Payout

25(1) Subject to subsections (4) and (5), a Project achieves payout on

(a) the effective date of the Project, in the case of a Project for which the prior net cumulative balance is zero or a negative amount, or

(b) the first day of the month during which the cumulative revenue of the Project first equals the cumulative cost of the Project, in the case of any other Project.

(2) The cumulative cost of a Project referred to in subsection (1)(b) is the aggregate of the following amounts:

(a) the prior net cumulative balance of the Project;

(b) the prior net cumulative balance of any Prior Project expansions or Project expansions included in the Project;

(c) the aggregate of the proceeds, and royalty compensation, paid to the Crown in respect of royalty

(i) on Project substances reserved under section 29(1), and

(ii) on Project substances, as defined in the Prior Regulation, reserved under section 90(2) of the Act, as that section stood on October 1, 2008, if the Project is a Prior Project;

(d) allowed costs of the Project, other than allowed costs under Part 3 of the Oil Sands Allowed Costs (Ministerial) Regulation, incurred on or after January 1, 2009;

(e) allowed costs of the Project described in sections 15(3) and 16(2) of the Oil Sands Allowed Costs (Ministerial) Regulation;

(f) if the Project is a Prior Project, the aggregate of

(i) allowed costs of the Project incurred before January 1, 2009, other than allowed costs described in section 4 of Schedule 1 or 2 to the Prior Regulation, as the case may be, and

(ii) allowed costs of the Project described in section 4(c) of Schedule 1 or 2 to the Prior Regulation, as the case may be, for a month prior to January 1, 2009,

where “allowed cost” and “incurred” have the same meaning as in the Prior Regulation.

(3) The cumulative revenue of a Project referred to in subsection (1) is the aggregate of the following:

(a) the Project revenue of the Project for the month commencing on the later of January 1, 2009 and the effective date of the Project, and for each subsequent month;

(b) other net proceeds of the Project arising on or after the later of January 1, 2009 and the effective date of the Project, other than other net proceeds described in section 23(2)(f) or (g);

(c) if the Project is a Prior Project, the aggregate of

(i) the Project revenue of the Project for all months prior to January 1, 2009, and

(ii) the other net proceeds of the Project arising prior to January 1, 2009, other than other net proceeds described in section 22(2)(e) of the Prior Regulation,

where “Project revenue” and “other net proceeds” have the same meaning as in the Prior Regulation.

(4) If, as of the day preceding the effective date of an amendment approved under section 11(2) that amalgamates 2 or more Projects, the Project payout date has occurred for at least one of the Projects being amalgamated, the amalgamated Project is deemed to be a Project that has achieved payout.

(5) If, as of the day preceding the effective date of an amendment approved under section 11(2) that amalgamates 2 or more Projects, the Project payout date has not occurred for any of the Projects,

(a) the amalgamated Project is deemed as of the effective date to be a Project that has not yet achieved payout, and

(b) the aggregate of the cumulative costs of the Projects as of the day preceding the effective date of the amendment and the aggregate of the cumulative revenues of the Projects as of the same day shall, for the purpose of determining the Project payout date of the amalgamated Project, be the cumulative cost and cumulative revenue, respectively, of the amalgamated Project as of the commencement of the effective date of the amendment.