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NET PROFIT ROYALTY PROGRAM TO FUEL OIL AND GAS
GROWTH |
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VICTORIA – British Columbia is launching a new Net Profit Royalty Program to encourage the development of oil and gas resources that have higher costs and technical complexity.
The Net Profit Royalty Program delivers on the BC Energy Plan commitment to create a vibrant, competitive oil and gas sector in British Columbia.
The Net Profit Royalty Program is distinct from existing targeted royalty programs. It will promote the development of resources that are unlikely to be developed otherwise by focusing on resources that are:
· technically complex, such as coalbed gas, tight gas and shale gas;
· remote from existing infrastructure;
· requiring enhanced recovery; or
· in the Interior Basins.
Targeted royalty programs introduced by the Province have helped to double drilling activity in Northeast British Columbia in the past six years and have increased the Province’s share of royalties. In the past four years, incremental oil and gas royalties of more than $819 million dollars from targeted royalty programs have helped fund vital government services.
New regulations will be enacted to implement the new program this fall.
For more information about the Net Profit Royalty Program, visit www.em.gov.bc.ca/subwebs/oilandgas/.
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Note: The online
version of this information bulletin was amended on Aug. 3, 2007.
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Public Affairs Officer Ministry of Energy, Mines and Petroleum Resources 250 952-0628 250 213-6934 (cell) |
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For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca. |
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