New Well Royalty Rate (NWRR) Frequently Asked Questions

Frequently Asked Questions (FAQ) represent the policy intent of the Government of Alberta, the FAQ are subject to change. Regulations prevail over the FAQ. Previous New Well Royalty Reduction questions are also available. These questions relate to the royalties that are in effect for wells spud up to and including December 31, 2016.


What changes have been made to the New Well Royalty Rate (5% for first year)?
Which wells will qualify for this rate?
For recommencements, does the "no production" criteria refer to Crown production or total production?
Why are there restrictions for re-entry, suspended and inactive wells?
Is there a drilling date requirement to receive the New Well Royalty Rate?
Do new well events completed within an existing well that have production qualify?
Are there any wells that do not qualify for the New Well Royalty Rate?
For wells qualifying for both the NGDDP and any of the 5% royalty rates, including the New Well Royalty Rate (NWRR), the Horizontal Gas NWRR, the Coal Bed Methane NWRR or the Shale Gas NWRR, how are royalties calculated?