To stimulate job creation and industry growth in the oil and gas sector, the Province will make $120 million in royalties available for new road and pipeline projects under the Infrastructure Royalty Credit Program (IRCP).

New investments in infrastructure projects will increase industry's access to promising resource areas, and support year-round work in exploration and production, providing well-paying jobs and business opportunities in northeast British Columbia.

Since 2004, the Province has awarded over $830 million in royalties to eligible oil and gas companies through IRCP, resulting in more than 200 new or upgraded all-season roads and pipeline projects in B.C. over the past decade. These projects represent a total capital investment of more than $1.9 billion, without direct cost to government.

The program requires oil and gas companies to fund the entire cost of an approved infrastructure project, such as a road. Once completed, the companies are then eligible to recover up to 50 per cent of the project's costs. This approach stimulates year-round activity and generates additional royalty revenue to the Province.

Oil and gas companies can apply for the latest instalment of IRCP until April 16, 2014. Applications will be ranked according to their potential benefits with approval going to the projects which demonstrate the highest economic benefits to British Columbia.

The Request for Applications information can be found at: http://www.empr.gov.bc.ca/OG/oilandgas/royalties/infdevcredit/Pages/default.aspx

Quote:

Minister of Natural Gas Development Rich Coleman -

"The Infrastructure Royalty Credit Program continues to play an important role in helping natural gas and oil companies make significant investments in roads and pipeline infrastructure. The program gives an incentive to companies to capitalize on our resources while giving a fair return to the owners of our resources; British Columbians."

Quick Facts:

• This will be the 13th instalment of the Infrastructure Royalty Program.
• The province calculates Return on Investment (ROI) of two and a half times the royalty credit released. Five years from now, a $120 million investment translates to approximately $300 million in royalty revenue.

Learn More:

Details about the Infrastructure Royalty Credit Program, including the Request for Application and information about previous instalments, 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

British Columbia's Natural Gas Strategy: Fuelling B.C.'s Economy for the Next Decade and Beyond, as well as the Province's LNG Strategy: A Strategy for B.C.'s Newest Industry can be found at: http://www.gov.bc.ca/ener/popt/down/liquefied_natural_gas_strategy.pdf

Further details about B.C.'s growing LNG industry can be found at: www.LNGinBC.ca

Media Contact:

Sandra Steilo
Ministry of Natural Gas Development
250 952-0617