Oil producers receive royalty invoices each month for each well event or tract in a Production Entity (PE) they have an interest in that is producing and/or reporting sales. The amount owing is determined using the information provided by producers and operators when they file their reports.
- BC-S1, Monthly Production Statement
- BC-S2, Monthly Disposition Statement
- BC-12, Reporting Interest Statement
Royalties are calculated monthly. Once the monthly royalty rate has been established for the well or tract, the royalty is calculated based on:
- ownership interest for each producer reported on the BC-12
- monthly sales volumes and values reported on the BC-09
- monthly production volumes reported on the BC-S1
The gross royalty payable is reduced by any exemptions or credits that the producer is entitled to claim. For more information about calculating your royalties, refer to sections 4.0 and 7.0 of the Oil and Gas Royalty Handbook (PDF).
- the volume of oil produced by the well or tract
- whether the oil is produced from Crown land or freehold land
- the oil vintage: new oil, old oil, third tier oil, or heavy oil
Oil producers may reduce their royalties if they qualify for the: