Proposal to raise well licence fees payable to the Oil, Gas and Salt Resources Trust.
Ontario Regulation 245/97
Regulation - LGIC
Bill or Act:
Oil, Gas and Salt Resources Act
Summary of Decision:
Increases to the annual fees payable to the Oil, Gas and Salt Resources Trust were approved as proposed by amending O.Reg.245/97 (Exploration, Drilling and Production) under the Oil, Gas and Salt Resources Act.
Fees due to the Trust in February 2015 will be based on the revised amounts. The amended regulation was posted on e-laws on September 22, 2014.
January 10, 2014
Summary of Proposal:
Each year, operators licenced under the Oil, Gas and Salt Resources Act pay well licence fees to the Oil, Gas and Salt Resources Trust. The Trust's primary asset is the Oil, Gas and Salt Resources Library. The Library is a public resource, providing access to geologic and engineering data related to petroleum and solution mining wells drilled in Ontario. The Library is also an important resource for industry, promoting exploration and development, and investment in the province.
A Trust Advisory Committee, comprised of industry representatives, is responsible for reviewing and recommending changes to licence fees. The Trust Advisory Committee has requested that the Ministry consider a new licence fee schedule. These fees have not been updated since 2004 making it appropriate to consider them in light of today's context, to ensure they continued to sustain the objectives and operation of the Oil, Gas and Salt Resources Library.
The Ministry has reviewed the Committee's request, and in consultation with the Trustee is proposing that the current fee schedule in Ontario Regulation 245/97 (section 5) be replaced with the following:
- the licence fee for private gas wells will remain at $0;
- fees for natural gas wells will increase to $0.15 per 1000 cubic metres of gas produced or to $100 per operator, whichever is greater;
- fees for oil wells will increase to $0.50 per cubic metre of oil produced or $100 per operator, whichever is greater;
- fees for natural gas storage wells will increase from $95 per well to $250 per well;
- fees for observations wells will increase from $15 per well to $100 per well;
- fees for cavern storage wells will increase from $190 per well to $250 per well;
- fees for salt solution mining wells will increase from $190 per well to $250 per well; and,
- fees for brine wells will increase from $0 per well to $100 per well.
The Ministry is accepting comments on the proposed fee schedule for 45 days.
300 Water Street
Peterborough, ON K9J 8M5
September 22, 2014