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To: LLCF who wrote (98951)	5/2/2001 11:06:26 PM
From: Duane L. Olson	Respond to of 436258

DAK.. And fortunately, the royalty trusts, such as NCN, ERF, HGT SJT, etc, now pretty much have their reserves calculated by independent engineering groups on a generally comparable basis. NCN, for example, in their release which included the reported 41% increase in reserves during 2000, were quoting from an independent engineering report: biz.yahoo.com Your comment that the trusts are conservative is well put. And what I generally like about the Canadian royalty trusts compared with the US is that they tend to be more conservative in establishing a "present value" for future production from those reserves. Using a 12% discount rate, rather than 10% as is more common for the US royalty trusts, appears to place a much more conservative value on trust properties -- which I appreciate. dlo