NOTICE OF APPLICATION
LAURUS ENERGY CANADA INC.
EXPERIMENTAL UNDERGROUND COAL GASIFICATION PROJECT
PARKLAND COUNTY
ENERGY RESOURCES CONSERVATION BOARD
APPLICATION NO. 1625048

ALBERTA ENVIRONMENT
ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT
APPLICATION NO. 001-263576
WATER ACT FILE NO. 00263751

The Energy Resources Conservation Board (ERCB/Board) has received Application No. 1625048 and Alberta Environment (AENV) has received Environmental Protection and Enhancement Act (EPEA) Application No. 001-263576 and Water Act File No. 00263751 from Laurus Energy Canada Inc. (Laurus) for approval of the proposed Experimental Underground Coal Gasification Project (the Project). This notice is to advise interested parties that the applications are available for viewing and that the ERCB, AENV, and other government departments are now undertaking a review of the applications.

Description of the Project
Laurus has applied to construct, operate, and reclaim an experimental gas recovery scheme located in the southwest quarter of Section 2, Township 51, Range 7, West of the 5th Meridian, in Parkland County, about 15 kilometres northeast of Drayton Valley, Alberta. The Project would include wells and surface facilities.

The Project would use in situ coal gasification (or underground coal gasification) technology to produce syngas at a rate of up to 70 120 standard cubic metres per day (Sm 3 /d) over an estimated one year life. The Project would use seven process wells, each of which could perform a role of either an injection well or an extraction well, depending on the surface piping and valve orientation. A total of 2300 tonnes of coal and 18 500 m 3 of groundwater would be consumed by the gasification process. The syngas collection facility would include air compression facilities, cooling facilities, separation facilities, tankage, electric generation facilities, and an incinerator. All produced syngas would be incinerated.

In support of the proposed Project, Laurus has prepared and submitted the following:

• Application No. 1625048 to the ERCB, pursuant to Section 39 of the Oil and Gas Conservation Act, for approval to construct and operate an experimental gas recovery scheme.
  
• Application No. 001-263576 to AENV under the EPEA for approval to construct and operate the Project, and to develop, operate, and reclaim components of the Project.
  
• An application (File No. 00263751) to AENV for authorizations under the Water Act to drain 18 500 m 3 of groundwater annually for drainage (dewatering) purposes from wells with production intervals of 199 m to 212 m and to construct an access road through a wetland.

To obtain a copy of the applications, contact

Laurus Energy Canada Inc.
10180 – 101 Street, Suite 1000
Edmonton, Alberta T5J 3S4
Attention: Si mon Maev
Telephone: 780-862-0134
Fax: 780-665-7456
E - mail: simon.maev@laurusenergy.com

To view a copy of the applications, contact

A copy of the application is available for viewing on the ERCB's Web site at www.ercb.ca on the Integrated Application Registry (IAR).

To File a Statement of Concern
Under Section 73 of EPEA and Section 109 of the Water Act, any person who may be directly affected by the EPEA application or the Water Act application may submit a written statement of concern. Statements of concern under EPEA must be submitted by September 9, 2010. Please quote Application No. 001-263576 ( EPEA ) or File No. 00263751 (Water Act) when submitting a statement of concern. With respect to the Water Act application, statements of concern should explain how the person filing the statement of concern may be directly affected and provide the full name, telephone number, address, and legal land description of the person filing. If no statements of concern are received, the EPEA and Water Act applications may be approved without further notice. Failure to file a statement of concern may affect the right to file a Notice of Appeal with the Environmental Appeal Board. Please submit statements of concern to

Alberta Environment
Regulatory Approvals Centre
9th Floor, Oxbridge Place
9820 – 106 Street
Edmonton, Alberta T5K 2J6
Attention: Director, Central Region
Telephone: 780-427-6311
Fax: 780-422-0154

Please note that the ERCB receives and reviews statements of concern.

Applications for Confidentiality
Energy Resources Conservation Board Rules of Practice (Rules of Practice), Section 35(1) of EPEA, and Section 15(1) of the Water Act (Ministerial) Regulation, all documents filed in respect of this proceeding must be placed on the public record. However, any party may apply for confidentiality of information. For the ERCB, parties may file a request for confidentiality in accordance with Section 13(2) of the Rules of Practice and serve a copy of such request on the other parties. For the purposes of Alberta Environment, such requests can be filed according to Section 35(4) of EPEA and Section 15(4) of the Water Act (Ministerial) Regulation.

For information about ERCB procedures, contact

Oil Sands Branch, Coal and Major Applications
Attention: Stacy MacDonald
Telephone: 403-297-8553
Fax: 403-297-8122
E-mail: stacy.macdonald@ercb.ca

Issued at Calgary, Alberta, on July 27, 2010.
ENERGY RESOURCES CONSERVATION BOARD

Patricia M. Johnston, Q.C., General Counsel