Organizations warn B.C. Cabinet set to imminently ratify new industry-favourable, long-term gas royalty regime, unless Premier halts selection process, and urge Auditor General to investigate selection criteria and process
VANCOUVER, BC | September 10, 2026 | Eleven organizations—with national and regional presence—caution the B.C. Cabinet is on the verge of ratifying a new, long-term gas royalty framework that is poised to relinquish billions of public dollars over decades to industry, unless Premier Eby halts it. Today, they are urging the Auditor General to immediately investigate not only the overstated gas royalty calculations in the Budget, but also the criteria and process the Province used to select the industry-favourable option, set to take effect by January 1, 2027. The Ministry of Energy has said it is selecting the ‘Adapted plus Bridging System’ based on the Budget calculations, which the Premier’s Office has now confirmed are inflated and erroneous.
The organizations warn the issue is far more serious than stated by the B.C. government, cautioning the ‘Adapted plus Bridging System’ will generate billions of dollars fewer royalties for British Columbians, compared to the already exceptionally low rates in the current transition system, and it is worse economically for British Columbians than the 2022 royalty framework proposal that was scrapped in 2024 by then-Energy Minister Josie Osborne.
The ‘Adapted plus Bridging System’ is an option that includes provisions for producers to:
- Deduct carbon costs from royalty payments, eliminating any incentive for emissions reductions as British Columbians would be picking up that tab. This turns a “polluter pay” system into a “public pay” system.
- Recover 150 per cent of their drilling costs before having to switch into a higher royalty bracket. This is called the DCA Uplift, which is similar to—but even more economically advantageous to producers than—the phased-out Deep Well Credit.
The B.C. Lobbyist Registry identifies the gas industry has visited Victoria 192 times to discuss royalties so far in 2026.
“The Premier wants us to believe that this is nothing more than an accounting error in the Budget,” says Environmental Defence’s Energy Analytics Program Manager Alex Walker. “In reality, there has been almost no transparency about how and why the B.C. government cut this royalty deal. Even without the faulty forecasting, heavy gas industry lobbying could mean the new long-term gas royalty framework favours highly profitable fossil fuel companies over people across the province. The Province needs to rethink its royalty choice for the good of everyone in B.C. Anything less would be reckless.”
David Suzuki Foundation’s Janelle Lapointe says, “This proposed framework has it all backwards: it further subsidizes the fossil fuel industry, undermines climate action and sidelines Indigenous rights — particularly the Nations excluded while the Premier’s government met with gas companies behind closed doors. ‘Reconciliation’ cannot be conditionally offered to the Nations willing to advance industry’s agenda. The gas industry does not need royalty handouts, but communities facing rising costs and worsening climate disasters do. Premier Eby must halt the selection process before this deeply flawed framework gets to Cabinet.”
B.C. and Ottawa are uncritically promoting the LNG industry, as they actively court final investment decisions (FiDs) for the doubling of LNG Canada, owned by global oil majors; and for the Ksi Lisims LNG project, owned by a Texas-based company with no existing projects or assets and with close ties to President Trump.
In Budget 2026, tabled in February, natural gas royalties were projected at $942 million (2026), $1.3 billion (2027), and another $1.3 billion (2028), but the Premier’s Office now confirms those figures are artificially high. To put these figures into perspective, British Columbians spent $1.1 billion fighting wildfires in 2023, which is about the same as the B.C. government’s three-year health expansion plan, on an annual basis. Meanwhile, the B.C. government has already committed $2.16 billion in public subsidies to the LNG industry by the end of 2030 through foregone revenue, reduced electricity rates, and investment in enabling infrastructure.
List of organizations urging B.C.’s Auditor General to investigate the criteria and process the Province used to select an industry-favourable gas royalty framework, and for Premier Eby to halt the selection before its imminent ratification:
- Environmental Defence
- David Suzuki Foundation
- Stand.earth
- Canadian Association of Physicians for the Environment (CAPE)
- ACORN Canada
- Skeena Watershed Conservation Coalition (SWCC)
- My Sea to Sky
- Decolonial Solidarity
- Wilderness Committee
- Dogwood
- Canadian Association of Nurses for the Environment (CANE)
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