GREY:CLLZF - Post by User
Post by
strzelinon Sep 19, 2007 9:41am
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Post# 13425130
Oilsand stocks open lower 3 to 5%.
Oilsand stocks open lower 3 to 5%.Most of the oilsand stocks open lower 3 to 5%.
New royalties tax may be the main factor.
JUREK
CALGARY, Alberta, Sept 18 (Reuters) - Albertans are being denied a fair share of rewards from oil and gas development in the booming Canadian province and royalties and taxes should be hiked by C$2 billion ($1.98 billion) a year, a panel appointed by the provincial government said on Tuesday.
OIL SANDS CHANGES
Some of the biggest changes would be in oil sands, target of tens of billions worth of investment dollars from most of the world's biggest oil companies.
The panel recommends maintaining a royalty of 1 percent of revenue until multibillion-dollar projects pay out, a regime established more than a decade ago to stimulate activity.
But it said oil sands developments should pay a net royalty of 33 percent after payout, up from the current 25 percent.
In addition, the panel urged the government to establish an "oil sands severance tax" on gross revenues based on benchmark crude prices. It would kick in at 1 percent when oil prices are at $40 a barrel and hit a maximum of 9 percent at $120.