NOTICE OF HEARING

APPLICATIONS NO. 1279895, 1303136 AND 1303138

FOR A LICENCE TO DRILL A SOUR GAS WELL AND TO CONSTRUCT AND OPERATE A SINGLE WELL SWEET GAS BATTERY AND A NATURAL GAS PIPELINE

GLOBEX RESOURCES LTD.

GORDONDALE AREA

Take Notice that the Alberta Energy and Utilities Board (EUB) will hold a public hearing of Applications No. 1279895, 1303136 and 1303138, at the Gordondale Community Hall on Range Road 105 in Gordondale, Alberta, commencing at 9:00 a.m. on Wednesday, July 16, 2003. All interveners to this proceeding must be present at the commencement of the hearing to register their appearance.

Nature of the Applications

Application No. 1279895 for a Well Licence

Globex Resources Ltd. (Globex) has applied pursuant to Section 2.020 of the Oil and Gas Conservation Regulations for approval to drill a Level 2 sour gas well directionally from a surface location in Legal Subdivision (LSD) 16, Section 18, Township 79, Range 10, West of the 6th Meridian to a bottom hole in the same LSD. The purpose of the well would be to obtain sweet gas production from the Kiskatinaw Formation. However, in drilling the applied-for well, sour zones in the Charlie Lake and Taylor Flat Formations would be penetrated. Globex has therefore calculated the maximum hydrogen sulphide (H₂S) content in the gas in those zones to be 380 moles per kilomole (38 per cent) with a drilling release rate of 0.410 cubic metres per second (m³/s) and a corresponding emergency planning zone (EPZ) of 1.255 kilometres (km). 

Application No. 1303136 for a Single Well Sweet Gas Battery

Globex has applied pursuant to Section 7.001 of the Oil and Gas Conservation Regulations for approval to construct and operate a single well sweet gas battery. The battery would be located at the surface location of the proposed well in LSD 16-18-79-10W6M. The proposed battery would consist of an emergency shutdown valve on the wellhead, a line heater, a separator, and a water storage tank. The flare system at the facility would be used for emergency purposes only and would be equipped with an automatic ignition system.

Application 1303138 for a Natural Gas Pipeline

Globex has applied pursuant to Part 4 of the Pipeline Act to construct and operate a pipeline from the proposed well in LSD 16-18-79-10W6M to a pipeline tie-in point in the same LSD. The proposed new pipeline would be approximately 170 metres (m) in total length with a maximum outside diameter of 88.9 millimetres (mm), and would transport natural gas with a maximum H₂S concentration of 0.0 moles per kilomole (0.0 per cent).

The proposed well, battery and pipeline would be located approximately 1.4 km north of Gordondale.

Additional Information

To obtain additional information or copies of the applications contact:

Globex Resources Ltd.
Attention: Dave Wandzura
750, 700 4th Avenue SW
Calgary, Alberta  T2P 3J4
Telephone: (403) 237-5220
Fax: (403) 266-1525

Copies of the applications are available for public viewing at the following EUB offices:

EUB Information Services                        EUB Grande Prairie Field Centre
Main Floor, 640 5th Avenue SW             9815 115th Street
Calgary, Alberta  T2P 3G4                       Grande Prairie, Alberta  T8V 7R3
Telephone: (403) 297-8190                    Telephone: (780) 538-5138

For information about EUB procedures contact:

Applications Branch, Facilities Applications Group
Attention:  Adela Cosijn
Telephone: (403) 297-8868
Fax: (403) 297-4117
E-mail: adela.cosijn@gov.ab.ca

To File a Submission

Any person intending to make a submission with respect to the hearing of Applications No. 1279895, 1303136 and 1303138 shall file on or before 4:00 p.m. on Friday, July 4, 2003. Send one copy of your submission to the applicant at the name and address noted above and ten copies to:

Adela Cosijn, Application Coordinator
Alberta Energy and Utilities Board
640 5th Avenue SW
Calgary, Alberta  T2P 3G4

Notes

Any submission filed shall contain information detailing:

(i)                 the desired disposition of the applications;

(ii)               the facts substantiating the position of the submitter;

(iii)              the reasons why the submitter believes the EUB should decide in the manner advocated; and

(iv)             how the proposed project, if approved, may directly and adversely affect the submitter.

If you have an interest in this matter, you are required to make a submission with respect to this application even if you have previously filed an objection with the Board or with Globex Resources Ltd. on this application.

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.

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

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.

Issued at Calgary, Alberta, on June 9, 2003

ALBERTA ENERGY AND UTILITIES BOARD

Douglas A. Larder, Board Counsel