NOTICE OF HEARING
APPLICATIONS NO. 1457276 AND 1467817
GLADIUS ENERGY INC.
STRACHAN FIELD

Take Notice that the Alberta Energy and Utilities Board (EUB/Board) will hold a public hearing of Applications No. 1457276 and 1467817 at the Lou Soppit Community Centre, 4733 – 54 Avenue, Rocky Mountain House, Alberta, commencing on Tuesday October 17, 2006, 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 Applications
Gladius Energy Inc. (Gladius) submitted an application in accordance with Section 2.020 of the Oil and Gas Conservation Regulations for a licence to drill a directional well from a surface location in Legal Subdivision (LSD) 15 of Section 28, Township 37, Range 8, West of the 5th Meridian to a projected bottomhole location in LSD 15-28-37-8W5M. The maximum hydrogen sulphide (H2S) concentration would be approximately 276 mol/kmol (27.6 per cent) and the cumulative drilling H2S release rate would be 1.0794 cubic metres per second with a corresponding emergency planning zone of 2.42 kilometres (km). The purpose of the well would be to obtain gas production from the Leduc Formation. The proposed well would be located approximately 20 km southwest of Rocky Mountain House.

Gladius submitted an application in accordance with Part 4 of the Pipeline Act for approval to construct and operate a pipeline for the purpose of transporting natural gas from LSD 15-28-37-8W5M to a pipeline tie in point at LSD 7-33-37-8W5M. The proposed pipeline would be approximately 0.76 km in length with a maximum outside diameter of 114.3 millimetres and would transport natural gas with a maximum H2S concentration of 100.00 mol/kmol (10 per cent). The proposed pipeline would be operated as a Level 1 pipeline. The proposed pipeline would be located approximately 20 km southwest of Rocky Mountain House.

Additional Information
To obtain additional information or a copy of the application, contact:
Gladius Energy Inc.
2670, 255 – 5 Avenue SW
Calgary, AB  T2P 3G6
Attention: James Moore
Telephone: (403) 265-5404
Fax: (403) 265-5405

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Copies of the applications are available for viewing at the EUB’s Calgary office and at the Red Deer Field Centre
EUB Information Services
Main Floor, 640-5 Avenue SW
Calgary, Alberta  T2P 3G4   
Telephone: (403) 297-8190

Red Deer Field Centre
Millennium Centre
202, 4909 – 49 Street
Red Deer, Alberta  T4N 1V1
Telephone: (403)340-5454

For information about EUB procedures, contact:

Applications Branch, Facilities Applications Group
Attention: Tiffany Zwarich
Telephone: (403) 297-2084
Fax: (403) 297-4117
E-mail: tiffany.zwarich@gov.ab.ca

To File a Submission
Any person intending to make a submission with respect to the hearing of Applications No. 1457276 and/or 1467817 shall file on or before 4:00 p.m. Monday October 2, 2006. Send one copy of your submission to the applicant and ten copies to the EUB care of the application coordinator at the names and addresses listed above.

Any Submission the applicant wishes to file in response to submissions files by concerns parties, shall be submitted on to before 4:00 p.m. on Friday October 6, 2006. The Applicant shall send one copy of its response submission to each person who files a submission, and ten copies to the EUB as provided above.

Board Approved Hearing Schedule

The following is the schedule for the hearing process:
September 18, 2006 Parties advise the Board whether a mutual agreement has been reached
 October 2, 2006 Interveners file hearing submissions
 October 6, 2006 Gladius files a response to the interveners’ submissions
 October 17, 2006 Hearing commences

Notes
Any submission filed shall contain the following:

(a) a concise statement indicating

(i) the manner in which the intervener’s rights may be directly and adversely affected by a decision of the Board on the proceeding,

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(ii) the nature and scope of the intervener’s intended participation,

(iii) the disposition of the proceeding that the intervener advocates, if any,

(iv) the facts the intervener proposes to show in evidence,

(v) the reasons why the intervener believes the Board should decide in the manner that the intervener advocates, and

(vi) the intervener’s efforts, if any, to resolve issues associated with the proceeding directly with the applicant;

(b) the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the intervener;

(c) 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

(d) 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 application even if you have previously filed a submission with the Board or with Gladius on these applications.

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.

Note:  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 July 28, 2006 

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