Document ID: chunk:federal_register_of_legislation:F2024L00964:reg:9:p2
Version: federal_register_of_legislation:F2024L00964
Segment Type: reg
Provision Reference: reg 9 (pt 2/3)
Character Range: 24360–27053

a phase point.
Example 2: At the sales gas production facility of a relevant GTL operation, natural gas from another source is added to the project natural gas. The point at which the natural gas is added is a phase point.
Example 3: Some of the sales gas produced in a relevant GTL operation is transported in a pipeline that is part of the operation, and therefore enters the downstream stage; it is then sold before liquefaction. The ratio of project product to total product changes when the sales gas is sold before liquefaction, as the total product flowing through the operation is reduced. The point of sale is therefore a phase point.
Example 4: A relevant GTL operation involves the recovery of natural gas that is processed into sales gas and then liquefied product. Additionally, under a tolling arrangement, natural gas (the shipper's natural gas) from another operation enters the relevant GTL operation where it is processed into sales gas and then liquefied product (the shipper's liquefied product). The shipper's liquefied product then leaves the relevant GTL operation. There is a phase point when the shipper's natural gas enters the relevant GTL operation, as the ratio of project product to total product flowing through the relevant GTL operation decreases at that time. There is another phase point when the shipper's liquefied product leaves the relevant GTL operation, as the ratio of project product to total product flowing through the relevant GTL operation increases at that time.
 (2) However, paragraphs (1)(b) and (c) do not apply to a relevant GTL operation for which an election has been made under section 54.
 (3) The relevant operation is divided into phases by the phase points.
Note: In general terms, a phase is a stage of an operation during which the ratio of project product to total product flowing through the operation remains the same (and is expected to remain the same).
 (4) The participants in the relevant operation must:
 (a) in the financial year before the production year, notify the Commissioner of any phase points of the operation that are apparent to any of the participants at that time; and
 (b) notify the Commissioner as soon as practicable of any phase point that becomes apparent at a later time.
 (5) However, subsection (4) does not apply to a relevant GTL operation for which an election has been made under section 54.
 (6) The participants in the relevant operation must satisfy the Commissioner that they can provide accurate records of the quantities of petroleum product before and after each phase point (for example, by including metering facilities at the phase point or using other reliable estimation techniques).