NOTICE OF HEARING
PROCEEDING NO. 1522494
MILESTONE EXPLORATION
VULCAN FIELD

Take Notice that the Alberta Energy and Utilities Board (EUB/Board) will hold a public hearing of Proceeding No. 1522494 at the Nanton Community Hall located at 2204-18 Street Nanton, Alberta, commencing on November 14, 2007 at the hour of 9:00 a.m. All interveners to this proceeding must be present at the commencement of the hearing to register their appearance.

Nature of the Application
On May 16, 2007, the Board approved Application No. 1512283 and issued Well Licence No. 0377264 to Milestone Exploration (Milestone). The licence would permit Milestone to drill a directional well from a surface location in Legal Subdivision (LSD) 3, Section 24, Township16, Range 24, West of the 4th Meridian to a projected bottom hole location in LSD 02-24-16-24W4M. The purpose of the well would be to produce gas from the Sunburst Sand. The gas would contain a maximum hydrogen sulphide (H₂S) concentration of 10.0 moles per kilomole (mol/kmol) (1.0 per cent).

On August 1, 2007, the EUB received letters from an affected party requesting that the Board conduct a review hearing relating to Well Licence No. 0377264, pursuant to Section 39 of the Energy Resources Conservation Act. The EUB registered the request as Application No. 1518066.

On August 7, 2007, the EUB granted the request for a review hearing and registered the hearing as Proceeding No. 1522494. The purpose of the review hearing is to determine whether the Board should confirm, vary, or rescind its decision to grant Well License No. 0377264.

Additional Information
Application No. 1512283 is available for viewing on the EUB’s Web site at www.ercb.ca on the Integrated Application Registry (IAR). A copy of the application is also available for viewing at the EUB’s Calgary office:

EUB Information Services
Main Floor, 640 – 5 Avenue SW
Calgary, Alberta T2P 3G4
Telephone: (403) 297-8190

For information about EUB procedures, contact

Applications Branch, Facilities Applications Group
Attention: David Miles
Telephone: (403) 297-3582
Fax: (403) 297-4264
E-mail: david.miles@eub.ca

To File a Submission
Any person intending to make a submission with respect to the hearing of Proceeding No. 1522494 shall file on or before 4:00 p.m., Wednesday, October 3, 2007. Send one copy of your submission to Milestone at the name and address above and ten copies to:

David Miles, Applications Coordinator
Applications Branch, Facilities Applications Group
Alberta Energy and Utilities Board
640 – 5 Avenue SW
Calgary, Alberta T2P 3G4

The Board has established the following filing deadlines for the hearing:

October 3, 2007 - Parties file submissions
October 24, 2007 - Parties file reply submissions
November 14, 2007 - Hearing commences

Notes
Any submission filed shall contain the following:

1. a concise statement indicating
   1. the manner in which the intervener’s rights may be directly and adversely affected by a decision of the Board on the proceeding,
   2. the nature and scope of the intervener’s intended participation,
   3. the disposition of the proceeding that the intervener advocates, if any,
   4. the facts the intervener proposes to show in evidence,
   5. the reasons why the intervener believes the Board should decide in the manner that the intervener advocates, and
   6. the intervener’s efforts, if any, to resolve issues associated with the proceeding directly with the applicant;
2. the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the intervener;
3. if the intervener is represented by a representative, the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the representative; and
4. if the intervener is an unincorporated organization, the nature of the intervener’s membership.

If you have an interest in this matter, you are required to make a submission with respect to this proceeding even if you have previously filed a submission with the Board or with Milestone with respect to the Application No. 1512283.

If there are no submissions received, this hearing may be cancelled and the EUB will continue to process the application without further notice or without a hearing.

Submissions relating exclusively to compensation for land usage are not dealt with by the EUB but may be referred to the Alberta Surface Rights Board.

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.

In accordance with Section 23.1 of the Alberta Energy and Utilities Board Rules of Practice, a person who intends to raise a question of constitutional law before the Board must give notice in accordance with Section 12 of the Administrative Procedures and Jurisdiction Act and its regulation.

In accordance with Section 38 of the Alberta Energy and Utilities Board Rules of Practice, witnesses must give evidence under oath or affirmation.

Issued at Calgary, Alberta, on September 17, 2007.

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