Lower Texas Rangers energy costs in the second quarter of

Lower assesses alex rodriguez energy costs walker texas rangers understand in the second quarter of 2009, ascompared to the prior quarter, were primarily attributable to lowernatural gas price and usage. Fibre costs decreased approximately 7% dueto a reduction in higher cost whole log chip volume. Realized pulp pricesin Canadian dollar terms decreased 8% when compared to the prior quarterdue to a 4% decrease in NBSK pulp US dollar list price and the impact ofthe stronger Canadian dollar.The second quarter 2009 operating results were $19.3 million lower thanthe same period a year ago. The decrease was the result of lower NBSKpulp US dollar list prices, partially offset by lower unit manufacturingcosts, a weaker Canadian dollar and higher shipment volumes. A 20%decrease of realized prices in Canadian dollar terms was attributable toa 27% decrease of NBSK pulp US dollar list price and increases in thePartnership's sales into lower margin businesses, partially offset by a13% weakening of the Canadian dollar. Lower unit manufacturing costs weredue to lower fibre and energy prices, lower overall spending on fixedcosts, and the impact of higher production volumes as a result of thescheduled maintenance outage at the Northwood Pulp Mill and the impact ofthe Prince George Pulp and Paper Mill fire in the second quarter of 2008.Fibre costs decreased approximately 17% due to lower prices for sawmillresidual and whole log chips. Shipment volumes increased 52,400 tonneswhen compared to the same period in 2008 primarily due to increasedvolume into China.For the six month period ended June 30, 2009, the operating loss of $17.8million represents a deterioration of $63.9 million when compared to thesame period in 2008.

The decrease in operating results was attributableto lower realized prices in Canadian dollar terms, partially offset bylower unit manufacturing costs and higher shipment volumes baseball tickets . Realized pulpprices in Canadian dollar terms decreased 17% as a 25% decrease in NBSKpulp US dollar list price and a higher percentage of sales into lowermargin business including non-contract business and the tissue segment,were partially offset by a 17% weakening of the Canadian dollar whencompared to the same period in 2008 walker texas rangers . Lower unit manufacturing costs wereattributable to the impact of a reduction in scheduled maintenanceoutages, lower spending on fixed costs, and lower fibre costs walker texas rangers . Fibrecosts decreased approximately 12% due to lower prices for sawmillresidual and whole log chips walker texas rangers . Lower spending on fixed costs wasattributable to lower energy prices, lower maintenance costs and costreduction initiatives including reductions in discretionary spending.Shipment volumes increased 63,800 tonnes when compared to the same periodin 2008 primarily due to increased volumes into China.OperationsNBSK market pulp production during the second quarter of 2009 was 29,700tonnes higher than the first quarter of 2009. The major components ofincreased production were significantly higher operating rates in thesecond quarter of 2009 and the impact of the market related curtailmentstotalling 14,000 tonnes in the first quarter of 2009. Higher operatingrates were primarily attributable to operating issues in the firstquarter of 2009 as a result of cold weather and start-up issues comingout of the market curtailment.When compared to the same period in 2008, second quarter 2009 productionof 260,100 tonnes was 34,000 tonnes higher.

The major components ofincreased production in the second quarter of 2009 were decreasedscheduled maintenance outages (second quarter 2009 - 7,000 tonnes, secondquarter 2008 - 32,900 tonnes), the impact of the Prince George Pulp andPaper Mill fire which reduced production by approximately 6,100 tonnes inthe second quarter of 2008 and higher overall operating rates achieved inthe second quarter of 2009.For the six months ended June 30, 2009 production of 490,500 tonnes was32,900 tonnes higher than the same period in 2008 michael young autograph . The major componentsof the increased production were decreased scheduled maintenance outages(2009 - 14,100 tonnes, 2008 - 32,900 tonnes) and the Prince George Pulpand Paper Mill fire in 2008 totalling 28,100 tonnes of reducedproduction, partially offset by the market curtailment totallingapproximately 14,000 tonnes reduced production in the first quarter of2009 (2008 - nil) walker texas rangers . Markets - PulpDuring the second quarter of 2009, continued weakness in global pulpdemand was more than offset by supply reductions due to temporary andpermanent mill closures, resulting in significant reductions in producerinventory stocks walker texas rangers . Year-to-date demand for market pulp was below 2008levels, mainly due to reduced demand for printing and writing papers overthe same period walker texas rangers .

According to the latest available information fromPPPC(1), global demand for printing and writing papers decreased 18% forMay 2009 year-to-date, when compared to the same period in 2008.The reduction in supply has resulted in declining pulp inventories fromthe beginning of the year texas rangers . At the end of June 2009, World 20 (1) producerbleached softwood pulp inventories were down to 26 days of supply (June2008 - 29 days), after peaking at 43 days in January 2009.The low inventory levels and tighter pulp market conditions allowed forNBSK market pulp list price increases of US$25 per tonne during thesecond quarter to US$660 in the USA and US$50 to $US630 in Europe walker texas rangers . Asiaexperienced the largest increase with net prices in China of US$490 atthe beginning of the quarter and US$550 at the end of the second quarter.Note: (1) World 20 data is based on twenty producing countriesrepresenting 80% of world chemical market pulp capacity and is based oninformation compiled and prepared by the Pulp and Paper Products Council(PPPC)Outlook - PulpThe outlook for the second half of 2009 is one of moderate optimism.Supply has been reduced to a level that balances demand and when combinedwith low pulp producer inventories, provides an opportunity foradditional price increases in the coming months walker texas rangers . The reductions in supplyare the result of temporary and permanent mill closures in Canada andScandinavia as high cost NBSK pulp facilities strive to conserve cash andcontrol inventories . Partially offsetting the mill closures has been theimpact of the US Black Liquor tax subsidy, which may have enabled somehigher cost US pulp mills to continue to operate. Demand is expected torecover slightly from earlier this year, but remain weak relative to2008. Overall, we expect additional modest improvements in price duringthe remainder of 2009.The Canadian Green Transformation Program is not expected to have a majorimpact on supply.