Category: Alberta Royalty Review

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Alberta Politics Alberta Royalty Review Ed Stelmach

ed stelmach’s steers his steady plans along another steady path.

After a year-long province-wide debate on royalties, which included a high-profile royalty review panel, Tory Premier Ed Stelmach stayed steady on his promise that Albertans would get their “fair share” from the royalties collected from oil and gas exploitation. With Fort McMurray and the Tar Sands booming, Ed Stelmach led his steady fight against the evil dogs of looney environmentalism and the socialist opposition on the left who claimed the royalties increase was just not enough, and hard-line free market wing-nut ideologues on the right who screamed that the increase was too much. Ed Stelmach stayed steady. The increase was just enough, Albertans deserved their fair share, and Ed Stelmach was going to stay steady to make sure they got it.

Ed Stelmach was steady as he not only steered steadfast with his royalty plan into 2008, but also had the courage to stand up for his new royalty plan by launching it in front of Albertans during a General Election. On March 3, 2008, Albertans got up and cast their ballots for Ed Stelmach, endorsing his new royalty plan. Much rejoicing was seen in the streets. Ed Stelmach has achieved his new majority. A mandate and an approval of his plan.

Now, with an enlarged caucus and Spring Session of the Alberta Legislature beginning next week, Ed Stelmach is staying steady by not changing his steady plan, but steering his steadfast plan on another steady path. Ed Stelmach has the courage to do what’s right and won’t let small things like year-long debates, campaign promises, and election results get in the way of his steady plans.

Billion- dollar royalty break
Five-year holiday bid to attract new energy investment

Renata D’Aliesio
Calgary Herald; Canwest News Service

Friday, April 11, 2008

CALGARY – The Alberta government is giving oil and gas producers a $1-billion break on royalties over the next five years in a bid to attract investment it fears is being chased away.

Energy Minister Mel Knight revealed in Calgary on Thursday that the province has tweaked the new royalty regime to address the “unintended consequences” of its plan announced in October.

The government was assailed over that plan, set to take effect next year. The energy sector charged it made some oil and gas plays uneconomical, while opposition critics contended it shortchanged Albertans on resource riches.

“These (new) programs will help generate hundreds of millions of dollars in royalties and countless new jobs for decades,” Knight said.

“I believe this is good news for most of the industry.”

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Alberta Royalty Review Alberta Tar Sands Peter Valentine

suiting up for spring session #2: the valentine report.

Just in time for the Spring Session of the Alberta Legislature to start, former Auditor General Peter Valentine’s long-time coming report, “Building Confidence: Improving Accountability and Transparency in Alberta’s Royalty System,” on the accountability of Alberta’s oil and gas royalty review collection system has been released and the reaction seems to be a bit scattered…

Disappointing Valentine royalty report makes things murkier than ever (Paul Simons, Edmonton Journal)

New report looks like a whitewash (Graham Thomson, Edmonton Journal)

No “super-ministry” needed to handle royalties (CBC)

Valentine’s massacre more like a pillow fight (Don Braid, Calgary Herald)

I Read Dunn and Valentine and I Still Don’t Know If Albertans Are Getting Their Fair Share of Royalties (Ken Chapman)

Gov’t says it may have gotten it wrong (Edmonton Sun)

A Billion Questions (Jeff Cummings, Metro)

Royalty Regime up in the air (Neil Waugh, Edmonton Sun)

Public Confidence Continues to Erode in Department of Energy (Alberta Liberals)

Valentine Report New Spin on Bad News (Alberta NDP)

Expect this to be a hot topic when Spring Session begins…

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Alberta Royalty Review

alberta resource royalty showdown.

Last Tuesday, I attended CBC Edmonton‘s open forum on the Resource Royalties issue in Alberta. It was an interested affair with probably around 300 people piled into the auditorium at the Royal Alberta Museum.

The forum panel included the articulate Diana Gibson of the Parkland Institute, Al Hyndman from Magnus Limited, Tory House Leader Dave Hancock, and Dave Yager from HSE Integrated.

Notables in attendance included Alberta Liberal MLAs Hugh MacDonald, Harry Chase, and Bruce Miller, former Edmonton-Strathcona Green candidate Cameron Wakefield, U of A School of Business Dean Mike Percy, Federal ND candidate Linda Duncan, and New Democrat Leader Brian Mason. I think I also noticed fellow-blogger Ken Chapman in the audience.

Though the forum was geared towards the resource royalty rates, much of the debate centered around findings of the Auditor General that has shown that the Tories failed to Billions of Dollars under the current royalty regime over the past number of years.

Also, the best quote of the night has to go to Dave Hancock with his understatement of a response to Diana Gibson: “government is not a stiletto.”

CBC has a great web page filled with information and media clips on the resource royalty issue – be sure to check it out. You can listen to the forum online here.

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Alberta Politics Alberta Royalty Review

more on royalties, politics, etc.

– CBC Edmonton will be hosting a forum on royalties tonight at the Royal Alberta Museum:

Alberta Royalties – Are we getting our fair share? You maybe interested in our upcoming event: CBC PUBLIC FORUM ON THE ROYALTY REVIEW It’s Your Future-Have Your Say! How do oil and gas royalties affect Alberta? Our Jobs? Our Economy?

This is your chance to hear from a panel of industry experts on the controversial recommendation to change Alberta’s oil and gas royalties, and have an opportunity to participate in public feedback.

Join CBC for this public forum: Tuesday, October 30th from 7 to 8 p.m.Royal Alberta Museum, 12845-102nd Avenue

Visit our website for CBC’s in-depth coverage and analysis at http://www.cbc.ca/edmonton/features/royalties/

– Recently nominated Red Deer-South Stelmach Tory candidate Cal Dallas is now in competition with Calgary-Varsity Alberta Liberal MLA Harry Chase for the best name on Alberta’s political scene.

– Kevin Taft’s Alberta Liberals have outlined their legislative agenda for the Fall Session of the Alberta Legislature which begins on Monday, November 5.

– In what could be one of the hotest and most watched races of the next provincial election, it is being reported that former NBC news anchor Arthur Kent has announced that he will be running for the Stelmach Tory nomination in Calgary-Currie (then again, it was reported by vast left-wing conspiracy theorist Kerry Diotte – a self-described friend of Kent’s – so I’ll remain somewhat skeptical until I see more credible evidence).

If nominated, Kent will take on popular former QR77 radio host and Alberta Liberal MLA Dave Taylor. Taylor surprised many when he defeated former Tory MLA and high-profile City Councillor Jon Lord in 2004.

– The Alberta Social Credit Party will be holding its leadership selection this weekend. Get out the digestive cookies!

– With the Fall session of the Alberta Legislature beginning on November 5, Ed Stelmach continues to refuse to fire Energy Minister Mel Knight after Auditor General Fred Dunn singled out Knight’s Department of Energy for short-changing Albertans by billions of dollars after failing to collect resource revenues over the past 15 years under the current royalty regime.

Here is what Dunn said of Knight’s Department of Energy:

“The principals of transparency and accountability, I believe, were not followed. I’m not impressed.”

“The department should demonstrate its stewardship
of Alberta’s royalty regime and provide analysis to support that stewardship and
this was not done.”

“The department’s monitoring and technical review findings were communicated to decision-makers. The question is: Did they hear or were they listening? At the end of the day, I don’t know, but they chose not to act.”

– Meanwhile, in fairytale land, Rachel Notley is spending her time attacking the Alberta Liberals in letters section of the Edmonton Journal, letting Stelmach’s Tories off the hook for his compromising on resource royalties.

Considering that any New Democrat gains will only come in Edmonton at the expense of the Alberta Liberals, it’s no surprise that all my Tory friends love the New Democrats. Leave it to a small third-party candidate to completely miss the real target on purpose.

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Alberta Royalty Review Ed Stelmach

"compromise."

I found this in my email inbox this morning.

The quality isn’t that great but, as the artist who sent this wrote, “my photoshop skills suck, but so does Ed Stelmach. Call it an interpretive piece of art.”

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Alberta Royalty Review Ed Stelmach Public Affairs Bureau

how ed stelmach compromised on royalties and might get away with it.

INTERNAL MEMO

Dear Premier Ed Stelmach,

Please find below six-easy steps on how to compromise the interests of Albertans on the royalty review.

1) Appoint a friendly-voice such as Bill Hunter to chair a committee to review and make recommendations on Alberta’s natural resource revenue framework.

2) When Bill Hunter releases the report, do not give details but react to the report as if it will include radical and dangerous changes to Alberta’s economy (focus on dangerous).

Stay quiet on the royalties issue and give the opposition parties and oil companies time to post their opposition or support of the report (this will keep us from compromising the $15,000 annual donations to the Alberta PC Party from the oil industry).

The tone of the report should be critical of Ralph Klein’s Tory government, but the recommendations should be fairly moderate and tame (DO NOT bring up the fact that you were a central member of Klein’s cabinet for a decade).

3) After weeks of silence, muse about responding to the report during your ‘State of the Province’ address. If you change your mind and decide to announce the next day, don’t worry about it, the prime-time address will only cost $145,000. We have lots of money in the PR budget, so we can do both.

Respond to the report by only adopting some portions of the report (you will know which ones to adopt when we get the speech from the Public Affairs Bureau).

This will allow you to appear as a moderate who is balancing the interests of Albertans and the oil industry. Though you will deny it, you will clearly be compromising the interests of Albertans to the oil companies by not collecting a reasonable share of royalties (remember of those $15,000 annual political donations, Premier!)

Important! stay stern, Premier. DO NOT be as obvious as to tell the media to “please don’t call this a compromise“.

4) Use the Public Affairs Bureau to buy hundreds of thousands of dollars worth of advertising in all the major Alberta newspapers (including a full-page ad in the front-section of the Globe & Mail). The ads should reinforce the idea that you did not compromise (see 3 for explanation). Ads should include blue and orange colours.

5) The fallout from your announcement should overshadow smaller and more damaging issues such as Auditor General’s report slamming Ralph Klein’s government and the Department of Energy for failing to collect billions of dollars in royalty revenues since the 1990’s (AGAIN, DO NOT bring up the fact that you were a central member of Klein’s cabinet for a decade – this is critically important!).

Also, stick to your guns and don’t fire the Minister responsible for the Department of Energy, Minister Mel Knight. He supported and delivered votes for you in the PC leadership race. You owe him. Think about sending him out of the province for a couple of weeks after the review to let things cool down.

6) Stand proud, sit back, and enjoy your heroic glory, Premier Stelmach.

Albertans won’t have a clue what happened.

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alberta auditor general report 2007 Alberta Royalty Review Ed Stelmach Mel Knight

ed stelmach compromises albertans on the royalty review.

I have three main thoughts on Ed Stelmach‘s royalty position and the past couple of days:

1) “Please don’t say it’s a compromise,” were Ed Stelmach’s words after announcing the Tory position on royalties. The quarter-page ad in today’s Edmonton Journal didn’t convince me.

Sorry, Premier. You compromised.

Rather than taking a truly historical position, Ed Stelmach’s Tories have clearly compromised with the oil sector at the expense of Albertans. By taking a slow (a perhaps “dithering“) approach by only adopting certain portions of the already moderate and tame “Our Fair Share” report Stelmach has compromised the interests of Albertans in favour of oil companies that are posting record profits.

Ed Stelmach’s compromise with the oil companies includes increasing royalty rates by only $1.4 Billion across the sector starting in January 1, 2009 and not reaching this amount until 2010. This gives oil companies over a year to reap the rewards of current royalty system, which was created when oil was $11 a barrel. This compromise includes only moderate increases in royalties for companies such as EnCana, who have posted the largest annual profits in Canadian history. I have no problem with these companies making a profit, but these natural resources do not belong to the oil companies, they belong to Albertans.

Stelmach’s $1.4 billion will be $500,000,000 less than the amount recommended by the “Our Fair Share” report – which again was seen as a moderate and tame report to begin with (the $1.4 billion was also supported by Alberta Liberal Leader Kevin Taft) . Other reports, such as this report released by the Parkland Institute, recommended a more aggressive approach to royalty revenues.

A Premier should stand up for the interests of the citizens of his/her province. Stelmach didn’t do that. Instead, he compromised with the oil companies and made it clear that he is willing to hand over the potential of Albertans natural resources to the oil companies, rather than allow Albertans to directly benefit from the resources that they own in the first place.

2) Where’s the accountability? Mel Knight remains Minister of Energy even after Auditor General Fred Dunn singled out Knight and the Department of Energy for failing to collect billions of dollars in resource revenues over the past 15 years.

Here is what Dunn said of Knight’s Department of Energy:

“The principals of transparency and accountability, I believe, were not followed. I’m not impressed.”

“The department should demonstrate its stewardship of Alberta’s royalty regime and provide analysis to support that stewardship and this was not done.”

“The department’s monitoring and technical review findings were communicated to decision-makers. The question is: Did they hear or were they listening? At the end of the day, I don’t know, but they chose not to act.”

Former Auditor General Peter Valentine has been appointed to investigate, but don’t expect any heads to roll in this scandal.

3) There is very little talk about why Stelmach decided it was a good idea to spend $145,000 of public dollars to hold a prime-time infomercial on Wednesday night which only offered vague platitudes and sweeping visuals of Alberta’s foothills. Maybe the Public Affairs Bureau is bored?

There is much debate over this issue, here are some opinions and responses floating around the blogosphere:

– The 5 R’s – Calgary Grit
– A Half Billion Short – Le Revue Gauche
– Royalty Check – Andrew Coyne
– Stelmach’s Choice – The EcoLibertarian
– Premier Stelmach Brought Progressive Conservative Politics Back to Alberta Tonight – Ken Chapman
– Alright, everybody exhale now – albertatory
– National “Eddie” Program – The Black Kettle

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Alberta Royalty Review Ed Stelmach Kevin Taft

kevin taft on stelmach’s royalty compromise.

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Alberta Royalty Review Ed Stelmach

alberta’s royalty review: who’s side is ed stelmach on?

I spent a good chunk of my evening at a reception hosted by Spieker Point, an Edmonton-based political consulting firm, where I had a chance to take a look at some of their new online political software (and enjoy the really good cheese and political discussion). Thanks to Allie for the invite.

Because I haven’t had a chance to take a close look at the details of Ed Stelmach‘s resource royalty announcement from this afternoon, I will take a look at recommendations and provide some more detailed comments tomorrow.

But considering the media is reporting that Stelmach’s Tories are only adopting certain portions of the fairly moderate and tame “Our Fair Share” report, I’m not sure it’s going to be as ‘historic‘ as the Public Affairs Bureau would like Albertans to believe.

A friend offered the following commentary by email tonight:

The reaction in this Post opinion piece is pretty funny:
http://www.canada.com/nationalpost/story.html?id=95dc1f42-34bb-4f91-ad6c-dc152d884f51

The premier, a farmer from Northern Alberta, showed little appreciation for the implications of his actions, suggesting the sector will continue to thrive.

Emphasis added. Not a farmer! Silly old Northern Albertan farmer. Clearly incapable of appreciating the high finance world of Toronto investment bankers and Calgary oil execs. 🙂

This story paints a less doom’n’gloom portrait:
http://www.canada.com/nationalpost/story.html?id=af56606f-3eee-4fb0-bf7c-3cde573e125b

Mr. Stelmach’s announcement came on the same day that the price of oil surged to an all-time high, and three of Canada’s biggest oil and gas companies reported stellar third quarter profits buoyed by high energy prices.

While the Public Affairs Bureau might not have written a very inspiring speech last night, their timing here was brilliant. And, perhaps, a bit lucky.

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alberta auditor general report 2007 Alberta Royalty Review Ed Stelmach Kevin Taft

ed stelmach tv.

So, how about last night’s 18 minute, $145,000 prime-time infomercial?

As it was already widly known that Ed Stelmach will be responding to the royalty review this afternoon, I’m still confused as to why Stelmach’s Tories felt it necessary to use taxpayers dollars on an infomercial that was purposely vague?

As expected, Stelmach’s much-awaited televised address Wednesday evening offered only vague hints on how he will ensure Albertans get the fair share the panel said they have been long denied.

I’m not sure what channel my friend Ken Chapman was watching (though as always, he has interesting observations), but at one point during Stelmach’s less than inspiring performance, I thought that he was trying to sell me a condo at Del Boca Vista Phase III.

During the address, Stelmach took some vague swipes at his former boss, Ralph Klein, and his closed-door style of leadership (this probably would have been an effective strategy had Stelmach not been a member of Klein’s inner-circle for nine-years and leads a government made up of the same Ministers and MLA’s).

So, all eyes turn to this afternoon when Albertans will find out whether ‘Accountability and Transparency” in the face of a challenge from Alberta Liberal Leader Kevin Taft, the ‘Our Fair Share’ royalty review, and a damning report from Auditor General Fred Dunn will actually faze Ed Stelmach’s Tories.

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Alberta Liberals Alberta Royalty Review Kevin Taft

kevin taft on the royalty review.

Alberta Liberal Leader Kevin Taft explains the bottom line on oil and gas royalties: they must rise at least 20%.

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Accountability Alberta Royalty Review getitrightalberta.ca Transparency

reveal yourselves, getitrightalberta.ca.

The getitrightalberta.ca scandal has received no shortage of attention in the blogosphere – you can find some good posts on this astroturf here, here, here, here, here, here, and here.

The astroturfing has also spread to the emerging facebook world.

Luckily, online civil society is alive and well as another group is set up calling on the Government to ‘Do what’s right for Alberta.’

But, the question still remains: who is behind Hill & Knowlton’s getitrightalberta.ca?

The debate over Alberta’s natural resource royalties is too important to include anonymous stakeholders. Reveal yourselves!

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2007 Edmonton Municipal Election Alberta Royalty Review polls

edmonton mayoral election poll.

Here are the results from the recent daveberta election poll. Not surprisingly, Stephen Mandel crushed.

Dustin Becker – 1 (1%)
Dave Dowling – 4 (5%)
Khaled Kheireddine – 0 (0%)
Don Koziak – 18 (22%)
George Lam – 1 (1%)
Peter T. Lefaivre – 1 (1%)
Robert Ligertwood – 1 (1%)
Stephen Mandel – 46 (57%)
Bill Whatcott – 8 (10%)

Votes so far: 80
Poll closed

A new poll is now up asking readers their thoughts on the ‘Our Fair Share’ royalty review report and Alberta’s natural resource royalty rates…

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alberta auditor general report 2007 Alberta Royalty Review Ed Stelmach Greg Melchin Kevin Taft Mel Knight

what does it take to get fired around here?

Ed Stelmach is refusing to take action against current-Energy Minister Mel Knight and former-Energy Minister Greg Melchin after the Department of Energy was singled out by Auditor General Fred Dunn for failing to collect BILLIONS of dollars in resource revenues owed to Albertans over the past 15 years.

After noting that he recieved the ‘run-around’ from officials within the Ministry of Energy, Dunn slammed the Stelmach Tories management of Alberta’s resource royalties:

The principals of transparency and accountability, I believe, were not followed. I’m not impressed.”

“The department should demonstrate its stewardship of Alberta’s royalty regime and provide analysis to support that stewardship and this was not done.”

“The department’s monitoring and technical review findings were communicated to decision-makers. The question is: Did they hear or were they listening? At the end of the day, I don’t know, but they chose not to act.”

Alberta Liberal Leader Kevin Taft is calling for Stelmach to fire Mel Knight and Greg Melchin.

“The public record clearly shows Albertans have been lied to,” Taft said. “The auditor general tells the truth about the government’s record of handling Albertans’ resources; government ministers, on the other hand, have been misleading the legislature and the public.”

Stelmach responded by saying that he’s “not interested in a witch hunt.“

It’s clear that Stelmach is protecting his long-time Tory friends. Mel Knight supported Ed Stelmach’s campaign during the 2006 Alberta PC Leadership Selection and Stelmach, Knight, and Greg Melchin were all full-members of Ralph Klein’s cabinet at the same time that the Tories failed to collect the BILLIONS of dollars in resource royalties owed to Albertans.

With the damning results of the Auditor General’s report coupled with Knight’s defence of the AEUB‘s using public funds to hire private investagators to spy on ordinary Albertans, one really has to wonder, what does it take to get fired in Ed Stelmach’s Tory Government?

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Accountability Alberta Royalty Review Ed Stelmach getitrightalberta.ca Transparency

who’s behind ‘getitrightalberta.ca?’

Over the past week, a new website has popped up – getitrightalberta.ca – calling for Alberta’s Tory Government to keep the resource royalty structure the way it is – even after the damning Alberta Royalty Review Report and Auditor General’s Report slammed Ed Stelmach‘s Tory Government for failing to collect BILLIONS of dollars in resource revenues owed to Albertans over the past 15 years.

The big question is, who is behind this website?

A bit of investigating will reveal that the website has been set up by the consulting firm Hill & Knowlton and a quick check at CIRA will reveal that the website registration is listed as:

Registrant Name Hill & Knowlton
Registrar Webnames.ca (UBC Research Enterprises Inc.)
Renewal Date 2008/09/25
Date approved 2007/09/25
Last changed 2007/09/28
Description
Registrar Number 70
Registrant Number 2010422
Domain Number 2010422
DNS1 ns1.maximumasp.com 216.128.31.5
DNS2 ns2.maximumasp.com 216.128.31.6

Administrative Contact
Name Lisa Litz
Job Title
Postal Address Suite 540, 202 – 6th Avenue SW Calgary AB T2P2R9 Canada
Phone 1-403-5146236
Fax
Email lisa.litz@hillandknowlton.ca

Technical Contact
Name Lisa Litz
Job Title
Postal Address Suite 540, 202 – 6th Avenue SW Calgary AB T2P2R9 Canada
Phone 1-403-5146236
Fax
Email lisa.litz@hillandknowlton.ca

Now, far be it from me to assume that a slick large national consulting firm like Hill & Knowlton wouldn’t set up a website like this out of the kindness of their hearts, but I’m going to do just that – assume that Hill & Knowlton isn’t doing this out of the kindness of their hearts.

So, the question remains: who is behind ‘getitrightalberta.ca?’

Interestingly, Hill & Knowlton’s Calgary office is led by none-other than Mr. Ken Boessenkool, a member of the infamous firewall six and former adviser to Stockwell Day and Stephen Harper.

So, the still question remains, who is really behind ‘getitrightalberta.ca?’

The debate about Alberta’s resource royalties is too important to Alberta’s future to include ‘hidden stakeholders.’

Who is paying Hill & Knowlton to run this site?

Albertans should email Mr. Ken Boessenkool and ask him straight out.

Albertans are owed an explanation.

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