Pembina Institute opposes proposed royalty reduction for coalbed methane pilot projects

Encourages public to comment on preliminary findings from the Multi-stakeholder Advisory Committee on Coalbed Methane/Natural Gas in Coal

The Pembina Institute

The Pembina Institute thinks that many of the recommendations in the draft report released by the Alberta government’s Multi-stakeholder Advisory Committee on Coalbed Methane could ultimately lead to improvements in the way in which coalbed methane is regulated in Alberta, but it does not support the proposed royalty or tax reductions for pilot projects.

“Industry should bear the full cost of development, since any form of subsidy distorts the playing field with respect to renewable energy,” said Mary Griffiths, who was selected by the Alberta Environmental Network to serve as Pembina’s representative on the committee. “Industry is already engaging in pilot projects in the saline Mannville formation without royalty reductions.”

Griffiths hopes that all those living in areas where coalbed methane is already being developed and those whose land is over coal seams that could be developed in the future will read the preliminary findings and let the committee know what they think. She points out that important recommendations, such as the proposal for project-based planning and disclosure and a recommendation to minimize the cumulative impacts of CBM development, will require more work before they can be implemented.

The committee tried to reach consensus on its recommendations, but in a few cases this was not possible.

The preliminary findings can be found on the Alberta Energy Web site at


For more information contact:

Chris Severson-Baker, Director, Energy Watch
Telephone: (403) 269-3344 x 101
Cell: (403) 612-9159