Information letter: Information on monthly royalty summary statements for contract holders and royalty payors

What is a monthly royalty summary statement?

• IOGC is now sending a monthly royalty summary statement (Statement) to contract holders through the Petrinex mailbox delivery system to provide information on royalty balances .
• Contract holders and royalty payors will receive notification on the status of their payments including royalty balances.

How and when will I receive my first Statement?

• IOGC will be distributing the Statements in early Spring 2026 through the Petrinex mailbox delivery system by Business Associate (BA) Identity (ID) code.
• The Statements are deemed delivered once they are distributed through Petrinex^{Footnote 1}.

How are Notice of Arrears linked to the Statements?

• If there are any outstanding amounts after a Statement is sent, IOGC will then send a Notice of Arrears through the Petrinex mailbox delivery system.

Contract holder responsibilities

• To prevent receiving a Notice of Arrears or other compliance and enforcement actions for outstanding royalty amounts, contract holders are responsible for working with their associated royalty payors to address any payments owing as per Section 80 of the Indian Oil and Gas Regulations, SOR/2019-196 (Regulations).

Background and regulatory context

• These Statements were created to prevent and reduce the number of Notice of Arrears sent to contract holders.
• Section 7 of Regulations specifies that, "every contract holder must ensure that any requirement that is related to their contract and is imposed by these Regulations on a person other than the holder is fulfilled."
• Section 37 (2) of the Regulations also state, "if two or more persons have an undivided right or interest in a subsurface contract, they are jointly and severally, or solidarily, liable for all obligations under the contract, the Act and these Regulations."
• This means that the contract holder retains joint and several liability (or solidarily) for any outstanding royalty amounts not paid by a royalty payor.
• Section 80 of the Regulations specifies that, "the royalty must be paid on or before the 25th day of the third month after the month in which the oil or gas is produced."
• This means that all outstanding payments need to be paid by the specified date in the Regulations, including all payments owed by both the contract holder and royalty payor.

For more information

Email the Finance Business Unit at iogcfinance@sac-isc.gc.ca with your questions.

We can also be reached at:

Indian Oil and Gas Canada
c/o Manager, Financial Services
9911 Chiila Boulevard Suite 100
Tsuut'ina AB  T3T 0E1
Phone: 403-292-5625
Fax: 403-292-5618