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Effective January 2017 for wells spud on or after January 1, 2017 or those approved to opt-in early to the Modernized Royalty Framework.

Otherwise Flared Solution Gas

The Otherwise Flared Solution Gas (OFSG) Wells Royalty Waiver Program encourages the reduction of solution gas flaring. For those wells approved under this program, the department will waive royalty on uneconomic solution gas and gas by-products that would have normally attracted a Crown royalty charge, see information letter IL 1999-19 (PDF, 103 KB) for more information. Certain wells were pre-qualified for the OFSG program and will not need to apply to the department to seek OFSG program acceptance. The initial list of pre-qualifying wells was published in the June 1999 Mineral Operations Information Bulletin. It was updated in August 2000. The listing of pre-qualifying wells (PDF, 2.8 MB) is also offered in Excel (XLSX, 373 KB) and may be updated periodically due to amendments and the ongoing validation process of the department's database.

Well process status and programs

All eligible deep gas royalty exemption wells (effective January 2006) use the following process status chart.

Application Status Description
New First appearance of potential eligible wells requiring determination this month.
Registered Well has been pre-qualified and will be technically evaluated by the department.
Confirmed The department has determined the calculation of the exemption and has completed the data entry. Well has been set up for exemption.
Denied It has been determined that the well does not meet the eligibility criteria.
Confidential The Alberta Energy Regulator has designated this well as "Confidential". Direct all inquiries of the process status for this well to Royalty Programs.

The well process status sheet (PDF, 7.9 MB) sorts well information by the application code and description.

Industry may contact Royalty Programs for inquiries pertaining to wells that have been denied after internal research to determine that the following basic eligibility criteria has been met and correctly reported to the department:

  • well has, and reported, an “On Production’ date
  • well has, and reported, gas production volumes
  • well depth is greater than 2,500 metres
  • well is not 100% Freehold
  • well is not identified as a Bitumen Well

Natural Gas Deep Drilling Program – well process status

Application statuses are listed in the table above.

This 2019 eligible wells spreadsheet (XLSX, 543 KB) identifies the "application status" of an eligible natural gas deep drilling program well. The well information on the spreadsheet is sorted by the application code and application description.

The spreadsheet is updated within the second week of the month. See the Natural Gas Deep Drilling Program presentation (PDF, 1.1 MB) for more details.

Note
Wells that have not met and/or reported any one or more of the above attributes will not appear on the spreadsheet. The department does not have the information for the well’s potential eligibility. In addition, if well production has been amended resulting in no production data for this well, the well will be dropped from the spreadsheet until well production is reported.

Facility Royalty Trigger Factors

Facility Royalty Trigger Factors and Meter Station Ties – Post Registry production.

User defined file (UDF) books

These handbooks are intended to assist recipients of the UDF in reading and interpreting the information transmitted to them.

This client letter identifies 'key' information relating to gas royalty reporting requirements.

Contact

Connect with Gas Royalty Operations:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Email: gasroyaltyprograms@gov.ab.ca

Address:
Alberta Energy
Gas Royalty Operations
North Petroleum Plaza
9945 108 St., 7th Floor
Edmonton, Alberta  T5K 2G6

Calgary: 
Alberta Energy
Pricing & Analysis
300, 801 6 Avenue SW
Calgary, Alberta  T2P 3W2