145_2019 — Natural Gas Tax Credit Regulation

s. 1 — Definitions

In this regulation:

s. 1 — Act

Act means the Income Tax Act;

s. 1 — Compressor Station 2

Compressor Station 2 means the compressor station located at 55° 38' 54.76" north latitude and 122° 12' 30.70" west longitude on the natural gas pipeline known as the Westcoast Transmission System.

s. 1.1 — Prescribed amount of LNG

For the purposes of paragraph (b) of the definition of "major LNG facility" in section 172 of the Act, the prescribed amount of LNG per year is 2 million tonnes.

s. 1.2 — Reference point

For the purposes of the definition of "reference point" in section 177 of the Act, the prescribed reference point is Compressor Station 2.

s. 1.3 — Designated feedstock pipeline inlets — LNG Canada facility

In respect of the major LNG facility known as LNG Canada and identified as BCLN3165257, the following meter stations are designated as feedstock pipeline inlets:

s. 1.3(a)

the Wilde Lake Compressor Station;

s. 1.3(b)

the Willow Valley Interconnect.

s. 2 — Prescribed percentage

For the purposes of section 173 (4) of the Act, the prescribed percentage is 2.5%.

s. 2.1 — Pipeline fuel and losses adjustment

s. 2.1(1)

For the purposes of section 180 of the Act, a corporation's pipeline fuel and losses adjustment, in respect of a major LNG facility and for the month, is the amount determined by the following formula:

s. 2.1(2)

For the purposes of the description of "volume variance" in subsection (1), the amount determined for the month is the amount determined by the following formula:

s. 3 — Interest on percentage owing to government

s. 3(1)

For the purposes of section 194 (4) of the Act, interest payable to the government under Part 13 of the Act must be calculated on a daily basis and compounded monthly.

s. 3(2)

For the purposes of section 194 (4) of the Act, the rate of interest prescribed is, during each successive 3 month period beginning on April 1, July 1, October 1 and January 1 in each year, 3% above the prime lending rate of the principal banker to the Province on the 15 th day of the month immediately preceding that 3 month period.

s. 4 — Interest on tax refunds

s. 4(1)

Interest payable under section 197 (2) of the Act must be calculated on a daily basis and compounded monthly.

s. 4(2)

For the purposes of section 197 (2) of the Act, the rate of interest prescribed is, during each successive 3 month period beginning on January 1, April 1, July 1 and October 1 in each year, 2% below the prime lending rate of the principal banker to the Province on the 15 th day of the month immediately preceding that 3 month period.

s. 5 — Reference price

In determining the reference price for the purposes of section 180 of the Act, the minister charged with the administration of the Petroleum and Natural Gas Act must consider the monthly Natural Gas Exchange Inc.'s NGX AB-NIT natural gas price indices that relate to any period in the month.