ARCHIVED - Indian Oil and Gas Canada (IOGC) Statement on the New Royalty Framework for Alberta:
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The Province of Alberta's Modernized Royalty Framework is expected to take effect on January 1, 2017. Further, on July 12, 2016, the Alberta government announced that industry, having new wells spud before January 1, 2017 and meeting certain criteria, may elect to opt-in early to its new framework.
Indian Oil and Gas Canada continues to explore options in response to the Province of Alberta's approach. An implementation approach for IOGC would need to:
- ensure a fair return to First Nations for their oil and gas resources;
- provide certainty to industry investing or considering investment on First Nations reserve lands; and,
- be competitive with the province's scheme so that First Nations reserve lands are as attractive for industry investment as equivalent lands in the surrounding province.
To achieve a proper balance will take further time and study. Therefore, Indian Oil and Gas Canada will NOT be considering industry applications for a process mirroring that of the province for early opting into the new provincial royalty regime. Indian Oil and Gas Canada will unveil its implementation plan, far enough in advance of the Province's announcement January 1, 2017, effective date, to provide industry ample time to adjust.