Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Alberta Royalty Relief

Welcome news for the Alberta oil patch came in the form of a 3 part incentive program.

Part 1 - $200/m drilled royalty credit on a sliding scale based on production levels from last year.

Part 2 - 5% maximum rate for the first year of production from new oil or gas wells.

Part 3 - The province will invest $30 million in a fund committed to abandoning and reclaiming old well sites (they were supposed to be doing this anyway but a 3 part plan sounds better).