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Background A geothermal plant may fall under the jurisdiction of the NWT Public Utilities Board and the Boilers and Pressure Vessels Act (administered by the GNWT Department of Public Works and Services).37 2.4.4.3 Royalties No royalties are being charged for other renewable energy projects such as wind and solar in the Northwest Territories, as the energy source is never depleted. Currently, there are no royalties specified for geothermal energy development in the Northwest Territories. Royalties are charged for petroleum and mineral development. Petroleum royalties are outlined in the Frontier Lands Petroleum Royalty Regulations, and range from 1 to 5 % of gross revenue until the costs of the project are covered, then are set at 5% of the gross revenue or 30% of the net revenue, whichever is greater.38 Mineral royalties range from 0 to 14 % of the value of the output depending on the size of the mine.39 37 Government of the Northwest Territories, Boilers and Pressure Vessels Act (R.S.N.W.T. 1988, c. B-2) 38 Northern Oil and Gas Directorate Indian and Northern Affairs Canada, “Calculating Royalties,” http://www.ainc- inac.gc.ca/nth/og/flprr/calc-eng.asp. 39 Indian and Northern Affairs Canada, Discussion Paper: The Frontier Lands Petroleum Royalty Regulations, Proposed Amendments, http://www.ainc-inac.gc.ca/nth/og/flprr/am/discu-eng.asp. The Pembina Institute 19 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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