Oil guidelines

Modernized Royalty Framework (MRF)

Effective January 2017, the Alberta Modernized Royalty Framework Guidelines explain the general application and principles in assessing the Drilling and Completion Cost Allowance. They also explain Alberta’s Crown royalty share of hydrocarbons produced from lands under a Crown lease:

• crude oil
• gas
• natural gas liquids
• non-project crude bitumen

Alberta Royalty Framework (ARF)

As of January 2009, the Alberta Petroleum Royalty Guidelines assist with the interpretation of Alberta’s Crown royalty calculation under ARF. The ARF most often applies to wells spud prior to January 2017, and help to explain:

• how to interpret the relevant energy legislation, that is, statutes and regulations
• how to assess Alberta’s Crown royalty share of crude oil produced from lands under a Crown lease agreement
• how to calculate royalty programs and rates offered under ARF

Alberta petroleum marketing

The Petroleum Marketing Regulation Guidelines fall under the Petroleum Marketing Regulation and deal with delivery and reporting of conventional Crown oil royalty.

The Petroleum Marketing Regulation Guidelines focus particularly on:

• formalizing and clarifying business rules for conventional oil royalty delivery in Alberta
• provisions for penalties that improve the energy industry’s compliance with conventional oil royalty delivery and reporting

Enhanced Hydrocarbon Recovery Program (EHRP)

Effective January 2017, the Enhanced Hydrocarbon Recovery Program Guidelines explain the general application and principles of the EHRP.

The EHRP consists of 2 main components where primary production has already occurred. The first component targets tertiary recovery schemes which enhance recovery of hydrocarbons from a hydrocarbon pool or oil sands deposit by miscible flooding, immiscible flooding, solvent flooding, chemical flooding or other methods approved by the Minister.

The second component targets secondary recovery schemes which enhance recovery of hydrocarbons from a hydrocarbon pool or oil sands deposit by water flooding, gas cycling, gas flooding, polymer flooding or other methods approved by the Minister.

Learn more about the EHRP

Emerging Resource Program (ERP)

Effective January 2017, the Emerging Resources Program Guidelines explain the general application and principles of the ERP.

The ERP encourages industry to open up new oil and gas resources in higher-risk and higher-cost areas that have large resource potential. This will promote industry innovation and learning in order to generate greater royalties and other benefits to Albertans.

Learn more about the ERP

Enhanced Oil Recovery (EOR) program

The Enhanced Oil Recovery Program Guidelines explain methods to conserve the province’s petroleum resource. Alberta encourages the use of EOR for conservation.

EOR methods allow additional recovery through fluid injection such as:

• hydrocarbons
• CO₂
• nitrogen
• chemicals

The EOR program promotes the use of these methods for greater conservation.

The Alberta Energy Regulator (AER) commissioned a study of the province’s EOR potential. The study ran from March 2011 to March 2012 in 2 phases:

• Phase 1 produced Identification of Enhanced Oil Recovery Potential in Alberta - Phase 1, June 2011, which is a review of existing EOR scheme data.
• Phase 2 produced Identification of Enhanced Oil Recovery Potential in Alberta - Phase 2, March 2012, which outlines the future potential.

Note: This study considered only the technical factors associated with EOR. Economic factors, including oil prices, were not addressed in this study.

Contact

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