Shell Canada Reports Settlement Involving 2003 Fire

Shell Canada announced on Monday that it has achieved final settlement with insurance underwriters on a loss of profit claim related to the Jan. 6, 2003 fire at the Muskeg River Mine.

Shell’s share of proceeds from the final settlement will be recorded in the second quarter of 2005, resulting in an after-tax earnings contribution of $82 million. Physical damage claims related to the fire were previously settled with insurers.

The Athabasca Oil Sands Project consists of the Muskeg River Mine located north of Fort McMurray, Alberta and the Scotford Upgrader located near Edmonton and is a joint venture among Shell Canada Limited (60 per cent), Chevron Canada Limited (20 per cent) and Western Oil Sands L.P. (20 per cent).