The Infrastructure Royalty Credit Program
Through the Infrastructure Royalty Credit Program, oil and gas companies can apply for a credit to the royalties they would otherwise pay to the Province. This credit can be as much as fifty percent of the cost of constructing roads, pipelines or associated facilities.
The purposes of the program are to:
- Facilitate increased oil and gas exploration and production in under-developed areas; and
- Extend the drilling season to allow for year-round activity.
Since 2004, British Columbia’s Infrastructure Royalty Credit Program (Program) has allocated over $600 million in infrastructure royalty credits to oil and gas companies, and as of August 2010, the Program has resulted in the development of 76 new or upgraded all-season roads and 97 pipeline projects in British Columbia. The Program is in direct support of the 2007 BC Energy Plan commitment to continue enhancing infrastructure and improving access to resources.
The British Columbia Ministry of Energy and Mines is requesting applications from companies in the oil and gas industry to participate under the 2012 Infrastructure Royalty Credit Program for submission during the following dates:
Issue Date: February 23, 2012
Closing Date: April 19, 2012
The program is designed to facilitate access to new and under developed areas of British Columbia, and/or provide all-season access to oil and gas resources. If you are submitting an application for the 2012 Infrastructure Royalty Credit Program the RFA documents and instructions can be found by clicking here.
Please visit the website regularly for any updates.
If you are requesting royalty credits for an approved infrastructure royalty credit project, please click here.
The above link accesses an excel spreadsheet for request for royalty credit deduction of projects which have been completed under the Infrastructure Royalty Credit Program. The Royalty Deduction Submission Spreadsheet provides for the input of well production and estimated production to determine the royalties and royalty deduction for an infrastructure project that has been approved by the Ministry of Energy.
