Excise Tax Act — E-15 162
Definitions 162 (1) The definitions in this subsection apply in this section. estimated reserves of minerals means the estimated quantities of minerals that geological and engineering data demonstrate, with reasonable certainty, to be recoverable under existing economic and operating conditions. ( réserves estimées ) farm-out agreement means an agreement referred to in subsection (4). ( accord d’amodiation ) natural resource right means (a) a right to explore for or exploit a mineral deposit; (b) a right of entry or user relating to a right referred to in paragraph (a); or (c) a right to an amount computed by reference to the production (including profit) from, or to the value of production from, a mineral deposit. ( droit relatif à des ressources ) specified mining or well-site equipment , in relation to the exploration or development of unproven property under a farm-out agreement, means (a) equipment, installations and structures for use at a mine site in the production of minerals from the mine and not in the milling, smelting, refining or other processing of the minerals after production; and (b) equipment, installations and structures for use at a well site in the production of minerals from the well, including a heater, dehydrator or other well-site facility for the initial treatment of substances produced from the well to prepare such production for transportation but excluding (i) any equipment, installation, structure or facility that serves or is intended to serve a well that has not been drilled in the course of the exploration or development under that agreement, and (ii) any equipment, installation, structure or facility for use in the refining of oil or the processing of natural gas including the separation therefrom of liquid hydrocarbons, sulphur or other joint products or by-products. ( matériel déterminé ) unproven property means real property for which estimated reserves of minerals have not been attributed. ( bien non prouvé ) Natural resources (2) For the purposes of this Part, the supply of (a) a right to explore for or exploit a mineral deposit, a peat bog or deposit of peat or a forestry, water or fishery resource, (b) a right of entry or user relating to a right referred to in paragraph (a), (c) a right to an amount computed by reference to the production (including profit) from, or to the value of production from, any such deposit, bog or resource, or (d) a right to enter or use land to generate, or evaluate the feasibility of generating, electricity from the sun or wind, shall be deemed not to be a supply and any consideration paid or due, or any fee or royalty charged or reserved, in respect of the right shall be deemed not to be consideration for the right. Exception (3) Subsection (2) does not apply to a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, a right of entry or user relating thereto or a right referred to in paragraph (2)(d), if the supply is made to (a) a consumer; or (b) a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals, peat or electricity to consumers. Exploration and development of mineral deposits (4) For the purposes of this Part, if, under an agreement in writing between a person (in this subsection referred to as the “farmor”) and another person (in this subsection referred to as the “farmee”), the farmor transfers to the farmee particular natural resource rights, or portions of them, relating to unproven property in consideration or part consideration for the farmee undertaking the exploration of the property for mineral deposits, providing information (or the right to it) gathered from the exploration and, subject to any conditions that may be provided in the agreement, developing the property for the production of minerals, (a) the value, as consideration, of any property or service given by the farmor to the