Government of British Columbia

Government of British Columbia

March 02, 2009 12:26 ET

Government of British Columbia: Royalty Program to Encourage Infrastructure Development

VICTORIA, BRITISH COLUMBIA--(Marketwire - March 2, 2009) -

NEWS RELEASE

For Immediate Release

2009EMPR0007-000264

March 2, 2009

Ministry of Energy, Mines and Petroleum Resources

ROYALTY PROGRAM TO ENCOURAGE INFRASTRUCTURE DEVELOPMENT

VICTORIA - The Province is encouraging infrastructure development with a request for applications to oil and gas companies operating in British Columbia to participate in the 2009 Infrastructure Royalty Credit Program, announced Energy, Mines and Petroleum Resources Minister Blair Lekstrom.

The program, first offered in 2004, continues to be aimed at increasing competitiveness and stimulating activity in B.C.'s oil and gas industry by facilitating access to new and underdeveloped areas of British Columbia, providing all-season access to oil and gas resources and generating incremental revenues to the Province.

"In these times of economic instability, it is imperative that we take action to support and encourage economic activity that will continue to provide jobs for British Columbians in B.C.'s oil and gas industry and its key support sectors," said Lekstrom. "Expanding this already successful royalty program to $120 million in available royalty credits will improve our competitive position for attracting investment and contribute to the ongoing growth and development of our oil and gas industry."

Since 2004, B.C.'s Infrastructure Royalty Credit Program has allocated over $316 million in infrastructure royalty credits to oil and gas companies, resulting in 72 new road-based projects and 53 new pipeline projects. This represents new total capital investment in B.C. of over $632 million. The Province gets a return on investment of 2.5 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 enables oil and gas activity that would otherwise not take place.

Companies are invited to apply under the 2009 program with proposed road or pipeline infrastructure projects to the ministry 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 April 30, 2009 at 2 p.m. The request for applications information can be found on the ministry's website at: www.empr.gov.bc.ca/OG/oilandgas/royalties/infdevcredit/Pages/default.aspx

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.

Contact Information

  • Ministry of Energy, Mines and Petroleum Resources
    Jake Jacobs
    Public Affairs Officer
    (250) 952-0628 or Cell: (250) 213-6934
    Website: www.gov.bc.ca