Do Saskatchewan’s existing gas royalties and freehold production tax regulations apply to NGC?
Both The Crown Oil and Gas Royalty Regulations and The Freehold Oil and Gas Production Tax Act contain the following definition for gas: “gas” means natural gas, including casing head gas and all hydrocarbons not defined as oil. Since NGC is natural gas found in coal deposits and consists mainly of hydrocarbon gas primarily methane with minor amounts of carbon dioxide and nitrogen, it is considered a “gas” for purposes of levying a Crown royalty or freehold production tax.
