Independent Assurance Report

To the Board of Directors and Management of Encana Corporation ("Encana"):

We have reviewed selected quantitative performance indicators (the “Subject Matter”) presented in Encana’s Corporate Responsibility Report (the “Report”) for the year ended December 31, 2010. We did not review all information included in the Report.

Subject Matter

We reviewed the selected quantitative indicators listed below and set out in the Report and in Attachment A of this Independent Assurance Report:

  • Community investment
  • Total energy use (Canadian facilities only)
  • Total direct greenhouse gas emissions
  • Nitrogen oxide emissions
  • Sulphur dioxide emissions
  • Environmental fines
  • New business conduct investigations
  • Monetary value of significant fines and total non-monetary sanctions for non-compliance with laws and regulations
  • Total staff (employees and contractors)
  • Total # and rate of voluntary employee turnover
  • Total lost time injury frequency & total recordable injury frequency

The selected quantitative performance indicators were chosen by Encana primarily on the basis of perceived external stakeholder interest. We did not review the narrative sections of the Report, except where they incorporated the Subject Matter.

Responsibilities

Encana management is responsible for the collection and presentation of the Subject Matter set out in the Report. Our responsibility is to express a conclusion, based on our assurance procedures, as to whether anything has come to our attention to suggest that the Subject Matter is not presented fairly in accordance with the relevant criteria.

Methodology & Assurance Procedures

We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000, “Assurance Engagements other than Audits or Reviews of Historical Financial Information”, issued by the International Federation of Accountants. As such, we planned and performed our work in order to provide limited assurance with respect to the Subject Matter. We obtained and evaluated evidence using a variety of procedures including:

  • Interviewing relevant Encana management and staff responsible for data collection and reporting
  • Obtaining an understanding of the management systems, processes, and controls used to generate, aggregate and report the data
  • Reviewing relevant documents and records on a sample basis
  • Testing and re-calculating quantitative information related to the selected performance indicators on a sample basis
  • Assessing the information collected for completeness, accuracy, adequacy and consistency
  • Reviewing and discussing the final version of the Report with Encana management to confirm that it reflected our findings

Our evidence-gathering procedures were more limited than required for a reasonable assurance engagement and, consequently, we do not express an audit opinion on the Subject Matter.

We carried out our work on the selected performance indicators at Encana’s offices in Calgary, Alberta and Denver, Colorado. Our assurance criteria comprised the Global Reporting Initiative Sustainability Reporting Guidelines (2006), industry standards, and Encana internal management definitions as disclosed in the Report, informed by relevant regulations. Our assurance team included individuals with social performance, environmental, and health and safety assurance experience.

Conclusion

Based on our work as described in this report, nothing has come to our attention that causes us to believe that the Subject Matter is not, in all material respects, presented fairly in accordance with the relevant criteria.

Pwc Sig

PricewaterhouseCoopers LLP
Calgary, Canada
June 6, 2011

Attachment A: Encana 2010 Corporate Responsibility Report

Assured Performance Indicators

All figures for the year ending December 31, 2010

Performance Indicator Division 2010 Value Notes
Community investment All 15,720,737 $USD
Total energy use (Canadian facilities only) Canada 35,341 Terajoules (TJ)
Total direct greenhouse gas emissions Canada 2,967 Kilotonnes Carbon Dioxide Equivalent (CO2e). Includes Cavalier Power Plant.
Total direct greenhouse gas emissions US 2,276 Kilotonnes Carbon Dioxide Equivalent (CO2e)
Nitrogen oxide emissions Canada 18,960 Tonnes NOx. Includes Cavalier Power Plant.
Nitrogen oxide emissions US 4,451 Tonnes NOx
Sulphur dioxide emissions Canada 2,949 Tonnes SO2. Includes Cavalier Power Plant.
Sulphur dioxide emissions US 21 Tonnes SO2
Environmental fines All 205,263 $USD; The amount reported for fines reflects the amount paid in the year indicated and may include fines levied in previous years.
New business conduct investigations All 49
Monetary value of significant fines and total non-monetary sanctions for non-compliance with laws and regulations All 0 $USD; The amount reported for fines reflects the amount paid in the year indicated and may include fines levied in previous years; Encana defines significant fines as anything over $3 million USD.
Total staff (employees and contractors) All 5,062 Contractors refers to contract personnel engaged to perform services for Encana; Statistics exclude service companies; All numbers represent a snapshot as at December 31, 2010 and are full-time equivalent rounded.
Total # of voluntary employee turnover All 155
Total rate of voluntary employee turnover All 3.7 Percentage of total staff
Total lost time injury frequency All .15 Expressed as number of lost time incidents per 200,000 exposure hours; Frequency rates were calculated based upon known and recorded incidents as at January 24, 2011; Estimation of contractor hours is based upon gross operational and gross capital expenditures using Canadian Association of Petroleum Producers 2008 conversion factors for contractors working in Canada and the American Petroleum Institute conversion factors for contractors working in the USA.
Total recordable injury frequency All .68 Expressed as number of recordable incidents per 200,000 exposure hours; Frequency rates were calculated based upon known and recorded incidents as at January 24, 2011; Estimation of contractor hours is based upon gross operational and gross capital expenditures using Canadian Association of Petroleum Producers 2008 conversion factors for contractors working in Canada and the American Petroleum Institute conversion factors for contractors working in the USA.