Interest on Overdue Oil & Natural Gas Royalties & Tax
Interest applies when your oil or natural gas royalty/tax payment becomes overdue.
Interest also applies when your estimate account balance is less than 90% of the actual oil or gas royalties payable. Interest is charged on the difference between the estimate account balance and the actual amount payable for a production month.
Interest doesn’t apply to any penalties you have been assessed.
Interest is calculated from the start of the statement period to the statement date (i.e. the number of days in that month). When your royalties have been adjusted for a previous month, interest is calculated based on the number of days from the initial payment due date to the start of the statement period.
Interest is set at an annual rate fixed for each quarterly period on:
- January 1
- April 1
- July 1
- October 1
Each quarter you will be charged interest at a rate of 3% above the prime lending rate of our principal banker on the 15th day of the month immediately before the beginning of the quarter.
If you are issued an assessment as the result of an audit, interest may be assessed as a lump-sum amount.
You will not be charged interest if the amount owing is less than $5.00.
Report any interest you owe on the BC-15, Petroleum and Natural Gas Remittance Advice.
If you have overpaid your royalties for a production month, we will pay interest if your estimate account balance is greater than 110% of the actual oil and natural gas royalties/taxes payable for that month.
Interest is also paid on credit balances and prior period amendments, if applicable.