5Upstream and downstream stages of integrated operation

## 5 Upstream and downstream stages of integrated operation (1) For the purposes of calculating assessable petroleum receipts relating to sales gas under regulation 14 or 15, the upstream stage of an integrated operation is a series of phases ending when all of the following actions have been completed: (g) the transportation of project product for the recovery mentioned in paragraph (a) or the production mentioned in paragraph (e); (2) For the purposes of calculating assessable petroleum receipts relating to sales gas under regulation 14 or 15, the downstream stage of an integrated GTL operation is a series of phases beginning when the upstream stage ends and ending when all of the following actions have been completed: (e) any activity associated with an action mentioned in paragraphs (a) to (d) for the purpose of using project sales gas to produce project liquid; (h) the storage of project liquid at or adjacent to the place at which it is produced by the processing mentioned in paragraph (b); (k) any multiple use of units of property for the storage, loading or transportation mentioned in paragraphs (h), (i) and (j). (3) For the purposes of calculating assessable petroleum receipts relating to sales gas under regulation 14 or 15, the downstream stage of an integrated GTE operation is a series of phases beginning when the upstream stage ends and ending when all of the following actions have been completed: (a) the transportation (if any) of the project sales gas from the upstream stage for combustion to produce project electricity; (c) any multiple use of units of property that are used in the combustion of the project sales gas to produce project electricity; (d) any activity associated with an action mentioned in paragraphs (a) to (c) for the purposes of using project sales gas to produce project electricity; (4) For the purposes of calculating assessable petroleum receipts relating to natural gas under regulation 16, the upstream stage of an integrated operation is a series of phases ending when all of the following actions have been completed: (c) the storage of recovered project natural gas before use in the production of sales gas, if the storage occurs before the sale referred to in paragraph 24(1)(f) of the Act; (d) any multiple use of the units of property that are used to store recovered project natural gas (including units of property that are used to store recovered project natural gas before use in the production of sales gas, if the storage occurs before the sale referred to in paragraph 24(1)(f) of the Act); (5) For the purposes of calculating assessable petroleum receipts relating to natural gas under regulation 16, the downstream stage of an integrated GTL operation is a series of phases beginning when the upstream stage ends and ending when all of the following actions have been completed: (a) the storage of recovered project natural gas, if the storage occurs after the sale referred to in paragraph 24(1)(f) of the Act; (b) any multiple use of the units of property that are used to store recovered project natural gas (including units of property that are used to store recovered project natural gas, if the storage occurs after the sale referred to in paragraph 24(1)(f) of the Act); (m) any activity associated with an action mentioned in paragraphs (i) to (l) for the purpose of using project sales gas to produce project liquid; (p) the storage of project liquid at or adjacent to the place at which it is produced by the processing mentioned in paragraph (j); (s) any multiple use of units of property for the storage, loading or transportation mentioned in paragraphs (p), (q) and (r). (6) For the purposes of calculating assessable petroleum receipts relating to natural gas under regulation 16, the downstream stage of an integrated GTE operation is a series of phases beginning when the upstream stage ends and ending when all of the following actions have been completed: (i) any multiple use of units of property that are used in the combustion of the project sales gas to produce project electricity; (j) any activity associated with an action mentioned in paragraphs (g) to (i) for the purposes of using project sales gas to produce project electricity; > Note: In general terms, a phase is a part of an operation during which the ratio of project product to total product flowing through the operation remains the same (and is expected to remain the same). The upstream and downstream stages of an integrated operation may include a number of phases, but each stage ends when the actions associated with the last phase have been completed.