Good morning,

I am not sure if you are aware of the recent statements by the Prime
Minister of Canada, on his recent political trip to Whitehorse, Yukon.  He
made some erroneous statements regarding Canada's position on the ANGTS
project and Canada's requirements for any project.

The attached Official Background brief was issued by the PMO (Prime
Minister's Office) in Ottawa.  As you can see from the brief, Canada does
not agree that Foothills or the ANGTS project has exclusivity on a project
for delivering gas from Alaska.  Furthermore, Canada will ensure that any
project in the north will give maximum economic benefit to northerners.

I hope you find the attached document informative.  If you have any further
questions, please feel free to give me a call at your convenience.

Best regards,

Bruce








 - Backgrounder PMO.doc