Incremental Hydrocarbon Recovery Royalty Regulation

(no amdt) alberta regulation 168/2026 Mines and Minerals Act INCREMENTAL HYDROCARBON RECOVERY ROYALTY REGULATION Table of Contents 1 Interpretation Part 1 Innovative Technology Program 2 Interpretation — Part 1 3 Establishment of program 4 Application for program participation 5 Approval for program participation 6 Program maximum 7 Project commencement date 8 Eligible costs 9 Authority for royalty credit 10 Applications for royalty credit 11 Establishment of royalty credit 12 Connected persons 13 Royalty credit allocation 14 Records 15 Artificial transactions and non‑compliance Part 2 Enhanced Hydrocarbon Recovery 16 Interpretation — Part 2 17 Application of Part 18 Enhanced hydrocarbon recovery scheme 19 Application for approval 20 Approval 21 Percentage rate for calculation of royalty — incremental hydrocarbon recovery 22 Calculation of royalty — primary hydrocarbon recovery 23 Transition of pre‑2017 wells 24 Amendment of approval 25 Duty to provide information and file reports 26 Suspension of approval 27 Termination of approval 28 Restriction on eligibility 29 Expiry Interpretation 1 A reference in this Regulation to hydrocarbons obtained from a well, pool, reservoir or deposit or from tailings is also a reference to hydrocarbons produced or recovered from a well, pool, reservoir or deposit or from tailings. Part 1 Innovative Technology Program Interpretation — Part 1 2 (1) In this Part, (a) “crude bitumen” has the same meaning as in the Oil Sands Royalty Regulation, 2009 (AR 223/2008); (b) “eligible costs” means the costs of a project approved for participation in the Innovative Technology Program for which a royalty credit may be established, as determined in accordance with sections 5 and 8; (c) “innovative technology” means (i) technology that, in the Minister’s opinion, (A) is novel and likely to materially increase the total amount of crude oil, natural gas, crude bitumen or oil sands product obtained from a pool, reservoir or deposit or from tailings beyond what would otherwise be recovered without that technology, and (B) has reached the pre‑commercial stage as of the date an application is made under section 4, or (ii) technology that the Minister determines under subsection (2) to be innovative technology; (d) “Innovative Technology Program” means the program established under this Part of this Regulation; (e) “innovative technology project” means a project that uses innovative technology and that, in the Minister’s opinion, is a pilot project or demonstration of innovative technology; (f) “oil sands product” means an oil sands product as defined in section 1(1)(u) of the Oil Sands Royalty Regulation, 2009 (AR 223/2008); (g) “operator” means the person responsible for a project as shown in the application to have the project approved for participation in the Innovative Technology Program or in the Department’s subsequent records as amended or updated from time to time; (h) “person” includes a firm, trust, partnership, joint venture, government and government agency; (i) “program maximum” means the maximum aggregate amount of royalty credits, as determined under section 6, that may be established for innovative technology projects that are approved by the Minister; (j) “royalty credit” means an amount established by the Minister in accordance with sections 5(3) and 11 that the Minister may apply to reduce a royalty obligation under the Act; (k) “royalty obligation” means a royalty reserved or royalty compensation payable to the Crown under the Act in accordance with the Oil Sands Royalty Regulation, 2009 (AR 223/2008), Natural Gas Royalty Regulation, 2017 (AR 211/2016) or Petroleum Royalty Regulation, 2017 (AR 212/2016), as the case may be and as amended or replaced from time to time. (2) For the purpose of subsection (1)(c)(ii), the Minister may determine that any technology is innovative technology for the purposes of this Part. Establishment of program 3 The Innovative Technology Program is established in accordance with this Part. Application for program participation 4 (1) An operator may apply to the Minister to participate in the Innovative Technology Program with respect to a project. (2) An application must (a) be submitted in the form established by the Minister, and (b) contain all information and records required by the Minister. (3) On request, an applicant must, within the time specified by the Minister, provide the Minister with any other information or records that the Minister considers necessary to assess the application. Approval for program participation 5 (1) The Minister may, on receiving an application under section 4, approve a project for participation in the Innovative Technology Program if the Minister is satisfied that the project is (a) an innovative technology project, and (b) in the public interest. (2) Despite subsection (1)(a), the Minister may approve a project that will use innovative technology for participation in the Innovative Technology Program if the Minister is satisfied that approving the project is in the public interest. (3) The Minister must include in an approval granted under subsection (1) or (2) (a) a description of the innovative technology to be used in the approved project, (b) a description of the subsurface area and strata affected by the approved project, (c) a description of the surface area occupied by the approved project, (d) a description of the equipment and facilities of the approved project, (e) the maximum amount of the royalty credit that may be established for the approved project, which may not exceed $10 000 000 per project, (f) the maximum amount of the royalty credit that may be established for the approved project for each year, (g) the eligible costs or categories of eligible costs for the approved project, (h) the percentage, not exceeding 30%, of each eligible cost or category of eligible cost that will be used to establish the royalty credit in relation to each eligible cost or category of eligible cost specified in clause (g), and (i) any terms and conditions the approval is subject to. (4) Without restricting the generality of subsection (3)(i), the Minister may establish terms and conditions that require the operator to (a) notify the Minister in writing of the removal or replacement of any equipment or facilities of the approved project, as specified under subsection (3)(d), (b) provide the Minister with written reports or other information regarding the approved project, as required by the Minister from time to time, (c) authorize the Minister to disclose a report or other information referred to in clause (b), and (d) provide the Crown with an indemnification in a form satisfactory to the Minister for any claims against the Crown arising from (i) the approved project, (ii) the establishment, allocation and application of royalty credits under this Part, (iii) the disclosure by the Minister of a report or other information relating to the approved project, and (iv) any other matter specified by the Minister. (5) The Minister must not approve a project to participate in the Innovative Technology Program after the date on which the program maximum is reached. (6) The operator must notify the Minister within the time and in accordance with the process established by the Minister if (a) any material changes occur in respect of any matter referred to in subsection (3), or (b) a grant or benefit referred to in section 11(2) has been received. (7) The Minister may amend an approval but may not increase the maximum amount of the royalty credit that may be established for an approved project if the Minister has reason to believe that doing so would cause the program maximum to be exceeded. (8) The Minister may require an operator to enter into an agreement with the Crown in a form satisfactory to the Minister in respect of intellectual property arising from or related to the innovative technology to be used in a project (a) prior to the Minister approving the project for participation in the Innovative Technology Program under this section, or (b) as a condition of approval under subsection (3)(i). Program maximum 6 (1) Subject to subsection (2), the program maximum for the purposes of this Part is $200 000 000. (2) The Minister may establish a different program maximum for the purposes of this Part. Project commencement date 7 (1) For the purposes of this Part, a project is deemed to have commenced on the date specified by the Minister. (2) The Minister may deem that a project has commenced when the Minister is satisfied that the project has commenced. Eligible costs 8 (1) Subject to this section, the eligible costs of a project approved for participation in the Innovative Technology Program are the costs of the project that are (a) tied to the equipment and facilities of the approved project, as specified under section 5(3)(d), and (b) determined by the Minister to be (i) directly attributable to the innovative technology to be used in the project or necessary to carry out the project, and (ii) specified as eligible costs or categories of eligible costs under section 5(3)(g). (2) A cost is not an eligible cost for a project if (a) the cost is incurred before this Regulation comes into force or after December 31, 2031, (b) the cost is not actually incurred, (c) the cost is incurred before the project is deemed to have commenced, as determined under section 7, or (d) the cost is in relation to equipment or facilities located outside Alberta, including costs incurred in respect of equipment during any period in which the equipment was outside Alberta. (3) The following are not eligible costs: (a) administration, management or financing costs; (b) the amortization of a capital asset; (c) the cost of borrowed money that is deductible from income under section 21 of the Income Tax Act (Canada); (d) amounts that would be deductible under the Income Tax Act (Canada) or Income Tax Regulations under the Income Tax Act (Canada) as a capital cost of property; (e) expenses incurred for salaries, wages or other remuneration or benefits paid or provided to an employee in respect of services rendered by the employee, to the extent the services are not wholly and directly related to the project; (f) costs associated with studies, analyses, assessments or other activities that contribute to advancing the innovative technology to be used in the project toward commercialization, as determined by the Minister. Authority for royalty credit 9 (1) The Minister is authorized for the purposes of this Part to establish a royalty credit of not more than 30% of all eligible costs of a project that has been approved to participate in the Innovative Technology Program. (2) The total of all royalty credits established for projects under this Part must not exceed the program maximum. Applications for royalty credit 10 (1) The operator of a project approved for participation in the Innovative Technology Program may apply to the Minister for the establishment of a royalty credit in respect of the project after the end of any month that occurs, in whole or in part, on or after the date the project is deemed to have commenced. (2) An operator may apply for the establishment of a royalty credit on a monthly or annual basis and, when applying, must specify the applicable period and eligible costs incurred during that period. (3) An application may not be made under this section after December 30, 2031. Establishment of royalty credit 11 (1) The Minister may, in response to an application made under section 10, establish a royalty credit in respect of a project that is not more than (a) the maximum amount of the royalty credit that may be established for the project, as specified under section 5(3)(e), (b) the maximum amount of the royalty credit that may be established for the project for each year, as specified under section 5(3)(f), or (c) in respect of each eligible cost, the percentage of the eligible cost that will be used to establish the royalty credit in relation to the eligible cost, as specified under section 5(3)(h). (2) If the Minister is satisfied that a grant or benefit has been provided by a government, including the Government of Alberta or Government of Canada, or an agency of a government to the owner or operator of a project, or to another person with decision-making authority respecting the execution of the project, and the grant or benefit may be used in whole or in part for that project, the Minister may reduce, by an amount that does not exceed the amount of the grant or benefit, (a) any royalty credit established for the project, and (b) the maximum amount of the royalty credit that may be established for the project. (3) The Minister must reduce the amount of an eligible cost (a) to the extent that the amount of the eligible cost is reimbursed under a policy of insurance, as proceeds of litigation or otherwise, and (b) in the case of equipment approved as an eligible cost, to the extent of the fair market value of the equipment, as determined by the Minister, if that equipment is replaced by new equipment. (4) The Minister may, in respect of a project, (a) disallow as an eligible cost any expenditure that the Minister considers unreasonable, (b) reduce the amount of the eligible cost of an item or service obtained from a person connected to the operator or an owner of the project, or (c) reduce the amount of an eligible cost to an amount the Minister considers reasonable. (5) If a capital item for which an eligible cost is incurred is not new, the amount of the eligible cost for the capital item is the fair market value of the capital item at the time the project is approved for participation in the Innovative Technology Program, as determined by the Minister. Connected persons 12 (1) For the purpose of section 11(4)(b), a person is connected to an operator or owner of a project if, under subsection 1206(5) of the Income Tax Regulations under the Income Tax Act (Canada), they are considered to be connected with each other but, in making that determination, paragraph 1206(5)(a) must be read as if it were replaced by the following: (a) a person and another person (referred to in this paragraph as “that other person”) are connected with each other if (i) the person and that other person are not dealing at arm’s length, (ii) the person has an equity percentage in that other person that is not less than 10%, (iii) where the person is a corporation, the corporation and that other person are linked by another person who has an equity percentage in each of them that is not less than 10%, (iv) a party to a transaction referred to in section 11(4)(b) is in a position to compel another party to the transaction to enter into the transaction, or (v) a transaction referred to in section 11(4)(b) involves self‑dealing with respect to a party. (2) For the purposes of this section, a person and another person are not dealing at arm’s length with each other if, under sections 251 and 251.1 of the Income Tax Act (Canada), they would not be considered to be dealing at arm’s length or to be affiliated with each other. Royalty credit allocation 13 (1) In an application made under section 10(1), the operator of the project must identify the proposed percentage of the royalty credit that would be allocated toward a royalty obligation, such that 100% of the royalty credit is allocated to royalty obligations. (2) When allocating a royalty credit under subsection (1), the operator must identify all information the Minister considers necessary for the Minister to apply the royalty credits to the royalty obligation. (3) The Minister may apply a royalty credit established under this Part for a project to a royalty obligation in accordance with an allocation proposed in the application made under section 10(1) or may apply the royalty credit in a different manner, as the Minister considers suitable. (4) A royalty credit must be allocated and applied in full within 12 months from the date the royalty credit is established or within such further period as determined by the Minister. (5) A royalty credit that is not allocated and applied within the period referred to in subsection (4) expires at the end of that period and, on expiry, may not be applied, transferred, carried forward or otherwise used for any purposes. (6) When a royalty credit is allocated toward a royalty obligation together with another royalty reduction, credit or adjustment, the operator must ensure that (a) no deduction is duplicated, and (b) the total deductions do not exceed the royalty obligation owing under the Act. Records 14 (1) Subject to subsection (2), when a project is approved for participation in the Innovative Technology Program, all records that relate to the project or that are otherwise specified by the Minister and that are in the possession, custody or control of the operator of the project must be kept by the operator until a 5‑year period following the final month in which a royalty credit is established by the Minister in relation to the project has expired. (2) If the Minister is of the opinion that it is necessary for the administration of the Act or this Part, the Minister may, by a notice under section 4(1) of the Mines and Minerals Administration Regulation (AR 262/97), require the operator or its legal successor to keep records referred to in subsection (1) for any longer period referred to in the direction. (3) An operator or its legal successor must, on the Minister’s request, submit to the Minister within the time specified by the Minister any records or information the Minister requires for royalty administration purposes. Artificial transactions and non‑compliance 15 (1) Despite any other provision of this Part, the Minister may take one or more of the actions specified in subsection (2) if the Minister is of the opinion that (a) one or more acts, agreements, arrangements, transactions or operations were done or entered into, whether before or after the coming into force of this Part, for the purpose of improperly, artificially or unduly obtaining or increasing the amount of a royalty credit established under this Part, or (b) the operator of a project has not complied with (i) the terms and conditions of an approval under section 5, or (ii) a provision of the Act, this Regulation or an agreement referred to in section 5(8) in relation to the project. (2) The Minister may take the following actions in relation to a project in the circumstances described in subsection (1): (a) revoke the project’s approval under section 5; (b) determine that all or part of a royalty credit applied for under this Part is not established, or may not be allocated or applied, and calculate the relevant royalty obligation accordingly; (c) determine that all or part of a royalty credit established, allocated or applied under this Part should not have been established, allocated or applied, and cancel the royalty credit accordingly; (d) determine that the amount of a royalty credit established, allocated or applied under this Part was improperly, artificially or unduly increased, and reduce the royalty credit established, allocated or applied accordingly. (3) If the Minister makes a determination referred to in subsection (2), the royalty payer who would otherwise benefit from a royalty credit is not entitled to the royalty credit or to the amount by which the amount of the royalty credit was reduced, and the Minister may cancel or recalculate the royalty credit established under this Part accordingly. Part 2 Enhanced Hydrocarbon Recovery Interpretation — Part 2 16 (1) In this Part, (a) “approval” means an approval granted under section 20; (b) “approved scheme” means an enhanced hydrocarbon recovery scheme in respect of which there is a subsisting approval granted under section 20; (c) “enhanced hydrocarbon recovery” means enhanced recovery as defined in the Oil and Gas Conservation Act ; (d) “enhanced hydrocarbon recovery scheme” means an enhanced hydrocarbon recovery scheme as determined under section 18; (e) “environmental obligation” means a closure or reclamation activity or spending related to oil and gas exploration and production that is designated as an environmental obligation under subsection (3); (f) “environmental obligation spending” means an expenditure on environmental obligations; (g) “hydrocarbon” means any crude oil, natural gas, gas product or field condensate that is subject to a determination of royalties under the Natural Gas Royalty Regulation, 2017 (AR 211/2016) or the Petroleum Royalty Regulation, 2017 (AR 212/2016); (h) “incremental hydrocarbon recovery quantity” means the quantity of hydrocarbon obtained from a pool through enhanced hydrocarbon recovery operations that exceeds the primary hydrocarbon recovery quantity; (i) “operator”, in respect of an enhanced hydrocarbon recovery scheme or proposed enhanced hydrocarbon recovery scheme, means the person designated as the operator for the scheme or proposed scheme, according to the records of the Department or Alberta Energy Regulator as amended or updated from time to time; (j) “pool” means a natural underground reservoir containing or appearing to contain an accumulation of oil, gas or both oil and gas, separated or appearing to be separated from any other such accumulation; (k) “primary hydrocarbon recovery quantity” means the quantity of hydrocarbon obtained or expected to be obtained from a pool that is not attributable to enhanced hydrocarbon recovery operations; (l) “royalty reduction” means the difference between the amount calculated under the Natural Gas Royalty Regulation, 2017 (AR 211/2016) or the Petroleum Royalty Regulation, 2017 (AR 212/2016), as the case may be, and the amount calculated using the percentage rate determined under section 21(1), for the royalty reserved or royalty compensation payable for the incremental hydrocarbon recovery quantity; (m) “well” means a well as defined in section 1(1)(eee) of the Oil and Gas Conservation Act . (2) A reference in this Part to a month, whether by its name or not, must be read as the period commencing on the first day of the month and ending immediately before the first day of the next month. (3) For the purposes of subsection (1)(e), the Minister may designate a closure or reclamation activity or spending related to oil and gas exploration and production as an environmental obligation. Application of Part 17 (1) This Part applies only to hydrocarbon obtained under an enhanced hydrocarbon recovery scheme in which (a) the percentage of Crown ownership in the crude oil, natural gas, gas product or field condensate, as determined by the Minister in accordance with section 26.1 of the Petroleum and Natural Gas Tenure Regulation (AR 263/97), with necessary modifications, is greater than 0, and (b) the hydrocarbon is obtained from rights issued under the Petroleum and Natural Gas Tenure Regulation (AR 263/97), alone or in combination with (i) an estate in fee simple in a mineral located in a tract, or (ii) mineral rights owned and administered by the Crown in right of Canada. (2) If ownership of the mineral rights is held partly by the Crown in right of Alberta and partly by another person, this Part applies only to hydrocarbon obtained from mineral rights owned by the Crown in right of Alberta. (3) A pool in respect of which the royalty reserved or royalty compensation payable on hydrocarbons is being calculated under the Enhanced Hydrocarbon Recovery Royalty Regulation (AR 210/2016) is not eligible to be subject to an approval under this Part. Enhanced hydrocarbon recovery scheme 18 A scheme is an enhanced hydrocarbon recovery scheme if the scheme is implemented or proposed to be implemented in accordance with (a) a requirement under section 38(a) of the Oil and Gas Conservation Act , or (b) an approval under section 39(1)(a) of the Oil and Gas Conservation Act . Application for approval 19 (1) The operator of an enhanced hydrocarbon recovery scheme may apply for an approval under section 20. (2) An application must be in the form established by the Minister and must contain the information and records required by the Minister in the application form. (3) On request, an applicant must provide the Minister with any other information or records that the Minister considers necessary to assess the application. Approval 20 (1) The Minister may, on application, grant an approval for an enhanced hydrocarbon recovery scheme to receive a royalty reduction under this Part based on the application of the percentage rate determined under section 21(1) to the calculation of royalty reserved or royalty compensation payable on the incremental hydrocarbon recovery quantity obtained from wells that are part of the enhanced hydrocarbon recovery scheme if the Minister is of the opinion that, at the time the application and any other information or records required by the Minister under section 19(2) or (3) are received by the Minister, (a) the scheme is an enhanced hydrocarbon recovery scheme to which this Part applies, (b) the primary function of the scheme is the recovery of hydrocarbons from a pool, (c) more hydrocarbons are likely to be obtained through enhanced hydrocarbon recovery operations than would be obtained through primary hydrocarbon recovery, and (d) it is in the public interest to grant an approval under this section. (2) In an approval granted under subsection (1), (a) the Minister must set out (i) the pool that is subject to the enhanced hydrocarbon recovery scheme to which the approval applies, (ii) the area that is subject to the enhanced hydrocarbon recovery scheme to which the approval applies, (iii) the wells in the area referred to in subclause (ii) to which the approval applies, (iv) the primary hydrocarbon recovery quantity of the enhanced hydrocarbon recovery scheme to which the approval applies, and (v) the effective date of the approval for the enhanced hydrocarbon recovery scheme to which the approval applies, and (b) the Minister may establish terms and conditions the approval is subject to. (3) One hundred percent of the value of a royalty reduction calculated under this Part must be dedicated to exploration and production activities within Alberta or environmental obligation spending within Alberta. (4) If a royalty reduction calculated under this Part is less than zero, it will be deemed to be zero for the purposes of subsection (3). Percentage rate for calculation of royalty — incremental hydrocarbon recovery 21 (1) The royalty reserved or royalty compensation payable on the incremental hydrocarbon recovery quantity obtained from wells to which an approval under section 20 relates must be calculated under the Natural Gas Royalty Regulation, 2017 (AR 211/2016) or the Petroleum Royalty Regulation, 2017 (AR 212/2016), as the case may be, using the royalty share percentage calculation specified below, starting with the month following the month in which the incremental hydrocarbon recovery quantity is first determined by the Minister to be equal to or greater than zero, despite anything to the contrary in those regulations: R% = 5% + [F x (A – B)] where R% is the Crown’s royalty share for the incremental hydrocarbon recovery quantity, expressed as a percentage; F is 8% divided by $65 per barrel; A is the lesser of the WTI price for the production month calculated in accordance with subsection (2) and $120 per barrel; B is the lesser of A for the production month and $55 per barrel. (2) For the purposes of subsection (1), the WTI price for a given month, expressed in Canadian currency, is the simple average of the WTI prices for the trading days during the preceding month expressed in American currency, which is then converted to Canadian currency based on the simple average of the daily actual USD/CAD exchange rates for that month. (3) For the purposes of subsection (2), (a) the WTI price for a trading day is the settlement price for the day of the prompt month contract of West Texas Intermediate crude futures as traded on NYMEX, (b) a trading day is a day during which a prompt month contract referred to in clause (a) is traded on NYMEX, and (c) the daily actual USD/CAD exchange rate for a day is the rate published in relation to that day by the Bank of Canada. (4) For the purposes of this Part, any applicable forecasting requirements for royalty purposes must follow the procedures established by the Department or the Alberta Petroleum Marketing Commission, as amended from time to time. Calculation of royalty — primary hydrocarbon recovery 22 The royalty reserved or royalty compensation payable on the primary hydrocarbon recovery quantity obtained from wells to which an approval under section 20 relates must be calculated under the Natural Gas Royalty Regulation, 2017 (AR 211/2016) or the Petroleum Royalty Regulation, 2017 (AR 212/2016), as the case may be. Transition of pre‑2017 wells 23 The royalty reserved or royalty compensation payable in respect of wells drilled prior to January 1, 2017 to which an approval under section 20 relates must be calculated under the Natural Gas Royalty Regulation, 2017 (AR 211/2016) or the Petroleum Royalty Regulation, 2017 (AR 212/2016), as the case may be. Amendment of approval 24 (1) The Minister may, on application or on the Minister’s own initiative, amend an approval under section 20 (a) to correct an administrative error, (b) to revise an approval in which there have been significant changes in respect of (i) the pool that is subject to the enhanced hydrocarbon recovery scheme to which the approval applies, (ii) the area that is subject to the enhanced hydrocarbon recovery scheme to which the approval applies, (iii) the wells in the area referred to in subclause (ii) to which the approval applies, or (iv) associated operations, (c) to add, change or remove terms and conditions on the approval, or (d) on the application of the operator of an approved scheme, to add a well or wells to the well or wells to which the approval applies, as specified in the approval. (2) The Minister may amend an approval under subsection (1)(d) if the Minister is satisfied that the well or wells are in the pool to which the approval applies and are part of the enhanced hydrocarbon recovery scheme to which the approval applies. (3) An operator must apply for an amendment to an approval in the circumstances described in subsection (1)(b). Duty to provide information and file reports 25 (1) On receiving a request from the Minister to provide information or a report for the purpose of the Minister’s administration of this Part, a person who is or was an operator of an approved scheme must provide the information or report within the time specified in the request. (2) An operator of an approved scheme under this Part must provide an annual report to the Minister within the time specified by the Minister that includes (a) an update on the operations of the pool that is subject to the enhanced hydrocarbon recovery scheme to which the approval applies over the most recent reporting year, (b) an accounting report identifying how the value of a royalty reduction calculated under this Part was dedicated to exploration and production activities within Alberta or environmental obligation spending within Alberta as required by section 20(3), which must include a statement indicating approval of the accounting report by the chief financial officer of the operator or by another individual approved in advance by the Minister, by name or title, to approve that report, and (c) any other information the Minister may request respecting the ongoing evaluation and administration of the approved scheme or this Part. (3) For the purposes of subsection (2), a reporting year ends on the anniversary of the effective date of an approval under section 20. Suspension of approval 26 (1) The Minister may suspend an approval for an approved scheme if the operator of the approved scheme fails to provide information or a report that the Minister requests under section 25(1) or that is required under section 25(2) within the time required. (2) If an approval for an approved scheme is suspended under subsection (1), section 21(1) does not apply to the calculation of royalty reserved or royalty compensation payable on the incremental hydrocarbon recovery quantity obtained from wells to which the approval applies for the entirety of any month during which the suspension is in effect. (3) If an operator of an approved scheme provides the information or report that the operator failed to provide, leading to a suspension under subsection (1), the royalty reserved or royalty compensation payable on the incremental hydrocarbon recovery quantity to which the approval applies must be recalculated in accordance with section 21(1). (4) Subsection (3) does not apply if (a) the approval for the approved scheme is terminated before the suspension of the approval ends, and (b) in the Minister’s opinion, the reason for the termination of the approval is substantially the same as the reason for the suspension of the approval of the approved scheme. Termination of approval 27 The Minister may terminate an approval for an approved scheme if (a) the operator of the approved scheme requests termination of the approval, (b) the operator of the approved scheme has failed to provide information or a report that the Minister has requested under section 25(1) or that is required under section 25(2) within the time required, (c) the Minister is of the opinion that a term or condition of the approval is not being met, (d) the Minister is of the opinion that the approved scheme is no longer producing hydrocarbons through enhanced hydrocarbon recovery operations, or (e) a requirement in section 20(1) is no longer satisfied with respect to the approved scheme. Restriction on eligibility 28 Any pool that had been subject to an approval under this Part that is terminated for any reason is not eligible to be subject to an approval under this Part in the future. Expiry 29 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on December 31, 2031.