The Deep Discovery Royalty Program provides a break from royalties to companies drilling deep discovery wells. Deep discovery wells qualify for either a three-year royalty holiday or 283,000,000 m
3 of royalty-free gas, whatever is less.
Key Definitions: "Deep Discovery Well" means a discovery well that
- has a completion point that has a True Vertical Depth deeper than 4000m;
- has a spud date after November 30, 2003;
- has a surface location that is at least 20 kilometres away from the surface location of any well in a recognized pool of the same formation; and
- is not part of a coalbed methane project.
“True Vertical Depth” means, for any point on the wellbore of a well, the distance between the wellbore point and the point, directly above the wellbore point, that is the same elevation as the Kelly bushing used in drilling that well.
