Therese Jean (author)
Greg Halseth (Thesis advisor)
University of Northern British Columbia (Degree granting institution)

2008

Master of Business Administration (MBA)

Business Administration

Number of pages in document: 125

As the sole BC producers in the oil and gas industry, northeastern BC communities negotiated a Memorandum of Understanding with the Province to share revenues generated from oil and gas commercial activities. The purpose of this research was to determine whether this Provincial Fair Share agreement is fair within the following context: 1) As a revenue sharing program: Do municipalities feel that they are getting enough compared to revenues generated to the Province? 2) Fair to the region relative to the Province: Why is the oil and gas industry singled out while other industries such as mining and forestry are excluded? 3) Equity amongst communities in the Northeastern region: Is the allocation basis and formula application equitable? The research provided a learning opportunity to share findings with other municipalities in the same industry as well as prepare for the next opportunity to negotiate amendments to the allocation formula that the current Memorandum of Understanding allows for in the year 2009 and every five years until the contract expires on March 31, 2020. From the overall perspective, municipalities are not getting enough revenue. The respondents agree that this agreement is fair to the oil & gas industry and equitable amongst communities in northeastern BC. The fair share agreement has provided the communities in northeastern BC infrastructure support beneficial to all however, they are still limited in their ability to manage growth. It is recommended that northeastern BC communities negotiate a fair share of the revenue relative to the revenues generated by the Province.

Gas industry -- Government policy -- British Columbia, Northern.
Petroleum industry and trade -- Government policy -- British Columbia, Northern.
Revenue sharing -- British Columbia.
British Columbia -- Economic conditions -- Regional disparities.
Resource-based communities -- Economic conditions -- British Columbia, Northern.

https://doi.org/10.24124/2008/bpgub1353

research (documents)