On August 9, 2023, Order in Council 408/2023 was issued, leading to the filing of Saskatchewan Regulations 75/2023 on August 10, 2023. This regulation amends The Oil and Gas Tenure Registry Regulations by introducing a new section that allows royalty payers to apply credits toward royalties for helium and associated gases. The aim of this amendment is to streamline processes and incentivize investment in the oil and gas sector. The newly amended regulations are formally titled The Oil and Gas Tenure Registry (Election to Apply Credits) Amendment Regulations, 2023.

The amendment adds Section 9-27 to The Oil and Gas Tenure Registry Regulations, outlining the process for royalty payers to elect to apply earned or transferred credits to their helium and associated gases royalties. The term “credits” refers to those earned or transferred to a royalty payer under specific regulations, including the Petroleum Innovation Incentive Regulations, the Oil and Gas Processing Investment Incentive Regulations, and the Oil Infrastructure Investment Program Regulations. Royalty payers holding these credits can apply them to the royalties they have paid, requiring submission to the minister in an approved form and manner.

The minister is authorized to refund all or part of the helium and associated gases royalties paid by a royalty payer if they can demonstrate that the relevant royalties have been paid and that they hold credits equal to the refund amount. The regulations specify eligibility periods for applying these credits: for the Petroleum Innovation Incentive and Oil and Gas Processing Investment Incentive Regulations, the timeframe spans from April 1, 2019, to March 31, 2035, while the Oil Infrastructure Investment Program Regulations allow credits from April 1, 2020, to March 31, 2035. Furthermore, the refund provision only applies to royalties paid during the month the credits are earned or transferred and in any subsequent month.

The introduction of Section 9-27 is a strategic enhancement of the regulatory framework for Saskatchewan’s oil and gas sector. By allowing royalty payers to apply credits toward helium and associated gases royalties, the regulation aims to encourage investment by providing financial incentives, simplify the refund process to reduce administrative burdens, and enhance transparency through clearly defined eligibility periods and conditions for refunds, fostering trust among stakeholders.

Saskatchewan Regulations 75/2023 updates the province’s oil and gas regulatory framework by facilitating the application of credits to royalties for helium and associated gases, the regulation not only incentivizes investment but also simplifies the refund process for royalty payers.

Saskatchewan (75/2023) August 18, 2023