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. Post-amendment, these have been
split. The changes result in the permitting fees for major projects
being divided into a "review and consultation" phase and
a "permit application" phase. This division affects only
the Class C facilities as these are the ones requiring lengthy
pre-application work including environmental assessments. New
section 4.1 requires payment of a $350,000 fee if the OGC provides
advice and consultation services for at least three months
respecting a Class C pipeline or LNG facility that requires an
environmental assessment under the Environmental Assessment
Act, S.B.C. 2002, c. 43. If this payment has been submitted,
the base fee on an application for a Class C pipeline or LNG
facility is reduced to $20,000 and $300,000, respectively.
The second set of amendments concerns fees for other aspects of
the operation of LNG facilities. Specifically, the fees for major
permit amendments for Class B and C LNG facilities have been
standardized at $7,000 and $15,000 (from up to $50,000 and
$350,000), respectively, and new fees have been added for the
review of submissions made by an LNG facility permit holder under
section 31 of the Oil and Gas Activities Act, S.B.C. 2008,
c.36, (for a Class B LNG facility, $25,000; for a Class C LNG
facility, $150,000) and for the review of submissions and test
results under the Liquefied Natural Gas Facility
Regulation, B.C. Reg. 146/2014 (for a Class B LNG facility,
$25,000; for a Class C LNG facility, $100,000). These new fees
apply to amendments incorporating completed engineering designs,
so, as above, the net effect is less than the raw numbers suggest
in isolation (Class B LNG facility, $57,000; Class C LNG facility,
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The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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