Frequently Asked Questions - Security Deposits
The letter of credit beneficiary and cheques are payable to, BC Oil and Gas Commission.
Security deposits are to be couriered to:
BC OIL AND GAS COMMISSION
2950 JUTLAND ROAD
VICTORIA BC V8T 5K2
Permit holders who fail to submit required security deposits within the allocated timeframe may be in noncompliance with Section 30 of OGAA. If the security deposit was required to approve a permit transfer application, the application will not be approved. If the security deposit was required under an initial or monthly assessment, additional compliance action will be taken against the permit holder. This may result in the cancellation of permits or orders to cease operations.
Security deposits will be accepted as a certified company cheque or electronic/wire transfer, from a recognized Canadian financial institution, or as an irrevocable letter of credit from a Canadian Schedule I or Schedule II bank, a Canadian Credit Union, the Caisse Desjardins, or the Alberta Treasury Branch. Please note, letters of guarantees, safekeeping agreements, performance bonds, and personal cheques, will not be accepted.
Security will be returned for one of two reasons.
- The Commission may, upon request by a permit holder, return a security deposit where the permit holder has achieved a consistent and sustainable non security-adjusted LMR greater than 1.0. The permit holder must also have demonstrated compliance with regulatory obligations.
- The security deposit will be automatically returned when an operator no longer holds any permits in B.C.
No, interest will not be paid. Only the amount that was held as security will be returned. This policy was rolled over from the Ministry of Finance administration.