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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.

Royalties are a major source of revenue that helps pay for programs and services, such as health and education which is enjoyed by all Albertans.

The current royalty framework took effect January 1, 2017 after a review conducted in 2015. Read the Royalty Review Advisory Panel report.

Having gone into 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.

Royalties have been a key source of funding for the province of Alberta.
Overview of how our current royalty system operates, including factors that affect how much money is collected from resource development.
The Modernized Royalty Framework came into effect for all new oil and gas wells on January 1, 2017.
How oil sands royalties are collected and how the system is performing, including data for individual projects.

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