Suncor strikes royalty deal

In what has been labelled a sweetheart deal, Suncor, the oldest and second-largest player in the oilsands, will pay between 25 and 30 per cent more in royalties on mined production, with in-situ operations falling under the generic regime in 2009.

In return, the government won’t change allowed costs for Suncor’s oilsands project, nor take royalty-in-kind before 2012, and will provide certainty around bitumen valuation methodology, among other items.

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