Alberta reduces some royalty rates to encourage more oil production
The changes were recommended by the provincial royalty review advisory panel in January
Under the programs, companies would pay reduced royalty rates on those projects for a longer period.
CEO Tim McMillan of the Canadian Association of Petroleum Producers says the new royalty system recognizes the higher risks and greater costs of drilling associated with emerging developments and wringing out as much oil and gas from ongoing operations.
The changes were recommended by the provincial royalty review advisory panel in January.
They are to take effect as of Jan. 1, at the same time as Alberta’s overall new royalty framework.