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Long-term bond rate
The Long-term bond rate (LTBR), simple average rate and return allowance rate are available in monthly and year end files. Long-term bond rates from 1995 to 2012 are also available.
Table 1. Non-Arm’s Length
This is the Non-Arm’s Length transaction Non-Basic Pipeline chart, please note that from 2018 – 2004 the deemed corporate income tax rate type was variable. From 2003 – 1995 the corporate income tax rate type was fixed.
| Year | Rate of Return on Capital | Deemed Corporate Income Tax | |
|---|---|---|---|
| 2020 | 5.78% | 24.00% | FINAL |
| 2019 | 6.81% | 26.50% | FINAL |
| 2018 | 7.05% | 27.00% | FINAL |
| 2017 | 6.64% | 27.00% | FINAL |
| 2016 | 6.88% Pg. 5 (PDF, 45 KB) See breakdown including prior year data](Note: Revised due to new information) | 27.00% | FINAL |
| 2015 | 7.18% | 27.00% | FINAL |
| 2014 | 7.49% | 25.00% | FINAL |
| 2013 | 7.03% | 25.00% | FINAL |
| 2012 | 7.10% | 25.00% | FINAL |
| 2011 | 7.98% | 26.50% | FINAL |
| 2010 | 8.63% | 28.00% | FINAL |
| 2009 | 8.84% | 29.00% | FINAL |
| 2008 | 9.07% | 29.50% | FINAL |
| 2007 | 9.25% | 32.12% | FINAL |
| 2006 | 9.83% | 34.50% | FINAL |
| 2005 | 10.77% | 37.62% | FINAL |
| 2004 | 11.36% | 38.87% | FINAL |
| 2003 | 12.64% | 45.00% | fixed |
| 2002 | 12.54% | 45.00% | fixed |
| 2001 | 12.65% | 45.00% | fixed |
| 2000 | 12.92% | 45.00% | fixed |
| 1999 | 12.60% | 45.00% | fixed |
| 1998 | 13.18% | 45.00% | fixed |
| 1997 | 14.12% | 45.00% | fixed |
| 1996 | 15.19% | 45.00% | fixed |
| 1995 | n/a | n/a | n/a |
For reference Energy chart
| Non-Arm’s Length Transaction Non-Basic Pipeline | |||
|---|---|---|---|
| Year | Rate of Return on Capital | Deemed Corporate Income Tax | |
| 2020 | 5.78% | 24.00% | FINAL |
| 2019 | 6.81% | 26.50% | FINAL |
| 2018 | 7.05% | 27.00% | FINAL |
| 2017 | 6.64% | 27.00% | FINAL |
| 2016 | 6.88% Pg. 5 [see breakdown including prior year data] (Note: Revised due to new information) | 27.00% | FINAL |
| 2015 | 7.18% | 27.00% | FINAL |
| 2014 | 7.49% | 25.00% | FINAL |
| 2013 | 7.03% | 25.00% | FINAL |
Learn more
Refer to these pages for more help:
- Bank of Canada Benchmark Bond Yields (Long Term Bond Rate)
- Bank of Canada Weekly Financial Statistics (PDF, 154 KB)
More on rates of return
Return allowance
All pre-payout projects are allowed a return allowance on the excess of cumulative costs, less cumulative revenue.
For post-payout projects, a return allowance may be claimed if a project has a net loss for the year.
In the case of pre-payout projects, the amount is calculated monthly. In the case of post-payout projects, the amount is calculated annually.
The rate of the return allowance is tied to the long-term bond rate, set by the Bank of Canada. The legislative authority for the return allowance is provided by Section 2 of the Oil Sands Allowed Costs (Ministerial) Regulation.
Non-arm’s length (NAL) pipeline return rate
Pipelines used to transport bitumen or bitumen blend to market are not allowed as project assets. As a result, only a per-unit charge is allowed based on volumes actually transported.
In the case of NAL pipelines, the amount charged is calculated by a formula. It includes a return-on-capital component, which is tied to the return allowed by the National Energy Board for multi-rate pipelines.
More information on this cost-of-service formula can be found in Section 5.3 of the Oil Sands Royalty Guidelines, 2012.
Contact
Connect with Oil Sands, Coal and Mineral Operations:
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Email:
Oil Sands Royalty Project Applications and Compliance [email protected]
Oil Sands Royalty Administration [email protected]
Oil Sands Royalty Information Management [email protected]
Oil Sands Tenure [email protected]
Mailing Address:
Alberta Energy
Oil Sands, Coal and Mineral Operations
6th floor, Petroleum Plaza, North Tower
9945 108 Street
Edmonton Alberta T5K 2G6