Frontier Lands Petroleum Royalty Regulations

6 (1) Subject to subsection (2), an interest holder of a production licence in relation to a project may choose to defer an amount of royalty payable for a production month, as determined under subparagraph 3(1)(b)(i), that is equal to 30% of part or all of a contribution that it makes into an abandonment and restoration royalty trust in relation to the project.

(2) The amount of royalty payable deferred in a month shall not reduce the royalty payable with respect to such month below the amount determined under subparagraph 3(1)(b)(ii).

(3) A contribution may be applied, in whole or in part, to defer the amount of royalty payable in the month in which the contribution is made or to the amount of royalty payable in a following month or months.

(4) For the purposes of subsection (1), all realized income earned by the trust shall be considered to be a contribution.