Price (R-Multiplier)

Each month the Oil Business Unit of the Department of Energy releases an Information Letter containing the information required to calculate the R-Multiplier for the month. Enter below the appropriate Par Price, Select Price, and Royalty-Factor from the Information Letter. Ensure you select the correct density (heavy or non-heavy), month/year, and vintage (old, new, third tier) of the oil.
1. Enter Par Price                    
 $  (9999.99)
2. Enter Select Price          
 $ (9999.99)
3. Enter Royalty-Factor
 x   [
] + 1
Royalty Factor
Par Price
Select Price  
Par Price
    *Verify the R-Multiplier as published on the Information Letter. If the R-Multiplier in this calculator does not match the R-Multiplier in the Information Letter, enter the Information Letter's R-Multiplier here:

Note: Effective July 1995, the royalty rate for new vintage heavy oil will be capped at the new non-heavy oil royalty rate. This means that new heavy oil will never deliver more royalty than new non-heavy oil. Therefore, the new heavy Royalty-Factor is adjusted on the Information Letter published by the Department so that the new heavy R-Multiplier is equal to the new non-heavy R-Multiplie

Production (S)

(S) is the production sensitive portion of the royalty formula.
  5. Enter the well's production:     (99999.9)
6. Select the well's vintage:

Third Tier
<20 m3
No Oil Royalty payable
<190.7 m3
(Production X Production) / 2755.04
(Production X Production) / 2755.04
(Production - 20m³)² / 2207.46
≥ 190.7 m3
13.2m³ + [(Production - 190.7) X 0.115385]
13.2m³ + [(Production - 190.7) X 0.115385]
13.2m³ + [(Production - 190.7m³) X 0.115385]
Note: 'S' is rounded to five decimal places.
Production (S) 

Crown's Interest (C)

(C) is the Crown's interest for the well.
  8. Enter the Crown's interest for the well:
Crown percent (C) 
% (999.999999)

Royalty Volume (m3)

The royalty volume is based on the price of oil (R-Multiplier) times the amount of production (S) times the Crown's interest in the well (C).
Royalty payable = (R-Multiplier) X (S) X (C)

Royalty payable   
X    %
         Price (R-Multiplier)
Production (S) 
     Crown's Interest (C)  
10. Truncate to 6 decimals
  11. Round to one decimal  
Volume to be delivered