Canada Oil and Gas Land Regulations — 123
123 In determining the Canadian participation rate of an applicant for a special renewal permit for the purposes of sections 121 and 122, the following Rules shall apply: Rule 1 (1) If the applicant is (a) an individual who is a Canadian citizen ordinarily resident in Canada or a landed immigrant within the meaning of the Immigration and Refugee Protection Act who is ordinarily resident in Canada other than a landed immigrant who has been ordinarily resident in Canada for more than one year after the time at which he first became eligible to apply for Canadian citizenship, his Canadian participation rate is 100 per cent; (b) an individual other than an individual referred to in paragraph (a), his Canadian participation rate is 0 per cent; (c) a corporation that has been incorporated in Canada and is not a non-eligible person within the meaning of the Foreign Investment Review Act , its Canadian participation rate is 100 per cent; (d) an enterprise formed by a group of individuals, corporations or individuals and corporations in which each beneficial owner of an interest is an individual referred to in paragraph (a) or a corporation referred to in paragraph (c), its Canadian participation rate is 100 per cent; or (e) a corporation that is a non-eligible person within the meaning of the Foreign Investment Review Act , or is an enterprise formed by a group of individuals, corporations, or individuals and corporations, other than an enterprise referred to in paragraph (d), its Canadian participation rate shall be determined by the application of Rule 2. (2) Where the applicant would be the beneficial owner of the permit, if granted, this Rule shall apply to that applicant, but where the applicant would not be the beneficial owner of the permit, if granted, this Rule shall be applied to the person or enterprise that would be the beneficial owner of the permit as if that person or enterprise were the applicant and where in this manner a Canadian participation rate is determined for a beneficial owner, that Canadian participation rate shall be deemed to be the Canadian participation rate of the applicant for the purposes of section 121. Rule 2 Where the application is made by a corporation or enterprise referred to in paragraph (e) of subrule 1(1), the Canadian participation rate in the corporation or enterprise is a percentage equal to the sum of the products obtained by multiplying, for each beneficial owner of voting shares of the corporation or of an interest in the enterprise, the Canadian participation rate for that owner under Rule 3 or 4 by the percentage of the total number of voting shares of, or total interest in, the corporation or enterprise, beneficially owned by that owner. Rule 3 For the purposes of Rule 2, any beneficial owner of voting shares in the applicant corporation, or of an interest in the applicant enterprise, that falls within any of the following classes shall be regarded as having a Canadian participation rate of 100 per cent: (a) an individual referred to in paragraph (a) of subrule 1(1), (b) a corporation referred to in paragraph (c) of subrule 1(1), (c) an enterprise in which the majority interest is beneficially owned by individuals referred to in paragraph (a) or corporations referred to in paragraph (b) of this Rule or any combination of such individuals and corporations, and the Canadian participation rate for any beneficial owner not falling within any of the above classes is, except where Rule 4 applies, 0 per cent. Rule 4 For the purposes of Rule 2, any non-eligible person within the meaning of the Foreign Investment Review Act , or any enterprise other than one referred to in paragraph (c) of Rule 3, that is a beneficial owner of voting shares in the applicant corporation, or any beneficial owner of an interest in the applicant enterprise where that applicant enterprise includes any persons who are non-eligible persons within the meaning of the Foreign Investment Review Act , shall have its Can