Royalty Tweaks Update

The BC government is getting high marks from the oil and gas industry, following tweaks, to its royalty program, to spur deep drilling.

The Calgary Herald is quoting Alan Boras of EnCana, as saying, the change encourages development of trickier and technically challenging natural gas deposits, like those in the Horn River Basin. Meantime, the Herald also quotes Chris Seasons of Devon Canada, as crediting the Campbell government, with crafting one of the most industry-friendly jurisdictions in the country. The program changes announced this week by Energy Minister Blair Lekstrom, specifically target deep horizontal wells, of more than 25 hundred meters…and, deep vertical wells of more than 23 hundred meters. Oil and gas overtook forestry as the leading contributor to BC government revenues at the start of this decade and, sales of oil and gas rights rose, to a record high in 2008, of 2 point 6 billion dollars.

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