Phone (306) 566-3111 / Fax: (306) 5663111 / /

email mgulkstiechk@saskpower.com

SaskPower

January 20, 2003

Via Registered Mail

Gerald Regnitter

P.O. BOX 289

Christopher Lake, SK.

SOJ 0N0

Dear Sir:

Re: PA8 138 KV Transmission Line LSD I & 2 of SE 16-53-26 W2

Your letter of January 11, 2003 to Mr. Wright has been referred to me for response.

SaskPower has reviewed your proposed conditions regarding an agreement between yourself and SaskPower with respect to the construction, operation, and maintenance of the PA8 powerline. We are of the opinion that your proposed conditions are substantially unreasonable. Therefore, SaskPower is unable to consent to your proposed conditions.

Given the very precarious power supply to northern Saskatchewan, it is imperative that construction of the line proceeds forthwith. 'the project cannot be delayed any further Surveying and tree harvest will proceed on your land pursuant to the provisions of

Section 33 of The Power corporation Act sometime in the next few weeks. We have attached a copy of section 33 of The Power Corporation Act for your reference.

SaskPower, as has been clearly stated before, will abide by the conditions set out in the January 17, 2002, Saskatchewan Environment (then SERM) letter addressed to Mi-. Robert Stedwill which you refer to in your letter and which set out the line construction parameters. The purpose of these conditions, as you know, is to minimize environmental impact.

Warren Folwark will be in contact with you to discuss disposition of trees and fence location. Please direct any inquiries regarding this matter to Mr. Folwark at 566-3015.

Yours truly,

Myron (Iulka--Tiechko

General Counsel and Assistant Secretary

cc. John Wright

Warren Folwark