The Canadian exploration expense account (CEE) is composed of certain exploration expenses incurred by resource companies in Canada. These expenses are deductible against taxable income. Resources companies may elect not to use these deductions and transfer them to a Northern Limited Partnership.

When transferred to a Northern Limited Partnership, these expenses are allocated pro-rata to the unitholder who adds them to his Cumulative Canadian Exploration Expense (CCEE) account which he may claim at the end of a taxation year as a deduction against taxable income. Approximately 100% of the investment in year one is deductible for the end of the taxation year while the balance is deductible in the following few year.

Unused CCEE not deducted in given year may be carried forward.