Earlier today the provincial government announced the composition of the panel members who will undertake a review of the Alberta Royalty Regime. In addition to Dave Mowat, president and CEO of ATB Financial, who was appointed Chair in June, the panel will consist of:
- Peter Terzakian, Energy Economist with ARC Financial Corp;
- Annette Trimbee, former Deputy Minister of Treasury Board and Finance; and
- Leona Hanson, Mayor of Beaverlodge, Alberta.
In addition to naming the panel members, Minister McCuaig-Boyd also expanded on the Panel's timing and mandate. The Minister confirmed the existing royalty regime will remain in place until December 2016 and any changes will not take effect until 2017. The Minister also confirmed her government expects the Panel's report by the end of 2015.
Panel Chair Dave Mowat elaborated on the Panel's approach which will involve both public and expert consultation. The Panel will consult with Albertans in person and through the Alberta Royalty Review website. Public consultation will start immediately and last until November. Concurrently, the Panel will seek expert input and will work closely with the Climate Change Panel, announced earlier this summer, to coordinate common data.
This is not the first time the government has sought to review the provincial Royalty Regime. In 2007 Premier Ed Stelmach carried out a similar review which resulted in increases that were ultimately rescinded in 2009.
For the time being the industry should seek to be actively engaged in the public consultation process to ensure its views are accurately represented to the panel. McLennan Ross will continue to monitor and report on developments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.