Refunds – Fuel used in Oil and Gas Exploration

Persons actively engaged in exploring or drilling for petroleum and natural gas may apply for a refund for the difference between the clear and coloured fuel tax rates if clear fuel is used in commercial vehicles, other than pick-ups trucks, while operated off-highway for the transportation of:

	drilling rigs, drilling equipment and supplies
	fuel, water, well-servicing equipment and supplies
	geophysical and seismic equipment and supplies

The exemption does not extend to production activities or the transportation of petroleum or natural gas products. The activity must be exploration/drilling. Supplies do not include general items such as food supplies for a drilling crew.

If the vehicle is operated 100% off-highway, coloured fuel must be used. However, most vehicles are used both on- and off-highway, and clear fuel must be used.

Please see Refunds for Stationary Engines for more refunds that may apply to Oil and Gas Exploration activities.

Complete an Application for Refund of Fuel Tax form (FIN 440), or provide a letter signed by an authorized representative/official of the business, requesting a refund. Refunds must be filed within four years of the date the tax was paid.

Provide a summary of your fuel purchases in the period for which the refund is being claimed. The summary should be organized by fuel type (for example, gas or diesel) and ordered by date. This summary must show:

• purchase date
• invoice number
• fuel supplier's name
• fuel type purchased
• number of litres purchased
• amount of B.C. fuel taxes paid

You must provide copies of invoices for all fuel purchases listed in the summary. Each invoice should correspond to the information listed above. Please arrange the invoices in the same order you have listed them in the summary.

You will also need to provide details on:

	the commercial motor vehicle
	what was being transported (i.e. goods used in exploring or drilling for petroleum and natural gas)
	to whom the goods were delivered (i.e. a purchaser involved in exploring or drilling for petroleum and natural gas at a site where exploration and drilling is occurring)
	the on- and off-highway distances travelled and the amount of fuel consumed off-highway

Please mail your application and supporting documentation to:

Consumer Taxation Branch
Refunds Section
PO BOX 9628 STN PROV GOVT
VICTORIA BC  V8W 9N6

Refunds are generally processed within 30 days of receipt of all necessary information.