Totnes Viking Gas Storage Freehold Production Tax Regulations, F-22.1 Reg 4

1 TOTNES VIKING GAS STORAGE FREEHOLD PRODUCTION TAX F-22.1 REG 4 The Totnes Viking Gas Storage Freehold Production Tax Regulations Being Chapter F-22.1 Reg 4 (effective March 23, 2012). NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation. 2 TOTNES VIKING GAS STORAGE F-22.1 REG 4 FREEHOLD PRODUCTION TAX Table of Contents 1 Title 2 Interpretation 3 Gas tax 4 Remittance of tax 5 Further tax 6 Coming into force 3 TOTNES VIKING GAS STORAGE FREEHOLD PRODUCTION TAX F-22.1 REG 4 CHAPTER F-22.1 REG 4 The Freehold Oil and Gas Production Tax Act Title 1 These regulations may be cited as The Totnes Viking Gas Storage Freehold Production Tax Regulations. Interpretation 2(1) In these regulations: (a) “gas storage agreement” means the Totnes Viking Gas Storage Voluntary Unit Agreement made for the purposes of Part V of The Oil and Gas Conservation Act, section 8 of The Energy and Mines Act and section 18 of The Crown Minerals Act; (b) “injected gas” means injected gas calculated in accordance with subsection (2); (c) “operator” means the unit operator as defined in the gas storage agreement; (d) “project” means the Totnes Viking Gas Storage Voluntary Unit that is identified in the gas storage agreement; (e) “project volume” means the sum of the injected gas and 36,635,000 cubic metres of gas. (2) For the purposes of these regulations, “injected gas” is the amount A, measured in cubic metres, calculated in accordance with the following formula: A = B + (C - D) where: B is the volume of gas, measured in cubic metres, injected into the project area for the purpose of storage, after the effective date of the gas storage agreement; C is the volume of gas, measured in cubic metres, injected into the project area pursuant to Minister’s Order 370/11, dated July 8, 2011 and Minister’s Order 850/11, dated November 10, 2011; and D is the volume of gas, measured in cubic metres, withdrawn from the project area pursuant to Minister’s Order 370/11, dated July 8, 2011 and Minister’s Order 850/11, dated November 10, 2011. 4 TOTNES VIKING GAS STORAGE F-22.1 REG 4 FREEHOLD PRODUCTION TAX (3) For the purposes of interpreting and applying these regulations: (a) terms used but not defined in these regulations have the meanings set out in The Freehold Oil and Gas Production Tax Act and The Freehold Oil and Gas Production Tax Regulations, 1995, as that Act and those regulations existed on the day before the coming into force of these regulations; and (b) subject to section 5, section 3 of these regulations replaces section 44 of The Freehold Oil and Gas Production Tax Regulations, 1995 for the purposes of tax calculations with respect to gas produced from the project. 5 Apr 2012 cF-22.1 Reg 4 s2. Gas tax 3 Notwithstanding The Freehold Oil and Gas Production Tax Regulations, 1995, the operator: (a) shall collect and remit a tax payment of $10,000 on behalf of the taxpayer respecting gas produced from the project; and (b) subject to section 5, is not required to collect and remit any further tax respecting gas produced from the project. 5 Apr 2012 cF-22.1 Reg 4 s3. Remittance of tax 4 The operator shall collect and remit the tax payment required by section 3 to the Crown in full before the effective date of the gas storage agreement. 5 Apr 2012 cF-22.1 Reg 4 s4. Further tax 5 If, at the end of any month, the minister determines that the volume of gas produced from the project exceeds the project volume, the taxpayer shall pay a tax calculated in accordance with The Freehold Oil and Gas Production Tax Regulations, 1995 respecting the volume of gas produced from the project in excess of the project volume. 5 Apr 2012 cF-22.1 Reg 4 s5. Coming into force 6 These regulations come into force on the day on which they are filed with the Registrar of Regulations. 5 Apr 2012 cF-22.1 Reg 4 s6. REGINA, SASKATCHEWAN Printed by the authority of THE QUEEN’S PRINTER Copyright©2012