Oil and gas royalties and freehold production tax

Last updated on June 27, 2024

If you produce and sell oil or natural gas resources in B.C., you need to pay royalties or freehold production tax.

What you are charged depends on who owns the rights to the underlying oil and natural gas on the land producing the resource:

  • Crown Land - Royalties are charged when the government owns the oil and natural gas rights
  • Freehold Land - The freehold production tax is charged when the government does not own the oil and natural gas rights
Managing oil and gas resources

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Other taxes

There may be other taxes you might need to pay under other provincial laws. Learn more about: