Mr. Cliff Grandison reports

ALASKA HYDRO ANNOUNCES ACCEPTANCE OF FORREST KERR WATER LICENCE APPLICATION

FrontCounter (British Columbia), on behalf of the Ministry of Forests Lands and Natural Resource Operations, has accepted Alaska Hydro Corp.'s applications for an investigative licence -- waterpower and a water licence on Forrest Kerr Creek in northwestern British Columbia.

The purpose of the application is to obtain a water licence and land tenure to construct a hydroelectric storage facility and diversion dam on Forrest Kerr Creek. The intended purpose of the diversion dam will be to redirect water from Forrest Kerr Creek through a 220-metre-long, 5.5-metre-diameter water tunnel and a 700-metre-long, seven-metre-wide channel into the More Creek watershed. The water diverted will be added to the More Creek discharge, resulting in an increase in energy produced by the More Creek hydroelectric generators.

The planned Forrest Kerr dam will be an earth-fill dam approximately 37 metres in height and 200 metres wide. It is projected to divert all flows in excess of 3.77 cubic metres per second of the 25.13-cubic-metre-per-second mean annual flow into the More Creek watershed.

The Forrest Kerr Creek diversion project is estimated to cost $35-million and is projected to increase the energy produced by the More Creek hydroelectric generators by 104 gigawatt-hours on average annually. It is estimated to add approximately $10-million additional revenue to the company's More Creek project.

The company plans on further engineering and design work on the More Creek project in order to optimize the cost of construction and revenue potential. The Forrest Kerr Creek diversion project is not incorporated into the More Creek project currently being permitted in order to maintain project momentum. The Forrest Kerr Creek diversion project will be treated as an expansion of the More Creek project in due course. Meanwhile, the More Creek project will be designed to accept future flows from Forrest Kerr.

We seek Safe Harbor.