Shale Gas New Well Royalty Rate 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 extending the 5% royalty rate beyond 12 production months for shale gas wells?
What qualifies and what doesn’t under the Shale Gas New Well Royalty Rate?
What is the cap for the Shale Gas New Well Royalty Rate?
Can a shale gas well event receive the 5% royalty rate for 12 production months under New Well Royalty Rate and 36 additional production months under Shale Gas New Well Royalty Rate?
Must well events produce exclusively from Shale formations to qualify for the Shale Gas 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?