09/14/2011 02:47 EDT | Updated 01/12/2012 02:17 EST

Study says Alberta royalty rates for oil and gas 'fair and reasonable'

CALGARY - A new study of royalty rates in Alberta's oil and gas industry says the structure of the royalty framework is good news for the province.

Professor Ken McKenzie with the University of Calgary's School of Public Policy says Alberta's royalty framework is both "fair and reasonable."

He says the structure of the royalty regime allows both government and the oil companies to attain reasonable shares and profits.

McKenzie, who was a member of the 2007 royalty review panel, says Alberta's royalty regime could be thought of as a model for other governments.

He says it's because it allows both government and industry to share in costs as well as revenue associated with oilsands development.