Cornergas, it's in clear print - cumulative costs of the project (like maintaining the infrastructure, not operating costs in extracting the bitumen.....)

I had a chance to review the 2008 Year End Financial Statements, as well as the Q3 2009, and Revenue is shown net of royalties, as well as a seperate line item above Operating costs - it's clear that the current royalties are above operating costs.

Money to pay for the operating costs is shown as Revenue (net delivery) less Royalties.

In addition, the Notes to Financial statements (Financial Overview Section) mention the impact of the royalties (p 56 - 2008 Financials)

On October 25, 2007, the Government of Alberta unveiled a new royalty regime. The new regime was introduced for conventional oil, natural gas and bitumen effective January 1, 2009 and is linked to price and production levels. It applies to both new and existing oil sands projects and conventional oil and gas activities. The impact of the new royalty regime on Connacher will be dependent on, among other things, commodity prices, bitumen valuation, specified allowed costs that are recoverable in the pre-payout period for oil sands projects and production volumes.

IMO, cumulative costs pertain to the project costs (asset), not operating costs (income)

Booster