Starting at 33 minutes 24 seconds of the webcast from the AGM last month:

"We are trucking our product to market. The way that we describe that is, 'we're putting wheels under the barrels,' so in the short term, we have wheels under the barrels, and in the medium term and in the long term we will have pipeline[s]. And our guys are working diligently on getting the best business decision on the pipelining approach. But in the meantime, because of some of the arbitrage opportunities in the marketplace and the ability to go to different marketplace[s], be that Hardisty, Edmonton, or Fort MacMurray, we're able to achieve the best price possible at the wellhead for bitumen."

- Pete Sametz, Executive VP & COO

Bitumen from the Great Divide is being sold in Hardisty, Edmonton, and Fort MacMurray. At the same time, bitumen is being purchased in Montana for MRC to process. The sale offsets the purchase (depending on relative quantities) so it is a physical hedge.

In the same way, Luke is producing gas from a number of wellheads. Those are piped into the North American NG grid with local tie-ins. At the same time, the Great Divide is consuming gas. Chances are not high that gas molecules from the Connacher/Luke wells are being physically burned to produce steam at the Great Divide, but the production offsets the purchases/consumption at the GD. The only factor that is an influence there, other than relative quantities produced and consumed, is the fact that there is a hedge price built into the sale price of the Luke gas ($10.05, I think?) which would come into effect any time that the market price for NG in Canada goes over that amount. Therefore, the hedge on the NG will not quite be perfect now that the prices are rising so quickly, but that shouldn't be a major factor until we start seeing NG at post-Katrina pricing levels.

Let me know if this needs clarification, or if you have any other questions.