As expected, Alberta’s competitiveness review is making permanent many of the tweaks added to the New Royalty Framework to address unintended consequences, most importantly the five per cent front end rate on conventional oil and natural gas. The max rate for conventional oil will be reduced to 40 per cent from 50 per cent, while the max rate for conventional and unconventional natural gas will be reduced at higher price levels to 36 per cent from 50 per cent. Additional gas measures will be announced by the end of May.

Royalty revenues will be reduced by $27 million in the current fiscal year, Ron Liepert said, but will be offset by a $55 million increase in land sale revenue. In 2011-12, royalty revenue will fall by $16 million due to the changes but will increase by $49 million because of projected increases in activity. Land sale revenue will increase by $76 million, tax revenue will increase by $31 million.

See this link>>>http://bit.ly/buxSOk for more details….