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INTERPROVINCIAL PIPE LINE DIRECTORS APPROVE PLAN FOR CORPORATE REORGANIZATION

 INTERPROVINCIAL PIPE LINE DIRECTORS
 APPROVE PLAN FOR CORPORATE REORGANIZATION
 EDMONTON, Alberta, Jan. 22 /PRNewswire/ -- The board of directors of Interprovincial Pipe Line Inc. (NASDAQ-NMS: IPPIF; Montreal, Toronto: IPL) (IPL) today approved in principle a plan for corporate reorganization.
 The proposed reorganization is intended to provide regulatory segregation of the Canadian Main System and Sarnia-Montreal line from other IPL investments which would simplify and facilitate regulatory processes and changes to the regulation of IPL's tolls by the National Energy Board. The reorganization would also provide greater flexibility for the management of existing operations and future business opportunities which are either unregulated or regulated separately.
 "IPL is currently considering a number of investment opportunities which may be unregulated or regulated separately. These include a new refined products pipeline from the Quebec City area to Montreal and the possible retrofitting of an existing oil pipeline to transport natural gas," said Brian MacNeill, president and chief executive officer of IPL.
 "Any such investments are expected to remain consistent with IPL's focus on stable opportunities related to its current business," added MacNeill.
 The reorganization would create a new public corporation to hold the assets and liabilities currently owned and managed by IPL. The investments which would be segregated from the Canadian Main System and the Sarnia-Montreal line include: Interprovincial Pipe Line (NW) Ltd. in northern Canada; Lakehead Pipe Line Co. Inc. in the United States; and an office tower in Edmonton.
 IPL shareholders would become shareholders of the new public corporation and would retain effective interest in all IPL investments. The new public corporation would be listed on the same stock exchanges and is expected to maintain IPL's current level of quarterly dividend. The rights of IPL shareholders under the Coattail Agreement between IPL, GW Utilities Ltd. ("GW") and its subsidiary will continue as rights of shareholders of the new public corporation. The Coattail Agreement provides that for a period of two years commencing May 1, 1991 the shareholders of IPL will be entitled to participate in any offer made by an arm's length purchaser to buy all or substantially all of the shares of IPL owned by GW, IPL's major shareholder.
 It is proposed that the new corporation would have the same directors and officers as IPL. The reorganization would not result in any changes to the management or operations of the corporation's pipeline system. No increased costs to users of the system are anticipated to result from the proposed changes.
 The proposal will require approval by special resolution of shareholders of IPL which will be sought at the corporation's annual general and special meeting scheduled for May 6, 1992 in Edmonton. It will also be subject to the receipt of Canadian and United States tax rulings, court approval and any necessary regulatory approvals.
 Dominion Bond Rating Service and Canadian Bond Rating Service have both advised that they do not anticipate any change in the ratings of "A (high)" and "A" respectively, which they currently assign to the debt of Interprovincial, as a result of the reorganization.
 GW advised the board of directors that it supports the plan for reorganization and would vote in favour of it at the shareholders meeting.
 GW believes the reorganization will not delay its discussions with parties who are considering the acquisition of IPL. The benefits of the transaction are expected to enhance IPL and complement GW's discussions with such parties, although there can be no assurance that a proposal which is acceptable to GW will be received.
 IPL's common shares are traded in Canada on the Montreal and Toronto stock exchanges under the symbol "IPL" and in the United States on NASDAQ-NMS under "IPPIF".
 -0- 1/22/92
 /CONTACT: Len Bradley of Interprovincial Pipe Line, 403-420-8166/
 (IPPIF) CO: Interprovincial Pipe Line Inc. ST: Alberta IN: OIL SU:


AL -- LA025 -- 2365 01/22/92 13:40 EST
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Publication:PR Newswire
Date:Jan 22, 1992
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