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Sunday, November 23, 2008

Alberta's Royalty Breaks Should Be Conditional on Reclamation Clean Ups

Here is a link to my recent interview on CBC Radio 1 Wildrose Country on Premier Stelmach's royalty relief for conventional oil and gas drilling effective January 1, 2009

UPDATE: NOV 24/08 The Stelmach government announces TODAY that the royalty break announced Nov 19 for new drilling for wells after Jan 1, 2009 has been revised. It now applies to oil and gas wells that have started prep work as of Nov 19.

The delay in the program implementation in the original announcement would have done more short term harm than long term good because all current work on drilling plans would have stopped until January 1. Duh!

They say this royalty break "is not anticipated to affect the estimated royalty impact of the five-year program announced November 19, 2008." OK. I still want to ensure Albertans as owners get the straight goods on just how much it will exactly impact these non-renewable resource revenues going forward. Will our government tell us that exactly - along with all other production based royalty revenue calculations as well? They have indicated with pending legislation changes that we will not be able to FOIP that information. Not accountable. Not transparent and not good stewardship.

Now lets make it clear that only companies that are currently active in meeting their obligations to reclaim abandoned oil and gas plays are eligible for the royalty assistance. We need those oil and gas companies to clean up behind themselves just as much as we need to keep drilling folks.