Coalbed Methane 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 for coalbed methane wells?
What qualifies and what doesn’t under the Coalbed Methane New Well Royalty Rate?
Must well events produce exclusively from coal formations to qualify for the Coalbed Methane New Well Royalty Rate?
What is the cap for the Coalbed Methane New Well Royalty Rate?
Can a CBM well event receive the 5% royalty rate for 12 production months under New Well Royalty Rate and 36 additional production months under Coalbed Methane 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?