Energy Trusts Pursue Their Case in the Senate

    CALGARY, June 20 /CNW/ - June 20, 2007: Canada's energy trusts presented
a strong case to the Senate outlining why the government's so called Tax
Fairness Plan is simply wrong and should not be advanced in the budget.
    Both the Coalition of Canadian Energy Trusts (CCET) and the Canadian
Energy Infrastructure Group (CEIG) independently presented to the Senate of
Canada Committee on National Finance a compelling case why the tax changes
will have a strong negative impact on trusts and, in turn, continue to
financially harm millions of hard working Canadians.
    Speaking on behalf of the CCET, Marcel Coutu, Co-Chairman of CCET and
President and CEO of Canadian Oil Sands Trust, highlighted:

    -   The Coalition has presented an in-depth report outlining the
        importance of energy trusts and that the government's silence on this
        document suggests it is not refutable;
    -   The government heard from its own expert witness "inconvenient
        truths" noting the important role trusts play in the Canadian capital
        markets; and
    -   The Finance Minister is wrong with the opinion that income trust
        vehicles do not exist in the United States. Independent research from
        four months ago notes there were 214 publicly traded trust entities
        with a combined market cap of $475 billion and that this number has
        now grown to 225.

    Robert Michaleski, President and CEO of Pembina Pipeline Income Trust,
presented key points on behalf of CEIG:

    -   Canadians rely on infrastructure trusts for the delivery of half of
        their oil supply, and a substantive amount of natural gas liquids and
        natural gas are transported daily;
    -   The long-term infrastructure assets of trusts are similar to the
        model of REITs  (Real Estate Income Trusts) and should be given the
        same tax treatment; and
    -   The government's stated desire to be a world energy leader could be
        eroded by potential foreign take over of Canadian-managed and
        operated energy assets.

    Collectively the energy trusts agreed:

    -   Energy trusts do not cause tax leakage;
    -   Taxes are not avoided-they are transferred to and paid by the
        unitholders at generally higher tax rates;
    -   Energy trusts contribute substantively to Canada's energy security
        through enhanced production from mature fields and efficient
        transportation of products;
    -   US energy trusts in the form of MLPs and LLCs not only exist but are
        expanding rapidly; reversing the trend of cross-border acquisitions:

    The CCET and CEIG presentations concluded that energy trusts should be
excluded from the tax changes.

For further information:

For further information: Daorcey Le Bray, NATIONAL Public Relations,
(403) 531-0331,

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