EXTERNAL EXPERT TO REVIEW GROUNDWATER DATA

Data on groundwater levels and water quality near Vanscoy will be reviewed by an independent expert. This review will happen before a final decision is made on the continuation of a major project to develop underground storage caverns for natural gas near Saskatoon.

Harm Maathuis is an expert in groundwater with the Saskatchewan Research Council. He has been contracted by the Saskatchewan Watershed Authority to prepare a report on the viability of a TransGas project which uses groundwater to dissolve underground salt deposits to develop caverns. These caverns would then be used to store natural gas to meet the anticipated energy needs of the Saskatoon region.

"I am very pleased that Mr. Maathuis has agreed to review and analyze the data on this project," Watershed Authority Minister David Forbes said. "I want to thank the Grandora Water Committee for their assistance in selecting Mr. Maathuis and the Saskatchewan Research Council to conduct this review."

Some residents of the Grandora and Vanscoy area had expressed concern that the high rate of water use by TransGas was having an adverse effect on water levels and water quality in local wells.

At the request of the Watershed Authority, TransGas advanced the date of a planned three month shutdown to assist in the impact assessment. No further groundwater has been pumped since Dec. 13th, 2004. TransGas and the Watershed Authority have been gathering data from a series of observation wells in the area.

-30-

For More Information, Contact:

Nolan Shaheen, P.Eng., P.Geo. Saskatchewan Watershed Authority Moose Jaw Phone: (306) 694-3963 Email: nolan.shaheen@swa.ca Cell: (306) 230-1632