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Heavy Oil/Oil Sands - Research/Development

Industry Code: 06601

Compulsory
Industry Custom Pricing - CR

Employers in this industry specialize in research and development into new technologies for recovering oil from heavy oil deposits or bituminous sand through "in situ" or "well" recovery methods, which are typically steam assisted operations.

Operation Details:

Employers will design and operate test facilities for this research and development purposes. This is purely a research industry and is not intended for exploration or commercial processing activities. Once employers begin operating on a commercial basis, the operations would be classified in industry 06300, Oil and Gas Exploration and Development - Upstream Operations.

Contract operators may be engaged to operate test facilities and would be classified along with other upstream production operators in industry 06305.

Underwriting Considerations:

Industry 06601 is intended for those who act as consultants to the oil exploration industry, by researching and developing new technologies. Oil companies themselves would not qualify for industry 06601 to cover their research and development divisions.

Research and development related to the mining of oil sands, above or underground, should be classified in the appropriate mining industry, such as 06600, Mining and Processing of Bituminous Sand for Oil Extraction; 06100, Mining - Underground; 06110, Mining - Open Pit; or 06111, Overburden Removal.

Industry Custom Pricing: Waiving Cost Relief Option

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2010. Costs related to the aggravation of a pre-existing condition will not be removed from the experience record of employers classified in this industry. In return, the portion of premiums collected to fund retroactive cost relief has been removed from the industry rate, resulting in a reduction in WCB premium rates for the industry.

Premium Rate History:

Activities:

Oil Sands and Heavy Oil - Research and Dev

Rate Group History:

This industry was reviewed along with the general petroleum industry review that was conducted in 1991. As a result, this rate group was created in 1992, grouping together many upstream oil production activities.

Employers in this industry specialize in research and development into new technologies for recovering oil from heavy oil deposits or bituminous sand through "in situ" or "well" recovery methods, which are typically steam assisted operations.

Premium Rate History:

Activities:

Oil Sands and Heavy Oil - Research and Dev

Operation Details:

Employers will design and operate test facilities for this research and development purposes. This is purely a research industry and is not intended for exploration or commercial processing activities. Once employers begin operating on a commercial basis, the operations would be classified in industry 06300, Oil and Gas Exploration and Development - Upstream Operations.

Contract operators may be engaged to operate test facilities and would be classified along with other upstream production operators in industry 06305.

Underwriting Considerations:

Industry 06601 is intended for those who act as consultants to the oil exploration industry, by researching and developing new technologies. Oil companies themselves would not qualify for industry 06601 to cover their research and development divisions.

Research and development related to the mining of oil sands, above or underground, should be classified in the appropriate mining industry, such as 06600, Mining and Processing of Bituminous Sand for Oil Extraction; 06100, Mining - Underground; 06110, Mining - Open Pit; or 06111, Overburden Removal.

Industry Custom Pricing: Waiving Cost Relief Option

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2010. Costs related to the aggravation of a pre-existing condition will not be removed from the experience record of employers classified in this industry. In return, the portion of premiums collected to fund retroactive cost relief has been removed from the industry rate, resulting in a reduction in WCB premium rates for the industry.

Rate Group History:

This industry was reviewed along with the general petroleum industry review that was conducted in 1991. As a result, this rate group was created in 1992, grouping together many upstream oil production activities.