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.
History of Alberta royaltiesRoyalties have been a key and consistent source of funding for the province of Alberta.
How Alberta's royalty system worksOverview of how our current royalty system operates, including factors that affect how much money is collected from resource development.
Oil and gas royaltiesThe modernized royalty framework came into effect for all new oil and gas wells in 2017.
Oil sands royaltiesHow oil sands royalties are collected and how the system is performing, including data for individual projects.
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.
Encouraging environmental responsibilityEncouraging environmental responsibility in the oil and gas sector is a vital part of Alberta’s resource development approach.
Downstream value-added industriesThe elements of the royalty system may be used to encourage activities like upgrading and refining to produce value-added products.
Attracting investment and promoting job creationThe royalty framework helps attract investment, create jobs, and support a predictable business climate in Alberta.
Optimizing returns for AlbertansThe royalty framework helps Albertans benefit from the development of Alberta’s energy resources.