Review of Consolidated Results

Non-Production Costs

Non-production costs consist primarily of development expenditures relating to capital programs, which are expensed, such as: research and development, commissioning costs, pre-feasibility engineering, technical and support services, and regulatory and stakeholder consultation expenditures. Non-production costs decreased to $70 million from $85 million in 2006 and 2005, respectively, as there were fewer costs related to the commissioning and start-up of Stage 3 with the completion of that project earlier in 2006. In the prior year, the project was nearing completion and additional costs were being incurred as more of the units associated with the project were being commissioned.