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 announced 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 released their report in September 2007, that marked the end of the panel.
The following documents were also part of their final submission;
Premier Stelmach delivered a New Royalty Framework for Alberta in October of 2007.
In March 2008 Building Confidence: Improving Accountability and Transparency in Alberta’s Royalty System (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 ():
2007 Commissioned 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
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
total metres drilled
average number of active drilling rigs
pipeline utilization; and
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 Capacity (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.