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 50 per cent 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, B.C.’s Infrastructure Royalty Credit Program has allocated over $435 million in infrastructure royalty credits to oil and gas companies, and as of March 31, 2009, the Program has resulted in the development of 58 new or upgraded all-season roads and 52 pipeline projects in B.C. The ministry has delivered three separate $30 million instalments of a road-based royalty credit program, a $36.5 million pipeline-based instalment, and a $90 million combined (road and pipeline) royalty credit instalment. In 2008, a $100 million road and pipeline instalment was delivered, and earlier in 2009 a $120 million road and pipeline instalment was approved into an additional 31 road and pipeline projects. The Infrastructure Royalty Credit Program is in direct support of the 2007 BC Energy Plan commitment to continue enhancing infrastructure and improving access to resources.
The following link accesses the Excel spreadsheet as outlined in the Infrastructure Royalty Deduction Agreement Schedule B – Well Production and Data Requirements for Royalty Deduction. Please use 
this spreadsheet for requesting a royalty deduction submission. The spreadsheet provides for the input of well production and estimated well production to determine the royalties and royalty deduction for an Infrastructure project. Note: Submit by email the electronic version of the Excel spreadsheet to the Project Manager assigned to the project – see Page 7 of the Royalty Deduction Agreement.
If you need further assistance or have questions regarding this spreadsheet, please contact:
Lee Burton, Infrastructure Economist
Phone: (250) 953-3774
New Request for Applications (RFA) for Fall 2009
The British Columbia Ministry of Energy, Mines and Petroleum Resources (MEMPR) is requesting applications from companies in the oil and gas industry to participate under the Fall 2009 Infrastructure Royalty Credit Program. 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. This Fall 2009 instalment has been approved as part of the Oil and Gas Stimulus Package announced on August 6th, 2009.
Please visit this website regularly for any updates.
APPENDIX A - Application Worksheets:
If you are prompted for a password, please select "cancel" and you will be able to access the file if you are using Internet Explorer.
APPENDIX B - Agreements:
Details of the Request for Applications for previous instalments of the Infrastructure Royalty Credit Program can be found here.
