Take notice that the Shell Canada Limited (Shell) has made application to the Alberta Energy and Utilities Board (EUB) for approval of its Optimization Project at the Shell Waterton sour gas processing plant. Shell has also applied to Alberta Environment (AENV) for renewal of an existing approval to operate the Waterton sour gas processing plant; this application includes the Optimization Project. The EUB application deals with the approvals necessary to construct and operate the equipment as reflected in the application. The EPEA application covers construction, operation and reclamation of the various components of the plant, and addresses air emissions, releases of industrial wastewater, domestic wastewater, surface runoff, groundwater monitoring, soil monitoring, and the potable waterworks system. The main focus of the EPEA application is the Optimization Project. Both regulatory processes are laid out below, including contact information.

In accordance with Section 39(1)(b) of the Oil and Gas Conservation Act, Shell is requesting approval to amend the existing gas processing facility in the Waterton Field. The facility is located at Legal Subdivision (LSD) 2, Section 20 of Township 4, Range 30, West of the 4th Meridian, south of Pincher Creek.

The facility would be designed to process 5050 thousand cubic metres (10³ m³) per day of sour natural gas with a maximum hydrogen sulphide content of 212 moles per kilomole (21 per cent) from which 2712 10³m³ per day of sales gas, 546 m³ per day would be recovered. The facility would be designed to recover approximately 1450 tonnes per day of sulphur. The facility is located approximately 20 kilometres south of Pincher Creek.

The existing Shell Waterton Gas Plant consists of two parallel plants, a SCOT tail gas unit and a deep cut cryogenic unit for liquid recovery. Shell has indicated that the plant is being significantly underutilized due to a number of factors including production decline in the fields feeding the plant. To address the operational and economic inefficiencies, Shell's proposed Optimization Project will involve the following changes to the Plant:

• Shutdown of Plant 1;

• Shutdown of SCOT tail gas unit;

• Installation of SUPERCLAUS in Plant 2;

• Incinerator replacement

• Debottlenecking Plant 2

• Modifying Sales Gas Compressors in Plant 2; and

• Relocation of produced water facilities.

This Notice of Application is being distributed to advise interested persons that the applications are available, and that the EUB, AENV and other governmental departments are now undertaking reviews of the applications.

To obtain additional information or a copy of the EUB application, contact:

Shell Canada Limited
400-4^th Avenue, S.W.
P.O. Box 100, Station M
Calgary, Alberta T2P 2H5
Attention: Brian Fung, telephone: (403) 692-2359, fax: (403) 640-8327
Email: brian.fung@shell.com

Copies of both the EUB and AENV applications will be available for viewing at the

EUB's Calgary office and at the Pincher Creek Municipal Library:

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

Pincher Creek Municipal Library Hours of operation: Tues/Thur:10:00am 5:00pm

899 Main Street 7:00pm 9:00pm
Pincher Creek , AB  Wed/Fri: 10:00am 5:00pm
Telephone: (403) 627-3813 Sat: 12:30pm 5:00pm

For information about EUB procedures, contact:

If you have an interest in this application and you wish to file a submission, please state in writing your reasons for filing by no later than October 14, 2005. Send one copy of your submission to the applicant at the name and address above and another copy to:

Evan Knox, C.E.T., Application Coordinator
Facilities Applications Group, Applications Branch
Alberta Energy and Utilities Board
640 - 5th Avenue SW
Calgary, Alberta T2P 3G4

Any submission filed with the EUB 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,

(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

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;

(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, AENV or with Shell on this application.

In accordance with the Environmental Protection and Enhancement Act, Shell Canada Limited has applied to Alberta Environment for a renewal of an existing approval to operate the Waterton sour gas processing plant. The renewal application includes the optimization project that will result in the upgrading of Plant 2 and the decommissioning of Plant 1. The operation is located in Sections 13 and 24 of Township 4, Range 1, West of the 5th Meridian and Sections 17, 20 and 21 of Township 4, Range 30, West of the 4th Meridian (approximately 20 kilometres south of Pincher Creek). The raw gas processing capacity will be 5,050 x 10³ m³/day (1450 t/d sulphur equivalent) and the sulphur recovery efficiency will be maintained at 98.7% following optimization.

Pursuant to section 73 of the Environmental Protection and Enhancement Act, any person who is directly affected by this operation may submit a written statement of concern regarding this application. A statement of concern must be submitted to:

Director of Southern Region
Alberta Environment
Regulatory Approvals Centre
Main Floor, 9820 106 Street
Edmonton, Alberta T5K 2J6
Fax: (780) 422-0154

within 30 days of the date of this notice. Please quote Application No. 011-258 when submitting a statement of concern in regards to the Environmental Protection and Enhancement Act application.

Failure to file a statement of concern may affect the right to file a Notice of Appeal with the Environmental Appeal Board after a decision is made.

Copies of the EPEA application and additional information can be obtained from:

Shell Canada Limited
Attention: Rod Plesko
P.O. Box 1088
Pincher Creek, Alberta T0K 1W0
Telephone: (403) 627-7278
Fax: (403) 627-7129

Submissions relating exclusively to compensation for land usage are not dealt with by the EUB or Alberta Environment 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 with the EUB in respect of this proceeding must be placed on the public record unless otherwise ordered by the Board.

Issued at Calgary, Alberta, on September 14, 2005.

ALBERTA ENERGY AND UTILITIES BOARD