Oil Royalties

Oil producers receive royalty invoices each month for each well event or tract in a Production Entity (PE) they have an interest in that is producing and/or reporting sales. The amount owing is determined using the information provided by producers and operators when they file their reports.

Producers:

Facility Operators:

Pipeline Operators:

Plant Operators:

Calculating Royalties

Royalties are calculated monthly. Once the monthly royalty rate has been established for the well or tract, the royalty is calculated based on:

  • ownership interest for each producer reported on the BC-12
  • monthly sales volumes and values reported on the BC-09
  • monthly production volumes reported on the BC-S1

The gross royalty payable is reduced by any exemptions or credits that the producer is entitled to claim. For more information about calculating your royalties, refer to sections 4.0 and 7.0 of the Oil and Gas Royalty Handbook (PDF).

Royalty Rate

A royalty rate is calculated monthly for each well event, or each tract in a Production Entity (PE). The royalty rate can be up to 40% of the value of the oil produced and is based on:

Reduce Your Royalties

Oil producers may reduce their royalties if they qualify for the: