Tax and Revenue Administration Fuel Tax Act Information Circular PROP-1R1

PROP-1R1 / September 2010

ALBERTA FUEL TAX ACT INFORMATION CIRCULAR:
PRESCRIBED REBATE OFF-ROAD PERCENTAGES (PROP)

NOTE: Effective 12:01 a.m., February 25, 2011, the Tax Exempt Fuel Use (TEFU) rebate for licensed vehicles, including Prescribed Rebate Off-road Percentages (PROP), is eliminated.  The marked fuel (tax excluded) component of TEFU, the Alberta Farm Fuel Benefit, and the Alberta Farm Fuel Distribution Allowance are not affected by this change. 

NOTE: This information circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this information circular and governing legislation, the legislation takes precedence.

This information circular explains how to apply for a rebate of fuel tax under the PROP program. The topics covered are:

• OVERVIEW of  PROP
• ELIGIBILITY for PROP
• HOW to APPLY for ENROLMENT
  • Dual Eligibility (Tax-exempt Fuel user [TEFU]/PROP)
• Cancellation or Refusal to Accept Enrolment
• When Business Activities/ Operations Change
• HOW to FILE a PROP REBATE APPLICATION
• DOCUMENTATION to SUPPORT a PROP APPLICATION (Form AT277)
  • Clear Fuel Purchases
• Fuel Tracking Records
• Example of a Fuel Log Book for a Supervisor Purchasing Fuel for Multiple Units
• Fuel Purchase Invoices in Applicant's Name
• Fuel Purchase Invoices Not in Applicant's Name - Fuel Assigned
• Carriers and Owner-operators
• IFTA-registered Vehicle Fuel Adjustments
• UNLICENSED EQUIPMENT - USE of MARKED FUEL
• TIME LIMITS and REBATE APPLICATION PERIODS
• POST-PAYMENT REVIEW
• AUDIT of PROP REBATE APPLICATIONS
• APPENDIX A - PRESCRIBED REBATE OFF-ROAD PERCENTAGES (PROP)
  
  • Oil and Gas Drilling
  • Oil and Gas Geophysicl or Seismic Exploration
  • Oil and Gas Production
  • Oil and Gas Servicing
  • Forestry
  • Muncipalities
    

OVERVIEW OF PROP

1. Alberta Finance, Tax and Revenue Administration (TRA) has been working with industry to simplify the Tax Exempt Fuel User (TEFU) rebate application process.  Through consultation, TRA has reached agreement with certain industry sectors on rebate percentages (based on activity and type of vehicle/equipment) and the start date for using the prescribed rebate off-road percentages (PROP). 
   

2. Before submitting a rebate application, apply to TRA by submitting a Fuel Tax Rebate Enrolment Application (AT4940) (see the “How to Apply for Enrolment” and “Time Limits and Rebate Application Periods” sections of this circular for more information).  This process is used to ensure that applicants are:
   
   
   • eligible for the program, 
   • aware of their eligible activity and vehicle categories,
   • aware of the fuel tracking requirements, and
   • have the necessary fuel records in place from the enrolment date forward.
     
     
3. If you carry out BOTH PROP-eligible and -ineligible (TEFU) activities after the PROP industry implementation date, obtain a determination from TRA about how to properly file your fuel tax rebate application(s).
   
   
4. Under the PROP process, the applicant no longer prepares surveys, tracks hours in off-road activities, or maintains records of fuel consumption rates. However, applicants are required to track and document fuel dispensed into each vehicle or rig package to which prescribed rebate off-road percentages are applied.   

5. Using the PROP process, you may apply for a rebate of fuel tax for off-road fuel use:

A x B x C = PROP rebate for each approved category,

where A is the tax paid litres of fuel consumed and tracked to eligible vehicles,
where B is the prescribed rebate percentage for the approved category, and
where C is the applicable Alberta fuel tax rate.

The total PROP rebate is the sum of all calculations for each approved category.

ELIGIBILITY FOR PROP

6. To be eligible for PROP, you must operate in one of the specified industries and perform one or more of the prescribed activities listed in Appendix A.  You should be the entity that paid the fuel tax and conducted the activity.  If you are currently using the TEFU program to obtain fuel tax rebates, check the current list of PROP-approved industry activities before submitting each TEFU rebate application, to determine if any of your activities are eligible for rebate under the PROP program.

HOW TO APPLY FOR ENROLMENT

7. Complete and forward a “Fuel Tax Rebate Enrolment Application” (AT4940) to TRA.  The applications are available from TRA or from our Internet site.
   

8. On approval of your enrolment, TRA will send you a letter confirming the effective date and the prescribed rebate percentages for your industry type and activities
   
   
9. You may be contacted to discuss your particular fuel tracking methods for the different activities you perform. 
   
   
10. TRA determinations regarding eligibility are based on the information you provide at the time of enrolment.  The determinations are binding on you and are subject to any terms and conditions imposed by TRA.
    
    
11. If TRA determines you are eligibleunder both TEFU and PROP, you are considered a "dual filer". Please note that Alberta fuel tax may only be rebated once.  When applying under both programs, use the same calendar quarter to reconcile fuel reported.  A calendar quarter is a period of three months beginning on the first day of January, April, July and October of each calendar year.
    

Dual Eligibility (TEFU/PROP)

12. Some instances when dual elibility might occur:
    
    
    • Single vehicle performing both PROP and TEFU activities. 
      
      For example, vehicle A hauls logs (PROP activity) from September to March and then hauls gravel (TEFU activity) from April to August. 

• Multiple vehicles performing exclusive PROP or TEFU activities. 
  
  For example, vacuum truck A exclusively removes drilling mud (PROP activity) while vacuum truck B exclusively cleans residential septic tanks (TEFU activity).

13. To obtain a determination of dual eligibility, complete a “Fuel Tax Rebate Enrolment Application” (AT4940) including a clear and detailed listing of all operational activities on a per-unit basis.  If there is insufficient space, please provide attachments.
    

Cancellation or Refusal to Accept Enrolment

14. TRA may refuse your application for enrolment if you are not eligible, or cancel your enrolment if you are no longer eligible.  TRA may cancel an enrolment when PROP eligible activities cease or if program requirements are not followed.

15. TRA cannot accept or process fuel tax rebate applications for PROP eligible activities under the PROP or TEFU programs if your PROP enrolment has been cancelled for not following program requirements.

When business activities/operations change

16. If your business has amalgamated with another or undergoes any other changes in corporate structure, or if your operations change and you begin working in another industry sector, please complete a new enrolment form (AT4940).

For example: As a forestry company involved in logging you are approved for PROP in category 1D and use a tractor trailer for your log hauling activity.  Then you decide to cease all logging operations and start oilfield heavy equipment hauling with a tractor and a flatbed trailer. To file a fuel tax rebate application, you are now required to re-enrol your heavy equipment hauling operations in category 5B (see Appendix A).  If your fleet size has changed, please provide this information on the new enrolment form.

17. If, while enrolled for PROP, your business changes so that you regularly perform PROP-ineligible activities in addition to PROP-eligible activities, complete form (AT4940) to obtain a TRA determination.

18. If you stop conducting activities eligible for PROP, you may submit applications for fuel consumed up to the date your activities ceased to be eligible.  Your final PROP application must reflect a calendar quarter.  The fuel reported should be based only on purchases and fuel tracking to the date that the PROP-eligible operations ceased.

For example, a rebate application period may extend from January 1, 20XX to March 31, 20XX (boxes 7 and 8 on the application form AT277).  If your operations ceased to be eligible on February 23, 20XX, the application should only contain fuel purchased and consumed from January 1, 20XX to February 23, 20XX. After the date your PROP eligibility ceased, you may be eligible to enroll in the TEFU program.

19. When the number of units in a fleet increases or decreases by more than 10 per cent, and/or a new rig package is added to your fleet, during a calendar quarter, you must submit an amended unit list (pages 4 and 5 of the “Fuel Tax Rebate Enrolment Application” [AT4940]) to TRA prior to filing your application for this period.

HOW TO FILE A PROP APPLICATION

20. After your enrolment application has been accepted and your PROP activity categories confirmed by letter, you may apply for rebates using PROP. You may only use application periods subsequent to the effective date specified in your enrolment approval letter.

21. To apply for a rebate under PROP, complete and sign a “Prescribed Rebate Off-road Percentages (PROP) Application” (AT277), following the instructions for completion of the application (IN277 Instructions), and
    
    
    • submit it online using Tax and Revenue Administration Client Self-service System (TRACS) on Alberta Finance's website, or
      
      
    • hand-deliver, fax or mail your paper PROP application form to TRA.
      
      
    Note: submitting applications online is easy and allows faster processing than for those sent to TRA by other means, as manual tracking and keying steps are not required.
    
    
22. Non-PROP approved activities may be filed under the TEFU rebate program ("Fuel Tax Rebate Application", AT342).  (See the TEFU information circulars for details).

DOCUMENTATION TO SUPPORT PROP APPLICATION (Form AT277)

23. If you are enrolled in PROP, keep complete and accurate records to support your application.  Based on your operations, such records  include, but are not limited to, the following:
    
    
    1. fuel purchase invoices or statements,
    2. bulk fuel storage inventory records,
    3. per unit fuel tracking records,
    4. summary fuel tracking records,
    5. vehicle inventory records,
    6. WCB annual returns,
    7. source documents to support that the fuel reported was consumed in prescribed activities (e.g., job tickets).

Clear fuel Purchases

24. You do not have to submit fuel purchase invoices, or a fuel purchase list when filing an application, but retain (for a period of six years) the invoices and chronological fuel purchase list to support each rebate application.  Preparing a chronological list of fuel purchases will make it easier to identify fuel purchases that occurred outside the period for which you are preparing a rebate application.

TRA may request these documents when conducting a post-payment review or audit of an application.  Prepare a separate fuel purchase document or
PROP “Schedule A” (AT4752) and fuel tracking summary schedule (see paragraph 30) for each type of Alberta tax-paid fuel (gas/ diesel/propane) that you will be reporting.  You may use computer-generated forms instead of TRA’s pre-printed forms, if you provide all the required information in the same format.

Fuel Tracking Records

25. Keep records to confirm:
    
    
    1. the volume of fuel purchases you reported for each period, including the fuel tax amounts that you were charged,
    2. you have the right to make the application for this fuel, and the:
       
       • volume of fuel placed into each separate PROP-approved unit or service rig package, or
       • volume of fuel placed into each oil or gas well during the application period, or
       • volume of fuel used to mix with other substances to manufacture well fracturing fluid.

26. Fuel purchase records include receipts, invoices, statements, and IFTA return information (pro-rate method only), if applicable. 

27. To be eligible for a rebate through the PROP program, fuel tracking must record every litre of fuel dispensed into each unit or piece of equipment (or other items listed in paragraph 25b.) included in your rebate application. If fuel is purchased, but there is insufficient evidence to determine which unit, rig package, or oil well it was dispensed into, this fuel is not eligible for rebate.  Estimation procedures or fuel allocation benchmarks are not acceptable fuel tracking methods.
    
    
28. Fuel tracking is a critical control and a requirement for this rebate program and other programs such as IFTA. TRA will conduct post-payment reviews and audits to ensure this and other controls are in place and functioning appropriately.
    
    
29. Ideally, each unit has its own log book or fuel card.  Each fuel receipt should have the unit number and vehicle identification number recorded on it.  This record-keeping will assist in reconciling the fuel receipts back to your monthly fuel statements, fuel tracking summary records and “Schedule A” (AT4752).

Another fuel tracking option is to have each person with the fuel card keep a fuel logbook noting the vehicle or equipment into which every litre of fuel was dispensed for all purchases on the card. This system is useful when multiple vehicles are filled at the same time and the supervisor pays for all the fuel with one fuel card.

30. Fuel Tracking Summary Schedule - you must maintain fuel records that total all the fuel dispensed into each vehicle according to approved PROP category during an application period.
    
    

    Sample Fuel Tracking Summary Schedule
    Category 5B	Gas	Diesel
    Per Unit	Litres Dispensed	Litres Dispensed
    Unit 575	2,541	0
    Unit 580	0	1,987
    Unit 585	654	0
    Total	3,195	1,987
    Category 5H	Gas
    Per Unit	Litres Dispensed
    Unit 19	893
    Unit 20	528
    Unit 21	1,053
    Unit 25	1,125
    Total	3,599

You must be able to reconcile these summary records to the source fuel tracking documentation (e.g., invoices), for each PROP category and unit. 

31. Fuel tracking records vary depending upon your operations, but may include:
    

    Single Vehicle Operators

    • when there is no metered bulk fuel storage - fuel invoices.
    • when there is metered bulk fuel storage - fuel invoices and bulk fuel log book/inventory records.
      

Multiple Vehicle Operators

• Write vehicle unit number or vehicle identification (VIN) numbers on fuel invoices or statements beside their related purchases.  This information must be summarized for each application period.  See paragraph 29 above.
  
  
• Maintain a current listing of vehicle unit numbers or VINs associated with units enrolled in each PROP vehicle category.

or

• If you maintain a fuel log book, you must identify the unit number, and total litres placed into every unit on each fuel receipt.  On multiple purchase receipts identify the unit numbers next to the subtotals.
  
  
• Keep a summary of log book details to reconcile to the fuel totals under each PROP category. Reconciliations between log books and invoices and statements are needed for accuracy and to avoid duplication.

Example of a Fuel Log Book for a Supervisor Purchasing Fuel for Multiple Units

Company Name: ________________________________________

Division/Department Name: _____________________________________

Supervisor/Fuel Card holder Name: ___________________________________

Fuel Supplier Name: ________________________________	Acct #: _______________
Card #:  ______________________________

Date	Vehicle Lic. Plate #	Unit #	Driver Name	Vehicle Description (brand/colour/type)	Fuel Type	Disposition Volumes

Total Litres

Multiple Vehicle Operators when there is Metered Bulk Fuel Storage:

• For reconciliation with fuel purchase records, note fuel withdrawal volumes by vehicle unit into a log book.
  
  
• Keep bulk storage inventory records to ensure the volume tracked to vehicles does not exceed the volume available.

Service Rig Packages (Permit issued by Alberta Transportation): 

• Summarize bulk fuel delivery receipts for fuel consumed by each service rig package (defined in Appendix A Category 6A).
  
  
• Fuel dispensed into units not defined in Category 6A must be tracked to each unit through a metered pump and log book.

Unlicensed Equipment (not included in Appendix A Category 6A): 

• invoices and receipts with unit numbers written on them; or
  
  
• a fuel log book distinguishing between clear and dyed fuel litres dispensed into the equipment, volume, and the purchase location.


When clear fuel is consumed in unlicensed equipment provide details why dyed fuel was not available for use in the unit.  See paragraphs 40 to 42 below. 

Fracturing and Down Hole Service (Category 5E): 

• inventory records
• volumes mixed and sold, and
• disposal records including Unique Well Identifiers (UWI), and specific volumes injected into each well.

Note: Fuel not supported by sufficient fuel tracking documentation is not eligible for rebate.

Fuel Purchase Invoices in Applicant's Name

32. On the “Listing of Fuel Purchases PROP Schedule A” (AT4752), provide the invoices for each type of fuel chronologically (by date).  Complete a separate listing for each type of Alberta tax-paid fuel purchased (diesel/gasoline/propane). Include biodiesel in the diesel totals. Include ethanol with the gasoline. If you used fuel such as kerosene for motive purposes and you filed and remitted tax to TRA, you may be eligible for a rebate if the kerosene was used for PROP activities.  Include tax-paid kerosene with diesel on the PROP application forms.

33. Suppliers’ statements are also acceptable if they contain all the necessary information described in the next paragraph.  TRA will return invoices and suppliers’ statements requested after completing any rebate application review or audit.  Invoices for fuel that are not in your or your business name must be listed separately. (See additional information below).

34. All supporting purchase invoices or suppliers' statements are required to show:
    
    
1. the name and address of the seller,
2. name of the purchaser,
3. date of the purchase,
4. invoice number,
5. type and quantity of fuel,
6. price paid, and
7. the Alberta fuel tax that was paid. 

Rebate applications based on invoices or statements that do not meet these requirements will be disallowed.

Fuel Purchase Invoices Not in Applicant's Name - Fuel Assigned

35. For prescribed activities, the last entity to pay the provincial fuel tax and use the fuel is eligible to apply for a rebate under PROP. Follow special procedures if someone other than you, the applicant, has purchased fuel for which you are seeking a tax rebate.
    
    
36. If you have authorized a third party (initial purchaser) to buy fuel on your behalf, and reimbursed the purchaser, provide a signed agreement with the initial purchaser of the fuel.  The agreement must state that the fuel purchased was used in your commercial operations and that the initial purchaser will not apply for a fuel tax rebate on that fuel.  Both you and the initial purchaser must sign and date the agreement.  See a sample “Fuel Tax Rebate Agreement” (AT4911) on the TRA website.

    Carriers and Owner-operators

37. Where an owner-operator uses fuel purchased from a carrier, it may be more practical for the carrier to file a PROP rebate application on behalf of all its owner-operators.  If you are a carrier and apply for a PROP rebate that includes fuel purchased and used by owner-operators, provide an assignment of the PROP refund entitlement from each owner-operator who purchased and used the fuel included in your application.  You, as the carrier, are responsible for ensuring that fuel tracking records and vehicle and owner-operator listings are kept and that the owner-operators are using the tax-paid fuel strictly for the PROP activities that you are enrolled in.

Note: The assignment may be made in a clause in the contract between you and an owner-operator or in a separate document. The “Fuel Tax Rebate Agreement” (AT4911) can be used by your company and its lease operators.  When filing an application for fuel consumed in units that are used, but not owned by you, complete the “PROP Vehicle Enrolment Agreement” (AT4750).

IFTA-registered Vehicle Fuel Adjustments

38. When International Fuel Tax Agreement (IFTA) vehicles are used off-road and included in your PROP application, adjust the application to reflect the actual fuel used in Alberta by these vehicles, not the amount of fuel bought in the province. The IFTA return reallocates fuel and tax among jurisdictions based on where fuel was used.  The Alberta IFTA adjustment for fuel is located under AB in column 6 of the “IFTA Fuel Type Schedule” (AT2060).
    
    
39. If the PROP-registered vehicles form part of your IFTA fleet, then use only the portion of the IFTA adjustment relating to the PROP vehicles to adjust the PROP fuel reported.  Apply the IFTA fuel adjustment to the appropriate PROP vehicle category consistently and proportionally to the fuel burned in an IFTA-registered vehicle off-road in Alberta.

UNLICENSED EQUIPMENT - USE OF MARKED FUEL

40. To buy marked fuel, present a fuel tax exemption certificate at the time of purchase.  To apply for an exemption number, complete a “Declaration of Tax Exempt Fuel User” ( AT321) and submit it to TRA.   For details, see Information Circular FT-3, Fuel Tax Exemption Certificates.

41. Commercial operations using unlicensed vehicles and equipment must use tax-exempt marked fuel in those vehicles.  Fuel tax-paid on clear fuel purchases may be rebated for unlicensed vehicles or equipment only if, in TRA’s opinion, marked fuel was not reasonably available and the consumer has a valid TEFU certificate and number.

42. Marked fuel is considered not reasonably available only in situations where you have a valid TEFU certificate and number, and:
    
    
    1. there is no bulk fuel dealer with marked fuel for sale located within a 50 kilometre radius of your work site, or
    2. the fuel is being used in a project where clear fuel must also be used and there is a legal restriction (such as zoning) that prevents you from having more than one storage tank.

TIME LIMITS AND REBATE APPLICATION PERIODS

43. If you carry out the activities listed in Appendix A, make an application for PROP enrolment on the proper form and manner (see "How to Apply for Enrolment") on or before the later of:
    
    
    1. one year from the date the activity is prescribed, or 
    2. one year from the date you begin using fuel to conduct the activity. 

If you have missed the deadline described in the above paragraph, TRA may still consider enrolling you if you provide evidence of acceptable fuel tracking throughout the period.   

You may be denied enrolment for any enrolment application if there is insufficient evidence or evidence of inappropriate fuel tracking for activities prescribed in Appendix A.  Also, you may not obtain a rebate under either the PROP or TEFU program for fuel used.

44. PROP application periods must be calendar quarter periods.

45. TRA must receive a complete PROP application for a fuel tax rebate no later than three years after the end of the calendar year in which the fuel was purchased.

For example: If you bought and used fuel in PROP-approved activities in October 2006, TRA must receive an application for that fuel by December 31, 2009. After December 31, 2009, the fuel bought and used in October 2006 is not eligible for a fuel tax rebate.

46. Under the Fuel Tax Act, you must file an objection to any disallowance of your rebate application within 90 days of the date of the letter issued by TRA describing the disposition of the application. Refer to Information Circular FT-9, Audits, Objections, and Waiver of Penalties and Interest, for additional information about extensions of the time period to file objections. 

47. Submit amended PROP applications under the same period as was originally filed.  Do not add amended applications to future periods.

For example: You have just filed for the quarter April 1 to June 30, 20XX. You realize after the application has been processed that you forgot to include 10,000 litres of fuel. File an amended application for April 1 to June 30, 20XX. DO NOT add the 10,000 litres to July 1, 20XX to Sept 30, 20XX or any other later period end.

48. TRA staff may contact you for additional information or clarification about the PROP application.  If the requested information is not satisfactory, TRA may adjust, disallow, or refer your application for audit.  Payment of all, or part, of an application does not mean TRA's review has been completed.  An in-depth review may be conducted by TRA at a later date.

49. Keep the records supporting your rebate application for four years after the end of the year in which the rebate is paid, or six years from the end of the year in which the fuel was purchased, whichever is later.

POST-PAYMENT REVIEW

50. TRA may select your application for an in-depth review to ensure that the benefits received under the PROP program comply with legislation and are supported by appropriate documentation.

At our request, you must provide all records to support your PROP rebate application for the period specified.  If you do not comply, we may withhold funds from future PROP rebate applications, and/or reassess your rebate entitlement for the selected period to zero.

Regardless of the findings by reviews completed through this process, TRA may conduct an audit of the same period at a future date.

AUDIT OF PROP REBATE APPLICATIONS

51. TRA may conduct audits of PROP applications to ensure applicants have received the benefit to which they are entitled under the program. Ensure your records are available and provided, if requested. Records requested may include, but are not limited to:
    
    
    1. vehicle lists,
    2. vehicle assignment to category/type of operation,
    3. fuel purchase invoices,
    4. a fuel tracking summary for all vehicles and detailed records for each unit,
    5. fuel log books for fuel dispensed from bulk storage,
    6. evidence that you perform the PROP activities for which you are enrolled, and
    7. any other documentation considered necessary to support your application.
       
       
52. The onus is on you, the applicant, to demonstrate how your books and records support the off-road fuel rebate you are reporting under PROP.

Appendix A - Prescribed Rebate Off-road Percentages (PROP)

To be eligible to use PROP, claimants must be operating in one or more of the industries activities listed and must complete an enrolment for Prescribed Rebate Off-road Percentages (PROP) (AT341). The implementation date for each section is shown below. The descriptions following the specified sector are examples. If there are any questions, please contact Tax and Revenue Administration.

ALBERTA FUEL TAX ACT

Prescribed Rebate Off-road Percentages (PROP)

1. For those engaged in OIL AND GAS DRILLING:

This includes entities engaged in drilling oil or gas wells for themselves, or others on a contract or fee basis, involving the use of large, heavy-duty stationary drilling rigs capable of drilling several thousand feet into the earth.

Also included is oil and gas well servicing, drilling, and rework, if performed by a mobile service rig and other units as part of the rig package. A mobile service rig is composed of a derrick and draw works and is capable of pulling and running jointed tubulars and conventional/continuous sucker rods. The service rig package may include attendant equipment such as mobile pump, tank trucks, winch trucks and portable doghouse, (crew change facilties).

The mobile service rig must be permitted on public highways only for short convoy travel distances and spend up to 95 per cent of its total operating time either "off-road" (i.e., not on public roads), stationary or "rigged up" on site. Permits will be confirmed at enrolment time.

Support vehicles are defined as light trucks used by field staff who are actively and directly involved in a primary step in production for approved PROP categories.  Support vehicles may include units such as mechanic pilot, and foreman/supervisor trucks.  Support vehicles do not include administrative, sales or similar trucks within the claimant's fleet that do not conduct primary activities at off-road locations.

2. For those engaged in OIL AND GAS GEOPHYSICAL OR SEISMIC EXPLORATION:

To qualify in this industry the entity must be engaged in oil and gas geophysical, geological, and other exploration services using seismic technology for the purpose of locating formations beneath the earth's surface. Included in this category:

• shot hole drilling (a truck-mounted, low impact or heliportable drill) and the units that support this activity;
• surveying, permit agents and scouts supporting the exploration activities of sites for seismic activity.
• Vibroseis trucks that are delivered to work locations should be claimed under unlicensed equipment (26A)
  

Support vehicles are defined as light trucks used by field staff who are actively and directly involved in a primary step in production for approved PROP categories.  Support vehicles may include units such as mechanic, pilot, and foreman/supervisor trucks.  Support vehicles do not include administrative, sales or similar trucks within the claimant's fleet that do not conduct primary activities at off-road locations.

3. For those engaged in OIL AND GAS PRODUCTION:

This includes entities involved in upstream oilfield activities that generate revenue from the production and sale of clean bitumen/oil sands products, crude oil and/or natural gas. These entities perform the upstream production activities on properties on which they hold working interest rights for exploration of oil and gas or oil sands.

The upstream sector includes the exploration and extraction of crude oil, natural gas and natural gas liquids. This activity involves various methods, such as drilling, steam injection, strip mining and upgrading, used to extract and clean crude oil.

Upstream production facilities include oil/gas wells, well head equipment, flow line/gathering systems tied into field processing facilities – battery site/compressor stations, crude oil separators and natural gas dehydrators treater/sulfur processing plants, heavy oil projects including steam generation and/or other enhanced recovery methods. Excluded are the bulk delivery of refined fuel, pipelines, site preparation and the construction of facilities.

Support vehicles are defined as light trucks used by field staff who are actively and directly involved in a primary step in production for approved PROP categories.  Support vehicles may include units such as mechanic, pilot, and foreman/supervisor trucks.  Support vehicles do not include administrative, sales or similar trucks within the claimant’s fleet that do not conduct primary activities at off-road locations.

4. For those engaged in OIL AND GAS SERVICING:

This includes activities listed below that service and supply within the upstream petroleum industry. Excluded are all snubbing units and stand-alone units' cranes, hotshot service, surveying, line cutting, line locating, water drilling, bush clearing, road building, excavating or erecting services and bulk fuel delivery.

Support vehicles are defined as light trucks used by field staff who are actively and directly involved in a primary step in production for approved PROP categories.  Support vehicles may include units such as mechanic, pilot, and foreman/supervisor trucks.  Support vehicles do not include administrative, sales or similar trucks within the claimant's fleet that do not conduct primary activities at off-road locations.

Note *** fracturing and down hole service*** refers to the taxable fuels pumped into a wellbore or used as an ingredient in the preparation of well stimulation or fracturing fluids. It does not refer to fuel consumed by vehicles (category 5A) to pump these fluids into a wellbore.

5. For persons engaged in FORESTRY:

   This activity does not include access road construction, hotshot service and legal surveying.
   
   Support vehicles are defined as light trucks used by field staff who are actively and directly involved in a primary step in production for approved PROP categories.  Support vehicles may include units such as mechanic, pilot, and foreman/supervisor trucks.  Support vehicles do not include administrative, sales or similar trucks within the claimant's fleet that do not conduct primary activities at off-road locations.

Note:

* Activities followed by an asterisk (*) must be a sub function of the primary activity of Forestry Management to qualify.

** Log transport does not include hauling from mills to locations other than cut location.

***Class 1 Plated/Class 2 Plated- This refers to the motor vehicles licence plate classification of the specific vehicle. Check with your Alberta Registries agent if you are unsure of the plate class of your commercial vehicle.

6. For an eligible Municipality:

This includes all Alberta cities, improvement districts, Metis settlements, municipal districts, special areas and specialized municipalities, as defined by Alberta Municipal Affairs.

7. For persons engaged in a PROP industry or an eligible municipality listed above:

To qualify for one of these categories, you must be enrolled in a PROP industry or eligible municipality listed above and also operate unlicensed equipment or ATV’s, quads, or snowmobiles.

Note:
* Unlicensed units should use marked (tax-exempt) fuel. Clear fuel should be used only when marked fuel is
not reasonably available. The applicant must have a valid TEFU number and purchase marked fuel whenever reasonably available.