Kerrobert

AltaGas Services acquired a 53-mile gas gathering system andrelated compression in the Kindersley area of Saskatchewan for C$3million. The acquisition of the Kindersley & Kerrobert gasgathering systems are a significant strategic addition to AltaGas’Central Border gas gathering and processing complex. With theaddition of these systems AltaGas’ contiguous presence in westcentral Saskatchewan is 56 miles east from the Alberta/Saskatchewanborder. This extensive area presence provides AltaGas withsignificant opportunity as producers are expected to substantiallyincrease gas drilling activity in this currently largelyundeveloped gas region. Since AltaGas’ first acquisition in thisarea in 1996, Central Border has increased from a 4 MMcf/dprocessing facility with 49 miles of gathering lines to an 81MMcf/d processing complex with more than 311miles of gatheringlines. With the addition of these new assets utilization of theCentral Border complex will be 78%.