Sunday, November 07, 2010

Alberta Bill 24 and Carbon Capture:- The tip of the problem!

Alberta recently introduced Bill 24 saying Alberta Taxpayer would accept Liability for Carbon Capture.

This is the tip of the problem!

Alberta has earmarked 2 billion dollars to this program implying we, the taxpayer would received  at some point 20 billion dollars in royalty from the old oil harvested with the Carbon Dioxide put down hole.

Even more recently the Government has put in a very low royalty rate for this segment of the industry and it is locked in for 5 years!   Under this same program oil companies do not have to produce oil to receive payment from the Alberta Government!  This will be the subject of still another post.

We are now getting 5% Canadian dollars on this "old" oil. There is no chance of us making any money on this at all!  Quite the contrary; what the article is telling us is that the Alberta Taxpayer is on hooks for every cent of the Carbon Capture scheme and, we receive nothing back!

Further: This Government on one part with much fan fair says they are going to accept liability on CCS.

When reading bill 24, I see where they have written in a provision that the Government cannot be sued for anything on CCS.

They have effectively given industry a free hand on what they do and, left us holding the bag for what goes wrong!
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