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• 8 (1) For the purpose of sections 3.71 to 3.9 of the Act, the expression revenue base means, in respect of a revenue source for a fiscal year,

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  • (b) in the case of the taxes and revenues described in paragraph 7(1)(b), the aggregate of

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    • (ii) the product, as determined on the basis of data prepared by Statistics Canada for the purpose of the Government Finance Statistics, of

      • (A) the aggregate, over all provinces, of the total profits, before the distribution of dividends, that are attributable to the province for the calendar year that ends in the fiscal year from business enterprises that have a profit in that calendar year and are owned 90% or more by that province, or by that province and one or more other provinces, excluding the profits for that calendar year

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        • (II) of an enterprise engaged entirely or primarily in the marketing of oil or natural gas,

  • (c) in the case of taxes on capital of corporations, described in paragraph 7(1)(c), the sum of

    • (i) the aggregate, over the following industry categories established by Statistics Canada on the basis of the North American Industry Classification System, of the total taxable paid-up capital employed in the province for the calendar year that ends in the fiscal year in respect of the corporations in each category that are owned less than 90% by Her Majesty and have more than $1,000,000 of total assets:

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      • (B) the oil and gas extraction industry group and the coal mining industry group,

      • (C) the mining and quarrying (except oil and gas) subsector, other than the coal mining industry group,

      [...]

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  • (m) in the case of oil revenues described in paragraph 7(1)(m), the product of

    • (i) the total value of the marketable production of new oil from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the sum of the parts of that marketable production whose value is described in subparagraph (o)(i) and paragraph (p), and

    • (ii) the adjustment factor for oil referred to in subsection (3);

  • (n) in the case of oil revenues described in paragraph 7(1)(n), the product of

    • (i) the total value of the marketable production of crude oil from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction, less the value of the parts of that marketable production described in subparagraphs (m)(i) and (o)(i), paragraph (p) and subparagraphs (q)(i) and (r)(i), and

    • (ii) the adjustment factor for oil referred to in subsection (3);

  • (o) in the case of heavy oil revenues described in paragraph 7(1)(o), the product of

    • (i) the total value of the marketable production of crude oil, having a density of 935 kg/m³ or greater, from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the sum of the parts of that marketable production described in paragraph (p) and subparagraph (r)(i), and

    • (ii) the adjustment factor for oil referred to in subsection (3);

  • (p) in the case of mined oil revenues described in paragraph 7(1)(p), the total value of the marketable production of synthetic petroleum from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction;

  • (q) in the case oil revenues referred to in paragraph 7(1)(q), the product of

    • (i) the total value of the marketable production of third tier oil from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the sum of the parts of that marketable production described in paragraph (p) and subparagraph (r)(i), and

    • (ii) the adjustment factor for oil referred to in subsection (3);

  • (r) in the case of oil revenues described to in paragraph 7(1)(r), the product of

    • (i) the total value of the marketable production of third tier oil, having a density of 935 kg/m³ or greater, from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by the Minister based on relevant data, less the value of the part of that marketable production described in paragraph (p), and

    • (ii) the adjustment factor for oil referred to in subsection (3);

  • (s) in the case of revenues from domestically sold natural gas and exported natural gas, described in paragraph 7(1)(s), the product of

    • (i) the total value of the marketable production of gas and gas by-products from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction, and

  • (t) in the case of sales of Crown leases and reservations on oil and natural gas lands, described in paragraph 7(1)(t),

    [...]

  • (u) in the case of oil and gas revenues described in paragraph 7(1)(u), the sum of

    • (i) the total volume of the marketable production of oil, synthetic petroleum and condensate from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as classified and determined by Statistics Canada on the basis of its survey Oil and Gas Extraction, and

    • (ii) the product of 0.968 and the total volume of the net production of gas from hydrocarbon deposits in the province in the calendar year that ends in the fiscal year, as classified and determined by Statistics Canada on the basis of its survey Oil and Gas Extraction;

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• (3) For the purposes of paragraphs (1)(m) to (o), (q) and (r), the adjustment factor for oil is the amount determined by the following formula, which is equal to zero if the expression “(A + X)” is equal to zero:

  [(A × C) /B + (X × Z) /Y] × [(B + Y) / (C + Z) × 1 / (A + X)]

  where

  A 

  is the value of oil, as determined by the Minister on the basis of information provided by the province, produced in the province in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the province;

  B 

  is the value of oil, as determined by the Minister on the basis of information provided by the provinces, produced in the 10 provinces in the calendar year that ends in the fiscal year that is vested in Her Majesty in right of the provinces;

  C 

  is the revenue from oil, as determined by the Minister on the basis of information provided by the provinces, for the 10 provinces in the fiscal year that is vested in Her Majesty in right of the provinces;

  X 

  is the value of oil, as determined by the Minister on the basis of information provided by the province, produced in the province in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the province;

  Y 

  is the value of oil, as determined by the Minister on the basis of information provided by the provinces, produced in the 10 provinces in the calendar year that ends in the fiscal year that is not vested in Her Majesty in right of the provinces; and

  Z 

  is the revenue from oil, as determined by the Minister on the basis of information provided by the provinces, for the 10 provinces in the fiscal year that is not vested in Her Majesty in right of the provinces.

• (4) The following definitions apply in subsection (3).

  revenue from oil

  revenue from oil means the revenues referred to in paragraphs 7(1)(m) to (o), (q) and (r). (revenus tirés du pétrole)

  value of oil

  value of oil means the value of the marketable production of crude oil from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction. (valeur du pétrole)

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• (6) The following definitions apply in subsection (5).

  value of natural gas

  value of natural gas means the value of the marketable production of gas and gas by-products from hydrocarbon deposits in the province in a calendar year that ends in the fiscal year, as determined by Statistics Canada on the basis of its survey Oil and Gas Extraction. (valeur du gaz naturel)

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• 7 (1) The provincial revenues that are derived from, or are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (z.5) of the definition revenue source in subsection 3.9(1) of the Act are

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  • (b) in the case of taxes and revenues referred to in paragraph (b) of that definition,

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    • (ii) remittances to a provincial government of profits of business enterprises of the province, other than remittances by

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      • (B) an enterprise that is engaged, entirely or primarily, in the marketing of oil or natural gas, and

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  • (m) in the case of conventional new oil revenues referred to in paragraph (m) of that definition, revenues derived by a province – other than those described in paragraphs (o) and (p) – that are attributable to new oil that is from hydrocarbon deposits in the province, including revenues derived from

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (n) in the case of conventional old oil revenues referred to in paragraph (n) of that definition, revenues derived by a province – other than those described in any of paragraphs (m) and (o) to (r) – that are attributable to oil from hydrocarbon deposits in the province, including revenues derived from

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (o) in the case of heavy oil revenues referred to in paragraph (o) of that definition, revenues – other than those described in paragraph (p) – derived by a province that are attributable to oil from hydrocarbon deposits in the province, that has a density of at least 935 kg/m³ and is not third tier oil, including revenues derived from

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (p) in the case of mined oil revenues referred to in paragraph (p) of that definition, revenues derived by a province by means of a levy imposed by the province for the privilege of

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    • (ii) producing oil from the experimental oil sands project that is subject to approval number 2943 of the Alberta Energy and Utilities Board;

  • (q) in the case of the revenues referred to in paragraph (q) of that definition, revenues – other than those described in paragraphs (p) and (r) – derived by a province that are attributable to third tier oil from hydrocarbon deposits in the province, including

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

  • (r) in the case of the revenues referred to in paragraph (r) of that definition, revenues – other than those described in paragraph (p) – derived by a province that are attributable to third tier oil that is from hydrocarbon deposits in the province and that has a density of at least 935 kg/m³, including

    • (i) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

    • (ii) a tax imposed by the province that is based on the assessed or estimated value of the oil reserves, and

    • (iii) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits;

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  • (t) in the case of sales of Crown leases and reservations on oil and natural gas lands referred to in paragraph (t) of that definition, revenues that are derived by a province from the granting of leases, reservations or other rights in relation to Crown land in the province for the purpose of exploration or exploitation of that land for the production of crude oil or the production of gas or gas by-products from hydrocarbon deposits;

  • (u) in the case of oil and gas revenues referred to in paragraph (u) of that definition, revenues that are derived by a province from the exploration for and the development and production of oil, natural gas, gas by-products, helium or other gaseous products from hydrocarbon deposits in the province, including oil and gas revenues of a kind that fall within the description of a revenue source set out in any of paragraphs (m) to (s) but that cannot be attributed only to that revenue source;

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6 The following definitions apply in this Division.

new oil

new oil means

• (a) in the case of Alberta,

  • (i) oil from wells that draw from pools discovered on or after April 1, 1974 and before October 1, 1992,

  • (ii) oil from horizontal wells that draw from pools discovered on or after April 1, 1974, and

  • (iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes;

• (b) in the case of British Columbia,

  • (i) oil from wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975 and that is not third tier oil,

  • (ii) oil from horizontal wells that draw from pools or portions of pools in which no well drillings were completed before November 1, 1975,

  • (iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes,

  • (iv) oil from wells that received the new oil reference price under the National Energy Program, and

  • (v) oil from wells abandoned for three consecutive years and for which production resumed on or after January 1, 1981 and that had not been converted to an injection, pressure maintenance or observation well;

• (c) in the case of Manitoba,

  • (i) oil from vertical wells that were drilled and completed on or after April 1, 1974 and before April 1, 1999,

  • (ii) oil from horizontal wells that were drilled and completed on or after April 1, 1974,

  • (iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1987 and before April 1, 1999,

  • (iv) oil from wells abandoned before April 1, 1974 and re-entered on or after April 1, 1974 and before April 1, 1999, and

  • (v) incentive oil;

• (d) in the case of Saskatchewan,

  • (i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994,

  • (ii) oil from horizontal wells that were drilled and completed on or after April 1, 1991,

  • (iii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1974 and before January 1, 1994, and

  • (iv) oil from wells producing less than 1.6 m³ per day that were drilled and completed before January 1, 1994; and

• (e) in the case of all other provinces,

  • (i) oil from vertical wells that were drilled and completed on or after January 1, 1974 and before January 1, 1994, and

  • (ii) oil from horizontal wells that were drilled and completed on or after January 1, 1974. (nouveau pétrole)

relevant data

relevant data , in paragraphs 8(1)(m), (o), (q) and (r), means oil production data for the calendar year that ends in the fiscal year, or for the most recent calendar year for which that data is available, obtained from any of Statistics Canada, the Department of Natural Resources, a province or any provincial energy or resource board, commission or authority. (données pertinentes)

third tier oil

third tier oil means

• (a) in the case of Alberta, oil from vertical wells that draw from pools discovered on or after October 1, 1992;

• (b) in the case of British Columbia, oil from vertical wells that draw from pools or portions of pools in which no well drillings were completed before June 2, 1998;

• (c) in the case of Manitoba,

  • (i) oil from wells, other than horizontal wells, that were drilled and completed on or after April 1, 1999,

  • (ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after April 1, 1999,

  • (iii) oil from wells, other than horizontal wells, abandoned before April 1, 1999 and re-entered on or after April 1, 1999, and

  • (iv) oil from wells, other than horizontal wells, that were inactive on April 1, 1999 and re-activated after April 1, 1999;

• (d) in the case of Saskatchewan,

  • (i) oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994, and

  • (ii) incremental oil from an approved enhanced oil recovery scheme, including both secondary and tertiary recovery schemes, beginning on or after January 1, 1994; and

• (e) in the case of all other provinces, oil from wells, other than horizontal wells, that were drilled and completed on or after January 1, 1994. (pétrole de troisième niveau)

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• 4 (1) The provincial revenues that are derived from, or that are deemed to be derived from, the revenue sources referred to in paragraphs (a) to (e) of the definition revenue source in subsection 3.5(1) of the Act are

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  • (b) in the case of revenues relating to business income referred to in paragraph (b) of that definition,

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    • (ii) remittances to a provincial government of profits of business enterprises of the province, other than remittances by

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      • (B) an enterprise that is engaged entirely or primarily in the marketing of oil or natural gas,

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  • (e) in the case of revenues derived from natural resources referred to in paragraph (e) of that definition,

    • (i) revenues attributable to oil from hydrocarbon deposits in a province, including revenues derived by the province from

      • (A) a levy imposed by the province for the privilege of producing oil from hydrocarbon deposits,

      • (B) a tax imposed by the province that is based on the assessed or estimated value of oil reserves, and

      • (C) a tax imposed by the province that is based on the price of oil produced from hydrocarbon deposits,

    • (ii) revenues derived by a province from a levy imposed by the province for the privilege of

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      • (B) producing oil from the experimental oil sands project that is subject to approval number 2943 of the Alberta Energy and Utilities Board,

    • [...]

    • (iv) revenues derived by a province from the granting of leases, reservations or other rights in relation to Crown land in the province for the purpose of exploration or exploitation of that land for the production of crude oil or the production of gas or gas by-products from hydrocarbon deposits,

    • (v) revenues, other than those from a revenue source referred to in any of subparagraphs (i) to (iv), derived by a province from the exploration for and the development and production of oil, natural gas, gas by-products and helium or other gaseous products from hydrocarbon deposits in the province,

    • (vi) revenues, derived by a province from the exploration for and the development and production of oil, natural gas and gas by-products from hydrocarbon deposits in the province, of a kind that falls within a revenue source set out in any of subparagraphs (i) to (iii) but that cannot be attributed only to that revenue source,

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3 The following definitions apply in this Part.

new oil

new oil[Repealed, SOR/2013-225, s. 3]

third tier oil

third tier oil[Repealed, SOR/2013-225, s. 3]

[...]