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

To: Kerm Yerman who wrote (13628)	11/19/1998 6:48:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 15196

IN THE NEWS / Canada urged to act against Talisman's Sudan project CALGARY, Nov 18 (Reuters) - A church group harshly critical of Talisman Energy Inc. and its Sudan oil project has urged Canada's government to take action against the company by making it too tough for Talisman to operate in the war-torn African nation. The Inter-Church Coalition on Africa told Canadian Foreign Minister Lloyd Axworthy in a letter he should bring in legislation making Sudan operations unwieldy for Talisman, suggesting he insist on export permits for oil equipment and even impose economic sanctions on the country. The Toronto-based organization, which includes such mainstream churches as the Anglican Church of Canada, Presbyterian Church in Canada and United Church of Canada, has long protested Canadian oil industry involvement in Sudan. Its opposition stems from its belief that Sudan's Islamist government, which it accuses of "ethnic cleansing" activities and other human rights abuses, will use the oil and profits from it against anti-government rebels, extending a 15-year civil war in the impoverished country. Also signing the letter were 10 other organizations, such as the Canadian Labor Congress, Mennonite Central Committee, Freedom Quest International and Steelworkers Humanity Fund. "We want the government to take the issue of Talisman and other Canadian companies lining up at the trough, so to speak, more seriously and enact some legislation that will make it more difficult for Talisman to go about its business," coalition director Gary Kenny told Reuters on Wednesday. Calgary-based Talisman, one of Canada's biggest oil and gas companies, recently gained a 25-percent stake in a $1.4-billion southern Sudan oil project by taking over Arakis Energy Corp. Other partners in the development, which includes a vast, oil-rich drilling concession and a 930-mile (1,500 km) pipeline to the Red Sea, are China National Petroleum Corp., Malaysia state oil company Petronas and the Sudan government. Production of 150,000 barrels a day is scheduled to start next year. The church group said it wanted Axworthy to place the nation on Canada's "Area Controls List," which would require exports to Sudan, including equipment and technology needed for Talisman's operations, to have export permits. It also suggested he use a special law that would allow Canada to impose economic sanctions on Sudan without a resolution from an international body like the United Nations. So far Canada has resisted sanctions against Sudan. By contrast, the U.S. has blacklisted Sudan as a nation it said supported terrorism. In addition, the coalition asked Axworthy to turn down any requests from Talisman or other Canadian firms for financing or risk insurance from the government's Export Development Corp. Foreign Affairs officials were not available for comment. Talisman Chief Executive Jim Buckee has said several times since launching the Arakis takeover that his company would bring with it much-needed investment dollars, western oil expertise and technology. That would lead to new economic prosperity throughout the famine-struck nation, which would mean new hospitals, education systems and other projects, Buckee, one of Canada's most respected oilmen, has said. "He's said if you just ignore investment opportunities, it's not really doing the people involved a service," Talisman spokesman Dave Mann said. "There is a civil war going on in the southern part of the country and there are allegations being thrown back and forth and we're not going to pick sides."

To: Kerm Yerman who wrote (13628)	11/19/1998 6:56:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Natives demand $147-million for Sable Island gas pipeline The Halifax Daily News The Assembly of Nova Scotia Mi'kmaq Chiefs said yesterday it's difficult to put a price on sacred aboriginal sites that could be disturbed by the construction of the Sable Island natural gas pipeline, but $147-million might be a place to start. Several chiefs and their lawyers told a news conference that newly found evidence of burial and habitation sites in the corridor for the $1.7-billion Maritimes and Northeast Pipeline forces them to ask the courts to block the project from proceeding. The two sides have been in protracted negotiations regarding economic opportunities and compensation for aboriginal communities in Nova Scotia, but have stalled on the size of the compensation package. Assembly negotiator Bernd Christmas said Maritimes and Northeast, along with Sable Offshore Energy Inc., has offered $500,000 to split among the 13 bands affected by the construction of facilities needed to bring natural gas from offshore Nova Scotia to markets in Atlantic Canada and New England by the end of 1999. But the Assembly is demanding $147-million. Mr. Christmas said this breaks down into $16-million for pipeline-related contracts the native community thought it would get but didn't, and another $131-million for "infringement of our aboriginal rights." The money could come via a percentage of the income earned by Maritimes and Northeast over the life of the pipeline. While the money will help poverty-stricken native communities, Mr. Christmas said "I'm not sure if money will really solve this problem." Reading from a prepared text, Chief Terrence Paul of Membertou said the assembly felt it had little choice after the breakdown in negotiations. "We wish to express our deep regret with what surely some people will see as an adversarial stand," he said. Maritimes and Northeast has suspended negotiations until the court challenge is completed. During right-of-way clearing work this past week, crews discovered a possible burial site at River Philip, Cumberland County, and a pre-contact habitation site near Saint Mary's River in Guysborough County. Investigators found evidence of red okra, a plant associated with Mi'kmaq burial ceremonies, and numerous stone flakes left from tool making. Chief Lawrence Paul of Millbrook said Maritimes and Northeast wants to drill under the suspected burial site, an action he said "we cannot, and will not" let happen. "We will not permit the company to desecrate our ancestors," he said. Maritimes and Northeast spokesman Michael Whalen said drilling under the site is just one option, and that no decision has been made on what method may be used or even the actual route the pipeline might take through the area. Whalen said the company has suspended all work in the area, although all other clearing work will continue.

To: Kerm Yerman who wrote (13628)	11/19/1998 7:13:00 AM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Big Bear asks court to nullify Blue Range's poison pill Financial Post Bign Bear Exploration Ltd.s has gone to court to fight a temporary poison pill swallowed by hostile takeover target Blue Range Resource Corp. In document filed yesterday at the Alberta Court of Queen's Bench, Big Bear says it wants the shareholders' rights plan struck down because it's illegal, oppressive, and unfairly prejudicial to the interests of Big Bear and those Blue Range shareholders who support Big Bear's takeover bid. "We have taken the first step today to remove the poison pill, which the management and some of the directors of Blue Range implemented to prevent Blue Range shareholders from tendering to our bid, Jim Surbey, senior vice president, corporate development of Big Bear, said yesterday. Blue Range, a natural gas producer, adopted a short-term poison pill after the announcement last week of a hostile takeover bid from Big Bear. The bid is backed by Blue Range shareholders, representing 33% of the stock, unhappy with the Blue Range's performance, and seeking a change in management. The battle for control escalated soon after, with Blue Range president and chief executive officer Gordon Ironside attacking Big Bear's credibility Monday in a news conference, where he called the junior producer's recent financial performance "dismal." Blue Range is opening data rooms today to promote a competing bid. The court proceedings are scheduled for Dec. 1. The Big Bear bid expires Dec. 7 at 7 p.m. (MST). Mr. Surbey said his firm will mount a takeover even with only 35% of the shares. "We expect a much higher response than that. We expect to achieve 70% or 80%" shareholder support. Five institutional shareholders have agreed to tender to the bid unless there's a better bid. Blue Range has been looked at by many potential buyers because of its poor stock performance, Mr. Surbey said, but no one has pursued it. Big Bear isn't offering a premium in its $194-million stock offer, plus the assumption of $105 million in debt, which values Blue Range's stock at about (LOST TRANSMISSION)

To: Kerm Yerman who wrote (13628)	11/20/1998 12:21:00 PM
From: Kerm Yerman	Respond to of 15196

IN THE NEWS / Oil firms steamed over municipal fees Towns target them to make up for declining transfers Claudia Cattaneo Financial Post Canada's oil companies are increasingly angry that they're being targeted by rural governments across the West for higher fees, taxes, and levies to make up for declining transfer payments from higher levels of government. The trend to higher charges is reaching such disproportionate levels it's resulting in rising costs at a time when the industry's being crippled by the year-long oil price collapse, says the industry's main lobby group, the Canadian Association of Petroleum Producers. "Do we feel picked on? Our costs are going up substantially, and I think they are going up disproportionately in relationship to other businesses or other people that live in those jurisdictions," said Charles Fischer, CAPP vice-chairman and chief operating officer at Canadian Occidental Petroleum Ltd. Faced with declining transfers from cost-cutting provincial and federal governments, hundreds of small municipalities in Western Canada are increasing taxes and jacking up oil industry-related fees and levies to make up for revenue shorfalls, the group says. Unwilling to hit on their residents, they're instead going after oil companies, often the largest business operatorsd in their jurisdictions, the group says. Colin Griffith, city manager for Fort St. John in northeastern British Columbia, which is experiencing an natural-gas related boom, said with the federal government offloading on provincial governments, and provincial governments offloading on municipal governments, municipalities have no choice but to look at their revenue sources. In most cases, they have few options. "You will see property tax under pressure, becauseg ther buck does stop at the bottom," he said. The higher charges to the industry vary from town to town, and include road permits, road insurances, deposits, geophysical approvals, and drilling well licences, said Greg Stringham, CAPP's vice-president for markets and fiscal policy. The inconsistency from jurisdiction to jurisdiction is adding to producers' problems because it increases administration costs, he said. Also, other taxes and royalties tend to be profit sensitive, but municipal charges are not, he said. Few oil companiesb have posted profits this year as the oil price slump that started in the fall of 1997 drags into a second year. "Where they make the biggest difference is where you have older wells that have low level of production, so the margins become quite low," said Mr. Fischer. "When you start increasing costs on those facilities, you can drive them tog be non-economic and thenj those operations would have to be shut in, and there would be bigger economic losses as a result of levies and tariffs," he said.

To: Kerm Yerman who wrote (13628)	11/20/1998 12:29:00 PM
From: Kerm Yerman	Read Replies (44) \| Respond to of 15196

IN THE NEWS / Forward sale not related to takeover, Blue Range says Financial Post Blue Range Resource Corp. said yesterday the forward sale of 12.5% of its natural gas production is not meant to make the company look "better or worse" while it attempts to fend off a hostile takeover bid from a rival company. Gordon Ironside, president of the mid-sized natural gas firm, said the five-year sales agreement with the Canadian unit of Enron Corp. has been in the making for some time and is part of the company's normal course of business. Blue Range is fighting a hostile takeover bid from smaller oil industry competitor Big Bear Exploration Ltd. Under the sales agreement, Blue Range has sold 15 million cubic feet a day of natural gas from northeastern British Columbia at $2.57 per thousand cubic feet. Last week, Big Bear launched a hostile $194-million stock offer for Blue Range, plus the assumption of $105-million in debt.