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Wednesday, October 03, 2007

Alberta's Auditor General Says Higher Royalties Justified Even Beyond the Expert Panel's Recommendations

The Auditor General is calling for even higher royalty rates than the “Our Fair Share” Expert Panel according to a Calgary Herald story this morning. The AG says the Department of Energy has a royalty rate of about 66% to keep it competitive with other jurisdictions. Dunn says even a 70% royalty rate would still keep Alberta’s royalty rate competitive.

The story goes on to say: “The auditor general's comments come the day after the release of his annual report, where he said a lack of political leadership saw the government miss out on an additional $1 billion or more in royalties annually.

Dunn said that money could have been collected without stifling the industry.

The key quote from Fred Dunn is “What is the risk that the industry sees which would therefore justify the owners – Albertans – selling the resource for less than other jurisdictions.”