British Columbia Order in Council — Amendment to Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation (O.C. 571/2024)

O.C. 571/2024

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. , Approved and Ordered Lieutenant Governor Executive Council Chambers, Victoria On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective September 1, 2024, the Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, B.C. Reg. 495/92, is amended as set out in the attached Appendix 1. Minister of Energy, Mines and Low Carbon Innovation Presiding Member of the Executive Council (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section: Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, ss. 73, 81 and Other: OIC 1854/92 R20674516 August 30, 2024 APPENDIX 1

Section 1 (1) of the Petroleum and Natu ral Gas Royalty and Freehold Production Tax Regulation, B.C. Reg. 495/92, is amended (

a) by repealing the definition of “initial production period” and substituting the following: “initial production period” means, (

a) in relation to a gas we ll event, the period that (

i) begins on the first day of the first producing month, and (ii) ends on the last day of the producing month in which the gas well event reaches 8 production hours, and (

b) in relation to an oil well event, the period that (

i) begins on the first day of the first producing month, and (ii) ends on the last day of the pr oducing month in which the oil well event reaches 4 production hours; , and (

b) in the definition of “production hour” by striking out “ gas well event ” in both places and substituting “well event”. 2

Section 1 (7) is repealed and the following substituted:

(7) Despite the definition of “producer cost of service allowance” in subsection (1), (

a) in the case of a gas well event in a well that has a spud date of or after September 1, 2022, the producer cost of service allowance for the gas well event is zero for the initial production period, (

b) in the case of a gas well event described in

section 6 (1.9), following the initial production period, the producer cost of service allowance for the gas well event is zero for the subsequent period referred to in

section 6 (1.8) (a), and (

c) in the case of an oil well event in a well that has a spud date of or after September 1, 2024, the producer cost of service allowance for the oil well event is zero for the initial production period. 3

Section is amended by adding the following subsection:

(1.2) In the case of an oil well event in a well that has a spud date of or after September 1, 2024, despite subsection (1.1), the royalty or tax percentage rate for oil produced from the oil well event, other than oil in a class of oil specified in Column for item 7, is 5% for the initial production period. 4

Section is amended (

a) in subsection (1.7) (

b) by adding “ subject to subsection (1.8) (b), ” before “subsec- tion (1.3) (

a) does not apply”, (

b) by adding the following subsections:

(1.71) In the case of an oil well event in a well that has a spud date of or after September 1, 2024, (

a) despite subsection (1), the royalty or tax percentage rate for natural gas and natural gas by-products produced from the oil well event is 5% for the initial production period, and (b) subsection (1.3) (

a) does not apply in relation to the oil well event until the initial production period has ended.

(1.8) In the case of a gas well event described in subsection (1.9), (

a) following the initial production pe riod and despite subsection (1), the royalty or tax percentage rate for natural gas and na tural gas by-products produced from the gas well event is 5% for a subsequent period that (

i) begins on the first day of the producing month immediately following the initial production period, and (ii) ends on the last day of the producing month in which the gas well event reaches 3 production hours, and (b) subsection (1.3) (

a) does not apply in relation to the gas well event until that subsequent period has ended.

(1.9) For the purposes of subsection (1.8), a gas well event must be a gas well event in relation to which all of the following apply: (

a) the gas well event is in a well that has a spud date of or after September 1, 2024; (

b) natural gas has been produced from the gas well event during the initial production period; (

c) the amount determined in relation to the gas well event by applying the following formula is less than 0.05618: where , and (

c) in subsection (6) by striking out “ subsection (1), (1.4) or (1.7) ” and substituting “subsection (1), (1.4), (1.7), (1.71) or (1.8)”. condensate volume = the total volume of pentanes plus and other condensates recovered from natural gas produced from the gas well event in the initial production period, expressed in m3; natural gas volume = the total volume of natura l gas produced from the gas well event in the initial production period, measured after field separation but before processing and expressed in 1 m3 amount condensate volume natural gas volume----------------------------------------------=

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 571/2024
Type	order_in_council
Volume / chapter	arc oic 0571 2024
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	aa608dd4a841880e06811aef92a46deaa4a3ef35

Source file is stored in the law ingest library (pdf).