EnCana to seek FERC jurisdiction over natural gas pricing claims in U.S.

CALGARY, Alberta (May 23, 2003) - EnCana Corporation plans to request that the court determine that the only appropriate forum for review of the matters raised in a private lawsuit against EnCana and one of its subsidiaries by E. & J. Gallo Winery with respect to natural gas sales is the U.S. Federal Energy Regulatory Commission (FERC).

EnCana believes that FERC, which is responsible for regulating the U.S. natural gas and power industry, has the knowledge, experience, expertise and lawful jurisdiction for dealing with natural gas markets and pricing.

EnCana also intends to request that the court make a similar determination on FERC jurisdiction over the matters raised in another recently filed claim relating to natural gas pricing. Nine energy firms, including EnCana Corporation and a Houston-based EnCana merchant energy subsidiary that discontinued operations in 2002, have been named in this class action lawsuit in California. The lawsuit allegations relate to sales of natural gas in California during 2000 and 2001 and are essentially similar to the allegations contained in the Gallo claim, which was previously disclosed in EnCana's Management Discussion and Analysis on May 16, 2003.

"Class action lawsuits have become commonplace in California and their proliferation is an unfortunate negative in doing business there," said Gwyn Morgan, EnCana's President and Chief Executive Officer. "All of the legal matters involving EnCana deal with the discontinued operations of a Houston-based merchant energy subsidiary of the former PanCanadian Energy Corporation. At the time of the merger creating EnCana more than one year ago, the decision was made to exit this business and the Houston merchant energy office was closed."

Sales of natural gas to California consumers during 2000 and 2001 by PanCanadian Energy Services Inc., the Houston-based merchant energy subsidiary of the former PanCanadian Energy Corporation, a predecessor company of EnCana, represented less than 4 percent of the natural gas reported to have been consumed in California during that period.

No assurance can be given that the court applications will be successful.

EnCana intends to vigorously defend against these lawsuits.

For further information:

Investor contact:
EnCana Corporate Development
Sheila McIntosh
Senior Vice-President, Investor Relations
(403) 645-2194

Greg Kist
Manager, Investor Relations
(403) 645-4737

Media contact:
Alan Boras
Manager, Media Relations
(403) 645-4747


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