Petroleum and Gas Revenue Tax Regulations — 5.2
5.2 (1) For the purposes of sections 79, 82, 82.1 and 83 of the Act, as those sections read before December 12, 1988, this section and sections 5.3 to 5.5, a prescribed project in a taxation year is 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 petroleum from a reservoir that is incremental to the petroleum 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 that production relates; (b) the project is located on a reserve within the meaning of the Indian Act ; or (c) the project is located in the Province of Ontario. (2) For the purposes of subsection 5(8) of the Act and this section, a prescribed reservoir in a taxation year is a natural reservoir in which there is located 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 petroleum from the reservoir that is incremental to the petroleum 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 reservoir or in respect of the ownership of property to which such production relates; (b) the reservoir is located on a reserve within the meaning of the Indian Act ; or (c) the reservoir is located in the Province of Ontario. (3) For the purposes of subsection 5(8) and section 6 of the Act, where, in a taxation year, one or more particular projects is located in one or more particular reservoirs and each particular project would, but for this subsection, be a prescribed project in the year with respect to each particular reservoir in which it is located and each particular reservoir would, but for this subsection, be a prescribed reservoir in the year with respect to each particular project located in it, the following rules apply: (a) subject to paragraph (b), where a particular project is located in two or more particular reservoirs, the particular reservoirs shall be deemed to be a single prescribed reservoir in the year and the particular project shall be deemed to be a prescribed project in the year located in that prescribed reservoir; and (b) where (i) a particular project is located in one or more particular reservoirs, and (ii) one or more other particular projects is each located in one or more of the particular reservoirs referred to in subparagraph (i), the particular reservoirs referred to in subparagraph (i) shall be deemed to be a single prescribed reservoir and the particular projects described in subparagraphs (i) and (ii) shall be deemed to be a single prescribed project in the year located in that prescribed reservoir. SOR/87-665, s. 6; SOR/89-553, ss. 5, 11