2005 Canadian Unitholder Tax Information

Provident Energy has determined that for Canadian unitholders, distributions paid in 2005 are to be 76.5 percent taxable and 23.5 percent tax deferred return of capital (ROC).

Canadian unitholders holding their Provident investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund or Deferred Profit Savings Plan should not report any income related to distributions on their 2005 income tax return. Unitholders holding their units outside such plans will receive a T3 Supplementary Information slip (T3), postmarked on or before March 31, 2006. Provident's Canadian registered unitholders should receive a T3 from Provident's transfer agent, Computershare Trust Company of Canada. Unitholders that hold their units through a broker or other intermediary should receive a T3 directly from their broker or intermediary and not from Provident or Provident's transfer agent. Unitholders are to report the taxable portion of distributions as "other income" on their 2005 income tax return.

Canadian unitholders are required to reduce the adjusted cost base (ACB) of their trust units by an amount equal to the tax deferred portion of the distributions. The ACB is used to calculate capital gains or losses on the disposition of trust units. An ACB calculator can be found on Provident Energy's website at www.providentenergy.com that can assist Canadian unitholders in this calculation.

Provident Energy has determined that distributions received by U.S. resident unitholders in 2005 are classified to be 94.35 percent qualified dividend and 5.65 percent tax deferred return of capital. The tax deferred portion should be treated as an adjustment to the cost base of the units.

For U.S. federal income tax reporting purposes Provident is considered a corporation. As a corporation, Provident distributions to U.S. unitholders can be considered "qualified dividends" as determined under U.S. Internal Revenue Code rules.

To assist with the preparation of 2005 U.S. tax information Provident's transfer agent Computershare Trust Company will issue Form 1099 DIVs to all registered U.S. unitholders. Non-registered holders should receive a Form 1099 DIV from their broker or intermediary.

During 2005 the Trust adopted the accrual method of accounting for payments distributed by the Trust. This complies with the administrative practices of the Canada Revenue Agency (CRA) as well as matching the treatment of other energy trusts. For 2005 only, this results in 13 months being included in the Trust's taxation year with the December 2005 distribution, declared in December 2005 and paid January 13, 2006, representing the additional month. This has no impact on U.S. unitholders as they are required to report on a cash basis and for Canadian unitholders the amounts will be included in the T3 totals for 2005. In future years the Trust will report 12 months of distributions beginning with the January declaration and ending with the December declaration each year.

This press release does not constitute and is not intended to be legal or tax advice to any particular holder or potential holder of Provident units. Holders or potential holders of Provident units are urged to consult their own legal and tax advisors as to their particular U.S. federal income tax consequences of holding Provident units.