Natural Gas Deep Drilling Program 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. These questions relate to the royalties that are in effect for wells spud up to and including December 31, 2016.


Why is the Government of Alberta making changes to the NGDDP?
What qualifies and what doesn’t under the royalty adjustment?
What is the revised NGDDP benefit schedule for a development well?
What is the revised NGDDP benefit schedule for an exploratory well?
Will the supplemental adjustment be given to any well?
How is the measured depth determined for the purpose of benefit calculations?
Are measured depths of all laterals eligible for the NGDDP?
What is the depth criterion for laterals to qualify for the NGDDP?
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?
Example 1 - Exploratory well with 2 well events
Example 2 - Exploratory well with 1 well event
Example 3 - A Development well with 2 well events
Example 4 - A Development well with a deepening situation
Example 5 - A Development well with 3 well events