Veresen Comments on Court Application Regarding the Jordan Cove Energy Project

Veresen Comments on Court Application Regarding the Jordan Cove Energy Project 
CALGARY, Aug. 18, 2014 /CNW/ - Veresen Inc. ("Veresen" or "the Company") (TSX: 
VSN) announced today that it has been named as a respondent in an application 
commenced by Energy Fundamentals Group Inc. ("EFG") in the Ontario Superior 
Court of Justice in Toronto on August 14, 2014.  In the application, EFG seeks 
a declaration that, pursuant to a letter agreement dated July 27, 2005 between 
EFG and Fort Chicago Energy Partners L.P., the predecessor to Veresen, EFG has 
the option to acquire up to 20% of Veresen's equity interest in the Jordan 
Cove liquefied natural gas ("LNG") terminal and related assets in Coos Bay, 
Veresen believes that the option held by EFG applied only to the prior 
proposal to build an LNG import terminal and is not valid with respect to the 
current proposed liquefaction and LNG export terminal.  Veresen further 
believes that even if the courts determine that the option is valid, the 
existence of the option and whether or not it is exercised are not expected to 
have a material impact on the Company. 
In 2005 when Veresen first considered the development of Jordan Cove LNG as an 
import terminal project, it entered into a previously disclosed agreement with 
EFG to provide financial advisory services, which included an option to invest 
up to 20% of the development and construction capital contributed, or to be 
contributed, to the project by Veresen.  If the option was exercised prior to 
construction, EFG would pay Veresen an amount equal to all development equity 
contributed prior to that time, together with a premium after-tax rate of 
return of 30% (compounded annually) on development equity from the time such 
costs were incurred.  Given the considerable development costs incurred by 
Veresen since 2005, and the premium return to be paid on such amounts, if 
valid, the exercise of the option by EFG would require a substantial payment 
to Veresen. 
The LNG import terminal project was designed to accommodate the import of 
foreign natural gas into North America.  With the dramatic and long-term 
change in North American supply of gas, the LNG import terminal project became 
commercially unviable.  As a result, the import project was terminated and the 
licenses associated with it were vacated.  Veresen commenced a new process to 
construct a liquefaction and LNG export terminal at the Jordan Cove site. 
About Veresen Inc. 
Veresen is a publicly-traded, dividend paying corporation based in Calgary, 
Alberta that owns and operates energy infrastructure assets across North 
America. Veresen is engaged in three principal businesses: a pipeline 
transportation business comprised of interests in two pipeline systems, the 
Alliance Pipeline and the Alberta Ethane Gathering System; a midstream 
business which includes ownership interests in a world-class natural gas 
liquids extraction facility near Chicago, the Hythe/Steeprock gas gathering 
and processing complex, and other natural gas and NGL processing energy 
infrastructure; and a power business focused on gas-fired, renewable and 
district energy facilities. Veresen is also actively developing a number of 
greenfield projects and regularly evaluates and pursues acquisition and 
development opportunities. 
Veresen's common shares, Series A preferred shares, Series C preferred shares, 
and 5.75% convertible unsecured subordinated debentures, Series C due July 31, 
2017 are listed on the Toronto Stock Exchange under the symbols "VSN", 
"VSN.PR.A", "VSN.PR.C" and VSN.DB.C", respectively. For further information, 
please visit 
Forward Looking Information 
Certain information contained herein relating to, but not limited to, Veresen 
and its businesses constitutes forward-looking information under applicable 
securities laws.  All statements, other than statements of historical fact, 
which address activities, events or developments that Veresen expects or 
anticipates may or will occur in the future, are forward-looking information.  
Forward-looking information typically contains statements with words such as 
"may", "estimate", "anticipate", "believe", "expect", "plan", "intend", 
"target", "project", "forecast" or similar words suggesting future outcomes or 
outlook.  Forward-looking statements in this news release include, but are not 
limited to, statements with respect to the validity of the EFG option 
agreement, the calculation and amount of the cost to exercise the EFG option, 
and the impact on the Company of the existence of the EFG option and whether 
the option is exercised or not. Additional information on risks, uncertainties 
and factors that could affect Veresen's operations or financial results is 
included in its filings with the securities commissions or similar authorities 
in each of the provinces of Canada, as may be updated from time to time.  
Readers are also cautioned that such additional information is not exhaustive. 
 The impact of any one risk, uncertainty or factor on a particular 
forward-looking statement is not determinable with certainty as these factors 
are independent and management's future course of action would depend on its 
assessment of all information at that time.  Although Veresen believes that 
the expectations conveyed by the forward-looking information are reasonable 
based on information available on the date of preparation, no assurances can 
be given as to future results, levels of activity and achievements.  Undue 
reliance should not be placed on the information contained herein, as actual 
results achieved will vary from the information provided herein and the 
variations may be material.  Veresen makes no representation that actual 
results achieved will be the same in whole or in part as those set out in the 
forward-looking information. Furthermore, the forward-looking statements 
contained herein are made as of the date hereof, and Veresen does not 
undertake any obligation to update publicly or to revise any forward-looking 
information, whether as a result of new information, future events or 
otherwise, except as required by applicable laws.  Any forward-looking 
information contained herein is expressly qualified by this cautionary 

SOURCE  Veresen Inc. 
Dorreen Miller, Director, Investor Relations, Phone: (403) 213-3633, Email: 
To view this news release in HTML formatting, please use the following URL: 
CO: Veresen Inc.
ST: Alberta
-0- Aug/19/2014 00:54 GMT
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