Modernized royalty system coming into effect January 1

Starting in the new year, Alberta’s Modernized Royalty Framework for new oil and gas wellS will come into effect after the approval of a series of regulatory changes.

It will include two new programs to encourage industry to explore new areas, and to boost production.

After accepting the recommendations of the Royalty Review Advisory Panel last year the government has introduced a number of measures including technical formulas so oil and gas producers can move ahead on drilling and investment plans, early access to the new royalty framework to attract incremental investment this year, as well as the two new royalty programs.

– Kara Oosterhuis