Government of British Columbia

Government of British Columbia

March 10, 2010 15:30 ET

Government of British Columbia: Royalty Program Improves B.C.'S Competitive Edge

VICTORIA, BRITISH COLUMBIA--(Marketwire - March 10, 2010) -


For Immediate Release


March 10, 2010

Ministry of Energy, Mines and Petroleum Resources


VICTORIA - A new $120-million instalment of B.C.'s Infrastructure Royalty Credit program will encourage investment and infrastructure, and stimulate activity in B.C.'s natural gas sector, said Blair Lekstrom, Minister of Energy, Mines and Petroleum Resources. The ministry is now accepting requests for applications from natural gas and petroleum companies to participate in the 2010 program.

"Natural gas markets are very competitive, and producers have plenty of options to invest their capital. This new instalment of $120 million in infrastructure royalty credits will help B.C. become the most competitive natural gas jurisdiction in North America," said Lekstrom. "In 2009, we saw natural gas and petroleum rights sales approaching $893 million, the third-largest calendar-year total in B.C. history, and proof that our stimulus for the industry is working."

Since 2004, B.C.'s Infrastructure Royalty Credit Program has allocated more than $485 million in infrastructure royalty credits to natural gas and petroleum companies operating in the province, resulting in 71 new road-based projects and 83 new pipeline projects. This represents new total capital investment in B.C. of almost $1 billion.

The Province gets an approximate return on investment of $2.50 for every dollar invested - revenue that would not have been collected otherwise. The program is designed to reflect the competitive challenges of enabling year-round activity and providing infrastructure that allows natural gas activity that would otherwise not take place.

Companies are invited to apply to the ministry under the 2010 program with proposed road or pipeline infrastructure projects and compete for these royalty credits. As in previous years, all projects applying for credits under the Infrastructure Royalty Credit Program will undergo a rigorous evaluation and ranking process, and only those that ensure the highest economic benefits for British Columbia will be approved.

The closing date and time for acceptance of applications is May 19, 2010 at 2 p.m. The request for applications information can be found on the ministry's website at:

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Contact Information

  • Ministry of Energy, Mines and Petroleum Resources
    Jake Jacobs
    Media Relations
    250 952-0628 or 250 213-6934 (cell)