OGC IL 09-10 Amendments to Fees and Levies

rescinded due to Oil and Gas Activites Act
rescinded
DUE TO OGAA - refer to
(i.e.) new manual
March 18, 2009
repealed
done when a law is no longer effective, or it is
due to Oil and Gas INFORMATION
LETTER
# OGC 09-10
shown that a law is having
far more negative
consequences than were originally envisioned.
Activities Act
Subject:
the removal or reversal of a law. This is generally
Amendments to Application Fees and the Petroleum and
Natural Gas Levy Rates
arding the OGAA Implementation:
ecessary regulations, documents
Industry
background informationTo:
on OGAA
be found at www.ogc.gov.bc.ca/OGAA/
Clients
Requirement:
any questions pertaining to the status of
document, please contact the Commission
Effective April
esentative listed at the bottom.
Regarding the OGAA Implementation: All necessary
regulations, documents and background information on
OGAA can be found at www.ogc.gov.bc.ca/OGAA/
For any questions pertaining to the status of this document,
please contact the Commission representative listed below.
1, 2009 the fees as established in section 2 of the Petroleum and
Regarding the OGAA Implementation: All necessary
Natural Gas General Regulation
are changed as follows:
regulations, documents and background information on
found at www.ogc.gov.bc.ca/OGAA/
a) for an application OGAA
for a can
wellbeauthorization
under section 15 (6) of the
For any questions pertaining to the status of this document,
Drilling and Production
Regulation:
$10,300,
plus an additional $8,000 if
please contact the Commission at (250) 261-5700.
the applicant has not previously applied for a well authorization;
b) for an application for a project approval under section 3 (1) of the
Geophysical Exploration Regulation: $1,650; for a revised application for a
project approval: $700;
c) for an application to change a well name under section 13 (3) of the
Drilling and Production Regulation: $200;
d) for an application to transfer a well authorization under section 16 of the
Drilling and Production Regulation: $200;
e) the fees for an application for a test hole or a geophysical licence are
discontinued.
Effective April 1, 2009 the fees as established in section 20 of the Pipeline
Regulation are changed as follows:
a) for an application to construct a pipeline under section 11 of the
Pipeline Act:
i.) for pipelines with an outside diameter of less than 152 millimetres,
$900 plus $200 per kilometre of pipeline;
ii.) for pipelines with an outside diameter of 152 millimetres or greater,
$1200 plus $400 per kilometre of pipeline;
b) for an amendment of an application to construct a pipeline: $700;
c) for an approval to sell, assign, transfer, convey or lease a pipeline, or to
amalgamate its pipeline with that of another company or to contract the
operation of its pipeline to another company: $200;
d) an annual fee of:
i.) $50 per kilometre of pipeline registered by a company, if the
outside diameter of the pipeline is less than 152 millimetres;
ii.) $60 per kilometre of pipeline registered by a company, if the
outside diameter of the pipeline is 152 millimetres or greater.
MAILING
500 | 1675 Douglas Street
Victoria BC V8W 2G5
PO BOX 9331 Stn Prov Govt
Victoria BC V8W 9N3
T 250.356.2691
F 250.356.2840
www.ogc.gov.bc.ca
Effective July 1, 2009 levy rates for petroleum and marketable gas production,
as established in the Oil and Gas Commission Levy and Orphan Site
Reclamation Fund Tax Regulation are changed as follows:
a) $1.09 per cubic metre of petroleum, and
b) $0.55 per 1000 cubic metres of marketable gas.
The changes to the fees and levies in 2009 respond to increases in the
Commission’s expenses over the past two years since the last adjustments to
the fees and levies. In particular, the numbers of employees, compensation and
cost of support services have all increased.
New facilities have been opened in Fort Nelson and Dawson Creek to improve
the Commission’s ability to serve activities associated with the Horn River and
Montney developments. Changes to fees under the Pipeline Act will better
balance the Commission’s revenues and costs associated with that sector.
With the agreement of industry, payments to the Science and Community
Environmental Knowledge fund will be suspended for fiscal 2009 – 2010.
If you have any questions regarding the above, please contact:
Randall Smith
Executive Financial Officer/Corporate Services Leader
Corporate Services Division
[email protected]
Phone: (250) 356-2707
Fax: (250) 356-2840
Original signed by:
Alex Ferguson
Commissioner
BC Oil and Gas Commission
Attachment: Table 1
Page 2 of 3
Table 1
Fee
Proposed Rate
Geophysical Project Application
$1650
Geophysical Project Amendment
$700
Annual geophysical licence
No fee
Well Authorization Application
$10,300
Additional $8000 for
first time licensee
(SCEK funding
suspended)
Well Application Transfer or Name Change
$200
Test hole authorization
No Fee
Pipeline application (< 152 mm diameter)
$900 + $200/km
Pipeline application (≥ 152 mm diameter)
$1200 + $400/km
Pipeline application amendment
$700
Pipeline annual fee, inspection & integrity (< 152 mm
(6 inch) diameter)
$50/km
Pipeline annual fee, inspection & integrity ( ≥ 152 mm
(6 inch) diameter)
$60/km
Pipeline transfer
$200
$1.09
Levy on oil production per cubic metre
(SCEK funding
suspended)
$0.55
Levy on gas production per thousand cubic metres
(SCEK funding
suspended)
Page 3 of 3