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Use of Pre-Planning Devon GIS Technology for Reduction of Environmental Footprint

NYSE: DVN. www.devonenergy.com. page 2. Pre-Planning

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Use of Pre-Planning Devon GIS Technology for Reduction of Environmental Footprint

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    1. Use of Pre-Planning & Devon GIS Technology for Reduction of Environmental Footprint May 22, 2008 2008 National Fluid Minerals Conference Albuquerque, New Mexico

    2. NYSE: DVN www.devonenergy.com page 2 Pre-Planning & Devon GIS Technology 2008 National Fluid Minerals Conference

    3. NYSE: DVN www.devonenergy.com page 3 Agenda Pre-Planning & Devon GIS Technology Pre-Planning Introduction Plan of Development Benefits Devon GIS Technology Integration Project Planning Examples Benefits Conclusion

    4. NYSE: DVN www.devonenergy.com page 4 Pre-Planning Introduction Conducted prior to the official submittal of either the Plans of Development (PODs) or the Applications to Drill (APDs) Wildlife, Hydrology, Soil, Archaeology and Special Management Area Boundaries Increase communication, awareness and cooperation with the BLM Encourages open dialogue with each BLM discipline to facilitate planning efficiency

    5. NYSE: DVN www.devonenergy.com page 5 Pre-Planning Plan of Development North Pure Gold POD - Five proposed drilling locations spotted with proposed associated pipelines, power lines, access roads, salt water disposal line and gas gathering lines Due to the magnitude of the project and potentially unforeseeable impacts, a meeting was coordinated with the BLM Carlsbad office Sensitive environmental / ecosystem areas Wildlife habitat Water resources Location of access roads, gathering lines and powerlines

    6. NYSE: DVN www.devonenergy.com page 6 Pre-Planning Pre-Planning Plan of Development

    7. NYSE: DVN www.devonenergy.com page 7 Pre-Planning Benefits Eliminates multiple site surveys, location moves, archaeological reports and unnecessary re-compilation of reports for a drilling prospect Saves time, resources and lowers costs associated with each well Cost of surveyors: Average $2,000 Archaeological contractors: Average $3,000 Reduction of APD re-submittals: Current cost $4,000/per APD Expedites APD review process internally and externally SENM team’s time utilized more efficiently Ensures energy development is conducted in an environmentally responsible manner

    8. NYSE: DVN www.devonenergy.com page 8 Pre-Planning Benefits Minimize environmental disturbances and impact on wildlife habitat Increase drilling efficiency Limit habitat fragmentation for the Lesser Prairie Chickens and Sand Dunes Lizard species Meet the needs of the BLM in developing, establishing and implementing best management practices

    9. NYSE: DVN www.devonenergy.com page 9 Devon GIS Technology Integration BLM Base Map Incorporation into Devon GIS System Enables the Devon SENM team to have the tools to do pre-evaluation checks Devon Enhancements Include: IHS Data – PI Dwights shape file operated & non-operated wells USGS (United States Geologic Survey) Topographic Map Aerial Maps (5) for Eddy, Chaves, Lea & Roosevelt counties City of Carlsbad City Limits Boundary Devon Leasehold Shape File Denotes Devon Minerals & Leases Denotes Federal & State Lease Numbers

    10. NYSE: DVN www.devonenergy.com page 10

    11. NYSE: DVN www.devonenergy.com page 11

    12. NYSE: DVN www.devonenergy.com page 12 Devon GIS Technology Project Planning Example No. 2

    13. NYSE: DVN www.devonenergy.com page 13 Devon GIS Technology Project Planning Example No 2 Shugart 25 Federal 3-7 locations summary: (4/5 locations moved) #3 Move 100’ east to avoid dune complex for Mule Deer #4 Move 700’ west to avoid Sand Dunes Lizard model study area (Sand Dunes Lizard seen in this area) and to also avoid pipeline #5 Location ok per BLM Wildlife Biologist, Archaeologist and Surface Protection Specialist #6 Move 104’ north & 105’ west to avoid location being on top of pipeline and at minimum 200 meters away from Sand Dunes Lizard complex #7 Move 330’ west to avoid Sand Dunes Lizard complex and move location closer to existing pipeline directly south

    14. NYSE: DVN www.devonenergy.com page 14 Devon GIS Technology Benefits Environmental Benefits Minimize impact on wildlife habitat by reducing habitat fragmentation Minimize environmental disturbance by using existing pipeline corridors Cooperation and Collaboration Benefits Identify possible resource issues/conflicts and requirements Minimization of surprises and permitting delays Streamline APD processing Create a more efficient and refined permitting process Potential Cost Benefits to Devon - Shugart 25 Federal 3-7 Surveyors – Cost to re-stake: 4 x $2000 = $8,000 APD Processing Fee: 3 x $4000 = $12,000 Archaeological Contractors: 2 x $3000 = $6,000 Avoids delay/loss of equipment/rig availability; $15,000- $18,000/day

    15. NYSE: DVN www.devonenergy.com page 15 Conclusion The NM Team is continuously searching for new best management practices (BMPs) to help us reduce the impacts of oil and gas development on the environment and ensure that ongoing energy development is being conducted in an environmentally responsible manner. Stewardship is a core value at Devon. The NM Team believes that an investment in the environment is an investment in the future of our business.

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