Interest by investors in developing helium deposits in Alberta
has to date been deterred by the lack of a helium specific royalty
rate. On May 13, 2020, Alberta Energy announced the introduction of
a royalty rate specific to helium.
Pursuant to Information Letter 2020-22, the helium royalty
rate has been set at 5 percent minus a helium royalty adjustment
factor of 0.75 percent, resulting in an effective rate of 4.25
percent. This rate is effective retroactive to April 1, 2020. The
adjustment factor will be reviewed in five years. Helium producers
must report monthly production volumes and average selling
prices.
A helium specific royalty rate is the first step to facilitating
the repurposing of inactive Alberta wells for the production of
other resources. It is expected that royalty rates specific to the
production of other resources such as lithium and hydrogen will
follow. While the development of a specific royalty rate is one
step towards facilitating such
