<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>3
<FILENAME>a2075015zex-1.txt
<DESCRIPTION>EXHIBIT 1
<TEXT>
<PAGE>








                               SUNCOR ENERGY INC.

                         2001 RECONCILIATION OF RESULTS
                         FROM CANADIAN GAAP TO U.S. GAAP
                      (ALL FIGURES ARE IN CANADIAN DOLLARS)



<PAGE>


CANADIAN AND UNITED STATES ACCOUNTING PRINCIPLES

The consolidated financial statements of Suncor Energy Inc. have been prepared
in accordance with Canadian generally accepted accounting principles (GAAP). The
measurement adjustments under U.S. GAAP result in changes to the Consolidated
Statements of Earnings and Consolidated Balance Sheets of the company as
follows:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
                                                                2001                    2000                      1999
-------------------------------------------------------------------------------------------------------------------------------
($ millions)                                               CDN        US            CDN         US           CDN        US
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>           <C>          <C>          <C>         <C>        <C>
REVENUES
  Sales & other operating revenues  (1) (8)                3,990        4,077        3,385        3,481       2,383      2,448
  Interest                                                     5            5            3            3           4          4
  Other income (8)                                             -           20            -            -           -          -
-------------------------------------------------------------------------------------------------------------------------------
                                                           3,995        4,102        3,388        3,484       2,387      2,387
-------------------------------------------------------------------------------------------------------------------------------
EXPENSES
  Purchases of crude oil and products                      1,391        1,391          807          807         519        519
  Operating, selling and general  (1) (2) (8)              1,010        1,148          918        1,036         774        791
  Exploration                                                 22           22           53           53          40         40
  Royalties                                                  134          134          199          199          99         99
  Taxes other than income taxes                              367          367          361          361         334        334
  Depreciation, depletion & amortization  (3)                360          365          365          372         318        318
  Gain on disposal of assets                                  (7)          (7)        (148)        (148)        (34)       (34)
  Write down of oil shale assets  (4)                         48          (71)         125          244           -          -
  Restructuring                                              (2)          (2)           65           65           -          -
  Start-up expenses- Project Millennium                      141          141           15           14           -          1
                                - Other  (5)                   -          (17)           -          (13)          -         31
  Interest (3)                                                18           62            8           40          26         59
-------------------------------------------------------------------------------------------------------------------------------
                                                           3,482        3,533        2,768        3,030       2,076      2,158
-------------------------------------------------------------------------------------------------------------------------------
                                                             513          569          620          454         311        294
EARNINGS BEFORE INCOME TAXES
-------------------------------------------------------------------------------------------------------------------------------
PROVISION FOR (RECOVERY OF) INCOME TAXES
  Current (8)                                                  4           (7)           45          45          29         29
  Future (3) (4) (5) (6) (8)                                  121         157           198         138          96         87
-------------------------------------------------------------------------------------------------------------------------------
                                                              125         150           243         183         125        116
-------------------------------------------------------------------------------------------------------------------------------
                                                              388         419           377         271         186        178
NET EARNINGS
  Dividends on preferred securities (3)                       (26)          -          (26)           -         (22)          -
-------------------------------------------------------------------------------------------------------------------------------
NET EARNINGS ATTRIBUTABLE TO COMMON SHAREHOLDERS              362         419           351         271         164        178
PER COMMON SHARE

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREHOLDERS
  Basic                                                      1.63        1.88          1.58        1.22        0.74       0.81
  Diluted                                                    1.61        1.86          1.57        1.21        0.73       0.80
-------------------------------------------------------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME, NET OF TAX
  Minimum pension liability (7)                               N/A         (28)         N/A           (2)        N/A          6
  Hedging activities  (8)                                     N/A          29          N/A            -         N/A          -
-------------------------------------------------------------------------------------------------------------------------------

OTHER COMPREHENSIVE INCOME                                    N/A           1           N/A         (2)         N/A          6
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Per share calculations, for both current and prior years, reflect a
two-for-one split of the company' common shares during 2000.


<PAGE>

<TABLE>
<CAPTION>
                                                            AS AT                              as at
                                                      DECEMBER 31, 2001                  December 31, 2000

                                                        ($ MILLIONS)                       ($ millions)

                                                    AS               U.S.              As               U.S.
                                                 REPORTED            GAAP           reported            GAAP
                                                ------------      ------------     ------------      ------------
<S>                                                 <C>               <C>              <C>               <C>
Current assets (8)                                    622               694              665               666
Capital assets, net (3)                             7,141             7,174            5,883             5,768
Deferred charges and
other (3) (7)                                         199               210              166               173
Future income taxes (3) (7)                           132               159              119               125
                                                ------------      ------------     ------------      ------------
Total assets                                        8,094             8,237            6,833             6,732
                                                ============      ============     ============      ============
Current liabilities (8)                               773               806              837               837
Long-term borrowings (3)                            3,113             3,649            2,192             2,716
Accrued liabilities and  other (2) (7)                251               336              252               277

Future income taxes (3)                             1,180             1,220            1,080             1,042

Equity:
 Share capital and retained earnings (3)            2,777             2,225            2,472             1,862
 Accumulated other comprehensive
 Income (7) (8)                                       N/A                 1              N/A                (2)
                                                ------------      ------------     ------------      ------------
                                                    2,777             2,226            2,472             1,860
                                                ------------      ------------     ------------      ------------
Total liabilities and
  shareholders' equity                              8,094             8,237            6,833             6,732
                                                ============      ============     ============      ============
</TABLE>


(1)  Under U.S. GAAP (EITF 00 - 10, "Accounting for Shipping and Handling Fees
     and Costs"), amounts billed to customers for shipping and handling costs
     should be classified as revenues, and shipping and handling costs incurred
     that relate to amounts billed to customers should be classified as expenses
     in the earnings statement.

     The company's accounting policy is to classify shipping and handling costs
     incurred that relate to amounts billed to customers as follows:
     o    As "Operating, selling and general" for downstream refining and
          marketing operations; and
     o    Deducted from "Sales and other operating revenues" for upstream
          operations.
     The company's accounting policy is acceptable under Canadian GAAP, which
     does not specifically address accounting for shipping and handling costs.
     The impact of EITF 00 - 10, which is one of reclassification only and does
     not affect net earnings, is to increase 2001 "Sales and other operating
     revenues" and "Operating, selling and general" expenses by $95 million
     (2000 - $96 million; 1999 - $65 million).

(2)  Under Canadian GAAP, no compensation cost has been recognized in the
     consolidated statements of earnings for common share options granted to
     executives, certain employees and non-employee directors under the
     company's share option programs. Had compensation cost been determined on
     the basis of fair values in accordance with SFAS No. 123, "Accounting for
     Stock-Based Compensation", 2001 net earnings would have been lower by $9
     million (2000 - $7 million; 1999 - $5 million) and 2001 earnings per share
     would have been lower by $0.04 (2000 - $0.03; 1999 - $0.02).

     Under U.S. GAAP (Accounting Principles Board Opinion No. 25, "Accounting
     for Stock Issued to Employees"), compensation expense is also recorded,
     over the same vesting period, for the portion of awards payable in common
     shares to employees under the company's long-term employee incentive plans.

<PAGE>

     The impact of this GAAP difference is to decrease 2001 net earnings by $14
     million (2000 - $22 million; 1999 - nil). Since the common shares awarded
     under these plans are to be issued from treasury, the income tax impact on
     the company is nil.

(3)  Under Canadian GAAP, the preferred securities issued in 1999 are classified
     as share capital in the consolidated balance sheets and the interest
     distributions thereon, net of income taxes, are accounted for as dividends
     in the consolidated statements of changes in shareholders' equity. Under US
     GAAP, the preferred securities are classified as long-term borrowings in
     the consolidated balance sheets and the interest distributions thereon and
     the related income tax impact are accounted for in the consolidated
     statements of earnings. Under US GAAP, the portion of the preferred
     securities that is denominated in US dollars, U.S. $163 million, is valued
     at the exchange rate in effect at the year end.

     Under Canadian GAAP, issue costs of the preferred securities, net of the
     related income tax credits, are charged against share capital. Under US
     GAAP, issue costs are deferred on the consolidated balance sheets and
     amortized to earnings over the term of the related long-term borrowings.

     This difference in classification decreased 2001 net earnings by $28
     million after income tax recoveries of $23 million (2000 decreased net
     earnings by $31 million after income tax recoveries of $23 million; 1999 -
     decreased net earnings by $20 million after income tax recoveries of $17
     million). However, the interest distributions on the preferred securities
     above are eligible for interest capitalization under U.S. GAAP, resulting
     in an increase in 2001 net earnings of $9 million after future income taxes
     of $5 million (2000 - increased net earnings by $9 million after future
     income taxes of $6 million; 1999 - increased net earnings by $2 million
     after future income taxes of $2 million).

     The net effect of all of the above differences decreased 2001 net earnings
     by $27 million (2000 - $22 million; 1999 - $18 million).

     These preferred securities, which are publicly traded, had a fair value,
     based on quoted market prices, of $575 million at December 31, 2001 (2000 -
     $544 million; 1999 - $492 million).

     Under Canadian GAAP, the 2001 interest distributions of $48 million (2000 -
     $47 million; 1999 - $37 million) on the preferred securities are classified
     as financing activities in the consolidated statements of cash flows. Under
     U.S. GAAP (SFAS No.95, "Statement of Cash Flows"), the interest
     distributions and the 2001 amortization of issue costs of $3 million (2000
     - $7 million) are classified as operating activities.

(4)  Effective April 5, 2001, the company sold its interest in the Stuart oil
     shale project and, as a result, the company wrote off the carrying value of
     the interest.

     Under Canadian GAAP, the carrying value of the interest in the Stuart oil
     shale project is calculated as the estimated future cash flow from use
     together with its residual value, calculated on an undiscounted basis.

     Under U.S. GAAP (SFAS 121, "Accounting for the Impairment of Long-Lived
     Assets and for Long-Lived Assets to be Disposed of"), the carrying value of
     the interest in the Stuart oil shale project is calculated as the estimated
     net cash flows, but calculated on a discounted basis.

     As a result of this GAAP difference in the calculation of the carrying
     value of the interest in the Stuart oil shale project, the write down in
     2000 and the subsequent write off in 2001 of the carrying value of the
     interest is different under US GAAP. The impact of this GAAP difference is
     to increase 2001 net earnings by $64 million, after income taxes of $55
     million (2000 decrease net earnings by $64 million, after income tax
     recoveries of $55 million).

(5)  Under U.S. GAAP (AICPA Statement of Position 98-5, "Reporting the Costs of
     Start-Up Activities"), all costs relating to start-up activities are
     expensed as incurred. Under Canadian GAAP, certain costs relating to the
     company's start-up activities are initially capitalized and then amortized
     over the estimated useful lives of the related assets.

     Under Canadian GAAP, in 2001, the remaining costs associated with the
     Stuart oil shale project that were previously capitalized were written
     down. Under U.S. GAAP, these start-up costs were expensed in 1999.

<PAGE>

     These differences increased 2001 net earnings by $10 million after related
     income taxes of $7 million (2000 - increased net earnings by $8 million
     after related income taxes of $6 million; 1999 - decreased net earnings by
     $12 million after related income tax credits of $8 million).

(6)  In December 2000, the Canadian Federal Department of Finance released draft
     legislation that merged federal budget proposals announced earlier in the
     year. The draft legislation was enacted into law in June, 2001. Under
     Canadian GAAP, the budget proposals were considered to be substantially
     enacted at December 31, 2000. Accordingly, future income tax assets and
     liabilities at December 31, 2000 were measured taking into account the
     reduction in tax rates presented in the draft legislation.

     Under US GAAP, in accordance with SFAS 109 "Accounting for Income Taxes",
     changes in tax rates and tax laws are considered only after they have been
     enacted into law.

     The impact of this GAAP difference was to increase 2001 net earnings by $6
     million (2000 - decrease net earnings by $6 million; 1999 - nil).

(7)  Under U.S. GAAP (SFAS No.87, "Employers' Accounting for Pensions"),
     recognition of an additional minimum pension liability is required when the
     accumulated benefit obligation exceeds the fair value of plan assets to the
     extent that such excess is greater than accrued pension costs otherwise
     recorded. No such adjustment is required under Canadian GAAP.

     Recording the additional minimum liability affects the consolidated balance
     sheet only and has no impact on net earnings or cash flows. An intangible
     asset equal to the amount of any unamortized liabilities arising from plan
     amendments is recognized. Any excess of the additional minimum liability
     over the amount recognized as an intangible asset is recorded as a separate
     component of equity (net of any related income tax recoveries), and is
     included as a component of comprehensive income under SFAS No. 130,
     "Reporting Comprehensive Income".

     At December 31, 2001, an additional minimum pension liability of $52
     million (2000 - $3 million), an intangible asset of $12 million (2000 -
     nil) and other comprehensive income of $28 million (2000 - $2 million), net
     of income tax recoveries of $12 million (2000 - $1 million), was recognized
     under U.S. GAAP. The impact of this GAAP difference is to decrease 2001
     other comprehensive income by $28 million (2000 - decrease of $2 million;
     1999 - increase of $6 million).

(8)  Derivative Financial Instruments

     Effective January 1, 2001, the company adopted SFAS 133 "Accounting for
     Derivative Instruments and Hedging Activities", as amended by SFAS 138,
     (the Standards), which establishes accounting and reporting standards for
     derivative instruments, including certain derivative instruments embedded
     in other contracts, and for hedging activities. Generally, all derivatives,
     whether designated in hedging relationships or not, and excluding normal
     purchase and sales, are required to be recorded on the balance sheet at
     fair value. If the derivative is designated as a fair value hedge, the
     effective portions of the changes in the fair value of the derivative, and
     changes in the fair value of the hedged item attributable to the hedged
     risk, are recognized in the income statement. If the derivative is
     designated as a cash flow hedge, the effective portions of the changes in
     fair value of the derivative are recorded in other comprehensive income
     (OCI) and are recognized in the income statement when the hedged item is
     recognized. Accordingly, ineffective portions of changes in the fair value
     of hedging instruments are recognized in earnings immediately. Gains or
     losses arising from hedging activities, including the ineffective portion,
     are reported in the same earnings statement caption as the hedged item.
     Gains or losses from derivative instruments for which hedge accounting is
     not applied are reported in other income.

     In accordance with the transition provisions of the Standards, the company
     recorded the following after-tax cumulative adjustments on January 1, 2001:

      A decrease in OCI of $173 million, net of future income tax recoveries of
     $87 million and an increase in 2001 US GAAP earnings of $47 million net of
     future income taxes of $28 million. Assets increased by $89 million and
     liabilities increased by $274 million as a result of recording all
     derivative instruments on the consolidated Balance Sheet at fair value.



<PAGE>

     Commodity Price Risk
     The company periodically enters into derivative financial instrument
     contracts such as forwards, futures, swaps and options to hedge against the
     potential adverse impact of market prices for its petroleum and natural gas
     products. The company manages its Canadian dollar crude price exposure by
     entering into US dollar WTI derivative transactions and in some instances
     combines US dollar WTI derivative transactions and Canadian/US foreign
     exchange derivative contracts. The company has hedged future cash flows
     subject to commodity price risk for up to four years.

     Interest Rate Risk
     The company also periodically enters into derivative financial instrument
     contracts such as interest rate swaps as part of its risk management
     strategy to minimize exposure to changes in cash flows of interest bearing
     debt. The company has interest rate derivatives outstanding for up to two
     years classified as cash flow hedges.

     During 1996, the company entered into a cross currency swap transaction to
     convert its 7.4% Debentures to a 6.2% fixed interest rate U.S. dollar
     obligation of approximately $91 million. Later in 1996, the company entered
     into another cross currency interest rate swap transaction to convert the
     U.S. $91 million obligation back to a fixed rate Canadian $125 million
     obligation. The net effect of the two swap transactions was to reduce the
     effective interest rate on the debentures from 7.3% (7.4% coupon rate) to
     5.5%. The transactions did not qualify for hedge accounting. In 2001, the
     company monetized the two swap transactions and realized a gain of $5.7
     million of which, $4.9 million was deferred for Canadian purposes. The
     entire gain was recognized in current period earnings for US purposes.

     Inventory Monetization
     In 1999, the company sold inventory and subsequently entered into a
     derivative contract with an option to repurchase the inventory at the end
     of five years. The company realized an economic benefit as a result of
     liquidating a portion of its inventory. The derivative did not qualify for
     hedge accounting because the company did not have purchase price risk
     associated with the repurchase of the inventory. This derivative does not
     represent a US GAAP difference as the company records this derivative at
     fair value for Canadian purposes.

     During the year, the company settled early a long-term contract that was
     designated as a hedge under Canadian GAAP. Under US GAAP, the long-term
     contract was designated as a normal purchase and sale. Accordingly, the
     payment of $29 million was deferred for Canadian purposes and for US
     purposes, was recognized in current period earnings. For Canadian GAAP, the
     $29 million will be recognized in income as the hedged item is settled.

<PAGE>

     A reconciliation of changes in OCI attributable to derivatives and hedging
     activities is as follows:

<TABLE>
<CAPTION>
     ------------------------------------------------------------------------------------------------------
                                                                                         OCI
     ---------------------------------------------------------------------- -------------------------------
                                                                                     (millions $)
     ------------------------------------------------------------------------------------------------------
     <S>                                                                                             <C>
     Net derivative losses, net of $87 million future tax recoveries,
     arising from implementation of the Standards                                                    (173)
     ------------------------------------------------------------------------------------------------------
     Current period net hedging gains arising from cash flow hedges, net
     of $50 million future tax expense                                                                 79
     ------------------------------------------------------------------------------------------------------
     Net hedging losses at beginning of the period reclassified to earnings
     during the period, net of $62 million future tax recoveries
                                                                                                      123
     ------------------------------------------------------------------------------------------------------
     Total net hedging gain net of future tax of $13 million                                           29
     ------------------------------------------------------------------------------------------------------
</TABLE>

     During the year, assets increased by $93 million and liabilities increased
     by $44 million as a result of recording all derivative instruments on the
     consolidated Balance Sheet at fair value.

     The loss associated with hedge ineffectiveness on derivative contracts
     designated as cash flow hedges during the period was $25 million net of $12
     million tax. The company estimates that $3 million of hedging losses net of
     future tax recoveries of $2 million will be reclassified from OCI to
     current period earnings within the next 12 months as a result of forecasted
     sales occurring. There were no derivative instruments designated as fair
     value hedges.

     Implementation of the standards did not affect the company's cash flows or
     liquidity. The Standards are complex and subject to a potentially wide
     range of interpretations in their application. The FASB continues to
     consider several issues, and the potential exists for additional issues to
     be brought under its review. Therefore, if subsequent FASB interpretations
     of the Standards are different than the company's initial application, it
     is possible that the impact of the company's application of the Standards,
     as described above, will be modified.

RECENTLY ISSUED ACCOUNTING STANDARDS

ASSET RETIREMENT OBLIGATIONS

     In August 2001, SFAS No. 143, "Accounting for Asset Retirement Obligations"
     was issued. This statement changes the method and timing of accruing for
     costs arising from legal obligations associated with the retirement of
     tangible capital assets and the associated asset retirement costs. The
     company will evaluate the impact and timing of implementing SFAS 143, which
     must be adopted no later than January 1, 2003.

IMPAIRMENT OF LONG-LIVED ASSETS

     In August 2001, SFAS No. 144, "Accounting for the Impairment and Disposal
     of Long-Lived Assets" was issued. SFAS 144 supersedes SFAS No. 121,
     "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
     Assets to Be Disposed Of" but retains its fundamental provisions for
     recognition and measurement of impairment of long-lived assets to be held
     and used, and measurement of long-lived assets to be disposed of by sale.

     SFAS 144 also supersedes the accounting and reporting provisions of
     Accounting Principles Board Opinion No. 30, "Reporting the Results of
     Operations - Reporting the Effects of Disposal of a Segment of a Business,
     and Extraordinary, Unusual and Infrequently Occurring Events and
     Transactions" for segments of a business to be disposed of, but retains APB
     30's requirement to report discontinued operations separately from
     continuing operations and extends that reporting to a component of an
     entity that either has been disposed of or is classified as held for sale.
     The company will evaluate the impact of implementing SFAS 144, which must
     be adopted on January 1, 2002.

HEDGING RELATIONSHIPS

     In 2001, the Accounting Standards Board of the CICA approved a new
     Accounting Guideline, "Hedging Relationships", which deals with the
     identification, documentation and effectiveness of hedging

<PAGE>

     relationships for the purpose of applying hedge accounting. The Guideline
     is meant to codify certain best practices and, wherever possible, harmonize
     with certain requirements of U.S. GAAP, in particular SFAS No. 133,
     "Accounting for Derivative Instruments and Hedging Activities", as amended
     by SFAS No. 138. The company will evaluate the impact of implementing the
     new standard, which must be adopted no later than January 1, 2003.

FOREIGN CURRENCY TRANSLATION

     In 2001, the Accounting Standards Board of the Canadian Institute of
     Chartered Accountants approved amendments to CICA Handbook Section 1650,
     Foreign Currency Translation. The amendments to Section 1650, applicable
     for the company in fiscal 2002 with retroactive application, eliminate the
     deferral and amortization method for unrealized translation gains and
     losses on non current monetary assets and liabilities and require the
     disclosure of exchange gains and losses included in net income.

STOCK-BASED COMPENSATION

     In 2001, the Accounting Standards Board of the Canadian Institute of
     Chartered Accountants approved amendments to CICA Handbook Section 3870,
     Stock-Based Compensation and Other Stock-Based Payments. Under the
     amendments to Section 3870, stock-based payments to non-employees and
     direct awards of stock to employees and non-employees will be accounted for
     using a fair value method of accounting. The standard provides for the
     recognition of compensation expense based on fair values or a disclosure
     only basis of accounting. The standard is effective for years beginning on
     or after January 1, 2002. The company will apply this standard in fiscal
     2002 and has not yet determined the impact.

Implementation of the above noted accounting standards will not affect the
company's cash flows or liquidity.

OIL AND GAS DATA

     The following data supplements oil and gas disclosure in the company's
     Annual Report, and is provided in accordance with the provision of the
     United States Financial Accounting Standards Board's Statement No. 69. This
     statement requires disclosure about conventional oil and gas activities
     only, and therefore the company's oil sands activities are excluded.

     COSTS INCURRED

<TABLE>
<CAPTION>
                                                                        COSTS INCURRED
                                                               FOR THE YEARS ENDED DECEMBER 31,
                                                                                   ------------
                                                            2001             2000             1999
                                                            ----             ----             ----
                                                                         ($ MILLIONS)
<S>                                                          <C>              <C>              <C>
     Property acquisition costs
       Proved properties..................................     -                5                -
       Unproved properties................................    11               10               48
     Exploration costs....................................    35               40               64
     Development costs....................................    84               69               70
                                                             ---              ---              ---
                                                             130              124              182
                                                             ===              ===              ===
</TABLE>


      RESULTS OF OPERATIONS FOR OIL AND GAS PRODUCTION

<TABLE>
<CAPTION>
                                                                   RESULTS OF OPERATIONS FOR
                                                                     OIL AND GAS PRODUCTION
                                                                FOR THE YEARS ENDED DECEMBER 31,
                                                                                    ------------
                                                             2001             2000             1999
                                                             ----             ----             ----
                                                                          ($ MILLIONS)
<S>                                                          <C>              <C>              <C>
      Revenues
        Sales to unaffiliated customers...................   128              139               97
        Transfers to other operations.....................   207              183              153
                                                             ---              ---              ---
                                                             335              322              250
                                                             ---              ---              ---
      Expenses
        Production costs..................................    36               47               63
        Depreciation, depletion and amortization..........    61               68               76
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                                                   RESULTS OF OPERATIONS FOR
                                                                     OIL AND GAS PRODUCTION
                                                                FOR THE YEARS ENDED DECEMBER 31,
                                                                                    ------------
                                                             2001             2000             1999
                                                             ----             ----             ----
                                                                          ($ MILLIONS)
<S>                                                          <C>              <C>              <C>

        Exploration.......................................    31               63               52
        Gain on disposal of assets........................    (8)            (147)             (36)
        Restructuring costs...............................    (2)              65                -
        Other related costs...............................    21               25               21
                                                             ---              ---              ---
                                                             139              121              176
                                                             ---              ---              ---
     Operating profit before income taxes.................   196              201               74
     Related income taxes.................................   (79)            (103)             (33)
                                                            ----              ---             ----
     Results of operations from Natural Gas................  117               98               41
                                                             ===              ===              ===
</TABLE>

     The information noted above does not totally agree to the segmented
     information on page 51 of the company's annual report due to different
     classification of revenues and expenses,





<PAGE>


STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS FROM ESTIMATED
PRODUCTION OF PROVED OIL AND GAS RESERVES AFTER INCOME TAXES

     In computing the standardized measure of discounted future net cash flows
     from estimated production of proved oil and gas reserves after income
     taxes, assumptions other than those mandated by SFAS No. 69 could produce
     substantially different results. The Company cautions against viewing this
     information as a forecast of future economic conditions or revenues, and
     does not consider it to represent the fair market value of gas properties.
     Figures are based on year-end commodity prices, and are as follows:

<TABLE>
<CAPTION>
                                                                     2001         2000          1999
<S>                                                                  <C>          <C>           <C>
     Year end natural gas price assumptions (AECO - $/mcf)           3.55         13.52         2.90
</TABLE>

     Actual future net cash flows may differ from those estimated due to, but
     not limited to, the following:

     o    Production rates could differ from those estimated both in terms of
          timing and amount;

     o    Future prices and economic conditions will likely differ from those at
          yearend;

     o    Future production and development costs will be determined by future
          events and may differ from those at year end; and

     o    Estimated income taxes may differ in terms of amounts and timing due
          to the above factors as well as changes in enacted rates and the
          impact of future expenditures on unproved properties.

     The standardized measure of discounted future net cash flows is determined
     by using estimated quantities of proved reserves and taking into account
     the future periods in which they are expected to be developed and produced
     based on year-end economic conditions. The estimated future production is
     priced at year-end prices, except that future gas prices are increased,
     where applicable, for fixed and determinable price escalations provided by
     contract. At December 31, 2001, no such contractual arrangements existed.
     The resulting estimated future cash inflows are reduced by estimated future
     costs to develop and produce the proved reserves based on year-end cost
     levels. In addition, the Company has also deducted certain other estimated
     costs deemed necessary to derive the estimated pretax future net cash flows
     from the proved reserves including direct general and administrative costs
     of exploration and production operations and reclamation and environmental
     remediation costs. Deducting future income tax expenses then reduces the
     estimated pretax future net cash flows further. Such income taxes are
     determined by applying the appropriate year-end statutory tax rates, with
     consideration of future tax rates already legislated, to the future pretax
     cash flows relating to the Company's proved oil and gas reserves less the
     tax basis of the properties involved. At December 31, 2001, there were no
     legislated future tax rate changes. The future income tax expenses give
     effect to permanent differences and tax credits and allowances relating to
     the company's proved oil and gas reserves. The resultant future net cash
     flows are reduced to present value amounts by applying the SFAS No. 69
     mandated 10% discount factor. The result is referred to as "Standardized
     Measure of Discounted Future Net Cash Flows from Estimated Production of
     Proved Oil and Gas Reserves after Income Taxes".



<PAGE>

<TABLE>
<CAPTION>
                                                                    2001           2000          1999
                                                                    ----           ----          ----
                                                                               ($ MILLIONS)
<S>                                                                 <C>           <C>           <C>
     Future cash inflows..........................................  2,266          8,176         3,272
     Future production and development costs......................  (652)           (633)       (1,053)
     Other related future costs...................................  (283)           (175)         (133)
     Future income tax expenses...................................  (521)         (3,426)         (789)
                                                                    ----           -----         -----
     Future net cash flows.........................................  810            3,942        1,297
     Discount at 10 %.............................................. (370)          (2,009)        (548)
                                                                    ----            -----        -----
     Standardized measure of discounted future net cash
     flows  from estimated production of proved oil and gas
     reserves after income taxes...................................  440            1,933          749
                                                                     ===            =====        =====
</TABLE>

SUMMARY OF CHANGES IN THE STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH
FLOWS FROM ESTIMATED PRODUCTION OF PROVED OIL AND GAS RESERVES AFTER INCOME
TAXES

<TABLE>
<CAPTION>
                                                                              2001           2000          1999
                                                                              ----           ----          ----
                                                                                        ($ MILLIONS)
<S>                                                                          <C>             <C>           <C>
     Balance, beginning of year.............................................. 1,933           749           797
     Increase (decrease) in discounted future net cash flows:
       Sales and transfers of oil and gas net of related costs............... (297)          (275)         (192)
       Revisions to estimates of proved reserves:
          Prices.............................................................(3,055)         3,886          458
          Development costs................................................... (50)           (3)          (68)
          Production costs....................................................  (9)           55           (25)
          Quantities..........................................................  (2)          (363)         (175)
          Other............................................................... (16)          (237)         (81)
       Extensions, discoveries, and improved recovery less related costs......  23            177           46
       Development costs incurred during the period...........................  81            69            70
       Purchases of reserves in place.........................................  -             41            -
       Sales of reserves in place............................................. (1)           (989)         (130)
       Accretion of discount.................................................. 361            115           113
       Income taxes.......................................................... 1,472         (1,292)        (64)
                                                                              -----         -------        ----
     Balance, end of year..................................................... 440           1,933          749
                                                                               ===           =====          ===
</TABLE>


</TEXT>
</DOCUMENT>
