NOTICE OF PROCEEDING
PROCEEDING NO. 1450471
GAS PRODUCTION FROM LEISMER MCMURRAY J4J POOL
ATHABASCA WABISKAW-MCMURRAY

Take Notice that the Alberta Energy and Utilities Board (EUB/Board) has initiated Proceeding No. 1450471. This proceeding will consider the production status of wells in the Leismer McMurray J4J Pool.

Background and Nature of the Proceeding
In Proceeding No. 1347905, Phase 3 Final Proceeding Under Bitumen Conservation Requirements, the Board considered the production of gas in oil sands areas as discussed in EUB General Bulletin (GB) 2003-28: Bitumen Conservation Requirements, Athabasca Wabiskaw-McMurray. On December 21, 2005, the Board issued Decision 2005-122 Addendum, wherein the Board stated:

“The RGS [Report 2003-A: Athabasca Wabiskaw-McMurray Regional Geological Survey] interprets no sealing shale between the B1 and the underlying McMurray channel sand; therefore the porosity in the B1 and the McMurray Channel sand in the 10-14 well is considered to be in communication. Since the Leismer McMurray J4J Pool immediately west of the 10-14 well is producing from the B1 and B channel sands, the Board believes that the pressure depletion may be due to communication between the B1 of the J4J Pool and the B1 of the 10-14 well. Because there may be another explanation for the depleted pressure at the piezometer in the 10-14 well, the Board does not believe that the evidence conclusively shows failure of the sealing capability of the A2 mudstone. Since gas production from the Leismer McMurray J4J Pool was not contested by any party at the final hearing, the Board will initiate a follow-up process to determine if there is a need to shut in gas production from this pool.”

Proceeding No. 1450471 has been initiated by the Board to determine whether there is a need to shut in gas production from the Leismer McMurray J4J Pool.

Additional Information
To view the material filed in Proceeding No. 1347905, Phase 3 Final Proceeding Under Bitumen Conservation Requirements, click on the Bitumen Conservation: Conservation Policy Affecting Gas Production in Oil Sands Areas link on the EUB home page at www.ercb.ca , and follow through the Phase 3 Proceedings link.

To File a Submission
Any person intending to participate in this proceeding is required to file a submission setting out the following:

(a) the nature and scope of their intended participation in the proceeding;
(b) a concise statement of the disposition of the proceeding the participant advocates, if any. The statement should not contain all the facts or arguments upon which the disposition proposed by the participant is based; a brief summary of the facts and arguments is all that is required at this time;

(c) recommendations the participant wishes to make regarding the need for, and the nature and timing of a hearing in this proceeding, in particular whether an oral or written hearing would be appropriate; and

(d)
a. the name, address in Alberta, telephone number, fax number, and e-mail address (if any) of the participant;
b. if the participant intends to be represented by counsel or other representative, the name, address in Alberta, telephone number, fax number, and e-mail address (if any) of counsel or the representative;
c. if the participant is an unincorporated organization, the nature of the participant’s membership.

On or before 4:00 p.m., Friday, March 31, 2006, participants must send two paper copies and one electronic version of their submission to

Applications Branch, Resources Applications Group
Attention: Ernie Smith
Alberta Energy and Utilities Board
640-5 Avenue SW
Calgary, Alberta T2P 3G4
Telephone: (403) 297-8128
Fax: (403) 297-2474
E-mail: Ernie.Smith@gov.ab.ca

If you intend to participate in this proceeding you must file a submission even if you have previously filed a submission with the Board or another party with respect to the subject matter of this proceeding.

If no submissions are received, the Board may proceed to issue such decisions, directions or orders affecting gas production from the Leismer McMurray J4J Pool as the Board believes is necessary to effect the conservation of bitumen in the Wabiskaw-McMurray Formation, without further notice or a hearing.

In accordance with Section 12 of the Alberta Energy and Utilities Board Rules of Practice, all documents filed in respect of this proceeding must be placed on the public record unless otherwise ordered by the Board.

Issued at Calgary, Alberta on March 14, 2006.

ALBERTA ENERGY AND UTILITIES BOARD
Douglas A. Larder, Q.C., General Counsel