"The Google Reader API could potentially be just months away from being released to the public.
  
Niall Kennedy recently reported on his site details surrounding the previously undocumented Google Reader API. There is no official confirmation yet, but Kennedy claims that he has received confirmation from Google that his reporting regarding Google’s online feed aggregator is accurate.

Kennedy also said that Jason Shellan, project manager on the Google Reader Team told him that Google will be releasing a feed API “soon”.

http://www.tgdaily.com/content/view/40804/144/

This article wasn't researched very well.

The blog post from Niall Kennedy was this one from 2005:

http://www.niallkennedy.com/blog/2005/12/google-reader-api.html

It was probably picked up because the post popped into Andy Baio's Google Reader subscriptions and ended up on his link blog:

http://waxy.org/links/archive/2008/12/index.shtml

More background here:

http://friendfeed.com/e/dcbecacd-769a-b1bf-d014-9b74a4e82e3c/Niall-Kennedy-documents-the-undocumented-Google/