Part of Royalties

Royalties collected in kind

Under the Mines and Minerals Act, Alberta’s government has the option to take its royalty share either in cash or in kind.

Skip to On this page Skip to Explore pages in

Overview

The people in Alberta own 81% of the province’s mineral rights, including oil and gas, and Alberta’s government manages those resources on their behalf. When companies develop the resources, they must pay the province or deliver a share of that production to the province, which is called a royalty.

As resource owner, Alberta’s government sets the conditions and royalties for resource development. Under the Mines and Minerals Act, Alberta’s government has the option to take its royalty share either in cash or in kind. 

Before 2025, the government took only its share of conventional crude oil production in kind through the Conventional Oil Royalty-in-Kind (CORIK) and collected its royalty share for other resources in cash.

In December 2025, the Bitumen Royalty-in-Kind (BRIK) program was established. It allows the Crown to receive its royalty share of bitumen as physical volumes rather than in cash and authorizes the Alberta Petroleum Marketing Commission (APMC) to arrange for delivery of royalty bitumen and any goods and services needed to support that delivery. This program allows the APMC to manage and sell bitumen royalty-in-kind volumes in the public interest.

In June 2026, Alberta’s government approved regulations to establish a Natural Gas Royalty-in-Kind (GRIK) program, giving the province an additional tool to diversify markets, improve access and support growth in the province’s natural gas sector.

GRIK builds on Alberta's existing royalty-in-kind authorities and provides the province with additional flexibility to support strategic initiatives that improve market access, infrastructure development and long-term growth in Alberta's natural gas sector. 

Both the BRIK and GRIK programs have 2 essential elements:

  • a voluntary credit mechanism that provides royalty credits for the Crown’s share
  • a legal backstop providing the APMC with authority to require delivery of in-kind royalty volumes when voluntary participation is insufficient, ensuring the APMC can reliably carry out its responsibilities under the royalty-in-kind programs in the public interest.

Objectives

  • Alberta’s government would have more control over the province’s resources, allowing for the expansion of egress and market access and the growth of the province's oil sands and natural gas sectors, as well as emerging industrial activity.
  • Taking royalties in kind would strengthen Alberta’s position as a competitive and reliable supplier and support new opportunities for domestic and international partnerships, including in the oil sands sector and growing Liquefied Natural Gas (LNG) markets.
  • GRIK would support the province’s Natural Gas Vision and Strategy by allowing Alberta to market its natural gas resources more effectively, helping maximize value while supporting ongoing investment in production and infrastructure.
  • BRIK includes a market design to facilitate more buyers and sellers of bitumen and a more transparent and liquid market, assisting Alberta’s government in getting full value for its royalties.

Regulations

The Alberta Oil Sands Resource Credit Regulation is made under the Petroleum Marketing Act and the Mines and Minerals Act and establishes the royalty credit program for royalties to oil sands products. It allows the APMC to negotiate commercial bitumen supply arrangements with industry based on Crown bitumen royalty entitlements through royalty credit contracts with eligible suppliers.

The Bitumen Royalty-in-kind Regulation is made under the Mines and Minerals Act and the Petroleum Marketing Act and establishes part of the BRIK BRIK program. It allows the Crown to elect to receive its royalty share of bitumen as physical volumes rather than in cash and authorizes the APMC to arrange for delivery of the Crown’s bitumen royalty share and any goods and services needed to support that delivery. It also allows the APMC to manage and sell bitumen-in-kind volumes in the public interest.

The Natural Gas Resource Credit Regulation is made under the Mines and Minerals Act and establishes the royalty credit program for royalties to natural gas, gas products and field condensate. It allows the APMC to give royalty credits through a royalty credit contract to eligible suppliers for supplying and delivering natural gas, gas products and field condensate.

The Natural Gas Royalty-in-kind Regulation is made under the Mines and Minerals Act and the Petroleum Marketing Act and establishes part of the GRIK program. It authorizes the APMC to direct the delivery of the Crown’s natural gas royalty share and any goods and services needed to support that delivery. It also helps ensure the APMC can reliably carry out its aggregator role.

Contact

Connect with the Alberta Petroleum Marketing Commission (APMC):
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 403-297-8784
Email: [email protected]

Address:
Alberta Petroleum Marketing Commission
237, 4 Avenue SW
Calgary, Alberta  T2P 4K3