Energy Administration Act

Marginal note:Distributing excess

• 54 (1) Where in any month gas that is purchased or otherwise acquired in or from its province of production is transported and resold by the purchaser thereof in any areas or zones in Canada outside its province of production or at any points of export from Canada, the purchaser shall, in respect of each such month, distribute to producers, in accordance with such regulations as the Governor in Council may make in that behalf, an amount equal to the excess of

  • (a) the total revenues received by the purchaser for the gas so resold in that month

  over

  • (b) the purchaser’s cost of service, as determined by the Board, in respect of the gas so resold in that month, including the purchaser’s cost of gas.

• Marginal note:Idem

  (2) Where in any month gas that is purchased or otherwise acquired in or from its province of production is transported from that province for delivery in any areas or zones in Canada outside its province of production or at any points of export from Canada by a person other than its purchaser, the purchaser shall, in respect of each such month, distribute to producers, in accordance with such regulations as the Governor in Council may make in that behalf, an amount equal to the excess of

  • (a) the total value, as determined by the Board, of the purchaser’s gas delivered in that month in those areas or zones outside its province of production or at those points of export from Canada

  over

  • (b) the purchaser’s cost, as determined by the Board, in respect of the acquisition and transportation of that gas to its point of delivery in that month.

• Marginal note:Cost of gas

  (3) For the purposes of this section, the cost of gas shall be computed, if approved by the Board, by using prices payable at the well-head to producers of gas or shall be computed by such other means as the Board may prescribe.

• Marginal note:Determining other costs

  (4) In determining a purchaser’s cost of service for the purposes of subsection (1) or a purchaser’s cost in respect of the acquisition and transportation of gas for the purposes of subsection (2), the Board shall be governed by the principles applied by it in determining those costs for the purposes of making orders with respect to traffic, tolls or tariffs under Part IV of the National Energy Board Act.