Pembina Pipeline Acquires FSESLP Interest

On June 24, 2003, Pembina Pipeline Corporation acquired from NOVA Chemicals Corporation, a 50 per cent interest in Fort Saskatchewan Ethylene Storage Limited Partnership (FSESLP) for approximately $185 million. In connection with the sale, NOVA Chemicals renegotiated the storage arrangements and other ancillary agreements with FSESLP and Dow Chemical Canada Inc., the other co-owner and operator of FSESLP. Pembina Pipeline concurrently completed a $220 million issuance of 7.35 per cent convertible subordinated debentures.

Pembina Pipeline was represented by in-house counsel D.J. Watkinson, Q.C., and by Blake, Cassels & Graydon LLP with a team that included Dallas Droppo, Ben Rogers and Scott Hyndman (corporate), Paul Jeffrey (environmental and regulatory), Warren Nishimura (banking) and Ross Bentley (securities).

NOVA Chemicals was represented in-house by Jack Mustoe, senior vice-president and general counsel, and Ron Kemle, senior corporate counsel, and by Osler, Hoskin & Harcourt LLP with a team that included Mark Smith, Peter Piliounis and Martin Mix (corporate/securities) and Michael Hart (banking). Dow Chemical was represented by in-house counsel Mark Bradley, and by Burnet, Duckworth & Palmer LLP with a team that included Bill Winters and Alan Pettie.