What is the Royalty Review?
The Government of British Columbia completed a review of its oil and natural gas royalty framework. This was the first major review in almost 30 years. With the release of the Discussion Paper, feedback was requested on policy approaches to establish a new, modernized royalty framework that meets the needs of British Columbians.
Engagement Timeline: November 10 – December 10, 2021 (Complete)
The current oil and natural gas royalty framework in British Columbia (B.C.) has been in place for nearly thirty years. The way natural gas is produced has changed significantly with changes in drilling technology over this time period, as have market conditions, and global concerns on the need to address climate change.
As part of his mandate letter, the Premier asked Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation to undertake a review of oil and gas royalty incentives to ensure they meet B.C.’s goals for economic development, a fair return on our resources, and environmental protection. The Ministry is undertaking a comprehensive review of the entire framework to ensure it balances the Province’s goals.
Phase 1: An Independent Assessment of the royalty system accompanied by an Executive Summary was published on October 6, 2021 and is available for review. The Independent Assessment was completed by Dr. Nancy Olewiler, Director of and Professor in the School of Public Policy at Simon Fraser University, and Dr. Jennifer Winter, Associate Professor of Economics and Scientific Director of the Energy and Environmental Policy research division at The School of Public Policy, University of Calgary.
Phase 2: Following the release of the Independent Assessment, the Province issued a Discussion Paper on options to establish a new, modernized royalty framework that meets the Province’s goals.
Engagement Results : What We Heard
During the engagement period, the team received a wide range of participation.
The report documents the engagement process and presents key themes that emerged from that engagement.
Feedback on the Discussion Paper was accepted until December 10, 2021 at 4:00 PM.
Written submissions regarding the Discussion Paper were accepted until December 10, 2021 at 4:00 PM.
On May 19, 2022, the Province introduced a new oil and gas royalty system that puts the interests of British Columbians first and eliminates outdated and inefficient fossil-fuel subsidies.
A transitional system will take effect on Sep. 1, 2022, with a new royalty framework scheduled to be in place effective September 1, 2024.