Oil sands rates of return

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 to 2004 the deemed corporate income tax rate type was variable. From 2003 to 1995 the corporate income tax rate type was fixed.

For reference Energy chart

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, 2018.

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