Thank you, Mr. Speaker. I have a return to an oral question asked by Mr. Antoine on April 7th with respect to federal royalties from oil and gas. The federal government receives royalties from oil and gas production at the Norman Wells, Bent Horn and Pointed Mountain fields. The first two are oilfields and the latter produces gas.

Norman Wells royalties are governed by the 1944 Norman Wells proven area agreement. Under this agreement, Imperial Oil owns two-thirds of the field production and pays the federal government a five per cent royalty on this production. The federal government owns the remaining one-third of the field and receives the net income from this production. The "Crown share" is a form of royalty. The combined income to the federal government from these royalties is about $45 million a year.

Royalties from the Pointed Mountain gas field are calculated on the basis of 10 per cent on the first 76 per cent of production and 15 per cent on the balance. Royalties from this field average slightly over $300,000 per year. Bent Horn pays royalties at a flat rate of 10 per cent. They amount to an average of $16,000 per year.

I would note for all Members that, at present, all royalties collected from oil and gas activities in the Northwest Territories only flow to the federal government. Thank you.