Scotiabank adds name to chorus critical of UCP giving royalty credits for well cleanup

Feb 10, 2023 | 10:11 AM

Alberta’s United Conservative Party government is facing growing criticism over its plan to give oil companies a royalty credit for cleaning up their old wells.

A royalty is the price Alberta charges a company to develop a resource.

The province is planning a pilot project that would give $100 million in royalty breaks to companies that fulfil their legal obligations to restore old oil and gas wells.

Analysts with Scotiabank say the plan has the potential to generate negative public sentiment toward the oil and gas sector, and goes against the core capitalist principle that private companies should take full responsibility for their liabilities.

Scotiabank adds name to chorus critical of UCP giving royalty credits for well cleanup

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