20Assessable petroleum receipts—sales gas of integrated operation becoming excluded commodity other than by being sold

20 Assessable petroleum receipts—sales gas of integrated operation becoming excluded commodity other than by being sold

(1) For the purposes of paragraph 24(1)(e) of the Act, this section applies to sales gas that becomes or became an excluded commodity if it is project sales gas of an integrated operation.

Note: Paragraph 24(1)(c) of the Act applies to other sales gas that becomes an excluded commodity.

Advance pricing arrangement (2) If an advance pricing arrangement applies to the transaction, the amount of assessable petroleum receipts of a taxpayer is the amount calculated in accordance with the arrangement. Comparable uncontrolled price (3) The assessable petroleum receipts of a taxpayer in relation to the transaction is the amount calculated under subsection (4) if: (a) no advance pricing arrangement applies to the transaction; and (b) a comparable uncontrolled price exists for the transaction; and (c) no election has been made in relation to the integrated operation under section 50. (4) The amount is the comparable uncontrolled price multiplied by the volume or mass of project sales gas subject to the transaction. Residual pricing method (5) The assessable petroleum receipts of a taxpayer in relation to the transaction is the amount calculated under subsection (6) if: (a) no advance pricing arrangement applies to the sale; and (b) either: (i) no comparable uncontrolled price exists for the sale; or (ii) an election has been made in relation to the integrated operation under section 50. (6) The amount is the RPM price of project sales gas for the taxpayer in the year of tax in which the transaction took place multiplied by the volume or mass of project sales gas subject to the transaction. (7) In this section:

transaction means the act by which the project sales gas becomes or became an excluded commodity.