Alberta's royalty framework

Royalties are an important way that Albertans collect value from the development of the province's energy resources.

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.

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.