Functional Responsibility:
The Alberta Petroleum Marketing Commission was created in 1974 under the Petroleum Marketing Act. The Commission was to handle the marketing of the Crown's royalty share and a lessee's royalty share of petroleum, both from Crown and freehold Lands.

The Alberta Petroleum Marketing Commission was an agent of the Crown, with the right to acquire, sell or exchange petroleum in Alberta. It was also directed to accept delivery of the Crown's royalty petroleum, to sell it within Alberta and to pay the proceeds to the Provincial Treasurer. As well, the Commission was the exclusive agent to sell Crown lessee's share of petroleum, paying the proceeds to the owners. The Commission was authorized to collect all oil royalty revenues effective March 1, 1974. The Commission issued a monthly Selling Price Bulletin, the first being issued March 1, 1974, whereby the Commission prescribed selling prices for petroleum produced from Crown leases. The Commission also represented the Alberta Government at regulatory proceedings in Canada and the Unites states as well as undertaking special studies which investigated various aspects of supplying, marketing and producing petroleum.

In November 1975, the Natural Gas Pricing Agreement Act came into effect; this Act implemented the federal-Alberta agreement on natural gas pricing. Through a ministerial order in December of that year, the Alberta Petroleum Marketing Commission was given the responsibility to administer this act; the Commission's responsibilities included purchasing and selling the gas, and administering the Natural Gas Pricing Agreement Act Fund.

In a 1977 amendment to the Petroleum Marketing Act, the Alberta Petroleum Marketing Commission was given responsibility for the pricing and marketing of pentanes plus, but could not begin this until supporting regulations were passed under the Mines and Minerals Act. The marketing of pentanes plus began January 1, 1982.

On October 31, 1980, the federal-Alberta agreement on natural gas pricing expired and the Natural Gas Price Administration Act was proclaimed, governing natural gas transactions in Alberta. A new federal-Alberta agreement came into effect November 1, 1981 and the Commission reverted to the Natural Gas Pricing Agreement Act to implement the agreement. The new agreement extended until January 31, 1987.

While petroleum derived from oil sands was not initially under the legislated jurisdiction of the Alberta Petroleum Marketing Commission, the Commission did have some involvement in the Syncrude Canada Limited Project with regards to the marketing of the Province's share of synthetic oil. The chairman, later any member, of the Commission also served as the Alberta Royalty Negotiator with respect to synthetic oil produced by the project. Beginning in June 1985, this was handled by the Department of Energy.

The year 1985 was important for the Alberta Petroleum Marketing Commission. The Western Accord deregulated the petroleum industry on June 1, 1985. Following the deregulation, the Commission, as an agent, continued to sell the Crown's royalty share of Alberta's crude oil production and its share of synthetic crude oil production from the Syncrude Canada Limited project. As well, the Commission marketed crude oil on behalf of producers, but on a contract basis. This crude oil production was purchased according to normal business practices. As well, the governments of Canada and the producing provinces signed the Agreement on Natural Gas Markets and Prices, which replaced the former federal-provincial pricing arrangements with market-sensitive pricing of domestic natural gas after an initial twelve-month transition period. In 1986, the Commission was assigned responsibilities under the Take-or-pay Costs Sharing Act and the Natural Gas Marketing Act.

In the early 1990s, the Alberta Petroleum Commission was gathering and marketing crude oil, taken as royalty-in-kind from Crown leases; it also marketed the province's equity share of synthetic oils from Syncrude Canada Ltd. The Commission's functions were dramatically altered in 1994. The February 1994 Speech from the Throne announced all Commission responsibilities were to be transferred to the Department of Energy, except those directly related to the marketing of crude oil, effective April 1, 1995. The Commission's position at the Government's representative at regulatory proceedings, along with the services provided under the Natural Gas Marketing Act, were transferred to the Department of Energy. The Minister of Energy also conducted an investigation into the role of the Commission and whether it would be most cost efficient to replace the marketing function with either a cash royalty or a privatization mechanism; the conclusion was that it was in the financial best interest for the Department to keep the marketing function.

The privatization option was explored again in the fall of 1995, and was deemed more cost efficient then cash royalty. In April 1996, Gulf Canada Resources Limited, PanCanadian Petroleum Limited and CANPET Energy Group Inc. were named as the companies to act as Crown's agents in marketing Alberta's crude oil for five years. Also that year, the Department of Energy assumed responsibility for the administration of the Commission.

Following all these changes, the Alberta Petroleum Marketing Commission remains responsible for accepting delivery of, and marketing, the Crown royalty share of crude oil.

Predecessor and Successor Bodies:
Effective April 1, 1995, all Alberta Petroleum Marketing Commission responsibilities were to be transferred to the Department of Energy except for those directly related to the marketing of crude oil. The Commission's responsibilities relating to crude oil marketing remained with the Commission but were privatized in 1996.

Administrative Relationships
The Alberta Petroleum Marketing Commission submitted its first annual report to the Premier and the Minister of Energy and Natural Resources. It continued to submit its annual reports to the Minister of Energy and Natural Resources, and then beginning in 1986 to the Minister of Energy. Beginning in 1995, the Commission's report was included in the Alberta Ministry of Energy's (and from 1999-2001 Resource Development's) annual reports.

Administrative Structure:
The Alberta Petroleum Marketing Commission consists of three members appointed by the Lieutenant Governor: a chairman, a vice-chairman and another member. The work of the Commission was initially supported by three divisions: Administration and Finance, Operations, and Economics and Planning. These divisions were altered in 1979/1980 to reflect more accurately the management and administration of petroleum and natural gas; the divisions were Administration and Finance, Petroleum and Natural Gas. A new division of Engineering and Planning was added in 1981. Minor changes to the organization structure in the following years resulted in the 1986 structure of the Commission involving a Finance and Administration Division, a Crude Oil Division, a Natural Gas and Market Analysis Division, and a Information Services Division. The following year, a new section entitled Special Projects and Regulatory Affairs was established, becoming the Market Analysis and Regulatory Affairs in 1988 when Market Analysis was transferred from the former Natural Gas and Market Analysis Division. Beginning in 1996, the Commission has been supported Department of Energy staff.

Names of Chief Officers:
Chairmen:
Douglas Wayne Minion (1974-1984)
Dale Alfred Lucas (1984-1991)
Gordon R. Scott (acting) (1992)
Norman E. MacMurchy (1992-1994)
David J. Manning (1994-1996)
Richard M. Hyndman (1996-1997)
Robert J. King (1997-1998)
Kenneth R. Smith (1998-)