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 – 2004 the deemed corporate income tax rate type was variable. From 2003 – 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, 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