Natural gas allowances

When natural gas is produced, it often contains impurities that have to be removed.  Allowances cover the costs associated with processing the Crown's royalty share of natural gas by reducing the royalties you must pay each month. There are two allowances available:

• Producer cost of service (PCOS)

PCOS covers the cost of moving the Crown's royalty share of gas from the wellhead to processing plant's inlet. This includes activities such as gathering, dehydration and compression of raw gas. The allowance amount is deducted from the monthly royalties. 

• Gas cost allowance (GCA)

GCA covers the cost of construction and operations for the Crown's royalty share of gas processed through producer-owned gas processing plants and gas transported through producer-owned gas pipelines. The allowance reduces the gas price used to calculate the monthly royalties.