McLennan News Kevin Laliberte For The Smoky River Express. Bluesky Upgrader: "If you build it, they will come!" By Kevin Laliberte. September 27,2006 "If you build it, they will come." It's a line most people commonly associated with the movie "Field of Dreams," but one that's taken on a new meaning here in the Smoky River region as anxious municipalities prepare for a positive growth spurt in relation to Peace River Oil's $1.4-billion Bluesky Upgrader at Kathleen. "We're here tonight to show our full commitment to communities in this region," proclaimed Don Allan, president and chief executive officer for Peace River Oil, at a packed open house in McLennan on Sept. 19. The event, initiated by the Red Deer company to bring residents in the region up to date on proposed plans for the oil upgrader/diesel refinery facility just south of McLennan, focussed on a number of key issues. They ranged in nature from the company's desire to involve local industry-related companies whenever possible for various aspects of the construction project, to infrastructure growth and demand in area communities, investment opportunities, staff training initiatives, land acquisition and the development of a pipeline along the McLennan to Peavine connector route. Peace River Oil's interest in the road remains a key aspect of the overall project blueprint, providing a valuable link to oilfield activity in the Seal Lake area. "Our objective is to put our pipeline infrastructure in place right along the connector route," Allan explained at the meeting, adding that it would benefit oil companies seeking opportunities to utilize the upgrader via the pipeline. Alberta Sustainable Resource Development recently approved the project (in principle) for construction of a 32-kilometre all-weather access road bridging the two communities. Partner municipalities are seeking a 75/25 per cent cost-sharing split from the Government of Alberta to subsidize the project. That breakdown, if approved, would see the province absorb about $4.5-million of the overall $6-million price tag with the remaining balance ($1.5-million) falling in the laps of partnering municipalities. Both McLennan and the Municipal District of Smoky River recently approved a funding formula to contribute $150,000 and $600,000 respectively towards the cost of the road over a period of three years. The Peavine Metis Settlement is being asked to contribute the remaining $750,000. Those figures could be reduced dramatically with the addition of support funds through companies such as Peace River Oil, which has expressed an interest to pitch in financially. "We have a vested interest in the development of this road and will be making some sort of financial contribu tion," says Allan. As far as the Bluesky Upgrader is concerned, Allan says his company is working very closely with affected landowners in close proximity to the plant in an effort to finalize fair buyout packages which will give Peace River Oil the property it needs to move forward with the final three phases of the project. "We're working on it as we speak," says Allan. "It's a big project and we realize there's going to be some inconveniences along the way as we move forward. That's why we're here tonight... to get all of the concerns out in the open by sitting down and working together." Allan also confirmed Peace River Oil's intention to issue an offering memorandum to potential smaller investors in the region following a request from Fattier businessman John Nicolet earlier this month. "We are going to do a small offering, hopefully prior to Christmas with any luck, which will give all local people an opportunity to invest in this project," Allan said, using a ballpark figure of between $10-million and $12-million as the projected local investment cap. Another topic to emerge at the meeting included the need to have adequate post-secondary programs in place locally-**" which tie in with staffing requirements at the upgrader while encouraging the region's young people to remain in the area. "We're strong believers in the value of education and hiring locally," said Allan, adding that Peace River Oil plans to offer industry-related bursaries as an incentive to keep young people in the area. His comment was music to the ears of McLennan Town Councillor Laurent Lamoueux, who received a thunderous round of applause from the crowd when he stated: "This plant will provide our region with employment opportunities which ensure our children never have to move away from the area again." Email:   twnmcl@serbernet.com