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Alberta Gas Royalty Operations Information & How to Contact
Gas Royalty Operations Website: can be accessed at: http://www.energy.alberta.ca/OurBusiness/Gas.asp
New Gas Royalty Client Letter: this is a letter sent and available to new clients outlining key information about gas royalty business. A copy of this letter can be found at: http://www.energy.alberta.ca/NaturalGas/Gas_Pdfs/New_Gas_Royalty_Client_Letter.pdf
Alberta Natural Gas Royalty Guidelines and updated changes can be found at: http://www.energy.alberta.ca/NaturalGas/738.asp
Natural Gas Information Letter:
The monthly Natural Gas Information Letter provides the various prices necessary to calculate the royalty quantity and value for gas, ethane, and gas products in accordance with the Natural Gas Royalty Regulation, 2009 A.R. 221/2008 and 2017 A.R. 211/2016.
http://inform.energy.gov.ab.ca/ILSummaryResults.aspx?Commodity=Natural+Gas&Status=Active&YearFrom=All&YearTo=All&Topic=All&AdvancedSearch=Y&OrgKey=All&OrgName=All
Information Bulletin:
The monthly Information Bulletin provides notices of gas royalty operational requirements, activities, and pricing information.
http://www.energy.alberta.ca/NaturalGas/736.asp
Alberta’s Modernized Royalty Framework (MRF): details about MRF can be found at: http://www.energy.alberta.ca/NaturalGas/732.asp
Other Information Sources:
Petrinex is a centralized information network that allows oil and gas facility operators to report, manage and exchange up-to-date volumetric, royalty and commercial information with government and members of industry. Petrinex is accessed through the Internet at: www.petrinex.ca
For questions regarding the PETRINEX system and filing issues, contact the Petrinex Service Desk:
Phone: 403-297-6111 (Calgary)
Phone:1-800-992-1144 (other locations)
Fax: 403-297-3665
Email: petrinexsupport@petrinex.ca
Web site: http://www.petrinex.ca
Inquiries regarding gas royalty business please contact Gas Royalty Operations:
Volumetric & Cost Reporting
Volumetric & Cost Reporting (V&CR) is the front line of contact for inquiries relating to volumetric and cost reporting as well as gas royalty calculation processes.
Gas Royalty Voicemail: 780-422-8727
Fax: 780-427-3334
Alberta Toll Free: 310-0000
Gas Royalty Email: VCR@gov.ab.ca
Management Information
All inquiries or requests that relate to royalty information (e.g. Information Letter, Information Bulletin, and other Department of Energy Natural Gas website publications) or questions related to Commercial Storage, Soldier Settlement, and Farm Gas should be forwarded to the Management Information Team at ManagementInformation.Energy@gov.ab.ca.
Gas Royalty Accounting
All inquiries or requests that relate to royalty accounting (e.g. Transfers, Refunds, Interest, Statement of Account, Collections, and Royalty Deposits) should be forwarded to the Royalty Accounting Team at GasRoyaltyAccounts.Energy@gov.ab.ca.
Gas Royalty Features
All inquiries or requests that relate to royalty programs (e.g. Natural Gas Deep Drilling Program, New Well Royalty Rates, and Otherwise Flared Solution Gas Royalty Waiver Program) should be forward to the Royalty Features team at GasRoyaltyPrograms@gov.ab.ca.
Freehold Mineral Tax
All inquiries or requests that relate to Freehold Mineral Tax (FMT) (e.g. Recalculation of Tax, Notice of Objections, Electronic Transfer System (ETS), inquiries for FMT, Freehold Role transfers, Unit Value Submissions, Title Transfers, Mineral Tax Redemption Act (MTRA), and EOR on Freehold Lands) should be forwarded to the FMT Help Desk at Mintax.Energy@gov.ab.ca.
Reference Prices and Valuation Allowances Calculation Information
For information related to Natural Gas and Natural Gas Liquids reference prices, and Sulphur valuation submissions (VA3 and VA4), should contact the Pricing & Analysis Team located at the Alberta Energy office in Calgary: Pricing & Analysis
300, 801 – 6 Avenue SW
Calgary, Alberta T2P 3W2
Telephone: 403-297-5514
Fax: 403-297-5400
Email: GasValuation.Energy@gov.ab.ca
AER (Alberta Energy Regulator) is responsible for development of Alberta’s energy resource life cycles such as application and construction to production, abandonment, and reclamation. Contact information for the AER can be found on their website: www.aer.ca
General Gas Royalty Information
PAD – Production Allocation Discrepancy report:
To encourage accurate reporting, a monthly reconciliation process compares a production entity’s allocated quantities with its reported gas production volumes. If the variance between the allocated quantities and the gas production volume exceeds a prescribed tolerance, the reporting situation is included in a monthly Petrinex PAD Report. This report is available to operators who have the ability to amend production or allocation volumes to resolve a reporting discrepancy. More details about the PAD report can be found in the Alberta Natural Gas Royalty Guidelines (2009) Chapter II, section 1.9 http://www.energy.alberta.ca/NaturalGas/738.asp
Gas Cost Allowances (GCA) Alberta Natural Gas Royalty:
Refer to the Alberta Natural Gas Royalty Guidelines (2009), Chapter VI for complete information regarding Alberta’s Share of Allowable Costs and Appendix C-Validation Rules, sections 2.1 to 2.4 for form submission edits.
Monthly Cost Allowance Calculation: Chapter VI, section 1.6
- The department deducts the Crown’s share of cost allowance each month as a reduction from Crown royalty payable in that month. The monthly cost allowance is unique to each royalty client/facility, and is calculated as follows:
Estimated Cost multiplied by Estimated FERR = Estimated Crown Share of Cost
Estimated Crown Share of Cost … minus … Monthly Cost Previously Taken = Estimated Crown Share of Remaining Cost
Estimated Crown Share of Remaining Cost … divided by … the Remaining Months = Monthly Cost Allowance
- The monthly cost allowance calculated at a client/facility level is summarized as an individual deduction for each charge type on the client’s invoice.
- The estimated capital and operating costs are based on the sum of the previous year’s actual capital and operating cost allowance allocations and reallocations reported on appropriate versions of the AC2 and AC3 forms.
- The estimated monthly Crown share of custom processing fees is based on the previous year’s actual custom processing fees reported on appropriate versions of the AC5 form.
Annual Cost Allowance process: Chapter VI, section 1.6.3
The department annually calculates:
- The difference between the estimated Crown share of capital, operating & custom processing cost allowances deducted during the year and the actual Crown share of capital & operating and custom processing cost allowances calculated for each royalty client/facility.
- The annual cost allowance adjustment calculated at a client/facility level is summarized as an individual deduction for each charge type on the client’s invoice.
- The annual capital cost, operating cost, and custom processing fee adjustments to a royalty client’s corporate account initially appear on the royalty client’s April billing period invoice, issued in the calendar month of June of the year following the production year.
Reporting deadlines: Listed below are some common forms and due dates.
More information on Forms and Reporting can be located in the Natural Gas Royalty Guidelines (2009), Chapter II, section 1.5 http://www.energy.alberta.ca/NaturalGas/738.asp or Forms & Reporting: http://www.energy.alberta.ca/NaturalGas/559.asp
Form |
Form Due Date |
Form Name |
Consequence of Late Filing or Non-Filing |
Penalized Party |
Penalty |
Penalty
Timing |
Volumetric SAF/OAF |
15th day of the second month following the production month |
Volumetric, Stream Allocation Factor,
Owner Allocation Factor |
Provisional
Assessment |
Facility Operator |
None |
N/A |
VA3 |
April 15 following the production year |
Annual Sulphur Corporate Average Price (S-CAP) Calculation |
Default Price used to estimate royalty if not received within 3 months after the due date |
Royalty Client |
$1000 one time |
From Due
Date |
VA4 |
15th day of the second month following the production month |
Monthly Sulphur Corporate Average Price (S-CAP) Calculation |
Default Price used to estimate royalty |
Royalty client |
$100/month
until received
or until VA3 received for that year |
From Due
Date |
AC2-V4 |
April 30 following the production year. |
Capital and Operating Cost Allowances for Production Years 2009 and Onwards |
No costs given in the relevant production year |
Facility Cost Centre Operator |
$100/month until received to a maximum of $600 |
From Due
Date |
AC5-V4 |
May 15 following the production year |
Allowable Custom Processing Fees for Production Years 2009 and Onwards |
No costs given in the relevant production year |
Royalty
Client |
$100/month upon receipt to a maximum of $600 |
From Due Date |
Statute barred:
Statute barred means a royalty related activity where a specified number of years have passed since the production year in which that activity occurred.
For production years up to and including 2014 a production year becomes statute barred on December 31st, four years after the end of the production year. Once a year has become statute barred, calculation or recalculation of royalty does not occur on a monthly basis.
For production year 2015 and on, amendments to Section 38 of the Mines and Mineral Act have been made to reduce the time for filing amendments from four years to three years, effective December 2018 (refer to Information Letter 2015-38 published December 10, 2015 http://inform.energy.gov.ab.ca/Documents/Published/IL-2015-38.pdf
Company authorization: Often Production Accounts are consultants for gas royalty companies; written permission on company letter must be received by the Department prior to a consultant receiving company information.
Alberta Oil Royalty Operations Information & How to Contact
Oil Royalty Operations Website: can be accessed at: http://www.energy.alberta.ca/OurBusiness/Oil.asp
Alberta Petroleum Royalty Guidelines and Petroleum Marketing Guidelines can be found at: http://www.energy.alberta.ca/Oil/775.asp
Petroleum Royalty Regulation Par Price Information Letter:
The monthly Par Price Information Letter provides the Crude Oil category, density, and the various prices necessary to determine the royalty volume payable to the Crown, in accordance with the Petroleum Royalty Regulation, 2009 A.R. 222/2008 and 2017 A.R. 212/2016.
http://inform.energy.gov.ab.ca/ILSummaryResults.aspx?Commodity=All&Status=Active&YearFrom=All&YearTo=All&Topic=All&AdvancedSearch=Y&OrgKey=All&OrgName=All
Information Bulletin:
Information Bulletins provide notice of oil royalty operational requirements and activities.
http://www.energy.alberta.ca/Oil/772.asp
Alberta’s Modernized Royalty Framework (MRF): details about MRF, including both crude oil and natural gas/gas products information, can be found at: http://www.energy.alberta.ca/Oil/771.asp
Other Information Sources:
Petrinex is a centralized information network that allows oil and gas facility operators to report, manage and exchange up-to-date volumetric, royalty and commercial information with government and members of industry. Petrinex is accessed through the Internet at: www.petrinex.ca
For questions regarding the PETRINEX system and filing issues, contact the Petrinex Service Desk:
Phone: 403-297-6111 (Calgary)
Phone:1-800-992-1144 (other locations)
Fax: 403-297-3665
Email: petrinexsupport@petrinex.ca
Web site: http://www.petrinex.ca
Inquiries regarding oil royalty business please contact Oil Royalty Operations:
Drilling & Completion Cost Allowance (C*) Team
This team handles the verification of the drilling and completion cost value (C*). They ensure the qualification of wells under the Modernized Royalty Framework (MRF), this includes reviewing the specific factors used in the C*calculation. Responsibilities also include managing the drilling and completion costs submitted in Petrinex.
Energy.MRFInquiries@gov.ab.ca
Delivery & Reconciliation and Royalty Calculation Team
This team is responsible for the calculation of oil royalties and the reconciliation of calculated royalty to the volumes delivered to the Crown during the pipeline splits process.
Programs and Rates Team
This team handles the administration of programs and rates for Crown oil wells, by reviewing eligibility in accordance with regulations and guidelines. These rates and programs include NWRR/HONWRR/EORP for ARF wells and ERP/EHRP for MRF wells.
All other inquires can be sent to: oil.gas.royalty@gov.ab.ca
Other Contacts:
APMC (Alberta Petroleum Marketing Commission)
The APMC is a provincial Crown corporation and an agent of the Government of Alberta. They are responsible for marketing Alberta’s conventional crude oil royalty volumes. All financial processing related to oil royalties are also handled by the APMC. Further details can be found at http://apmc.alberta.ca/index.asp.
AER (Alberta Energy Regulator) is responsible for development of Alberta’s energy resource life cycles such as application and construction to production, abandonment, and reclamation. Contact information for the AER can be found on their website: www.aer.ca
Petroleum Marketing & Valuation
The Royalty-in-Kind team works in conjunction with Oil Royalty Operations and the APMC, marketing the Crown’s conventional oil royalties received.
The Pricing & Analysis team handles the calculation of the monthly Par Price, as well as administration of Transportation Allowances. Questions for these teams can be directed to Administration at 403-297-5514.
Alberta Energy ETS Login
http://www.energy.alberta.ca/AU/Services/Pages/ETS.aspx
Alberta Energy Information Letters
Published monthly: Gas Reference Prices, Oil Par Prices, Oil Sands Royalty Rates
http://inform.energy.gov.ab.ca/ILSummaryResults.aspx?Commodity=All&Status=Active&YearFrom=All&YearTo=All&Topic=All&AdvancedSearch=Y&OrgKey=All&OrgName=All
Alberta Energy Information Bulletins
Notifies industry regarding changes to legislation, regulations or operating procedures, new programs or changes to existing programs. The link below can be used to subscribe to Information Bulletins for Gas, Oil and/or Oil Sands
http://www.energy.alberta.ca/AU/Services/Pages/Subscriptions.aspx