Natural Gas Well Productivity

Productivity Analysis of Gas Producing Wells in Alberta from 1994 to 2008.  Please note that final numbers for 2006, 2007 and 2008 may change slightly when final reports have been submitted.  These posted rates may also vary from other sources as these numbers have been rounded. 

Productivity is defined as monthly production divided by total producing hours, multiplied by 24.

  • Gas wells are conventional gas wells.
  • Solution gas is produced from oil wells.
  • CBM is natural gas from coal.

Note, the following tables are;

  • subject to periodic industry amendments
  • not exact, numbers have been rounded
  • and for clarity, the reported numbers are not broken down by vintage

Number of Producing Gas, Solution Gas and CBM Well Events at Year End 
2008 and 2009 Tables added in September 2010
Natural Gas Average Daily Production (ADP) Rate
Alberta Wellhead Natural Gas Production
Crown Natural Gas Royalty and Royalty Rate by Productivity Range - 2005
Crown Natural Gas Royalty Volume and Royalty Rate by Productivity Range - 2006
Crown Royalty and Royalty Rate by Productivity Range - 2007
Crown Natural Gas Royalty Volume and Royalty Rate by Productivity Range - 2008
Analysis of Gas Wells by Depth, Production and Gross Royalty
Number of Well Events Producing Natural Gas by Depth Range in 2008
Natural Gas Royalty Wellhead Production by Depth Range in 2008
Total Crown and Freehold Natural Gas Production by Depth Range
Natural Gas and Natural Gas By-Products Gross Royalty
Costs - Annual Natural Gas Crown Gas Cost Allowance (GCA)
Alberta Natural Gas Production and Royalty Revenues
Royalty Rates Before Gas Cost Allowance (GCA)
Alberta Combined Natural Gas and NGL Net Royalty
Net Royalty and Deductible Items as Percent of Gross Royalty
Holiday, Injection Credits, Raw Gas Adjustments and Other Misc. Deductions from Royalty
Alberta Natural Gas Royalty Rate Without Liquids Royalty
Alberta Natural Gas Royalty Rate With Liquids
Natural Gas Royalty Programs
Deep Gas Royalty Holiday Program (DGRHP) Information
Otherwise Flared Solution Gas (OFSG) - OFSG Credits by Production Year
Sulphur Emission Control Assistance Program (SECAP) Credits

Number of Producing Gas, Solution Gas and CBM Well Events at Year End

Year     Gas   Solution Gas  CBM only 1 CBM others  Total  
 1994    37,141     29,035  -  -   66,176
 1995    29,386     30,338  -  -   69,624
 1996    41,696     31,784  -  -   73,480
 1997    45,265     34,163  -  -   79,428
 1998    48,962     33,003  -  -   82,965
 1999    53,552     33,937  -  -   87,489
 2000    60,903     35,296  -  -   96,199
 2001    69,365     36,113  -  - 105,478
 2002    64,494     29,428    701      31   94,654
 2003    72,072     29.995    990    229 103,286
 2004    82,058     30,725 1,538    938 115,259
 2005    90,746     31,431 2,439 2,587 127,203
 2006    98,760     32,090 3,657 4,346 138,853
 2007  104,860     32,461 4,775 5,436 147,532
 2008  109,471     33,002 5,891 6,073 154,437
 2009  108.465     31,931 6,799 6,775 153,970

Source: Alberta Energy
Notes:      
1. CBM (Coalbed Methane) production prior to 2002 was insignificant and the number of well events
    prior to 2002  include CBM and  CBM and others well events.  
2. CBM and others include CBM mixed (commingled), and shale gas well events 

Number of Natural Gas Well Events and Gas Production -  2008 and 2009

Productivity Range       Average Number of Well Events  Crown Volume (Bcf)Total Crown and Freehold Production (Bcf)
E3M3/Day        2008                    2009               2008                       2009     
0.0 <= ADP < 0.5       62,197      66,544        153.8     170.9
0.5 <= ADP < 1.0       32,422      33,172        289.4     295.3
1.0 <= ADP < 1.5       16,090      15,820        242.3     238.4
1.5 <= ADP < 2.0         9,660        9,346        204.3     197.1
2.0 <= ADP < 5.0       22,045      21,286        830.6     804.6
5.0 <= ADP < 8.0        7,690        7,252        569.8     538.3
8.0 <= ADP < 16.9        7,773        7,029     1,006.7     915.2
16.9 <= ADP < 50.0        3,733        3,225     1,109.2     970.5
50.0 <= ADP < 100.0           627           527        461.9     386.4
ADP>=100.0           308           282         700.9      660.8
Total    162,546    164,482      5,569   5,177
Source:  Alberta Energy 

Crown Gas Volume, Gross Royalty and Royalty Rate by Productivity Range  - 2008 and 2009

Productivity Range       Crown Volume (Bcf)  Gross Royalty ($Million) Royalty Rate     
E3M3/Day      2008         2009        2008           2009      2008   2009
0.0 <= ADP < 0.5       78.97     88.1      $79.2      $22.2 13.07%   6.23%
0.5 <= ADP < 1.0      156.06   159.5    $127.7     $37.0 10.10%   5.84%
1.0 <= ADP < 1.5      136.53   132.2    $125.8        $32.1 11.21%   6.07%
1.5 <= ADP < 2.0      119.29   113.3    $121.3       $28.5  12.18%   6.26%
2.0 <= ADP < 5.0      538.80   525.2    $707.2       $147.3 15.34%   6.74%
5.0 <= ADP < 8.0     409.66   392.1    $732.9        $151.3  20.68%   8.80%
8.0 <= ADP < 16.9     767.05   703.5 $1,785.1    $482.1  26.98% 15.69%
16.9 <= ADP < 50.0     858.84   767.3 $2,201.0      $755.8  29.22% 22.58%
50.0 <= ADP < 100.0     364.56   305.3    $938.7     $342.9 29.56% 26.03%
ADP>=100.0     364.74   324.5    $908.1        $361.0    30.47% 26.58%
Total  3,794.49 3,510.9 $7,727.1     2,360.3
Source:  Alberta Energy

Crown Gas Royalty Take and Holiday Amounts - 2008 and 2009

Productivity Range  Crown Royalty Take (% of Total)    Holiday Amount ($Million)1 
E3M3/Day        2008                   2009            2008           2009    
0.0 <= ADP < 0.5       1.0%      0.9%        0.33     0.10
0.5 <= ADP < 1.0       1.6%      1.6%       0.40     0.06
1.0 <= ADP < 1.5       1.6%      1.4%       0.83      0.08
1.5 <= ADP < 2.0       1.6%       1.2%        1.34     0.09
2.0 <= ADP < 5.0       9.0%      6.2%     17.20       0.49
5.0 <= ADP < 8.0      9.4%       6.4%      25.59      0.69
8.0 <= ADP < 16.9    23.2%        20.4%        85.56     5.63
16.9 <= ADP < 50.0    28.7%       32.0%     149.91   25.20
50.0 <= ADP < 100.0    12.1%          14.5%        78.73      20.93
ADP>=100.0    11.7%          15.3%         65.76       21.02  
Total     100%    100%  425.70 $74.30
Source:  Alberta Energy  

1. In 2008 Deep Gas Royalty Holiday Program (DGRHP) was the only holiday program for true vertical depths greater than 2,500 meters;  2009 Holiday includes Natural Gas Deep Drilling Program (NGDDP) and New Well Royalty Reduction (NWRR). 

Natural Gas Average Daily Production (ADP) Rate 

 

Year

Daily Gas Well Average Productivity
E3M3/Day

Daily CBM Well Average Productivity
E3M3/Day

Daily Solution Gas Well Average Productivity
E3M3/Day

1994

12.78

 -

2.47

1995

12.43

 -

2.33

1996

12.13

 -

2.29

1997

11.48

 -

2.15

1998

10.97

 -

2.08

1999

10.27

 -

2.06

2000

9.21

 -

1.92

2001

7.98

 -

1.79

2002

7.07

2.90

1.70

2003

6.21

2.47

1.63

2004

5.47

2.60

1.62

2005

4.89

2.60

1.58

2006

4.34

2.62

1.48

2007

4.00

2.42

1.33

2008

3.59

2.16

1.18

2009 3.27 1.90 1.13
Source: Alberta Department of Energy  
Average daily production (ADP) = (Total production/Total number of hours of production)*24
Total gas is the sum of gas from CBM and solution gas wells.

Alberta Wellhead1 Natural Gas Production

 Year

Gas - Tcf

Solution Gas - Tcf

CBM2 - Tcf

Total - Tcf  

Solution Gas % of Total Gas

CBM % of Total Gas

1994

4.67

0.68

 -

5.35

12.7%

 -

1995

4.89

0.68

 -

5.57

12.1%

 -

1996

5.08

0.69

 -

5.77

12.0%

 -

1997

5.12

0.69

 -

5.81

11.8%

 -

1998

5.29

0.68

 -

5.96

11.3%

 -

1999

5.38

0.66

 - 

6.04

10.9%

 -

2000

5.43

0.65

 -

6.09

10.7%

 -

2001

5.34

0.63

 -

5.97

10.5%

 -

2002

5.30

0.60

0.01

5.91

10.1%

0.13%

2003

5.16

0.58

0.01

5.75

10.1%

0.20%

2004

5.17

0.59

0.03

5.79

10.2%

0.60%

2005

5.15

0.58

0.09

5.83

10.0%

1.52%

2006

5.05

0.56

0.18

5.80

9.7%

3.19%

2007

5.00

0.52

0.25

5.76

9.0%

4.30%

2008

4.76

0.46

0.27

5.50

8.4%

4.96%

2009 4.36 0.43 0.31 5.10 8.5% 6.05%
Source: Alberta Department of Energy  
Notes:    
1. Wellhead production includes all producing zones of the well.
2. CBM production prior to 2002 was insignificant

Crown Natural Gas Royalty and Royalty Rate by Productivity Range - 2005  

Productivity
Range
Mcf per day
(Mcf/d)

Monthly Average
Number
of Well
Events

Total Crown
Volume
Bcf

Crown Royalty Volume
Before
LPWA
Bcf

Crown Royalty Volume
Net of
LPWA
Bcf

Crown Gross
Royalty
Rate
Before
LPWA

Crown Gross
Royalty
Rate
Net of
LPWA

Gross Royalty
Values
$ Million

0.0-17.7

45,222

55.3

17.5

8.0

31.7%

14.4%

$71.3

17.7- 35.3

23,119

113.6

35.8

12.4

31.6%

10.9%

$108.4

35.3-53.0

13,367

114.5

36.1

13.4

31.5%

11.7%

$116.1

53.0-70.6

8,150

99.2

31.1

12.7

31.4%

12.8%

$110.3

70.6-176.6

18,652

434.2

133.4

70.3

30.7%

16.2%

$617.9

176.7-282.5

6,997

342.7

104.0

73.9

30.3%

21.6%

$654.1

282.5-600

8,447

790.3

239.9

219.5

30.4%

27.8%

$1,957.8

600-1765.7

4,759

1,033.6

313.7

312.5

30.4%

30.2%

$2,794.4

1765.7-3531.5

796

427.6

129.9

129.7

30.4%

30.3%

$1,152.0

>3531.5

448

580.7

175.2

175.1

30.2%

30.2%

$1,517.6

Source: Alberta Department of Energy  
LPWA: Low Productivity Well Allowance   

Crown Natural Gas Royalty Volume and Royalty Rate by Productivity Range - 2006 

Productivity
Range
Mcf per day
(Mcf/d)

Monthly Average
Number of
Well Events

Total Crown
Volume
Bcf

Crown
Royalty
Volume
Before LPWA
Bcf

Crown
Royalty
Volume
Net of LPWA
Bcf

Crown
Gross
Royalty Rate
Before LPWA

Crown
Gross
Royalty
Rate
Net of
LPWA

Gross
Royalty
Values
$Million 

0.0-17.7

50,333

62.7

19.8

8.4

31.5%

13.5%

$59.4

17.7- 35.3

26,874

129.6

40.8

13.6

31.5%

10.5%

$92.9

35.3-53.0

15,015

128.2

40.2

14.6

31.4%

11.4%

$99.0

53.0-70.6

9,100

113.0

35.3

14.2

31.2%

12.6%

$95.9

70.6-176.6

20,861

494.0

151.2

78.7

30.6%

15.9%

$541.1

176.7-282.5

7,494

382.6

116.0

81.9

30.3%

21.4%

$568.1

282.5-600

8,495

817.7

248.1

226.2

30.3%

27.7%

$1,581.5

600-1765.7

3,149

577.3

175.0

174.0

30.3%

30.1%

$1,227.6

1765.7-3531.5

1,336

423.1

128.3

128.0

30.3%

30.3%

$904.9

>3531.5

1,136

915.5

276.7

276.5

30.2%

30.2%

$1,932.3

Source: Alberta Department of Energy  
LPWA: Low Productivity Well Allowance

Crown Royalty and Royalty Rate by Productivity Range - 2007       

Productivity
Range
Mcf/d

Monthly Average
Number
of Well
Events

Total
Crown 
Quantity
Bcf

Crown
Royalty
Before
LPWA
Bcf

Crown
Royalty
Net of
LPWA
Bcf

Crown
Gross
Royalty
Rate
Before
LPWA

Crown
Gross
Royalty
Rate
Net of
LPWA

Gross
Royalty
Values
$Million 

0.0-17.7

55,514

69.8

22.0

8.8

31.5%

12.5%

$58

17.7-35.3

29,901

142.9

44.9

14.6

31.4%

10.2%

$94

35.3-53.0

15,788

135.8

42.5

15.2

31.3%

11.2%

$97

53.0-70.6

9,413

116.8

36.3

14.6

31.1%

12.5%

$93

70.6-176.6

21,881

523.7

160.0

82.7

30.5%

15.8%

$529

176.7-282.5

7,727

403.6

122.2

86.0

30.3%

21.3%

$548

282.5-600

8,257

801.3

242.8

221.0

30.3%

27.6%

$1,406

600-1765.7

4,186

948.8

287.6

286.4

30.3%

30.2%

$1,792

1765.7- 3531.5

687

379.3

114.8

114.7

30.3%

30.2%

$716

>3531.5

376

440.4

132.8

132.8

30.2%

30.2%

$823

Source: Alberta Department of Energy  
LPWA: Low Productivity Well Allowance 

Crown Natural Gas Royalty Volume and Royalty Rate by Productivity Range - 2008

Productivity
Range
Mcf per day
(Mcf/d)

Monthly Average
Number
of Well
Events

Total Crown
Volume
Bcf 

Crown Royalty Volume
Before
LPWA
Bcf

Crown Royalty Volume
Net of
LPWA
Bcf

Crown Gross
Royalty
Rate
Before
LPWA

Crown Gross
Royalty
Rate
Net of
LPWA

Gross Royalty
Values
$Million

0.0-17.7

62,104

79.5

25.0

9.6

31.4%

12.0%

$81

17.7-35.3

32,398

155.8

48.9

15.6

31.4%

10.0%

$128

35.3-53.0

16,066

136.1

42.5

15.3

31.2%

11.3%

$125

53.0-70.6

9,637

118.7

36.8

14.8

31.0%

12.4%

$121

70.6-176.6

21,917

532.8

162.2

83.7

30.4%

15.7%

$699

176.7-282.5

7,675

405.2

122.6

86.1

30.3%

21.3%

$725

282.5-600

7,940

772.1

233.8

212.5

30.3%

27.5%

$1,799

600-1765.7

3,808

865.0

262.0

260.8

30.3%

30.2%

$2,218

1765.7-3531.5

627

362.8

109.7

109.6

30.2%

30.2%

$934

>3531.5

308

364.7

109.8

109.8

30.1%

30.1%

$908

Source: Alberta Department of Energy  
LPWA: Low Productivity Well Allowance 

Analysis of Gas Wells by Depth, Production and Gross Royalty

Note:
Well depth is an important factor in determining gas royalty rates under the Alberta Royalty framework (ARF). The depth analysis is based on the total depth of the producing well events (finish drill date) which are paying royalties including wells spud and produced to 2008.  There are several well depth ranges; however, under the current ARF regime there is a special focus on wells in three categories: Wells greater than 2000 meters depth, wells greater than 2500 meters and wells greater than 4000 meters depth. Wells greater than 2000 meters depth will receive a royalty adjustment through the depth factor;  the wells greater than 2500 meters will receive a deep drilling program royalty adjustment and wells greater than or equal to 4000 meters will receive a supplemental benefit of $875,000 per well. In addition the transition royalty rate is applicable to well events between 1000 metres and 3500 metres depth.  Gross royalties are related to Alberta par price, average daily production (ADP) rate, acid gas factor and well depth.

Number of Well Events Producing Natural Gas1 by Depth Range in 2008

 Depth Range

CBM
Well
Events

Gas
Well
Events

Oil
Well
Events

Others2
Well
Events

Grand Total
Well
Events

Cumulative Number 
of Well
Events

Cum % of Total 
Well
Events
%

0<Depth<=500

            1,203

              16,285

0

          145

            17,633

            17,633

11%

500<Depth<=1000

            8,064

              63,443

5,877

          804

            78,188

            95,821

60%

1000<Depth<=1500

            1,554

              14,538

7,768

          142

            24,002

          119,823

75%

1500<Depth<=2000

               228

               6,352

8,067

          228

            14,875

          134,698

84%

2000<Depth<=2500

               135

               7,280

3,773

          543

            11,731

          146,429

92%

2500<Depth<=3000

               146

               5,431

2,051

          691

             8,319

          154,748

97%

3000<Depth<=3500

                 16

               2,992

427

          141

             3,576

          158,324

99%

3500<Depth<=4000

                   1

                  803

88

             7

                899

          159,223

100%

4000<Depth<=4500

 

                  324

13

             1

                338

          159,561

100%

4500<Depth<=5000

 

                  153

3

 

                156

          159,717

100%

5000<Depth<=5500

 

                    47

1

 

                  48

          159,765

100%

5500<Depth<=6000

 

                      6

 

 

                    6

          159,771

100%

6000<Depth<=6500

 

                      7

 

 

                    7

          159,778

100%

6500<Depth<=7000

 

                      6

 

 

                    6

          159,784

100%

Depth>7000

 

 

 

 

 

          159,784

100%

Total

           11,347

            117,667

           28,068

       2,702

          159,784

Source: Alberta Department of Energy    
Notes:     
1. Number of wells are those well Events which paid  royalties during the year    
2. Include crude bitumen, shale gas only, CBM & shale gas combined etc.   

Number of Well Events Producing Natural Gas1 by Depth Range in 2009

Depth Range  CBM
Well
Events 
Gas
Well
Events 
Oil
Well
Events 
Others2
Well
Events 
Grand
Total
Well
Events 
Cumulative
Number
of Well
Events

Cum %
of Total
Well
Events
%

0<Depth<=500

1,381     16,123             0       146      17,650   17,650   11%

500<Depth<=1000

9,648     63,380      5,976       964      79,968   97,618   60%

1000<Depth<=1500

1,891     14,147      7,457       130      23,625 121,243   75%

1500<Depth<=2000

   289       6,243      8,058       240      14,830 136,073   84%

2000<Depth<=2500

   148       7,262      3,773       564      11,747 147,820   91%

2500<Depth<=3000

   166       5,520      2,054       690        8,430 156,250   97%

3000<Depth<=3500

     19       3,178         445       140        3,782 160,032   99%

3500<Depth<=4000

       3          877           94         10           984 161,016 100%

4000<Depth<=4500

-          393           12           2           407 161,423 100%

4500<Depth<=5000

-          166            3           1           170 161,593 100%

5000<Depth<=5500

-            46 - -             46 161,639 100%

5500<Depth<=6000

-              7 - -               7 161,646 100%

6000<Depth<=6500

-              7 - -               7 161,653 100%

6500<Depth<=7000

-              8 - -               8 161,661 100%
Total 13,545   117,357    27,872    2,887     161,661

Source: Alberta Department of Energy    
Notes:     
1. Number of wells are those well Events which paid  royalties during the year    
2. Include crude bitumen, shale gas only, CBM & shale gas combined etc.   

  

Natural Gas Royalty Wellhead Production by Depth Range in 2008

Depth Range
Meters

Gas - Bcf

Solution gas- Bcf

CBM - Bcf

Others1 Bcf

Total - Bcf

0<Depth<=500

256.75

    -

30.54

1.23

289

500<Depth<=1000

989.95

14.59

174.00

5.13

1,184

1000<Depth<=1500

456.07

59.70

27.78

0.51

544

1500<Depth<=2000

398.97

144.42

5.59

0.91

550

2000<Depth<=2500

692.53

105.66

17.22

3.13

819

2500<Depth<=3000

667.15

103.30

17.58

5.06

793

3000<Depth<=3500

521.67

29.75

2.90

2.04

556

3500<Depth<=4000

268.66

5.32

0.77

0.01

275

4000<Depth<=4500

142.65

2.20

 

0.00

145

4500<Depth<=5000

131.27

0.33

 

 

132

5000<Depth<=5500

58.92

 

 

 

59

5500<Depth<=6000

4.86

 

 

 

5

6000<Depth<=6500

10.51

 

 

 

11

6500<Depth<=7000

6.52

 

 

 

7

Depth>7000

-

 

 

 

 

Total

4,606.48

465.27

276.39

18.03

5,366

 

 

 

 

 

 

 

 

 

 

 
Source: Alberta department of Energy   
Notes: Others include solvent, crude bitumen, shale gas, CBM & shale and other sources 

Total Crown and Freehold Natural Gas Production by Depth Range 

 

Total Wellhead Volume (Bcf)

Crown Volume (Bcf) 

Depth Range
D = Depth

Total Gas
Production
(Bcf)

Cumulative
Gas
Production
(Bcf)

Cumulative
Production

Total 
Prodution

Cumulative
Production 

Cumulative
Production

0<D<=500

                289

                 289

5%

                 236

             236

5.88%

500<D<=1000

             1,184

              1,472

27%

                 752

             988

24.63%

1000<D<=1500

                544

              2,016

38%

                 293

           1,281

31.93%

1500<D<=2000

                550

              2,566

48%

                 393

           1,674

41.72%

2000<D<=2500

                819

              3,385

63%

                 680

           2,354

58.66%

2500<D<=3000

                793

              4,178

78%

                 652

           3,006

74.92%

3000<D<=3500

                556

              4,734

88%

                 486

           3,492

87.04%

3500<D<=4000

                275

              5,009

93%

                 215

           3,707

92.39%

4000<D<=4500

                145

              5,154

96%

                 123

           3,830

95.46%

4500<D<=5000

                132

              5,285

98%

                 113

           3,944

98.29%

5000<D<=5500

                 59

              5,344

100%

                   51

           3,994

99.56%

5500<D<=6000

                   5

              5,349

100%

                     4

           3,999

99.67%

6000<D<=6500

                 11

              5,360

100%

                     8

           4,007

99.86%

6500<D<=7000

                   7

              5,366

100%

                     5

           4,012

100.00%

Depth >7000

                  -  

              5,366

100%

                    -  

           4,012

100.00%

Total (Bcf)

5,366

 

 

4,012

 

 

Note: Total production is wellhead production, Crown volume is royalty liable volume (includes liquids) in gas equivalent volume. 

Natural Gas and Natural Gas By-Products Gross Royalty

Depth Range
D = Depth

Gross
Royalty
($Million) 

Cumulative
Gross Royalty ($Million) 

Cumulative 
Gross Royalty Percentage

D = Depth

Royalty ($Million)

Gross Royalty ($Million)

Gross Royalty Percentage

0<D<=500

$299

$299

3%

500<D<=1000

$979

$1,278

13%

1000<D<=1500

$596

$1,875

19%

1500<D<=2000

$1,113

$2,988

30%

2000<D<=2500

$2,030

$5,018

51%

2500<D<=3000

$1,970

$6,988

71%

3000<D<=3500

$1,449

$8,437

85%

3500<D<=4000

$642

$9,079

92%

4000<D<=4500

$344

$9,423

95%

4500<D<=5000

$285

$9,708

98%

5000<D<=5500

$117

$9,825

100%

5500<D<=6000

$11

$9,836

100%

6000<D<=6500

$19

$9,855

100%

6500<D<=7000

$13

$9,868

100%

Depth>7000

$0

$9,868

100%

Total

             

$9,868

 

Costs

Gas Cost Allowance (GCA) – An allowance Crown pays to process Crown share of Natural gas

Annual Natural Gas Crown Gas Cost Allowance (GCA)1

Year

Operating
Cost
Allowance
(UOCR)
$Million

Capital
GCA
Costs
$Million

Custom
Processing
(CP)fees
$Million

Total
GCA2
Costs
$Million

UOCR
Volume
EAGEV3
Bcf

UOCR
per Mcf4

$/Mcf

GCA per
Mcf
5

$/Mcf

1994

$306

   $300

   $28

   $633

1,098

$0.28

$0.58

1995

$209

   $296

   $32

   $535

1,936

$0.11

$0.28

1996

$260

   $355

   $36

   $650

1,023

$0.25

$0.64

1997

$274

   $430

   $41

   $744

1,149

$0.24

$0.65

1998

$266

   $455

   $49

   $768

1,149

$0.23

$0.67

1999

$316

   $514

   $57

   $888

1,261

$0.25

$0.70

2000

$365

   $603

   $58

$1,025

1,321

$0.28

$0.78

2001

$437

   $682

   $45

$1,164

1,309

$0.33

$0.89

2002

$459

   $709

   $49

$1,215

1,257

$0.37

$0.97

2003

$493

   $754

   $42

$1,288

1,198

$0.41

$1.08

2004

$589

   $820

   $39

$1,447

1,180

$0.50

$1.23

2005

$686

   $892

   $34

$1,612

1,149

$0.60

$1.40

2006

$793

$1,053

   $26

$1,869

1,143

$0.69

$1.63

2007

$834

$1,176

   $16

$2,023

1,102

$0.76

$1.84

2008

$890

$1,253

   $-3

$2,139

1,035

$0.86

$2.07

2009 $618    $869  $230 $1,593    662 $0.93 $2.41

Bold indicates numbers updated in 2010.
1. GCA includes gathering, compression and processing at the plant.
2. Total GCA is the sum of operating, capital and custom fees adjusted by cost restrictions (that is, GCA cannot
exceed Crown royalty payable)
3. EAGEV stands for energy adjusted gas equivalent volume.
4. UOCR per Mcf = Operating Cost Allowance/UOCR Volume, where UOCR stands for Unit Operating Cost Rate
5. GCA per Mcf = Total  GCA Costs/UOCR Volume
*: Effective January 1, 2009 the operating costs paid by the crown are based on a facility by facility percentage of the actual operating costs of that facility.  The percentage is the ratio of the value of the royalty volume compared to the total value of the volume processed at the particular facility.
* The data is subject to prior period adjustments, statute barred after four years, for example, 2005 production year was statute barred at December 31, 2009.

Alberta Natural Gas Production and Royalty Revenues*

Royalty Rates Before Gas Cost Allowance (GCA)1

Natural Gas

Gross Gas
Production
Revenue
$ Million 

Crown
Production
Revenue
$Million

Crown Gross
Royalty2
$Million 

Low Productivity
Well
Allowance
(LPWA)
$Million

Holiday
Amounts3
$ Million

Royalty
Net of
LPWA
and
Holidays
$Million

Royalty Rates
Before
GCA
R%

2001

$30,027

$24,696

$7,469

$668

$86

$6,715

27.19%

2002

$20,427

$16,784

$5,104

$534

$109

$4,462

26.58%

2003

$32,030

$26,193

$8,004

$942

$155

$6,908

26.37%

2004

$33,413

$27,039

$8,252

$1,076

$150

$7,025

25.98%

2005

$43,852

$35,391

$10,790

$1,628

$323

$8,839

24.98%

2006

$34,846

$28,226

$8,598

$1,436

$271

$6,891

24.41%

2007

$32,250

$26,264

$7,995

$1,464

$324

$6,207

23.63%

2008

$39,092

$31,878

$9,696

$1,918

$339

$7,439

23.34%

2009 $18,773 $15,185 $2,376 $0 $74 $2,302 15.16%

Liquids

Gross Liquids
Production
Revenue

Crown Liquids
Production
Revenue

Crown Gross
Royalty

LPWA
Ethane

Holiday
Amounts

Royalty
Net of
LPWA
and
Holidays

R%
Royalty
Rates
Before
GCA

2001

$3,746

$3,119

$1,016

$0.4

$8

$1,008

32.33%

2002

$3,099

$2,609

$849

$0.3

$13

$836

32.05%

2003

$3,850

$3,194

$1,034

$0.4

$14

$1,020

31.93%

2004

$4,441

$3,657

$1,193

$0.5

$17

$1,176

32.16%

2005

$5,683

$4,720

$1,552

$1.5

$37

$1,514

32.07%

2006

$5,880

$5,001

$1,640

$3.3

$44

$1,593

31.86%

2007

$5,968

$5,104

$1,672

$4.2

$55

$1,613

31.60%

2008

$7,378

$6,452

$2,123

$5.7

$62

$2,055

31.86%

2009 $4,359 $3,818 $1,335 $0.0 $36 $1,299 34.02%

Total
Natural
Gas +
Liquids

$Million ($MM)

Revenue
$ Million

Gross
Royalty
$ Million

LPWA
$ Million

Holidays
$ Million

Net Roy
Net of
LPWA
and Holidays

R%
Royalty
Rates
Before GCA

2001

$33,773

$27,815

$8,486

$669

$93

$7,724

27.77%

2002

$23,526

$19,393

$5,953

$534

$121

$5,298

27.32%

2003

$35,881

$29,388

$9,039

$942

$169

$7,927

26.98%

2004

$37,854

$30,696

$9,445

$1,077

$167

$8,201

26.72%

2005

$49,535

$40,111

$12,343

$1,630

$360

$10,353

25.81%

2006

$40,726

$33,227

$10,239

$1,439

$315

$8,485

25.54%

2007

$38,219

$31,367

$9,667

$1,468

$379

$7,820

24.93%

2008

$46,470

$38,330

$11,820

$1,924

$401

$9,494

24.77%

2009 $23,132 $19,002 $3,711 $0 $110 $3,600 19.95%
Source: Alberta Department of Energy
Bold indicates numbers updated in 2010.  
Adjustments for the prior period continue up to the end of the year. No further adjustments after that.          
Notes      
1. The information in this section is based on monthly charges data where all changes in the past months
are included in the present month and as of May 2009 production month.      
2. Crown gross royalty before any deduction and excludes sulphur production      
3. Deep Gas Royalty Holiday Program terminated December 31, 2008.      

Alberta Combined Natural Gas and NGL Net Royalty

 Year

Total
Gross Royalty

LPWA
$ Million

GCA
$ Million

Other Deductions1
$ Million

Net Royalty2
$ Million

2001

$8,486

$669

$1,243

$534

$6,040

2002

$5,953

$534

$1,274

$444

$3,702

2003

$9,039

$942

$1,335

$544

$6,217

2004

$9,445

$1,077

$1,458

$524

$6,387

2005

$12,343

$1,630

$1,618

$813

$8,282

2006

$10,239

$1,439

$1,744

$680

$6,375

2007

$9,667

$1,468

$1,934

$704

$5,560

2008

$11,820

$1,924

$2,053

$851

$6,992

2009 $3,711 $0 $1,444 $284 $1,873
Source: Alberta Department  of  Energy
Bold indicates numbers updated in 2010.
Adjustments for the prior period continue up to the end of the year. No further adjustments after that.
Notes:   
1. Other Deductions include injection credit, DGRHP, transportation, fractionation, raw gas adjustments  etc.
2. Excludes sulphur revenues  

Net Royalty and Deductible Items as Percent of Gross Royalty

 Year

Net Royalty
% of Gross Royalty

LPWA
% of Gross Royalty

 

GCA
% of Gross Royalty

Other Deductions1
% of Gross Royalty

2001

71.2%

7.9%

14.7%

6.3%

2002

62.2%

9.0%

21.4%

7.5%

2003

68.8%

10.4%

14.8%

6.0%

2004

67.6%

11.4%

15.4%

5.5%

2005

67.1%

13.2%

13.1%

6.6%

2006

62.3%

14.1%

17.0%

6.6%

2007

57.5%

15.2%

20.0%

7.3%

2008

59.2%

16.3%

17.4%

7.2%

2009 50% 0% 39% 8%
Source: Alberta Department  of  Energy
Notes:    
1. Other deductions include injection credit, DGRHP, transportation, fractionation, raw gas adjustments etc.

Holiday, Injection Credits, Raw Gas Adjustments and Other Misc. Deductions from Royalty

 Year

Holidays
S Million

Injection Credits
$ Million

Raw Gas Adj.
$ Million

Others
$ Million

Total
$ Million

2001

$93

348

10.9

82

$534

2002

$121

239

6.7

76

$444

2003

$169

278

5.2

36

$489

2004

$167

245

8.0

103

$524

2005

$360

297

9.3

147

$813

2006

$315

231

6.4

127

$680

2007

$379

211

6.2

108

$704

2008

$401

241

6.7

209

$858

2009 $110 94 2.0 187 $393

 

% of Total

% of Total

% of Total

% of Total

Total

2001

17.5%

65.2%

2.0%

15.3%

100%

2002

27.4%

53.9%

1.5%

17.2%

100%

2003

34.6%

57.0%

1.1%

7.4%

100%

2004

31.9%

46.9%

1.5%

19.7%

100%

2005

44.2%

36.6%

1.1%

18.1%

100%

2006

46.3%

34.0%

0.9%

18.7%

100%

2007

53.8%

30.0%

0.9%

15.3%

100%

2008

46.8%

28.0%

0.8%

24.4%

100%

2009 28.1% 23.9% 0.5% 47.5% 100%
Source: Alberta Department  of  Energy
Bold indicates numbers updated in 2010.

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

2001

30.25%

27.54%

27.19%

21.21%

2002

30.41%

27.23%

26.58%

18.25%

2003

30.56%

26.96%

26.37%

20.65%

2004

30.52%

26.54%

25.98%

20.12%

2005

30.49%

25.89%

24.98%

19.92%

2006

30.46%

25.38%

24.41%

17.96%

2007

30.44%

24.87%

23.63%

16.18%

2008

30.42%

24.40%

23.34%

16.79%

  2009 15.65% 15.65% 15.16% 5.51%
Source: Alberta Department  of  Energy
Note:  The percentage calculation is based on data in the previous table.
Bold indicates numbers updated in 2010. 

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

2001

30.51%

28.10%

27.77%

21.71%

2002

30.70%

27.95%

27.32%

19.09%

2003

30.76%

27.55%

26.98%

21.16%

2004

30.77%

27.26%

26.72%

20.81%

2005

30.77%

26.71%

25.81%

20.65%

2006

30.81%

26.48%

25.54%

19.19%

2007

30.82%

26.14%

24.93%

17.73%

2008

30.84%

25.82%

24.77%

18.22%

2009 19.53% 19.53% 18.95% 9.86%
Source: Alberta Department of Energy
Note:  The percentage calculation is based on data in the previous table.
Bold indicates numbers updated in 2010. 

 Natural Gas Royalty Programs

 Deep Gas Royalty Holiday Program (DGRHP) Information1 Expired December 2009

Year

Number of
NGRHP Wells2

Gross
Exemption $MM3

Gross
Royalty $MM

Gross
Exemption
% of Gross
Royalty

1994

136

49

87

56.33%

1995

86

27

95

28.73%

1996

93

39

159

24.72%

1997

132

58

219

26.36%

1998

174

70

211

33.25%

1999

176

106

345

30.82%

2000

250

167

645

25.85%

2001

378

171

848

20.11%

2002

386

207

767

27.05%

2003

475

247

1,345

18.40%

2004

650

314

1,589

19.76%

2005

850

445

2,177

20.45%

2006

952

385

1,945

19.80%

2007

746

427

1,985

21.51%

2008

289

404

2,428

16.63%

Total

5773

$3,117

$14,846

 

Source: Alberta Department of Energy 
Run Date: February 2009 invoice, as of December 2008 Production Month.
2004 to 2008 numbers are subject to reporting amendments (until Statute Barred).
Notes:  
1. The program terminated effective 31 December 2008.
2. Based on effective start date – the number of new wells added to the program.

Otherwise Flared Solution Gas (OFSG) - OFSG Credits1 by Production Year

Production year

OFSG Credit $ Million

1999

$0.66

2000

$4.50

2001

$8.10

2002

$7.68

2003

$12.72

2004

$12.65

2005

$15.57

2006

$11.39

2007

$10.94

2008 $13.69
2009   $0.71
Source: Alberta Department of Energy
Bold indicates numbers updated in 2010.
Notes:
1. The OFSG program was announced in December 2, 1998 and was implemented in mid 1999 with royalty waiver made retroactive to January 1, 1999 production. The waiver would last for ten years from the first day in the month in which the application was received. The OFSG program was introduced to encourage the reduction of solution gas flaring in Alberta. For wells approved under this program, royalty is waved on solution gas and gas by-products that are uneconomic to conserve.

Sulphur Emission Control Assistance Program (SECAP) Credits1

Production Year

SECAP Credits ($Million)2

1995

$0.43

1996

$2.19

1997

$3.15

1998

$2.28

1999

$3.82

2000

$1.13

2001

$0.61

2002

$0.00

2003

$9.26

2004

$5.47

2005

$7.72

2006

$0.00

2007

$35.18

2008

$2.05

Source: Alberta Department of Energy 
 Notes: 
1. This program expired on November 30, 2008.
2. The SECAP program was intended to provide financial assistance to operators of small sour gas plants 
in meeting the sulphur emission standards. The program extended later to include some large sour gas plants identified in ERCB Interim Directive 2001-3 which were required to meet updated sulphur recovery 
guidelines.

 

 

 

 

Last reviewed/revised: 2011-11-04