In a partnership application, who will decide which company gets what percent of royalty credits? If two or more companies apply jointly, the companies will submit a letter with their application providing each company’s contact information and approval of the percent of royalty credit to be shared. This information will be reflected in the agreement that successful companies will sign with the Crown if their project is approved. The Province will have no involvement in how the companies negotiate their share of the royalty credits. Is it possible to apply for projects that were started or completed before the RFA closed? No, the objective of the Infrastructure Royalty Credit Program is to generate incremental oil and gas activity in and thus, incremental royalties to the Province i.e. generate – infrastructure and activity that would not have happened at all or would have been delayed without the credit. If a project is being built 2/3 in BC and 1/3 built in Alberta, would the project costs cover only the costs located in BC? Yes, as quoted in Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, Section 4(9.1) to construct or upgrade road and pipelines in British Columbia in support of “..., resource exploration or development in British Columbia.” A section of the RFA Template asks for the company’s hurdle rate which is information our company regards as confidential. Is there a consequence to not providing an internal hurdle rate? The Ministry does require that all companies provide this information. The Ministry is very aware of the confidential/sensitive nature of some of the required information. As such, all applications are locked in a secure area and are available only to our small evaluation team. It's also important to note that, though the public has the to request records held by public bodies under the Freedom of Information and Protection of Privacy Act (FIPPA) , an "Exception" contained in the FIPPA protects confidential sensitive business information ( Section 21 - Disclosure Harmful to Business Interests of a Third Party Please – refer to Question 2). When submitting a partnership application, is it acceptable to the Ministry to submit each company’s individual hurdle rates under separate cover (attached to the joint application) so as not to share sensitive information among the applicants? Yes, we realize the sensitive information among applicants and will accept the individual hurdles rates under separate cover attached to the joint application.
In a partnership application, who will decide which company gets what percent of royalty credits? If two or more companies apply jointly, the companies will submit a letter with their application providing each company’s contact information and approval of the percent of royalty credit to be shared. This information will be reflected in the agreement that successful companies will sign with the Crown if their project is approved. The Province will have no involvement in how the companies negotiate their share of the royalty credits. Is it possible to apply for projects that were started or completed before the RFA closed? No, the objective of the Infrastructure Royalty Credit Program is to generate incremental oil and gas activity in and thus, incremental royalties to the Province – i.e. generate infrastructure and activity that would not have happened at all or would have been delayed without the credit. If a project is being built 2/3 in BC and 1/3 built in Alberta, would the project costs cover only the costs located in BC? Yes, as quoted in Petroleum and Natural Gas Royalty and Freehold Production Tax Regulation, Section 4(9.1) “..., to construct or upgrade road and pipelines in British Columbia in support of resource exploration or development in British Columbia.” A section of the RFA Template asks for the company’s hurdle rate which is information our company regards as confidential. Is there a consequence to not providing an internal hurdle rate? The Ministry does require that all companies provide this information. The Ministry is very aware of the confidential/sensitive nature of some of the required information. As such, all applications are locked in a secure area and are available only to our small evaluation team. It's also important to note that, though the public has the to request records held by public bodies under the Freedom of Information and Protection of Privacy Act (FIPPA) , an "Exception" contained in the FIPPA protects confidential sensitive business information ( Section 21 - Disclosure Harmful to Business Interests of a Third Party – Please refer to Question 2). When submitting a partnership application, is it acceptable to the Ministry to submit each company’s individual hurdle rates under separate cover (attached to the joint application) so as not to share sensitive information among the applicants? Yes, we realize the sensitive information among applicants and will accept the individual hurdles rates under separate cover attached to the joint application.
Revised%20Frequently%20Asked%20Questions%20and%20Answers.docx