eotae _ sands = plant EDMONTON: CP- Shaareholders of Great Canadian Ol) Sands Ltd, of Edmonton, which built the first. commercialseale oil- in North _ America, approved Wed- . Resday merger with Sun Oll * Co, Ltd, of Toronto. _ merger forms Suncor, Inc., The mow the fifth-largest oil company in Canada. ae merger was approved at a special shareholders, meeting lasting longer than : anticipated after re inority “* ghareholders unhappy with the propos, freed a vote proules. Although the vote ap: Pere 2, The ‘Herald, Thursday, August 23, 1979 Canadian oil companies merge © ved the merger by 90.6 percent, an ea rlier vole by show of hands on a ficor motion calling for the ement of the merger was approved by 31 of the 55 regivered shareholders wen had expected the meeting to. be over by 11 o'elock"’a Suncor official said. -The meeting which started at 9:30 a.m. didn’t finish until 2 p.m. But the outcome of the meeting was never in doubt, as Sun Canada, a wholly- owned subsidiary of Sun Co. ‘Inc of Radnor, Pa., owned 96 per cent ‘of the GCOS com- FOR S TATIS TICIANS — mon stock, “The ‘gun 98 per cant of Suncor. . shareholders have three organization had already However, the Pennsylvania options: to sell thelr shares approved the merger. Ross Henniger, President o& Sun Canada and now president of Suncor, sald the new company will have a combined asset of about $1_ , Tanking . larger size -of the new company Sum company had ‘made a commitment to Ottawa: to sell 15 to 20 per cent of its shares ni the Canadian public bet: ‘ore Dec.3i, 1068, ‘But we will make a public about four r cent of GCOS stock and it two per cent - of Suncor. Under terms of the at $24 per ‘share for cash; convert thelr shares into preferred shares of Suncor; or retain their shares for monton, a - shareholder formally associated with Inc. now owns merger, GCOS minority @cos _Suring its early - Energy crisis a nightmare The energy crisis has created a atatistician’s nightmare. In trying to determine how Canadians are reacting to higher fuel prices and the threat of shorta olbidanaipaenar iA com esmen have produced an array of figures that seem to say little about how people are dealing with the situation. federal energy, mines and resources department, said guzoline in Ontario vant. es ; higher in Quebec where sales of unleaded gasoline are the roof,” going But he sald two factors make forecasting difficult — comumption {s up pecially ‘oil mixups may have occurred since the of] companies started. resgistering their ‘statistics in metrie units in September and the use of petroleum for lead, plastics. and other manufacturing. “Use of petroleum could be down because of con: arate, a rl detnand. foe petraleum asa pe material," Robertson He said consum: of middle-distilled oil, from which home heating oil is extracted, was up 14 per cent in the winter of 1978-79 over the same November- , pardy beca list winter was particularly Statistics Canada reported that for the Ja nuary- to-April period natural gas sales in Canada increased 4.6. per cent this year over last year. This compares with an 8.7- per-cent increage during the’ same period from 1977 to mia 1978 Gasoline sales in that . January-to-April period in- creased 4.8 per cent in 1979 over 1978. Theincrease in the same period from 1977 te 1978 was 2,7 per cent.. nein et fuel for home per cent during pea January to April period from 1978 to Ayatollah compared to Shah TEHRAN (AP) — leaders accused Poni Ruhollah Khomeini's Islamic regime Wednesday fighting in Kurdistan 88 persons province ; Fad, including 11 govern: ment troops, in the last two le so ruthlessly,” sald Karim Hesami, an official of the Kurdish Democratic rty. othe religlous leaders Mahabad, which ‘Kurds declaréd réd their capital: in a rebellion against the shah in ‘af = employing “taetiea days of a bloody Kurdish . ; reminizcent of deposed Shah revolt. should understand that they . The shah suppressed the Mohammad ReraPahlaviso “The only difference (in cannot silence the masses uprising, jailed its leaders that it could ‘‘annthilate the the two governments) ia that’ with thelr forces,” Hesami and: maintained subsequent Kurdish masses"'in Iran. during the Pahlavi regime, saldinastatementreadover control of Kurdistan with a- Stateradioreported heavy they did not kill innocent the telephone from strong military presence. THURSDAY 5 p.m. to midnight king. | op ceTKk | ogmsopcry KCTS . |. a (NBO)... 3. (Che) ‘UeTv) (PBS) Reb es CoC ee are " ” re ee Te tee :00 [Make Me . Mod Six Mister 118 TLangh! Squad Million Rogerd, 730] News Hourglass Dollar Electric 45 [ Cont'd, Cont'd. Man Company 200 Cont'd Happy News Once Upon 5 Cont'd Days Hour A Classic 130 [Cont'd Love Cont'd Dick 45 [Cont'd Boat Cont'd Cavett 00. «(| Seattle soa Gont”d o [Angie MacNeil 118 [Tonight ~ | Contd. 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Sales increased 2.6 per cent from 1977 to 1978,- But George Kitchen of Statistics Canada warned that the. figures can interpreted, particularly ‘ statistics-on light fuel sales. The switching by many home fuel customers to natural gas is one of several factors affecting statistics on home fuel sales, Kitchen And gosoline sales are af- fected by cold weather when cars use more gasoline and by how many new customers _ are buying emaller cars. Kitchen said there might be a drop in gasoline or home heating oil sales in Ontario during a warm winter, but a drastic increase in Alberta oe. Nova Scotia during cold weal Fernand Dube, New Brunswick's minister responsible for energy policy, said that 1979 figures and 1980 projections show a steady decline in . Atlantic Canada’s rate of increase in consumption of gasoline and home heating oil. Dube attributed the decline in gasoline demand to higher gasoline prices, more energy-efficient automobiles and a general awareness of gascline con- servation. In Quebec, Jacques Viau, a spokesman for Shell Canada’ Ltd., said his company-had" expected a two-or three-per- cent increase in gasoline -consumption during the first . six months of 1978, But ac: tual’ consumption has been twice that. . Viau added, however, that this year’s six-per-cent in- crease was lower than the eilght-percent increases of other years, The smaller increas due to higher’ giaoline” and smaller car engines, te said. Also, there were fewer American motorists in the province this summer, Jim Tanian, a Texaco Canada Inc. spokesman, said that total gasoline consumption in Ontario until the end of May this year was was up 3.3 per cent and the con- Cont sumption of burning oil was down 4.5 per cent, The British Columbia energy commission, 4 provincial agency, that gasoline consumption in ‘the province, based on figures from retailers, remains strong. Retail gasoline’ sales, ‘in British Columbia were up BP this year - over the same period § a ar ago. This compares wit average annual growl Tate in both retail and wholesale industrial sales’ over the period.1965 to 1977 of 5:8 p per cent. The Alberta energy department reported gasoline congumption in the ’ Prairie provinces increased 5.8 per cent in the first six months of 1979 over the same period in 1978. Consumption increased 6.1 per cent in the first six months of 1978 over the same period in 1977. ' Manitoba reported that consumption of gasoline for all purposes increased a4 mere .14 per cent in the firat . five months of ped over the record low temperatures during the first three months of 1970 which likely ac- eminted for the heating and stove oll increase, And despite rising gasoline prices and government appeals to use public transit, I government show that the number of passengers using the country’s 68 urban transit systems during the first half * the year was down slightly from the same period Jast oar ‘development stage, said he ‘did not agree with the merger evaluation con- ducted by Richardson Securities of Canada of peg. Clarke,46, spoke for half an hour urging post- ponement: of the amalgamation before a floor motion to this effect was introduced. This forced a count of - proxies after the majority of . - Trehaier eoneme ae. Fro @ postponement by show of hands, The result of . the proxy count was 277,749,188 against the motion for postponement and 101,340, or 0.38 per centofthe — Proxies cast, in favor of postponment. | When the resolution for. . merger itself came on the floor, it was approved‘ by 27,162,780 shares and op- - posed by 108,632. The minority shareholders opposed the immediate . merger because they, were not happy: with the: merger evaluation, One‘ shareholder sald now ‘the ' oil-sands tion has become — opera finally ‘profitable and the Sun Organization wanted to get all benefits, “Ta the the proxy roxy circuiar ‘to shareholders, it ‘was revealed that the Sun organization first proposed the merger last Sept. 6. At chardson, offered "$10 for each. Gcos share « minority shareholders , wanted to sell, But Sun, again on tie : advice of Richardson, cases 18 to 77. On the stock market, GCOS stock eet ee the range las te the$18 rangeln-Aprifand thé $17 range. aften.the.July.27 offer was first announced.’ GCOS stock closed at. $24.63 on the stock exchange Clarke pnd other minority shareholders ‘questioned the merger evaluation and four of them registered their dissension Wednesday. Under the terms of the merger, they have the option to go to courts to seek a “‘fair- evaluation" of the worth of their stock. . { Hennigar told. a news . conference after the meeting — that the merger has created a "prominent, well- balanced’ oll company “ready to help Canada meet thechallenges of energy self- sufficiency,” lenin te one consideration @ merger was ea tical havestogegye .* eoretica higher lease rogalty: t -the Sun organization than to the Alberta government. The Sun organization, which owned 75 per cent of the ‘GCOS mining lease, was to receive about §5 a barrel In royalty while Alberta gets onle about $2. : However, GCOS had never paid lease royalty to Sun. Smith said since the GCOS plant was started In 1967, not a single cent of profit had been reallz The cumulative deficit stood at $90 million at the end of 1974 but ithad been reduced to $34 million by the end of 1978. “We expect the cumulative * deficit owen * en- With the inereases in the | world price of oil, GCOS had’. become an’ Anereasingly... profitable gperatin. 1. . ving” April, it hai +the world price of oil, ving about $26 a barrel, almost double the domestic price of $13.75 which conventionally- iced oil receives, ; Suncor and Richardson Tepresentatives explained to the minority shareholders that the rapid increases in yorid oil price, including a © jump -foliowing fel eet OPEC action, were unexpected and led to the revised evaluations, Hennigar also said GCOS, which now produces an average of 45,000 barrels a day of synthetic crude, to increasa the production to. 88,000 barrels by 1041, “We are also considering moving the head office to Ai- berta. In fact, of our senior people will be based in Alberta although I will remain in Toronto in the foreseeable future. Hennigar said it was un- fortunate that after GCOS started getting world price for {ts oll, its Fort McMurray plant had to cut down , ctlon twice because of damage, on July 4 and Aug. 17, The July 4 fire af: fected production for more than a month. The plant Is just returning to its normal production following the Aug. 17 fire. pany spokesman Don . -| NEWS BRIEFS SALISBURY (AP) — Zimbabwe Rhodesian M ent sent military governm: nea deep into Pemba on Be ete striking a black nationalist guerrilla camp, the military here reported. - On the political front, black Prime Minister Abel Murorewa anounced that his predecessor and ior saints leader of the country’s white minority, will accompany him to Britishs talks with guerrilla leaders in Loadon a month, | A’ military communique ‘said only that goverriment planes struck a camp of ‘Joshua Nkomo’a. Zimbabwe UNITED NATIONS. (CP) ¥ Yous failed Wednesda to : Young obtain a pow md of today's Pales lexpected to 'veto a resolution x] Palestinian rights. . After ‘Young, president of the Council this ‘month, sew Council mem: © ‘bers. ‘privately, a US. - ‘mission. spokesman said there is very, little, hope agreement. fo. defer bate, He said, Young will hold informal, consultations with — the entire” Concil mem- Dee tie orang, svinasbi LOUP, Que... (CP): i Tyg “eonvicted imaidérers being’ flown to a | court’: apedrance. “at. Bate: \Comeay, Que, ‘pulled a: knife’: a 1 . ie - ik from their. coe and ‘n'a elit a Thay, The Wednesday. After a "nica guard sub- dyed the shackled convicts, the Ceesna 411 shuttling the prisoners to Baie Comeau from Quebec City made an emergency landing here,, police sald, Quebee provincial police ted. the plane when it Jan- Charles-Engene Gagnon ~ the ’ Hireatened. who is — ‘Attica People's Union at 246 kikometres insids: Zambia, and all © planes returned safely. . - - A military source anid the strike — the 13th this year against ZAPU positions inside Zambia — was designed to . avert : new offensive in Zimbabwe Hhodesia by Nkomo’s guerrillas. . ” In. Lusaka, a Zambian government spokesman said the target. was a “refuges camp” which suffered only “light damage.’* He sald a“ fireratt gure, tamed. By no information on casualties, Postponment said dela yed. Diplomatic sources said that unless there is a last minute accord on ‘which appears hi dsbate unlikely, ‘and the United States now is General Palestinian ommittee which tiated the debate, sald he expects to introduce tha “draft resolution, . Hi jack atternpt fails was stabbed in the throat sie nto itt Quebec ee Laval guard, Normand ,, WAS not injured. The prisoners, Reynald Roussy, 21, and Alein Gomont, 24, were be transported from Lav penitentiary in Montreal, where both were serving life sentences for the same murder last August, t) Bais Comeau. on the North Shore of the St. Lawrence River, for a court hey caries of armind No date for tai ‘break’ ” " OTTAWA (CP) — The gov- ernment's pledge to in- troduce tax brenks for mortgage holders in its fall budget does not necessarily mean the measure would take. effect budget night, inancé. Minister ean bie said Wednesday. Speaking toreporters after a twohour meetiig’“with business representatives, Crosbie said he has not yet ‘decided when homeowners will actually be able to take — advanage of the mortgage "The Canadian Chamber of Commerce, the country’s leading business association, SEATTLE (AP) — United aa aris Se ve defence of Seatile research chief Hilton Lysons, who spent $1 million from his office budget to develop an and Promote a logging machine .The machine, which is * wed. ye remove harvested rom the forest, is. Pars ae a Lantec : Bal whi a i (3 Was wrusual but i neces- sary,” said Robert Buck- advised Croabie in ‘the mee! oO postpone in- troduction a the scheme until 1960, Officials of the chamber, a $,-000-member lobby group for the business comtmentiyy told Crosbie they | follow. to include the pla: first But they need the thing man, forest ervice thought Leen by proprietary interests, we wouldhave lown the whistle on it a long time ago.” — Forest service Wally Shiverdecker said’ forest service officials from letting: gifts, else doing business with the forest service. . There's a And a lot you can do, With the Red Cross. lotof you ;