Fort Chicago announces monthly cash distribution for February 2009


    Trading Symbol: FCE.UN
    Exchange: TSX

    CALGARY, Feb. 18 /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 February 2009 of $0.0833 per Class A limited partnership unit
of Fort Chicago ("Class A Unit"). The distribution will be paid on March 23,
2009 to unitholders of record at the close of business on February 27, 2009.
    Of this distribution, $0.0053 per Class A Unit will be considered U.S.
source interest income and $0.0212 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 $0.0568 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. 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

    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. 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 a 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
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).

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,

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