Effective April 1, 2014, industry operating in British Columbia will benefit from the expansion of the Deep Well Royalty Credit Program. By providing credits for deep well drilling, companies will increase their investments in these types of wells and create jobs on the ground.

The Province’s Ultra-marginal Royalty Program also will be updated. This program reduces the royalties paid by industry from wells that have a low rate of production. 

The revenue generated from these improvements are expected raise $2.9 million over the next three years. 

Operators will not be eligible for both programs concurrently. 

Expanding or introducing new royalty programs is necessary to make sure the natural gas sector remains competitive, and it is part of the Government of British Columbia’s 10-year Natural Gas Strategy: http://www.gov.bc.ca/ener/popt/down/natural_gas_strategy.pdf.

Increasing exploration and drilling operations creates jobs and facilitates economic activity all over the province.

Industry was consulted about these updates late last year.

Media Contact:

Sandra Steilo
Ministry of Natural Gas Development
250 952-0617