The Province has approved $120 million in royalty credits which will lead to the development of 30 new infrastructure projects in northeast B.C. The building of these projects will create over 2,085 direct jobs.

Twelve companies are being awarded credits under the 2011 Infrastructure Royalty Credit Program. New and upgraded roads and pipelines will improve access to underdeveloped areas and increase year-round production activities, which will generate more jobs and more business opportunities in the province's petroleum and natural gas sector.

Industry funds the entire cost of each infrastructure project. Companies can then apply for a credit of up to 50 per cent of the construction costs, which are applied against the royalties companies pay to the Province. The Province continuously evaluates the program and follows up on what other jurisdictions are doing.

Projects were awarded credits under the Infrastructure Royalty Credit Program following a Request for Applications and careful evaluation of each project's economic benefits to British Columbia. As in previous years, industry's response to the Request for Applications was very strong. Forty nine applications, involving a total request of approximately $527 million in estimated construction costs, were submitted to the Ministry of Energy and Mines for review.

Quick Facts:

• Since its inception in 2004, the Infrastructure Royalty Credit Program has led to the development of 75 new road-based ventures and 93 new pipeline projects.
• This accounts for more than $1 billion in capital investment and about $5 billion in private-sector drilling and other investment activities.
• The Province aims to achieve a five-year rate of return on investment of $2.50 per royalty-credit released. In other words, five years from now, the 2011 allocation of infrastructure royalty credits is expected to have generated new net incremental royalties of approximately $300 million.
• The return on investment increases with time because wells produce for many years, meaning the earliest instalments of the program are providing the largest source of revenue for the Province.

Learn More:

Details about the Ministry of Energy and Mines' Infrastructure Royalty Credit Program, including information about previous instalments of the program, can be found at: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/infdevcredit/Pages/default.aspx

For more information on B.C.'s royalties and royalty programs: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/Pages/default.aspx

Contact:

Jake Jacobs
Ministry of Energy and Mines
250 952-0628
250 213-6934 (cell)