Hydraulic fracturing is a controlled operation that pumps a fluid and a propping agent through the wellbore to the target formation at a high pressure in multiple intervals, or stages. Hydraulic fracturing is a safe and proven way to develop natural gas; it has been used throughout the oil and gas industry for about 60 years. The fracturing fluids are designed to ensure effective fracturing of the target reservoir and recovery of fluids. The process breaks up the target formation, much like a stone fracturing a windshield, to create pathways that allow the gas to flow from the very low permeability reservoir toward the wellbore.

In all Encana operations, rigorous water management and protection is a vital part of this process. It all begins with proper wellbore design. Every natural gas well has a steel casing that is cemented externally to prevent fluids migrating from the wellbore and to protect local groundwater. Typically, thousands of feet of rock separate the target formations from any fresh or potable aquifers. Even with those safeguards in place, Encana uses multiple techniques to fully understand the effect of each hydraulic fracture treatment it conducts. Encana also ensures the integrity of casing and cement system through field inspection and wellbore logging. Hydraulic fracturing processes are strictly regulated by various state or provincial government agencies today. Encana meets and, in many cases exceeds, the requirements set out by the regulators.

Encana utilizes a collaborative stakeholder engagement practice to address stakeholder concerns, including hydraulic fracturing. Disclosure of the chemical additives used in fracture fluid systems is an issue that has been raised by some of our stakeholders. Encana supports the disclosure of increased information regarding the composition of the fluids we use for hydraulic fracturing and is actively encouraging our fluid suppliers, who are the owners of this information, to improve their public disclosure of fluid formulation information. Encana encourages fluid suppliers to continually advance the development of environmentally responsible fluids. Encana is continuing to improve our understanding of the potential impacts the chemicals we use in our hydraulic fracturing operations may have on the environment and we continue to work to ensure we are using the most environmentally responsible hydraulic fracturing fluid formulations and fluid management practices available. In the interim, Encana has prohibited the use of 2-BE and diesel in fracturing fluids in its operations in response to specific stakeholder concerns. Encana is committed to working collaboratively with our industry peers, trade associations including Canadian Association of Petroleum Producers (CAPP), the American Petroleum Institute (API), the Independent Petroleum Association of America (IPAA) and America's Natural Gas Alliance (ANGA), fluid suppliers and regulators to identify, develop and advance responsible hydraulic fracturing best practices.