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Environment

At Encana, we believe that consistently strong environmental performance is a key indicator of our success. We set clear goals to find better ways to operate and constantly challenge ourselves to improve.

We live and work in the communities where we operate and we care about the impacts of energy development on the environment. Each area we work in brings its own unique environmental challenges. That’s why we work closely with stakeholders to gather knowledge and develop an environmental approach that is tailored to the unique physical characteristics of each operating area. These environmental considerations are fundamental to all of our activities. We seek to minimize our environmental footprint by applying innovative technology and techniques. We work to optimize water use, ensure proper water disposal, manage air emissions and limit our physical footprint.

One way that we reduce our land disturbance is through the use of our resource play hub production model. This method of extraction utilizes a single, central ‘hub’ around which underground horizontal wells are drilled in a spoke-like configuration. This technique allows us to reduce capital costs and speed up production while disturbing far less surface area. By drilling multiple wells from a single surface location, the land occupied by rigs and equipment is a fraction of conventional methods, while accessing more of the resource. The result is a collaborative, innovative process which is repeatable, reliable and reduces impacts on the surface environment.

The protection of water is also of paramount importance and we’re committed to working with stakeholders to help them understand how we safeguard this precious natural resource. We carefully select our well sites to avoid wetlands and monitor the integrity of our operations to ensure the protection of groundwater.

We understand that there is a great deal of concern and a lack of understanding about the process and effects of hydraulic fracturing. We believe it is our responsibility to manage the water we use and to speak to any misunderstanding related to our practices. We’re dedicated to addressing questions from our stakeholders in an honest and transparent manner.

“Encana continues to strive to reduce emissions intensity, responsibly source, handle and dispose of water, and increase efficiencies in its operations as it advances opportunities and practices aimed at increasing the use of natural gas as a cleaner energy source.”

David P. O’Brien Chairman of the Board, Encana Corporation

Responsible Products Program

In 2010, we developed a Responsible Products Program. The program assesses the potential health and environmental risks of each ingredient in the products used in our drilling and hydraulic fracturing fluids. Developed in concert with toxicologists and building from leading international standards and regulations, this program enables us to further our understanding of the products we use.⁽¹⁾ In developing the program, we worked with our suppliers to compile detailed product ingredient information. Product assessments have been conducted across our drilling and completions operations and we are currently analyzing the initial results. This information will help ensure we’re using the most responsible products and associated risk management practices. The program also supports our commitment to encouraging suppliers to continue developing environmentally responsible products. We are committed to keeping the public informed about the products we use in our operations and what we are doing to minimize potential environmental impacts related to their use.

For more information on our hydraulic fracturing and water management practices, please visit www.encana.com.

Partnering to mitigate water concerns

In 2010, we began an exploratory drilling program in the Marcellus Shale formation in northeastern Pennsylvania. Concerns about potential water contamination were addressed from the start. In consultation with local experts, such as Wilkes University and Lancaster-based RETTEW Associates, we conducted research to understand the unique characteristics of the shallow subsurface, as well as the location and flow of water in the area, including surface water, groundwater, private water wells and aquifers. Our research included baseline water-well testing in a one-mile radius surrounding the site of each of our initial two drilling locations. In addition to providing a baseline for both the quality and quantity of water, we established baselines for numerous other naturally occurring substances, including methane, iron and lead.

Although the wells we drilled in the Marcellus Shale formation were unsuccessful and we are no longer pursuing opportunities in Pennsylvania, this project clearly demonstrates our commitment to building trust in the communities where we operate. We often go beyond just asking our stakeholders to take us at our word. We use third-party partnerships and hold ourselves accountable to independent analysis and verification.