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Beefcake · 10-25-2007, 04:41 PM

Conventional Oil: Current royalty rate maximum of 30-35%. Royalties will now be on a sliding scale with a maximum rate of 50% at CDN $120/bbl oil.

Natural Gas: Current royalty rate maximum of 5-35%. Royalty rates will now be on a sliding scale from 5-50%, with rate caps at CDN $16.59/GJ gas.

Oil Sands: Pre-payout rate is currently 1%. The new royalty rate will start at 1% and increase for every $1 oil is priced above CDN $55/bbl, to a maximum of 9% at CDN $120/bbl oil.

Post-payout rate is currently 25%. New royalty rate will start at 25% and increase for every dollar oil is priced above CDN $55/bbl, to a maximum of 40% at CDN $120/bbl oil.

There will be no grandfathering of existing oil sands projects. The government is currently negotiating with Syncrude and Suncore, with negotiations expected to close in the next 90 days. Unspecified "other measures" will be taken by the government if an agreement cannot be reached with these companies.

Upgrading/Refining: The government will not be offering a 5% credit as incentive to build upgraders or refineries in Alberta (as suggested by the Royalty Review Panel). Other measures will be taken to provide incentives to refine/upgrade in Alberta.

10-25-2007, 04:41 PM	#22
Beefcake Crash and Bang Winger Join Date: Oct 2002 Exp:	Conventional Oil: Current royalty rate maximum of 30-35%. Royalties will now be on a sliding scale with a maximum rate of 50% at CDN $120/bbl oil. Natural Gas: Current royalty rate maximum of 5-35%. Royalty rates will now be on a sliding scale from 5-50%, with rate caps at CDN $16.59/GJ gas. Oil Sands: Pre-payout rate is currently 1%. The new royalty rate will start at 1% and increase for every $1 oil is priced above CDN $55/bbl, to a maximum of 9% at CDN $120/bbl oil. Post-payout rate is currently 25%. New royalty rate will start at 25% and increase for every dollar oil is priced above CDN $55/bbl, to a maximum of 40% at CDN $120/bbl oil. There will be no grandfathering of existing oil sands projects. The government is currently negotiating with Syncrude and Suncore, with negotiations expected to close in the next 90 days. Unspecified "other measures" will be taken by the government if an agreement cannot be reached with these companies. Upgrading/Refining: The government will not be offering a 5% credit as incentive to build upgraders or refineries in Alberta (as suggested by the Royalty Review Panel). Other measures will be taken to provide incentives to refine/upgrade in Alberta.