On October 25, 2007, Alberta Premier Ed Stelmach announced the
New Royalty Framework (New Framework) to be implemented on January
1, 2009. The government stated that the purpose of the New
Framework was to give future generations of Albertans a share in
the development of resources, to provide stability and
predictability to the oil industry, and to assure investors that
Alberta would remain an internationally competitive and stable
place to do business. Government analysts projected that royalties
would increase by approximately $1.4 billion in 2010, a 20%
increase from revenues under the prior regime.
In April 2008, in response to an overwhelmingly negative reaction
from the oil and gas industry, the government introduced two new
royalty programs designed to encourage the continued development of
deep, high-cost oil and gas reserves, to be implemented
concurrently with the New Framework. In November 2008, Alberta
introduced an incentive program making companies
