Frontier Lands Petroleum Royalty Regulations

3 (1) The prescribed royalty payable to Her Majesty under subsection 55(1) of the Act by 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

less

• (c) a credit equal to the lesser of

  • (i) the amount of the investment royalty credit balance of the interest holder in respect of the month in which payment of the prescribed royalty is due, and

  • (ii) the amount calculated for that interest holder under paragraph (a) or (b).

(2) For the purpose of calculating the prescribed royalty referred to in subsection (1), the petroleum produced from project lands shall be measured at the point of production.