This is oil sands royalty story hinting at what happened. Still waiting for the details after the speach to get reportrd.
Alberta premier hints he'll boost energy royalties
Stelmach to announce details of controversial new program today
Oct 25, 2007 04:30 AM
John Cotter
THE CANADIAN PRESS
EDMONTON–Premier Ed Stelmach served up broad hints rather than hard numbers yesterday in his first response to a report that calls for energy companies to pay $2 billion more annually to develop Alberta's non-renewable resources.
In a televised speech, Stelmach said his government will create a new system for charging royalties but will give companies time to adapt to it.
The premier did not say if the changes will yield the 20 per cent increase in royalties called for last month by a review panel commissioned by his government, how the new system will work or when the changes will kick in.
"Now we are ready to take decisive action," Stelmach said. "One that delivers the fair share Albertans rightly expect from the development of their resources.
"It will provide the stability and predictability business needs, and time to adjust to the changes."
Details of the new royalty plan are to be released by Stelmach at a news conference in Calgary today.
Oil and gas royalties are forecast to bring in $10.5 billion to Alberta's coffers this fiscal year, about a third of the province's total revenues.
In his speech, Stelmach suggested the new royalty system will also address his goal of upgrading more of Alberta's non-renewable resources. Both the premier and opposition politicians have expressed concerns about corporations shipping raw oil sands bitumen from Alberta to the United States for processing.
Stelmach promised to encourage development of new energy sources such as oil sands and coal-bed methane – but again, did not say how.
Oil company officials said they want hard details of any changes to the royalty system before they will make any detailed comments.
"It is way early," said Imperial Oil spokesperson Pius Rolheiser.
"There may be some changes. We just need to wait and see what they are. Imperial, like the rest of industry, will be watching the premier's news conference with considerable interest."
Since the royalty review came out five weeks ago, the energy industry has warned that raising royalties would drive billions of dollars away from Alberta. Corporations have made almost daily threats to trim investments and eliminate thousands of jobs if the panel's recommendations are implemented.
In his speech, Stelmach said his government's plan will best secure Alberta's future.
"Decades from now, when our conventional energy resources are gone, our children must be left with an economic foundation for their prosperity," he said.
AI
