Alberta's New Royalty Framework

On October 25th, Premier Ed Stelmach announced Alberta's New Royalty Framework.

 - Technical Information for webcast

Premier Stelmach delivers historic New Royalty Regime for Alberta (News Release)
Questions and answers about the New Royalty Framework   If you have questions or comments regarding the framework visit us online or call 310-4455.

Recent news

 Bitumen Valuation Methodology (BVM) This document developed by the department of Energy describes the method.  It is a draft for discussion of implementation issues with stakeholders, and is subject to approval and implementation through regulation by the Government of Alberta as part of the New Royalty Framework package planned for this Fall.  

Shallow Rights Reversion (June 19, 2008)

New deep resource programs promote high-cost oil and gas development
Announcement follows analysis of New Royalty Framework unintended consequences
News Release (April 10, 2008) 

Building Confidence:  Improving Accountability and Transparency in Alberta's Royalty System, report by Peter Valentine, FCA 
News release (April 7, 2008)

Formulas and Charts of Royalty Rates and Curves

• Table of Oil Sands Royalty Rates 
• Alberta's New Royalty Framework (Natural Gas and Oil) - Charts
• Formulas for calculating conventional oil royalties
• Formulas for calculating natural gas royalties
• Table of conventional oil rates
• Chart of Natural Gas Combined Royalty Rates 
• Frequently Asked Questions - Natural Gas (chart included)
• Frequently Asked Questions - Crude Oil
  

A team led by Alberta Energy will consult with industry participants on implementation details for Alberta’s new royalty framework.  The team will be in place on November 15th and consultation will begin shortly thereafter through CAPP and SEPAC.

If you have technical questions regarding implementation details, please e-mail us at Response.Energy@gov.ab.ca, and we will ensure that your questions are addressed as part of the implementation discussions.  

Royalty Information Series

The Government of Alberta tasked an independent, expert Royalty Review Panel to examine the province's energy royalties and tax regime. The panel was asked to focus on all aspects of the royalty system, including oil sands, conventional oil and gas, and coalbed methane.  Their report was released on September 18th.

The Department of Energy has developed the following information sheets to provide background to Albertans interested in the review process.

Alberta Energy has also prepared or commissioned a number of technical  reports describing various aspects of Alberta's royalty systems.

• Alberta’s Oil Sands Fiscal System - Historical Context and System Performance
• Appendix "A": Markets and Pricing for Alberta Bitumen Production
• Preliminary Fiscal Evaluation of Alberta Oil Sands Terms, by Pedro van Meurs 
• Comparative Analysis of Fiscal Terms for Alberta Oils Sands and International Heavy and Conventional Oils, Consulting by Pedro van Meurs, May 17, 2007
• Fiscal Options for Alberta Oil Sands, Consulting by Pedro van Meurs, May 30, 2007
• Proposed Fiscal Options, Consulting by Pedro van Meurs
  
• Alberta’s Conventional Oil and Gas Fiscal System, Overview of the Industry
• Alberta’s Conventional Oil and Gas Fiscal System, Investor Economics and Fiscal System Comparison
• Alberta’s Conventional Oil and Gas Fiscal System, Impact of Potential Royalty Change on Industry Activity
• Review of Conventional Oil and Gas Terms of Alberta, Consulting by Pedro van Meurs, July 29, 2007
  
• Final Report of the Royalty Review Panel, Our Fair Share- Alberta Royalty Review Panel, September 18, 2007  
  • Sensitivity Analysis Appendix - Alberta Royalty Review Panel
  • Data Appendix - Alberta Royalty Review Panel
  • Methodology Appendix - Alberta Royalty Review Panel, September 21, 2007
  • Addendum -Alberta Royalty Review Panel, September 25, 2007
  • Supplementary charts - Alberta Royalty Review Panel, September 25, 2007 
  • Data Appendix to Our Fair Share -Report of the Alberta Royalty Review Panel - Department of Energy
  • Proposed Panel Illustrative Charts and Tables - Department of Energy

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