How royalties work
The government owns 81% of oil and gas resources in Alberta and collects royalties from companies when an oil or gas well or oil sands project is in production.
They are a major source of revenue that helps pay for programs and services, such as health and education, enjoyed by all Albertans.
The overall royalty framework took effect January 1, 2017 after a review conducted in 2015. Read the Royalty Review Advisory Panel report.
Taking effect in July 2019, the Royalty Guarantee Act provides certainty that no major changes will be made to the current oil and gas royalty structure for a period of at least 10 years.
Royalty framework guiding principles
Albertans told the government what they wanted the royalty system to accomplish during the Royalty Review in 2015. The following guiding principles were the foundation of the new royalty framework which took effect January 1, 2017, and how we'll measure its success.