Schedule of Allowable Expenditures
Work Deposits and rentals will be refunded on the following basis, subject to further clarification by the Rights Administrator:
Costs related to the following classes of exploratory work undertaken as part of a program authorized by the National Energy Board may be claimed AT COST:-
Data acquisition by means of reflection seismic surveys or other geophysical, geo-technical or geological surveys, including costs relating to field acquisition and processing, inspection and clean-up.
Data purchase from vendors at arm's length for re-processing and/or interpretation, to the extent that the data assist the evaluation of the specific licence.
Drilling operations: Costs relating to construction of access routes, preparation of drilling sites, transportation to and from well location and staging areas, onsite drilling and evaluation, support vessels, helicopters, site clean-up and restoration. Drilling operations involved in an exploratory or delineation well may entail waiting on weather, logging, well testing and completion. Extended formation flow testing will not be regarded as an allowable expenditure.
Mobilization and demobilization of equipment and supplies, and any incurred stand-by charges deemed reasonable by the Rights Administrator.
Notwithstanding the above, the Minister may agree to costs claimed with respect to classes of work or activity, or the use of innovative technology not contemplated by this schedule.
General and Administrative:
Ten percent (10%) of the above allowable expenditures to reflect other costs not specifically itemized above, and including program specific consultation, data interpretation, regional office support, management and pre-and post program costs.
- Claims should be made by letter from the Representative to the Rights Administrator, Northern Oil and Gas Directorate, and contain a statement certified by an officer of the company or a professional engineer, geologist or geophysicist that the information in the statement is true and accurate to the best of their knowledge. The statement should provide a break down of actual costs for AT COST items and may be subject to post-audit. Claims for drilling operations and related charges should be accompanied by a cost statement prepared and certified by an external auditor satisfactory to the Minister.
- Costs must be incurred by the explorer, and must fairly and reasonably reflect the expense to the explorer of exploratory work.
- Claims are subject to approval by the Minister.
- Approval is subject to confirmation that program reporting requirements have been met to the satisfaction of the Regulator.
- Costs related to exploratory work within Period 1 of the Exploration Licence must be incurred prior to the end of Period I. Costs related to exploratory work within Period 2 of the licence must be incurred prior to the end of Period 2.
- Costs attributed to exploratory work must be related to the evaluation of the specific licence. Costs which apply to more than one licence or program must be fairly apportioned.
*schedule to licences
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