In this chapter we describe the current oil sands royalty regime as well as the three reform options modelled by the Pembina Institute.
Alberta’s oil sands are subject to the Oil Sands Royalty Regulation, 1997, commonly referred to as the “generic royalty regime.” The regime was implemented in 1997 following recommendations of the National Task Force on Oil Sands Strategies² that were released in the spring of 1995. The government of Alberta had a number of objectives in mind when it developed and implemented this royalty regime:³
Accelerate the development of the oil sands
Facilitate development of the oil sands...