Oil & Gas Commission Levy & Orphan Site Restoration Tax

Oil and natural gas producers pay an Oil and Gas Commission Levy and an Orphan Site Restoration Tax. The Ministry of Finance invoices and collects these amounts on behalf of the Oil and Gas Commission.

Oil & Gas Commission Levy

The Oil and Gas Commission Levy funds the B.C. Oil and Gas Commission (OGC), which regulates oil and natural gas activities for the benefit of British Columbians. The OGC is the permitting agency for oil and natural gas development in B.C.

The levy also helps fund industry-related research conducted by the B.C. Oil and Gas Research and Innovation Society (BC OGRIS).

Current Oil and Marketable Gas Levy Rates
Oil Levy
(per cubic metre of oil production)
$1.30
Marketable Gas Levy
(per 1000 cubic metres of marketable gas)
$0.71

For information on historical oil and gas levies, visit the OGC’s Industry Bulletins.

Orphan Site Restoration Tax

The orphan site restoration tax provides funding to the Oil and Gas Commission (OGC) for:

  • the costs of abandonment and restoration of orphan wells, test holes, production facilities and pipelines
  • any costs incurred when the OGC has to seek reimbursement for the costs outlined above
  • the OGC’s operational costs directly related to the fund
  • compensation paid to land owners on whose land the OGC spends money on an orphan site if:
    • the operator has failed to make payments to the land owner under a surface lease, and
    • the compensation amounts are within the maximums, conditions and limitations
Current Orphan Site Restoration Tax Rates
Orphan site restoration tax on oil production
(per cubic metre of oil production)
$0.06
Orphan site restoration tax on marketable gas
(per 1000 cubic metres of marketable gas)
$0.03

 For information on historical orphan site restoration tax rates, visit the OGC’s Industry Bulletins.