Calpine Corp. (NYSE: CPN) plans to establish a new Canadian trust-Calpine Natural Gas Trust-and distribute the units through an initial public offering. Scotia Capital Inc. is lead underwriter. Marketing of the offering was expected to commence in September, and closing was expected this month. CNG Trust would acquire select Calpine-owned oil and gas properties throughout Alberta, including interests in the Markerville, Sylvan Lake and Innisfail areas. The average daily net production of these properties for the first half of 2003 was about 28 million cu. ft. of gas equivalent, with proven reserves of about 83 billion cu. ft. of gas equivalent. Calpine intends to hold 25% of the outstanding trust units. It will have the option to purchase up to 100% of the trust's production at market prices for use in its North American power-generation assets. An independent executive team will manage the trust. Four members of the board will be independent, and Calpine would appoint the remaining three.