Hi Sharky and Bobert,

With regard to the government's help for SAGD?

I would like to believe that our present government would provide assistance to all of the oil and gas producers. However, I am not overly optimistic on that.

On a number of occasions I passed the word along that the oil and gas sector would be severely affected by the royalties that were being proposed. I don't really think the government got the message. And I'm not sure that they have gotten it yet. Within a short distance from my home, we had 6 or 7 proposed upgraders that were going to be built. All of them have now been either cancelled or delayed.

The Alberta government has made small adjustments to the proposed royalties but those adjustments were very small and also only affected about 20% of the producers. In light of what's happened up until now, I think the SAGD, as well as all the other oil and gas producers will be left on their own.

So far, Alberta has lost in excess of 45 billion dollars in oil and gas projects.

So now our government is talking about possibly even having a deficit next year whereas Saskatchewan is looking at about a 2 billion dollar surplus. How times can change so quickly.

The present investment climate in Alberta has certainly sent a lot of oil and gas money to both Saskatchewan and British Columbia. Also, it looks like it could send a lot of upgrading to the United States.

Somehow, the Alberta Government has got to rescind the royalties that it has just put in place. If it does not, then this province is going to be negatively affected for many years to come.

Best Wishes,

Lynn