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The BC Oil and Gas Commission will be implementing an industry natural gas production levy decrease from $0.77 per 1,000 m3 of marketable gas produced, to $0.70.

DATE ISSUED: March. 19, 2021

EFFECTIVE DATE: April 2021 Production

The BC Oil and Gas Commission (Commission) will be implementing an industry natural gas production levy decrease from $0.77 per 1,000 m3 of marketable gas produced, to $0.70.

The rate change will offset an increase to the liability levy for the Orphan Site Reclamation Fund (OSRF) which is set at $15 million for the fiscal 2021/22 year. The effect is revenue neutral and the cost to industry remains the same.

Effective for the fiscal 2021/22 year, the liability levy will fund 100 per cent of OSRF levies after being phased in over the past two years. As previously announced in INDB 2019-01, the liability levy ensures permit holders pay their share of the total deemed liability for wells and facilities.

The Commission’s regular rate review has resulted in this change, which takes effect beginning with April 2021 production, and will appear on the June 23, 2021 invoices issued and collected by the Ministry of Finance on behalf of the Commission.

The Fee, Levy and Security Regulation (FLSR) under the Oil and Gas Activities Act (OGAA) is the tool by which the Commission acquires funds to meet its regulatory obligations and recover expenses. Current fees, levies and securities are noted in the FLSR.

If you have any questions regarding this Industry Bulletin, please contact:

Brent Blackhall

Executive Director, Finance & Administration

BC Oil and Gas Commission

Brent.Blackhall@BCOGC.ca

250-419-4475

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