Conventional Oil Royalties
APMC is responsible for the collection in kind, marketing and valuation of the Crown’s conventional crude oil royalties, as well as setting and publishing the Industry Reporting Calendar.
Alberta collects its share of conventional crude oil production in kind. Under this process, producers deliver the Crown royalty share of crude oil to the account of the APMC at 170 pipelines and terminals from 5000 delivery points.
A private sector marketing agent, Shell Trading Canada, was selected through by a Request for Proposal (RFP) process. The agent and the APMC schedule the movement and contract for the sale of the delivered crude oil. The net revenue generated from monthly crude oil sales is transferred to the general revenue account of the government. Net revenue includes total sales less purchases (of blending oil to enable transportation of heavier crudes), less transportation and other pipeline costs. Field prices, used for transacting over and under delivered volumes, are determined for every Crown battery in the province.
Marketing Crown Royalty Barrels
APMC continues to be responsible for selling the nearly 70,000 barrels per day (2014 volumes) of conventional oil that the province receives as its royalty share (about 17 percent of Alberta’s conventional oil production).
Effective June 1, 2015;
- Shell Trading Canada manages and markets approximately 90% of the volume, and
- APMC continues to market approximately 10% of the volume directly
Pipeline Allocation Lists
- Letter to All Pipeline Terminal and Cleaning Plant Operators
- Letter to All Battery Operators
- Crown's Agent Pipeline Allocation List 2015
APMC Report Submissions Guidelines:
Bitumen, Natural Gas and Natural Gas Liquids
Bitumen, and natural gas and natural gas liquids royalties are paid in cash.
Alberta has determined this system will continue, and APMC will acquire volumes it needs for its strategic activities (such as the approximately 55,000 bpd of diluted bitumen to be processed by the Sturgeon Refinery starting in late 2017) by contracting directly with suppliers at market prices and paying for these volumes with cash.