Does the reference in para. (d) of the Canadian resource property ("CRP") definition, in its application to a rent or royalty, to the payer thereof having an "interest in" the well or accumulation require a real property interest, or is a contractual interest sufficient? CRA responded:
An “interest” in the well or accumulation … requires that the payer must have a right to take production from the well or accumulation. For example, a farmee who drilled a well pursuant to a farm-out agreement generally has an interest in the well. Also, a lessee under a Crown lease has a right to take production from the accumulation and is considered to have an interest in the accumulation. Of course, the conditions in paragraph (d) of the [CRP] definition … must be met … .