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ARTICLE · 02 FEBRUARY 2016

A Modernized Royalty Framework Addressing Competitive Realities And Opportunities In Alberta

McCarthy Tétrault
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In addition to providing an overview of the new royalty framework, this article provides a summary of the Panel's key findings and a timeline for implementation.

CanadaEnergy and Natural Resources
Kristen Haines
Kristen Haines
Kimberly Howard
Kimberly Howard
Craig Spurn
Craig Spurn
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"Albertans are currently being appropriately compensated for the production and sale of their oil, gas and oil sands resources."

- Alberta Royalty Review Advisory Panel (January 29, 2016)

On January 29, 2016, the Alberta Government announced that it will adopt the recommendations of the Royalty Review Advisory Panel (the "Panel") from the Alberta at a Crossroads, Royalty Review Advisory Panel Report (the "Report") to modernize Alberta's royalty framework. The common-sense adoption by the Alberta Government of the Report prompted a collective sigh of relief across Alberta and the energy industry.1

The Report is extensive and not only recommends a new modernized royalty framework emulating a "revenue minus costs" approach but provides an educational summary of how the energy industry functions in the Province, how royalties are influenced by market conditions, and the global competiveness of Alberta's regime. Ultimately, the Report provides a harmonized

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