Auditor general says Alberta oilsands giants challenging billions in royalties

Alberta’s auditor general says Syncrude and Suncor are challenging their royalty deals with the province and billions of dollars are at stake.

EDMONTON — Alberta’s auditor general says Syncrude and Suncor are challenging their royalty deals with the province and billions of dollars are at stake.

The two oldest players in the oilsands have special royalty agreements that are based on the value of the tar-like bitumen they process.

All other oilsands producers fall under the new tax structure that took effect in January, but Syncrude and Suncor were allowed to renegotiate their longtime royalty agreements.

Now they are challenging the valuation of bitumen and the auditor general says $100 million in royalties are at stake for 2009 alone.

Fred Dunn says if the companies win their appeal, it would reduce the royalties they pay until 2016.

Dunn says there are billions of dollars in royalties at stake and there could be a costly legal battle that could drag on for years.

Just Posted

Open house on proposed addictions treatment centre to be held at former Red Deer nightclub

Community is invited to learn more about the $2-million project on May 2

Red Deer looks to be creative to attract business downtown

Co-op to close downtown store after 56 years

Central Alberta artist wins $25,000 for his hectare-sized caricature

Dean Foster says he’s thrilled to win the radio station contest

Family: A potpourri of Easter egg hunts, music and politics

The election is a thing of the past. Albertans have spoken. They… Continue reading

Sri Lankan-Canadians mourn victims of terrorist attack in their homeland

Sri Lankan-Canadians were gathering Monday to mourn those killed in a massive… Continue reading

Residents along Saint John River told to remain on alert as floodwaters rise

FREDERICTON — People who live along New Brunswick’s Saint John River are… Continue reading

Prince Edward Island voters to cast verdict on new electoral system

CHARLOTTETOWN — Canadians are expected to learn late Tuesday whether the cradle… Continue reading

Early, photogenic iceberg raises expectations for Newfoundland’s season

ST. JOHN’S, N.L. — This historic port city welcomed an unexpected early… Continue reading

Captain Ghislaine Landry leads Canada to victory at Kitakyushu Sevens

KITAKYUSHU, Japan — Captain Ghislaine Landry scored with no time remaining and… Continue reading

Marchand scores twice as Bruins force a seventh game with 4-2 win over Leafs

TORONTO — After a flying start in front of a raucous home… Continue reading

Harry and Meghan’s royal baby: Questions asked and answered

LONDON — The time is drawing near for the impending birth of… Continue reading

Most Read