Natural Gas and By-product Royalties
The natural gas and by-product royalties invoiced are offset by the crown paying for the processing cost of the royalty share of production. This offset is termed Gas Cost Allowance.
Gas history;
• On May 1, 2011, the 2009 New Well Royalty Rate royalty reduction became a permanent part of the royalty formula. As this applies to by-products the overall effective rates are less than the previous fixed rates.
• In 2009 the vintages were eliminated and the gas royalty rate is based on the wells production and the gas price. By-product royalties are at fixed rates.
• Prior to 2009 natural gas production was differentiated by vintage with the following classifications Old (pools discovered prior to 1974), New (pools discovered between 1974 and 1990). The royalty rate was also adjusted for low productivity wells (LPWA).
The following tables provide a history of gas prices and effective royalty rates. More detailed information is included in the file below.
• Natural Gas & By-products
• Price
| Year | Natural Gas Alberta Reference Price $/GJ1 |
| 2010 | 3.57 |
| 2009 | 3.65 |
| 2008 | 7.47 |
| 2007 | 5.88 |
| 2006 | 6.22 |
| 2005 | 7.87 |
| 2004 | 5.98 |
| 2003 | 5.81 |
| 2002 | 3.68 |
| 2001 | 5.12 |
| 2000 | 4.27 |
| 1999 | 2.35 |
| 1998 | 1.84 |
| 1997 | 1.87 |
| 1996 | 1.54 |
| 1995 | 1.24 |
| 1994 | 1.72 |
Alberta Natural Gas Royalty Rate Without Liquids Royalty
| Year | Gross Royalty |
Royalty Rate Net of LPWA |
Royalty Rate Net of Holiday |
Effective Royalty Rate Net of all Deductible Items |
| 2010 | 15.00% | 15.00% | 13.04% | 3.55% |
| 2009 | 15.65% | 15.65% | 15.16% | 15.51% |
| 2008 | 30.42% | 24.40% | 23.34% | 16.81% |
| 2007 | 30.44% | 24.87% | 23.63% | 16.18% |
| 2006 | 30.46% | 25.38% | 24.41% | 17.96% |
| 2005 | 30.49% | 25.89% | 24.98% | 19.92% |
| 2004 | 30.52% | 26.54% | 25.98% | 20.12% |
| 2003 | 30.56% | 26.96% | 26.37% | 20.65% |
| 2002 | 30.41% | 27.23% | 26.58% | 18.25% |
| 2001 | 30.25% | 27.54% | 27.19% | 21.21% |
Alberta Natural Gas Royalty Rate With Liquids
| Year | Gross Royalty |
Royalty Rate Net of LPWA |
Royalty Rate Net of Holiday |
Effective Royalty Rate Net of all Deductible Items |
| 2010 | 20.04% | 20.04% | 17.72% | 9.24% |
| 2009 | 19.53% | 19.53% | 18.95% | 9.86% |
| 2008 | 30.84% | 25.82% | 24.77% | 18.24% |
| 2007 | 30.82% | 26.14% | 24.93% | 17.73% |
| 2006 | 30.81% | 26.48% | 25.54% | 19.19% |
| 2005 | 30.77% | 26.71% | 25.81% | 20.65% |
| 2004 | 30.77% | 27.26% | 26.72% | 20.81% |
| 2003 | 30.76% | 27.55% | 26.98% | 21.16% |
| 2002 | 30.70% | 27.95% | 27.32% | 19.09% |
| 2001 | 30.51% | 28.10% | 27.77% | 21.71% |
Natural Gas Royalty Report 2010
Please note:
- The information provided here is subject to periodic industry amendments
- Any discrepancy in the numbers reported is due to rounding
- For terms of use consult the copyright and disclaimer information
-
If you have any technical questions please contact response.energy@gov.ab.ca
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