Page 19 - July 8, 2019
P. 19
THE WEEKLY ANCHOR
PAGE 4 MONDAY JULY 1, 2019
THE WEEKLY ANCHOR MONDAY JULY 8, 2019 PAGE 19
Province offers short-term relief for shallow gas producers
by Dana McArthur The plan includes cutting industrial property primarily zero."
tax on shallow gas wells and pipelines by 35% Yellowhead County Mayor Gerald Soroka said,
With so much attention focused on the oilsands for the 2019 tax year. Qualifying properties – "With 371 wells, we are among the top County's
pipeline, Dale Nally, Alberta's newly appointed about 65,000 wells and their associated pipelines for shallow gas well producers. This would
and very first Associate Minister of Natural Gas, – will receive more than $23 million in total potentially have a significant impact on County
has been tasked with helping the overlooked support. revenues, but as this seems to be a revenue
natural gas sector deal with fluctuating low Al Kemmere, President of Rural Municipalities neutral plan for the affected municipalities, it
prices, scrapped transmission projects, and the of Alberta (RMA), an independent association should offer some relief for producers."
subsequent lack of market access. comprising Alberta's 69 counties and municipal The extremely low natural gas prices are made
Consequently, the provincial government districts, stated, "The compensation for worst by the lack of storage and transmission
recently announced a plan that offers short-term municipalities comes in the province leaving an options that frequently force producers to sell
relief to help shallow gas producers "cut costs, equivalent amount from the Education Property well below market value. Combined with rising
protect jobs and remain competitive while tax in the hands of those municipalities that give expenses this has exhausted the financial
dealing with economic pressures facing the the forgiveness. It’s a dollar to dollar matching resources of many producers leaving them to
natural gas industry". program and the net cost to municipalities is abandon or transfer their wells.
RMA Response to Shallow Gas Industry Relief
Nisku, AB, July 2, 2019 – The Rural municipalities; it allows companies a temporary municipalities across the province on all taxable
Municipalities of Alberta (RMA) appreciates the reduction in operating expenses, while also properties on behalf of the Government of
Government of Alberta's decision to enable ensuring that municipalities will still receive a Alberta. Although they are collected by
short-term relief to the shallow gas industry portion of property taxes from impacted municipalities in tandem with municipal property
through the forgiveness of a portion of municipal companies in order to adequately provide taxes, they are transferred directly to the Alberta
property taxes on specific wells and pipelines municipal services. School Foundation Fund (ASFF) to support
identified by the Government of Alberta. This “Shallow gas companies are in a tough operational expenses for Alberta's schools. For
will allow municipalities to reduce the overall situation, and it's been essential to work with the this one-time solution, any reductions to the
amount of property taxes to be paid by impacted Government of Alberta and industry required amount of education property taxes that
companies. This action is the result of a crisis representatives to come up with short-term municipalities would normally collect will be
being faced by Alberta's shallow gas industry due solutions to support the industry,” said Al supplemented to the ASFF from general
to a combination of historically low natural gas Kemmere, President of the Rural Municipalities revenues. In this regard, the Government of
prices and high operating costs. of Alberta. “We recognize that municipal and Alberta is utilizing one of the few short-term
The shallow gas industry is critical to Alberta's education property taxes are not the core cause of options available while ensuring education
PASSPORT economy as well as to the sustainability of many the industry's struggle, but are likely the only funding remains whole.
PASSPORT PHOTOS & MORE PHOTOS & MORE rural communities across the province. Shallow area in which short-term relief can be found, so with the oil and gas industry, including shallow
“Rural municipalities have a strong partnership
gas companies support jobs and contribute to
we're pleased with the Government of Alberta's
Professional Digital municipal infrastructure and services through the announcement today, as it helps the shallow gas gas companies. However, reducing or forgiving
Passport System payment of property taxes. The Government of industry without unfairly penalizing rural property taxes is not a realistic short-term option
Professional Digital photos ready Alberta's decision allows municipalities to municipalities. In the long term, property taxes for municipalities. Allowing municipalities to
in minutes...
should not be seen as a tool for relief.”
reduce overall property taxes for these
forgive a portion of property taxes while being
Passport System companies, produces a mutually beneficial short- Education property taxes are collected by supported by the Government of Alberta through
photos ready The Weekly Anchor term solution for impacted companies and rural reduced education tax requirements provides
5040 3rd Avenue, Edson
industry with badly-needed financial relief while
in minutes 780-723-5787 ensuring that rural municipalities can provide the
while you wait... services and infrastructure that residents and
businesses rely on,” said Kemmere.
PASSPORT In the long-term, RMA supports further
The Weekly Anchor PHOTOS & MORE government and industry action to stabilize the
shallow gas industry in Alberta. Potential
Professional Digital
5040 3rd Avenue, Edson Passport System solutions include revisiting how taxes and fees
on shallow gas wells are calculated to ensure
photos ready
they are fair, increasing pipeline capacity and
DROP IN AND SEE! 780-723-5787 in minutes... market access for natural gas, and investigating
possible reduction of natural gas production until
world prices recover.
“At the end of the day, RMA's vision is for
strong, vibrant, and resilient rural communities.
As RMA members cover approximately 85% of
the province, we host most of Alberta's oil and
gas activity, including shallow gas,” Kemmere
said. “A strong oil and gas industry goes hand-in-
The Weekly Anchor hand with sustainable rural communities, so
we're pleased to support the Government of
5040 3rd Avenue, Edson Alberta's short-term solution to support the
780-723-5787 shallow gas industry, and we look forward to
being part of discussions as to how shallow gas
companies can thrive in rural Alberta for many
Kids Make A Difference is sponsored by: years to come.”
BILL MITCHELL
NEW TRUCK SALES
NORTH
Western Star Trucks (North) Ltd.
24210 114 Avenue
Sand & Gravel Sales/Hauling Acheson, AB T7X 6B9
Quality Work Website:
Serving Edson & District Since 1974 www.wsnorth.com
780-723-5152
The Kinsmen Spray Park was bustling with families recently as it was the perfect place to cool down from Toll Free 1-800-252-7500 Cell: 780-984-2224
the weather. photo Deanna Mitchener Phone: 780-453,3452 Fax: 780-447-5317
PAGE 4 MONDAY JULY 1, 2019
THE WEEKLY ANCHOR MONDAY JULY 8, 2019 PAGE 19
Province offers short-term relief for shallow gas producers
by Dana McArthur The plan includes cutting industrial property primarily zero."
tax on shallow gas wells and pipelines by 35% Yellowhead County Mayor Gerald Soroka said,
With so much attention focused on the oilsands for the 2019 tax year. Qualifying properties – "With 371 wells, we are among the top County's
pipeline, Dale Nally, Alberta's newly appointed about 65,000 wells and their associated pipelines for shallow gas well producers. This would
and very first Associate Minister of Natural Gas, – will receive more than $23 million in total potentially have a significant impact on County
has been tasked with helping the overlooked support. revenues, but as this seems to be a revenue
natural gas sector deal with fluctuating low Al Kemmere, President of Rural Municipalities neutral plan for the affected municipalities, it
prices, scrapped transmission projects, and the of Alberta (RMA), an independent association should offer some relief for producers."
subsequent lack of market access. comprising Alberta's 69 counties and municipal The extremely low natural gas prices are made
Consequently, the provincial government districts, stated, "The compensation for worst by the lack of storage and transmission
recently announced a plan that offers short-term municipalities comes in the province leaving an options that frequently force producers to sell
relief to help shallow gas producers "cut costs, equivalent amount from the Education Property well below market value. Combined with rising
protect jobs and remain competitive while tax in the hands of those municipalities that give expenses this has exhausted the financial
dealing with economic pressures facing the the forgiveness. It’s a dollar to dollar matching resources of many producers leaving them to
natural gas industry". program and the net cost to municipalities is abandon or transfer their wells.
RMA Response to Shallow Gas Industry Relief
Nisku, AB, July 2, 2019 – The Rural municipalities; it allows companies a temporary municipalities across the province on all taxable
Municipalities of Alberta (RMA) appreciates the reduction in operating expenses, while also properties on behalf of the Government of
Government of Alberta's decision to enable ensuring that municipalities will still receive a Alberta. Although they are collected by
short-term relief to the shallow gas industry portion of property taxes from impacted municipalities in tandem with municipal property
through the forgiveness of a portion of municipal companies in order to adequately provide taxes, they are transferred directly to the Alberta
property taxes on specific wells and pipelines municipal services. School Foundation Fund (ASFF) to support
identified by the Government of Alberta. This “Shallow gas companies are in a tough operational expenses for Alberta's schools. For
will allow municipalities to reduce the overall situation, and it's been essential to work with the this one-time solution, any reductions to the
amount of property taxes to be paid by impacted Government of Alberta and industry required amount of education property taxes that
companies. This action is the result of a crisis representatives to come up with short-term municipalities would normally collect will be
being faced by Alberta's shallow gas industry due solutions to support the industry,” said Al supplemented to the ASFF from general
to a combination of historically low natural gas Kemmere, President of the Rural Municipalities revenues. In this regard, the Government of
prices and high operating costs. of Alberta. “We recognize that municipal and Alberta is utilizing one of the few short-term
The shallow gas industry is critical to Alberta's education property taxes are not the core cause of options available while ensuring education
PASSPORT economy as well as to the sustainability of many the industry's struggle, but are likely the only funding remains whole.
PASSPORT PHOTOS & MORE PHOTOS & MORE rural communities across the province. Shallow area in which short-term relief can be found, so with the oil and gas industry, including shallow
“Rural municipalities have a strong partnership
gas companies support jobs and contribute to
we're pleased with the Government of Alberta's
Professional Digital municipal infrastructure and services through the announcement today, as it helps the shallow gas gas companies. However, reducing or forgiving
Passport System payment of property taxes. The Government of industry without unfairly penalizing rural property taxes is not a realistic short-term option
Professional Digital photos ready Alberta's decision allows municipalities to municipalities. In the long term, property taxes for municipalities. Allowing municipalities to
in minutes...
should not be seen as a tool for relief.”
reduce overall property taxes for these
forgive a portion of property taxes while being
Passport System companies, produces a mutually beneficial short- Education property taxes are collected by supported by the Government of Alberta through
photos ready The Weekly Anchor term solution for impacted companies and rural reduced education tax requirements provides
5040 3rd Avenue, Edson
industry with badly-needed financial relief while
in minutes 780-723-5787 ensuring that rural municipalities can provide the
while you wait... services and infrastructure that residents and
businesses rely on,” said Kemmere.
PASSPORT In the long-term, RMA supports further
The Weekly Anchor PHOTOS & MORE government and industry action to stabilize the
shallow gas industry in Alberta. Potential
Professional Digital
5040 3rd Avenue, Edson Passport System solutions include revisiting how taxes and fees
on shallow gas wells are calculated to ensure
photos ready
they are fair, increasing pipeline capacity and
DROP IN AND SEE! 780-723-5787 in minutes... market access for natural gas, and investigating
possible reduction of natural gas production until
world prices recover.
“At the end of the day, RMA's vision is for
strong, vibrant, and resilient rural communities.
As RMA members cover approximately 85% of
the province, we host most of Alberta's oil and
gas activity, including shallow gas,” Kemmere
said. “A strong oil and gas industry goes hand-in-
The Weekly Anchor hand with sustainable rural communities, so
we're pleased to support the Government of
5040 3rd Avenue, Edson Alberta's short-term solution to support the
780-723-5787 shallow gas industry, and we look forward to
being part of discussions as to how shallow gas
companies can thrive in rural Alberta for many
Kids Make A Difference is sponsored by: years to come.”
BILL MITCHELL
NEW TRUCK SALES
NORTH
Western Star Trucks (North) Ltd.
24210 114 Avenue
Sand & Gravel Sales/Hauling Acheson, AB T7X 6B9
Quality Work Website:
Serving Edson & District Since 1974 www.wsnorth.com
780-723-5152
The Kinsmen Spray Park was bustling with families recently as it was the perfect place to cool down from Toll Free 1-800-252-7500 Cell: 780-984-2224
the weather. photo Deanna Mitchener Phone: 780-453,3452 Fax: 780-447-5317
