New and increased OGC Fees

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.

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