June 13, 2008 Presentation by Richard Slocomb, M.A.Sc., P.Eng. Supervisor, Reservoir Engineering Resource Conservation Section British Columbia’s Flare Management Strategy - Update

Bill 20  New Oil and Gas Activities Act has been passed ─Consultation requirements ─Single ‘Permit’ for all oil and gas activities ─Continuation of specified enactment powers ─Enhanced C&E powers and tools ─Regulations – old and new ─Formal review and appeal mechanism  Consequential amendments also under Bill 20 ─Greenhouse gas sequestration (P&NG Act)

What’s new in Flaring  Flaring, Incinerating and Venting Reduction guideline released February  Currently recruiting for an Air Emissions Engineer  Solution gas evaluations due August 2008  Experienced our first major plan plant turn around this month

Under-balanced Drilling pilot  Encana has drilled the first under- balanced well with natural gas ─Attempted to sell the produced gas, not flare ─Sold m 3 back to pipeline ─Flared m 3 net gas ─Purchased m 3 of natural gas  Issues with max O 2 content allowed in pipeline (1% or 5%).  O2 scavenger to be used on next well