On behalf of Albertans, the Government of Alberta is the owner of 81% of the mineral rights in the province, which includes oil and gas. When companies develop the resources, they must pay the province - that's called a royalty. As resource owner, the Alberta government sets the terms and conditions for development and the royalty rates. Albertans can access more information on the new
royalty systemon the Alberta government’s website. This will help Albertans understand the value received from royalties for crude oil, natural gas and oil sands.
Alberta’s Modernized Royalty Framework
This framework came into
effect January 1, 2017. The framework was developed based on recommendations from the
Alberta Royalty Review Advisory Panel which submitted its
Alberta at a Crossroads report on Alberta’s royalties to government after a six-month review process.
Formulas were finalized on April 21, 2016and on July 11, 2016, the government
announced two new royalty programs.
Strategic Programs under Alberta’s Modernized Royalty Framework
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Royalty Formulas, Charts, Tables and Curves for wells spud* up to and including December 31, 2016
Royalty related information bulletins
- Historical Royalty Revenue Data is reported on a fiscal year basis (April 1 to March 31). The Revenue collected summaries begin with the 1970/71 fiscal year. 2009- 2011 Royalty Information is available in Alberta's Energy history.
- Revenue Forecasting Process(2015) a fact sheet for understanding prices, production and costs to forecast revenue.
- Bitumen Royalty-in-kind (BRIK) is a program that gives the Alberta government the option of taking bitumen royalties in kind rather than in cash (agreements and schedules are included in this section).
- Modernized Royalty Framework Information Sessions were held in Calgary on December 8th, 2016 and January 11th, 2017. For session information please email ODEdmOp@gov.ab.ca.
Frequently Asked Questions
What kind of wells do these new formulas apply to?
What is C*?
Why is there a difference in the formula when wells are deeper than 2000 metres?
How is revenue determined for the drawdown of C*?
What is TVD?
What is Alberta Capital Cost Index (ACCI)?
What is TLL?
What is TPP?
What is the Maturity Threshold?
Is the maturity threshold the same for all hydrocarbons?
Has the calculation of monthly par prices changed under the Modernized Royalty Framework?
Will there be changes to the Gas Cost Allowance under the Modernized Royalty Framework?
Under the Modernized Royalty Framework, are there any changes to the treatment of Freehold Mineral Rights?