The Fraser Institute issued a release Tuesday which is causing many to ask questions about the effective tax rates for oil and gas exploration in Saskatchewan. The release, which touts a report prepared by Jack Mintz and Philip Bazel from the University of Calgary, stated the province of Saskatchewan has the highest taxes on new oil and gas not only in Canada but in all of North America.

The study showed the province of Saskatchewan had a tax rate on new oil investments of 35.9 percent. This included capital tax, royalties, corporate income tax and provincial sales tax. The rate was well above the federal average of 22.7 percent, and well above Alberta’s rate of 21.3 percent.

“The Government of Saskatchewan has significant concerns about the accuracy of this report and will be following up with the authors,” the email stated. “Saskatchewan’s royalty system is one of the most competitive in North America and our royalty investment incentives – such as the horizontal drilling volumetric incentive and the Enhanced Oil Recovery royalty regime – are widely recognized as being major drivers of new investment in the province.”

Discover Weyburn also reached out to the Fraser Institute, a well-known conservative think tank based in Calgary, to clarify the methodology used to compile the numbers, and what the key differences were between the provinces, but they did not reply prior to deadline.

You can read the full report from the Fraser Institute here.