Section 1(1) definition "alteration application" BEFORE repealed by BC Reg 269/2010 effective October 4, 2010.
"alteration application" means an Application to Alter a Well, referred to in section 42 of the Drilling and Production Regulation, that has been approved as required by that regulation;
Section 1(1) definition "amendment application" was added by BC Reg 269/2010 effective October 4, 2010.
Section 1(1) definition "coalbed methane project", paragraph (a) BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
(a) approved as a scheme under section 100 (1) (a) or (b) of the Petroleum and Natural Gas Act, and
Section 1(1) definition "completed well" BEFORE repealed by BC Reg 269/2010 effective October 4, 2010.
"completed well" means a completed well as defined in section 1 of the Drilling and Production Regulation;
Section 1(1) definition "completed" was added by BC Reg 269/2010 effective October 4, 2010.
Section 1(1) definition "concurrent production" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"concurrent production" means gas produced from an oil well event where the oil well event is part of an approved concurrent production scheme under section 97 of the Act;
Section 1(1) definition "conservation gas" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"conservation gas" means natural gas produced from an oil well event where the marketable gas is conserved but does not include gas produced from an oil well event granted concurrent production status under section 97 of the Act;
Section 1(1) definition "development well" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"development well" means a well or portion of a well that is classified as a development well under section 14 (1) of the Drilling and Production Regulation;
Section 1(1) definition "discovery well" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"discovery well" means an oil well event within a discovery well as defined in the Drilling and Production Regulation;
Section 1(1) definitions "Drilling and Production Regulation" and "well permit" were added by BC Reg 269/2010 effective October 4, 2010.
Section 1(1) definition "exploratory outpost well" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"exploratory outpost well" means a well or portion of a well that is classified as an exploratory outpost under section 14 (2) of the Drilling and Production Regulation;
Section 1(1) definition "exploratory wildcat well" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"exploratory wildcat well" means a well or portion of a well that is classified as an exploratory wildcat under section 14 (3) of the Drilling and Production Regulation or reclassified as an exploratory wildcat under section 14 (4) of that regulation;
Section 1(1) definition "gas well event" paragraph (b) BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
(b) all completions in zones that are not within a net profit royalty project in a well that has a primary product of natural gas and is subject to a commingling approval from the Oil and Gas Commission under section 41 (2) of the Drilling and Production Regulation;
Section 1(1) definition "natural gas processing plant" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"natural gas processing plant" means a plant for the extraction from natural gas of marketable gas and natural gas by-products but does not include production facilities as defined in the Drilling and Production Regulation;
Section 1(1) definition "re-entry date" BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
"re-entry date", in relation to a well, means the date selected as the re-entry date for the well by the Oil and Gas Commission in an approval given to an alteration application;
Section 1(1) definition "third tier oil" paragraph (b) BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
(b) oil produced from an oil well event that is incremental oil, other than revenue sharing oil, that is derived from a pressure maintenance scheme, or an enhanced oil recovery scheme, that was approved after December 31, 1999 under section 100 of the Act;
Section 1 definition of "discovery well" BEFORE amended by BC Reg 91/2012 effective April 20, 2012.
"discovery well" means an oil well event within a well designated as a discovery well under section 2 of the Drilling and Production Regulation;
Section 1 (1) definition of "deep well depth", "deep well event" and "horizontal length factor" BEFORE amended by BC Reg 30/2014 effective March 14, 2014.
"deep well depth" means, for a deep well event,
(a) if in a vertical well, the measured depth to the completion point, and
(b) if in a horizontal well, the sum of
(i) the measured depth to the completion point, and
(ii) the product of the applicable horizontal length factor multiplied by the positive difference between the total measured depth and the measured depth to the completion point;
"deep well event" means a well event referred to in subsection (5) or (5.1);
"horizontal length factor", in relation to a gas well event, has the following meaning:
(a) for a gas well event with a measured depth to the completion point of between 2 300 metres and 2 875 metres, the amount determined by the following formula:
| 60 - 0.035 x (measured depth to completion point - 2300) |
| 100 |
(a.1) for a gas well event in a well that has a spud date after August 31, 2009 and a measured depth to the completion point of between 1 900 metres and 2 875 metres, the amount determined by the following formula:
| 60 - 0.035 x (measured depth to completion point - 2300) |
| 100 |
(b) for a gas well event with a measured depth to the completion point deeper than 2 875 metres, 0.40;
Section 1 (5) (part) BEFORE amended by BC Reg 30/2014 effective March 14, 2014.
(5) Subject to subsection (5.1), a well event is a deep well event if
Section 1 (5.1) (part) and paragraph (f) BEFORE amended by BC Reg 30/2014 effective March 14, 2014.
(5.1) In the case of a well that has a spud date after August 31, 2009, a well event is a deep well event if
(f) the well event is not an ultra-marginal well event.
Section 1 (5.2) was added by BC Reg 30/2014 effective March 14, 2014.
Section 1 (6) (b) BEFORE amended and (b.1) was added by BC Reg 30/2014 effective March 14, 2014.
(b) the well event is either in a vertical well and has a true vertical depth to the top of the pay of the well event of less than 2 500 metres or in a horizontal well and has a true vertical depth to the top of the pay of the well event of less than 2 300 metres,
Section 4(4)(b) BEFORE amended by BC Reg 128/2013 effective April 1, 2013.
(b) the well has a spud date after June 30, 2003 and before December 1, 2003, or, in any subsequent year, after March 31 of that year and before December 1 of that year,
Section 5(5) BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
(5) If a new pool discovery well is converted into an injection well as part of a pressure maintenance scheme prior to the oil well producing its full royalty holiday entitlement under subsection (4), the collector, on application, may approve a transfer of the unused portion of the royalty holiday entitlement to another oil well producing from the same pool.
Section 6 (2) Item 2 BEFORE amended by BC Reg 91/2012 effective April 20, 2012.
| Item 2 | |
| Column 1 | Column 2 |
| Natural gas or natural gas by-products used for oil and natural gas production, for drilling purposes or for injection into the formation from which they were produced, if the locations of production and use are held by the same producer or are both within the same unitized operation. | Exempt from payment |
Section 7 (5) (c) BEFORE amended by BC Reg 91/2012 effective April 20, 2012.
(c) subject to subsections (8) and (10), if the royalty or tax is payable in relation to a deep well event that is the deepest deep well event located in a well that has a spud date after November 30, 2003, the lesser of
Section 7(7) definition "incremental drilled distance" in paragraph (d), subclauses (a) and (b) BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
(a) the total measured depth of all deep well events and all deep re-entry well events in the well after the well has been altered in accordance with the alteration application, and
(b) the total measured depth of all deep well events and all deep re-entry well events in the well before that alteration.
Section 7(0.1) and (0.2) were added by BC Reg 128/2013 effective April 1, 2013.
Section 7(5) BEFORE amended by BC Reg 128/2013 effective April 1, 2013.
(5) Subject to subsection (5.1), the amount of royalty or tax payable to the government for natural gas in relation to a well event and producing month is the total gross natural gas royalty or tax determined under subsection (7) (a), or, for natural gas produced under the authority of a BPO lease, 75% of the total gross natural gas royalty or tax determined under subsection (7) (a), minus
(a) the producer cost of service allowance, or, for natural gas produced under the authority of a BPO lease, 75% of the producer cost of service allowance,
(b) the royalty or tax exempt value determined under subsection (7) (b),
(c) subject to subsections (8) and (10), if the royalty or tax is payable in relation to a deep well event that is located in a well that has a spud date after November 30, 2003, the lesser of
(i) the portion of the well depth deduction amount determined under subsection (7) (c) that, when added to the amounts referred to in paragraphs (a) and (b) of this subsection, reduces to zero the total gross natural gas royalty or tax determined under subsection (7) (a), and
(ii) the positive difference obtained by reducing the amount of the well depth deduction amount determined under subsection (7) (c) by the total of all previous deductions made under subparagraph (i) of this paragraph, and
(d) subject to subsections (9) and (10), if the royalty or tax payable in relation to a deep re-entry well event that is located in a well that has a re-entry date after November 30, 2003, the lesser of
(i) that portion of the deep re-entry incremental deduction amount determined under subsection (7) (d) that, when added to the amounts referred to in paragraphs (a) to (c) of this subsection, reduces to zero the total gross natural gas royalty or tax determined under subsection (7) (a), and
(ii) the positive difference obtained by reducing the amount of the deep re-entry incremental deduction amount determined under subsection (7) (d) by the total of all previous deductions made under subparagraph (i) of this paragraph.
Section 7 (0.1) BEFORE amended by BC Reg 30/2014 effective March 14, 2014.
(0.1) In this section, "minimum royalty amount" means the sum of the following:
(a) 3% of the volume of marketable gas made available for sale in the producing month from a well event multiplied by the reference price for that marketable gas;
(b) 3% of the volume of natural gas liquids sold from a well event in the producing month multiplied by the reference price for the natural gas liquids;
(c) 3% of the volume of sulphur sold from a well event in the producing month multiplied by the reference price for the sulphur.
Section 7 (7) (c) definitions of "CV" and "AD" BEFORE amended by BC Reg 30/2014 effective March 14, 2014.
| where | |
| CV means the cumulative value that, in the portion of Table 1 or, with respect to a deep well event in a well with a spud date after August 31, 2009, Table 2 applicable to the well under subsection (7.1), is shown opposite the table depth of whichever of those deep well events is the deepest (the "deepest well event"); | |
| AD means the incremental value that, in the portion of Table 1 or, in the case of a deep well event in a well with a spud date after August 31, 2009, Table 2 applicable to the well under subsection (7.1), is shown opposite the table depth of the deepest well event multiplied by the positive difference between the deep well depth of that well event and the table depth of that well event; | |
| PI means the producer's interest in the deepest well event; |
Section 7 (7) (c) definition of "specified table" was added by BC Reg 30/2014 effective March 14, 2014.
Section 7 (7) (c) Table 3 was added by BC Reg 30/2014 effective March 14, 2014.
Section 8(1)(k) BEFORE amended by BC Reg 269/2010 effective October 4, 2010.
(k) every person who operates a treating plant to recover clean oil or condensate must, on or before the 25th day of the calendar month following the calendar month in which oil, condensate or water is received, file a report that, for the month in which the oil, condensate and water is received, indicates the volumes of oil, condensate or water delivered to the treating plant and the production facility from which the product was delivered;
Section 12 (1), (3) and (4) BEFORE amended by BC Reg 4/2010 effective January 14, 2010.
(1) A producer may appeal a decision of the collector under section 3 (1) or 11 (1) or a decision of the administrator under section 11 (2) to the Minister of Provincial Revenue by mailing by registered mail, within 60 days after the decision of the collector or administrator, a notice of appeal addressed to the Minister of Provincial Revenue.
(3) On receipt of the notice of appeal and all relevant information from the office of the collector or administrator, the Minister of Provincial Revenue, with or without a hearing, must confirm, vary or reverse the decision of the collector or administrator.
(4) The Minister of Provincial Revenue must convey the decision to the collector who must mail to the person who made the appeal notification of that minister's decision and must include, if applicable, notice of assessment reflecting that minister's decision.