Alberta said on Thursday it will boost its oil and gas royalties, but the Canadian province backed away from some of the more contentious recommendations in a review panel's report that the industry had sought to discredit.
Under the new measures, Alberta's take will increase by C$1.4 billion ($1.45 billion) above projected 2010 revenues.
The government-appointed panel had urged a C$2 billion increase over 2006 revenue.
The government of Premier Ed Stelmach said its revamped fiscal regime, largely sensitive to commodity price movement, will mean smaller increases in natural gas and oil sands royalties than envisaged by the panel.
Stelmach also rejected the notion of a new tax on oil sands production.
Among other changes, the amount companies pay for oil sands projects before capital costs are recovered will range between 1 percent and 9 percent of revenues with increases starting at $55 a barrel oil prices and a cap set at $120 a barrel.
Post-payout, royalties will be 25 to 40 percent of net profits.
The existing structure sees oil sands producers pay 1 percent of revenue until payout and 25 percent of net profits after payout.
The measures will mean a C$470 million increase in oil sands royalties in 2010, down from the C$660 million recommended last month by the royalty review panel.
Changes to natural gas royalties, which will also be price sensitive, mean a C$470 million increase for 2010 versus the C$740 million increase recommended by the panel.
Changes are due to be implemented in January, 2009.
($1=0.97 Canadian)
AI
