Royalty review: former oilsands VP tells NDP to 'just do it'

A former Shell vice-president of oilsands operations says while energy companies wait for a royalty review, premier-designate Rachel Notley needs to "just do it."

Sam Spanglet, a member of the last royalty review panel in 2007, is direct in his assessment of the need for a swift review and decisive action.

"If you know what the answer is, don't form a panel or a committee and create all kinds of uncertainty — just tell us what you want," he told CBC radio, but his comments were clearly directed towards Notley.

Notley promised during the election campaign to review royalty rates, and last week said she would undertake a review in this term. She provided no further details on an exact timeline, citing the fact that her cabinet hasn't been selected or sworn in yet.

But Spanglet said waiting means uncertainty.

From his home in Toronto, he can picture energy executives and management teams sitting around boardroom tables in Calgary crunching numbers, then waiting for decisions from government.

And the waiting, Spanglet said, spells disaster for industry.

"It creates a lot of uncertainty, and as a result it postpones or delays growth in the province," he said.

Spanglet can recall the last round of royalty reviews, when a government-appointed panel he was part of recommended hiking the amount of tax oil and gas companies pay to do business in Alberta by 20 per cent.

Then-premier Ed Stelmach was behind that review, a move that political observers say ultimately cost him the leadership of the Conservative party.

Stelmach increased rates, as the panel suggested, then rolled them back after vocal criticism from the oil and gas industry.

"I was very concerned he did not make a decision," Spanglet said about Stelmach's flip-flop decision.

Then, like now, Spanglet said it was uncertainty that threatened industry.

"Anytime you mention the word reviewing royalties, it's an emotional thing for citizens, for politicians, industry, everybody."

Spanglet refused to speculate on whether royalties should be increased now, saying the factors the panel considered in 2007 would be different now.

"The sentiment is that royalties are low, maybe this is the case, I don't know."

What he does know is that Notley has opened a proverbial can of worms by the mere suggestion of calling for a royalty review. He said if she already thinks that royalty rates are low, then his advice to her is this: "If there's only one answer that you accept -  then just do it."