The Province of BC will be implementing a brand new Oil and Gas Royalty system that aims to get rid of inefficient fossil-fuel subsidies.
This new system will apply to all wells in BC beginning on September 1st.
As a result of the new system, the Deep Well Royalty Program, BC’s biggest Oil and Gas subsidy which has existed since the 90’s, will be eliminated.
Companies will pay a flat 5 percent royalty rate on their revenue until they pay off what they paid to drill into their well, with current credits set to expire in 4 years.
This new system was created thanks to public engagements with environmental groups and First Nations, who believed that a revamp was in order.
