Why are Working Interest Owners (WIO) for oil and non-project oil sands wells, who do not directly pay royalties to the Department of Energy, incorporated into this DRC program?
Currently, only the battery operator for oil or non-project oil sands well is identified as a royalty payer in the records of the Department of Energy. Establishing the appropriate level of benefit (10% to 50% – see below) and assigning credits to only these operators would result in inequities to oil well working interest owners. The program is designed to apply to corporate production and corporate royalties. In order to both apply credits against oil WIO royalty obligations, and to know oil WIO production subject to Alberta Crown royalties (credit deduction rate and maximum credit available see below), the WIO of all wells producing oil in Alberta will be input and maintained by Industry via the Petroleum Registry of Alberta (PRA). This WIO information will be required from January 1, 2008 onward as the sliding scale (see below) uses calendar 2008 as the basis of production. This information will be entered into the PRA by industry once processes, systems and legal authority are in
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