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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (11197)	6/12/1998 5:39:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

PIPELINES / IPL Terrace Expansion JUNE 11, 1998 IPL Energy Welcomes NEB Approval of Terrace Phase I Expansion Application CALGARY, ALBERTA--(JUNE 11, 1998) IPL Energy Inc. today announced its wholly-owned subsidiary Interprovincial Pipe Line Inc. of Edmonton has received approval from the National Energy Board (NEB) to proceed with the Terrace Phase I crude oil pipeline expansion project.ÿ The Terrace project is a phased program on the Interprovincial Pipe Line and Lakehead Pipe Line Partners, L.P. systems that will ultimately provide overall system capacity increase of 350,000 barrels per day - with a heavy crude oil allocation of up to 520,000 barrels per day - for Western Canadian producers seeking greater access to Midwest U.S. markets. The first phase will provide an initial 95,000 barrels per day capacity increase by January, 1999, rising to 170,000 barrels per day by the end of 1999, at an investment of Cdn. $610 million in Canada and U.S. $138 million in the United States.ÿ Subsequent phases in the expansion program will provide the balance of 350,000 barrels per day of added capacity. Brian F. MacNeill, President & Chief Executive Officer of IPL Energy, said that the NEB approval is an important milestone in the development of one of the most significant crude oil pipeline expansion programs in Canadian history.ÿ "The Terrace Expansion Project has received widespread industry support and is a vital component for future Western Canadian heavy and synthetic crude oil expansion programs," Mr. MacNeill said.ÿ "This expansion builds upon the core strengths of our existing pipeline system and strategically positions IPL for future pipeline expansion opportunities.ÿ At the same time, Western Canadian producers can continue to move forward with their expansion plans, confident in the knowledge that the IPL system will be able to transport significantly increased volumes to U.S. Midwest refinery markets." This approval comes shortly after the approval in April by the Alberta Energy and Utilities Board of another IPL Energy project, the Athabasca Pipeline, under construction by wholly-owned subsidiary Wild Rose Pipe Line Inc. of Calgary.ÿ The Athabasca Pipeline will provide transportation service within Alberta from the Athabasca and Cold Lake regions south to its terminus at Hardisty.ÿ From the pipeline hub at Hardisty, crude supply will have access to the expanded IPL and Lakehead pipeline systems. IPL ENERGY INC. is a leader in energy delivery and services, operating the world's longest crude oil and petroleum products pipeline through the combined Interprovincial Pipe Line Inc. and Lakehead Pipe Line Partners, L.P. system, and Canada' largest natural gas distribution company through The Consumers' Gas Company Ltd. which serves 1.4 million residential, commercial and industrial customers in south central and eastern Ontario, Quebec and Upper New York State.ÿ IPL Energy's common shares trade on the Toronto and Montreal stock exchanges in Canada under the symbol "IPL".ÿ In the United States the shares trade on the NASDAQ National Market under "IPPIF". TERRACE EXPANSION PROGRAM FACT SHEETÿ PHASE I -ÿ Phase I mainline facilities are scheduled to be placed in service January 1999.ÿ This will provide an immediate 95,000 bpd of incremental capacity to IPL/LPL's bases system capacity.ÿ The Canadian facilities include construction of 620 kilometers of pipeline in 15 new sections of 914 mm (36 inch) pipe that connect existing 1219 mm (48 inch) diameter loop sections, creating a fifth pipeline running between Kerrobert, Saskatchewan and Gretna Manitoba. In addition, Lakehead Pipe Line Partners L.P. is proposing to construct a further 160 kilometres, (100 miles) of new 914-mm (36-inch) pipeline in four separate sections between Canada/U.S. border and Clearbrook, Minnesota. -ÿ All remaining station modifications are scheduled to be completed by the fourth quarter of 1999, resulting in an additional 75,000 bpd of incremental capacity being added to base system capacity.ÿ The total capacity increase which will result from the Phase I facilities will be 170,000 bpd. PHASE II -ÿ Phase II of the program will include an extension of the 36-inch pipeline between Hardisty, Alberta and Kerrobert, Saskatchewan.ÿ The tentative in-service date for Phase II is the fourth quarter of 2000.ÿ This expansion would provide an additional 40,000 bpd of incremental capacity. PHASE III -ÿ Phase III would include an extension of the 36-inch pipeline between Clearbrook, Minnesota and Superior, Wisconsin on the Lakehead Pipeline System.ÿ Subject to shipper production and transportation requirements, Phase III facilities could be in-service as early as the fourth quarter of 2001 and would provide 140,000 bpd of incremental capacity. /T/ TOTAL TERRACE CAPACITY EXPANSION PROJECT: CAPITAL COST:ÿÿÿÿÿÿÿÿÿ $1.4 billion CAPACITY INCREASE:ÿÿÿÿÿ 350,000 bpd overall system ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 520,000 bpd heavy crude IN-SERVICE:ÿÿÿÿÿÿÿÿÿÿÿÿ January, 1999ÿÿÿÿÿÿÿÿÿÿ - Phase I ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Fourth Quarter - 2000ÿÿ - Phase III ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Fourth Quarter - 2001ÿÿ - Phase III /T/ -30- FOR FURTHER INFORMATION PLEASE CONTACT: IPL Energy Inc. Alan Roth Media Contact (403) 420-5287 iplenergy.com or IPL Energy Inc. Al Monaco Investor Contact (403) 231-3973