulation.

2   Section 6(1)(b) is amended by adding ", except in respect of 
an appeal of a notice of administrative penalty for an administrative 
penalty ordered under section 112 of the Mines and Minerals Act" 
after "the Act".

3   Schedule 3 is amended
	(a)	by renumbering section 1 as section 1.1 and by 
adding the following before section 1.1:
1   Mines and Minerals Act (Part 8)
	(a)	section 112.1.
	(b)	in section 1.1 by renumbering clause (a) as clause 
(b) and by adding the following before clause (b):
	(a)	section 12, in respect of an appeal of a notice of 
administrative penalty for an administrative penalty 
ordered under section 112 of the Mines and Minerals 
Act;

4   This Regulation comes into force on the coming into 
force of section 3(4), (7) and (8) of the Administrative 
Penalties and Related Matters Statutes Amendment Act, 
2002.


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Alberta Regulation 195/2016
Responsible Energy Development Act
RESPONSIBLE ENERGY DEVELOPMENT ACT GENERAL 
AMENDMENT REGULATION
Filed: December 6, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 328/2016) 
on December 6, 2016 pursuant to section 60 of the Responsible Energy Development 
Act. 
1   The Responsible Energy Development Act General 
Regulation (AR 90/2013) is amended by this Regulation.

2   Section 3.1 is repealed and the following is substituted:
Appealable decisions and eligible persons
3.1(1)  For the purposes of section 36(a)(v) of the Act, the 
imposition of an administrative penalty under the following 
provisions is an appealable decision:
	(a)	section 70 of the Act;
	(b)	section 112 of the Mines and Minerals Act.
(2)  For the purposes of section 36(b)(iii) of the Act, a person who is 
required to pay an administrative penalty under the following 
provisions is an eligible person:  
	(a)	section 70 of the Act;
	(b)	section 112 of the Mines and Minerals Act.

3   Section 8.3(3) is amended by striking out "71(4)(b)"and 
substituting "71(4)(c)".

4   This Regulation comes into force on the coming into 
force of section 3(4), (7) and (8) of the Administrative 
Penalties and Related Matters Statutes Amendment Act, 
2002.


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Alberta Regulation 196/2016
Electric Utilities Act
BALANCING POOL AMENDMENT REGULATION
Filed: December 7, 2016
For information only:   Made by the Minister of Energy (M.O. 132/2016) on 
December 7, 2016 pursuant to section 88 of the Electric Utilities Act. 
1   The Balancing Pool Regulation (AR 158/2003) is 
amended by this Regulation.

2   Section 1 is amended by adding the following after 
clause (d):
	(d.1)	"MSA" means the Market Surveillance Administrator 
continued under section 32 of the Alberta Utilities 
Commission Act;

3   The following is added after section 2(4):
(5)  If the Government settles a dispute with a party to an 
arrangement or derivative as to whether or not an extraordinary 
event has occurred, 
	(a)	subsections (1)(h) and (2) do not apply,
	(b)	the Balancing Pool, if it is not a party to the settlement, is 
bound by the settlement as if it were a party to the settlement,
	(c)	the Balancing Pool must implement the terms of the 
settlement that apply to it and that apply to the arrangement 
or derivative, and
	(d)	the Minister may give directions to the Balancing Pool with 
respect to the settlement, and the Balancing Pool must 
comply with those directions. 

3   The following is added after section 3:
Record sharing
3.1(1)  Subject to this section, the Balancing Pool may share records 
referred to in section 3(1) of the Fair, Efficient and Open 
Competition Regulation (AR 159/2009) with a person to enable that 
person to make offers in the Alberta electricity and ancillary services 
markets in respect of an arrangement that the Balancing Pool holds 
as a buyer.
(2)  The records referred to in subsection (1) include records with 
respect to the arrangement that relate to price, quantity and 
availability information
	(a)	for the committed capacity of the arrangement with respect to 
offers in the Alberta electricity and ancillary services 
markets, or 
	(b)	for any excess energy from the arrangement with respect to 
offers in the Alberta electricity and ancillary services 
markets.
(3)  Before the Balancing Pool shares the records with a person 
pursuant to subsection (1), the Balancing Pool shall file with the 
Commission and the MSA a draft order that sets out
	(a)	the arrangement to which the records relate,
	(b)	the person the Balancing Pool is sharing the records with, 
	(c)	the terms and conditions under which the records are being 
shared,
	(d)	the date the Balancing Pool intends to share the records, and 
	(e)	the date that the draft order terminates.
(4)  If the MSA objects to the draft order filed by the Balancing Pool 
under subsection (3), the MSA must file a notice of objection with 
the Commission and the Balancing Pool of the MSA's concerns no 
later than 5 days after the day the draft order is filed under 
subsection (3).
(5)  If no notice of objection is filed by the MSA under subsection 
(4), the Commission shall
	(a)	confirm the draft order, and 
	(b)	publish a notice of the draft order, which must include 
sufficient detail to allow a reasonable understanding of the 
nature of order. 
(6)  If the MSA files a notice of objection under subsection (3), the 
Commission 
	(a)	shall publish a notice of the draft order, and
	(b)	shall hold in private a hearing or other proceeding involving 
only the Balancing Pool and the MSA.
(7)  After holding the hearing or other proceeding, the Commission 
may, by order,
	(a)	approve the draft order,
	(b)	approve the draft order with any terms and conditions the 
Commission considers appropriate, or
	(c)	refuse to approve the draft order,
and shall publish a notice of the order and, in the opinion of the 
Commission, include sufficient detail to allow a reasonable 
understanding of the nature of the hearing or other proceeding and 
the findings of the Commission.
(8)  The Balancing pool and the persons with whom the records will 
be shared must comply with the draft order, if confirmed under 
subsection (5) or approved under subsection (7)(a) or (b), as 
applicable.



Alberta Regulation 197/2016
Oil and Gas Conservation Act
OIL AND GAS CONSERVATION RULES AMENDMENT REGULATION
Filed: December 8, 2016
For information only:   Made by the Alberta Energy Regulator on September 9, 2016 
pursuant to section 10 of the Oil and Gas Conservation Act. 
1   The Oil and Gas Conservation Rules (AR 151/71) are 
amended by this Regulation.

2   Section 1.020 is amended
	(a)	by adding following after definition 5.14.:
		5.14001.  "Directive 013" means Directive 013: Suspension 
Requirements for Wells;
	(b)	by repealing definition 28.1.

3   Section 3.020 is repealed and the following is 
substituted:
3.020(1)  A licensee shall suspend a well when required by and in 
accordance with Directive 013, or as otherwise directed by the 
Regulator.


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Alberta Regulation 198/2016
Fair Trading Act
DOOR-TO-DOOR (ENERGY SALES) AMENDMENT REGULATION
Filed: December 12, 2016
For information only:   Made by the Minister of Service Alberta (M.O. SA:029/2016) 
on December 6, 2016 pursuant to sections 12, 105 and 162(2) of the Fair Trading Act. 
Part 1 
Direct Selling Business Licensing Regulation
1(1)  The Direct Selling Business Licensing Regulation 
(AR 190/99) is amended by this Part.
(2)  Section 1 is amended by adding the following after 
clause (b):
	(b.1)	"energy audit" means an inspection, survey or assessment of 
the energy usage or efficiency of a home or any of its 
components;
(3)  The following is added after section 9:
Prohibited practices
9.1(1)  A direct selling business shall not solicit, negotiate or 
conclude a consumer transaction in person at a consumer's home for 
the following goods and services:
	(a)	furnaces;
	(b)	air conditioners;
	(c)	water heaters;
	(d)	windows;
	(e)	energy audits.
(2)  Subsection (1) does not apply if the consumer invites a direct 
selling business to attend at the consumer's home and the invitation 
complies with subsection (3).
(3)  An invitation by a consumer must be
	(a)	express,
	(b)	made
	(i)	by phone, e-mail, text or other electronic 
communication, 
	(ii)	through the direct selling business's website, or 
	(iii)	in person at the direct selling business's normal place of 
business or at such other place where the direct selling 
business is conducting business,
		and
	(c)	made before the direct selling business attends at the 
consumer's home.
(4)  A direct selling business who has been invited to attend in 
person at a consumer's home to perform an energy audit shall not 
solicit, negotiate or conclude a consumer transaction for the supply 
of any of the goods and services referred to in subsection (1) while 
attending in person at the consumer's home.
(5)  For the purpose of this section, a direct selling business is 
attending in person at a consumer's home if any employee, 
representative, agent or contractor of the direct selling business 
attends at the consumer's home.
(4)  Section 10 is repealed and the following is substituted:
Offences
10   A contravention of section 2(4), 9 or 9.1(1) or (4) is, for the 
purposes of section 162 of the Act, an offence.
Unfair practice
10.1   A contravention of section 9.1(1) or (4) is an unfair practice.
Part 2 
Energy Marketing and Residential Heat 
Sub-metering Regulation
2(1)  The Energy Marketing and Residential Heat 
Sub-metering Regulation (AR 246/2005) is amended by this 
Part.
(2)  Section 19 is amended
	(a)	in subsection (2) by renumbering clause (a) as 
clause (a.1) and by adding the following before 
clause (a.1):
	(a)	except in accordance with subsection (5), a marketer 
must not solicit, negotiate or conclude a marketing 
contract in person at a consumer's home;
	(b)	in subsection (4) by striking out "Subsection (2)(a)" 
and substituting "Subsection (2)(a.1)".
	(c)	by adding the following after subsection (4):
(5)  A marketer  may solicit, negotiate or conclude a marketing 
contract in person at a consumer's home if the consumer 
invites the marketer to attend at the consumer's home and the 
invitation is
	(a)	express,
	(b)	made
	(i)	by phone, e-mail, text or other electronic 
communication,
	(ii)	through the marketer's website, or
	(iii)	in person at the marketer's normal place of 
business or at such other place where the marketer 
is conducting business,
			and
	(c)	made before the marketer attends at the consumer's 
home.
(3)  The following is added after section 21:
Unfair practice
21.1   A contravention of section 19(2)(a) is an unfair practice.
Part 3 
Prepaid Contracting Business 
Licensing Regulation
3(1)  The Prepaid Contracting Business Licensing 
Regulation (AR 185/99) is amended by this Part.
(2)  Section 1 is amended by adding the following after 
clause (a):
	(a.1)	"energy audit" means an inspection, survey or assessment of 
the energy usage or efficiency of a home or any of its 
components;
(3)  The following is added after section 8:
Prohibited practices
8.1(1)  A prepaid contracting business shall not solicit, negotiate or 
conclude a prepaid contract at a consumer's home for the following 
goods and services: 
	(a)	furnaces;
	(b)	air conditioners;
	(c)	water heaters; 
	(d)	windows; 
	(e)	energy audits.
(2)  Subsection (1) does not apply if the consumer invites a prepaid 
contracting business to attend at the consumer's home and the 
invitation complies with subsection (3).
(3)  An invitation by a consumer must be 
	(a)	express, 
	(b)	made
	(i)	by phone, e-mail, text or other electronic 
communication, 
	(ii)	through the direct selling business's website, or 
	(iii)	in person at the direct selling business's normal place of 
business or at such other place where the direct selling 
business is conducting business,
		and
	(c)	made before the direct selling business attends at the 
consumer's home.
(4)  A prepaid contracting business who has been invited to attend in 
person at a consumer's home to perform an energy audit shall not 
solicit, negotiate or conclude a consumer transaction for the supply 
of any of the goods and services referred to in subsection (1) while 
attending in person at the consumer's home.
(5)  For the purpose of this section, a prepaid contracting business is 
attending in person at a consumer's home if any employee, 
representative, agent or contractor of the prepaid contracting 
business attends at the consumer's home.
(4)  Section 11 is repealed and the following is substituted:
Offences
11   A contravention of section 2(4), 8.1(1) or (4), 9 or 10 is, for 
the purposes of section 162 of the Act, an offence.
Unfair practice
11.1   A contravention of section 8.1(1) or (4) is an unfair 
practice.
Part 4 
Coming into Force
4   This Regulation comes into force on January 1, 2017.


Alberta Regulation 199/2016
Marketing of Agricultural Products Act
REVIEW AND APPEAL REGULATION
Filed: December 12, 2016
For information only:   Made by the Minister of Agriculture and Forestry 
(M.O. 035/2016) on December 7, 2016 pursuant to section 43.1 of the Marketing of 
Agricultural Products Act. 
Table of Contents
	1	Definitions
Part 1 
Reviews
	2	Application for review
	3	Conducting a review
	4	Timing of the review
	5	Refusal to hear
	6	Adjournments
	7	Right of applicant to attend
	8	Evidence
	9	Failure to appear
	10	Review decisions
Part 2 
Appeals
	11	Appeal
	12	Conducting the appeal
	13	Timing of the appeal hearing
	14	Refusal to refer
	15	Adjournments
	16	Chair may act
	17	Right of parties to attend
	18	Evidence
	19	Witnesses 
	20	Failure to appear
	21	Rules of Court
	22	Refusal to hear


	23	Appeal decisions
	24	Cost recovery
Part 3  
Appeal Tribunal
	25	Appointment of appeal tribunal
	26	Appointment to hear appeal
	27	Remuneration
Part 4  
Transitional Provisions,  
Repeal and Expiry
	28	Transitional
	29	Repeal
	30	Expiry
Definitions
1   In this Regulation,
	(a)	"Act" means the Marketing of Agricultural Products Act;
	(b)	"appeal" means an appeal under section 36(2) of the Act of a 
decision of a board or commission made pursuant to a review 
under section 36(1) of the Act;
	(c)	"decision maker" means the board, commission or the 
Council whose decision is subject to an application for 
review;
	(d)	"party" means the applicant and the board or commission 
whose decision is being appealed;
	(e)	"review" means a review of a decision of a board, 
commission or the Council as provided for under section 
36(1) of the Act. 
Part 1 
Reviews
Application for review
2   An application for review must, as set out in section 36(1) of the 
Act, be received by the decision maker within 60 days from the day the 
applicant was notified of the decision or served with the decision, 
whichever is earlier, and must 
	(a)	be in writing,
	(b)	identify the decision that is being reviewed,
	(c)	state why the decision should be rescinded or varied,
	(d)	state the outcome requested,
	(e)	state whether the applicant 
	(i)	is requesting an oral hearing, or 
	(ii)	consents to complete the review solely on the basis of 
written submissions,
	(f)	provide the applicant's name, address and telephone number 
and, if available, the applicant's email address, 
	(g)	if the applicant has an agent to act on the applicant's behalf 
in respect of the review, provide the agent's name, a 
telephone number at which the agent may be contacted 
during regular business hours and, if available, the agent's 
email address,
	(h)	provide a mailing address and, if available, an email address 
for the delivery of notices in respect of the review, and
	(i)	be signed by the applicant or the applicant's agent.
Conducting a review
3(1)  Subject to section 5, if an application for review has been 
received by a decision maker, the decision maker must hold a review.
(2)  A review may be conducted solely on the basis of written 
submissions if the applicant consents.
(3)  The decision maker must determine the time and place of a review 
and provide written notice to the applicant.
Timing of the review
4   Subject to section 5, 
	(a)	if an oral hearing is required, a review must be held by the 
decision maker within 60 days of receiving the review 
application, and 
	(b)	if the applicant has consented to complete the review solely 
on the basis of written submissions
	(i)	the written submissions must be received by the 
decision maker within 30 days of receiving the review 
application and consent, and
	(ii)	a review must be held by the decision maker within 30 
days of receiving the written submissions.
Refusal to hear
5(1)  The decision maker may refuse to conduct a review if the 
decision maker considers the review to be trivial or not made in good 
faith.
(2)  If the decision maker refuses to conduct a review, the decision 
maker must provide a written notice that sets out the reasons for 
refusal to the applicant within 30 days of receiving the application for 
the review.
Adjournments
6(1)  The granting and duration of an adjournment is in the sole 
discretion of the decision maker.
(2)  The time limits prescribed in sections 4 and 9 do not run during a 
period of adjournment.
Right of applicant to attend
7   The applicant has the right to attend the review, make 
representations, present evidence and cross-examine witnesses.
Evidence
8(1)  The decision maker may receive any evidence that it considers 
relevant to the matter being reviewed.
(2)  The rules of evidence that apply in judicial proceedings do not 
apply in a review.
Failure to appear
9   If a review is being held in person and the applicant fails to appear 
for the review within one hour from the time set out in the applicable 
notice or adjournment, the decision maker may
	(a)	dismiss the review,
	(b)	adjourn the review, or 
	(c)	conduct the review in the applicant's absence.
Review decisions
10(1)  The decision maker may, on completion of a review, confirm, 
rescind or vary the decision being reviewed.
(2)  The decision maker must provide a written decision, with reasons, 
within 30 days of the completion of the review to the applicant.
Part 2 
Appeals
Appeal
11(1)  An application for appeal must, as set out in section 36(2) of the 
Act, be received by the appeal tribunal within 60 days from the day the 
party requesting the review was served with the review decision, and 
must 
	(a)	be in writing,
	(b)	identify the review decision that is being appealed,
	(c)	state why the review decision should be rescinded,
	(d)	state the outcome requested,
	(e)	state whether the applicant 
	(i)	is requesting an oral appeal hearing, or 
	(ii)	consents to complete the appeal hearing solely on the 
basis of written submissions,
	(f)	provide the appellant's name, mailing address and telephone 
number and, if available, the appellant's email address,
	(g)	if the appellant has an agent to act on the appellant's behalf 
in respect of the review, provide the agent's name, a 
telephone number at which the agent may be contacted 
during regular business hours and, if available, the agent's 
email address,
	(h)	provide a mailing address and, if available, an email address 
for delivery of notices in respect of the appeal, and 
	(i)	be signed by the appellant or the appellant's agent. 
(2)  The appeal tribunal must provide a copy of the application for 
appeal
	(a)	to the board or commission whose review decision is being 
appealed, and
	(b)	to the Minister.
(3)  The board or commission whose review decision is being appealed 
must, within 15 days of the date when the application for appeal was 
provided, state in writing whether the board or commission
	(a)	is requesting an oral appeal hearing, or 
	(b)	consents to complete the appeal hearing solely on the basis of 
written submissions.
Conducting the appeal 
12(1)  Subject to section 14, if an application for appeal has been 
received by the appeal tribunal, the application for appeal must be 
referred to a panel appointed in accordance with section 26(1)(a).
(2)  An appeal hearing may be conducted solely on the basis of written 
submissions if the parties consent.
(3)  The panel must determine the time and place of the appeal hearing 
and provide written notice to
	(a)	the parties,
	(b)	the Minister, and 
	(c)	the Council.
Timing of the appeal hearing
13   Subject to section 14, 
	(a)	if an oral appeal hearing is required, the panel must conduct 
the appeal hearing within 120 days of the date when the 
application for appeal was received by the appeal tribunal, 
and
	(b)	if the parties have consented to complete the appeal solely on 
the basis of written submissions,
	(i)	the written submissions must be received by the panel 
within 30 days of the date when the panel received the 
application for appeal and consent, and
	(ii)	the appeal hearing must be held within 90 days of the 
date when the written submissions were received by the 
appeal tribunal.
Refusal to refer
14(1)  The chair of the appeal tribunal may refuse to refer an 
application for appeal to a panel for hearing
	(a)	if the chair of the appeal tribunal considers the application for 
appeal to be trivial or not made in good faith, or 
	(b)	if the application for appeal does not satisfy the requirements 
set out in section 11(1).
(2)  If the chair of the appeal tribunal refuses to refer an application for 
appeal for hearing, the chair of the appeal tribunal must provide a 
written notice that sets out the reasons for refusal to the appellant 
within 30 days of receiving the application for appeal.
Adjournments
15(1)  The granting and duration of an adjournment is in the sole 
discretion of the panel.
(2)  The time limits prescribed in sections 13 and 20 do not run during 
a period of adjournment.
Chair may act
16(1)  The chair of the tribunal may exercise a power or perform a 
duty of the tribunal under section 11(2) or 12(1).
(2)  The chair of a panel may exercise a power of the panel under 
sections 12(3) and 15.
Right of parties to attend
17   A party to an appeal has the right to attend the appeal hearing, 
make representations, present evidence and cross-examine witnesses.
Evidence
18(1)  A panel may receive any evidence that it considers relevant to 
the matter being appealed.
(2)  The rules of evidence that are applicable to judicial proceedings do 
not apply in an appeal.
(3)  A record of the appeal hearing must be made and maintained as 
required by the Minister and must include
	(a)	a written or electronic record of oral evidence, and 
	(b)	all records or things received in evidence.
Witnesses
19(1)  A panel has the powers vested in the Court of Queen's Bench in 
a civil action to
	(a)	summon and enforce the attendance of a witness,
	(b)	compel a witness to give evidence on oath or otherwise, and
	(c)	compel a witness to produce any record or thing.
(2)  Subsection (1) does not apply to a member of the Council or an 
employee under the Council's administration.
Failure to appear
20   If an appeal hearing is being held in person and the appellant fails 
to appear for the appeal hearing within one hour from the time set out 
in the applicable notice or adjournment, the panel may
	(a)	dismiss the appeal,
	(b)	adjourn the appeal, or
	(c)	conduct the appeal hearing in the appellant's absence.
Rules of Court
21   The provisions of the Alberta Rules of Court relating to the 
payment of conduct money and witness fees apply.
Refusal to hear
22(1)  The panel may, at any time following the referral of an 
application for appeal, refuse to hear the appeal
	(a)	if the panel considers the application for appeal to be trivial 
or not made in good faith, or 
	(b)	if the application for appeal does not satisfy the requirements 
set out in section 11(1).
(2)  If the panel refuses to hear an application for appeal, the chair of 
the panel must provide a written notice that sets out the reasons for 
refusal to the appellant within 30 days of the refusal.
Appeal decisions
23(1)  The panel may, on completion of an appeal hearing,
	(a)	confirm the decision being appealed, or
	(b)	rescind the decision being appealed and refer the matter 
being appealed back to the relevant decision maker with or 
without recommendations.
(2)  The panel must provide a written decision, with reasons, within 30 
days of the completion of the appeal hearing to
	(a)	the parties, 
	(b)	the Council, and
	(c)	the Minister.
(3)  The Minister may publish an appeal decision.
Cost recovery
24(1)  The appeal tribunal may recover the cost of administering and 
hearing an appeal, including the costs for legal counsel for the appeal 
tribunal.
(2)  The total costs assessed by the appeal tribunal under subsection
(1) is a debt owing to the Government of Alberta as follows:
	(a)	for the first day of the hearing, 35% is owed by each party;
	(b)	for every other day of the hearing, 50% is owed by each 
party.
(3)  The Minister may, on the request of a party, waive payment, in 
whole or in part, of the costs recovered under subsection (1).
Part 3 
Appeal Tribunal
Appointment of appeal tribunal
25(1)  The Minister must establish an appeal tribunal.
(2)  The appeal tribunal must consist of at least 5 members.
(3)  The term of an appointment to the appeal tribunal is 3 years.
(4)  A person who has been appointed to an appeal tribunal for 2 
consecutive terms is not eligible to be appointed to the appeal tribunal 
until one year has passed since the expiration of the 2nd consecutive 
term.
(5)  Despite subsections (2) and (3), the Minister may appoint 
additional persons to the appeal tribunal to hear a single appeal and 
that appointment shall not be considered as a term for the purpose of 
subsection (4).
(6)  The Minister must designate one member of the appeal tribunal as 
the chair and another member as the vice-chair of the appeal tribunal.
(7)  The chair of the appeal tribunal must perform the responsibilities 
imposed on, and may exercise the powers given to, the chair by this 
Regulation.
(8)  If the chair is absent or unable to act for any reason or if the 
position of chair is vacant, the vice-chair must act as chair and, while 
so acting, must perform all the responsibilities imposed on, and may 
exercise all the powers given to, the chair.
(9)  In accordance with the Public Service Act, there may be appointed 
employees to provide administrative services in respect of appeals.
(10)  A member of the Council or an employee under the Council's 
administration is not eligible to be an appeal tribunal member.
Appointment to hear appeal
26(1)  When an application for an appeal is received by the appeal 
tribunal, the chair of the appeal tribunal or, in the absence or inability 
to act of the chair, the vice-chair must 
	(a)	appoint an appeal panel consisting of 3 members of the 
appeal tribunal to hear the appeal, and
	(b)	appoint one of the 3 members as chair.
(2)  If the chair is a member of a panel under subsection (1), he or she 
must designate himself or herself as chair of the panel for the purposes 
of subsection (1).
(3)  If the vice-chair is a member of a panel under subsection (1) and 
the chair is not a member of the panel, the vice-chair must designate 
himself or herself as chair of the panel for the purposes of subsection 
(1).
(4)  If a panel is established under subsection (1) and neither the chair 
nor the vice-chair is designated as a member of the panel, the chair or 
vice-chair, as the case may be, must designate one of the members of 
the panel as chair.
Remuneration
27   The Minister may determine the remuneration and expenses 
payable to members of the appeal tribunal.
Part 4 
Transitional Provisions, 
Repeal and Expiry
Transitional
28(1)  The designation of a person who immediately before the 
coming into force of this Regulation was a member, chair or vice-chair 
of the appeal tribunal under the Review and Appeal Regulation 
(AR 84/2010) shall continue in force as if the person had been 
designated under section 25 of this Regulation.
(2)  A notice, adjournment, referral, refusal or any other thing done in 
the course of a review or appeal under the Review and Appeal 
Regulation (AR 84/2010) before this Regulation came into force is 
considered to have been made or done under this Regulation and to 
have the same effect under this Regulation as under the former 
Regulation. 
(3)  This Regulation applies to an application for review submitted in 
accordance with the Review and Appeal Regulation (AR 84/2010) that 
has not been concluded.
(4)  If, before the coming into force of this Regulation, a decision 
maker as defined in the Review and Appeal Regulation (AR 84/2010) 
has received an appeal for hearing in accordance with that Regulation, 
the decision maker must complete the appeal hearing and provide an 
appeal decision as if the former Review and Appeal Regulation 
(AR 84/2010) was still in force. 
Repeal
29   The Review and Appeal Regulation (AR 84/2010) is repealed.
Expiry
30   For the purpose of ensuring that this Regulation is reviewed for 
ongoing relevancy and necessity, with the option that it may be 
repassed in its present or an amended form following a review, this 
Regulation expires on November 30, 2024.



Alberta Regulation 200/2016
Environmental Protection and Enhancement Act
MERCURY EMISSIONS FROM COAL-FIRED POWER PLANTS 
(EXPIRY DATE EXTENSION) AMENDMENT REGULATION
Filed: December 12, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 326/2016) 
on December 6, 2016 and jointly with the Minister of Environment and Parks 
(M.O. 55/2016) on December 6, 2016 pursuant to sections 85, 86, 122 and 239 of the 
Environmental Protection and Enhancement Act. 
1   The Mercury Emissions from Coal-fired Power Plants 
Regulation (AR 34/2006) is amended by this Regulation.

2   Section 13 is amended by striking out "December 31, 2016" 
and substituting "December 31, 2021".


--------------------------------
Alberta Regulation 201/2016
Assured Income for the Severely Handicapped Act
APPLICATIONS AND APPEALS (MINISTERIAL)  
AMENDMENT REGULATION
Filed: December 12, 2016
For information only:   Made by the Minister of Human Services (M.O. 2016-32) on 
December 12, 2016 pursuant to section 12(2) of the Assured Income for the Severely 
Handicapped Act. 
1   The Applications and Appeals (Ministerial) Regulation 
(AR 89/2007) is amended by this Regulation.

2   Section 3 is repealed.

3   This Regulation comes into force on the coming into 
force of the Agencies, Boards and Commissions Review 
Statutes Amendment Act.




 

Alberta Regulation 202/2016
Persons with Developmental Disabilities Services Act
PERSONS WITH DEVELOPMENTAL DISABILITIES 
SERVICES AMENDMENT REGULATION
Filed: December 12, 2016
For information only:   Made by the Minister of Human Services (M.O. 2016-33) on 
December 12, 2016 pursuant to section 23 of the Persons with Developmental 
Disabilities Services Act. 
1   The Persons with Developmental Disabilities Services 
Regulation (AR 228/2013) is amended by this Regulation.

2   Section 5 is amended
	(a)	by repealing subsection (2);
	(b)	by repealing subsection (3) and substituting the 
following:
(3)  The Minister must set a date for hearing the appeal,
	(a)	within 45 days after a proper notice of appeal has been 
received, or
	(b)	within 30 days after mediation has ended and a proper 
notice of appeal has been received.

3   This Regulation comes into force on the coming into 
force of the Agencies, Boards and Commissions Review 
Statutes Amendment Act.

Alberta Regulation 203/2016
Investing in a Diversified Alberta Economy Act
ALBERTA INVESTOR TAX CREDITS REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 332/2016) 
on December 13, 2016 pursuant to section 55 of the Investing in a Diversified Alberta 
Economy Act, 
Table of Contents
	1	Definitions and interpretation
	2	Equity share - prescribed rights
	3	Eligible business corporation - permitted share transfers
	4	Minimum capital requirements
	5	Additional conditions for registration
	6	Register to contain additional information
	7	Calculation period
	8	Deemed amount of investment
	9	Small business - number of employees
	10	Prescribed percentage of wages
	11	Determination of wages and salaries
	12	Business activities
	13	Prescribed aggregate amount
	14	Annual expense limits
	15	Calculation re section 20(9) of the Act
	16	Additional conditions for tax credit certificates
	17	Notice to Minister
	18	Prescribed amount
	19	Fair market value


	20	Other prohibited investments
	21	Other permitted investments
	22	Permitted investment in a security
	23	Reporting requirements
	24	Cancellation of tax credit certificate
	25	Coming into force
Definitions and interpretation
1(1)  In this Regulation, "Act" means the Investing in a Diversified 
Alberta Economy Act.
(2)  In the Act and this Regulation,
	(a)	"cash" and "money" mean lawful currency of Canada; 
	(b)	"common interest group", in relation to a corporation, means 
2 or more persons, whether or not associated or affiliated, 
who, pursuant to an agreement, commitment or 
understanding, exercise, or intend to exercise, in concert, any 
rights attached to or associated with their shares.
(3)  A shareholder who is receiving, or is proposed to receive, any fees 
or remuneration from the corporation or whose associate or affiliate is 
receiving, or is proposed to receive, any fees or remuneration from the 
corporation is deemed to be not entitled to vote in person or by proxy 
at a general meeting in respect of an ordinary resolution to approve or 
ratify the payment of any fees or remuneration by the corporation.
(4)  A debt instrument that meets all of the following criteria is hereby 
prescribed as an investment that is an eligible investment for the 
purposes of the definition of "eligible investment" in section 2(1)(h) of 
the Act:
	(a)	if the debt instrument is secured by property, the property has 
a value that does not exceed 50% of the amount of the 
indebtedness under the debt instrument at the time of the 
investment;
	(b)	the debt instrument does not
	(i)	restrict the borrower from incurring other indebtedness, 
or
	(ii)	penalize the borrower for incurring other indebtedness;
	(c)	the outstanding balance from time to time under the debt 
instrument bears interest at a rate not exceeding 12% per 
annum, calculated semi-annually not in advance;
	(d)	the debt instrument will be converted within 18 months after 
its issuance into one or more equity shares issued by a small 
business.
(5)  A limited partnership that meets all of the following criteria is 
hereby prescribed as a limited partnership unit for the purposes of 
section 12(1)(d)(iv) of the Act:
	(a)	the limited partnership unit is issued by a limited partnership 
that
	(i)	is formed under section 52 of the Partnership Act,
	(ii)	has not received money as an investment from the 
Alberta Enterprise Corporation,
	(iii)	is managed by a general partner who, if an individual, 
resides in Alberta or, if a corporation, has a permanent 
establishment, as defined in the Alberta Corporate Tax 
Act, in Alberta,
	(iv)	within the same period as that prescribed under section 
10(2)(a) of the Act will make eligible investments in 
small businesses in amounts that, in total, are at least 
twice the amounts, in total, that the limited partnership 
has received from a venture capital corporation as 
investments made by it under section 12 of the Act, and
	(v)	will keep the eligible investments described in 
subclause (iv) for at least the same period as that 
prescribed under section 10(2)(b) of the Act;
	(b)	the venture capital corporation investing in a limited 
partnership by acquiring the limited partnership unit as a 
limited partner has satisfied the Minister through agreements 
to which the venture capital corporation is a party, or by 
other documentary evidence, that
	(i)	the venture capital corporation, or
	(ii)	any of its shareholders or their associates
		will not claim, take advantage of or otherwise avail itself, 
himself or herself of any benefits, rights or entitlements, 
including, but not limited to, any benefits, rights or 
entitlements that are or may be available under the federal 
Act, for the purpose of reducing the impact of any loss the 
venture capital corporation or a shareholder may sustain in 
holding or disposing of the limited partnership unit.
(6)  For the purposes of section 16 of the Act, amounts received 
indirectly by a small business from venture capital corporations 
include amounts received by an affiliate of the small business from 
venture capital corporations.
Equity share - prescribed rights
2(1)  Subject to the Act, prescribed rights and restrictions, for the 
purposes of the definition of "equity share" in section 2(1)(k) of the 
Act, are rights and restrictions attached to the share or rights and 
restrictions contained in or forming part of an agreement, commitment 
or understanding in respect of the share that
	(a)	create a debt between the holder or beneficial owner of the 
share and any other person,
	(b)	impair or will impair the ability of a venture capital 
corporation to maintain the levels of equity capital invested 
in eligible investments required by section 10 of the Act,
	(c)	impair or will impair the ability of a corporation, in which a 
venture capital corporation has made an eligible investment, 
to carry on an ongoing business with a reasonable 
expectation of profit, or
	(d)	will entitle the holder or beneficial owner of the share to 
reduce the impact of any loss the holder or beneficial owner 
will sustain in holding or disposing of the share.
(2)  Notwithstanding subsection (1), prescribed rights and restrictions 
do not include rights and restrictions that become operative upon the 
death, permanent disability, bankruptcy or other similar hardship of a 
shareholder of the venture capital corporation or the small business in 
which the venture capital corporation makes an eligible investment if 
that shareholder is a party to a contract with the venture capital 
corporation or the small business.
(3)  For the purpose of subsection (2), "similar hardship" means a 
hardship that, in the opinion of the Minister, warrants overriding the 
considerations referred to in subsection (1).
Eligible business corporation - permitted share transfers
3   The following circumstances are prescribed for the purposes of 
section 42(6)(b) of the Act:
	(a)	the share transfer is a direct share transfer by the purchaser to 
the purchaser's retirement savings plan, tax-free savings 
account or registered retirement income fund;
	(b)	the share transfer is a direct share transfer by the purchaser to 
a spousal retirement savings plan or spousal registered 
retirement income fund;
	(c)	the share transfer is a share transfer to an executor or estate 
due to the death of a purchaser;
	(d)	the share transfer occurs as the result of a company share 
exchange right, share reorganization, acquisition or 
amalgamation and
	(i)	the eligible business corporation remains registered 
under section 34 of the Act, and
	(ii)	the registered owner of the share is the same after the 
share transfer takes place;
	(e)	the share transfer occurs as the result of the exercise of a 
warrant, option or right entitling the holder to purchase or 
acquire an equity share of an eligible business corporation as 
defined in section 2(1)(k) of the Act, and the registered 
owner of the equity share so purchased or acquired is the 
same as the registered holder of the warrant, option or right.
Minimum capital requirements
4(1)  For the purposes of section 10(2)(a) of the Act, a venture capital 
corporation must have invested in eligible investments
	(a)	an amount at least equal to 40% of the equity capital it has 
raised during any fiscal year, by the end of its first following 
fiscal year, and
	(b)	an amount at least equal to 80% of the equity capital it has 
raised during any fiscal year, by the end of its second 
following fiscal year.
(2)  For the purposes of section 10(2)(b) of the Act, a venture capital 
corporation must keep the amounts referred to in subsection (1) 
invested in eligible investments for at least 5 years after the date of the 
applicable investment.
(3)  An amount referred to in subsection (1)(a) or (b) is reduced by the 
amount of any dividend paid from the venture capital corporation to its 
shareholders if the dividend is not one that is paid from the venture 
capital corporation's
	(a)	net income, or
	(b)	retained earnings
calculated in accordance with generally accepted accounting 
principles.
Additional conditions for registration
5(1)  The articles of a corporation applying for registration under the 
Act must provide that fees or remuneration of any kind to any 
shareholder, director or officer of the corporation, or to any affiliate or 
associate of those persons, are prohibited except as permitted by an 
annual ordinary resolution.
(2)  It is a requirement under section 4(f) of the Act that the articles of 
the venture capital corporation state that a majority of the directors of 
the corporation must be ordinarily resident in Alberta.
(3)  It is a requirement under section 4(f) of the Act that the articles of 
the venture capital corporation state that on registration of the 
corporation under the Investing in a Diversified Alberta Economy Act 
the corporation is subject to the Investing in a Diversified Alberta 
Economy Act.
(4)  It is a requirement under section 35(1)(e) of the Act that the small 
business does not receive direct or indirect investment from the 
Alberta Enterprise Corporation after the coming into force of this 
section.
Register to contain additional information
6   In addition to the information referred to in section 6(3) of the Act, 
the register of venture capital corporations must also include the 
following information:
	(a)	the principal place of business of the venture capital 
corporation;
	(b)	the total amount of equity capital approved under section 11 
of the Act;
	(c)	the amount of equity capital, to the knowledge of the 
Minister, that the venture capital corporation has raised;
	(d)	the amount that the venture capital corporation has, to the 
knowledge of the Minister, invested in eligible investments.
Calculation period
7(1)  For the purposes of sections 9, 11 and 12, "calculation period" 
means
	(a)	where a small business or affiliate of a small business has 
been in business for a period of less than one year as at the 
date of the calculation, that entire period, or
	(b)	where a small business or affiliate of a small business has 
been in business for one year or longer, the 52 weeks just 
ended at the date of the calculation.
(2)  For the purpose of applying the formulas in sections 9, 11 and 12 
to determine whether a proposed investment by a venture capital 
corporation in a small business is an eligible investment, the 
calculation period ends immediately before the venture capital 
corporation proposes to make the investment.
Deemed amount of investment
8(1)  For the purposes of section 10(2) of the Act, the amount of equity 
capital invested by a venture capital corporation in an eligible 
investment is deemed to be zero as at the date the investment was 
made if an agreement, commitment or understanding in respect of that 
investment may result in the acquisition of that investment from the 
venture capital corporation within 5 years or such shorter time as the 
Minister specifies.
(2)  Subsection (1) does not apply with respect to an agreement, 
commitment or understanding authorizing the acquisition of the 
investment on the death, permanent disability, bankruptcy or similar 
hardship of a shareholder of the venture capital corporation or the 
small business in which the venture capital corporation makes an 
eligible investment if that shareholder is a party to a contract with the 
venture capital corporation or the small business.
(3)  For the purposes of subsection (2), "similar hardship" means a 
hardship that, in the opinion of the Minister, warrants overriding 
subsection (1).
Small business - number of employees
9(1)  The number of employees of a corporation must be calculated, at 
the option of the venture capital corporation or the eligible business 
corporation, in accordance with either of the following formulas:
	(a)	Number of Employees = Total Hours  
                                            40 x w  
 
where
Total Hours = the total hours worked by all employees each 
of whom worked for at least 20 hours (counting all time 
worked by each employee whether for the small business, 
any of its affiliates or both) during any week of the 
calculation period;
w = the number of weeks in the calculation period;
	(b)	Number of Employees  =  Employee Costs x 52  ö 57 000 
                                                          w 
 
where
Employee Costs = all amounts paid or payable by the small 
business to or on behalf of employees for work performed or 
services provided by them during the calculation period; 
w = the number of weeks in the calculation period.
(2)  For the purpose of sections 12(1)(a) and 35(1)(a) of the Act, the 
number of employees of a small business together with its affiliates, is 
the sum of the number of employees calculated pursuant to subsection 
(1) of this section for the small business and each of its affiliates.
Prescribed percentage of wages
10   For the purposes of sections 12(1)(b) and 35(1)(b) of the Act, the 
percentage of wages in Alberta is
	(a)	in the case of a small business engaged in the export of goods 
from Alberta or in the provision of services outside Alberta, 
at least 50%, and 
	(b)	in the case of all other small businesses, at least 75%.
Determination of wages and salaries
11   The percentage of wages and salaries that are paid to employees 
of a corporation or corporations for the purposes of sections 12(1)(b) 
and 35(1)(b) of the Act must be determined in accordance with the 
following formula:
Percentage of wages and salaries =  Wages (AB)  x 100 
                                                          Total Wages 
 
where
Wages (AB) = the total remuneration that was paid to employees, 
of the corporation or corporations, who regularly reported to work 
at operations located in Alberta during the calculation period;
Total Wages = the total remuneration that was paid to all 
employees, of the corporation or corporations, during the 
calculation period.
Business activities
12(1)  The following are business activities for the purposes of 
sections 11(c), 12(1)(c) and 37(3) of the Act:
	(a)	the development and operation of a destination tourist resort, 
a tourist attraction or a tourist service, if 
	(i)	50% or more of the gross revenue of the resort, 
attraction or service is derived from tourists, and
	(ii)	the resort, attraction or service is located outside a 
national park of Canada;
	(b)	the research, development and commercialization of 
proprietary technologies produced within Alberta including 
services that are directly associated with the export of the 
technology and are provided inside or outside of Alberta;
	(c)	the development within Alberta for commercial use of 
interactive digital media or video game product that
	(i)	responds to user interactions with moving images, 
animation, video or audio, and
	(ii)	is not, based on inquiries the Minister considers 
adequate and appropriate, a product for which public 
financial support would be contrary to public policy;
	(d)	the development and delivery within Alberta of 
post-production services including
	(i)	the development of visual effects and digital animation 
for commercial use, and
	(ii)	the editing of video and audio, subtitling, closed caption 
and the creation and editing of visual and sound effects,
		other than post-production services that, in the Minister's 
opinion, are directly associated with a product for which 
public financial support would be contrary to public policy.
(2)  Despite subsection (1), a business activity prescribed under 
subsection (1) does not include
	(a)	exploration or extraction of minerals or the operation of a 
mine unless those activities are carried on by a small business 
that is substantially engaged in the activities referred to in 
subsection (1)(b),
	(b)	financial services such as providing loans, selling insurance 
or real estate or trading in securities,
	(c)	property management or the rental or leasing of land or 
improvements,
	(d)	the development of or improvement to land,
	(e)	agricultural activities other than non-traditional agricultural 
activities such as
	(i)	specialized small crops, livestock and poultry 
production, or
	(ii)	high technology enterprises,
	(f)	retail and commercial services other than services referred to 
in subsection (1)(a) that are provided by a small business that 
derives more than 50% of its gross revenue from the 
provision of services to tourists, 
	(g)	restaurant or food services, or 
	(h)	the lease of tangible or intangible personal property to a 
person for the person's personal consumption or use.
(3)  The Minister may exercise his or her discretion to the extent 
required in reaching a conclusion that a business activity is one 
prescribed under subsection (1) or (2).
(4)  For the purposes of sections 12(1)(c), 35(1)(c) and 37(3) of the 
Act, a small business is substantially engaged in a business activity 
prescribed under subsection (1)
	(a)	if the result obtained from the following formula is greater 
than 0.5:
Activity Assets + Activity Expenses 
     Total Assets + Total Expenses  
 
where, for the purposes of this clause,
Activity Assets = the value of assets of the small business 
used in Alberta in the business activity;
Total Assets = the total value of all assets of the small 
business;
Activity Expenses = all expenses incurred during the 
calculation period with respect to the portion of the 
business activity carried on in Alberta;
Total Expenses = the total of all expenses incurred during 
the calculation period with respect to all operations of the 
small business, 
	(b)	if the small business's permanent establishment, as defined in 
the Alberta Corporate Tax Act, is in Alberta, and
	(c)	if not more than 20% of the small business's assets are 
located outside of Alberta.
(5)  For the purpose of the calculation in subsection (4)(a), the value of 
assets and expenses must be determined in accordance with generally 
accepted accounting principles.
Prescribed aggregate amount
13(1)  For the purposes of section 16(1)(a) of the Act, the prescribed 
amount is $10 million.
(2)  For the purposes of section 16(1)(b) of the Act,
	(a)	the prescribed amount is $10 million, and
	(b)	the prescribed period is the previous 2 years.
Annual expense limits
14(1)  A venture capital corporation may incur annual expenses of no 
more than 20% of its equity capital raised under section 11 of the Act, 
other than expenses paid out of retained earnings, if
	(a)	the expenses are reasonable and are incurred for
	(i)	share issuance,
	(ii)	office occupancy,
	(iii)	legal fees,
	(iv)	preparation of financial accounts by an external 
accountant,
	(v)	preparation of the annual return under section 23, or
	(vi)	a management fee of no more than 3% per annum of the 
equity capital raised, 
		and
	(b)	any expenses paid to a person who controls directly or 
indirectly, or who belongs to a group that controls directly or 
indirectly, the venture capital corporation have been 
specifically approved by ordinary resolution in advance of 
payment and are made to a person whose business it is to 
provide the services or things in respect of which the 
expenses were incurred.
(2)  For the purposes of subsection (1), retained earnings and expenses 
must be determined in accordance with generally accepted accounting 
principles. 
Calculation re section 20(9) of the Act
15   An amount authorized under section 20(9) of the Act to be paid 
out of the investment protection account must be the lesser of
	(a)	30% of the amount for which the share acquired was 
originally issued, and 
	(b)	the amount deposited in the investment protection account in 
respect of the share acquired.
Additional conditions for tax  
credit certificates
16   It is a condition under section 21(6)(g) of the Act that the equity 
capital that is the subject of the application for the tax credit 
certificates will not be used by the venture capital corporation to invest 
in a small business that has received a direct or indirect investment 
from the Alberta Enterprise Corporation after the coming into force of 
this section.
Notice to Minister
17   A venture capital corporation or eligible business corporation 
must within 30 days notify the Minister 
	(a)	of ceasing to maintain a place of business, or a permanent 
establishment, as defined in the Alberta Corporate Tax Act, 
in Alberta,
	(b)	of changing its registered office under the Business 
Corporations Act,
	(c)	of acquiring a different or additional place of business or 
permanent establishment, as defined in the Alberta Corporate 
Tax Act, in Alberta or elsewhere,
	(d)	of changing its fiscal year end,
	(e)	of directly or indirectly acquiring, redeeming or cancelling 
one of its own shares,
	(f)	in the case of a venture capital corporation 
	(i)	of failing to comply with section 10(2), 13(1), 14(1), 15, 
16, 17(1), 18, 19(1) or (2) or 20 of the Act,
	(ii)	if an investment ceases to meet the criteria set out in 
section 12(1)(b) or (c) of the Act,
	(iii)	of passing a resolution referred to in section 23(1)(a) to 
(c) or 24(1)(a) of the Act, or
	(iv)	of taking or having taken against it action referred to in 
section 25(b) to (d) of the Act,
		or
	(g)	in the case of an eligible business corporation
	(i)	of failing to comply with section 37, 40, 41, 42(3) or (4) 
or 48 of the Act, or
	(ii)	of ceasing to meet the criteria set out in section 35(1) of 
the Act.
Prescribed amount
18   For the purposes of section 40(1) of the Act, the prescribed 
amount is $5 million.
Fair market value
19   The onus of demonstrating that goods and services are sold for 
fair market value to a small business in accordance with sections 
13(1)(e) and 48(e) of the Act is on the venture capital corporation and 
the small business.
Other prohibited investments
20   Sections 13(1)(g)(iv) and 48(g)(iv) of the Act do not apply where 
all or part of the proceeds of the investment referred to in that section 
are directly or indirectly used, or intended to be used, by the small 
business to purchase any assets of a proprietorship, partnership, joint 
venture, trust or corporation
	(a)	for utilization in a business or activity that is neither the same 
as nor similar to any business or activity that the seller of the 
assets to the small business carried on before, or at the time 
of, the sale of the assets to the small business,
	(b)	that is the subject of a proposal to, or arrangement with, its 
creditors that has been approved by the court under the 
Bankruptcy and Insolvency Act (Canada), or
	(c)	if all or substantially all of the purchased assets are under the 
control of a receiver, receiver manager, sequestrator or 
trustee in bankruptcy.
Other permitted investments
21   For purposes of section 19(1)(e) of the Act, securities that are 
issued by the Government of Alberta or Canada are permitted 
investments.
Permitted investment in a security
22   A venture capital corporation must not make an investment in a 
security under section 19(1)(c) of the Act unless the security is issued 
directly to the venture capital corporation by the small business.
Reporting requirements
23   For the purposes of section 28 of the Act, a venture capital 
corporation must, with respect to its most recently ended fiscal year, 
include the following information in its annual return:
	(a)	the amount of equity capital raised by the venture capital 
corporation;
	(b)	the aggregate value at cost of investments made by the 
venture capital corporation, the name of each small business 
the shares of which the venture capital corporation sold and 
the value at cost of those shares;
	(c)	the balance held in the investment protection account of the 
venture capital corporation at the end of the fiscal year;
	(d)	the aggregate amount of expenses incurred by the venture 
capital corporation and the amount paid as management fees;
	(e)	whether any fees or remuneration were paid to the 
shareholders, officers or directors of the venture capital 
corporation or to any associate or affiliate of any of them by 
a small business in which the venture capital corporation 
made an eligible investment;
	(f)	whether the articles of the venture capital corporation were 
amended in a manner that changed the share structure of the 
venture capital corporation or altered any rights or 
restrictions attached to any share of the venture capital 
corporation;
	(g)	the amount of all dividends received by the venture capital 
corporation in respect of an eligible investment made by it in 
a small business;
	(h)	whether the venture capital corporation redeemed any of its 
shares;
	(i)	whether a share redemption referred to in clause (h) was 
reported to the Minister;
	(j)	in relation to a share redemption referred to in clause (h) that 
was not reported to the Minister, the name of each investor 
whose shares were redeemed, the date of each redemption, 
the number of shares redeemed in each redemption, the 
investor's cost of each share redeemed in each redemption 
and the consideration paid by the venture capital corporation 
in respect of the redemption;
	(k)	whether the venture capital corporation paid any expenses to 
any person or group of persons who, at the time the payment 
was made, directly or indirectly controlled the venture capital 
corporation;
	(l)	whether the venture capital corporation notified the Minister 
of the occurrence of any events referred to in section 17.
Cancellation of tax credit certificate
24(1)  The Minister must cancel a tax credit certificate and issue a new 
tax credit certificate where information on the original certificate is 
incorrect or has changed since the date the original tax credit certificate 
was issued or for any other similar reason the Minister considers 
appropriate.
(2)  A tax credit certificate cancelled under subsection (1) is deemed 
never to have been issued.
(3)  A tax credit certificate issued under subsection (1) is deemed to 
have been issued on the same date that the certificate cancelled under 
subsection (1) was issued under section 21 or 39 of the Act.
Coming into force
25   This Regulation comes into force on January 1, 2017.


--------------------------------
Alberta Regulation 204/2016
Investing in a Diversified Alberta Economy Act
ALBERTA CAPITAL INVESTMENT TAX CREDITS REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 333/2016) 
on December 13, 2016 pursuant to section 69 of the Investing in a Diversified Alberta 
Economy Act. 
Table of Contents
	1	Interpretation
	2	Operation of tourism infrastructure business
	3	Applications for conditional approval letters
	4	Minimum amount of investment
	5	Maximum amount of tax credit
	6	Evaluation of applications
	7	Applications for tax credit certificate
	8	Cancellation of tax credit certificate
	9	Coming into force
Interpretation
1(1)  In this Regulation,
	(a)	"Act" means the Investing in a Diversified Alberta Economy 
Act;
	(b)	"NAICS Canada 2012" means the North American Industry 
Classification System (NAICS) Canada 2012 published by 
Statistics Canada.
(2)  For the purposes of section 56(1)(j) of the Act, "tourism activities" 
means business activities of an eligible corporation that fall within one 
or more of the following NAICS Canada 2012 categories:
	(a)	487 Scenic and sightseeing transportation;
	(b)	721113 Resorts; 
	(c)	713920 Skiing facilities; 
	(d)	713990 All other amusement and recreation industries;
	(e)	721211 Recreational vehicle parks and campgrounds;
	(f)	721212 Hunting and fishing camps;
	(g)	721213 Recreational (except hunting and fishing) and 
vacation camps.
Operation of tourism infrastructure business
2   An eligible corporation that provides or operates tourism 
infrastructure must provide or operate that infrastructure for at least 
120 consecutive days in a 12-month period to be eligible to be issued a 
conditional approval letter.
Applications for conditional approval letters
3(1)  An eligible corporation may apply for a conditional approval 
letter during a 30-day application period every 180 days as determined 
by the Minister.
(2)  The minimum amount of the anticipated capital cost of the eligible 
qualified properties in an eligible corporation's proposed investment 
plan for the plan to be approved as an approved investment plan and 
for the corporation to be issued a conditional approval letter under 
section 58(2) of the Act is the amount set out in section 4.
Minimum amount of investment
4   The minimum amount of the anticipated capital cost of the eligible 
qualified properties in an approved investment plan for an eligible 
corporation to be granted a capital investment tax credit under the Act 
is $1 000 000.
Maximum amount of tax credit
5   The maximum amount of a tax credit that may be granted in respect 
of an approved investment plan is $5 000 000.
Evaluation of applications
6   The Minister may assess applications for a conditional approval 
letter received in an application period in accordance with the 
requirements set out in section 58 of the Act.
Applications for tax credit certificate
7   A corporation that applies for a tax credit certificate in accordance 
with section 61 of the Act must
	(a)	provide evidence that the eligible qualified property has been 
acquired and is available for use, and
	(b)	declare that the corporation will hold the eligible qualified 
property for at least one year in Alberta from the date of the 
issuance of the tax credit certificate.
Cancellation of tax credit certificate
8(1)  The Minister must cancel a tax credit certificate and issue a new 
tax credit certificate where information on the original tax credit 
certificate is incorrect or has changed since the date the original tax 
credit certificate was issued or for any other similar reason the Minister 
considers appropriate,
(2)  A tax credit certificate cancelled under subsection (1) is deemed 
never to have been issued.
(3)  A tax credit certificate issued under subsection (1) is deemed to 
have been issued on the same date that the certificate cancelled under 
subsection (1) was issued under section 61(2) of the Act.
Coming into force
9   This Regulation comes into force on January 1, 2017.


--------------------------------
Alberta Regulation 205/2016
Judgment Interest Act
JUDGMENT INTEREST AMENDMENT REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 340/2016) 
on December 13, 2016 pursuant to section 4 of the Judgment Interest Act. 
1   The Judgment Interest Regulation (AR 215/2011) is 
amended by this Regulation.

2   Section 1 is amended by adding the following after 
clause (x):
	(y)	the interest rate from January 1, 2017 to December 31, 2017 
is prescribed at 0.53% per year.


--------------------------------
Alberta Regulation 206/2016
Safety Codes Act
AMUSEMENT RIDES STANDARDS AMENDMENT REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 345/2016) 
on December 13, 2016 pursuant to section 65 of the Safety Codes Act. 
1   The Amusement Rides Standards Regulation 
(AR 223/2001) is amended by this Regulation.

2   Section 2(1) is repealed and the following is substituted:
Codes and standards
2(1)  The following standards published by the American Society for 
Testing and Materials International are declared in force as amended 
or replaced from time to time:
	(a)	ASTM F2783-14, Standard Practice for Design, 
Manufacture, Maintenance and Inspection of Amusement 
Rides and Devices, in Canada, except the following 
referenced standards:
	(i)	ASTM F2007, Standard Practice for Design, 
Manufacture and Operation of Concession Go-Karts 
and Facilities;
	(ii)	ASTM F2376, Standard Practice for Classification, 
Design, Manufacture, Construction and Operation of 
Waterslide Systems;
	(b)	ASTM F2959-14, Standard Practice for Special 
Requirements for Aerial Adventure Courses, for zip lines 
only.

3   Section 3 is repealed.

4   Section 3.1(1) to (4) are repealed and the following is 
substituted:
Metal defects
3.1(1)  Despite section 2, this section applies following the 
observation of a metal defect, whether through the maintenance, 
inspection, testing, operation and emergency procedures referred to 
in F1193 Standard Practice for Quality, Manufacture and 
Construction of Amusement Rides and Devices, or otherwise.
(2)  If a metal defect is observed in a critical component of an 
amusement ride or device, the ride or device shall be removed from 
service.
(3)  The ride or device may be returned to service only if the 
following are completed and documented, indicating that the metal 
defect is not critical to the safe operation of an amusement ride or 
device:
	(a)	an assessment by the original manufacturer or a professional 
engineer to determine whether the metal defect is critical to 
the safe operation of the ride or device;
	(b)	Non-destructive testing in accordance with F1193 Standard 
Practice for Quality, Manufacture and Construction of 
Amusement Rides and Devices.

5   This Regulation comes into force on January 1, 2017.


Alberta Regulation 207/2016
Safety Codes Act
PERMIT (EXPIRY DATE EXTENSION) AMENDMENT REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 346/2016) 
on December 13, 2016 pursuant to section 65 of the Safety Codes Act. 
1   The Permit Regulation (AR 204/2007) is amended by this 
Regulation.

2   Section 29 is amended by striking out "January 31, 2017" 
and substituting "January 31, 2019".


--------------------------------
Alberta Regulation 208/2016
Safety Codes Act
PLUMBING CODE AMENDMENT REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 347/2016) 
on December 13, 2016 pursuant to section 65 of the Safety Codes Act. 
1   The Plumbing Code Regulation (AR 119/2007) is 
amended by this Regulation.

2   Section 1 is amended 
	(a)	in subsection (1)(c) by striking out "2010" and 
substituting "declared in force by this Regulation";
	(b)	by adding the following after subsection (2):
(3)  References to the following expressions in a code that is 
declared in force by this Regulation are to be read as references 
to the "Alberta Building Code as declared in force by the 
Building Code Regulation (AR 31/2015)":
	(a)	"National Building Code of Canada";
	(b)	"NBC".
(4)  References to the following expressions in a code that is 
declared in force by this Regulation are to be read as references 
to the "Alberta Fire Code as declared in force by the Fire Code 
Regulation (AR 32/2015)":
	(a)	"National Fire Code of Canada";
	(b)	"NFC".

3   Section 4 is amended
	(a)	by repealing subsection (1) and substituting the 
following:
Plumbing Code
4(1)  The National Plumbing Code of Canada 2015, published 
by the National Research Council of Canada, is declared in 
force as amended or replaced from time to time.
	(b)	by repealing subsections (2) to (17).

4   Section 5 is amended by striking out "referred to in, and as 
varied by, section 4" and substituting "declared in force by this 
Regulation".

5   This Regulation comes into force on January 1, 2017.


--------------------------------
Alberta Regulation 209/2016
Mines and Minerals Act
EMERGING RESOURCES ROYALTY REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 348/2016) 
on December 13, 2016 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
	1	Interpretation
	2	Application of regulation
	3	Project application
	4	Project activity level
	5	Project benefit period
	6	Project benefit period commencement date
	7	Project approval
	8	Eligible well
	9	C* multiplier and C*ERP
	10	C*ERP pool
	11	Royalty
	12	Re-entry
	13	Project approval amendment
	14	Project approval revocation
	15	Project approval termination
	16	Furnishing information
	17	Project benefit period extension
	18	Expiry
	19	Coming into force 
 
Schedule
Interpretation
1(1)  In this Regulation,
	(a)	"approved project" means a project granted an approval 
under section 7;
	(b)	"C*" means the C* for a well as determined under the 
Petroleum Royalty Regulation, 2017 or the Natural Gas 
Royalty Regulation, 2017, as the case may be;
	(c)		"C*ERP" means the C*ERP for an eligible well calculated in 
accordance with section 9;
	(d)	"C*ERP pool" means the C*ERP pool for an approved project 
determined in accordance with section 10;
	(e)	"formation" is an underground geological formation 
according to the records of the Alberta Energy Regulator;
 	(f)	"hydrocarbon" includes any crude oil, natural gas, gas 
product or oil sands product that is subject to the calculation 
of royalty under the Petroleum Royalty Regulation, 2017, the 
Natural Gas Royalty Regulation, 2017 or the Oil Sands 
Royalty Regulation, 2009, as the case may be;
	(g)	"maximum number of eligible wells" means the maximum 
number of eligible wells calculated in accordance with 
section 10(3);
	(h)	"oil sands project" means a Project as defined in the Oil 
Sands Royalty Regulation, 2009;
	(i)	"project activity level" means the project activity level 
determined in accordance with section 4 and specified in a 
project approval under section 7;
	(j)	"project approval" means an approval granted under section 
7;
	(k)	"project area" means the project area referred to in section 
3(2)(a);
	(l)	"project benefit period" means the project benefit period 
determined in accordance with section 5 and specified in a 
project approval under section 7;
	(m)	"project benefit period commencement date" means the 
project benefit period commencement date determined in 
accordance with section 6;
	(n)	"project evaluation area" means the project evaluation area 
referred to in section 3(2)(b);
	(o)	"project participant" means a project participant referred to in 
section 3(2)(d);
	(p)	"project representative" means the person
	(i)	making an application under section 3, or
	(ii)	approved by the Minister as the project representative 
according to the records of the Department of Energy;
	(q)	"target formation" means the target formation referred to in 
section 3(2)(c);
	(r)		"total potential wells within the project area" means 4 wells 
per section of the project area, unless otherwise determined 
by the Minister;
	(s)	"total potential wells within the project evaluation area" 
means 4 wells per section of the project evaluation area, 
unless otherwise determined by the Minister.
(2)  A reference in this Regulation to hydrocarbons obtained from a 
well is also a reference to hydrocarbons produced or recovered from a 
well.
(3)  Except in section 16, a reference in this Regulation to a month, 
whether by its name or not, shall be construed as the period 
commencing at 8:00 a. m. Mountain Standard Time on the first day of 
the month and ending immediately before 8:00 a. m. Mountain 
Standard Time on the first day of the next month.
Application of regulation
2   This Regulation applies only to hydrocarbons that are obtained 
from an eligible well on or after January 1, 2017, and on or before 
December 31, 2039, in which the percentage of Crown ownership, as 
determined by the Minister in accordance with section 26.1 of the 
Petroleum and Natural Gas Tenure Regulation (AR 263/97), is greater 
than 0.
Project application
3(1)  An application for a project may be made on or after January 1, 
2017 and on or before December 31, 2024.
(2)  An application must be in the form provided by the Minister and 
contain the information required by the Minister, including the 
following:
	(a)	the project area, which must be an area of land greater than 
or equal to 18 sections and less than or equal to 144 sections;
	(b)	the project evaluation area, determined in accordance with 
parameters specified by the Minister;
	(c)	the target formation;
	(d)	the project participants;
	(e)	an agreement between the project participants in respect of 
the project, in the form provided by the Minister, if there is 
more than one project participant.
(3)  Only one person may make an application and that person must
	(a)	hold a valid and subsisting hydrocarbon agreement issued 
under the Mines and Minerals Act applicable to the project 
area, and
	(b)	must be a project participant.
(4)  At the time of application, the project participants must 
collectively hold one or more valid and subsisting hydrocarbon 
agreements issued under the Mines and Minerals Act applicable to the 
entire project area.
(5)  An application must not include a well that is part of an oil sands 
project application pending a decision by the Minister.
Project activity level
4(1)  In this section,
	(a)	"bottom hole location" means the subsurface point at the 
greatest measured penetration of a well;
	(b)	"confidential well" means a confidential well as defined in 
the Oil and Gas Conservation Rules (AR 151/71) or 
Directive 056: Energy Development Application and 
Schedules, as published by the Alberta Energy Regulator, as 
amended from time to time;
	(c)	"evaluation well" means a well within the project evaluation 
area, based on bottom hole location, penetrating the target 
formation, including the following:
	(i)	dry holes;
	(ii)	confidential wells of a project participant;
	(iii)	abandoned wells;
	(iv)	commingled wells;
	(v)	wells producing a hydrocarbon.
(2)  The project activity level is calculated by dividing the total number 
of evaluation wells by the total number of potential wells within the 
project evaluation area, expressed as a percentage.
Project benefit period
5   The project benefit period is the number of years specified in 
column 2 of the Schedule that corresponds to the project activity level 
calculated under section 4(2) and specified in column 1 of the 
Schedule.
Project benefit period commencement date
6(1)  Subject to subsection (2), the project benefit period commences 
on the first day of the 3rd month following the month a project is 
approved under section 7.
(2)  Subject to subsection (3), a project representative may, in an 
application under section 3, or in a written request submitted to the 
Minister within 3 months of the date a project is approved under 
section 7, select the month in which the project benefit period 
commences
	(a)	from between and including the month an application is 
received under section 3 and the 3rd month following the 
month the project is approved under section 7, or
	(b)	from between and including the month an oil sands project 
application is received by the Minister and the 3rd month 
following the month the project is approved under section 7, 
in the case of a project that includes a well that is part of an 
oil sands project application denied approval.
(3)  The project benefit period commences on the first day of a month 
selected under subsection (2).
Project approval
7(1)  The Minister may approve a project if
	(a)	the total number of evaluation wells, as defined in section 
4(1)(c), at the time of application is less than or equal to 10% 
of the total potential wells within the project evaluation area, 
rounded up to the next whole number,
	(b)	the total number of wells producing a hydrocarbon from the 
target formation within the project area at the time of 
application is less than or equal to 15% of the total potential 
wells within the project area, rounded up to the next whole 
number, and
	(c)	the Minister is of the opinion that
	(i)	there is a large development potential of hydrocarbons 
from the target formation,
	(ii)	the project would not be commercially viable if not 
approved,
	(iii)	positive net royalty from the production of 
hydrocarbons from the target formation is likely if the 
project is approved, and 
	(iv)	it is in the public interest to approve the project.
(2)  The Minister shall specify in an approval under subsection (1) the 
following:
	(a)	the project participants;
	(b)	the project area;
	(c)	the project evaluation area;
	(d)	the target formation;
	(e)	the project activity level;
	(f)	the project benefit period;
	(g)	the maximum number of eligible wells;
	(h)	any terms and conditions in respect of the project.
Eligible well
8(1)  Subject to subsection (2), an eligible well is a well that 
	(a)	is spud
	(i)	within the project area,
	(ii)	during the project benefit period, and
	(iii)	for the purpose of producing a hydrocarbon from the 
target formation,
		and
	(b)	commences production during the project benefit period.
(2)  A well is not an eligible well if the well 
	(a)	is spud after December 31, 2034,
	(b)	commences production after December 31, 2034,
	(c)	is part of an oil sands project,
	(d)	produces from a formation other than the target formation,
	(e)	produces from 2 or more formations, or
	(f)	has been at any time part of an approved scheme under the 
Enhanced Hydrocarbon Recovery Royalty Regulation or the 
Enhanced Oil Recovery Royalty Regulation.
C* multiplier and C*ERP
9(1)  The C* multiplier for an eligible well is the value specified in 
column 4 of the Schedule that corresponds to
	(a)	the number of years set out in column 3 of the Schedule that 
have elapsed between the project benefit period 
commencement date and the date the well first commenced 
production, and
	(b)	the project activity level calculated under section 4(2).
(2)  The C*ERP for an eligible well is calculated by multiplying the C* 
for the well by the C* multiplier applicable to the well determined in 
accordance with subsection (1).
C*ERP pool
10(1)  In this section, "excluded well" means a well in a project area 
that is
	(a)	spud before the project benefit period commencement date,
	(b)	producing a hydrocarbon from the target formation at the 
time an application is made under section 3, or
	(c)	producing a hydrocarbon from more than one formation, 
including the target formation.
(2)  The C*ERP pool for an approved project is determined by 
aggregating the C*ERP for each eligible well until the maximum 
number of eligible wells is reached in accordance with subsection (3).
(3)  The maximum number of eligible wells is calculated by
	(a)	multiplying the total potential wells within the project area 
by 0.15,
	(b)	rounding the result obtained under clause (a) up to the next 
whole number, and 
	(c)	subtracting the total number of excluded wells from the result 
obtained under clause (b).
Royalty
11(1)  In this section, "cumulative revenue" means the total revenue, 
as determined by the Minister under the Petroleum Royalty Regulation, 
2017 or the Natural Gas Royalty Regulation, 2017, as the case may be, 
from hydrocarbons obtained from a well since the project benefit 
period commencement date.
(2)  If an eligible well is part of a C*ERP pool, 
	(a)	the C*ERP for the well supersedes the C* for the well for the 
purposes of the Petroleum Royalty Regulation, 2017 or the 
Natural Gas Royalty Regulation, 2017, as the case may be, 
and
	(b)	the royalty payable to the Crown on hydrocarbons obtained 
from the well is calculated
	(i)	at a rate of 5% until the earlier of
	(A)	5 years following the expiry of the project benefit 
period,
	(B)	the aggregate cumulative revenue of eligible wells 
forming part of the C*ERP pool is equal to the 
amount of the C*ERP pool, or
	(C)	December 31, 2039,
			or
	(ii)	if subclause (i)(A), (B) or (C) apply, in accordance with 
the Petroleum Royalty Regulation, 2017 or the Natural 
Gas Royalty Regulation, 2017, as the case may be, 
deeming the cumulative revenue equal to the C* for the 
well.
Re-entry
12(1)  In this section, "re-entry activity" means re-entry as defined in 
the Petroleum Royalty Regulation, 2017 or the Natural Gas Royalty 
Regulation, 2017, as the case may be.
(2)  If a re-entry activity occurs in respect of an eligible well that is 
part of a C*ERP pool and results in incremental production of 
hydrocarbons from only the target formation, the incremental C* 
associated with the re-entry activity shall be added to the C*ERP for the 
well and the C*ERP pool for the approved project.
(3)  If a re-entry activity occurs in respect of an eligible well that is 
part of a C*ERP pool and results in incremental production of 
hydrocarbons from 2 or more formations,
	(a)	the well shall cease being an eligible well as of the date 
incremental production commences,
	(b)	the incremental C* associated with the re-entry activity 
	(i)	shall not be included in the C*ERP for the well and the 
C*ERP pool for the approved project, and
	(ii)	shall be subject to the Petroleum Royalty Regulation, 
2017 or the Natural Gas Royalty Regulation, 2017, as 
the case may be,
	(c)	the C*ERP calculated for the well prior to the re-entry activity 
shall continue to be part of the C*ERP pool for the approved 
project, and
	(d)	the revenue from the well after the incremental production 
commences,
	(i)	shall not be included in the aggregate cumulative 
revenue determined under section 11(2)(b)(i)(B), and
	(ii)	shall only be applied in respect to the incremental C* 
associated with the re-entry activity in accordance with 
the Petroleum Royalty Regulation, 2017 or the Natural 
Gas Royalty Regulation, 2017, as the case may be.
Project approval amendment
13(1)  The Minister may, on receipt of a written request from the 
project representative or on the Minister's own initiative, amend a 
project approval.
(2)  A project approval shall not be amended
	(a)	to reduce the project area by more than 20%, or
	(b)	to add lands to the project area that are outside of the project 
evaluation area.
Project approval revocation
14   The Minister may revoke a project approval if, in the opinion of 
the Minister, a project participant made 
	(a)	any misrepresentation that is attributable to neglect, 
carelessness or wilful default, or
	(b)	has committed a fraud in providing a document or other 
information under this Regulation.
Project approval termination
15(1)  The Minister may terminate a project approval if
	(a)	requested to do so in writing by the project representative,
	(b)	the project area is less than 18 sections or greater than 144 
sections,
	(c)	a term or condition of a project approval is breached, or
	(d)	documents or information are not provided under section 16.
(2)  If the Minister terminates a project approval, the royalty payable to 
the Crown on hydrocarbons obtained from an eligible well that is part 
of the C*ERP pool as of the date of termination shall continue to be 
calculated in accordance with section 11.
(3)  If an eligible well is spud after the date of termination, the C* for 
the well 
	(a)	applies for the purposes of the Petroleum Royalty Regulation, 
2017 or the Natural Gas Royalty Regulation, 2017, as the 
case may be, and
	(b)	shall not be included in the C*ERP for the well and the C*ERP 
pool for the approved project.
Furnishing information
16   For the purposes of administering this Regulation, the project 
representative or any previous project representative shall furnish 
documents or any other information
	(a)	requested or required by the Minister,
	(b)	in the form specified by the Minister, and 
	(c)	within the time period specified by the Minister.
Project benefit period extension 
17(1)  The Minister may extend the project benefit period for all 
approved projects, or a class of approved projects, if the Minister is of 
the opinion that an extension is justified based on a significant and 
prolonged reduction in market prices that is negatively impacting the 
production of hydrocarbons in Alberta.
(2)  The Minister may specify any terms and conditions in respect of 
an extension under subsection (1).
Expiry
18   This Regulation expires on June 30, 2045.
Coming into force
19   This Regulation comes into force on January 1, 2017.
Schedule
Project Activity Table
 
Column 1 
 
Project Activity Level
 
Column 2 
Project 
Benefit 
Period 
(Years)
 
Column 3 
 
Elapsed Time 
(Years)
 
Column 4 
 
C* Multiplier
less than 5%
10
0-4
2.00


5-8
1.75


9-10
1.50
greater than or equal to 5% 
and less than 6%
9
0-3
2.00


4-7
1.75


8-9
1.50
greater than or equal to 
6% and less than 7%
8
0-2
2.00


3-6
1.75


7-8
1.50
greater than or equal to 7% 
and less than 8%
7
0-1
2.00


2-5
1.75


6-7
1.50
greater than or equal to 8% 
and less than 9%
6
0-4
1.75


5-6
1.50
greater than or equal to 9% 
and less than or equal to 10%
5
0-3
1.75


4-5
1.50
greater than 10%
0
N/A
N/A

 

--------------------------------
Alberta Regulation 210/2016
Mines and Minerals Act
ENHANCED HYDROCARBON RECOVERY ROYALTY REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 349/2016) 
on December 13, 2016 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
Interpretation
	1	Definitions
	2	Application of Regulation
New Approvals for EHR Schemes
	3	Enhanced hydrocarbon recovery scheme
	4	Application for approval
	5	Approval
	6	Percentage rate for calculation of royalty
	7	Transition of pre-2017 wells
General
	8	T-factor for tertiary recovery schemes
	9	Excluded well events
	10	Amendment of approval
	11	Duty to provide information and file reports
	12	Suspension of approval
	13	Termination of approval
	14	Consequential amendments
	15	Coming into force 
 
Schedule
Interpretation
Definitions
1(1)  In this Regulation,
	(a)	"approval" means an approval granted under section 5;
	(b)	"approved scheme" means an enhanced hydrocarbon 
recovery scheme in respect of which there is a subsisting 
approval granted under section 5;
	(c)	"base recovery scheme" in respect of an area that is or is 
proposed to be subject to an enhanced hydrocarbon recovery 
scheme means
	(i)	if subclause (ii) does not apply, the scheme that the 
Minister considers from time to time to be the most 
technically viable scheme to obtain hydrocarbons from 
the pool in that area using only conventional techniques, 
or
	(ii)	the most recent previous enhanced hydrocarbon 
recovery scheme that the Minister considers technically 
viable that has been used to obtain hydrocarbons from 
the pool in that area;
	(d)	"enhanced hydrocarbon recovery scheme" means an 
enhanced hydrocarbon recovery scheme as determined under 
section 3;
	(e)	"enhanced recovery" means a method of injection of 
substances into a pool
	(i)	to add to or maintain reservoir pressure,
	(ii)	to displace hydrocarbons to production wells, or
	(iii)	to alter the reservoir fluids so that hydrocarbon flow or 
recovery is improved;
	(f)	"hydrocarbon" includes any crude oil, natural gas, gas 
product or oil sands product that is subject to a determination 
of royalties under the Petroleum Royalty Regulation, 2017, 
the Natural Gas Royalty Regulation, 2017 or the Oil Sands 
Royalty Regulation, 2009, as the case may be;
	(g)	"oil sands project" means a Project as defined in the Oil 
Sands Royalty Regulation, 2009;
	(h)	"operator", in respect of a scheme or proposed scheme, 
means the person who is the operator of the wells that are 
within the scheme or proposed scheme according to the 
records of the Department;
	(i)	"pool" means a pool as defined in the Oil and Gas 
Conservation Act;
	(j)	"previous enhanced hydrocarbon recovery scheme" means an 
enhanced recovery scheme implemented pursuant to a 
requirement under section 38(a) of the Oil and Gas 
Conservation Act or an approval under section 39(1)(a) of the 
Oil and Gas Conservation Act, whether or not the scheme 
was an approved scheme under this Regulation or the 
Enhanced Oil Recovery Royalty Regulation (AR 156/2014),
	(i)	that was previously implemented by an operator making 
an application under section 4 to obtain hydrocarbons 
from the pool in the same area referred to in the 
application, and
	(ii)	in which a different enhanced hydrocarbon recovery 
technique was used from the technique described in the 
application under section 4;
	(k)	"secondary recovery scheme" means a scheme for the 
enhanced recovery of hydrocarbons from a pool by water 
flooding, polymer flooding, gas cycling, gas flooding or 
other methods approved by the Minister;
	(l)	"tertiary recovery scheme" means a scheme for the enhanced 
recovery of hydrocarbons from a pool by immiscible 
flooding, solvent flooding, miscible flooding, chemical 
flooding or other methods approved by the Minister, but does 
not include a secondary recovery scheme;
	(m)	"well event" means a well event as defined in the Petroleum 
Royalty Regulation, 2017 or the Natural Gas Royalty 
Regulation, 2017.
(2)  A reference in this Regulation to hydrocarbons obtained from a 
well event is also a reference to hydrocarbons produced or recovered 
from a well event.
(3)  Except in section 11, a reference in this Regulation to a month, 
whether by its name or not, shall be construed as the period 
commencing at 8:00 a.m. Mountain Standard Time on the first day of 
the month and ending immediately before 8:00 a.m. Mountain 
Standard Time on the first day of the next month.
Application of Regulation
2   This Regulation applies only to hydrocarbons obtained under an 
enhanced hydrocarbon recovery scheme that is approved by the 
Minister under section 5(1) on or after January 1, 2017, in which the 
percentage of Crown ownership, as determined by the Minister in 
accordance with section 26.1 of the Petroleum and Natural Gas 
Tenure Regulation (AR 263/97), is greater than 0.
New Approvals for EHR Schemes
Enhanced hydrocarbon 
recovery scheme
3   A secondary or tertiary recovery scheme is an enhanced 
hydrocarbon recovery scheme if the scheme
	(a)	is implemented or proposed to be implemented pursuant to
	(i)	a requirement under section 38(a),
	(ii)	an approval under section 39(1)(a), or
	(iii)	an amendment under section 26, which amends the 
enhanced recovery method used in a scheme,
		of the Oil and Gas Conservation Act, 
	(b)	if water flooding, gas flooding or gas cycling is proposed, the 
Minister is satisfied that
	(i)	for a new scheme, it is located in a pool or part of a pool 
where water flooding, gas flooding or gas cycling has 
not occurred previously, or
	(ii)	for an existing scheme, it is extended vertically into a 
pool or part of a pool where water flooding, gas 
flooding or gas cycling has not occurred previously,
		and
	(c)	was, for an approval under section 39(1)(a), or amendment 
under section 26, of the Oil and Gas Conservation Act, 
applied for and granted on or after October 23, 2016.
Application for approval
4(1)  On or after January 1, 2017, an operator of an enhanced 
hydrocarbon recovery scheme or proposed enhanced hydrocarbon 
recovery scheme may apply for an approval under section 5.
(2)  An application under subsection (1) must be in the form provided 
by and contain the information required by the Minister.
(3)  The operator of an enhanced hydrocarbon recovery scheme may, 
in the application or in writing provided to the Minister at any time 
before or after an approval is granted, indicate the month in which the 
operator wants the term determined under section 6(2) to begin.
(4)  A request submitted under subsection (3) for a particular month on 
which to commence a term under section 6(2) must be received before 
the first day of the month requested.
(5)  An application must not include a well that is part of an oil sands 
project application pending a decision of the Minister.
Approval
5(1)  Subject to section 9, the Minister may, on application, grant an 
approval providing for the percentage rate under section 6(1) to apply 
to the calculation of royalty on hydrocarbons obtained from well 
events that are part of an enhanced hydrocarbon recovery scheme if, at 
the time the information required by the Minister with respect to the 
application has been received, 
	(a)		the Minister is of the opinion that the scheme is an enhanced 
hydrocarbon recovery scheme,
	(b)	the Minister is of the opinion that the primary function of the 
scheme is the recovery of hydrocarbons from a pool,
	(c)		the Minister is of the opinion that more hydrocarbons are 
likely to be obtained using the enhanced hydrocarbon 
recovery scheme than would be obtained using the base 
recovery scheme,
	(d)	the Minister is satisfied, taking into consideration any 
estimates provided by the operator of the costs for 
implementing and operating the enhanced hydrocarbon 
recovery scheme and for implementing and operating the 
base recovery scheme, that the costs for implementing and 
operating the enhanced hydrocarbon recovery scheme 
significantly exceed the costs for implementing and operating 
the base recovery scheme, and
	(e)	the Minister is of the opinion that it is in the public interest to 
grant an approval under this section.
(2)  In an approval under subsection (1), the Minister
	(a)	shall set out
	(i)	the pool that is subject to the enhanced hydrocarbon 
recovery scheme to which the approval applies,
	(ii)	the area that is subject to the enhanced hydrocarbon 
recovery scheme to which the approval applies, and
	(iii)	the well events in the area referred to in subclause (ii) to 
which the approval applies,
		and
	(b)	may establish terms and conditions relating to the approved 
scheme.
(3)  On granting an approval under subsection (1) the Minister shall, in 
accordance with section 8, establish the t-factor for an approved 
tertiary recovery scheme, or in accordance with section 6(2)(b), 
establish a term for an approved secondary recovery scheme, as the 
case may be.
Percentage rate for calculation of royalty
6(1)  The royalty on hydrocarbons obtained from well events to which 
an approval under section 5(1) applies for any month during the term 
determined under subsection (2) shall be calculated under the 
Petroleum Royalty Regulation, 2017, the Natural Gas Royalty 
Regulation, 2017 or the Oil Sands Royalty Regulation, 2009, as the 
case may be, using a percentage rate of 5%.
(2)  The term during which subsection (1) applies with respect to an 
approved scheme referred to in subsection (1) is,
	(a)	for an approved tertiary recovery scheme, the term of 
calendar months in the Schedule applicable to the t-factor 
range in the Schedule that includes the t-factor of the 
approved scheme, and
	(b)	for an approved secondary recovery scheme, the term 
determined by the Minister, not in excess of 90 calendar 
months.
(3)  The term determined under subsection (2) begins
	(a)	for a tertiary recovery scheme,
	(i)	on the first day of the month indicated by the operator 
under section 4(3), if
	(A)	the first injection of material using the method 
under the approved scheme occurred on that day, 
or
	(B)	the day indicated by the operator is within 36 
months of the first injection of material using the 
method under the approved scheme occurred,
			or
	(ii)	if subclause (i) does not apply, on the first day of the 
36th month after the month in which the first injection 
of material using the method under the approved 
scheme occurred,
		and
	(b)	for a secondary recovery scheme, as determined by the 
Minister, but no later than 36 months after the month in 
which the first injection of material using the method under 
the approved scheme occurred.
(4)  The Minister may redetermine the term of an approved scheme 
under subsection 2(b).
(5)  For well events drilled on or after January 1, 2017, the following 
run concurrently:
	(a)	the term determined under subsection (3) during which 
subsection (1) applies to the well event;
	(b)	the determination of the related well C* and total revenue 
under the Petroleum Royalty Regulation, 2017 or the Natural 
Gas Royalty Regulation, 2017, as the case may be.
Transition of pre-2017 wells
7  Royalties payable in respect of wells drilled prior to January 1, 2017 
that at any time form part of a scheme approved under section 5(1) 
shall be calculated under the Petroleum Royalty Regulation, 2017 or 
the Natural Gas Royalty Regulation, 2017, as the case may be.
General
T-factor for tertiary recovery schemes
8(1)  The t-factor of an approved tertiary recovery scheme is the 
greater of
	(a)	0.224, and
	(b)	the t-factor determined by the Minister in accordance with 
the following formula:
t - factor =  itr ö tco 
 
where
	itr   	is the amount of incremental hydrocarbons 
recoverable from the pool under the approved 
scheme over the life of the approved scheme;
	tco  	is the total amount of hydrocarbons that in the 
Minister's opinion remains to be recovered from 
the pool at the start of the approved scheme.
(2)  The Minister may redetermine the t-factor of an approved scheme 
under subsection (1) at any time if the Minister is of the opinion that a 
different amount should be used in place of an amount that was used to 
calculate the t-factor.
(3)  If the Minister is not satisfied that sufficient information has been 
received from the operator to calculate the t-factor of an approved 
scheme under subsection (1), the Minister shall establish a temporary 
t-factor of 0.324 for the approved scheme.
(4)  The Minister may increase the temporary t-factor established 
under subsection (3) up to a maximum temporary t-factor of 0.381 if
	(a)	the operator of the approved scheme submits an application 
to the Minister for an increase that contains the information 
required by the Minister, and
	(b)	the Minister is of the opinion that exceptional circumstances 
exist that warrant an increase.
(5)  If the Minister is not satisfied that sufficient information has been 
received from the operator of an approved scheme for which a 
temporary t-factor is established under subsection (3) to determine the 
t-factor for the approved scheme under subsection (1), the approval for 
the approved scheme terminates at the end of the last month of the 
term that applies to the temporary t-factor under the Schedule.
(6)  On being satisfied that sufficient information has been received 
from the operator to determine the t-factor of an approved scheme for 
which a temporary t-factor has been established under this section, the 
Minister shall determine the t-factor of the approved scheme under 
subsection (1) and any temporary t-factor established for the approved 
scheme under this section ceases to apply.
(7)  If the t-factor or temporary t-factor of an approved scheme is 
replaced by a new t-factor as provided by subsection (2) or (6) and the 
term set out in the Schedule that applies to the new t-factor is longer 
than the term that applied to the previous t-factor, the longer term only 
applies for the purposes of section 6(2) if the term that applied to the 
previous t-factor has not expired.
(8)  If the t-factor or temporary t-factor of an approved scheme is 
replaced by a new t-factor as provided by subsection (2) or (6) and the 
term set out in the Schedule that applies to the new t-factor is shorter 
than the term that applied to the previous t-factor, the royalty for each 
month not included in the shorter term for which the royalty was 
calculated in accordance with section 6(1) shall be recalculated using 
the percentage rate that would otherwise have been applicable under 
the Petroleum Royalty Regulation, 2017 or the Natural Gas Royalty 
Regulation, 2017, as the case may be.
(9)  The result of a calculation under this section shall 
	(a)	be expressed to 3 decimal points, and
	(b)	be rounded 
	(i)	up if there is a number at the 4th decimal point that is 5 
or greater, or
	(ii)	down if there is a number at the 4th decimal point that is 
less than 5.
Excluded well events
9   For the purposes of this Regulation, an approval granted under 
section 5(1) does not apply to any of the following well events that are 
in the area to which the approval applies:
	(a)	well events as defined in the Oil Sands Royalty Regulation, 
2009 (AR 223/2008) that are part of a Project as defined in 
that Regulation;
	(b)	any other well events that are in the area to which the 
approval applies that are not included in the approval.
Amendment of approval 
10   The Minister may amend an approval granted under section 5(1) 
	(a)	to add, change or remove conditions relating to the approved 
scheme,
	(b)	on the application of the operator of the approved scheme, to 
add a well event that has been added to the approved scheme 
if the Minister is satisfied that the well event is in the area to 
which the approval applies and is part of the enhanced 
hydrocarbon recovery scheme to which the approval applies, 
or
	(c)	on the application of the operator of the approved scheme, to 
increase the area to which the approval applies to include 
well events located outside the existing area if no new 
injection well event has been added outside the existing area.
Duty to provide information and file reports
11  On receiving a request from the Minister to provide information or 
file a report for the purposes of the Minister's administration of this 
Regulation, a person who is or was an operator of an approved scheme 
shall provide the information or file the report specified in the request 
within the time specified in the request.
Suspension of approval
12(1)  The Minister may suspend an approval for an approved scheme 
if the operator of the approved scheme fails to provide information or 
file a report requested by the Minister within the time specified in the 
request.
(2)  If an approval for an approved scheme is suspended under 
subsection (1), section 6(1) does not apply to the calculation of royalty 
on hydrocarbons obtained from well events to which the approval 
applies for any month during which the suspension is in effect for all 
or any part of the month. 
(3)  If an operator of an approved scheme provides the information or 
files the report with respect to which a suspension was imposed under 
subsection (1), the royalty on hydrocarbons obtained from well events 
to which the approval applies for each month during the term 
determined under section 6(2) during which the approval was 
suspended shall be recalculated in accordance with section 6(1).
(4)  Subsection (3) does not apply if
	(a)	the approval for the approved scheme is terminated before 
the suspension of the approval ends, and
	(b)	in the opinion of the Minister, the reason for the termination 
of the approval for the approved scheme is substantially the 
same as the reason for the suspension of the approval for the 
approved scheme.
(5)  A suspension of an approval for an approved scheme does not 
operate to extend the term determined under section 6(2).
Termination of approval
13   The Minister may terminate an approval for an approved scheme 
if
	(a)	the operator of the approved scheme requests termination of 
the approval,
	(b)	the operator of the approved scheme has failed to provide 
information or file a report requested by the Minister within 
the time specified in the request,
	(c)	the Minister is of the opinion that a term or condition relating 
to the approved scheme set out in the approval is not being 
met,
	(d)	the t-factor for the scheme is 0,
	(e)	the Minister is of the opinion that the scheme is no longer 
producing hydrocarbons and no further use of the method 
referred to in section 1(1)(k) or (l) is intended, or
	(f)	a requirement of section 5(1) is no longer satisfied with 
respect to the approved scheme.
Consequential amendments
14(1)  The Enhanced Oil Recovery Royalty Regulation 
(AR 156/2014) is amended by this section.
(2)  Section 1(1) is amended by adding the following after 
clause (d):
	(d.1)	"licence" means a licence for a well, as defined in the 
Oil and Gas Conservation Act;
	(d.2)	"licensed well" means a well subject to a licence;
(3)  Section 2 is amended by adding "and on or before December 
31, 2026," after "January 1, 2014,".
(4)  Section 3(2) is repealed and the following is substituted:
(2)  An application under subsection (1) must be
	(a)	in the form provided by and contain the information required 
by the Minister, and
	(b)	made on or before December 31, 2016.
(5)  Section 4(1) is amended by striking out "and" at the end 
of clause (d), by adding "and" at the end of clause (e) and by 
adding the following after clause (e):
	(f)	the scheme was approved under the Oil and Gas 
Conservation Act on or before December 31, 2016.
(6)  The following is added after section 7:
Re-entered well event
7.1(1)  In this section, "re-entry" means a re-entry as defined in the 
Petroleum Royalty Regulation, 2017.
(2)  In an approved scheme, when a licensed well is subject to 
re-entry on or after January 1, 2017,
	(a)	all well events under the licence related to the licensed well 
shall have royalties determined in accordance with section 3 
of the Schedule to Petroleum Royalty Regulation, 2017, 
without reference to the royalty rate under section 5(1), and
	(b)	the term determined under section 5(2) continues to elapse.
(3)  For a licence referred to in subsection (2), upon the end of 
royalties being calculated under section 3 of the Schedule to the 
Petroleum Royalty Regulation, 2017, the royalty rate on well events 
under the licence shall be determined under
	(a)	section 5(1), for well events to which an approval under 
section 4(1) applies if there is time remaining in the term 
determined under section 5(2), for the remainder of that term, 
or
	(b)	the Petroleum Royalty Regulation, 2009, in any other case.
(7)  The following is added after section 10:
Post-2016 well royalty treatment
10.1   For well events under an approval, the following run 
concurrently:
	(a)	the term determined under section 5(2) during which section 
5(1) applies to the well event, and
	(b)	the determination of the related well C* and total revenue 
under the Petroleum Royalty Regulation, 2017.
(8)  Section 11 is repealed and the following is substituted:
Separate approval for scheme expansions
11(1)  On or after January 1, 2017, an operator of an approved 
scheme must apply for a separate approval of that scheme under the 
Enhanced Hydrocarbon Recovery Royalty Regulation as an 
enhanced hydrocarbon recovery scheme when an approved scheme 
is modified by
	(a)	a new injection pattern outside the area to which the existing 
approval applies, or
	(b)	a change in the injection method or the material referred to in 
section 1(1)(d)(ii) used in the scheme.
(2)  On approval of the scheme under the Enhanced Hydrocarbon 
Recovery Royalty Regulation, the approved scheme under this 
regulation is terminated as of the date of the first injection of 
material using the method contemplated in the replacement scheme 
approved under the Enhanced Hydrocarbon Recovery Royalty 
Regulation.
(9)  The following is added after section 14:
Termination of benefits and transitions
14.1(1)  Approved schemes are no longer subject to the royalty 
determinations under sections 5(1) and 7(1) upon the earlier of
	(a)	the end of the term determined under section 5(2) or 7(2), as 
the case may be, or
	(b)	December 31, 2026.
(2)  After December 31, 2026, any remaining approved schemes 
under this regulation, and associated well events, are not eligible for 
approval in a scheme under the Enhanced Hydrocarbon Recovery 
Royalty Regulation.
(10)  Section 17 is amended by striking out "December 31, 
2018" and substituting "June 30, 2032".
Coming into force
15   This Regulation comes into force on January 1, 2017.
Schedule 
Term for Tertiary Recovery Schemes under Section 6(2)

T-factor range 
(Beginning t-factor - Ending t-factor)
Term of Months
0.001 - 0.223
0
0.224 - 0.228
2
0.229 - 0.233
3
0.234 - 0.238
4
0.239 - 0.247
5
0.248 - 0.252
6
0.253 - 0.257
7
0.258 - 0.266
8
0.267 - 0.271
9
0.272 - 0.276
10
0.277 - 0.285
11
0.286 - 0.290
12
0.291 - 0.295
13
0.296 - 0.304
14
0.305 - 0.309
15
0.310 - 0.314
16
0.315 - 0.323
17
0.324 - 0.328
18
0.329 - 0.333
19
0.334 - 0.342
20
0.343 - 0.347
21
0.348 - 0.352
22
0.353 - 0.361
23
0.362 - 0.366
24
0.367 - 0.371
25
0.372 - 0.380
26
0.381 - 0.385
27
0.386 - 0.390
28
0.391 - 0.400
29
0.401 - 0.404
30
0.405 - 0.409
31
0.410 - 0.419
32
0.420 - 0.423
33
0.424 - 0.428
34
0.429 - 0.438
35
0.439 - 0.442
36
0.443 - 0.447
37
0.448 - 0.457
38
0.458 - 0.461
39
0.462 - 0.466
40
0.467 - 0.476
41
0.477 - 0.480
42
0.481 - 0.485
43
0.486 - 0.495
44
0.496 - 0.500
45
0.501 - 0.504
46
0.505 - 0.514
47
0.515 - 0.519
48
0.520 - 0.523
49
0.524 - 0.533
50
0.534 - 0.538
51
0.539 - 0.542
52
0.543 - 0.552
53
0.553 - 0.557
54
0.558 - 0.561
55
0.562 - 0.571
56
0.572 - 0.576
57
0.577 - 0.580
58
0.581 - 0.590
59
0.591 - 0.595
60
0.596 - 0.600
61
0.601 - 0.609
62
0.610 - 0.614
63
0.615 - 0.619
64
0.620 - 0.628
65
0.629 - 0.633
66
0.634 - 0.638
67
0.639 - 0.647
68
0.648 - 0.652
69
0.653 - 0.657
70
0.658 - 0.666
71
0.667 - 0.671
72
0.672 - 0.676
73
0.677 - 0.685
74
0.686 - 0.690
75
0.691 - 0.695
76
0.696 - 0.704
77
0.705 - 0.709
78
0.710 - 0.714
79
0.715 - 0.723
80
0.724 - 0.728
81
0.729 - 0.733
82
0.734 - 0.742
83
0.743 - 0.747
84
0.748 - 0.752
85
0.753 - 0.761
86
0.762 - 0.766
87
0.767 - 0.771
88
0.772 - 0.780
89
0.781 - 1.000
90


--------------------------------
Alberta Regulation 211/2016
Mines and Minerals Act
NATURAL GAS ROYALTY REGULATION, 2017
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 350/2016) 
on December 13, 2016 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
Part 1 
General
	1	Interpretation
	2	Lessee's liability unaffected
	3	Application of Regulation
	4	Furnishing documents to the Minister
	5	Reporting standards
	6	Petrinex
	7	Prescribed prices, factors, deductions and allowances
Part 2 
Royalty
Division 1 
Determination of the Crown's  
Royalty Share
	8	Royalty share of natural gas, gas products 
and field condensate
	9	Calculation of royalty
	10	Royalty calculation point
	11	Special royalty O.C.
	12	Unit operations
	13	Proportionment of royalty liability
	14	When royalty not payable
	15	Royalty exemptions
Division 2 
Royalty Compensation
	16	Liability for royalty compensation
	17	Payment of royalty compensation
	18	Injection credits
	19	Allowable costs
	20	Deposits
Part 3 
Opted in Wells
	21	Definitions
	22	Eligible well
	23	Application
	24	Approval
	25	When opt in has effect
	26	When opt in approval ceases to have effect
Part 4 
Administration and Enforcement
	27	Well groups
	28	Royalty clients
	29	Responsibility for quantities available for sale
	30	Allocations of quantities available for sale
	31	Provisional royalty compensation
	32	Other reports
	33	Natural gas liquids reports
	34	Keeping of records
	35	Penalties
	36	Penalty following audit
	37	Interest
	38	Audit of Department records
	39	Approved schemes under the Enhanced Hydrocarbon 
Recovery Royalty Regulation and the Emerging Resources 
Royalty Regulation
Part 5 
Consequential Amendments 
and Coming into Force
	40 - 41	Consequential amendments
	42	Coming into force 
 
Schedules
Part 1 
General
Interpretation
1(1)  In this Regulation,
	(a)	"Act" means the Mines and Minerals Act;
	(b)	"allocation data" means owner allocation data or stream 
allocation data or both;
	(c)	"allowable costs" means costs and allowances for which the 
Crown is liable under section 19(2);
	(d)	"battery" means a pipeline or pipeline installation at which 
natural gas recovered from one or more wells is collected and 
measured prior to its delivery to another facility or into a 
pipeline;
	(e)	"butanes" means, in addition to its normal scientific meaning, 
a mixture mainly of butanes that ordinarily may contain some 
propane or pentanes plus;
	(f)	"commercial storage facility" means the wells and other 
facilities used in the operation of a commercial storage 
scheme and designated by the Minister as a commercial 
storage facility for the purposes of this Regulation;
	(g)	"commercial storage scheme" means a scheme approved or 
ordered by the Regulator under the Oil and Gas 
Conservation Act for the storage of natural gas or a gas 
product in an underground formation or subsurface cavern 
and designated by the Minister as a commercial storage 
scheme for the purposes of this Regulation or the 2002 
Regulation;
	(h)	"common stream operator", in relation to natural gas or 
residue gas delivered from one or more facilities to a receipt 
meter station in a production month, means the person who is 
recorded in Petrinex as the common stream operator in 
relation to that natural gas or residue gas;
	(i)	"component 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;
	(j)	"cost of conservation gas" means the cost of conservation gas 
determined in accordance with section 7(5) of Schedule 1;
	(k)	"Crown lease" means an agreement granting petroleum and 
natural gas rights, natural gas rights, petroleum rights or oil 
sands rights;
	(l)	"Crown percentage", in relation to a well group, means the 
portion of the production from well events in the group that 
is recovered pursuant to a Crown lease, as shown in the 
records of the Department;
	(m)	"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;
	(n)	"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;
	(o)	"document" includes information transmitted electronically;
	(p)	"drilling spacing unit" means a drilling spacing unit 
prescribed or established pursuant to regulations under the 
Oil and Gas Conservation Act;
	(q)	"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;
	(r)	"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;
	(s)	"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;
	(t)	"gas injection scheme" means a scheme, other than a 
commercial storage scheme, approved or ordered by the 
Regulator under the Oil and Gas Conservation Act and 
respecting the injection of natural gas or a gas product into an 
underground formation and is not part of an enhanced 
hydrocarbon scheme as defined in the Enhanced 
Hydrocarbon Recovery Royalty Regulation;
	(u)	"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;
	(v)	"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;
	(w)	"gathering" includes compressing by means of a compressor 
forming part of a gathering system;
	(x)	"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;
	(y)	"IETP costs" means allocable costs as defined in the 
Innovative Energy Technologies Regulation (AR 250/2004);
	(z)	"initial activity" means all drilling and fracture operations in 
a well resulting in a TVD, TLL or TPPe that occur within 
one year of the well first commencing production;
	(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 2009 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)	"opted in well", means a well that has been approved as an 
early opted in well by the Minister under Part 3 of this 
Regulation or under Part 2 of the Petroleum Royalty 
Regulation, 2017;
	(ii)	"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 30(3)(e)(ii);
	(jj)	"owner allocation factor" means an owner allocation factor 
referred to in section 30(3)(c) or (d);
	(kk)	"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;
	(ll)	"Petrinex" means the electronic information system 
administered by the Department;
	(mm)	"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;
	(nn)	"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;
	(oo)	"producing interval" means a perforation from which 
production is obtained;
	(pp)	"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;
	(qq)	"production month", in relation to any natural gas, gas 
product or field condensate, means the month in which it is 
recovered or obtained;
	(rr)	"propane" means, in addition to its normal scientific 
meaning, a mixture mainly of propane that ordinarily may 
contain some ethane or butanes;
	(ss)	"quantities available for sale", in relation to a production 
month, means
	(i)	the quantities or volumes of gas products obtained 
during the production month at a gas processing plant or 
reprocessing plant,
	(ii)	the quantities or volumes of natural gas or gas products 
delivered from a gathering system during the production 
month, except quantities or volumes delivered to a gas 
processing plant, reprocessing plant or to another 
gathering system,
	(iii)	the quantities of natural gas delivered during the 
production month from a battery, or
	(iv)	the quantities or volumes of natural gas or gas products 
disposed of during the production month before being 
delivered to a gas processing plant or reprocessing 
plant;
	(tt)	"receipt meter station" means each place on a pipeline at 
which natural gas or residue gas can be received and the 
quantity so received can be measured;
	(uu)	"re-entry" means all drilling or fracture operations in a well 
resulting in a change to TVD, TLL or TPPe that occurs at 
least one year after the first date a well commences 
production after initial activity or previous re-entry activity;
	(vv)	"Regulator" means the Alberta Energy Regulator;
	(ww)	"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;
	(xx)	"residue gas" means a gaseous mixture consisting primarily 
of methane and obtained as a separate product at a gas 
processing plant or reprocessing plant;
	(yy)	"royalty calculation point", in relation to any natural gas, gas 
product or field condensate, means the place determined 
under section 10 as the place at which the Crown's royalty 
share of the natural gas, gas product or field condensate is to 
be calculated;
	(zz)	"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 31, a person who is deemed to be a 
royalty client in respect of those quantities by reason of 
the operation of section 31(1)(c) or (2)(c);
	(aaa)	"royalty client account" means an account maintained for a 
royalty client pursuant to section 17(6);
	(bbb)	"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 16;
	(ccc)	"royalty invoice" means a monthly invoice issued and sent to 
a royalty client pursuant to section 17(1);
	(ddd)	"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;
	(eee)	"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 30(3)(e)(i);
	(fff)	"stream allocation factor" means a stream allocation factor 
referred to in section 30(3)(a) or (b);
	(ggg)	"TLL" means the total lateral length of a well in metres as 
determined by the Minister:
	(i)	for a single leg well by subtracting the TVD from the 
TMD, and
	(ii)	for a multi-leg well by subtracting the deepest TVD in 
the well from the TMD;
	(hhh)	"TMD" means the total measured depth of a well in metres 
calculated by using the measured depth of the well bore and 
adding the length of any legs in the well measured from the 
end of the leg back to the first unique kickoff point for that 
leg;
	(iii)	"TPPe" means the total proppant placed in a well in tonnes as 
determined by the Minister using the records of the Regulator 
and the proppant equivalent prescribed by the Minister;
	(jjj)	"TVD" means the true vertical depth of a well in metres 
determined by measuring the vertical distance in metres in a 
perpendicular line from the kelly bushing of a well to the 
base of the deepest drilled leg.
	(kkk)	"2002 Regulation" means the Natural Gas Royalty 
Regulation, 2002 (AR 220/2002);
	(lll)	"2009 Regulation" means the Natural Gas Royalty 
Regulation, 2009 (AR 221/2008);
	(mmm)	"unit area" means the unit area under a unit agreement or unit 
operation order;
	(nnn)	"well event" means
	(i)	a part of a well completed in a zone and given a unique 
well identifier by the Regulator,
	(ii)	parts of a well completed in 2 or more zones and given 
a single unique well identifier by the Regulator,
	(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 Regulator, 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 Regulator 
makes a decision whether or not to give the parts a 
single unique well identifier;
	(ooo)	"well group" means a well group referred to in section 27.
(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 CPA Canada Handbook published from time to time by the 
Chartered Professional Accountants of Canada.
(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
	(a)	on or after January 1, 2017,
	(i)	if the well has a spud date of January 1, 2017 or later;
	(ii)	if the well has a spud date earlier than January 1, 2017, 
and has been subject to re-entry on or after January 1, 
2017 and either or both of the following apply:
	(A)	the well has been given a new spud or finished 
drilling date and the well has been given a new 
TVD or TMD;
	(B)	new proppant has been placed in the well that 
meets the minimum equivalency threshold set out 
in Schedule 1;
		as long as the well has a C* amount in dollars remaining 
as calculated under section 2 of Schedule 1,
	(b)	on or after July 13, 2016, if the well has been approved as an 
opted in well, and
	(c)	on or after January 1, 2027, from any well.
(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;
	(i)	quantities of proppant placed must be expressed in tonnes to 
the nearest tenth of a tonne.
(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.
Petrinex
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 32(4), (5) or (7),
	(d)	a report, the deadline for the furnishing of which occurs on or 
after July 13, 2016, or
	(e)	a report related to July, 2016 or any subsequent production 
month,
the allocation data, information or report must be furnished by 
electronic transmission to Petrinex in accordance with the directions of 
the Minister respecting the operation of Petrinex.
(2)  Unless the Minister directs otherwise, subsection (1) does not 
apply to the furnishing of reports required to be furnished under 
section 33(3).
(3)  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.
(4)  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.
(5)  A reference in this Regulation to a report filed with the Regulator, 
to the extent it applies to a report related to July 2016 or any 
subsequent production month, shall be read as a reference to a report 
filed with the Regulator by electronic transmission to Petrinex.
(6)  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 Regulator 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.
(7)  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 an invoice, 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 Petrinex in accordance with the 
directions of the Minister respecting the operation of the 
Registry, and
	(b)	an invoice, 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 Petrinex.
Prescribed prices, factors, deductions and allowances
7(1)  The Minister shall determine an amount per gigajoule as the Gas 
Reference Price for January, 2017 and for each subsequent production 
month.
(2)  The Minister shall determine for January, 2017 and for each 
subsequent production month 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 determine for January, 2017 and for each 
subsequent production month 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 determine for January, 2017 and for each 
subsequent production month, determine
	(a)	an amount per gigajoule as the Propane ISC Reference Price, 
and
	(b)	an amount per gigajoule as the Propane ISC Adjusted 
Intra-Alberta Transportation Deduction.
(5)  The Minister shall determine for January, 2017 and for each 
subsequent production month
	(a)	an amount per gigajoule as the Butanes ISC Reference Price, 
and
	(b)	an amount per gigajoule as the Butanes ISC Adjusted 
Intra-Alberta Transportation Deduction.
(6)  The Minister shall, determine for January, 2017 and for each 
subsequent production month,
	(a)	an amount per cubic metre as the Pentanes Plus Par Price,
	(b)	an amount per gigajoule as the Pentanes Plus ISC Reference 
Price, and
	(c)	an amount per gigajoule as the Pentanes Plus ISC Adjusted 
Intra-Alberta Transportation Deduction.
(7)  The Minister shall determine for January, 2017 and for each 
subsequent production month,
	(a)	a Propane Spec Reference Price, expressed as an amount per 
cubic metre, for propane obtained by fractionation as a 
separate product from a natural gas liquids mix,
	(b)	a Butanes Spec Reference Price, expressed as an amount per 
cubic metre, for butanes obtained by fractionation as a 
separate product from a natural gas liquids mix,
	(c)	a Pentanes Plus Spec Reference Price, expressed as an 
amount per cubic metre, for pentanes plus obtained by 
fractionation as a separate product from a natural gas liquids 
mix,
	(d)	a Propane Mix Reference Price, expressed as an amount per 
cubic metre, for propane contained in a natural gas liquids 
mix,
	(e)	a Butanes Mix Reference Price, expressed as an amount per 
cubic metre, for butanes contained in a natural gas liquids 
mix, and
	(f)	a Pentanes Plus Mix Reference Price, expressed as an amount 
per cubic metre, for pentanes plus contained in a natural gas 
liquids mix.
(8)  Subject to subsection (9), an amendment to a determination 
	(a)	under subsection (6)(a) to prescribe a different Pentanes Plus 
Par Price for a production month to which the order applies, 
or
	(b)	under subsection (7) to prescribe a different Propane Spec 
Reference Price, Butanes Spec Reference Price, Pentanes 
Plus Spec Reference Price, Propane Mix Reference Price, 
Butanes Mix Reference Price or Pentanes Plus Mix 
Reference Price for a production month to which the order 
applies
may not be made under subsection (6)(a) or subsection (7) after August 
31 of the 3rd year following the end of the calendar year in which the 
production month occurred.
(9)  Without limiting the operation of section 8(1)(g) of the Act, the 
Minister may extend the period provided for in subsection (8) for one 
year if the Minister is of the opinion that it is appropriate to extend the 
period and on extending the period shall give written notice of the 
extension as soon as reasonably practicable.
(10)  The Minister shall divide Alberta into regions for the purposes of 
subsection (12)(a).
(11)  The Minister may determine for January, 2017 and for each 
subsequent production month a receipt meter station factor for a 
receipt meter station.
(12)  The Minister may determine for January, 2017 and for each 
subsequent production month, 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.
(13)  The Minister may designate or terminate the designation of any 
well event as a technical solution pilot well event.
(14)  The adjustment factor for a well event for a production month is 
deemed to be zero if
	(a)	the Minister does not determine 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.
(15)  For the purpose of subsection (12)(a) and (b), the Athabasca Oil 
Sands Area is the strata and area designated as the Athabasca Oil 
Sands Area by the Regulator 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.
(16)  For the purpose of subsection (12)(c) and (d), the Cold Lake Oil 
Sands Area is the strata and area designated as the Cold Lake Oil 
Sands Area by the Regulator 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.
(17)  Any gas reference price prescribed by the Minister under the 
Natural Gas Royalty Regulation 2009 for the July 2016, August 2016, 
September 2016, October 2016, November 2016 and December 2016 
production months is deemed to have been made by the Minister under 
this Regulation.
(18)  The Minister shall not prescribe a par price or reference price 
under this section that is less than zero.
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, 2017 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, 2017 except that 
	(a)	the par price to be used under section 5 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 6 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.
Calculation of royalty
9   The royalty reserved to the Crown on natural gas recovered from a 
well event pursuant to a Crown lease that is also eligible production 
under the New Well Royalty Regulation is the lesser of
	(a)	the royalty percentage calculated pursuant to section 8, and
	(b)	5%.
Royalty calculation point
10   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.
11   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
12   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
13   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
14(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 agreements forming part of a Project or 
Project land as defined under the Oil Sands Royalty 
Regulation, 2009;
	(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
15   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
16(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 
Spec Reference Price for the production month in which the 
field condensate was obtained.
Payment of royalty compensation	
17(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 
Petrinex or information omitted from Petrinex 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 Petrinex, 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
18(1)  If natural gas or a gas product is injected during a production 
month after December 31, 2016 or after July 13, 2016 for an opted in 
well, into a pool through a gas injection facility for the account of or 
for the benefit of a royalty client other than as part of a scheme under 
the Enhanced Hydrocarbon Recovery Royalty Regulation, 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 32(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 32(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
19(1)  In this section, "facility" does not include a gas injection 
facility, commercial storage facility or equipment that is directly 
related to the injection of any product down hole for any purpose and 
also does not include any assets used for any type of gas injection or 
commercial storage.
(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 prior to the royalty calculation point, 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
may, 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 the months of 
July to December 2016 for an opted in well, and in respect of the 
months in 2017 and subsequent years with respect to other wells.
(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 16(3) in respect of that royalty 
client for that year.
(6)  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.
(7)  The operator of a facility that commences operations in July to 
December 2016 for opted in wells and with respect to other wells, 
commences operations in a month in 2017 or a 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.
(8)  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.
(9)  Despite subsection (8), 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.
(10)  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.
(11)  The operator of a facility shall furnish to the Minister in respect 
of the months of July to December 2016 for opted in wells, and in 
respect of the months in 2017 and subsequent years for other wells,  a 
report respecting the allowable capital costs and corresponding 
allowable operating costs of the facility for that year, on or before 
April 30 in the year following the year to which the report relates.
(12)  If a facility commences operations in July to December 2016 for 
opted in wells, and for other wells, commences operations in a month 
in 2017 or a subsequent year, a report may not be furnished under 
subsection (11) by the operator of that facility in respect of that year 
and will not be accepted by the Minister if the operator has not 
furnished a report under subsection (7) in respect of that facility.
(13)  A royalty client shall furnish to the Minister in respect of the 
months of July to December 2016 for opted in wells, and in respect of 
the months in 2017 and subsequent years for other wells, 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.
(14)  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
20(1)  A deposit made by a royalty client pursuant to section 19 of the 
2009 Regulation and held by the Crown between the months of July 
2016 and December 2016 for opted in wells or, for other wells, on or 
after January 1, 2017 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 July 13, 2016 for opted in wells or, for other 
wells, on or after January 1, 2017 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 
Opted In Wells
Definitions
21   In this Part, "eligible well" means a well that is an eligible well 
under section 22.
Eligible well
22(1)  A well that meets all of the following criteria is an eligible well 
for the purposes of this Part:
	(a)	a well with a spud date on or after July 13, 2016 and on or 
before December 31, 2016; 
	(b)	a well that does not produce oil sands or crude bitumen, other 
than a gas well as defined in the Oil and Gas Conservation 
Rules (AR 151/71);
	(c)	the Minister is of the opinion that the well would not have 
been spud between July 13, 2016 and December 31, 2016 
without the approval for opt in by the Minister under this 
Part;
	(d)	the well is not subject to re-entry.
(2)  Information must be provided to the Minister by the licensee if 
required to aid in determining whether a well meets the criteria set out 
in this section.
Application
23(1)  The licensee of an eligible well may apply, in accordance with 
this section, to have the royalty on natural gas recovered, and gas 
products and field condensate obtained from that well determined 
under this Regulation.
(2)  The licensee must furnish the application in writing to the Minister 
before the well's spud date and on or after July 13, 2016.
Approval
24   On receiving an application under section 23, the Minister may 
approve an application for opt in for an eligible well if, in the opinion 
of the Minister, it is in the public interest to do so.
When opt in has effect
25   An approval by the Minister in respect of an eligible well has 
effect from the first day of the first production month of the eligible 
well.
When opt in approval ceases to have effect
26   An opt in approval by the Minister ceases to have effect in respect 
of a well on the date on which the well ceases to be an eligible well;
Part 4 
Administration and Enforcement
Well groups
27(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
28(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 30 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 30 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 30 for the production month in which the assignment is 
effective and for subsequent production months.
(4)  A royalty client is authorized to make an objection to the Minister 
under section 39 of the Act.
Responsibility for quantities available for sale
29   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
30(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
31(1)  If a facility operator is responsible for allocating quantities 
available for sale pursuant to section 30 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 Regulator 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 propane 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 or the Propane Spec 
Reference Price for the production month, as the case 
may be, where the quantities consist of propane,
	(iv)	the Butanes Reference Price or the Butanes Spec 
Reference Price for the production month, as the case 
may be, where the quantities consist of butanes,
	(v)	the Pentanes Plus Reference Price or the Pentanes Plus 
Spec Reference Price for the production month, as the 
case may be, 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 30 by way of initial or amended allocation 
data furnished to the Minister or reports filed with the Regulator, 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 37(2)(a) in respect 
of those amounts to the extent those amounts are so reduced.
(8)  Despite section 37, 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 Regulator 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 37(2)(b) in 
respect of the provisional royalty compensation to the extent it is so 
reduced.
Other reports
32(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 July 13, 2016 
for opted in wells or January 1, 2017, 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 
Regulator's code number for any of those pools, or
	(vi)	the field containing a pool referred to in subclause (v) or 
the Regulator'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 to and including 
June 2014, 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 18(4),
	(a)	the reproducing facility referred to in section 18 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 July 13, 2016 for 
opted in wells or January 1, 2017.
(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 the months of July 2016 to December 
2016 for opted in wells, or for other wells, recovered in a month in 
2017 or a subsequent year, 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 July 2016 to 
December 2016 for opted in wells, or for other wells, delivered in a 
month in 2017 or subsequent year 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 Regulator, natural gas or 
residue gas is received in July 2016 to December 2016 for 
opted in wells, or for other wells received in a month in 2017 
or subsequent year 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.
Natural gas liquids reports
33(1)  In this section, "natural gas liquids" includes ethane, propane, 
butanes, pentanes plus and field condensate.
(2)  A person who purchases natural gas liquids specified by the 
Minister under purchase arrangements specified by the Minister and 
takes delivery of the natural gas liquids in July, 2016 to December 
2016 for opted in wells, or for other wells takes delivery in a month in 
2017 or subsequent year at locations in Alberta specified by the 
Minister shall, on or before the 1st day of the 2nd month following the 
month in which the person takes delivery of the natural gas liquids, 
furnish to the Minister, in the form required by the Minister, a report 
that includes all of the following information:
	(a)	the volumes of natural gas liquids purchased and delivered;
	(b)	the locations at which the natural gas liquids were delivered;
	(c)	the costs of purchasing the natural gas liquids;
	(d)	any other information required by the Minister.
(3)  The Minister may direct a person who transports, stores, 
reprocesses, sells, purchases or disposes of natural gas liquids to 
furnish to the Minister in the form required by the Minister one or 
more reports, on a monthly or other basis, containing information 
relating to the transportation, storage, reprocessing, sale, purchase or 
disposition of natural gas liquids, as specified in the direction.
(4)  The Minister may specify in a direction given under subsection (3) 
the deadline for furnishing a report.
(5)  Instead of furnishing a report under subsection (3), a person may, 
with the approval of the Minister, permit an employee or agent of the 
Department designated by the Minister to examine the person's records 
and to take away the records for further examination and copying for 
the purpose of obtaining the information the person was directed to 
provide in a report furnished under subsection (3).
(6)  A person who is required to furnish a report under this section 
shall keep the records required to be kept under section 34
	(a)	at the person's place of business in Alberta, or
	(b)	at a location from which, at the direction of the Minister, the 
records can be produced forthwith at a location specified by 
the Minister.
(7)  The Minister may in a written direction 
	(a)	exempt any person or class of persons from the application of 
this section or any provision of this section, subject to any 
conditions set out in the direction, or
	(b)	extend the deadline for the furnishing of any report under this 
section in respect of any month, subject to any conditions set 
out in the direction.
(8)  The Minister may require a person, or a representative of a person, 
who is required to furnish a report under subsection (2) or (3) to 
provide a written declaration attesting to the completeness, accuracy 
and integrity of the information contained in the report.
(9)  If a person who has furnished a report to the Minister under this 
section becomes aware that information in the report is inaccurate or 
incomplete, the person shall forthwith furnish to the Minister an 
amended report that contains information that is both accurate and 
complete.
(10)  For the purposes of subsection (9), the information in a report 
furnished under this section is inaccurate or incomplete if the 
information in the report does not correspond with the information in 
the records with respect to the report required to be kept by the person 
under section 34.
Keeping of records
34(1)  A person who is or was required or permitted by this 
Regulation, or the 2009 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
35(1)  A person who is required to furnish a report to the Minister 
under section 19(11) 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 19(11) 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 
19(13) 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 19(13) 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 32(2) 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)  A person who is required to furnish a report for a month to the 
Minister under section 33(2)
	(a)	who fails to furnish the report by the prescribed deadline, or 
	(b)	who furnishes a report for the month that does not include the 
required information for all of the specified locations at 
which the person purchased natural gas liquids in the month,
is liable to pay a penalty of $200 for each location in respect of which 
the required information was not provided to a maximum of $3000 for 
each month or part of a month during which the failure to furnish the 
report or to include the required information for a location continues.
(9)  A person who is required to furnish a report to the Minister under 
section 33(3) who fails to furnish the report by the deadline specified 
in the direction is liable to pay a penalty of $3000 for each month or 
part of a month during which the failure continues.
(10)  Subject to subsection (12), the Minister may impose a penalty on 
a person who is required to furnish a report under section 33(2) or (3) 
who furnishes a report that contains inaccurate or incomplete 
information.
(11)  For the purposes of subsection (10), the information in a report 
furnished under section 33(2) or (3) is deemed to be inaccurate or 
incomplete if the information in the report does not correspond with 
the information in the records with respect to the report required to be 
kept by the person under section 34.
(12)  The maximum penalty that may be imposed on a person under 
subsection (10) with respect to a particular report is $25 000.
(13)  In determining whether to impose a penalty on a person under 
subsection (10) and in deciding on the amount of the penalty to be 
imposed, the Minister shall consider the following:
	(a)	any representations by the person with respect to the person's 
liability for the penalty or the amount of the penalty;
	(b)	whether the person made reasonable efforts to provide 
accurate and complete information;
	(c)	the extent and significance of any information omitted from 
the report and the extent and significance of the inaccuracy of 
any information in the report;
	(d)	the affect, if any, the omission of the information from the 
report or the inclusion of inaccurate information in the report 
had on the Minister's determination of a reference price 
prescribed under section 7(7);
	(e)	the number of times the Minister informed the person that a 
report contained inaccurate or incomplete information but did 
not impose a penalty on the person under subsection (10);
	(f)	the number of penalties and the amounts of the penalties 
previously imposed on the person under subsection (10);
	(g)	any other matter the Minister considers appropriate.
(14)  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
36(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 beginning in July 2016 to December 2016 for 
opted in wells, or for other wells, in respect of all production months 
beginning in in 2017 or in 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
37(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 
19(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.
Audit of Department records
38(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 7(7) or 7(11), 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.
Approved schemes under the Enhanced Hydrocarbon Recovery Royalty 
Regulation and the Emerging Resources Royalty Regulation
39(1)  Notwithstanding anything in this Regulation, the Enhanced 
Hydrocarbon Recovery Royalty Regulation applies to the calculation 
of royalty under this Regulation on natural gas recovered, and gas 
products and field condensate obtained from a well event to which an 
approval as defined in the Enhanced Hydrocarbon Recovery Royalty 
Regulation applies.
(2)  Notwithstanding anything in this Regulation, the Emerging 
Resources Royalty Regulation applies to the calculation of royalty 
under this Regulation on natural gas recovered, and gas products and 
field condensate obtained from a well to which an approval as defined 
in the Emerging Resources Royalty Regulation applies.
Part 5 
Consequential Amendments 
and Coming into Force
Consequential amendment
40   The Natural Gas Royalty Regulation, 2009 (AR 221/2008) 
is amended by repealing section 3(1) and substituting the 
following:
Application of Regulation
3(1)  Subject to section 3(1) of the Natural Gas Royalty Regulation, 
2017, this Regulation applies to royalty on natural gas recovered and 
gas products and field condensate obtained on or after January 1, 
2009 until December 31, 2026 for wells with a spud date before 
January 1, 2017.
Consequential amendment
41   The Petrochemicals Diversification Program Royalty 
Credit Regulation is amended in section 6 by adding "or the 
Natural Gas Royalty Regulation, 2017" after "Natural Gas Royalty 
Regulation, 2009 (AR 221/2008)". 
Coming into force
42   This Regulation is deemed to have come into force on July 13, 
2016.
Schedule 1 
Natural Gas, Residue Gas and Solution Gas
Interpretation
1(1)  In this Schedule,
	(a)	"ACCI" means the Alberta Capital Cost Index for a year 
determined by the Minister on an annual basis;
	(b)	"Crown interest" means the percentage of Crown ownership 
of natural gas 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);
	(c)	"C*" means the drilling and completion cost allowance in 
dollars calculated for a well under section 2 of this Schedule;
	(d)	"gas" means natural gas, residue gas or solution gas;
	(e)	"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 6 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;
	(f)	"TVDa" means the average of the true vertical depths of all 
drilled legs.
(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.
Calculation of C* for a Well
2(1)  The C* for a well where the TVD of the well is greater than 2000 
metres is the dollar amount calculated in accordance with the 
following formula:
C* = ACCI x ((1170 x (TVD - 249)) + (3120 x (TVD-2000)) + (Y x 
800 x TLL) + (0.6 x TVDa x TPPe)) 
 
where
	Y      	is the linear factor for multi leg wells, determined in 
accordance with the following formula:
Y = 1.39 - 0.04 x (TMD/TVDa) 
 
but,
	(a)	if the ratio of TMD/TVDa is less than 10, Y equals 1 
	(b)	if Y is calculated as less than 0.24, Y equals 0.24.
If TVD is equal to or less than 249, (TVD - 249) equals 0.
(2)  The C* for a well where the TVD of the well is 2000 metres or 
less is the dollar amount calculated in accordance with the following 
formula:
C* = ACCI x ((1170 x (TVD - 249)) + (Y x 800 x TLL) + (0.6 x 
TVDa x TPPe)) 
 
where
	Y      	is the linear factor for multi leg wells, determined in 
accordance with the following formula:
Y = 1.39 - 0.04 x (TMD/TVDa) 
 
but,
	(a)	if the ratio of TMD/TVDa is less than 10, Y equals 1;
	(b)	if Y is calculated as less than 0.24, Y equals 0.24.
If TVD is equal to or less than 249, (TVD - 249) equals 0.
(3)  The incremental C* for a well where re-entry results in 
lengthening only is the dollar amount calculated in accordance with the 
following formula:
Incremental C* = ACCI x (1000 x TLLi) 
 
where
	TLLi	is the TLL of the incremental drilling done since the last 
drilling occurrence that resulted in a calculation of C* under 
this regulation.
(4)  Where re-entry results in fracturing only and at least the minimum 
amount of proppant equivalent of 50 tonnes for a horizontal well or 10 
tonnes for a vertical well is placed, the incremental C* for the well is 
the dollar amount calculated in accordance with the following formula:
Incremental C* = ACCI x (1.5 x (0.6 x TVDp x TPPi) + 150 000) 
 
where
	TPPi        	is the TPPe of the incremental proppant placed since the 
last proppant was placed that resulted in a calculation of 
C* under this Regulation; 
	TVDp      	is the average of the true vertical depth of the legs 
where incremental proppant has been placed.
(5)  The incremental C* for a well, where a re-entry results in 
fracturing, at least the minimum amount of proppant equivalent of 50 
tonnes for a horizontal well or 10 tonnes for a vertical well is placed, 
and the well is also lengthened, is the dollar amount calculated as 
follows:
	(a)	for wells that have a TVD greater than 2000 metres before 
and after lengthening:
Incremental C* = C*new - C*prime 
 
where
	C*new      	is the dollar value calculated using the 
formula in subsection (1), but where TVD, 
TVDa, TPPe, TLL and Y are measured or 
calculated for the well after the re-entry and 
the ACCI is the ACCI for the year of the 
re-entry; and
	C*prime    	is the dollar value calculated using the 
formula in subsection (1), but where TVD, 
TVDa, TPPe, TLL and Y are measured or 
calculated for the well immediately before the 
re-entry and the ACCI is the ACCI for the 
year of the re-entry
	(b)	for wells that have a TVD of 2000 metres or less before 
lengthening, but a TVD greater than 2000 metres after 
lengthening:
Incremental C* = C*new - C*prime 
 
where
	C*new      	is the dollar value calculated using the 
formula in subsection (1), but where TVD, 
TVDa, TPPe, TLL and Y are measured or 
calculated for the well after the re-entry and 
the ACCI is the ACCI for the year of the 
re-entry; and
	C*prime    	is the dollar value calculated using the 
formula in subsection (2), but where TVD, 
TVDa, TPPe, TLL and Y are measured or 
calculated for the well immediately before the 
re-entry and the ACCI is the ACCI for the 
year of the re-entry
	(c)	for wells that have a TVD of 2000 metres or less before and 
after lengthening:
Incremental C* = C*new - C*prime 
 
where
	C*new      	is the dollar value calculated using the 
formula in subsection (2), but where TVD, 
TVDa, TPPe, TLL and Y are measured or 
calculated for the well after the re-entry and 
the ACCI is the ACCI for the year of the 
re-entry; and
	C*prime    	is the dollar value calculated using the 
formula in subsection (2), but where TVD, 
TVDa, TPPe, TLL and Y are measured or 
calculated for the well immediately before the 
re-entry and the ACCI is the ACCI for the 
year of the re-entry.
(6)  For the purposes of this section a vertical well is a well that is not 
determined to be a horizontal well by the Minister under subsection 
(7).
(7)  For the purposes of this section a horizontal well is a well that is 
determined to be a horizontal well by the Minister based on:
	(a)	the well having at least one well event classified by the 
Regulator as "horizontal", and
	(b)	according to the records of the Regulator, the well having at 
least one well event that was drilled at a wellbore inclination 
angle exceeding 80 degrees.
(8)  Incremental drilling and usage of proppant after the date the C* for 
a well is first calculated will result in an increase in the C* for a well 
as a result of a recalculation of the C* under whichever of subsections 
(3), (4) or (5) are applicable to the incremental drilling and usage of 
proppant. 
(9)  A well with a spud date before January 1, 2017, other than an 
opted in well, that is subject to re-entry will receive a C*, but only for 
the incremental drilling done in the well and for the proppant used on 
the well after January 1, 2017.
(10)  For further clarity, any re-entry that takes place within the year 
following the first date a well commences production after a previous 
re-entry will result in a recalculation of incremental C* under 
whichever of subsections (3), (4) or (5) are applicable instead of a new 
incremental C*.
Calculation of Crown royalty share when C* greater than zero
3(1)  Subject to subsection (2), the royalty for a month is the amount 
calculated in accordance with the following formula:
Royalty amount = (5%) x quantity x Crown interest
(2)  Royalty will be calculated according to subsection (1) until a 
well's total revenue from all hydrocarbon products as determined by 
the Minister equals C* or until a well has been abandoned according to 
the records of the Regulator, whichever comes first.
(3)  Once a well's total revenue from all hydrocarbon products as 
determined by the Minister equals C*, royalty for all subsequent 
months will be calculated under
	(a)	section 4 of this Schedule for
	(i)	wells spud on or after January 1, 2017,
	(ii)	opted in wells, and
	(iii)	all wells on or after January 1, 2027.
	(b)	the Natural Gas Royalty Regulation, 2009 for wells that were 
spud before January 1, 2017 and are not opted in wells until 
December 31, 2026.
(4)  Revenue from a well will be determined by multiplying the 
volumes of all the hydrocarbons produced from the well by their 
respective par prices for the time period in which the well has a C* 
greater than or equal to the revenue determined under this subsection.  
For crude oil the volumes used will be produced volumes and for 
natural gas and natural gas products the volumes used will be allocated 
volumes.
(5)  The volumes referred to in subsection (4) include freehold 
volumes.
(6)  In addition to the royalty calculated under subsection (1), the 
amount of (C% x AF) as calculated in section 4 of this Schedule shall 
be added to the royalty calculated for a month.
Calculation of royalty quantity for gas post C*
4   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)+PR%(PQ)+BR%(BQ)+PPR%(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;
	PR%        	is the percentage calculated under Schedule 3 for 
propane;
	BR%        	is the percentage calculated under Schedule 4 for 
butanes;
	PPR%      	is the percentage calculated under Schedule 5 for 
pentanes plus;
	C%           	is the percentage determined in accordance with section 
5 of this Schedule 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(12)(a) or (c) or 7(14) 
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% 
5(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 Regulator 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 Regulator precluding 
the recovery of the production from the well event are 
completed in the interval referred to in section 7(12)(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(12)(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 4 of this Schedule equals the total cost of conservation gas 
calculated under section 7(5) of Schedule 1 of the 2009 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
6   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
7(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
8   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
9(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(12)(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.
Reporting requirements
10  For the purposes of determining royalty under this Schedule, 
information required by the Minister must be provided to the Minister 
by the licensee or operator in the form and in the time prescribed by 
the Minister.
Schedule 2 
Methane and Ethane
Definitions
1   In this Schedule,
	(a)	"par price" means the par price for methane and ethane 
prescribed under section 7 of this Regulation;
	(b)	"quantity" means the monthly production in 103m3 of natural 
gas recovered from a well event according to the records of 
the Regulator;
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 of this 
Schedule in relation to the methane or ethane; 
	rq%  	is the rate for gas equivalent volume calculated pursuant to 
section 4 of this Schedule 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
	(i)	36%, R% is 36%, in the case of a production month 
commencing with and subsequent to July 2016 for 
opted in wells, or
	(ii)	36%, R% is 36%, in the case of a production month 
commencing with and subsequent to the January 2017 
production month.
(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   In the case of a production month commencing with and 
subsequent to the January 2017 production month, or for production 
from an opted in well beginning on July 13, 2016, the rp% for the 
purpose of section 2 of this Schedule is calculated in accordance with 
the following Table:
Rate for Price Table 2
Par Price
rp%
Par price greater than zero 
and less than or equal to $2.40/GJ
5%
Par price greater than $2.40/GJ and 
less than or equal to $3.00/GJ
rp% = [(par price - 2.40) x  
0.06000 + 0.05000] x 100
Par price greater than $3.00/GJ and 
less than or equal to $6.75/GJ
rp% = [(par price - 3.00) x  
0.04250 + 0.08600] x 100
Par price greater than $6.75/GJ 
rp% = [(par price -  6.75) x  
0.02250 + 0.24538] x 100
Maximum
36%

Calculation of rate for gas equivalent volume
4(1)  The rq% for the purpose of section 2 of this Schedule is 
calculated in accordance with the following Table:
Rate for Gas Equivalent Volume Table
gas equivalent volume 
(e3m3 equivalent/month)
rq%
gas equivalent volume greater 
than or equal to 345.5
0%
gas equivalent volume 
less than 345.5
rq% = (gas equivalent volume -  
345.5) x 0.04937%

Gas equivalent volume is the total of all gas volumes, field condensate 
volumes using a conversion factor of 1.7811 and crude oil volumes 
using a conversion factor of 1.7811.
(2)  rq%, determined in accordance with this section, may be less than 
or equal to 0%.
Ethane Royalty Compensation
Ethane Transportation Allowance
5(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
6   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
7(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
Definitions
1  In this Schedule,
	(a)	"par price" means the par price for propane prescribed under 
section 7 of this Regulation;
	(b)	"quantity" means the monthly production in m3 of natural 
gas recovered from a well event according to the records of 
the Regulator.
Propane royalty calculation
2(1)  Subject to subsection (2), the royalty reserved to the Crown on 
propane in respect of a production month is the percentage of the 
propane 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 propane expressed as a 
percentage of the propane on which the royalty is payable;
	rp%	is the rate for price calculated pursuant to section 3 of this 
Schedule in relation to the propane; 
	rq%	is the rate for oil equivalent volume calculated pursuant to 
section 4 of this Schedule in relation to the propane.
(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
	(i)	36%, R% is 36%, in the case of a production month 
commencing with and subsequent to July 2016 for 
opted in wells, or
	(ii)	36%, R% is 36%, in the case of a production month 
commencing with and subsequent to the January 2017 
production month.
Calculation of rate for price
3  In the case of a production month commencing with and subsequent 
to the January 2017 production month, or for production from an opted 
in well beginning on or after July 13, 2016 the rp% for the purpose of 
section 2 of this Schedule is calculated in accordance with the 
following Table:
Rate for Price Table 2
Par Price
rp%
Par price greater than zero and 
less than or equal to $88.10/m3
10%
Par price greater than $88.10/m3 
and less than or equal to 
$143.16/m3
rp% = [(par price - 88.10) x 
 0.00202 + 0.10000] x 100
Par price greater than $143.16/m3 
and less than or equal to 
$253.28/m3
rp% = [(par price -
 143.16) x 0.00111 + 
0.21122] x 100
Par price greater than $253.28/m3
rp% = [(par price - 253.28) x 
 0.00059 + 0.33347] x 100
Maximum
36%

where the Mix par price is applicable to Mix and ISC propane and the 
Spec par price is applied to Spec propane.
Calculation of rate for oil equivalent volume
4(1)  The rq% for the purpose of section 2 of this Schedule is 
calculated in accordance with the following Table:
Rate for Oil Equivalent Volume Table
Oil Equivalent Volume
Formula
oil equivalent volume greater 
than zero and less than 194.0 
cubic metres
rq% = (oil equivalent volume - 
194.0) x 0.1350%
oil equivalent volume greater 
than or equal to 194.0 cubic 
metres
rq% = 0%

Oil equivalent volume is the total of all crude oil volumes, field 
condensate volumes and gas volumes using a conversion factor of 
1.7811.
(2)  rq%, determined in accordance with this section, may be less than 
or equal to 0%.
Propane royalty compensation
5(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
	(a)	the Net Propane Reference Price for that production month, 
in the case of a production month commencing January 2017, 
or on July 13, 2016 for an opted in well, or
	(b)	the Propane Spec Reference Price or the Propane Mix 
Reference Price for that production month, as the case may 
be, in the case of a production month commencing January 
2017 or beginning on July 13, 2016 for an opted in well.
(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 fractionation allowance for the production 
month, if applicable.
(3)  Notwithstanding subsections (1) and (2) the royalty compensation 
determined under this section shall not be less than zero.
Schedule 4 
Butanes
Definitions
1  In this Schedule,
	(a)	"par price" means the par price for butanes prescribed under 
section 7 of this Regulation;
	(b)	"quantity" means the monthly production in m3 of natural gas 
recovered from a well event according to the records of the 
Regulator.
Butanes royalty calculation
2(1)  Subject to subsection (2), the royalty reserved to the Crown on 
butanes in respect of a production month is the percentage of the 
butanes 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 butanes expressed as a 
percentage of the butanes on which the royalty is payable;
	rp%  	is the rate for price calculated pursuant to section 3 of this 
Schedule in relation to the butanes; 
	rq%  	is the rate for oil equivalent volume calculated pursuant to 
section 4 of this Schedule in relation to the butanes.
(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
	(i)	36%, R% is 36%, in the case of a production month 
commencing with and subsequent to July 2016 for 
opted in wells, or
	(ii)	36%, R% is 36%, in the case of a production month 
commencing with and subsequent to the January 2017 
production month.
Calculation of rate for price
3  In the case of a production month commencing with and subsequent 
to the January 2017 production month, or for production from an opted 
in well beginning on July 13, 2016 the rp% for the purpose of section 2 
of this Schedule is calculated in accordance with the following Table:
Rate for Par Price Table 2
Par Price
rp%
Par price greater than zero and 
less than or equal to $176.19/m3
10%
Par price greater than 176.19/m3 
and less than or equal to 
$286.31/m3
rp%= [(par price - 176.19) x 
0.00101 + 0.10000] x 100
Par price greater than 286.31/m3 
and less than or equal to 
$506.55/m3
rp%= [(par price - 286.31) x 
0.00055 + 0.21122] x 100
Par price greater than $506.55/m3
rp%= [(par price - 506.55) x 
0.00031 + 0.33235] x 100
Maximum
36%

where the Mix par price is applicable to Mix and ISC butanes and the 
Spec par price is applied to Spec butanes.
Calculation of rate for oil equivalent volume
4(1)  The rq% for the purpose of section 2 of this Schedule is 
calculated in accordance with the following Table:
Rate for Oil Equivalent Volume Table
Oil Equivalent Volume
Formula
oil equivalent volume greater 
than zero and less than 194.0 
cubic metres
rq% = oil equivalent volume -  
194.0) x 0.1350%
oil equivalent volume greater 
than or equal to 194.0 cubic 
metres
rq% = 0%

Oil equivalent volume is the total of all crude oil volumes, field 
condensate volumes and gas volumes using a conversion factor of 
1.7811.
(2)  rq%, determined in accordance with this section, may be less than 
or equal to 0%.
Butanes royalty compensation
5(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
	(a)	the Net Butanes Reference Price for that production month, 
in the case of a production month commencing January 2017, 
or on July 13, 2016 for an opted in well, or
	(b)	the Butanes Spec Reference Price or the Butanes Mix 
Reference Price for that production month, as the case may 
be, in the case of a production month commencing January 
2017 or beginning on July 13, 2016 for an opted in well.
(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 fractionation allowance for the production 
month, if applicable.
(3)  Notwithstanding subsections (1) and (2) the royalty compensation 
determined under this section shall not be less than zero.
Schedule 5 
Pentanes Plus
Definitions
1  In this Schedule,
	(a)	"par price" means the par price for pentanes plus prescribed 
under section 7 of this Regulation;
	(b)	"quantity" means the monthly production in m3 of natural gas 
recovered from a well according to the records of the 
Regulator.
Pentanes Plus royalty calculation
2(1)  Subject to subsection (2), the royalty reserved to the Crown on 
pentanes plus in respect of a production month is the percentage of the 
pentanes plus 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 pentanes plus expressed 
as a percentage of the pentanes plus on which the royalty is 
payable;
	rp%  	is the rate for price calculated pursuant to section 3 of this 
Schedule in relation to the pentanes plus;
	rq%  	is the rate for oil equivalent volume calculated pursuant to 
section 4 of this Schedule in relation to the pentanes plus.
(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 
	(i)	40%, R% is 40%, in the case of a production month 
commencing with and subsequent to July 2016 for 
opted in wells, or
	(ii)	40%, R% is 40%, in the case of a production month 
commencing with and subsequent to the January 2017 
production month.
Calculation of rate for price
3  In the case of a production month commencing with and subsequent 
to the January 2017 production month, the rp% for the purpose of 
section 4 of this Schedule is calculated in accordance with the 
following Table:
Rate for Price Table 
Par Price
Formula
par price less than or equal to 
$251.70 per cubic metre
rp% = 10%
par price greater than $251.70 per 
cubic metre and less than or 
equal to $409.02 per cubic metre
rp% = [((par price - 251.70) x 
(0.00071+0.10000)) x 100]
par price greater than $409.02 per 
cubic metre and less than or 
equal to $723.64 per cubic metre
rp% = [((par price - 409.02) x 
(0.00039 + 0.21170)) x 100]
par price greater than $723.64 per 
cubic metre
rp% = [((par price - 723.64) x 
(0.00020 + 0.33440)) x 100]
Maximum
40%

where the Spec par price is applicable to Spec and ISC pentanes plus 
and the Mix par price is applied to Mix pentanes plus.
Calculation of rate for oil equivalent volume
4(1)  The rq% for the purpose of section 2 of this Schedule is 
calculated in accordance with the following Table:
Rate for Oil Equivalent Volume Table
Oil Equivalent Volume
Formula
oil equivalent volume greater 
than zero and less than 194.0 
cubic metres
rq% = (oil equivalent volume -  
194.0) x 0.1350%
oil equivalent volume greater 
than or equal to 194.0 cubic 
metres 
rq% = 0%

Oil equivalent volume is the total of all crude oil volumes, field 
condensate volumes and gas volumes using a conversion factor of 
1.7811.
(2)  rq%, determined in accordance with this section, may be less than 
or equal to 0%.
Pentanes plus royalty compensation
5(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
	(a)	the Net Pentanes Plus Reference Price for that production 
month, in the case of a production month commencing 
January 2017 or beginning on July 13, 2016 for an opted in 
well,
		or
	(b)	the Pentanes Plus Spec Reference Price or the Pentanes Plus 
Mix Reference Price for that production month, as the case 
may be, in the case of a production month commencing 
January 2017 or beginning on July 13, 2016 for an opted in 
well.
(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 fractionation allowance for the 
production month, if applicable.
(3)  Notwithstanding subsections (1) and (2) the royalty compensation 
determined under this section shall not be less than zero.
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 2017 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 2017 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 
July to December 2016, of 2017 or of 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 2017 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 2009 
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 Regulator, a bitumen battery;
	(d)	"crude oil battery" means a battery that is, according to the 
records of the Regulator, 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 
Regulator,
	(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 Regulator, 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 from an opted in well or in a production month 
after December 2016 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 from an opted in well or in a production month 
after December 2016 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 2009 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 Regulator, 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 Regulator 
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 or the 
2009 Regulation are not eligible to receive a royalty exemption under 
Schedule 7 of this Regulation.


Alberta Regulation 212/2016
Mines and Minerals Act
PETROLEUM ROYALTY REGULATION, 2017
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 351/2016) 
on December 13, 2016 pursuant to sections 5 and 36 of the Mines and Minerals Act. 
Table of Contents
Part 1 
General
	1	Interpretation
	2	Application of Regulation
	3	Section 86 of the Mines and Minerals Act
	4	Categories and densities of crude oil
	5	Prescribing par prices
	6	Royalty


	7	Calculation of royalty
	8	Approved schemes under the Enhanced Oil Recovery Royalty 
Regulation, the Enhanced Hydrocarbon Recovery Royalty 
Regulation and the Emerging Resources Royalty Regulation
	9	Adjustment of royalty
	10	Crown tract in unit
	11	Lesser royalty
	12	Responsibility of operator
	13	Objections
	14	Minister's decision final
	15	Furnishing documents to the Minister
Part 2 
Opted In Well
	16	Definitions
	17	Eligible well
	18	Application
	19	Approval
	20	When opt in has effect
	21	When opt in approval ceases to have effect
Part 3 
Consequential Amendments  
and Coming into Force
	22, 23	Consequential amendments
	24	Coming into force 
 
Schedule
Part 1 
General
Interpretation
1(1)   In this Regulation,
	(a)	"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;
	(b)	"field condensate" means field condensate as defined in the 
Natural Gas Royalty Regulation, 2017;
	(c)	"heavy oil" means the category of crude oil determined under 
section 4 as heavy oil;
	(d)	"IETP costs" means allocable costs as defined in the 
Innovative Energy Technologies Regulation (AR 250/2004); 
	(e)	"initial activity" means all drilling and fracture operations in 
a well resulting in a TVD, TLL or TPPe that occur within 
one year of the well first commencing production;
	(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 Regulator 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)	"opted in well" means a well that has been approved as an 
early opted in well by the Minister under Part 2 of this 
Regulation or under Part 3 of the Natural Gas Royalty 
Regulation, 2017;
	(l)	"par price" means the par price determined under section 5 
applicable to the category of crude oil determined by the 
Minister under section 4;
	(m)	"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;
	(n)	"producing interval" means a perforation from which 
production is obtained;
	(o)	"production month" means the month in which petroleum is 
recovered;
	(p)	"re-entry" means all drilling or fracture operations in a well 
resulting in a change to TVD, TLL or TPPe that occurs at 
least one year after the first date a well commences 
production after initial activity or previous re-entry activity;
	(q)	"Regulator" means the Alberta Energy Regulator;
	(r)	"royalty" means royalty reserved to the Crown in right of 
Alberta;
	(s)	"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;
	(t)	"TLL" means the total lateral length of a well in metres as 
determined by the Minister
	(i)	for a single-leg well by subtracting the TVD from the 
TMD, and
	(ii)	for a multi-leg well by subtracting the deepest TVD in 
the well from the TMD;
	(u)	"TMD" means the total measured depth of a well in metres 
calculated by using the measured depth of the well bore and 
adding the length of any legs in the well measured from the 
end of the leg back to the first unique kickoff point for that 
leg;
	(v)	"TPPe" means the total proppant placed in a well in tonnes as 
determined by the Minister using the records of the Regulator 
and the proppant equivalent prescribed by the Minister;
	(w)	"TVD" means the true vertical depth of a well in metres 
determined by measuring the vertical distance in metres in a 
perpendicular line from the kelly bushing of a well to the 
base of the deepest drilled leg;
	(x)	"ultra-heavy oil" means the category of crude oil determined 
under section 4 as ultra-heavy oil;
	(y)	"well event" means
	(i)	a part of a well completed in a zone and given a unique 
well identifier by the Regulator,
	(ii)	parts of a well completed in 2 or more zones and given 
a single unique well identifier by the Regulator,
	(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 Regulator, 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 Regulator 
makes a decision whether or not to give the parts a 
single unique well identifier;
	(z)	"zone" means any stratum or any sequence of strata that is 
designated by the Regulator 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
	(a)	recovered from a well on or after January 1, 2017, and
	(i)	if the well has a spud date of January 1, 2017 or later;
	(ii)	if the well has a spud date earlier than January 1, 2017 
and has been subject to re-entry on or after January 1, 
2017 and either or both of the following apply:
	(A)	the well has been given a new spud or finished 
drilling date and the well has been given a new 
TVD or TMD;
	(B)	new proppant has been placed in the well that 
meets the minimum equivalency threshold set out 
in the Schedule,
		as long as the well has a C* amount in dollars remaining as 
calculated under section 2 of the Schedule;
	(b)	recovered from a well on or after July 13, 2016 if the well 
has been approved as an opted in well, and
	(c)	recovered from a well on or after January 1, 2027.
Section 86 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 Regulator.
(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, determine 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 or the Natural Gas Royalty 
Regulation, 2017, as applicable.
(2)  The royalty on crude oil and solution gas must be free and clear of 
all deductions.
Calculation of royalty 
7   The royalty on petroleum recovered from a well event that is also 
eligible production under the New Well Royalty Regulation is the lesser 
of 
	(a)	the royalty percentage calculated pursuant to section 6, and
	(b)	5%.
Approved schemes under the Enhanced Oil  
Recovery Royalty Regulation, the Enhanced  
Hydrocarbon Recovery Royalty Regulation  
and the Emerging Resources Royalty Regulation
8(1)   Notwithstanding anything in this Regulation, the Enhanced Oil 
Recovery Royalty Regulation applies to the calculation of royalty under 
this Regulation on crude oil recovered or produced from, or obtained 
from petroleum recovered from, a well event to which an approval as 
defined in the Enhanced Oil Recovery Royalty Regulation applies.
(2)  Notwithstanding anything in this Regulation, the Enhanced 
Hydrocarbon Recovery Royalty Regulation applies to the calculation 
of royalty under this Regulation on crude oil recovered or produced 
from, or obtained from petroleum recovered from, a well event to 
which an approval as defined in the Enhanced Hydrocarbon Recovery 
Royalty Regulation applies.
(3)  Notwithstanding anything in this Regulation, the Emerging 
Resources Royalty Regulation applies to the calculation of royalty 
under this Regulation on crude oil recovered or produced from, or 
obtained from petroleum recovered from, a well to which an approval 
as defined in the Emerging Resources Royalty Regulation applies.
Adjustment of royalty
9(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
10   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 sections 3 and 4 of the Schedule applicable to the 
portion of the production allocated to any tract contained in an 
agreement. 
Lesser royalty
11   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
12   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.
Objections
13   An operator is authorized to make an objection under section 39 
of the Act.
Minister's decision final
14   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.
Furnishing documents to the Minister
15(1)   If 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.
Part 2 
Opted In Wells
Definitions
16   In this Part, "eligible well" means a well that is an eligible well 
under section 17.
Eligible well
17(1)   A well that meets all of the following criteria is an eligible well 
for the purposes of this Part:
	(a)	a well with a spud date of July 13, 2016 or later but on or 
before December 31, 2016; 
	(b)	a well that does not produce oil sands or crude bitumen;
	(c)	the Minister is of the opinion that the well would not have 
been spud between July 13, 2016 and December 31, 2016 
without the approval for opt in by the Minister under this 
Part.
	(d)	the well is not subject to re-entry.
(2)  Information must be provided to the Minister by the licensee if 
required to aid in determining whether a well meets the criteria set out 
in this section.
Application
18(1)   The licensee of an eligible well may apply, in accordance with 
this section, to have the royalty on crude oil and solution gas obtained 
from petroleum recovered from that well determined under this 
Regulation in accordance with the provisions set out in the Schedule.
(2)  The licensee must furnish the application in writing to the Minister 
before the well's spud date and on or after July 13, 2016.
Approval
19   On receiving an application under section 18, the Minister may 
approve an application for opt in for an eligible well if, in the opinion 
of the Minister, it is in the public interest to do so.
When opt in has effect
20   An approval by the Minister in respect of an eligible well has 
effect from the first day of the first production month of the eligible 
well.
When opt in approval ceases to have effect
21   An opt in approval by the Minister ceases to have effect in respect 
of a well on the date on which the well ceases to be an eligible well.
Part 3 
Consequential Amendments and 
Coming into Force
Consequential amendment
22   The Enhanced Oil Recovery Royalty Regulation 
(AR 156/2014) is amended in section 5 by adding "or under 
section 3 of the Schedule to the Petroleum Royalty Regulation, 2017" 
after "Petroleum Royalty Regulation, 2009".
Consequential amendment
23   The Petroleum Royalty Regulation, 2009 (AR 222/2008) 
is amended by repealing section 2 and substituting the 
following:
Application of regulation
2   Subject to section 2 of the Petroleum Royalty Regulation, 2017, 
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 until December 31, 2026 for wells with a spud date 
before January 1, 2017.
Coming into force
24   This Regulation is deemed to have come into force on 
July 13, 2016.
Schedule 
Crown Royalty Share of Crude Oil
Definitions
1   In this Schedule,
	(a)	"ACCI" means the Alberta Capital Cost Index for a year 
determined by the Minister on an annual basis;
	(b)	"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);
	(c)	"C*" means the drilling and completion cost allowance in 
dollars calculated for a well under section 2 of this Schedule;
	(d)	"quantity" means the monthly production in cubic metres of 
crude oil from a well according to the records of the 
Regulator;
	(e)	"TVDa" means the average of the true vertical depths of all 
drilled legs.
Calculation of C* for a Well
2(1)   The C* for a well where the TVD of the well is greater than 
2000 metres is the dollar amount calculated in accordance with the 
following formula:
C* = ACCI x ((1170 x (TVD - 249)) + (3120 x (TVD - 2000)) + (Y x 800 x TLL) 
+ (0.6 x TVDa x TPPe)) 
 
where
	Y     	is the linear factor for multi-leg wells, determined in 
accordance with the following formula:
Y = 1.39 - 0.04 x (TMD/TVDa)
		but,
	(a)	if the ratio of TMD/TVDa is less than 10, Y equals 1
	(b)	if Y is calculated as less than 0.24, Y equals 0.24
If TVD is equal to or less than 249, (TVD - 249) equals 0.
(2)  The C* for a well where the TVD of the well is 2000 metres or 
less is the dollar amount calculated in accordance with the following 
formula:
C* = ACCI x ((1170 x (TVD - 249)) + (Y x 800 x TLL) + (0.6 x TVDa x TPPe)) 
 
where
	Y     	is the linear factor for multi-leg wells, determined in 
accordance with the following formula:
Y = 1.39 - 0.04 x (TMD/TVDa)
		but,
	(a)	if the ratio of TMD/TVDa is less than 10, Y equals 1;
	(b)	if Y is calculated as less than 0.24, Y equals 0.24.
If TVD is equal to or less than 249, (TVD - 249) equals 0.
(3)  The incremental C* for a well where re-entry results in 
lengthening only is the dollar amount calculated in accordance with the 
following formula:
C* = ACCI x (1000 x TLLi) 
 
where
	TLLi	is the TLL of the incremental drilling done since the last 
drilling occurrence that resulted in a calculation of C* under 
this regulation.
(4)  Where re-entry results in fracturing only and at least the minimum 
amount of proppant equivalent of 50 tonnes for a horizontal well or 10 
tonnes for a vertical well is placed, the incremental C* for the well is 
the dollar amount calculated in accordance with the following formula:
Incremental C* = ACCI x (1.5 x (0.6 x TVDp x TPPi) + 150,000) 
 
where
	TPPi        	is the TPPe of the incremental proppant placed since the 
last proppant was placed that resulted in a calculation of 
C* under this regulation; 
	TVDp      	is the average of the true vertical depth of the legs 
where incremental proppant has been placed.
(5)  The incremental C* for a well, where a re-entry results in 
fracturing, at least the minimum amount of proppant equivalent of 50 
tonnes for a horizontal well or 10 tonnes for a vertical well is placed, 
and the well is also lengthened, is the dollar amount calculated as 
follows:
	(a)	for wells that have a TVD greater than 2000 before and after 
lengthening:
Incremental C* = C*new - C*prime 
 
where
	C*new    	is the dollar value calculated using the formula in 
subsection (1), but where TVD, TVDa, TPPe, TLL 
and Y are measured or calculated for the well after 
the re-entry and the ACCI is the ACCI for the year 
of the re-entry; 
	C*prime  	is the dollar value calculated using the formula in 
subsection (1), but where TVD, TVDa, TPPe, TLL 
and Y are measured or calculated for the well 
immediately before the re-entry and the ACCI is 
the ACCI for the year of the re-entry
	(b)	for wells that have a TVD of 2000 metres or less before 
lengthening, but a TVD greater than 2000 metres after 
lengthening:
Incremental C* = C*new - C*prime 
 
where 
	C*new    	is the dollar value calculated using the formula in 
subsection (1), but where TVD, TVDa, TPPe, TLL 
and Y are measured or calculated for the well after 
the re-entry and the ACCI is the ACCI for the year 
of the re-entry; 
	C*prime  	is the dollar value calculated using the formula in 
subsection (2), but where TVD, TVDa, TPPe, TLL 
and Y are measured or calculated for the well 
immediately before the re-entry and the ACCI is 
the ACCI for the year of the re-entry
	(c)	for wells that have a TVD of 2000 metres or less before and 
after lengthening:
Incremental C* = C*new - C*prime 
 
where 
	C*new    	is the dollar value calculated using the formula in 
subsection (2), but where TVD, TVDa, TPPe, TLL 
and Y are measured or calculated for the well after 
the re-entry and the ACCI is the ACCI for the year 
of the re-entry; and
	C*prime   	is the dollar value calculated using the formula in 
subsection (2), but where TVD, TVDa, TPPe, TLL 
and Y are measured or calculated for the well 
immediately before the re-entry and the ACCI is 
the ACCI for the year of the re-entry.
(6)  For the purposes of this section a vertical well is a well that is not 
determined to be a horizontal well by the Minister under subsection 
(7).
(7)  For the purposes of this section a horizontal well is a well that is 
determined to be a horizontal well by the Minister based on:
	(a)	the well having at least one well event classified by the 
Regulator as "horizontal", and
	(b)	according to the records of the Regulator, the well having at 
least one well event that was drilled at a wellbore inclination 
angle exceeding 80 degrees.
(8)  Incremental drilling and usage of proppant after the date the C* for 
a well is first calculated will result in an increase in the C* for a well 
as a result of a recalculation of the C* under whichever of subsections 
(3), (4) or (5) are applicable to the incremental drilling and usage of 
proppant.
(9)  A well with a spud date before January 1, 2017, other than an 
opted in well, that is subject to re-entry will receive a C*, but only for 
the incremental drilling done in the well and for the proppant used on 
the well after January 1, 2017.
(10)  For further clarity, any re-entry activity that takes place within 
the year following the first date a well commences production after a 
previous re-entry will result in a recalculation of incremental C* under 
whichever of subsections (3), (4) or (5) are applicable instead of a new 
incremental C*.
Calculation of Crown royalty share  
when C* greater than zero
3(1)  Subject to subsection (2), the royalty for a month is the amount 
calculated in accordance with the following formula:
royalty in cubic metres = (5%) x quantity x Crown interest
(2)  Royalty will be calculated according to subsection (1) until a 
well's total revenue from all hydrocarbon products as determined by 
the Minister equals C* or until a well has been abandoned according to 
the records of the Regulator, whichever comes first.
(3)  Once a well's total revenue from all hydrocarbon products as 
determined by the Minister equals C*, royalty for all subsequent 
months will be calculated under
	(a)	section 4 of this Schedule for 
	(i)	wells spud on or after January 1, 2017, and
	(ii)	opted in wells, and
	(iii)	all wells on or after January 1, 2027.
	(b)	the Petroleum Royalty Regulation, 2009 for wells that were 
spud before January 1, 2017 and are not opted in wells until 
December 31, 2026.
(4)  Revenue from a well will be determined by multiplying the 
volumes of all the hydrocarbons produced from the well by their 
respective par prices for the time period in which the well has a C* 
greater than or equal to the revenue determined under this subsection.  
For crude oil the volumes used will be produced volumes and for 
natural gas and natural gas products the volumes used will be allocated 
volumes.
(5)  The volumes referenced in subsection (4) include freehold 
volumes.
Calculation of Crown royalty share post C*
4(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 5 of this Schedule;
	rq% 	is the percentage rate for oil equivalent volume calculated in 
accordance with section 6 of this Schedule.
(2)  Where the calculation of (rp% + rq%)
	(a)	is less than 5%, the amount is 5%, or
	(b)	is more than 40%, the amount is 40%.
Calculation of rate for price
5(1)  In the case of a production month commencing with and 
subsequent to the January 2017 production month, the rp% for the 
purpose of section 4 of this Schedule is calculated in accordance with 
the following Table:
Rate for Price Table
Par Price
Formula
par price less than or equal to 
$251.70 per cubic metre
rp% = 10%
par price greater than $251.70 per 
cubic metre and less than or 
equal to $409.02 per cubic metre
rp% = [((par price - 251.70) x 
(0.00071+0.10000)) x 100]
par price greater than $409.02 per 
cubic metre and less than or 
equal to $723.64 per cubic metre
rp% = [((par price - 409.02) x 
(0.00039 + 0.21170)) x 100]
par price greater than $723.64 per 
cubic metre
rp% = [((par price - 723.64) x 
(0.00020 + 0.33440)) x 100]
Maximum/Default
40%

(3)  Where the rp% calculated under subsection (1) exceeds 40%, the 
rp% is deemed to be 40%.
Calculation of rate for oil equivalent volume
6   The rq% for the purpose of section 4 of this Schedule is calculated 
in accordance with the following Table:
Rate for Oil Equivalent Volume Table
Oil Equivalent Volume
Formula
oil equivalent volume greater 
than zero and less than 194.0 
cubic metres
rq% = (oil equivalent 
volume - 194.0) x 0.1350%
oil equivalent volume greater 
than or equal to 194.0 cubic 
metres 
rq% = 0%

Oil equivalent volume is the total of all crude oil volumes, field 
condensate volumes and gas volumes using a conversion factor of 
1.7811.
Reporting requirements 
7   For the purposes of determining royalty under this Schedule 
information required by the Minister must be provided to the Minister 
by the licensee or operator in the form and in the time prescribed by 
the Minister.



Alberta Regulation 213/2016
Income and Employment Supports Act
INCOME SUPPORT, TRAINING AND HEALTH BENEFITS 
AMENDMENT REGULATION
Filed: December 14, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 353/2016) 
on December 13, 2016 pursuant to section 48 of the Income and Employment 
Supports Act. 
1   The Income Support, Training and Health Benefits 
Regulation (AR 122/2011) is amended by this Regulation.

2   Section 95 is amended
	(a)	by repealing subsection (1);
	(b)	in subsection (2) by striking out ", but may not serve as 
a member for more than 12 consecutive years";
	(c)	by repealing subsection (3).

3   This Regulation comes into force on the coming into 
force of the Agencies, Boards and Commissions Review 
Statutes Amendment Act.
 

--------------------------------
Alberta Regulation 214/2016
Wildlife Act
WILDLIFE (CONSERVATION AREA - MINISTERIAL) 
AMENDMENT REGULATION
Filed: December 15, 2016
For information only:   Made by the Minister of Environment and Parks 
(M.O. 2/2016) on October 18, 2016 pursuant to section 103(1)(b) of the Wildlife Act. 
1   The Wildlife Regulation (AR 143/97) is amended by this 
Regulation.

2   Item 2 of Part 1 of Schedule 12 is amended by striking 
out "south-west quarter of section 10," and substituting "west half 
of section 10,".


Alberta Regulation 215/2016
Financial Administration Act
INDEMNITY AUTHORIZATION AMENDMENT REGULATION
Filed: December 16, 2016
For information only:   Made by the Lieutenant Governor in Council (O.C. 358/2016) 
on December 13, 2016 pursuant to section 71 of the Financial Administration Act. 
1   The Indemnity Authorization Regulation (AR 22/97) is 
amended by this Regulation.

2   The following is added after section 11:
Power purchase arrangement indemnity
12   The Minister of Energy may on behalf of the Crown provide 
indemnities as part of any settlement agreement entered into in 
relation to a power purchase arrangement.