Alberta's royalty review committee named

Aretired head of Alberta Pacific Forest Productswill be thechair of Alberta's new independent oil and gas royalty review panel, the province announced Friday.

Bill Hunter, who retired from the company three years ago as chief operating officer, is now the owner of a development consulting service.

The committee will examine whether the royalties that energy companies must pay to the province are appropriate or should be adjusted, starting with an examination of the royalty regime for oilsands developments, Finance Minister Lyle Oberg said.

"I'm open to everything. AndI am open to what these people — who are experts in their fields—what they are going to suggest and what they are going to look at. The only thing I ask of them is that they take a complete look."

Projects in the oilsands pay a one per cent royalty on gross revenue until their initial investment is paid back, then that number jumps to 25 per cent of profit.

Oberg says the review is different from past examinations of the province's royalty regime because it will be public. Hearings will likely be held in Calgary, Edmonton, Grand Prairie and Fort McMurray.

Oberg is to get a final report from the committee by Aug. 31.

Also on the panel are:

• Evan Chrapko, the CEO of the Crystal Cougar Group of Companies, who has a law degree and is a chartered accountant.
• Judith Dwarkin,chief economist for the Ross Smith Energy Group, a Calgary-based independent energy research firm.
• Kenneth J. McKenzie, a professor in the economics department at the University of Calgary.
• André Plourde, a professor and chair of the economics department at the University of Alberta.
• Sam Spanglet, who retired from Shell Canada last year after serving as vice-president of oilsands operations and president ofAlbian Sands Energy Inc.

Premier Ed Stelmach promised to review the royalties during his campaign to replace Ralph Klein as leader of the Alberta Conservative party.

The government received more than $14 billion in oil and gas royalties in the last fiscal year.