[IPSM] [Fwd: Information-Imperial Oil Announcement]

[Macdonald Stainsby]

Great news!!
Macdonald

1. Imperial Oil Announcement

Calgary, AB, April 28, 2005

Imperial Oil, on behalf of the Mackenzie Gas Project coventurers,
announced today a decision to halt project execution activities due to
insufficient progress on key areas critical to the project -- the
finalization of benefits and access agreements and the establishment of
a clear regulatory process, including timelines. The project will focus
its efforts in these key areas, and substantial progress will need to be
made prior to the start of public regulatory hearings, expected as early
as late summer, to allow the project to continue.

Project proponents are halting activities such as geotechnical data
gathering programs, the start of detailed engineering and preparatory
work on contracting for construction. However, the proponents are
continuing all work associated with advancing the regulatory review
process, which is currently focused on providing regulators with the
information they require.

Progress on benefits and access agreements is being hampered by requests
for terms that are well beyond the direct responsibility of the project.
In addition, there are concerns about the pace and coordination of the
regulatory process and uncertainties associated with the northern
regulatory regime, as was experienced recently in pursuing regulatory
permits to collect field data.

Meetings have been held with the federal and territorial governments,
and Aboriginal leaders to clarify the proponents' concerns and discuss
how the parties can move forward expeditiously to achieve what needs to
be accomplished to allow the project to proceed. The federal and
territorial governments are being asked to assist by taking ownership of
matters that are beyond the scope and responsibility of the project
owners. This would enable the project proponents to focus on their
responsibilities. The proponents are also seeking confirmation of a
clear, firm regulatory review process, including timelines consistent
with those in the June 2002 Cooperation Plan developed by regulatory
authorities.

"Despite significant effort and expenditures by the proponents and other
parties, the reality is that adequate progress is not being made in key
areas. Our efforts to resolve issues in these areas have not diminished.
However, to achieve real progress, approaches need to change," said J.
Michael Yeager, senior vice-president, Imperial Oil Limited. "We are
refocusing our efforts to address these essential issues. We are not
giving up on developing a project that can be a sound investment for the
proponents and can contribute to sustained economic development for the
people of Canada's north, including employment, business opportunities
and growth."

"We remain committed to the Mackenzie Gas Project," said Fred
Carmichael, Chair of the APG. "It continues to represent a significant
opportunity for the people of the North to reduce their reliance on
government. Without this project there will be no job creation, business
opportunities or income for Aboriginal people, including that derived
from the APG's ownership interest. The project's future depends on
successful resolution of these issues, and all parties -- governments,
industry and the people of the North -- must work together to resolve
these issues if the project is to proceed."

Henry Sykes, president of ConocoPhillips Canada, said, "We believe this
project offers significant opportunities to Canada, and particularly
Northern Canadians, as well as a competitive source of gas supply for
North American markets. However, resolution of these outstanding issues
in a timely manner is essential for the project to proceed.”

"The decision to halt these work activities was extremely difficult, but
it was necessary," said Ian Kilgour, Shell Canada's senior
vice-president of Exploration and Production. "The coventurers have
serious concerns regarding the pace of progress relative to our ongoing
investments, and the lack of convergence in some key project areas. We
remain hopeful we can get back on track."

The Mackenzie Gas Project proponents filed applications for regulatory
approval in October 2004. The applications describe potential benefits
associated with the project including:

1. Employment, economic activity and government revenues across the country
2. New supplies of natural gas for North America
3. Dividend income for northern Aboriginal people through their APG
ownership
4. Potential for future exploration and development creating additional
natural gas supplies, employment, economic activity and government
revenues.

The Mackenzie Gas Project would include the development of an estimated
six trillion cubic feet of natural gas resource in the three largest
onshore fields discovered in the Mackenzie Delta, and construction of a
gas and natural-gas liquids gathering system, gas pipeline and related
facilities. The Mackenzie Valley gas pipeline would have an initial
design capacity of 1.2 billion cubic feet per day and be expandable to
accommodate gas from other fields in the future.

The project is being proposed by Imperial, ConocoPhillips Canada, Shell
Canada, ExxonMobil Canada and the Aboriginal Pipeline Group (APG). The
APG was formed in 2000 to enable ownership interest of the Aboriginal
peoples of the Northwest Territories in the proposed Mackenzie Valley
natural-gas pipeline. TransCanada PipeLines Limited is helping to
facilitate and finance the APG's ownership, in addition to other
support, in the current phase of project development.

-- 

Macdonald Stainsby
http://independentmedia.ca/survivingcanada
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In the contradiction lies the hope
	--Bertholt Brecht.