Alberta extends energy incentive programs
Alberta extended by a year to March 2011 the two energy incentive programs announced last March (OGJ, Mar. 9, 2009, Newsletter).
By OGJ editors
HOUSTON, June 25 -- Alberta extended by a year to March 2011 the two energy incentive programs announced last March (OGJ, Mar. 9, 2009, Newsletter).
The 1-year extension affects the following two programs:
-- The drilling royalty credit for qualifying wells. This program provides a $200 (Can.)/m-drilled royalty credit to companies on a sliding scale based on their production levels from 2008.
-- The new well incentive program. This program offers a maximum 5% royalty rate for the first year of production from new oil or gas wells.
“In these tough economic times and low-price environment, government needs to ensure the industry remains healthy and robust,” Alberta Energy Minister Mel Knight said.
“When we introduced these programs we said that we would make adjustments if needed. That is what we are doing today. This extension responds to market challenges facing oil and gas exploration in Alberta,” Knight added.