Syncrude Remission Order (C.R.C., c. 794)

Regulations are current to 2017-11-20

Syncrude Remission Order

C.R.C., c. 794

FINANCIAL ADMINISTRATION ACT

Order Respecting the Remission of Income Tax for the Syncrude Project

Short Title

 This Order may be cited as the Syncrude Remission Order.

Interpretation

 In this Order,

barrels

barrels means barrels of synthetic crude oil from Leases 17 and 22 pursuant to the Syncrude Project; (barils)

condition

condition means that the fiscal programs as they relate to the Syncrude Project in effect at the commencement of the Syncrude Project have been revised in such a manner as to have significant adverse economic effect on the Syncrude Project; (condition)

Crown

Crown means Her Majesty in right of the Province of Alberta; (Couronne)

leased substances

leased substances means all substances the participant has recovered pursuant to Leases 17 and 22; (matières louées)

Leases 17 and 22

Leases 17 and 22 means Government of Alberta Bituminous Sands Leases Nos. 17 and 22, excluding that portion of Lease No. 17 that is subject to an Agreement dated September 20, 1972 as amended by an Agreement dated September 26, 1972 whereby Great Canadian Oil Sands Limited was granted a sublease of lands contained in Lease No. 17, and includes any other documents or titles that extend the duration of Leases 17 and 22; (concessions 17 et 22)

participant

participant means

  • (a) Canada-Cities Service Ltd., a body corporate, incorporated under the laws of Canada and having its head office at the City of Calgary, in the Province of Alberta,

  • (b) Imperial Oil Limited, a body corporate, incorporated under the laws of Canada and having its head office at the municipality of Metropolitan Toronto, in the Province of Ontario,

  • (c) Gulf Oil Canada Limited, a body corporate, incorporated under the laws of Canada and having its head office at the City of Toronto, in the Province of Ontario,

  • (d) the Crown as represented by the Minister of Energy and Resources for the Province of Alberta,

  • (e) Her Majesty in right of Canada as represented by the Minister of Energy, Mines and Resources for Canada, and

  • (f) Ontario Energy Corporation, a body corporate, incorporated by Special Act of the Legislature of the Province of Ontario and having its head office at the City of Toronto, in the Province of Ontario,

or any or all of them or their successors or assignees as long as they retain a share in the Syncrude Project; (participant)

royalty provisions

royalty provisions means the provisions contained in paragraphs 12(1)(o) and 18(1)(m), and subsections 69(6) to (10) of the Income Tax Act; (dispositions relatives aux redevances)

Syncrude Project

Syncrude Project means the scheme of the participant for the recovery of leased substances from Leases 17 and 22; (projet Syncrude)

synthetic crude oil

synthetic crude oil means a mixture, mainly of pentanes and heavier hydrocarbons, that may contain sulphur compounds, that is derived from crude bitumen and that is liquid at the time its volume is measured or estimated. (pétrole brut synthétique)

Remission

  •  (1) Subject to subsection (2), remission is hereby granted to each participant of any tax payable for a taxation year pursuant to Part I of the Income Tax Act as a result of the royalty provisions being applicable to

    • (a) amounts receivable and the fair market value of any property receivable by the Crown as a royalty, tax, rental or levy with respect to the Syncrude Project, or as an amount however described, that may reasonably be regarded as being in lieu of any of the preceding amounts;

    • (b) dispositions of leased substances to the Crown by the participant; and

    • (c) acquisitions of leased substances from the Crown by the participant.

  • (2) No remission shall be granted pursuant to this Order to a participant in respect of a taxation year of that participant that commences after

    • (a) the recovery of 1.1 billion barrels, where the Governor in Council revokes this Order upon being satisfied on the report of the Minister of Finance that the condition exists prior to the recovery of 1.1 billion barrels,

    • (b) the recovery of the number of barrels recovered on the date the Governor in Council revokes this Order upon being satisfied on the report of the Minister of Finance that the condition exists if that date is after the recovery of more than 1.1 billion barrels and less than 2.1 billion barrels,

    • (c) the recovery of 2.1 billion barrels, or

    • (d) December 31, 2003,

    whichever first occurs.

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