Oil and natural gas allowances

Allowances cover the costs associated with processing the Crown's royalty share of oil and natural gas by reducing the royalties you must pay each month.

 There are two allowances available.

Producer cost of service allowance (PCOS)

Applicable to natural gas royalties only, producer cost of service allowance covers the cost of moving the Crown’s share of gas from the wellhead to the processing plant’s inlet.

Gas cost allowance (GCA)

Applicable to oil and natural gas royalties, gas cost allowance (called "Allowable Costs" in Petrinex) offsets the cost of processing the Crown’s share of raw gas and transporting the Crown’s share of marketable gas, natural gas liquids and oil through sales lines.