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Marginal note:Application of sections 26 to 45

  •  (1) Sections 26 to 45 apply in respect of an upstream oil and gas facility as of the first day of the month that begins after the facility produces or receives — or is expected to produce or receive — a combined volume of more than 60 000 standard m3 of hydrocarbon gas for a period of 12 months, determined as follows:

    • (a) if the facility has operated during at least 12 months, whether consecutive or not, with at least one day of operation in each of those months, the combined volume of hydrocarbon gas, expressed in standard m3, produced or received based on records, for the most recent 12 of those months of operation;

    • (b) if the facility has operated during at least one month and less than 12 months, whether consecutive or not, with at least one day of operation in each of those months, the combined volume of hydrocarbon gas, expressed in standard m3, that the facility is expected to produce or receive for a 12-month period determined by prorating the combined volume, based on records, produced or received during those months of operation; and

    • (c) in any other case, the combined volume of hydrocarbon gas, expressed in standard m3, that the facility is expected to produce or receive during the 12-month period that begins after its first month of operation, as determined in accordance with the applicable method set out in section 23.

  • Marginal note:Well completion

    (2) For the purpose of subsection (1), if a well at the facility undergoes well completion during a given month, the portion of the combined volume referred to in that subsection that corresponds to the production of hydrocarbon gas from the well must be based on the volume of hydrocarbon gas expected to be produced by the well for the 12-month period after the given month, as determined in accordance with the applicable method set out in section 23.

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