Royalties & Royalty Programs
British Columbia's royalty regime structure for oil and natural gas includes innovative royalty rates and royalty credit and deduction programs.
Incentives for Producers of Oil & Natural Gas
Oil and gas companies can apply for a credit of up to 50 per cent of the cost of building clean infrastructure projects.
Oil and gas companies can apply for a credit of up to 50 per cent of the cost of building roads or pipelines.
This credit is for companies drilling deep wells, to cover a portion of the drilling and completion cost.
This royalty reduction is for gas wells with production below a certain threshold.
Shallow gas well events that meet stringent low-productivity and depth requirements may qualify for the UMWRR.
When a previously drilled well is drilled deeper to maximize the development of known resources, it might qualify for a re-entry credit.
If an exploratory wildcat well is classified as a discovery well, it may qualify initially for an exemption.
Intended for technically challenging areas at an early stage of exploration or development, the NPRP allows lower royalty rates initially in exchange for higher rates once capital costs are recovered. Applications are not currently being accepted.