September, 2002September, 2002

An Overview of Atlantic Canada An Overview of Atlantic Canada Exploration and the Environmental Exploration and the Environmental Legislative Process, Offshore Nova Legislative Process, Offshore Nova Scotia, CanadaScotia, Canada

John HoggJohn HoggVice President, Atlantic CanadaVice President, Atlantic Canada

Offshore New Ventures ExplorationOffshore New Ventures Exploration

Facts about EnCana CorporationFacts about EnCana Corporation High quality assets – Opportunity Rich PortfolioHigh quality assets – Opportunity Rich Portfolio

Strong North American natural gas strategyStrong North American natural gas strategy

Superior oil growth; domestic and internationalSuperior oil growth; domestic and international

Balance sheet positioned for growthBalance sheet positioned for growth

590,000 BOE daily production (2002F, after royalties);590,000 BOE daily production (2002F, after royalties);64% gas64% gas

2.3 billion BOE proved reserves (year-end 2001,2.3 billion BOE proved reserves (year-end 2001,after royalties); 51% gasafter royalties); 51% gas

90% of reserves and production in North America90% of reserves and production in North America36 million acres net undeveloped land 36 million acres net undeveloped land

Approximately US$20 billion Value (as of July 24, 2002)Approximately US$20 billion Value (as of July 24, 2002)

Division Breakdown

2002 EnCana Capital Budget2002 EnCana Capital BudgetUS$3.2 Billion Gross*US$3.2 Billion Gross*

Onshore North America Breakdown

SAGD

6%

Syncrude9%

Natural Gas63%

Other Oil

22%

Offshore & New Ventures Exploration

14%

Offshore &International Development

12%

Onshore North America69%

Marketing & Midstream5%

* Prior to planned net dispositions of US$950 million

Halifax

A World Class International IndependentA World Class International Independent

Houston

Calgary

Quito

London

DubaiBahrain/QatarBahrain/Qatar

YemenYemen

AustraliaAustralia

U.K. North SeaU.K. North Sea

Atlantic CanadaAtlantic Canada

EcuadorEcuador

U.S. Gulf of MexicoU.S. Gulf of Mexico

Offices

International ProjectsInternational Projects

Legend

Rio de Janeiro

Sana’a

DohaN’Djamena

ChadChad

GhanaGhana

Alaska/Mackenzie DeltaAlaska/Mackenzie Delta

BrazilBrazil

Western Canada Western Canada

Atlantic CanadaAtlantic Canada

U.K.U.K.

Gulf of MexicoGulf of Mexico

EcuadorEcuador

U.S. RockiesU.S. Rockies

Six Key Growth PlatformsSix Key Growth Platforms

North of 60°North of 60°

SaskatchewanSaskatchewan

Grand BanksGrand Banksand Scotian Shelfand Scotian Shelf

Other FrontierOther Frontier

BritishBritishColumbiaColumbia 50505050 AlbertaAlberta

270270270270

63636363

175175175175

(includes other regions offshore East Coast & West Coast)

99Remaining

Produced

Source: National Energy Board / Canadian Association of Petroleum Producers Source: National Energy Board / Canadian Association of Petroleum Producers

Canada: How Much Gas is Out There?Canada: How Much Gas is Out There?

Item 1

Item 1

89898989

HalifaxHalifax

St. John’sSt. John’s

Scotian ShelfScotian Shelf

GrandGrandBanksBanks

Sable Offshore Sable Offshore Energy ProjectEnergy Project

150 km150 km

St. JohnSt. John

HiberniaHiberniaCharlottetownCharlottetown

TerraTerraNovaNova

Deep Deep PanukePanuke

Atlantic CanadaAtlantic Canada

BangorBangor

HiberniaHiberniaProductionProductionPlatformPlatform

Terra Nova Floating Production SystemTerra Nova Floating Production System

HalifaxHalifax

Atlantic Canada Gas TransportationAtlantic Canada Gas Transportation

Anticosti Basin Anticosti Basin

MagdalenMagdalenBasinBasin

Scotia

n Bas

inEnCana’sDeep Panuke400 MMcf/d – 2005

St. John’sSt. John’s

SOEI ~ 500 MMcf/d

BostonBoston

Sable Offshore Energy PlatformsSable Offshore Energy Platforms

Sable Thebaud Central FacilitySable Thebaud Central Facility

Deep Panuke Facilities DesignDeep Panuke Facilities Design

Atlantic Canada Mesozoic SubbasinsAtlantic Canada Mesozoic Subbasins60°W65°W70°W

New Brunswick P.E.I.

Newfoundland

GrandGrandBanksBanks

Laurentian Channel

Laurentian Channel

2000

km

45°N

200m200m

Nova Scotia

Scotian ShelfScotian Shelf

2000m2000m

2000m2000m

Quebec

200m200m

200m200m

45°W50°W55°W

45°N

50°N

HalifaxHalifax

St. John’sSt. John’s

Atlantic CanadaAtlantic CanadaRegional Land OverviewRegional Land Overview

45°N

50°N

P.E.I.P.E.I.

NewfoundlandNewfoundland

GrandBanks

120 Miles

Nova ScotiaNova Scotia

Scotian Shelf

2000m

200m

200m

NewNewBrunswickBrunswick

60°W65°W 55°W 50°W

200m

2000m

Laurentian Channel

45°W

EnCana Corporation Acreage

Scotian Shelf SubbasinsScotian Shelf SubbasinsSydney

LaHave

New BrunswickP.E.I.

200m200m

2000m2000m

60 Miles60 Miles

Scotian ShelfScotian Shelf

HalifaxHalifaxFundy

45° N45° N

Abenaki

GeorgesBank

Shelbourne

Banquereau

OrpheusGraben

Laurentian

Scotian Salt Province

60°W60°W65°W65°W 55°W55°W

Nova Scotia

SOEISOEI

Regulation of Canada East Coast WatersRegulation of Canada East Coast Waters

The Government of Canada and the Atlantic The Government of Canada and the Atlantic Provinces agreed to jointly administer the Provinces agreed to jointly administer the offshore by use of independent offshore boardsoffshore by use of independent offshore boards

Two Boards: Canada-Nova Scotia and Canada-Two Boards: Canada-Nova Scotia and Canada-Newfoundland Offshore Petroleum BoardsNewfoundland Offshore Petroleum Boards

Boards consist of two federal, two provincial and Boards consist of two federal, two provincial and one joint membersone joint members

Each Board Staff Administers: HSE, Resource Each Board Staff Administers: HSE, Resource Rights, Local Benefits, and Operations Rights, Local Benefits, and Operations ManagementManagement

Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board Mission StatementMission Statement To regulate petroleum activities offshore Nova Scotia in an efficient, fair and To regulate petroleum activities offshore Nova Scotia in an efficient, fair and

competent manner.competent manner.

MandateMandate The Canada-Nova Scotia Offshore Petroleum Board is the independent joint The Canada-Nova Scotia Offshore Petroleum Board is the independent joint

agency of the Governments of Canada and Nova Scotia established pursuant to agency of the Governments of Canada and Nova Scotia established pursuant to the federal Canada-Nova Scotia Offshore Petroleum Resources Accord the federal Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the provincial Canada-Nova Scotia Offshore Petroleum Implementation Act and the provincial Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act. It is responsible for Resources Accord Implementation (Nova Scotia) Act. It is responsible for regulation of petroleum affairs and safe practices offshore Nova Scotia.regulation of petroleum affairs and safe practices offshore Nova Scotia.

The Board's principal responsibilities includeThe Board's principal responsibilities include Ensuring the safe conduct of offshore operations Ensuring the safe conduct of offshore operations

Protection of the environment during offshore petroleum activities Protection of the environment during offshore petroleum activities

Management of offshore oil and gas resources Management of offshore oil and gas resources

Review of industrial benefits and employment opportunities Review of industrial benefits and employment opportunities

Issuance of licenses for offshore exploration and development Issuance of licenses for offshore exploration and development

Resource evaluation, data collection and distributionResource evaluation, data collection and distribution

CNSOPB Land Issuance & Program ProceduresCNSOPB Land Issuance & Program ProceduresOverviewOverview

Nomination of Land

CNSOPB Strategic EA

Call for Bids

Exploration License

Seismic Program

Geophysical Program

Geotechnical Program

Drilling Program

Environmental Procedures for EL’sEnvironmental Procedures for EL’sStandard Field Program (Common)Standard Field Program (Common)

Environmental Assessment (EA)

Oil Spill Response Plan

(OSRP)

Additional Program Specific

Requirements

Program’s Approval

Reporting

Operational Procedures

Consultation ProcessPL

AN

NIN

GR

EPT.

OPS

Environmental ProceduresEnvironmental ProceduresSeismic Program (Specific Process)Seismic Program (Specific Process)

Environmental AssessmentIdentify critical time/areas for fishing/mammals/spawning

OSRP

Program’s Approval

FLO Report

Fisheries Liaison Observer (FLO)Ramp-up of airguns

Consultation•FEAC (Fisheries Environmental Advisory Committee) Meeting

•Direct information to Fisheries Representatives

•Consultation through Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) and the Federal Departments of Environment Canada and the Department of Fisheries and Oceans (DFO)

•Notices to Mariners

•Fisheries Compensation

PLA

NN

ING

REP

T.O

PS

Environmental ProceduresEnvironmental ProceduresExploration Drilling Program, Pre-Drill (Specific Process)Exploration Drilling Program, Pre-Drill (Specific Process)

Environmental Assessment

OSRP

Program’s Approval

Consultation

•FEAC (Fisheries Environmental Advisory Committee) meeting

•direct info to fisheries reps

•consultation through CNSOPB, Environment Canada and DFO

PLA

NN

ING

Baseline Benthic

Data

Drilling Chemical Screening

Rig’s Metocean Equipment

Metocean Data for

Certifying Authority

Environmental ProceduresEnvironmental ProceduresExploration Drilling, While Drilling, (Specific Process)Exploration Drilling, While Drilling, (Specific Process)

Physical Environmental

Monitoring Program (meteo, waves, currents)

Consultation

• Notices to Mariners

• Fisheries Compensation

REP

T.O

PER

ATI

ON

S

OWTG (oil on cuttings,

bilge/ballast/deck drainage water,

sanitary/food waste…)

Environmental Monitoring

Program (EMP)(bird monitoring, benthic survey, tainting study…)

Metocean End of Well Report

Env. Compliance Monitoring Data

ECM Rpt

FLO Report

FLO (optional)

Environmental ProceduresEnvironmental ProceduresEnvironmental Assessment Process 2003 ModificationsEnvironmental Assessment Process 2003 Modifications

Existing CNSOPB Process (Timelines)Existing CNSOPB Process (Timelines) 30-day review by CNSOPB, DFO, Environment Canada30-day review by CNSOPB, DFO, Environment Canada NS Seismic Class Screening EA (1998, LGL document)NS Seismic Class Screening EA (1998, LGL document) NS Drilling Generic Assessment (2000, LGL document)NS Drilling Generic Assessment (2000, LGL document)

New CEAA (Canadian Environmental Assessment Act) Process New CEAA (Canadian Environmental Assessment Act) Process TimelinesTimelines

Effective Q1/03 (earliest)Effective Q1/03 (earliest) Screening Study: wellsite surveys, seismic surveys, and exploration drilling in area Screening Study: wellsite surveys, seismic surveys, and exploration drilling in area

previously assessed under CEAApreviously assessed under CEAA 6-month review6-month review

Comprehensive Study: exploration drilling in new areaComprehensive Study: exploration drilling in new area 12-month review12-month review

Websites for Additional InformationWebsites for Additional Information Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board

– www.cnsopb.ns.cawww.cnsopb.ns.ca

Canada Newfoundland Offshore Petroleum BoardCanada Newfoundland Offshore Petroleum Board– www.cnsopb.nfnet.com/www.cnsopb.nfnet.com/

Terra Nova ProjectTerra Nova Project– http://www.terranovaproject.com/http://www.terranovaproject.com/

HiberniaHibernia– www.hibernia.ca/www.hibernia.ca/

Sable Offshore Energy Inc.Sable Offshore Energy Inc.– www.soep.comwww.soep.com