The PC Party of Saskatchewan believes there are made-in Saskatchewan policies which can kick-start the recovery of employment and economic opportunity in our oil dependent communities. This kick-start will benefit the entire Saskatchewan economy with no cost to the Treasury.
The PC Party is encouraging the Sask Party government to look at our proposal which is based on common sense, sound economics and which maintains environmental stewardship.
"It is apparent to me and the PC Party team of candidates that there are opportunities in the oil producing areas for small and medium sized producers to use hard work and ingenuity to restart and rehab existing wells which are currently sitting idle because of world prices. We also believe there would be the opportunity to drill new wells that may not be completed until prices improve with our proposal," said Leader Rick Swenson.
The PC Party believes this program should be limited to Sask registered producers and companies who file a Saskatchewan income tax return. They would be required to pay a $10,000.00 one-time registration fee if a new company and 10-20% of the calculated LLR fee. We need to let small producers help negotiate this fee structure with the government.
This would allow Saskatchewan producers to acquire dormant assets, bring the wells back on production and pay 20% of returns until the LLR ratio was met. When the price of oil returns to $65.00 BBL Canadian for a full quarter, then the full amount outstanding would become due. By then, the producer should have established production that would also reduce the LLR fee.
Swenson concludes, "We believe this program will work best for new and smaller producers - the very people who are the foundation of our communities today and in the future."