The BC Oil and Gas Commission has increased application fees for new wells and implemented, new application rates for pipelines.
This is OGC Spokesman Steve Simons… [asset|aid=1127|format=mp3player|formatter=asset_bonus|title=c9b6df37536a183f4cb776f9f2e7a1b1-Steve-1_1_Pub.mp3]
Effective April first, the cost to submit a new well to the OGC is being increased from $9,100 to $10,300. In addition, a company that has no wells in BC will pay $18,300 on top of the cost of the drilling deposit, for the first well.
Meantime pipelines, which have had no costs associated with applications, will now have a rate of $900, plus $200 per kilometer, for pipes under 152 millimeters. For lines involving pipes at or over 152 millimeters, the rate will be $1,200 plus $400 per kilometer.
These rates will be effective July first.
With the change coming in the middle of a recession the commission could seem to be opening the door for energy industry criticism but, Mr. Simons says the key operators who pay the fees have been consulted… [asset|aid=1128|format=mp3player|formatter=asset_bonus|title=c9b6df37536a183f4cb776f9f2e7a1b1-Steve-2_1_Pub.mp3]
He added while always mindful of the province’s competitive position, as a regulator, the OGC also has some statutory obligations to fufill.