Gerald Regnitter at Friendly Forest

Box 289 Christopher Lake, Saskatchewan S0J 0N0

January 6, 2003

John Wright, President & CEO SaskPower

2025 Victoria Avenue Regina, Sask. S4P 0S1

Mr. Wright:

I received your letter dated December 27, 2002 a few days ago. Although you clarified for me that Warren Folwark does not have signing authority on behalf of SaskPower with regard to agreements with landowners in regard to the PA 8 Rebuild Project, it was not clear from your letter how final authoritative agreements are made with SaskPower.

You refer to the "offered compensation" for granting of an easement or for a temporary work space agreement and that a "reasonable compensation" has been offered for the merchantable timber to be taken from my property. I also note your suggestion that I forward a draft revision of an agreement to Mr. Folwark for consideration. This reflects an element in a letter from Mr. Folwark dated December 23 which I received at the end of December.

This letter is to inform you that I am in the process of drafting a document which will indicate the elements of an agreement that I deem to be "reasonable compensation" and appropriate considerations in view of the Saskatchewan Evnironment conditions applied to this project in a letter to SaskPower on January 11, 2002.

Considering that SaskPower has taken nearly 11.5 months to make its FIRST contact with landowners affected by the project in this forest area, Mr. Folwark's comment at the end of his letter that the work is scheduled to begin January 6, 2003 seems highly unreasonable on the part of SaskPower.

I have made inquiries of Mr. Randy Seguin of Sask Environment to obtain clarifications on some of the points he laid on as conditions to SaskPower in his January 11, 2002 letter, and he has contacted Chris Dunn from the Prince Albert office to make further contact with me to answer some questions that are within his jurisdiction. I have not yet heard from Mr. Dunn and am unable to formulate some of my agreement expectations until that happens.

I also need information from Sask Environment Forestry Branch with regard to another question I had of them.

I wish to affirm that it is my intention to reach an agreement with authorized individuals who can represent SaskPower in this matter which will permit SaskPower to carry out its approved tasks and which will limit environmental damage as far as possible now and during the continued life of the line, and which will be a reasonable compensation to me for damages incurred by me as the landowner.

I will forward to Mr. Folwark and to you a copy of the agreement elements that I believe are reasonable and which I wish to see in any final agreement between me and SaskPower and which will then be able to be submitted to your legal department to create a draft agreement. I am not a lawyer and will not pretend to be skilled enough to create the final wording of a sound agreement that meets your objectives as well as mine.

When your legal department has created such a draft document, I will review it with my legal representation here in Prince Albert.


Gerald Regnitter at Friendly Forest

CC: Mr. Kris Eggum, Eggum Abrametz & Eggum 101 - 88 13th Street East Prince Albert, Sask. S6V 1C6 Mr. Warren Folwark 5NE - 2025 Victoria Avenue Regina, Saskathewan S4P 0S1


Letter to SaskPower confirming my intention to reach a mutually acceptable agreement