Fort Chicago announces monthly cash distribution for September 2007



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

    Trading Symbol: FCE.UN
    Exchange: TSX

    CALGARY, Sept. 19 /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 September 2007 of $0.0775 per Class A limited partnership
unit of Fort Chicago ("Class A Unit"). The distribution will be paid on
October 23, 2007 to unitholders of record at the close of business on
September 28, 2007.
    Of this distribution, $0.0049 per Class A Unit will be considered U.S.
source interest income and $0.0726 per Class A Unit will be considered U.S.
source dividend income, each of which may be subject to 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 85% to
100% in 2007. No portion of this distribution will be eligible for
reinvestment under the Premium Distribution, Distribution Reinvestment and
Optional Unit Purchase Plan.
    U.S. source dividends and U.S. source interest received by tax exempt
unitholders should not be subject to U.S. withholding tax under the income tax
treaty between the United States and Canada (the "Treaty"). U.S. source
interest received by taxable unitholders owning less than 10% of Fort
Chicago's Class A Units, should be exempt from U.S. withholding tax under what
is referred to as the portfolio interest exemption. If a taxable unitholder
does not qualify for this exemption, they should qualify for a reduced U.S.
withholding tax rate of 10%. U.S. source dividends received by taxable
unitholders should qualify for a reduced U.S. withholding tax rate of 15% (5%
for certain corporate unitholders owning more than 10% of Fort Chicago's Class
A Units). If neither the reduced Treaty rates nor the portfolio interest
exemption apply, all U.S. source income for U.S. tax purposes will be subject
to U.S. withholding tax at the statutory rate of 30%. Subject to certain
limitations, Unitholders paying U.S. withholding tax are entitled to claim a
foreign tax credit. If you are unsure of the taxable status of your account or
are currently subject to the statutory withholding tax 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 so that you are eligible to take advantage of the reduced Treaty
rates.

    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 Dominion Bond Rating Service and
Standard & Poor's of STA-2 (low) and SR-2, respectively. Together with its
affiliates, Fort Chicago presently owns:

    
    (i)    a 50.0% interest in the Alliance Pipeline, a 3,000 kilometre
           mainline natural gas pipeline, which extends from northeastern
           British Columbia to delivery points near Chicago, Illinois;

    (ii)   an approximate 42.7% interest in Aux Sable and Alliance Canada
           Marketing. Aux Sable operates natural gas liquids extraction,
           fractionation and delivery facilities near Chicago;

    (iii)  a 100% interest in the Alberta Ethane Gathering System, a 1,324
           kilometre ethane pipeline system, which delivers ethane feedstock
           to Alberta's petro-chemical industry; and

    (iv)   a 100% interest in two gas-fired cogeneration power facilities in
           California, a district energy system located in Charlottetown,
           Prince Edward Island and a district energy system located in
           London Ontario.
    

    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, an
Alberta-based ethane extraction facility, an NGL extraction facility capable
of processing off-gas produced by Alberta's oil sands upgraders, two
co-generation power facilities situated in Ontario, repowering and expansion
opportunities at the California power facilities, waste heat power facilities
along the Alliance Pipeline and a Nova Scotia-based underground natural gas
storage facility.

    
                     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
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).

    Certain information contained herein relating to, but not limited to,
Fort Chicago and its Pipeline and NGL businesses constitutes forward-looking
information under applicable securities laws. All statements, other than
statements of historical fact, which address activities, events or
developments that we expect or anticipate may or will occur in the future, are
forward-looking information. Forward-looking information typically contains
statements with words such as "may", "estimate", "anticipate", "believe",
"expect", "plan", "intend", "target", "project", "forecast" or similar words
suggesting future outcomes or outlook. The following discussion is intended to
identify certain factors, although not necessarily all factors, which could
cause future outcomes to differ materially from those set forth in the
forward-looking information. The risks and uncertainties that may affect the
operations, performance, development and results of our businesses include,
but are not limited to, the following factors: the ability of Fort Chicago to
successfully implement its strategic initiatives and achieve expected
benefits; the status, credit risk and continued existence of customers having
contracts with Alliance, Aux Sable or AEGS; the availability and price of
energy commodities; fluctuations in foreign exchange and interest rates; the
regulatory environment; competitive factors in the pipeline and NGL
industries; and the prevailing economic conditions in North America. The
reader is cautioned that these factors and risks are difficult to predict and
that the assumptions used in the preparation of such information, although
considered reasonably accurate by Fort Chicago at the time of preparation, may
prove to be incorrect or may not occur. Accordingly, readers are cautioned
that the actual results achieved will vary from the information provided
herein and the variations may be material. Readers are also cautioned that the
foregoing list of factors and risks is not exhaustive. Additional information
on these and other risks, uncertainties and factors that could affect Fort
Chicago's operations or financial results are included in our filings with the
securities commissions or similar authorities in each of the provinces of
Canada, as may be updated from time to time. There is no representation by
Fort Chicago that actual results achieved will be the same in whole or in part
as those set out in the forward-looking information. Furthermore, the
forward-looking statements contained herein are made as of the date hereof,
and Fort Chicago does not undertake any obligation to update publicly or to
revise any forward-looking information, whether as a result of new
information, future events or otherwise. Any forward-looking information
contained herein is expressly qualified by this cautionary statement.
    Certain financial information contained in this news release may not be
standard measures under Generally Accepted Accounting Principles ("GAAP") in
Canada and may not be comparable to similar measures presented by other
entities. These measures are considered to be important measures used by the
investment community and should be used to supplement other performance
measures prepared in accordance with GAAP in Canada. For further information
on non-GAAP financial measures used by Fort Chicago see Management's
Discussion and Analysis, in particular, the section entitled "Non-GAAP
Financial Measures" contained in the annual Management Discussion and
Analysis, filed by Fort Chicago with Canadian securities regulators.




For further information:

For further information: Stephen H. White, President and C.E.O., Hume D.
Kyle, Vice President, Finance and C.F.O., Fort Chicago Energy Partners L.P.,
Stock Exchange Tower, 2150, 300 Fifth Avenue S.W., Calgary, AB, T2P 3C4,
Phone: (403) 296-0140, Fax: (403) 213-3648, www.fortchicago.com

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