Hi Sharky,

First of all, Merry Christmas and Happy New Year.

I enjoyed your Christmas card that you attached to your post.

In answer to your email:

1. I do not agree with the new royalty program in any way. The commission members, in my opinion, did not understand how oil and gas companies finance themselves. So, their recommendations were very hurtful to the oil and gas industry in Alberta.

2. The Alberta Government has made small changes to the new royalty program, but I do not believe that they understand the gravity of the problem. So far, their proposed changes have been too small and too late.

3. Billions of dollars in proposed oil and gas projects have already left Alberta and I am not hopeful that the government will understand why.

4. So, I have to say that the Alberta Government will not understand what is really happening until great damage has been done to the oil industry in this province.

5. I am hoping that OPEC cutbacks will lead to a good increase in the price of oil so that all oil and gas companies will receive a fair price for the oil that they produce. A price of US $70 to $80 per barrell would be good for a start.

Thank you for your post and thank you for all the excellent posts that you have made during this past year.

Best Wishes,

Lynn