This release was issued under a previous government.

In response to industry requests, oil and gas producers can apply to opt in to the new, modernized royalty framework for wells that otherwise would not have been drilled.

This changes the previously announced schedule, which said the new framework would not take effect until Jan. 1, 2017. The changes respond to industry producers who will be able to make new investments, or decide to keep investments in Alberta, under the Modernized Royalty Framework.

“We promised from the outset of our royalty review that we would listen to industry and there would be no surprises. By speeding up implementation of our new royalty framework, we will get rigs running in the fields and Albertans working. This decision will give companies a choice about what framework they want to work under for the rest of the year.”

Margaret McCuaig-Boyd, Minister of Energy

“We are pleased that the Alberta government will offer producers the opportunity to elect an early ‘opt in’ to the MRF.  This should be of interest to many operators whose resource projects are well suited to the design of the MRF.  In addition, the capital invested by companies taking advantage of this early opt-in feature will sooner put back to work unemployed Albertans living in oilfield communities across the province.”

Gary Leach, President, Explorers and Producers Association of Canada

“By offering an early ‘opt in’ to producers, the Government of Alberta is ensuring a smoother transition to the Modernized Royalty Framework. This is an opportunity to start some projects sooner and allow companies to put Albertans back to work rather than delay drilling plans.”

Tim McMillan, President and CEO, Canadian Association of Petroleum Producers

The Modernized Royalty Framework was announced April 21, 2016. It includes a harmonized Drilling and Completion Cost Allowance formula that applies to all oil, gas and liquids drilled in the province. It removes economic distortions and provides incentives for companies to lower their operating costs, helping to spur innovation in the sector.

Early access to the new framework is optional and will be application-based. As part of their application to opt in, early companies will need to prove their activity is above and beyond what was already planned. Any wells previously started will stay under the old royalty system.

Additional details on the opt-in option are available at