Jurek

I copied this from the Alberta Bitumen Royalty Regime

"In other words, the regime imposes a 25% royalty on net project revenue after the developer has

recovered all project costs, including 100% of capital, operating and development costs in the year incurred, and after the corporation has earned a rate of return on its invest ment.

In the event that these conditions are not met, for example when investments are high due to project start-up

or expansion, the project owner pays a minimum 1% royalty on all project production"

This would indicate that the new royalties do not take effect until the project is paid back from net revenues not gross revenues which would lead to cash flows remaining higher for quite some time. I think if someone wants to know for sure they can email Connacher or the Alberta Royalty regime people!