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"Point in Time" Regulation Content

Petroleum and Natural Gas Act

Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation

B.C. Reg. 495/92

NOTE: Links below go to reg content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to present)
SECTIONEFFECTIVE DATE
Section 1 October 4, 2010
April 20, 2012
March 14, 2014
November 1, 2018
Section 4 April 1, 2013
July 20, 2016
November 1, 2018
Section 5 October 4, 2010
Section 6 April 20, 2012
Section 7 October 4, 2010
April 20, 2012
April 1, 2013
March 14, 2014
November 1, 2018
Section 7.2 November 1, 2018
Section 8 October 4, 2010
November 1, 2018
Section 9 November 1, 2018
Section 10 November 1, 2018
Section 11 November 1, 2018
Section 12 January 14, 2010
November 1, 2018
September 20, 2020
Section 13 November 1, 2018
Section 14 November 1, 2018

 Section 1 (1) definition "alteration application" BEFORE repealed by BC Reg 269/2010, effective October 4, 2010.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 Section 1 (1) definition "completed well" BEFORE repealed by BC Reg 269/2010, effective October 4, 2010.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 (1) definition of "discovery well" BEFORE amended by BC Reg B.C. 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 B.C. 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 B.C. 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 B.C. 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 B.C. Reg. 30/2014, effective March 14, 2014.

 Section 1 (6) (b) BEFORE amended and (b.1) was added by BC Reg B.C. 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 1 (1) definitions of "Crown invoice" and "reporting facility" BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

"Crown invoice" means an invoice delivered under section 9 (1), (1.1) or (1.2);

"reporting facility" means

(a) a battery as defined in the Drilling and Production Regulation, or

(b) if there is no battery to receive the effluent from a well event, the surface equipment associated with that well event that measures the volume of effluent produced;

 Section 1 (1) definition of "royalty share" (c) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(c) in the case of a class of natural gas by-products produced in a producing month from a well event, the producer's share of those natural gas by-products sold in the producing month multiplied by the royalty percentage rate under section 6 that is applicable to that class of natural gas by-products;

 Section 1 (1) definition of "tax share" (c) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(c) in the case of a class of freehold natural gas by-products produced in a producing month from a well event, the producer's share of those freehold natural gas by-products sold in the producing month multiplied by the tax percentage rate under section 6 that is applicable to that class of freehold natural gas by-products;

 Section 1 (1) definition of "weighted average royalty or tax rate" (b) and (c) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(b) the producer's share of the natural gas liquids produced from the well event in the producing month and sold in that month, multiplied by the reference price for the natural gas liquids, and

(c) the producer's share of the sulphur produced from the well event in the producing month and sold in that month, multiplied by the reference price for the sulphur;

 Section 1 (1) definitions of "operator of a reporting facility" and "royalty for an unaccounted quantity" were added by BC Reg 194/2018, effective November 1, 2018.

 Section 4 (4) (b) BEFORE amended by BC Reg B.C. 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 4 (0.1) was added by BC Reg B.C. Reg. 192/2016, effective July 20, 2016.

 Section 4 (6) (b) BEFORE amended by BC Reg B.C. Reg. 192/2016, effective July 20, 2016.

(b) a project deduction amount if and to the extent that that deduction amount is available to the producer under subsections (9) and (10).

 Section 4 (9) and (10) BEFORE amended by BC Reg B.C. Reg. 192/2016, effective July 20, 2016.

(9) If a producer advises the administrator that the producer intends to undertake a project to construct or upgrade pipelines, bridges, roads, rails or trails in support of resource exploration or development,

(a) the administrator may agree that the producer is entitled to deduct from the royalty or tax otherwise payable by the producer under this Act a portion of the costs attributable to that project,

(b) the administrator may, for the purposes of paragraph (a), enter into an agreement with the producer identifying the various steps that constitute the project and specifying what constitutes the completion of each step, what the estimated completion cost of each step is to be and what the estimated completion cost for the project is to be, and

(c) the project deduction amount available to a producer who has entered into an agreement under paragraph (b) for each of the specified steps of the project is 50% of the lesser of the estimated completion cost for that step and the amount actually spent by the producer to complete that step, if the administrator is satisfied that

(i) the step has been completed in the manner and to the extent required by the agreement,

(ii) the producer intends to complete the project, and

(iii) the completion cost for which the deduction amount is calculated has actually been paid by the producer.

(10) Despite subsections (9) and (9.1), the total amount of project deduction amounts that may be deducted from the amount of royalty or tax payable by a producer must not exceed 50% of the lesser of

(a) the estimated completion cost for the project, and

(b) the amount actually spent by the producer or the parties to the contractual arrangement, as the case may be, to complete the project.

 Section 4 (9.1) and (9.2) BEFORE repealed by BC Reg B.C. Reg. 192/2016, effective July 20, 2016.

(9.1) If a pipeline company advises the administrator that the pipeline company intends to undertake a project, in a contractual arrangement with one or more producers, to construct or upgrade pipelines in British Columbia in support of resource exploration or development in British Columbia,

(a) the administrator may agree that the producer or producers are entitled to deduct from the royalty or tax otherwise payable by the producer or producers under this Act a portion of the costs attributable to that project,

(b) the administrator may, for the purpose of paragraph (a), enter into an agreement with the parties to the contractual arrangement, identifying the various steps that constitute the project, and specifying what constitutes the completion of each step, what the estimated completion cost of each step is to be and what the estimated completion cost for the project is to be,

(c) the project deduction amount available, for each of the specified steps of the project, to all producers who have entered into an agreement for that project under paragraph (b), is 50% of the lesser of the estimated completion cost for that step and the amount actually spent by the parties to the contractual arrangement to complete that step, if the administrator is satisfied that

(i) the step has been completed in the manner and to the extent required by the agreement,

(ii) the parties to the contractual arrangement intend to complete the project, and

(iii) the completion cost for which the deduction amount is calculated has actually been paid by the parties to the contractual arrangement.

(9.2) For the purposes of subsection (9.1):

"pipeline" means a pipe or system or arrangement of pipes by which is conveyed petroleum or natural gas, or water used or obtained in drilling for or in the production of petroleum or natural gas, and property used for, with or incidental to their operation, but does not include a pipe or system or arrangement of pipes to distribute natural gas in a community to ultimate consumers;

"pipeline company" means a person that owns, constructs or operates a pipeline.

 Section 4 (11) to (16) were added by BC Reg B.C. Reg. 192/2016, effective July 20, 2016.

 Section 4 (1) and (2) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(1) On or before the 25th day of each calendar month, a producer is to pay to the government royalty and tax based on an estimate of the value of

(a) oil produced from an oil well event by the producer in the producing month that is the calendar month before the calendar month of the royalty or tax payment,

(b) marketable gas produced from a well event and made available for sale by the producer in the producing month that is the second calendar month before the calendar month of the royalty or tax payment, and

(c) natural gas by-products produced from a well event and sold by the producer in the producing month that is the second calendar month before the calendar month of the royalty or tax payment.

(2) A producer to whom Crown invoices are delivered under section 9 (1) in respect of a producing month is, on or before the later of the 25th day of the calendar month in which the Crown invoices are delivered and 15 days after the date that the Crown invoices are delivered, to pay the total of those invoiced amounts less the amount paid under subsection (1) (a) of this section in respect of the producing month.

 Section 4 (2.1) and (2.3) BEFORE repealed by BC Reg 194/2018, effective November 1, 2018.

(2.1) A producer to whom Crown invoices are delivered under section 9 (1.1) in respect of a producing month is, on or before the later of the 25th day of the calendar month in which the Crown invoices are delivered and 15 days after the date that the Crown invoices are delivered, to pay the total of those invoiced amounts less the amount paid under subsection (1) (b) and (c) of this section in respect of the producing month.

(2.3) A producer to whom Crown invoices are delivered under section 9 (1.2) in respect of a producing month is, on or before the later of the 25th day of the calendar month in which the Crown invoices are delivered and 15 days after the date that the Crown invoices are delivered, to pay the total of those invoiced amounts less the amount paid under subsection (1), (2) and (2.1) of this section in respect of the producing month.

 Section 4 (4) (d) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(d) the producer files a report for the summer drilling credit in accordance with section 8 (1) (l).

 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 B.C. Reg. 91/2012, effective April 20, 2012.

Item 2
Column 1Column 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 (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 (5) (c) BEFORE amended by BC Reg B.C. 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 (0.1) and (0.2) were added by BC Reg B.C. Reg. 128/2013, effective April 1, 2013.

 Section 7 (5) BEFORE amended by BC Reg B.C. 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 B.C. 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 B.C. 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 B.C. Reg. 30/2014, effective March 14, 2014.

 Section 7 (7) (c), table 3 was added by BC Reg B.C. Reg. 30/2014, effective March 14, 2014.

 Section 7 (0.1) definition of "minimum royalty amount" (b) and (c) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(b) the specified percentage of the volume of natural gas liquids sold from a well event in the producing month multiplied by the reference price for those natural gas liquids;

(c) the specified percentage of the volume of sulphur sold from a well event in the producing month multiplied by the reference price for that sulphur;

 Section 7 (2) (part) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

the collector shall fix a unit selling price of the royalty or tax share at a level not exceeding the highest unit selling price received by any producer during the month in which the sale takes place, and the royalty or tax share is deemed to have been sold at the unit selling price fixed by the collector.

 Section 7 (7) (part) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(7) For the purpose of section 7 (5),

 Section 7.2 was added by BC Reg 194/2018, effective November 1, 2018.

 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 8 (1) and (2) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(1) For the purposes of section 74 (1) of the Act, the following reports must be filed with the collector in the form and manner required by the director:

(a) every operator of a reporting facility must, on or before the 25th day of the calendar month following each producing month, file reports indicating the production and disposition in that producing month of oil, condensate, natural gas and water obtained at the reporting facility;

(b) every producer of oil must, on or before the last day of the calendar month following each producing month, file a report indicating, for each reporting facility or unitized operation at which the producer had oil sales in that producing month,

(i) the volume of oil sold by the producer at that reporting facility or unitized operation in that producing month,

(ii) the sales value of oil sold by the producer at that reporting facility or unitized operation in that producing month, and

(iii) the transportation and tariff costs that under section 7 (3) (a) may be deducted for that producing month;

(c) every producer of natural gas must, on or before the last day of the second calendar month following each producing month, file a report indicating, for that producing month,

(i) the producer's share of the volumes of marketable gas produced from each well event in which the producer has an interest,

(ii) the producer's share of the sales volumes and values of natural gas by-products produced from each well event in which the producer has an interest, and

(iii) the producer's share of the volume of natural gas produced from each well event in which the producer has an interest;

(d) every producer that, under section 4, makes a payment on account of oil, marketable gas or natural gas by-product royalties and taxes, must, on or before the last day of the calendar month in which the payment is made, file a report respecting that payment indicating the amounts paid

(i) by producing month for petroleum, marketable gas and natural gas by-product royalty and taxes,

(ii) by producing month for estimated marketable gas and natural gas by-product royalty and taxes, and

(iii) for penalties and interest;

(e) every operator of a well event must, on or before the 20th day of the calendar month following the calendar month in which operations at the well event began or were suspended, file a report indicating the commencement or suspension of operations;

(f) every operator of a facility to which a well event is connected must, on or before the 20th day of the calendar month after the calendar month in which the well event is connected to the facility or in which a change in producers' interests in the well event is effective, file a report indicating the producers' interests or the change in producers' interests in the natural gas and oil produced from the well event;

(g) every operator of a unitized operation for which there is a unitization agreement under which royalty is determined in relation to a tract according to production volumes allocated to that tract under the agreement, must, on or before the 20th day of the second calendar month after the calendar month in which there is a change in producers' interests in the natural gas or oil allocated to a tract, file a report indicating the change in producers' interests in the tract;

(h) for the purpose of section 2 (8), every operator of a producer-owned plant or a producer-owned sales line that is not located within a project ring fence must, on or before March 15 of the calendar year following the calendar year in which the plant processed gas or the pipeline transported gas, file a report indicating the capital and operating costs of the plant or sales line;

(i) every person who processes natural gas produced in British Columbia must, on or before the 25th day of the calendar month following the calendar month in which the natural gas was processed, file for the month in which the natural gas was processed

(i) a report indicating the volume of natural gas, expressed in 1 000 m3, delivered to a natural gas processing plant and the disposition of the marketable gas by producer and purchaser, and

(ii) a report indicating the production volume of natural gas by-products processed at the natural gas processing plant and the volume of natural gas by-products disposed of by producer, destination and purchaser;

(j) every person who operates a pipeline that receives oil or condensate produced in British Columbia must, on or before the 25th day of the calendar month following the calendar month in which the oil or condensate was received, file a report that, for the month in which the oil or condensate was received, indicates

(i) the volume received at each sales meter, and

(ii) the volume received from each facility from which the oil or condensate was delivered;

(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 reporting facility from which the product was delivered;

(l) every producer who has drilled a well that qualifies for a summer drilling credit under section 4 (4) must, on or before June 30 of the calendar year following the calendar year in which the well was drilled, file a report indicating

(i) the amount of goods and service costs incurred to drill the well, and

(ii) each producer's proportionate interest in the well.

(2) Subject to subsection (2.1). a person may amend a report filed under subsection (1) by filing an amended report with the collector.

 Section 8 (2.01) was added by BC Reg 194/2018, effective November 1, 2018.

 Section 8 (2.1) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(2.1) A person must not file an amended report under subsection (2) more than 72 months after the month in relation to which the amended report is being filed.

 Section 8 (4) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(4) A person who produces, processes, transports, acquires from a producer or offers to acquire from a producer oil, natural gas or natural gas by-products shall, not later than 60 days after a written request from the administrator or the collector, provide, in the form and manner and for the times requested, the information requested respecting the production, processing, transportation, acquisition or sale of the oil, natural gas or natural gas by-products.

 Section 8 (5) (part) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(5) No later than the 10th working day of the second month following the month in which a producer produces marketable gas, the producer must, by submission to the administrator of copies of all invoices for the following, report to the administrator on the following:

 Section 9 (1) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(1) After receiving reports filed by a producer of oil under section 8 (1) (b) for a producing month, the collector is, on or about the 10th day of the second calendar month following the producing month, to deliver a Crown invoice to the producer showing for the producing month the amount of royalties and taxes that is payable to the government in respect of the oil to which those reports apply.

 Section 9 (1.1) BEFORE repealed by BC Reg 194/2018, effective November 1, 2018.

(1.1) After receiving reports filed by a producer of natural gas under section 8 (1) (c) for a producing month, the collector is, on or about the 10th day of the third calendar month following the producing month, to deliver a Crown invoice to the producer showing for the producing month the amount of royalties and taxes that is payable to the government in respect of the marketable gas and natural gas by-products to which those reports apply.

 Section 9 (1.2) and (2) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(1.2) After a producer files an amended report under section 8 (2) to amend a report filed under section 8 (1) (b) or 8 (1) (c), the collector is to deliver an amended Crown invoice to the producer, on or before the 10th day of the second calendar month following the calendar month in which the amended report was filed, showing for the producing month the amount of royalties and taxes that is payable to the government in respect of the marketable gas and natural gas by-products to which the amended report applies.

(2) If the collector, on examining a report filed under section 8 (1) or an amended report filed under section 8 (2), disagrees with the information or calculations in it, the collector may

(a) request the person who filed the report or amended report to submit, within 60 days after the date of the request, a report based on the information the collector believes is correct, or

(b) assess or reassess royalty or tax payable to the government based on the information the collector believes is correct.

 Section 9 (3) (b) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(b) in any other case, not more than 72 months after the last day of the producing month to which the assessment or reassessment relates.

 Section 9 (4), (5), (6) and (7) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(4) The notice of assessment must contain the determination made by the collector of the amount of royalty, tax and interest payable and the due date for payment of that amount.

(5) On assessing or reassessing the royalty or tax payable by a producer who has not filed a report or has filed a report containing information with which the collector disagrees, the collector shall mail a notice of assessment to the producer.

(6) The producer assessed shall pay to the collector the amount of royalty or tax owing as set out in the notice of assessment within 60 days after the date shown on the notice of assessment.

(7) In the case of an overpayment, the producer may deduct from royalty or tax payments due after the date of the notice of assessment the amount of the overpayment indicated in the notice of assessment.

 Section 9 (5.1) and (7.1) were added by BC Reg 194/2018, effective November 1, 2018.

 Section 10 (1) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(1) A producer's liability for royalty, tax, interest or penalty due under the Act and this regulation is not affected by reason only of a prior incorrect assessment or the absence of an assessment.

 Section 10 (3) was added by BC Reg 194/2018, effective November 1, 2018.

 Section 11 (1) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(1) The collector may reconsider or vary an invoice or assessment of royalties, taxes or penalties made under section 9 on the request of a producer who objects in writing to the amount assessed.

 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.

 Section 12 BEFORE re-enacted by BC Reg 194/2018, effective November 1, 2018.

Appeals

12   (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 Finance 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 Finance.

(2) The notice must state the name and address of the producer, the date of the collector's or administrator's decision, the class designated under section 3 (1) and the amount of royalty, tax, interest or penalty assessed under section 9, if any, and must set out the reasons for the appeal and the facts on which it is based.

(3) On receipt of the notice of appeal and all relevant information from the office of the collector or administrator, the Minister of Finance, with or without a hearing, must confirm, vary or reverse the decision of the collector or administrator.

(4) The Minister of Finance 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.

[en. B.C. Reg. 302/2003, s.6 ; am. B.C. Reg. 4/2010, s. 2.]

 Section 12 (5) and (6) were added by BC Reg 239/2020, effective September 20, 2020.

 Section 13 (1) and 1.1 BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(1) The annual rate of interest during a quarterly period for penalties, royalties and unpaid interest is 3.0% above the prime lending rate of the principal banker to the Province on the 15th day of the month immediately preceding a quarterly period commencing on January 1, April 1, July 1 and October 1 of each calendar year.

(1.1) The annual rate of interest during a quarterly period for overpayments is the prime lending rate of the principal banker to the Province on the 15th day of the month immediately preceding a quarterly period commencing on January 1, April 1, July 1 and October 1 of each calendar year.

 Section 13 (1.2) BEFORE repealed by BC Reg 194/2018, effective November 1, 2018.

(1.2) If, under subsection (2), interest is to be calculated on an amount, that interest must be calculated in accordance with the following formula:

 D
A x 1 x
 
 365.25 
where
Ameans the amount on which interest is to be calculated;
Imeans the applicable interest rate under subsection (1) or (1.1);
Dmeans the number of days from and excluding the 25th day of the calendar month at the end of which A is owing to and including the 25th day of the following calendar month.

 Section 13 (2) to (5) BEFORE amended by BC Reg 194/2018, effective November 1, 2018.

(2) Interest on overpayments and on unpaid royalties and taxes is to be calculated as follows:

(a) if, at the end of a calendar month, an amount is owing by a producer for one or both of royalty and taxes, interest is to be calculated on that unpaid amount in accordance with subsection (1.2);

(b) if the amount of an estimate payment made on or before the end of a calendar month under section 4 (1) is less than 90 percent of the royalty and tax that is invoiced to the producer for that calendar month under section 9 (1) or (1.1), interest on the difference between the payment and the invoice amount is to be calculated in accordance with subsection (1.2) of this section;

(c) if interest is payable under paragraph (a) or (b) on an amount (the "initial producer amount") and the whole or any part of the initial producer amount remains unpaid at the end of any calendar month following the calendar month in respect of which interest first became payable on the initial producer amount, interest is to be calculated on the unpaid portion of the initial producer amount in accordance with subsection (1.2);

(d) if royalties or taxes are overpaid by a producer in a calendar month and the overpayment is not reimbursed or credited on or before the end of that calendar month, interest on that overpayment is to be calculated in accordance with subsection (1.2);

(e) if the amount of an estimate payment made on or before the end of a calendar month under section 4 (1) is greater than 110 percent of the royalty and tax that is invoiced to the producer for that calendar month under section 9 (1) or (1.1), interest on the difference between the payment and the invoice amount is to be calculated in accordance with subsection (1.2) of this section;

(f) if interest is payable under paragraph (d) or (e) on an amount (the "initial amount") and the whole or any part of the initial amount is not paid or credited on or before the end of any calendar month following the calendar month in respect of which interest first became payable on the initial amount, interest is to be calculated on the unpaid portion of the initial amount in accordance with subsection (1.2).

(3) No charge shall be made if an interest charge is less than $5.

(4) If a person fails to file, within the required time, a report required under section 8 (1) (f) in relation to an interest in oil produced from a well event or a report required under section 8 (1) (a), (b), (c), (d), (e), (g) or (h) or (5) or 9 (2) (a), the person may be assessed a penalty of $20 for each day that the failure to file continues, or for any lesser number of days that the collector considers appropriate, up to a maximum amount payable under this subsection of $6 000 for each report.

(5) If a person fails to file, within the required time, a report required under section 8 (1) (f) in relation to an interest in natural gas produced from a well event or a report required under section 8 (1) (i), (j) or (k), the person may be assessed a penalty of $100 for each calendar month or part of a calendar month that the failure continues, or for any lesser number of months that the collector considers appropriate, up to a maximum amount payable under this subsection of $6 000 for each report.

 Section 13 (6) to (11) were added by BC Reg 194/2018, effective November 1, 2018.

 Section 14 was added by BC Reg 194/2018, effective November 1, 2018.