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Royalties and Royalty Programs

Last updated on August 27, 2024

British Columbia's ​royalty regime structure for oil and natural gas includes royalty rates and royalty credit programs.

The Province introduced a new royalty framework in May 2022 that comes into effect September 1, 2024. Learn about the new framework and the transition period that began September 1, 2022

Incentives for Producers of Oil & Natural Gas

Oil and gas companies can apply for a credit of up to 50 per cent of the cost of building clean infrastructure projects. Applications to this program for new projects are no longer being accepted.

Oil and gas companies can apply for a credit of up to 50 per cent of the cost of building roads or pipelines. Applications to this program for new projects are no longer being accepted.   

This credit is for companies drilling deep wells, to cover a portion of the drilling and completion cost. Wells spudded September 1, 2022 or later do not qualify for this program.

This royalty reduction is for gas wells with production below a certain threshold. Wells spudded September 1, 2022 or later do not qualify for this program.

Shallow gas well events that meet stringent low-productivity and depth requirements may qualify for the UMWRR. Wells spudded September 1, 2022 or later do not qualify for this program.

When a previously drilled well is drilled deeper to maximize the development of known resources, it might qualify for a re-entry credit. Wells spudded September 1, 2022 or later do not qualify for this program.

If an exploratory wildcat well is classified as a discovery well, it may qualify initially for an exemption. Wells spudded September 1, 2022 or later do not qualify for this program.

Intended for technically challenging areas at an early stage of exploration or development, the NPRP allows lower royalty rates initially in exchange for higher rates once capital costs are recovered. Applications are not currently being accepted.

Performance Measures Report

The following Performance Measures Report provides details about how British Columbia’s legacy oil and gas royalty regime and establishes measurable indicators and targets to evaluate how the policy meets the province's needs.

Oil and Gas Taxes and Royalties

Find detailed information on legislation, calculating and reporting BC oil and gas royalties and taxes.