Stop the Hogs!

Alberta energy royalty review to be led by CEO of ATB Financial Dave Mowat

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Dean Bennett, The Canadian Press | June 26, 2015 3:37 PM ET

EDMONTON — Alberta’s NDP government has taken a first step toward fulfilling its promise to determine whether taxpayers are getting a fair portion of profits from development of their oil and gas resources.

Energy Minister Marg McCuaig-Boyd announced Friday that Dave Mowat, the head of Alberta’s Crown-owned bank ATB Financial, will lead a panel review of oil and gas royalties. Preliminary findings are to be filed by the end of the year.

Mowat said the goal is to find a royalty environment where “the province is successful, the companies are successful, and ultimately the communities of Alberta are successful.”

McCuaig-Boyd said the findings will be made public.

“We’ve said (all) along with industry and to Albertans that we’re going to be clear in this process and transparent,” she said.

The terms of reference for the panel have not been decided. That prompted reporters to ask Mowat why he would accept a job without knowing exactly what he can explore.

“We’re finalizing the terms of reference. We’ve talked about the outcomes we’re trying to get,” he replied.

Mowat said he will work on the panel while continuing duties at ATB.

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Braid: On royalties, NDP should slow down and industry should calm down

[ http://calgaryherald.com/news/politics/ ... -calm-down ]

DON BRAID, CALGARY HERALD Published on: July 10, 2015 | Last Updated: July 10, 2015 5:34 PM MDT

After hiking corporate taxes and the carbon levy for heavy emitters, should the NDP raise oil and gas royalties too?

No. Not now. With prices so low, the take would be minimal (the government usually gets less when commodity prices are down) and the psychological impact would be dangerous.

But … should the government study royalties, and raise them if the new royalty panel says it should, after the industry starts to regain its health?

Yes, absolutely.

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Royalties are the rent companies pay to exploit a resource owned by somebody else. That sounds more like capitalism than socialism, although some industry people, and plenty of Americans, seem to think Lenin is behind it.

Last year, the Herald’s Chris Varcoe asked Stelmach what advice he had for the next premier in dealing with oil companies and executives (the interview turned out to be three premiers ago, but that’s another story).

“I would say first and foremost, treat our natural resources as an owner,” Stelmach said.

“Look upon it as an owner — it’s not in any way different as an owner of anything else that you would own personally. So when it comes to natural resources, you are the representative of all Albertans who are owners of the resource.

“And you have to approach those who are developing and processing and producing energy resources in a business-like fashion, clearly understanding the needs of the resource industry — but also keeping in mind you have a fiduciary responsibility to all Albertans …”

This may be the only time I’ve ever given the last word to Ed. But there it is, bang on.

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Don Braid’s column appears regularly in the Herald