Refunds on oil and natural gas royalties and tax accounts

If you overpaid on royalties or freehold production tax, we will use the amount owing to you as credit to offset any new, future debts on that account.

Alternatively, you can request a refund through eTaxBC or by emailing Oil&GasRoyaltyQuestions@gov.bc.ca.

Interest on overpayments

If there is still a credit on your account after offsetting any new debts, credit interest will accrue from the 61st day after the amount became overpaid.

This also applies to amendments on prior months, where the amendment results in a lower royalty due than you previously reported and paid.

Credit interest is calculated at the prime lending rate minus 2 percent.

Example scenarios for overpayment

Based on new information, your January 2020 production month gas royalty charge is amended on March 23, 2023, resulting in a lower royalty. The original royalty was due on March 31, 2020.

On-time payment

If you paid the original royalty amount in full on March 31, 2020, when it was due, that payment is now an overpayment.

You’re eligible to receive credit interest from May 31, 2020 (March 31 payment date plus 61 days) until the overpayment is used to offset other production months or is refunded to you.

The applicable credit interest is calculated at the time the overpayment is used to offset other months (or when a refund request is processed) and is then credited to your account or refunded to you.

Late payment

If you paid the original royalty late on August 2, 2020, you were charged interest from April 1 to August 2, 2020. The amendment takes effect on March 31, 2020, and reduces the amount of interest charged for paying late.  This is credited back to your royalty account immediately.

You’re eligible to receive credit interest from October 2, 2020 (August 2 payment date plus 61 days) until the overpayment is used to offset other months or is refunded to you. The applicable credit interest is calculated at the time the overpayment is used to offset other months (or when a refund request is processed) and is then credited to your account or refunded to you.

If an amount is owing to you we will use the credit to offset any new debts on that account. If you wish to use the credit to offset a current or future debt on a different account, please contact your royalty analyst before the next invoice date.

You can request a refund by email to your royalty analyst or Oil&GasRoyaltyQuestions@gov.bc.ca, or through eTaxBC.

Note: Refund requests can only be processed once a full validation of your information is completed.