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ARTICLE · 01 FEBRUARY 2016

Alberta's New Royalty Framework – Same Idea, New Structure?

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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​On January 29, 2016, Alberta Premier Notley announced Alberta's long awaited new royalty framework.

CanadaEnergy and Natural Resources

On January 29, 2016, Alberta Premier Notley announced Alberta's long awaited new royalty framework. The new royalty framework was based on adopting the recommendations from the Royalty Review Advisory Panel Report (the "Panel's Report").

The focus of the Panel's Report was to make recommendations on a modernized royalty framework for crude oil, liquids and natural gas operators to:

  1. Provide optimal returns to Albertans as owners of the resource, 
  2. Continue to encourage industry investment, 
  3. Encourage diversification opportunities such as value-added processing, innovation or other forms of investment in Alberta, and
  4. Support responsible development of resources.

Preserve Existing Royalty Structures for Current Wells and Oil Sands

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