Document ID: chunk:federal_register_of_legislation:F2024L00964:reg:10:p1
Version: federal_register_of_legislation:F2024L00964
Segment Type: reg
Provision Reference: reg 10 (pt 1/2)
Character Range: 27055–29736

10  Commercial tolling phases
 (1) This section applies to a relevant operation if:
 (a) the relevant operation has a phase point (the start point) mentioned in paragraph 9(1)(c) that is not for the purpose of returning project product to participants in the relevant operation; and
 (b) the relevant operation also has a phase point (the end point) mentioned in paragraph 9(1)(c) for the purpose of returning project product to participants in the relevant operation; and
 (c) one or more actions mentioned in section 8 are carried out between the start point and the end point; and
 (d) a commercial tolling fee is paid in consideration of that action or all of those actions (as the case requires); and
 (e) no election under section 54 has been made for the relevant operation.

Phases that occur between the start point and the end point
 (2) No phase points of the relevant operation, other than a phase point mentioned in paragraph 9(1)(a), are taken to occur between the start point and the end point.
Note 1: Paragraph 9(1)(a) provides for a phase point at the point where the upstream stage ends and the downstream stage begins.
Note 2: This subsection affects only the phase points of the relevant operation, and does not affect the phase points of any other operation whose facilities are used in carrying out the actions mentioned in paragraph (1)(c) of this subsection.
Note 3: This subsection affects phase points that would otherwise occur at any point in the flow of project product between the start point and the end point. If other petroleum product (which may also be project product) also flows through the operation, but does not undergo a change in custody at the start point or the end point (for example, because that petroleum product is not subject to a tolling arrangement), this subsection does not affect any phase points that occur in relation to the flow of that petroleum product.
Example: A relevant GTL operation (the shipper operation) involves the recovery of natural gas that is processed into sales gas and then liquefied product. The shipper operation does not have sufficient capacity to process all of its natural gas into liquefied product. Under a tolling arrangement, the shipper operation transports some of its natural gas (the tolled gas) to another person (the host) for processing into liquefied product (the tolled product), and a commercial tolling fee is paid to the host. There is a phase point, the start point, where custody of tolled gas changes from the shipper operation to the host. There is another phase point, the end point, where custody of the tolled product changes from the host to the shipper operation. No phase