According to Barry Woods, manager of Financial Services, the provincial government announced tax relief for the producers Sept. 17.
“Many shallow gas producers are in a difficult financial situation,” he said. “Some have become insolvent because of prevailing global market conditions and the impact of high operating expenses, including property taxes.”
Municipal Affairs sent a list of qualifying shallow gas wells and associated pipelines affected in RVC, he added, which included Ember Resources Inc., Bonavista Energy Corp, Lynx Energy ULC, Canlin Energy Corp, Persist Oil and Gas and Harvest Operations Corp. In total, the tax relief equates to $779,048.
According to Woods, the municipality will be reimbursed for property taxes through an education property tax credit in the 2019 year.
Coun. Kim McKylor was absent from the meeting.
