Following a five month review of Alberta royalty rates, launched by Alberta’s NDP government, the royalty review panel recommended that Alberta’s royalty rates remain unchanged for oilsands producers, reports CBC News.
There will, however, be some changes to the royalty structure for oil, liquids and natural gas. At the outset these changes will apply only to new wells, and the current royalty rate will remain in place for wells already producing for the next 10 years.
As noted in the article, key conclusions from the review panel include:
- Albertans are already receiving their fair share of oil and gas royalties
- There will be no change to oilsands royalties
- Conventional oil and gas wells will pay a minimum royalty of 5 per cent of revenue until they have recovered costs
- The system will reward the most efficient drillers
- Focus will be placed on developing Alberta markets for the use of natural gas
- The Alberta government is accepting the report and is expected to adopt its recommendations this spring
“Success for Albertans only comes when the industry is successful” said Dave Mowat, chair of the royalty review panel, “Success doesn’t exist when one really wins and one really loses.”
To read the full article from CBC News, click here.