For the second time this year, the Fee, Levy and Security Regulation, B.C. Reg. 8/2014, has been amended by the British Columbia Oil and Gas Commission (the “OGC”). The stated intention of the amendments is to make the fee structure “better reflect the complexities of consultation, advice and reviews required for major oil and gas projects”. The OGC began consulting with industry on these amendments last fall.
The amendments can be grouped into two sets. The first concerns the fees related to Class C pipelines and LNG facilities. These are the largest projects of their kind, being pipelines with outside diameters of 609.6 mm or more and facilities with a capacity to process more than 5.6 million m3/day. The second concerns fees for other aspects of the operation of LNG facilities.
Previously, a basic fee of $370,000 was required on application for a permit for Class C pipelines more than 50 km in length and $650,000 was required on application for a permit to construct or operate a Class C LNG facility.
By Rick Williams and Tim Bottomer –Â Borden Ladner Gervais LLP – April 30, 2015.
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