Reduce your oil and natural gas royalties

Last updated on August 23, 2024

If you produce oil or natural gas in B.C., you may be able to reduce the amount of royalties you pay. Some adjustments are automatic and others are not. Learn how allowances, exemptions, credits, deductions and lower royalty rates may apply to you.

Allowances

Producer cost of service (PCOS)
Gas cost allowance (GCA)

Exemptions

Discovery wells
Natural gas or natural gas by-products used for oil or natural gas production, drilling or injection

Credits and deductions

Natural gas deep well deduction
Natural gas deep well re-entry deduction
Infrastructure credits (such as road credits)
Summer drilling program

Lower royalty rates

Low productivity well royalty reduction
Marginal well royalty reduction
Ultramarginal well royalty reduction
Net profit royalty program

Contact information

Find out who to contact for your questions about oil and natural gas in B.C.

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