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Capital Expenditures
Capital expenditures in 2007 were $21.1 million (2006 – $12.2 million) including $4.4 million (2006 – $3.5 million) in maintenance capital and $16.7 million (2006 – $8.7 million) in enhancement capital. Expenditures were lower when compared to the expected expenditures of $35.8 million in 2007. The $14.7 million decrease was due to delays in construction of the Westspur expansion. Expenditures in 2007 were focused on sustaining capital infrastructure, the completion of new customer connections, pipeline integrity, tank repairs and the expansion of the Westspur and Weyburn Systems.
The Saskatchewan System anticipates capital expenditures of approximately $36.0 million in 2008. Of this amount, approximately $6.3 million is allocated to maintenance capital expenditures, including the annual repair and inspection programs involving electronic pipe corrosion inspection tools, or "smart pigs". The remaining $29.7 million is for enhancement capital including the capacity expansion on the Westspur System.