Fort Chicago announces monthly cash distribution for April 2009



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES./

    Trading Symbol: FCE.UN
    Exchange: TSX
    

    CALGARY, April 21 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort
Chicago") announced today that the board of directors of Fort Chicago Energy
Management Ltd., the general partner of Fort Chicago, has declared a cash
distribution for April 2009 of $0.0833 per Class A limited partnership unit of
Fort Chicago ("Class A Unit"). The distribution will be paid on May 22, 2009
to unitholders of record at the close of business on April 30, 2009.
    Of this distribution, $0.0042 per Class A Unit will be considered U.S.
source interest income and $0.0171 per Class A Unit will be considered U.S.
source dividend income, each of which may be subject to U.S. withholding
taxes. The balance of the cash distribution of $0.0620 per Class A Unit will
be distributed without any deduction for U.S. withholding taxes. While this
distribution is considered to be a return of capital for Canadian income tax
purposes, unitholders are allocated a proportionate share of Fort Chicago's
taxable income. As a percent of projected cash distributions paid, taxable
income allocations are expected to be in the range of 95% to 100% in 2009.
    In connection with this distribution, Fort Chicago has determined that,
for purposes of the Premium Distribution(TM) and Distribution Reinvestment
Plan ("Plan"), $0.0791 per Class A Unit (representing the full amount of the
distribution of $0.0833 per Class A Unit less the $0.0042 per Class A Unit
considered to be U.S. source interest income), less the amount of any
applicable U.S. withholding taxes, is eligible to be reinvested by
unitholders, at a 5% discount, in additional Class A Units held for their
account under the Plan, or have them delivered to a designated plan broker in
exchange for a premium cash payment equal to 102% of the reinvested amount
under the Premium Distribution(TM) component of the Plan. Any portion of a
cash distribution that is not reinvested under the Plan will be paid in the
normal manner.
    A registered unitholder who has not previously enrolled in the Plan and
wishes to enroll in the Plan for the April 2009 distribution and for future
distributions must deliver a completed enrolment form to Computershare Trust
Company of Canada, as Plan Agent, at or before 5:00 pm (Toronto time) on
Thursday, April 23, 2009. Enrolment forms received after that time will only
be effective for subsequent distributions. Once a registered unitholder has
enrolled in either the Premium Distribution(TM) Component or the Distribution
Reinvestment Component by delivering to the Plan Agent a duly completed
enrolment form, participation in the manner elected by the unitholder
continues automatically with respect to all Class A Units registered in the
name of the unitholder, or held under the Plan by the Plan Agent for the
unitholder's account, until the Plan or the unitholder's participation therein
is terminated or until the unitholder changes its election.
    Beneficial unitholders who wish to participate or to continue to
participate in the Plan should contact their broker, investment dealer,
financial institution or other nominee to provide appropriate enrolment
instructions and to ensure any deadlines or other requirements that such
nominee may impose or be subject to are met. Beneficial unitholders should
also consult such nominee to confirm the nominee's policies concerning
continued participation following initial enrolment.
    A complete copy of the Plan, together with a related series of questions
and answers and an enrolment form for registered unitholders, are available on
Fort Chicago's website - www.fortchicago.com under the heading "Investor
Information - DRIP", or may be obtained on request from Fort Chicago by
calling (403) 213-3633, or from Computershare Trust Company of Canada, which
acts as Plan Agent, by calling 1-800-564-6253. Unitholders should carefully
read the complete text of the Plan before making any decisions regarding their
participation in the Plan.
    Fort Chicago reserves the right to limit the amount of new equity
available under the Plan on any particular distribution date. Accordingly,
participation may be prorated in certain circumstances. In the event of
proration, or if for any other reason a cash distribution cannot be reinvested
under the Plan, in whole or in part, participating unitholders will receive
from Fort Chicago the regular, declared cash distribution on any Class A Units
enrolled in the Plan for which the distribution is payable but cannot be
reinvested under the Plan in accordance with the unitholder's election.
    In general, U.S. source interest and dividend income paid to non-U.S.
persons is subject to withholding at a 30% rate. However, unitholders that are
tax exempt organizations and that are eligible for benefits under the income
tax treaty between the United States and Canada (the "Treaty") generally
should not be subject to withholding of U.S. tax with respect to U.S. source
dividends and interest.
    In addition, under the "portfolio interest" exemption, taxable
Unitholders (but in certain circumstances excluding banks) that own less than
10% of Fort Chicago's Class A Units generally should be exempt from
withholding of U.S. tax with respect to their share of U.S. source interest
income received by Fort Chicago. If a taxable Unitholder does not qualify for
the portfolio interest exemption, but is eligible for benefits under the
Treaty, such Unitholder should be eligible for a reduced rate of withholding
on interest income (4% for 2009, unless the related person rule does not
apply, in which case U.S. withholding on interest is eliminated).
    A taxable Unitholder that is eligible for benefits under the Treaty
should be eligible for a reduced rate of U.S. withholding of 15% (5% for
certain corporate Unitholders owning more than 10% of Fort Chicago's Class A
Units) with respect to its share of U.S. source dividend income received by
Fort Chicago.
    Subject to certain limitations, Unitholders subject to U.S. withholding
are entitled to claim a foreign tax credit against their Canadian taxable
income. If you are unsure of the taxable status of your account or are
currently subject to the statutory withholding rate of 30%, please check with
our transfer agent, Computershare Trust Company of Canada, or your broker
representative, as applicable, to ensure the applicable U.S. Internal Revenue
Service form W8-BEN, W8-IMY, W8-EXP or other relevant form has been completed
to enable you to take advantage of the reduced withholding rates under the
Treaty and/or the portfolio interest exemption.

    Fort Chicago

    Fort Chicago is a publicly traded limited partnership based in Calgary,
Alberta, that owns and operates energy infrastructure assets across North
America. Its Class A Units are listed on the TSX under the symbol FCE.UN and
have been assigned a stability rating by Standard & Poor's of SR-2. Fort
Chicago is engaged in three principal businesses: a pipeline transportation
business comprised of interests in two pipeline systems, the Alliance Pipeline
and the Alberta Ethane Gathering System; an NGL extraction business which
includes a significant interest in a world-class extraction facility near
Chicago; and a power business with cogeneration facilities in Ontario,
Colorado and California, district energy systems in Ontario and Prince Edward
Island and waste heat power facilities along the Alliance Pipeline. Fort
Chicago and its businesses are also actively developing a number of greenfield
investment opportunities that will be a key source of future growth, including
LNG and pipeline facilities on the U.S. west coast, Alberta-based ethane and
NGL extraction facilities, repowering and expansion opportunities at the
California power facilities and Nova Scotia-based underground natural gas
storage and pipeline facilities.

    
                     Class A Unit Ownership Restrictions

    Fort Chicago is organized in accordance with the terms and conditions of a
limited partnership agreement which provides that no Class A Units may be held
by or transferred to, among other things, a person who is a "non-resident" of
Canada, a person in which an interest would be a "tax shelter investment" or a
partnership which is not a "Canadian partnership" for purposes of the Income
Tax Act (Canada).

    (TM) denotes trademark of Canaccord Capital Corporation.
    




For further information:

For further information: Stephen H. White, President and C.E.O., Fort
Chicago Energy Partners L.P., Livingston Place, Suite 440, 222 - 3rd Avenue
S.W., Calgary, AB, T2P 0B4, Phone: (403) 296-0140, Fax: (403) 213-3648,
www.fortchicago.com

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