Imperial Oil Resources Ventures Limited 237 Fourth Avenue South West P.O.

Box 2480, Station "M" Calgary, Alberta Canada, T2P 3M9

Heather L. Marreck Mackenzie Gas Project Development Executive

Tel. (403) 237-4022 Fax. (403) 237-4265

December 17, 2013 National Energy Board 444 Seventh Avenue S.W. Calgary, Alberta T2P 0X8 Attention: Ms. Young: Re: Mackenzie Gas Project – Hearing Order GH-1-2004 Updated Cost Estimate and Report on Decision to Construct The National Energy Board stated in its Mackenzie Gas Project Decision (GH-1-2004, Volume 2, page 264) that: The proponents shall file updated cost estimates and report on their decision to construct by 31 December 2013. Pursuant to this requirement, on behalf of the Mackenzie Gas Project proponents, Imperial Oil Resources Ventures Limited is submitting an updated capital cost estimate which is summarized in the following table. This estimate reflects increased capital costs for material and labour since our last filing in 2007. The estimated capital costs have been rounded to the nearest $50 million. Estimated Capital Costs–($Millions, 2013 Cdn) Project Component Initial Future Mackenzie Gathering System Gathering pipelines 1,900 Inuvik area facility 1,700 NGL pipeline 1,350 4,950 Total Mackenzie Valley Pipeline Pipelines 9,100 Compression and other facilities 900 1,150 10,000 1,150 Total 14,950 1,150 Grand Total
Total 1,900 1,700 1,350 4,950 9,100 2,050 11,150 16,100

Via Electronic Filing and Courier

Ms. Sheri Young Secretary of the Board

The Mackenzie Gas Project proponents have not yet made a decision to construct the project because of the current natural gas market conditions. Sincerely, (original signed by) Heather L. Marreck Mackenzie Gas Project Development Executive

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