The Department of Energy uses royalty reductions to help achieve its strategic objectives for Alberta’s energy resources and for royalty revenue. Specifically, these programs are designed to increase overall royalty revenues by giving companies an incentive to recover oil and gas, previously considered unrecoverable, from existing locations.

What we found

The department identified what it wanted to achieve through its royalty reduction programs. The department had effective processes to:

  • develop and administer its royalty reduction programs
  • assess program applications for approval
  • approve royalty reductions only after the department had evidence that the companies met all program criteria
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