CALGARY, Sept. 18 /CNW/ - The Small Explorers and Producers Association
of Canada (SEPAC) disagrees with the conclusion of the Alberta Royalty Review
Panel report released today that the current royalty regime does not provide a
'fair share' to Albertans.
The Royalty Review Panel has recommended total government take be
increased from all sectors of the petroleum industry: oilsands, conventional
oil and natural gas at a time when a majority of junior oil and gas companies
are reporting financial losses due to weak natural gas prices and thousands of
Albertans have lost jobs in the upstream petroleum industry across Alberta.
SEPAC acknowledges the report recommends the royalty burden on low
productivity oil and gas wells be reduced, which was among SEPAC's own
recommendations to the Panel, but this does not counter balance the
overwhelmingly negative impact adoption of this Report will have on the
industry as a whole.
The Panel has recommended sweeping changes to a royalty system that has
served Alberta well and encouraged investment by a petroleum industry that has
provided Albertans with one of the highest standards of living in the world.
SEPAC urges the Government to proceed with great caution in considering the
The Small Explorers and Producers Association of Canada represents
"Canada's Oil and Gas Entrepreneurs" with 450 member companies, 80% being oil
and gas producers and the rest suppliers of products and services to the
upstream petroleum industry. SEPAC's members operate almost 20% of the
conventional oil and gas wells drilled each year in Western Canada.
For further information:
For further information: on this news release contact: Mr. Gary Leach,
Executive Director for SEPAC, Tel. (403) 269-3454, email: email@example.com