Fort Nelson Indian Reserve Minerals Revenue Sharing Act — F-31.4 1
Natural Gas underlying the Reserve, (ii) the amounts (hereinafter called “gross revenue”) received by the Province on any disposition of any interest by the Province with respect to Petroleum and Natural Gas underlying lands included in the Reserve, in accordance with the Petroleum and Natural Gas Act , S.B.C., 1965, c. 33 notwithstanding that surface rights in the said lands may be vested in the Province, any other person, or in Canada other than for the use and benefit of the Band (such interest including permits, licences, drilling reservations and leases or otherwise and all amounts derived by the Province as rentals in respect of any of the aforesaid interests and including fees charged pursuant to the Petroleum and Natural Gas Act for the renewal of such interests and the recording of same, but not including any revenue derived from disposition of the surface of the Reserve). (10) The Province shall pay to Canada for the use and benefit of the Band the moneys referred to in subparagraph (9) hereof together with interest forthwith upon the execution of this Agreement provided, however, that that portion of the said moneys for those three Production Months up to and including the Production Month in which this Agreement is executed by Canada and the Province shall be paid by the Province to Canada no later than 90 days after the date of execution of this Agreement. (11) The Province shall pay to Canada, for the use and benefit of the Band, in the manner provided in paragraph 7 hereof, one-half of the net profit derived from the disposition, in any manner whatsoever, after eight A.M. (P.S.T.) on the date of execution of this Agreement, of Natural Gas, the production of which is attributable to lands which, at the time of such production are included in the Reserve, notwithstanding that surface rights in the said lands may be vested in the Province, any other person, or in Canada other than for the use and benefit of the Band, and shall retain one-half of such net profits in its own right. (12) The gross revenue as defined in subparagraph (9)(b)(ii) hereof, received by the Province after eight A.M. (P.S.T.) on the date of execution of the Agreement, shall be calculated by the Province and one-half thereof shall be paid by the Province to Canada, for the use and benefit of the Band, within ninety (90) days after the same shall have been received. (13) Any dispute between the parties as to the amount of any moneys to be remitted to Canada for the use and benefit of the Band pursuant to subparagraph (11) or (12) hereof may, at the instance of either party, be referred to arbitration pursuant to paragraph 12 hereof. 7 NATURAL GAS NET PROFIT FORMULA (1) For the purposes of this Agreement, the amount of Net Profit derived by the Province, including agencies of the Province, from the disposition of Natural Gas underlying the Reserve shall be determined separately in respect of each Production Month, in accordance with the steps set forth in this paragraph 7, but for the purposes of making the calculations under each of the steps it is agreed that whenever Subject Gas is intermingled with Other Gas (that is, Natural Gas which is not Subject Gas) the Subject Gas shall for all such purposes be deemed to be apportioned among each of the Domestic Utilities and the Foreign Utility in the same proportions as deemed for the purposes of calculating the volume of British Columbia-produced gas sold and delivered under Licence GL-41, (as amended from time to time) issued by the National Energy Board (herein called the “NEB”) and for the settling of accounts between Westcoast and the Petroleum Corporation pursuant to either the Basic Agreement as amended from time to time or the directions of the NEB. Step One Determine the Domestic Price (“DP”) for the Production Month which is the subject of the calculation (the Production Month which is the subject of the calculation being referred to herein as the “Subject Month”) by use of Alternative One