Abandonment and Restoration

Description

"abandonment and restoration" means activities, in respect of wells, production infrastructure and geological, geophysical and geochemical operations that were allowed capital costs of the project, relating to (a) the abandonment of a well, (b) the destruction, scrapping, removal, disassembling and decommissioning of production infrastructure, (c) the renewing, repairing, cleaning-up, remediation or other management of soil or water to the extent that the damage is consistent in scope and magnitude with any damage to the environment that would reasonably be expected where activities are conducted using good production practices so that the functions and qualities of the soil or water are comparable to those of its original, unaltered state, and (d) the monitoring of the effectiveness of the activities referred to in paragraphs (a) to (c); 

Source

PLRR  INTERPRETATION 1(1)

Abandonment and Restoration Royalty Trust

Description

"Abandonment and restoration royalty trust" means a trust certified under section 7;

Source

PLRR  INTERPRETATION 1(1)

Allowed Capital Costs

Description

"Allowed capital costs" of an interest holder of a production licence in relation to a project in respect of any month means, if there is only one interest holder, the allowed capital costs of the project or, if there is more than one interest holder, the allowed capital costs of the project attributed to that interest holder, that are (a) described in and calculated in accordance with Schedule A, and (b) incurred in that month.

Source

PLRR INTERPRETATION 1(1)

Allowed Operating Costs

Description

"Allowed operating costs" of an interest holder of a production licence in relation to a project in respect of any month means, if there is only one interest holder, the allowed operating costs of the project or, if there is more than one interest holder, the allowed operating costs of the project attributed to that interest holder, that are (a) described in and calculated in accordance with Schedule A, and (b) incurred in that month.

Source

PLRR  INTERPRETATION 1(1)

Attributed

Description

"Attributed" means allocated in accordance with an applicable allocation agreement or reasonably allocated if no allocation agreement exists.

Source

PLRR  INTERPRETATION 1(1)

Average Capital

Description

"average capital", in respect of a month, means the sum of the average net capital, the land value and the working capital allowance for the month.

Source

PLRR  Sch B Interpretation

Average Net Capital

Description

"average net capital", in respect of a month, means the sum of the opening net capital and closing net capital for the month divided by two.

Source

PLRR  Sch B Interpretation

Capital Cost Adjustment​

Description

"capital cost adjustment" of an interest holder of a production licence in relation to a project means (a) in respect of a month preceding the month in which the project commencement date falls, an amount equal to five per cent of the allowed capital costs of the interest holder in relation to the project in respect of that month, and (b) in respect of the month in which the project commencement date falls and any month after that month, an amount equal to one per cent of the interest holder's allowed capital costs in relation to the project in respect of that month, other than any amounts considered under subsection (2) to be an interest holder's allowed capital cost in relation to the project in respect of the following month.

Source 

PLRR  INTERPRETATION 1(1)

Closing Net Capital

Description

"Closing net capital", in respect of a month, means the book value, before depreciation, at the end of the month, of all depreciable assets forming part of or permanently used at a facility at the beginning of the month plus 101 per cent of the book value, before depreciation, of all depreciable assets acquired during the month and forming part of or permanently used at the facility at the end of the month, less all depreciation allowances in respect of those assets for that month and the preceding months.

Source

PLRR  Sch B Interpretation

Contribution Deferral Balance

Description

"Contribution deferral balance" of an interest holder of a production licence in relation to a project in respect of any month means the amount, if any, by which the aggregate, for that month and all preceding months, of all contributions used to defer an amount of royalty under section 5 exceeds the withdrawal of those contributions under section 6.

Source

PLRR  INTERPRETATION 1(1)

Cumulative Capital Cost Adjustments

Description

"Cumulative capital cost adjustments" of an interest holder of a production licence in relation to a project in respect of any month means the aggregate of the capital cost adjustments of the interest holder for that month and the preceding months.

Source

PLRR  INTERPRETATION 1(1)

Cumulative Costs

Description

"cumulative costs" of an interest holder of a production licence in relation to a project in respect of any month means, subject to any adjustments arising from section 8, the aggregate of (a) the interest holder's allowed capital costs in relation to the project for that month and the preceding months, (b) the interest holder's allowed operating costs in relation to the project for that month and the preceding months, (c) the royalty payable by the interest holder in that month and the preceding months in respect of petroleum produced from the project lands, (d) the cumulative capital cost adjustments in respect of the costs referred to in paragraph (a), (e) the cumulative operating cost adjustments in respect of the costs referred to in paragraph (b), and (f) the interest holder's cumulative return allowance in relation to the project in respect of that month. 

Source

PLRR  INTERPRETATION 1(1)

Cumulative Gross Revenues

Description

"Cumulative gross revenues" of an interest holder of a production licence in relation to a project in respect of any month means the aggregate of the gross revenues of the interest holder in respect of that month and the preceding months.

Source

PLRR  INTERPRETATION 1(1)

Cumulative Gross Revenues

Description

"Cumulative gross revenues" of an interest holder of a production licence in relation to a project in respect of any month means the aggregate of the gross revenues of the interest holder in respect of that month and the preceding months; 

Source  

PLRR  INTERPRETATION 1(1)

Cumulative Operating Cost Adjustments

Description

"Cumulative operating cost adjustments" of an interest holder of a production licence in relation to a project in respect of any month means the aggregate of the operating cost adjustments of the interest holder for that month and the preceding months.

Source  

PLRR  INTERPRETATION 1(1)

Cumulative Return Allowance

Description

"Cumulative return allowance" of an interest holder of a production licence in relation to a project in respect of any month means the aggregate of the return allowances for the months preceding that month; 

Source  

PLRR  INTERPRETATION 1(1)

Delineation Well

Description

"Delineation well" means a well that is so located in relation to another well penetrating an accumulation of petroleum that there is a reasonable expectation that another portion of the accumulation will be penetrated by the first-mentioned well and that the drilling of the first-mentioned well is necessary in order to determine the commercial value of the accumulation.

Source  

PLRR  INTERPRETATION 1(1)

Depreciable Assets

Description

"depreciable assets" means property in respect of which capital cost allowances may be deducted under the Income Tax Act (Canada).

Source  

PLRR  Sch B Interpretation

Development Plan

Description

"Development plan" means a development plan or an amended development plan approved under the  Oil and Gas Operations Act. 

Source  

PLRR  INTERPRETATION 1(1)

Development Well

Description

"Development well" means a well that is so located in relation to another well penetrating an accumulation of petroleum that it is considered to be a well or part of a well drilled for the purpose of production or observation or for the injection or disposal of fluid into or from the accumulation. 

Source  

PLRR  INTERPRETATION 1(1)

Discovery Well

Description

"Discovery well" means the well drilled on a geological feature that indicates that a significant discovery has been made.

Source  

PLRR  INTERPRETATION 1(1)

Exploratory Well

Description

"Exploratory well" means a well drilled on a geological feature on which a significant discovery has not been made.

Source  

PLRR  INTERPRETATION 1(1)

Facility

Description

"Facility" means a gas plant or a transportation facility.

Source  

PLRR  INTERPRETATION 1(1)

Facility Operating Costs

Description

"Facility operating costs" in respect of a month means the facility operating costs that are described in and calculated under item 9 and that are incurred in that month.

Source  

PLRR  Sch B Interpretation

Facility Operating Costs

Description

"Facility operating costs" in respect of a month means the facility operating costs that are described in and calculated under item 9 and that are incurred in that month.

Source  

PLRR  Sch B Interpretation

Gas

Description

Gas means natural gas and includes all substances, other than oil, that are produced in association with natural gas.

Source  

PRA

Gas Plant

Description

"gas plant" means a facility for processing transportable petroleum by any process, including absorption, adsorption and refrigeration, designed to recover residue gas or gas plant products.

Source  

PLRR  INTERPRETATION !(1)

Gross Revenues

Description

"Gross revenues" of an interest holder of a production licence from petroleum produced from project lands means the gross revenues of the interest holder as determined under Schedule B.

Source  

PLRR  INTERPRETATION 1(1)

Holder or Interest Holder

Description

"Holder" or "interest holder" means, in respect of an interest or a share in an interest, the person indicated as the holder of the interest or the share in the register maintained under Part 8.

Source  

PRA

Inflation Index

Description

"Inflation index" means the monthly Consumer Price Index as published by Statistics Canada under the authority of the Statistics Act (Canada).

Source  

PLRR  INTERPRETATION 1(1)

Interest

Description

"interest" means any exploration licence, production licence or significant discovery licence, and any Oil and Gas Lease referred to in subsection 101(2).

Source  

PRA

Investment Royalty Credit

Description

"investment royalty credit" of an interest holder means 25 per cent of that portion of the qualified petroleum exploration expenses claimed by the interest holder as Canadian exploration expenses under the Income Tax Act (Canada), as amended from time to time, and certified by the Minister pursuant to subsection 10(3).

Source  

PLRR  INTERPRETATION 1(1)

Investment Royalty Credit Balance

Description

"Investment royalty credit balance" of an interest holder in respect of any month means the amount, if any, by which the aggregate of that interest holder's investment royalty credits exceeds the aggregate of all amounts deducted under subsection 2(3) in respect of the months preceding that month. 

Source  

PLRR  INTERPRETATION 1(1)

Land Value

Description

"land value" means the acquisition cost of land on which a facility is permanently located. 

Source 

PLRR  Sch B Interpretation 

Long-Term Government Bond Rate

Description

"Long-term government bond rate" in respect of any month means the average percentage yield, during the calendar year immediately preceding the calendar year in which that month falls, of securities issued by the Government of Canada maturing in more than ten years, as published by the Bank of Canada.

Source  

PLRR  INTERPRETATION 1(1

Month of Payout

Description

"Month of payout" of an interest holder of a production licence in relation to a project means the first month in respect of which the interest holder's cumulative gross revenues in relation to the project are equal to or greater than the interest holder's cumulative costs in relation to the project. 

Source  

PLRR  INTERPRETATION 1(1)

Net Revenues

Description

"net revenues" of an interest holder of a production licence in relation to a project in respect of a month means the amount by which the interest holder’s gross revenues in that month exceed the aggregate of the following costs and cost adjustments of the interest holder in relation to the project in respect of that month: (a) the allowed capital costs, (b) the allowed operating costs, (c) the capital cost adjustment, (d) the operating cost adjustment.

Source  

PLRR  INTERPRETATION 1(1)

Non-Qualifying Expense

Description

"non-qualifying expense" means an expense

(a) that is a Canadian exploration and development overhead expense within the meaning of section 1206 of the Income Tax Regulations (Canada), or

(b) in respect of which a reimbursement, compensation or other payment is made, including any amount of assistance or benefit from a government, municipality or other public authority, whether as a grant, subsidy, forgivable loan, deduction from royalty or tax, investment allowance

or other form of assistance or benefit.

Source  

PLRR  INTERPRETATION 1(1)

Oil

Description

"oil" means (a) crude oil, regardless of gravity, produced at a well head in liquid form, and (b) any other hydrocarbons, except coal and gas, and, without limiting the generality of the foregoing, hydrocarbons that may be extracted or recovered from deposits of oil sand, bitumen, bituminous sand, oil shale or from any other types of deposits on the surface or subsurface or the seabed or its subsoil of any petroleum lands.

Source

PRA  

Opening Net Capital

Description

"Opening net capital", in respect of a month, means the book value, before depreciation, at the beginning of the month, of all depreciable assets forming part of or permanently used at a facility at the beginning of the month, less all depreciation allowances in respect of those assets for the preceding months.

Source  

PLRR  Sch B Interpretation

Operating Cost Adjustment

Description

"Operating cost adjustment" of an interest holder of a production licence in relation to a project in respect of any month means an amount equal to ten per cent of the allowed operating costs of the interest holder in relation to the project in respect of that month.

Source  

PLRR  INTERPRETATION 1(1)

Petroleum

Description

petroleum means oil or gas.

Source  

PRA

Point of Production

Description

"Point of production" means the point at which transportable petroleum leaves production infrastructure.

Source  

PLRR  INTERPRETATION 1(1)

Production Infrastructure

Description

"Production infrastructure" means any equipment and buildings used for the production or treatment of petroleum from a reservoir and includes (a) equipment for natural pressure reduction, mechanical separation, heating, cooling, dehydration and compression, and (b) batteries, gathering lines, storage areas, tanks, landing areas, heliports and personnel accommodations.

Source  

PLRR  INTERPRETATION 1(1)

Production Month

Description

"Production month" means a calendar month in which petroleum is produced from project lands on one or more days in that month. 

Source  

PLRR  INTERPRETATION 1(1)

Project

Description

"Project" means a project described in a development plan. 

Source  

PLRR  INTERPRETATION 1(1)

Project Commencement Date

Description

"Project commencement date" means the date on which a project development plan is approved.

Source  

PLRR  INTERPRETATION 1(1

Project Lands

Description

"Project lands" means the petroleum lands, described in the production licence or licences issued for the purpose of producing petroleum from the lands in accordance with a project.

Source  

PLRR  INTERPRETATION 1(1)

Qualified Frontier Exploration Expenses

Description

"Qualified petroleum exploration expenses" means the aggregate of all expenses that are incurred in the drilling or completing of an exploratory well, an exploratory probe or a delineation well that is located on petroleum lands in respect of which the Act applies, in preparing the site in respect of such a well or in the building of a temporary access road to the site, and that (a) are incurred on or before August 31, 2008, (b) do not exceed $5 million in respect of any one well, (c) are not non-qualifying expenses, and (d) are reasonable in the circumstances.

Source  

PLRR  INTERPRETATION 1(1)

Return Allowance

Description

"Return allowance" of an interest holder of a production licence in relation to a project in respect of any month means the return allowance of the interest holder for that month calculated under section 9.

Source  

PLRR  INTERPRETATION 1(1)

Return on Average Capital

Description

"Return on average capital", in respect of a month, means an amount equal to the average capital for the month multiplied by that percentage equal to five per cent plus the long-term government bond rate, and divided by 12. 

Source  

PLRR  Sch B Interpretation

Transportable Petroleum

Description

"transportable petroleum" means petroleum that is sufficiently free from impurities and is otherwise in such a condition that it will be accepted for transportation by a transportation facility.

Source  

PLRR  INTERPRETATION 1(1)

Transportation Facility

Description

"Transportation facility" means a pipeline, tanker or other transportation equipment used to deliver petroleum from project lands, or in the case described in paragraph 1(1)(m) to Schedule A, from production infrastructure, to the point at which the petroleum is delivered to the first purchaser of the petroleum.

Source  

PLRR  INTERPRETATION 1(1

Working Capital Allowance

Description

"Working capital allowance", in respect of a month, means an amount equal to 110 per cent of the facility operating costs for that month multiplied by two. 

Source

PLRR  Sch B Interpretation