Frontier Lands Petroleum Royalty Regulations

4 (1) Subject to subsection (2), no royalties are payable in respect of petroleum, produced from project lands, that is

• (a) consumed on project lands in drilling or testing or in any production infrastructure for the purposes of the project;

• (b) injected into a formation for conservation purposes;

• (c) consumed in the operation of a facility, to the extent that

  • (i) it is for processing or transporting petroleum produced from the project, and

  • (ii) the cost of the consumed petroleum is not included in a gas processing allowance or a transportation allowance; or

• (d) flared.

(2) Subsection (1) does not apply to any petroleum that is wasted within the meaning of subsection 18(2) of the Canada Oil and Gas Operations Act.