Oil royalties under review (Alberta)

“Changing structures is not something we should do frequently,” he told MLAs who quizzed him about the province’s one-per-cent incentive royalty on new oilsands production until plant construction costs are paid off.

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“We have to remember we have to encourage investment,” Melchin said. Care also must be taken to ensure royalties do not cause wells to be abandoned prematurely as they age and declining flows raise production costs, he added.