Thank you, Mr. Chairman. Mr. Chairman, the bill that's before Members will give us some flexibility in how we go and get our fuel. But ultimately what we're faced with is paying the price of the product when it is delivered in the tanks, and beyond that there is no more flexibility because the policy we have set in place now is that we have to pay for the actual product that is delivered. We're still not charging for the capital that's

there, the tankage and so on. But for the product delivered, we're having to recover actual costs. So that's what the Member's communities are feeling.

All communities served by the petroleum products division is the fact that we have to pay for the actual landed costs in communities when it is delivered. So those communities that receive it by barge, once it's soft-loaded off the barge into the tanks, we're given a bill. Those that are by ice road, again it's delivered from the trucks into the tanks. What we've been faced with in the past, and even felt it more so this past fall, was the fact that the prices were climbing considerably and by the time we were delivered into our facilities, there were some significant jumps in previous years. There's good and bad to that, I guess one can say. The fact that if you're in a private sector community there's some fluctuation, as their tanks are emptied and refilled, that they can lower their prices to compete; whereas, in our situation, we have to pay the actual cost of the product. We have a very small margin of flexibility when it comes to carrying over any surplus or over-expenditure.

What we're hoping to do with this bill is that when we go out to get the product, if we see that the market is fluctuating quite significantly, we can do some fuel swap transactions as laid out and potentially have some savings there by pre-purchasing fuel on future markets that would allow us then to have a savings when we actually have it delivered. So that's the one thing this can help us in delivering the product to communities and hopefully creating a somewhat more stable environment than we are faced with today, because today's practice is it's a rack price and it's at the time of delivery and we have to bill for the fuel that is delivered at that time.

The concern about Members knowing that there is some fuel still in some of the tanks and when we refuel we increase our price, what happens is there's a measurement. We know how much fuel is in the tanks, when they're refuelled and that fuel at the old price is blended with the new price. So there's an average between the two. It's not automatically just paying the higher cost for the full volume. It is blended. Thank you.