The Alberta Royalty Review Panel used flawed data, incorrect costs, misleading activity assumptions and poor international comparisons to put together its oil and natural gas royalty and tax system proposal, according to a technical review by the Canadian Association of Petroleum Producers (CAPP).

CAPP, which represents 150 companies that together produce more than 95% of the country’s oil and gas, issued a stinging assessment of the royalty review panel’s recommendations. The Alberta royalty review panel’s task force last month recommended the province raise oil and gas royalties on new and existing projects (see Daily GPI, Sept. 20), triggering an uprising among Canada’s producers and oilfield service contractors (see Daily GPI, Oct. 15; Oct. 10).

In a technical review, CAPP stated that it did not believe the panel achieved the province’s objectives in finding a balance between a “reasonable royalty and tax system and a healthy, sustainable oil and gas industry.” CAPP said its “areas of concern” include:

Alberta officials are expected to make a decision about the royalty panel’s recommendations this month. CAPP’s 45-page report may be downloaded at

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