To close out RMA’s Below the Drill campaign, a summary of the impacts on municipalities, an overview of key statistics, and a supplementary interactive data component are highlighted below.
Throughout the fall, the RMA’s Below the Drill campaign has outlined Government of Alberta policies that subsidize oil and gas companies at the expense of rural municipalities.
The campaign first explored impacts caused by the removal of the Well Drilling Equipment Tax, which collectively cost municipalities $91.74 million between 2021 and 2023. This revenue loss is most felt in the central and northwest regions of the province. These regions are most closely linked to continued industry growth associated with deep wells.
Next, it highlighted unpaid oil and gas taxes, which has been a chronic and worsening issue for rural municipalities for at least the last several years. Cumulatively, municipalities lost $161.5 million in revenue from unpaid taxes by oil and gas companies from 2021-2023. Most notably, nearly every municipality has been impacted by unpaid oil and gas taxes, reflecting the severity and scale of this poorly addressed problem.
The campaign then featured the holiday on assessment for newly drilled wells, which cost municipalities $52.60 million collectively between 2021 and 2023. Once again, the impacts of this policy are higher in the western and northern regions of the province that represent continued industry growth.
Finally, the campaign examined the impact of the 35% reduction in assessment on shallow gas wells, which cost municipalities a total of $25.44 million from 2021-2023. These impacts are greater in the southern and eastern regions of the province, where shallow gas wells are prominent.
Cumulatively these policies have caused municipalities to miss out on more than $331 million in municipal tax revenue. Visit the Below the Drill website to learn more and view regional impacts across the province on the Below the Drill interactive data dashboard.
As Below the Drill concludes, RMA encourages members to share these results and how associated revenue loss has impacted local municipal decisions. Contact your local MLAs to call for fair policies that support rural Alberta and ensure the viability of our future communities.
Bezawit Lemma
Policy & Research Analyst
825.319.2280
bezawit@RMAlberta.com
Wyatt Skovron
General Manager of Policy & Advocacy
780.955.4096
wyatt@RMAlberta.com