Quote:
Originally Posted by ken0042
My understanding was that Stelmach made changes to existing deals. So if a company had a deal for the next 5, 10, or 20 years at a certain rate; that rate was going to change going forward.
I don't mind telling companies the new rate on new deals is going up, but to change existing deals is a very poor way to conduct business.
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Then we were fools to offer 20 year rate deals. Where is the business savy from the government?
The original oilsand players already had a couple of changes to their rate deals by the time Stelmach proposed their royalty rate changes. Funny how they were happy to accept a new rate that was lower yet balk at a rate increase...
Indeed Sara Palin once raised the royalty rates during her term as governor.
http://www.bloomberg.com/apps/news?p...d=aYdZoyTvFrTc
and yes the oil companies were not happy...
in the end Alberta Companies all got off better than they started as stelmach backed down on royalty increases - and switched the rate to the price of bitumen.