Rubber Finally Hits the Road As Alberta Premier Announces Details of Royalty Plan

By THE CANADIAN PRESS

CALGARY – The rubber finally was to hit the road Thursday with Alberta Premier Ed Stelmach to provide details on what his government plans to do about energy royalties.

Stelmach and Energy Minister Mel Knight were scheduled to hold a news conference in Calgary to officially respond to a review panel’s report that recommended oil and gas companies pay $2 billion more annually into provincial coffers.

The premier hinted in a televised speech Wednesday night that the province will create a new system for charging royalties but will give companies time to adapt to it.

He said in the speech that the government is “ready to take decisive action” to deliver a fair share of the province’s resources to Albertans.

But he also said any changes will provide the stability and predictability business needs.

Oil and gas royalties as they are now calculated are forecast to bring $10.5 billion to Alberta this fiscal year – about a third of the province’s total revenues.