Frontier Lands Petroleum Royalty Regulations

3 (1) The prescribed royalty reserved to Her Majesty under subsection 55(1) of the Act from each interest holder is

• (a) in respect of petroleum produced from project lands in a month preceding the month of payout

  • (i) beginning with the first production month and ending with the eighteenth production month, one per cent of the gross revenues of the interest holder from that petroleum,

  • (ii) beginning with the nineteenth production month and ending with the thirty-sixth production month, two per cent of the gross revenues of the interest holder from that petroleum,

  • (iii) beginning with the thirty-seventh production month and ending with the fifty-fourth production month, three per cent of the gross revenues of the interest holder from that petroleum,

  • (iv) beginning with the fifty-fifth production month and ending with the seventy-second production month, four per cent of the gross revenues of the interest holder from that petroleum, and

  • (v) beginning with the seventy-third production month and ending with the last production month preceding the month of payout, five per cent of the gross revenues of the interest holder from that petroleum, or

• (b) in respect of petroleum produced from project lands in the month of payout or any month thereafter, the greater of

  • (i) thirty per cent of the net revenues of the interest holder from that petroleum, and

  • (ii) five per cent of the gross revenues of the interest holder from that petroleum.

• (c) [Repealed, SOR/2008-96, s. 4]

(2) Subject to subsection (3), the royalty payable for a month is equal to the amount obtained from the following formula:

(3) The royalty payable is further reduced by a credit equal to the lesser of the amount calculated under subsection (2) and the investment royalty credit balance.

(4) Royalties are payable on petroleum that is transported from the project lands by a transportation facility or, subject to section 4, consumed, lost or wasted.