PanCanadian calls it quits in Butte

EnCana will close its Butte PanCanadian office with its 55 workers offered positions at other properties or severance packages.

By Leslie McCartney, of The Montana Standard

The announcement from EnCana, a combined company of PanCanadian and Alberta Energy, came Wednesday afternoon by EnCana Oil and Gas
USA Inc. President Roger Biemans and ended speculation surrounding the Butte oil and gas office.
The news saddened employees as well as local officials as the news filtered through the commu nity late Wednesday.

“ We are obviously disappointed in their deci sion and the negative impacts that our communi ty will see,” said Kathy Fasso, Butte-Silver Bow
economic development director.
Officials had lobbied hard to keep the office, located at 600 S. Excelsior, intact with its good paying jobs.

EnCana officials said they expect that the transition will take about six months. A final date for the office closure was not announced, although the
company will likely need the leased building until at least the end of the year.

“ A decision like this is driven on business merit,” said Scott Ranson, a spokesman for EnCana in Calgary, Alberta. “ It doesn’t come easi ly,
especially when a community has been as wel coming as Butte. But the landscape has changed with the merger. This is not an easy process, but a
necessary one.”

Ranson also said that other commitments, such as oil and gas properties in northern Montana and subsequent investments, remain intact. About 30
employees will remain in Montana to care for those assets and company business. PanCanadian invested approximately $40 million in Montana
during the year 2000, Ranson said.
Most employees choosing to stay with PanCanadian will relocate to its Denver office. Ranson said that the move to consolidate employ ees in one
office makes sense, given the nature of the merger. He added that employees will be given relocation offers or severance packages next week.

“ We are trying to put these people in closer contact with each other. This is a reflection of the shift in properties that occurred during the merg er,”
Ranson said.
PanCanadian acquired its Butte oil and gas business when Montana Power put that business up for sale and the Calgary-based company bought it
in August 2000.

Also on Wednesday, EnCana announced that it had expanded its holdings by purchasing natural gas assets in Colorado from the El Paso Corp. for
$272 million.

— Reporter Leslie McCartney may be reached at leslie.mccartney(at)(at)mtstandard.com.

http://www.mtstandard.com/newslocal/1news.html