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Thursday, October 27, 2011

Province Plans Royalty System For Shale Gas


Natural Resources Minister Bruce Northrup on the hot seat today taking questions in a shale gas webcast.
One man asked how royalties will be dispersed from the companies doing exploration in the province.

Northrup says in the States landowners own the mineral rights but in Canada and in this province, the government owns them.

He says they want to create a three-tier royalty system with the biggest percentage going to the province to help pay down the debt and to help with healthcare.
 
He says the second tier would see a percentage going to the landowner and the third tier would see money going to the community.