Overview of the Alberta Drilling Royalty Credit Program
The Drilling Royalty Credit Regulation, Alta. Reg. 245/ 2009 (the "Regulation"), which came into force on April 1, 2009, created a two-year stimulus program commencing on April 2009 and ending on April 2011 (the "Program"). Pursuant to the Program, for qualifying drilling on eligible wells, the Alberta government will award drilling royalty credits ("DRCs") to royalty payers in respect of their royalty obligations under the Natural Gas Royalty Regulation, 2009, Alta. Reg. 221/ 2008 (the "Natural Gas Royalty Regulation"), the Petroleum Royalty Regulation, 2009, Alta. Reg. 222/ 2008 (the "Petroleum Royalty Regulation") and Oil Sands Royalty Regulation, 2009, Alta. Reg. 223/ 2008 (the "Oil Sands Royalty Regulation") for the fiscal years of 2009/2010 and 2010/2011 ("Royalty Obligations"). The Regulation expires on June 30, 2017. Co-authored by Kyle Rousay; published in the December 2010 issue of The Negotiator magazine.
Bennett Jones