Low Productivity Well Royalty Reduction
Gas Stream IDs that on average produce less than 5,000 cubic metres of natural gas per day in a calendar month and meet additional requirements qualify for the low productivity well royalty reduction.
If the well event qualifies, we automatically use a lower royalty rate when we calculate your royalty invoice.
Offered by Ministry of Energy and Climate Solutions
Amount
No fixed amount
Quick eligibility check
Who can apply
Effective September 1, 2022, new gas wells with a spud date on or after September 1, 2022, do not qualify for the low productivity, marginal or ultramarginal royalty reduction programs.
Gas Stream IDs that on average produce less than 5,000 cubic metres of natural gas per day in a calendar month and meet additional requirements qualify for the low productivity well royalty reduction.
This reduction is applied to low production Stream IDs that are not eligible for the marginal or ultramarginal royalty reduction. Only one production based royalty reduction can be applied to the same Stream ID.
Note:
This program is only available to wells with a spud date before September 1, 2022.
About the funding
If the well event qualifies, we automatically use a lower royalty rate when we calculate your royalty invoice.
This reduction is applied to low production Stream IDs that are not eligible for the marginal or ultramarginal royalty reduction. Only one production based royalty reduction can be applied to the same Stream ID.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Deep-Well Royalty Program | Royalty | Royalty credits covering a portion of drilling and completion costs: Tier 1 deep wells from a minimum of $440,000 (for a well with a deep-well depth of 2,500 metres) to a maximum of $2.81 million (for wells 5,500 metres or deeper) | Open |
| Royalty Program for Marginal Gas Wells | Royalty | No fixed amount | Open |
| Ultra-marginal Well Royalty Reduction | Royalty | No fixed amount | Open |
