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EnCana Class Action Settlement Information

Welcome to the Information Web Site for the

EnCana Class Action Settlement

If you have received royalty payments from EnCana Oil and Gas (USA) Inc. ("EnCana") on natural gas production in the state of Colorado, a proposed Class Action Settlement may affect your rights.

DISTRICT COURT : FINDINGS OF FACT AND CONCLUSIONS OF LAW REGARDING CLASSCOUNSEL'S MOTION FOR ATTORNEYS' FEES, EXPENSES AND INCENTIVEAWARD PAYMENTS TO CLASS REPRESENTATIVES

DISTRICT COURT: FINAL JUDGMENT AND ORDER OF DISMISSAL WITH PREJUDICE

COURT OF APPEALS: ORDER

COURT OF APPEALS: AMENDED ANSWER BRIEF OF THE PLAINTIFFS AND THE CLASS

COLORADO SUPREME COURT: ORDER FOR DENYING THE PETITION FOR WRIT OF CERTIORARI

Order Granting Preliminary Approval of Class Settlement

Mailed Notice of the Proposed Class Settlement

Settlement Agreement

What is this Class Action about?

As previously outlined in Publication Notices and Direct Mailings to the members of the defined Class, in April 2005, a class action lawsuit ("the Lawsuit") was filed in the District Court for the City and County of Denver, Colorado, in which the Plaintiffs asserted claims against EnCana for royalty underpayments on natural gas produced by EnCana in the state of Colorado. In the Lawsuit, the Plaintiffs are seeking money damages, and are also requesting that EnCana change its royalty payment methods on future natural gas production in Colorado.

On May 30, 2006, the Court ruled that the Lawsuit may proceed as a class action.

What is the status of the Class Action?

The Denver District Court granted final approval of the parties' Class settlement in this case on August 26, 2008. After the District Court granted final approval, two members of the Class who were objecting to the Class settlement filed an appeal with the Colorado Court of Appeals. After full briefing, on June 11, 2009, the Colorado Court of Appeals affirmed the Denver District Court's final judgment approving the Class settlement. The objectors thereafter filed a Petition asking the Colorado Supreme Court to further review the case. On October 13, 2009, the Colorado Supreme Court denied the objectors' Petition, thus concluding the appeal.

Am I a Class member?

You may be a member of the Class if you are a person or entity to whom EnCana and/or its predecessors have paid royalties or overriding royalties on natural gas produced from wells located in the state of Colorado. Some royalty owners are excluded from the Class. To determine if you are a Class member, you should read the detailed mailed Notice of Proposed Class Action Settlement, which you may access by clicking on the appropriate link above.

What does the Settlement provide?

Under the terms of the proposed Class Settlement, EnCana has agreed to pay a monetary amount of $40,000,000 to settle the Lawsuit ("Settlement Fund"), inclusive of attorneys' fees and costs and any incentive awards to the named Class Representatives. All eligible Class Members will receive a pro-rata distribution of the Settlement Fund, based primarily on the volume of gas produced and sold by EnCana attributable to their royalty interests during a pre-determined period of time, in proportion to the total volume attributable to all of the royalty interests for all members of the Class over that same period.

The proposed Class Settlement also provides for specific future royalty methods for the calculation of the Class Members' royalty payments on natural gas produced in Colorado on and after January 1, 2009. The Class Members' royalties on and after January 1, 2009 will be paid pursuant to one of the applicable future payment methods specifically described in the Settlement Agreement. You may access the Settlement Agreement by clicking on the appropriate link above.

If the Court finally approves the proposed Class Settlement, there will be an automatic pro-rata distribution of the net Settlement Fund to the Class Members. If you are a member of the Class, you do not need to take any action to receive your allocated share of the net Settlement Fund.

Am I bound by the Settlement?

If you are a Class Member and you did not timely exclude yourself from the Class by January 30, 2008, after receiving a mailed Notice of the certification of the Class, you will be bound by the terms of the Settlement as set forth in the Settlement Agreement, provided that the Court finally approves the proposed Class Settlement.

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The Kansas City Law Offices of George A. Barton, P.C., represents business clients and individuals throughout Missouri, including communities such as Kansas City, Independence, Lee's Summit, Overland Park, Liberty, and St. Louis, Missouri. We also represent plaintiffs in class action lawsuits and oil company disputes nationally, including states such as Kansas, Colorado, Arizona, California, Indiana, Kentucky, New York, Idaho, New Mexico, North Carolina, Missouri and Florida.

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