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					               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998




                            Alberta Regulation 261/97

                             Mines and Minerals Act

   METALLIC AND INDUSTRIAL MINERALS AMENDMENT REGULATION

                                                             Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 641/97) pursuant to section 5 of the
Mines and Minerals Act.

              1 The Metallic and Industrial Minerals Regulation (AR 66/93)
              is amended by this Regulation.


              2 The heading “PLACER MINING OPERATIONS” preceding
              section 4 is struck out and “PLACER MINING LICENCES” is
              substituted.


              3 Section 5(2)(b) is repealed and the following is substituted:

                   (b) the fee for an application prescribed in the General Regulation
                       (AR 163/84).


              4 Section 8 is amended by adding “, without the prior written
              consent of the lessee,” after “shall not”.


              5 Section 10 is amended by adding the following after
              subsection (2):

                     (3) The Minister shall refuse an application for a permit in
                     respect of the metallic and industrial minerals in any part of the
                     proposed location of the permit that the applicant held under an
                     agreement during the 60-day period preceding the receipt of the
                     application by the Minister.


              6 Section 11(1) is repealed and the following is substituted:
Rights               11(1) Subject to subsection (2), a permit grants in accordance
conveyed by          with the terms and conditions of the permit
permit

                          (a) the exclusive right to explore for metallic and industrial
                              minerals that are the property of the Crown in right of
                              Alberta in the location;

                          (b) the right to remove metallic and industrial minerals from
                              the location for the purposes of assaying and testing and
                              of metallurgical, mineralogical or other scientific
                              studies.


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ALTA. REG. 261/97                                                 MINES AND MINERALS



             7 Section 13(3) is repealed and the following is substituted:

                       (3)Subject to subsection (1), the Minister may reduce the area of
                       a permit at any time during the term of the permit, if the permit
                       holder provides written instructions to the Minister indicating the
                       area that is to be deleted from the permit.


             8 Section 14 is amended

                    (a) in subsection (1) by striking out “Subject to subsection
                        (2),” and substituting “Subject to subsections (2), (3) and
                        (4),”;

                    (b) in subsection (2) by striking out “the permit holder may
                        apply to the Minister to credit” and substituting “the
                        Minister may, on the direction of the permit holder, credit”;

                    (c) by adding the following after subsection (2):

                        (3)If, during any 2-year period referred to in subsection (1), a
                        permit holder spends on assessment work on the location of the
                        permit less than the minimum amount required for that 2-year
                        period in accordance with subsection (1), the Minister shall, on
                        application of the permit holder, allow the permit holder to
                        retain a part of the location in respect of which, in the opinion
                        of the Minister, the minimum spending requirements under
                        subsection (1) would have been met.

                        (4)The permit holder may, once during the term of the permit,
                        pay to the Minister the minimum amount specified for a 2-year
                        period referred to in subsection (1), instead of spending that
                        amount during that period in accordance with subsection (1).

                        (5) A permit holder who pays an amount in accordance with
                        subsection (4) is considered to have complied with the
                        assessment work requirements for the period in respect of which
                        the payment is made.


             9 Section 15(2) and (3) are repealed and the following is
             substituted:

                       (2) An assessment work report submitted under subsection (1)
                       shall

                           (a) comply with the requirements for an assessment work
                               report set forth in Schedule 2,

                           (b) be accompanied by an authorization from the person
                               who prepared the report to copy or reproduce the report
                               or any part of it after the end of the one-year


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ALTA. REG. 261/97                                                 MINES AND MINERALS

                                confidentiality period for the purpose referred to in
                                section 15.1(2), and

                            (c) be otherwise satisfactory to the Minister.

                        (3) If, in the Minister’s opinion, an assessment work report
                        submitted under subsection (1) does not

                            (a) conform to the requirements of subsection (2),

                            (b) show adequate work for the 2-year period to which the
                                report relates, or

                            (c) show work that is adequate to support the statement of
                                expenditures for the 2-year period that is contained in
                                the report,

                        the Minister may

                            (d) require the permit holder to furnish or correct any
                                deficiencies in the assessment work report, or

                            (e) reject the assessment work report in whole or in part and
                                require the permit holder to submit another report or part
                                of a report for the relevant period within the time
                                prescribed by the Minister.

                        (4) The permit holder is considered not to have complied with
                        section 14(1) or subsection (1) of this section until the permit
                        holder complies with the Minister’s requirements under
                        subsection (3).


                  10 The following is added after section 15:
Confidentiality         15.1(1) Subject to section 6 of the General Regulation
of assessment
work report
                        (AR 163/84), the Minister shall keep confidential any
                        information and data contained in an assessment work report for
                        one year after the report is received by the Minister.

                        (2) The Minister shall, at the end of the confidentiality period
                        referred to in subsection (1), make the assessment work report
                        available to the public.

                        (3) The Minister, in making an assessment report available under
                        subsection (2), may only recover the costs, including overhead,
                        associated with the copying or reproduction of the report.
Grouping of             15.2(1) Subject to this section, the Minister may, on application
permits                 in writing by a permit holder or his authorized representative,
                        approve the grouping of 2 or more permits held by the permit
                        holder for the purpose of being dealt with in accordance with



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ALTA. REG. 261/97                                               MINES AND MINERALS

                    sections 15.3 to 15.8, if the locations of the permits proposed to
                    be grouped are contiguous.

                    (2) A permit may not be included in more than one group at a
                    time.

                    (3) The Minister may give an approval under subsection (1)
                    subject to any terms and conditions that the Minister may
                    prescribe.

                    (4) If a permit holder intends that all or any of the matters
                    pertaining to grouped permits held by him that are referred to in
                    sections 15.3 to 15.8 should be dealt with on his behalf by a
                    representative, the permit holder or that representative shall
                    submit to the Minister a document providing evidence
                    satisfactory to the Minister of the representative’s authority to act
                    on behalf of the permit holder in respect of those matters.
Assessment          15.3(1) If permits are grouped pursuant to section 15.2(1), the
work reports        permit holder shall submit to the Minister an assessment work
for groups
                    report for the group that, in respect of each of the permits in the
                    group, complies with section 15(1), and

                        (a) describes the results of the assessment work conducted
                            on the land comprised within the group,

                        (b) contains a detailed statement of, and a statement of the
                            total of, the expenditures incurred in conducting that
                            assessment work, and

                        (c) indicates the permits or parts of permits within the group
                            that the permit holder or its authorized representative has
                            selected to retain.

                    (2)Sections 15 and 15.1 apply with the necessary modifications
                    to an assessment work report submitted in respect of permits that
                    have been grouped under section 15.2(1).
Retention of        15.4(1) The permit holder may retain the permits and parts of
permits             permits indicated under section 15.3(1)(c) if the total
                    expenditures incurred in conducting assessment work as shown
                    in the assessment work report submitted under section 15.3(1)(b)
                    equal or exceed the total of the minimum spending requirements
                    for those permits and parts of permits as determined under section
                    14.

                    (2) The minimum spending requirement under section 14 for a
                    permit or part of a permit selected under section 15.3(1)(c) must
                    be calculated on the minimum spending requirement per hectare
                    under section 14(1) for the 2-year period of that permit that is
                    running at the time the assessment work report is submitted under
                    section 15.3.



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ALTA. REG. 261/97                                                   MINES AND MINERALS

Application of          15.5(1) This section applies if the total expenditures incurred in
excess                  conducting assessment work as shown in the assessment work
spending
requirements            report submitted under section 15.3 exceed the total of the
                        minimum spending requirements for the permits and parts of
                        permits selected under section 15.3(1)(c) as determined under
                        section 15.4.

                        (2) The Minister may, on direction of the holder of the permits
                        in the group or its authorized representative, credit the excess
                        against the minimum spending requirements for any period of the
                        permits and parts of permits that is subsequent to the period
                        referred to in section 15.4(2).
Expenditures            15.6(1) This section applies if the total expenditures on locations
of less than
minimum
                        within the group as shown in the assessment work report
requirements            submitted under section 15.3 are less than the total of the
                        minimum spending requirements for the permits and parts of
                        permits selected under section 15.3(1)(c) as determined under
                        section 15.4.

                        (2) The holder of the permits in the group or its authorized
                        representative may, on application to the Minister, retain a
                        reduced area of the permits or parts of permits for which, in the
                        opinion of the Minister, the total of the minimum spending
                        requirements as determined under section 15.4 equals the total
                        expenditures on locations within the group as shown in the
                        assessment work report submitted under section 15.3.
Cancellation of         15.7 The Minister may cancel all the permits in a group for a
permits in a            failure to comply with section 15 or 15.3.
group
Amending of             15.8 A grouping may be amended if the holder of the permits in
groupings
                        the group or its authorized representative applies in writing to the
                        Minister to amend the grouping and the Minister approves the
                        amendment.
Expiry of               15.9     A grouping under section 15.2(1) expires on the
grouping                submission of an assessment work report for the group under
                        section 15.3(1).


                  11 Section 16 is repealed.


                  12 Section 17(b) is repealed and the following is substituted:

                     (b) to a permit holder who

                             (i) has complied with the requirements of Part 2,

                            (ii) has held the permit for at least the 2-year period referred
                                 to in section 14(1)(a), and



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ALTA. REG. 261/97                                                    MINES AND MINERALS

                             (iii) applies, at any time before the permit expires, for a lease
                                   in respect of all or part of the location described in the
                                   permit,

                        or


                  13 Section 22 is amended

                     (a) by repealing subsection (2);

                     (b) in subsection (3) by striking out “under this section” and
                         substituting “before the end of its term”.


                  14 Section 23 is repealed and the following is added after the
                  heading “PART 4 GENERAL”:
Cores, cuttings         23(1) A lessee, licensee or permit holder shall follow all
requirements            directions or instructions given by the Minister or by any person
                        authorized by the Minister with respect to

                              (a) cores or cuttings,

                             (b) the retrieval, selection, labelling, delivery, transportation
                                 and storage of core samples, rock samples or drill
                                 cuttings, and

                              (c) the records to accompany samples and cuttings.

                        (2)The lessee, licensee or permit holder to whom the directions
                        and instructions referred to in subsection (1) have been given
                        must bear the cost of complying with the directions and
                        instructions.

                        (3) The Minister, on application by a lessee, licensee or permit
                        holder, may waive compliance with all or any directions or
                        instructions referred to in subsection (1).
Property of the         23.1 All core samples, rock samples or drill cuttings delivered
Crown
                        to the Department pursuant to directions or instructions given
                        under section 23(1) and all records accompanying the samples
                        and cuttings

                              (a) are thereafter, subject to clause (b), the property of the
                                  Crown in right of Alberta, and

                             (b) shall, subject to section 6 of the General Regulation
                                 (AR 163/84), be kept confidential for one year after they
                                 are received by the Department.


                  15 Schedule 2 is amended

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ALTA. REG. 262/97                                                  MINES AND MINERALS

                    (a) in section 1(c) by striking out “under oath”;

                    (b) in section 3(3) by adding “or another agreement” after
                        “same agreement”.


                              ------------------------------

                             Alberta Regulation 262/97

                              Mines and Minerals Act

          MINES AND MINERALS ADMINISTRATION REGULATION

                                                               Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 642/97) pursuant to sections 5 and 93
of the Mines and Minerals Act.

                                          Table of Contents

               Definitions                                                          1

                       Designated Representatives, Notices and Applications

               Designation of representative                                        2
               Official service address                                             3
               Giving of notices, etc. by the Minister                              4
               Giving of notices, etc. to the Minister                              5
               Applications to the Minister                                         6

                                             Agreements

               Issuance of agreement                                                7
               Agreement issued to 2 or more lessees                                8
               Specified undivided interests                                        9
               Term of agreement                                                   10
               Surrender of agreement                                              11
               Partial transfers, divisions and consolidations of agreements       12
               Amendment of agreement                                              13
               Cancellation of agreement                                           14
               Commencement of reinstatement application period                    15
               Persons ineligible as lessees                                       16

                                      Fees, Rentals and Interest

               Prescribed fees                                                     17
               Fee accounts                                                        18
               Monthly invoice arrangements                                        19
               Annual rentals                                                      20
               Liability to the Crown for interest                                 21
               Crown’s liability for interest on overpayments                      22
               Application of payments                                             23


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ALTA. REG. 262/97                                                MINES AND MINERALS

                                               General

              Return of deposit or security                                           24
              Retention of records                                                    25
              Disclosure of information                                               26
              Exceptions to section 33(1)(a) of the Act                               27
              Deemed areas                                                            28
              Mineral title transfers and notifications                               29

                                     Consequential Amendments

              Ammonite Shell Regulation amended                                       30
              Coal Royalty Regulation amended                                         31
              Metallic and Industrial Minerals Regulation amended                     32
              Metallic and Industrial Minerals Royalty Regulation amended             33
              Natural Gas Royalty Regulation, 1994 amended                            34
              Oil Sands Regulation amended                                            35
              Oil Sands Royalty Regulation, 1997 amended                              36

                               Repeal, Expiry and Coming into Force

              Repeal                                                                  37
              Expiry                                                                  38
              Coming into force                                                       39

              Schedule


Definitions   1 In this Regulation,

                    (a) “Act” means the Mines and Minerals Act;

                    (b) “amount owing to the Crown” means a money amount owing to
                        the Crown under the Act, the regulations or an agreement;

                    (c) “Board” means the Alberta Energy and Utilities Board;

                    (d) “designated representative”, in relation to an agreement, means

                           (i) the person who is designated as the representative of the
                               lessee or lessees of the agreement, according to the
                               notice of the designation given to the Minister pursuant
                               to section 30.1 of the Act, or

                           (ii) the lessee of the agreement, if the agreement is held by
                                only one lessee who has not given the Minister a notice
                                of a designation of a representative pursuant to section
                                30.1 of the Act or has given the Minister a notice of the
                                revocation of a previous designation of a representative;

                    (e) “due date”, in relation to the payment of an amount owing to the
                        Crown, means



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ALTA. REG. 262/97                                                 MINES AND MINERALS

                           (i) the due date for the payment prescribed by the Act, the
                               regulations or an agreement, unless the payment is made
                               pursuant to a monthly invoice arrangement that provides
                               for a different due date for the payment,

                           (ii) the due date for the payment specified in the monthly
                                invoice arrangement, if the payment is made pursuant to
                                a monthly invoice arrangement, or

                          (iii) the due date for the payment specified in an invoice or
                                notice sent by the Minister, if no due date for the
                                payment is prescribed by the Act, the regulations or an
                                agreement;

                    (f) “official service address”, in relation to any person, means that
                        person’s official service address shown in the current notice
                        given by that person to the Minister pursuant to section 31 of
                        the Act;

                    (g) “petroleum and natural gas lease” means a lease granting rights
                        to petroleum or natural gas or both;

                    (h) “petroleum and natural gas licence” means a licence granting
                        rights to petroleum or natural gas or both;

                    (i) “prescribed”, in relation to a fee or rental, means prescribed by
                        this Regulation;

                    (j) “regulations” means this Regulation or any other regulations
                        under the Act;

                    (k) “royalty amount” means an amount owing to the Crown

                           (i) on account of a money royalty,

                           (ii) in respect of the Crown’s royalty share of a mineral
                                when disposed of by an agent, or

                          (iii) on account of royalty compensation;

                    (l) “spacing unit” means

                           (i) in relation to a well drilled or being drilled,

                               (A) the drilling spacing unit for the well prescribed by
                                   or pursuant to the Oil and Gas Conservation
                                   Regulations (AR 151/71), or

                               (B) where the Board has issued an order suspending the
                                   operation of Part 4 of the Oil and Gas Conservation
                                   Regulations (AR 151/71) in respect of the area in
                                   which the well is drilled or being drilled, the area
                                   that was, immediately before the effective date of


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ALTA. REG. 262/97                                                   MINES AND MINERALS

                                      the order, the drilling spacing unit prescribed for the
                                      well by or pursuant to those Regulations,

                                or

                            (ii) the area that would be the drilling spacing unit
                                 prescribed for a well by or pursuant to the Oil and Gas
                                 Conservation Regulations (AR 151/71) if the well were
                                 drilled and in the absence of any order of the Board
                                 suspending the operation of Part 4 of those Regulations
                                 in respect of that area.


                    Designated Representatives, Notices and Applications
Designation of   2(1) Subject to subsections (2) and (3), the following documents given
representative
                 to the Minister pursuant to section 30.1 of the Act shall be in a form
                 determined or approved by the Minister:

                     (a) a notice of the designation of a representative;

                     (b) a notice of the replacement of the designation of a
                         representative;

                     (c) a notice by the sole lessee of an agreement of the revocation of
                         the lessee’s designation of a representative.

                 (2) A statement respecting the designation of a representative in relation
                 to an agreement included in

                     (a) the application for the agreement made pursuant to section 16(a)
                         of the Act,

                     (b) the tender for the agreement, where the agreement is sold by
                         way of a sale by public tender pursuant to section 16(b) of the
                         Act,

                     (c) the registered transfer of part of the location of an agreement
                         that led to the issuance of the agreement, or

                     (d) a registered transfer of the agreement from a sole lessee who at
                         the time of registration had not designated a representative for
                         the agreement, to another person who on registration of the
                         transfer became the sole lessee of the agreement,

                 constitutes a notice to the Minister of the designation of that
                 representative in relation to that agreement pursuant to section 30.1 of
                 the Act.

                 (3) A statement respecting the replacement of the designation of a
                 representative in relation to an agreement included in a registered
                 transfer affecting that agreement constitutes a notice to the Minister of



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ALTA. REG. 262/97                                                     MINES AND MINERALS

                   the replacement of the representative in relation to the agreement
                   pursuant to section 30.1(4)(a) of the Act.

                   (4) Not more than one person may be designated pursuant to section
                   30.1 of the Act as a representative in relation to the same agreement.

                   (5) A notice of the designation of a representative given to the Minister

                       (a) in a form determined or approved pursuant to subsection (1)(a)
                           or (b), or

                       (b) in accordance with subsection (2) or (3),

                   is, as against the Crown, binding on the lessees or the lessee, as the case
                   may be, of the agreement to which the designation relates.


Official service   3(1) A notice of a person’s official service address given to the Minister
address
                   under section 31(1) of the Act

                       (a) shall be in the form determined or approved by the Minister,
                           and

                       (b) shall not show more than one official service address for that
                           person.

                   (2) A request to a person by the Minister pursuant to section 13(5)(d)(i)
                   of the Mines and Minerals Amendment Act, 1997 may be made to that
                   person in any manner provided for in section 4, as though it were a
                   notice to that person.


Giving of          4(1) Any notice that the Minister is required or authorized to give to any
notices, etc. by   person under the Act, the regulations or an agreement may be given in
the Minister
                   any of the following ways:

                       (a) by mail addressed to that person’s official service address or, if
                           that person has no official service address, to that person’s last
                           known address according to the records of the Department;

                       (b) by delivery of the notice to that person’s official service address
                           or, if that person has no official service address, to that person’s
                           last known address according to the records of the Department;

                       (c) by fax or e-mail transmission to that person in accordance with
                           an arrangement made between the Minister and that person
                           pursuant to subsection (3).

                   (2) If a notice is given by the Minister by mail in accordance with
                   subsection (1)(a),

                       (a) section 22.1 of the Interpretation Act does not apply to the
                           notice, and


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ALTA. REG. 262/97                                                     MINES AND MINERALS

                       (b) the notice shall be considered as being given on the day on
                           which it is delivered to the Canada Post Corporation.

                   (3) The Minister may make an arrangement with a person under which
                   that person agrees

                       (a) that the Minister may give all or any specified class of notices
                           to that person under the Act, the regulations or an agreement by

                                (i) fax transmission to that person, to a fax number
                                    specified by that person, or

                                (ii) e-mail transmission to that person, at an e-mail address
                                     specified by that person,

                          and

                       (b) that transmission of a notice to that person by fax or e-mail in
                           accordance with clause (a) will constitute sufficient service of
                           the notice on that person.

                   (4) Subsections (1) and (2) also apply, with the necessary changes, to
                   any letter, request, notification, invoice, demand or other document that
                   the Minister is required or authorized by the Act, the regulations or an
                   agreement to give, send or furnish to a designated representative or other
                   person.


Giving of          5(1) Where a person is required or authorized by the Act, the regulations
notices, etc. to   or an agreement to give a notice to the Minister, the notice may be given
the Minister
                   to the Minister in any of the following ways:

                       (a) by physical delivery to an office of the Department;

                       (b) by mail addressed to the Department;

                       (c) by fax transmission to the Department, to a fax number
                           specified by the Minister for notices of that kind;

                       (d) by e-mail transmission to the Department, at an e-mail address
                           specified by the Minister for notices of that kind.

                   (2) If a notice is given to the Minister by mail in accordance with
                   subsection (1)(b),

                       (a) section 22.1 of the Interpretation Act does not apply to the
                           notice, and

                       (b) the notice shall be considered as being given by mail to the
                           Minister on the day on which it is received in an office of the
                           Department.




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ALTA. REG. 262/97                                                    MINES AND MINERALS

                  (3) Where a provision of the Act, the regulations or an agreement
                  authorizes a person to give a notice to the Minister within a prescribed
                  period or before a prescribed deadline, a notice given by that person shall
                  be considered as being given to the Minister only if it is received by the
                  Department within that period or before that deadline.

                  (4) Subsections (1), (2) and (3) also apply, with the necessary changes,
                  to any application or other document that a person is required or
                  authorized by the Act, the regulations or an agreement to make or furnish
                  to the Minister, except that a transfer, security notice or other document
                  may not be submitted for registration under Part 8 of the Act by fax or e-
                  mail transmission.

                  (5) If a provision of another regulation is in conflict with or inconsistent
                  with this section, the provision of the other regulation prevails to the
                  extent of the conflict or inconsistency.


Applications to   6 Where the Act, the regulations or an agreement authorizes a lessee of
the Minister      an agreement to make an application to the Minister, then, unless
                  otherwise expressly provided by the regulations, the application may be
                  made only by

                      (a) the person who is the designated representative in relation to the
                          agreement, or

                      (b) a person authorized by the designated representative to make
                          the application.


                                                Agreements
Issuance of       7(1) For the purposes of the Act,
agreement
                      (a) an agreement applied for under section 16(a) of the Act is issued
                          when the Minister approves the application and the applicant
                          accepts the conditions, if any, to which the Minister’s approval
                          is subject,

                      (b) an agreement sold by way of public tender pursuant to section
                          16(b) of the Act is issued when the Minister publicly announces
                          the name of the successful tenderer for the agreement and the
                          tenderer has complied with the provisions in the sale notice
                          respecting preconditions for the issuance of the agreement, and

                      (c) an agreement issued pursuant to section 16(c) of the Act is
                          issued at the time provided for in the procedure determined by
                          the Minister under that section.

                  (2) For the purposes of section 20(5) of the Act, the prescribed date is
                  the date on which the agreement is mailed to the lessee and, in the
                  absence of proof to the contrary, the date of the letter accompanying the



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ALTA. REG. 262/97                                                   MINES AND MINERALS

                 agreement is deemed to be the date on which the agreement is mailed to
                 the lessee.

                 (3) Unless the Minister otherwise directs in a particular case, an
                 agreement shall not be issued unless the prescribed issuance fee and the
                 prescribed rental for the first year of the term of the agreement are
                 received by the Minister.


Agreements       8(1) Subject to subsection (2), an agreement shall not be issued to 2 or
issued to 2 or
more lessees
                 more lessees unless each of those lessees will be the holder of a specified
                 undivided interest in the agreement.

                 (2) An agreement may be issued to 2 or more lessees other than as
                 holders of specified undivided interests if each of them is an individual.

                 (3) Subsection (1) does not preclude the issuance of an agreement under
                 which 2 or more persons will be the lessees in respect of the same
                 specified undivided interest in the agreement if each of those lessees is
                 an individual.


Specified        9(1) The Minister may refuse to issue an agreement if any of the lessees
undivided        would hold less than a 1% undivided interest under the agreement.
interests

                 (2) The Minister may refuse to issue an agreement under which any
                 lessee is to hold a specified undivided interest in the agreement if the
                 interest

                     (a) is expressed otherwise than in decimal form, or

                     (b) is expressed in decimal form but to more than 7 decimal places.


Term of          10 Where an agreement is issued for a term of more than one year,
agreement
                     (a) the first year of the term commences on the date shown in the
                         agreement as its term commencement date and ends at the
                         expiration of the first anniversary of that term commencement
                         date, and

                     (b) each subsequent year of the term is a 12-month period expiring
                         on an anniversary of the term commencement date.


Surrender of     11(1) The lessee of an agreement may, in accordance with this section,
agreement
                     (a) surrender the agreement, or

                     (b) with the consent of the Minister, surrender the agreement as to
                         part of its location.

                 (2) A surrender referred to in subsection (1)


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ALTA. REG. 262/97                                                   MINES AND MINERALS

                     (a) must be submitted to the Minister in a form determined or
                         approved by the Minister, and

                     (b) is binding on the Crown and the lessee only if it is accepted by
                         the Minister, as evidenced by the Minister’s notification to the
                         lessee confirming the acceptance.

                 (3) Where a surrender referred to in subsection (1)

                     (a) is received by the Minister after an anniversary of the term
                         commencement date of the agreement, or

                     (b) is received by the Minister on or before an anniversary of the
                         term commencement date of the agreement but provides for an
                         effective date occurring after that anniversary date,

                 the Minister shall not accept the surrender unless the Minister receives
                 payment of the rental for the year of the term following that anniversary
                 date calculated on the basis of the area of the location as it stood on that
                 anniversary date.


Partial          12(1) A lessee may, with the consent of the Minister, transfer any part
transfers,       of the location of the lessee’s agreement.
divisions and
consolidations
of agreements    (2) The Minister, on application by the lessee of an agreement, may

                     (a) divide the lessee’s agreement into 2 or more agreements, or

                     (b) consolidate the lessee’s agreement with one or more other
                         agreements held by the lessee.

                 (3) Notwithstanding subsections (1) and (2), the Minister shall not
                 accept an application for

                     (a) the consent of the Minister to a transfer of part of the location of
                         a petroleum and natural gas licence during its initial term,

                     (b) the division of a petroleum and natural gas licence during its
                         initial term, or

                     (c) the consolidation of 2 or more petroleum and natural gas
                         licences during the initial term of any of them.


Amendment of     13 If, pursuant to the Act or the regulations,
agreement
                     (a) a description of the location in an agreement is amended, or

                     (b) an agreement is amended in respect of the rights granted under
                         it,




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ALTA. REG. 262/97                                                     MINES AND MINERALS

                  the Minister shall send a copy of the amendment to the lessee of the
                  agreement.


Cancellation of   14(1) Where the Minister cancels an agreement pursuant to section 44
agreement         of the Act, the Minister shall send to the person who was the designated
                  representative for the agreement immediately before it was cancelled, a
                  notification confirming the cancellation of the agreement.

                  (2) Where the Minister cancels a petroleum and natural gas licence or
                  lease as to part of its location pursuant to section 20(4) of the Petroleum
                  and Natural Gas Tenure Regulation (AR 263/97), the Minister shall send
                  a notification to the licensee or lessee, as the case may be, confirming the
                  cancellation in part of the agreement.


Commence-         15 For the purposes of section 8(1)(e)(i) of the Act, the effective date
ment of           of the surrender or cancellation of an agreement is prescribed as the date
reinstatement
application       of the notification from the Minister to the lessee confirming the
period            Minister’s acceptance of the surrender or confirming the cancellation, as
                  the case may be.


Persons           16(1) Where the lessee or one of the lessees of an agreement is a person
ineligible as
lessees
                  ineligible to be a lessee by reason of section 24 of the Act, a notice given
                  by the Minister to the ineligible person pursuant to section 24(4)(a) of
                  the Act must also be given to

                      (a) the designated representative in relation to the agreement, and

                      (b) each of the other lessees of the agreement, if it is held by 2 or
                          more lessees.

                  (2) Where the ineligibility of a corporation under section 24 of the Act
                  is the result of the dissolution of the corporation, a notice given by the
                  Minister pursuant to section 24(4)(b) of the Act must be given to the
                  corporation despite its dissolution at

                      (a) its official service address if it had given a notice to the Minister
                          containing that address, or

                      (b) in any other case, its last known address according to the
                          records of the Department.

                  (3) Unless the Minister otherwise directs in a particular case, an
                  individual under the age of 18 years is eligible to be the lessee or one of
                  the lessees of a metallic and industrial minerals licence under the
                  Metallic and Industrial Minerals Regulation (AR 66/93).




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ALTA. REG. 262/97                                                   MINES AND MINERALS

                                      Fees, Rentals and Interest
Prescribed       17 The fee payable to the Minister for any service described in the
fees             Schedule to this Regulation is the fee shown in the Schedule for that
                 service.


Fee accounts     18(1) The Minister may enter into an arrangement with a person under
                 which prescribed fees payable by that person in respect of the class of
                 services specified under the arrangement will be charged to that person’s
                 account on a continuing basis and on the conditions determined by the
                 Minister.

                 (2) If a prescribed fee is payable by a person during the period an
                 arrangement under subsection (1) is in effect and not suspended under
                 subsection (3), the fee shall be charged to that person’s account.

                 (3) If the Minister sends an invoice in respect of the amounts charged to
                 a person under an arrangement under this section and the total amount of
                 the invoice is not paid on or before the date specified in the invoice, the
                 Minister may suspend the arrangement with that person until all amounts
                 owing under it are paid in full.

                 (4) The Minister may terminate an arrangement with any person under
                 this section on the giving of at least one week’s notice to that person.


Monthly          19(1) Subject to subsection (3), the Minister may enter into an
invoice
arrangements
                 arrangement with any person under which the payment to the Crown of
                 any class of amounts owing to the Crown is to be made on the basis of
                 monthly invoices.

                 (2) Notwithstanding anything in an agreement, a monthly invoice
                 arrangement may, in respect of any class of amounts owing to the Crown
                 covered by the arrangement, provide for a due date for the payment of
                 amounts of that class that differs from the due date otherwise provided
                 for those payments by the regulations or the agreement.

                 (3) If a monthly invoice relates to payments of any amounts owing to the
                 Crown under one or more agreements, the arrangement shall be entered
                 into with the designated representative in relation to those agreements or
                 a person authorized to do so by the designated representative.


Annual rentals   20(1) The lessee of an agreement is liable to the Crown for the payment
                 of a rental for each year of the term of the agreement.

                 (2) For the purposes of this section,

                     (a) a year during which a petroleum and natural gas lease is
                         continued after the expiration of its term is deemed to be a year
                         of the term of the lease, and



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ALTA. REG. 262/97                                                     MINES AND MINERALS

                       (b) a year during which a petroleum and natural gas licence is
                           continued after the expiration of its intermediate term is deemed
                           to be a year of the term of the licence.

                   (3) Except in the case of an agreement referred to in section 54.1(5)(c)
                   of the Act, a rental for a year of the term of an agreement is payable at
                   the rate of $3.50 per year for each hectare in the area of the location of
                   the agreement, subject to a minimum of $50 per year.

                   (4) Subject to subsections (5) and (6), a rental for the 2nd or any
                   subsequent year of the term of an agreement

                       (a) is due and payable on the last day of the preceding year of the
                           term of the agreement, and

                       (b) shall be calculated on the basis of the area of the location of the
                           agreement as it stood on that due date.

                   (5) Subsection (4)(a) does not apply if the payment of the rental for the
                   year is to be made pursuant to a monthly invoice arrangement.

                   (6) Notwithstanding anything in an agreement,

                       (a)    the rental for the first year of the intermediate term of a
                             petroleum and natural gas licence, and

                       (b) the rental for any year of the term of a petroleum and natural gas
                           lease or licence that

                                (i) occurs during its continuation pursuant to section 15, 16
                                    or 17 of the Petroleum and Natural Gas Tenure
                                    Regulation (AR 263/97), and

                               (ii) is exempted by the Minister from the operation of
                                    subsection (4),

                   is due and payable on the date shown as the due date for its payment in
                   a notice given by the Minister to the lessee of the lease or licence, and
                   shall be calculated on the basis of the area of the location as it stood at
                   the beginning of that year.


Liability to the   21(1) If an amount owing to the Crown is not received in full by the
Crown for          Minister on or before the due date for its payment, interest is payable to
interest
                   the Crown by the person who owes that amount, computed in accordance
                   with this section.

                   (2) Interest payable under this section shall be computed as an amount
                   equal to 3% of

                       (a) the principal amount owing to the Crown, or




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ALTA. REG. 262/97                                                  MINES AND MINERALS

                    (b) if partial payment of that principal amount is received on or
                        before the due date for its payment, the portion of that principal
                        amount remaining unpaid on that due date.

                (3) If an amount of interest that would otherwise be payable in the
                absence of this subsection is $20 or less, no interest is payable.

                (4) This section does not apply to interest on an amount owing to the
                Crown in cases where provisions respecting the imposition of that
                interest are contained in some other regulation.


Crown’s         22(1) If a payment is made in respect of an amount owing to the Crown
liability for   in excess of the actual amount owing on the due date for its payment and
interest on
overpayments    the excess payment is wholly or primarily attributable to an error made
                by the Department, the excess amount is an “overpayment” for the
                purposes of this section.

                (2) If the Crown is liable to a person for an overpayment, interest is
                payable by the Crown to that person on the amount of the overpayment,
                computed in accordance with this section.

                (3) An amount of interest payable by the Crown under this section

                    (a) shall be computed from the later of

                            (i) the due date for payment of the amount owing to the
                                Crown to which the overpayment relates, and

                            (ii) the date on which the Minister received the
                                 overpayment,

                         continuing to the date of the requisition by the Department to
                         the Provincial Treasurer for the issuance of a cheque for the
                         overpayment and interest, and

                    (b) shall be computed for each day in the period referred to in
                        clause (a) at a rate of yearly interest that is 1% greater than the
                        rate of interest established by the Alberta Treasury Branches as
                        its prime lending rate on loans payable in Canadian dollars and
                        in effect on the first day of the month in which that day occurs.

                (4) If an amount of interest that would otherwise be payable in the
                absence of this subsection is $20 or less, no interest is payable under this
                section.

                (5) This section does not apply to the payment of interest on
                overpayments in cases where provisions respecting the payment of that
                interest are contained in some other regulation.




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ALTA. REG. 262/97                                                 MINES AND MINERALS

Application of   23(1) Subject to subsections (2) and (3), unless the Minister directs
payments         otherwise, if money is paid to the Crown in respect of an agreement, the
                 money shall be applied in the following order:

                     (a) first, goods and services tax payable under Excise Tax Act
                         (Canada) in respect of amounts owing to the Crown under the
                         agreement;

                     (b) 2nd, on fees owing by that person under the agreement;

                     (c) 3rd, on penalties owing by that person under the agreement;

                     (d) 4th, on interest owing by that person under the agreement;

                     (e) 5th, on rentals owing by that person under the agreement;

                     (f) 6th, on royalty amounts owing under the agreement.

                 (2) If the Minister sends to any person an invoice for one or more
                 amounts owing to the Crown, money paid to the Crown on account of
                 that invoice shall be applied in the following order:

                     (a) first, goods and services tax under the Excise Tax Act (Canada)
                         charged in the invoice;

                     (b) 2nd, interest owing in accordance with the invoice on the
                         principal amount of the invoice;

                     (c) 3rd, any unpaid balance of a previous invoice that is carried
                         forward in the current invoice;

                     (d) 4th, subject to clause (c), the principal amount of the invoice.

                 (3) Subsections (1) and (2) do not apply to payments of any class of
                 amounts owing to the Crown if another regulation provides for some
                 other order of application of those payments.


                                                General
Return of        24 Where
deposit or
security
                     (a) a deposit or security is furnished by the lessee of an agreement
                         to the Government pursuant to the Act or the regulations,

                     (b) the Minister subsequently registers a transfer of the agreement
                         or of a specified undivided interest in the agreement, and

                     (c) the Minister becomes obligated to return or refund all or part of
                         the deposit or security,

                 then, subject to section 45(4) of the Act, the deposit or security or the
                 part of the deposit or security, as the case may be, shall be returned or


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ALTA. REG. 262/97                                                    MINES AND MINERALS

                  refunded to the person who originally furnished the deposit or security
                  unless that person directs the Minister to return or refund it to some other
                  person.


Retention of      25 A person who is a lessee or a former lessee of an agreement shall
records
                  keep all records that come into that person’s possession or the possession
                  of any of that person’s agents and that are or were used for the purpose
                  of preparing any return or report required to be given to or filed with the
                  Minister by that person in relation to the agreement pursuant to the Act,
                  the regulations or the agreement.


Disclosure of     26(1) The Minister may make available any records, returns or other
information
                  information obtained under the Act, the regulations or an agreement

                      (a) to any person for the purpose of enforcing a law of Canada or
                          a province, or

                      (b) to a person employed in or acting on behalf of the Department
                          for the purpose of administering any enactment under the
                          administration of the Minister or evaluating, formulating or
                          administering a policy or program of the Department.

                  (2) The Minister may classify types of information obtained under the
                  Act, the regulations or agreements as non-confidential and may
                  systematically authorize the release to the public of information
                  classified as non-confidential.

                  (3) With the authorization of the Minister, confidential information
                  obtained under the Act, the regulations or agreements may be provided
                  or published in summarized or statistical form in such a manner that it is
                  not possible to relate the information to any identifiable person.

                  (4) A person employed or engaged in the administration of the Act may
                  communicate, disclose or make available records, returns or other
                  information received in respect of an agreement pursuant to the Act, the
                  regulations or the agreement to

                      (a) the person from whom the record, return or other information
                          was obtained, or

                      (b) a person who has the consent in writing of the person from
                          whom the record, return or other information was obtained.


Exceptions to     27(1) Section 33(1)(a) of the Act does not apply to a well or to the
section           installations and equipment, including casing, incidental to the well if
33(1)(a) of the
Act
                      (a) all or part of the spacing unit for the well continues under
                          another agreement,




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ALTA. REG. 262/97                                                 MINES AND MINERALS

                    (b) the Board notifies the Minister that, on the basis of evidence and
                        representations presented to it by one or more interested parties,

                            (i) the well should not be abandoned because it is or will be
                                used for some useful purpose, or

                           (ii) the well has evaluated a mineral, the rights to which are
                                granted by another agreement, by reason of having
                                penetrated a zone underlying the location of that other
                                agreement, where the surrendered or cancelled
                                agreement and that other agreement had a common
                                surface area,

                    (c) the agreement pursuant to which the well was drilled expires but
                        is renewed, or

                    (d) the agreement pursuant to which the well is drilled is cancelled
                        or expires and, as a consequence of the exercise of a right of
                        lease selection conferred by the agreement, the well is in the
                        location of a lease so selected.

                (2) Section 33(1)(a) of the Act does not apply to any installations or
                equipment, including casing, incidental to a well if, at the time of the
                expiration, surrender or cancellation of the agreement, the installations
                or equipment is being used in the operation of another well not affected
                by the expiration, surrender or cancellation.


Deemed areas    28 For the purposes of an agreement, a section, quarter-section and
                legal subdivision of land are deemed to contain 256 hectares, 64 hectares
                and 16 hectares respectively, unless the Minister directs otherwise in a
                particular case.


Mineral title   29 For the purposes of the Act,
transfers and
notifications
                    (a) a transfer of title referred to in section 12 of the Act is issued
                        when it is signed by the Minister, and

                    (b) a notification referred to in section 13 of the Act is issued when
                        it is signed by the Minister and delivered to the appropriate
                        Land Titles Office for registration.


                                   Consequential Amendments
Ammonite        30(1) The Ammonite Shell Regulation (AR 59/89) is amended
Shell           by this section.
Regulation
amended
                (2) Section 3 is amended

                    (a) in subsection (2) by striking out “the fee for the permit
                        prescribed in the General Regulation (Alta. Reg. 163/84)” and


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ALTA. REG. 262/97                                                MINES AND MINERALS

                       substituting “the application fee prescribed in the Schedule to
                       the Mines and Minerals Administration Regulation
                       (AR 262/97)”;

                    (b) by repealing subsection (3)(a) and substituting the
                        following:

                          (a) the application fee prescribed in the Schedule to the
                              Mines and Minerals Administration Regulation
                              (AR 262/97), and

                    (c) by repealing subsections (4) and (4.1).


Coal Royalty   31(1) The Coal Royalty Regulation (AR 295/92) is amended by
Regulation     this section.
amended

               (2) Section 8(2) is repealed and the following is substituted:

                      (2) If a lessee contravenes subsection (1) by failing to submit a
                      report on or before the deadline prescribed by or pursuant to that
                      subsection, the Minister may impose a pecuniary penalty on the
                      lessee by reason of the contravention, subject to the following:

                          (a) the Minister must give a notice to the lessee describing
                              the contravention, specifying the period within which
                              the report must be submitted to the Minister in order to
                              avoid liability for the penalty and specifying the penalty
                              for which the lessee will be liable if the report is not
                              submitted before the end of that period;

                          (b) the “default period” for the purposes of this subsection
                              is the period

                               (i) commencing on the day after the expiration of the
                                   period specified in the notice given pursuant to
                                   clause (a), and

                              (ii) ending on the day immediately before the day on
                                   which the report is submitted to the Minister;

                          (c) the notice shall not specify a penalty in excess of

                               (i) $10 000 in respect of the first day of the default
                                   period, or

                              (ii) $1000 in respect of the 2nd and each subsequent
                                   day of the default period;

                          (d) if the report is not submitted to the Minister within the
                              period specified in the notice, the lessee is liable to pay
                              to the Minister the penalty specified in the notice.



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ALTA. REG. 262/97                                                  MINES AND MINERALS

               (3) Section 9 is amended

                    (a) in subsection (1) by striking out “Notwithstanding section
                        7 of the General Regulation (Alta. Reg. 163/84), interest” and
                        substituting “Interest”;

                    (b) in subsection (2) by striking out “Notwithstanding section
                        8 of the General Regulation (Alta. Reg. 163/84), interest” and
                        substituting “Interest”.

                    (c) in subsection (3) by striking out “Notwithstanding section
                        7 of the General Regulation (Alta. Reg. 163/84), if” and
                        substituting “If”.


Metallic and   32(1) The Metallic and Industrial Minerals Regulation
Industrial     (AR 66/93) is amended by this section.
Minerals
Regulation
amended        (2) Section 5(2)(b) is repealed and the following is
               substituted:

                    (b) the application fee prescribed in the Schedule to the Mines and
                        Minerals Administration Regulation (AR 262/97).

               (3) Section 10(2)(b) is repealed and the following is
               substituted:

                    (b) the application fee prescribed in the Schedule to the Mines and
                        Minerals Administration Regulation (AR 262/97).

               (4) Section 15.1 is amended by striking out “Subject to section 6
               of the General Regulation (AR 163/84), the” and substituting “The”.

               (5) Section 18(b) is repealed and the following is substituted:

                    (b) the application fee prescribed in the Schedule to the Mines and
                        Minerals Administration Regulation (AR 262/97), and

               (6) Section 19 is repealed.

               (7) Section 23.1(b) is amended by striking out “, subject to
               section 6 of the General Regulation (AR 163/84),”.


Metallic and   33(1) The Metallic and Industrial Minerals Royalty Regulation
Industrial     (AR 350/93) is amended by this section.
Minerals
Royalty
Regulation     (2) Section 2 is repealed and the following is substituted:
amended
Returns                2(1) The holder of a lease or licence shall furnish to the Minister
respecting
royalty
                       written returns pertaining to the calculation of royalty reserved to
                       the Crown in right of Alberta under the lease or licence, by the
                       deadlines, in the manner and in respect of the periods determined


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ALTA. REG. 262/97                                                 MINES AND MINERALS

                      by the Minister and containing the information requested by the
                      Minister.

                      (2)If the holder of a lease or licence contravenes subsection (1)
                      by failing to furnish a return to the Minister before the deadline
                      determined by the Minister under that subsection, the Minister
                      may impose a pecuniary penalty on the holder by reason of the
                      contravention, subject to the following:

                           (a) the Minister must give a notice to the holder describing
                               the contravention, specifying the period within which
                               the return must be furnished in order to avoid liability
                               for the penalty and specifying the penalty for which the
                               lessee will be liable if the return is not furnished before
                               the end of that period;

                           (b) the “default period” for the purpose of this subsection is
                               the period

                                (i) commencing on the day after the expiration of the
                                    period specified in the notice given pursuant to
                                    clause (a), and

                               (ii) ending on the day immediately before the day on
                                    which the return is furnished to the Minister;

                           (c) the notice shall not specify a penalty in excess of

                                (i) $10 000 in respect of the first day of the default
                                    period, or

                               (ii) $1000 in respect of the 2nd and each subsequent
                                    day of the default period;

                           (d) if the return is not furnished to the Minister within the
                               period specified in the notice, the holder is liable to pay
                               to the Minister the penalty specified in the notice.


Natural Gas    34 The Natural Gas Royalty Regulation, 1994 (AR 351/93) is
Royalty        amended by repealing section 25(5).
Regulation,
1994 amended

Oil Sands      35(1) The Oil Sands Regulation (AR 228/91) is amended by
Regulation     this section.
amended

               (2) Section 2(1)(a) is repealed and the following is substituted:

                    (a) the application fee prescribed in the Schedule to the Mines and
                        Minerals Administration Regulation (AR 262/97), and

               (3) Section 4 is repealed.



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ALTA. REG. 262/97                                                MINES AND MINERALS


Oil Sands      36 The Oil Sands Royalty Regulation, 1997 (AR 185/97) is
Royalty        amended by repealing section 33(6).
Regulation,
1997 amended

                                               Repeal
Repeal         37 The General Regulation (AR 163/84) is repealed.


                                                Expiry
Expiry         38 For the purpose of ensuring that this Regulation is reviewed for
               ongoing relevancy and necessity, with the option that it may be repassed
               in its present or an amended form following a review, this Regulation
               expires on December 31, 2002.


                                        Coming into Force
Coming into    39 This Regulation comes into force on January 1, 1998.
force


                                            SCHEDULE

                                       PRESCRIBED FEES


                        Fees Related to Agreements

               1    Fee for processing a request to have an
               agreement sold at a sale by public tender, but only
               if

                    (a) the agreement is offered at a sale as a
                        result of the request,

                    (b) the agreement is not sold at the sale, and

                    (c) payment of the fee is demanded by the
                        Minister
                                                                     $500

               2 Application for an agreement, other than an
               application referred to in item 3                     $500

               3    Application for a metallic and industrial
               minerals licence or a permit to conduct surface
               collection of ammonite shell                          $ 50

               4 Issuance of a new agreement resulting from a
               division of an agreement or the registration of a
               transfer of part of the location of an agreement
                                                                     $500

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ALTA. REG. 262/97                                                 MINES AND MINERALS

             5 Late application fee referred to in section
             11(3)(a)(ii) or 14(5)(b)(iii) or (6)(c)(ii) of the
             Petroleum and Natural Gas Tenure Regulation
             (AR 263/97)
                                                                      $5000

             6     Acceptance fee referred to in section              $25 per hectare,
             17(5)(c)(ii) of the Petroleum and Natural Gas            subject to a $1600
             Tenure Regulation (AR 263/97)                            minimum

             7 Reinstatement of an agreement pursuant to
             section 8(1)(e) of the Act                               $5000



                    Registration Fees

             8(1) Registration of a security notice, a notice of
             the assignment of all or part of the security interest
             that is the subject of a registered security notice,
             or a notice of the postponement of a registered
             security interest, for each agreement against which
             the notice is registered
                                                                      $50

             (2) Registration of a notice referred to in section
             141(1)(a) or (d) of the Act                              Nil

             (3) Registration of a transfer                           Nil

             9(1) Registration under the Builders’ Lien Act of
             a statement of lien or certificate of lis pendens, for
             each agreement against which the document is
             registered
                                                                      $50

             (2) Registration under the Builders’ Lien Act of
             a discharge of a registered statement of lien or
             certificate of lis pendens                               Nil


                    Fees for Searches and Information

             10(1) Written search of an agreement or other
             non-confidential document                                $6

             (2) Surcharge for each agreement or document
             searched, where the search is requested and
             provided on a rush basis                                 $10

             11   Ad hoc report from the Land Status
             Automated System                                         $30




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               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998



               12 Surcharge for an electronic disc containing a        $20
               search referred to in item 10(1) or a report referred
               to in item 11

               13 Written search of a mineral township register,
               for each township researched                            $20

               14 Historical search of agreements                      $40 per hour,
                                                                       $40 minimum

               15 Electronic data respecting agreements and
               other non--onfidential documents and derived
               from the Land Status Automated System:
                                                                       $500
                   (a) test tape

                   (b) complete tape containing data as of
                       month-end                                       $1250

                   (c) supplementary updated tape, available
                       every 2 weeks                                   $500

                   (d) access to daily electronic files                $650 per month


                        Miscellaneous Fees

               16 Certified copy of a document                         $10

               17    Provision of a copy of a Department
               Information Letter or Information Bulletin to a
               person to whom a copy had been previously
               provided without charge                                 $2

               18 Copy of mylar base map                               $20


                             Alberta Regulation 263/97

                              Mines and Minerals Act

         PETROLEUM AND NATURAL GAS TENURE REGULATION

                                                                Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 643/97) pursuant to sections 5 and 93
of the Mines and Minerals Act.

                                           Table of Contents

                                             Interpretation

               Definitions                                                             1
               Interpretation provisions related to wells                              2
               Crown spacing units                                                     3


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ALTA. REG. 263/97                                             MINES AND MINERALS

                                         Rights Granted

             Rights granted by an agreement                                    4

                                            Part 1
                              Petroleum and Natural Gas Licences

             Term of licence                                                   5
             Initial term of licence                                           6
             Maximum area of location                                          7
             Location in more than one Region                                  8
             Validating wells                                                  9
             Grouping of licences                                             10
             Selection and validation of location for intermediate term       11
             Licence continuation and offset requirements                     12
             Waiver of rental for licences under former Regulation            13

                                            Part 2
                               Petroleum and Natural Gas Leases

                                     Continuation of Leases

             Application for continuation of lease                            14
             Qualifications for continuation                                  15
             Continuation by reason of drilling                               16
             Continuation as to potentially productive part of the location   17
             Notice respecting non-productivity                               18

                                      Offset Requirements

             Interpretation of offset requirement provisions                  19
             Offset notice                                                    20
             Review of offset notice                                          21
             Liability to pay offset compensation                             22
             Calculation and payment of offset compensation                   23

                                              Part 3
                                             General

             Withdrawal of Crown from unit agreement                          24
             Proof of ownership of freehold rights                            25
             Time extensions related to drilling problems                     26

                                           Transitional

             Interpretation of transitional provisions                        27
             Licences under former Regulation                                 28
             Pre-1998 leases                                                  29
             Continuation under section 96 of the Act                         30
             Continuation under section 97 of the Act                         31
             Non-productivity notices                                         32
             Offset drilling obligations                                      33
             Variation of transition rules                                    34



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ALTA. REG. 263/97                                                  MINES AND MINERALS

                                Repeal, Expiry and Coming into Force

              Repeal                                                                     35
              Expiry                                                                     36
              Coming into force                                                          37

              Schedules


                                            Interpretation
Definitions   1 In this Regulation,

                    (a) “Act” means the Mines and Minerals Act;

                    (b) “Board” means the Alberta Energy and Utilities Board;

                    (c) “Crown spacing unit” means a spacing unit that qualifies as a
                        Crown spacing unit by reason of section 3;

                    (d) “deepest productive zone”, with reference to a spacing unit
                        containing all or part of a location approved for continuation
                        pursuant to section 15(1), means the deepest of the zones in the
                        spacing unit to which the approval extends under section 15(2);

                    (e) “former Regulation” means the Petroleum and Natural Gas
                        Agreements Regulation (AR 188/85);

                    (f) “freehold spacing unit” means,

                           (i) in relation to Alberta, a spacing unit that is not a Crown
                               spacing unit, or

                           (ii) in relation to a jurisdiction adjoining Alberta, the area
                                allocated to a well drilled in land in that jurisdiction for
                                the purpose of drilling that well or producing petroleum
                                or natural gas from that well;

                    (g) “freehold well” means

                           (i) in relation to Alberta, a well the spacing unit for which
                               is a freehold spacing unit;

                           (ii) in relation to a jurisdiction adjoining Alberta, a well
                                drilled in land in that jurisdiction;

                    (h) “gas storage agreement” means a contract or agreement referred
                        to in section 54.1(5)(b) or (c) of the Act;

                    (i) “lease” means a lease of rights to petroleum or natural gas or
                        both issued pursuant to the Act or the former Act;

                    (j) “licence” means a petroleum and natural gas licence issued by
                        the Minister under the former Regulation or this Regulation;

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ALTA. REG. 263/97                                                  MINES AND MINERALS

                    (k) “licensee” means the holder of a licence according to the
                        records of the Department;

                    (l) “location”, in relation to a licence or lease, means

                            (i) the subsurface underlying the surface area of the tract
                                described in the licence or lease as its location, or

                           (ii) where the licence or lease grants rights to petroleum or
                                natural gas or both in some but not all of the subsurface,
                                the subsurface area or areas underlying the surface area
                                of the tract described in the licence or lease as its
                                location and in respect of which the rights are granted;

                (m) “measured depth”, in relation to a well, means the measured
                    length of the well-bore of the well;

                    (n) “offset zone” means

                            (i) in relation to a freehold spacing unit, a zone underlying
                                the freehold spacing unit and identified in an offset
                                notice in accordance with section 20(2)(a), or

                           (ii) in relation to a Crown spacing unit laterally adjoining a
                                freehold spacing unit that is the subject of an offset
                                notice, the zone underlying the Crown spacing unit that
                                is the same as the zone identified in the offset notice in
                                accordance with section 20(2)(a);

                    (o) “Plains Region”, “Northern Region” and “Foothills Region”
                        mean the respective areas of Alberta described in Schedule 1;

                    (p) “prescribed”, in relation to a fee or rental, means prescribed by
                        the Mines and Minerals Administration Regulation
                        (AR 262/97);

                    (q) “producing well” means a well that is considered by the
                        Minister to be a producing well on the basis of the records of the
                        Board and other information available to the Minister;

                    (r) “productive”, in relation to a well or zone, means capable, in the
                        opinion of the Minister, of producing petroleum or natural gas
                        from the well or zone in paying quantity;

                    (s) “Region” means the Plains Region, the Northern Region or the
                        Foothills Region;

                    (t) “rig release date”, with respect to a well, means the rig release
                        date for the well according to the records of the Board;

                    (u) “spacing unit” means

                            (i) in relation to a well drilled or being drilled,



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ALTA. REG. 263/97                                                     MINES AND MINERALS

                                  (A) the drilling spacing unit for the well prescribed by
                                      or pursuant to the Oil and Gas Conservation
                                      Regulations (AR 151/71), or

                                  (B) where the Board has issued an order suspending the
                                      operation of Part 4 of the Oil and Gas Conservation
                                      Regulations (AR 151/71) in respect of the area in
                                      which the well is drilled or being drilled, the area
                                      that was, immediately before the effective date of
                                      the order, the drilling spacing unit prescribed for the
                                      well by or pursuant to those Regulations,

                                 or

                              (ii) the area that would be the drilling spacing unit
                                   prescribed for a well by or pursuant to those Regulations
                                   if the well were drilled and in the absence of any order
                                   of the Board suspending the operation of Part 4 of those
                                   Regulations in respect of that area;

                       (v) “unit agreement”, except in section 24, includes a unit operation
                           order;

                      (w) “validating well” means a well that qualifies as a validating well
                          under section 9;

                       (x) “zone” means a stratum or series of strata considered by the
                           Minister to be a zone for the purposes of this Regulation.

Interpretation     2 For the purposes of this Regulation,
provisions
related to wells
                       (a) a reference to “petroleum and natural gas rights” in the location
                           of a licence or lease means petroleum or natural gas or both in
                           the location, the rights to which are granted by the licence or
                           lease;

                       (b) a reference to a well that will evaluate or has evaluated
                           petroleum and natural gas rights in the location of a licence or
                           lease means a well whose results are expected to provide or
                           have provided, as the case may be, evidence of the presence or
                           absence of petroleum or natural gas in the location, the rights to
                           which are granted by the licence or lease;

                       (c) a well is in the location of a licence or lease or is drilled or has
                           been drilled in the location of a licence or lease if the well is
                           drilled under the authority of the licence or lease and all or any
                           part of the well-bore is situated in the location of the licence or
                           lease;

                       (d) where the location of a licence or lease consists of some but not
                           all of the subsurface areas underlying the surface area of the
                           tract described in the licence or lease as its location, a well is
                           being drilled in the location of that licence or lease if

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ALTA. REG. 263/97                                                  MINES AND MINERALS

                            (i) the well is being drilled under the authority of the
                                licence or lease with the intention of penetrating the
                                location, and

                           (ii) the well licence issued pursuant to the Oil and Gas
                                Conservation Act for the well authorized the drilling of
                                the well to a zone in the location;

                    (e) a well is outside the location of a licence or lease if no part of
                        the well-bore is situated in the location or any other subsurface
                        area underlying the surface area of the tract described in the
                        licence or lease as its location;

                    (f) if a well is productive from more than one spacing unit, each
                        of those spacing units shall be deemed to have a separate
                        productive well in it;

                    (g) if a producing well produces petroleum or natural gas from
                        more than one spacing unit, each spacing unit shall be deemed
                        to have a separate producing well in it.

Crown spacing   3(1) For the purposes of this Regulation, a spacing unit is a Crown
units           spacing unit in respect of petroleum or natural gas if the title to the
                petroleum or natural gas, as the case may be, in 50% or more of the area
                of the spacing unit, as determined under subsection (2), is owned by the
                Crown in right of Alberta.

                (2) Where the Crown owns the title to the petroleum or natural gas in
                less than 100% of the area of a spacing unit, the determination of
                whether or not the spacing unit is a Crown spacing unit shall be made
                in accordance with the following:

                    (a) if the spacing unit consists of a section, quarter-section or legal
                        subdivision of land, the whole of the area of the spacing unit
                        shall be deemed to contain 256, 64 or 16 hectares respectively;

                    (b) if the spacing unit does not consist of the whole of a section,
                        quarter-section or legal subdivision of land, the area of the
                        spacing unit shall be the area determined by the Minister for the
                        purposes of this section;

                    (c) for the purposes of this subsection, the “Crown portion” of a
                        spacing unit is the portion of the area of the spacing unit in
                        respect of which the Crown in right of Alberta owns the title to
                        petroleum or natural gas or both, calculated in accordance with
                        this subsection;

                    (d) if the Crown portion of a spacing unit consists of the whole of
                        the location of a licence or lease, the area of the Crown portion
                        is the number of hectares shown in the description of the
                        location in the licence or lease;




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ALTA. REG. 263/97                                                   MINES AND MINERALS

                      (e) if the Crown portion of a spacing unit consists of a part only of
                          the location of a licence or lease, the area of the Crown portion
                          of the spacing unit is the number of hectares in that part of the
                          location used by the Minister in the calculation of the total area
                          shown in the description of the location in the licence or lease;

                      (f) if the number of hectares in the Crown portion of the spacing
                          unit, as determined under clauses (d) and (e), equals 50% or
                          more of the whole of the area of the spacing unit, the spacing
                          unit is a Crown spacing unit under subsection (1).


                                             Rights Granted
Rights granted    4(1) Subject to subsection (2) and any terms, conditions or exceptions
by an             contained in the agreement, an agreement granting rights to petroleum
agreement
                  or natural gas or both conveys

                      (a) the exclusive right to drill for and recover petroleum and natural
                          gas in the location of the agreement in respect of which rights
                          are granted by the agreement, and

                      (b) the right to remove from the location any petroleum and natural
                          gas recovered pursuant to clause (a).

                  (2) An agreement referred to in subsection (1) does not grant the right
                  to

                      (a) oil sands, or

                      (b) natural gas in a coal seam that the Minister has authorized the
                          lessee of a coal lease to recover under section 65(2) of the Act.


                                                  PART 1

                          PETROLEUM AND NATURAL GAS LICENCES
Term of licence   5(1) For the purposes of this Regulation,

                      (a) the initial term of a licence is the initial term of the licence
                          referred to in section 6(1), and includes any extension of that
                          term under this Regulation or section 8(1)(h) of the Act,

                      (b) the intermediate term of a licence is the 5-year period beginning
                          on the commencement date prescribed under subsection (2), and
                          includes any extension of that term under this Regulation or
                          section 8(1)(h) of the Act, and

                      (c) the combined periods referred to in clauses (a) and (b) are
                          prescribed as the term of a licence for the purposes of sections
                          92 and 93 of the Act.

                  (2) The commencement date of the intermediate term of a licence is

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ALTA. REG. 263/97                                                     MINES AND MINERALS

                      (a) subject to clause (b), the date of the expiration of the initial term
                          of the licence as shown in the licence, or

                      (b) the most recent anniversary of that expiration date, if the initial
                          term, as shown in the licence, is extended for a period of more
                          than one year.

Initial term of   6(1) A licence shall be issued for an initial term of
licence
                      (a) 2 years, if the location is in the Plains Region,

                      (b) 4 years, if the location is in the Northern Region, or

                      (c) 5 years, if the location is in the Foothills Region.

                  (2) If

                      (a) the drilling of a validating well is commenced in the location of
                          a licence before the expiration of the initial term of the licence,

                      (b) the rig release date for the well occurs after the expiration of the
                          initial term of the licence, and

                      (c) the drilling operations for the well are conducted diligently and
                          continuously to the satisfaction of the Minister,

                  the initial term of the licence is extended to the expiration of the
                  one-month period following the rig release date for the well.

                  (3) If a licensee commences the drilling of any other well in the location
                  of the licence during the period of any extension of the term under
                  subsection (2), except a well that is, by reason of section 26, deemed to
                  be the continuation of the drilling of a well referred to in subsection (2),
                  the well does not qualify as a validating well.

Maximum area      7 The maximum area of the location of a licence is
of location
                      (a) 15 sections in the Plains Region,

                      (b) 32 sections in the Northern Region, and

                      (c) 36 sections in the Foothills Region.

Location in       8(1) Where the location of a licence lies within more than one of the
more than one     Regions, then, for the purposes of this Regulation, the location is deemed
Region
                  to be in the Region in which the greatest part of the location is situated.

                  (2) Subject to subsection (1), if the location of a licence

                      (a) lies within 2 or 3 Regions and the parts of the location within
                          each of the Regions are equal in area, or

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ALTA. REG. 263/97                                                   MINES AND MINERALS

                    (b) lies within 3 Regions and the parts within 2 of the Regions are
                        equal in area,

             then, for the purposes of this Regulation, the location shall be deemed to
             be wholly within whichever of those Regions would result in the longest
             term for the licence by reason of section 6(1) if the whole of the location
             were in that Region.

Validating   9(1) Subject to section 6(3) and subsection (5) of this section, the
wells
             following qualify as validating wells in respect of a licence:

                    (a) a well that is drilled in the location of the licence during its
                        initial term to a measured depth of at least 150 metres for the
                        purpose of evaluating petroleum and natural gas rights in the
                        location of the licence;

                    (b) a well drilled in the location of the licence if

                            (i) the well is re-entered during its initial term,

                           (ii) the well is either

                               (A) drilled to a measured depth of at least 150 metres
                                   beyond the total measured depth of the well prior to
                                   the re-entry, or

                               (B) whipstocked from a point in the well-bore and
                                   drilled beyond that point to a measured depth of at
                                   least 150 metres,

                              and

                          (iii) the well is drilled for the purpose of evaluating
                                petroleum and natural gas rights in the location of the
                                licence;

                    (c) a well drilled outside the location of the licence in a spacing unit
                        only part of which is in the location of the licence if

                            (i) no part of the remainder of the area of the spacing unit
                                is within the location of any other licence that is still in
                                its initial term,

                           (ii) the well is drilled during the initial term of the licence to
                                a measured depth of at least 150 metres, and

                          (iii) the well, in the opinion of the Minister, will evaluate
                                petroleum and natural gas rights in the location of the
                                licence;

                    (d) a well approved by the Minister as a validating well pursuant to
                        subsection (2), (3) or (4).



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ALTA. REG. 263/97                                                  MINES AND MINERALS

              (2) The Minister may approve a well as a validating well in respect of a
              licence if

                    (a) the licensee applies for the approval before the drilling of the
                        well is commenced,

                    (b) the well is drilled during the initial term of the licence in a
                        spacing unit no part of which is within the location of the
                        licence, and

                    (c) the Minister is of the opinion that the well will evaluate
                        petroleum and natural gas rights in the location of the licence.

              (3) The Minister may approve a well as a validating well in respect of a
              licence if

                    (a) the well was drilled in the location of the licence and is
                        re-entered during the initial term of the licence,

                    (b) the well does not otherwise qualify as a validating well under
                        subsection (1)(b), and

                    (c) the Minister is of the opinion that the well, by reason of the
                        drilling operations, provides significant new information
                        relating to the evaluation of petroleum and natural gas rights in
                        the location of the licence.

              (4) The Minister may approve a well as a validating well in respect of a
              licence if

                    (a) the well was drilled in the location of the licence and is
                        re-entered during the initial term of the licence,

                    (b) the well does not otherwise qualify as a validating well under
                        subsection (1)(b) or (3), and

                    (c) the well becomes a productive well.

              (5) If a well referred to in subsection (1)(b) is re-entered more than once
              during the initial term of a licence, the well may qualify as a validating
              well under subsection (1)(b) only on the basis of one re-entry operation.

Grouping of   10(1) In this section and section 11, “grouping well”, in relation to a
licences
              group of licences approved under this section, means a well that

                    (a) is drilled in the location of either of the grouped licences, if the
                        drilling of the well commenced while the group was in effect,
                        and

                    (b) in the opinion of the Minister, evaluates petroleum and natural
                        gas rights in the locations of both licences.




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ALTA. REG. 263/97                                                 MINES AND MINERALS

             (2) The Minister may, on application, approve the grouping of a licence
             with one other licence if

                    (a) both licences are in their initial terms when the application is
                        received by the Minister,

                    (b) the application states that

                            (i) the drilling of a well in one of the grouped locations will
                                be commenced after the receipt by the Minister of the
                                application and before the earlier of the expiration dates
                                of the initial terms of the licences to be grouped, and

                           (ii) the well will evaluate petroleum and natural gas rights in
                                the locations of both licences,

                    (c) the distance between the locations of the licences to be grouped
                        is 3.2 kilometres or less, and

                    (d) neither licence is part of any other group then in effect under
                        this section.

             (3) An application under subsection (2) may be made only by

                    (a) the designated representative for the licences sought to be
                        grouped, where both licences have the same designated
                        representative, or

                    (b) in any other case, a person authorized to do so by the designated
                        representatives for both of the licences.

             (4) A group may contain land in more than one Region.

             (5) When the Minister approves a group under this section, the group is
             effective as of the date on which the application for the approval was
             received by the Minister.

             (6) A group approved under this section terminates on the sooner of

                    (a) the expiration of the initial term of either licence, and

                    (b) the receipt by the Minister of a request for the termination

                            (i) by the licensee, or

                           (ii) where the licences are held by different licensees, by the
                                designated representative for either licence on behalf of
                                both licensees or by a person authorized to do so by the
                                designated representatives for both licences.

             (7) If




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ALTA. REG. 263/97                                                     MINES AND MINERALS

                    (a) the drilling of a grouping well is commenced in the location of
                        one of the grouped licences before the earlier of the expiration
                        dates of the initial terms of the grouped licences,

                    (b) the date of the expiration of the initial term of one or both of the
                        licences occurs before the rig release date for the well, and

                    (c) the drilling operations for the grouping well are conducted
                        diligently and continuously to the satisfaction of the Minister,

                the initial term of that licence or the initial terms of those licences, as the
                case may be, are extended to the end of the one-month period following
                the rig release date for the well.

Selection and   11(1) Subject to this Regulation, a licensee may apply to the Minister
validation of
location for
                for validation of the land qualified to remain in the location of the
intermediate    licensee’s licence at the commencement of the intermediate term of the
term            licence.

                (2) An application under subsection (1) must

                    (a) be received by the Minister within the 3-month period before
                        the expiration of the initial term of the licence,

                    (b) identify the validating wells and grouping wells drilled,

                    (c) provide sufficient evidence to demonstrate that each of the wells
                        is a validating well or grouping well, as the case may be,

                    (d) show the licensee’s selection of the land requested for
                        validation, and

                    (e) be accompanied by payment of the prescribed rental for the first
                        year of the intermediate term.

                (3) If an application has not been made pursuant to subsection (1) within
                the 3-month period referred to in subsection (2)(a) and the Minister is of
                the opinion that a well has been drilled that is or might be a validating
                well or grouping well in respect of the licence,

                    (a) the Minister shall give a notice to the licensee

                              (i) stating that no application had been received by the
                                  Minister within the 3-month period, and

                              (ii) stating that the licensee may make an application under
                                   subsection (1) within the one-month period following
                                   the date of the notice on payment of the prescribed late
                                   application fee,

                        and




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ALTA. REG. 263/97                                                  MINES AND MINERALS

                    (b) the licensee may make the application in accordance with the
                        notice.

               (4) In granting an application made under subsection (1), the Minister

                    (a) shall determine in accordance with Schedule 2 the number of
                        sections to remain in the location of the licensee’s licence at the
                        commencement of the intermediate term of the licence, and

                    (b) may determine the configuration of the location of the licence
                        at the commencement of its intermediate term.

               (5) An application under this section may relate to both licences in a
               group approved under section 10 and, in that event, the following rules
               apply:

                    (a) if a well identified in the application is a grouping well, the
                        Minister’s determinations under subsection (4), to the extent
                        that they are based on that grouping well, may relate to either or
                        both of the locations of the grouped licences;

                    (b) if a well identified in the application is a grouping well and the
                        licence locations are in different Regions, the Minister’s
                        determination under Schedule 2, to the extent that it is based on
                        that grouping well, shall be made on the basis of the Region in
                        which the well is situated.

               (6) On making a decision in respect of an application under this section,
               the Minister shall give a notice of the decision to the licensee and, on the
               commencement date of the intermediate term of the licence, the location
               of the licence ceases to include any land that is not validated under this
               section as land that qualified to remain in the location of the licence at
               the commencement of its intermediate term.

               (7) Where an application is made under this section on the basis of a
               validating well approved under section 9(4) then, notwithstanding
               subsection (4) of this section, the land that may be validated under this
               section on the basis of that well shall consist of the part of the location
               within the spacing unit for the validating well, down to the base of the
               deepest zone from which the validating well is productive.

Licence        12(1) Sections 14 to 18 apply, with the necessary changes, to licences
continuation   and for that purpose
and offset
requirements
                    (a) a reference in those sections to a lessee or a lease shall be read
                        as a reference to a licensee or a licence respectively, and

                    (b) a reference in those sections to the term of a lease shall be read
                        as a reference to the intermediate term of a licence.

               (2) Sections 19 to 23 apply, with the necessary changes, to licences
               during their intermediate terms and the period of continuation beyond
               their terms, and for that purpose a reference in those sections to a lessee

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ALTA. REG. 263/97                                                    MINES AND MINERALS

                  or a lease shall be read as a reference to a licensee or a licence
                  respectively.

Waiver of         13(1) This section applies only to licences issued pursuant to the former
rental for        Regulation.
licences under
former
Regulation        (2)Subject to subsections (3) to (5), if a licensee commences the drilling
                  of a validating well or grouping well in the location of the licence, no
                  rental is payable for each year of the remainder of the initial term of the
                  licence, commencing with the year of the initial term following that in
                  which the drilling commenced, with respect to that portion of the total
                  area of the location of the licence that would, in the opinion of the
                  Minister, form the area for an application under section 11 if the
                  application was made on the rig release date for the well.

                  (3) If the rig release date for the validating well or grouping well has
                  occurred and the area for which an application may be made under
                  section 11 is less than or greater than the portion of the total area in
                  respect of which no rental is payable by virtue of subsection (2), the
                  rental shall be adjusted by the Minister, effective as of the year of the
                  initial term following that in which the drilling commenced, so that the
                  area in respect of which no rental is payable is the actual area for which
                  an application may be made under section 11 on the rig release date for
                  the well.

                  (4) If an adjustment is made by the Minister pursuant to subsection (3),
                  the Minister or the licensee, as the case may be, shall pay to the other the
                  amount of the overpayment or underpayment, as the case may be, no
                  later than one month after the adjustment is made.

                  (5) This section does not apply if the drilling of the validating well or
                  grouping well commences during the last year of the initial term of the
                  licence.


                                                   PART 2

                            PETROLEUM AND NATURAL GAS LEASES

                                         Continuation of Leases
Application for   14(1) A lessee may, in accordance with this Regulation and
continuation of
lease
                      (a) within the last year of the term of the lease, or

                      (b) with the consent of the Minister, at any time before the last year
                          of the term of the lease,

                  apply to the Minister for the Minister’s approval of the continuation of
                  the lease pursuant to section 15, 16 or 17(2)(a) or any combination of
                  them.




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ALTA. REG. 263/97                                                  MINES AND MINERALS

             (2) If the Minister disagrees in whole or in part with an application made
             in accordance with subsection (1), the Minister shall give a notice to the
             lessee respecting the disagreement and specifying the period of time
             within which the lessee is entitled to respond to the notice.

             (3) The Minister shall not make a final decision in respect of an
             application for continuation approval made under subsection (1)

                    (a) until after the expiration of the term of the lease, or

                    (b) if a notice was given under subsection (2), until after the
                        expiration of the term of the lease or the expiration of the period
                        specified in the notice, whichever event occurs last.

             (4) On making a decision in respect of an application for continuation
             approval, the Minister shall give a notice of the decision to the lessee
             and, subject to subsections (5), (6) and (7) of this section and section 17,
             the lease after the expiration of its term ceases to include any part of the
             location or any subsurface area in all or part of the location that is not
             approved for continuation by reason of the decision.

             (5) Where no application is made under subsection (1) in respect of a
             lease before the expiration of its term or where an application is made
             under subsection (1) but omits a reference to any part of the location,

                    (a) the Minister shall, as soon as practicable after the expiration
                        date, review the Department’s records respecting the lease to
                        determine whether all or part of the location must be approved
                        for continuation by reason of subsection (7) or could be
                        approved for continuation pursuant to

                            (i) section 15(1)(a) and (2)(a) on the basis of a producing
                                well,

                           (ii) any other provisions of section 15 except subsections
                                (1)(e) and (2)(e), or

                          (iii) section 16(2) on the basis of a qualifying well referred to
                                in section 16(1)(a)(i),

                        if the lessee were to apply for the approval in compliance with
                        a letter sent to the lessee under clause (b),

                    (b) if the Minister determines under clause (a) that all or part of the
                        location could be approved for continuation, the Minister shall
                        send the lessee a letter that

                            (i) describes the Minister’s determination,

                           (ii) states that the lessee may, within the one-month period
                                following the date of the notice, apply to the Minister for
                                approval of continuation of the lease in accordance with
                                the Minister’s determination, and



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ALTA. REG. 263/97                                                   MINES AND MINERALS

                          (iii) states that the application must be accompanied by
                                payment of the prescribed rental for the first year
                                following the expiration of the term of the lease in
                                respect of the part of the location specified in the
                                application and of the prescribed late application fee,

                       and

                    (c) if the lessee makes an application in compliance with the letter,
                        the Minister shall approve the continuation of the lease in
                        accordance with the application.

             (6) Where no application is made under subsection (1) in respect of a
             lease before the expiration of its term or where an application is made
             under subsection (1) but omits a reference to any part of the location,

                    (a) the lessee may apply to the Minister in accordance with clauses
                        (b) and (c) for continuation of the lease after the expiration of its
                        term as to all or part of its location pursuant to

                             (i) section 15(1)(a) and (2)(a), or

                             (ii) section 16(2) on the basis of a qualifying well referred to
                                  in section 16(1)(a)(iii),

                        except any part of the location that is referred to in the letter
                        sent by the Minister to the lessee pursuant to subsection (5)(b),

                    (b) the application must be made before the end of the 60-day
                        period following

                             (i) the date of the letter sent by the Minister to the lessee
                                 pursuant to subsection (5)(b),

                             (ii) the date of a report sent by the Minister to the lessee
                                  respecting the expiration of the term of the lease or the
                                  part of the location of the lease, as the case may be, or

                          (iii) the date of a notification by the Minister to the lessee
                                indicating the Minister’s intention to advise the Board of
                                the need to abandon a well in the location,

                        whichever date occurs last,

                    (c) the application must be accompanied by

                             (i) the rental for the first year following the expiration of
                                 the term of the lease in respect of the part of the location
                                 specified in the application,

                             (ii) the prescribed late application fee, and

                          (iii) evidence sufficient to demonstrate that the well qualifies
                                under clause (a),

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ALTA. REG. 263/97                                                     MINES AND MINERALS

                          and

                       (d) if the lessee makes an application under this subsection in
                           compliance with clauses (a), (b) and (c), the Minister shall
                           approve the continuation of the lease as to

                                (i) the spacing unit for the well down to the base of the
                                    productive zone that is stratigraphically the deepest in
                                    that spacing unit, where the application is made pursuant
                                    to clause (a)(i), or

                                (ii) the location or the part of the location, as the case may
                                     be, contained in the section of land in which the
                                     qualifying well is drilled, where the application is made
                                     pursuant to clause (a)(ii).

                   (7) If the Minister determines under subsection (5)(a) that all or part of
                   the location or any subsurface areas in all or part of the location are
                   qualified for continuation

                       (a) under section 15(1)(b) and (2)(b), or

                       (b) under section 16(2) on the basis of a qualifying well referred to
                           in section 16(1)(a)(i),

                   the Minister shall approve that part of the location or that subsurface area
                   for continuation and notify the lessee accordingly.

                   (8) The Minister may not approve the continuation or further
                   continuation of a lease under this Part except on the basis of

                       (a) an application authorized by and made in accordance with this
                           Part,

                       (b) an acceptance of an offer made in accordance with section 17,
                           or

                       (c) compliance with the Minister’s obligations under subsection
                           (7).

Qualifications     15(1) Subject to section 14 and subsections (2) and (3) of this section,
for continuation
                   the Minister, in accordance with this Regulation, shall approve the
                   continuation of a lease after the expiration of its term to the extent that
                   the location is within any or all of the following:

                       (a) the spacing unit for a productive well;

                       (b) a spacing unit all or part of which is within the unit area of a
                           unit agreement to which the lease is subject;

                       (c) a spacing unit laterally adjoining the spacing unit for a freehold
                           well if the lessee, in accordance with this Regulation and before
                           the expiration of the term of the lease, has notified the Minister

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ALTA. REG. 263/97                                                 MINES AND MINERALS

                        in writing that the lessee elects to pay offset compensation in
                        respect of the location or the part of the location within the
                        spacing unit;

                    (d) a spacing unit all or part of which is within the area of a gas
                        storage agreement to which the lease is subject;

                    (e) a spacing unit all or part of which is productive from a zone in
                        the location.

               (2) The Minister’s approval under subsection (1), in relation to a spacing
               unit containing the location or any part of the location, shall be granted
               down to the base of whichever of the zones described in the following
               clauses is stratigraphically the deepest in that spacing unit:

                    (a) the deepest zone from which the well is productive, if
                        continuation is approved under subsection (1)(a) in relation to
                        that spacing unit;

                    (b) the deepest zone that is subject to a unit agreement, where
                        continuation is approved under subsection (1)(b) in relation to
                        that spacing unit;

                    (c) the offset zone from which the freehold well is producing
                        petroleum or natural gas, if continuation is approved under
                        subsection (1)(c) in relation to that spacing unit;

                    (d) the deepest zone that is subject to a gas storage agreement, if
                        continuation is approved under subsection (1)(d) in relation to
                        that spacing unit;

                    (e) the deepest productive zone, if continuation is approved under
                        subsection (1)(e) in relation to that spacing unit.

               (3) If the Minister approves the continuation of a lease after the
               expiration of its term under section 16 as to all or part of the location,
               this section does not apply to the lease or to the part of the location, as
               the case may be, while the lease is continued under section 16.

Continuation   16(1) For the purposes of this section,
by reason of
drilling
                    (a) a well is a “qualifying well” in relation to a lease if the well
                        qualifies under any of the following subclauses at the expiration
                        of the term of the lease or the expiration of a continuation
                        period of the lease, as the context requires:

                           (i) a well that is being drilled in the location of the lease or
                               in a section of land containing all or part of the location
                               of the lease;

                           (ii) a well that is being drilled outside the location of the
                                lease and, in the opinion of the Minister, will evaluate



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ALTA. REG. 263/97                                                  MINES AND MINERALS

                                petroleum and natural gas rights in the location of the
                                lease;

                          (iii) a well that has been drilled in the location of the lease or
                                in a section of land containing all or part of the location
                                of the lease, but in respect of which the 3-month period
                                following the rig release date for the well has not yet
                                expired;

                           (iv) a well that has been drilled outside the location of the
                                lease and, in the opinion of the Minister, has evaluated
                                petroleum and natural gas rights in the location of the
                                lease, but in respect of which the 3-month period
                                following the rig release date for the well has not yet
                                expired;

                    (b) a well shall be construed as being drilled at the expiration of the
                        term of a lease or at the expiration of a continuation period of a
                        lease, as the context requires, if the rig release date for the well
                        has not yet occurred at that expiration date;

                    (c) an “initial continuation period” in relation to a lease is the
                        period of continuation referred to in subsection (4) and includes
                        any extension of that period granted under subsection (8);

                    (d) a “further continuation period” in relation to a lease is a period
                        of further continuation referred to in subsection (5) and includes
                        any extension of that period granted under subsection (8);

                    (e) a “continuation period” in relation to a lease means the initial
                        continuation period of the lease or a further continuation period
                        of the lease.

             (2) Subject to section 14, if at the expiration of the term of a lease there
             are one or more qualifying wells in relation to the lease, the Minister
             shall approve the continuation of the lease after the expiration of its term
             with respect to the whole or part of its location in accordance with
             subsection (3).

             (3) The following rules apply with respect to applications for
             continuation approval under subsection (2):

                    (a) subject to clause (d), the application must be made pursuant to
                        clause (b) or (c) of this subsection and not a combination of
                        both;

                    (b) where the application is based on a qualifying well referred to
                        in subsection (1)(a)(i) or (iii), the lessee may apply for approval
                        of continuation under this clause in accordance with the
                        following:

                            (i) if the whole of the location, less any part in respect of
                                which an application is made for approval of
                                continuation under section 15 or 17(2)(a), contains an

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ALTA. REG. 263/97                                                 MINES AND MINERALS

                                area not exceeding 5 sections, the lessee may apply for
                                approval of continuation of the lease with respect to the
                                whole or any part of that area;

                           (ii) if the whole of the location, less any part in respect of
                                which an application is made for approval of
                                continuation under section 15 or 17 (2)(a), contains an
                                area greater than 5 sections, the lessee may apply for
                                approval of continuation of the lease with respect to the
                                portion of that area, not exceeding 5 sections, selected
                                by the lessee in the lessee’s application;

                    (c) the lessee may apply for approval of continuation as to the
                        whole or any part of the location, if the application is
                        accompanied by technical data that, in the opinion of the
                        Minister, demonstrates that the qualifying well will evaluate or
                        has evaluated petroleum and natural gas rights in the location or
                        the part of the location of the lease sought to be continued under
                        this clause;

                    (d) if the Minister disagrees with an application under clause (c)
                        and sends a notice to the lessee respecting the disagreement
                        pursuant to section 14(2), the lessee may, in response to that
                        notice, apply instead for approval of continuation under clause
                        (b), if the lessee is eligible to apply under clause (b).

             (4) Where a lease is approved for continuation pursuant to subsection
             (2) as to the whole or part of its location, the lease expires with respect
             to the location or the part of the location so continued

                    (a) at the end of the 6-month period following

                            (i) the rig release date for the qualifying well, or

                           (ii) where there are 2 or more qualifying wells, the last of
                                the rig release dates for those wells,

                    or

                    (b) at the end of any extension of that period granted pursuant to
                        subsection (8),

             subject to being further continued pursuant to subsection (5).

             (5) Where a lease is approved for continuation pursuant to subsection
             (2) for its initial continuation period, the Minister shall approve one or
             more further continuation periods for the lease if in the case of each
             further continuation period the following requirements are met:

                    (a) an application for approval of the further continuation period
                        must be made to the Minister before the expiration of the initial
                        continuation period or the expiration of the then current further
                        continuation period, as the case may be;



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ALTA. REG. 263/97                                                  MINES AND MINERALS

                    (b) there must be at least one qualifying well in relation to the lease
                        at the expiration of the initial continuation period or the then
                        current further continuation period, as the case may be.

             (6) Where the location or part of the location is approved for
             continuation pursuant to subsection (2), the area so approved remains the
             same during any further continuation period except to the extent that it
             is reduced by reason of the approval of continuation of part of the
             location pursuant to section 15 or by reason of a surrender.

             (7) Where a lease is approved for further continuation pursuant to
             subsection (5), the period of further continuation expires

                    (a) at the end of the 3-month period following

                            (i) the rig release date for the well, or

                            (ii) where there are 2 or more qualifying wells, the last of
                                 the rig release dates for those wells,

                       or

                    (b) at the end of any extension of that period granted pursuant to
                        subsection (8).

             (8) If a lease is approved for continuation for an initial continuation
             period or a further continuation period, the Minister may from time to
             time grant an extension of that continuation period subject in the case of
             each extension to the following:

                    (a) the lessee must apply to the Minister for the extension before
                        the continuation period expires;

                    (b) the application will be granted only if the Minister considers the
                        extension warranted in the circumstances.

             (9) If a lease is further continued pursuant to subsection (5) for one or
             more further continuation periods, the lease expires at the end of the
             further continuation period or the last of the further continuation periods,
             as the case may be, unless it is approved for continuation under section
             15 as a result of an application under subsection (10).

             (10) Before a lease expires at the end of a continuation period by reason
             of subsection (4) or (9), the lessee may apply for approval of the further
             continuation of the lease pursuant to section 15 as to all or any part of the
             location, as the case may be, and for that purpose section 14 applies, with
             the necessary changes, as though the expiration of the continuation
             period were the expiration of the term of the lease.




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ALTA. REG. 263/97                                                   MINES AND MINERALS

Continuation      17(1) In this section,
as to
potentially
productive part       (a) “offer notice” means a notice referred to in subsection (4);
of the location
                      (b) “potentially productive part of the location”, in relation to a
                          lease, means

                              (i) a part of the location of the lease in which one or more
                                  potentially productive zones occur, or

                              (ii) a subsurface area lying stratigraphically below the base
                                   of the deepest productive zone in all or part of the
                                   location of the lease and in which one or more
                                   potentially productive zones occur;

                      (c) “potentially productive zone” means a zone that is, in the
                          opinion of the Minister, potentially capable of producing
                          petroleum or natural gas or both in paying quantity.

                  (2) The Minister may approve the continuation of a lease in respect of
                  a potentially productive part of the location pursuant to this section on
                  the basis of

                      (a) an application made in accordance with subsection (3), or

                      (b) an acceptance made in response to an offer notice given to the
                          lessee.

                  (3) An application referred to in subsection (2)(a)

                      (a) must be made by the lessee before the expiration of the term of
                          the lease in accordance with section 14(1) to (4), and

                      (b) shall show the potentially productive part of the location in
                          respect of which the approval of continuation is sought.

                  (4) Where

                      (a) an application is made under section 14 before the expiration of
                          the term of the lease for approval of the continuation of the
                          lease pursuant to section 15 or 16 or both, and

                      (b) the Minister disagrees with the application in whole or in part
                          but considers any part of the location or any subsurface area in
                          all or part of the location not approved for continuation under
                          section 15 or 16 to be a potentially productive part of the
                          location,

                  the Minister, by a notice given to the lessee in accordance with
                  subsection (5), may offer to approve the continuation of the lease as to
                  the potentially productive part of the location.

                  (5) An offer notice



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ALTA. REG. 263/97                                                  MINES AND MINERALS

                    (a) shall contain the Minister’s offer and describe the potentially
                        productive part of the location and the potentially productive
                        zone or zones in it,

                    (b) shall state that the lessee may accept the Minister’s offer for the
                        continuation of the lease in respect of all or part of the
                        potentially productive part of the location described in the offer
                        notice,

                    (c) shall state that the acceptance of the offer must be accompanied
                        by

                            (i) the rental for any part of the location in respect of which
                                the rental has not yet been paid for the first year
                                following the expiration of the term of the lease, and

                           (ii) the prescribed acceptance fee,

                    (d) may prescribe any other requirements respecting the offer or
                        any conditions on which the Minister may approve continuation
                        under this section, and

                    (e) if a notice is given to the lessee pursuant to section 14(2), shall
                        be included in or accompany that notice.

             (6) If an application referred to in subsection (2)(a) is granted by the
             Minister or the lessee accepts the Minister’s offer in accordance with the
             offer notice, the Minister may approve the continuation of the lease as to

                    (a) the potentially productive part of the location, or

                    (b) a portion of the potentially productive part of the location
                        described in the offer notice, as determined by the Minister, if
                        the lessee’s acceptance relates to less than the whole of the
                        potentially productive part of the location,

             for a period of one year from the expiration of the term of the lease and
             on the terms and conditions the Minister prescribes.

             (7) Where an acceptance is made in response to an offer notice, an
             approval of continuation granted pursuant to subsection (6) is effective
             as of the expiration of the term of the lease.

             (8) If a continuation approval is granted pursuant to subsection (6), the
             lease expires with respect to the potentially productive part of the
             location so continued at the end of the one-year period unless it is
             approved for further continuation under section 15 or 16 as a result of an
             application referred to in subsection (9).

             (9) Before a lease expires with respect to the potentially productive part
             of the location at the end of the one-year period pursuant to subsection
             (8), the lessee may apply for approval for the further continuation of the
             lease pursuant to section 15 or 16 as to all or any portion of the
             potentially productive part of the location and for that purpose section 14

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ALTA. REG. 263/97                                                  MINES AND MINERALS

               applies, with the necessary changes, as though the expiration of the
               one-year period were the expiration of the term of the lease.

Notice         18(1) The Minister may give a lessee written notice in accordance with
respecting     this section if
non-
productivity
                    (a) the lease is continued pursuant to section 15(1)(a) or (e) as to all
                        or any part of its location in a spacing unit and the Minister
                        considers that the deepest productive zone in the spacing unit is
                        then no longer productive,

                    (b) the lease is continued pursuant to section 15(1)(b) as to all or
                        part of its location in a spacing unit and the deepest productive
                        zone in the spacing unit is then no longer subject to a unit
                        agreement,

                    (c) the lease is continued pursuant to section 15(1)(c) as to all or
                        part of its location in a Crown spacing unit and the freehold well
                        concerned has, for a continuous 6-month period, ceased to
                        produce petroleum or natural gas from the zone that is the same
                        as the deepest productive zone in the Crown spacing unit, and
                        the Minister considers the zone in the freehold spacing unit to
                        be no longer productive, or

                    (d) the lease is continued pursuant to section 15(1)(d) as to all or
                        part of the location in a spacing unit and the deepest productive
                        zone in the spacing unit is then no longer subject to a gas
                        storage agreement.

               (2) In this section, “subsurface portion”, in relation to a location or part
               of a location of a lease contained in a spacing unit referred to in a notice
               given under this section, means the portion of the subsurface in that
               spacing unit that lies stratigraphically between

                    (a) the base of the zone specified in the notice and within that
                        spacing unit, and

                    (b) the base of the deepest productive zone in that spacing unit.

               (3) Subject to subsection (4), a notice under this section shall relate to

                    (a) the location or the part of the location contained in the spacing
                        unit referred to in subsection (1)(a), where the notice is given
                        pursuant to subsection (1)(a),

                    (b) the location or the part of the location contained in the spacing
                        unit referred to in subsection (1)(b), where the notice is given
                        pursuant to subsection (1)(b),

                    (c) the location or the part of the location contained in the Crown
                        spacing unit referred to in subsection (1)(c), where the notice is
                        given pursuant to subsection (1)(c), or



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ALTA. REG. 263/97                                                MINES AND MINERALS

                    (d) the location or the part of the location contained in the spacing
                        unit referred to in subsection (1)(d), where the notice is given
                        pursuant to subsection (1)(d).

             (4) A notice under this section may be confined to a subsurface portion
             of the location or part of the location to which the notice relates by
             reason of subsection (3).

             (5) A notice under this section shall state that, after the expiration of one
             year following the date on which the notice is given, the lease will expire
             as to the whole or part of the location to which the notice relates or the
             subsurface portion to which the notice relates, as the case may be, except
             to the extent that it is continued by reason of subsection (9).

             (6) The Minister may from time to time extend the one-year period
             under a notice given pursuant to subsection (1) if

                    (a) the lessee applies for the extension before the expiration of the
                        one-year period or of the previous extension, as the case may
                        be, and

                    (b) the Minister considers the extension to be warranted in the
                        circumstances,

             and, on the granting of the extension, a reference in subsection (8) or (9)
             to a one-year period shall, in relation to the lease, be deemed to be a
             reference to the extended period.

             (7) The Minister may at any time withdraw a notice given under this
             section

                    (a) in its entirety,

                    (b) with respect to one or more of the spacing units to which the
                        notice relates, or

                    (c) with respect to all or part of the subsurface portion in one or
                        more of the spacing units to which the notice relates.

             (8) If a notice is given to a lessee pursuant to this section then, subject
             to subsection (9), the lease expires at the end of the one-year period
             referred to in the notice as to the whole or part of the location or the
             subsurface portion, as the case may be, to which the notice relates.

             (9) Before a lease expires in respect of all or part of its location or a
             subsurface portion, as the case may be, at the end of the one-year period
             pursuant to subsection (8), the lessee may apply for approval of the
             continuation of the lease pursuant to section 15 or 16 as to the location
             or the part of the location or the subsurface portion, as the case may be,
             or any lesser area or subsurface portion, and for that purpose section 14
             applies, with the necessary changes, as though the expiration of the
             one-year period were the expiration of the term of the lease.




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ALTA. REG. 263/97                                                   MINES AND MINERALS

                                         Offset Requirements
Interpretation   19(1) In this section and sections 20 to 23,
of offset
requirement
provisions           (a) “offset drilling obligation” means the requirements described in
                         section 20(2)(b) and contained in an offset notice;

                     (b) “offset notice” means a notice given pursuant to section 20(1);

                     (c) “offset well” means a well required to be completed and put on
                         production by a lessee pursuant to an offset notice or allowed to
                         be completed and put on production by the lessee pursuant to
                         section 21(3)(d);

                     (d) “solution gas” means the gaseous component of petroleum that
                         is separated from crude oil after the recovery of the petroleum
                         from a well;

                     (e) “3-month notice period”, in relation to an offset notice, means
                         the 3-month period following the date of the notice and any
                         extension of that period granted under section 21 of this
                         Regulation or section 8(1)(g) of the Act.

                 (2) In this section and sections 20 to 23, the definitions of “natural gas”
                 and “petroleum” in section 90(2) of the Act do not apply.

                 (3) Where a freehold spacing unit laterally adjoining a Crown spacing
                 unit has

                     (a) a producing well completed in more than one zone, or

                     (b) 2 or more producing wells each completed in one or more
                         zones,

                 an offset notice pertaining to that freehold spacing unit may relate to and
                 identify each of those zones and, in that case, references in this section
                 and sections 20 to 23 to an offset zone shall be read as references to each
                 of those zones.

Offset notice    20(1) The Minister may give a notice to a lessee in accordance with this
                 section where

                     (a) there is a producing well completed in a zone in a freehold
                         spacing unit laterally adjoining a Crown spacing unit containing
                         all or part of the location of the lessee’s lease, and

                     (b) there is no well producing petroleum or natural gas from the
                         same zone in the Crown spacing unit.

                 (2) An offset notice shall

                     (a) identify the zone in the freehold spacing unit to which the offset
                         notice relates,

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ALTA. REG. 263/97                                                 MINES AND MINERALS

                    (b) require the lessee to

                            (i) drill a well to the offset zone in the Crown spacing unit
                                and determine whether or not that offset zone is
                                productive, and

                           (ii) if the offset zone in that Crown spacing unit is
                                productive, complete the well and commence the
                                production of petroleum or natural gas from that offset
                                zone,

                        before the end of the 3-month notice period, and

                    (c) describe the lessee’s alternative course of action under
                        subsection (3)(a) and the circumstances described in subsection
                        (3)(b) and (c) in which the lessee’s offset drilling obligation
                        need not be fulfilled.

             (3) A lessee to whom an offset notice is given

                    (a) may defer the lessee’s offset drilling obligation by notifying the
                        Minister in writing, within the 3-month notice period, that the
                        lessee elects to pay offset compensation in accordance with
                        sections 22 and 23;

                    (b) need not fulfil the lessee’s offset drilling obligation if, within
                        the 3-month notice period, the lessee surrenders the lease or the
                        part of the location of the lease within the Crown spacing unit,
                        or surrenders the lease with respect to the part of the location
                        down to the base of the offset zone in the Crown spacing unit,
                        excepting

                            (i) each zone in which a producing well is completed, and

                           (ii) each zone that is subject to a unit agreement or a gas
                                storage agreement;

                    (c) need not fulfil the lessee’s offset drilling obligation if, before
                        the end of the 3-month notice period,

                            (i) the freehold well is abandoned,

                           (ii) the freehold well is abandoned in the zone or zones to
                                which the offset notice relates,

                          (iii) the Board makes an order that reduces the size of the
                                spacing unit for the freehold well with the result that the
                                reduced spacing unit containing the freehold well no
                                longer laterally adjoins the Crown spacing unit, or

                          (iv) the offset zone underlying the location or part of the
                               location within the Crown spacing unit becomes subject
                               to a unit agreement or gas storage agreement.



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ALTA. REG. 263/97                                                  MINES AND MINERALS

                (4) Where a lessee does not comply with an offset notice and the
                lessee’s offset drilling obligation is not deferred pursuant to subsection
                (3)(a) or need not be fulfilled by reason of subsection (3)(b) or (c), the
                Minister may, subject to subsection (5), cancel the lease with respect to
                the part of the location of the lease down to the base of the offset zone
                within the Crown spacing unit.

                (5) The Minister may not cancel a lease under subsection (4) in respect
                of any zones in the Crown spacing unit that, since the date of the notice,
                either

                    (a) produced petroleum or natural gas from a producing well, or

                    (b) became subject to a unit agreement or a gas storage agreement.

                (6) Where, after an offset notice is given, the Board makes an order that
                has the effect of changing the area of the Crown spacing unit referred to
                in the offset notice into smaller spacing units, the offset notice is deemed
                to be amended to refer to the smaller Crown spacing unit or units
                laterally adjoining the freehold spacing unit.

Review of       21(1) A lessee to whom an offset notice is given may apply to the
offset notice   Minister for a review of the decision to give the notice, or of any
                requirement contained in the offset notice, by filing the application with
                the Minister within one month after the date of the notice.

                (2) An application under this section must show either

                    (a) that the offset notice was not authorized by section 20(1), or

                    (b) the relief sought by the applicant under subsection (3)(b), (c) or
                        (d) and the grounds on which the relief is sought.

                (3) On concluding a review under this section, the Minister may

                    (a) where the applicant claims that the giving of the offset notice
                        was not authorized by section 20(1),

                            (i) confirm the decision to give the offset notice, or

                            (ii) withdraw the offset notice,

                    (b) withdraw the offset notice if the Minister is satisfied, on the
                        basis of the evidence provided by the applicant, that the
                        withdrawal of the offset notice is warranted in the
                        circumstances,

                    (c) extend the 3-month notice period where the Minister considers
                        the extension warranted in the circumstances,

                    (d) consent to the fulfilment of the lessee’s offset drilling obligation
                        by



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ALTA. REG. 263/97                                                     MINES AND MINERALS

                               (i) completing an existing well in the offset zone in the
                                   Crown spacing unit, and

                               (ii) commencing the production of petroleum or natural gas
                                    from that offset zone,

                            before the end of the 3-month notice period,

                       (e) consent to the fulfilment of the lessee’s offset drilling obligation
                           by

                               (i) drilling a well to the offset zone in a part of the location
                                   other than in the Crown spacing unit and determining
                                   whether or not the offset zone is productive, and

                               (ii) if the offset zone is productive, completing the well and
                                    commencing the production of petroleum or natural gas
                                    from that offset zone,

                            before the end of the 3-month notice period, or

                        (f) consent to a surrender pursuant to section 20(3)(b) that excepts
                            a productive zone in addition to the excepted zones referred to
                            in section 20(3)(b)(i) and (ii).

                   (4) A decision by the Minister under subsection (3) to withdraw an
                   offset notice does not preclude the Minister from giving another offset
                   notice relating to the same Crown spacing unit.

Liability to pay   22(1) A lessee is liable to the Crown for the payment of offset
offset             compensation if
compensation

                       (a) the lessee is given an offset notice and notifies the Minister in
                           accordance with section 20(3)(a) of the lessee’s election to pay
                           offset compensation, or

                       (b) the Minister gives a notice to the lessee pursuant to subsection
                           (2) requiring the lessee to pay offset compensation.

                   (2) Where a lessee has fulfilled the lessee’s offset drilling obligation by
                   completing and putting on production a well in the offset zone in the
                   Crown spacing unit, the Minister may give a notice to a lessee requiring
                   the lessee to pay offset compensation where

                       (a) the offset well in the Crown spacing unit has not produced
                           petroleum or natural gas from the offset zone for a period of at
                           least 3 consecutive months, or

                       (b) the Minister is of the opinion that the production of petroleum
                           or natural gas from that well over a specified period is unduly
                           or unjustifiably less than the production of petroleum or natural
                           gas from the offset zone in the freehold spacing unit during the
                           same period.

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ALTA. REG. 263/97                                                   MINES AND MINERALS

             (3) A lessee to whom a notice is given pursuant to subsection (2) may
             apply to the Minister, within the one-month period following the date of
             the notice, for a review of the Minister’s decision to give the notice and,
             on concluding the review, the Minister may

                    (a) confirm the decision,

                    (b) withdraw the notice if the Minister, on the basis of the evidence
                        provided by the applicant, considers the withdrawal of the
                        notice warranted in the circumstances, or

                    (c) specify a month later than the month specified in the notice for
                        the purposes of subsection (4)(b).

             (4) The liability of a lessee to pay offset compensation commences with

                    (a) the month following the month in which the 3-month notice
                        period expires, where the liability arises under subsection (1)(a),
                        or

                    (b) the month specified in the notice given to the lessee under
                        subsection (2), where the liability arises under subsection (1)(b).

             (5) The liability of a lessee to pay offset compensation ends as of the
             first day of the month in which any of the following dates occurs:

                    (a) the date on which a well commences production of petroleum
                        or natural gas from the offset zone in the Crown spacing unit;

                    (b) the date on which the Minister receives from the lessee a
                        surrender that is later accepted by the Minister and that
                        surrenders

                            (i) the lessee’s lease or the part of the location of the lease
                                containing the Crown spacing unit, or

                           (ii) the part of the location of the lease within the Crown
                                spacing unit down to the base of the offset zone,
                                excepting each zone lying stratigraphically above the
                                offset zone that is either productive or is subject to a unit
                                agreement or gas storage agreement;

                    (c) the date specified by the Minister, where the freehold well has,
                        for a period of at least 6 consecutive months, ceased to produce
                        petroleum or natural gas, as the case may be, from the offset
                        zone in the freehold spacing unit if the Minister considers the
                        offset zone to be no longer productive;

                    (d) the date on which the freehold well, according to the Board’s
                        records, is abandoned in its entirety or in the offset zone;

                    (e) the effective date of an order of the Board that reduces the area
                        of the spacing unit for the freehold well with the result that the



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ALTA. REG. 263/97                                                 MINES AND MINERALS

                        spacing unit for the freehold well no longer laterally adjoins the
                        Crown spacing unit;

                    (f) the effective date on which the offset zone in the Crown spacing
                        unit becomes subject to a unit agreement or a gas storage
                        agreement;

                    (g) the date on which the Minister receives an application under
                        subsection (6), if the application is approved.

               (6) Notwithstanding subsection (3), the lessee may apply to the Minister,
               at any time after the liability for offset compensation commences, to
               have the lessee’s liability terminated and, on considering the application
               and the lessee’s evidence, the Minister may direct that the liability be
               terminated or may refuse to grant the application.

               (7) If a Crown spacing unit laterally adjoins more than one freehold
               spacing unit each of which contains a well producing petroleum or
               natural gas from the same zone, the liability of a lessee to pay offset
               compensation applies in respect of each of those freehold wells and for
               that purpose a reference in this section or section 23 to a freehold well
               shall, in relation to that Crown spacing unit, be read as referring to each
               of those freehold wells.

Calculation    23(1) Offset compensation payable by a lessee
and payment
of offset
compensation        (a) for any month in the first 12-month period during which the
                        lessee’s liability for offset compensation arises under section
                        22(4) shall be an amount equal to ½ of the value of the Crown’s
                        royalty share of petroleum or natural gas, that would have been
                        payable to the Crown if the freehold well had instead produced
                        the petroleum or natural gas during that month from the offset
                        zone in the Crown spacing unit,

                    (b) for any month after the first 12-month period shall be an amount
                        equal to the value of the Crown’s royalty share of petroleum or
                        natural gas that would have been payable to the Crown if the
                        freehold well had instead produced the petroleum or natural gas
                        during that month from the offset zone in the Crown spacing
                        unit,

                    (c) shall be reduced by the amount of any deductions allowed under
                        subsection (3), and

                    (d) shall be paid in the manner and at the times prescribed by this
                        section.

               (2) For the purposes of subsection (1)(a) and (b),

                    (a) the value of the Crown’s royalty share of petroleum for any
                        month shall, in respect of crude oil, be calculated by using the
                        new oil par price prescribed for that month under the Petroleum
                        Royalty Regulation (AR 248/90), and

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ALTA. REG. 263/97                                                   MINES AND MINERALS

                     (b) the value of the Crown’s royalty share of natural gas and
                         solution gas for any month shall be calculated by using 80% of
                         the Gas Reference Price prescribed by the Minister pursuant to
                         the Natural Gas Royalty Regulation, 1994 (AR 351/93) for that
                         month, with no deductions for any costs or allowances incurred
                         in gathering, processing or reprocessing.

                 (3) Where a lessee is liable for the payment of offset compensation in
                 respect of any month by reason of a notice given under section 22(2), the
                 amount of the offset compensation for that month shall be reduced by the
                 following amounts:

                     (a) the amount representing the value to the Crown, as determined
                         by the Alberta Petroleum Marketing Commission, of crude oil
                         recovered from the offset well and delivered to the Commission
                         or its agent at a field delivery point in that month;

                     (b) the amount obtained by multiplying the quantity, in gigajoules,
                         of the Crown’s royalty share of natural gas and solution gas
                         recovered from the offset well in that month by 80% of the Gas
                         Reference Price for the month.

                 (4) A lessee who is liable to pay offset compensation shall make each
                 payment to the Minister no later than 30 days after being sent an invoice
                 for the amount by the Minister.

                 (5) If a lessee, no later than 3 months after the date of the Minister’s
                 invoice sent under subsection (4), provides proof satisfactory to the
                 Minister that the average price received in the month for crude oil
                 produced from the freehold well is less than the new oil par price referred
                 to in subsection (2)(a), the value of the Crown’s royalty share of crude
                 oil shall be determined using the average price received in the month for
                 crude oil produced from the freehold well, instead of the new oil par
                 price referred to in subsection (2)(a).


                                                 PART 3

                                                GENERAL
Withdrawal of    24(1) In this section,
Crown from
unit agreement
                     (a) “unit agreement” means a unit agreement as defined in the Act;

                     (b) “unit operations”, in relation to a unit agreement, means any
                         operations or activities conducted for the purpose of producing
                         petroleum or natural gas pursuant to the unit agreement or any
                         other operations or activities conducted for the purpose of
                         developing or exploiting petroleum or natural gas pursuant to
                         the unit agreement;

                     (c) “unit operator” means the person who is the unit operator under
                         a unit agreement according to the records of the Department.



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ALTA. REG. 263/97                                                MINES AND MINERALS

             (2) If no unit operations have been conducted under a unit agreement for
             a period of at least 12 consecutive months, the Minister may give a
             notice to

                    (a) the unit operator, and

                    (b) the persons who, according to the records of the Department,
                        are the working interest owners under the unit agreement,

             stating that the Crown intends to withdraw as a party to the unit
             agreement after the end of the 3-month period following the date of the
             notice.

             (3) The unit operator or a person authorized for the purpose by the unit
             operator may apply to the Minister to withdraw the notice given under
             subsection (2).

             (4) An application under subsection (3)

                    (a) must be made before the end of the 3-month period following
                        the date of the notice, and

                    (b) must be accompanied by evidence showing

                           (i) that unit operations had not ceased before the date of the
                               notice,

                           (ii) that unit operations have recommenced since that date
                                and are continuing in good faith, or

                          (iii) that on the date of the notice, unit operations were
                                suspended in circumstances where the obligation of the
                                unit operator to perform those operations was suspended
                                pursuant to the force majeure provisions of the unit
                                agreement.

             (5) The Minister may, on application, extend the 3-month period
             referred to in subsection (4)(a) if the Minister considers the extension
             warranted in the circumstances, whether the application is made before
             or after the expiry of the 3-month period.

             (6) Unless the Minister sooner withdraws a notice given under
             subsection (2), the Minister may make a declaration stating that the
             Crown has withdrawn as a party to the unit agreement as of the date
             specified in the declaration if

                    (a) an application was not made under subsection (3) in accordance
                        with subsection (4), or

                    (b) an application was made under subsection (3) but the Minister
                        considered that the evidence accompanying the application was
                        insufficient to support the request for the withdrawal of the
                        notice or that the application was not made in good faith.



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ALTA. REG. 263/97                                                    MINES AND MINERALS

                  (7) The Crown ceases to be a party to a unit agreement as of the date
                  specified in the declaration of withdrawal made by the Minister under
                  subsection (6).

                  (8) A declaration of withdrawal made by the Minister under subsection
                  (6) must be published in The Alberta Gazette.

Proof of          25 If the location of a licence or lease forms a part only of a spacing
ownership of      unit and the title to the petroleum or natural gas or both in the remainder
freehold rights
                  of the spacing unit is not owned by the Crown in right of Alberta,

                      (a) the Minister may give a notice to the licensee or lessee, as the
                          case may be, requiring the licensee or lessee to provide to the
                          Minister, within the period specified in the notice, proof that the
                          licensee or lessee has the right to drill for and recover petroleum
                          or natural gas or both with respect to that remainder of the
                          spacing unit, and

                      (b) the Minister may cancel the licence or lease if the notice under
                          clause (a) is not complied with.

Time              26(1) If, due to mechanical or other difficulties encountered in the
extensions
related to
                  drilling of a well referred to in any provision of this Regulation, the well
drilling          cannot be completed but within one month from the cessation of those
problems          drilling operations the drilling of another well is commenced

                      (a) in the same spacing unit, or

                      (b) with the consent of the Minister, in another spacing unit,

                  the drilling of that other well shall be deemed to be a continuation of the
                  drilling of the uncompleted well.

                  (2) The Minister may, on application, extend the one-month period
                  under subsection (1), if the Minister considers the extension warranted
                  in the circumstances.


                                                Transitional
Interpretation    27 In sections 28 to 33,
of transitional
provisions
                      (a) “former continuation rules” means

                              (i) sections 90 and 94 to 97 of the Act, as they stood on
                                  December 31, 1997, and

                              (ii) sections 23 and 24 of the former Regulation;

                      (b) “new continuation rules” means sections 14 to 17 of this
                          Regulation;


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ALTA. REG. 263/97                                                  MINES AND MINERALS

                     (c) a reference to section 96, 97 or 98 of the Act is a reference to
                         that section as it stood on December 31, 1997.

Licences under   28(1) Except as otherwise provided in subsections (2) and (3), this
former           Regulation applies to every licence issued under the former Regulation
Regulation
                 and having a term expiring on or after January 1, 1998.

                 (2) If

                     (a) the term of a licence issued under the former Regulation expires
                         on or after January 1, 1998,

                     (b) the location of the licence was in, or deemed to be in, the Plains
                         Area under the former Regulation, and

                     (c) the location of the licence contains more than 15 sections of
                         land,

                 the Minister, in granting an application under section 11(1) of this
                 Regulation, shall use the Table in Schedule B of the former Regulation
                 to determine the number of sections of land to remain in the location of
                 the licence at the commencement of its intermediate term.

                 (3) If

                     (a) 2 licences issued under the former Regulation were grouped
                         under section 10 of the former Regulation before January 1,
                         1998,

                     (b) 2 licences issued under the former Regulation are grouped
                         under section 10 of this Regulation, or

                     (c) a licence issued under the former Regulation and a licence
                         issued under this Regulation are grouped under section 10 of
                         this Regulation,

                 and, in the absence of the enactment of this Regulation, the licensee or
                 licensees would have been entitled to apply for leases having aggregate
                 locations containing more than 15 sections of land, the Minister, in
                 granting an application under section 11(1) of this Regulation in relation
                 to those licences, shall use the Table in Schedule B of the former
                 Regulation to determine the aggregate number of sections of land to
                 remain in the locations of the licences at the commencement of their
                 intermediate terms.

                 (4) Where the term of a licence issued under the former Regulation
                 expired on or before December 31, 1997 but all of the procedures
                 respecting lease selection and issuance had not been completed before
                 that date, sections 11 and 12 and Schedules A and B of the former
                 Regulation continue to apply to the licence as though those sections and
                 Schedules had not been repealed.




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ALTA. REG. 263/97                                                  MINES AND MINERALS

Pre-1998        29(1) Subject to subsection (2), this Regulation applies to every lease
leases          issued before January 1, 1998.

                (2) Except as otherwise provided in sections 30 and 31, the former
                continuation rules apply to a lease whose term expired before January 1,
                1998 until the decision is finally made in respect of an application under
                section 94 of the Act for approval of continuation of the lease after the
                expiration of its term.

Continuation    30(1) Where as of January 1, 1998, a lease is being continued as to the
under section   whole or any part of its location for a period pursuant to section 96(1) or
96 of the Act
                (4) of the Act or any extension of that period, the period is automatically
                extended for a further 3-month period and, at the end of that 3-month
                period, section 16 of this Regulation applies, and the former continuation
                rules cease to apply, to the lease with respect to the whole or part of the
                location so continued as though the expiration of the 3-month extension
                period were the expiration of its initial continuation period.

                (2)In subsection (1), “initial continuation period” has the meaning given
                to it by section 16(1)(c) of this Regulation.

Continuation    31(1) Where as of January 1, 1998 a lease is being continued as to the
under section
97 of the Act
                whole or part of its location pursuant to section 97 of the Act then, on the
                expiration of the one-year period referred to in section 97(4) of the Act
                or of any extension of that period, section 17(9) of this Regulation
                applies, and the former continuation rules cease to apply, to the lease
                with respect to the whole or part of the location so continued as though
                the expiration of the period or the extension were the expiration of the
                term of the lease.

                (2) Notwithstanding subsection (1), the security furnished by a lessee
                pursuant to section 97(3)(d)(ii) of the Act shall be dealt with under the
                former continuation rules.

Non-            32(1) If the one-year period under a notice given under section 98 of the
productivity
notices
                Act expires during 1998, the new continuation rules apply to the location
                or part of the location or the subsurface portion of the location or part of
                the location, as the case may be, to which the notice related, as though
                the expiration of the one-year period were the expiration of the term of
                the lease.

                (2) Where a notice given under section 18 of this Regulation relates to
                a lease whose term expired before January 1, 1998, section 18 shall, as
                far as practicable, be applied to the lease as though the lease had been
                continued under the new continuation rules.




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ALTA. REG. 263/97                                                     MINES AND MINERALS

Offset drilling    33(1) Where
obligations
                       (a) prior to January 1, 1998 the Minister has given a lessee a notice
                           respecting the default by the lessee in complying with section
                           21(2) of the former Regulation and stating that the Minister will
                           cancel the lease or cancel the lease with respect to the part of the
                           location within the Crown spacing unit concerned, as the case
                           may be, if the default is not remedied before the expiration of
                           the 30-day period following the date of the notice, and

                       (b) the 30-day period referred to in the notice expires on or after
                           January 1, 1998,

                   section 21(1), (2), (4) and (5) of the former Regulation continue to apply
                   to the lessee and the lease in relation to the Crown spacing unit
                   concerned, as though that section had not been repealed, until the
                   expiration of the 30-day period or any extension of that period.

                   (2) If a notice had been given to a lessee under section 21(3) of the
                   former Regulation before January 1, 1998 and the 90-day period in that
                   notice or any extension of that period expires after that date, section
                   21(1), (3), (4) and (5) of the former Regulation continue to apply to the
                   lessee as though that section had not been repealed, until the expiration
                   of the 90-day period or any extension of that period.

                   (3) Where a lessee

                       (a) was liable for the payment of compensatory royalty under the
                           former Regulation and the liability had not ended by January 1,
                           1998, or

                       (b) became liable for the payment of compensatory royalty under
                           the former Regulation by reason of an election received by the
                           Minister on or after January 1, 1998 and before the expiration
                           of

                               (i) the 30-day period referred to in subsection (1) or any
                                   extension of that period, or

                               (ii) the 90-day period referred to in subsection (2) or any
                                    extension of that period,

                   the lessee’s liability to pay compensatory royalty becomes a liability to
                   pay offset compensation under this Regulation.

Variation of       34 Where the Minister is satisfied that any of the provisions of sections
transition rules   28 to 33 have caused or are causing undue hardship or prejudice in a
                   particular case or class of cases, the Minister may by a general or special
                   direction vary or replace any of the provisions of sections 28 to 33 to the
                   extent necessary to remove or alleviate the hardship or prejudice.




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ALTA. REG. 263/97                                              MINES AND MINERALS

                                              Repeal
Repeal        35    The Petroleum and Natural Gas Agreements Regulation
              (AR 188/85) is repealed.


                                              Expiry
Expiry        36 For the purpose of ensuring that this Regulation is reviewed for
              ongoing relevancy and necessity, with the option that it may be repassed
              in its present or an amended form following a review, this Regulation
              expires on December 31, 2002.


                                      Coming into Force
Coming into   37 This Regulation comes into force on January 1, 1998.
force


                                          SCHEDULE 1

                                            REGIONS


              PLAINS REGION

                     The Plains Region consists of the land in Alberta contained
                     within the outer perimeter of the land listed below:

                     On the east by townships 1 to 66 inclusive, range 1, west of the
                     4th meridian;

                                                  and

                     On the north by township 66, ranges 1 to 27 inclusive, all west of
                     the 4th meridian, and township 66, ranges 1 to 4 inclusive, and
                     township 34, range 5, all west of the 5th meridian;

                                                  and

                     On the west from townships 35 to 66 inclusive, range 4, west of
                     the 5th meridian;

                                                  and

                     On the west from townships 1 to 34 inclusive, the lands
                     immediately adjacent to the Foothills Region;

                                                  and

                     On the south by township 1, ranges 1 to 23 inclusive, all west of
                     the 4th meridian.




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ALTA. REG. 263/97                                             MINES AND MINERALS

             NORTHERN REGION

             The Northern Region consists of the land in Alberta not included in the
             Plains Region or the Foothills Region.


             FOOTHILLS REGION

                    The Foothills Region consists of the land in Alberta listed below
                    and that land within Alberta located south and west of the listed
                    land:

                    Township 1, range 24; township 2, range 25; township 3, range
                    26; township 4, range 27; township 5, range 28; and townships 6
                    to 11 inclusive, range 29, all west of the 4th meridian;

                                                and

                    Townships 12 and 13, range 1; townships 14 to 20 inclusive,
                    range 2; townships 21 and 22, range 3; townships 23 to 28
                    inclusive, range 4; townships 29 and 30, range 5; townships 31
                    to 34 inclusive, range 6; townships 35 and 36, range 7; township
                    37, range 8; township 38, range 9; townships 39 and 40, range
                    10; township 41, ranges 11 to 13 inclusive; township 42, range
                    14; township 43, ranges 15 and 16; township 44, range 17;
                    townships 45 and 46, range 18; townships 47 and 48, range 19;
                    township 48, range 20; township 49, ranges 21 and 22; township
                    50, range 23; townships 51 and 52, range 24; townships 53 and
                    54, range 25; township 54, range 26; townships 55 and 56, range
                    27, all west of the 5th meridian;

                                                and

                    Township 56, range 1; townships 57 and 58, range 2; township
                    58, range 3; townships 59 and 60, range 4; township 60, ranges
                    5 and 6; township 61, ranges 7 and 8; township 62, ranges 9 and
                    10; township 63, range 11; townships 64 and 65, range 12; and
                    township 66, ranges 13 and 14, all west of the 6th meridian.


                                        SCHEDULE 2

                     NUMBER OF SECTIONS THAT MAY QUALIFY
                      TO REMAIN IN A LICENCE LOCATION AT
                          THE COMMENCEMENT OF THE
                              INTERMEDIATE TERM

             1 Subject to sections 2 and 3 of this Schedule, where a validating well
             is drilled at least to a measured depth shown in Column 1 in the
             following Table (the measured depth being referred to in this Schedule
             as the “Column 1 depth”) but not beyond the next succeeding measured
             depth shown in Column 1, the number of sections of land that may be
             validated as qualified to remain in the location of a licence at the
             commencement of its intermediate term is

                                     - 1337 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 263/97                                                    MINES AND MINERALS

                    (a) the number of sections shown in the Column for the appropriate
                        Region opposite the Column 1 depth, plus

                    (b) the number of sections or parts of sections calculated by
                        multiplying the difference between the Column 1 depth and the
                        total measured depth of the well by the Incremental Factor in
                        Column 5 opposite the Column 1 depth.


                                                 TABLE
             Column 1        Column 2     Column 3        Column 4          Column 5
             MEASURED        PLAINS       NORTHERN        FOOTHILLS         INCREMENTAL
             DEPTH           REGION       REGION          REGION            FACTOR
             (in metres)     (sections)   (sections)      (sections)        (sections per metre)

             150             3            5               8                 Nil
             300             3            5               8                 0.0033*
             600             3            6               9                 0.0033
             900             4            7               10                0.0033
             1200            5            8               11                0.0033
             1500            6            9               12                0.0033
             1800            7            10              13                0.0033
             2100            8            11              14                0.0050**
             2400            9.5          12.5            16                0.0050**
             2700            11           14              18                0.0066
             3000            13           16              20                0.0066
             3300            15--         18              22                0.0066***
             3600            15--         20              24                0.0066***
             3900            15--         22              26                0.0066***
             4200            15--         24              28                0.0100***
             4500            15--         27              31                0.0100***
             4800            15--         30              34                0.0100***
             5000            15--         32--            36

              *   As to the Plains Region, read “nil” instead of 0.0033;
              **  As to the Plains Region, read “nil” instead of 0.0050;
                  As to the Foothills Region, read “0.0066” instead of 0.0050;
              ***As to the Plains Region, read “nil” instead of the number shown in column 5;
              -- Maximum.


             2 Where a whipstocked well referred to in section 9(1)(b)(ii)(B) of this
             Regulation is a validating well,

                    (a) the Column 1 depth for the well is the total measured depth of
                        the well, in the case of the first of the whipstocked wells drilled,
                        and

                    (b) the Column 1 depth for the well is that portion of the measured
                        depth of the well calculated from the point in the well-bore from
                        which the well was whipstocked to the total measured depth of
                        the well, in the case of a well subsequently whipstocked from
                        the same re-entered well.


             3(1) If the determination pursuant to section 1 or 2 of this Schedule
             results in a fraction of a section of land that is greater than ½, the


                                          - 1338 -
                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 264/97                                                 MINES AND MINERALS

               fractional section shall be considered to be a whole section for the
               purposes of the determination.

               (2) If the determination pursuant to section 1 or 2 of this Schedule
               results in a fraction of a section of land that is ½ or less, the fractional
               section shall be disregarded for the purposes of the determination.


                               ------------------------------

                             Alberta Regulation 264/97

                              Mines and Minerals Act

              CROWN MINERALS REGISTRATION REGULATION

                                                                Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 644/97) pursuant to sections 5, 139 and
144 of the Mines and Minerals Act.

                                            Table of Contents

               Definitions                                                               1

                                        Registration Generally

               Recording registration of documents                                       2
               Registration of ministerial transfers                                     3
               Registration fees                                                         4

                                                 Transfers

               Registration of transfers                                                 5

                             Security Notices and Other Statutory Notices

               Registration of statutory notices                                         6
               Affidavits under section 143(8) of the Act                                7
               Continuations of registration                                             8
               Cancellation of registration of security notice                           9
               Maximum charge under section 142(7) of the Act                           10
               Repeal                                                                   11
               Expiry                                                                   12
               Coming into force                                                        13

Definitions    1 In this Regulation,

                    (a) “Act” means the Mines and Minerals Act;

                    (b) “court order” means an order or judgment referred to in section
                        142(9)(b) or 143.1(1) of the Act;


                                           - 1339 -
                  THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 264/97                                                    MINES AND MINERALS

                      (c) “document” means

                              (i) a transfer other than a ministerial transfer,

                             (ii) a statutory notice, or

                            (iii) a statement of lien to which section 26.1 of the Builders’
                                  Lien Act applies, a notice of a change of address for
                                  service referred to in section 28 of that Act, a certificate
                                  of lis pendens under that Act, a discharge of a lien under
                                  that Act or a notice of withdrawal of a certificate of lis
                                  pendens under that Act;

                      (d) “ministerial transfer”, in relation to an agreement, means

                              (i) a transfer of the agreement or a specified undivided
                                  interest in the agreement made by the Minister pursuant
                                  to section 24(3) of the Act, or

                             (ii) a transfer of the agreement, a part of the location of the
                                  agreement or a specified undivided interest in the
                                  agreement made by the Minister pursuant to a judgment
                                  or order of a court;

                      (e) “prescribed form”, in relation to a transfer or statutory notice,
                          means the form of transfer or statutory notice, as the case may
                          be, determined by the Minister pursuant to the Act;

                      (f) “prescribed registration fee” means the fee prescribed in the
                          Schedule to the Mines and Minerals Administration Regulation
                          (AR 262/97);

                      (g) “statutory notice” means

                              (i) a security notice,

                             (ii) a notice of change of address for service referred to in
                                  section 140(8) of the Act, or

                            (iii) a notice referred to in section 141(1) of the Act.


                                        Registration Generally
Recording         2(1) For the purposes of this Regulation, a document shall be considered
registration of   as submitted to the Minister for registration when it is received in the
documents
                  document registration office of the Department, notwithstanding
                  anything in section 5 of the Mines and Minerals Administration
                  Regulation (AR 262/97).

                  (2) When a document is submitted to the Minister for registration, the
                  Minister shall assign a provisional registration number to the document
                  and record on the document the provisional registration number and the
                  date on which it is assigned.

                                           - 1340 -
                  THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 264/97                                                    MINES AND MINERALS

                  (3) The Minister shall keep a record of each document to which a
                  provisional registration number has been assigned.

                  (4) If the registration of a document is refused by the Minister, the
                  provisional registration number assigned to that document is
                  automatically cancelled.

                  (5) If a document submitted to the Minister for registration is determined
                  by the Minister as acceptable for registration, the Minister shall record
                  the registration of the document and, on doing so, the provisional
                  registration number becomes the registration number of the document.

                  (6) If registration of a document is recorded in accordance with
                  subsection (5), registration of the document is effective as of the date on
                  which the provisional registration number is assigned to the document.

                  (7) Any record required or permitted to be made by the Minister under
                  this Regulation may be made in any manner that the Minister may
                  determine.

Registration of   3(1) When a ministerial transfer is made,
ministerial
transfers
                      (a) the Minister shall assign a registration number to the transfer
                          and record on the transfer the registration number and the date
                          on which it was assigned, and

                      (b) the Minister shall record the registration of the transfer.

                  (2) When the registration of the ministerial transfer is recorded, the
                  registration is effective as of the date on which the registration number
                  is assigned to the transfer.

Registration      4 The Minister may refuse to register a document submitted for
fees              registration unless the prescribed registration fee for that document has
                  been paid to the Minister.


                                                 Transfers
Registration of   5(1) The Minister may refuse to register a transfer submitted for
transfers
                  registration on any of the following grounds:

                      (a) the transfer is not in the prescribed form or is not completed in
                          accordance with the prescribed form;

                      (b) the transfer is not executed in the manner required by the
                          prescribed form;

                      (c) the proof of execution of the transfer is not satisfactory to the
                          Minister;




                                            - 1341 -
                  THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 264/97                                                    MINES AND MINERALS

                      (d) the transfer would, if registered, result in the agreement being
                          held by 2 or more lessees in a manner inconsistent with section
                          8 of the Mines and Minerals Administration Regulation
                          (AR 262/97);

                      (e) the transfer would, if registered, result in one or more lessees
                          holding less than a 1% undivided interest in the agreement;

                      (f) a specified undivided interest being conveyed by the transfer

                              (i) is expressed other than in decimal form, or

                             (ii) is expressed in decimal form but to more than 7 decimal
                                  places;

                      (g) the transferor or transferee is in default of payment of any debt
                          owing to the Crown in right of Alberta;

                      (h) the transfer conveys part of the location of an agreement and the
                          prescribed issuance fee for the new agreement resulting from
                          the transfer has not been paid to the Minister.

                  (2) A transfer shall not be registered if

                      (a) a provision of the Act, the regulations under the Act or the
                          agreement affected by the transfer requires the consent of the
                          Minister to the transfer and the consent is refused or a decision
                          respecting the consent has not yet been made, or

                      (b) the Minister has actual notice of a judgment or order of a court
                          that prohibits the transfer or the registration of the transfer.


                           Security Notices and Other Statutory Notices
Registration of   6(1) The Minister may refuse to register a statutory notice submitted for
statutory
notices
                  registration on any of the following grounds:

                      (a) the statutory notice is not in the prescribed form for that notice
                          or is not completed in accordance with that prescribed form;

                      (b) the statutory notice is not executed in the manner required by
                          the prescribed form for that notice;

                      (c) the proof of execution of the statutory notice is not satisfactory
                          to the Minister;

                      (d) there is attached to the statutory notice the original or a copy of
                          the security instrument, discharge, partial discharge,
                          assignment, partial assignment, postponement or discharge of
                          postponement to which the statutory notice relates.




                                           - 1342 -
                  THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 264/97                                                      MINES AND MINERALS

                  (2) A statutory notice shall not be registered if the Minister has actual
                  notice of a judgment or order of a court that prohibits the registration of
                  that statutory notice.

                  (3) A security notice to which section 143(9) of the Act applies shall not
                  be registered unless it is accompanied by a certified copy of the order of
                  the Court of Queen’s Bench granting leave for the submission of the
                  security notice for registration.

Affidavits        7 If an affidavit provided to the Minister pursuant to section 143(8) of
under section     the Act is satisfactory to the Minister, the Minister may record and
143(8) of the
Act               register the affidavit under section 2 as though it were a document.

Continua-tions    8 Where the registration of a security notice is continued in respect of
of registration
                  a lease by reason of section 140(10) of the Act or in respect of a new
                  agreement or consolidated agreement by reason of section 140(10.1) of
                  the Act, the Minister shall make a record of the existing registration of
                  the security notice and

                      (a) any notice of partial discharge relating to that security notice,

                      (b) any notice of postponement relating to that security notice, and

                      (c) the most recently registered notice of assignment, if any,
                          relating to that security notice,

                  with respect to that lease, new agreement or consolidated agreement, as
                  the case may be.

Cancella-tion     9(1) The Minister shall cancel the registration of a security notice after
of registration   the registration of a notice of discharge of security interest that relates to
of security
notice            the security interest that is the subject of the security notice.

                  (2) Cancellation of the registration of a security notice is effected,

                      (a) in the case of a court order directing the cancellation, when a
                          certified copy of the court order is registered, or

                      (b) in the case of a cancellation pursuant to section 143(8) of the
                          Act, when the affidavit provided to the Minister under that
                          subsection is registered in accordance with section 7.

                  (3) Where the registration of a security notice is cancelled, the Minister
                  shall record the cancellation on the security notice and delete the record
                  of the registration.

                  (4) Where any registration of a statutory notice was made in error and
                  is cancelled pursuant to section 143.1(2) of the Act, the Minister shall
                  record the cancellation on the statutory notice or the certified copy of the
                  court order, as the case may be, and delete the record of the registration.


                                             - 1343 -
                 THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 265/97                                      PUBLIC SECTOR PENSION PLANS


Maximum          10 If a person is served with a demand for information under section
charge under
section 142(7)
                 142(3) of the Act, the maximum charge that may be made under section
of the Act       142(7) of the Act shall be $1 for the first page and $0.25 for each
                 additional page of the security instrument concerned.


                                                  Repeal
Repeal           11 The Crown Land Registration Regulation (AR 420/81) is repealed.


                                                  Expiry
Expiry           12 For the purpose of ensuring that this Regulation is reviewed for
                 ongoing relevancy and necessity, with the option that it may be repassed
                 in its present or an amended form following a review, this Regulation
                 expires on December 31, 2002.


                                          Coming into Force
Coming into      13 This Regulation comes into force on January 1, 1998.
force


                                ------------------------------

                              Alberta Regulation 265/97

                          Public Sector Pension Plans Act

         PUBLIC SECTOR PENSION PLANS (LEGISLATIVE PROVISIONS)
                       AMENDMENT REGULATION

                                                                 Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 613/97) pursuant to Schedule 1, section
15 of the Public Sector Pension Plans Act.

                 1 The Public Sector Pension Plans (Legislative Provisions)
                 Regulation (AR 365/93) is amended by this Regulation.


                 2 Schedule 1 is amended by adding the following after Part 3:

                                                  PART 4

                               TERMINATION OF THE WHOLE PLAN

                        47 This Part relates to the development, pursuant to section 15 of
                        the Act Schedule, of the other plan within the meaning of section
                        15(1)(a) of that Schedule.



                                          - 1344 -
               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998



                      48(1) For the purposes only of developing the other plan and of
                      exercising and performing powers, duties and functions ancillary
                      to that development and until the other plan has been developed,
                      the Board is a corporation.

                      (2) The Board is not a corporation to the extent that it is acting
                      outside the purposes referred to in subsection (1).

                      49(1) The Board may charge to the plan fund the costs lawfully
                      incurred by it in its corporate capacity in developing the other plan
                      and exercising and performing the ancillary powers, duties and
                      functions referred to in section 48(1)

                          (a) if the expenditures are in accordance with the Financial
                              Administration Act, and

                          (b) to the extent that the amount charged to the plan fund
                              under this Part

                               (i) in 1997 does not exceed $30 000,

                              (ii) in 1998 does not exceed $770 000, or

                              (iii) in 1999 does not exceed $760 000.

                      (2) Costs referred to in subsection (1) must be charged to
                      post-1991 assets within the meaning of section 26 (but ignoring
                      references in that section to the time of withdrawal).


               4 This Part ceases to have any force after December 31, 1999.


                            Alberta Regulation 266/97

                         Private Vocational Schools Act

      PRIVATE VOCATIONAL SCHOOLS AMENDMENT REGULATION

                                                              Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 618/97) pursuant to section 26 of the
Private Vocational Schools Act.

               1 The Private Vocational Schools Regulation (AR 66/94) is
               amended by this Regulation.


               2 Section 5(a)(iii) is amended by striking out “fee prescribed in
               the Schedule” and substituting “the required fee”.


               3 Section 10(a)(iii) is amended by striking out “fee prescribed
               in the Schedule” and substituting “the required fee”.



                                        - 1345 -
               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 267/97                                              COLLECTION PRACTICES



               4 The Schedule is repealed.


               5 This Regulation comes into force on January 1, 1998.


                              ------------------------------

                            Alberta Regulation 267/97

                             Collection Practices Act

           COLLECTION PRACTICES AMENDMENT REGULATION

                                                               Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 621/97) pursuant to section 26 of the
Collection Practices Act.

               1 The Collection Practices Regulation (AR 77/79) is amended
               by this Regulation.


               2   Section 2 is amended by adding the following after
               subsection (1):

                      (2) The fee payable to replace a collection agency licence or a
                      collector’s licence that has been lost, defaced or destroyed is $40.

                      (3) The fee payable to amend a collection agency licence or a
                      collector’s licence is $40.


               3 Section 3(2) is repealed and the following is substituted:

                      (2) The minimum amount of security under sections 5(1) and
                      7(1) of the Act shall be as follows:

                          (a) for a new collection agency licence               $15 000;

                          (b) if the previous 12 months’
                              collections were $250 000 or less                 $15 000;

                          (c) if the previous 12 months’
                              collections were more than $250 000
                              but not more than $500 000                        $25 000;

                          (d) if the previous 12 months’
                              collections were more than $500 000
                              but not more than $1 000 000                      $35 000;

                          (e) if the previous 12 months’


                                        - 1346 -
                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                                MUNICIPAL GOVERNMENT

                               collections were more than $1 000 000            $50 000.


                4 Section 7(2) is amended by adding “a transfer fee of $75 and”
                after “the Administrator”.


                5 This Regulation comes into force on January 1, 1998.

                                ------------------------------

                            Alberta Regulation 268/97

                            Municipal Government Act

                FOOTHILLS REGIONAL EMERGENCY SERVICES
                        COMMISSION REGULATION

                                                                  Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 625/97) pursuant to section 602.02 of
the Municipal Government Act.

                                            Table of Contents

                Establishment                                                          1
                Members                                                                2
                Services                                                               3
                Operating deficits                                                     4
                Property                                                               5
                Non-profit corporation                                                 6
                Coming into force                                                      7

                Schedule

Establishment   1 A regional services commission known as the Foothills Regional
                Emergency Services Commission is established.

Members         2 The following municipalities are members of the Commission:

                    (a) the Town of Okotoks;

                    (b) the Town of Black Diamond;

                    (c) the Town of Turner Valley;

                    (d) the Town of High River;

                    (e) the Village of Longview;

                    (f) the Municipal District of Foothills No. 31.

                                         - 1347 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                            MUNICIPAL GOVERNMENT


Services      3 The Commission is authorized to provide emergency medical services
              and an emergency services communication system.

Operating     4 The Commission may not assume operating deficits that are shown
deficits
              on the books of any of the member municipalities.

Property      5(1) The member municipalities shall execute all documents and do all
              things necessary to transfer to the Commission all land, buildings and
              personal property listed in the Schedule to this Regulation.

              (2) The Commission may not, without the approval of the Lieutenant
              Governor in Council, sell any of its land, buildings or personal property
              whose purchase has been funded wholly or partly by grants from the
              Government of Alberta.

              (3) The Lieutenant Governor in Council may give approval under
              subsection (2) if satisfied

                    (a) as to the repayment of grants from the Government of Alberta
                        and outstanding debt associated with that portion of the land,
                        buildings and personal property to be sold,

                    (b) that the sale would not have a significant adverse effect on the
                        services the Commission provides, and

                    (c) that the sale will be properly reflected in the rates subsequently
                        charged to the customers of the Commission.

Non-profit    6(1) The Commission is to operate as a non-profit corporation unless
corporation   otherwise approved by the Minister.

              (2) The Minister’s approval may contain any terms or conditions that the
              Minister considers appropriate.

Coming into   7 This Regulation comes into force on January 1, 1998.
force




                                         - 1348 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                         MUNICIPAL GOVERNMENT

                                         SCHEDULE

                                            PART 1

                      HIGHWOOD EMERGENCY MEDICAL SERVICES

                                      EQUIPMENT LIST

             AMBULANCE 1178

             1993 FORD E350 CHASSIS WITH MCCOY MILLER MODULAR
             CONVERSION
                   Serial # 1FDKE30M3PHA03917

             EQUIPMENT                                         serial/model #

                   multi-level stretcher 29M                  L-93749
                   chair stretcher                            HRA0036
                   scoop stretcher                            C12535
                   2 Ferno spineboards                        JJ-97568/72
                   Lifepak 10 monitor/defibrillator/
                      pacemaker                                00000669
                   Ohmeda portable suction                    52705
                   Floguard 6200 Intravenous Drug pump        4069280
                   Advanced airway kit
                   Mobile radio with remote                   GM300
                   Nonin oximeter                             HH4675


             AMBULANCE 1179

             1991 FORD E350 CHASSIS WITH 1995 CRESTLINE COACH
             MODULAR CONVERSION
                Serial # 1FDKE30M7MMA86537

             EQUIPMENT                                         serial/model #

                   multi-level stretcher 29M                  L-174297
                   chair stretcher                            HRA0036
                   scoop stretcher                            L-81293
                   2 Ferno spineboards                        JJ-87559/97566
                   Lifepak 10 monitor/defibrillator/
                      pacemaker                                00011851
                   Ohmeda portable suction                    64540
                   Floguard 6200 Intravenous Drug pump        43962445
                   Advanced airway kit
                   Mobile radio with remote                   GM300
                   Nonin oximeter                             HH13601


             AMBULANCE 1366

             1997 FORD E350 CHASSIS WITH MCCOY MILLER MODULAR
             CONVERSION

                                      - 1349 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                          MUNICIPAL GOVERNMENT

                    Serial # 1FDKE30F3VHA50038

             EQUIPMENT                                           serial/model #

                   multi-level stretcher 29M                    L-246929
                   chair stretcher                              HRA0036
                   scoop stretcher                              J27358
                   2 Ferno spineboards                          JJ-97568
                   Lifepak 10 monitor/defibrillator/
                      pacemaker                                  00025904
                   Ohmeda portable suction                      55607
                   Floguard 6200 Intravenous Drug pump          40692980
                   Advanced airway kit
                   Mobile radio with remote                     GM300
                   Nonin oximeter                               HH4094


             AMBULANCE SUPPORT VEHICLE ECHO 1

             1993 FORD EXPLORER 4X4 Serial # 1FMDU34X7PUC00466

             EQUIPMENT                                           serial/model #

                   stretcher 107C                               L-222566
                   Lifepak 5 monitor/defibrillator              0018827/0017881
                   Advanced airway kit
                   Portable suction                             52768
                   Mobile radio                                 GM300


             COMMUNICATION SYSTEM

                   Repeater                          836PQE3059     Aldersyde
                   Duplexer                          SRLQ2220E      Aldersyde
                   Telephone interconnect            740CQC0928     Aldersyde
                   Antenna omni gain                 A07848         Aldersyde
                   Antenna, Yagi                     001561-4       Hospital
                   Base station                      428PQE3037-5   Hospital
                   Remote desk top                   448CQE0099     St. 91
                   Remote desk top                   740CQC0570     Hospital ER

                   Portable, Bendix King             L25889         Sierra 1
                   Portable, HT1000                  402AWQB081Z    St. 92
                   Portable, HT1000                  402AWQB082Z    St. 92
                   Portable, HT1000                  402AWQB077Z    St. 92
                   Portable, HT1000                  402AWQB079Z    St. 91
                   Portable, HT1000                  402AWQB080Z    St. 91
                   Portable, HT1000                  402AWQB078Z    St. 91
                   Portables include microphone,
                     battery, charger, case.


             STATION 91



                                        - 1350 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                           MUNICIPAL GOVERNMENT

                   Battery support system          0001421
                   Lifepak charger                 00011649
                   Defibrillator tester            0877
                   BP monitor                      00004240
                   29M stretcher                   L-93749
                   IVAC IV pump                    2863B3315563
                   CPR training system             8167-8174, 8189, 8190
                   Airway trainer                  Laerd25000
                   AST computer system             286AVQ17602
                   Spineboards (2)                 2001


             RESCUE

                   Rescue bags (2) containing ropes, caribiners, pulleys, harnesses,
                         etc.
                   Inflatable boat - 4 man - with motor, jet, drive and trailer
                   Rescue jackets, boards


             STATION 92

                   Compaq computer system         A444HCY2D613
                   Fridge                         71300238
                   Stove
                   Battery support system         0001421
                   Central vacuum system          9411145
                   Paging system, six minitor pagers with chargers
                    MD 5 B Q C ILN M,       MD5BQCILNN,            MD5BQCILNH,
                    MD5BQCILNJ, MD5BQCILNK, MD5BQCILN


                                              PART 2

                           OILFIELDS AND DISTRICT EMERGENCY
                                   MEDICAL SERVICES

                                        EQUIPMENT LIST

             EQUIPMENT                                             Serial Number

             Office supplies

             1-Latech systems tower case
             1-Acerview 56e Monitor                                M5EH71674688

             1-MPCZ Multimedia PC                                  94070010
             1-Daytek Monitor                                      EWBOC143SVA

             1-Latech Systems tower case
             1-Brother HL 730 DX Printer                           F60143708
             1-Acerview 76ie Monitor                               M7EH64266508

             1-GVC P120 Laptop Computer                            GND963200158

                                        - 1351 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                   MUNICIPAL GOVERNMENT

             1-Homeline Microwave                        3B72316A
             1-Microwave Deluxe                          ER - 786BT
             1-Samsung 27" TV                            3CAGCOO110
             1-Toshiba VCR                               81342757

             2-CPR dolls


             Portable Radios and Pagers

             1-Bendix King Radio with accessories        251418
             1-Bendix King Radio with accessories        631243
             1-Bendix King Radio with accessories        250760
             1-Bendix King Radio with accessories
             1-Bendix King 5 Unit charger                LAA0380
             1-Icom H18, 2 batteries, 1 charger          13331
             1-Motoria Minitor II SV Pager               MD5BRN278W
             1-Motoria Minitor II SV Pager               MD5BRN
             2
             1-Motoria Minitor II SV Pager               MD5BRN278Z
             1-Motoria Minitor II SV Pager
             3-Motorola Pager Chargers                   64DO5481L01
             1-Motoria MT1000 Radio                      751PRL2010-5
               (2 batteries, 1 charger)
             1-Motoria JT1000                            402AWA6562Z
               (2 batteries, 1 charger)
             1-Motorola StarTac Cell Phone               572GXNHB91


             Unit 1184

             1-1993 E-350 Type II Ambulance         1FDJS34M2PHB78187
             1-Ferno multi-level Stretcher          L39928
             1-Motorola cellular phone
             1-Motorola radius GM300 Radio          159TWGA244
             1-Sagar Splint                         4050
             1-KED
             1-scoop stretcher                      126846
             1-chair stretcher                      L57415
             1-MAST pants                           18262
             1-Lifepak 10 monitor/defibrillator/
               pacemaker                            2374354
             1-Baxter IV infusion pump              6101187FA


             Airway Kit

             1-Nonin Pulse Oximeter                 HH15743
             1-Pediatric BVM                        OSV4164
             2-Pediatric BVM Oxygen masks
             1-Adult BVM
             2-Adult BVM Oxygen masks
             1-Laryngioscope handle
             6-Laryngioscope blades

                                     - 1352 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                  MUNICIPAL GOVERNMENT



             Trauma Kit

             1-Glucometer Elite                    343747


             Unit 1185

             1-1986 Ford E350 Type II Ambulance    1FDHS34L7GHB54375


             Unit 1328

             1-1995 Ford E350 Type III Ambulance      1FDE3F29HB30765
             1-Ferno Multi-level Stretcher            L301973
             1-Motorola GP300 Mobile Radio            159TWGA210
             1-Global Positioning Unit                25504835
             1-Motorola Cellular Phone
             1-Double Baxter IV Pump                  6070230FB
             1-Sagar splint                           220509
             1-Chair stretcher                        996950
             1-Scoop stretcher                        590614
             1-MAST pants                             202657-R3


             Airway Kit

             1-Nonin Pulse Oximeter                   HH15743
             1-Pediatric BVM
             2-Pediatric BVM masks
             1-Adult BVM                              OSV4056
             2-Adult BVM masks
             1-Laryngioscope handle
             6-Laryngioscope blades

             1-Physio Control Lifepac 10-C            00012180
             11-Lifepak 10 batteries


             Trauma Kit

             1-Thermoscan Thermometer                 144988
             1-Glucometer Elite                       390815
             1-Matrix Portable Suction Unit


             Extra Equipment

             2-Pediatric BVMs
             2-Adult BVM masks


             Echo 2



                                      - 1353 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 268/97                                       MUNICIPAL GOVERNMENT

             1-1990 Chevrolet Suburban                   1GNER16K71F157849
             1-TAD Mobile radio
             1-Lifepak 5 Defibrillator                   10659
             1-Lifepak 5 Monitor                         0044969



                                          PART 3

                                FOOTHILLS REGIONAL
                              COMMUNICATIONS CENTRE

                                     EQUIPMENT LIST

             EQUIPMENT                                   Serial Number

             Red Meridian Phone                          01NT8B400401988918
             Black Meridian Phone                        NTB40-03A0397265
             Zetron 4010R Dispatch Console               -
             Zetron 4000 series Phone/Radio interface    -
             Acer 34T 13" Monitor                        M3TP64603060-1P1-P1
             Acer 76ie 17" Monitor                       N7EH64266612H1
             Acer 76e 17" Monitor                        73826791H76491H
             Latech Pentium CPU                          -
             AS1 9000 CPU                                455734
             Netstation CPU                              90095712
             CL40 Power Conversion Box                   HJQ1528
             TAD M8 Mobile Radio c/w mic                 014586
             Supercom TDD                                32848
             ATISPL 2000 Digital Logging Recorder        59SPL538
             Motorola Desk Trac Base Stn.                154 SRE 4692
             Motorola Desk Trac Base Stn.                154 SRE 4691
             Motorola Desk Trac Base Stn.                154 SRM 0721
             Caviar 2420 Hard Drive                      WM2680378227
             Concorde Chair                              6/1697
             Telus Phone Simulator/Trainer               -
             MRTI                                        740CRK0386
             Wooden Dispatch Console                     -
             Mitsubishi Television                       -
             Sharp VCR                                   -




                                    - 1354 -
                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                                      COURT OF APPEAL
                                                                COURT OF QUEEN’S BENCH
                                                                    CIVIL ENFORCEMENT




                               ------------------------------

                             Alberta Regulation 269/97

                               Court of Appeal Act
                            Court of Queen’s Bench Act
                              Civil Enforcement Act

          ALBERTA RULES OF COURT AMENDMENT REGULATION


                                                                  Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C.626/97) pursuant to section 15 of the
Court of Appeal Act, Section 18 of the Court of Queen’s Bench Act and sections 106 and
107 of the Civil Enforcement Act.

                1 The Alberta Rules of Court (AR 390/68) are amended by this
                Regulation.


                2 Rule 5(1)(h.1) is amended by adding “St. Paul,” after “Fort
                McMurray,”.


                3 The following is added after Rule 5:
Determination          5.01 Any reference in these Rules with respect to the distance
of distances           from a judicial centre or a Queen’s Bench location is a reference
                       to the distance from the Court House located in that judicial
                       centre or Queen’s Bench location.


                4(1) Rule 11 is amended

                    (a) in subrule (1) by adding “and it expires at the end of the day
                        of the first anniversary of the day that it is issued” after “is
                        issued”;

                    (b) in subrule (3) by striking out “12-month period” and
                        substituting “period of time”;

                    (c) by repealing subrules (9) and (10) and substituting the
                        following:

                        (9) Notwithstanding subrule (3), if the Court finds as a fact

                           (a) that, before a statement of claim expired,



                                         - 1355 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                               COURT OF APPEAL
                                                         COURT OF QUEEN’S BENCH
                                                             CIVIL ENFORCEMENT

                              (i) a defendant,

                              (ii) anyone purporting to be a defendant, or

                             (iii) any lawyer or other person purporting to negotiate
                                   on behalf of a defendant

                              caused the plaintiff or the plaintiff’s lawyer to
                              reasonably believe, and to rely on that belief, that

                             (iv) the defendant had been served,

                              (v) liability was not or would not be contested, or

                             (vi) the time limits provided for in subrule (3) or any
                                  other time limits that relate to the action would not
                                  be relied on or would be waived,

                            and

                          (b) that the statement of claim has expired,

                       the Court may by order renew that statement of claim for a
                       period of time not exceeding 3 months from the day that the
                       order was made.

                       (10) A statement of claim renewed pursuant to an order made
                       under subrule (9) operates only as against the defendant in
                       respect of whom the order was made.

             (2) Rule 11

                    (a) as it read immediately before the coming into force of
                        subsection (1) applies to statements of claim that
                        expired before the coming into force of subsection (1)
                        in the same manner as if Rule 11 had not been
                        amended by subsection (1);

                    (b) as amended by subsection (1) applies only to
                        statements of claim that are in force on or that are
                        issued after the coming into force of subsection (1).


             5 Rule 170(1) is amended by striking out “the defendant has
             served a statement of defence on the plaintiff” and substituting “the
             issuance of the statement of claim”.


             6 Rule 323 is repealed and the following is substituted:




                                       - 1356 -
                 THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                                COURT OF APPEAL
                                                          COURT OF QUEEN’S BENCH
                                                              CIVIL ENFORCEMENT

Approval of           323 If a judgment or an order of the Court of Appeal is not
judgment or           signed forthwith on the granting of the judgment or the order, that
order re Court
of Appeal             judgment or order may be signed subsequently in one or more of
                      the following circumstances:

                          (a) on notice to all parties;

                          (b) in ex parte proceedings;

                          (c) where the form of the judgment or order is approved by
                              the opposing solicitor or party.

Approval of           323.1(1) In this Rule, “judge” means, in respect of a judgment
judgment or
order re Court
                      or an order of the Court of Queen’s Bench, the judge who granted
of Queen’s            the judgment or order and includes a master or other judicial
Bench                 officer who granted a judgment or an order.

                      (2) Neither a judgment nor an order of the Court of Queen’s
                      Bench that is not signed forthwith by the judge on the granting of
                      the judgment or the order shall be subsequently signed except in
                      accordance with this Rule.

                      (3) If a judgment or an order of the Court of Queen’s Bench is
                      not signed forthwith on the granting of the judgment or the order,
                      that judgment or order may be signed subsequently by the judge
                      in one or more of the following circumstances:

                          (a) on notice to all parties;

                          (b) in ex parte proceedings;

                          (c) in proceedings where the opposing solicitor or party did
                              not attend;

                          (d) where the form of the judgment or order is approved by
                              the opposing solicitor or party.

                      (4)Notwithstanding Rule 318(2), where a judgment or an order
                      is to be signed pursuant to subrule (3), that judgment or order
                      must

                          (a) be presented for signing to the judge, accompanied by
                              the clerk’s notes that are relevant to that judgment or
                              order, and

                          (b) be signed by the judge on the judge’s being satisfied that
                              the judgment or order reflects the judgment or order that
                              had been granted.

                      (5)For the purposes of subrule (4), a judgment or an order may
                      be presented for signing

                                        - 1357 -
                 THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                                 COURT OF APPEAL
                                                           COURT OF QUEEN’S BENCH
                                                               CIVIL ENFORCEMENT

                           (a) directly to the judge, or

                           (b) to the judge through the clerk’s office located in the
                               judicial centre where the judgment or order was granted,
                               in which case the clerk shall present the documentation
                               in its original copy or, where appropriate, by telecopier
                               to the judge for signing.


                 7 Rule 385.1 is repealed and the following is substituted:
Application by         385.1(1) In this Rule,
conference
telephone
                           (a) “office or residence” means, in respect of a participant,
                               the participant’s office or residence, whichever is
                               located the closest to the Queen’s Bench location at
                               which an application is required to be brought;

                           (b) “participant” means,

                                (i) in the case of a party represented by counsel, the
                                    counsel representing that party, and

                               (ii) in the case of a party not represented by counsel,
                                    that party;

                           (c) “Queen’s Bench location” means the Court House at
                               which the Court of Queen’s Bench sits in Peace River,
                               Grande Prairie, St. Paul, Edmonton, Hinton,
                               Wetaskiwin, Red Deer, Drumheller, Calgary,
                               Lethbridge, Medicine Hat and Fort McMurray.

                       (2) Where an application is proposed to be brought before a
                       judge or a master, the application may be conducted by means of
                       a conference telephone call if

                           (a) the judge or the master, as the case may be, consents to
                               the application being conducted by means of a
                               conference telephone call,

                           (b) all the participants to the application consent to the
                               application being conducted by means of a conference
                               telephone call, and

                           (c) either

                                (i) the office or residence of the participant requesting
                                    to appear at the application by means of a
                                    conference telephone call is located more than 100
                                    kilometres from the Queen’s Bench location at
                                    which the application is required to be brought, or


                                        - 1358 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                              COURT OF APPEAL
                                                        COURT OF QUEEN’S BENCH
                                                            CIVIL ENFORCEMENT

                            (ii) there is not a resident judge or master, as the case
                                 may be, located at the Queen’s Bench location at
                                 which the application is required to be brought and
                                 the Court is satisfied that the circumstances are
                                 sufficiently urgent and important to warrant that the
                                 application be heard prior to the time that the Court
                                 will next be sitting at that Queen’s Bench location.

                    (3) If a participant

                        (a) cannot obtain the consent of all the participants to
                            conduct an application under this Rule, or

                        (b) has reasonable grounds to believe that it would be
                            impractical to obtain the consent of all the participants
                            to conduct an application under this Rule,

                    the participant may, on notice to the other participants, apply by
                    means of a conference telephone call for the Court’s permission
                    to have the application referred to in subrule (2) heard by
                    conference telephone call.

                    (4)The application referred to in subrule (2) and the application
                    made under subrule (3) may be dealt with in the same conference
                    telephone call if permission is granted by the Court to do so.

                    (5) Unless otherwise directed by the Court, when participating
                    in an application to which subrule (2)(c) applies,

                        (a) if the location of the participant’s office or residence is
                            not greater than 100 kilometres from the Queen’s Bench
                            location at which the application is to be brought, the
                            participant must attend at the clerk’s office located at
                            that Queen’s Bench location and participate in the
                            conference telephone call from the clerk’s office, or

                        (b) if the location of the participant’s office or residence is
                            greater than 100 kilometres from the Queen’s Bench
                            location at which the application is to be brought, the
                            participant may either

                             (i) participate in the conference telephone call in the
                                 same manner as that provided for under clause (a),
                                 or

                            (ii) participate in the conference telephone call from
                                 another location by means of a telephone that is
                                 connected by conference call with the Court and the
                                 other participants to the application and also with
                                 the clerk’s office located at that Queen’s Bench
                                 location.


                                      - 1359 -
                  THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                                 COURT OF APPEAL
                                                           COURT OF QUEEN’S BENCH
                                                               CIVIL ENFORCEMENT

                       (6) Where a judge or master makes an order with respect to an
                       application under this Rule, the order is deemed to have been
                       made at the Queen’s Bench location at which the application is
                       required to be brought.

                       (7)The judge or master who hears an application under this Rule
                       may, where in the opinion of the judge or master it appears that
                       personal attendance of a participant is desirable, direct that the
                       application be heard or completed in chambers with the personal
                       attendance of that participant.

                       (8) Where material is to be filed or issued in respect of an
                       application that is to be conducted under this Rule,

                           (a) that material shall be filed or issued by the clerk in the
                               judicial district in which the action is carried on, and

                           (b) if directed by the Court, a participant shall, before the
                               application is heard, provide copies of the material to the
                               Court by means of a telecopier or otherwise.

                       (9) Unless otherwise directed by the Court, the clerk located at
                       the Queen’s Bench location at which the application is to be
                       brought

                           (a) shall co-ordinate the conference call, and

                           (b) may participate in the conference call.

                       (10)Unless otherwise directed by the Court, any costs resulting
                       from an application being conducted by means of a conference
                       telephone call shall be paid by the party or the party’s counsel
                       who requested that the application be conducted under this Rule.

                       (11) The Court may, if the Court is satisfied that circumstances
                       warrant it, dispense with or alter any of the requirements or
                       criteria established under this Rule for conducting an application
                       by means of a conference telephone call.

                       (12) Other than in respect of an application made under the
                       Reciprocal Enforcement of Maintenance Orders Act or the
                       Divorce Act (Canada), a person is not eligible to participate as a
                       participant in an application under this Rule from a location that
                       is outside of Alberta.
Discretion re          385.2(1) Where the requirements or criteria established under
hearing other
applications by
                       Rule 385.1 are not met for an application to be conducted by
conference             means of a conference telephone call, a judge or master may
telephone              nevertheless, on the motion of that judge or master, conduct the
                       application by means of a conference telephone call.



                                         - 1360 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                              COURT OF APPEAL
                                                        COURT OF QUEEN’S BENCH
                                                            CIVIL ENFORCEMENT

                    (2)Except where otherwise directed by the Court, the provisions
                    of Rule 385.1(1) to (11) apply to an application conducted under
                    this Rule.


              8 The following is added after Rule 440:
Restraining         440.1(1) In this Rule, “restraining order” means a restraining
orders
                    order that is being sought in respect of a matrimonial, domestic
                    or family matter or any other inter-personal matter between
                    individuals.

                    (2) Where an application is made for a restraining order, the
                    applicant may proceed under Part 30 but, instead of using an
                    affidavit, a completed questionnaire as specified by the Court and
                    verified under oath or by statutory declaration may be used.

                    (3) For the purposes of Part 30, a completed questionnaire
                    referred to in subrule (2) is considered to be an affidavit.


              9 The following is added after Rule 481:
Proposal to         481.1 Where money has been paid into Court pursuant to a
pay out
                    garnishee summons, the clerk may provide to a person who is
                    shown in a Personal Property Registry search result as having a
                    right or interest in that money a notice setting out the manner in
                    which the clerk proposes to pay out that money.


              10 Rule 515.1 is amended by adding the following after
              subrule (8):

                    (9) If a case has been struck from the General Appeal List and
                    the case is not restored to the General Appeal List within 6
                    months from the day that the case was struck from the General
                    Appeal List, the appeal is deemed to have been abandoned.


              11 Rule 538(1) is repealed and the following is substituted:
Filing              538(1) The appellant shall file 8 copies of the appellant’s factum
                    with the registrar and shall serve one of the filed copies of the
                    factum on each respondent

                        (a) on the 60th day or before 60 days have elapsed from the
                            day on which the appeal books have been prepared, or

                        (b) during the 7th month or before 7 months have elapsed
                            after the filing of the notice of appeal,

                    whichever is the earliest date.

                                      - 1361 -
                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                                    COURT OF APPEAL
                                                              COURT OF QUEEN’S BENCH
                                                                  CIVIL ENFORCEMENT



                12 Rule 586 is amended by adding the following after subrule
                (2):

                       (2.1) For the purposes of paying fees referred to in subrule (2),
                       the clerk may operate charge accounts to enable counsel to charge
                       the fees and be rendered an account at such time as the clerk
                       considers appropriate.


                13 Rule 593 is amended by adding the following after
                subsection (1):

                       (1.1) Notwithstanding subsection (1), the Court may order
                       security for costs against any party where the Court, on its own
                       motion or on the motion of any other party, finds that it is just
                       and reasonable to do so in the circumstances.

                       (1.2)Where costs are ordered under subrule (1.1), Rules 594 and
                       595 apply with the necessary modifications.


                14 Rule 607 is repealed and the following is substituted:
Interlocutory          607 Notwithstanding the final determination of an action, the
proceedings            costs of any interlocutory proceeding in that action, whether ex
                       parte or otherwise, shall, unless otherwise ordered, be paid by the
                       party who was unsuccessful on the interlocutory proceeding.


                15 Rule 627 is amended by striking out “or” at the end of
                clause (b) and by repealing clause (c).


                16 Rule 643 is repealed and the following is substituted:
Definitions            643 In this Rule and Rules 643.1 to 658,

                           (a) “client” includes

                                (i) any person from whom a barrister and solicitor has
                                    demanded any sum for costs;

                               (ii) any person who may be liable for costs;

                               (iii) any person who, not being chargeable as the
                                     principal party, is liable to pay or has paid any
                                     solicitor and client bill of costs or part of that bill of
                                     costs;

                           (b) “taxing officer” means,


                                          - 1362 -
              THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 269/97                                                  COURT OF APPEAL
                                                            COURT OF QUEEN’S BENCH
                                                                CIVIL ENFORCEMENT

                             (i) where the barrister and solicitor carries on business
                                 in Alberta, the clerk or deputy clerk of the judicial
                                 centre nearest to where the solicitor carries on
                                 business,

                            (ii) where the barrister and solicitor does not carry on
                                 business in Alberta, the clerk or deputy clerk of the
                                 judicial centre nearest to where the client resides, or

                           (iii) notwithstanding subclauses (i) or (ii), any other
                                 clerk or deputy clerk as may be designated by the
                                 Court.
Who may             643.1 An account of a barrister and solicitor may be taxed in
request
taxation of
                    Alberta
costs
                        (a) at the request of a client if

                             (i) the barrister and solicitor resides in Alberta,

                            (ii) the barrister and solicitor’s principal office is in
                                 Alberta,

                           (iii) the barrister and solicitor’s account specifies an
                                 Alberta address for the barrister and solicitor or the
                                 law firm of the barrister and solicitor,

                           (iv) most of the services were performed in Alberta,

                            (v) the services were performed in connection with
                                legal proceedings commenced in Alberta in which
                                the barrister and solicitor was a barrister and
                                solicitor of record, or

                           (vi) the retainer agreement between the barrister and
                                solicitor and the client so provides;

                        (b) at the request of the barrister and solicitor if

                             (i) the client resides in Alberta,

                            (ii) the principal office or place of business of the client
                                 is in Alberta,

                           (iii) most of the services were performed in Alberta and
                                 the barrister and solicitor has no office in the
                                 jurisdiction where the client resides or carries on
                                 business, or

                           (iv) the retainer agreement between the barrister and
                                solicitor and the client so provides.


                                      - 1363 -
               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998




               17 The following is added after Rule 729.4:
Affidavits           729.5 Notwithstanding Rule 729.4, where an affidavit is filed
                     with a clerk by means of a telecopier, the original of that affidavit
                     must be filed with that clerk within 15 days from the day that the
                     affidavit was filed with that clerk by means of a telecopier.


               18(1) Subject to subsections (2) and (3), this Regulation, in
               accordance with the Regulations Act, comes into force on
               being filed under the Regulations Act.

               (2) Sections 2 and 14 come into force on January 1, 1998.

               (3) Sections 10, 11 and 17 come into force on February 1,
               1998.



                           Alberta Regulation 270/97

                            Justice of the Peace Act

             JUSTICE OF THE PEACE AMENDMENT REGULATION

                                                               Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 627/97) pursuant to section 7 of the
Justice of the Peace Act.

               1  The Justice of the Peace Regulation (AR 309/91) is
               amended by this Regulation.


               2 Section 3 is amended by adding the following after clause
               (k):

                 (k.1) the Trespass to Premises Act;




                                       - 1364 -
               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 271/97                                                      PROVINCIAL COURT



                                ------------------------------

                             Alberta Regulation 271/97

                                 Provincial Court Act

              MEDIATION RULES OF THE PROVINCIAL COURT
                           - CIVIL DIVISION

                                                                 Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 629/97) pursuant to section 21 of the
Provincial Court Act.

                                            Table of Contents

               Definitions                                                                 1
               Referral to mediation                                                       2
               Counsel’s duty to notify client and to confirm                              3
               Scheduling of mediation                                                     4
               Attendance and representation                                               5
               Confidentiality                                                             6
               Impartiality                                                                7
               Inadmissibility in other court proceedings                                  8
               Requirement as to good faith                                                9
               Mediator’s immunity from suit                                              10
               Exemption from mediation requirement                                       11
               Need for notice of completion to fix trial date                            12
               Failure to resolve, or termination                                         13
               Court’s power in case of non-attendance                                    14
               Time limit for mediation                                                   15
               Costs for further scheduling                                               16
               Notice of completion of mediation                                          17
               Closure where agreement performed                                          18
               Forms                                                                      19
               Application                                                                20

Definitions    1 In these Rules,

                    (a) “Court” means the Civil Division of the Provincial Court;

                    (b) “mediated agreement” means any written agreement reflecting
                        a consensus reached among the parties under these Rules as a
                        result of a mediation session;

                    (c) “mediation co-ordinator” means a supervisor of the Court’s
                        mediation program in the office of the Clerk of the Court who
                        holds the position of mediation co-ordinator;

                    (d) “mediation session” means a negotiation session arranged by or
                        under the auspices of the Court at which a mediator assists the
                        parties to identify the issues and the parties’ interests, structures

                                          - 1365 -
                   THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 271/97                                                       PROVINCIAL COURT

                            their discussions, facilitates communication among them and
                            provides them with the opportunity to resolve their case in a
                            mutually agreeable way with a view to settling the action and
                            thereby obviating the need for a trial;

                       (e) “mediator” means a person appointed by the Court or by a
                           mediation co-ordinator as a result of the application of these
                           Rules.

Referral to        2(1) At any time after a dispute note is filed, the Court or a mediation
mediation          co-ordinator may refer the action for mediation, on giving notice to the
                   parties or, where they are represented, to their counsel.

                   (2) On the request of any party, the Court or a mediation co-ordinator
                   may refer the action for a mediation session.

Counsel’s duty     3 On receipt of a notice pursuant to Rule 2, counsel for a party shall
to notify client   immediately provide a copy to that party and confirm to a mediation
and to confirm
                   co-ordinator in writing that this has been done.

Scheduling of      4(1) Where only one defendant is named in the action, a mediation
mediation
                   session may be scheduled after a dispute note is filed.

                   (2) Where 2 or more defendants are named, a mediation session may be
                   scheduled after

                       (a) a dispute note has been filed by one or more defendants, and

                       (b) a period of 20 days has passed since the filing of the civil claim.

Attendance         5(1) All the parties receiving notice under Rule 2(1) shall attend at a
and                mediation session.
representation

                   (2) If a party is incorporated, the corporation must be represented by an
                   individual who has knowledge of the facts and authority to resolve the
                   action on the corporation’s behalf.

                   (3) Counsel or an agent may attend with a party at a mediation session.

                   (4) Other persons may attend with the consent of all the parties and the
                   mediation co-ordinator or the mediator.

Confidentiality    6(1) Whatever is said at a mediation session is confidential if the parties
                   have agreed that it is to be kept confidential.

                   (2) Subrule (1) does not apply

                       (a) to anything contained in a mediated agreement, or


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ALTA. REG. 271/97                                                       PROVINCIAL COURT

                       (b) to evidence that is admitted under Rule 8(6)(b).

Impartiality       7 A mediator must be impartial and shall act impartially.


Inadmissibility    8(1) Anything said at a mediation session is inadmissible in any
in other Court     proceeding before the Court.
proceedings

                   (2) Any document or electronic record prepared or generated for the
                   purposes of a mediation session is privileged in the hands of the person
                   to whom it belongs.

                   (3) Neither the mediator nor any other person present at the mediation
                   session may be subpoenaed or otherwise required to testify or to produce
                   records or notes relating to the mediation in any proceeding before the
                   Court.

                   (4) A mediation session may not be taped, nor transcripts of it kept.

                   (5) Any record of what took place at a mediation session is not
                   admissible before the Court, unless the parties agree in writing.

                   (6) This Rule does not

                       (a) apply to a mediated agreement, or

                       (b) prevent the admission of factual evidence relating to the cause
                           of action that would be admissible apart from subrule (1) or (2).

Requirement        9 All parties to a mediation session and, if applicable, their
as to good faith
                   representatives must negotiate in good faith.

Mediator’s         10(1) No proceedings lie against a mediator or Her Majesty the Queen
immunity from
suit
                   in right of Alberta for anything done or not done while discharging or
                   purporting to discharge responsibilities under these Rules.

                   (2) A mediator has the same immunity from civil suit as has a judge of
                   the Court.

Exemption          11 Notwithstanding anything in these Rules, any party may apply to the
from mediation
requirement
                   Court, on at least 2 days’ notice being given to all the other parties, for
                   an order exempting the parties from the application of these Rules, and
                   the Court may, if it considers that there is good and sufficient reason to
                   do so, make an order to that effect setting out that reason.




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ALTA. REG. 271/97                                                         PROVINCIAL COURT

Need for notice     12 In order to arrange the fixing of a trial date, the parties must obtain,
of completion       and there must be produced to the Clerk of the Court, a notice of
to fix trial date
                    completion of mediation.

Failure to          13 Where the parties have completed a mediation session or any party
resolve, or
termination
                    or the mediator has terminated the mediation session for a reason which,
                    in the mediator’s opinion, is valid, the parties are to receive a notice of
                    completion of mediation.

Court’s power       14(1) Where a party did not attend a scheduled mediation session or
in case of non-
attendance
                    attended without the attendance of any person required by Rule 5, a
                    mediation co-ordinator shall complete a certificate of non-attendance at
                    mediation.

                    (2) Following the completion of the certificate and on application by any
                    party on at least 2 days’ notice to all the other parties, the Court may
                    make any one or more of the following orders:

                        (a) an order that further mediation occur, on any terms that the
                            Court considers appropriate;

                        (b) an order that the pleadings of the non-complying party be struck
                            out, unless that party satisfies the Court there was a reasonable
                            excuse for the non-attendance and that striking out the party’s
                            pleadings would be inequitable;

                        (c) an order that the action proceed to trial;

                        (d) such order as to costs as is appropriate in the circumstances;

                        (e) such other order as is appropriate in the circumstances.

Time limit for      15 A mediation session must occur within 3 months after the filing of
mediation
                    the last dispute note filed in the action, unless the Court extends that
                    period, which extension may be made before or after the end of that
                    3-month period.

Costs for           16 If a mediation does not proceed because of the non-attendance of
further
scheduling
                    one or more of the parties or of a representative of a party, the Court
                    may, on application to it or at trial, order each non-attending party to pay
                    costs of $50 to the other parties, with the $50 costs being prorated among
                    all the other parties if more than one.

Notice of           17 If a party seeks to have a trial date fixed, the party must, with the
completion of       request, file with the Clerk of the Court a notice of completion of
mediation
                    mediation and, if the party considers that a mediated agreement has been
                    breached, a written statement to that effect.




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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

Closure where   18 If a mediated agreement has been fully performed, the parties shall
agreement       ensure that
performed

                    (a) a notice of withdrawal of the action is or has been filed, or

                    (b) consent judgment is or has been given.

Forms           19 All notices, certificates and other documents referred to in or used
                for the purposes of these Rules are to be in the form required by the
                Court.

Application     20 These Rules apply in respect of a judicial district or a particular
                court facility only if the chief judge of the Court has designated that
                district or facility for the purposes of these Rules.



                                ------------------------------

                               Alberta Regulation 272/97

                     Marketing of Agricultural Products Act

              ALBERTA CATTLE COMMISSION PLAN REGULATION

                                                                 Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 635/97) pursuant to sections 23 and
54.1 of the Marketing of Agricultural Products Act.

                                            Table of Contents

                Definitions                                                             1
                Designations                                                            2

                                                Part 1
                                       General Operation of Plan

                                                Division 1
                                                  Plan

                Plan continued                                                          3
                Termination of Plan                                                     4
                Application of Plan                                                     5
                Purposes and intent of Plan                                             6

                                              Division 2
                                   Operation of Plan by Commission

                Commission continued                                                    7
                Functions of Commission                                                 8
                Regulations to operate Plan                                             9

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ALTA. REG. 272/97                     MARKETING OF AGRICULTURAL PRODUCTS

             Financing of Plan                                      10
             Service charge is non-refundable                       11
             Indemnification funds                                  12
             Industry advisory committee                            13
             Auditor                                                14

                                             Part 2
                                       Governance of Plan

                                           Division 1
                                       Eligible Producers

             General rights of eligible producers                   15
             Eligible producers who are individuals                 16
             Eligible producers that are not individuals            17

                                         Division 2
                            Zones, Delegates and Zone Committees

             Zones                                                  18
             Zone committees and delegates                          19
             Producer association delegates                         20
             Qualifications re zone and sub-zone delegates          21
             Qualifications re producer association delegates       22
             Election of delegates re zones 1 to 8                  23
             Election of delegates re zone 9                        24
             Election of delegates re producer associations         25
             Functions of delegates                                 26
             Term of office                                         27
             Delegate vacancy re zone or sub-zone delegate          28
             Delegate vacancy re producer association delegate      29
             Removal of delegate re zone or sub-zone delegate       30
             Removal of delegate re producer association delegate   31

                                         Division 3
                               Zone and Sub-zone Meetings and
                                  Zone Committee Meetings

             Annual and special zone meetings, re zones 1 to 8      32
             Annual and special zone meetings re zone 9             33
             Notification of zone and sub-zone meetings             34
             Zone committee meetings                                35
             Quorum                                                 36

                                           Division 4
                                           Directors

             Board of Directors                                     37
             Responsibilities of the Board of Directors             38
             Election of directors from zone                        39
             Election of directors at large                         40
             Functions of directors                                 41
             Term of office                                         42
             Director vacancy                                       43

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ALTA. REG. 272/97                     MARKETING OF AGRICULTURAL PRODUCTS

             Removal of zone directors                              44
             Removal of directors at large                          45
             Board of Directors meetings                            46
             Quorum                                                 47

                                             Division 5
                                             Executive

             Election of chair, vice-chair and finance chair        48
             Term of office                                         49
             Executive vacancy                                      50
             Removal of the Executive                               51

                                         Division 6
                             Committees of the Board of Directors

             Establishment of committees                            52
             Appointment of committee chairs and members            53
             Functions of committee                                 54
             Term of office                                         55
             Committee vacancy                                      56
             Removal of committee chairs                            57
             Removal of committee members                           58

                                         Division 7
                                     Commission Meetings

             Annual and special Commission meetings                 59
             Notification of Commission meetings                    60
             Quorum                                                 61
             Voting                                                 62

                                           Division 8
                                National and Other Organizations

             Commission membership in other organizations           63


                                             Part 3
                                      Voting and Elections

                                          Division 1
                                  Voting By Eligible Producers

             Eligibility to vote re individual                      64
             Eligibility to vote re non-individual                  65
             When to provide declaration                            66
             Voting at zone and sub-zone meetings                   67




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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

                                              Division 2
                                           Returning Officer

              Appointment of returning officer                                       68
              Duties of returning officer                                            69
              Destruction of ballots, etc.                                           70

                                             Division 3
                                        Controverted Elections

              Election irregularities                                                71
              Effect of no application re election irregularities                    72
              Effect of application re election irregularities                       73
              Effect of invalid election                                             74

                                                Part 4
                             Transitional Provisions, Review and Repeal

              Transitional re Directors, etc.                                        75
              Transitional re zone and sub-zone delegates                            76
              Review                                                                 77
              Repeal                                                                 78

              Schedules

Definitions   1 In this Regulation,

                    (a) “Act” means the Marketing of Agricultural Products Act;

                    (b) “cattle” includes bulls, cows, heifers, steers and calves;

                    (c) “cattle products” includes beef, offal, hides and other cattle
                        by-products from the slaughter and processing of cattle;

                    (d) “Commission” means the Alberta Cattle Commission;

                    (e) “Council” means the Alberta Agricultural Products Marketing
                        Council;

                    (f) “dealer” means a person who is in the business of buying and
                        selling the regulated product and includes

                            (i) a livestock dealer as defined in the Licensing and
                                Bonding of Livestock Dealers and Livestock Dealers
                                Agents Regulation (AR 450/83) or any successor to that
                                Regulation, and

                           (ii) a livestock dealer’s agent as defined in the Licensing
                                and Bonding of Livestock Dealers and Livestock
                                Dealers Agents Regulation (AR 450/83) or any
                                successor to that Regulation;

                    (g) “eligible producer” means a producer

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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

                            (i) who has, during the current or immediately preceding
                                year, sold cattle and paid a service charge to the
                                Commission or to another person on behalf of the
                                Commission, and

                           (ii) who is a resident of Alberta;

                    (h) “marketing” in respect of the regulated product means buying,
                        owning, selling, offering for sale, storing, grading, assembling,
                        packing, transporting, advertising or financing and includes

                            (i) slaughtering, and

                           (ii) any other function or activity designated as marketing
                                by the Lieutenant Governor in Council;

                    (i) “official Commission newsletter” means the newsletter that is
                        published by the Commission;

                    (j) “person” means a person as defined in the Interpretation Act
                        and includes

                            (i) a partnership as defined in the Partnership Act;

                           (ii) an unincorporated organization that is not a partnership
                                referred to in subclause (i);

                          (iii) any group of individuals who are carrying on an activity
                                for a common purpose and are neither a partnership
                                referred to in subclause (i) nor an unincorporated
                                organization referred to in subclause (ii);

                    (k) “Plan” means the Alberta Cattle Commission Plan that is
                        revised and continued under section 3;

                    (l) “processor” means a person who is in the business of buying
                        cattle for the purpose of slaughtering or otherwise processing
                        cattle;

                (m) “producer” means

                            (i) a person who raises, feeds or owns cattle, or

                           (ii) a person who takes possession of cattle from a producer
                                under a security interest or any other security for a debt;

                    (n) “producer association” means

                            (i) the Alberta Canada All Breeds Association (1984);

                           (ii) the Alberta Cattle Feeders’ Association;

                          (iii) the Alberta Milk Producers;



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ALTA. REG. 272/97                          MARKETING OF AGRICULTURAL PRODUCTS

                            (iv) the Feeder Associations of Alberta Ltd.;

                             (v) the Western Stock Growers Association;

                     (o) “regulated product” means cattle and cattle products;

                     (p) “security interest” means a security interest as defined in the
                         Personal Property Security Act.

Designations     2(1) Cattle and cattle products are hereby designated as agricultural
                 products for the purposes of the Act.

                 (2) Slaughtering of cattle is an activity that is hereby designated as
                 marketing for the purposes of the Act.


                                                 PART 1

                                 GENERAL OPERATION OF PLAN

                                               Division 1
                                                  Plan
Plan continued   3 The Alberta Cattle Commission Plan, 1969 established under Alberta
                 Regulation 170/69 is hereby revised and continued under this Regulation
                 with the name “Alberta Cattle Commission Plan”.

Termination of   4 This Plan does not terminate at the conclusion of a specific period of
Plan
                 time and shall remain in force unless otherwise terminated pursuant to
                 the Act.

Application of   5(1) This Plan applies
Plan
                     (a) to all of Alberta,

                     (b) to all producers who market cattle in Alberta, and

                     (c) for the purposes of section 9(b), (c) and (d) to all dealers and
                         processors in Alberta.

                 (2) If a person is a producer and is also a dealer or processor, this Plan
                 applies to that person both

                     (a) as a producer, and

                     (b) as a dealer or processor, as the case may be.

                 (3) None of the persons referred to in subsection (1)(b) or (c) is
                 exempted from the Plan.




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ALTA. REG. 272/97                          MARKETING OF AGRICULTURAL PRODUCTS

                 (4) No class, variety, size, grade or kind of agricultural product to which
                 this Plan applies is exempt from this Plan.

Purposes and     6(1) The purpose of this Plan is to enable the Commission to initiate and
intent of Plan   carry out projects or programs to commence, stimulate, increase or
                 improve the production or marketing, or both, of cattle and cattle
                 products.

                 (2) Without restricting the generality of subsection (1), the Commission
                 may initiate and carry out projects or programs

                     (a) to assist, educate and inform producers, dealers and processors
                         in developing and improving their production and marketing of
                         cattle and cattle products;

                     (b) to expand market awareness and demand for cattle and cattle
                         products, including the development and promotion of markets
                         for cattle and cattle products and the education of consumers;

                     (c) to generally develop and promote the cattle industry;

                     (d) to advise governments on matters concerning the cattle
                         industry;

                     (e) to research and study the production, marketing and processing
                         of cattle and cattle products, including studies and research
                         concerning the improvement of cattle and cattle products and
                         the development and use and consumption of cattle and cattle
                         products;

                      (f) to support and co-operate with other persons and with
                          governments when, in the opinion of the Board of Directors,
                          such support and cooperation will further the purposes of this
                          Plan and the objects of the Commission;

                     (g) to communicate with producers, dealers, processors and the
                         public;

                     (h) to establish quality standards for cattle and cattle products.

                 (3) Under this Plan neither the production nor the marketing of cattle
                 and cattle products shall be controlled or regulated.


                                            Division 2
                                 Operation of Plan by Commission
Commission       7 The Alberta Cattle Commission is hereby continued.
continued




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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

Functions of   8(1) The Commission is responsible for
Commission
                    (a) the administration, operation, regulation, supervision and
                        enforcement of this Plan and the regulations made by the
                        Commission;

                    (b) the conduct of the business and affairs of the Commission in
                        carrying out its responsibilities;

                    (c) the conduct and procedure at Commission, zone and sub-zone
                        meetings and elections.

               (2) Without limiting the generality of subsection (1), the Commission

                    (a) shall maintain an office in Alberta;

                    (b) may appoint a General Manager and prescribe the duties and fix
                        the remuneration of the General Manager;

                    (c) may allow the General Manager

                           (i) to retain other employees or contractors, other than the
                               auditor appointed pursuant to section 14, and

                           (ii) to prescribe the duties and remuneration payable to
                                those employees and contractors;

                    (d) shall open one or more bank accounts with one or more
                        financial institutions and designate any officers, employees and
                        other persons as persons permitted

                           (i) to sign cheques and other negotiable instruments,

                           (ii) to transact the business of the Commission with its
                                financial institutions, and

                          (iii) to generally do all things incidental to or in connection
                                with the transaction of the business of the Commission
                                with its financial institutions;

                    (e) shall maintain or cause to be maintained books and records that
                        from time to time may be required under the Act or the
                        regulations or by virtue of any order of the Council or that may
                        be required by the Commission;

                    (f) may become a member of, elect or appoint individuals to sit as
                        members of and contribute funds to any task force, committee,
                        group, organization or person when that membership, election,
                        appointment or contribution will, in the opinion of the Board of
                        Directors, further the purpose of this Plan and the objects of the
                        Commission;

                    (g) may issue directions governing the internal operations of the
                        Commission;

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ALTA. REG. 272/97                          MARKETING OF AGRICULTURAL PRODUCTS

                     (h) shall establish and implement policy for the operation of the
                         Commission and the implementation and operation of this Plan
                         and the regulations made by the Commission.

Regulations to   9(1) For the purposes of enabling the Commission to operate this Plan
operate Plan
                 the Commission may be empowered by the Council, pursuant to section
                 26 of the Act, to make regulations

                     (a) requiring producers engaged in the marketing of a regulated
                         product to register their names and addresses with the
                         Commission;

                     (b) requiring any person who markets a regulated product to furnish
                         to the Commission any information or record relating to the
                         marketing of the regulated product that the Commission
                         considers necessary;

                     (c) providing for

                             (i) the assessment, charging and collection of service
                                 charges from producers from time to time for the
                                 purposes of this Plan, and

                             (ii) the taking of legal action to enforce payment of the
                                  service charges;

                     (d) requiring any person who receives a regulated product from a
                         producer

                             (i) to deduct from the money payable to the producer any
                                 service charges payable by the producer to the
                                 Commission, and

                             (ii) to forward the amount deducted to the Commission;

                     (e) providing for the use of any class of service charges or other
                         money payable to or received by the Commission for the
                         purpose of paying its expenses and administering this Plan and
                         the regulations made by the Commission.

                 (2) Pursuant to section 28 of the Act the power to make regulations
                 referred to in subsection (1)(a) is to be restricted by the Council so that
                 the Commission will only be empowered to make regulations requiring
                 producers to register their names and addresses with the Commission so
                 as to enable the Commission to determine whether a producer is an
                 eligible producer and to assess, charge and collect service charges.

Financing of     10(1) This Plan shall be financed by the charging and collection of
Plan
                 service charges.

                 (2) The Commission may, from time to time, change the amount of the
                 service charge, but the change shall not be effective until it has been

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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                 approved by a majority of the total number of all of the delegates,
                 whether the zone delegates, the sub-zone delegates or the producer
                 association delegates, present at an annual Commission meeting or a
                 special Commission meeting.

Service charge   11 Service charges shall not be refundable on the request of a producer.
is non-
refundable
Indemnifi-       12 The Commission shall not establish a fund under section 34 or 35
cation funds
                 of the Act.

Industry         13 The Commission may establish industry advisory committees in
advisory
committee
                 accordance with section 32 of the Act.

Auditor          14 The auditor for the Commission shall be appointed at an annual
                 Commission meeting or a special Commission meeting.


                                                PART 2

                                      GOVERNANCE OF PLAN

                                              Division 1
                                         Eligible Producers
General rights   15 In accordance with this Plan, an eligible producer is entitled, as a
of eligible      matter of right,
producers

                     (a) to attend any zone or sub-zone meeting;

                     (b) to make representations on any matter pertaining to this Plan
                         and the operation of the Commission at any zone or sub-zone
                         meeting;

                     (c) to vote on any matter under this Plan at any meeting of eligible
                         producers at which a vote is held in the zone or sub-zone in
                         which the eligible producer resides;

                     (d) to vote in any election for zone delegates or sub-zone delegates
                         at any meeting of eligible producers at which an election is held
                         in the zone or sub-zone in which the eligible producer resides;

                     (e) to hold office as a zone delegate or a sub-zone delegate in the
                         zone or sub-zone in which the eligible producer resides;

                     (f) to hold office as a producer association delegate;

                     (g) to vote in any plebiscites of producers held under the Act.




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ALTA. REG. 272/97                            MARKETING OF AGRICULTURAL PRODUCTS

Eligible          16(1) Where an eligible producer is an individual, that individual may,
producers who     subject to this Plan, exercise the rights of an eligible producer referred to
are individuals
                  in section 15.

                  (2) An eligible producer who is an individual shall not appoint a
                  representative to act on behalf of that eligible producer under this Plan.

Eligible          17(1) Where an eligible producer is not an individual, that eligible
producers that    producer may, only in accordance with this section, exercise the rights
are not
individuals       of an eligible producer referred to in section 15.

                  (2) An eligible producer to which this section applies shall appoint an
                  individual to be the representative of the eligible producer.

                  (3) A representative of an eligible producer to which this section applies
                  must reside in a zone or, in the case of zone 9, in a sub-zone in which the
                  eligible producer carries on business as a producer.

                  (4) For the purposes of this Plan, an eligible producer to which this
                  section applies is deemed to reside in the zone or sub-zone in which the
                  representative of the eligible producer resides.

                  (5)A representative appointed by an eligible producer under this section
                  shall, subject to this Plan, exercise on behalf of the eligible producer, the
                  rights referred to in section 15.

                  (6) An individual cannot be a representative under this section for more
                  than one eligible producer at any one time.

                  (7) An individual shall not exercise any of the rights referred to in
                  section 15 in that individual’s own capacity as an eligible producer while
                  appointed as the representative of an eligible producer.

                  (8) If an eligible producer is

                      (a) a corporation, it shall appoint an individual who is a director,
                          shareholder, member, officer or employee of the corporation as
                          its representative,

                      (b) a partnership, it shall appoint an individual who is a partner or
                          employee of the partnership as its representative, or

                      (c) an organization, other than a corporation or a partnership, it
                          shall appoint an individual who is a member, officer or
                          employee of the organization as its representative.

                  (9) An appointment of a representative under this section shall be

                      (a) in writing in a form prescribed or otherwise acceptable to the
                          Board of Directors, and

                      (b) filed with the Board of Directors before the representative is
                          nominated or appointed to hold office.

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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS



                                           Division 2
                             Zones, Delegates and Zone Committees
Zones            18(1) For the purposes of this Plan,

                     (a) Alberta is divided into 9 zones, and

                     (b) zone 9 is divided into 5 sub-zones.

                 (2) The area included

                     (a) in each zone is set out in Schedule 1 to this Plan, and

                     (b) in each sub-zone of zone 9 is set out in Schedule 2 to this Plan.

Zone             19(1) The Commission shall have 9 zone committees.
committees
and delegates
                 (2) In the case of zones 1 to 8, the zone committee shall consist of 7
                 zone delegates to be elected pursuant to section 23.

                 (3) In the case of zone 9, the zone committee shall consist of

                     (a) 5 sub-zone delegates, one sub-zone delegate to be elected from
                         each sub-zone pursuant to section 24, and

                     (b) 2 zone delegates to be elected from the entire zone pursuant to
                         section 24.

Producer         20 The Commission shall have 8 producer association delegates to be
association
delegates
                 elected pursuant to section 25.

Qualifications   21(1) A zone delegate or a sub-zone delegate must
re zone and
sub-zone
delegates            (a) be an eligible producer or a representative of an eligible
                         producer,

                     (b) in the case of a zone delegate, reside in the zone that the zone
                         delegate is elected to represent, and

                     (c) in the case of a sub-zone delegate, reside in the sub-zone that
                         the sub-zone delegate is elected to represent.

                 (2) Notwithstanding subsection (1), a zone delegate or sub-zone
                 delegate may complete that zone delegate’s or sub-zone delegate’s term
                 of office even though

                     (a) that delegate

                             (i) ceases to be an eligible producer;


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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                            (ii) in the case of a zone delegate, ceases to reside in the
                                 zone that the zone delegate was elected to represent;

                           (iii) in the case of a sub-zone delegate, ceases to reside in the
                                 sub-zone that the sub-zone delegate was elected to
                                 represent;

                     (b) in the case of that zone delegate or sub-zone delegate being the
                         representative of an eligible producer,

                             (i) that eligible producer ceases to be an eligible producer,
                                 or

                            (ii) that delegate ceases to be a representative of the eligible
                                 producer.

Qualifications   22(1) A producer association delegate must be
re producer
association
delegates            (a) an eligible producer or a representative of an eligible producer,
                         and

                     (b) a member in good standing of the producer association that the
                         producer association delegate is elected to represent.

                 (2) Notwithstanding subsection (1), a producer association delegate may
                 complete that delegate’s term of office even though

                     (a) that delegate ceases to be an eligible producer;

                     (b) in the case of that delegate being the representative of an
                         eligible producer,

                             (i) that eligible producer ceases to be an eligible producer,
                                 or

                            (ii) that delegate ceases to be the representative of the
                                 eligible producer.

Election of      23 In the case of zones 1 to 8,
delegates re
zones 1 to 8
                     (a) the eligible producers in each zone shall at that zone’s annual
                         zone meeting elect 7 zone delegates to represent the eligible
                         producers from that zone;

                     (b) where less than or only a sufficient number of eligible producers
                         have been nominated to fill the required number of positions of
                         zone delegates for a zone, the returning officer shall declare the
                         eligible producers nominated as being elected by acclamation;

                     (c) where less than the required number of zone delegates have
                         been declared elected by acclamation, the zone delegates who
                         have been declared elected shall, subject to the approval of the

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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

                        Board of Directors, appoint eligible producers to the remaining
                        positions and the eligible producers so appointed shall hold
                        office as if elected.

Election of    24 In the case of zone 9 and the sub-zones of zone 9,
delegates re
zone 9
                    (a) the eligible producers in each sub-zone shall at that sub-zone’s
                        annual sub-zone meeting elect one sub-zone delegate to
                        represent the eligible producers from that sub-zone;

                    (b) in addition to electing one sub-zone delegate, the eligible
                        producers in each sub-zone shall at that sub-zone’s annual
                        sub-zone meeting cast ballots in an election for 2 delegates who
                        shall be zone delegates to represent all the eligible producers
                        from zone 9;

                    (c) the zone delegates shall be elected based on the total number of
                        votes that were cast at the 5 annual sub-zone meetings in the
                        election for the zone delegates;

                    (d) where less than or only a sufficient number of eligible producers
                        have been nominated to fill the required number of positions of
                        zone delegates or the position of sub-zone delegate, the
                        returning officer shall declare the eligible producers nominated
                        as being elected by acclamation;

                    (e) where less than the required number of zone delegates and
                        sub-zone delegates have been declared elected by acclamation,
                        the zone delegates and sub-zone delegates who have been
                        declared elected shall, subject to the approval of the Board of
                        Directors, appoint eligible producers to the remaining positions
                        and the eligible producers so appointed shall hold office as if
                        elected.

Election of    25 In the case of producer associations,
delegates re
producer
associations        (a) each of the producer associations may elect one or more
                        producer association delegates as follows:

                            (i) the Alberta Canada All Breeds Association (1984) may
                                elect one delegate;

                           (ii) the Alberta Cattle Feeders’ Association may elect 2
                                delegates;

                          (iii) the Alberta Milk Producers may elect one delegate;

                          (iv) the Feeder Associations of Alberta Ltd. may elect 2
                               delegates;

                           (v) the Western Stock Growers Association may elect 2
                               delegates;

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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) each producer association shall elect its producer association
                        delegate or delegates, as the case may be, before November 15
                        in the year in which an election is to take place;

                    (c) where less than or only a sufficient number of eligible producers
                        have been nominated to fill the required number of positions of
                        producer association delegate for a producer association, the
                        producer association shall declare the eligible producers
                        nominated as being elected by acclamation;

                    (d) where less than the required number of producer association
                        delegates for a producer association have been declared elected
                        by acclamation, the producer association shall appoint an
                        eligible producer to the remaining position and the eligible
                        producer so appointed shall hold office as if elected.

Functions of   26 In addition to what an eligible producer may do under this Plan,
delegates
                    (a) a zone delegate, sub-zone delegate or producer association
                        delegate may, in the zone or sub-zone in which the delegate
                        resides,

                           (i) attend zone committee meetings,

                           (ii) at zone committee meetings make representations on
                                any matter pertaining to this Plan or the operation of the
                                Commission, and

                    (b) a zone delegate or sub-zone delegate may

                           (i) hold office as a zone director, and

                           (ii) at a zone committee meeting,

                               (A) vote on any matter under this Plan, and

                               (B) vote in any election for a zone director;

                    (c) a delegate may, on behalf of the zone, sub-zone or producer
                        association that the delegate represents,

                           (i) attend any annual or special meeting of the Commission,
                               and

                           (ii) at any annual or special meeting of the Commission,

                               (A) make representations on any matter pertaining to
                                   this Plan or the operation of the Commission,

                               (B) vote on any matter under this Plan, and

                               (C) vote in any election for



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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                                      (I) directors at large of the Commission,

                                     (II) directors of the      Canadian     Cattlemen’s
                                          Association, and

                                    (III) members of the Beef Information Centre;

                     (d) a zone delegate, sub-zone delegate and producer association
                         delegate may

                             (i) hold office as a

                                (A) director at large of the Commission;

                                (B) director of the Canadian Cattlemen’s Association;

                                (C) member of the Beef Information Centre;

                            (ii) be appointed by the Board of Directors to sit as a
                                 member of a committee established by the Board of
                                 Directors;

                            (iii) be appointed by the Board of Directors to represent the
                                  Commission on any task force, committee, group or
                                  organization of which the Commission is a member.

Term of office   27(1) In the case of zones 1 to 8, the term of office of a zone delegate

                     (a) commences on the announcement of the results of the elections
                         held at the annual zone meeting, and

                     (b) expires on the announcement of the results of the elections held
                         at the annual zone meeting, that take place in the 2nd year
                         following the year in which the term commenced.

                 (2) In the case of zone 9, the term of office of a zone delegate or a
                 sub-zone delegate

                     (a) commences on the announcement of the results of the elections
                         held at the annual sub-zone meetings, and

                     (b) expires on the announcement of the results of the elections held
                         at the annual sub-zone meetings, that take place in the 2nd year
                         following the year in which the term commenced.

                 (3) In the case of a producer association delegate, the term of office

                     (a) commences at the beginning of the day on November 15 of the
                         year in which the producer association delegate was elected, and

                     (b) expires at the end of the day on November 14 in the 2nd year
                         following the year in which the term commenced.



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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                (4) An eligible producer shall not serve for more than 3 consecutive
                terms as a zone delegate, sub-zone delegate or producer association
                delegate.

                (5) If an eligible producer serves for 3 consecutive terms as a delegate,
                whether as a zone delegate, a sub-zone delegate or a producer association
                delegate, that eligible producer is not eligible to serve again as a
                delegate, whether as a zone delegate, sub-zone delegate or producer
                association delegate, until one year has expired following the expiry of
                that eligible producer’s last term of office as a delegate.

                (6) For the purpose of determining the number of consecutive terms that
                an eligible producer may serve as a zone delegate, sub-zone delegate or
                producer association delegate, the unexpired term of office served by a
                zone delegate, sub-zone delegate or producer association delegate who
                is appointed or elected pursuant to section 28, 29, 30, 31 or 74 shall be
                considered to be a term of office.

Delegate        28(1) In the case of zones 1 to 8, if a zone delegate ceases to hold office
vacancy re
zone or sub-
                before the expiry of that zone delegate’s term of office, the remaining
zone delegate   zone delegates shall appoint another eligible producer as a zone delegate
                to serve for the unexpired portion of that term of office.

                (2) In the case of zone 9, if a zone delegate or a sub-zone delegate ceases
                to hold office before the expiry of that zone delegate’s or sub-zone
                delegate’s term of office, the remaining zone delegates and sub-zone
                delegates shall appoint another eligible producer as a zone delegate or
                sub-zone delegate to serve for the unexpired portion of that term of
                office.

Delegate        29 If a producer association delegate ceases to hold office before the
vacancy re      expiry of that producer association delegate’s term of office, the
producer
association     producer association shall elect or appoint another eligible producer as
delegate        a producer association delegate to serve for the unexpired portion of that
                term of office.

Removal of      30(1) In the case of zones 1 to 8, the eligible producers may, at a special
delegate re
zone or sub-
                zone meeting, remove any zone delegate from office.
zone delegate
                (2) In the case of zone 9, the eligible producers may

                    (a) at a special zone meeting remove any zone delegate from office,
                        and

                    (b) at a special sub-zone meeting of a sub-zone remove the
                        sub-zone delegate for that sub-zone from office.

                (3) In the case of zones 1 to 8, where a vacancy is created by the
                removal of a zone delegate,




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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (a) the eligible producers may, at the special zone meeting at which
                        the zone delegate was removed, appoint a zone delegate from
                        among the eligible producers to serve for the unexpired portion
                        of that term of office, or

                    (b) if the zone delegate is not appointed under clause (a), the
                        position may be filled under section 28.

               (4) In the case of zone 9, where a vacancy is created by the removal of
               a zone delegate or a sub-zone delegate,

                    (a) the eligible producers may, at the special zone meeting or
                        special sub-zone meeting at which the zone delegate or
                        sub-zone delegate was removed, appoint a zone delegate or
                        sub-zone delegate from among the eligible producers to serve
                        for the unexpired portion of that term of office, or

                    (b) if the zone delegate or sub-zone delegate is not appointed under
                        clause (a), the position may be filled under section 28.

Removal of     31(1) A producer association may at any meeting of the producer
delegate re
producer
               association remove any producer association delegate from office.
association
delegate       (2) Where a vacancy is created by the removal of a producer association
               delegate,

                    (a) the producer association may, at the meeting at which the
                        producer association delegate was removed, appoint a producer
                        association delegate from among the eligible producers to serve
                        for the unexpired portion of that term of office, or

                    (b) if the producer association delegate is not appointed under
                        clause (a), the position may be filled under section 29.


                                         Division 3
                               Zone and Sub-zone Meetings and
                                  Zone Committee Meetings
Annual and     32(1) In the case of zones 1 to 8, each zone committee
special zone
meetings, re
zones 1 to 8        (a) shall, before the commencement of the annual Commission
                        meeting, hold an annual zone meeting of the eligible producers
                        who reside within the zone;

                    (b) shall hold a special zone meeting of the eligible producers who
                        reside within the zone

                           (i) on the written request of not less than 50 eligible
                               producers residing in the zone,

                           (ii) on the written request of the Board of Directors, or


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ALTA. REG. 272/97                          MARKETING OF AGRICULTURAL PRODUCTS

                             (iii) on the written request of the Council;

                      (c) may hold a special zone meeting of the eligible producers who
                          reside within the zone when the zone committee is of the
                          opinion that circumstances warrant the holding of a special zone
                          meeting.

                  (2) An annual zone meeting or special zone meeting held pursuant to
                  this section may consist of 3 or more individual meetings held within the
                  zone, the total of which shall constitute the annual zone meeting or
                  special zone meeting, as the case may be.

Annual and        33(1) In the case of zone 9, the zone committee
special zone
meetings re
zone 9                (a) shall, before the commencement of the annual Commission
                          meeting, hold in each sub-zone an annual sub-zone meeting of
                          the eligible producers who reside within the sub-zone;

                      (b) shall hold in a sub-zone a special sub-zone meeting of the
                          eligible producers who reside within the sub-zone

                              (i) on the written request of not less than 10 eligible
                                  producers residing in the sub-zone,

                             (ii) on the written request of the Board of Directors, or

                             (iii) on the written request of the Council;

                      (c) may hold in a sub-zone a special sub-zone meeting of the
                          eligible producers who reside within the sub-zone when the
                          zone committee is of the opinion that circumstances warrant the
                          holding of a special sub-zone meeting;

                      (d) may hold a special zone meeting of the eligible producers who
                          reside within the zone when the zone committee is of the
                          opinion that circumstances warrant the holding of a special zone
                          meeting.

                  (2) An annual sub-zone meeting or special sub-zone meeting held
                  pursuant to this section shall consist of one individual meeting held
                  within the sub-zone.

                  (3) A special zone meeting held pursuant to this section may consist of
                  3 or more individual meetings held within the zone, the total of which
                  shall constitute the special zone meeting.

Notification of   34(1) In the case of zones 1 to 8, where an annual zone meeting or a
zone and sub-     special zone meeting is to be held, the Board of Directors shall give
zone meetings
                  notice of the meeting to the eligible producers residing in the zone in
                  which the meeting is to be held by publishing a notice, not less than 2
                  weeks before the meeting takes place,


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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                    (a) in the official Commission newsletter, and

                    (b) in a newspaper circulating in the zone.

             (2) In the case of zone 9, where

                    (a) an annual sub-zone meeting or special sub-zone meeting is to be
                        held, the Board of Directors shall give notice of the meeting to
                        the eligible producers residing in the sub-zone in which the
                        meeting is to be held by publishing a notice, not less than 2
                        weeks before the meeting takes place,

                            (i) in the official Commission newsletter, and

                            (ii) in a newspaper circulating in the sub-zone,

                       or

                    (b) a special zone meeting is to be held, the Board of Directors shall
                        give notice of the meeting to the eligible producers residing in
                        the zone by publishing a notice, not less than 2 weeks before the
                        meeting takes place,

                            (i) in the official Commission newsletter, and

                            (ii) in a newspaper circulating in the zone, or in newspapers
                                 circulating in the individual sub-zones.

             (3) A notice given under this section shall set out

                    (a) the time, place, date and purpose of the meeting, and

                    (b) any other information as determined by the Board of Directors,
                        the zone committee or the zone director.

Zone         35(1) A zone committee shall conduct meetings of the zone delegates
committee
meetings
                    (a) at the call of the zone director, or

                    (b) at the request of the Board of Directors.

             (2) At zone committee meetings,

                    (a) in the case of zones 1 to 8, the zone delegates are eligible to
                        vote on each matter put to the question, and

                    (b) in the case of zone 9, the zone delegates and sub-zone delegates
                        are eligible to vote on each matter put to the question.




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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

Quorum       36(1) In the case of zones 1 to 8, the quorum necessary to conduct
             business, hold a vote on any matter or have an election is,

                    (a) in the case of an annual zone meeting or special zone meeting
                        that consists of one individual meeting held within the zone, not
                        fewer than 15 eligible producers who

                           (i) are present at the meeting, and

                           (ii) reside within the zone in respect of which the meeting is
                                being conducted;

                    (b) in the case of an annual zone meeting or special zone meeting
                        that consists of more than one individual meeting held within
                        the zone, not fewer than 5 eligible producers who

                           (i) are present at each individual meeting, and

                           (ii) reside within the zone in respect of which the meeting is
                                being conducted.

             (2) In the case of zone 9 and the sub-zones of zone 9, the quorum
             necessary to conduct business, hold a vote on any matter or to have an
             election is,

                    (a) in the case of annual sub-zone meetings or special sub-zone
                        meetings, not fewer than 5 eligible producers who

                           (i) are present at the meeting, and

                           (ii) reside within the sub-zone in respect of which the
                                meeting is being conducted;

                    (b) in the case of a special zone meeting

                           (i) where a special zone meeting consists of one individual
                               meeting held within the zone, not fewer than 15 eligible
                               producers who

                               (A) are present at the meeting, and

                               (B) reside within the zone;

                           (ii) where a special zone meeting consists of more than one
                                individual meeting held within the zone, not fewer than
                                5 eligible producers who

                               (A) are present at each individual meeting, and

                               (B) reside with the zone.

             (3) The quorum necessary to conduct business, hold a vote on any
             matter or have an election is



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ALTA. REG. 272/97                             MARKETING OF AGRICULTURAL PRODUCTS

                       (a) in the case of a zone committee meeting for zones 1 to 8, a
                           majority of the zone delegates then holding office;

                       (b) in the case of a zone committee meeting for zone 9, a majority
                           of the zone delegates and sub-zone delegates then holding
                           office.


                                                   Division 4
                                                   Directors
Board of           37(1) The Commission shall have a Board of Directors and, subject to
Directors
                   subsection (2), the Board of Directors shall consist of

                       (a) 12 directors, made up of

                                (i) 9 zone directors elected pursuant to section 39, and

                                (ii) 3 directors at large elected pursuant to section 40

                          and

                       (b) the past chair of the Commission, except when the current chair
                           of the Commission is re-elected for a subsequent term.

                   (2) Where

                       (a) a zone director becomes the chair of the Commission, and

                       (b) that zone elects a new zone director to represent the zone
                           pursuant to section 39(3),

                   the Board of Directors shall consist of

                       (c) 13 directors, made up of

                                (i) the chair of the Commission,

                                (ii) 9 zone directors elected pursuant to section 39, and

                             (iii) 3 directors at large elected pursuant to section 40

                          and

                       (d) the past Chair of the Commission, except when the current chair
                           of the Commission is re-elected for a subsequent term.

Respons-           38(1) The responsibilities of the Commission, the authority delegated
ibilities of the   to the Commission by the Council and the direction, administration and
Board of
Directors          management of the Commission’s work, business and affairs, including
                   the control and management of all the assets owned, held or acquired by
                   the Commission, are vested in the Board of Directors.


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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                 (2) The Board of Directors has the power to do all things necessary to
                 carry out the purpose of this Plan and the responsibilities and authority
                 of the Commission.

                 (3) The Board of Directors may authorize any person, entity or
                 committee to exercise any of the powers of the Board of Directors as set
                 forth in this Plan or otherwise.

                 (4) Where a person, entity or committee is authorized under subsection
                 (3) to exercise any power of the Board of Directors,

                     (a) that person, entity or committee shall report back to the Board
                         of Directors with respect to the exercise of that power, and

                     (b) the Board of Directors shall retain a supervisory function to
                         oversee the actions of that person, entity or committee in the
                         exercise of that power.

Election of      39(1) In the case of zones 1 to 8, in each year after the announcement
directors from
zone
                 of the results of the elections of the zone delegates but before the
                 commencement of the annual Commission meeting, each zone
                 committee shall elect from among its zone delegates a zone delegate who
                 shall be both

                     (a) the zone director for that zone, and

                     (b) a zone director of the Commission.

                 (2) In the case of zone 9, in each year after the announcement of the
                 results of the elections of the zone delegates and sub-zone delegates but
                 before the commencement of the annual Commission meeting, the zone
                 committee shall elect from among its zone delegates and sub-zone
                 delegates a zone delegate or sub-zone delegate who shall be both

                     (a) the zone director for that zone, and

                     (b) a zone director of the Commission.

                 (3) Where a zone director becomes the chair of the Commission,

                     (a) that zone director is relieved of the duties of the zone director
                         and ceases to be the zone director to represent the zone;

                     (b) in the case of zones 1 to 8, the zone committee shall elect from
                         among the zone delegates another zone delegate who shall be
                         both

                             (i) the zone director for that zone, and

                            (ii) a zone director of the Commission;




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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                    (c) in the case of zone 9, the zone committee shall elect from
                        among the zone delegates or sub-zone delegates another zone
                        delegate or sub-zone delegate who shall be both

                            (i) the zone director for that zone, and

                           (ii) a zone director of the Commission.

               (4) Where,

                    (a) in the case of zones 1 to 8, only one zone delegate has been
                        nominated to fill the position of zone director for a zone, the
                        returning officer shall declare the zone delegate nominated as
                        being elected by acclamation, and

                    (b) in the case of zone 9, only one zone delegate or sub-zone
                        delegate has been nominated to fill the position of zone director
                        for the zone, the returning officer shall declare the zone delegate
                        or sub-zone delegate nominated as being elected by
                        acclamation.

               (5) Where a zone director for a zone has not been elected under
               subsections (1), (2) or (3) and has not been declared elected by
               acclamation under subsection (4), the Board of Directors shall

                    (a) in the case of zones 1 to 8, appoint a zone delegate to the
                        position of zone director and the zone delegate so appointed
                        shall hold office as if elected, and

                    (b) in the case of zone 9, appoint a zone delegate or sub-zone
                        delegate to the position of zone director and the zone delegate
                        or sub-zone delegate so appointed shall hold office as if elected.

Election of    40(1) At the annual Commission meeting, the zone delegates, sub-zone
directors at   delegates and producer association delegates shall elect from among
large
               themselves 3 directors at large.

               (2) Where less than or only a sufficient number of zone delegates,
               sub-zone delegates or producer association delegates have been
               nominated to fill the required number of director at large positions, the
               returning office shall declare the zone delegates, sub-zone delegates or
               producer association delegates nominated as being elected by
               acclamation.

               (3) Where less than the required number of directors at large have been
               declared elected by acclamation under subsection (2), the zone directors
               and the directors at large that have been elected shall appoint a zone
               delegate, sub-zone delegate or producer association delegate to the
               remaining positions and the zone delegate, sub-zone delegate or producer
               association delegate so appointed shall hold office as if elected.




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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

Functions of     41 In addition to any function that a zone delegate, sub-zone delegate
directors        or producer association delegate may carry out under this Plan, a zone
                 director or director at large may

                     (a) attend Board of Directors meetings;

                     (b) at Board of Directors meetings

                             (i) make representations on any matter pertaining to this
                                 Plan or the operation of the Commission, and

                            (ii) vote on any matter under this Plan;

                     (c) vote at an election for the chair of the Commission, vice-chair
                         of the Commission and finance chair of the Commission;

                     (d) hold office as chair of the Commission, vice-chair of the
                         Commission or finance chair of the Commission;

                     (e) be elected or appointed by the Board of Directors as the chair,
                         vice-chair or as a member of any committee established by the
                         Board of Directors;

                     (f) be elected or appointed by the Board of Directors to represent
                         the Commission on any task force, committee group or
                         organization of which the Commission is a member.

Term of office   42(1) The term of office of a zone director elected at the annual zone
                 committee meeting

                     (a) commences immediately on the zone director for that zone
                         being declared elected at the annual Commission meeting held
                         following that zone director’s election at the annual zone
                         committee meeting, and

                     (b) expires immediately on a zone director for that zone being
                         declared elected at the next annual Commission meeting held
                         following that zone director’s election at the next annual zone
                         committee meeting.

                 (2) The terms of office of the directors at large elected at the annual
                 Commission meeting

                     (a) commence immediately on the directors at large being declared
                         elected at the annual Commission meeting, and

                     (b) expire immediately on the directors at large being declared
                         elected at the next annual Commission meeting.




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ALTA. REG. 272/97                          MARKETING OF AGRICULTURAL PRODUCTS

Director         43(1) Where a zone director ceases to hold office before the expiry of
vacancy          that zone director’s term of office,

                     (a) in the case of zones 1 to 8, the zone committee shall elect from
                         among its zone delegates another zone delegate to be both

                             (i) the zone director for that zone, and

                             (ii) a zone director of the Commission,

                          to serve for the unexpired portion of that term of office, and

                     (b) in the case of zone 9, the zone committee shall elect from
                         among its zone delegates and sub-zone delegates another zone
                         delegate or sub-zone delegate to be both

                             (i) the zone director for the zone, and

                             (ii) a zone director of the Commission,

                          to serve for the unexpired portion of that term of office.

                 (2) Where a director at large ceases to hold office before the expiry of
                 that director’s term of office, the Board of Directors shall, subject to the
                 approval of the Council, appoint another zone delegate, sub-zone
                 delegate or producer association delegate as a director at large to serve
                 for the unexpired portion of that term of office.

Removal of       44(1) In the case of zones 1 to 8,
zone directors
                     (a) the zone delegates may, at a special zone committee meeting,
                         remove their zone director from office, and

                     (b) where a vacancy is created by the removal of a zone director,

                             (i) the zone delegates may at the zone committee meeting
                                 at which the zone director was removed appoint a zone
                                 director from among the zone delegates to serve for the
                                 unexpired portion of that term of office, or

                             (ii) if a zone director is not appointed under subclause (i),
                                  the position may be filled under section 43(1).

                 (2) In the case of zone 9,

                     (a) the zone delegates and the sub-zone delegates may, at a special
                         zone committee meeting, remove their zone director from
                         office, and

                     (b) where a vacancy is created by the removal of a zone director,

                             (i) the zone delegates and sub-zone delegates may at the
                                 zone committee meeting at which the zone director was

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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

                                removed appoint a zone director from among the zone
                                delegates and sub-zone delegates to serve for the
                                unexpired portion of that term of office, or

                           (ii) if a zone director is not appointed under subclause (i),
                                the position may be filled under section 43(1).

Removal of     45(1) Zone delegates, sub-zone delegates and producer association
directors at   delegates may, at a special Commission meeting, remove any director at
large
               large from office.

               (2) Where a vacancy is created by the removal of a director at large,

                    (a) the zone delegates, sub-zone delegates and producer association
                        delegates may, at the special Commission meeting at which the
                        director at large was removed, appoint a director at large from
                        among the zone delegates, sub-zone delegates and producer
                        association delegates to serve for the unexpired portion of that
                        term of office, or

                    (b) if a director at large is not appointed under clause (a), the
                        position may be filled under section 43(2).

Board of       46(1) The Board of Directors may, at the call of the chair of the
Directors
meetings
               Commission, conduct meetings of the Board of Directors.

               (2) The zone directors and directors at large are eligible to vote on each
               matter put to the question before the Board of Directors.

               (3) Unless the past chair of the Commission is ineligible to serve as a
               zone delegate, sub-zone delegate or producer association delegate by
               virtue of section 27(4) and (5), the past chair is eligible to vote on each
               matter put to the question before the Board of Directors.

Quorum         47 The quorum necessary for the Board of Directors to conduct
               business, hold a vote on any matter or have an election is a majority of
               the total number of all of the following individuals who hold office at the
               time:

                    (a) the zone directors;

                    (b) the directors at large;

                    (c) the chair of the Commission, if a zone director was elected as
                        chair of the Commission;

                    (d) the past chair of the Commission, if the past chair is a member
                        of the Board of Directors and is eligible to vote.




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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                                               Division 5
                                               Executive
Election of      48(1) At the first meeting of the Board of Directors following the annual
chair, vice-
chair and
                 Commission meeting, the Board of Directors shall elect from among
finance chair    themselves

                     (a) a chair of the Commission,

                     (b) a vice-chair of the Commission, and

                     (c) a finance chair of the Commission.

                 (2) The chair of the Commission, the vice-chair of the Commission and
                 the finance chair of the Commission together with the past chair of the
                 Commission, if the past chair is eligible to vote under section 46(3),
                 form the members of the Executive of the Board of Directors.

                 (3) Where only one director, whether a zone director or a director at
                 large, has been nominated for the position of chair of the Commission,
                 vice-chair of the Commission or finance chair of the Commission, the
                 director so nominated shall be declared elected by acclamation.

Term of office   49(1) The term of office of a member of the Executive, other than the
                 past chair of the Commission,

                     (a) commences immediately on the member’s being declared
                         elected at the first meeting of the Board of Directors following
                         the annual Commission meeting, and

                     (b) expires immediately on a member who is to fill that position on
                         the Executive being declared elected as that member of the
                         Executive at the first meeting of the Board of Directors
                         following the next annual Commission meeting.

                 (2) The term of office of the past chair of the Commission

                     (a) commences immediately on another chair’s being elected at the
                         first meeting of the Board of Directors following the annual
                         Commission meeting, and

                     (b) expires at the first meeting of the Board of Directors following
                         the next annual Commission meeting.

Executive        50 Where a member of the Executive, other than the past chair of the
vacancy          Commission, ceases to hold office before the expiry of that member’s
                 term of office, the Board of Directors may elect another zone director or
                 director at large to that position on the Executive to serve for the
                 unexpired portion of that term of office.




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ALTA. REG. 272/97                          MARKETING OF AGRICULTURAL PRODUCTS

Removal of the   51(1) The Board of Directors may, at a meeting of the Board, remove
Executive        a member of the Executive, other than the past chair of the Commission,
                 from office.

                 (2) Where a vacancy is created by the removal of a member of the
                 Executive under subsection (1),

                     (a) the Board of Directors may, at the meeting of the Board at
                         which the member of the Executive was removed, appoint
                         another zone director or director at large as that member of the
                         Executive to serve for the unexpired portion of that term of
                         office, or

                     (b) if the member of the Executive is not appointed under clause
                         (a), that position may be filled under section 50.


                                          Division 6
                              Committees of the Board of Directors
Establishment    52(1) The Board of Directors may establish standing or special
of committees    committees as the Board of Directors may from time to time consider
                 necessary.

                 (2) The Board of Directors may from time to time dissolve, suspend or
                 re-establish any committee.

Appointment of   53(1) The Board of Directors shall appoint a chair of each committee
committee        from among the zone directors and directors at large.
chairs and
members
                 (2) In consultation with the chair of a committee, the Board of Directors
                 may appoint the committee members from among the zone delegates,
                 sub-zone delegates, producer association delegates, zone directors,
                 directors at large, producers or any other individuals.

                 (3) The chair, vice-chair and finance chair of the Commission are ex
                 officio members of all committees unless otherwise determined by the
                 Board of Directors.

Functions of     54(1) The duties of a committee are to carry out the purpose, intent and
committee
                 responsibilities of the Commission with regard to the work assigned to
                 the committee by the Board of Directors and to investigate and make
                 recommendations and reports on specific matters referred to the
                 committee by the Board of Directors.

                 (2) Each committee shall submit to the Board of Directors a report and
                 review of the committee’s activities at least once each year in advance of
                 the annual Commission meeting.




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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

Term of office   55(1) The term of office for a chair of a committee

                     (a) commences on the announcement of the appointment of a zone
                         director or director at large as the chair of the committee
                         following the annual Commission meeting, and

                     (b) expires on the announcement of the appointment of a zone
                         director or director at large as the chair of that committee
                         following the next annual Commission meeting.

                 (2) The term of office for a member of a committee commences on the
                 announcement of the appointment of a zone delegate, sub-zone delegate,
                 producer association delegate, zone director, director at large, producer
                 or other individual as a member of that committee following the
                 announcement of the appointment of the chair of the committee and
                 expires

                     (a) in the case of a zone delegate, sub-zone delegate, producer
                         association delegate, zone director or director at large, on the
                         termination of the term of office of that member of the
                         committee as a zone delegate, sub-zone delegate, producer
                         association delegate, zone director or director at large, and

                     (b) in the case of a producer or other individual, at the pleasure of
                         the Board of Directors.

Committee        56(1) Where a chair of a committee ceases to hold office before the
vacancy
                 expiry of that chair’s term of office, the Board of Directors may appoint
                 another zone director or director at large as the chair of that committee
                 to serve for the unexpired portion of that term of office.

                 (2) Where a member of a committee ceases to hold office before the
                 expiry of that member’s term of office as a member of that committee,
                 the Board of Directors, in consultation with the chair of that committee,
                 may appoint another zone delegate, sub-zone delegate, producer
                 association delegate, zone director, director at large, producer or other
                 individual as a member of that committee to serve for the unexpired
                 portion of that term of office.

Removal of       57(1) The Board of Directors may, at a meeting of the Board, remove
committee
chairs
                 any chair of a committee from office.

                 (2) Where a vacancy is created by the removal of a chair of a committee,

                     (a) the Board of Directors may, at the meeting of the Board at
                         which the chair of the committee was removed, appoint another
                         zone director or director at large as chair of the committee to
                         serve for the unexpired portion of that term of office, or

                     (b) if a chair of a committee is not appointed under clause (a), that
                         position may be filled under section 56.


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ALTA. REG. 272/97                           MARKETING OF AGRICULTURAL PRODUCTS


Removal of        58(1) The Board of Directors may, at a meeting of the Board, remove
committee
members
                  any member of a committee from office.

                  (2) Where a vacancy is created by the removal of a member of a
                  committee,

                      (a) the Board of Directors may, at the meeting of the Board at
                          which the member of the committee was removed, appoint
                          another zone delegate, sub-zone delegate, producer association
                          delegate, zone director, director at large, producer or other
                          individual as a member of that committee to serve for the
                          unexpired portion of that term of office, or,

                      (b) if a member of the committee is not appointed under clause (a),
                          that position may be filled under section 56.


                                              Division 7
                                          Commission Meetings
Annual and        59 The Board of Directors
special
Commission
meetings              (a) shall hold an annual Commission meeting of the zone delegates,
                          sub-zone delegates and producer association delegates once in
                          each year;

                      (b) shall hold a special Commission meeting on

                              (i) the written request of a majority of the total number of
                                  all the zone delegates, sub-zone delegates and producer
                                  association delegates, or

                             (ii) the written request of the Council;

                      (c) may hold a special Commission meeting when the Board of
                          Directors is of the opinion that circumstances warrant the
                          holding of a special Commission meeting.

Notification of   60(1) Where an annual Commission meeting or a special Commission
Commission        meeting is to be held, the Board of Directors shall in writing notify the
meetings
                  zone delegates, sub-zone delegates and producer association delegates
                  of the meeting by sending a notice of the meeting to each delegate at the
                  delegate’s last known address.

                  (2) A notice given under this section

                      (a) shall be sent to the zone delegates, sub-zone delegates and
                          producer association delegates at least 15 days before the
                          meeting referred to in the notice is to take place, and

                      (b) shall set out


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ALTA. REG. 272/97                        MARKETING OF AGRICULTURAL PRODUCTS

                            (i) the time, place, date and purpose of the meeting, and

                           (ii) any other information as determined by the Board of
                                Directors.

Quorum          61 The quorum necessary to conduct business, hold a vote on any
                matter or have an election at an annual Commission meeting or a special
                Commission meeting is not fewer than 40 zone delegates, sub-zone
                delegates and producer association delegates who are present at the
                meeting.

Voting          62 At an annual Commission meeting or at a special Commission
                meeting the zone delegates, sub-zone delegates and producer association
                delegates may each

                    (a) vote on each matter put to the question, and

                    (b) in the case of an election for directors at large, vote in an
                        election for directors at large.


                                          Division 8
                               National and Other Organizations
Commission      63 The Commission is entitled to become the provincial member of,
membership in   elect or appoint individuals to sit as directors or members of and
other
organizations   contribute funds to

                    (a) the Canadian Cattlemen’s Association,

                    (b) the Beef Information Centre,

                    (c) the Canada Beef Export Federation, and

                    (d) any task force, committee, group, organization or person when
                        such membership, election, appointment or contribution will
                        further the purpose of this Plan and the objects of the
                        Commission.




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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                                                PART 3

                                     VOTING AND ELECTIONS

                                            Division 1
                                   Voting by Eligible Producers
Eligibility to   64 Where an eligible producer is an individual, that individual may
vote re
individual
                 vote in an election or on any matter under this Plan only if

                     (a) the individual’s name appears on the current voters list, or

                     (b) the individual, prior to the vote being cast, makes a declaration
                         stating that the individual

                             (i) is an eligible producer,

                            (ii) resides in the zone or sub-zone in which the election or
                                 vote is being held,

                           (iii) has not previously voted in the election or on the matter
                                 in respect of which the individual wishes to cast a vote,
                                 and

                           (iv) has not been appointed as the representative of an
                                eligible producer who is not an individual for the
                                purpose of the election or the matter in respect of which
                                the individual wishes to cast a vote.

Eligibility to   65 Where an eligible producer is not an individual, the representative
vote re non-     of the eligible producer may vote in an election or on any matter under
individual
                 this Plan only if

                     (a) the eligible producer’s name appears on the current voters list,
                         and

                     (b) that representative, prior to the vote being cast, makes a
                         declaration stating that

                             (i) the representative has been appointed in writing as the
                                 representative of the eligible producer,

                            (ii) the representative is the only representative of the
                                 eligible producer,

                           (iii) the eligible producer carries on business as a producer
                                 and the representative of the eligible producer resides in
                                 the zone or sub-zone in which the election or vote is
                                 being held,

                           (iv) the representative has not, in the representative’s own
                                capacity as an eligible producer, previously voted in the


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ALTA. REG. 272/97                         MARKETING OF AGRICULTURAL PRODUCTS

                                  election or on the matter in respect of which the
                                  representative wishes to cast a vote, and

                             (v) the representative has not previously voted in the
                                 election or on the matter in respect of which the
                                 representative wishes to cast a vote on behalf of the
                                 eligible producer.

When to          66 A declaration referred to in sections 64 and 65 shall,
provide
declaration
                     (a) in the case of an election, be provided to or made before the
                         returning officer or deputy returning officer, or

                     (b) in the case of a vote other than an election, be provided to or
                         made before a zone director, director at large or officer of the
                         Commission.

Voting at zone   67 An eligible producer who
and sub-zone
meetings
                     (a) resides in the zone or sub-zone, and

                     (b) is present at the annual zone meeting, annual sub-zone meeting,
                         special zone meeting or special sub-zone meeting, as the case
                         may be,

                 is eligible to vote

                     (c) on each matter put to the question, and

                     (d) for such number of candidates as the eligible producer chooses,
                         not exceeding the number of zone delegates or sub-zone
                         delegates to be elected.


                                             Division 2
                                          Returning Officer
Appointment of   68(1) The Board of Directors shall appoint a returning officer for the
returning
officer
                 purposes of and in connection with any election held under this Plan.

                 (2) The returning officer may appoint deputy returning officers to assist
                 in the conduct of elections held under this Plan.

Duties of        69 The returning officer, in respect of an election under this Plan,
returning
officer
                     (a) may compile and maintain a voters list of eligible producers
                         who are entitled to vote under this Plan,

                     (b) shall ensure that an eligible producer does not cast a vote except
                         in accordance with this Plan, and


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ALTA. REG. 272/97                            MARKETING OF AGRICULTURAL PRODUCTS

                     (c) shall permit scrutiny by any scrutineer of all the actions of the
                         returning officer and the deputy returning officers.

Destruction of   70 Unless otherwise directed by the Council, neither the returning
ballots, etc.    officer nor any other person shall destroy any records or ballots in
                 respect of an election held under this Plan until not less than 90 days
                 have elapsed from the date on which the election was held.


                                               Division 3
                                         Controverted Elections
Election         71 If an eligible producer
irregularities
                     (a) questions

                              (i) the eligibility of a candidate,

                              (ii) the eligibility of a voter,

                            (iii) any matter relating to a ballot or the tabulation of
                                  ballots, or

                            (iv) any irregularity with respect to the conduct of an
                                 election,

                        and

                     (b) seeks to have the election declared invalid and the position
                         declared vacant,

                 that person must, not later than 30 days after the day on which the
                 election was held, apply in writing to the Council to have the election
                 declared invalid and the position declared vacant.

Effect of no     72 If, within the 30-day period referred to in section 71, the Council has
application re
election
                 not received an application under section 71, an eligible producer who
irregularities   was elected at that election is deemed to be duly elected.

Effect of        73(1) An application to have an election declared invalid and a position
application re   declared vacant which has not been received by the Council within 30
election
irregularities   days from the date of the election shall not be considered by the Council.

                 (2) On receipt of an application under section 71, the Council shall
                 consider the matter and may

                     (a) declare the election to be proper and the position filled, if, in the
                         opinion of the Council, there is no basis for the application,




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ALTA. REG. 272/97                             MARKETING OF AGRICULTURAL PRODUCTS

                        (b) declare the election to be proper and the position filled,
                            notwithstanding that there is a basis for the application, if, in the
                            opinion of the Council,

                                (i) the basis of the application did not materially affect the
                                    result of the election, and

                                (ii) the election was conducted substantially in accordance
                                     with this Plan and the Act,

                           or

                        (c) declare the election to be void and the position vacant, if, in the
                            opinion of the Council, there is a basis for the application and
                            the basis is sufficient to, or did, affect the result of the election.

Effect of invalid   74(1) Notwithstanding that an election is declared void and a position
election
                    is declared vacant under section 73(2), the term of office for the position
                    declared vacant is nevertheless deemed to have commenced on the day
                    that the voided election was held.

                    (2) If the Council declares an election to be void and the position vacant,
                    the Council may

                        (a) order that, within the time that the Council considers proper, a
                            special Commission meeting, special zone meeting or special
                            sub-zone meeting, as the case may be, be held and an election
                            be conducted to fill the vacant position, or

                        (b) appoint from among the eligible producers who are eligible to
                            be elected to the position an eligible producer to fill the vacant
                            position.

                    (3) Where an eligible producer

                        (a) is elected to a position under subsection (2)(a), or

                        (b) is appointed to a position under subsection (2)(b)

                    that eligible producer shall serve for the unexpired portion of the term.


                                                     PART 4

                        TRANSITIONAL PROVISIONS, REVIEW AND REPEAL
Transitional re     75 The zone directors, directors at large, zone delegates, sub-zone
Directors, etc.
                    delegates, producer association delegates and the chair of the
                    Commission, vice-chair of the Commission and finance chair of the
                    Commission who held office immediately before the coming into force
                    of this Regulation shall continue to hold office until their terms of office
                    to which they were elected expire, or their successors to the positions are
                    sooner elected or replaced under this Regulation.

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Transitional re   76(1) In this section “conclusion of the 1998 annual meetings” means
zone and sub-
zone delegates
                  the point in time at which the last meeting of all of the 1998 annual zone
                  meetings and sub-zone meetings is concluded.

                  (2) Notwithstanding section 18, until the conclusion of the 1998 annual
                  meetings,

                      (a) in the case of zones 1 to 8, the zone committee shall consist of
                          8 zone delegates elected pursuant to section 23;

                      (b) in the case of zone 9, the zone committee shall consist of 5
                          sub-zone delegates and 3 zone delegates elected pursuant to
                          section 24.

                  (3) With respect to the zone delegates elected in 1997, section 23 shall
                  until the conclusion of the 1998 annual meetings be applied as if, in the
                  case of zones 1 to 8, the number of delegates to be elected from each
                  zone is 8 delegates.

                  (4) With respect to the zone delegates and sub-zone delegates elected in
                  1997, section 24 shall until the conclusion of the 1998 annual meetings
                  be applied as if, in the case of zone 9,

                      (a) the number of sub-zone delegates to be elected is 5 sub-zone
                          delegates, consisting of one sub-zone delegate elected from
                          each sub-zone, and

                      (b) the number of zone delegates to be elected is 3 zone delegates.

                  (5) With respect to the number of zone delegates and sub-zone delegates
                  who are to be elected to attend the 1998 annual Commission meeting,
                  sections 23 and 24 shall apply to those elections.

Review            77 In compliance with the ongoing regulatory review initiative, this
                  Regulation must be reviewed on or before December 31, 2002.

Repeal            78 Alberta Regulation 170/69 is repealed.


                                              SCHEDULE 1

                                                  ZONES

                  1 Zone number 1 is comprised of those lands that are located within the
                  following areas:

                      (a) County of Vulcan No. 2;

                      (b) County of Newell No. 4;

                      (c) County of Forty Mile No. 8;

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ALTA. REG. 272/97                       MARKETING OF AGRICULTURAL PRODUCTS

                    (d) M.D. of Cypress No. 1;

                    (e) M.D. of Taber No. 14;

                    (f) that area of Special Area No. 2 that lies south of the Red Deer
                        River;

                    (g) any city, town or village that is encompassed by the land
                        described in clauses (a) to (f).


             2 Zone number 2 is comprised of those lands that are located within the
             following areas:

                    (a) County of Warner No. 5;

                    (b) County of Lethbridge No. 26;

                    (c) M.D. of Cardston No. 6;

                    (d) M.D. of Pincher Creek No. 9;

                    (e) M.D. of Willow Creek No. 26;

                    (f) M.D. of Ranchland No. 66;

                    (g) Municipality of Crowsnest Pass;

                    (h) I.D. No. 4 (Waterton);

                    (i) I.D. No. 5 (Kananaskis);

                    (j) I.D. No. 6;

                    (k) any city, town or village that is encompassed by the land
                        described in clauses (a) to (j).


             3 Zone number 3 is comprised of those lands that are located within the
             following areas:

                    (a) County of Wheatland No. 16;

                    (b) County of Mountainview No. 17;

                    (c) M.D. of Bighorn No. 8;

                    (d) M.D. of Foothills No. 31;

                    (e) M.D. of Rockyview No. 44;

                    (f) I.D. No. 9 (Banff);




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ALTA. REG. 272/97                       MARKETING OF AGRICULTURAL PRODUCTS

                    (g) any city, town or village that is encompassed by the land
                        described in clauses (a) to (f).


             4 Zone number 4 is comprised of those lands that are located within the
             following areas:

                    (a) County of Paintearth No. 18;

                    (b) County of Flagstaff No. 29;

                    (c) M.D. of Acadia No. 34;

                    (d) M.D. of Provost No. 52;

                    (e) M.D. of Wainwright No. 61;

                    (f) that area of Special Area No. 2 that lies north of the Red Deer
                        River;

                    (g) Special Area No. 3;

                    (h) Special Area No. 4;

                    (i) any city, town or village that is encompassed by the land
                        described in clauses (a) to (h).


             5 Zone number 5 is comprised of those lands that are located within the
             following areas:

                    (a) County of Stettler No. 6;

                    (b) County of Lacombe No. 14;

                    (c) County of Red Deer No. 23;

                    (d) M.D. of Badlands No. 7;

                    (e) M.D. of Starland No. 47;

                    (f) M.D. of Kneehill No. 48;

                    (g) M.D. of Clearwater No. 99;

                    (h) any city, town or village that is encompassed by the land
                        described in clauses (a) to (g).


             6 Zone number 6 is comprised of those lands that are located within the
             following areas:

                    (a) County of Ponoka No. 3;


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ALTA. REG. 272/97                           MARKETING OF AGRICULTURAL PRODUCTS

                    (b) County of Beaver No. 9;

                    (c) County of Wetaskiwin No. 10;

                    (d) County of Strathcona No. 20;

                    (e) County of Camrose No. 22;

                    (f) County of Leduc No. 25;

                    (g) County of Parkland No. 31;

                    (h) I.D. 13 (Elk Island);

                    (i) M.D. of Brazeau No. 77;

                    (j) any city, town or village that is encompassed by the land
                        described in clauses (a) to (i).


             7 Zone number 7 is comprised of those lands that are located within the
             following areas:

                    (a) County of Thorhild No. 7;

                    (b) County of Barrhead No. 11;

                    (c) County of Athabasca No. 12;

                    (d) County of Lac Ste. Anne No. 28;

                    (e) M.D. of Woodlands No. 15;

                    (f) M.D. of Opportunity No. 17;

                    (g) M.D. of Sturgeon No. 90;

                    (h) M.D. of Westlock No. 92;

                    (i) M.D. of Yellowhead No. 94;

                    (j) M.D. of Lesser Slave River No. 124;

                    (k) I.D. 12 (Jasper);

                    (l) any city, town or village that is encompassed by the land
                        described in clauses (a) to (k).


             8 Zone number 8 is comprised of those lands that are located within the
             following areas:

                    (a) County of Smoky Lake No. 13;


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                    (b) County of St. Paul No. 19;

                    (c) County of Two Hills No. 21;

                    (d) County of Vermilion River No. 24;

                    (e) County of Minburn No. 27;

                    (f) County of Lamont No. 30;

                    (g) M.D. of Bonnyville No. 87;

                    (h) Municipality of Wood Buffalo;

                    (i) I.D. 24 (Wood Buffalo);

                    (j) any city, town or village that is encompassed by the land
                        described in clauses (a) to (i).


             9 Zone number 9 is comprised of those lands that are located within the
             following areas:

                    (a) County of Grande Prairie No. 1;

                    (b) M.D. of Greenview No. 16;

                    (c) M.D. of Birch Hills No. 19;

                    (d) M.D. of Saddle Hills No. 20;

                    (e) M.D. of Clear Hills No. 21;

                    (f) M.D. of Northern Lights No. 22;

                    (g) M.D. of MacKenzie No. 23;

                    (h) M.D. of Big Lakes No. 125;

                    (i) M.D. of Smoky River No. 130;

                    (j) M.D. of East Peace No. 131;

                    (k) M.D. of Spirit River No. 133;

                    (l) M.D. of Peace No. 135;

                (m) M.D. of Fairview No. 136;

                    (n) any city, town or village that is encompassed by the land
                        described in clauses (a) to (m).




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ALTA. REG. 272/97                       MARKETING OF AGRICULTURAL PRODUCTS

                                          SCHEDULE 2

                                     SUB-ZONES IN ZONE 9

             1 Sub-zone 9-1 is comprised of those lands that are located within the
             following areas:

                    (a) M.D. 23 (High Level, Ft. Vermilion, La Crete areas);

                    (b) that area of M.D. 22 north of Chinook Valley Road (Keg River,
                        Manning and Dixonville areas).


             2 Sub-zone 9-2 is comprised of those lands that are located within the
             following areas:

                    (a) M.D. 21 (Worsley, Cleardale, Hines Creek areas);

                    (b) M.D. 136 (Fairview area);

                    (c) M.D. 135 (Berwyn, Grimshaw, Peace River area);

                    (d) M.D. 131 West (Three Creeks, Nampa area);

                    (e) that area of M.D. 22 south of Chinook Valley Road.


             3 Sub-zone 9-3 is comprised of those lands that are located within the
             following areas:

                    (a) M.D. 20 (Gordondale, Silver Valley area);

                    (b) M.D. 133 (Spirit River area);

                    (c) M.D. 19 (Wanham, Eaglesham area);

                    (d) M.D. 130 (Smoky River, Falher area).


             4 Sub-zone 9-4 is comprised of those lands that are located within the
             following areas:

                    (a) County No. 1 (Grande Prairie, Beaverlodge area);

                    (b) that area of M.D. 16 west of the Simonette River.


             5 Sub-zone 9-5 is comprised of those lands that are located within the
             following areas:

                    (a) that area of M.D. 16 east of the Simonette River (Valleyview,
                        Debolt, Little Smoky area);

                    (b) M.D. 125 East (High Prairie, Kinuso area).

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ALTA. REG. 273/97                       MARKETING OF AGRICULTURAL PRODUCTS




                              ------------------------------

                            Alberta Regulation 273/97

                    Marketing of Agricultural Products Act

              ALBERTA VEGETABLE GROWERS (PROCESSING)
                         PLAN REGULATION

                                                                Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 636/97) pursuant to sections 23 and
54.1 of the Marketing of Agricultural Products Act.

                                            Table of Contents

               Definitions                                                           1
               Designation                                                           2
               Plan continued                                                        3
               Termination of Plan                                                   4
               Application of Plan                                                   5
               Financing of Plan                                                     6
               Board                                                                 7
               Purpose and intent                                                    8
               Operation of Plan                                                     9
               Districts                                                            10
               Composition of Board                                                 11
               Meetings                                                             12
               By-laws                                                              13
               Annual general meetings                                              14
               Nominations                                                          15
               Secret ballot                                                        16
               Term of office                                                       17
               Loss of eligibility                                                  18
               Vacancy                                                              19
               Eligibility to vote                                                  20
               Voting                                                               21
               Representatives                                                      22
               Returning officer                                                    23
               Election records                                                     24
               Quorum                                                               25
               Result of invalid election                                           26
               Controverted election                                                27
               Indemnification funds                                                28
               Transitional                                                         29
               Repeal                                                               30
               Expiry                                                               31
               Coming into force                                                    32

Definitions    1 In this Regulation,


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ALTA. REG. 273/97                         MARKETING OF AGRICULTURAL PRODUCTS

                     (a) “Act” means the Marketing of Agricultural Products Act;

                     (b) “Board” means the Alberta Vegetable Growers (Processing)
                         Board continued under this Regulation;

                     (c) “district” means a district established under section 10;

                     (d) “person” means a person as defined in the Interpretation Act
                         and includes

                            (i) a partnership as defined in the Partnership Act,

                            (ii) any unincorporated organization that is not a partnership
                                 referred to in subclause (i), and

                           (iii) any group of individuals that is carrying on an activity
                                 for a common purpose and is neither a partnership
                                 referred to in subclause (i) nor an unincorporated
                                 organization referred to in subclause (ii);

                     (e) “Plan” means the Alberta Vegetable Growers (Processing) Plan;

                     (f) “processing” means the changing of the nature or form of a
                         regulated product and without restricting the generality of the
                         foregoing includes cooking, canning, freezing, drying,
                         dehydrating or compressing the regulated product;

                     (g) “processor” means any person engaged in processing;

                     (h) “producer” means any person who produces regulated product;

                     (i) “registered producer” means a producer who is registered with
                         the Board and who holds or has held, within the previous 18
                         months, a contract with a processor to grow the regulated
                         product;

                     (j) “regulated product” includes peas, corn, wax beans, green
                         beans, cucumbers, carrots, red beets, pumpkins, asparagus,
                         tomatoes, cabbage and cauliflower and any other vegetables
                         produced for processing except potatoes and sugar beets.

Designation      2 Peas, corn, wax beans, green beans, cucumbers, carrots, red beets,
                 pumpkins, asparagus, tomatoes, cabbage and cauliflower and any other
                 vegetables produced for processing except potatoes and sugar beets are
                 designated as agricultural products for the purposes of the Act.

Plan continued   3(1) The Alberta Vegetable Growers’ Marketing Plan established under
                 the Alberta Vegetable Growers Marketing Plan Regulation (AR 95/93)
                 is hereby amended and continued under this Regulation with the name
                 “Alberta Vegetable Growers (Processing) Plan”.




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ALTA. REG. 273/97                          MARKETING OF AGRICULTURAL PRODUCTS

                 (2) The Alberta Vegetable Growers (Processing) Plan operates pursuant
                 to this Regulation.

Termination of   4 This Plan does not terminate at the conclusion of a specific period of
Plan             time and remains in force unless otherwise terminated pursuant to the
                 Act.

Application of   5 This Plan applies
Plan
                     (a) to that part of Alberta that is contained within the districts,

                     (b) to all persons who are producers and who

                              (i) produce the regulated product on land contained within
                                  the districts, or

                              (ii) market that regulated product,

                        and

                     (c) for the purposes of section 9(1)(b), (c), (d), (e), (f), (g) and (i)
                         and (2)(c) to (j), to processors who process the regulated
                         product produced on land contained within the districts.

Financing of     6(1) The Plan must be financed by charging and collecting service
Plan
                 charges, licence fees and levies, or any of them.

                 (2) The amount of a service charge and the method by which it may be
                 assessed must be as prescribed by the Board.

                 (3) A processor must

                     (a) deduct the service charge from payments due to registered
                         producers, and

                     (b) pay the service charge to the Board

                 in the manner prescribed by the Board.

                 (4) The amounts of licence fees and levies and the manner in which they
                 may be assessed and collected must be as prescribed by the Board.

Board            7(1) The board with the name “Alberta Vegetable Growers’ Marketing
                 Board” established under the Alberta Vegetable Growers Marketing
                 Plan Regulation (AR 95/93) is hereby continued with the name “Alberta
                 Vegetable Growers (Processing) Board”.

                 (2) The Board must operate pursuant to this Plan.

                 (3) The Board

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ALTA. REG. 273/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (a) is responsible, subject to the Act, for the operation, regulation,
                        supervision and enforcement of the Plan,

                    (b) must

                            (i) open one or more accounts in and designate any officers,
                                employees and other persons necessary to sign cheques
                                and transact the Board’s business with its bank, loan
                                corporation, trust corporation, credit union, treasury
                                branch or other depository, and

                            (ii) generally do all things incidental to or in connection
                                 with the transaction of the Board’s business with its
                                 bank, loan corporation, trust corporation, credit union,
                                 treasury branch or other depository,

                      and

                    (c) must maintain or cause to be maintained books and records that

                            (i) are required under the Act, the regulations or by virtue
                                of any order of the Council, or

                            (ii) are required by the Board,

                        and the books and records must be open for inspection at all
                        reasonable times at the office of the Board on the written
                        request of a registered producer or any member of the Council.

              (4) The Board is hereby empowered to accept and exercise any power
              and authority vested in the Board by the Lieutenant Governor in Council
              or the Council or delegated to the Board by the Council.

              (5) The Board may become a member of or contribute funds to a farm
              organization.

              (6) The Board may appoint officers and agents, prescribe their duties
              and fix and provide for their remuneration.

Purpose and   8 The purpose of the Plan is to provide for the effective control and
intent        regulation in all respects of the production and marketing of the
              regulated product in Alberta and, without limitation, to accomplish the
              following:

                    (a) to maintain and improve methods and practices of producing,
                        harvesting, transporting, grading, processing, packing, storing
                        and marketing the regulated product;

                    (b) to provide for licensing of processors and registered producers;

                    (c) to maintain a fair and stabilized price for the regulated product;




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ALTA. REG. 273/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (d) to maintain and improve the orderly marketing of the regulated
                        product;

                    (e) to provide a uniform, high quality of regulated product for
                        processing;

                    (f) to maintain and improve advertising for and the promotion of
                        the processed regulated product;

                    (g) to ensure that the regulated product is supplied in quantities
                        sufficient to allow for a continuous year-round supply of the
                        processed regulated product for the trade and consumer market;

                    (h) to ensure that producers sell the regulated product to or through
                        a processor licensed by the Board;

                    (i) to work with marketing boards or organizations in Canada
                        having purposes similar to those of the Plan.

Operation of   9(1) For the purposes of enabling the Board to operate the Plan, the
Plan           Board may be empowered by the Council, pursuant to section 26 of the
               Act, to make regulations

                    (a) requiring producers engaged in the production or marketing, or
                        both, of the regulated product to register their names and
                        addresses with the Board;

                    (b) requiring any person who produces, markets or processes the
                        regulated product to furnish to the Board any information or
                        record relating to the production, marketing or processing of the
                        regulated product that the Board considers necessary;

                    (c) requiring persons to be licensed under the Plan before they
                        become engaged in the production, marketing and processing,
                        or any one or more of those functions, of the regulated product;

                    (d) prohibiting persons from engaging in the production, marketing
                        or processing, as the case may be, of the regulated product
                        except under the authority of a licence;

                    (e) governing the issuance, suspension or cancellation of a licence;

                    (f) providing for

                            (i) the assessment, charging and collection of service
                                charges and licence fees, as the case may be, from
                                producers from time to time for the purposes of the Plan,
                                and

                           (ii) the taking of legal action to enforce payment of the
                                service charges and licence fees, as the case may be;




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ALTA. REG. 273/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (g) requiring any person who receives the regulated product from
                        a producer

                           (i) to deduct from the money payable to the producer any
                               service charges, licence fees or levies, as the case may
                               be, payable by the producer to the Board, and

                           (ii) to forward the amount deducted to the Board;

                    (h) providing for the use of any class of service charges, licence
                        fees, levies or other money payable to or received by the Board
                        for the purpose of paying its expenses and administering the
                        Plan and the regulations made by the Board;

                    (i) requiring persons who produce, market or process the regulated
                        product to mark the containers of their products to show the
                        place of origin or place of production to the satisfaction of the
                        Board.

             (2) For the purposes of enabling the Board to operate the Plan, the Board
             may be empowered by the Council, pursuant to section 27(1) of the Act,
             to make regulations

                    (a) establishing

                           (i) a formula for determining the amount of the regulated
                               product deemed to have been produced or marketed by
                               a producer, and

                           (ii) the period of time in respect of which the formula is to
                                be applied,

                        for the purposes of determining the amount of the regulated
                        product produced or marketed by a producer during a period of
                        time;

                    (b) requiring a producer who produces the regulated product to
                        market the regulated product through a designated agency;

                    (c) directing, controlling or prohibiting, as the case may be, the
                        production or marketing, or both, of the regulated product or
                        any class, variety, size, grade or kind of the regulated product
                        in a manner that the Board considers appropriate;

                    (d) regulating and controlling the production or marketing, or both,
                        of the regulated product, including the times and places at
                        which the regulated product may be produced or marketed;

                    (e) providing for the establishment and operation of one or more
                        programs for the disposition of any of the regulated product
                        considered to be surplus to market requirements;

                    (f) determining from time to time the minimum price or prices that
                        must be paid to producers for the regulated product or any class,

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ALTA. REG. 273/97                         MARKETING OF AGRICULTURAL PRODUCTS

                         variety, grade, size or kind of the regulated product and
                         determining different prices for different parts of Alberta;

                     (g) providing for the payment to a producer of the money payable
                         or owing for the regulated product, less any service charges and
                         levies owing to the Board by the producer, and fixing the time
                         or times at which or within which the payments must be made;

                     (h) providing for the collection from any person by legal action of
                         money owing to a producer for the regulated product;

                     (i) prohibiting any person from marketing or processing any of the
                         regulated product that has not been sold by or through a
                         designated agency.

Districts        10(1) For the purposes of representation, Alberta is divided into the
                 following 3 districts:

                     (a) Coaldale District, which consists of the land lying within Range
                         19, south of Township 20 to the United States border and west
                         of Range 19 to the British Columbia/Alberta border;

                     (b) Taber District, which consists of the land lying within Range 18
                         south of the Oldman River and south of the South
                         Saskatchewan River to the United States border, and east of
                         Range 18 to the Saskatchewan/Alberta border;

                     (c) Vauxhall District, which consists of the land lying within Range
                         18 north of the Oldman River and the South Saskatchewan
                         River and south of Township 27 and east of Range 18 to the
                         Saskatchewan/Alberta border.

                 (2) Meetings of the registered producers of a district may be called

                     (a) by the Board or the Council at any time, or

                     (b) by the Board on the written request of at least 3 registered
                         producers for that district.

Composition of   11(1) The Board consists of 7 members as follows:
Board
                     (a) one member representing the Coaldale District;

                     (b) one member representing the Vauxhall District;

                     (c) 4 members representing the Taber District;

                     (d) one individual as Chair elected in accordance with this
                         Regulation.

                 (2) The Board may remove the Chair if


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ALTA. REG. 273/97                         MARKETING OF AGRICULTURAL PRODUCTS

                     (a) in the opinion of the Board the Chair no longer represents the
                         interests of the vegetable processing industry, and

                     (b) at least 5 of the 7 members of the Board, other than the Chair,
                         vote to do so.

                 (3) The Board may remove the vice-chair if

                     (a) in the opinion of the Board the vice-chair no longer represents
                         the interests of the vegetable processing industry, and

                     (b) at least 5 of the 7 members of the Board, other than the
                         vice-chair, vote to do so.

Meetings         12 The Board

                     (a) must hold an annual general meeting of registered producers at
                         the date, time and place fixed by the Board,

                     (b) must hold special general meetings of registered producers
                         when the Board considers it appropriate to do so, and

                     (c) must hold a special meeting of registered producers on receipt
                         of a written request

                            (i) by the Council, or

                            (ii) by not less than 10% of the registered producers.

By-laws          13 Subject to the Act and the regulations, the Board may make by-laws
                 governing the calling and holding of annual general meetings, special
                 general meetings and special meetings.

Annual general   14(1) At each annual general meeting the registered producers must
meetings
                     (a) elect individuals to fill the positions on the Board that become
                         vacant at the conclusion of that annual general meeting,

                     (b) elect from among the registered producers, a Chair of the Board
                         for a one-year term,

                     (c) elect from among the members of the Board, a vice-chair of the
                         Board for a one-year term,

                     (d) receive, consider and discuss the annual reports of the Board
                         and the operations of the Board since the previous annual
                         general meeting,

                     (e) receive, consider and discuss the annual reports of any
                         committees appointed by the Board,


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ALTA. REG. 273/97                           MARKETING OF AGRICULTURAL PRODUCTS

                      (f) receive the auditor’s annual financial statement and report,

                     (g) appoint an auditor for the Board for the coming year, and

                     (h) discuss and formulate the policies to be adopted or continued by
                         the Board in carrying out its general duties under the Plan and
                         in carrying out the powers and duties vested in the Board.

                 (2) If the person elected as Chair is a member of the Board respecting a
                 district, that person ceases to be a member of the Board representing that
                 district and the registered producers must elect another person as a
                 member of the Board to represent that district.

Nominations      15(1) Only registered producers who are resident in the district may
                 nominate a person as a member of the Board representing that district.

                 (2) A person may be nominated for election to the Board to represent a
                 district only if that person is a registered producer and is a resident of the
                 district that the person is nominated to represent.

                 (3) A nomination may be made

                     (a) in writing, signed by at least 2 nominators, or

                     (b) from the floor at the meeting at which the election is to be held.

                 (4) A nomination in writing must be delivered to the returning officer
                 prior to the election date.

                 (5) A nomination is not valid unless

                     (a) in the case of a nomination in writing, it is accompanied by the
                         written consent of the nominee, or

                     (b) in the case of a nomination made orally, the nominee gives oral
                         or written consent to the nomination at the meeting at which the
                         election is to be held.

                 (6) Notwithstanding section 11, if insufficient nominations are made for
                 persons to represent a district, a person who is a registered producer and
                 resident of another district may be nominated to fill that position.

Secret ballot    16 The election of Board members must be by secret ballot.

Term of office   17(1) The term of office of members of the Board

                     (a) commences at the conclusion of the annual general meeting at
                         which the election is held to fill the office, and




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ALTA. REG. 273/97                          MARKETING OF AGRICULTURAL PRODUCTS

                     (b) except for the Chair, terminates on the conclusion of the annual
                         general meeting held in the 3rd year following the year in which
                         the term commenced.

                 (2) Subject to subsection (3), no person shall serve more than 2
                 consecutive 3-year terms as a member of the Board unless written
                 approval is obtained from Council.

                 (3) Subsection (2) does not apply to the Chair of the Board.

Loss of          18 A member of the Board who ceases to be a registered producer or
eligibility
                 ceases to reside in the district the member was elected to represent
                 automatically ceases to be a member.

Vacancy          19(1) If a member’s position on the Board, other than that of chair or
                 vice-chair, becomes vacant during the member’s term of office, the
                 Board may, with the approval of Council, appoint from among
                 individuals eligible to be elected to the vacant position an individual

                     (a) to fill the position for the unexpired portion of the term, or

                     (b) to act as a member until the date of the next annual general
                         meeting, at which time the position is to be filled by an election
                         held in accordance with this Regulation of a member to hold
                         office for the unexpired portion of the term.

                 (2) If a member’s position as chair of the Board becomes vacant during
                 the chair’s term of office, the vice-chair of the Board must assume the
                 position and the responsibilities of the chair for the unexpired portion of
                 the term.

                 (3) If a member’s position as vice-chair of the Board becomes vacant
                 during the vice-chair’s term of office, the Board must elect from among
                 its members a vice-chair to serve the unexpired portion of the term.

Eligibility to   20(1) An individual who
vote
                     (a) is a registered producer or a representative of a registered
                         producer,

                     (b) resides in Alberta, and

                     (c) is present at a meeting

                 is eligible to vote on any matter at that meeting and is eligible to vote in
                 the election of members of the Board.

                 (2) Notwithstanding subsection (1), if an individual is both

                     (a) a registered producer, and


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ALTA. REG. 273/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) appointed under section 22 as a representative of a producer that
                        is not an individual,

              that individual, during the time that the individual is a representative of
              a producer under section 22, shall not

                    (c) vote on any matter under this Plan,

                    (d) vote at an election under this Plan, or

                    (e) hold office under this Plan,

              in that individual’s own capacity as a producer and may only carry out
              those functions as the representative of the producer appointed under
              section 22.

              (3) An individual who is eligible to vote may appoint any person as a
              proxy to vote on the individual’s behalf.

              (4) An individual who is appointed as a proxy under subsection (3) must
              deposit with the returning office, before the vote is to be held, the
              document under which the proxy is appointed.

              (5) A person may not act as a proxy for more than one individual in
              respect of the same vote.

Voting        21(1) An individual who is eligible to vote may

                    (a) vote once on each matter, and

                    (b) in the case of an election of members of the Board, vote for any
                        number of candidates the individual chooses, not exceeding the
                        number of members to be elected to the Board,

              notwithstanding that the individual may manage or operate or own, lease
              or hold equity in 2 or more operations that are registered separately with
              the Board.

              (2) An individual shall not vote under the Plan unless

                    (a) the individual’s name appears on the current list of registered
                        producers, or

                    (b) the individual is a representative of a corporation, partnership
                        or other organization and complies with section 22(6) and (7).

Representa-   22(1) If a registered producer is not an individual and
tives
                    (a) makes representations on any matter pertaining to the Plan,

                    (b) attends meetings held under the Plan,


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ALTA. REG. 273/97                         MARKETING OF AGRICULTURAL PRODUCTS

                    (c) votes on any matter under the Plan,

                    (d) votes at an election under the Plan, or

                    (e) holds office under the Plan,

             it must do so in accordance with this section.

             (2) A registered producer that is not an individual must appoint an
             individual to be the representative of the registered producer.

             (3) A representative appointed by a registered producer under this
             section must

                    (a) represent the registered producer in any matter pertaining to the
                        Plan,

                    (b) attend meetings on behalf of the registered producer, and

                    (c) vote and hold office, as the case may be, on behalf of the
                        registered producer.

             (4) If a registered producer is

                    (a) a corporation, it must appoint an individual who is a director,
                        shareholder, member, officer or employee of the corporation as
                        its representative,

                    (b) a partnership, it must appoint an individual who is a partner or
                        employee of the partnership as its representative, or

                    (c) an organization other than a corporation or partnership, it must
                        appoint an individual who is a member, officer or employee of
                        the organization as its representative.

             (5) An appointment of a representative under this section must

                    (a) be in writing, and

                    (b) in the case where a vote is to be taken at a meeting, be filed with
                        the returning officer prior to the calling to order of the meeting
                        at which a vote is to take place.

             (6) A representative of a registered producer must not vote under this
             Plan unless the representative

                    (a) presents a document signed by a registered producer indicating
                        the representative as the person who may vote for the registered
                        producer, or

                    (b) makes a statutory declaration in writing stating that the
                        representative

                            (i) is a representative of the registered producer, and

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ALTA. REG. 273/97                         MARKETING OF AGRICULTURAL PRODUCTS

                            (ii) has not previously voted in the election or on the matter
                                 in respect of which the representative wishes to vote.

             (7) A statutory declaration made under subsection (6)(b) must be made
             in writing before the returning officer or the deputy returning officer
             prior to the vote being cast.

             (8) An individual may not be a representative under this section for
             more than one registered producer at any one time.

             (9) A representative shall not vote or hold office before the appointment
             is filed in accordance with subsection (5).

             (10) A representative of a registered producer who is eligible to vote
             may appoint any person as a proxy to vote on the representative’s behalf.

             (11) A person who is appointed as a proxy under subsection (10) must
             deposit with the returning officer, before the vote is to be held, the
             document under which the proxy is appointed.

             (12) A person may not act as a proxy for more than one representative
             of a registered producer in respect of the same vote.

Returning    23(1) The Board must appoint a returning officer for the purposes of
officer      any election or vote taken under the Plan.

             (2) The returning officer may appoint individuals as deputy returning
             officers to assist in the conduct of elections and votes under the Plan.

             (3) The returning officer must

                    (a) compile and maintain a voters list of registered producers who
                        are entitled to vote under the Plan,

                    (b) ensure that an individual does not cast a vote under the Plan
                        unless

                            (i) the name of that individual appears on the voters list, or

                            (ii) that individual has made a statutory declaration under
                                 section 22(6)(b),

                      and

                    (c) permit scrutiny by a scrutineer of the actions of the returning
                        officer and the deputy returning officers respecting the conduct
                        of a vote taken under the Plan.




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ALTA. REG. 273/97                              MARKETING OF AGRICULTURAL PRODUCTS

Election           24 Unless otherwise directed by the Council, no person shall destroy
records            any record or ballot in respect of any vote held pursuant to the Plan until
                   at least 30 days after the day on which the voting was conducted.

Quorum             25(1) The quorum required

                       (a) to conduct business at an annual general meeting or special
                           meeting, or

                       (b) to elect members of the Board at an annual general meeting or
                           at a special meeting held under section 27(6)(a)

                   is 20% of the registered producers eligible to attend the meeting.

                   (2) The quorum required for meetings of the Board is a majority of the
                   members then sitting on the Board.

Result of          26(1) If an election is held under the Plan and there is in attendance at
invalid election
                   the meeting at which the election is held an insufficient number of
                   individuals who are eligible to vote at the election,

                       (a) the election is void, and

                       (b) the position for which the election was held is vacant.

                   (2) Notwithstanding that a position is vacant under subsection (1), the
                   term of office of the position is deemed to have commenced as if an
                   individual had been elected to the position.

                   (3) Notwithstanding section 19, if a position is vacant under subsection
                   (1), the Council must fill the position by appointing, from individuals
                   eligible to be elected to that position, an individual to fill that position.

                   (4) An individual appointed under subsection (3) must serve the
                   unexpired portion of the term.

Controverted       27(1) If a registered producer
election
                       (a) questions

                                (i) the eligibility of a candidate,

                                (ii) the eligibility of a voter,

                              (iii) any matter relating to a ballot or the tabulation of
                                    ballots, or

                              (iv) any other irregularity with respect to the conduct of an
                                   election,

                          and

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ALTA. REG. 273/97                         MARKETING OF AGRICULTURAL PRODUCTS

                    (b) seeks to have the election declared invalid and the position
                        declared vacant,

             the registered producer must, not later than 30 days after the date of the
             election, apply in writing to the Council to have the election declared
             invalid and the position declared vacant.

             (2) If, within 30 days after the date of an election, the Council has not
             received an application under subsection (1), a person elected at that
             election is deemed to be duly elected.

             (3) The Council shall not consider an application under subsection (1)
             that has not been received by the Council within 30 days after the date
             of the election.

             (4) On receipt of an application under subsection (1), the Council must
             consider the matter and may

                    (a) declare the election to be proper and the position filled if, in the
                        opinion of the Council, there is no basis for the application,

                    (b) declare the election to be proper and the position filled,
                        notwithstanding that there is a basis for the application, if, in the
                        opinion of the Council,

                            (i) the basis for the application did not materially affect the
                                result of the election, and

                            (ii) the election was conducted substantially in accordance
                                 with this Regulation and the Act,

                       or

                    (c) declare the election to be void and the position vacant if, in the
                        opinion of the Council, there is a basis for the application and
                        the basis is sufficient to or did affect the result of the election.

             (5) Notwithstanding that an election is declared void and a position is
             declared vacant under subsection (4)(c), the term of office of the position
             declared vacant is deemed to have commenced on the date that the
             election which was declared void was held.

             (6) Notwithstanding section 19, if the Council declares an election to be
             void and the position vacant, it must

                    (a) order that, within the time set by the Council, a special meeting
                        be held and an election be conducted to fill the vacant position,
                        or

                    (b) appoint, from among individuals who are eligible to be elected
                        to the position, an individual to fill the vacant position.

             (7) A person elected or appointed under subsection (6) must hold office
             for the unexpired portion of the term.

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ALTA. REG. 273/97                        MARKETING OF AGRICULTURAL PRODUCTS


Indemnifica-   28(1) The Board may establish one or more funds under section 34 or
tion funds
               35 of the Act.

               (2) In accordance with section 50 of the Act, the Board, with respect to
               the production or marketing, or both, of the regulated product, is
               authorized to perform any function or duty and exercise any power
               imposed or conferred on the Board by or under the Agricultural Products
               Marketing Act (Canada) or the Farm Products Marketing Agencies Act
               (Canada), or both of them.

               (3) In order to finance the funds, the Board may raise amounts in
               accordance with sections 34 and 35 of the Act.

Transitional   29(1) In this section,

                    (a) “new Plan” means this Plan as continued by this Regulation;

                    (b) “previous Plan” means the Alberta Vegetable Growers’
                        Marketing Plan established under the Alberta Vegetable
                        Growers Marketing Plan Regulation (AR 95/93) as it read
                        immediately before the coming into force of this Regulation.

               (2) The persons who, immediately before the coming into force of this
               Regulation, were members of the Board under the previous Plan must,
               on the coming into force of the new Plan, continue as members of the
               Board under the new Plan until their term under the previous Plan
               expires and they are replaced by members of the new Board who are
               elected under the new Plan.

               (3) All assets, liabilities and obligations of the previous Board are
               assumed by the new Board.

               (4) Any obligation or liability that a person has

                    (a) under the previous Plan is an obligation or liability, as the case
                        may be, under the new Plan, or

                    (b) with or in respect of the previous Board is an obligation or
                        liability, as the case may be, with or in respect of the new
                        Board.

               (5) Any reference to the previous Board or the previous Plan in any
               document, agreement or regulation that is subsisting or in force
               immediately before the coming into force of the new Plan is deemed to
               be a reference to the new Board or the new Plan, as the case may be.

               (6) Any proceeding that has been commenced but not completed under
               the previous Plan or in respect of the previous Board may be continued
               and completed under the new Plan or in respect of the new Board.




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                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998



                (7) Any matters or business of the previous Board that was in progress
                at the time of the coming into force of the new Plan may be continued by
                the new Board.

Repeal          30 The Alberta Vegetable Growers Marketing Plan Regulation (AR
                95/93) is repealed.

Expiry          31 For the purpose of ensuring that this Regulation is reviewed for
                ongoing relevancy and necessity, with the option that it may be repassed
                in its present or an amended form following a review, this Regulation
                expires on December 31, 2002.

Coming into     32 This Regulation comes into force on December 31, 1997.
force



                             Alberta Regulation 274/97

                     Marketing of Agricultural Products Act

              POTATO GROWERS OF ALBERTA PLAN REGULATION

                                                              Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 637/97) pursuant to sections 23 and
54.1 of the Marketing of Agricultural Products Act.

                                          Table of Contents

                Definitions                                                           1
                Designation of agricultural product                                   2

                                               Part 1
                                      General Operation of Plan

                                              Division 1
                                                Plan
                Plan continued                                                        3
                Termination of Plan                                                   4
                Application of Plan                                                   5
                Purpose of Plan                                                       6
                Areas                                                                 7

                                              Division 2
                                    Operation of Plan by the Board

                Board continued                                                       8
                Functions of the Board                                                9
                Regulations to operate Plan                                          10
                Financing of Plan                                                    11
                Remuneration                                                         12
                Auditor                                                              13
                Indemnification fund                                                 14

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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS

              Honorary memberships                                                15

                                               Part 2
                                         Governance of Plan

                                              Division 1
                                                Board

              Members of the Board                                                16
              Chairperson                                                         17
              Board meetings                                                      18
              Quorum re meeting of members                                        19
              Term of office                                                      20
              Removal from office                                                 21

                                            Division 2
                                   General Meetings of Producers

              Annual meetings                                                     22
              Special meetings                                                    23
              Area meetings                                                       24
              Notification of meetings                                            25
              Quorum                                                              26

                                               Division 3
                                   Eligibility, Voting and Elections

              Producers who are individuals                                       27
              Producers that are not individuals                                  28
              Eligibility to vote                                                 29
              Election of area members                                            30
              Election of non-area members                                        31
              Election results                                                    32
              Returning officer                                                   33
              Result of invalid election                                          34
              Controverted election                                               35

                                               Part 3
                             Transitional Provision, Review and Repeal

              Transitional                                                        36
              Review                                                              37
              Repeal                                                              38



Definitions   1 In this Regulation,

                    (a) “Act” means the Marketing of Agricultural Products Act;

                    (b) “area” means an area referred to in section 7;

                    (c) “Board” means the Potato Growers of Alberta;


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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (d) “Canada Act” means

                           (i) the Farm Products Agencies Act (Canada);

                           (ii) the Agricultural Products Marketing Act (Canada);

                          (iii) the Advance Payments for Crops Act (Canada);

                    (e) “Council” means the Alberta Agricultural Products Marketing
                        Council;

                    (f) “dealer” means any person engaged in the business of
                        marketing potatoes that are purchased or received from a
                        licensed producer and includes a packer;

                    (g) “licensed producer” means a producer who

                           (i) holds a producer’s licence, and

                           (ii) grows potatoes on one or more parcels of land that in the
                                aggregate exceed 5 acres;

                    (h) “marketing”

                           (i) means buying, owning, selling, offering for sale, storing,
                               grading, assembling, packing, transporting, advertising
                               or financing, and

                           (ii) includes any other function or activity designated as
                                marketing by the Lieutenant Governor in Council;

                    (i) “packer” means a person who is in the business of buying
                        potatoes from producers for the purpose of resale to wholesalers
                        or retailers;

                    (j) “person” means a person as defined in the Interpretation Act
                        and includes

                           (i) a partnership as defined in the Partnership Act;

                           (ii) an unincorporated organization that is not a partnership
                                referred to in subclause (i);

                          (iii) any group of individuals who are carrying on an activity
                                for a common purpose and are neither a partnership
                                referred to in subclause (i) nor an unincorporated
                                organization referred to in subclause (ii);

                    (k) “Plan” means the Plan referred to in section 3;

                    (l) “potatoes” mean a vegetable of the species Tuberosum that is
                        grown in Alberta;

                (m) “processing”

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ALTA. REG. 274/97                          MARKETING OF AGRICULTURAL PRODUCTS

                             (i) means changing the nature or form of potatoes from
                                 their raw or natural state, and

                            (ii) includes any function or activity designated as
                                 processing by the Lieutenant Governor in Council;

                     (n) “processor” means a person engaged in the business of
                         processing potatoes;

                     (o) “producer” means a person who grows potatoes;

                     (p) “regulated product” means potatoes;

                     (q) “representative” means an individual appointed as a
                         representative under section 28;

                     (r) “voters list” means a list of individuals entitled to vote in an
                         election provided for in this Plan.

Designation of   2 Potatoes are designated as an agricultural product for the purposes of
agricultural     the Act.
product


                                                 PART 1

                                 GENERAL OPERATION OF PLAN

                                             Division 1
                                                Plan
Plan continued   3 The Alberta Potato Marketing Plan, established under Alberta
                 Regulation 208/88, is hereby amended and continued under this
                 Regulation with the name “Potato Growers of Alberta Plan”.

Termination of   4 This Plan does not terminate at the conclusion of a specific period of
Plan
                 time and shall remain in force unless otherwise terminated pursuant to
                 the Act.

Application of   5(1) This Plan applies
Plan
                     (a) to all of Alberta;

                     (b) to all persons who produce or market or produce and market
                         potatoes;

                     (c) for the purposes of section 10(1)(b), (c), (d), (e), (g) and (2), to
                         processors and dealers.

                 (2) Notwithstanding subsection (1), the Plan does not apply to a person
                 who grows potatoes on one or more parcels of land that do not in the
                 aggregate exceed 5 acres.


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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS


Purpose of   6 The purposes of this Plan are
Plan
                    (a) to provide for the initiation, support and conduct of programs
                        for stimulating, increasing and improving the economic well-
                        being of the potato industry in Alberta;

                    (b) to establish and maintain a minimum price for potatoes;

                    (c) to provide for the initiation, support or conduct of studies and
                        research in connection with

                            (i) the production of potatoes,

                           (ii) the processing and marketing of potatoes,

                          (iii) the industrial use of potatoes and by-products of
                                potatoes, and

                          (iv) consumer needs and demands with respect to potatoes;

                    (d) to provide assistance in the education of producers in respect of
                        the proper and profitable methods of production, marketing and
                        processing of potatoes;

                    (e) to provide for the initiation, support and conduct of promotional
                        activities in respect of the production, marketing and processing
                        of potatoes;

                    (f) to work with any organization that has similar objectives to
                        those of the Board;

                    (g) to develop industry alliances with other marketing boards and
                        commissions, grower associations and co-operatives and other
                        persons to increase producer participation in the industry;

                    (h) to provide market information to producers, to encourage the
                        exchange of information among producers and to encourage
                        communication among producers;

                    (i) to encourage fair and ethical practices among producers;

                    (j) to co-operate with the Government of Canada and the
                        Government of Alberta in respect of the production, marketing
                        and processing of potatoes.

Areas        7 For the purposes of this Plan, Alberta is divided into 2 areas as
             follows:

                    (a) Alberta North consisting of all of that area of Alberta that is
                        north of the 7th base line;




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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) Alberta South consisting of all of that area of Alberta that is
                        south of the 7th base line.


                                           Division 2
                                 Operation of Plan by the Board
Board          8 The board known as the “Potato Growers of Alberta” is hereby
continued
               continued.

Functions of   9 The Board
the Board
                    (a) is responsible for the operation, regulation, supervision and
                        enforcement of this Plan;

                    (b) shall

                            (i) open one or more accounts in a bank, trust company,
                                treasury branch, credit union or other secured
                                depository, and

                           (ii) designate those officers, employees and other persons as
                                are necessary to sign cheques and transact the Board’s
                                business with its bank, trust company, treasury branch,
                                credit union or other secured depository;

                    (c) shall cause books and records, including financial records, to be
                        maintained,

                            (i) from time to time as may be required under the Act, the
                                regulations or by order of the Council, or

                           (ii) as may be determined by the Board;

                    (d) shall open its books and records for inspection at all reasonable
                        times at the office of the Board on the written request of any
                        licensed producer or any member of the Council;

                    (e) shall maintain an office, the location of which shall at all times
                        be made known to the Council and each licensed producer,
                        dealer and processor;

                    (f) may

                            (i) enter into an operating line of credit or other loan
                                agreement with its bank, trust company, treasury branch,
                                credit union or other lending institution, and

                           (ii) designate those officers, employees and other persons as
                                are necessary to transact the Board’s business;

                    (g) may appoint officers, employees and agents, prescribe their
                        duties and fix their remuneration;

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ALTA. REG. 274/97                         MARKETING OF AGRICULTURAL PRODUCTS

                     (h) may, subject to the Act, the regulations and any orders of the
                         Council, issue general orders governing the Board’s internal
                         operation as it may from time to time determine;

                     (i) may become a member of any organization that promotes the
                         interests of producers;

                     (j) may contribute funds to any organization that promotes the
                         interests of producers;

                     (k) may, in accordance with section 50 of the Act, with respect to
                         the production or marketing, or both, of potatoes, be authorized
                         to perform any function or duty and exercise any power
                         imposed or conferred on the Board by or under any Canada Act.

Regulations to   10(1) For the purposes of enabling the Board to operate this Plan, the
operate Plan     Board may be empowered by the Council, pursuant to section 26 of the
                 Act, to make regulations

                     (a) requiring producers engaged in the production or marketing, or
                         both, of a regulated product to register their names and
                         addresses with the Board;

                     (b) requiring any person who produces, markets or processes a
                         regulated product to furnish to the Board any information or
                         record relating to the production, marketing or processing of the
                         regulated product that the Board considers necessary;

                     (c) requiring persons to be licensed under this Plan before they
                         become engaged in the production, marketing and processing,
                         or any one or more of those functions, of a regulated product;

                     (d) prohibiting persons from engaging in the production, marketing
                         or processing, as the case may be, of a regulated product except
                         under the authority of a licence issued under this Plan;

                     (e) governing the issuance, suspension or cancellation of a licence
                         issued under this Plan;

                     (f) providing for

                             (i) the assessment, charging and collection of service
                                 charges and licence fees, as the case may be, from
                                 producers from time to time for the purposes of this
                                 Plan, and

                            (ii) the taking of legal action to enforce payment of the
                                 service charges and licence fees, as the case may be;

                     (g) requiring any person who receives a regulated product from a
                         producer




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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS

                            (i) to deduct from the money payable to the producer any
                                service charges, licence fees or levies, as the case may
                                be, payable by the producer to the Board, and

                           (ii) to forward the amount deducted to the Board;

                    (h) providing for the use of any class of service charges, licence
                        fees, levies or other money payable to or received by the Board
                        for the purpose of paying its expenses and administering this
                        Plan and the regulations made by the Board;

                    (i) providing for the payment to a Canada Board of money that is
                        payable under a Canada Act.

               (2) For the purposes of enabling the Board to operate this Plan, the
               Board may be empowered by the Council, pursuant to section 27 of the
               Act, to make regulations

                    (a) requiring any person who provides an agricultural product
                        under this Plan to furnish to the Board any information
                        requested by the Board;

                    (b) determining from time to time the minimum price or prices that
                        shall be paid to producers for the regulated product or any class,
                        variety, grade, size or kind of the regulated product and
                        determining different prices for different parts of Alberta;

                    (c) requiring that the money payable or owing to a producer for the
                        regulated product be paid to or through the Board;

                    (d) providing for the payment to a producer of the money payable
                        or owing for the regulated product, less any service charges and
                        levies owing to the Board by the producer, and fixing the time
                        or times at which or within which the payments shall be made;

                    (e) providing for the collection from any person by legal action of
                        money owing to a producer for the regulated product.

               (3) Pursuant to section 28 of the Act the power to make regulations
               referred to in subsection (1)(g) and (h) and (2)(d) is to be restricted by
               the Council so that the Board will not be authorized to make regulations
               in respect of levies.

Financing of   11 In accordance with the regulations, this Plan shall be financed
Plan
                    (a) by the charging and collection of service charges and licence
                        fees from producers and licence fees from dealers and
                        processors, and

                    (b) by any other money payable to or received or accrued by the
                        Board.




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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS

Remuneration   12 The members of the Board shall receive remuneration and expenses
               as the Board considers proper.

Auditor        13 The auditor for the Board shall be appointed at each annual meeting.

Indemnifica-   14 The Board shall not establish and operate a fund under section 34 or
tion fund
               35 of the Act.

Honorary       15 The Board may establish non-voting associate, patron, industry,
memberships
               affiliate or honorary memberships under this Plan to provide interested
               individuals or organizations the opportunity to contribute to the activities
               and goals of the Board.


                                                PART 2

                                     GOVERNANCE OF PLAN

                                              Division 1
                                                Board
Members of     16 The Board shall consist of 7 members as follows:
the Board
                    (a) 4 members,

                           (i) 2 of whom shall be elected from Alberta North, and

                           (ii) 2 of whom shall be elected from Alberta South;

                    (b) 3 members who shall be elected at large.

Chairperson    17(1) The members of the Board shall, at their first meeting following
               the election of members to the Board, elect from the members of the
               Board

                    (a) a chairperson of the Board, and

                    (b) a vice-chairperson of the Board.

               (2) Where the chairperson’s position becomes vacant, the vice-
               chairperson shall assume the position of chairperson and the Board shall
               elect from the members of the Board one member to serve as vice-
               chairperson.

               (3) During their term of office, the chairperson and vice-chairperson
               serve at the pleasure of the members of the Board.




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ALTA. REG. 274/97                          MARKETING OF AGRICULTURAL PRODUCTS

Board            18 The Board may, at the call of the chairperson or of not less than 3
meetings         members, conduct Board meetings.

Quorum re        19 The quorum necessary for the conduct of business at a meeting of
meeting of       the members of the Board is a majority of the Board members then
members
                 holding office.

Term of office   20(1) Each member of the Board shall be elected for a term of 3 years.

                 (2) The term of office of a member,

                     (a) if elected at the annual meeting, commences on the conclusion
                         of the annual meeting at which the member was elected, or

                     (b) if elected at an area meeting commences on the conclusion of
                         the next following annual meeting

                 and expires on the conclusion of the annual meeting that takes place in
                 the year that member’s term of office is to expire.

                 (3) A person shall not serve as a member of the Board for more than 6
                 consecutive years.

                 (4) Notwithstanding subsection (3), if a person has served as a member
                 of the Board for 6 consecutive years, that person is once again eligible
                 to serve as a member of the Board once 3 years have expired from the
                 conclusion of that person’s last term of office.

Removal from     21(1) Where a member of the Board ceases to be a licensed producer or
office
                 a representative of a licensed producer during that person’s term of
                 office, that person, unless that person sooner resigns as a member, ceases
                 to be a member from the day the producer ceases to be a licensed
                 producer.

                 (2) Where a member of the Board is absent from 3 consecutive meetings
                 of the Board, without providing reasons that the Board considers
                 satisfactory, that person’s position on the Board as a member is deemed
                 to be vacant at the conclusion of the 3rd consecutive meeting from which
                 that person is absent.

                 (3) Where a vacancy occurs on the Board under this section, the Board
                 may appoint, with the approval of the Council, a licensed producer or a
                 representative of a licensed producer to fill the position from among the
                 persons who are eligible to be elected to that position.

                 (4) A person appointed under subsection (3) shall serve that portion of
                 the term that runs to the next annual meeting following the person’s
                 appointment, at which time

                     (a) the person ceases to hold office, and


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ALTA. REG. 274/97                          MARKETING OF AGRICULTURAL PRODUCTS

                      (b) an election shall be held to fill the office for the unexpired
                          portion, if any, of the term of the vacant position.


                                            Division 2
                                   General Meetings of Producers
Annual            22 Annual meetings of the licensed producers shall be held
meetings
                      (a) once in each year, and

                      (b) within 15 months following the date of the commencement of
                          the last annual meeting.

Special           23(1) Special meetings of the licensed producers
meetings
                      (a) may be called by the Council,

                      (b) may be called by the Board, and

                      (c) shall be called by the Board on the written request of not less
                          than 10% of the licensed producers.

Area meetings     24(1) The Board shall organize and finance 2 area meetings within a
                  reasonable period of time prior to the annual meeting of licensed
                  producers.

                  (2) The purpose of an area meeting, when required, is to elect a member
                  of the Board to represent the area.

Notification of   25(1) The Board shall set the time, place and date of any annual
meetings
                  meeting, special meeting and area meeting.

                  (2) The Board shall send to all licensed producers entitled to vote
                  written notice, not less than 15 days prior to the day on which the
                  meeting referred to in subsection (1) is to take place, setting out the
                  following:

                      (a) the time, place and date and purpose of the meeting;

                      (b) if special or extraordinary business is to be transacted at the
                          meeting, the nature of the business;

                      (c) if the meeting is an area meeting, the names of the persons
                          nominated up to the date of the notice who have been
                          nominated to stand for election as members of the Board to
                          represent the area;

                      (d) if the meeting is an annual meeting, a ballot containing the
                          names of the persons nominated at each area meeting who have


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ALTA. REG. 274/97                           MARKETING OF AGRICULTURAL PRODUCTS

                          been nominated to stand for election as members at large of the
                          Board.

                  (3) Any notice under subsection (2) may be conveyed to the licensed
                  producer

                      (a) by ordinary mail sent to the licensed producer’s last address
                          shown on the records of the Board, or

                      (b) by facsimile, e-mail or other electronic means sent to the
                          licensed producer’s last electronic address shown on the records
                          of the Board.

Quorum            26 The quorum necessary under the Plan,

                      (a) in the case of an area meeting, is 10% of the licensed producers
                          who reside within the area;

                      (b) in the case of an annual meeting or special meeting, is 10% of
                          the licensed producers.


                                                 Division 3
                                    Eligibility, Voting and Elections
Producers who     27(1) A licensed producer who is an individual may, subject to this
are individuals   Plan,

                      (a) make representations on any matter pertaining to this Plan,

                      (b) attend meetings held under this Plan,

                      (c) vote on any matter under this Plan,

                      (d) vote at an election under this Plan, and

                      (e) hold office under this Plan.

                  (2) Subject to subsections (3), (4) and (5), an individual who is a
                  producer shall not cast a vote under this Plan unless that person’s name
                  appears on the current list of licensed producers.

                  (3) If an individual is not on the list of licensed producers, that
                  individual shall not cast a vote in an election unless the individual

                      (a) has signed a declaration stating that the individual

                               (i) is or qualifies as a licensed producer under this Plan, and

                               (ii) resides within the area for which the election is to be
                                    held,

                         and

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ALTA. REG. 274/97                          MARKETING OF AGRICULTURAL PRODUCTS

                     (b) files the declaration signed under clause (a) with the returning
                         officer or deputy returning officer at the meeting at which the
                         election is to be held but prior to the casting of the ballots.

                 (4) An individual who is eligible to vote may appoint any person as a
                 proxy to vote on the individual’s behalf if the individual appointing the
                 proxy deposits with the returning officer at least 2 days before the day on
                 which the vote is to be held the document under which the proxy is
                 appointed.

                 (5) A person may not act as a proxy for more than one individual in
                 respect of the same vote.

Producers that   28(1) This section only applies in respect of a producer that is not an
are not          individual.
individuals

                 (2) If a licensed producer is not an individual and

                     (a) makes representations on any matter pertaining to this Plan,

                     (b) attends meetings held under this Plan,

                     (c) votes on any matter under this Plan,

                     (d) votes at an election under this Plan, or

                     (e) holds office under this Plan,

                 that licensed producer shall do so in accordance with this section.

                 (3) A licensed producer to which this section applies shall appoint an
                 individual to be the representative of the licensed producer.

                 (4) A representative appointed by a licensed producer under this section
                 shall

                     (a) represent that licensed producer in any matter pertaining to this
                         Plan,

                     (b) attend meetings on behalf of the licensed producer, and

                     (c) vote and hold office, as the case may be, on behalf of the
                         licensed producer.

                 (5) If a licensed producer is

                     (a) a corporation, it shall appoint an individual who is a director,
                         shareholder, member, officer or employee of the corporation as
                         its representative,

                     (b) a partnership, it shall appoint an individual who is a partner or
                         employee of the partnership as its representative, or



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ALTA. REG. 274/97                          MARKETING OF AGRICULTURAL PRODUCTS

                     (c) an organization, other than a corporation or a partnership, it
                         shall appoint an individual who is a member, officer or
                         employee of the organization as its representative.

                 (6) An appointment of a representative under this section shall be

                     (a) in writing, and

                     (b) in the case where a vote is to be taken at a meeting, filed with
                         the returning officer prior to the calling to order of the meeting
                         at which a vote is to take place.

                 (7) A representative of a licensed producer shall not cast a vote under
                 this Plan unless the individual who is the representative

                     (a) presents a document signed by the licensed producer indicating
                         the name of the person who may vote for the licensed producer,
                         or

                     (b) makes a statutory declaration stating that the individual

                             (i) is a representative of the licensed producer, and

                             (ii) has not previously voted in the election or on the matter
                                  in respect of which the individual wishes to cast a vote.

                 (8) A statutory declaration made under subsection (7)(b) shall be made
                 in writing before the returning officer prior to the votes’ being cast.

                 (9) An individual cannot be a representative under this section for more
                 than one licensed producer.

                 (10) A representative shall not vote or hold office before that person’s
                 appointment is filed in accordance with subsection (6).

                 (11) A representative of a licensed producer who is eligible to vote may
                 appoint any person as a proxy to vote on the representative’s behalf if the
                 representative appointing the proxy deposits with the returning officer
                 at least 2 days before the day on which the vote is to be held the
                 document under which the proxy is appointed.

                 (12) A person may not act as a proxy for more than one representative
                 in respect of the same vote.

Eligibility to   29(1) A person is eligible to vote
vote
                     (a) on any question put to a vote at an annual meeting or special
                         meeting, or

                     (b) in an election for a member,

                 if the person



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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (c) is a licensed producer or a representative of a licensed producer,
                        or

                    (d) is a person appointed by a licensed producer or a representative
                        of a licensed producer as a proxy in accordance with section
                        27(4) or 28(11)

               and is present at the annual meeting or special meeting of the licensed
               producers.

               (2) If a person who is appointed as a proxy is also a licensed producer
               or a representative of a licensed producer, that person shall be entitled to
               vote in that person’s own right as a licensed producer or as a
               representative of a licensed producer and on behalf of the individual who
               appointed that person as a proxy.

               (3) A person who is eligible to vote or who holds a proxy pursuant to
               section 27(4) or 28(11) may

                    (a) vote once on each matter, and

                    (b) in the case of an election of members of the Board, vote for any
                        number of candidates the person chooses, not exceeding the
                        number of members to be elected to the Board,

               notwithstanding that the person may manage, operate, own, lease or hold
               equity in one or more operations that are licensed separately with the
               Board.

               (4) Notwithstanding subsection (1), a person who is eligible to vote in
               an election for a member at large may do so without being in attendance
               at the annual meeting or special meeting at which the election is to be
               held if that person completes the ballot and forwards that completed
               ballot by mail or by electronic means to the Board’s office.

               (5) The returning officer shall consider a ballot forwarded to the Board’s
               office under subsection (4) to be cast in the election if the ballot is
               received in the Board’s office at least 3 days before the annual meeting
               or special meeting at which the election is to be conducted.

Election of    30(1) Subject to this Plan, the licensed producers who reside within an
area members
               area shall elect the members to represent the area.

               (2) Nominations for candidates to represent an area shall be made to the
               returning officer pursuant to subsection (3), prior to or during the area
               meeting.

               (3) A nomination for a candidate to represent an area as a member shall

                    (a) be in writing or on a form that is provided by or is satisfactory
                        to the Board,




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ALTA. REG. 274/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) name a licensed producer or a representative of a licensed
                        producer from the area in respect of which the nomination is
                        being made,

                    (c) only be made by a licensed producer who resides within the
                        area in respect of which the nomination is being made, and

                    (d) be accompanied by or have endorsed on the written nomination
                        the consent of the person being nominated.

              (4) One of the current members of the Board representing that area shall
              be the chairperson of the area meeting unless that member is a candidate
              for election as a member of the Board representing the area, in which
              case a chairperson shall be elected from among those licensed producers
              present at the meeting who are not candidates in that election.

              (5) The chairperson of the area meeting

                    (a) shall vote only in the case of a tie, and

                    (b) shall forward the results of the election held at the area meeting
                        to the Board within 5 days from the day that the area meeting
                        was held, together with a signed statement affirming that the
                        requirements of this section have been met.

              (6) The election for a member to represent an area

                    (a) shall be held at the area meeting;

                    (b) may, notwithstanding clause (a), be held at the annual meeting
                        if

                            (i) no nominations were received prior to or during the area
                                meeting, or

                           (ii) the Council has determined pursuant to section 35 that
                                an area election is invalid;

                    (c) shall be by persons who reside in the area in respect of which
                        the vote is being held;

                    (d) shall be conducted by means of a secret ballot.

Election of   31(1) Three members of the Board shall be elected by means of a secret
non-area      ballot as members at large
members

                    (a) one of whom shall be elected at each annual meeting, and

                    (b) for whom nominations shall be received by the Board from the
                        floor of each area meeting in accordance with subsection (3).

              (2) On the conclusion of the last of the area meetings to be held prior to
              the annual meeting, the Board shall

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ALTA. REG. 274/97                            MARKETING OF AGRICULTURAL PRODUCTS

                       (a) prepare a ballot containing the names of the persons nominated
                           at the area meetings who have been nominated to stand for
                           election as members at large, and

                       (b) send a ballot to each of the licensed producers in the same
                           manner as a notice may be sent to a licensed producer under
                           section 25(3).

                   (3) Any person may be nominated for election as a member at large of
                   the Board at an area meeting if

                       (a) that person is a licensed producer or a representative of a
                           licensed producer, and

                       (b) that person has consented to being nominated.

Election results   32 In the case of an election held under sections 30 and 31

                       (a) the candidate receiving the largest number of votes in the
                           election is the person who is elected to the position for which
                           the election is held, but

                       (b) if only one person is nominated for the position that is to be
                           filled, that person is deemed to have been elected to the
                           position.

Returning          33(1) The Board shall appoint a returning officer for the purpose of and
officer            in connection with any election or vote taken under this Plan.

                   (2) The returning officer shall

                       (a) compile and maintain a voters list of persons who are entitled to
                           vote under this Plan;

                       (b) ensure that each person who votes in an election is on the voters
                           list, has signed a declaration pursuant to section 27 or 28 or has
                           been appointed as a proxy pursuant to section 27(4) or 28(11);

                       (c) permit scrutiny by a scrutineer of all the actions of the returning
                           officer in respect of the conduct of an election held under this
                           Plan.

                   (3) Unless otherwise directed by the Council, no person shall destroy
                   any records or ballots in respect of a vote or election held under this Plan
                   until 90 days have elapsed from the day on which the vote was taken.

Result of          34(1) If an election is held under this Plan and there is in attendance at
invalid election
                   the meeting at which the election is held an insufficient number of
                   persons who are eligible to vote at the election,

                       (a) the election is void, and

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ALTA. REG. 274/97                          MARKETING OF AGRICULTURAL PRODUCTS

                    (b) the position for which the election was held is vacant.

               (2) Notwithstanding that a position is vacant under subsection (1), the
               term of office of the position is deemed to have commenced as if a
               person had been elected to the position.

               (3) If a position is vacant under subsection (1), the Council shall fill the
               position by appointing, from persons eligible to be elected to that
               position, a person to fill that position.

               (4) A person appointed under subsection (3) shall serve that portion of
               the term that runs to the next annual meeting following the person’s
               appointment, at which time

                    (a) the person ceases to hold office, and

                    (b) an election shall be held to fill the office for the unexpired
                        portion, if any, of the term of the vacant position.

Controverted   35(1) If a licensed producer
election
                    (a) questions

                            (i) the eligibility of a candidate,

                            (ii) the eligibility of a voter,

                          (iii) any matter relating to a ballot or the tabulation of
                                ballots, or

                          (iv) any irregularity with respect to the conduct of an
                               election,

                      and

                    (b) seeks to have the election declared invalid and the position
                        declared vacant,

               that person must, not later than 30 days after the day on which the
               election was held, apply in writing to the Council to have the election
               declared invalid and the position declared vacant.

               (2) If, within the 30-day period referred to in subsection (1), the Council
               has not received an application under subsection (1), a person elected at
               that election is deemed to be duly elected.

               (3) On receipt of an application under subsection (1), the Council shall
               consider the matter and may

                    (a) declare the election to be proper and the position filled if, in the
                        opinion of the Council, there is no basis for the application,




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ALTA. REG. 274/97                         MARKETING OF AGRICULTURAL PRODUCTS

                    (b) declare the election to be proper and the position filled,
                        notwithstanding that there is a basis for the application if, in the
                        opinion of the Council,

                            (i) the basis for application did not materially affect the
                                result of the election, and

                            (ii) the election was conducted substantially in accordance
                                 with this Plan and the Act,

                       or

                    (c) declare the election to be void and the position vacant if, in the
                        opinion of the Council, there is a basis for the application and
                        the basis is sufficient to, or did, affect the result of the election.

             (4) Notwithstanding that an election is declared void and a position is
             declared vacant under subsection (3)(c), the term of office of the position
             declared vacant is nevertheless deemed to have commenced on the day
             that the term of office would have commenced if the election had not
             been voided.

             (5) If the Council declares an election to be void and the position vacant,
             the Council may

                    (a) order that, within the time that the Council considers proper, a
                        special meeting be held and an election be conducted to fill the
                        vacant position, or

                    (b) appoint, from among the persons who are eligible to be elected
                        to the position, a person to fill the vacant position.

             (6) A person elected under subsection (5)(a) shall hold office for the
             unexpired portion of the term.

             (7) A person appointed under subsection (5)(b) shall serve that portion
             of the term that runs to the next annual meeting following that person’s
             appointment, at which time

                    (a) that person ceases to hold office, and

                    (b) an election shall be held to fill the unexpired portion, if any, of
                        the term.




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ALTA. REG. 275/97                         MARKETING OF AGRICULTURAL PRODUCTS

                                                PART 3

                    TRANSITIONAL PROVISION, REVIEW AND REPEAL
Transitional   36(1) In this section,

                    (a) “new Plan” means the Plan as continued by this Regulation;

                    (b) “previous Plan” means the Alberta Potato Marketing Plan under
                        the Potato Marketing Plan Regulation (AR 208/88) as it read
                        immediately before the coming into force of this Regulation.

               (2) The persons who, immediately before the coming into force of this
               Regulation, were members of the Board under the previous Plan shall,
               on the coming into force of the new Plan, continue as members of the
               Board under the new Plan until members of the Board are elected under
               the new Plan.

Review         37 In compliance with the ongoing regulatory review initiative, this
               Regulation must be reviewed on or before December 31, 2002.

Repeal         38 Alberta Regulation 208/88 is repealed.


                              ------------------------------

                            Alberta Regulation 275/97

                     Marketing of Agricultural Products Act

               SUGAR BEET MARKETING PLAN REGULATION

                                                                Filed: December 17, 1997

Made by the Lieutenant Governor in Council (O.C. 638/97) pursuant to sections 23 and
54.1 of the Marketing of Agricultural Products Act.

                                            Table of Contents

               Definitions                                                           1
               Designation of agricultural product                                   2

                                                 Part 1
                                        General Operation of Plan

                                               Division 1
                                                 Plan

               Plan continued                                                        3
               Termination of Plan                                                   4
               Application of Plan                                                   5
               Purpose and intent of Plan                                            6

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ALTA. REG. 275/97                    MARKETING OF AGRICULTURAL PRODUCTS



                                          Division 2
                              Administration of Plan by the Board

             Board continued                                         7
             Functions of Board                                      8
             Regulations to operate Plan                             9
             Auditor                                                10
             Financing of Plan                                      11
             Indemnification funds                                  12
             Authority from Governor in Council                     13

                                            Part 2
                                      Governance of Plan

                                          Division 1
                                            Board

             Composition of Board                                   14
             Chair, etc.                                            15
             Removal of chair or vice-chair                         16
             Meetings of the Board                                  17
             Quorum                                                 18
             Term of office                                         19
             Vacancy                                                20

                                          Division 2
                                            Areas

             Areas                                                  21
             Executive committee                                    22
             By-laws                                                23
             Quorum                                                 24
             Delegates for an area                                  25

                                          Division 3
                                       General Meetings

             Area general meetings                                  26
             Notice re area general meeting                         27
             Quorum re area general meeting                         28
             Board general meetings                                 29
             Notice re Board general meeting                        30
             Quorum re Board general meeting                        31
             Business re Board annual general meeting               32

                                           Division 4
                               Eligibility, Voting and Elections

             Producers who are individuals                          33
             Producers that are not individuals                     34
             One vote only                                          35
             Eligibility re members of the Board                    36
             Eligibility re area representative                     37

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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

              Limits on eligibility                                                   38
              Voting                                                                  39
              Returning officer                                                       40
              Void election                                                           41
              Invalid election                                                        42
              Decision of Council                                                     43

                                               Part 3
                             Transitional Provision, Review and Repeal

              Transitional                                                            44
              Review                                                                  45
              Repeal                                                                  46

              Schedule

Definitions   1 In this Regulation,

                    (a) “Act” means the Marketing of Agricultural Products Act;

                    (b) “area” means an area referred to in section 21;

                    (c) “Board” means the Board continued under section 7;

                    (d) “Council” means the Alberta Agricultural Products Marketing
                        Council;

                    (e) “marketing” means

                           (i) buying, selling, offering for sale, storing, grading,
                               packing, transporting or advertising, and

                           (ii) includes any other function or activity designated as
                                marketing by the Lieutenant Governor in Council;

                    (f) “person” means a person as defined in the Interpretation Act
                        and includes

                           (i) a partnership as defined in the Partnership Act,

                           (ii) any unincorporated organization that is not a partnership
                                referred to in subclause (i), and

                          (iii) any group of individuals who are carrying on an activity
                                for a common purpose and are neither a partnership
                                referred to in subclause (i) nor an unincorporated
                                organization referred to in subclause (ii);

                    (g) “Plan” means the Sugar Beet Marketing Plan referred to in
                        section 3;

                    (h) “processing” means changing the nature or form of the
                        regulated product;

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ALTA. REG. 275/97                          MARKETING OF AGRICULTURAL PRODUCTS

                      (i) “processor” means a person who processes sugar beets;

                      (j) “producer” means a person who produces sugar beets;

                     (k) “registered producer” means a producer who is registered with
                         the Board and has been allotted a quota;

                      (l) “regulated product” means sugar beets produced in Alberta.

Designation of   2 Sugar beets are hereby designated as an agricultural product for the
agricultural     purposes of the Act.
product


                                                 PART 1

                                 GENERAL OPERATION OF PLAN

                                                Division 1
                                                   Plan
Plan continued   3 The Sugar Beet Marketing Plan referred to in Alberta Regulation
                 227/90 is hereby amended and continued with the name “Sugar Beet
                 Marketing Plan”.

Termination of   4 This Plan does not terminate at the conclusion of a specific period of
Plan             time and shall remain in force unless otherwise terminated pursuant to
                 the Act.

Application of   5 This Plan applies
Plan
                     (a) to all of Alberta;

                     (b) to all persons who produce the regulated product within the area
                         described in the Schedule;

                     (c) to all persons who market sugar beets through processors;

                     (d) for the purposes of section 9(1)(b), (c), (d), (e), (g) and (2)(e),
                         (f), (g), (h), (i), (l), (m) and (n), to processors.

Purpose and      6(1) The purpose and intent of this Plan is to provide for the effective
intent of Plan   control and regulation, in any and all respects, of the production and
                 marketing of sugar beets in Alberta, to the extent of the powers conferred
                 on the Board.

                 (2) Without limiting the generality of subsection (1), the purposes of this
                 Plan are




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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (a) to establish the negotiating agencies to adopt or settle matters
                        regarding prices and the terms, conditions and form of
                        agreements relating to the marketing of sugar beets;

                    (b) to establish a system of quotas for the production or marketing,
                        or both, of sugar beets;

                    (c) to provide for the licensing of

                            (i) processors, and

                           (ii) registered producers;

                    (d) to establish and maintain a system of marketing whereby sugar
                        beets are marketed through processors in accordance with this
                        Plan and the regulations made in respect of this Plan;

                    (e) to initiate and carry out projects or programs to commence,
                        stimulate, increase or improve the production or marketing, or
                        both, of sugar beets or any product resulting from the
                        processing of sugar beets;

                    (f) to support and co-operate with other organizations having
                        objectives similar to or compatible with the objectives of the
                        Board.


                                          Division 2
                              Administration of Plan by the Board
Board          7 The board known as the “Alberta Sugar Beet Growers’ Marketing
continued      Board” is hereby continued with the name “Alberta Sugar Beet
               Growers”.

Functions of   8 The Board
Board
                    (a) is, subject to the Act, responsible for the operation, regulation,
                        supervision and enforcement of this Plan;

                    (b) without limiting the generality of clause (a),

                            (i) may appoint a General Manager and may prescribe the
                                duties and fix and provide for the remuneration of the
                                General Manager;

                           (ii) may allow the General Manager to retain other
                                employees or contractors, other than an auditor, and may
                                allow the General Manager to prescribe the duties and
                                remuneration payable to those employees and
                                contractors;




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ALTA. REG. 275/97                         MARKETING OF AGRICULTURAL PRODUCTS

                           (iii) shall open one or more deposit accounts with one or
                                 more financial institutions and may designate the
                                 officers and employees permitted to

                                (A) sign cheques and other negotiable instruments,

                                (B) transact the business of the Board with its financial
                                    institutions, and

                                (C) generally do all things incidental to or in connection
                                    with the transaction of the business of the Board
                                    with its financial institutions;

                           (iv) shall maintain or cause to be maintained accounting
                                books and records that from time to time may be
                                required under the Act or that may be required by the
                                Council;

                            (v) shall maintain an office in Alberta and notify each
                                registered producer, licensed processor and the Council
                                of the location of the office of the Board;

                           (vi) subject to the Act, may issue directions governing the
                                internal operations of the Board;

                          (vii) shall establish and implement policy for the operation of
                                the Board and the implementation and operation of this
                                Plan;

                          (viii) may become a member of or contribute funds to, or
                                 become a member of and contribute funds to,
                                 organizations having objectives similar to or compatible
                                 with the objectives of the Board.

Regulations to   9(1) For the purpose of enabling the Board to operate this Plan, the
operate Plan
                 Board may be empowered by the Council, pursuant to section 26 of the
                 Act, to make regulations

                     (a) requiring producers engaged in the production or marketing, or
                         both, of sugar beets to register their names and addresses with
                         the Board;

                     (b) requiring any person who produces, markets or processes sugar
                         beets to furnish to the Board any information or record relating
                         to the production, marketing or processing of sugar beets that
                         the Board considers necessary;

                     (c) requiring persons to be licensed under this Plan before they
                         become engaged in the production, marketing and processing,
                         or any one or more of those functions, of sugar beets;




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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (d) prohibiting persons from engaging in the production, marketing
                        or processing, as the case may be, of sugar beets except under
                        the authority of a licence issued under this Plan;

                    (e) governing the issuance, suspension or cancellation of a licence
                        issued under this Plan;

                    (f) providing for

                           (i) the assessment, charging and collection of service
                               charges and licence fees, as the case may be, from
                               producers from time to time for the purposes of this
                               Plan, and

                           (ii) the taking of legal action to enforce payment of the
                                service charges and licence fees, as the case may be;

                    (g) requiring any person who receives sugar beets from a producer

                           (i) to deduct from the money payable to the producer any
                               service charges, licence fees or levies, as the case may
                               be, payable by the producer to the Board, and

                           (ii) to forward the amount deducted to the Board;

                    (h) providing for the use of any class of service charges, levies or
                        other money payable to or received by the Board for the
                        purpose of paying its expenses and administering this Plan and
                        the regulations made by the Board;

                    (i) permitting the Board to exercise any one or more of the powers
                        that are vested in a co-operative association under the
                        Co-operative Associations Act.

             (2) For the purposes of enabling the Board to operate this Plan, the
             Board may be empowered by the Council, pursuant to section 27(1) of
             the Act, to make regulations

                    (a) requiring that the production or marketing, or both, of sugar
                        beets be conducted pursuant to a quota;

                    (b) governing

                           (i) the fixing and allotting of quotas,

                           (ii) the increase or reduction of quotas,

                          (iii) the cancelling of quotas, and

                          (iv) the refusal to fix and allot quotas,

                        to producers for the production or marketing, or both, of sugar
                        beets on any basis that the Board considers appropriate;



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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (c) governing the transferability or non-transferability of quotas
                        and prescribing the conditions and procedures applicable to the
                        transfer of quotas, if any, that the Board considers appropriate;

                    (d) establishing

                            (i) a formula for determining the amount of sugar beets
                                deemed to have been produced or marketed by a
                                producer, and

                           (ii) the period of time in respect of which the formula is to
                                be applied,

                        for the purposes of determining the amount of sugar beets
                        produced or marketed by a producer during a period of time;

                    (e) providing for

                            (i) the assessment, charging and collection of a levy from
                                any producer whose production or marketing, or both, of
                                sugar beets is in excess of the quota that has been fixed
                                and allotted to that producer, and

                           (ii) the taking of legal action to enforce payment of the levy;

                    (f) directing, controlling or prohibiting, as the case may be, the
                        production or marketing, or both, of sugar beets or any class,
                        variety, size, grade or kind of sugar beets in such manner as the
                        Board considers appropriate;

                    (g) regulating and controlling the production or marketing, or both,
                        of sugar beets, including the times and places at which sugar
                        beets may be produced or marketed;

                    (h) providing

                            (i) for the operation of one or more pools for the
                                distribution of all money payable to the producers from
                                the sale of sugar beets, and

                           (ii) for the deduction of reasonable and proper
                                disbursements and expenses with respect to the
                                operation of the pool;

                    (i) providing for the collection from any person by legal action of
                        money owing to a producer for sugar beets;

                    (j) prohibiting a person to whom a quota has not been fixed and
                        allotted for the production or marketing, or both, of sugar beets
                        from producing or marketing, as the case may be, any sugar
                        beets;

                    (k) prohibiting a producer to whom a quota has been fixed and
                        allotted for the production or marketing, or both, of sugar beets

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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

                        from producing or marketing, as the case may be, any sugar
                        beets in excess of that quota;

                    (l) prohibiting any person from purchasing or otherwise acquiring
                        any sugar beets from a producer that are in excess of the quota
                        that has been fixed and allotted to the producer for the
                        production or marketing, or both, of sugar beets;

                  (m) prohibiting any person from purchasing or otherwise acquiring
                      any sugar beets from a person to whom a quota has not been
                      fixed and allotted for the production or marketing, or both, of
                      sugar beets;

                    (n) prohibiting any person from marketing or processing any sugar
                        beets that have not been sold by or through the Board or a
                        designated agency.

               (3) Pursuant to section 28 of the Act, the following conditions and
               restrictions are to be imposed by the Council with respect to regulations
               made by the Board:

                    (a) in respect of a regulation made pursuant to the authority referred
                        to in subsection (1)(g) and (h) of this section, a regulation may
                        be made only with respect to service charges and licence fees;

                    (b) in respect of a regulation made pursuant to the authority referred
                        to in subsection (2)(n) of this section, a regulation may be made
                        only with respect to sugar beets marketed or processed through
                        the Board or a designated agency.

Auditor        10(1) The auditor for the Board is the person so appointed at the annual
               general meeting of the Board.

               (2) If the auditor’s position becomes vacant after the appointment is
               made at the annual general meeting, the Board shall appoint an auditor
               for the Board.

Financing of   11(1) This Plan shall be financed by the charging and collection of
Plan
               service charges or licence fees or both.

               (2) In accordance with the regulations,

                    (a) the amount of a service charge and the method by which it will
                        be assessed shall be prescribed by the Board from time to time;

                    (b) the processor shall deduct the service charge from the first
                        payment due to the producer from the processor and shall
                        forward the service charge to the Board;

                    (c) the amount of a licence fee and the method by which it will be
                        assessed and collected shall be prescribed by the Board from
                        time to time.

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ALTA. REG. 275/97                          MARKETING OF AGRICULTURAL PRODUCTS


Indemnifica-     12(1) The Board may establish one or more funds under section 34 of
tion funds
                 the Act.

                 (2) A fund shall not be established under section 35 of the Act.

                 (3) In order to finance the funds, the Board may raise amounts in
                 accordance with section 34 of the Act.

Authority from   13 In accordance with section 50 of the Act, the Board may, with
Governor in      respect to the production or marketing, or both, of the regulated product,
Council
                 be authorized by the Council to perform any function or duty and
                 exercise any power imposed or conferred on the Board by or under the
                 Agricultural Products Marketing Act (Canada) or the Farm Products
                 Agencies Act (Canada), or both of them.


                                                 PART 2

                                      GOVERNANCE OF PLAN

                                               Division 1
                                                 Board
Composition of   14 The Board shall consist of 8 registered producers as follows:
Board
                     (a) one individual to represent each area, elected by the registered
                         producers who produce sugar beets in each area;

                     (b) one individual as chair, elected in accordance with this Plan.

Chair, etc.      15(1) At the annual general meeting, the area delegates and members of
                 the Board shall elect

                     (a) from among the registered producers, a chair of the Board, and

                     (b) from among the members of the Board, a vice-chair of the
                         Board.

                 (2) If the person elected as chair is a member of the Board representing
                 an area, that person shall be relieved of all duties as a member of the
                 Board and the registered producers who produce sugar beets in the area
                 shall elect another person as a member of the Board for the purposes of
                 section 14(a).

Removal of       16 The Board may remove the chair or the vice-chair of the Board if in
chair or vice-   the opinion of the Board, the individual is no longer representing the
chair
                 interests of the sugar beet industry and,

                     (a) in the case of the removal of the chair, at least 5 of the 7
                         members of the Board, other than the chair, vote to do so, and

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ALTA. REG. 275/97                           MARKETING OF AGRICULTURAL PRODUCTS

                      (b) in the case of the removal of the vice-chair, at least 5 of the 7
                          members of the Board, other than the vice-chair, vote to do so.

Meetings of the   17 The Board shall, at the call of the chair or 3 other members of the
Board             Board, conduct meetings of the members of the Board.

Quorum            18 A quorum for a meeting of the members of the Board is a majority
                  of the members of the Board holding office at the time that the meeting
                  is conducted.

Term of office    19 The term of office of a person elected as a member of the Board

                      (a) commences on the conclusion of the annual general meeting at
                          which that person is elected, and

                      (b) expires on the conclusion of the annual general meeting held in
                          the year following the year in which the term commenced.

Vacancy           20(1) If a member’s position on the Board other than that of chair
                  becomes vacant during that member’s term of office the executive
                  committee of the area affected shall with the approval of Council

                      (a) conduct, within the time set by the Board, a special election to
                          fill the vacant position, or

                      (b) appoint, within the time set by the Board, from among
                          individuals who are eligible to be elected to the position, an
                          individual to fill the vacant position.

                  (2) A person elected under subsection (1)(a) or appointed under
                  subsection (1)(b) shall serve as a member of the Board for the unexpired
                  portion of the term.

                  (3) If a member’s position as chair of the Board becomes vacant during
                  the chair’s term of office, the vice-chair of the Board shall assume the
                  position and the responsibilities of the chair for the unexpired portion of
                  the term.

                  (4) If a member’s position as vice-chair of the Board becomes vacant
                  during the vice-chair’s term of office, the Board shall elect from among
                  its members a vice-chair to serve for the unexpired portion of the term.


                                                 Division 2
                                                   Areas
Areas             21 For the purposes of this Plan, that portion of Alberta in which the
                  production of sugar beets occurs is divided into 7 areas as set out in the
                  Schedule.


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ALTA. REG. 275/97                         MARKETING OF AGRICULTURAL PRODUCTS


Executive       22 Each area shall have an executive committee consisting of registered
committee
                producers elected by the registered producers who produce sugar beets
                within the area.

By-laws         23 The executive committee for an area may, subject to this Plan, make
                by-laws governing

                    (a) the election of persons as executive committee members and as
                        delegates;

                    (b) the meetings of the executive committee;

                    (c) the conduct of business.

Quorum          24 A quorum for a meeting of an executive committee is a majority of
                the members of the executive committee holding office at the time that
                the meeting is conducted.

Delegates for   25(1) The registered producers who produce sugar beets within an area
an area         shall at an annual general meeting or special general meeting for the area
                elect delegates to represent those registered producers at the annual
                general meeting and any special general meeting of the Board.

                (2) The number of delegates to be elected for an area shall be determined
                by dividing the total number of registered producers who produce sugar
                beets within the area by 8 and rounding the resulting number to the next
                highest whole number.


                                             Division 3
                                          General Meetings
Area general    26 The executive committee for an area
meetings
                    (a) shall hold an annual meeting of the registered producers who
                        produce sugar beets in the area;

                    (b) shall hold a special area meeting of the registered producers
                        who produce sugar beets in the area

                            (i) on the written request of not fewer than 15% of
                                registered producers who produce sugar beets in the
                                area,

                           (ii) on the written request of the Board, or

                           (iii) on the written request of the Council;

                    (c) shall hold a special area meeting of the registered producers
                        who produce sugar beets in the area when the executive

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ALTA. REG. 275/97                          MARKETING OF AGRICULTURAL PRODUCTS

                          committee of the area is of the opinion that circumstances
                          warrant the holding of a special area meeting.

Notice re area   27(1) The executive committee of an area shall, not less than 7 days
general          prior to the date of an area meeting, forward notice of the area meeting
meeting
                 to each registered producer who produces sugar beets in the area.

                 (2) The notice given under subsection (1) shall be forwarded

                     (a) by mail sent to the last address filed with the Board by the
                         registered producer,

                     (b) by electronic means sent to the last electronic address or access
                         number filed with the Board by the registered producer, or

                     (c) by personal service.

Quorum re        28 A quorum for an annual general meeting or a special general
area general
meeting
                 meeting for an area is not less than 20% of the registered producers who
                 produce sugar beets within the area.

Board general    29 The Board shall hold
meetings
                     (a) an annual general meeting of area delegates;

                     (b) special general meetings of area delegates on the written request
                         of not less than 15% of area delegates;

                     (c) special general meetings of area delegates or registered
                         producers when the Board is of the opinion that circumstances
                         warrant the holding of a special general meeting;

                     (d) special general meetings of area delegates or registered
                         producers on the written request of the Council.

Notice re        30(1) The Board shall, not less than 7 days prior to the date of a general
Board general
meeting
                 meeting, notify each area delegate in writing of the general meeting.

                 (2) The notice given under subsection (1) shall be forwarded

                     (a) by mail sent to the last address that the area delegate, as a
                         registered producer, filed with the Board,

                     (b) by electronic means sent to the last electronic address or access
                         number that the area delegate, as a registered producer, filed
                         with the Board, or

                     (c) by personal service.




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ALTA. REG. 275/97                          MARKETING OF AGRICULTURAL PRODUCTS

Quorum re         31(1) A quorum for an annual general meeting or a special general
Board general     meeting of the Board that is to be attended by the area delegates is 70%
meeting
                  of the total number of area delegates and members of the Board.

                  (2) A quorum for a special general meeting of the Board that is to be
                  attended by the registered producers is 10% of the registered producers.

Business re       32 At the annual general meeting, the area delegates and members of
Board annual      the Board shall
general
meeting
                      (a) receive, consider and discuss the annual reports of the Board
                          and the operation of the Board since the previous annual general
                          meeting,

                      (b) receive, consider and discuss the annual reports of any
                          committees appointed by the Board,

                      (c) receive, consider and discuss the auditor’s annual financial
                          statement and report,

                      (d) appoint an auditor for the Board for the coming year, and

                      (e) discuss and formulate the policies to be adopted or continued by
                          the Board in carrying out its general duties under the Plan and
                          in carrying out the powers and duties vested in the Board.


                                                Division 4
                                   Eligibility, Voting and Elections
Producers who     33(1) A registered producer who is an individual may, subject to this
are individuals
                  Plan,

                      (a) make representations on any matter pertaining to this Plan or the
                          operation of the Board,

                      (b) attend meetings held under this Plan,

                      (c) vote on any matter under this Plan,

                      (d) vote at an election under this Plan, and

                      (e) hold office under this Plan.

                  (2) An individual who is a producer shall not in that individual’s
                  capacity as a producer vote in an election or on any matter under this
                  Plan unless

                      (a) the individual’s name appears on the current voters list, or

                      (b) the individual makes a statutory declaration stating that the
                          individual


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ALTA. REG. 275/97                          MARKETING OF AGRICULTURAL PRODUCTS

                             (i) is a producer, and

                             (ii) has not previously voted in the election or on the matter
                                  in respect of which the individual wishes to cast a vote.

                 (3) Notwithstanding subsection (1), if a individual is both

                     (a) a producer in that individual’s own capacity, and

                     (b) appointed under section 34 as a representative of a producer that
                         is not an individual,

                 that individual, during the time that the individual is a representative of
                 a producer under section 34, shall not

                     (c) vote on any matter under this Plan,

                     (d) vote at an election under this Plan, or

                     (e) hold office under this Plan,

                 in that individual’s own capacity as a producer and may only carry out
                 those functions as the representative of the producer appointed under
                 section 34.

                 (4) An individual who is eligible to vote may appoint any person as a
                 proxy to vote on the individual’s behalf if the individual appointing the
                 proxy deposits with the returning officer before the vote is to be held the
                 document under which the proxy is appointed.

                 (5) A person may not act as a proxy for more than one individual in
                 respect of the same vote.

Producers that   34(1) This section only applies in respect of a producer that is not an
are not          individual.
individuals

                 (2) If a producer is not an individual and

                     (a) makes representations on any matter pertaining to this Plan or
                         the operation of the Board,

                     (b) attends meetings held under this Plan,

                     (c) votes on any matter under this Plan,

                     (d) votes at an election under this Plan, or

                     (e) holds office under this Plan,

                 the producer shall do so in accordance with this section.

                 (3) A producer to which this section applies shall appoint an individual
                 to be the representative of the producer.

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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

             (4) A representative appointed by a producer under this section shall

                    (a) represent the producer in any matter pertaining to the Plan,

                    (b) attend meetings on behalf of the producer, and

                    (c) vote and hold office, as the case may be, on behalf of the
                        producer.

             (5) For the purpose of subsection (3), if a producer is

                    (a) a corporation, it must appoint an individual who is a director,
                        shareholder, member, officer or employee of the corporation as
                        its representative,

                    (b) a partnership, it must appoint an individual who is a partner or
                        employee of the partnership as its representative, or

                    (c) an organization that is not a corporation or partnership, it must
                        appoint a member, officer or employee of the organization as its
                        representative.

             (6) An appointment of a representative under this section must

                    (a) be in writing and set forth at least the name of the representative
                        of the producer, and

                    (b) be filed with the Board.

             (7) A representative of a producer shall not cast a vote under this Plan
             unless

                    (a) the producer’s name appears on the current voters list, and

                    (b) that representative, before the vote is cast, provides in
                        accordance with subsection (11) a copy of the document filed
                        under subsection (6).

             (8) If the requirements of subsection (6) or (7)(a) have not been met, an
             individual who is the representative of the producer may nevertheless
             cast a vote under this Plan if that individual, before the vote is cast,
             makes a statutory declaration in writing stating that the individual

                    (a) is the representative of the producer, and

                    (b) has not previously voted in the election or on the matter in
                        respect of which the vote is to be taken.

             (9) The statutory declaration referred to in subsection (8) must,

                    (a) in the case of an election, be provided to or made before the
                        returning officer or deputy returning officer, or




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ALTA. REG. 275/97                          MARKETING OF AGRICULTURAL PRODUCTS

                     (b) in the case of a vote other than an election, be provided to or
                         made before a director or officer of the Board.

                 (10) An individual shall not be a representative under this section for
                 more than one producer at any one time.

                 (11) A representative is not eligible to hold office under this Plan on
                 behalf of the producer until the representative’s appointment is filed in
                 accordance with subsection (6).

                 (12) A producer that is not an individual shall not carry out the functions
                 referred to in subsection (2) except in accordance with this section.

                 (13) A representative of a registered producer who is eligible to vote
                 may appoint any person as a proxy to vote on the representative’s behalf
                 if the representative appointing the proxy deposits with the returning
                 officer before the vote is to be held the document under which the proxy
                 is appointed.

                 (14) A person may not act as a proxy for more than one representative
                 in respect of the same vote.

One vote only    35 An individual may cast only one vote on any matter put to a vote
                 under this Plan, notwithstanding that the individual meets one or more
                 than one of the following criteria:

                     (a) the individual is a registered producer;

                     (b) the individual is a representative of a registered producer;

                     (c) the individual holds a proxy for another registered producer;

                     (d) the individual or the registered producer for whom the
                         individual is a representative manages or operates or owns,
                         leases or holds equity in one or more operations that are
                         registered separately with the Board;

                     (e) the individual or the registered producer for whom the
                         individual is a representative produces sugar beets in more than
                         one area.

Eligibility re   36 In order to serve as a member of the Board, a person must be a
members of
the Board
                 registered producer.

Eligibility re   37 In order to serve as an area executive committee member, area
area
representative
                 delegate or officer, a person must be a registered producer who produces
                 sugar beets in the area.




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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

Limits on     38(1) A person shall not serve for more than 6 consecutive years as a
eligibility   member of the Board without the approval of the Council.

              (2) If a person has served as a member of the Board for 6 consecutive
              years or such longer period where authorized by Council, that person is
              not eligible to once again serve as a member of the Board unless at least
              one year has expired from the day that the person’s most recent term of
              office expired.

              (3) Where a person is the chair of the Board, subsections (1) and (2) do
              not apply to that person while that person is the chair of the Board.

Voting        39(1) A person shall not vote under this Plan except in accordance with
              this Plan.

              (2) A person who is eligible to vote may

                    (a) vote once on each matter, and

                    (b) in the case of an election held under this Plan, vote for any
                        number of candidates, not exceeding the number of members to
                        be elected at that election,

              notwithstanding that the producer may produce sugar beets in more than
              one area.

              (3) A person is eligible to vote under this Plan if that person

                    (a) meets the requirements under this Plan for voting,

                    (b) is a registered producer,

                    (c) in the case of a vote that is to take place in respect of an area,
                        produces sugar beets in the area, and

                    (d) is present at the meeting at which the vote is to take place.

Returning     40(1) The Board shall appoint a returning officer for the purposes of and
officer
              in connection with any election or vote taken under this Plan.

              (2) The returning officer may appoint individuals as deputy returning
              officers to assist in the conduct of elections and votes under this Plan.

              (3) The returning officer shall

                    (a) compile and maintain a voters list of registered producers who
                        are entitled to vote under this Plan,

                    (b) ensure that an individual does not cast a vote under this Plan
                        except in accordance with this Plan, and




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ALTA. REG. 275/97                            MARKETING OF AGRICULTURAL PRODUCTS

                       (c) permit scrutiny by a scrutineer of all the actions taken by the
                           returning officer and the deputy returning officers respecting the
                           conduct of a vote taken under this Plan.

                   (4) Unless otherwise directed by the Council, no person shall destroy
                   any record or ballot in respect of any vote held pursuant to this Plan until
                   not less than 90 days after the day on which the voting was conducted
                   have expired.

Void election      41(1) If an election is held under this Plan and there is not in attendance
                   at the meeting at which the election is held the number of individuals
                   required by this Plan,

                       (a) the election is void, and

                       (b) the position in respect of which the election was held is vacant.

                   (2) Notwithstanding that a position is vacant under subsection (1), the
                   term of office of the position that is vacant shall be deemed to have
                   commenced as if an individual had been elected to the position.

                   (3) When, under this section, a position is vacant, the Council shall
                   appoint an individual to fill that position from among the individuals
                   eligible to be elected to that position.

                   (4) An individual appointed under subsection (3) shall serve the
                   unexpired portion of the term.

Invalid election   42 If a registered producer questions

                       (a) the eligibility of a candidate,

                       (b) the eligibility of a voter,

                       (c) any matter relating to a ballot or the tabulation of the ballots, or

                       (d) any other irregularity with respect to the conduct of an election,

                   and seeks to have the election declared invalid and the position declared
                   vacant, that producer shall, within 15 days of the date of the election,
                   make application in writing to the Council to have the election declared
                   invalid and the position declared vacant.

Decision of        43(1) On receiving an application under section 42, the Council shall
Council            consider the matter and may do any or all of the following:

                       (a) declare the election to be proper and the position filled, if, in the
                           opinion of the Council, the matters referred to in the application
                           are unfounded;




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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) declare the election to be proper and the position filled,
                        notwithstanding that the matters referred to in the application
                        are well founded, if, in the opinion of the Council,

                            (i) those matters did not materially affect the result of the
                                election, and

                           (ii) the election was conducted substantially in accordance
                                with this Plan and the Act;

                    (c) declare the election to be void and the position vacant, if, in the
                        opinion of the Council,

                            (i) those matters referred to in the application are well
                                founded, and

                           (ii) those matters referred to in the application were
                                sufficient to or did affect the result of the election.

               (2) Notwithstanding that the election is declared void and the position
               vacant under subsection (1)(c), the term of office of the position declared
               vacant shall be deemed to have commenced on the date on which the
               election that was declared void was held.

               (3) If the Council declares an election to be void and the position vacant,
               it shall

                    (a) order that, within the time set by the Council, a special election
                        meeting be held and an election conducted to fill the vacant
                        position, or

                    (b) appoint, from among individuals who are eligible to be elected
                        to the position, an individual to fill the vacant position.

               (4) A person elected under subsection (3)(a) or appointed under
               subsection (3)(b) shall serve the unexpired portion of the term.


                                                PART 3

                    TRANSITIONAL PROVISION, REVIEW AND REPEAL
Transitional   44(1) In this section,

                    (a) “new Plan” means the Plan as continued by this Regulation;

                    (b) “previous Plan” means the Sugar Beet Marketing Plan
                        Regulation (AR 227/90) as it read immediately before the
                        coming into force of this Regulation.

               (2) The persons who, immediately before the coming into force of this
               Regulation, were members of the Board under the previous Plan shall,
               on the coming into force of the new Plan, continue as members of the



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ALTA. REG. 275/97                        MARKETING OF AGRICULTURAL PRODUCTS

                Board under the new Plan until members of the Board are elected under
                the new Plan.

Review          45 In compliance with the ongoing regulatory review initiative, this
                Regulation must be reviewed on or before December 31, 2002.

Repeal          46 Alberta Regulation 227/90 is repealed.


                                             SCHEDULE


Coaldale Area   1 The Coaldale Area consists of all the land included within the
                boundary commencing at and proceeding from the north-east corner of
                section 25, Township 10, Range 20, west along the south side of the
                Oldman River to its source at the Alberta-British Columbia border, south
                along the Alberta-British Columbia border to the United States border,
                east along the Alberta-United States border to the south-east corner of
                section 1, Township 1, Range 15, north to the south-west corner of
                section 30, Township 6, Range 14, west to the south-west corner of
                section 6, Township 7, Range 19, and north to the north-east corner of
                section 25, Township 10, Range 20.
Tempest Area    2 The Tempest Area consists of all the land included within the
                boundary commencing at and proceeding from the north-west corner of
                section 30, Township 10, Range 19, east along the south side of the
                Oldman River to the south-west corner of section 36, Township 10,
                Range 19, south to the north-east corner of the south-west of section 12,
                Township 9, Range 19, east along the south side of the Chin Lakes
                Reservoirs to the north-east corner of section 13, Township 7, Range 15,
                south to the south-east corner of section 1, Township 7, Range 15, west
                to the south-west corner of section 6, Township 7, Range 20, and north
                to the north-west corner of section 30, Township 10, Range 19.
Lethbridge      3 The Lethbridge Northern Area consists of all the land included within
Northern Area   the boundary commencing at and proceeding from the north-east corner
                of section 1, Township 11, Range 19, north to the north-east corner of
                section 36, Township 13, Range 19, west along the division line between
                Township 13 and 14 to the north-west corner of section 31, Township
                13, Range 24, south to the Oldman River, and east along the north side
                of the Oldman River to the north-east corner of section 1, Township 11,
                Range 19.
Taber West      4 The Taber West Area consists of all the land included within the
Area
                boundary commencing at and proceeding from the north-west corner of
                the south-west of section 31, Township 10, Range 18, east along the
                south side of the Oldman River to the south-west corner of section 18,
                Township 10, Range 16, east to the south-west corner of section 16,
                Township 10, Range 16, south to the south-west corner of section 33,
                Township 8, Range 16, west along the north side of the Chin Lakes
                Reservoirs to the north-west corner of section 7, Township 9, Range 18,


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                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998



                and north to the north-west corner of the south-west of section 31,
                Township 10, Range 18.
Taber East      5 The Taber East Area consists of all the land included within the
Area
                boundary commencing at and proceeding from the south-west corner of
                section 18, Township 10, Range 16, east along the south side of the
                Oldman/South Saskatchewan River to the north-east corner of the
                south-east of section 12, Township 11, Range 13, south to the south-east
                corner of section 1, Township 11, Range 13, east to the north-east corner
                of section 36, Township 10, Range 13, south to the south-east corner of
                the north-east of section 1, Township 7, Range 13, west along the north
                side of the Chin Lakes Reservoirs to the south-west corner of section 33,
                Township 7, Range 16, north to the south-west corner of section 16,
                Township 10, Range 16, and west to the south-west corner of section 18,
                Township 10, Range 16.
Burdett-Bow     6 The Burdett-Bow Island Area consists of all the land included within
Island Area     the boundary commencing at and proceeding from the north-east corner
                of the south-east of section 12, Township 11, Range 13, south to the
                south-east corner of section 1, Township 11, Range 13, east to the
                north-east corner of section 36, Township 10, Range 13, south to the
                south-east corner of the north-east of section 1, Township 7, Range 13,
                west along the south side of the Chin Lakes Reservoirs to the north-west
                corner of section 18, Township 7, Range 14, south to the Alberta-United
                States border, east to the Alberta-Saskatchewan border, north along the
                Alberta-Saskatchewan border to the South Saskatchewan River, and west
                along the south side of the South Saskatchewan River to the north-east
                corner of the south-east of section 12, Township 11, Range 13.
Vauxhall Area   7 The Vauxhall Area consists of all the land north of the Oldman River
                and the South Saskatchewan River, excepting the land included in the
                Lethbridge Northern Area.



                             Alberta Regulation 276/97

                      Marketing of Agricultural Products Act

                ALBERTA CHICKEN PRODUCERS MARKETING
                       AMENDMENT REGULATION

                                                               Filed: December 17, 1997

Made by the Alberta Chicken Producers pursuant to sections 26 and 27 of the Marketing
of Agricultural Products Act.

                1 The Alberta Chicken Producers Regulation (AR 227/96) is
                amended by this Regulation.


                2 Section 10(1) is amended by striking out “$0.008” and
                substituting “$0.01”.




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ALTA. REG. 276/97                         MARKETING OF AGRICULTURAL PRODUCTS

                 3 The following is added after section 24:
Appointment of         24.1(1) Subject to subsections (3) and (4), a person who has
attorney
                       loaned money to an authorized producer may apply to the Board
                       to register an appointment of attorney.

                       (2) An appointment of attorney shall be in the form authorized
                       by the Board.

                       (3) Only one appointment of attorney may be registered in
                       respect of an authorized producer.

                       (4) The Board shall not register an appointment of attorney if
                       there is a financial interest under section 23 registered in respect
                       of the production facilities and premises of that authorized
                       producer.

                       (5) The Board shall not register an appointment of attorney
                       unless it is signed by the authorized producer that is affected by
                       it.

                       (6) An appointment of attorney is only effective from the date
                       the Board acknowledges in writing that it is registered.

                       (7) Where the Board has acknowledged registration of the
                       appointment of attorney, the Board shall not approve an
                       application for

                           (a) the cancellation and reallocation of the authorized quota
                               specified in the appointment of attorney,

                           (b) the lease of the authorized quota specified in the
                               appointment of attorney, or

                           (c) the transfer of an ownership interest in the authorized
                               quota specified in the appointment of attorney,

                       unless the person appointed as the attorney signs the application.


                 4 Section 25(3)(a) is amended by striking out “107%” and
                 substituting “105%”.


                 5 Section 26(1)(b) is amended by striking out “7%” and
                 substituting “5%”.


                 6 Section 2 comes into force on January 1, 1998.




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                              ------------------------------

                            Alberta Regulation 277/97

                              Mines and Minerals Act

                MINES AND MINERALS REPEAL REGULATION

                                                               Filed: December 17, 1997

Made by the Minister of Energy (M.O. 32/97) pursuant to section 8(1)(i) of the Mines and
Minerals Act and section 22(2) of the Petroleum and Natural Gas Agreements Regulation.

               1 The following regulations are repealed:

                   (a) Mines and Minerals Act Forms Regulation (AR 241/87);

                   (b) Compensatory Royalty Regulation (AR 254/85).


               2 This Regulation comes into force on January 1, 1998.



                            Alberta Regulation 278/97

                     Marketing of Agricultural Products Act

                   ALBERTA HATCHING EGG PRODUCERS
                      AUTHORIZATION REGULATION

                                                               Filed: December 18, 1997

Made by the Alberta Agricultural Products Marketing Council pursuant to sections 26 and
27 of the Marketing of Agricultural Products Act.

                                           Table of Contents

               Definitions                                                          1
               Regulations made under section 26 of the Act                         2
               Regulations made under section 27(1) of the Act                      3
               Regulations made under section 27(2) of the Act                      4
               Regulations made under section 33(1)(e) of the Act                   5
               Repeal                                                               6
               Expiry                                                               7

Definitions    1(1) In this Regulation,

                   (a) “Act” means the Marketing of Agricultural Products Act;

                   (b) “Board” means the Alberta Hatching Egg Producers referred to
                       in section 6 of the Plan;



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ALTA. REG. 278/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (c) “Plan” means the Alberta Hatching Egg Plan Regulation (Alta.
                        Reg. 283/96);

                    (d) “producer” means a producer as defined in the Plan;

                    (e) “regulated product” means the regulated product as defined in
                        the Plan.

                (2) Words used in this Regulation that are defined in the Plan have the
                same meaning as defined in the Plan.

Regulations     2 For the purposes of enabling the Board to operate the Plan, the Board
made under      is hereby authorized under section 26 of the Act to make regulations
section 26 of
the Act
                    (a) requiring producers engaged in the production or marketing, or
                        both, of the regulated product to register their names and
                        addresses with the Board;

                    (b) requiring any person who produces, markets or processes the
                        regulated product to furnish to the Board any information or
                        record relating to the production, marketing or processing of the
                        regulated product that the Board considers necessary;

                    (c) requiring persons to be licensed under the Plan before they
                        become engaged in the production, marketing and processing,
                        or any one or more of those functions, of the regulated product;

                    (d) prohibiting persons from engaging in the production, marketing
                        or processing, as the case may be, of the regulated product
                        except under the authority of a licence;

                    (e) governing the issuance, suspension or cancellation of a licence;

                    (f) providing for

                            (i) the assessment, charging and collection of service
                                charges and licence fees, as the case may be, from
                                producers from time to time for the purposes of the Plan,
                                and

                           (ii) the taking of legal action to enforce payment of the
                                service charges and licence fees, as the case may be;

                    (g) requiring any person who receives the regulated product from
                        a producer

                            (i) to deduct from the money payable to the producer any
                                service charges, licence fees or levies, as the case may
                                be, payable by the producer to the Board, and

                           (ii) to forward the amount deducted to the Board;




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ALTA. REG. 278/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (h) providing for the use of any class of service charges, licence
                        fees, levies or other money payable to or received by the Board
                        for the purpose of paying its expenses and administering the
                        Plan and the regulations made by the Board;

                    (i) providing for the payment to a Canada Board of money that is
                        payable under a Canada Act.

Regulations     3 For the purposes of enabling the Board to operate the Plan, the Board
made under
section 27(1)
                is hereby authorized under section 27(1) of the Act to make regulations
of the Act
                    (a) requiring that the production or marketing, or both, of the
                        regulated product be conducted pursuant to a quota;

                    (b) governing

                            (i) the fixing and allotting of quotas,

                           (ii) the increase or reduction of quotas,

                          (iii) the cancelling of quotas, and

                          (iv) the refusal to fix and allot quotas,

                        to producers for the production or marketing, or both, of the
                        regulated product on any basis the Board considers appropriate;

                    (c) governing the transferability or non-transferability of quotas
                        and prescribing the conditions and procedures applicable to the
                        transfer of quotas, if any, that the Board considers appropriate;

                    (d) establishing

                            (i) a formula for determining the amount or number of
                                regulated product deemed to have been produced or
                                marketed by a producer, and

                           (ii) the period of time in respect of which the formula is to
                                be applied,

                        for the purpose of determining the amount of regulated product
                        produced or marketed by a producer during a period of time;

                    (e) providing for

                            (i) the assessment, charging and collection of a levy from
                                any producer whose production or marketing, or both, of
                                the regulated product is in excess of the quota that has
                                been fixed and allotted to that producer, and

                           (ii) the taking of legal action to enforce payment of the levy;




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ALTA. REG. 278/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (f) requiring any person who provides any agricultural product to
                        a producer under the Plan to furnish to the Board any
                        information requested by the Board;

                    (g) determining the quantity of each class, variety, size, grade and
                        kind of regulated product that shall be produced or marketed, or
                        both, by each producer;

                    (h) directing, controlling or prohibiting, as the case may be, the
                        production or marketing, or both, of the regulated product or
                        any class, variety, size, grade or kind of regulated product in
                        such a manner that the Board considers appropriate;

                    (i) regulating and controlling the production or marketing, or both,
                        of the regulated product, including the times and places at
                        which the regulated product may be produced or marketed;

                    (j) providing for the purchase or acquisition of any of the regulated
                        product that the Board considers advisable and the sale or
                        disposition of it;

                    (k) providing for the establishment and operation of one or more
                        programs for the disposition of any agricultural product
                        considered to be surplus to market requirements;

                    (l) providing for the payment to a producer of the money payable
                        or owing for the regulated product, less any service charges and
                        levies owing to the Board by the producer, and fixing the time
                        or times at which or within which the payments shall be made;

                (m) governing

                           (i) the furnishing of security or proof of financial
                               responsibility by any person engaged in the production,
                               marketing or processing of the regulated product, and

                           (ii) the administration and disposition of any money or
                                securities so furnished;

                    (n) prohibiting a person to whom a quota has not been fixed and
                        allotted for the production or marketing, or both, of the
                        regulated product from producing or marketing, as the case may
                        be, any regulated product;

                    (o) prohibiting a producer to whom a quota has been fixed and
                        allotted for the production or marketing, or both, of the
                        regulated product from producing or marketing, as the case may
                        be, any regulated product in excess of that quota;

                    (p) prohibiting any person from purchasing or otherwise acquiring
                        from a producer any regulated product that is in excess of the
                        quota that has been fixed and allotted to the producer for the
                        production or marketing, or both, of the regulated product;



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ALTA. REG. 278/97                          MARKETING OF AGRICULTURAL PRODUCTS

                      (q) prohibiting any person from purchasing or otherwise acquiring
                          any regulated product from a person to whom a quota has not
                          been fixed and allotted for the production or marketing, or both,
                          of the regulated product.

Regulations       4 For the purposes of enabling the Board to operate the Plan, the Board
made under        is hereby authorized under section 27(2) of the Act, to make regulations
section 27(2)
of the Act
                      (a) governing breeder chickens in the same manner as if breeder
                          chickens were a regulated product under the Plan;

                      (b) governing with respect to breeder chickens the producers of the
                          regulated product under the Plan in the same manner as if
                          breeder chickens were a regulated product under the Plan;

                      (c) establishing and governing a formula for determining the
                          amount or number of the regulated product produced or deemed
                          to have been produced from breeder chickens.

Regulations       5 For the purposes of enabling the Board to operate the Plan, the Board
made under
section
                  is hereby authorized under section 33(1)(e) of the Act, to make
33(1)(e) of the   regulations regulating and controlling agreements entered into by
Act               producers of the regulated product with persons engaged in marketing or
                  processing the regulated product.

Repeal            6    The Alberta Hatching Egg Marketing Plan Implementation
                  Regulation (AR 256/82) is repealed.

Expiry            7 For the purpose of ensuring that this Regulation is reviewed for
                  ongoing relevancy and necessity, with the option that it may be re-passed
                  in its present or an amended form following a review, this Regulation
                  expires on December 31, 2002.


                                 ------------------------------

                                Alberta Regulation 279/97

                        Marketing of Agricultural Products Act

   ALBERTA EGG PRODUCERS BOARD AUTHORIZATION REGULATION

                                                                  Filed: December 18, 1997

Made by the Alberta Agricultural Products Marketing Council pursuant to sections 26 and
27 of the Marketing of Agricultural Products Act.

                                             Table of Contents

                  Definitions                                                            1

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ALTA. REG. 279/97                          MARKETING OF AGRICULTURAL PRODUCTS

                Regulations made under section 26 of the Act                           2
                Regulations made under section 27(1) of the Act                        3
                Regulations made under section 27(2) of the Act                        4
                Repeal                                                                 5
                Expiry                                                                 6

Definitions     1(1) In this Regulation,

                    (a) “Act” means the Marketing of Agricultural Products Act;

                    (b) “Board” means the Alberta Egg Producers Board referred to in
                        section 7 of the Plan;

                    (c) “Plan” means the Alberta Egg Producers Plan Regulation (AR
                        258/97);

                    (d) “producer” means a producer as defined in the Plan.

                (2) Words not defined in this Regulation but that are used in this
                Regulation and that are defined in the Plan have the same meaning as
                defined in the Plan.

Regulations     2 For the purposes of enabling the Board to operate the Plan, the Board
made under      is hereby authorized under section 26 of the Act to make regulations
section 26 of
the Act
                    (a) requiring producers engaged in the production or marketing, or
                        both, of the regulated product to register their names and
                        addresses with the Board;

                    (b) requiring any person who produces, markets or processes the
                        regulated product to furnish to the Board any information or
                        record relating to the production, marketing or processing of the
                        regulated product that the Board considers necessary;

                    (c) requiring persons to be licensed under the Plan before they
                        become engaged in the production, marketing and processing,
                        or any one or more of those functions, of the regulated product;

                    (d) prohibiting persons from engaging in the production, marketing
                        or processing, as the case may be, of the regulated product
                        except under the authority of a licence;

                    (e) governing the issuance, suspension or cancellation of a licence;

                    (f) providing for

                            (i) the assessment, charging and collection of service
                                charges and licence fees, as the case may be, from
                                producers from time to time for the purposes of the Plan,
                                and




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ALTA. REG. 279/97                        MARKETING OF AGRICULTURAL PRODUCTS

                           (ii) the taking of legal action to enforce payment of the
                                service charges and licence fees, as the case may be;

                    (g) requiring any person who receives the regulated product from
                        a producer

                            (i) to deduct from the money payable to the producer any
                                service charges, licence fees or levies, as the case may
                                be, payable by the producer to the Board, and

                           (ii) to forward the amount deducted to the Board;

                    (h) providing for the use of any class of service charges, licence
                        fees, levies or other money payable to or received by the Board
                        for the purpose of paying its expenses and administering the
                        Plan and the regulations made by the Board;

                    (i) requiring persons who produce, market or process the regulated
                        product to mark the containers of their products to show the
                        place of origin or place of production to the satisfaction of the
                        Board;

                    (j) providing for the payment to a Canada Board of money that is
                        payable under a Canada Act;

                    (k) permitting the Board to exercise any one or more powers that
                        are vested in a co-operative association under the Co-operative
                        Associations Act.

Regulations     3 For the purposes of enabling the Board to operate the Plan, the Board
made under      is hereby authorized under section 27(1) of the Act to make regulations
section 27(1)
of the Act
                    (a) requiring that the production or marketing, or both, of the
                        regulated product be conducted pursuant to a quota;

                    (b) governing

                            (i) the fixing and allotting of quotas,

                           (ii) the increase or reduction of quotas,

                          (iii) the cancelling of quotas, and

                          (iv) the refusal to fix and allot quotas,

                        to producers for the production or marketing, or both, of the
                        regulated product on any basis the Board considers appropriate;

                    (c) governing the transferability or non-transferability of quotas
                        and prescribing the conditions and procedures applicable to the
                        transfer of quotas, if any, that the Board considers appropriate;

                    (d) establishing

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ALTA. REG. 279/97                        MARKETING OF AGRICULTURAL PRODUCTS

                            (i) a formula for determining the amount or number of
                                regulated product deemed to have been produced or
                                marketed by a producer, and

                           (ii) the period of time in respect of which the formula is to
                                be applied,

                        for the purpose of determining the amount of regulated product
                        produced or marketed by a producer during a period of time;

                    (e) providing for

                            (i) the assessment, charging and collection of a levy from
                                any producer whose production or marketing, or both, of
                                the regulated product is in excess of the quota that has
                                been fixed and allotted to that producer, and

                           (ii) the taking of legal action to enforce payment of the levy;

                    (f) requiring any person who provides an agricultural product to a
                        producer under the Plan to furnish to the Board any information
                        requested by the Board;

                    (g) determining the quantity of each class, variety, size, grade and
                        kind of the regulated product that shall be produced or
                        marketed, or both, by each producer;

                    (h) requiring a producer who produces the regulated product to
                        market the regulated product through the Board or through a
                        designated agency;

                    (i) directing, controlling or prohibiting, as the case may be, the
                        production or marketing, or both, of the regulated product or
                        any class, variety, size, grade or kind of the regulated product
                        in a manner that the Board considers appropriate;

                    (j) regulating and controlling the production or marketing, or both,
                        of the regulated product, including the times and places at
                        which the regulated product may be produced or marketed;

                    (k) providing for the purchase or acquisition of any of the regulated
                        product that the Board considers advisable and the sale or
                        disposition of it;

                    (l) providing for the establishment and operation of one or more
                        programs for the disposition of

                            (i) any agricultural product, or

                           (ii) the regulated product

                        considered to be surplus to market requirements;




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ALTA. REG. 279/97                        MARKETING OF AGRICULTURAL PRODUCTS

                (m) determining from time to time the minimum price or prices that
                    shall be paid to producers for the regulated product or any class,
                    variety, grade, size or kind of the regulated product and
                    determining different prices for different parts of Alberta;

                    (n) requiring that the money payable or owing to a producer for the
                        regulated product be paid to or through the Board;

                    (o) providing for the payment to a producer of the money payable
                        or owing for the regulated product, less any service charges and
                        levies owing to the Board by the producer, and fixing the time
                        or times at which or within which the payments shall be made;

                    (p) providing

                            (i) for the operation of one or more pools for the
                                distribution of all money payable to the producers from
                                the sale of the regulated product, and

                           (ii) for the deduction of reasonable and proper
                                disbursements and expenses with respect to the
                                operation of the pool;

                    (q) providing for the collection from any person by legal action of
                        money owing to a producer for the regulated product;

                    (r) governing

                            (i) the furnishing of security or proof of financial
                                responsibility by any person engaged in the production,
                                marketing or processing of the regulated product, and

                           (ii) the administration and disposition of any money or
                                securities so furnished;

                    (s) prohibiting a person to whom a quota has not been fixed and
                        allotted for the production or marketing, or both, of the
                        regulated product from producing or marketing, as the case may
                        be, any regulated product;

                    (t) prohibiting a producer to whom a quota has been fixed and
                        allotted for the production or marketing, or both, of the
                        regulated product from producing or marketing, as the case may
                        be, any regulated product in excess of that quota;

                    (u) prohibiting any person from purchasing or otherwise acquiring
                        from a producer any regulated product in excess of the quota
                        that has been fixed and allotted to the producer for the
                        production or marketing, or both, of the regulated product;

                    (v) prohibiting any person from purchasing or otherwise acquiring
                        any regulated product from a person to whom a quota has not
                        been fixed and allotted for the production or marketing, or both,
                        of the regulated product;

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ALTA. REG. 279/97                          MARKETING OF AGRICULTURAL PRODUCTS

                   (w) prohibiting any person from marketing or processing any
                       regulated product that has not been sold by or through the
                       Board or a designated agency.

Regulations     4 For the purposes of enabling the Board to operate the Plan, the Board
made under
section 27(2)
                is hereby authorized under section 27(2) of the Act to make regulations
of the Act
                    (a) governing any agricultural product that is not the regulated
                        product in the same manner as if that agricultural product was
                        the regulated product under the Plan;

                    (b) governing, with respect to any agricultural product that is not
                        the regulated product, the producers of the regulated product
                        under the Plan in the same manner as if that agricultural product
                        was the regulated product under the Plan;

                    (c) establishing and governing a formula for determining the
                        amount or number of the regulated product produced or deemed
                        to have been produced from any agricultural product that is not
                        the regulated product.

Repeal          5 The following regulations are repealed:

                    (a) the Regulations Relating to the Implementation of the Alberta
                        Egg and Fowl Marketing Plan 1967 (AR 282/71);

                    (b) the Alberta Egg Producers Board Authorization Regulation
                        (AR 236/92).

Expiry          6 For the purpose of ensuring that this Regulation is reviewed for
                ongoing relevancy and necessity, with the option that it may be repassed
                in its present or an amended form following a review, this Regulation
                expires on December 31, 2002.


                                 ------------------------------

                             Alberta Regulation 280/97

                     Marketing of Agricultural Products Act

                         HATCHING EGGS REGULATION

                                                                  Filed: December 19, 1997

Made by the Alberta Hatching Egg Producers pursuant to sections 26 and 27 of the
Marketing of Agricultural Products Act.

                                             Table of Contents

                Interpretation                                                         1

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ALTA. REG. 280/97                     MARKETING OF AGRICULTURAL PRODUCTS

                                               Part 1
                                              Licences

             Licence required                                              2
             Licensing of producers, hatcheries and pullet growers         3
             Applications for licences                                     4
             Issue, renewal or refusal of licence                          5
             Suspension or cancellation of licence                         6
             Authority of producer licence                                 7
             Authority of hatchery licence                                 8
             Authority of pullet grower’s licence                          9
             Licence fees                                                 10
             Disposal of licence prohibited                               11
             Multiple licences                                            12
             Effect of licence                                            13

                                              Part 2
                                              Quotas

             Must hold quota or permit                                    14
             Quota certificate                                            15
             Quota allotment                                              16
             Pullet growing                                               17
             Application list for quota                                   18
             Quota increases                                              19
             Quota bank                                                   20
             Quota limit                                                  21
             Quota transfers                                              22
             Transfer fee                                                 23
             Lease of quota                                               24
             Research permit                                              25
             Financial interest in production facilities                  26
             Enforcement of financial interest in production facilities   27
             Reduction in or loss of quota                                28
             Reversion of quota                                           29

                                              Part 3
                                         Service Charges

             Service charges                                              30
             Weekly statements                                            31
             Monthly statements                                           32
             Records                                                      33

                                             Part 4
                                           Production

             Notice of production variation                               34
             Change in utilization factor                                 35
             Cycle adjustment                                             36
             Placement                                                    37
             Overproduction                                               38




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ALTA. REG. 280/97                           MARKETING OF AGRICULTURAL PRODUCTS



                                                   Part 5
                                                  General

                 Notices                                                              39
                 Information change                                                   40
                 Prohibitions re sale of hatching eggs                                41
                 Prohibition re hatchery                                              42
                 Prohibition re minimum price                                         43
                 Prohibition re licensed producer                                     44
                 Prohibition re marketing                                             45
                 Transitional                                                         46
                 Repeal                                                               47
                 Expiry                                                               48

Interpretation   1(1) In this Regulation,

                     (a) “breeder quota” means the maximum number of breeder hens
                         that may be placed by a producer in a one-year period;

                     (b) “facility” means the buildings and improvements in which
                         hatching eggs are produced and the parcel of land on which the
                         buildings and improvements are situated;

                     (c) “family” includes a husband, wife, common-law husband,
                         common-law wife, son, daughter, father, mother, brother, sister,
                         son-in-law, daughter-in-law, father-in-law or mother-in-law;

                     (d) “family farm” means a farm owned and operated by members
                         of the same family;

                     (e) “incorporated family farm” means a corporation engaged
                         primarily in the business of farming in which all of the
                         shareholders are members of the same family;

                     (f) “licensee” means a person who has been issued one or more of
                         the following:

                             (i) a producer licence;

                            (ii) a hatchery licence;

                           (iii) a pullet grower licence;

                     (g) “marketing authorization” means breeder quota multiplied by
                         the utilization factor under section 35;

                     (h) “national agency” means an agency established in relation to
                         hatching eggs under a Canada Act;

                     (i) “quota holder” means a person to whom breeder quota has been
                         allocated;



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ALTA. REG. 280/97                           MARKETING OF AGRICULTURAL PRODUCTS

                       (j) “research permit” means a type of quota under which a person
                           may market regulated product that is used primarily for research
                           purposes in accordance with the conditions imposed under
                           section 25;

                       (k) “research purposes” means a bona fide scientific experiment or
                           study;

                       (l) “secured lender” means a person who has made a loan to a
                           quota holder and has taken security over that quota holder’s
                           facility by way of a mortgage, agreement for sale or debenture;

                      (m) “total provincial allocation” means the sum of all breeder quota
                          allocated in Alberta as calculated from time to time;

                       (n) “transfer” means sell, give, assign or otherwise dispose of.

                   (2) A reference to a hatchery includes a reference to the person who
                   operates the hatchery.


                                                  PART 1

                                                LICENCES
Licence            2 A person shall not engage in the production, marketing or processing
required
                   of hatching eggs unless that person is the holder of the appropriate
                   licence issued by the Board.

Licensing of       3(1) A person may apply to the Board for one or more of the following
producers,         licences:
hatcheries and
pullet growers
                       (a) a licence to operate as a producer;

                       (b) a licence to operate as a pullet grower;

                       (c) a licence to operate as a hatchery.

                   (2) A licence expires on December 31 of the year for which it is issued.

                   (3) The licensee must comply with any directions given from time to
                   time by the Board relating to the activity authorized by the licence.

Applications for   4(1) In an application for a producer licence the applicant must
licences
                       (a) set out the applicant’s name, telephone number and mailing
                           address;

                       (b) describe the experience, familiarity and understanding of the
                           applicant with respect to the production of hatching eggs;




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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (c) describe the facilities of the applicant, including a description
                        of the buildings and improvements in which hatching eggs are
                        to be produced and the legal land description of the parcel of
                        land on which the buildings and improvements are situated;

                    (d) describe the equipment to be used by the applicant with respect
                        to the production of hatching eggs;

                    (e) provide sufficient evidence of the financial responsibility of the
                        applicant;

                    (f) describe each operation and each location if a licence is being
                        sought for more than one facility;

                    (g) provide evidence that the applicant

                            (i) is a Canadian citizen,

                           (ii) is admitted to Canada as a permanent resident, or

                          (iii) in the case of a corporation, has a majority of its shares
                                owned by Canadian citizens or persons admitted to
                                Canada as permanent residents;

                    (h) include any other information as the Board may require in
                        respect of the application.

             (2) In an application for a hatchery licence the applicant must

                    (a) set out the name, telephone number and mailing address of the
                        hatchery;

                    (b) provide the address of the hatchery, if it is not the mailing
                        address, including the legal land description of the parcel of
                        land on which the hatchery is situated;

                    (c) provide the name of the applicant;

                    (d) describe the experience, familiarity and understanding of the
                        applicant with respect to the operation of a hatchery;

                    (e) describe the buildings and improvements to be used by the
                        hatchery;

                    (f) describe the equipment to be used by the hatchery;

                    (g) provide sufficient evidence of the financial responsibility of the
                        applicant;

                    (h) provide any other information as the Board may require in
                        respect of the application.




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ALTA. REG. 280/97                          MARKETING OF AGRICULTURAL PRODUCTS



                 (3) In an application for a pullet grower’s licence the applicant must

                     (a) set out the applicant’s name, telephone number and mailing
                         address;

                     (b) describe the experience, familiarity and understanding of the
                         applicant with respect to the production of pullets;

                     (c) describe the facilities of the applicant, including a description
                         of the buildings and improvements in which pullets are
                         produced and the legal land description of the parcel of land on
                         which the buildings and improvements are situated;

                     (d) describe the equipment to be used by the applicant with respect
                         to the production of pullets;

                     (e) provide sufficient evidence of the financial responsibility of the
                         applicant;

                     (f) describe each operation and each location if a licence is being
                         sought for more than one facility;

                     (g) provide evidence that the applicant

                             (i) is a Canadian citizen,

                            (ii) is admitted to Canada as a permanent resident, or

                            (iii) in the case of a corporation, has a majority of its shares
                                  owned by Canadian citizens or persons admitted to
                                  Canada as permanent residents;

                     (h) provide the name of the quota holders for whom pullets will be
                         grown;

                      (i) include any other information as the Board may require in
                          respect of the application.

Issue, renewal   5(1) The Board must consider each application and, unless the applicant
or refusal of    is refused a licence under subsection (3) or (4), the Board shall issue a
licence
                 licence to the applicant.

                 (2) Subject to subsections (3), (4) and (5), the Board shall annually
                 before January 1 renew a licence that is issued under subsection (1).

                 (3) The Board may refuse to issue or renew a licence if the applicant

                     (a) lacks, in the Board’s opinion, the experience, equipment or
                         financial responsibility to properly engage in or continue to
                         engage in the activity to which the application or licence relates,
                         or



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ALTA. REG. 280/97                            MARKETING OF AGRICULTURAL PRODUCTS

                      (b) contravenes the Act, the Plan, this Regulation or an order or
                          direction of the Council or the Board.

                  (4) In the case of a producer’s licence, the Board shall refuse to issue or
                  renew a licence if

                      (a) the applicant is not a breeder quota holder, an approved lessee
                          or a research permit holder;

                      (b) in the case of an individual, the applicant is not a Canadian
                          citizen, or a person admitted to Canada as a permanent resident;

                      (c) in the case of a corporation, the majority of the applicant’s
                          shares are not owned by Canadian citizens or persons admitted
                          to Canada as permanent residents.

                  (5) Where a licence is granted to an approved lessee, the Board shall not
                  renew the licence for any period beyond the term of the approved lease.

Suspension or     6(1) The Board may suspend a licence for any period it considers
cancellation of   appropriate or cancel a licence if the licensee
licence

                      (a) lacks, in the Board’s opinion,

                                (i) the experience, familiarity or understanding in respect of
                                    the activity authorized under the licence, or

                                (ii) the equipment or financial responsibility to properly
                                     engage in or continue to engage in the activity
                                     authorized under the licence,

                           or

                      (b) contravenes the Act, the Plan, the regulations or an order or
                          direction of the Council or the Board.

                  (2) Where a licence is suspended or cancelled under subsection (1), the
                  Board must notify the licensee of that suspension or cancellation.

                  (3) Where a licence is suspended or cancelled, the person whose licence
                  was suspended or cancelled shall, on receiving a notice of the suspension
                  or cancellation, immediately cease engaging in the activity authorized by
                  the licence.

                  (4) A person whose licence is suspended or cancelled may apply to the
                  Board for an order staying the suspension or cancellation pending the
                  determination of a review or an appeal, as the case may be, under Part 5
                  of the Act.

                  (5) In the case of a producer licence, the Board shall cancel the licence
                  if the producer ceases to be a quota holder, an approved lessee or
                  research permit holder.



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ALTA. REG. 280/97                           MARKETING OF AGRICULTURAL PRODUCTS


Authority of      7 A producer licence is authority for the licensee, in accordance with
producer
licence
                  this Regulation and with the quota allocated to the holder by the Board,
                  to engage in the production and marketing of hatching eggs in and from
                  the facility described on the licence.

Authority of      8(1) A hatchery licence is authority for the licensee to receive, set and
hatchery
licence
                  hatch hatching eggs in the hatchery for which the licence is granted.

                  (2) Unless the Board determines otherwise by resolution, no hatchery
                  licensee may buy hatching eggs unless those eggs were

                      (a) produced by a licensed producer, or

                      (b) imported in accordance with the allocation granted to Alberta
                          under a Canada Act.

                  (3) A hatchery licence is subject to the following terms:

                      (a) that the licensee sets only those hatching eggs marketed to the
                          licensee

                              (i) in accordance with this Regulation, or

                             (ii) in accordance with the terms of a Canada Act or any
                                  agreement under that Act;

                      (b) that the licensee apportion any increase in eggs set between
                          those eggs marketed to the licensee by Alberta producers and
                          those eggs marketed to the licensee under a Canada Act or
                          agreement thereunder so that the overall proportion is changed
                          by no more than 1.5%;

                      (c) that, in the event that a licensee increases the number of
                          hatching eggs that the licensee sets by more than 1.5% in a
                          calendar year, the licensee shall purchase the increased number
                          of hatching eggs from producers producing eggs under the
                          terms of quota granted under this Regulation if those hatching
                          eggs are available to be marketed to the hatchery.

Authority of      9 A pullet grower’s licence is authority for the licensee to engage in the
pullet grower’s   raising of breeder pullets at an approved pullet grower’s facility for the
licence
                  quota holder named.

Licence fees      10 A fee is not payable for an application for, or renewal of, a producer
                  licence, a hatchery licence or a pullet grower’s licence.




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ALTA. REG. 280/97                           MARKETING OF AGRICULTURAL PRODUCTS

Disposal of       11(1) A licence is not transferable.
licence
prohibited
                  (2) If a licence is purported to be transferred, that licence is cancelled
                  effective on the day that it is purported to be transferred.

Multiple          12(1) Where a person carries out more than one activity for which
licences          different licences are required under this Regulation, that person must
                  hold the different licences required for each of those activities.

                  (2) Notwithstanding subsection (1), a licensed producer does not require
                  a pullet grower’s licence to grow pullets for that producer’s quota at the
                  facility to which that quota is allocated.

Effect of         13 A licence issued by the Board
licence
                      (a) is a licence to engage in the activity stated in the licence;

                      (b) is not an approval or endorsement by the Board of the licence
                          holder;

                      (c) shall not be represented by the licence holder or any other
                          person as an approval or endorsement by the Board.


                                                  PART 2

                                                 QUOTAS
Must hold         14(1) A person shall not produce or market hatching eggs unless the
quota or permit   person has been granted

                      (a) breeder quota, or

                      (b) a research permit.

                  (2) Subject to this Regulation, breeder quota is authority for the quota
                  holder

                      (a) to raise and maintain in the facility in respect of which the quota
                          is allocated the number of breeder hens specified in the quota
                          for the period of time for which the quota is allocated, and

                      (b) to market the hatching eggs or broiler chicks produced by those
                          breeder hens.

                  (3) A breeder quota holder must not place more breeder chicks than the
                  total number consisting of

                      (a) the number of breeder hens maintained under the breeder quota,
                          and




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ALTA. REG. 280/97                          MARKETING OF AGRICULTURAL PRODUCTS

                     (b) the number of breeder chicks that are provided free of charge by
                         the supplier of the breeder chicks as an allowance for mortality.

Quota            15 When a breeder quota is allocated, the Board must issue a quota
certificate      certificate to the quota holder that specifies the following:

                     (a) the name of the quota holder;

                     (b) the facility in which the breeder quota may be produced;

                     (c) the amount of the breeder quota;

                     (d) the replacement cycle for the breeder quota.

Quota            16(1) Subject to subsections (2) and (3), breeder quota shall not be
allotment        allocated to a person unless that person owns and operates the facility in
                 which the breeder hens are to be maintained.

                 (2) In the case of a family farm to which quota has been allocated, any
                 member of the family who has an interest in the family farm may own
                 the facility.

                 (3) In the case of an incorporated family farm to which quota has been
                 allocated, any shareholder may own the facility.

                 (4) The Board shall not allocate more than one breeder quota for one
                 facility.

                 (5) Unless otherwise authorized under this Regulation,

                     (a) the breeder hens maintained under a breeder quota must only be
                         maintained at the facility for which quota is allocated, and

                     (b) any hatching eggs produced from those hens must only be
                         produced at and marketed from that facility.

Pullet growing   17(1) With the approval of the Board obtained in advance, the holder of
                 a breeder quota may, for the purpose of obtaining breeder hens for that
                 quota,

                     (a) raise breeder chicks and breeder pullets, or

                     (b) allow a licensed pullet grower to raise breeder chicks and
                         pullets,

                 at a facility other than the one to which breeder quota is allocated.

                 (2) Where the Board grants approval under subsection (1),

                     (a) eggs produced at that other facility shall not be marketed to a
                         hatchery, and

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ALTA. REG. 280/97                             MARKETING OF AGRICULTURAL PRODUCTS

                       (b) all breeder pullets produced from those eggs shall be removed
                           from that other facility to the facility specified in the quota
                           certificate before those pullets are 154 days old.

                   (3) Licensed pullet growers must provide any information as may be
                   required by the Board in relation to the following:

                       (a) the number of pullets raised;

                       (b) the quota holder for whom the pullets are raised;

                       (c) the age at which pullets are removed to the quota holder’s
                           facility.

                   (4) If, in the opinion of the Board, extenuating circumstances exist, the
                   Board may extend the time limit set out in subsection (2)(b).

Application list   18(1) The names of the applicants who made application for an
for quota          allocation of quota before April 1, 1995 must be maintained
                   chronologically in a register according to the date that the completed
                   application was received by the Board.

                   (2) The name of the applicant must be removed from the register

                       (a) on the request of the applicant;

                       (b) if the applicant is deceased;

                       (c) if the applicant acquires any breeder quota;

                       (d) if the applicant has been offered breeder quota and declined the
                           offer;

                       (e) if

                                (i) a written request to the applicant for confirmation of the
                                    application

                                    (A) has been mailed by single registered mail or similar
                                        means to the latest address of the applicant as
                                        shown on the register, and

                                    (B) has been mailed during June of 1998 or during a
                                        June that falls in a subsequent even numbered year,

                                   and

                                (ii) the applicant has failed to reply to the request within 90
                                     days from the day that the request was mailed to the
                                     applicant.




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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

Quota        19(1) When the Board considers that general marketing conditions
increases    warrant, the Board may increase the total provincial allocation
             permanently and the amount of that increase shall be allocated in
             accordance with this section.

             (2) The Board may by resolution establish a quota allocation fee for the
             purpose of an offer made under this section.

             (3) The Board shall send an offer in writing to each quota holder
             specifying the following:

                    (a) the quota allocation fee established by the Board;

                    (b) the earliest date or cycle when production of the increase may
                        commence;

                    (c) the maximum amount of breeder quota that the quota holder is
                        eligible to accept;

                    (d) the dates by which a quota holder who wishes to accept the
                        offer must

                           (i) confirm in writing to the Board that the offer is accepted,
                               and

                           (ii) pay the quota allocation fee to the Board.

             (4) For the purpose of subsection (3)(c),

                    (a) no amount of breeder quota shall be offered to a quota holder if
                        as a result that quota holder’s quota would exceed the quota
                        limit established under section 21;

                    (b) subject to clause (a), each quota holder shall be offered a
                        maximum increase based on what that quota holder’s pro rata
                        share of the total provincial allocation was before the increase
                        in breeder quota was offered.

             (5) The increase offered to a quota holder is effective only when the
             Board has confirmed in writing to the quota holder that the quota holder
             has accepted the offer and paid the quota allocation fee within the time
             referred to under subsection (3)(d).

             (6) Any amount of the increase that

                    (a) is not offered to a quota holder as a result of the operation of
                        subsection (4)(a),

                    (b) is not accepted by a quota holder within the time referred to
                        under subsection (3)(d)(i), or

                    (c) in respect of which the quota allocation fee is not paid within
                        the time referred to under subsection (3)(d)(ii),



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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

             shall not be allocated to the quota holder to whom it was offered, but
             instead shall be added to the quota bank.

             (7) A quota holder who receives an allocation of breeder quota under
             this section must commence production of the increase within 72 weeks
             from the date that the confirmation was sent to the producer under
             subsection (5).

             (8) Where any increase in breeder quota is not put into production as
             required under subsection (7),

                    (a) that increase is deemed to be cancelled, and

                    (b) the amount of that increase shall be added to the quota bank.

             (9) If an allocation is cancelled under subsection (8), the Board shall
             retain the quota allocation fee paid.

             (10) Where in the opinion of the Board any arrangement is designed to
             allow a quota holder to obtain multiple offers of quota under this section,
             the Board may limit the number of quota increases offered to that quota
             holder.

Quota bank   20(1) The quota bank shall be comprised of

                    (a) 3310 breeder hens, that being the amount of breeder quota in
                        the quota bank on the date that this Regulation came into force,
                        and

                    (b) any amount of breeder quota added to the quota bank under
                        sections 19(6) and (8) and subsection (9) of this section.

             (2) The Board may by resolution establish a quota allocation fee for the
             purpose of an offer under this section.

             (3) Within 90 days from the date referred to under section 19(3)(d), the
             Board shall make an offer of breeder quota from the quota bank in
             accordance with this section to applicants on the list established under
             section 18.

             (4) The Board may determine the number of offers to be made and the
             amount of breeder quota to be included in each offer in consultation with
             the licenced hatcheries.

             (5) The names of the applicants shall be taken from the list in the order
             of the register and offers shall be made in writing to each applicant so
             chosen specifying the following:

                    (a) the quota allocation fee established by the Board;

                    (b) the earliest date or cycle when production of the increase may
                        commence;



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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (c) the amount of breeder quota that the applicant is eligible to
                        accept;

                    (d) the dates by which a new applicant who wishes to accept the
                        offer must

                            (i) confirm in writing to the Board that the offer is accepted,
                                and

                           (ii) pay the quota allocation fee to the Board.

              (6) A new applicant who wishes to accept an offer must make
              application for a producer’s licence under section 4 and the Board must
              determine whether the applicant is eligible to receive a producer’s
              licence under section 5.

              (7) An offer to a new applicant is effective only when the Board has
              confirmed in writing that

                    (a) the applicant accepted the offer and paid the quota allocation fee
                        within the time limit referred to under subsection (5)(d), and

                    (b) the new applicant is eligible to receive a producer’s licence.

              (8) An applicant who receives an allocation of breeder quota under this
              section must commence production of the increase within 72 weeks from
              the date that the confirmation was sent to the applicant under subsection
              (7).

              (9) Where any breeder quota is not put into production as required under
              subsection (8),

                    (a) that breeder quota is deemed to be cancelled, and

                    (b) the amount of that breeder quota shall be added to the quota
                        bank.

              (10) If an allocation is cancelled under subsection (9), the Board shall
              retain the quota allocation fee paid.

              (11) Any offer of quota that is not accepted by an applicant shall then be
              offered in accordance with subsections (5) to (7) to the next applicant on
              the register, and the procedure shall be repeated until the amount of
              breeder quota available for allocation from the quota bank is exhausted.

              (12) If there is breeder quota in the quota bank and no applicant remains
              on the register, that quota shall be offered pro rata to breeder quota
              holders in accordance with the principles set forth in section 19.

Quota limit   21(1) The Board shall not approve

                    (a) an increase in quota,


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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) the transfer of a quota or the shares of a corporate quota holder,
                        or

                    (c) the lease of quota,

             if it would result in a quota holder holding a breeder quota in excess of
             5% of the total provincial allocation as determined from time to time.

             (2) Notwithstanding subsection (1)(b), if a breeder quota that was
             allocated before the date on which this Regulation came into force
             exceeds the limit set out in subsection (1) the Board may cancel and
             reallocate that breeder quota under section 22 if the person to whom it is
             to be reallocated does not hold any breeder quota.

             (3) For the purposes of this section, a person is deemed to hold breeder
             quota if that person holds any shares in a corporation that is a breeder
             quota holder except where,

                    (a) in the case of shares of a distributing corporation as defined
                        under the Business Corporations Act, the person owns 10% or
                        less of the voting shares of that corporation, or

                    (b) those shares are in a co-operative that has more than 200
                        members.

             (4) If a quota holder is denied an allocation of quota under subsection
             (1)(a), that quota holder’s marketing authorization must not be reduced
             below the marketing allocation that is in effect on the day that the quota
             holder is denied that authorization of quota.

Quota        22(1) Breeder quota must not be transferred except in accordance with
transfers
             this section.

             (2) Where breeder quota is purported to be transferred in any manner
             other than as permitted under this section that quota is cancelled effective
             on the beginning of the day that the quota is purported to be transferred.

             (3) A transfer of any of the shares of a corporation that is a breeder quota
             holder is deemed to be a transfer of the quota, unless

                    (a) the shares are transferred between family members in an
                        incorporated family farm, or

                    (b) the shares are transferred as part of a bona fide employee benefit
                        program under which no more than 2% of the shares of the
                        corporation are transferred to an employee in a year and the
                        employee cannot obtain more than 10% of the outstanding
                        shares of the corporation.

             (4) A breeder quota holder who wishes to transfer breeder quota, with
             or without facilities must apply in writing to the Board for the
             cancellation of that quota and the reallocation of that quota to another
             person.

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ALTA. REG. 280/97                         MARKETING OF AGRICULTURAL PRODUCTS

                 (5) An application under subsection (4) must be made to the Board at
                 least 30 days before the day on which the proposed transfer is to take
                 effect.

                 (6) The Board may cancel and reallocate quota if it is satisfied that

                     (a) the proposed transferee will qualify for a licence to operate as
                         a producer under this Regulation,

                     (b) the amount of quota proposed to be cancelled and reallocated is
                         an appropriate size, taking into account the requirements of the
                         licenced hatchery that will set the hatchery eggs produced, and

                     (c) the quota limit established under section 21 is not exceeded.

                 (7) For the purposes of this section, a person is deemed to hold breeder
                 quota if that person holds any shares in a corporation that is a quota
                 holder except where,

                     (a) in the case of shares of a distributing corporation as defined
                         under the Business Corporations Act, the person owns 10% or
                         less of the voting shares of that corporation, or

                     (b) those shares are in a co-operative that has more than 200
                         members.

Transfer fee     23(1) A person proposing to transfer quota must pay a fee of $100 to the
                 Board.

                 (2) The Board may waive all or any portion of the fee prescribed under
                 this section if there is not any consideration involved in respect of the
                 transfer and the transfer is between the members of the same family.

Lease of quota   24(1) The Board may allow a quota holder to lease breeder quota to

                     (a) a quota holder, or

                     (b) another person who is approved by the Board as a lessee of
                         breeder quota.

                 (2) An application to lease quota must

                     (a) be made in writing to the Board by the breeder quota holder;

                     (b) be endorsed by the proposed lessee;

                     (c) include any information that the Board may require;

                     (d) include the lease application fee that is set by the Board.




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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

             (3) If an authorization to lease is granted, the Board may make the
             authorization subject to those terms and conditions the Board considers
             appropriate in the circumstances.

             (4) Where an authorization to lease quota is granted,

                    (a) the lessee shall have the rights of and shall comply with the
                        obligations of the breeder quota holder set out in the Plan and
                        this Regulation, and

                    (b) the breeder quota holder shall not exercise any rights of a
                        breeder quota holder during the term of the lease.

             (5) The breeder quota holder and lessee of that breeder quota are jointly
             and severally liable for

                    (a) all service charges assessed under this Regulation,

                    (b) all levies assessed under this Regulation, and

                    (c) any judgment obtained in respect of those service charges or
                        levies.

             (6) The Board shall not allow a lease of quota from a breeder quota
             holder to a lessee if

                    (a) the quota holder has outstanding service charges or levies
                        payable to the Board,

                    (b) the proposed lessee would hold more than 5% of the total
                        provincial allocation either in the form of breeder quota or
                        leased breeder quota, or both, or

                    (c) the lease is for a term that exceeds 3 replacement cycles.

             (7) The Board may rescind its approval of a lease if either the breeder
             quota holder or the lessee fail to comply with the Plan, this Regulation
             or a term or condition of the approval imposed by the Board.

             (8) When an approval is rescinded or a lease terminates, the breeder
             quota holder by virtue of the recession or termination takes back the
             breeder quota together with any increases that may have been allocated
             in respect of that quota and subject to any liabilities that may have been
             imposed in respect of that quota under the Act or this Regulation.

Research     25(1) The Board may grant a research permit to a person if, in the
permit       opinion of the Board,

                    (a) the hatching eggs are to be used for research purposes,

                    (b) there will not be any significant detrimental effect on breeder
                        quota holders,



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ALTA. REG. 280/97                       MARKETING OF AGRICULTURAL PRODUCTS

                    (c) there will be potential advantages to the hatching egg industry
                        from the proposed research, and

                    (d) results of the research will be available to the Board and all
                        producers.

              (2) The Board may impose conditions in respect of the research permit
              to ensure compliance with subsection (1).

              (3) A research permit holder may, with the written permission of the
              Board, market the hatching eggs, breeder chicks, breeder pullets, breeder
              hens, breeder cockerels and broiler chicks maintained or produced under
              the research permit.

              (4) The Board may impose conditions in respect of marketings allowed
              under subsection (3).

              (5) The Board may revoke a research permit if the research permit
              holder fails to comply with any condition imposed by the Board under
              subsection (2) or (4).

              (6) A research permit holder is not eligible to receive further breeder
              quota under section 19.

              (7) Notwithstanding subsection (6), if a research permit holder is also a
              breeder quota holder, that quota holder is eligible to receive under
              section 19 further quota increases solely in respect of that breeder quota.

              (8) A research permit may be granted for a period of not more than 69
              weeks.

              (9) A person who holds or has held a research permit may apply from
              time to time for a further research permit in accordance with this section.

              (10) The Board shall collect all applicable service charges and reimburse
              the holder of the research permit in an amount equal to the Board’s
              portion of the service charge.

Financial     26(1) With the written consent of a quota holder, a secured lender may
interest in
production
              register a financial interest with the Board in the manner and form that
facilities    the Board prescribes.

              (2) When a financial interest is registered under subsection (1), the
              Board must notify the affected quota holder of the registration.

              (3) If a financial interest is registered under subsection (1), the Board
              must notify the secured lender of any application to transfer breeder
              quota that is allocated to the facility to which the registration applies.

              (4) Unless the secured lender who has registered a financial interest has
              given written consent to the transfer, the Board shall not approve the
              transfer of breeder quota that is allocated to the facility to which the
              registration applies.

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ALTA. REG. 280/97                          MARKETING OF AGRICULTURAL PRODUCTS

                 (5) A quota holder against whom a financial interest is registered with
                 the Board may apply to the Board to have the financial interest
                 de-registered with the Board.

                 (6) Where an application is made under subsection (5), the Board may
                 de-register the financial interest with the Board if

                     (a) the secured lender agrees in writing, or

                     (b) the Board is satisfied that the secured lender no longer has any
                         interest in the facility.

                 (7) A financial interest shall not be de-registered with the Board unless
                 the secured lender

                     (a) has been given notice of the application made under subsection
                         (5) at least 14 days before the day that the Board is to consider
                         the application, and

                     (b) has been provided with an opportunity to make submissions to
                         the Board.

Enforcement of   27(1) Where a secured lender enforces the secured lender’s security and
financial
interest in
                 becomes the legal or equitable owner of the facility of a quota holder of
production       breeder quota, the Board may do one or more of the following:
facilities
                     (a) allow the secured lender to produce and market hatching eggs
                         under the breeder quota allocated to the facility for a period of
                         no longer than 2 years, during which time the secured lender
                         must endeavour to transfer the quota to another person under
                         section 22;

                     (b) set aside the breeder quota allocated to that facility for a period
                         of no longer than 2 years;

                     (c) allocate all or any portion of the breeder quota to a person who
                         purchases the facility from the secured lender if the Board is
                         satisfied that the purchaser is or intends to become a quota
                         holder and a licensed producer;

                     (d) allocate all or any portion of the breeder quota to the secured
                         lender if the secured lender applies to become the quota holder
                         and is approved by the Board.

                 (2) If a breeder quota has not been reallocated within the time period set
                 out in subsection (1)(a) or (b), the Board may

                     (a) cancel the breeder quota, or

                     (b) on written application by the secured lender, extend that time
                         period referred to in subsection 1(a) or (b).




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ALTA. REG. 280/97                          MARKETING OF AGRICULTURAL PRODUCTS

Reduction in or   28(1) The Board may reduce or cancel breeder quota held by a quota
loss of quota     holder where the quota holder

                      (a) fails to observe, perform or carry out the provisions of the Act,
                          the regulations or any order of the Council or the Board, or

                      (b) has not used or has voluntarily given up all or any portion of the
                          breeder quota.

                  (2) If breeder quota allocated under this Regulation is not put into
                  production within 12 months from the day that the quota is allocated, the
                  breeder quota is revoked at the conclusion of that 12-month period,
                  unless the Board otherwise directs.

                  (3) Subject to section 19(7), if a quota holder fails to market hatching
                  eggs for a period of 12 consecutive months, the breeder quota held by
                  that quota holder is revoked at the conclusion of that 12-month period,
                  unless the Board otherwise directs.

                  (4) Breeder quota is revoked upon the quota holder’s producer licence
                  being suspended or revoked.

                  (5) If, without prior approval of the Board, there is a change in the
                  ownership of the shares of a corporation that holds breeder quota, the
                  Board may reduce or cancel the breeder quota except where,

                      (a) in the case of shares of a distributing corporation as defined
                          under the Business Corporations Act the person owns 10% or
                          less of the voting shares of that corporation, or

                      (b) those shares are in a co-operative that has more than 200
                          members.

                  (6) The Board may revoke any quota that is not filled in a replacement
                  cycle, unless the Board is satisfied that extenuating circumstances
                  prevent the producer from filling the quota.

Reversion of      29(1) Any quota that is revoked or cancelled reverts to the Board.
quota
                  (2) The Board may deal with any quota that reverts to the Board in a
                  manner that, in the opinion of the Board, will best protect the industry,
                  including, without limiting the generality of the foregoing,

                      (a) leasing the quota or any portion of it to a quota holder,

                      (b) sharing the quota or any portion of it pro rata among existing
                          quota holders, or

                      (c) placing the quota or any portion of it in the quota bank.




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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

                                               PART 3

                                       SERVICE CHARGES
Service      30(1) A licensed producer must pay a service charge to the Board of
charges      $0.0051 for each hatching egg marketed by the licensed producer.

             (2) The service charge payable under subsection (1) must be deducted
             by the licensed hatchery from the proceeds payable to the producer for
             each egg set by the hatchery and paid to the Board within 30 days from
             the day that the eggs were set.

             (3) Every licensed hatchery must pay to the Board a service charge of
             $0.0051 for each hatching egg set by the licensed hatchery that has not
             been received from a licensed producer.

             (4) The service charge paid under subsection (3) must be used for
             research purposes by the Board.

             (5) The Board may collect by suit in court

                    (a) from the licensed producer, the service charge payable under
                        subsection (1);

                    (b) from the licensed hatchery, the service charge payable under
                        subsection (3);

                    (c) from the licensed hatchery, any service charges deducted by the
                        hatchery under subsection (1) and not forwarded to the Board;

                    (d) from the licensed hatchery, a sum in an amount equal to the
                        amount of the service charge required to be deducted under
                        subsection (1) to the extent that the hatchery failed to make the
                        required deduction.

             (6) A producer and hatchery are jointly and severally liable to the Board
             for the amount of any service charges not deducted from the amount
             payable to the producer.

Weekly       31(1) Unless otherwise approved in advance by the Board, every
statements   hatchery must prepare a statement at the end of each week showing the
             following:

                    (a) the name, address and registration number of each licensed
                        producer from whom it received hatching eggs in that week;

                    (b) the number of hatching eggs received;

                    (c) the number of hatching eggs set;

                    (d) the amount of the service charges deducted for the account of
                        the Board for each licensed producer in that week;


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ALTA. REG. 280/97                          MARKETING OF AGRICULTURAL PRODUCTS

                    (e) the amount of service charges payable in respect of hatching
                        eggs set that were not received from licensed producers;

                    (f) the number of eggs set that were transferred from another
                        hatchery in Alberta;

                    (g) the number of eggs set that were acquired from outside Alberta;

                    (h) any other information as may be required by the Board.

             (2) The statement prepared under subsection (1) and the service charges
             so collected or otherwise in the possession of the hatchery must be
             forwarded to the Board in time to reach the head office of the Board not
             later than Wednesday of the week next following.

Monthly      32 Unless otherwise approved in advance by the Board, every hatchery
statements   must prepare a statement at the end of each month showing the
             following:

                    (a) the number of hatching eggs received from outside Alberta in
                        that month;

                    (b) the number of hatching eggs received from outside Alberta in
                        that month that were set by the hatchery;

                    (c) the number of hatching eggs shipped to points outside Alberta
                        during that month;

                    (d) the number of hatching eggs on hand at the end of the month,
                        not including hatching eggs in incubators.

Records      33(1) The Board may require every person who is engaged in
             production or marketing of the regulated product to furnish information
             relating to that production or marketing of the regulated product.

             (2) Every person who is engaged in the production or marketing of the
             regulated product must keep a complete and accurate record of all
             matters relating to the production and marketing of the regulated product
             that apply to that person’s operation and, without limiting the generality
             of the foregoing, must include the following on a flock by flock basis:

                    (a) placement records;

                    (b) invoices from hatcheries for breeder hens;

                    (c) transportation records;

                    (d) bills of lading;

                    (e) licensed hatchery receiving records;




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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (f) records of payments to producers including vouchers or
                        statements;

                    (g) licensed hatchery reports and records including those relating to
                        hatchability, chick quality and intra-provincial and
                        inter-provincial trade;

                    (h) flock production records.

              (3) All records maintained in accordance with this section must be
              available to the Board or any representative of the Board during ordinary
              business hours.


                                                 PART 4

                                           PRODUCTION
Notice of     34(1) The Board may, by notice in writing to a licensed producer, vary
production    from time to time the production of that producer as warranted by a
variation
              change in the general marketing conditions and thereby require that
              producer to lower or increase the number of hatching eggs that may be
              marketed by the producer.

              (2) Any changes in production made by the Board pursuant to this
              section may be stated in terms of one or more of the following:

                    (a) the age at which breeder hens must be marketed;

                    (b) a percentage of quota;

                    (c) a requirement that surplus hatching eggs be disposed of by a
                        means other than hatching in a manner determined by the
                        Board;

                    (d) a delay or advancement of flock placements as determined by
                        a formula established by the Board.

              (3) Where the Board considers it appropriate, the Board may provide for
              compensation to producers for any delay or advancement of flock
              placements referred to in subsection (2)(d).

Change in     35(1) When the Board wishes to vary the production of hatching eggs
utilization
factor
              to accommodate an anticipated change in the demand for hatching eggs,
              the Board may increase or reduce the marketing allocation by changing
              the allowed percentage of utilization for the breeder quota.

              (2) Where the Board changes the allowed percentage of utilization of a
              breeder quota,

                    (a) the Board must make the change so that the change begins with
                        a specified production cycle, and


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ALTA. REG. 280/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) any change made in respect of allowed percentage of utilization
                        continues until it is once again changed by the Board.

             (3) Where the Board establishes a marketing authorization under this
             section, a licensed producer shall not produce or market hatchery eggs
             except in accordance with that marketing authorization.

Cycle        36(1) In order for the Board
adjustment
                    (a) to meet, as closely as possible, the market requirements for
                        hatching eggs in Alberta, and

                    (b) to produce the appropriate number of hatching eggs to meet the
                        national allocation apportioned to Alberta by the national
                        agency,

             the Board may establish the minimum flock life.

             (2) Subject to subsections (3) and (4), a licensed hatchery that has
             contracted with a producer to receive hatching eggs must continue to
             accept hatching eggs from that producer until the minimum flock life of
             the flock from which they are produced is reached.

             (3) A licensed hatchery may reduce the minimum flock life but may do
             so by no more than 7 days.

             (4) If a hatchery directs the slaughter of a contracted flock earlier than
             otherwise provided for, the hatchery must pay compensation to the
             licensed producer under a formula established from time to time by the
             Board.

             (5) A licensed hatchery is not liable to pay compensation to a licensed
             producer when flock life is reduced by the Board below the minimum
             flock life if the Board orders early disposal of a flock for any of the
             following reasons:

                    (a) contagious disease;

                    (b) inhumane treatment;

                    (c) the interest of the public or the industry.

             (6) A hatchery must forward to the Board the hatchery’s records or
             copies of records for each breeder flock shipped by the hatchery for
             processing indicating the following:

                    (a) the number of birds slaughtered;

                    (b) the date of slaughter;

                    (c) the owner of the birds;

                    (d) flock placement date and flock identification, if possible.

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ALTA. REG. 280/97                         MARKETING OF AGRICULTURAL PRODUCTS

             (7) Records or copies of those records referred to in subsection (6) that
             are to be forwarded to the Board under this section must be forwarded to
             the Board within 7 days from the day of the processing of the flock.

Placement    37(1) A licensed producer must place breeder chicks in accordance with
             the replacement cycle established for that producer by the Board.

             (2) A licensed producer may apply to the Board to amend that
             producer’s placement so that all chicks are not placed at the same time,
             but are placed in intervals acceptable to the Board.

             (3) In the event the Board amends the date of placement for a producer,
             the Board may also amend that producer’s marketing authorization so
             that on an annual basis that producer can produce and market the same
             number of hatching eggs as if the cycle had not been amended.

Over-        38(1) If a holder of breeder quota places more breeder hens or chicks
production   than authorized under that person’s quota, the Board may, without
             providing any compensation, order that the number of hens exceeding
             the quota be removed.

             (2) Where a person to whom an order is made under subsection (1) does
             not remove the breeder hens in accordance with the order, the Board may
             remove the breeder hens.


                                                 PART 5

                                               GENERAL
Notices      39(1) When a notice is required to be given under this Regulation,

                    (a) in the case of a notice to be given by the Board, the Board must
                        give the notice in writing and serve it on the person to whom it
                        is directed

                             (i) by personal service, or

                             (ii) by double registered mail or certified mail addressed to
                                  that person at the mailing address for that person
                                  recorded in the records of the Board,

                       and

                    (b) in the case of a notice to be given to the Board, the person
                        giving the notice must give the notice in writing to the Board by
                        mailing the notice to the head office of the Board.

             (2) Notwithstanding subsection (1), where

                    (a) a person to whom the Board is to give a notice agrees to be
                        provided with the notice by a means other than a means referred

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ALTA. REG. 280/97                           MARKETING OF AGRICULTURAL PRODUCTS

                           to in subsection (1)(a), that person may be provided with that
                           notice by that other means, or

                      (b) the Board agrees to be provided with a notice by a means other
                          than the means referred to in subsection (1)(b), the Board may
                          be provided with that notice by that other means.

Information       40 If any change occurs in the information provided to the Board by a
change            licensed producer, pullet grower or hatchery, that person must notify the
                  Board of the change forthwith after the change occurs.

Prohibitions re   41(1) A person shall not sell, offer for sale or deliver hatching eggs
sale of
hatching eggs
                  unless that person is licensed under this Regulation.

                  (2) It is a condition of the licence referred to in subsection (1) that the
                  licensed person shall not sell, offer for sale or deliver hatching eggs to
                  any person other than a licensed hatchery or to the order of a licensed
                  hatchery unless that person is specifically authorized to do so by the
                  Board.

                  (3) Notwithstanding subsection (1), a licensed producer may sell or offer
                  for sale the hatching eggs produced by that person from that person’s
                  farm home, roadside stand adjacent to that person’s production facilities
                  or from a stall in a public market.

Prohibition re    42 It is a condition of a hatchery’s licence that the licensed hatchery
hatchery          shall not buy, accept or receive the hatching eggs from any person other
                  than

                      (a) a licensed producer or a licensed hatchery, or

                      (b) under the terms of an agreement made under a Canada Act.

Prohibition re    43 It is a condition of a producer’s licence and a hatchery’s licence that
minimum price
                  the licensed producer or licensed hatchery, as the case may be, shall not
                  sell, buy or offer to sell or buy the hatching eggs at a price that is less
                  than the minimum price prescribed by the Board or fixed by an arbitrator
                  pursuant to the Hatching Egg Producers Negotiation and Arbitration
                  Regulation.

Prohibition re    44 It is a condition of a hatchery’s licence that the licensed hatchery
licensed
producer
                  shall not, unless specifically ordered by the Board to do so, accept or
                  market hatching eggs produced by any producer who does not hold a
                  subsisting producer’s licence.




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ALTA. REG. 281/97                          MARKETING OF AGRICULTURAL PRODUCTS

Prohibition re   45 It is a condition of a producer’s licence that the licensed producer
marketing        shall not, unless otherwise authorized in writing by the Board or under
                 a lease referred to in section 24, market hatching eggs unless those eggs
                 are produced in the facility in respect of which that producer’s quota was
                 allocated.


                                        Transitional Provision
Transitional     46    Quota issued under the Broiler Hatching Eggs Regulation
                 (AR 266/82) is continued as breeder quota under this Regulation.


                                                  Repeal
Repeal           47 The Broiler Hatching Eggs Regulation (Alta. Reg. 266/82) is
                 repealed.


                                                  Expiry
Expiry           48 For the purpose of ensuring that this Regulation is reviewed for
                 ongoing relevancy and necessity, with the option that it may be repassed
                 in its present or an amended form following a review, this Regulation
                 expires on December 31, 2002.


                                ------------------------------

                               Alberta Regulation 281/97

                       Marketing of Agricultural Products Act

                 HATCHING EGG PRODUCERS NEGOTIATION AND
                         ARBITRATION REGULATION

                                                                 Filed: December 19, 1997

Made by the Alberta Agricultural Products Marketing Council pursuant to section 33 of
the Marketing of Agricultural Products Act.

                                            Table of Contents

                 Definitions                                                             1

                                                 Part 1
                                               Negotiations

                 Broiler Hatching Eggs Negotiation Agency                                2
                 Time period for appointing members                                      3
                 Powers of agency                                                        4
                 Notice                                                                  5
                 Meeting                                                                 6
                 Agreement                                                               7

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ALTA. REG. 281/97                        MARKETING OF AGRICULTURAL PRODUCTS

              Provisions deemed to be included                                        8

                                                Part 2
                                              Arbitration

              Matters referred to arbitration                                         9
              Appointment of arbitration board                                       10
              Administrative services                                                11
              To act with reasonable dispatch                                        12
              Direction from arbitration board                                       13
              Whether matters can be considered                                      14
              Direction to parties                                                   15
              Application to arbitration board                                       16
              Production of documents, etc.                                          17
              Service                                                                18
              Change of address for service                                          19
              Notification of hearing                                                20
              Hearing to be held                                                     21
              Who may attend                                                         22
              Representative of party                                                23
              Adjournments                                                           24
              Examination under oath                                                 25
              Affidavits                                                             26
              Conduct of hearing                                                     27
              Failure to attend                                                      28
              Inspection                                                             29
              Arbitration board’s own knowledge                                      30
              Settlement of some items                                               31
              Determination to be in writing                                         32
              Settlement of dispute                                                  33
              Determination is final                                                 34
              Costs                                                                  35
              Termination, etc. of proceedings                                       36
              Late settlement                                                        37
              Removal of member                                                      38
              Arbitration Act to apply                                               39
              Expiry                                                                 40

Definitions   1(1) In this Regulation,

                    (a) “Act” means the Marketing of Agricultural Products Act;

                    (b) “arbitration board” means the arbitration board appointed by the
                        Council under Part 2;

                    (c) “Association” means the Alberta Poultry Hatchery Association;

                    (d) “Board” means the Alberta Hatching Egg Producers referred to
                        in section 6 of the Plan;

                    (e) “negotiating agency” means the Broiler Hatching Eggs
                        Negotiating Agency established under Part 1;



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ALTA. REG. 281/97                          MARKETING OF AGRICULTURAL PRODUCTS

                      (f) “party” means the Board or the Association, as the case may be;

                      (g) “Plan” means the Alberta Hatching Egg Plan Regulation
                          (AR 283/96);

                      (h) “producer” means a producer as defined in the Plan;

                      (i) “regulated product” means the regulated product as defined in
                          the Plan.

                  (2) Except where otherwise provided in this Regulation, words not
                  defined in this Regulation but defined in the Plan have the same meaning
                  when used in this Regulation.


                                                 PART 1

                                            NEGOTIATIONS
Broiler           2(1) The Broiler Hatching Eggs Negotiating Agency established under
Hatching Eggs
Negotiating
                  the Alberta Hatching Egg Marketing Plan Implementation Regulation
Agency            (AR 256/82) is continued.

                  (2) The negotiating agency shall be composed of at least 4 members as
                  follows:

                      (a) 2 persons appointed by the Board;

                      (b) 2 persons appointed by the Association.

                  (3) The members of the negotiating agency appointed under subsection
                  (2) may by unanimous consent appoint a 5th person as member and chair
                  of the agency.

                  (4) A quorum of the negotiating agency is the 4 members appointed
                  under subsection (2).

Time period for   3(1) Within 60 days of the coming into force of this Regulation, or a
appointing        further period that may be prescribed by the Council, the Board and the
members
                  Association shall each appoint 2 members to the negotiating agency and
                  notify the Council of the appointment and also notify the Board or the
                  Association, as the case may be.

                  (2) An appointment under subsection (1) lasts until that member’s
                  appointment is terminated by the Association or Board that appointed
                  that member.

Powers of         4 The members of the negotiating agency have the power to conclude
agency
                  an agreement on the following:

                      (a) a minimum price for the regulated product or for any class,
                          variety, grade or size of the regulated product;

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ALTA. REG. 281/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) terms, conditions and forms of agreement relating to the
                        producing or marketing of the regulated product;

                    (c) any charges, costs or expenses relating to the production of the
                        regulated product.

Notice       5(1) Subject to the terms of any agreement between the Board and the
             Association, either party may give notice in writing to the other

                    (a) stating that it wishes to commence negotiations, and

                    (b) setting out the matters it wishes to negotiate.

             (2) On receipt of a notice under subsection (1), the party receiving the
             notice shall by notice in writing to the other state

                    (a) whether or not the items proposed for negotiation are acceptable
                        to it, and

                    (b) any other matters that it wishes to negotiate.

Meeting      6(1) Following an exchange of notices described in section 5, the
             negotiating agency shall meet and endeavour to effect an agreement.

             (2) The matters in respect of which the negotiating agency has
             jurisdiction to adopt or settle by agreement are

                    (a) those items agreed on by the parties as negotiable items under
                        section 5, and

                    (b) any other items both parties subsequently agree on as being
                        negotiable items.

             (3) Nothing in this section permits the negotiating agency authority to
             adopt or settle by agreement a matter not described in section 4.

Agreement    7(1) An agreement concluded by the negotiating agency shall be in
             writing and signed by each of the members of the agency, and by the
             chair, if any.

             (2) Every agreement concluded by the negotiating agency shall contain
             a method for the settlement of differences arising

                    (a) as to the interpretation, application or operation of the
                        agreement,

                    (b) with respect to a contravention or alleged contravention of the
                        agreement, and

                    (c) as to whether a difference described in clause (a) or (b) can be
                        the subject of arbitration

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ALTA. REG. 281/97                         MARKETING OF AGRICULTURAL PRODUCTS

               between the parties to or persons bound by, the agreement.

               (3) An agreement concluded by the negotiating agency is binding
               on

                    (a) the Board and the Association,

                    (b) every registered producer, and

                    (c) every hatchery that purchases the regulated product.

Provisions     8 If an agreement concluded by the negotiating agency does not contain
deemed to be   the provisions required under section 7(2), the agreement is deemed to
included
               contain the following provisions:

                    (a) if a difference arises as to the interpretation, application,
                        operation or contravention of this agreement or as to whether
                        that difference can be the subject of arbitration, the parties agree
                        to meet and endeavour to resolve the difference;

                    (b) if the parties are unable to resolve a difference described in
                        clause (a), either party may notify the other in writing of its
                        desire to submit the difference to arbitration;

                    (c) the notice referred to in clause (b) shall

                            (i) contain a statement of the difference, and

                           (ii) specify the name of a person, or a list of names of
                                persons from which the party will choose a person, that
                                the party is willing to accept as the single arbitrator;

                    (d) on receipt of a notice referred to in clause (b), the party
                        receiving the notice,

                            (i) if it accepts the person or one of the persons suggested
                                to act as a single arbitrator, shall within 7 days, so notify
                                the other party and the difference referred to in clause (a)
                                shall be submitted to the arbitrator, or

                           (ii) if it does not accept any of the persons suggested to act
                                as a single arbitrator, shall within 7 days, so notify the
                                other party and send the name of a person, or a list of
                                names of persons from which there is a person, that it is
                                willing to accept as the single arbitrator;

                    (e) if the parties are unable to agree on a person to act as a single
                        arbitrator, either party may request the Council in writing to
                        appoint a single arbitrator;

                    (f) the single arbitrator agreed to, or appointed under clause (e),
                        may during the arbitration hold hearings in the absence of any



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ALTA. REG. 281/97                           MARKETING OF AGRICULTURAL PRODUCTS

                          party or person who, after notice, fails to attend or fails to obtain
                          an adjournment;

                     (g) the single arbitrator shall inquire into the difference described
                         in clause (a) and make a determination in writing;

                     (h) the determination under clause (g) is final and binding on the
                         parties and on every person affected by it;

                      (i) the parties agree to share equally the expenses of the single
                          arbitrator;

                      (j) the single arbitrator may not alter or amend the agreement.


                                                  PART 2

                                              ARBITRATION
Matters          9(1) If the members of the negotiating agency unanimously agree to
referred to
arbitration
                 refer the unconcluded agreement or specific items in dispute to
                 arbitration, the negotiating agency shall notify the Council and then
                 those matters shall be referred to an arbitration board in accordance with
                 this Part.

                 (2) If the members of the negotiating agency do not unanimously agree
                 under subsection (1), either the Board or the Association may notify the
                 other in writing of its desire to submit the unconcluded agreement, or
                 specific items in dispute, to arbitration and, on so notifying, shall notify
                 the Council.

                 (3) The notice referred to in subsection (2) shall contain a statement of
                 the matters proposed for arbitration.

Appointment of   10(1) A copy of the notice referred to in section 9(2) sent to the Council
arbitration
board
                 shall include a request for the appointment of a one- or 3-person
                 arbitration board and, if a 3-person arbitration board is proposed, the
                 name of its nominee to the arbitration board.

                 (2) On receipt of a notice under section 9(2), the party receiving the
                 notice shall

                     (a) notify the other, either that it accepts the matters proposed for
                         arbitration or what matters it proposes, and

                     (b) notify the Council that it accepts a one-person arbitration board
                         or, if a 3-person board is proposed, the name of its nominee to
                         the arbitration board.

                 (3) On receipt of a notice described in subsections (1) and (2), the
                 Council shall appoint persons to an arbitration board as follows:




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ALTA. REG. 281/97                          MARKETING OF AGRICULTURAL PRODUCTS

                     (a) one person, if both parties agree to a one-person arbitration
                         board;

                     (b) 3 persons, one nominated by each of the parties and the chair
                         appointed by the Council, if either of the parties wishes to have
                         a 3-person arbitration board.

                 (4) On appointing an arbitration board, the Council shall forward to the
                 arbitration board

                     (a) copies of the notices received by it from the parties, and

                     (b) a copy of this Regulation.

                 (5) When an arbitration board is appointed, each party shall send to the
                 other party and the arbitration board its address for service.

Administrative   11 In any arbitration under this Regulation, the arbitration board may
services         make use of the available administrative services of the Council.

To act with      12 An arbitration board shall use all reasonable dispatch in conducting
reasonable       hearings and making a determination on the unconcluded agreement or
dispatch
                 the specific items in dispute, as the case may be.

Direction from   13(1) Any direction from the arbitration board to the parties shall be in
arbitration
board
                 writing or if given orally shall be confirmed in writing by the arbitration
                 board within 7 days from the day of the direction’s being given orally.

                 (2) The written direction shall be served in accordance with section 18.

Whether          14(1) The arbitration board shall consider whether the matters proposed
matters can be   for arbitration are matters that could be the subject of an agreement under
considered
                 section 4.

                 (2) If, after hearing any representation from the parties, the arbitration
                 board concludes that any matters proposed for arbitration cannot be the
                 subject of an agreement under section 4, the board shall not deal with
                 those matters.

Direction to     15 The arbitration board shall, with or without preliminary hearings,
parties          direct the parties as to how the arbitration is to be conducted.

Application to   16(1) A party may apply in writing to the arbitration board on any
arbitration      subject relating to matters referred to in section 9(2).
board

                 (2) A party, on receipt of a copy of an application described in
                 subsection (1), may within 7 days make an objection in writing to the
                 arbitration board.

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ALTA. REG. 281/97                           MARKETING OF AGRICULTURAL PRODUCTS

                  (3) On receipt of an application or objection, the arbitration board may,
                  with or without holding an oral hearing, give directions that it considers
                  appropriate.

Production of     17 The arbitration board may direct the parties to produce to it and to
documents,
etc.
                  each other documents, correspondence, books and records in their
                  possession or power that, in the opinion of the arbitration board, are
                  relevant to the dispute.

Service           18(1)A notice, application, direction or communication in an arbitration
                  under this Regulation is deemed to have been properly served if it is sent
                  by post or electronic means or delivered by hand to the address given by
                  the party as that party’s address for service.

                  (2) Notwithstanding subsection (1), if any party to whom a notice,
                  application, direction or communication must be sent for the purpose of
                  this Regulation cannot be found or if for any reason service cannot be
                  readily effected in accordance with this Regulation, the arbitration board
                  may dispense with service or may grant an order of substitutional service
                  by a method that the arbitration board considers appropriate.

                  (3) A party who sends a written notice, application, objection or
                  communication to the arbitration board shall forthwith serve a copy of
                  it on the other party and notify the arbitration board that the copy has
                  been served.

Change of         19 A party that changes its address for service shall give notice in
address for
service
                  writing to the arbitration board and the other party of the new address.

Notification of   20 If the arbitration board orders that a hearing be held, it shall notify
hearing
                  the parties in writing of the date, time and place of the hearing.

Hearing to be     21 Subject to any adjournments that the arbitration board considers
held
                  reasonable, the hearing shall be held daily until concluded.

Who may           22 The only persons who may be present at the hearing are the
attend
                  arbitration board, the recording secretary, the parties, their
                  representatives, the witnesses and the officers of the Council, unless the
                  arbitration board, after consulting with the parties, orders otherwise.

Representa-       23(1) Unless otherwise agreed to by the parties and approved of by the
tive of party
                  arbitration board, any party may be represented at any stage of the
                  proceedings by a representative, including legal counsel, if notice of the
                  intended representation is given in writing to the arbitration board and to
                  the other party in sufficient time for each to be able to arrange to be
                  similarly represented.


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ALTA. REG. 281/97                        MARKETING OF AGRICULTURAL PRODUCTS

               (2) If a party is represented in accordance with subsection (1), the party
               shall instruct its representative, and thereafter the party itself may only
               participate in the proceedings as a witness.

               (3) The appearance of a person as a representative does not prevent that
               person’s appearing as a witness in the same proceeding.

Adjournments   24 The arbitration board may adjourn the hearing as it considers
               appropriate

                    (a) if a party has a representative and notice in accordance with
                        section 23(1) has not been given to the other party, or

                    (b) for any other reason it considers sufficient.

Examination    25 Unless otherwise agreed to by the parties, the arbitration board shall
under oath
               require witnesses to be examined on oath or affirmation.

Affidavits     26 The arbitration board may direct the terms and conditions under
               which evidence may be given by affidavit.

Conduct of     27(1) The arbitration board at a hearing shall, in the presence of both
hearing
               parties, consider documentary evidence and hear oral evidence and
               arguments that a party or its representative submits.

               (2) Notwithstanding subsection (1) and subject to section 29, if the
               arbitration board considers it appropriate and on the agreement of the
               parties, the arbitration board may dispense with a hearing and consider
               written submissions of the parties and inspect the documents,
               correspondence, books and records referred to in section 17, as it
               considers necessary.

Failure to     28(1) If any party or its representative fails to attend a hearing of which
attend
               notice was served by the arbitration board, the arbitration board may, on
               conditions that it considers appropriate including proceeding ex parte,
               adjourn the hearing for not less than 14 clear days.

               (2) Notwithstanding section 18(1), written notice of the date for the
               adjourned hearing and of the arbitration board’s intention to proceed ex
               parte if necessary shall be served by single registered mail on both
               parties by the arbitration board within 2 days of the adjournment.

Inspection     29 The parties are entitled to be present at any inspection conducted by
               the arbitration board under section 27(2).




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ALTA. REG. 281/97                             MARKETING OF AGRICULTURAL PRODUCTS

Arbitration        30 The arbitration board is entitled to use its own technical knowledge,
board’s own        skills and general knowledge in reaching conclusions from its
knowledge
                   inspections, considerations and evaluation of the evidence.

Settlement of      31(1) If the parties settle on any item referred to in section 12, they shall
some items
                   notify the arbitration board of the settlement and, if the arbitration board
                   approves, it shall incorporate the settlement into its determination.

                   (2) If the parties’ settlement does not resolve all the items in dispute, the
                   outstanding items shall be determined by the arbitration board.

Determination      32(1) The arbitration board shall make its determination in writing as
to be in writing
                   soon as practicable and shall notify the parties of it.

                   (2) The arbitration board may direct that a written determination be
                   prepared and that both parties sign it, unless the parties have already
                   settled all the items in dispute.

Settlement of      33 If before the publication of the arbitration board’s determination the
dispute
                   parties settle the dispute, they shall immediately notify the arbitration
                   board in writing.

Determination      34 Subject to the Act, a determination of the arbitration board is final
is final           and binding on

                       (a) the Board and the Association,

                       (b) every registered producer, and

                       (c) every hatchery that purchases the regulated product.

Costs              35(1) The costs of the parties and costs of the arbitration and
                   determination, including the fees and expenses of the arbitration board,
                   are at the discretion of the arbitration board.

                   (2) The arbitration board may direct by and to whom and in what
                   manner the costs under subsection (1) or any part of them shall be paid.

                   (3) The liability of the parties for costs directed under subsection (2)
                   shall be joint and several.

Termination,       36 If the arbitration proceedings are terminated or abandoned by
etc. of
proceedings
                   agreement of the parties before a determination is made and a settlement
                   of the matters in dispute has not been reached, the fees and expenses of
                   the arbitration board shall be paid by the parties in the proportion to
                   which they agree, or in the absence of an agreement, as the arbitration
                   board directs.


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ALTA. REG. 281/97                            MARKETING OF AGRICULTURAL PRODUCTS


Late settlement   37 If the parties settle the items in dispute after the arbitration board has
                  convened a hearing, then the arbitration board may include as costs its
                  fees, including a fee for the time allocated by it for the hearing, and it
                  may make a direction in the same manner as a direction under section
                  35(2).

Removal of        38(1) The Council may, on the application of any party and after
member            hearing any representations by both parties, remove a member of an
                  arbitration board who fails to use all reasonable dispatch in entering into
                  or proceeding with the arbitration and in making a determination.

                  (2) If a party applies to the Council for the removal of a member of the
                  arbitration board or the chair of the arbitration board on the grounds that

                      (a) the person is not or may not be impartial, or

                      (b) the person is not capable of acting as a member of the
                          arbitration board,

                  the Council on consideration of representations, if any, made by the
                  parties or by the person concerned may revoke the appointment.

                  (3) If the person removed under subsection (1) or (2)

                      (a) was nominated under section 10(3), the party nominating that
                          person may nominate another person in that person’s place, but
                          if it fails to do so the Council shall do so, or

                      (b) was the chair or was appointed under section 10(3), the Council
                          shall appoint a person to that office forthwith.

                  (4) A member of an arbitration board who is removed by the Council
                  under this section is not entitled to receive any remuneration in respect
                  of that member’s services unless otherwise ordered by the Council.

Arbitration Act   39 Except where inconsistent with the Act or this Regulation, the
to apply          Arbitration Act applies to an arbitration under this Regulation.

Expiry            40 For the purpose of ensuring that this Regulation is reviewed for
                  ongoing relevancy and necessity, with the option that it may be repassed
                  in its present or an amended form following a review, this Regulation
                  expires on December 31, 2002.




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ALTA. REG. 282/97                         MARKETING OF AGRICULTURAL PRODUCTS



                                ------------------------------

                              Alberta Regulation 282/97

                      Marketing of Agricultural Products Act

                ALBERTA VEGETABLE GROWERS (PROCESSING)
                    BOARD AUTHORIZATION REGULATION

                                                                 Filed: December 19, 1997

Made by the Alberta Agricultural Products Marketing Council pursuant to sections 26 and
27 of the Marketing of Agricultural Products Act.

                                            Table of Contents

                 Definitions                                                          1
                 Regulations made under section 26 of the Act                         2
                 Regulations made under section 27(1) of the Act                      3
                 Approval re service charges                                          4
                 Repeal                                                               5
                 Expiry                                                               6
                 Coming into force                                                    7

Definitions      1 In this Regulation,

                     (a) “Act” means the Marketing of Agricultural Products Act;

                     (b) “Board” means the Alberta Vegetable Growers (Processing)
                         Board;

                     (c) “Plan” means the Alberta Vegetable Growers (Processing) Plan
                         Regulation;

                     (d) “producer” means a producer as defined in the Plan;

                     (e) “registered producer” means a registered producer under the
                         Alberta Vegetable Growers (Processing) Production and
                         Marketing Regulation;

                     (f) “regulated product” means regulated product as defined in the
                         Plan.

Regulations      2 For the purposes of enabling the Board to operate the Plan, the Board
made under       is hereby authorized under section 26 of the Act to make regulations
section 26 of
the Act
                     (a) requiring producers engaged in the production or marketing, or
                         both, of the regulated product to register their names and
                         addresses with the Board;



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ALTA. REG. 282/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (b) requiring any person who produces, markets or processes the
                        regulated product to furnish to the Board any information or
                        record relating to the production, marketing or processing of the
                        regulated product that the Board considers necessary;

                    (c) requiring persons to be licensed under the Plan before they
                        become engaged in the production, marketing and processing,
                        or any one or more of those functions, of the regulated product;

                    (d) prohibiting persons from engaging in the production, marketing
                        or processing, as the case may be, of the regulated product
                        except under the authority of a licence;

                    (e) governing the issuance, suspension or cancellation of a licence;

                    (f) providing for

                            (i) the assessment, charging and collection of service
                                charges and licence fees, as the case may be, from
                                producers from time to time for the purposes of the Plan,
                                and

                           (ii) the taking of legal action to enforce payment of the
                                service charges and licence fees, as the case may be;

                    (g) requiring any person who receives the regulated product from
                        a producer

                            (i) to deduct from the money payable to the producer any
                                service charges, licence fees or levies, as the case may
                                be, payable by the producer to the Board, and

                           (ii) to forward the amount deducted to the Board;

                    (h) providing for the use of any class of service charges, licence
                        fees, levies or other money payable to or received by the Board
                        for the purpose of paying its expenses and administering the
                        Plan and the regulations made by the Board;

                    (i) requiring persons who produce, market or process the regulated
                        product to mark the containers of their products to show the
                        place of origin or place of production to the satisfaction of the
                        Board.

Regulations     3 For the purposes of enabling the Board to operate the Plan, the Board
made under
section 27(1)
                is hereby authorized under section 27(1) of the Act to make regulations
of the Act
                    (a) establishing

                            (i) a formula for determining the amount of the regulated
                                product deemed to have been produced or marketed by
                                a producer, and



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ALTA. REG. 282/97                        MARKETING OF AGRICULTURAL PRODUCTS

                           (ii) the period of time in respect of which the formula is to
                                be applied,

                        for the purposes of determining the amount of the regulated
                        product produced or marketed by a producer during a period of
                        time;

                    (b) requiring a producer who produces the regulated product to
                        market the regulated product through a designated agency;

                    (c) directing, controlling or prohibiting, as the case may be, the
                        production or marketing, or both, of the regulated product or
                        any class, variety, size, grade or kind of the regulated product
                        in a manner that the Board considers appropriate;

                    (d) regulating and controlling the production or marketing, or both,
                        of the regulated product, including the times and places at
                        which the regulated product may be produced or marketed;

                    (e) determining from time to time the minimum price or prices that
                        must be paid to producers for the regulated product or any class,
                        variety, size, grade or kind of the regulated product and
                        determining different prices for different parts of Alberta;

                    (f) providing for the payment to a producer of the money payable
                        or owing for the regulated product, less any service charges and
                        levies owing to the Board by the producer, and fixing the time
                        or times at which or within which the payments must be made;

                    (g) providing for the collection from any person by legal action of
                        money owing to a producer for the regulated product;


                    (h) prohibiting any person from marketing or processing any of the
                        regulated product that has not been sold by or through a
                        designated agency.
Approval re   4 Notwithstanding section 2, a regulation made by the Board under
service
charges
              section 26(f) of the Act shall not be submitted to the Registrar of
              Regulations for filing unless the amount of service charges fixed or
              imposed by the regulation has been approved by

                    (a) a vote of the registered producers at a general meeting, or

                    (b) the Council.

Repeal        5 The Alberta Vegetable Growers’ Marketing Board Authorization
              Regulation (AR 176/93) is repealed.




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ALTA. REG. 283/97                         MARKETING OF AGRICULTURAL PRODUCTS

Expiry         6 For the purpose of ensuring that this Regulation is reviewed for
               ongoing relevancy and necessity, with the option that it may be repassed
               in its present or an amended form following a review, this Regulation
               expires on December 31, 2002.

Coming into    7 This Regulation comes into force on December 31, 1997.
force


                                ------------------------------

                            Alberta Regulation 283/97

                     Marketing of Agricultural Products Act

     ALBERTA VEGETABLE GROWERS (PROCESSING) PRODUCTION
                 AND MARKETING REGULATION

                                                                 Filed: December 19, 1997

Made by the Alberta Vegetable Growers (Processing) pursuant to sections 26 and 27 of the
Marketing of Agricultural Products Act.

                                            Table of Contents

               Interpretation                                                         1
               Application                                                            2

                                                 Part 1
                                Registration and Licensing of Producers

               Application for registration                                           3
               Cancellation of registration                                           4
               List of registered producers                                           5
               Producer’s licence                                                     6
               Expiry of licence                                                      7
               List of licensed producers                                             8
               Authority of producer’s licence                                        9
               Prohibition re production and marketing                               10
               Disposal of licence prohibited                                        11
               Cancellation, suspension and refusal                                  12
               Reinstatement                                                         13

                                                 Part 2
                                          Processors’ Licences

               Application for licence                                               14
               Granting of licence                                                   15
               Authority of licence                                                  16
               Disposal of licence prohibited                                        17
               Cancellation, suspension and refusal                                  18
               Reinstatement                                                         19
               Dual licensing                                                        20


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ALTA. REG. 283/97                           MARKETING OF AGRICULTURAL PRODUCTS

                                                Part 3
                                  Service Charges, Levies and Records

                 Service charges and levies                                              21
                 Collection of service charges and levies                                22
                 Records, statements, etc.                                               23

                                                   Part 4
                                                  General

                 Orders and directions                                                   24
                 Expenses of Board                                                       25
                 Prohibitions                                                            26
                 Notices                                                                 27
                 Notice of change                                                        28

                                                 Part 5
                          Transitional, Repeal, Expiry and Coming into Force

                 Transitional                                                            29
                 Repeal                                                                  30
                 Expiry                                                                  31
                 Coming into force                                                       32

Interpretation   1(1) In this Regulation,

                     (a) “Act” means the Marketing of Agricultural Products Act;

                     (b) “Board” means the Alberta Vegetable Growers (Processing)
                         Board;

                     (c) “Plan” means the Alberta Vegetable Growers (Processing) Plan
                         Regulation.

                 (2) Words defined in the Alberta Vegetable Growers (Processing) Plan
                 Regulation have the same meaning when used in this Regulation.

Application      2(1) This Regulation applies

                     (a) to all persons who grow, produce, market or process the
                         regulated product in a district, and

                     (b) to all classes, varieties, sizes, grades and kinds of the regulated
                         product.

                 (2) The Board may exempt persons from registering and obtaining a
                 producer’s or processor’s licence as required by this Regulation.

                 (3) The Board may exempt sales of the regulated product from being
                 subject to a service charge payable under this Regulation.




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ALTA. REG. 283/97                          MARKETING OF AGRICULTURAL PRODUCTS

                                                  PART 1

                       REGISTRATION AND LICENSING OF PRODUCERS
Application for   3(1) Every person who wishes to become registered with the Board as
registration      a producer must apply to the Board for registration by providing to the
                  Board, on a form prescribed by it, the following information:

                      (a) the name, telephone number and mailing address of the
                          applicant;

                      (b) the legal description of the land on which the applicant intends
                          to grow the regulated product;

                      (c) a description of the experience of the applicant in producing the
                          regulated product;

                      (d) a description of the equipment to be used in the production of
                          the regulated product;

                      (e) proof satisfactory to the Board that,

                              (i) in the case of an applicant who is an individual, the
                                  applicant is a Canadian citizen or lawfully admitted to
                                  Canada for permanent residence,

                             (ii) in the case of an applicant that is a partnership or a
                                  corporation,

                                 (A) at least 50% of the partners in the partnership or at
                                     least 50% of the members or shareholders of the
                                     corporation are persons who are Canadian citizens
                                     or lawfully admitted to Canada for permanent
                                     residence, and

                                 (B) at least 50% of the beneficial ownership of the
                                     partnership or corporation is held by persons who
                                     are Canadian citizens or lawfully admitted to
                                     Canada for permanent residence,

                                or

                            (iii) in the case of an applicant that is

                                 (A) an unincorporated organization other than a
                                     partnership, or

                                 (B) a group of individuals who are carrying on an
                                     activity for a common purpose and are neither a
                                     partnership nor an unincorporated organization
                                     referred to in paragraph (A),

                                 at least 50% of the members of the unincorporated
                                 organization or of the group of individuals are persons

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ALTA. REG. 283/97                            MARKETING OF AGRICULTURAL PRODUCTS

                                   who are Canadian citizens or lawfully admitted to
                                   Canada for permanent residence;

                        (f) any other relevant information that the Board may require to
                            make a decision on the application.

                   (2) The Board must consider every application for registration that it
                   receives.

                   (3) If the Board is not satisfied that an applicant should be registered as
                   a producer, it must promptly notify the applicant in writing of that
                   decision.

Cancellation of    4 The Board may cancel a producer’s registration if
registration
                       (a) the producer ceases to produce and market the regulated product
                           through a processor for a period of 18 consecutive months, or

                       (b) the producer’s licence is cancelled.

List of            5 The Board must establish and maintain at its head office a list of
registered         registered producers and must assign a registration number to each
producers
                   registered producer.

Producer’s         6(1) A registered producer may apply to the Board for a producer’s
licence
                   licence in a form prescribed by the Board.

                   (2) The Board may issue a producer’s licence to a registered producer
                   if the Board is satisfied that the producer

                       (a) meets the requirements of section 3(1)(e),

                       (b) is sufficiently experienced and has the equipment necessary to
                           market regulated product that is of good quality, and

                       (c) is the registered owner of, or has an interest in, land that is
                           suitable for the production of the regulated product.

                   (3) A registered producer must hold a separate producer’s licence for
                   each contract held with a processor.

                   (4) A producer’s licence must be in the form prescribed by the Board.

Expiry of          7 A producer’s licence expires on March 31 following its issue.
licence

List of licensed   8 The Board must establish and maintain at its head office a list of
producers          licensed producers and must assign a licence number to each licence held
                   by the producer.


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ALTA. REG. 283/97                         MARKETING OF AGRICULTURAL PRODUCTS


Authority of     9 A producer’s licence is authority for the person to whom the licence
producer’s
licence
                 is issued to engage in the production and marketing of the regulated
                 product in Alberta on the land described in the licence.

Prohibition re   10 No person other than a registered producer who holds a producer’s
production and   licence shall produce or market the regulated product in Alberta through
marketing
                 a processor.

Disposal of      11(1) No person shall sell, transfer, assign or otherwise dispose of a
licence
prohibited
                 producer’s licence.

                 (2) If a producer’s licence is sold, transferred, assigned or otherwise
                 disposed of, it is void.

Cancellation,    12(1) The Board may refuse to grant a producer’s licence if
suspension
and refusal
                     (a) it is of the opinion that the applicant does not meet the
                         requirements of section 6(2),

                     (b) it is of the opinion that the applicant has contravened the Act,
                         the Plan, the regulations under the Act or an order or direction
                         of the Council or the Board, or

                     (c) for any other reason it is satisfied that a licence should not be
                         granted.

                 (2) The Board may cancel or suspend a producer’s licence if

                     (a) the producer’s registration has been cancelled,

                     (b) the licensee’s equipment is inadequate or is not maintained in
                         satisfactory condition,

                     (c) the licensee is producing regulated product of poor quality and
                         the poor quality is not due to circumstances beyond the
                         licensee’s control,

                     (d) the licensee has transferred, sold, leased, assigned or otherwise
                         disposed of the land or interest in the land in respect of which
                         the licence was granted,

                     (e) in the case of a licence issued to a partnership or a corporation,
                         there is a change in the beneficial ownership of the partnership
                         or the shares in the corporation without the prior approval of the
                         Board,

                     (f) in the case of a licence issued to an unincorporated
                         organization, other than a partnership, or to a group of
                         individuals who are carrying on an activity for a common
                         purpose and are neither a partnership nor an incorporated

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ALTA. REG. 283/97                           MARKETING OF AGRICULTURAL PRODUCTS

                           organization, there is a change in the membership of the
                           unincorporated organization or group of individuals without the
                           prior approval of the Board, or

                      (g) the licensee has contravened the Act, the Plan, the regulations
                          under the Act or an order or direction of the Council or the
                          Board.

                  (3) The Board must promptly notify in writing a person whose
                  application for a producer’s licence has been refused or whose licence
                  has been cancelled or suspended.

                  (4) A person who receives a notice of cancellation or suspension under
                  this section must, on receipt of the notice, forthwith cease producing and
                  marketing the regulated product.

Reinstatement     13 The Board may remove the suspension of a producer’s licence if it
                  considers it appropriate to do so.


                                                  PART 2

                                      PROCESSORS’ LICENCES
Application for   14 Every person who wishes to process the regulated product must
licence
                  apply to the Board for a processor’s licence by providing to the Board,
                  on a form prescribed by it, the following information:

                      (a) the name, telephone number and mailing address of the
                          processor;

                      (b) the address of the processor, if it is not the mailing address;

                      (c) any other information the Board may require to make a decision
                          on the application.

Granting of       15(1) The Board may issue a processor’s licence to an applicant if it is
licence           satisfied that it is appropriate to do so.

                  (2) A processor’s licence must be in the form prescribed by the Board.

Authority of      16 A processor’s licence is authority for the processor to receive and
licence           process the regulated product in accordance with this Regulation.

Disposal of       17(1) No person shall sell, transfer, assign or otherwise dispose of a
licence           processor’s licence.
prohibited

                  (2) If a processor’s licence is sold, transferred, assigned or otherwise
                  disposed of, it is void.


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ALTA. REG. 283/97                          MARKETING OF AGRICULTURAL PRODUCTS


Cancellation,    18(1) The Board may refuse to grant a processor’s licence or cancel or
suspension
and refusal
                 suspend a processor’s licence if it is of the opinion that the applicant or
                 licensee has contravened the Act, the Plan, the regulations under the Act
                 or an order or direction of the Council or the Board.

                 (2) The Board must promptly notify in writing a person whose
                 application for a processor’s licence has been refused or whose licence
                 has been cancelled or suspended.

                 (3) A person who receives a notice of cancellation or suspension under
                 this section must, on receipt of the notice, forthwith cease receiving the
                 regulated product.

Reinstatement    19 The Board may remove the suspension of a processor’s licence if it
                 considers it appropriate to do so.

Dual licensing   20 If a person operates in the capacity of a processor and in the capacity
                 of a producer, this Regulation applies to that person in each capacity and
                 that person must hold both a processor’s licence and a producer’s
                 licence.


                                                  PART 3

                          SERVICE CHARGES, LEVIES AND RECORDS
Service          21(1) Every registered producer must pay to the Board a service charge
charges and
levies
                 at the rate of 1% of the total sale price of the regulated product delivered
                 to a processor.

                 (2) A processor must deduct the service charges payable by a registered
                 producer from the sum of money due to the person from whom the
                 regulated product was received and must forward the service charges to
                 the Board not later than December 31 each year.

Collection of    22 The Board may collect by legal action,
service
charges and
levies               (a) from a registered producer, all service charges payable by the
                         registered producer under this Regulation and not actually paid,
                         and

                     (b) from any other person, all money owing to a registered producer
                         for the regulated product.

Records,         23(1) A person engaged in producing or marketing the regulated
statements,
etc.
                 product must keep a complete and accurate record of all matters relating
                 to the production and marketing of the regulated product that apply to the
                 person’s operation.


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ALTA. REG. 283/97                        MARKETING OF AGRICULTURAL PRODUCTS

             (2) The Board may by written notice require a person engaged in
             producing or marketing the regulated product to furnish information
             relating to its production or marketing that is specified in the notice, and
             a person to whom such a notice is given must comply with it.

             (3) A person who produces or markets the regulated product must, at the
             request of the Board, deliver to the Board an itemized statement showing
             the gross amount of money received by the person from the sale of the
             regulated product grown or marketed by the person over the period of
             time stipulated by the Board.

             (4) A processor must, on or before December 1 in every year, deliver to
             the Board a statement containing the following information:

                    (a) the name and address of every producer who has sold or
                        delivered or has contracted or agreed to sell or deliver in that
                        year any of the regulated product to the processor;

                    (b) the number of acres of land used by the producers referred to in
                        clause (a) for the production of the regulated product, shown
                        separately for each producer;

                    (c) the total sale price, before deductions, paid or to be paid by the
                        processor to the producers referred to in clause (a), shown
                        separately for each producer.

             (5) A processor must, on or before July 1 of every year, deliver to the
             Board a statement showing the producers with whom the processor has
             contracted for that year, including the address of each producer and the
             legal description and acreage of the land on which each crop covered by
             a contract is to be grown.

             (6) A processor must, within 30 days after receiving a request from the
             Board, deliver to the Board a statement showing, with respect to each
             producer and crop specified in the request, the total acreage and tonnage
             figures with respect to each crop produced by that producer and received
             by the processor.


                                                PART 4

                                              GENERAL
Orders and   24(1) The Board may issue any orders and directions it considers
directions
             necessary

                    (a) respecting the time at which the regulated product is to be
                        delivered to the processor, and

                    (b) to carry out and enforce this Regulation and to carry out the
                        purposes of the Plan generally.

             (2) A person to whom an order or direction is made under this section
             must comply with it.

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ALTA. REG. 283/97                         MARKETING OF AGRICULTURAL PRODUCTS


Expenses of    25 The Board may use service charges, licence fees, levies and money
Board
               arising from investments of, and any other income earned by, the Board
               for the purpose of paying Board expenses and administering the Plan and
               the regulations made by the Board.

Prohibitions   26(1) No processor may buy the regulated product produced by any
               person other than a licensed registered producer and no person may
               transport any of the regulated product produced by any person other than
               a licensed registered producer, unless the Board has authorized the
               processor or the person transporting the regulated product to do so.

               (2) A processor may not enter into a contract for the purchase of the
               regulated product with anyone other than a licensed registered producer.

Notices        27 When a notice is required to be given under this Regulation

                    (a) by the Board, it is sufficiently given if it is served personally on
                        the person to whom it is directed, or is sent by mail addressed
                        to the person at the mailing address on record with the Board,
                        or

                    (b) to the Board, it is sufficiently given if it is served personally at
                        or sent by mail to the head office of the Board.

Notice of      28 If any change occurs in the information provided to the Board by a
change         registered producer or processor, that person must forthwith notify the
               Board of the change.


                                                PART 5

                            TRANSITIONAL, REPEAL, EXPIRY AND
                                   COMING INTO FORCE
Transitional   29 On the coming into force of this Regulation,

                    (a) a producer who is licensed and registered under the Alberta
                        Vegetable Growers Production and Marketing Regulation (AR
                        5/94) is considered to be licensed and registered under this
                        Regulation;

                    (b) a processor who is licensed under the Alberta Vegetable
                        Growers Production and Marketing Regulation (AR 5/94) is
                        considered to be licensed under this Regulation.

Repeal         30    The Alberta Vegetable Growers Production and Marketing
               Regulation (AR 5/94) is repealed.




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ALTA. REG. 284/97                       MARKETING OF AGRICULTURAL PRODUCTS


Expiry        31 For the purpose of ensuring that this Regulation is reviewed for
              ongoing relevancy and necessity, with the option that it may be repassed
              in its present or an amended form following a review, this Regulation
              expires on December 31, 2002.

Coming into   32 This Regulation comes into force on December 31, 1997.
force


                              ------------------------------

                            Alberta Regulation 284/97

                     Marketing of Agricultural Products Act

     VEGETABLE NEGOTIATING AGENCY AMENDMENT REGULATION

                                                               Filed: December 19, 1997

Made by the Alberta Agricultural Products Marketing Council pursuant to section 33 of
the Marketing of Agricultural Products Act.

              1 The Vegetable Negotiating Agency Regulation (AR 63/94)
              is amended by this Regulation.


              2 Section 1(1) is amended

                    (a) in clause (d) by striking out “Growers’ Marketing” and
                        substituting “Growers (Processing)”;

                    (b) in clause (f) by striking out “Growers’ Marketing” and
                        substituting “Growers (Processing)”;

                    (c) in clause (h) by striking out “Plan” and substituting
                        “Alberta Vegetable Growers (Processing) Plan Regulation”.


              3 Section 4 is amended

                    (a) in subsection (1) by striking out “shall be” and
                        substituting “is”;

                    (b) by adding the following after subsection (6):

                        (7) When the Board considers it appropriate, the individuals
                        appointed under subsection (1)(a) may be excluded from a
                        meeting of the Agency at which the Agency is to consider and,
                        if possible, conclude matters with respect to an individual
                        processor.




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               4   Section 10(2) is amended by striking out “10” and
               substituting “7”.


               5 The following is added after section 41:

                                              PART 5

                                              EXPIRY
Expiry                42 For the purpose of ensuring that this Regulation is reviewed
                      for ongoing relevancy and necessity, with the option that it may
                      be repassed in its present or an amended form following a review,
                      this Regulation expires on December 31, 2002.


               6 This Regulation comes into force on December 31, 1997.



                             Alberta Regulation 285/97

                    Marketing of Agricultural Products Act

         ALBERTA SUGAR BEET GROWERS NEGOTIATION, MEDIATION
                    AND ARBITRATION REGULATION

                                                             Filed: December 19, 1997

Made by the Alberta Agricultural Products Marketing Council pursuant to section 33 of
the Marketing of Agricultural Products Act.

                                         Table of Contents

               Definitions                                                           1

                                              Part 1
                                            Negotiations

               Negotiating agency                                                    2
               Appointment of members                                                3
               Powers of agency                                                      4
               Notice to commence negotiations                                       5
               Effecting an agreement                                                6
               Effect of agreement                                                   7
               Contents of agreement                                                 8

                                              Part 2
                                             Mediation

               Request for mediation                                                 9
               Duties of mediator                                                   10
               Lack of settlement                                                   11
               Acceptance of recommendations                                        12
               Costs                                                                13


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ALTA. REG. 285/97                        MARKETING OF AGRICULTURAL PRODUCTS



                                                Part 3
                                              Arbitration

              Referral of matters to arbitration board                              14
              Information to board                                                  15
              Staff                                                                 16
              Reasonable dispatch                                                   17
              Service of notices                                                    18
              Application to board for directions                                   19
              Directions by board                                                   20
              Determining jurisdiction of board                                     21
              Conduct of arbitration                                                22
              Hearings and evidence                                                 23
              Attendance at hearing                                                 24
              Representation                                                        25
              Adjournment of hearing                                                26
              Adjournment on failure to attend                                      27
              Evidence                                                              28
              Production of documents                                               29
              Conclusions                                                           30
              Determination in writing                                              31
              Incorporation of settlement into determination                        32
              Settlement terminating arbitration                                    33
              Board’s determination final                                           34
              Fees and expenses of board                                            35
              Fees and expenses in case of settlement                               36
              Removal of member or chair                                            37
              Arbitration Act to apply                                              38
              Expiry                                                                39

Definitions   1(1) In this Regulation,

                    (a) “arbitration board” means an arbitration board appointed by the
                        Council under Part 3;

                    (b) “Board” means the Alberta Sugar Beet Growers referred to in
                        section 7 of the Plan;

                    (c) “Company” means the Rogers Sugar Ltd.;

                    (d) “negotiating agency” means the Sugar Beet Negotiating Agency
                        established under Part 1;

                    (e) “party” means the Board or the Company, as the case may be;

                    (f) “Plan” means the Sugar Beet Marketing Plan (AR 275/97);

                    (g) “regulated product” means sugar beets produced for processing.

              (2) Except where otherwise provided in this Regulation, words not
              defined in this Regulation but defined in the Plan have the same meaning
              when used in this Regulation.

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ALTA. REG. 285/97                         MARKETING OF AGRICULTURAL PRODUCTS



                                                PART 1

                                          NEGOTIATIONS
Negotiating      2(1) The Sugar Beet Negotiating Agency established under the Sugar
agency
                 Beet Marketing Plan Implementation Regulation (AR 2/91) is continued.

                 (2) The negotiating agency shall be composed of not more than 8
                 members appointed as follows:

                     (a) not more than 4 persons appointed by the Board;

                     (b) not more than 4 persons appointed by the Company.

                 (3) The members of the negotiating agency appointed under subsection
                 (2) may by unanimous consent appoint a person to act as chair of the
                 agency, who shall serve in a non-voting capacity.

                 (4) A quorum of the negotiating agency is 2 members appointed by each
                 party under subsection (2).

                 (5) Any party may have in attendance at the negotiation proceedings
                 persons who are not members of the negotiating agency, including legal
                 counsel and persons having special technical or other knowledge, to
                 advise it on any matter relating to the negotiations, but those persons
                 shall not participate directly in the proceedings.

Appointment of   3(1) Prior to the commencement of any negotiations, the Board and the
members
                 Company shall each appoint the required number of members to the
                 negotiating agency and notify the other party of the appointments.

                 (2) An appointment under subsection (1) lasts until that member’s
                 appointment is terminated by the Board or the Company that appointed
                 that member.

Powers of        4 The members of the negotiating agency have the power to conclude
agency           an agreement on all or any of the following:

                     (a) a method for the determination of the final price to be paid to
                         producers for the regulated product, and may include any
                         product resulting from processing;

                     (b) the terms, conditions and forms of agreement relating to the
                         production or marketing of the regulated product;

                     (c) any charges, costs or expenses relating to the production or
                         marketing of the regulated product.




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ALTA. REG. 285/97                         MARKETING OF AGRICULTURAL PRODUCTS

Notice to      5(1) Subject to the terms of any agreement between the Board and the
commence       Company, either party may give notice in writing to the other
negotiations

                    (a) stating that it wishes to commence negotiations,

                    (b) setting out the matters it wishes to negotiate, and

                    (c) setting out dates the party is available to commence
                        negotiations.

               (2) Within 10 days of the receipt of a notice under subsection (1), the
               party receiving the notice shall by notice in writing to the other state

                    (a) whether or not one of the dates proposed to commence
                        negotiations is suitable to it and if not, alternative dates that are
                        acceptable, and

                    (b) any additional matters that it wishes to negotiate.

Effecting an   6(1) Following an exchange of notices under section 5, the negotiating
agreement      agency shall meet and endeavour to effect an agreement.

               (2) Subject to section 4, the matters that the negotiating agency may
               adopt or settle by agreement are

                    (a) those items submitted by the parties under section 5, and

                    (b) any other items subsequently agreed on by both parties.

Effect of      7(1) An agreement concluded by the negotiating agency shall be in
agreement
               writing and signed by each of the members of the agency, and by the
               chair, if any.

               (2) Subject to the Act, an agreement concluded by the negotiating
               agency is binding on

                    (a) the Board and the Company, and

                    (b) every registered producer

               to the extent that they choose to produce, market or process the regulated
               product within Alberta.

Contents of    8 The agreement is deemed to contain the following provisions:
agreement
                    (a) if a difference arises as to the interpretation, application,
                        operation or contravention of this agreement, the parties agree
                        to meet and endeavour to resolve the difference;

                    (b) if the parties are unable to resolve a difference described in
                        clause (a), or if the difference relates to whether an item can be

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ALTA. REG. 285/97                         MARKETING OF AGRICULTURAL PRODUCTS

                        the subject of negotiation, either party may notify the other in
                        writing specifying the difference and that party’s desire to
                        submit the difference to arbitration;

                    (c) the notice referred to in clause (b) shall

                            (i) contain a statement of the difference, and

                           (ii) specify a name of a person or a list of names of persons
                                the party is willing to accept as the single arbitrator;

                    (d) on receipt of a notice referred to in clause (b), the party
                        receiving the notice,

                            (i) if it accepts the person or one of the persons suggested
                                to act as a single arbitrator, shall within 7 days so notify
                                the other party and the difference specified in the notice
                                shall be submitted to the arbitrator, or

                           (ii) if it does not accept any of the persons suggested to act
                                as a single arbitrator, shall within 7 days so notify the
                                other party and send the name or a list of names of
                                persons it is willing to accept as the single arbitrator;

                    (e) if the parties are unable to agree on a person to act as a single
                        arbitrator, either party may request the Council in writing to
                        appoint a single arbitrator;

                    (f) the single arbitrator agreed to, or appointed under clause (e),
                        may hold hearings or proceed in such other manner as the single
                        arbitrator considers appropriate during the arbitration;

                    (g) the single arbitrator shall inquire into the difference described
                        in the notice and make a determination in writing;

                    (h) the single arbitrator shall not alter or amend the agreement;

                    (i) subject to the Act, the determination under clause (g) is final
                        and binding on the parties and on every person affected by it to
                        the extent that they choose to produce, market or process the
                        regulated product within Alberta;

                    (j) the parties shall share equally the expenses of the single
                        arbitrator.




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ALTA. REG. 285/97                        MARKETING OF AGRICULTURAL PRODUCTS

                                               PART 2

                                             MEDIATION
Request for     9(1) At any time after a notice to commence negotiations is served,
mediation       either the Board or the Company may request that the Council
                recommend the services of a mediator to informally assist in the
                negotiation process.

                (2) On receiving a request under subsection (1), the Council may
                recommend a mediator.

Duties of       10(1) The mediator shall inquire into the dispute and endeavour to effect
mediator
                a settlement.

                (2) During the mediator’s inquiry, the mediator may

                    (a) hear any representations made by the parties to the dispute,

                    (b) mediate between the parties to the dispute, and

                    (c) encourage the parties to the dispute to effect a settlement.

Lack of         11 If a settlement is not effected between the Board and the Company
settlement
                within 14 days from the date of the appointment of the mediator, or
                within any longer period of time agreed to by the parties to the dispute,
                the mediator may

                    (a) recommend terms for settlement to the parties for them to accept
                        or reject within a time fixed by the mediator, or

                    (b) notify the parties that no recommendation under clause (a) will
                        be made.

Acceptance of   12 If the Board and the Company accept the recommendations of the
recommenda-
tions
                mediator, the parties shall notify the mediator accordingly and the
                recommendations are binding on the parties as if they were an agreement
                adopted or settled by the negotiating agency in accordance with sections
                6 and 7.

Costs           13 The Board and the Company shall share equally the costs of the
                mediation unless otherwise agreed between the parties.




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ALTA. REG. 285/97                          MARKETING OF AGRICULTURAL PRODUCTS

                                                 PART 3

                                             ARBITRATION
Referral of      14(1) If the members of the negotiating agency unanimously agree to
matters to       refer an unconcluded agreement or specific items in it to arbitration, the
arbitration
board            parties shall notify the Council in writing and then those matters shall be
                 referred to an arbitration board in accordance with this Part.

                 (2) If the members of the negotiating agency do not unanimously agree
                 to refer matters under subsection (1) to arbitration, the unconcluded
                 agreement or specific items in it that are in dispute shall not be referred
                 to an arbitration board unless both parties subsequently agree to refer the
                 matters to arbitration and so notify the Council in writing.

                 (3) The notice referred to in this section shall

                     (a) contain a statement of the matters proposed for arbitration, and

                     (b) include a request for the appointment of a one-person or a
                         3-person arbitration board and, if a 3-person arbitration board
                         is proposed, the name of the person nominated to the arbitration
                         board by each party.

                 (4) On receipt of a notice under this section, the Council shall appoint
                 persons to an arbitration board as follows:

                     (a) one person, if both parties agree to a one-person arbitrator;

                     (b) 3 persons, one person to be nominated by each of the parties
                         and the chair to be appointed by the Council, if either of the
                         parties requests to have a 3-person arbitration board.

Information to   15 On appointing an arbitration board, the Council shall forward to the
board            arbitration board

                     (a) a copy of the notices received by it from the parties, and

                     (b) a copy of this Regulation.

Staff            16 For the purposes of any arbitration under this Regulation, an
                 arbitration board may employ such persons as it considers necessary to
                 carry out its functions and may make use of the available administrative
                 services of the Council.

Reasonable       17 The arbitration board shall use all reasonable dispatch in conducting
dispatch         hearings and making a determination on the unconcluded agreement or
                 the specific items in it, as the case may be.




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ALTA. REG. 285/97                            MARKETING OF AGRICULTURAL PRODUCTS

Service of        18(1)A notice, application, direction or communication in an arbitration
notices           under this Regulation is deemed to have been properly served if sent by
                  post or electronic means, or delivered by hand, to the usual business
                  address of the party to be served.

                  (2) Notwithstanding subsection (1), if any party to whom a notice,
                  application, direction or communication has been sent for the purpose of
                  this Regulation cannot be found or if for any reason service cannot be
                  readily effected in accordance with this Regulation, the arbitration board
                  may dispense with service or may grant an order of substitutional service
                  by a method that the arbitration board considers appropriate.

                  (3) A party who sends a written notice, application, objection or
                  communication to the arbitration board shall forthwith serve a copy of
                  it on the other party and notify the arbitration board that the copy has
                  been served.

Application to    19(1) A party may apply in writing to the arbitration board on any
board for         subject relating to matters before the arbitration board.
directions

                  (2) When a party makes an application under subsection (1), it shall
                  serve a copy of the application on the other party.

                  (3) A party, on receipt of a copy of an application described in
                  subsection (1), may within 7 days make an objection in writing to the
                  arbitration board.

                  (4) On receipt of an application or objection under this section, the
                  arbitration board may, with or without holding a hearing, give directions
                  that it considers appropriate.

Directions by     20(1) Any direction from the arbitration board to the parties shall be in
board
                  writing or, if given orally, shall be confirmed in writing by the arbitration
                  board within 7 days.

                  (2) The written direction shall be served on the parties in accordance
                  with section 18.

Determining       21(1) The arbitration board shall consider whether the matters proposed
jurisdiction of
board
                  for arbitration are matters that could be the subject of an agreement under
                  section 4.

                  (2) If the arbitration board concludes that any matters proposed for
                  arbitration cannot be the subject of an agreement under section 4, the
                  arbitration board shall not deal with those matters.




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ALTA. REG. 285/97                          MARKETING OF AGRICULTURAL PRODUCTS

Conduct of       22 The arbitration board shall, with or without preliminary hearings,
arbitration      direct the parties as to how the arbitration is to be conducted.

Hearings and     23(1) The arbitration board may hold a hearing in the presence of both
evidence         parties and consider documentary evidence and hear oral evidence and
                 arguments that a party or its representative submits.

                 (2) Notwithstanding subsection (1), if the arbitration board considers it
                 appropriate, it may dispense with a hearing and consider written
                 submissions of the parties and inspect matters referred to it as it
                 considers necessary.

                 (3) The parties are entitled to be present at any inspection conducted by
                 the arbitration board under subsection (2).

                 (4) If the arbitration board orders that a hearing be held, it shall notify
                 the parties in writing of the date, time and place for the hearing.

                 (5) Subject to any adjournments that the arbitration board considers
                 reasonable, the hearing shall be held daily until concluded.

Attendance at    24 The only persons who may be present at a hearing are the arbitration
hearing
                 board, its officers and employees, the parties, their representatives, the
                 witnesses and the officers of the Council, unless the arbitration board,
                 after consulting with the parties, orders otherwise.

Representa-      25(1) Unless otherwise agreed to by the parties and approved by the
tion
                 arbitration board, any party may be represented at any stage of the
                 proceedings by legal counsel or other representative, if the notice of the
                 intended representation is given in writing to the arbitration board and to
                 the other party in sufficient time for each to be able to arrange to be
                 similarly represented.

                 (2) If a party is represented in accordance with subsection (1), it shall
                 instruct its representative, and the party itself may participate in the
                 proceedings only as a witness.

                 (3) The appearance of a person as a representative does not prevent the
                 representative’s appearing as a witness in the same proceeding.

Adjournment of   26 The arbitration board may adjourn the hearing as it considers
hearing          appropriate

                     (a) if a party has a representative, and notice in accordance with
                         section 25(1) has not, in the opinion of the arbitration board,
                         been sufficient, or

                     (b) for any other reason it considers proper.




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ALTA. REG. 285/97                          MARKETING OF AGRICULTURAL PRODUCTS

Adjournment     27(1) If any party or its representative fails to attend a hearing, notice
on failure to   of which was served by the arbitration board, the arbitration board may,
attend
                on any conditions that it considers appropriate, adjourn the hearing for
                not more than 7 days.

                (2) Written notice of the date for the adjourned hearing and of the
                arbitration board’s intention to proceed, ex parte if necessary, shall be
                served forthwith on both parties by the arbitration board.

Evidence        28(1) Unless otherwise agreed to by the parties, the arbitration board
                shall require witnesses to be examined on oath or affirmation.

                (2) The arbitration board may direct the terms and conditions under
                which evidence may be given.

Production of   29 The arbitration board may direct the parties to produce to it
documents
                documents, correspondence, books or records in their possession or
                under their control that, in the opinion of the arbitration board, are
                relevant to the dispute.

Conclusions     30 The arbitration board is entitled to use its own technical knowledge,
                skills and general knowledge in reaching conclusions from its
                inspections, considerations and evaluation of the evidence.

Determination   31 The arbitration board shall make its determination in writing as soon
in writing      as practicable and shall notify the parties of it.

Incorporation   32(1) If the parties settle on any item referred to in section 14, they shall
of settlement   notify the arbitration board of the settlement and the arbitration board
into
determination   shall incorporate the settlement into its determination.

                (2) If the parties’ settlement does not resolve all the items in dispute, the
                outstanding items shall be determined by the arbitration board.

Settlement      33 If, before the publication of the arbitration board’s determination,
terminating     the parties themselves settle all the items in dispute, they shall
arbitration
                immediately notify the arbitration board in writing and the arbitration
                board shall accept the notice as terminating the arbitration proceedings.

Board’s         34 Subject to the Act, a determination of the arbitration board is final
determination   and binding on
final

                    (a) the Board and the Company, and

                    (b) every registered producer



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ALTA. REG. 285/97                           MARKETING OF AGRICULTURAL PRODUCTS

                  to the extent that they choose to produce, market or process the regulated
                  product within Alberta.

Fees and          35 The parties shall share equally the fees and expenses of the
expenses of       arbitration board.
board


Fees and          36 If the arbitration proceedings are terminated by agreement of the
expenses in       parties before a determination is made and a settlement of the matters in
case of
settlement        dispute has been reached, the fees and expenses incurred by the
                  arbitration board shall be shared equally by the parties.

Removal of        37(1) If a party applies to the Council for the removal of a member or
member or         the chair of an arbitration board, the Council, on consideration or any
chair
                  representations either of the parties may wish to make, may remove the
                  member or chair from the arbitration board.

                  (2) If the person removed under subsection (1)

                      (a) was nominated under section 14(4), the party nominating that
                          person may nominate another person in that person’s place, but,
                          if it fails to do so, the Council shall do so, or

                      (b) was the chair appointed under section 14(4), the Council shall
                          appoint a person to that office forthwith.

Arbitration Act   38 Except where it is inconsistent with the Marketing of Agricultural
to apply
                  Products Act or this Regulation, the Arbitration Act applies to an
                  arbitration under this Regulation.

Expiry            39 For the purpose of ensuring that this Regulation is reviewed for
                  ongoing relevancy and necessity, with the option that it may be repassed
                  in its present or an amended form following a review, this Regulation
                  expires on December 31, 2002.


                                 ------------------------------

                               Alberta Regulation 286/97

                        Marketing of Agricultural Products Act

                         ALBERTA SUGAR BEET GROWERS
                          AUTHORIZATION REGULATION

                                                                  Filed: December 19, 1997

Made by the Alberta Agricultural Products Marketing Council pursuant to sections 26 and
27 of the Marketing of Agricultural Products Act.


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ALTA. REG. 286/97                          MARKETING OF AGRICULTURAL PRODUCTS

                                            Table of Contents

                Definitions                                                              1
                Regulations made under section 26 of the Act                             2
                Regulations made under section 27(1) of the Act                          3
                Restrictions respecting authorization to make regulations                4
                Repeal                                                                   5
                Expiry                                                                   6

Definitions     1(1) In this Regulation,

                    (a) “Act” means the Marketing of Agricultural Products Act;

                    (b) “Board” means the Alberta Sugar Beet Growers referred to in
                        section 7 of the Plan;

                    (c) “Plan” means the Sugar Beet Marketing Plan Regulation (AR
                        275/97);

                    (d) “producer” means a producer as defined in the Plan.

                (2) Words not defined in this Regulation but that are used in this
                Regulation and that are defined in the Plan have the same meaning as
                defined in the Plan.

Regulations     2 For the purposes of enabling the Board to operate the Plan, the Board
made under
section 26 of
                is, subject to any condition or restriction imposed under section 4 of this
the Act         Regulation, hereby authorized under section 26 of the Act to make
                regulations

                    (a) requiring producers engaged in the production or marketing, or
                        both, of sugar beets to register their names and addresses with
                        the Board;

                    (b) requiring any person who produces, markets or processes sugar
                        beets to furnish to the Board any information or record relating
                        to the production, marketing or processing of sugar beets that
                        the Board considers necessary;

                    (c) requiring persons to be licensed under the Plan before they
                        become engaged in the production, marketing and processing,
                        or any one or more of those functions, of sugar beets;

                    (d) prohibiting persons from engaging in the production, marketing
                        or processing, as the case may be, of sugar beets except under
                        the authority of a licence issued under the Plan;

                    (e) governing the issuance, suspension or cancellation of a licence
                        issued under the Plan;

                     (f) providing for


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ALTA. REG. 286/97                         MARKETING OF AGRICULTURAL PRODUCTS

                            (i) the assessment, charging and collection of service
                                charges and licence fees, as the case may be, from
                                producers from time to time for the purposes of the Plan,
                                and

                           (ii) the taking of legal action to enforce payment of the
                                service charges and licence fees, as the case may be;

                    (g) requiring any person who receives sugar beets from a producer

                            (i) to deduct from the money payable to the producer any
                                service charges, licence fees or levies, as the case may
                                be, payable by the producer to the Board, and

                           (ii) to forward the amount deducted to the Board;

                    (h) providing for the use of any class of service charges, levies or
                        other money payable to or received by the Board for the
                        purpose of paying its expenses and administering the Plan and
                        the regulations made by the Board;


                    (i) permitting the Board to exercise any one or more of the powers
                        that are vested in a co-operative association under the
                        Co-operative Associations Act.

Regulations     3 For the purposes of enabling the Board to operate the Plan, the Board,
made under
section 27(1)
                subject to any condition or restriction imposed under section 4 of this
of the Act      Regulation, is hereby authorized under section 27(1) of the Act to make
                regulations

                    (a) requiring that the production or marketing, or both, of sugar
                        beets be conducted pursuant to a quota;

                    (b) governing

                            (i) the fixing and allotting of quotas,

                           (ii) the increase or reduction of quotas,

                          (iii) the cancelling of quotas, and

                           (iv) the refusal to fix and allot quotas,

                        to producers for the production or marketing, or both, of sugar
                        beets on any basis that the Board considers appropriate;

                    (c) governing the transferability or non-transferability of quotas
                        and prescribing the conditions and procedures applicable to the
                        transfer of quotas, if any, that the Board considers appropriate;

                    (d) establishing



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ALTA. REG. 286/97                        MARKETING OF AGRICULTURAL PRODUCTS

                            (i) a formula for determining the amount of sugar beets
                                deemed to have been produced or marketed by a
                                producer, and

                           (ii) the period of time in respect of which the formula is to
                                be applied,

                        for the purposes of determining the amount of sugar beets
                        produced or marketed by a producer during a period of time;

                    (e) providing for

                            (i) the assessment, charging and collection of a levy from
                                any producer whose production or marketing, or both, of
                                sugar beets is in excess of the quota that has been fixed
                                and allotted to that producer, and

                           (ii) the taking of legal action to enforce payment of the levy;

                    (f) directing, controlling or prohibiting, as the case may be, the
                        production or marketing, or both, of sugar beets or any class,
                        variety, size, grade or kind of sugar beets in such manner as the
                        Board considers appropriate;

                    (g) regulating and controlling the production or marketing, or both,
                        of sugar beets, including the times and places at which sugar
                        beets may be produced or marketed;

                    (h) providing

                            (i) for the operation of one or more pools for the
                                distribution of all money payable to the producers from
                                the sale of sugar beets, and

                           (ii) for the deduction of reasonable and proper
                                disbursements and expenses with respect to the
                                operation of the pool;

                    (i) providing for the collection from any person by legal action of
                        money owing to a producer for sugar beets;

                    (j) prohibiting a person to whom a quota has not been fixed and
                        allotted for the production or marketing, or both, of sugar beets
                        from producing or marketing, as the case may be, any sugar
                        beets;

                    (k) prohibiting a producer to whom a quota has been fixed and
                        allotted for the production or marketing, or both, of sugar beets
                        from producing or marketing, as the case may be, any sugar
                        beets in excess of that quota;

                    (l) prohibiting any person from purchasing or otherwise acquiring
                        any sugar beets from a producer that are in excess of the quota



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ALTA. REG. 286/97                           MARKETING OF AGRICULTURAL PRODUCTS

                           that has been fixed and allotted to the producer for the
                           production or marketing, or both, of sugar beets;

                      (m) prohibiting any person from purchasing or otherwise acquiring
                          any sugar beets from a person to whom a quota has not been
                          fixed and allotted for the production or marketing, or both, of
                          sugar beets;

                       (n) prohibiting any person from marketing or processing any sugar
                           beets that have not been sold by or through the Board or a
                           designated agency.

Restrictions       4 The following conditions or restrictions are imposed with respect to
respecting
authorization to
                   regulations made by the Board under sections 26 and 27(1) of the Act:
make
regulations            (a) with respect to a regulation made pursuant to the authority
                           referred to in section 2(f) of this Regulation, a regulation shall
                           not be submitted to the Registrar of Regulations for filing unless
                           the amount of service charges fixed or imposed by the
                           regulation has been approved by

                               (i) a vote of the registered producers in general meeting, or

                              (ii) the Council;

                       (b) with respect to a regulation made pursuant to the authority
                           referred to in section 2(g) and (h) of this Regulation, a
                           regulation may be made only with respect to service charges
                           and licence fees;

                       (c) with respect to a regulation made pursuant to the authority
                           referred to in section 3(n) of this Regulation, a regulation may
                           be made only with respect to sugar beets sold through the Board
                           or a designated agency.

Repeal             5 The Sugar Beet Marketing Plan Implementation Regulation (AR
                   2/91) is repealed.

Expiry             6 For the purpose of ensuring that this Regulation is reviewed for
                   ongoing relevancy and necessity, with the option that it may be repassed
                   in its present or an amended form following a review, this Regulation
                   expires on December 31, 2002.




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ALTA. REG. 287/97                       MARKETING OF AGRICULTURAL PRODUCTS



                              ------------------------------

                            Alberta Regulation 287/97

                    Marketing of Agricultural Products Act

       SUGAR BEET PRODUCTION AND MARKETING REGULATION

                                                               Filed: December 19, 1997

Made by the Alberta Sugar Beet Growers’ Marketing Board pursuant to sections 26 and
27 of the Marketing of Agricultural Products Act.

                                          Table of Contents

              Definitions                                                           1
              Application                                                           2

                                               Part 1
                              Registration and Licensing of Producers

              Prohibition re production and marketing                               3
              Application for registration                                          4
              List of producers registered                                          5
              Producer’s licence                                                    6
              List of licensed producers                                            7
              Authority of producer’s licence                                       8
              Disposal of licence prohibited                                        9
              Cancellation, suspension and refusal                                 10
              Reinstatement                                                        11

                                               Part 2
                                         Processor’s Licence

              Application for licence                                              12
              Granting of licence                                                  13
              Authority of licence                                                 14
              Disposal of licence prohibited                                       15
              Cancellation, suspension and refusal                                 16
              Reinstatement                                                        17
              Dual licensing                                                       18

                                              Part 3
                            Service Charges, Legal Actions and Records

              Service charges                                                      19
              Legal action                                                         20
              Records                                                              21

                                                 Part 4
                                                 Quota

              Allotting of quota                                                   22

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ALTA. REG. 287/97                        MARKETING OF AGRICULTURAL PRODUCTS

              Persons to be considered for quota                                   23
              Quota allotment                                                      24
              Authority of quota                                                   25
              Quota certificate                                                    26
              Quota decrease                                                       27
              Quota increase                                                       28
              Section 39 quota                                                     29
              Allowed quota variation                                              30
              Application not to produce and market                                31
              Restrictions on changes in quota                                     32
              Disposal of quota prohibited                                         33
              Sale of land                                                         34
              Family transfers                                                     35
              Assignment of quota                                                  36
              Change to different land                                             37
              Jointly held quota                                                   38
              Reduction, cancellation and suspension of quota                      39

                                                Part 5
                                               General

              Negotiations                                                         40
              Delivery of sugar beets                                              41
              Determination of price                                               42
              Expenses of the Board                                                43
              Orders and directions                                                44
              Notice                                                               45
              Notice of changes                                                    46
              Prohibitions                                                         47

                                               Part 6
                        Transitional, Repeal, Expiry and Coming into Force

              Producer’s registration, licence, quota continued                    48
              Processor’s licence continued                                        49
              Repeal                                                               50
              Expiry                                                               51
              Coming into force                                                    52



Definitions   1(1) In this Regulation,

                    (a) “Act” means the Marketing of Agricultural Products Act;

                    (b) “actively engaged” means

                           (i) a person whose quota on February 4, 1991 was attached
                               to land that the person or the person’s family owns and
                               that owner has and continues to own the land that the
                               quota is attached to, and

                          (ii) a person who, in the opinion of the Board, is the major
                               risk taker in connection with the profit and loss to be

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ALTA. REG. 287/97                        MARKETING OF AGRICULTURAL PRODUCTS

                               received or suffered in connection with the production
                               and marketing of the regulated product if the person also
                               meets 2 out of the 3 following criteria:

                               (A) the person owns the land to which the quota is
                                   attached;

                               (B) the person supplies the equipment necessary for the
                                   production and marketing of the regulated product;

                               (C) the person is the primary operator and otherwise
                                   supplies the labour necessary for the production and
                                   marketing of the regulated product;

                              but does not include

                          (iii) a person who receives a predetermined or fixed amount
                                from the sale of the regulated product from another
                                person other than the processor, nor

                          (iv) a person who, in the opinion of the Board, is not
                               primarily responsible for the production and marketing
                               of the regulated product;

                    (c) “Company” means Rogers Sugar Ltd.;

                    (d) “contract” means the annual sugar beet contract between a
                        producer and a processor;

                    (e) “family” includes a spouse, child, parent, sibling, grandparent,
                        grandchild, son-in-law, daughter-in-law, father-in-law,
                        mother-in-law, sister-in-law or brother-in-law

                           (i) of the producer, if the producer is an individual,

                           (ii) of the majority shareholder of the corporation, if the
                                producer is a corporation, or

                          (iii) of a partner in the partnership, if the producer is a
                                partnership;

                    (f) “licensed processor” means a processor to whom a processor’s
                        licence has been granted under this Regulation;

                    (g) “new producer” means a person who at the time the Board
                        intends to allot quota

                           (i) does not hold a quota,

                           (ii) does not hold quota jointly with another person,

                          (iii) is not a shareholder in a corporation that holds quota,

                          (iv) is not the spouse of a person who holds quota, and

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ALTA. REG. 287/97                        MARKETING OF AGRICULTURAL PRODUCTS

                           (v) is at least 18 years of age;

                    (h) “person” means a person as defined in the Interpretation Act
                        and includes

                           (i) a partnership as defined in the Partnership Act,

                           (ii) any unincorporated organization that is not a partnership
                                referred to in subclause (i), and

                          (iii) any group of individuals that is carrying on an activity
                                for a common purpose and is neither a partnership
                                referred to in subclause (i) nor an unincorporated
                                organization referred to in subclause (ii);

                    (i) “Plan” means the Sugar Beet Marketing Plan;

                    (j) “producer’s licence” means a licence granted under section 6;

                    (k) “quota” means the acreage from which a producer may produce
                        the regulated product;

                    (l) “quota certificate” means a quota certificate issued under
                        section 26;

                 (m) “regulated product” means sugar beets produced for processing;


                    (n) “spouse” of an individual means a person of the opposite sex

                           (i) who is married to the individual, or

                           (ii) who is cohabiting with the individual in a conjugal
                                relationship and

                               (A) has so cohabited for a period of at least one year, or

                               (B) is a parent of the child of whom the individual is a
                                   parent.

              (2) Words defined in the Act and the Plan have the same meaning in this
              Regulation.

Application   2 This Regulation applies

                    (a) to all persons who produce sugar beets or market sugar beets, or
                        both, in Alberta through processors, or to new producers who
                        propose to produce sugar beets or market sugar beets, or both,
                        in Alberta through processors, and

                    (b) to processors who process sugar beets produced on land
                        contained within Alberta,



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ALTA. REG. 287/97                           MARKETING OF AGRICULTURAL PRODUCTS

                  except to a person who has been exempted by the Board from a
                  regulation, order or direction made in respect of this Regulation.


                                                   PART 1

                       REGISTRATION AND LICENSING OF PRODUCERS

Prohibition re    3 No person shall produce or market the regulated product in Alberta
production and
marketing
                  through a processor unless that person is a registered producer and holds
                  a producer’s licence.

Application for   4(1) Every person who wishes to become registered with the Board as
registration      a producer must apply to the Board for registration by providing to the
                  Board, on a form prescribed by it, the following information:

                      (a) the name, telephone number and mailing address of the
                          applicant;

                      (b) the legal description of the land on which the applicant intends
                          to produce the regulated product;

                      (c) a description of the experience of the applicant in producing and
                          marketing the regulated product;

                      (d) a description of the equipment to be used in the production and
                          marketing of the regulated product;

                      (e) proof satisfactory to the Board that,

                              (i) in the case of an applicant who is an individual, the
                                  applicant is a Canadian citizen or lawfully admitted to
                                  Canada for permanent residence,

                             (ii) in the case of an applicant that is a partnership or a
                                  corporation,

                                 (A) at least 50% of the partners in the partnership or the
                                     members or shareholders of the corporation are
                                     persons who are Canadian citizens or lawfully
                                     admitted to Canada for permanent residence, and

                                  (B) at least 50% of the beneficial ownership of the
                                      partnership or corporation is held by persons who
                                      are Canadian citizens or lawfully admitted to
                                      Canada for permanent residence,

                                 or

                             (iii) in the case of an applicant that is




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ALTA. REG. 287/97                       MARKETING OF AGRICULTURAL PRODUCTS

                              (A) an unincorporated organization other than a
                                  partnership, or

                              (B) a group of individuals that is carrying on an activity
                                  for a common purpose and is neither a partnership
                                  nor an unincorporated organization referred to in
                                  paragraph (A),

                               at least 50% of the members of the unincorporated
                               organization or of the group of individuals are persons
                               who are Canadian citizens or lawfully admitted to
                               Canada for permanent residence;

                    (f) any other relevant information that the Board may require to
                        make a decision on the application.

             (2) The Board may consider an application only if there is quota
             available for the calendar year in which the application is received in the
             area in which the land referred to in subsection (1)(b) is located.

             (3) The Board must promptly notify an applicant of its decision on the
             application.

             (4) If the Board approves the application, the approval is conditional
             only and the Board shall not finally register the applicant as a producer
             until the applicant has been issued a producer’s licence and allotted a
             quota.

             (5) A conditional approval expires unless the applicant is issued a
             producer’s licence and allotted a quota in the calendar year in which the
             applicant’s application is received.

List of      5 The Board must establish and maintain, at its head office, a list of
producers
registered
             persons who have been registered as producers and must assign a
             registration number to each such person.

Producer’s   6(1) The Board must consider for a producer’s licence any person whose
licence      application for registration as a producer has been conditionally
             approved under section 4.

             (2) The Board must promptly notify an applicant under subsection (1)
             of its decision on whether or not to approve the issuing of a producer’s
             licence to the applicant.

             (3) The Board may approve the issuing of a producer’s licence to an
             applicant under subsection (1) if, in the Board’s opinion, the applicant

                    (a) is sufficiently experienced and has the equipment necessary to
                        produce and market regulated product that is of good quality,
                        and




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ALTA. REG. 287/97                            MARKETING OF AGRICULTURAL PRODUCTS

                       (b) is the registered owner of, or has an interest in, land that is
                           suitable for the production of the regulated product.

                   (4) If the Board approves the issuing of a producer’s licence the
                   approval is conditional only and the Board shall not finally issue a
                   producer’s licence until the applicant has been allotted a quota.

                   (5) A conditional approval expires unless the applicant is allotted a
                   quota in the calendar year in which the Board makes its decision under
                   subsection (2).

                   (6) A person must hold a separate producer’s licence for each quota
                   allotted to that person by the Board.

                   (7) A person holds a producer’s licence until it is cancelled or suspended
                   by the Board.

List of licensed   7 The Board must establish and maintain at its head office a list of
producers          licensed producers and must assign a licence number to each licence held
                   by a producer.

Authority of       8 A producer’s licence is authority for the person to whom the licence
producer’s
licence
                   is granted to engage in the production and marketing of the regulated
                   product in Alberta on the land described in the licence and in accordance
                   with that person’s quota.

Disposal of        9(1) No person shall sell, transfer, assign or otherwise dispose of a
licence
prohibited
                   producer’s licence.

                   (2) If a producer’s licence is sold, transferred, assigned or otherwise
                   disposed of, it is void.

Cancellation,      10(1) The Board may refuse to grant a producer’s licence if
suspension
and refusal
                       (a) it is of the opinion that the person does not meet the
                           requirements of section 6(3),

                       (b) it is of the opinion that the person has contravened the Act, the
                           Plan, the regulations under the Act or an order or direction of
                           the Council or the Board,

                       (c) no quota is available for allotment, or

                       (d) it is of the opinion that, for any other reason, a licence should
                           not be granted.

                   (2) The Board may cancel or suspend a producer’s licence if it is of the
                   opinion that the licensee has contravened the Act, the Plan, the
                   regulations under the Act or an order or direction of the Council or the
                   Board.

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ALTA. REG. 287/97                           MARKETING OF AGRICULTURAL PRODUCTS

                  (3) The Board must promptly notify a person whose licence has been
                  cancelled or suspended.

                  (4) A person who receives a notice of cancellation or suspension under
                  this section must, on receipt of the notice, forthwith cease producing and
                  marketing the regulated product.

Reinstate-ment    11 The Board may remove the suspension of a producer’s licence if it
                  considers it appropriate to do so.


                                                  PART 2

                                       PROCESSOR’S LICENCE
Application for   12 Every person who wishes to process the regulated product must
licence           apply to the Board for a processor’s licence by providing to the Board,
                  on a form prescribed by it, the following information:

                      (a) the name, telephone number and mailing address of the
                          processor;

                      (b) the address of the processor, if it is not the mailing address;

                      (c) any other relevant information the Board may require to make
                          a decision on the application.

Granting of       13 The Board may issue a processor’s licence to an applicant if it is
licence
                  satisfied that it is appropriate to do so.

Authority of      14 A processor’s licence is authority for the processor to receive and
licence
                  process the regulated product in accordance with this Regulation.

Disposal of       15(1) No person shall sell, transfer, assign or otherwise dispose of a
licence
prohibited
                  processor’s licence.

                  (2) If a processor’s licence is sold, transferred, assigned or otherwise
                  disposed of, it is void.

Cancellation,     16(1) The Board may refuse to grant a processor’s licence or may cancel
suspension        or suspend a processor’s licence if it is of the opinion that the applicant
and refusal
                  or licensee has contravened the Act, the Plan, the regulations under the
                  Act or an order or direction of the Council or the Board.

                  (2) The Board must promptly notify a person whose application for a
                  processor’s licence has been refused or whose licence has been cancelled
                  or suspended.




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ALTA. REG. 287/97                          MARKETING OF AGRICULTURAL PRODUCTS

                 (3) A person who receives a notice of cancellation or suspension under
                 this section must, on receipt of the notice, forthwith cease receiving the
                 regulated product.

Reinstate-ment   17 The Board may remove the suspension of a processor’s licence if it
                 considers it appropriate to do so.

Dual licensing   18 If a person operates in the capacity of a processor and in the capacity
                 of a producer, this Regulation applies to that person in each capacity and
                 that person must hold both a processor’s licence and a producer’s
                 licence.


                                                 PART 3

                    SERVICE CHARGES, LEGAL ACTIONS AND RECORDS
Service          19(1) A processor who receives the regulated product from a producer
charges
                 must deduct from the first payment due to the producer a service charge
                 of $0.45 per tonne of the regulated product received and forward that
                 service charge to the Board.

                 (2) For the purposes of subsection (1), tonnage must be determined in
                 accordance with the master agreement referred to in section 40(1).

Legal action     20 The Board may collect by legal action,

                     (a) from a producer, all service charges payable by the producer
                         under this Regulation and not actually paid, and

                     (b) from any other person, all money owing to a producer for the
                         regulated product.

Records          21(1) During ordinary business hours, a processor must make available
                 for review by persons appointed by the Board records that bear directly
                 on the final settlement price to be paid to the producers for the regulated
                 product received by that processor including, without limitation, the
                 following records:

                     (a) sales records, including sales orders, invoices, books of
                         accounts and other records related to the sale of beet sugar,
                         including records relating to any other products resulting from
                         processing;

                     (b) disbursement records, including vouchers and books of
                         accounts related to shared expenses and other disbursements;

                     (c) vouchers and other evidence supporting charges and credits
                         received from related companies;


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ALTA. REG. 287/97                           MARKETING OF AGRICULTURAL PRODUCTS

                     (d) grower delivery records pertaining to the delivery of the
                         regulated product, records related to the processing of the
                         regulated product and other records necessarily required to
                         verify beet sugar and other products resulting from processing;

                     (e) other documentation that is considered necessary to determine
                         the final settlement price to be paid to producers for the
                         regulated product delivered to a processor;

                      (f) other documentation that is considered necessary to determine
                          the research costs to be paid by the Board in connection with a
                          joint project with the processor.

                 (2) Every person who produces or markets the regulated product must
                 furnish to the Board any relevant information or record relating to the
                 production or marketing of the regulated product that the Board
                 considers necessary, including, without limitation, information or
                 records related to soil testing, seeds, fertilizing, crop rotation, harvesting,
                 transportation and delivery and payment.


                                                   PART 4

                                                   QUOTA
Allotting of     22 A quota may only be allotted, varied, transferred, cancelled,
quota
                 suspended or reduced in accordance with this Regulation.

Persons to be    23(1) The Board must consider for a quota any person in respect of
considered for
quota
                 whom the Board has conditionally approved the issuing of a producer’s
                 licence under section 6.

                 (2) The Board must promptly notify a person as to its decision in respect
                 of the allotment of quota to that person.

                 (3) A person to whom a quota is allotted under this section must
                 immediately become actively engaged in the production and marketing
                 of the regulated product on the land to which the quota relates.

                 (4) If a quota is allotted under this section, that quota may not, until at
                 least 3 years have expired from the date of that allotment, be transferred
                 or allotted again.

                 (5) Notwithstanding subsection (4), the Board may authorize a quota to
                 which subsection (4) applies to be transferred or allotted again within the
                 3-year period if the Board is of the opinion that extenuating
                 circumstances exist that warrant that transfer or allotment.




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ALTA. REG. 287/97                         MARKETING OF AGRICULTURAL PRODUCTS

Quota          24 A quota must
allotment
                    (a) specify, by legal description, the land to which the quota is
                        attached, and

                    (b) name the producer in respect of whom the quota is allotted and
                        specify the quota.

Authority of   25 Subject to this Regulation, a quota is authority for the producer in
quota
               respect of whom the quota is allotted to produce the regulated product
               for processing in accordance with this Regulation from

                    (a) the number of acres, and

                    (b) the land

               specified in the quota.

Quota          26(1) When the Board allots a quota, it must issue to the producer a
certificate    quota certificate in a form prescribed by the Board.

               (2) A quota certificate must be issued annually and must

                    (a) name the producer in respect of whom the quota is allotted,

                    (b) specify, by legal description, the land on which the regulated
                        product may be produced in the calendar year,

                    (c) specify the quota variation, if any, for the calendar year,

                    (d) specify the quota, and

                    (e) contain any other information the Board considers relevant.

               (3) The Board may require a producer to make known to the Board all
               regulated product production and marketing intentions by January 15 of
               a particular year before issuing a quota certificate to the producer.

               (4) The Board must establish and maintain at its head office

                    (a) a copy of the quota certificates issued to producers, and

                    (b) a record of any additional quota issued under this Regulation.

               (5) The Board must send a copy of the list of quota certificates to the
               licensed processors as soon as practicable after the quota certificates are
               issued each year.

               (6) If additional quota is allotted after the date on which the list of quota
               certificates is mailed under subsection (5), the Board must promptly
               advise the licensed processors in writing of that fact.


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ALTA. REG. 287/97                         MARKETING OF AGRICULTURAL PRODUCTS

                 (7) If a producer is requested to do so by the processor, the producer’s
                 quota certificate must be presented to the processor for inspection.

Quota            27 If the total acreage requirement is decreased, the Board may, by
decrease         notice in writing to all producers, reduce producer’s quota as follows:

                     (a) first, the Board must apply the quota decrease to the available
                         but unallocated quota in all areas;

                     (b) second, the Board must decrease each producer’s quota by an
                         equal percentage.

Quota increase   28(1) If the total acreage requirement is increased, the Board may allot
                 that quota to applicants who currently hold a quota or to new producers
                 who propose to produce and market the regulated product.

                 (2) In considering to whom the quota should be allotted, the Board may,
                 without limitation, consider

                     (a) information the Board has received under section 26(3), and

                     (b) all applications conditionally approved under section 4.

                 (3) If the Board decides to allot the quota, the Board must allot it as
                 follows:

                     (a) first, the amount of quota offered in an area must be a
                         percentage equal to the percentage of quota presently in the area
                         as it relates to the overall quota of all areas;

                     (b) second, 25% of the quota must be offered to new producers in
                         the area;

                     (c) third, the quota remaining after allotment under clause (b) may
                         be offered to other producers in the area who currently hold a
                         quota and then subsequently offered to new producers in the
                         area;

                     (d) fourth, the quota remaining after allotment under clause (c) may
                         be offered in an equal percentage to producers in other areas,
                         including new producers.

Section 39       29 If quota becomes available pursuant to section 39, the Board must
quota
                 consider the following if the Board allots the quota:

                     (a) first, the amount of quota offered in an area must be a
                         percentage equal to the percentage of quota presently in the area
                         as it relates to the overall quota of all areas;

                     (b) second, 25% of the quota must be offered to new producers in
                         the area;

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                  THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 287/97                           MARKETING OF AGRICULTURAL PRODUCTS

                      (c) third, the quota remaining after allotment under clause (b) may
                          be offered to other producers in the area who currently hold a
                          quota and then subsequently offered to new producers in the
                          area;

                      (d) fourth, the quota remaining after allotment under clause (c) may
                          be offered in an equal percentage to producers in other areas,
                          including new producers.

Allowed quota     30 Notwithstanding sections 39(a)(iii) and 47(4) and (5), unless first
variation         authorized in writing by the Board, a producer may only produce and
                  market in any quota certificate period the regulated product from an
                  acreage that varies from the acreage stated in the quota certificate by no
                  more than 1½ acres or 2% of the acreage, whichever is greater.

Application not   31(1) A producer may apply to the Board in writing for authorization
to produce and
market
                  not to produce and market the regulated product in accordance with the
                  producer’s quota and this Regulation.

                  (2) Notwithstanding section 39(a)(ii), if a producer applies under
                  subsection (1), the Board may give the authorization without cancelling
                  or reducing the producer’s quota.

                  (3) An application under subsection (1) must be received by the Board
                  before June 30 of the year to which it relates.

                  (4) An authorization under subsection (2) may only be given in respect
                  of the particular year to which the application relates.

                  (5) In determining whether to give an authorization under subsection
                  (2), the Board must consider the following:

                      (a) the health of the applicant;

                      (b) the effect of any irrigation works within the meaning of the
                          Irrigation Act on the applicant’s ability to produce and market
                          the regulated product;

                      (c) any other factors the Board considers to be relevant.

Restrictions on   32 The Board shall not
changes in
quota
                      (a) approve increases in a quota,

                      (b) approve the transfer of a quota, or

                      (c) approve changes in the beneficial ownership of a corporation or
                          partnership pursuant to section 39(b),

                  if the approval would result in a producer holding a quota in excess of
                  2% of the total allotment of quota for Alberta.

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               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 287/97                        MARKETING OF AGRICULTURAL PRODUCTS


Disposal of    33(1) No person shall sell, buy, assign, transfer, lease or otherwise
quota
prohibited
               dispose of quota except in accordance with this Regulation.

               (2) If a quota is sold, bought, assigned, transferred, leased or disposed
               of otherwise than in accordance with this Regulation, the quota is void.

Sale of land   34(1) On the transfer, sale, foreclosure, quit claim or other disposition
               of any of the land in respect of which a quota has been allotted, the quota
               allotted in respect of that land automatically reverts to the Board and the
               Board may allot the quota to a prospective transferee or purchaser of the
               land if that person

                    (a) applies to the Board for allotment of the quota no later than 60
                        days after the completion of the transfer, sale, foreclosure, quit
                        claim or other disposition, and

                    (b) is a licensed producer or has applied under section 4 and is
                        eligible to become a licensed producer.

               (2) A person to whom a quota has been allotted under this section must
               immediately become actively engaged in the production and marketing
               of the regulated product on the land to which the quota relates.

               (3) A quota allotted under this section may, in the discretion of the
               Board, be allotted in the same or a smaller amount.

               (4) An application to the Board for an allotment of a quota under this
               section must be made jointly by the person disposing of the land and the
               person acquiring the land to which the quota relates.

               (5) The Board shall not approve an application under this section until
               the Board is satisfied that the transfer, sale, foreclosure, quit claim or
               other disposition has been completed.

               (6) When a quota is allotted under this section, that quota may not, until
               at least 3 years have expired from the date of that allotment, be
               transferred or allotted again.

               (7) Notwithstanding subsection (6), the Board may authorize a quota to
               which subsection (6) applies to be transferred or allotted again within
               that 3-year period if the Board is of the opinion that extenuating
               circumstances exist that warrant that transfer or allotment.

Family         35(1) The Board may approve an application by a producer to transfer
transfers      all or part of that producer’s quota to a family member without a
               corresponding transfer of the land in respect of which the quota is
               allotted if the proposed transferee is a licensed producer or has made
               application and is eligible to become a licensed producer.
               (2) A person to whom a quota is transferred under this section must
               immediately become actively engaged in the production and marketing
               of the regulated product.

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                 THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 287/97                          MARKETING OF AGRICULTURAL PRODUCTS

                 (3) If a quota is allotted pursuant to a transfer under this section, that
                 quota may not, until at least 3 years have expired from the date of that
                 allotment, be transferred or allotted again.

                 (4) Notwithstanding subsection (3), the Board may authorize a quota to
                 which subsection (3) applies to be transferred or allotted again within
                 that 3-year period if the Board is of the opinion that extenuating
                 circumstances exist that warrant that transfer or allotment.

Assignment of    36 If
quota
                     (a) a producer is allotted a quota but the quota relates to land that
                         the producer does not own, and

                     (b) the producer owns or subsequently acquires other land suitable
                         for production of the regulated product,

                 the producer must promptly apply to the Board to have the quota
                 assigned to that other land.

Change to        37 The Board may, on application by a producer, change the legal
different land   description in the quota from that of the land to which it was attached to
                 other land if the producer continues to produce and market the regulated
                 product pursuant to the quota.

Jointly held     38 A producer who has been allotted a quota jointly with another
quota            person or persons may apply to the Board to have all or a portion of the
                 quota allotted to the other person or persons who jointly hold the quota
                 with the producer, and the Board may allot the quota if it is satisfied that
                 it is appropriate to do so.

Reduction,       39 The Board may reduce, cancel or suspend a quota
cancellation
and
suspension of        (a) if the producer to whom the quota is allotted
quota
                             (i) contravenes the Act, the Plan, the regulations under the
                                 Act or an order or direction of the Council or the Board,

                             (ii) does not use, or voluntarily gives up, all or any part of
                                  the allotted quota during any quota certificate period,

                            (iii) markets the regulated product from an acreage in excess
                                  of the allotted quota,

                            (iv) has had the producer’s licence cancelled or suspended,

                             (v) is not the registered owner of all of the land to which the
                                 quota relates and ceases to be actively engaged in the
                                 production and marketing of the regulated product in
                                 respect of any portion of the quota, or

                                           - 1557 -
                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 287/97                        MARKETING OF AGRICULTURAL PRODUCTS

                           (vi) fails to become actively engaged in the production and
                                marketing of the regulated product as required by
                                section 23(3), 34(2) or 35(2),

                    (b) in the case of a quota allotted to a corporation or a partnership,
                        if there is a change in the beneficial ownership of the
                        corporation or partnership without the prior approval of the
                        Board, or

                    (c) in the case of a quota allotted to an unincorporated organization
                        other than a partnership, or to a group of individuals that is
                        carrying on an activity for a common purpose and is neither a
                        partnership nor an unincorporated organization, if there is a
                        change in the membership of the unincorporated organization
                        or group of individuals without the prior approval of the Board.



                                                PART 5

                                              GENERAL
Negotiations    40(1) The Board must negotiate with the processors, in accordance with
                regulations made by the Council, to determine the master agreement
                between the processors and the producers.

                (2) Subject to this Regulation, a producer may enter into a contract with
                a processor only after the conclusion of the negotiations referred to in
                subsection (1) and on receipt of a quota certificate issued by the Board.



Delivery of     41 A producer who produces or markets the regulated product must
sugar beets     comply with any written order or direction of the Board dealing with the
                time, place or manner in which the regulated product is to be delivered
                to the processor.

Determination   42 The Board may negotiate annually with the processors, as part of the
of price        master agreement, the amount of money to be paid by the processors to
                the producers for the regulated product and any product resulting from
                processing it, and that amount may be determined by means of a formula
                based on sugar content, tonnes produced and quality.



Expenses of     43 The Board may use the service charges, licence fees and money
the Board       resulting from investments and any other income earned by the Board for
                paying the Board’s expenses in carrying out and enforcing the
                regulations and in carrying out the purposes of the Plan.




                                         - 1558 -
               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 287/97                        MARKETING OF AGRICULTURAL PRODUCTS

Orders and     44 The Board may issue any orders and directions the Board considers
directions     to be necessary to carry out and enforce the regulations and to carry out
               the purposes of the Plan.

Notice         45 When a notice is required to be given under this Regulation

                    (a) by the Board, the Board must give notice in writing

                            (i) by mail sent to the last address filed with the Board by
                                the registered producer,

                           (ii) by electronic means sent to the last electronic address or
                                access number filed with the Board by the registered
                                producer, or

                           (iii) by personal service,

                      or

                    (b) to the Board, the person giving the notice must give notice in
                        writing

                            (i) by mail sent to the head office of the Board,

                           (ii) by electronic means sent to the electronic address or
                                access number of the Board, or

                           (iii) by personal service.

Notice of      46 If any change occurs in the information provided to the Board by a
changes
               producer or processor, that person must forthwith notify the Board of the
               change.

Prohibitions   47(1) No person shall sell, offer for sale or deliver the regulated product
               to any person other than a licensed processor.

               (2) No processor shall receive the regulated product from any person
               unless that person holds a producer’s licence, a quota, a quota certificate
               and a contract with the processor.

               (3) No person shall sell, buy, deliver or receive, or offer to sell, buy,
               deliver or receive the regulated product except in accordance with this
               Regulation or on terms other than those negotiated by the Board and the
               processors or fixed by an arbitrator pursuant to regulations made by the
               Council.

               (4) No producer shall market the regulated product from acreage in
               excess of that contracted for with the processor.




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                 THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 287/97                         MARKETING OF AGRICULTURAL PRODUCTS

                 (5) No processor shall receive from a producer, or pay a producer for,
                 regulated product delivered from acreage that is in excess of that
                 specified in the producer’s quota certificate.

                 (6) Except as permitted by this Regulation, no person shall purchase or
                 otherwise acquire the regulated product from a producer

                     (a) if that regulated product was grown on land in respect of which
                         no quota was allotted under this Regulation, or

                     (b) if no quota is allotted under this Regulation in respect of that
                         producer.

                 (7) No producer shall produce or market the regulated product on land
                 other than the land described in the producer’s quota certificate.

                 (8) No person shall produce or market the regulated product unless that
                 person holds a producer’s licence, a quota, a quota certificate and a
                 contract with the processor.

                 (9) No person shall buy or receive the regulated product unless that
                 person holds a processor’s licence.
                                                PART 6

                                TRANSITIONAL, REPEAL, EXPIRY
                                   AND COMING INTO FORCE
Producer’s       48 On the coming into force of this Regulation, the registration of a
registration,
licence, quota
                 producer, a producer’s licence and a quota under the Sugar Beet
continued        Production and Marketing Regulation (AR 36/91) continue under this
                 Regulation.

Processor’s      49 The processor’s licence issued to the Company under the Sugar Beet
licence
continued
                 Production and Marketing Regulation (AR 36/91) is continued.

Repeal           50 The Sugar Beet Production and Marketing Regulation (AR 36/91)
                 is repealed.

Expiry           51 For the purpose of ensuring that this Regulation is reviewed for
                 ongoing relevancy and necessity, with the option that it may be repassed
                 in its present or an amended form following a review, this Regulation
                 expires on December 31, 2002.

Coming into      52 This Regulation comes into force on January 1, 1998.
force




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               THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 287/97                       MARKETING OF AGRICULTURAL PRODUCTS



                              ------------------------------

                            Alberta Regulation 288/97

                           Municipal Government Act

              EDUCATION REQUISITION CALCULATION FORM
                      AMENDMENT REGULATION

                                                               Filed: December 22, 1997

Made by the Minister of Municipal Affairs (M.O. L:270/97) pursuant to section 604(d) of
the Municipal Government Act.

               1 The Education Requisition Calculation Form Regulation
               (AR 312/96) is amended by this Regulation.


               2 Section 3 is amended by striking out “1997” wherever it
               occurs and substituting “1998”.


               3 The Schedule is repealed and the attached Schedule is
               substituted:




                                        - 1561 -
                                                                  SCHEDULE
                                                   EDUCATION REQUISITION CALCULATION FORM
                                                      MUNICIPALITY NAME:
                                                                                                                                                                                                                                4




           The following tables are to be used to calculate live property tax rates to be applied on municipal tax notices and must be
           submitted to Municipal Affairs by Oct. 31, 1998.
                                                                                                                                                                                                          ALTA. REG. 288/97




                          Calculation of the Alberta School Foundation Fund (ASFF) Tax Rates (Expressed in Mills)

           Assessment Class          1998 ASFF          Plus 1997 Underlevies         Total 1998 Levy       Live                Property Tax
                                     Requisition        and Minus 1997                [(1) + (2) = (3)]     Assessment2         Rate [((3)/(4))
                                     (1)                Overlevies1 (2)                                     (4)                 x 1000]

           Residential and
           Farmland




- 1562 -
           Non-Residential

           Linear

           Machinery and
           Equipment

           Total
           1
             Municipal Government Act - section 359(3) - “If in any year the property tax imposed to pay the requisitions results in too much or
           too little revenue being raised for that purpose, the council must accordingly reduce or increase the amount of revenue to be raised
                                                                                                                                                                                                                                                                                                            THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998




           for that purpose in the next year.”
           2
             Live Assessment is the total taxable assessment on the municipality’s assessment roll which is subject to the ASFF levy. It includes
           grant-in-lieu properties and special franchise properties. This live assessment should exclude the declared assessment of any opted
           out school boards.
                                                                                                                                                                                                          MUNICIPAL GOVERNMENT
                                                                                                                                                    6
                                                                                                                                                                                                                                6
                                                                                                                                                                                                                       4
                                                                                                                                                                                                 ALTA. REG. 288/97




                               Calculation of the Opted Out School Jurisdiction Tax Rates (Expressed in Mills)

           Assessment Class      1998           Plus 1997             Total 1998        Live Assessment (Declared        Property Tax
                                 Requisition    Underlevies and       Levy [(1) +       live assessment of any opted     Rate [((3)/(4))
                                 (1)            Minus 1997            (2) = (3)]        out school boards) (4)           x 1000]
                                                Overlevies1 (2)

           Residential and
           Farmland




- 1563 -
           Non-Residential

           Machinery and
           Equipment

           Total
           1
            Municipal Government Act - section 359(3) - “If in any year the property tax imposed to pay the requisitions results in too
           much or too little revenue being raised for that purpose, the council must accordingly reduce or increase the amount of
           revenue to be raised for that purpose in the next year.”
                                                                                                                                                                                                                                                                                                   THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


                                                                                                                                                                                                 MUNICIPAL GOVERNMENT
                                                                                                                                           6
                                                                                                                                                                                                                       6
                  THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998




                               Alberta Regulation 289/97

                               Municipal Government Act

                 COMMUNITY ORGANIZATION 1998 PROPERTY TAX
                          EXEMPTION REGULATION

                                                                 Filed: December 22, 1997

Made by the Minister of Municipal Affairs (M.O. L:278/97) pursuant to section 370 of the
Municipal Government Act.

                                             Table of Contents

                  Interpretation                                                      1

                                                  Part 1
                                               General Rules

                  Application                                                         2
                  Part of a property                                                  3
                  Primary use of property                                             4
                  Holding property                                                    5
                  Non-profit organization                                             6
                  Meaning of restricted                                               7
                  Liquor licences                                                     8

                                                 Part 2
                                     Qualifications for Exemptions
                                     under Section 362(n)(ii) to (iv)

                  Exemption under section 362(n)(ii) of the Act                       9
                  Exemption under section 362(n)(iii) of the Act                     10
                  Exemption under section 362(n)(iv) of the Act                      11

                                                 Part 3
                                      Other Property Exempt under
                                             Section 362(n)

                  Definitions                                                        12
                  Exemption for other property                                       13
                  Day cares, museums and other facilities                            14
                  Conditions for exemption                                           15
                  Retail commercial areas                                            16

                                                   Part 4
                                                   Repeal

                  Repeal                                                             17

Interpretation    1(1) In this Regulation,

                      (a) “Act” means the Municipal Government Act;


                                            - 1564 -
                 THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 289/97                                               MUNICIPAL GOVERNMENT

                     (b) “charitable or benevolent purpose” means the relief of poverty,
                         the advancement of education, the advancement of religion or
                         any other purpose beneficial to the community;

                     (c) “general public” means pertaining to the general community,
                         rather than a group with limited membership or a group of
                         business associates;

                     (d) “professional sports franchise” means a professional sports
                         franchise operating in the National Hockey League, the
                         Canadian Football League, the National Professional Soccer
                         League or the Pacific Coast League;

                     (e) “taxation” means taxation under Division 2 of Part 10 of the
                         Act.

                 (2) The definitions in sections 1 and 284 of the Act apply to this
                 Regulation.


                                                  PART 1

                                           GENERAL RULES
Application      2 This Regulation applies to taxation in 1998.

Part of a        3 An exemption under section 362(n)(i) to (iv) of the Act or Part 3 of
property
                 this Regulation applies only to the part of a property that qualifies for the
                 exemption.

Primary use of   4(1) Property is not exempt from taxation under section 362(n)(iii) or
property         (iv) of the Act or Part 3 of this Regulation unless the property is
                 primarily used for the purpose or use described in those provisions.

                 (2) For the purposes of this Regulation, a property is primarily used for
                 a purpose or use if the property is used for the specified purpose or use
                 at least 60% of the time that the property is in use.

Holding          5 When section 362(n)(i) to (iv) of the Act or Part 3 of this Regulation
property
                 exempts property from taxation if a non-profit organization holds that
                 property, the property is not exempt unless

                     (a) the organization is the owner of the property and the property is
                         not subject to a lease, licence or permit, or

                     (b) the organization holds the property under a lease, licence or
                         permit.




                                           - 1565 -
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ALTA. REG. 289/97                                               MUNICIPAL GOVERNMENT

Non-profit        6 When section 362(n)(i) to (iv) of the Act or this Regulation exempts
organization      property from taxation if a non-profit organization holds the property,
                  the property is not exempt unless

                      (a) the organization is a society incorporated under the Societies
                          Act, or

                      (b) the organization is

                              (i) a corporation incorporated in any jurisdiction, or

                             (ii) any other entity established under a federal law or law of
                                  Alberta

                           that is prohibited, by the laws of the jurisdiction governing its
                           formation or establishment, from distributing income or
                           property to its shareholders or members during its existence.

Meaning of        7(1) In this Regulation, a reference to the use of property being
restricted
                  restricted means, subject to subsections (2) and (3), that individuals are
                  restricted from using the property on any basis, including a restriction
                  based on

                      (a) race, culture, ethnic origin or religious belief,

                      (b) the ownership of property,

                      (c) the requirement to pay fees of any kind, other than minor
                          entrance or service fees, or

                      (d) the requirement to become a member of an organization.

                  (2) The requirement to become a member of an organization does not
                  make the use of the property restricted so long as

                      (a) membership in the organization is not restricted on any basis,
                          other than the requirement to fill out an application and pay a
                          minor membership fee, and

                      (b) membership occurs within a short period of time after any
                          application or minor fee requirement is satisfied.

                  (3) Not permitting an individual to use a property for safety or liability
                  reasons or because the individual’s use of the property would contravene
                  a law does not make the use of the property restricted.

Liquor licences   8 For the purposes of section 365(2) of the Act, property in respect of
                  which a Class C liquor licence or a special event licence is issued under
                  the Gaming and Liquor Regulation (AR 143/96) is exempt from taxation
                  if



                                           - 1566 -
                    THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 289/97                                                 MUNICIPAL GOVERNMENT

                        (a) the property is held by a non-profit organization and used solely
                            for community games, sports, athletics or recreation for the
                            benefit of the general public and meets the requirements of
                            section 9 of this Regulation, or

                        (b) the property is used for a charitable or benevolent purpose that
                            is for the benefit of the general public, meets the ownership
                            requirements of section 362(n)(iii) of the Act and meets the
                            requirements of section 10 of this Regulation.


                                                    PART 2

                                 QUALIFICATIONS FOR EXEMPTIONS
                                  UNDER SECTION 362(n)(ii) TO (iv)
Exemption           9(1) The following property is not exempt from taxation under section
under section       362(n)(ii) of the Act:
362(n)(ii) of the
Act
                        (a) property to the extent that it is used in the operation of a
                            professional sports franchise;

                        (b) property that is used solely for community games, sports,
                            athletics or recreation if, for more than 40% of the time that the
                            property is in use, the majority of those participating in the
                            activities are 18 years of age or older.

                    (2) Property is not exempt from taxation under section 362(n)(ii) of the
                    Act if, for more than 30% of the time that the property is in use, the use
                    of the property is restricted within the meaning of section 7.

                    (3) Subsection (2) does not apply to the restriction referred to in
                    subsection (1)(b).

Exemption           10(1) Property referred to in section 362(n)(iii) of the Act is not exempt
under section
362(n)(iii) of
                    from taxation unless
the Act
                        (a) the charitable or benevolent purpose for which the property is
                            primarily used is a purpose that benefits the general public in
                            the community in which the property is located, and

                        (b) the resources of the non-profit organization that holds the
                            property are devoted chiefly to the charitable or benevolent
                            purpose for which the property is used.

                    (2) Property is not exempt from taxation under section 362(n)(iii) of the
                    Act if, for more than 30% of the time that the property is in use, the use
                    of the property is restricted within the meaning of section 7.




                                             - 1567 -
                THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 289/97                                            MUNICIPAL GOVERNMENT


Exemption       11 Property referred to in section 362(n)(iv) of the Act is not exempt
under section
362(n)(iv) of
                from taxation unless the accommodation provided to senior citizens is
the Act         subsidized accommodation as defined in the General Regulation (AR
                213/94).


                                                PART 3

                                  OTHER PROPERTY EXEMPT
                                    UNDER SECTION 362(n)
Definitions     12 In this section,

                    (a) “arts” means theatre, literature, music, painting, sculpture or
                        graphic arts and includes any other similar creative or
                        interpretive activity;

                    (b) “chamber of commerce” means a chamber of commerce that is
                        a non-profit organization and is a member of the Alberta
                        Chamber of Commerce;

                    (c) “community association” means an organization where
                        membership is voluntary, but restricted to residents of a specific
                        area, and that is formed for the purpose of

                            (i) enhancing the quality of life for residents of the area or
                                enhancing the programs, public facilities or services
                                provided to the residents of the area, or

                           (ii) providing non-profit sporting, educational, social,
                                recreational or other activities to the residents of the
                                area;

                    (d) “ethno-cultural association” means an organization formed for
                        the purpose of serving the interests of a community defined in
                        terms of the cultural, ethnic, national or linguistic origins or
                        interests of its members;

                    (e) “museum” means a facility that is established for the purpose of
                        conserving, studying, interpreting, assembling and exhibiting,
                        for the instruction and enjoyment of the general public, art,
                        objects or specimens of educational and cultural value or
                        historical, technological, anthropological, scientific or
                        philosophical inventions, instruments, models or designs;

                    (f) “retail commercial area” means property used to sell food,
                        beverages, merchandise or services;

                    (g) “sheltered workshop” means a facility designed to provide an
                        occupation for and to promote the adjustment and rehabilitation
                        of persons who would otherwise have difficulty obtaining



                                         - 1568 -
                   THE ALBERTA GAZETTE, PART II, JANUARY 15, 1998


ALTA. REG. 289/97                                                MUNICIPAL GOVERNMENT

                           employment because of physical, mental or developmental
                           disabilities;

                       (h) “thrift shop” means a retail outlet operated for a charitable or
                           benevolent purpose that sells donated clothing, appliances,
                           furniture, household items and other items of value at a nominal
                           cost to people in need.

Exemption for      13 This Part describes property that is exempt from taxation under
other property
                   section 362(n) of the Act that is not exempt under section 362(n)(i) to
                   (iv) of the Act.

Day cares,         14 A non-profit organization that holds property on which any of the
museums and        following facilities are operated may apply to the municipality within
other facilities
                   whose area the property is located for an exemption from taxation:

                       (a) a facility used for sports or recreation to the extent that the
                           facility is not used in the operation of a professional sports
                           franchise;

                       (b) a facility located outside of Calgary or Edmonton that is
                           operated and used by a community association;

                       (c) a facility located in Calgary or Edmonton that is operated and
                           used by a community association that is a member of the
                           Federation of Calgary Communities or the Edmonton
                           Federation of Community Leagues;

                       (d) a facility used for fairs or exhibitions, including agricultural
                           exhibitions;

                       (e) a facility used for the arts or a museum;

                       (f) a facility used for the care and supervision of children and that
                           is

                               (i) a day care facility as defined in the Day Care Regulation
                                   (AR 333/90), and

                              (ii) licensed under that Regulation;

                       (g) a facility used by an ethno-cultural association for sports,
                           recreation or education or for charitable or other benevolent
                           purposes if

                               (i) the use of the property by the general public is actively
                                   encouraged, and

                              (ii) a sign is prominently posted in the facility indicating the
                                   hours that the whole or part of the facility is accessible
                                   to the public;


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ALTA. REG. 289/97                                               MUNICIPAL GOVERNMENT

                     (h) a facility in a municipality operated and used by an organization
                         formed for a charitable or benevolent purpose where the
                         majority of the organization’s beneficiaries do not reside in the
                         municipality;

                      (i) a facility used as a thrift shop;

                      (j) a facility used as a sheltered workshop;

                     (k) a facility operated and used by a chamber of commerce.

Conditions for   15(1)A municipality must grant a non-profit organization an exemption
exemption        from taxation in respect of property referred to in section 14 that is held
                 by the organization if

                     (a) the non-profit organization makes an application for an
                         exemption to the municipality by April 30, 1998 and supplies
                         the municipality with the following by May 31, 1998:

                              (i) any information the municipality requires to determine
                                  if the organization meets the conditions for the
                                  exemption, and

                             (ii) a description of any retail commercial areas in the
                                  facility,

                     (b) the facility on the property is one of the facilities described in
                         section 14 and the non-profit organization operates the facility
                         on a non-profit basis,

                     (c) the facility on the property or any retail commercial area in the
                         facility does not provide significant competition with one or
                         more taxable businesses in the municipality or surrounding area,

                     (d) the funds of the non-profit organization are chiefly used for the
                         purposes of the organization and not for the benefit of the
                         organization’s directors and employees,

                     (e) the municipality is satisfied that the operations of the non-profit
                         organization on the property provide significant benefits,

                      (f) the property is not disqualified by virtue of subsection (2) or
                          (3), and

                     (g) the requirements of subsections (4) and (5), if applicable, are
                         met.

                 (2) Property referred to in section 14(1)(a) to (e), (g) or (k) is not exempt
                 from taxation if, for more than 30% of the time that the property is in
                 use, the use of the property is restricted within the meaning of section 7.




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ALTA. REG. 289/97                                           MUNICIPAL GOVERNMENT

             (3) Property referred to in section 14(1)(f) or (h) to (j) is not exempt
             from taxation if an individual is not permitted to use the property
             because of the individual’s race, culture, ethnic origin or religious belief.

             (4) Before granting an exemption under this section in respect of a
             property that is held by a non-profit organization, the municipality may
             require that an agreement between the organization and the municipality
             be in force that sets out that

                    (a) the organization will provide the municipality with a report by
                        a time and in a manner specified in the agreement that sets out
                        the information the municipality requires to determine if the
                        organization met the conditions for the exemption during 1998,
                        and

                    (b) if the organization does not comply with the provisions referred
                        to in clause (a), the organization will pay the municipality an
                        amount equivalent to the property taxes that would be payable
                        in respect of the property for 1998 if the property was not
                        exempt.

             (5) Before granting an exemption under this section in respect of a
             property that is owned by a non-profit organization, the municipality
             may require that an agreement between the organization and the
             municipality be in force that sets out that

                    (a) no disposition of the property may be made without the
                        approval of the municipality, and

                    (b) if the organization is being wound-up and dissolved, the
                        organization must, if required by the municipality, transfer the
                        property to the municipality.

             (6) Despite subsection (1), a municipality may, in respect of a non-profit
             organization, waive the requirement to apply by April 30, 1998 or any
             of the requirements in subsection (1)(c), (d) and (e).

             (7) If a municipality grants an exemption to a non-profit organization
             and later determines that the organization did not meet the conditions
             that applied to the organization for the exemption for all or a part of
             1998, the municipality may in 1998 cancel the exemption for all or part
             of 1998, as the case may be, and require the organization to pay property
             tax in respect of the property for the period that the exemption is
             cancelled.

Retail       16(1) In this section, “exempt facility” means a facility or part of a
commercial   facility held by a non-profit organization that is exempt from taxation
areas
             under section 362(n)(i) to (iv) of the Act or section 15 of this Regulation.

             (2) A retail commercial area that is located within an exempt facility is
             exempt from taxation if



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ALTA. REG. 290/97                                               MUNICIPAL GOVERNMENT

                    (a) the non-profit organization that holds the exempt facility also
                        holds and operates the retail commercial area, and

                    (b) the net income from the retail commercial area is used

                           (i) to pay all or part of the operational or capital costs of the
                               exempt facility, or

                           (ii) to pay all or part of the operational or capital costs of
                                any other facility that is held by the non-profit
                                organization and that is exempt from taxation under
                                section 362 of the Act or section 15 of this Regulation.


                                                PART 4

                                                REPEAL
Repeal         17(1) The Non-profit Organization Tax Exemption Regulation (AR
               125/95) is repealed.

               (2) Despite the repeal of the Non-profit Organization Tax Exemption
               Regulation (AR 125/95), that Regulation continues to apply to taxation
               in 1995, 1996 and 1997.


                               ------------------------------

                             Alberta Regulation 290/97

                            Municipal Government Act

         STANDARDS OF ASSESSMENT AMENDMENT REGULATION

                                                                 Filed: December 22, 1997

Made by the Minister of Municipal Affairs (M.O. L:279/97) pursuant to section 322 of the
Municipal Government Act.

               1 The Standards of Assessment Regulation (AR 365/94) is
               amended by this Regulation.


               2 Section 6(2) is amended by adding “Alberta” after “set out in
               the”.


               3 Section 8 is amended

                    (a) by striking out “the Planning Act” and substituting “Part
                        17 of the Municipal Government Act”;



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ALTA. REG. 291/97                                                 MOTOR TRANSPORT

                    (b) in clause (b) by striking out “despite section 2(3)” and
                        substituting “unless section 2(3) applies”.


                              ------------------------------

                            Alberta Regulation 291/97

                               Motor Transport Act

     PUBLIC VEHICLE CERTIFICATE AND INSURANCE REGULATION

                                                               Filed: December 22, 1997

Made by the Alberta Motor Transport Board pursuant to sections 5 and 35 of the Motor
Transport Act.

                                          Table of Contents

              Definitions                                                           1

                                              Part 1
                              Public Vehicle Operator’s Safety Rating

              Definition                                                            2
              Application of Part                                                   3
              Fee                                                                   4
              Rating of carrier                                                     5
              Determination of rating                                               6
              Criteria for satisfactory rating                                      7
              Unsatisfactory rating                                                 8
              Changing of rating                                                    9
              Prohibition                                                          10
              Obligations of carrier                                               11
              Operating authority certificate                                      12

                                               Part 2
                                 Public Vehicles Other Than Buses

                                            Division 1
                                    Operation of Freight Trucks

              Definitions                                                          13
              Safety fitness certificate to be in cab                              14
              Responsibility of owner                                              15
              Substitution of vehicles                                             16
              Insurance                                                            17
              Liability insurance                                                  18
              Reduction, etc. of insurance coverage                                19




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ALTA. REG. 291/97                                               MOTOR TRANSPORT

                                           Division 2
                               Operation of Other Public Vehicles

             Definition                                                     20
             Livery business                                                21
             Insurance re livery                                            22
             Restrictions re drive-yourself vehicles                        23
             Insurance re drive-yourself vehicles                           24
             Insurance re trucks registered for less than 18 000 kg         25

                                              Part 3
                                              Buses

                                          Division 1
                                Operation of Commercial Buses

             Definitions                                                    26
             Exceptions                                                     27
             Restrictions                                                   28
             Route service certificate                                      29
             Charter certificate                                            30
             Private bus certificate                                        31
             Application                                                    32
             Bus inspection certificate                                     33
             Passenger hazard insurance                                     34
             Temporary substitution of buses                                35
             Timetable                                                      36
             Service re animals                                             37
             Inland transportation insurance                                38
             Tariff re charter service                                      39
             Recurring service re charter service                           40
             Rates re private bus                                           41

                                         Division 2
                         Obtaining of Operating Authority Certificates

             Definitions                                                    42
             Filing                                                         43
             Application                                                    44
             Summary rejection of application                               45
             Notice of application                                          46
             Objection                                                      47
             Intervention                                                   48
             Summary rejection of objection or intervention                 49
             Consideration of application                                   50
             Formal public hearing                                          51
             Additional material                                            52
             Decision resulting from formal public hearing                  53
             Issuance of certificate for bus                                54
             Withdrawal from proceedings                                    55
             Hearing with another body                                      56
             Extension of time                                              57
             Non-compliance                                                 58


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ALTA. REG. 291/97                                                  MOTOR TRANSPORT

              Service                                                                  59

                                               Part 4
                               Repeals, Expiry and Coming into Force

              Repeals                                                                  60
              Expiry                                                                   61
              Coming into force                                                        62

              Schedules

Definitions   1(1) In this Regulation,

                    (a) “Act” means the Motor Transport Act;

                    (b) “Board” means the Motor Transport Board;

                    (c) “bus” means a motor vehicle designed for carrying more than
                        10 persons, including the driver of the vehicle, that is used or
                        intended to be used for the transportation of persons, and
                        includes any other motor vehicle designated by order of the
                        Board as a bus;

                    (d) “carrier” means a person who is engaged in the business of
                        operating a freight truck or a bus;

                    (e) “Director” means an employee of the Government who is under
                        the administration of the Minister and is designated by the
                        Minister as the Director or acting on behalf of the Director;

                    (f) “disabled” means, in respect of a freight truck or a bus, a
                        vehicle that can no longer continue to operate due to

                           (i) a mechanical failure, or

                           (ii) a collision;

                    (g) “driver” means a person who drives a public vehicle;

                    (h) “drive-yourself vehicle” means a motor vehicle that is kept for
                        the purpose of being rented without a driver;

                    (i) “freight truck” means, other than a bus, a public vehicle that

                           (i) is used or is intended to be used for the transportation of
                               goods whether or not at any particular time the vehicle
                               is actually transporting goods, and

                           (ii) is registered for a gross weight of not less than 18 000
                                kilograms;




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ALTA. REG. 291/97                                                       MOTOR TRANSPORT

                      (j) “public vehicle” includes a combination of public vehicles that
                          are attached to each other;

                     (k) “registered” means, in reference to a vehicle, registered to
                         operate on a highway in Alberta pursuant to the laws of Alberta.

                 (2) Subject to subsection (1), where a term used in this Regulation is
                 defined in the Act, that term has the same meaning as defined in the Act.


                                                  PART 1

                       PUBLIC VEHICLE OPERATOR’S SAFETY RATING
Definitions      2 In this Part,

                     (a) “dangerous goods” means dangerous goods as defined in the
                         Transportation of Dangerous Goods Control Act;

                     (b) “driver’s abstract” means an abstract of a driving record referred
                         to in section 66 of the Motor Vehicle Administration Act;

                     (c) “intra-provincial bus undertaking” means a work or undertaking
                         for the transport of passengers or passengers and goods by a bus
                         solely in Alberta;

                     (d) “safety laws” means those laws governing

                             (i) the transportation of dangerous goods;

                             (ii) the control of traffic on highways;

                            (iii) the operation of freight trucks and buses on highways;

                            (iv) equipment and motor vehicle safety standards as they
                                 apply to freight trucks and buses;

                             (v) the weight of freight trucks and buses;

                            (vi) the dimensions of freight trucks and buses;

                           (vii) the loading and carrying of loads by freight trucks and
                                 buses.

Application of   3(1) Where a carrier operates or engages in a bus undertaking, this Part
Part
                 applies to that carrier and to any bus operated by that carrier for that bus
                 undertaking.

                 (2) Where a carrier operates or engages in a freight truck undertaking,
                 this Part applies to that carrier and to any freight truck operated by that
                 carrier.



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ALTA. REG. 291/97                                                   MOTOR TRANSPORT

                (3) This Part does not apply to the following:

                    (a) a freight truck that is being used primarily to transport an
                        agricultural product where the driver of the vehicle

                            (i) is a bona fide farmer who owns or produced that
                                agricultural product, or

                           (ii) is an employee of a bona fide farmer who owns or
                                produced that agricultural product;

                    (b) a 2- or 3-axle freight truck that is primarily used for the
                        transportation of primary products of a forest, lake or river,
                        where the driver or the driver’s employer is the producer of
                        those primary products.

Fee             4 A carrier must pay an application fee prescribed in Schedule 2 to the
                Board before the carrier is rated pursuant to this Part.

Rating of       5 For the purpose of promoting the safe operation of a freight truck or
carrier         bus undertaking, the Board shall rate a carrier as being one of the
                following:

                    (a) satisfactory;

                    (b) satisfactory unaudited;

                    (c) conditional;

                    (d) unsatisfactory.

Determination   6 For the purpose of determining the rating of a carrier, the following
of rating
                must be considered:

                    (a) for a period of time that the Board considers appropriate in the
                        circumstances, not to exceed the 5 years immediately preceding
                        the date on which the rating is made,

                            (i) any action that, in the opinion of the Board, constitutes
                                a failure by the carrier to comply with a safety law in
                                any jurisdiction in which the carrier operates,

                           (ii) any conviction of the carrier for contravening a safety
                                law in any jurisdiction in which the carrier operates, and

                          (iii) the motor vehicle collision record of the carrier;

                    (b) whether the carrier meets the criteria set out in section 7;




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ALTA. REG. 291/97                                                   MOTOR TRANSPORT

                    (c) any actions taken by the carrier that demonstrate the measures
                        taken to meet the criteria set out in section 7;

                    (d) whether any of the persons managing the carrier are or have
                        been associated with another carrier that has received an
                        unsatisfactory rating;

                    (e) in the case of a carrier that is a corporation, whether any of the
                        directors of the corporation are or have been associated with
                        another carrier that has received an unsatisfactory rating.

Criteria for   7(1) To be rated as satisfactory, a carrier
satisfactory
rating
                    (a) must, in the opinion of the Board, demonstrate a comprehensive
                        knowledge of and compliance with the safety laws in force in all
                        jurisdictions in which the carrier operates that are applicable

                            (i) to the operations of all freight trucks and buses, as the
                                case may be, that are registered in the name of the
                                carrier, and

                           (ii) to all drivers who operate freight trucks and buses that
                                are registered in the name of the carrier,

                    (b) must, in the opinion of the Board, have substantially complied
                        with the safety laws in force in Alberta that are applicable

                            (i) to the operations carried out by the carrier, and

                           (ii) to the vehicles to which this Part applies that are
                                operated by or on behalf of that carrier,

                    (c) must have the minimum insurance coverage required by the
                        laws of Alberta,

                    (d) must designate a person who shall be responsible to promote, to
                        the satisfaction of the Board, the safe operation of freight trucks
                        or buses, as the case may be, that are registered in the name of
                        the carrier, and

                    (e) must, with respect to all drivers who operate freight trucks or
                        buses that are registered in the name of the carrier, maintain
                        records that are relevant to those drivers’ carrying out their
                        duties as drivers, including at least the following:

                            (i) the driver’s completed application form with the carrier;

                           (ii) a copy of the driver’s current operator’s licence;

                          (iii) the employment history of the driver for the 3 years
                                immediately preceding the time at which the driver
                                commenced working for the carrier;


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ALTA. REG. 291/97                                                    MOTOR TRANSPORT

                          (iv) an annual driver’s abstract for the driver;

                           (v) a record of convictions of the driver under all provincial
                               and federal legislation that relates to the operation of a
                               motor vehicle;

                          (vi) a record of all collisions involving a motor vehicle
                               operated by the driver that are required under any
                               legislation to be reported to a peace officer;

                         (vii) a record of all training respecting the operation of a
                               motor vehicle that has been successfully completed by
                               the driver;

                         (viii) a copy of any training certificate issued to the driver
                                under the Transportation of Dangerous Goods Control
                                Regulations under the Transportation of Dangerous
                                Goods Act (Canada);

                          (ix) a copy of a current medical certificate for the driver.

             (2) Where a carrier does not meet the requirement of subsection (1)(a)
             but the carrier is informed by the Board of those laws, that carrier is, at
             the discretion of the Board, deemed to have met the requirement of
             subsection (1)(a).

             (3) Where

                    (a) in the opinion of the Board, a carrier does not meet the
                        requirements of subsection (1)(a), (b) or (d), or

                    (b) the Board is unable to form an opinion as to whether a carrier
                        meets the requirements of subsection (1)(a) or (b),

             the Board may rate the carrier as satisfactory unaudited, conditional or
             satisfactory, as the case may be, if the carrier

                    (c) meets the requirements of subsection (1)(c),

                    (d) undertakes with the Board that the carrier

                           (i) will establish and maintain a safety program that meets
                               the criteria set out in the application for a safety fitness
                               certificate,

                           (ii) will maintain at the carrier’s principal place of business
                                in Alberta a document setting out the safety program,

                          (iii) will ensure that drivers operating any freight truck or
                                bus registered in the name of the carrier will comply
                                with the National Safety Code For Motor Carriers,
                                Medical Standards for Drivers, and



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ALTA. REG. 291/97                                                     MOTOR TRANSPORT

                            (iv) will maintain at the carrier’s principal place of business
                                 in Alberta the records required under the Commercial
                                 Vehicle Maintenance Standards Regulation (AR
                                 118/89),

                     (e) designates a person for the purposes of subsection (1)(d), and

                      (f) satisfies the Board that the carrier will substantially comply
                          with the safety program referred to in clause (d)(ii).

                 (4) Where a person

                     (a) is in the process of commencing business as a carrier,

                     (b) has applied to the Board to be rated in accordance with this Part,
                         and

                     (c) has not yet acquired the minimum insurance coverage required
                         by the laws of Alberta,

                 the Board may, notwithstanding subsection (1)(c), rate the carrier as
                 satisfactory unaudited, conditional or satisfactory, as the case may be, if
                 the carrier

                     (d) meets the requirements of subsection (3)(d) and (e), and

                     (e) gives to the Board an undertaking that the carrier

                             (i) is in the process of acquiring the required insurance
                                 coverage, and

                             (ii) will not commence the actual transportation of goods or
                                  persons without having acquired the required insurance
                                  coverage.

                 (5) Where a carrier is rated satisfactory unaudited, conditional or
                 satisfactory under subsection (4), the carrier shall not commence the
                 actual transportation of goods or persons until the carrier

                     (a) has acquired the required insurance coverage, and

                     (b) provides to the Board proof, satisfactory to the Board,
                         establishing that the carrier has acquired the required insurance
                         coverage.

Unsatisfactory   8 Where a carrier is not rated as satisfactory unaudited, conditional or
rating
                 satisfactory, the carrier shall be rated as unsatisfactory.




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ALTA. REG. 291/97                                                       MOTOR TRANSPORT

Changing of      9 Where a carrier is currently rated under this Part and, in the opinion
rating           of the Board, that rating is no longer applicable, the Board may change
                 the rating of the carrier to a rating that, in the opinion of the Board, is the
                 appropriate rating for that carrier.

Prohibition      10 A carrier shall not engage in a freight truck or bus undertaking
                 unless in respect of that undertaking the carrier is rated as satisfactory
                 unaudited, conditional or satisfactory.

Obligations of   11 A carrier shall ensure the following:
carrier
                     (a) that any records that are required by law to be maintained by
                         that carrier are preserved by the carrier for the current year and
                         the 4 previous calendar years in a manner so as to be accessible
                         for inspection and audit purposes by the Board;

                     (b) that the records referred to in clause (a) are kept at the carrier’s
                         principal place of business in Alberta unless otherwise
                         authorized, in writing, by the Board;

                     (c) that the records referred to in clause (a) are, on request of the
                         Board or a peace officer, made available for inspection during
                         regular business hours at the carrier’s principal place of
                         business in Alberta;

                     (d) that a person does not alter, deface, destroy or otherwise falsify
                         any of the records referred to in clause (a);

                     (e) that a person does not obstruct the Board or a peace officer from
                         entering that carrier’s principal place or other places of business
                         in Alberta for the purposes of inspecting that carrier’s records
                         or any of the carrier’s freight trucks or buses;

                      (f) that a person does not drive a freight truck or bus without
                          carrying in the cab of that vechicle the original or a photocopy
                          of the safety fitness certificate issued in respect of that vehicle;

                     (g) that any driver who drives a freight truck or bus for the carrier
                         provide the safety fitness certificate issued in respect of that
                         vehicle to the Board or a peace officer on the request of the
                         Board or peace officer.


Operating        12(1) A carrier shall not be issued an operating authority certificate
authority        unless the carrier is rated as satisfactory unaudited, satisfactory or
certificate
                 conditional.

                 (2) Where

                     (a) a carrier holds an operating authority certificate, and


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ALTA. REG. 291/97                                                         MOTOR TRANSPORT

                        (b) the carrier is rated as unsatisfactory,

                    that operating authority certificate is suspended until the carrier is rated
                    as satisfactory unaudited, satisfactory or conditional.

                    (3) A carrier is not entitled to be issued an operating authority certificate
                    by reason only of the carrier’s being rated as satisfactory unaudited,
                    satisfactory or conditional.

                    (4) If a carrier is rated as conditional or unsatisfactory, any permit issued
                    to the carrier under section 20 of the Act may be revoked by virtue of the
                    carrier’s being rated as conditional or unsatisfactory.


                                                     PART 2

                                PUBLIC VEHICLES OTHER THAN BUSES

                                                Division 1
                                        Operation of Freight Trucks
Definition          13 In this Division, “carrier” means a carrier who operates a freight
                    truck engaged in the intra-provincial or extra-provincial transportation
                    of goods for which a safety fitness certificate is required for the
                    transportation of those goods.

Safety fitness      14(1) When, under the authority of a safety fitness certificate, a person
certificate to be
in cab
                    operates

                        (a) one freight truck, that person shall carry in the cab of that
                            vehicle the original or a photocopy of the safety fitness
                            certificate, or

                        (b) more than one freight truck, that person shall carry in the cabs
                            of each of those vehicles either the original or a photocopy of
                            the safety fitness certificate.

                    (2) Where the original or a photocopy of the safety fitness certificate is
                    required to be carried in the cab of a freight truck, the carrier that
                    operates the freight truck or the driver of the freight truck shall produce
                    the certificate on the request of a peace officer.

Responsibility      15(1) For the purpose of this section, a person is the owner of a freight
of owner            truck if that person is

                        (a) the registered owner of that vehicle,

                        (b) the lessee of a freight truck under a lease having a term of not
                            more than 30 days and




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ALTA. REG. 291/97                                                    MOTOR TRANSPORT

                            (i) the leased vehicle is in the lessee’s possession and under
                                the lessee’s complete control,

                           (ii) the leased vehicle is operated by a person who is under
                                the control, direction and supervision of the lessee,

                           (iii) there is no contractual or other business or commercial
                                 relationship between the operator of the vehicle and the
                                 lessor of the vehicle, and

                           (iv) the lease is in writing and

                               (A) sets out the obligations and rights of the lessor and
                                   lessee,

                               (B) sets out the term of the lease,

                               (C) is signed by the lessor and lessee at the time that the
                                   lease is entered into, and

                               (D) sets out the date that the lease is entered into,

                      or

                    (c) the lessee of a freight truck under a lease having a term greater
                        than 30 days and

                            (i) the leased vehicle is registered in the name of the lessee,

                           (ii) the lessee carries the necessary public liability insurance
                                required by law,

                           (iii) the leased vehicle is leased on an exclusive use basis,
                                 and

                           (iv) the lease is in writing and

                               (A) sets out the obligations and rights of the lessor and
                                   lessee,

                               (B) sets out the term of the lease,

                               (C) is signed by the lessor and lessee at the time that the
                                   lease is entered into, and

                               (D) sets out the date that the lease is entered into.

             (2) A person who is the owner of a freight truck assumes responsibility
             for

                    (a) the contravention of any law arising out of the operation of that
                        vehicle, and



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ALTA. REG. 291/97                                                   MOTOR TRANSPORT

                    (b) any collision caused by the negligence of the driver of the
                        freight truck.

Disabled     16(1) When a freight truck is disabled the operator or owner of the
vehicle      vehicle shall forthwith make arrangements so that the goods being
             transported on that vehicle will be transported to their intended
             destination

                    (a) without additional charge to the shipper or receiver of the
                        goods, and

                    (b) as expeditiously as possible in the circumstances.

             (2) When a freight truck is disabled, the operator or owner of the
             disabled freight truck may substitute another freight truck for the
             disabled freight truck if

                    (a) the licence plates and certificate of registration of the disabled
                        freight truck are carried in the cab of the substituted freight
                        truck while the substituted freight truck is being used in the
                        place of the disabled freight truck,

                    (b) the substituted freight truck is registered in Alberta, and

                    (c) the substituted freight truck is insured as required by law.

             (3) Notwithstanding subsection (2), a person shall not operate a
             substituted freight truck for a period in excess of 7 days.

Insurance    17(1) A carrier shall not engage in the transportation of goods unless the
             carrier maintains inland transportation insurance against loss of or
             damage to those goods.

             (2) A carrier who maintains inland transportation insurance shall
             maintain in the carrier’s possession the policy issued in respect of that
             insurance.

             (3) The amount of inland transportation insurance that is to be
             maintained under subsection (1) must be in the following amounts:

                    (a) for each freight truck engaged in the transportation of farm
                        produce other than dairy products, at least $600;

                    (b) for each freight truck engaged only in the transportation of
                        unprocessed milk or cream, an amount equal to the actual cash
                        value of the goods;

                    (c) for each freight truck having a maximum registered gross
                        weight of at least 18 000 kilograms but not exceeding 21 000
                        kilograms, at least $20 000;



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ALTA. REG. 291/97                                                      MOTOR TRANSPORT

                    (d) for each freight truck having a maximum registered gross
                        weight exceeding 21 000 kilograms but not exceeding 37 000
                        kilograms, at least $27 000;

                    (e) for each freight truck having a maximum registered gross
                        weight exceeding 37 000 kilograms, at least $32 000.

             (4) In subsection (3), “maximum registered gross weight” means the
             weight specified on the certificate of registration issued in respect of the
             truck under the Motor Vehicle Administration Act.

             (5) Notwithstanding subsection (3), when a carrier is engaged in the
             transportation of a mobile home, the carrier shall maintain, in respect of
             the mobile home, insurance acceptable to the Board that,

                    (a) in the case of a single wide mobile home,

                            (i) provides coverage against loss or damage in the amount
                                of

                                (A) $10 000, or

                                (B) the cash value of the mobile home and its contents,
                                    if any,

                                whichever is the greater amount, and

                            (ii) provides for collision coverage on the mobile home,

                      and

                    (b) in the case of a double wide mobile home,

                            (i) provides coverage against loss or damage in the amount
                                of the cash value of the 2 halves and their contents, if
                                any,

                            (ii) provides that if one of the halves is damaged to the
                                 extent that it is not practicable to repair it the other half
                                 will be deemed to have been also destroyed, and

                          (iii) provides for collision coverage on the mobile home.

             (6) Subsections (1) to (3) do not apply to a carrier that engages only in
             the transportation of one or more of the items shown in Schedule 1.

Liability    18 An owner of a freight truck shall not engage in the transportation of
insurance
             goods unless that person maintains, on each freight truck in respect of
             any one collision, insurance against liability resulting from bodily injury
             to or the death of one or more persons and loss of or damage to property
             of others, other than cargo, in the amount of at least



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ALTA. REG. 291/97                                                    MOTOR TRANSPORT

                      (a) $2 000 000 in the case of transportation of dangerous goods set
                          out in Schedule XII of the Transportation of Dangerous Goods
                          Regulations under the Transportation of Dangerous Goods Act
                          (Canada), in the quantities indicated in Column IV of that
                          Schedule, in respect of which an emergency response plan is
                          required to be filed with the Director General pursuant to Part
                          VII of those Regulations, or

                      (b) $1 000 000 in all other cases.

Reduction, etc.   19 Notwithstanding section 17, the Board may
of insurance
coverage
                      (a) permit a carrier to reduce the amount of insurance maintained
                          by the carrier under section 17 to an amount equivalent to a
                          maximum value of the goods being transported, or

                      (b) exempt a carrier from maintaining insurance under section 17
                          in respect of goods if the shipper of the goods agrees in writing
                          that the carrier is not liable for any loss or damage to those
                          goods while they are being transported by the carrier.


                                             Division 2
                                 Operation of Other Public Vehicles
Definition        20 In this Division, “drive-yourself business” means the rental of motor
                  vehicles without drivers.

Livery            21 Where
business
                      (a) a person wishes to operate a livery business in a municipality,
                          and

                      (b) the Board is satisfied that the person meets the requirements of
                          the municipality with respect to the operation of a livery
                          business,

                  the Board shall issue an operating authority certificate to that person
                  authorizing that person to operate a livery business.

Insurance re      22 Every vehicle used by a livery business shall be covered by
livery
                      (a) a motor vehicle liability policy that complies with the Insurance
                          Act, and

                      (b) an automobile insurance policy that provides for passenger
                          hazard coverage in an amount of not less than $1 000 000 for
                          liability resulting from bodily injury to or the death of one or
                          more persons as a result of any single accident.



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ALTA. REG. 291/97                                                      MOTOR TRANSPORT


Restrictions re   23 Where a vehicle is designated to carry more than 15 passengers,
drive-yourself
vehicles
                      (a) a person shall not use that vehicle as a drive-yourself vehicle,
                          and

                      (b) an operator of a drive-yourself business shall not permit that
                          vehicle to be used as a drive-yourself vehicle.

Insurance re      24 The owner of a drive-yourself business shall maintain in respect of
drive-yourself    the drive-yourself vehicles operated in connection with that business a
vehicles
                  contract of automobile insurance that insures, in respect of any one
                  accident, to the limit of not less than $1 000 000, exclusive of interest
                  and costs against liability resulting from bodily injury to or the death of
                  one or more persons and loss of or damage to property.

Insurance re      25(1) A carrier who operates a public vehicle, other than a bus, that
trucks
registered for
less than             (a) is used to transport goods, and
18 000 kg
                      (b) is registered for a gross weight of less than 18 000 kilograms

                  shall not engage in the transportation of goods unless the carrier
                  maintains inland transportation insurance against loss of or damage to
                  those goods.

                  (2) A carrier who maintains inland transportation insurance shall
                  maintain in the carrier’s possession the policy issued in respect of that
                  insurance.

                  (3) The amount of inland transportation insurance that is to be
                  maintained under subsection (1) must be in the following amounts:

                      (a) for each public vehicle having a maximum registered gross
                          weight not exceeding 12 700 kilograms, at least $15 000;

                      (b) for each public vehicle having a maximum registered gross
                          weight exceeding 12 700 kilograms but not exceeding 18 000
                          kilograms, at least $20 000.

                  (4) In subsection (3), “maximum registered gross weight” means the
                  weight specified on the certificate of registration issued in respect of the
                  public vehicle under the Motor Vehicle Administration Act.

                  (5) Subsections (1) to (3) do not apply to a carrier that engages only in
                  the transportation of one or more of the items shown in Schedule 1.




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ALTA. REG. 291/97                                                  MOTOR TRANSPORT

                                                 PART 3

                                                 BUSES

                                          Division 1
                                Operation of Commercial Buses
Definitions   26 In this Division,

                    (a) “charter trip” means a trip on a public bus taken by a group of
                        passengers travelling for a common purpose from a common
                        point of origin to a common destination, and may include return
                        to the point of origin;

                    (b) “private bus” means a bus that is used to transport

                           (i) employees or members of the person or organization that
                               owns the bus, or

                           (ii) other persons authorized by the Board,

                        and in respect of which the owner does not receive financial
                        support from any level of government;

                    (c) “public bus” means a bus that is operated pursuant to an
                        operating authority certificate issued under section 29 or 30.

Exceptions    27(1) This Division does not apply to

                    (a) a school bus as defined in section 1 of the School Bus Operation
                        Regulation (AR 437/86), or

                    (b) a transit bus owned and operated by a municipality when the
                        transit bus is being operated within the boundaries of that
                        municipality.

              (2) An operating authority certificate is not required to provide any of
              the following services by means of a bus:

                    (a) funeral service;

                    (b) school bus service;

                    (c) transit bus service operated by a municipality.

              (3) An operating authority certificate is not required for the operation of
              a bus for a single conveyance of passengers when there is an operating
              authority permit in respect of that conveyance issued pursuant to section
              20 of the Motor Transport Act.




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ALTA. REG. 291/97                                                     MOTOR TRANSPORT

Restrictions     28 Where a bus is operating under the authority of an operating
                 authority certificate issued under section 54 authorizing the holder of the
                 certificate to engage in corridor operations or a non-Alberta based charter
                 bus operation, that bus shall not be used to carry any goods or engage in
                 any operations not authorized under that certificate.

Route service    29 The Board may issue an operating authority certificate for the
certificate
                 operation of a public bus over a specified route or routes.

Charter          30 The Board may issue the following operating authority certificates
certificate
                 to an operator of a bus charter service authorizing the operation of a
                 public bus on a charter trip:

                     (a) a certificate authorizing the provision of charter services using
                         a bus that is owned by a person who receives, with respect to
                         the provision of the charter services, financial support

                             (i) from a level of government, or

                             (ii) directly or indirectly from the public through
                                  contributions, solicitations or other fund-raising means;

                     (b) a certificate authorizing the provision of general charter
                         services;

                     (c) a certificate authorizing the provision of charter services
                         through the use of buses that are owned by a municipality or the
                         board of a school district or division.

Private bus      31 The Board may issue an operating authority certificate for the
certificate      operation of a private bus.

Application      32 The application for a certificate under section 29, 30 or 31, and the
                 certificate itself, shall be in a form acceptable to the Board.

Bus inspection   33 The Board may refuse to issue or renew an operating authority
certificate      certificate under this Part if the Board knows or has reasonable grounds
                 for believing that a subsisting inspection certificate does not exist in
                 respect of a bus that is operating under that operating authority
                 certificate.

Passenger        34(1) A person shall not operate a public bus or a private bus or a
hazard
insurance
                 drive-yourself vehicle as a public bus or a private bus unless it is covered
                 by a policy of automobile insurance providing passenger hazard
                 coverage in at least the following amounts:




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ALTA. REG. 291/97                                                     MOTOR TRANSPORT

                      (a) where the capacity of the bus is 10 or fewer persons, including
                          the driver,

                              (i) $400 000 for bodily injury or death of any one person as
                                  a result of any single collision, and

                             (ii) $1 000 000 for bodily injury or death of one or more
                                  persons as a result of any single collision;

                      (b) where the capacity of the bus is more than 10 persons, including
                          the driver,

                              (i) $400 000 for bodily injury or death of any one person as
                                  a result of any single collision, and

                             (ii) $2 000 000 for bodily injury or death of one or more
                                  persons as a result of any single collision.

                  (2) When requested to do so by the Board, the holder of an operating
                  authority certificate issued in respect of a bus referred to in subsection
                  (1) shall ensure that the insurer files evidence of the current policy
                  referred to in subsection (1) with the Board.

                  (3) The insurance required by this section is in addition to the minimum
                  limit of automobile insurance required by section 312 of the Insurance
                  Act.

Temporary         35(1) When a bus becomes temporarily disabled, arrangements may be
substitution of   made on an emergency basis for substituting another bus.
buses

                  (2) Where a bus is substituted for a temporarily disabled bus, the
                  certificate of registration and the licence plates issued for the disabled
                  bus must be carried in the cab of the substituted bus at all times during
                  which the substituted bus is being used in that capacity.

Timetable         36(1) The holder of an operating authority certificate referred to in
                  section 29 shall not operate a public bus over a specified route unless a
                  minimum frequency for that route has been approved by the Board.

                  (2) No major change shall be made to a timetable unless notice has been
                  given in accordance with this section and the change has been approved
                  by the Board.

                  (3) Applications for approval of a major change to a timetable shall be
                  submitted to the Board at least 48 hours prior to the commencement of
                  the period of public notice provided for under subsection (6).

                  (4) The 48-hour period referred to in subsection (3) shall not include
                  Saturdays, Sundays or holidays.




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ALTA. REG. 291/97                                                      MOTOR TRANSPORT

                 (5) The Board may hold a public hearing with respect to the proposed
                 major change to a timetable.

                 (6) Public notice of the proposed major change to a timetable shall

                     (a) be posted in a form and at the stopping places along the route,
                         as prescribed by the Board, for at least 15 consecutive days
                         immediately prior to the effective date of the change, and

                     (b) be published in at least 2 issues of a newspaper circulating in
                         the area affected by the change.

                 (7) The Board may approve a timetable or vary it and approve it as
                 varied.

                 (8) For the purposes of this section,

                     (a) a reference to a “minimum frequency” is the minimum number
                         of trips per week that a holder of a certificate is to operate over
                         a specified route, and

                     (b) a reference to a “major change” in respect of a timetable is a
                         reference to a change that

                              (i) reduces the number of trips to less than the minimum
                                  frequency for a route,

                             (ii) results in the total discontinuance of service in respect of
                                  a route,

                            (iii) results in a routing change that affects those
                                  communities on a route that have significant populations
                                  in the area, or

                            (iv) is of such significance that it is a fundamental alteration
                                 to the service being provided in respect of the route.

Service re       37 The operator of a public bus operated pursuant to an operating
animals          authority certificate referred to in section 29, 30 or 31 shall not refuse to
                 carry an animal that

                     (a) is required by a person for assistance, and

                     (b) is certified as having been trained to assist a person with one or
                         more disabilities.

Inland           38 The holder of an operating authority certificate referred to in section
transportation   29 who carries express shipments shall
insurance




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ALTA. REG. 291/97                                                        MOTOR TRANSPORT

                        (a) take out and keep in force a policy of inland transportation
                            insurance in the sum of at least $500 to cover loss of or damage
                            to any freight and express shipment, and

                        (b) deposit with the Board evidence of the current policy when
                            required by the Board.

Tariff re charter   39 Where a person operates a charter bus pursuant to an operating
service             authority certificate referred to in section 30(a), that person shall not
                    charge a tariff that is in excess of that authorized by the Board.

Recurring           40 A holder of an operating authority certificate referred to in section
service re
charter service
                    30 shall not conduct charter trips in such a manner so as to constitute a
                    recurring service.

Rates re            41(1) When a private bus is used to transport passengers who are not
private bus         employees or members of the organization that owns the bus, the
                    operator of the private bus may charge for the service in accordance with
                    a tariff authorized by the Board.

                    (2) Notwithstanding subsection (1), the Board may authorize the
                    charging of rates in excess of those prescribed under subsection (1) if the
                    Board considers it appropriate to do so.


                                              Division 2
                             Obtaining of Operating Authority Certificates
Definitions         42 In this Division,

                        (a) “applicant” means a person who files an application;

                        (b) “application” means an application for an operating authority
                            certificate filed with the Board under section 44;

                        (c) “intervenor” means a person who files an intervention;

                        (d) “intervention” means an intervention to an application filed
                            with the Board under section 48;

                        (e) “objection” means an objection to an application filed with the
                            Board under section 47;

                         (f) “objector” means a person who files an objection;

                        (g) “operating authority certificate” means an operating authority
                            certificate that authorizes the operation of a bus;




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ALTA. REG. 291/97                                                    MOTOR TRANSPORT

                    (h) “temporary operating authority certificate” means an operating
                        authority certificate that authorizes the operation of a bus on a
                        temporary basis.

Filing        43 When a document or material is to be filed with the Board under this
              Division, the document or material shall be filed with the Board by
              depositing the material with the Secretary of the Board at a location
              designated by the Board.

Application   44(1) A person may with respect to a bus apply to the Board for the
              following:

                    (a) an operating authority certificate authorizing the applicant to
                        operate a bus to transport persons and goods;

                    (b) an operating authority certificate authorizing the applicant to
                        engage in either or both of the following services:

                            (i) corridor operations;

                           (ii) a non-Alberta based charter bus operation where the
                                trips carried out are such that the bus returns with the
                                same group of passengers;

                    (c) an amendment to an operating authority certificate referred to in
                        clause (a);

                    (d) an amendment to an operating authority certificate referred to in
                        clause (b);

                    (e) a renewal of an operating authority certificate;

                    (f) an approval of a transfer of an operating authority certificate
                        issued in respect of a bus;

                    (g) a temporary operating authority certificate.

              (2) A person applying under subsection (1) shall file with the Board

                    (a) the original copy of the completed application as prescribed by
                        the Board, and

                    (b) one copy of the material supporting the application.

              (3) An application shall

                    (a) set forth

                            (i) the nature of the application, and

                           (ii) an address in Alberta for service on the applicant,


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ALTA. REG. 291/97                                                  MOTOR TRANSPORT

                    (b) be supported by the material containing the information as
                        specified by the Board, and

                    (c) be accompanied by the fee prescribed in Schedule 2 in respect
                        of the application.

Summary        45(1) The Board may refuse to consider an application if,
rejection of
application
                    (a) on reviewing the application and any material supporting the
                        application, the Board is of the opinion that the application is
                        without merit or is frivolous or vexatious, or

                    (b) the application or any material supporting the application is
                        prepared in a manner that is not satisfactory to the Board.

               (2) Where the Board refuses to consider an application, the Board shall
               advise the applicant of the Board’s refusal to consider the application.

Notice of      46(1) On receiving an application referred to in section 44(1)(a) or (c),
application    the Board may

                    (a) publish a notice of the application in a publication designated
                        by the Board, or

                    (b) give notice of the application in a manner as determined by the
                        Board.

               (2) A notice under subsection (1) shall specify

                    (a) the date by which any objection or intervention must be filed
                        with the Board, and

                    (b) the date by which any objection or intervention must be served
                        on the applicant.

Objection      47(1) Where an application referred to in section 44(1)(a) or (c) is filed
               with the Board, a person

                    (a) who holds an operating authority certificate that authorizes the
                        operation of a bus for the same purposes in whole or in part as
                        those for which the application has been filed, and

                    (b) whose interests may be affected by the granting of the
                        application,

               may file with the Board an objection to the application.

               (2) An objection shall

                    (a) set forth


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ALTA. REG. 291/97                                                  MOTOR TRANSPORT

                           (i) the name and address of the objector, and

                           (ii) the address in Alberta for service on the objector,

                    (b) be supported by the material containing the information as
                        specified by the Board, and

                    (c) be accompanied by the fee prescribed in Schedule 2 in respect
                        of the objection.

               (3) The objector shall file with the Board

                    (a) the original copy of the objection,

                    (b) one copy of the material supporting the objection, and

                    (c) proof of service on the applicant of a copy of the objection and
                        the supporting material.

Intervention   48(1) Where an application referred to in section 44(1)(a) or (c) is filed
               with the Board, a person who

                    (a) does not hold an operating authority certificate that authorizes
                        the operation of a bus for the same purposes in whole or in part
                        as those for which the application has been filed, and

                    (b) wishes to make representations to the Board as to the effect of
                        the application or the granting of the operating authority
                        certificate on the public interest,

               may file with the Board an intervention to the application.

               (2) An intervention shall

                    (a) set forth

                           (i) the name and address of the intervenor, and

                           (ii) the address in Alberta for service on the intervenor,

                    (b) be supported by the material containing the information as
                        specified by the Board, and

                    (c) be accompanied by the fee prescribed in Schedule 2 in respect
                        of the intervention.

               (3) The intervenor shall file with the Board

                    (a) the original copy of the intervention,

                    (b) one copy of the material supporting the intervention, and



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ALTA. REG. 291/97                                                     MOTOR TRANSPORT

                     (c) proof of service on the applicant of a copy of the intervention
                         and the supporting material.

Summary          49(1) The Board shall not consider an objection or an intervention
rejection of     unless
objection or
intervention
                     (a) it is filed with the Board, and

                     (b) the objector or intervenor, as the case may be, serves a copy of
                         it and the supporting material, if any, on the applicant,

                 not later than the date specified in the notice published or given under
                 section 46.

                 (2) The Board may refuse to consider an objection or an intervention if,

                     (a) on reviewing the objection or intervention, as the case may be,
                         and any material supporting the objection or intervention, the
                         Board is of the opinion that the objection or intervention is
                         without merit or is frivolous or vexatious, or

                     (b) the objection or the intervention, as the case may be, or any
                         material supporting the objection or intervention is prepared in
                         a manner that is not satisfactory to the Board.

                 (3) Where the Board refuses to consider an objection or an intervention,
                 the Board shall advise the objector or intervenor, as the case may be, of
                 the Board’s refusal to consider the objection or intervention.

Consideration    50(1) Subject to sections 45 and 51, where an application referred to in
of application
                 section 44(1)(a) or (c) is filed with the Board and

                     (a) no objection or intervention is filed with the Board in respect of
                         the application, or

                     (b) pursuant to section 49, the Board refuses to hear any objection
                         or intervention filed with the Board in respect of the application,

                 the Board shall in a summary manner and without conducting a formal
                 public hearing consider the application at a time, place and date specified
                 by the Board.

                 (2) Subject to section 45, the Board, or a person designated by the
                 Board, shall consider each application filed with the Board under section
                 44(1)(b), (d), (e) or (f).

Formal public    51(1) The Board shall conduct a formal public hearing in respect of an
hearing
                 application referred to in section 44(1)(a) or (c) if




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ALTA. REG. 291/97                                                    MOTOR TRANSPORT

                     (a) requested to do so by the applicant, unless the Board refuses to
                         consider the application pursuant to section 45,

                     (b) an objection or an intervention is filed with the Board in respect
                         of the application, unless the Board refuses to consider the
                         application pursuant to section 49, or

                     (c) the Board is of the opinion that a formal public hearing should
                         be held.

                 (2) When an application is filed with the Board in respect of which a
                 formal public hearing is to be held, the Board shall

                     (a) set the time, place and date of the formal public hearing, and

                     (b) notify the following persons of the time, place and date of the
                         formal public hearing:

                             (i) the applicant;

                            (ii) any objector whose objection is to be considered;

                            (iii) any intervenor whose intervention is to be considered.

Additional       52(1) The Board may for the purpose of considering a matter under this
material
                 Division require an applicant, objector or intervenor, as the case may be,
                 to provide further material or information to the Board.

                 (2) Where an applicant, objector or intervenor does not provide further
                 material or information as required under subsection (1), the Board may

                     (a) refuse to further consider the application, objection or
                         intervention, as the case may be, until the material or
                         information is provided to the Board, or

                     (b) dismiss the application, objection or intervention, as the case
                         may be.

Decision         53 The Board shall, within 30 days from the day that it concludes the
resulting from   formal public hearing held in respect of the application, notify the
formal public
hearing          following persons of the Board’s decision and the reason or reasons
                 therefor:

                     (a) the applicant;

                     (b) every objector;

                     (c) every intervenor;

                     (d) the Director.



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ALTA. REG. 291/97                                                      MOTOR TRANSPORT


Issuance of       54(1) Where a person applies to the Board under section 44(1)(a) or (c)
certificate for
bus
                  in respect of an operating authority certificate authorizing that person to
                  operate a bus, the Board may, after considering, subject to this Division,
                  all the objections and interventions filed with the Board in respect of the
                  application, issue or amend, as the case may be, that operating authority
                  certificate if that person satisfies the Board

                      (a) that the person meets the requirements of this Division, and

                      (b) that, for those operations that the Board considers appropriate,
                          it would meet the public need and convenience to issue or
                          amend, as the case may be, the operating authority certificate.

                  (2) Where a person applies to the Board under section 44(1), other than
                  under section 44(1)(a), (c) or (f), in respect of an operating authority
                  certificate authorizing a person to operate a bus, the Board shall, subject
                  to this Division, approve the application if that person satisfies the Board
                  that that person meets the requirements of this Division.

                  (3) Where a person applies to the Board under section 44(1)(f) in respect
                  of an operating authority certificate authorizing a person to operate a bus,
                  the Board shall, subject to

                      (a) this Division, and

                      (b) section 22 of the Act,

                  grant the application if the person to whom the transfer is to be made
                  meets the requirements of this Division.

Withdrawal        55(1) If an application, objection or intervention is withdrawn prior to
from              commencement of a formal public hearing, the applicant, objector or
proceedings
                  intervenor, as the case may be, shall

                      (a) serve the Board and the other parties to the matter with a notice
                          of withdrawal not later than 7 days, excluding Saturdays,
                          Sundays and holidays, prior to the commencement of the
                          hearing, and

                      (b) forthwith file with the Board proof of service on the other
                          parties to the matter of the notice of withdrawal.

                  (2) Where a person fails to comply with the requirements of subsection
                  (1), the Board may award costs against that person in an amount that the
                  Board considers proper in the circumstances.

Hearing with      56 If the Board decides to hold outside of Alberta a public hearing
another body
                  conducted jointly with a similar body of another province, the Board
                  may, notwithstanding anything in this Division, vary the Board’s



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ALTA. REG. 291/97                                                   MOTOR TRANSPORT

               procedure so that it will be substantially in compliance with the
               procedures applicable to the jurisdiction where the evidence is heard.

Extension of   57(1) The Board may on any terms that the Board considers proper in
time           the circumstances make an order increasing or decreasing the time
               prescribed under this Division for

                    (a) the doing of an act,

                    (b) the serving of a document, or

                    (c) the filing of a document.

               (2) An order may be made under subsection (1) notwithstanding that the
               period of time for the doing of the act or the serving or filing of the
               document has expired.

               (3) This section does not apply to the obligations of the Board under
               section 53.

Non-           58 Unless the Board otherwise directs, non-compliance with the
compliance     requirements of this Division renders a proceeding void.

Service        59(1) Any document or material required to be served under this
               Division may be served as follows:

                    (a) in the case of an individual,

                            (i) by personal service,

                           (ii) by registered mail sent to the address for service
                                provided by that individual under this Division, or

                          (iii) as the Board may otherwise direct;

                    (b) in the case of a corporation operating under the Business
                        Corporations Act, subject to section 247 of that Act, by
                        registered mail sent to the address for service provided under
                        this Division;

                    (c) in the case of a corporation operating under the Companies Act,
                        subject to section 308 of that Act, by registered mail sent to the
                        address for service provided under this Division.

               (2) When, in respect of a corporation, an address for service is required
               under this Division, the address for service provided by the corporation
               shall be the address for service of the corporation prescribed under the
               statute under which the corporation is incorporated.




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ALTA. REG. 291/97                                                MOTOR TRANSPORT

                                             PART 4

                       REPEALS, EXPIRY AND COMING INTO FORCE

                                             Repeals
Repeals       60 The following Regulations are repealed:

                    (a) Commercial Bus and Freight Truck Operating Authority
                        Certificate Regulation (AR 491/87);

                    (b) Drive-yourself Regulation (AR 428/86);

                    (c) Livery Regulation (AR 430/86);

                    (d) Freight Truck Operation Regulation (AR 429/86);

                    (e) Commercial Bus Operation Regulation (AR 426/86);

                    (f) Public Vehicle Operator’s Safety Rating Regulation (AR
                        121/89).


                                              Expiry
Expiry        61 For the purpose of ensuring that this Regulation is reviewed for
              ongoing relevancy and necessity, with the option that it may be repassed
              in its present or an amended form following a review, this Regulation
              expires on December 31, 2002.


                                      Coming into Force
Coming into   62 This Regulation comes into force on February 2, 1998.
force



                                         SCHEDULE 1

                             GOODS EXEMPTED FROM INLAND
                              TRANSPORTATION INSURANCE

              alfalfa (raw or pelletised)                      loam
              animal feed and related concentrates             logs
                and supplements (not for human                 lumber
                consumption)                                   newspapers
              asphalt mix (bituminous)                         organic manure
              brick                                            peat moss
              cement (dry or wet)                              propane
              clay                                             salt
              coal                                             sand
              concrete products                                sawdust
              condensate                                       scrap iron


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ALTA. REG. 291/97                                                MOTOR TRANSPORT

             crude oil                                         septic tank refuse
             crushed glass                                     snow
             dead animals                                      stone
             drilling mud                                      sugar beets (raw or
             fodder                                             pelletised)
             garbage                                           sulphur
             grain                                             topsoil
             granite                                           water
             granulite                                         woodchips
             gravel
             herculite
             lime



                                         SCHEDULE 2

                                              FEES

             1 Application for

                    (a) an extra-provincial operating authority
                        certificate                                             $180

                    (b) an intra-provincial   operating    authority
                        certificate                                                  50

             2 Application for an operating authority permit                         15

             3 Application for an amendment to

                    (a) an extra-provincial operating authority
                        certificate                                              180

                    (b) an intra-provincial   operating    authority
                        certificate                                                  50

             4 Application for approval of a transfer of

                    (a) an extra-provincial operating authority
                        certificate                                              180

                    (b) an intra-provincial   operating    authority
                        certificate                                                  50

             5 Application for a renewal of

                    (a) an extra-provincial operating authority
                        certificate                                                  60

                    (b) an intra-provincial   operating    authority
                        certificate                                                  50



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ALTA. REG. 292/97                                                    MOTOR TRANSPORT

                 6 For filing an objection                                            120

                 7 For filing an intervention                                         120

                 8 Application for extra-provincial temporary
                 operating authority certificate                                        35

                 9 Application for intra-provincial temporary
                 operating authority certificate                                        35

                 10 Application to change a name on an operating                        50
                 authority certificate

                 11 Application for a safety fitness certificate                        50

                 12 Application for an amendment to a safety fitness                    50
                 certificate


                                ------------------------------

                              Alberta Regulation 292/97

                                  Motor Transport Act

                BILL OF LADING AND CONDITIONS OF CARRIAGE
                          AMENDMENT REGULATION

                                                                 Filed: December 22, 1997

Made by the Alberta Motor Transport Board pursuant to section 35 of the Motor Transport
Act.

                 1 The Bill of Lading and Conditions of Carriage Regulation
                 (AR 424/86) is amended by this Regulation.


                 2 Section 2(b) is repealed and the following is substituted:

                     (b) a bus parcel express shipment, except to the extent provided for
                         in section 5.1 and Schedule 3.1;


                 3 The following is added after section 5:
Conditions of           5.1(1) Express shipments carried on public buses that are
carriage re
express
                        operated pursuant to an operating authority certificate are subject
shipments on            to the terms and conditions contained in the conditions of
buses                   carriage set out in Schedule 3.1.

                        (2)The holder of an operating authority certificate referred to in
                        subsection (1) shall ensure that a statement is prepared that


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ALTA. REG. 292/97                                                  MOTOR TRANSPORT

                      contains the following information in relation to each express
                      shipment carried on a bus covered by the certificate:

                            (a) particulars of the nature of the shipment;

                            (b) the name and mailing address of the consignor;

                            (c) the point of origin of the shipment;

                            (d) the name and mailing address of the consignee;

                            (e) the destination of the shipment;

                            (f) the names of connecting carriers, if any;

                            (g) whether the charges are prepaid or collect;

                            (h) the date of the consignment.

                      (3)The operator of a bus referred to in subsection (2) shall keep
                      the statement referred to in subsection (2) in the operator’s
                      possession while the operator is operating the bus.


             4 The following is added after Schedule 3:


                                           SCHEDULE 3.1

                                   CONDITIONS OF CARRIAGE
                                   (EXPRESS SHIPMENTS ON
                                       PUBLIC BUSES)

             1 Every agreement entered into between the shipper and the carrier

                    (a) shall extend to and be binding on the shipper and all persons in
                        privity with him who claim or assert any right to the ownership
                        or possession of the shipment, and the benefit of every such
                        agreement shall enure to every person or carrier

                            (i) to whom the shipment is delivered for the performance
                                of any act or duty in respect of it,

                            (ii) in whose custody or charge the shipment lawfully is, or

                          (iii) on whose vehicles the shipment is being carried under
                                the agreement,

                      and

                    (b) shall apply to any re-consignment or return of the shipment.




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ALTA. REG. 292/97                                                   MOTOR TRANSPORT

             2 Subject to sections 3 and 4, the liability of the carrier for a shipment
             is limited to the value declared by the shipper and embodied in the
             agreement, but in no case shall the liability exceed the actual value of the
             shipment at the time of the receipt of the shipment by the carrier,
             including express and other charges if paid, and duty if payable or paid
             and not refunded.

             3 If the shipper does not declare the value of the shipment, liability is
             limited to $50.

             4 If the shipper desires the carrier to assume liability in excess of $50,
             the carrier may impose an additional charge in respect of the extra
             coverage.

             5 The carrier is not liable for the following:

                    (a) loss or damage resulting from differences in weight or quantity
                        due to shrinkage, leakage or evaporation, except where the loss
                        or damage is caused by the negligence of the carrier or the
                        carrier’s agents;

                    (b) loss or damage occurring more than 48 hours after notice of the
                        arrival of the shipment at destination or at point of delivery has
                        been mailed to the address of the consignee, except where the
                        loss or damage is caused by the negligence of the carrier or the
                        carrier’s agents;

                    (c) loss, damage or delay caused by

                            (i) an act of God,

                           (ii) the Queen’s enemies,

                          (iii) the authority of the law,

                          (iv) quarantine,

                           (v) riots,

                          (vi) strikes,

                          (vii) a defect or inherent vice in the goods, or

                         (viii) the act or default of the shipper or owner;

                    (d) loss or damage caused by delay of or injury to, or loss or
                        destruction of, the shipment or any part of it due to conditions
                        beyond the control of the carrier, except loss or damage caused
                        by the negligence of the carrier on whose motor vehicle or
                        property the shipment was at the time the loss or damage
                        occurred;




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ALTA. REG. 292/97                                                   MOTOR TRANSPORT

                    (e) loss or damage occurring while the shipment is in a customs
                        warehouse under the Customs Act (Canada);

                    (f) loss, damage or delay resulting from improper or insufficient
                        packing, securing or addressing, or from chafing when packed
                        in bales;

                    (g) damage to or loss of

                            (i) fragile articles, or

                           (ii) shipments consisting wholly or in part of or contained in
                                glass,

                        unless the article or shipment is so described on the package
                        containing it, except where the damage or loss is due to the
                        negligence of the carrier or the carrier’s agents;

                    (h) loss or damage caused by

                            (i) delays beyond the carrier’s control, or

                           (ii) the refusal of any railway or other transportation line to
                                receive or forward the property due to any unusual or
                                unforeseen movements of or interference with traffic;

                    (i) loss or damage occurring to shipments addressed to a point at
                        which there is no agent of the carrier, after the shipments have
                        been left at that point;

                    (j) non-delivery, loss or destruction of the shipment, unless written
                        notice thereof is given at any office of the carrier within 30 days
                        after the time delivery should have been made;

                    (k) damage, partial loss or shortage, unless written notice thereof is
                        given at any office of the carrier within 30 days after delivery.

             6    Payment of duty and customs warehouse expenses shall be
             guaranteed by the shipper.

             7 At points where the carrier has delivery services, tender of the
             shipment for delivery to the consignee shall be made at any address
             given that is within those delivery limits.

             8 At points where the carrier has no delivery service, the carrier shall
             forthwith notify the consignee at the address given of the arrival of the
             shipment at that point.

             9 If a carrier does not have an office at the place to which the shipment
             is addressed then, unless the shipment is otherwise routed, the carrier
             shall deliver the shipment to a connecting carrier for furtherance to the
             shipment’s destination.



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ALTA. REG. 293/97                       MARKETING OF AGRICULTURAL PRODUCTS

               10 If any sum of money, other than the charges for transportation, is to
               be collected from the consignee on the delivery of the shipment and that
               sum is not paid within 10 days of tender for delivery, the carrier may
               return the shipment and collect the charges for transportation both ways
               from the consignor, and the liability of the carrier is that of
               warehouseman only while the shipment remains in his possession for the
               purpose of making collection.


               5 This Regulation comes into force on February 2, 1998.


                              ------------------------------

                             Alberta Regulation 293/97

                     Marketing of Agricultural Products Act

             EGG PRODUCTION AND MARKETING REGULATION

                                                               Filed: December 22, 1997

Made by the Alberta Egg Producers Board pursuant to sections 26 and 27 of the Marketing
of Agricultural Products Act.

                                          Table of Contents

                                   Interpretation and Application

               Definitions                                                           1
               Application                                                           2

                                             Prohibitions

               General                                                               3
               Producers                                                             4
               Processors                                                            5
               Application for licence                                               6
               Issue of licence                                                      7
               Refusal, cancellation and suspension                                  8
               Compliance with orders                                                9

                                                Quotas

               Fixing and allotting quota                                           10
               Quota certificate                                                    11
               Allotting quota                                                      12
               Authorized quota transfer                                            13
               Requirements to allot or transfer quota                              14
               Reversion and reduction of quota                                     15
               Temporary reduction of quota                                         16
               Reversion of quota                                                   17



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ALTA. REG. 293/97                       MARKETING OF AGRICULTURAL PRODUCTS



                                      Records and Information

              General                                                              18
              Registered producer                                                  19
              Processor                                                            20
              Hatcheryman                                                          21
              Board                                                                22

                                              General

              Disposal of poor quality eggs                                        23
              Service charges                                                      24
              Minimum price                                                        25
              Minimum price exemption                                              26
              Processor as Board’s agent                                           27
              Registration of mortgages                                            28
              Space density for hens                                               29

                             Transitional Provision, Repeal and Expiry

              Transitional                                                         30
              Repeal                                                               31
              Expiry                                                               32


                                Interpretation and Application
Definitions   1 In this Regulation,

                    (a) “base provincial quota” means 1 705 690 hens;

                    (b) “Board” means the Alberta Egg Producers Board;

                    (c) “Council” means the Alberta Agricultural Products Marketing
                        Council;

                    (d) “eggs” includes any class of eggs or egg products produced
                        from eggs laid by a hen;

                    (e) “exempt producer” means a person

                           (i) who does not possess, whether by ownership or
                               otherwise, more than 300 hens, or

                          (ii) whose productive capacity from that person’s
                               production facilities does not exceed 300 hens;

                    (f) “Federal-Provincial Agreement” means the agreement
                        respecting the revision and consolidation of the comprehensive
                        marketing program as agreed to by the parties for the purpose
                        of regulating the marketing of eggs in Canada, as revised from
                        time to time;


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ALTA. REG. 293/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (g) “hatcheryman” means a person who markets pullets or hens;

                    (h) “hen” or “layer” means a female common domestic fowl of the
                        species Gallus domesticas that is 19 weeks of age or older;

                    (i) “marketing” means buying, owning, selling, offering for sale,
                        storing, grading, assembling, packing, transporting, advertising
                        or financing;

                    (j) “permit” means a written authorization issued by the Board
                        pursuant to the Federal-Provincial Agreement;

                    (k) “person” means a person as defined in the Interpretation Act
                        and includes

                           (i) a partnership as defined in the Partnership Act,

                           (ii) any unincorporated organization that is not a partnership
                                referred to in subclause (i), and

                          (iii) any group of individuals that is carrying on an activity
                                for a common purpose and is neither a partnership
                                referred to in subclause (i) nor an unincorporated
                                organization referred to in subclause (ii);

                    (l) “Plan” means the Plan established by the Alberta Egg
                        Producers Plan Regulation (AR 258/97);

                (m) “possession quota” means the quota issued by the Board to a
                    registered producer prescribing the maximum number of hens
                    that that producer may possess at any one time;

                    (n) “processor” means a person who

                           (i) grades, packs or changes the nature of the eggs by
                               mechanical means or otherwise, or

                           (ii) markets the graded, packed or processed eggs,

                        or carries out one or more of those functions;

                    (o) “producer” means a person who is engaged in the production of
                        eggs in Alberta;

                    (p) “production” includes the possession of eggs;

                    (q) “production facilities” includes the buildings and improvements
                        in which the eggs are produced and the parcel of land on which
                        the buildings and improvements are located;

                    (r) “production quota” means the quota issued by the Board to a
                        registered producer prescribing the minimum number of eggs
                        that must be produced by that producer’s hens;


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ALTA. REG. 293/97                         MARKETING OF AGRICULTURAL PRODUCTS

                    (s) “pullet” means a female common domestic fowl of the species
                        Gallus domesticas that is less than 19 weeks of age;

                    (t) “quota” means the possession quota and production quota
                        granted by the Board to a registered producer;

                    (u) “quota year” means January 1 to December 31;

                    (v) “registered producer” means a producer who

                            (i) holds a producer’s licence, and

                           (ii) has been allotted a quota;

                 (w) “research facility” means an educational institution involved in
                     bona fide scientific research in respect of eggs as approved by
                     a resolution of the Board;

                    (x) “total provincial allotment of quota” means Alberta’s share of
                        regulated eggs under the national quota as established by the
                        Federal-Provincial Agreement and expressed either in dozens of
                        eggs or, if converted by the Board, in numbers of hens;

                    (y) “transfer” means every mode, direct or indirect, absolute or
                        conditional, voluntary or involuntary, of disposing of or parting
                        with property or with an interest in property, with or without
                        judicial proceedings, and includes, without limitation, a transfer
                        by conveyance, sale, payment, pledge, mortgage, lien,
                        encumbrance, gift or security.

Application   2 This Regulation applies to all persons who produce or market eggs
              unless they are exempted by

                    (a) the Plan,

                    (b) the Board under the Plan,

                    (c) this Regulation, or

                    (d) a resolution of the Board in respect of

                            (i) a research facility,

                           (ii) the owner of an approved hatchery supply flock under
                                the Hatchery Supply Flock Approval Regulation (AR
                                183/97), or

                          (iii) any other matter.




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ALTA. REG. 293/97                          MARKETING OF AGRICULTURAL PRODUCTS

                                              Prohibitions
General      3(1) No person shall commence or continue to engage in the production,
             marketing or processing of eggs or carry on the activity of a producer or
             processor unless that person has been issued a licence for that purpose
             by the Board for the quota year.

             (2) No person shall possess, whether by ownership or otherwise, more
             than 300 hens unless that person has been issued a licence for that
             purpose or granted an exemption under section 2 by the Board.

Producers    4(1) Unless the Board grants a written exemption, no registered
             producer shall market eggs that are not produced in the production
             facilities in respect of which that producer’s quota is allotted.

             (2) No registered producer shall

                    (a) purchase hens or purchase or raise pullets until that producer
                        has been issued a permit by the Board authorizing that producer
                        to do so, or

                    (b) purchase hens or purchase or raise more pullets than is provided
                        for in that producer’s permit.

Processors   5(1) Unless authorized by the Board, no processor shall receive, process
             or market eggs from any person other than

                    (a) a registered producer,

                    (b) an exempt producer, or

                    (c) a producer exempted by the Board under section 2.

             (2) Unless authorized by the Board, no processor may receive, process
             or market any eggs if that processor has reasonable grounds to believe
             that the person from whom the processor received those eggs has
             contravened

                    (a) the Act,

                    (b) the Plan,

                    (c) this Regulation,

                    (d) any other regulation made under the Act in respect of the Plan,
                        or

                    (e) an order or direction of the Board or the Council.




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ALTA. REG. 293/97                           MARKETING OF AGRICULTURAL PRODUCTS

Application for   6(1) A person may apply to the Board for one or more licences to
licence           operate as

                      (a) a producer,

                      (b) a processor, or

                      (c) a producer and a processor.

                  (2) An application for a licence shall contain the information required
                  by the Board.

                  (3) The Board may require an applicant for a licence to submit any
                  additional information the Board considers necessary.

                  (4) The Board shall consider every application that it receives.

                  (5) A processor shall obtain a separate licence for each premises,
                  building or place of storage that is operated by that processor.

                  (6) If a person operates in more than one capacity as a producer or
                  processor, that person shall apply to the Board for a licence for each such
                  capacity.

Issue of          7(1) Subject to section 8, the Board shall issue or refuse to issue a
licence
                  licence to the applicant within 90 days of the date of receipt of the
                  application by the Board.

                  (2) The Board may issue a licence subject to any terms and conditions
                  the Board considers appropriate.

                  (3) A licence issued by the Board expires on December 31 of the year
                  in which it is issued.

                  (4) A licence issued by the Board is not transferable.

                  (5) A licence issued by the Board

                      (a) is a licence to be engaged in the activity stated in the licence,

                      (b) is not an endorsement by the Board of the licence holder, and

                      (c) shall not be represented by the licence holder or any other
                          person as an endorsement by the Board.

                  (6) A licence issued under subsection (1) does not, of itself, entitle a
                  person to a quota.




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ALTA. REG. 293/97                           MARKETING OF AGRICULTURAL PRODUCTS

Refusal,       8(1) The Board may refuse to issue a licence
cancellation
and
suspension          (a) if the applicant fails to provide information or additional
                        information required by the Board under section 6(2) or (3),

                    (b) if the applicant has contravened

                            (i) the Act,

                           (ii) the Plan,

                          (iii) this Regulation,

                          (iv) any other regulation made under the Act in respect of the
                               Plan, or

                           (v) an order or direction of the Board or the Council,

                    (c) if the applicant, in the Board’s opinion, lacks the experience,
                        equipment or financial responsibility to engage in or to continue
                        to engage in the activity to which the application relates, or

                    (d) for any other reason that in the Board’s determination is
                        appropriate.

               (2) The Board may cancel or suspend a licence or refuse to renew a
               licence

                    (a) if the licensee has contravened

                            (i) the Act,

                           (ii) the Plan,

                          (iii) this Regulation,

                          (iv) any other regulation made under the Act in respect of the
                               Plan, or

                           (v) an order or direction of the Board or the Council,

                    (b) if the licensee has sold, leased or otherwise assigned that
                        licensee’s production facilities to another person,

                    (c) if the licensee

                            (i) is a lessee of production facilities, and

                           (ii) has ceased holding a leasehold interest in those facilities,

                    (d) if the licensee

                            (i) is a registered producer, and


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ALTA. REG. 293/97                         MARKETING OF AGRICULTURAL PRODUCTS

                           (ii) has stopped producing eggs,

                    (e) if the licensee

                           (i) is a corporation or partnership and there is a change in
                               the beneficial or legal ownership of the corporation or
                               partnership, and

                           (ii) has failed to obtain the Board’s approval for such a
                                change,

                    (f) if the licensee, in the Board’s opinion, lacks the experience,
                        equipment or financial responsibility to engage in or to continue
                        to engage in the activity to which the licence relates, or

                    (g) for any other reason that in the Board’s determination is
                        appropriate.

              (3) If the Board refuses, cancels, suspends or refuses to renew a licence,
              the Board must advise the applicant or licensee in writing of its decision.

              (4) The Board may

                    (a) suspend a licence for a period of time that it considers
                        appropriate, or

                    (b) in the case of a licence that is suspended, remove the
                        suspension.

              (5) Where the Board refuses to issue, cancels, suspends or does not
              renew the licence,

                    (a) the licensee must, on receiving notice of the Board’s decision,
                        immediately cease carrying on the activity authorized by the
                        licence, and

                    (b) the licensee or applicant, as the case may be, may make an
                        application pursuant to Part 5 of the Act.

              (6) Where the licence of a registered producer expires, or is cancelled,
              suspended or not renewed by the Board, that producer’s quota reverts to
              the Board.

Compliance    9 A licensee shall comply with all lawful orders or directions given by
with orders   the Board or the Council relating to the activity authorized by the
              licence.




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ALTA. REG. 293/97                           MARKETING OF AGRICULTURAL PRODUCTS

                                                  Quotas
Fixing and        10 A quota shall be fixed and allotted by the Board and may be fixed,
allotting quota   allotted, reduced or cancelled in accordance with this Regulation.

Quota             11(1) The Board must issue to every registered producer a quota
certificate       certificate that states

                      (a) the name, address and registration number of the person to
                          whom the quota certificate is issued,

                      (b) in the case of a possession quota, the maximum number of hens
                          that producer may possess at any one time,

                      (c) in the case of a production quota, the minimum number of eggs
                          that must be produced by that producer’s hens, and

                      (d) the location of the production facilities that are to be used to
                          house the hens referred to in clause (b).

                  (2) Where the Board increases or decreases a quota, it must issue to the
                  holder of that quota a new quota certificate.

Allotting quota   12(1) If the total provincial allotment of quota is increased or decreased,
                  the Board may implement that increase or decrease in accordance with
                  the following:

                      (a) any increase

                              (i) up to base provincial quota must be offered to all
                                  existing registered producers on a pro-rata basis, and

                              (ii) exceeding base provincial quota must be offered for sale
                                   to the general public;

                      (b) any decrease must be applied to all existing registered producers
                          on a pro-rata basis.

                  (2) The manner, nature, time, date and place of the sale referred to in
                  subsection (1)(a)(ii) must be determined by the Board.

                  (3) Where a registered producer is allotted a possession quota or an
                  amended possession quota increasing the maximum number of hens that
                  may be possessed by that producer, the registered producer must have
                  those hens in production in the production facilities of that producer
                  within 3 years of being notified by the Board of the allotment, otherwise
                  the quota reverts to the Board.




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ALTA. REG. 293/97                          MARKETING OF AGRICULTURAL PRODUCTS

Authorized       13(1) No registered producer shall transfer all or any part of that
quota transfer   producer’s quota, with or without production facilities, except in
                 accordance with this section and any quota transferred other than in
                 accordance with this Regulation is void.

                 (2) A registered producer may apply to the Board for a transfer of a
                 quota.

                 (3) An application for a transfer of quota must be made to the Board
                 prior to completion of the quota transfer.

                 (4) The registered producer shall pay a transfer fee of $250 to the Board
                 and the transfer fee shall accompany the application.

                 (5) If an application under subsection (3) is approved by the Board, the
                 new quota shall not take effect and the old quota shall not be cancelled
                 until the completion of the transaction and the filing of any proof of the
                 completion of the transaction that the Board may require.

                 (6) No application to transfer a quota shall be approved by the Board
                 unless

                     (a) the transferee qualifies for a licence to operate as a registered
                         producer under this Regulation,

                     (b) the registered producer applying to transfer the quota has been
                         in continuous production of eggs for not less than 3 years
                         immediately preceding the time of application to transfer the
                         quota to the transferee,

                     (c) the transferee undertakes to the Board that the quota acquired
                         will be in production in the production facilities of that
                         transferee within 3 years from the date of acquisition, and

                     (d) the registered producer applying to transfer the quota has paid
                         the fee required under subsection (4).

                 (7) A registered producer shall not lease a quota without production
                 facilities.

                 (8) Notwithstanding subsection (7), a registered producer may lease a
                 quota without production facilities if that quota is

                     (a) an increase in quota under section 12, or

                     (b) a quota transfer authorized by the Board.

Requirements     14(1) No person shall hold a quota, directly or indirectly, in excess of
to allot or      5% of the total provincial allotment of quota.
transfer quota

                 (2) The Board must not approve



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ALTA. REG. 293/97                            MARKETING OF AGRICULTURAL PRODUCTS

                    (a) an increase in a quota,

                    (b) the transfer of a quota,

                    (c) changes in the beneficial ownership of shares in a corporation
                        that is a registered producer, or

                    (d) changes in the beneficial ownership of a partnership that is a
                        registered producer

                that would result in a person holding a quota in excess of the limit
                established under subsection (1).

                (3) A quota may be allotted or transferred only to

                    (a) a person who is a Canadian citizen or is lawfully admitted to
                        Canada for permanent residence,

                    (b) a corporation, the majority of shares of which are beneficially
                        owned by persons who are Canadian citizens or are lawfully
                        admitted to Canada for permanent residence, or

                    (c) a partnership whose beneficial owners are Canadian citizens or
                        are lawfully admitted to Canada for permanent residence.

                (4) Unless the Board directs otherwise, a registered producer must
                ensure that the quota is in production in the production facilities of that
                producer within 3 years from the date the quota is allotted or transferred
                to that producer.

                (5) Unless the Board directs otherwise, a quota that is allotted or
                transferred must not be further transferred for a period of 3 years.

Reversion and   15(1) The Board may reduce or cancel a registered producer’s quota
reduction of
quota
                    (a) if the registered producer has contravened

                            (i) the Act,

                            (ii) the Plan,

                           (iii) this Regulation,

                           (iv) any other regulation made under the Act in respect of the
                                Plan, or

                            (v) an order or direction of the Board or the Council,

                    (b) if the registered producer has not used all or any part of that
                        producer’s quota,




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ALTA. REG. 293/97                        MARKETING OF AGRICULTURAL PRODUCTS

                    (c) if the registered producer fails to possess the maximum number
                        of hens permitted under that producer’s possession quota,

                    (d) if the registered producer fails to produce the number of eggs
                        permitted under that producer’s production quota,

                    (e) if the licence of the registered producer has been cancelled or
                        suspended,

                    (f) if the Board has not approved a change of ownership interest in
                        the registered producer’s production facilities to which the
                        quota relates, or

                    (g) if the registered producer is a lessee of production facilities to
                        which the quota relates and that producer has ceased to hold a
                        leasehold interest in those facilities.

               (2) If a registered producer possesses more hens than is permitted by that
               producer’s possession quota, the Board may reduce that producer’s quota
               in the manner prescribed by the Board, without permanently reducing
               that producer’s quota.

Temporary      16(1) A registered producer may apply to the Board for a temporary
reduction of
quota
               reduction of that producer’s quota for a period of time to be determined
               by the Board.

               (2) If the Board approves a temporary reduction of quota under
               subsection (1), the Board may allot the reduced quota to another
               registered producer for the period of time the quota is temporarily
               reduced.

               (3) On the termination of the period of time that a quota is temporarily
               reduced, the Board may re-allot the reduced amount to the original
               registered producer.

               (4) The Board must not consider a request for a transfer of a quota that
               has been temporarily reduced and allotted to another registered producer
               under subsection (2) until the quota has been re-allotted to the original
               registered producer.

Reversion of   17 Where the Board reduces or cancels a quota under section 15 or 16,
quota          that quota, or the reduced amount, as the case may be, reverts to the
               Board.




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ALTA. REG. 293/97                        MARKETING OF AGRICULTURAL PRODUCTS

                                     Records and Information
General      18(1) The Board may request a person engaged in producing,
             processing or marketing eggs to furnish any information relating to
             production, processing or marketing of eggs that is specified in the
             request.

             (2) A person who is required by this Regulation to keep records or other
             information must

                    (a) retain the records and other information for not less than 7 years
                        from the date the records or other information was made, and

                    (b) on request of the Board, make records or information available
                        for inspection during normal business hours.

             (3) A person who receives a request under subsection (1), section 20(2)
             or 21(3) must immediately comply with it.

Registered   19(1) A registered producer engaged in the production, processing or
producer     marketing of eggs must keep a complete and accurate record of all
             matters relating to that producer’s operation including, but not limited to,

                    (a) a daily record of

                            (i) the production of eggs, and

                           (ii) mortality of pullets and hens;

                    (b) a weekly record of the date, number and grade of marketed
                        eggs;

                    (c) a monthly record of

                            (i) the date, age and number of pullets and hens purchased
                                and the name of the person who sold the pullets and
                                hens, and

                           (ii) the date, number and location of pullets and hens sold or
                                disposed of.

             (2) If a registered producer fails to comply with subsection (1), that
             producer is deemed to have produced the number of eggs determined by
             the producer’s production quota in accordance with section 24(3).

Processor    20(1) A processor must prepare and forward a statement at the end of
             each week in time to reach the office of the Board not later than the
             Friday of the week following the date the statement is made, showing
             with respect to that week

                    (a) the amount, size and grade of eggs,


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ALTA. REG. 293/97                       MARKETING OF AGRICULTURAL PRODUCTS

                    (b) the location from where the eggs were purchased, brought into
                        Alberta and sent out of Alberta, and

                    (c) the person from whom eggs were purchased.

              (2) A processor must, on the request of the Board, file with the Board an
              estimate of that processor’s requirements of eggs for the period of time
              specified in the request.

Hatcheryman   21(1) A hatcheryman who places, sells or delivers female or unsexed
              pullets or hens to any person in a given month must prepare a statement
              for that month stating

                    (a) the name and business address of that hatcheryman,

                    (b) the name, address and registration number of each person
                        receiving a placement, sale or delivery of pullets or hens,

                    (c) the number of female or unsexed pullets or hens invoiced,

                    (d) the number of pullets or hens delivered free,

                    (e) the date on which each individual placement, sale or delivery
                        was made, and

                    (f) if that person is either an agent for, or a person who grows
                        pullets or hens for or on behalf of, the hatcheryman.

              (2) A hatcheryman must forward the statement under subsection (1) to
              the Board in time to reach the Board office not later than 7 days after the
              last day of the month.

              (3) A hatcheryman must, on the request of the Board, provide to the
              Board information relating to any person who purchases pullets or hens
              from that hatcheryman.

Board         22 The Board must maintain for each quota year a record of

                    (a) the name, address and registration number of each licensee,

                    (b) the name, address and registration number of each exempt
                        producer who markets eggs to a processor, and

                    (c) any allotment, transfer, reduction, cancellation, suspension or
                        non-renewal of a quota.




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ALTA. REG. 293/97                        MARKETING OF AGRICULTURAL PRODUCTS

                                               General
Disposal of    23 Where the Board is satisfied that all or any portion of a shipment of
poor quality   eggs produced by a registered producer is of poor quality or is not
eggs
               suitable for sale, the Board

                    (a) may dispose of that shipment of eggs as it thinks fit,

                    (b) must notify the registered producer of the disposition of the
                        shipment, and

                    (c) must account to the registered producer for the proceeds of sale,
                        if any.

Service        24(1) A registered producer who sells or transfers eggs to any person
charges
               must pay to the Board a service charge of 19.5 cents per dozen eggs sold
               or transferred.

               (2) If satisfactory evidence of the actual number of eggs sold or
               transferred by a registered producer is not readily available to the Board,
               the Board may determine the number of eggs deemed to have been sold
               or transferred by that producer in a quota year or a portion of a quota
               year in accordance with subsection (3).

               (3) For the purpose of determining the production quota of a registered
               producer, one hen is deemed to produce 24 dozen eggs per quota year.

               (4) A registered producer who sells or transfers eggs to a person other
               than a processor must

                    (a) pay the service charge under subsection (1) to the Board, and

                    (b) forward the service charge to the Board in time to reach the
                        Board office not later than Friday of the week following the
                        week in which the eggs were sold or transferred.

               (5) A processor who buys or receives eggs from a producer must

                    (a) deduct the service charge specified in subsection (1) from the
                        purchase price payable to that producer, and

                    (b) forward the service charge to the Board and account for the
                        service charge in a manner prescribed by the Board, not later
                        than Friday of the week following the week in which the service
                        charge was deducted.

               (6) A processor must keep service charges deducted under subsection
               (5) in a separate trust account for that purpose.

               (7) If a processor who buys or receives eggs from a producer fails to
               deduct the service charge as required by subsection (5), the processor is



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ALTA. REG. 293/97                         MARKETING OF AGRICULTURAL PRODUCTS

                liable to the Board for damages in an amount equal to the service charge
                which should have been deducted.

                (8) The Board may recover by legal action from a registered producer
                or processor

                    (a) the amount of any service charge that is not deducted and paid
                        as required by this Regulation, and

                    (b) legal costs on a solicitor-client basis incurred in the recovery of
                        any amount referred to in clause (a).

Minimum price   25(1) The Board must establish the minimum prices to be paid to a
                registered producer for eggs or any variety, class or grade of eggs.

                (2) A registered producer must not market eggs at a price that is less
                than the minimum price that is established under subsection (1).

                (3) A processor must pay to a registered producer for eggs purchased
                from that producer a sum that is not less than the price established under
                subsection (1).

                (4) Unless otherwise authorized by the Board, if a person and a
                registered producer agree to or cause to be made a debit note or agree to
                any rebate, discount, overshipment, charge, calculation or action,
                including a charge, calculation or action for transportation services, and
                that person subsequently purchases eggs from that registered producer,
                the minimum price for those eggs shall be the price established under
                subsection (1).

Minimum price   26 Notwithstanding section 25(2), (3) and (4), the processor may pay
exemption       to a registered producer

                    (a) a ½ cent less than the minimum price if the registered producer
                        ships fewer than 80 x 15 dozen eggs per week, or

                    (b) a ½ cent less than the minimum price if the registered producer
                        ships eggs in boxes, or

                    (c) 1 cent less than the minimum price if the registered producer
                        does both (a) and (b).

Processor as    27 The Board may appoint in writing any processor as an agent of the
Board’s agent
                Board for specific purposes, but a processor shall not be deemed an agent
                of the Board by reason only of the deduction and remittance of service
                charges required by this Regulation.




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ALTA. REG. 293/97                           MARKETING OF AGRICULTURAL PRODUCTS

Registration of   28(1) A person who holds a mortgage as a charge on land against a
mortgages         production facility in respect of which a quota is allotted may record that
                  mortgage with the Board in a manner determined by the Board.

                  (2) If a mortgagee records a mortgage with the Board under subsection
                  (1), that mortgagee must at the same time also record with the Board a
                  written acknowledgment by the registered producer of the mortgagee’s
                  interest in the production facilities in respect of which the quota is
                  allotted.

                  (3) If a mortgagee discharges an interest recorded with the Board, that
                  mortgagee must notify the Board in a manner provided for by the Board.