BC Oil and Gas Infrastructure Projects

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"The program provides oil and gas companies with royalty deductions in exchange for industry investment in road and pipeline infrastructure."

The Province has awarded $120 million in royalty credits under the Infrastructure Royalty Credit Program to 19 companies for 31 oil and gas infrastructure projects, said Blair Lekstrom, Minister of Energy, Mines and Petroleum Resources.

"These projects represent new and improved infrastructure that will provide more jobs and opportunities for British Columbians," said Lekstrom. "Roads and pipelines deliver economic stability and the opportunity to develop the oil and gas industry which, in turn, brings revenues that help to fund education, health care and social programs for everyone."

These 31 new road and pipeline projects will support oil and gas exploration and production, and improve access to underdeveloped areas of northeast British Columbia. This increased activity and new production will generate additional royalty revenue to the Province.

Projects were awarded credits under the Infrastructure Royalty Credit Program following a Request for Applications and careful evaluation of each project's economic benefits to British Columbia. As in previous years, industry response to the Request for Applications was very strong, with applications for 68 projects involving a total request of approximately $760 million in estimated construction costs.

The program provides oil and gas companies with royalty deductions in exchange for industry investment in road and pipeline infrastructure. Companies are required to fund the entire cost of an approved infrastructure project and may receive up to 50 percent of the eligible project costs from the Province paid in the form of royalty deduction once the project is completed. As of March 31, 2009, the Infrastructure Royalty Credit Program was responsible for the development of 58 new or upgraded all-season roads and 52 pipeline projects in B.C.

British Columbia is working in partnership with industry to create a vibrant, competitive oil and gas sector. The Infrastructure Royalty Credit Program delivers on the BC Energy Plan commitment to enhance infrastructure and improve access to resources.

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