Income Tax Regulations — 1206
(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 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 of property has the meaning assigned by paragraph 13(21)(d) of the Act; ( produit de la disposition ) 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any person with whom the taxpayer was not dealing at arm’s length; ( biens servant au traitement ) production royalty [Repealed, SOR/2007-19, s. 4] qualified resource means, in relation to a particular processing property of a taxpayer, a resource that, within a reasonable time after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 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 means any mineral resource in Canada; ( ressource ) 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