ARC Energy Trust announces 2006 U.S. Tax Information

CALGARY, Feb. 15 /CNW/ - (AET.UN and ARX - TSX) ARC Energy Trust ("ARC"
or "the Trust") announces its 2006 U.S. Income Tax Information to be as
follows:

ARC ENERGY TRUST
2006 U.S. INCOME TAX REPORTING

U.S. Income Tax Information

The following information is being provided to assist U.S. individual
unitholders of ARC Energy Trust ("ARC") in reporting distributions received
from ARC during 2006 on their Internal Revenue Service ("IRS") Form 1040,
"U.S. Individual Income Tax Return" ("Form 1040").
This summary is of a general nature only and is not intended to be legal
or tax advice to any particular holder or potential holder of ARC trust units.
Holders or potential holders of ARC trust units should consult their own legal
and tax advisors as to their particular tax consequences of holding ARC trust
units.

Qualified Dividends

In consultation with its U.S. tax advisors, ARC believes that its trust
units should be properly classified as equity in a corporation, rather than
debt, and that dividends paid to individual U.S. unitholders should be
"qualified dividends" for U.S. federal income tax purposes. As such, the
portion of the distributions made during 2006 that is considered dividends for
U.S. federal income tax purposes should qualify for the reduced rate of tax
applicable to long-term capital gains. However, the individual taxpayer's
situation must be considered before making this determination.

ARC has not received an IRS letter ruling or a tax opinion from its tax
advisors on these matters.

Trust Units Held Outside a Qualified Retirement Plan

With respect to cash distributions paid during the year to U.S.
individual unitholders, 10.77 per cent should be reported as a return of
capital (to the extent of the unitholder's U.S. tax basis in their respective
units) and 89.23 per cent should be reported as "qualified dividends". The
table below summarizes the distributions paid by ARC in 2006.
The portion of the distributions treated as "qualified dividends" should
be reported on Line 9b of Form 1040, unless the fact situation of the U.S.
individual unitholders determines otherwise. Commentary on page 23 of the Form
1040 Instruction Booklet for 2006 with respect to "qualified dividends"
provides examples of individual situations where the dividends would not be
"qualified dividends". Where, due to individual situations, the dividends are
not "qualified dividends", the amount should be reported on Schedule B - Part
II - Ordinary Dividends and Line 9a of Form 1040.
For U.S. federal income tax purposes, in reporting a return of capital
with respect to distributions received, U.S. unitholders are required to
reduce the cost base of their trust units by the total amount of distributions
received that represent a return of capital. This amount is non-taxable if it
is a return of cost base in the trust units. If the full amount of the cost
base has been recovered, any further return of capital distributions should be
reported as capital gains.
U.S. unitholders are encouraged to utilize the Qualified Dividends and
Capital Gain Tax Worksheet of Form 1040 to determine the amount of tax that
may be otherwise applicable.
The taxable portion (for Canadian income tax purposes) of the
distributions paid to a non-resident of Canada is subject to a minimum 15 per
cent Canadian withholding tax that is withheld prior to any payments being
distributed to unitholders. Beginning in 2005, the return of capital portion
(for Canadian income tax purposes) of the distributions paid to a non-resident
investor is also subject to a 15 per cent withholding tax that is withheld
prior to any payments being distributed to unitholders. Where trust units are
held outside a qualified retirement account, the full amount of all
withholding tax should be creditable, subject to numerous limitations, for
U.S. tax purposes in the year in which the withholding taxes are withheld.
Where trust units are held in a qualified retirement account, the same
withholding taxes apply but the amount is not creditable for U.S. tax
purposes.
The amount of Canadian tax withheld should be reported on Form 1116,
"Foreign Tax Credit (Individual, Estate, or Trust)". Information regarding the
amount of Canadian tax withheld in 2006 should be determined from your own
records and is not available from ARC. Amounts over withheld, if any, from
Canada should be claimed as a refund from the Canada Revenue Agency no later
than two years after the calendar year in which the payment was paid.
Investors should report their dividend income and capital gain (if any),
and make adjustments to their tax basis in ARC's units, in accordance with
this information and subject to advice from their tax advisors. U.S.
individual unitholders who hold their ARC trust units through a stockbroker or
other intermediary should receive tax reporting information from their
stockbroker or other intermediary. We expect that the stockbroker or other
intermediary will issue a Form 1099-DIV, "Dividends and Distributions" or a
substitute form developed by the stockbroker or other intermediary. ARC is not
required to furnish such unitholders with Form 1099-DIV. Information on the
Forms 1099-DIV issued by the brokers or other intermediaries may not
accurately reflect the information in this press release for a variety of
reasons. Investors should consult their brokers and tax advisors to ensure
that the information presented here is accurately reflected on their tax
returns. Brokers and/or intermediaries may or may not be required to issue
amended Forms 1099-DIV.

Trust Units Held Within a Qualified Retirement Plan

No amounts are required to be reported on a Form 1040 where ARC trust
units are held within a qualified retirement plan.

Summary of U.S. Tax Information

The following table provides, on a per unit basis, the breakdown of the
amount of cash distributions, prior to Canadian withholding tax, paid by ARC
for the period January 16 to December 15, 2006. The amounts are segregated
between the portion of the cash distribution that could be considered
"qualified dividends" and the portion reported as non-taxable return of
capital (and/or capital gain). The amounts shown on the following table are in
U.S. dollars as converted on the applicable payment dates. This table is for
information purposes only.

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2006 CASH DISTRIBUTION INFORMATION
FOR U.S. UNITHOLDERS
(U.S. $/Unit)

Distrib- Taxable
ution Distrib- Qualified Non-Taxable
Record Payment Paid Exchange ution Dividend Return of
Date Date CDN$ Rate Paid US$ US$ Capital US$
-------------------------------------------------------------------------
Dec 31, Jan 16,
2005 2006 $0.20 0.863700 $0.172740 $0.154136 $0.018604
Jan 31 Feb 15,
2006 2006 $0.20 0.866500 $0.173300 $0.154636 $0.018664
Feb 28, Mar 15,
2006 2006 $0.20 0.865600 $0.173120 $0.154475 $0.018645
Mar 31, Apr 17,
2006 2006 $0.20 0.873100 $0.174620 $0.155813 $0.018807
Apr 30, May 15,
2006 2006 $0.20 0.897700 $0.179540 $0.160204 $0.019336
May 31, Jun 15,
2006 2006 $0.20 0.894700 $0.178940 $0.159668 $0.019272
Jun 30, Jul 17,
2006 2006 $0.20 0.883200 $0.176640 $0.157616 $0.019024
Jul 31, Aug 15,
2006 2006 $0.20 0.891200 $0.178240 $0.159044 $0.019196
Aug 31, Sep 15,
2006 2006 $0.20 0.893300 $0.178660 $0.159418 $0.019242
Sep 30, Oct 16
2006 2006 $0.20 0.878300 $0.175660 $0.156741 $0.018919
Oct 31, Nov 15,
2006 2006 $0.20 0.878000 $0.175600 $0.156688 $0.018912
Nov 30, Dec 15,
2006 2006 $0.20 0.864000 $0.172800 $0.154189 $0.018611
----- ---------------------------------
Total Per
Unit $2.40 $2.109860 $1.882628 $0.227232
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ARC ENERGY TRUST

John P. Dielwart,
President and Chief Executive Officer