 |
| Original News Release |
|
| Original News Release |
New Initiatives New initiatives under the Oil and Gas Development Strategy for the Heartlands build on the successful program launched by government in May of 2003. The strategy is a comprehensive program that develops and expands the province’s service sector supporting the oil and gas industry; addresses resource and community road infrastructure; aims to reduce and streamline regulation; and targets royalty incentives to encourage increased exploration and resource development.
The new initiatives further advance the provincial government’s goal of creating the right fiscal and regulatory environment to accelerate oil and gas development in British Columbia.
The new
initiatives support the four pillars laid out in the original OGDS strategy. Roads and Infrastructure – A Foundation for Growth · The OGDS introduced in May, 2003 provided royalty credits of up to $10 million a year toward construction, upgrading and maintenance of road infrastructure critical to support resource exploration and development. Industry is required to cost-share equally on proposed projects. This initial allocation prompted a significant industry response to a call for proposals. Based on this response, the new initiatives substantially expand the program providing an additional $20 million per year, for a total of $30 million per year, in royalty credits for infrastructure development to support oil and gas development. This level of investment will be matched by industry.
Royalties: Incentives for Exploration and Development · Further changes to the deep drilling royalty credit will encourage greater exploratory drilling activity by targeting directional, horizontal, re-entries and super-deep gas wells. · Development of a new “net profit” royalty regime to encourage development of unconventional gas resources such as tight gas and shale gas and new basins. · The Ministry of Energy and Mines will be initiating a call for proposals on potential unconventional gas projects with the intent of developing a net profit royalty regime.
A Strengthened Service Sector Builds Communities · Provide $500,000 per year in skills-development funding to be matched by industry investment. Funds to provide training opportunities to better equip British Columbians for skilled employment the oil and gas sector. · Explore revenue sharing with Treaty 8 First Nations. · Work with communities in Northeast B.C. to ensure local infrastructure supports a rapidly expanding oil and gas industry.
Reduced Regulations Create Opportunities · Adopt a results-based regulatory environment for the provincial Oil and Gas Commission to be guided by a new single piece of legislation. · Develop provincial environmental guidelines and policies to provide greater certainty for industry and ensure timely processing of applications for development. Particular areas of emphasis will be: · Oil and Gas Waste Regulation amendments · Miscellaneous Flaring and Waterflow Guidelines, and a · Baseline Study for Coalbed Gas · Work with provincial approving agencies to ensure adequate aggregate (sand and gravel) resources are available to support increased oil and gas road development. · Continue Ministry reduction of regulations through comprehensive review of the Petroleum and Natural Gas Act and the Pipeline Act.
-30-
| |||||||||||||||||||||||||||
