NISKU, ALBERTA, APRIL 4, 2025 – The Rural Municipalities of Alberta (RMA) is disappointed by the Government of Alberta’s Mature Asset Strategy (MAS), released yesterday. The report lacks justification and clarity, offering recommendations that prioritize reduced industry liability and regulatory requirements without addressing the critical issue of accountability for payment of taxes or surface leases, or liability obligations.
“RMA supports the concept of a strategy to keep the oil and gas industry strong and sustainable, as long as it also addresses potential risks and impacts on other stakeholders. Unfortunately, what RMA has witnessed throughout the Mature Asset Strategy process and in the final report is a narrow focus on keeping companies and wells profitable at any cost to other stakeholders, with no corresponding industry accountability, or consideration of impacts on everyone else.” – Kara Westerlund, RMA President
Throughout the MAS process, RMA pushed back against unfounded assumptions related to municipal property taxes, including that they are a primary barrier to mature asset viability. The final report does not include recommendations to make changes to the property tax system, which suggests that some of our concerns were heard and our efforts to refocus the discussion on the realities of municipal finances was effective. Despite this, the report reinforces the unproven claim that taxes are an outsized burden on industry, with no evidence supporting this throughout the process. The only property tax-related recommendation, creating a reporting system for unpaid taxes, duplicates a system that is already in place.
“Property taxes were a huge point of contention throughout the MAS process. From the first meeting, we heard that taxes needed to be lowered and that municipalities should be able to handle it. Rather than proposing possible constructive solutions to support industry, we spent significant time and resources correcting assumptions about how property taxes work and what they are used for,” explained Westerlund. “In a process dealing with assets obviously impacted by low commodity prices, production declines, and massive regulatory gaps related to asset transfers, the obsession with property taxes made little sense. It seems like organizers saw taxes as an easy way to cut costs on mature assets, and it took tremendous time and effort to constantly counter this assumption.”
One of RMA’s biggest concerns was the lack of clear definition of a “mature asset” or a definitive list of assets and which segment of the industry would be impacted by the strategy. Despite repeated requests, organizers failed to provide clarity throughout the process. The final report now equates mature assets to marginal wells, but this was not clarified during engagement.
“To us, it seems like the MAS was just an excuse to reduce regulatory burdens and liability away from the industry and on to the public under the guise of helping an undefined group of mature assets. Even with a loose definition in the final report, there is no explanation of if and to what extent any of the recommendations will actually support further production, or the associated public risks. The lack of scope is shocking in a report with recommendations that would have such an impact on industry accountability and the public interest.”
Another RMA concern is that the MAS process also lacked diverse perspectives. While surface rights advocates had limited involvement, there was little to no presence from sectors outside of industry, including the environmental sector, gas co-ops, the agriculture sector, or organizations representing the broader public interest. This has led to a report filled with recommendations supported by industry but untested in terms of broader public risks or impacts. RMA supports a strategy that strengthens the oil and gas industry, while ensuring a fair balance for all Albertans. However, the MAS process, as it stands, falls short of providing the foundation for meaningful, inclusive, and sustainable solutions.
“In many ways, the MAS process was an industry echo chamber, with few voices challenging assumptions and critically evaluating ideas and proposals. While RMA is fortunate to have a seat at the table and tried to play this role, we weren’t at every table, and our expertise lies primarily on municipal issues. This report reflects that imbalance.” pointed out Westerlund. “A well-developed strategy, built with broad stakeholder and public input, could benefit industry, rural municipalities, and all Albertans alike. The MAS is not the right process to reach such a strategy.”
About the Rural Municipalities of Alberta
The Rural Municipalities of Alberta (RMA) is a trusted and independent association representing Alberta’s 69 counties and municipal districts. Since 1909, RMA remains committed to empowering rural municipalities with strong, effective local governance. Through dedicated advocacy and a suite of valued business services, including cooperative procurement and group benefits through the Canoe Procurement Group of Canada and comprehensive coverage through RMA Insurance, we strive to strengthen and support rural Alberta. Learn more at rmalberta.com.
For media inquiries, please contact:
Shamelle Pless
General Manager, Marketing & Communications, RMA
780.886.2480
shamelle@rmalberta.com