BCSC

Exemption Orders (Discretionary)

FORDING INC.

2001 BCSECCOM 905

Headnote

Mutual Reliance Review System for Exemptive Relief Applications – National Instrument 43-101 – Relief granted from the requirement in subsection 4.1(1) to file a current technical report for each material property upon becoming a reporting issuer – issuer to become a reporting issuer as a result of a plan of arrangement where an existing reporting issuer splits its five business units into five separate reporting issuers.

Applicable British Columbia Provisions

National Instrument 43-101 Standards of Disclosure for Mineral Projects, ss. 4.1(1) and 9.1(1)

IN THE MATTER OF THE SECURITIES LEGISLATION OF THE PROVINCES OF BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA, ONTARIO, QUÉBEC, NEW BRUNSWICK, NOVA SCOTIA AND PRINCE EDWARD ISLAND

AND

IN THE MATTER OF THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF FORDING INC.

MRRS DECISION DOCUMENT

WHEREAS the local securities regulatory authority or regulator (the “Decision Makers”) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia and Prince Edward Island (the "Jurisdictions") has received an application from Fording Inc. (the "Filer") for a decision under the securities legislation of the Jurisdictions (the "Legislation") that the requirements contained in the Legislation to file a current technical report for each material property (the “Technical Report Requirement”) will not apply to the Filer upon becoming a reporting issuer in the Jurisdictions;

AND WHEREAS under the Mutual Reliance Review System for Exemptive Relief Applications (the “System”), the Alberta Securities Commission is the principal regulator for this application;

AND WHEREAS the Filer has represented to the Decision Makers that:

1. Canadian Pacific Limited (“CPL”) has begun the process of spinning off certain of its wholly owned subsidiaries (the “Transaction”) including the Filer, pursuant to an announcement made by CPL on February 13, 2001;

2. the Transaction will for the first time render the Filer a reporting issuer as defined in the Legislation;

3. the Filer has an existing record of public disclosure in the following forms:

3.1 CPL’s continuous disclosure of material facts relating to its five subsidiary operating companies, of which the Filer is one, since at least 1996;

3.2 the Filer’s annual reviews published in the style of an Annual Information Form and made available to CPL shareholders since 1996; and

3.3 the presentation in CPL’s most recent AIF of the Filer’s estimates of its reserves and resources in accordance with the Legislation and Paper 88-21 of the Geological Survey of Canada: A Standardized Coal Resource/Reserve Reporting System for Canada, as required by the Legislation;

4. the Filer will shortly file and distribute its Initial AIF featuring disclosure of its reserves and resources in accordance with the Legislation and Paper 88-21 of the Geological Survey of Canada: A Standardized Coal Resource/Reserve Reporting System for Canada, as recommended by the Legislation;

AND WHEREAS under the System this MRRS Decision Document evidences the decision of each Decision Maker (collectively, the “Decision”);

AND WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Makers with the jurisdiction to make the Decision has been met;

THE DECISION of the Decision Makers under the Legislation is that the Filer is exempt from the Technical Report Requirement.

DATED at Edmonton, Alberta on August 28, 2001.

Agnes Lau, CA
Deputy Director, Capital Markets