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Ministry of Energy Mines and Responsible for Core Review


NEW  Long Term Royalty Agreement


A long-term royalty agreement (LTRA) specifies the royalty rate owed to the Province by a producer as well as a minimum amount of production that must occur each year.


The first LTRA reached in British Columbia has been completed by the Province and the North Montney Joint Venture.


The North Montney Joint Venture is similar to the ownership structure of Pacific NorthWest LNG, with Progress Energy leading exploration and production activities on behalf of PETRONAS.


The agreement can be found here: Long Term Royalty Agreement


The signed agreement can be found here: Long Term Royalty Agreement Signed


Royalties and Royalty Programs 


British Columbia collects royalties on oil and natural gas produced from a Crown lease. The royalty regime is structured to maximize the amount of economic rent collected from produced oil and natural gas, while ensuring that producers are able to earn fair return on their investment. British Columbia also has a competitive royalty regime compared to other jurisdictions in Canada and the US.

The goals of the current royalty regime are:

  • Values to the Crown are maximized: encourage resource development to the benefit of the Crown in terms of maximizing royalties and taxes
  • Equity: producers, large and small, are treated equally under the regime
  • Long-term investment: the royalty regime is aimed at rational, long-term investment by industry 
  • Administrative Ease: simple to administer and verify for government and industry.

Since 2002, the government has introduced royalty rates for marginal and ultra-marginal natural gas, royalty credits for deep gas exploration, summer drilling and infrastructure development. The coalbed methane royalty recognizes the unique development and production costs of this resource. All these new changes to the royalty regime will ensure that British Columbia’s fiscal regime remains competitive with other jurisdictions, encourage development of natural resources, and in turn increase direct revenue to the Province. These will also create jobs in the oil and gas sector and help revitalize the provincial economy.


The following Performance Measures Report provides details about the four goals of British Columbia’s current oil and gas royalty regime and establishes measurable indicators and targets.


2014 Performance Measures Report 

2013 Performance Measures Report

2012 Performance Measures Report 

2011 Performance Measures Report

2010 Performance Measures Report


Stimulus Package Survey Results


The Ministry conducted a survey of producers to determine the impact of the Oil and Gas Stimulus package.  PricewaterhouseCoopers validated the methodology and global results of the survey. The executive summary can be found here.

This page and the related subpages provide brief explanations of the royalty programs and may not contain complete information.  For full details contact:

  • Aaron Nelson (Director, Royalty Policy Section, Policy and Royalty Branch, Upstream Development Division (formerly Oil and Gas Division), Ministry of Natural Gas Development) at 250-953-3740.
  • Drew Ritonja (Executive Director, Mineral, Oil and Gas Revenue Branch, Ministry of Finance) at 250-387-1182.

For detailed information on legislation, calculating and reporting B.C. oil and gas royalties and taxes, please visit the Ministry of Finance Natural Resources Page.


Webinar – British Columbia Royalty Programs


The B.C. Ministry of Natural Gas Development offered a free webinar on British Columbia’s Royalty Programs in September 2009. 


Please click here to view the presentation.


The webinar was intended to increase awareness on B.C.’s royalty programs in the oil and gas industry, and help industry make informed investment decisions for the 2010 budget cycle.