Monday, April 11, 2011

Question posed, response offered

This small piece was first posted in March 24 and a comment added April 11. It suggests a little research is in order.

I have not verified this but would like to see the answer. This was the last contribution before The Tyee closed The Gwyn Morgan File Part 2 to comment, from "dido":
Fracking royalties
Someone needs to investigate the current BC policy on royalties for fracking. I have heard from a reliable source that the policy of a much reduced royalty rate for the initial production from a new well (to compensate for exploration/drilling costs) is being inappropriately granted to each of up to 20 or 30 fracking horizontals from a single vertical. Net loss to the province around $1 billion annually.
Can readers help?
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  1. The information can be obtained from the "royalty credit programs pages buried in the Energy and Mines website. Very, probably deliberatly confusing wording that only a few specialists in that field coud understand, but then they are paid by the companies from out of province who will benefit the most...Right? The reading will give a guaranteed headache, but in the right situation the commenter is probably correct. All of the programs are a loss to the treasury as no jobs for taxpaying residents are generated and no additional royalties are generated on the finite amount of gas that we have in the province. Remember these companies do as little as possible to support communities and BC based businesses, unless blatantly embarrassed into it. Planeloads of workers and a steady stream of vehicles from Alberta ensure few oportunities for Bc residents. Contrast with forestry or even agriculture where almost every job is held by a BC resident. You can be sure that one G. Morgan (trusty advisor of Christy Clark) will be less concerned about the good fortune of BC residents than he will be of those of his buddies at the Canadian Association of Petroleum Producers.

  2. enjoy the read...BC is in big trouble now.

  3. Just goes to prove how out of touch not only Coleman, but the reporter is as well, in saying that the job bonanza is good for BC. THESE ARE NOT BC RESIDENTS DOING THE WORK. A steady stream of Alberta traffic and planeloads of shift working well and plant operators pay no tax whatsoever in BC. And we could say the original commenter is correct when you include the "Net Profit Royalty Credit". No royalties until a profit is shown. I bet the public won't get to know too much about that one as it would be very embarrassing for the folks taking the credits and how the credits are calculated. Who is counting anyway? Fracturing is an expense that can easily be inflated to show a net profit of "zero". What a farce.



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