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  1. Indian Oil and Gas Regulations, 1995 - SOR/94-753 (SCHEDULE I : Royalties)

    [...]

    Oil Royalty

    • 1 (1) The royalty on oil that is obtained from, or attributable to, a lease area shall comprise the basic royalty determined pursuant to subsection (2) or (3) plus the supplementary royalty determined pursuant to subsection (5), calculated at the time and place of production.

    • (2) During the five year period beginning on the date determined by the Executive Director to be the date of commencement of production of oil from a contract area, the basic royalty is the part of the oil that is obtained from, or attributable to, each well during each month of that period calculated in accordance with the table to this subsection

    • (3) Commencing immediately after the period referred to in subsection (2), the basic royalty is the part of the oil that is obtained from, or attributable to, each well in a contract area during each month thereafter calculated in accordance with the table to this subsection.

    • [...]

    • (5) The supplementary royalty referred to in subsection (1) is

      • (a) in respect of oil to which subsection (2) applies, the royalty determined by the formula

        [...]

      • (b) in respect of oil to which subsection (3) applies, the royalty determined by the formula

        S = (T - B) [0.75 (P - R - $12.58) + $6.29]

        where

        T 
        is the amount of oil, in cubic metres, that is obtained from, or attributable to, each well in a contract area during a month,
        B 
        is the basic oil royalty, in cubic metres, calculated under subsection (2) or (3),
        P 
        is the actual selling price of the oil per cubic metre, and
        R 
        is the reference price, equal to

        • (a) in the case of oil obtained from a source set out in column II of an item of the table to this subsection, the amount set out in column III of that item, and

    [...]

    Royalty on Oil or Gas Consumed

    • 3 (1) Notwithstanding sections 1 and 2 and subject to subsection (2), the royalty payable on oil or gas obtained from, or attributable to, a lease area that is consumed in the drilling for, or the production or processing of, oil or gas obtained from, or attributable to, that lease area is nil.

    • (2) Subsection (1) does not apply in respect of oil or gas that is consumed for the production or processing of crude bitumen.

    [...]

    4 For the purposes of sections 1 and 2, actual selling price means the greater of

    • (a) in respect of

      • (i) oil, the price at which the oil is sold, and

    • (b) the fair market value of the oil or gas, determined pursuant to subsection 33(6) of these Regulations.


  2. Indian Oil and Gas Regulations, 1995 - SOR/94-753 (Section 2)

    2 In these Regulations,

    Act

    Act  means the Indian Oil and Gas Act; (Loi)

    band council

    band council  means the council of a band that has the use and benefit of the Indian lands that are being used or from which oil or gas is being produced; (conseil de bande)

    commercial quantity

    commercial quantity , in respect of oil and gas, means a quantity of oil or gas produced from a well that economically warrants the drilling of a similar well in the immediate area, taking into consideration the cost of drilling and production operations, the quantity of production and the availability of markets; (quantité commerciale)

    Executive Director

    Executive Director  means the Executive Director of Indian Oil and Gas Canada, Department of Indian Affairs and Northern Development; (directeur exécutif)

    exploratory work

    exploratory work  includes mapping, surveying, geological, geophysical or geochemical examinations, test drilling and other investigations, conducted by air, land or water, that are related to the exploration for oil and gas; (travaux d’exploration)

    former Regulations

    former Regulations  means the Indian Oil and Gas Regulations, C.R.C., c. 963, or any previous regulations made under the Indian Act respecting dispositions of oil or gas on Indian lands; (ancien règlement)

    lease

    lease  means a lease of oil or gas rights granted under section 10 or a lease of oil or gas rights that is deemed, pursuant to section 5 of the Act, to be subject to these Regulations; (bail)

    operator

    operator  means a person who is engaged in an activity related to the exploitation of oil or gas on Indian lands, including a person who is acting on behalf of, or as an employee or agent of, a contract holder; (exploitant)

    paying quantity

    paying quantity  means

    • (a) in respect of a well that has been drilled but not completed and equipped, an anticipated output from the well of a quantity of oil or gas that would reasonably warrant incurring the completion and equipping costs of the well, and

    • (b) in respect of a well that has been completed for the taking of production, an anticipated output from the well of a quantity of oil or gas that would reasonably warrant the taking of production from the well; (quantité rentable)

    permit

    permit  means a permit in respect of oil and gas rights granted under section 10 or a permit that is deemed, pursuant to section 5 of the Act, to be subject to these Regulations; (permis)

    pool

    pool  means a natural underground reservoir that appears to contain an isolated accumulation of oil or gas or of both; (gisement)

    pooling

    pooling  means the combining of oil or gas rights for the purpose of forming a spacing unit; (mise en commun)

    spacing unit

    spacing unit  means an area that is designated as such by a provincial authority that is responsible for the drilling for, or production of, oil or gas on non-Indian lands; (unité d’espacement)

    unit operation

    unit operation  means an operation that is undertaken in accordance with a plan for combining the interests of all owners of a common source of oil or gas in a field or pool, or in a part thereof, so that the operation may be conducted as if there were only one operator and one tract. (exploitation collective)


  3. Indian Oil and Gas Regulations - SOR/2019-196 (SCHEDULE 5 : Royalties)

    [...]

    [...]

    Marginal note:Highest value

    • 2 (1) For the purposes of this Schedule, if the Minister determines that the actual selling price of oil or gas is less than the fair value of that oil or gas at the time and place of production, the actual selling price is deemed to be that fair value. In that case, the Minister must send the contract holder notice of the royalties payable and, within 30 days after the day on which the notice is received, the holder must pay the royalties payable in accordance with that notice.

    • Marginal note:Factors to consider

      (2) In determining the fair value of oil or gas, the Minister, in consultation with the council, must take into account the following factors:

      • [...]

      • (c) in the case of oil, transportation cost, quality adjustment for sulphur content and density;

      • [...]

      • (f) the factor of 6.2898 to convert barrels of oil to cubic metres of oil.

    Oil Royalty

    Marginal note:Calculation of royalty — oil

    • 3 (1) The royalty on oil that is recovered from, or attributed to, lands in a contract area consists of the basic royalty determined in accordance with subsection (2) or (3) and the supplementary royalty determined in accordance with subsection (5). All amounts are to be calculated at the time and place of production.

    • Marginal note:Basic royalty — first five years

      (2) During the five-year period beginning on the day on which production of oil from the contract area begins, the basic royalty for each month of that period is equal to the actual selling price multiplied by the monthly royalty determined in accordance with column 2 of the table to this subsection, based on the monthly production, referred to in column 1, of oil that is recovered from, or attributed to, each well.

    • Marginal note:Basic royalty — subsequent years

      (3) Beginning immediately after the period referred to in subsection (2), the basic royalty for each subsequent month is equal to the actual selling price multiplied by the monthly royalty determined in accordance with column 2 of the table to this subsection, based on the monthly production, referred to in column 1, of oil that is recovered from, or attributed to, each well.

    • [...]

    • (5) The supplementary royalty is

      • (a) in respect of oil to which subsection (2) applies, the amount determined by the formula

        (T – B)0.50(P – R)

        where

        T 
        is the amount of oil, in cubic metres, that is recovered from, or attributed to, each well in the contract area during the month,
        P 
        is the actual selling price of the oil per cubic metre, and
        R 
        is the reference price, equal to

        • (i) in the case of oil recovered from a source set out in column 2 of the table to this subsection, the price set out in column 3, and

      • (b) in respect of oil to which subsection (3) applies, the amount determined by the formula

        (T – B)[0.75(P – R – $12.58) + $6.29]

        where

        T 
        is the amount of oil, in cubic metres, that is recovered from, or attributed to, each well in the contract area during the month,
        P 
        is the actual selling price of the oil per cubic metre, and
        R 
        is the reference price, equal to

        • (i) in the case of oil recovered from a source set out in column 2 of the table to this subsection, the price set out in column 3, and

    [...]

    Royalty on Oil or Gas Consumed

    Marginal note:No royalty payable

    • 5 (1) Despite sections 2 to 4, the royalty payable on oil or gas recovered from, or attributed to, lands in a contract area is nil if the oil or gas is consumed in drilling for, producing or processing oil or gas that is recovered from, or attributed to, those lands.

    • Marginal note:Royalty payable

      (2) However, subsection (1) does not apply to oil or gas that is consumed in the production or processing of crude bitumen.


  4. Indian Oil and Gas Regulations - SOR/2019-196 (Section 1)
    Marginal note:Definitions

    • 1 (1) The following definitions apply in these Regulations.

      Act

      Act  means the Indian Oil and Gas Act. (Loi)

      actual selling price

      actual selling price  means

      • (a) in respect of oil, the price at which the oil is sold; and

      bitumen

      bitumen  means oil that does not flow to a well unless it is heated or diluted. (bitume)

      exploration work

      exploration work  includes mapping, surveying, examining geological, geophysical or geochemical data, test drilling and any other activities that are carried out by air, land or water and are related to the exploration for oil or gas. (travaux d’exploration)

      pool

      pool  means a natural underground reservoir that contains or appears to contain an accumulation of oil or gas that is separate or appears to be separate from any other such accumulation. (bassin)

      productive

      productive  means producing or capable of producing oil or gas in a quantity that would warrant incurring

      [...]

      provincial authority

      provincial authority  means the office, department or body that is authorized by law to make decisions, grant approvals, receive information or keep records respecting the exploration for, or the exploitation or conservation of, oil and gas in the province in which the relevant First Nation lands are located. (autorité provinciale)

      unit agreement

      unit agreement  means an agreement that combines the rights or interests of all the holders of oil and gas rights or interests in all or part of a pool and that provides for the joint exploitation of the oil and gas and the payment of royalties based on an attribution of production rather than actual production, but does not include an agreement that attributes production from a well referred to in subsection 107(1). (accord de mise en commun)

      well

      well  means a well that is used for the exploitation of oil or gas and includes a vertical well, a deviated well and a horizontal well. (puits)


  5. Indian Oil and Gas Regulations - SOR/2019-196 (Section 1)

    [...]

    Marginal note:Definitions

    • [...]

      1 (1) The following definitions apply in these Regulations.

      Act

      Act  means the Indian Oil and Gas Act. (Loi)

      actual selling price

      actual selling price  means

      • [...]

        (a) in respect of oil, the price at which the oil is sold; and

      bitumen

      bitumen  means oil that does not flow to a well unless it is heated or diluted. (bitume)

      exploration work

      exploration work  includes mapping, surveying, examining geological, geophysical or geochemical data, test drilling and any other activities that are carried out by air, land or water and are related to the exploration for oil or gas. (travaux d’exploration)

      pool

      pool  means a natural underground reservoir that contains or appears to contain an accumulation of oil or gas that is separate or appears to be separate from any other such accumulation. (bassin)

      productive

      productive  means producing or capable of producing oil or gas in a quantity that would warrant incurring

      [...]

      provincial authority

      provincial authority  means the office, department or body that is authorized by law to make decisions, grant approvals, receive information or keep records respecting the exploration for, or the exploitation or conservation of, oil and gas in the province in which the relevant First Nation lands are located. (autorité provinciale)

      unit agreement

      unit agreement  means an agreement that combines the rights or interests of all the holders of oil and gas rights or interests in all or part of a pool and that provides for the joint exploitation of the oil and gas and the payment of royalties based on an attribution of production rather than actual production, but does not include an agreement that attributes production from a well referred to in subsection 107(1). (accord de mise en commun)

      well

      well  means a well that is used for the exploitation of oil or gas and includes a vertical well, a deviated well and a horizontal well. (puits)


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