Horizontal 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 for horizontal gas well events?
What qualifies and what doesn’t under the Horizontal Gas New Well Royalty Rate program?
Do wells brought back on to production qualify for the Horizontal Gas New Well Royalty Rate?
Can a horizontal gas 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 Gas New Well Royalty Rate?
Does oil production qualify for the 5% royalty rate under the Horizontal Gas 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 Gas New Well Royalty Rate for a gas well event?
Does each horizontal gas well event get its own cap?
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?