Hi Jurek:

I did catch your comment on the Ontario Teacher's Pension Plan and I did see the humour in it. The Ontario Teacher's Pension Plan has a very good reputation for being an ethical investor, most recently for taking on Magna Corporation (along with other Pension funds)concerning its dual class share structure deal with the owner Frank Stronach. However, upon researching some of the holdings of the Ontario Teacher's Pension Plan one can discern that they hold many shares in the following companies which upon reflection may not be any better or any worse than owning shares in a SAGD heavy oil producer in the oilsands.

The Ontario Teacher's Pension Plan owns shares in Woodside Petroleum Inc., which owns LNG terminals in Western Australia and in Darwin Australia. It owns the Lammana and Corallina oil fields in the Timor Sea as well as 20% of the Neptune and Power Play oil and gas fields in the Gulf of Mexico.

OTPP owns shares in Carnival Corporation & Plc. the cruise lines which operates cruise ships which are heavy polluters of the environment as ships are among the most heavy polluting vehicles on earth.

OTPP also owns shares in Talisman Energy which operates oil fields in the North Sea and offshore Vietnam.

OTPP owns shares in Rio Tinto Plc. which operates bauxite mines and aluminium smelters world wide, which use tremendous amounts of electricity to produce aluminium. Rio Tinto also owns and operates 8 coal mines in Australia and one uranium mine in Australia, and one uranium mine in Namibia. None of these can be considered friendly to the environment.

OTPP owns shares in Chesapeake Energy which owns conventional oil and gas plays in the USA.

OTPP owns shares in Barrick Gold and Goldcorp. Gold mines produce a great deal of environmentally haserdous waste world wide as bi-products or their mining and refining processes.

OTPP owns Southern Cross Airports Holdings Ltd. which is the holding company which owns the Sydney Airport Corporation Ltd. which operates the airport in Sydney Australia. Aircraft are huge polluters of the environment. OTPP also owns the Birmingham International Airport, which owns the airport in Manchester, England which much of the air freight coming into the United Kingdom flies into.

OTPP owns GCT Global Container Terminals one of the largest container vessel port owners in North America which operates the container ports in New York and Vancouver among others. Container ships are one of the worst polluters.

OTPP's largest share holding is in OGX Petroleo e Gas Participacoes S.A. which is an oil and gas exploration and production company in Brazil which is drilling in the deep water of the Campos Basin offshore Brazil for oil.

http://www.otpp.com/wps/wcm/connect/otpp_en/Home/Investments/Major+Investments/Corporate+Shares+%28by+Value%29/

The bottom line is that the Ontario Teacher's Pension Fund must invest the money of retired teacher's in Ontario and make a profit to cover the teacher's pensions over the next 50 to 100 years and almost everthing that you invest in doesn't necessarily pass the "smell test".

Jurek you stated:

"In the meantime we have the more current problem related to bitumen prices which dropped to about $38bbl. With the operational cost at $21/bbl and interest obligation $19/bbl (assuming 16,000bbl/d production) we will run major deficit if these prices will not change. Unfortunately we do not have the hedges for bitumen production. IMO recent CLL SP price weakness, despite the recent positive news, is a reflection of the bitumen oversupply on Alberta market."

This is a very good warning to all who hold Connacher shares at the present time. The differential between WTI sweet crude and Alberta bitumen has widened and Connacher's increasing production seems to have missed the boat of high bitumen prices and the low differential between sweet oil/bitumen which has existed for the most of 2010. On the other hand being optimistic, my expectation is that the demand for oil will grow by November 2010 and this should run Connacher's share price to a yearly high according to the latest economic forcasts.

Jurek thank you for providing the current numbers for bitumen prices. September and October bitumen prices will continue to be gloomy.

Cheers; Scott