Horizontal Oil 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 horizontal oil well events?
What qualifies and what doesn’t under the Horizontal Oil New Well Royalty Rate?
Can a horizontal oil well event receive the 5% royalty rate for 12 production months under New Well Royalty Rate and additional production months and volume caps under Horizontal Oil New Well Royalty Rate?
Does solution gas and gas products, including sulphur, qualify for the 5% royalty rate under the Horizontal Oil New Well Royalty Rate?
What if a well has a gas well event and an oil well event in the same well, which caps would apply?
What is the Horizontal Oil New Well Royalty Rate for an oil well event?
Does each horizontal oil well event get its own cap?
How is the depth determined for the Horizontal Oil New Well Royalty Rate?