2007 Royalty Review Panel and Competitiveness study archive page

Premier Ed Stelmach initiated a public review of the province’s royalty and tax regime to ensure Albertans are receiving a fair share from energy development through royalties, taxes and fees.

On February 16, 2007, Finance Minister Lyle Oberg announcedexternal link icon the appointment of a six-member panel of experts to complete the review in a thorough and impartial manner.

The Royalty Review Panel was independent of government and consisted of the following panel members;
Bill Hunter (chairman), Judith Dwarkin, André Plourde, Kenneth J. McKenzie, Sam Spanglet and Evan Chrapko. 

The panel releasedexternal link icon their reportexternal link icon in September 2007, that marked the end of the panel.
The following documents were also part of their final submission;

Premier Stelmach deliveredNew Royalty Frameworkexternal link icon for Alberta in October of 2007.

In March 2008 Building Confidence: Improving Accountability and Transparency in Alberta’s Royalty Systemexternal link icon (Valentine report) was released with royalty recommendations to incorporate following the review. One of the recommendations was to post historical royalty data.

 In 2007 the Department of Energy developed the following info-series PDFs (PDF icon):

2007 Commissioned technical reports describing various aspects of Alberta's royalty systems:

Current Royalty information

A royalty competitiveness review followed the royalty review, The review compared investment in Alberta’s oil and gas resources relative to competing jurisdictions, with a particular focus on British Columbia, Saskatchewan and on-shore United States; e.g., Texas. All components of conventional oil and gas operations including regulatory efficiency, fiscal aspects, availability of labour, and other costs were considered.

Alberta success metrics include:

  • crude oil and natural gas production

  • oil and natural gas prices

  • land sales

  • total metres drilled

  • total expenditures

  • average number of active drilling rigs

  • pipeline utilization; and

  • employment

This competitiveness review, resulted in the Alberta Royalty Framework being adjusted as follows;

  • The five per cent front-end rate on natural gas and conventional oil will become a permanent feature of the royalty system

  • The maximum royalty rate for conventional and unconventional natural gas will be reduced at higher price levels from 50 to 36 per cent. For conventional oil, the maximum royalty will be reduced from 50 to 40 per cent

  • The natural gas and conventional oil price curves have been adjusted to provide lower rates at higher prices

  • Extension of the 5% royalty rate for Emerging Resources and Technologies including shale gas, coalbed methane, horizontal gas and horizontal oil wells

  • Revisions to the Natural Gas Deep Drilling Program that include extending the program to wells with vertical depths exceeding 2,000 metres

The Adjusted Royalty Framework was in effect from January 1, 2011 to December 31, 2016.


Alberta Energy on behalf of the Government of Alberta filed evidence with the National Energy Board Joint Review Panel as to why the Enbridge Gateway Pipeline application should be approved. Netback Impact Analysis of West Coast Export CapacityPDF icon (Wood Mackenzie)December 2011

Alberta Natural Gas and Conventional Oil Investment Competitiveness Study 2009 (posted in 2010)

Industry Information Sessions

In August of 2015 another royalty review began, the  Alberta Royalty Review Advisory Panel produced recommendations to form the Modernized Royalty Framework