Income Tax Regulations

1206 (1) In this Part,

bituminous sands equipment

bituminous sands equipment means property of a taxpayer that

• (a) is included in Class 28 or in paragraph (a) of Class 41 in Schedule II, other than property so included

  • (i) by virtue of the first reference in Class 28 to paragraph (l) of Class 10 in Schedule II, where the property was acquired by the taxpayer before November 17, 1978, or

  • (ii) by virtue of the reference in Class 28 to paragraph (m) of Class 10 in Schedule II, and

• (b) was acquired by the taxpayer after April 10, 1978 principally for the purpose of gaining or producing income from one or more mines, each of which is a location in a bituminous sands deposit, oil sands deposit or oil shale deposit from which material is extracted; (matériel d’exploitation de sables bitumineux)

Canadian exploration and development overhead expense

Canadian exploration and development overhead expense of a taxpayer means a Canadian exploration expense or a Canadian development expense of the taxpayer made or incurred after 1980 that is not a Canadian renewable and conservation expense (in this definition having the meaning assigned by subsection 66.1(6) of the Act) nor a taxpayer’s share of a Canadian renewable and conservation expense incurred by a partnership and

• (a) that was in respect of the administration, management or financing of the taxpayer,

• (b) that was in respect of the salary, wages or other remuneration or related benefits paid in respect of a person employed by the taxpayer whose duties were not all or substantially all directed towards exploration or development activities,

• (c) that was in respect of the upkeep or maintenance of, taxes or insurance in respect of, or rental or leasing of, property other than property all or substantially all of the use of which by the taxpayer was for the purposes of exploration or development activities, or

• (d) that may reasonably be regarded as having been in respect of

  • (i) the use of or the right to use any property in which any person who was connected with the taxpayer had an interest,

  • (ii) compensation for the performance of a service for the benefit of the taxpayer by any person who was connected with the taxpayer, or

  • (iii) the acquisition of any materials, parts or supplies from any person who was connected with the taxpayer

  to the extent that the expense exceeds the least of amounts, each of which was the aggregate of the costs incurred by a person who was connected with the taxpayer

  • (iv) in respect of the property,

  • (v) in respect of the performance of the service, or

  • (vi) in respect of the materials, parts or supplies; (frais généraux d’exploration et d’aménagement au Canada)

Canadian oil and gas exploration expense

Canadian oil and gas exploration expense, of a taxpayer, means an outlay or expense that is made or incurred after 1980 and that would be a Canadian exploration expense, as defined in subsection 66.1(6) of the Act, of the taxpayer (other than an outlay or expense in respect of a qualified tertiary oil recovery project that is a Canadian exploration expense of the taxpayer because of subparagraph (c)(ii) or (d)(ii) of that definition) if

• (a) that definition were read without reference to its paragraphs (f) to (g.4),

• (b) the reference in paragraph (h) of that definition to “any of paragraphs (a) to (d) and (f) to (g.4)” were read as “any of paragraphs (a) to (e)”, and

• (c) the reference in paragraph (i) of that definition to “any of paragraphs (a) to (g)” were read as “any of paragraphs (a) to (e)”; (frais d’exploration pétrolière et gazière au Canada)

coal mine operator

coal mine operator means a person who undertakes all or substantially all of the activities involved in the production of coal from a resource; (exploitant de mine de charbon)

conventional lands

conventional lands means lands situated in Canada other than non-conventional lands; (terres conventionnelles)

disposition of property

disposition of property has the meaning assigned by paragraph 13(21)(c) of the Act; (disposition de biens)

enhanced recovery equipment

enhanced recovery equipment means property of a taxpayer that

• (a) is included in Class 10 in Schedule II by virtue of paragraph (j) of the description of that Class, and

• (b) was acquired by the taxpayer after April 10, 1978 and before 1981 for use in the production of oil, from a reservoir or a deposit of bituminous sand, oil sand or oil shale in Canada operated by the taxpayer, that is incremental to oil that would be recovered using primary recovery techniques alone,

other than property

• (c) used by the taxpayer as part of a primary recovery process prior to the use described in paragraph (b),

• (d) that had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length, or

• (e) that has been used by any person before April 11, 1978 in the production of oil, from a reservoir in Canada, that is incremental to oil that would be recovered using primary recovery techniques alone; (matériel amélioré de récupération)

exempt partnership

exempt partnership[Repealed, SOR/2007-19, s. 4]

exporting resource

exporting resource means, in relation to a particular processing property of a taxpayer, a resource the ore or any portion thereof produced from which during the year immediately preceding the day on which the property was acquired by the taxpayer was ordinarily processed outside Canada to any stage that is not beyond the prime metal stage or its equivalent; (ressource destinée à l’exportation)

mine

mine means any location where material is extracted from a resource but does not include a well for the extraction of material from a deposit of bituminous sand, oil sand or oil shale; (mine)

non-conventional lands

non-conventional lands means lands that belong to Her Majesty in right of Canada, or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources, situated in

• (a) the Yukon Territory, the Northwest Territories or Sable Island, or

• (b) those submarine areas, not within a province, adjacent to the coast of Canada and extending throughout the natural prolongation of the land territory of Canada to the outer edge of the continental margin or to a distance of two hundred nautical miles from the baselines from which the breadth of the territorial sea of Canada is measured, whichever is the greater; (terres non conventionnelles)

ore

ore includes ore from a mineral resource that has been processed to any stage that is prior to the prime metal stage or its equivalent; (minerai)

original owner

original owner of a property means a person

• (a) who owned the property and disposed of it to a corporation that acquired it in circumstances in which subsection 1202(2) applies, or would apply if the corporation had continued to own the property, to the corporation in respect of the property, and

• (b) who would, but for paragraph 1202(2)(b) (as it read in its application to taxation years ending before February 18, 1987) or paragraph 1202(3)(a), as the case may be, be entitled in computing the person’s income for a taxation year ending after the person disposed of the property to a deduction under section 1201 in respect of expenditures that were incurred by the person before the person disposed of the property; (propriétaire obligé)

predecessor owner

predecessor owner of a property means a corporation

• (a) that acquired the property in circumstances in which subsection 1202(2) applies, or would apply if the corporation had continued to own the property, to the corporation in respect of the property,

• (b) that disposed of the property to another corporation that acquired it in circumstances in which subsection 1202(2) applies, or would apply if the other corporation had continued to own the property, to the other corporation in respect of the property, and

• (c) that would, but for subsection 1202(10), be entitled in computing its income for a taxation year after it disposed of the property to a deduction under subsection 1202(2) in respect of expenditures incurred by an original owner of the property; (propriétaire antérieur)

primary recovery

primary recovery means the recovery of oil from a reservoir as a result of utilizing the natural energy of the reservoir to move the oil toward a producing well; (récupération primaire)

proceeds of disposition

proceeds of disposition of property has the meaning assigned by paragraph 13(21)(d) of the Act; (produit de la disposition)

processing property

processing property means property

• (a) that is included in Class 10 in Schedule II because of paragraph (g) of the description of that Class or would be so included if that paragraph were read without reference to subparagraph (ii) of that paragraph and Schedule II were read without reference to Class 41, or

• (b) that is included in Class 10 in Schedule II because of paragraph (k) of the description of that Class or would be so included if that paragraph were read without reference to the words following subparagraph (ii) of that paragraph and Schedule II were read without reference to Class 41,

other than property that had, before it was acquired by a taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length; (biens servant au traitement)

production royalty

production royalty[Repealed, SOR/2007-19, s. 4]

qualified resource

qualified resource means, in relation to a particular processing property of a taxpayer, a resource that, within a reasonable time after the property was acquired by him,

• (a) came into production in reasonable commercial quantities, or

• (b) was the subject of a major expansion whereby the greatest designed capacity, measured in weight of input of ore, of the mill that processed ore from the resource was not less than 25% greater in the year immediately following the expansion than it was in the year immediately preceding the expansion; (ressource admissible)

qualified tertiary oil recovery project

qualified tertiary oil recovery project in respect of an expense incurred in a taxation year means a project that uses a method (including a method that uses carbon dioxide miscible, hydrocarbon miscible, thermal or chemical processes but not including a secondary recovery method) that is designed to recover oil from an oil well in Canada that is incremental to oil that would be recovered therefrom by primary recovery and a secondary recovery method, if

• (a) a specified royalty provision applies in the year or in the immediately following taxation year in respect of the production, if any, or any portion thereof from the project or in respect of the ownership of property to which such production relates,

• (b) the project is on a reserve within the meaning of the Indian Act, or

• (c) the project is located in the Province of Ontario; (projet qualifié de récupération tertiaire du pétrole)

resource

resource means any mineral resource in Canada; (ressource)

resource activity

resource activity of a taxpayer means

• (a) the production by the taxpayer of petroleum, natural gas or related hydrocarbons or sulphur from

  • (i) an oil or gas well in Canada, or

  • (ii) a natural accumulation (other than a mineral resource) of petroleum or natural gas in Canada,

• (b) the production and processing in Canada by the taxpayer or the processing in Canada by the taxpayer of

  • (i) ore (other than iron ore or tar sands ore) from a mineral resource in Canada to any stage that is not beyond the prime metal stage or its equivalent,

  • (ii) iron ore from a mineral resource in Canada to any stage that is not beyond the pellet stage or its equivalent, and

  • (iii) tar sands ore from a mineral resource in Canada to any stage that is not beyond the crude oil stage or its equivalent,

• (c) the processing in Canada by the taxpayer of heavy crude oil recovered from an oil or gas well in Canada to any stage that is not beyond the crude oil stage or its equivalent,

• (c.1) Canadian field processing carried on by the taxpayer,

• (d) the processing in Canada by the taxpayer of

  • (i) ore (other than iron ore or tar sands ore) from a mineral resource outside Canada to any stage that is not beyond the prime metal stage or its equivalent,

  • (ii) iron ore from a mineral resource outside Canada to any stage that is not beyond the pellet stage or its equivalent, and

  • (iii) tar sands ore from a mineral resource outside Canada to any stage that is not beyond the crude oil stage or its equivalent, or

• (e) the ownership by the taxpayer of a right to a rental or royalty computed by reference to the amount or value of production from a natural accumulation of petroleum or natural gas in Canada, an oil or gas well in Canada or a mineral resource in Canada,

and, for the purposes of this definition,

• (f) the production of a substance by a taxpayer includes exploration and development activities of the taxpayer with respect to the substance, whether or not extraction of the substance has begun or will ever begin,

• (g) the production or the processing, or the production and processing, of a substance by a taxpayer includes activities performed by the taxpayer that are ancillary to, or in support of, the production or the processing, or the production and processing, of that substance by the taxpayer,

• (h) the production or processing of a substance by a taxpayer includes an activity (including the ownership of property) that is undertaken before the extraction of the substance and that is undertaken for the purpose of extracting or processing the substance,

• (i) the production or the processing, or the production and processing, of a substance by a taxpayer includes activities that the taxpayer undertakes as a consequence of the production or the processing, or the production and processing, of that substance, whether or not the production, the processing or the production and processing of the substance has ceased, and

• (j) notwithstanding paragraphs (a) to (i), the production, the processing or the production and processing of a substance does not include any activity of a taxpayer that is part of a source described in paragraph 1204(1)(b), where

  • (i) the activity

    • (A) is the transporting, transmitting or processing (other than processing described in subparagraph (b)(iii), paragraph (c) or (c.1) or subparagraph (d)(iii)) of petroleum, natural gas or related hydrocarbons or of sulphur, or

    • (B) can reasonably be attributed to a service rendered by the taxpayer, and

  • (ii) revenues derived from the activity are not taken into account in computing the taxpayer’s gross resource profits; (activité extractive)

secondary recovery method

secondary recovery method means a method to recover from a reservoir oil that is incremental to oil that would be recovered therefrom by primary recovery, by supplying energy to supplement or replace the natural energy of the reservoir through the use of technically proven methods, including waterflooding; (méthode de récupération secondaire)

specified development well

specified development well[Repealed, SOR/85-174, s. 7]

specified percentage

specified percentage for a calendar year

• (a) in respect of a Canadian oil and gas exploration expense of a taxpayer for that year incurred in respect of conventional lands means,

  • (i) for the 1981 calendar year, 100 per cent,

  • (ii) for the 1982 calendar year, 60 per cent, and

  • (iii) for the 1983 calendar year, 30 per cent, and

• (b) in respect of a Canadian oil and gas exploration expense of a taxpayer for that year incurred in respect of non-conventional lands means,

  • (i) for the 1981 and 1982 calendar years, 100 per cent,

  • (ii) for the 1983 calendar year, 60 per cent, and

  • (iii) for the 1984 calendar year, 30 per cent; (pourcentage désigné)

specified property

specified property of a person means all or substantially all of the property used by the person in carrying on in Canada such of the businesses described in subparagraphs 66(15)(h)(i) to (vii) of the Act as were carried on by the person; (biens déterminés)

specified royalty

specified royalty[Repealed, SOR/2007-19, s. 4]

stated percentage

stated percentage means

• (a) where the taxpayer is an individual other than a trust, in respect of subparagraph 1203(2)(a)(i),

  • (i) 100 per cent in respect of an expenditure incurred before 1989,

  • (ii) 50 per cent in respect of an expenditure incurred after 1988 and before 1990, and

  • (iii) 0 per cent in respect of an expenditure incurred after 1989,

• (b) in respect of subparagraph 1203(2)(a)(i) (where paragraph (a) is not applicable) and paragraphs 1205(1)(a), (b), (c) and (f)

  • (i) 100 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital before July 1, 1988,

  • (ii) 50 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital after June 30, 1988 and before 1990, and

  • (iii) 0 per cent in respect of an expenditure incurred or a cost incurred in borrowing capital after 1989,

• (c) where the taxpayer is an individual other than a trust, in respect of subparagraph 1203(2)(a)(ii) and subsection 1203(4),

  • (i) 100 per cent in respect of any assistance that relates to expenditures incurred before 1989,

  • (ii) 50 per cent in respect of any assistance that relates to expenditures incurred after 1988 and before 1990, and

  • (iii) 0 per cent in respect of any assistance that relates to expenditures incurred after 1989, and

• (d) in respect of subparagraph 1203(2)(a)(ii) (if paragraph (c) is not applicable), subsection 1203(4) (if paragraph (c) is not applicable) and subparagraph 1205(1)(j)(iii),

  • (i) 100 per cent in respect of any assistance or benefit that relates to expenditures incurred before July 1, 1988,

  • (ii) 50 per cent in respect of any assistance or benefit that relates to expenditures incurred after June 30, 1988 and before 1990, and

  • (iii) 0 per cent in respect of any assistance or benefit that relates to expenditures incurred after 1989; (pourcentage indiqué)

tar sands ore

tar sands ore means ore extracted, other than through a well, from a mineral resource that is a deposit of bituminous sand, oil sand or oil shale; (minerai de sables asphaltiques)

tertiary recovery equipment

tertiary recovery equipment means property of a taxpayer that

• (a) is, or but for Class 41 in Schedule II would be, included in Class 10 in Schedule II by virtue of paragraph (j) of the description of that Class,

• (b) was acquired by the taxpayer after 1980 for use in a qualified tertiary oil recovery project,

other than property

• (c) used by the taxpayer for another use prior to the use described in paragraph (b), or

• (d) that had, before it was acquired by the taxpayer, been used for any purpose whatever by any person with whom the taxpayer was not dealing at arm’s length. (matériel de récupération tertiaire)

(2) In this Part, joint exploration corporation, principal-business corporation, production from a Canadian resource property, reserve amount and shareholder corporation have the meanings assigned by subsection 66(15) of the Act.

(3) For the purposes of sections 1201 to 1209 and 1212, where at the end of a fiscal period of a partnership, a taxpayer was a member thereof

• (a) the resource profits of the partnership for the fiscal period, to the extent of the taxpayer’s share thereof, shall be included in computing his resource profits for his taxation year in which the fiscal period ended;

• (b) any property acquired or disposed of by the partnership shall be deemed to have been acquired or disposed of by the taxpayer to the extent of his share of thereof;

• (c) any property deemed by paragraph (b) to have been acquired or disposed of by the taxpayer shall be deemed to have been acquired or disposed of by him on the day the property was acquired or disposed of by the partnership;

• (d) any amount that has become receivable by the partnership and in respect of which the consideration given by the partnership therefor was property (other than property referred to in paragraph 59(2)(a), (c) or (d) of the Act or a share or interest therein or right thereto) or services, all or part of the original cost of which to the partnership may reasonably be regarded primarily as an exploration or development expense of the taxpayer, shall be deemed to be an amount receivable by the taxpayer to the extent of his share thereof, and the consideration so given by the partnership shall, to the extent of the taxpayer’s share thereof, be deemed to have been given by the taxpayer for the amount deemed to be receivable by him;

• (e) any expenditure incurred or deemed to have been incurred by the partnership shall be deemed to have been incurred by the taxpayer to the extent of the taxpayer’s share thereof; and

• (f) any amount or expenditure deemed by paragraph (d) or (e) to have been receivable or incurred, as the case may be, by the taxpayer shall be deemed to have become receivable or been incurred, as the case may be, by the taxpayer on the day the amount became receivable or the expenditure was incurred or deemed to have been incurred by the partnership.

(3.1) For the purposes of sections 1201 to 1203, 1205, 1217 and 1218, where a taxpayer was a member of a partnership at the end of a fiscal period of the partnership, the taxpayer shall be deemed to receive or to become entitled to receive any amount of assistance or benefit, whether such amount is by way of a grant, subsidy, rebate, forgivable loan, deduction from royalty or tax, rebate of royalty or tax, investment allowance or any other form of assistance or benefit, that the partnership at any time receives or becomes entitled to receive in respect of expenses incurred in that fiscal period of the partnership, to the extent of,

• (a) where the partnership in the fiscal period receives or becomes entitled to receive the amount, the taxpayer’s share thereof, or

• (b) where the partnership after the fiscal period becomes entitled to receive the amount, what would have been the taxpayer’s share thereof if the partnership had in the fiscal period received or become entitled to receive the amount,

and the time at which the taxpayer is deemed to receive or become entitled to receive such share of the amount shall be the time that the partnership receives or becomes entitled to receive the amount.

(4) Where an expense incurred after November 7, 1969 that was a Canadian exploration and development expense or that would have been such an expense if it had been incurred after 1971 (other than an amount included therein that is in respect of financing or the cost of any Canadian resource property acquired by a joint exploration corporation or any property acquired by a joint exploration corporation that would have been a Canadian resource property if it had been acquired after 1971), a Canadian exploration expense (other than an amount included therein that is in respect of financing) or a Canadian development expense (other than an amount included therein that is in respect of financing or an amount referred to in subparagraph 66.2(5)(a)(iii) of the Act) has been renounced in favour of a taxpayer and was deemed to be an expense of the taxpayer for the purposes of subsection 66(10), (10.1) or (10.2) of the Act or subsection 29(7) of the Income Tax Application Rules, the expense shall

• (a) for the purposes of sections 1203 and 1205, be deemed to have been such an expense incurred by the taxpayer at the time the expense was incurred by the joint exploration corporation; and

• (b) for the purposes of sections 1204 and 1210 and paragraphs 1217(2)(e) and 1218(2)(e), be deemed to have been such an expense incurred by the taxpayer at the time it was deemed to have been incurred by the taxpayer for the purposes of subsection 66(10), (10.1) or (10.2) of the Act or subsection 29(7) of the Income Tax Application Rules, as the case may be.

(4.1) An expense that is a Canadian exploration and development overhead expense of the joint exploration corporation referred to in subsection (4), or would be such an expense if the references to “connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “connected with the shareholder corporation in favour of whom the expense was renounced for the purposes of subsection 66(10.1) or (10.2) of the Act”, that may reasonably be considered to be included in a Canadian exploration expense or Canadian development expense that is deemed by subsection (4) to be a Canadian exploration expense or Canadian development expense of the shareholder corporation, shall be deemed to be a Canadian exploration and development overhead expense of the shareholder corporation incurred by it at the time the expense was deemed by subsection (4) to have been incurred by it and shall be deemed at and after that time not to be a Canadian exploration and development overhead expense incurred by the joint exploration corporation.

(4.2) For the purposes of paragraphs 66(12.6)(b), (12.601)(d) and (12.62)(b) of the Act, a prescribed Canadian exploration and development overhead expense of a corporation is

• (a) a Canadian exploration and development overhead expense of the corporation;

• (b) an expense that would be a Canadian exploration and development overhead expense of the corporation if the references to “connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “connected with the person to whom the expense is renounced under subsection 66(12.6), (12.601) or (12.62) of the Act”; and

• (c) an expense that would be a Canadian exploration and development overhead expense of the corporation if the references to “person who was connected with the taxpayer” in paragraph (d) of the definition Canadian exploration and development overhead expense in subsection (1) were read as “person to whom the expense is renounced under subsection 66(12.6), (12.601) or (12.62) of the Act”.

(4.3) For the purposes of subsections (4.2) and (5), a partnership shall be deemed to be a person and its taxation year shall be deemed to be its fiscal period.

(5) For the purposes of subsection (6) and the definition Canadian exploration and development overhead expense in subsection (1),

• (a) a person and a particular corporation are connected with each other if

  • (i) the person and the particular corporation are not dealing at arm’s length,

  • (ii) the person has an equity percentage in the particular corporation that is not less than 10 per cent, or

  • (iii) the person is a corporation in which another person has an equity percentage that is not less than 10 per cent and the other person has an equity percentage in the particular corporation that is not less than 10 per cent;

• (a.1) a person and another person that is not a corporation are connected with each other if they are not dealing at arm’s length; and

• (b) “costs incurred by a person” shall not include

  • (i) an outlay or expense described in any of paragraphs (a) to (c) of that definition made or incurred by the person if the references in those paragraphs to “taxpayer” were read as references to “person”,

  • (ii) an outlay or expense made or incurred by the person to the extent that it is not reasonably attributable to the use of a property by, the performance of a service for, or any materials, parts, or supplies acquired by, the taxpayer referred to in that definition, and

  • (iii) an amount in respect of the capital cost to the person of a property, other than, where the property is a depreciable property of the person, that proportion of the capital allowance of the person for his taxation year in respect of the property that may reasonably be considered attributable to the use of the property by, or in the performance of a service for, the taxpayer referred to in that definition.

(6) For the purpose of subparagraph (5)(b)(iii), the capital allowance of a person (in this subsection referred to as the “owner”) for his taxation year in respect of a property owned by him means that proportion of an amount not exceeding 20 per cent of the amount that is

• (a) in the case of a property owned by the owner on December 31, 1980, the lesser of

  • (i) the capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, and

  • (ii) the fair market value of the property on December 31, 1980,

• (b) in the case of a property acquired by the owner after December 31, 1980 that was previously owned by a person connected with the owner, the lesser of

  • (i) the capital cost of the property, computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business, to the person, who was connected with the owner, who was the first person to acquire the property from a person with whom the owner was not connected, and

  • (ii) the fair market value of the property at the time it was acquired by the owner, and

• (c) in any other case, the capital cost of the property to the owner computed as if no amount had been included therein that is a cost of borrowing capital, including any cost incurred prior to the commencement of carrying on a business,

that the number of days in the taxation year during which the property was owned by the owner is of 365.

(7) For the purposes of paragraph (5)(a), equity percentage has the meaning assigned by paragraph 95(4)(b) of the Act.

(8) For the purposes of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision means:

• (a) the Experimental Project Petroleum Royalty Regulation of Alberta (Alta. Reg. 36/79);

• (b) The Experimental Oil Sands Royalty Regulations of Alberta (Alta. Reg. 287/77);

• (c) section 4.2 of the Petroleum Royalty Regulations of Alberta (Alta. Reg. 93/74);

• (d) section 58A of the Petroleum and Natural Gas Regulations, 1969 of Saskatchewan (Saskatchewan Regulation 8/69);

• (e) section 204 of The Freehold Oil And Gas Production Tax Regulations, 1983 of Saskatchewan (Saskatchewan Regulation 11/83);

• (f) item 9 of section 2 of the Petroleum and Natural Gas Royalty Regulations of British Columbia (B.C. Reg. 549/78);

• (g) the Freehold Mineral Taxation Act of Alberta;

• (h) the Freehold Mineral Rights Tax Act of Alberta;

• (i) Order in Council 427/84 pursuant to section 9(a) of the Mines and Minerals Act of Alberta;

• (j) Order in Council 966/84 pursuant to section 9 of the Mines and Minerals Act of Alberta; or

• (k) Order in Council 870/84 pursuant to section 9 of the Mines and Minerals Act of Alberta.

(8.1) For the purpose of paragraph (a) of the definition qualified tertiary oil recovery project in subsection (1), a specified royalty provision is deemed to apply as of a particular time if, at the particular time, unconditional approval for the specified royalty provision to apply at a time after the particular time is given by

• (a) Her Majesty in right of Canada or of a province;

• (b) an agent of Her Majesty in right of Canada or of a province; or

• (c) a corporation, a commission or an association that is controlled by Her Majesty in right of Canada or of a province or by an agent of Her Majesty in right of Canada or of a province.

(9) [Repealed, SOR/2007-19, s. 4]