The Canadian province of Alberta has set a new royalty rate for oil companies plying oil sands and conventional oilfields, a move that angered some and gained agreement from others.

Alberta aims to raise C$1.4 billion starting in 2010, one year after a new royalty rate kicks in based on a $55 oil. Beyond the number, royalties could rise to 40 percent of net revenue from the 25 percent of today.

Calgary-based Suncor Energy appeared to aquiesce Friday to the province of Alberta’s plan to change the royalty rules, judging by a company statement saying it now needed “time to study the changes”.

The scale-down of language seemed to follow a government outline of a plan to work with Suncor toward “an agreement on a transition plan to the new royalty framework”.

In the weeks since a government panel recommended more royalties for Albertans, oil companies had threatened the loss of thousands of jobs and billions of dollars in capital investments at the costly oil-sands deposits.

"Suncor recognizes that the oil sands resource we develop is owned by the people of Alberta, and Albertans have the right to benefit economically through royalties," company chief exec, Rick George, said in a statement, before adding that royalty changes were still “substantial and could have a significant impact on industry economics”.