The Government of Alberta has released the final report of the Mature Asset Strategy (MAS). The MAS was launched in summer 2024 with the intent of developing a series of recommendations to support continued operations of and manage liabilities associated with Alberta’s aging oil and gas assets.
RMA was invited to participate directly in some components of the MAS engagement process. Specifically, RMA participated at engagement tables on three of the six MAS themes:
- Municipal taxes, surface leases, and rising operating costs
- Resource conservation and enhanced oil recovery
- Economic opportunities
RMA appreciates the intent of the MAS and supports a policy-based approach to balancing long-term industry viability with accountability for regulatory obligations and end-of-life liability management. However, the MAS process was not structured in a way that allowed for critical, data-supported discussion and recommendation development. It did not include a clear definition of the issue, scope, analysis of impacts of the recommendations on industry and other non-industry stakeholders, or even a clear definition or inventory of a “mature asset.”
Additionally, MAS organizers began the process with misinformed and unsubstantiated view of the impacts of municipal property taxes on mature asset viability, and proposed drastic changes to the assessment and tax model. RMA spent significant time and effort pushing back on these assumptions; time which could have been better spent discussing actual non-tax-based solutions to mutually benefit industry and other stakeholders. While the final report does not include specific recommendations related to changes to the assessment and tax model, it does reference the need for possible future changes such as harmonizing tax rates and linking assessed values to asset productivity, both of which would have huge impacts on municipalities and all taxpayers.
RMA is currently undertaking an in-depth review of the final report and plans to provide a more detailed response document in the coming weeks.
Wyatt Skovron
General Manager of Policy & Advocacy
780.955.4096
wyatt@rmalberta.com