Notice

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March 31, 2008 Attn: Pan-Alberta Gas Pool Producers Dear Sir/Madam: I would like to take this opportunity to update you as to Pan-Alberta's involvement in the Northwest Pipeline Colorado Interconnect project. Northwest Pipeline has been successful in marketing all of the project's capacity. As a result, Northwest Pipeline has advised Pan-Alberta that it is willing to accept the relinquishment of 99,838 Dth/d of Pan-Alberta's contracted Northwest Pipeline service at no cost to Pan-Alberta. Appropriate amendments have been made to our service contract reflecting Pan-Alberta's relinquishment, with the relinquishment to occur upon expiration of our short-term assignments of such service in November and December of 2008. We are pleased with this result as relinquishment of the capacity ensures that Pan-Alberta will have no further obligation or liability with respect to the relinquished capacity. The current toll with respect to the service is US$ 0.37984/Dth. Prior to the opportunity to relinquish the capacity, the service was contracted by Pan-Alberta to October 31, 2012. Pan-Alberta has been mitigating the demand charges associated with this service and has been successful in its efforts to date. However, there is no guarantee on a go-forward basis with respect to mitigation efforts and this relinquishment in late 2008 in effect is tantamount to mitigation at maximum rates for the balance of the term. The relinquishment of this service ensures that monies will go to the producers through the monthly netback and not to Northwest Pipeline in payment of demand charges, less mitigation contribution. Yours truly, PAN-ALBERTA GAS LTD. Howard Ward Chairman of the Board