What is Bitumen Royalty-in-Kind (BRIK)?
In Alberta, royalties are a share of production from resources that are owned by the Crown in right of the Province of Alberta. In other words, the government owns the resources on behalf of Albertans. Under the Mines and Minerals Act, the government has the option to take its royalty share either in cash or in-kind. Currently the Government takes in-kind its share of conventional crude oil production, and collects in cash its royalty share for other resources. The decision to exercise the in-kind option for bitumen was identified in October 2007 as a way for the Crown to use its share of bitumen strategically to supply potential upgraders and refineries in Alberta, and to optimize its royalty share by marketing those volumes.
