Published : Sep-2017
No. of Pages : 71
1 Table of Contents 1
1.1. List of Tables 3
1.2. List of Figures 5
2. Regime Overview 6
3. State Take Assessment 8
4. Key Fiscal Terms 10
4.1. Rental Fees 10
4.2. Royalties 11
4.2.1. Frontier Lands (Federal) 11
4.2.2. Alberta (Non-Oil Sands) 12
4.2.3. Alberta Oil Sands 21
4.2.4. British Columbia 22
4.2.5. Manitoba 32
4.2.6. New Brunswick 34
4.2.7. Newfoundland and Labrador 35
4.2.8. Nova Scotia 38
4.2.9. Ontario 41
4.2.10. Saskatchewan 41
4.2.11. Prince Edward Island 46
4.2.12. Quebec 46
4.2.13. Yukon 47
4.3. Freehold Production Taxes 48
4.3.1. Alberta 48
4.3.2. British Columbia 49
4.3.3. Manitoba 50
4.3.4. Saskatchewan 51
4.4. Direct Taxation 51
4.4.1. Corporate Income Tax 51
4.4.2. Deductions and Depreciation 52
4.5. Indirect Taxation 53
4.5.1. Value Added Tax 53
4.5.2. Alberta Carbon Levy 54
4.5.3. British Columbia Carbon Tax 54
4.5.4. Quebec Carbon Tax 55
5. Regulation and Licensing 56
5.1. Legal Framework 56
5.1.1. Governing Law 56
5.1.2. Contract Type 57
5.1.3. Title to Hydrocarbons 57
5.2. Institutional Framework 58
5.2.1. Licensing Authority and Regulatory Agency 58
5.2.2. National Oil Company 59
5.3. Licensing Terms and Process 60
5.3.1. Federal (Frontier lands) 60
5.3.2. Alberta 60
5.3.3. British Columbia 61
5.3.4. Manitoba 61
5.3.5. New Brunswick 62
5.3.6. Newfoundland and Labrador 62
5.3.7. Northwest Territories 63
5.3.8. Nova Scotia 63
5.3.9. Nunavut 64
5.3.10. Ontario 64
5.3.11. Prince Edward Island 65
5.3.12. Quebec 65
5.3.13. Saskatchewan 66
5.3.14. Yukon 67
6. Outlook 68
7. Appendix 70
7.1. Contact Us 70
7.2. Disclaimer 70
1.1 List of Tables
Table 1: Regime Overview 6
Table 2: Canada, Rental Fees 10
Table 3: Canada, Frontier Lands (Federal), Pre Project Payout, Royalty Rate (%) 11
Table 4: Canada, Alberta, Crude Oil and Condensate, rp% Formulae 13
Table 5: Canada, Alberta, Natural Gas, rp% Formulae 14
Table 6: Canada, Alberta, Propane, rp% Formulae 14
Table 7: Canada, Alberta, Butane, rp% Formulae 14
Table 8: Canada, Alberta, rq% Formulae 15
Table 9: Canada, Alberta, Oil Type Definitions 15
Table 10: Canada, Alberta, Emerging Resources Royalty, Project Benefit Period and C* Multiplier 16
Table 11: Canada, Alberta, ARF, Conventional Oil, Price Component (rp) (%) 18
Table 12: Canada, Alberta, ARF, Conventional Oil, Quantity Component (rq) (%) 19
Table 13: Canada, Alberta, ARF, Natural Gas, Price Component (rp) (%) 19
Table 14: Canada, Alberta, ARF, Natural Gas, Quantity Component (rq) (%) 19
Table 15: Canada, Alberta, ARF, New Well Royalty Special Categories 20
Table 16: Canada, Alberta, ARF, Natural Gas Deep Drilling Program Benefit Rates, Exploration Wells 21
Table 17: Canada, Alberta, ARF, Natural Gas Deep Drilling Program Benefit Rates, Development Wells 21
Table 18: Canada, British Columbia, Natural Gas Royalty Rate 23
Table 19: Canada, British Columbia, Natural Gas Royalty Rate, Royalty Reduction Factor 24
Table 20: Canada, British Columbia, Natural Gas Royalty Rate, Tier 1 Credit 25
Table 21: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, West Special Sour, Before August 31, 2009 25
Table 22: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, East Special Sour, Before August 31, 2009 26
Table 23: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, West Sweet, Before August 31, 2009 26
Table 24: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, East Sweet, Before August 31, 2009 27
Table 25: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, West Special Sour, After August 31, 2009 27
Table 26: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, East Special Sour, After August 31, 2009 28
Table 27: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, West Sweet, After August 31, 2009 28
Table 28: Canada, British Columbia, Natural Gas Royalty Rate, Tier 2 Credit, East Sweet, After August 31, 2009 29
Table 29: Canada, British Columbia, Natural Gas Royalty Rate, Deep Re-Entry Credit, East 29
Table 30: Canada, British Columbia, Natural Gas Royalty, Deep Re-Entry Credit, West 30
Table 31: Canada, British Columbia, Oil Royalty Rate, Old Oil 31
Table 32: Canada, British Columbia, Oil Royalty Rate, New Oil 31
Table 33: Canada, British Columbia, Oil Royalty Rate, Third Tier Oil, After January 1, 2000 31
Table 34: Canada, British Columbia, Oil Royalty Rate, Third Tier Oil, Before January 1, 2000 31
Table 35: Canada, British Columbia, Oil Royalty Rate, Heavy Oil 32
Table 36: Canada, Manitoba, Oil Royalty Volume (m3) 33
Table 37: Canada, New Brunswick, Oil Royalty Rates (%) 34
Table 38: Canada, Newfoundland and Labrador, Generic Offshore Oil, Basic Royalty Rates (%) 35
Table 39: Canada, Newfoundland and Labrador, Generic Offshore Oil, Net Royalty Rates (%) 36
Table 40: Canada, Newfoundland and Labrador, Generic Offshore Oil, Basic Royalty Rates (%), 1990 - 2001 36
Table 41: Canada, Newfoundland and Labrador, Generic Offshore Oil, Net Royalty Rates (%),1990 - 2001 37
Table 42: Canada, Newfoundland and Labrador, Hibernia Field, Basic Royalty Rates (%), 2015 37
Table 43: Canada, Nova Scotia, Base Offshore Royalty Rates (%) 39
Table 44: Canada, Nova Scotia, Small Oil Offshore Royalty Rates (%) 39
Table 45: Canada, Nova Scotia, High Risk Offshore Royalty Rates (%) 40
Table 46: Canada, Nova Scotia, Sable Offshore Royalty Rates (%) 40
Table 47: Canada, Nova Scotia, Deep Panuke Royalty Rates (%) 41
Table 48: Canada, Saskatchewan, Conventional Oil Royalty Rate (%) 42
Table 49: Canada, Saskatchewan, Conventional Oil Royalty, Calculation of K 43
Table 50: Canada, Saskatchewan, Natural Gas Royalty Rates (%) 44
Table 51: Canada, Prince Edward Island, Oil Royalty Rates 46
Table 52: Canada, Quebec, Oil Royalty Rates 47
Table 53: Canada, Quebec, Natural Gas Royalty Rates 47
Table 54: Canada, Alberta, Freehold Production Tax, Light Crude, Heavy Crude, Crude Bitumen, Adjustment Formula 48
Table 55: Canada, Alberta, Freehold Production Tax, Natural Gas, rQ% 49
Table 56: Canada, British Columbia, Freehold Production Tax, Oil 49
Table 57: Canada, British Columbia, Freehold Production Tax, Conservation Gas 49
Table 58: Canada, British Columbia, Freehold Production Tax, Non-Conservation Gas 50
Table 59: Canada, Manitoba, Freehold Production Tax, Crude Oil (%) 50
Table 60: Canada, Saskatchewan, Freehold Production Tax, Production Tax Factor 51
Table 61: Canada, Provincial / Territorial Income Tax Rates (%), 2017 52
Table 62: Canada, Income Tax, Capital Cost Allowance, Depreciation Rates (%) 53
Table 63: Canada, GST/HST Rates (%) 54
Table 64: Canada, Provincial / Territorial Governing Laws 57
Table 65: Canada, Provincial / Territorial Regulatory Bodies 59
Table 66: Canada, Quebec, Work Obligation 65
Table 67: Canada, Saskatchewan, Work Obligation (CAD per Hectare) 66
1.2 List of Figures
Figure 1: Regime Flow Chart 7
Figure 2: Canada, Indicative NPV10/boe, IRR and State Take Comparison, Internal 8
Figure 3: Canada, Indicative NPV10/boe, IRR and State Take Comparison, Regional 9
Figure 4: Canada, Legal Framework 56
Figure 5: Canada, Institutional Framework 58
