Devon Energy (DVN)

 

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state statutes. In response to liabilities associated with these activities, accruals have been established when reasonable estimates are possible. Such accruals primarily include estimated costs associated with remediation. Devon has not used discounting in determining its accrued liabilities for environmental remediation, and no material claims for possible recovery from third-party insurers or other parties related to environmental costs have been recognized in Devon’s consolidated financial statements. Devon adjusts the accruals when new remediation responsibilities are discovered and probable costs become estimable, or when current remediation estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers are involved in matters in which it has been alleged that such subsidiaries are potentially responsible parties (“PRPs”) under CERCLA or similar state legislation with respect to various waste disposal areas owned or operated by third parties. As of December 31, 2008, Devon’s balance sheet included $1 million of noncurrent accrued liabilities, reflected in other liabilities, related to these and other environmental remediation liabilities. Devon does not currently believe there is a reasonable possibility of incurring additional material costs in excess of the current accruals recognized for such environmental remediation activities. With respect to the sites in which Devon subsidiaries are PRPs, Devon’s conclusion is based in large part on (i) Devon’s participation in consent decrees with both other PRPs and the Environmental Protection Agency, which provide for performing the scope of work required for remediation and contain covenants not to sue as protection to the PRPs, (ii) participation in groups as a de minimis PRP, and (iii) the availability of other defenses to liability. As a result, Devon’s monetary exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state statutes. In response to liabilities associated with these activities, accruals have been established when reasonable estimates are possible. Such accruals primarily include estimated costs associated with remediation. Devon has not used discounting in determining its accrued liabilities for environmental remediation, and no material claims for possible recovery from third-party insurers or other parties related to environmental costs have been recognized in Devon’s consolidated financial statements. Devon adjusts the accruals when new remediation responsibilities are discovered and probable costs become estimable, or when current remediation estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers are involved in matters in which it has been alleged that such subsidiaries are potentially responsible parties (“PRPs”) under CERCLA or similar state legislation with respect to various waste disposal areas owned or operated by third parties. As of December 31, 2008, Devon’s balance sheet included $1 million of noncurrent accrued liabilities, reflected in other liabilities, related to these and other environmental remediation liabilities. Devon does not currently believe there is a reasonable possibility of incurring additional material costs in excess of the current accruals recognized for such environmental remediation activities. With respect to the sites in which Devon subsidiaries are PRPs, Devon’s conclusion is based in large part on (i) Devon’s participation in consent decrees with both other PRPs and the Environmental Protection Agency, which provide for performing the scope of work required for remediation and contain covenants not to sue as protection to the PRPs, (ii) participation in groups as a de minimis PRP, and (iii) the availability of other defenses to liability. As a result, Devon’s monetary exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to
environmental remediation activities associated with past
operations, such as the Comprehensive Environmental Response,
Compensation, and Liability Act (“CERCLA”) and similar
state statutes. In response to liabilities associated with these
activities, accruals have been established when reasonable
estimates are possible. Such accruals primarily include
estimated costs associated with remediation. Devon has not used
discounting in determining its accrued liabilities for
environmental remediation, and no material claims for possible
recovery from third-party insurers or other parties related to
environmental costs have been recognized in Devon’s
consolidated financial statements. Devon adjusts the accruals
when new remediation responsibilities are discovered and
probable costs become estimable, or when current remediation
estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers
are involved in matters in which it has been alleged that such
subsidiaries are potentially responsible parties
(“PRPs”) under CERCLA or similar state legislation
with respect to various waste disposal areas owned or operated
by third parties. As of December 31, 2008, Devon’s
balance sheet included $1 million of noncurrent accrued
liabilities, reflected in other liabilities, related to these
and other environmental remediation liabilities. Devon does not
currently believe there is a reasonable possibility of incurring
additional material costs in excess of the current accruals
recognized for such environmental remediation activities. With
respect to the sites in which Devon subsidiaries are PRPs,
Devon’s conclusion is based in large part on
(i) Devon’s participation in consent decrees with both
other PRPs and the Environmental Protection Agency, which
provide for performing the scope of work required for
remediation and contain covenants not to sue as protection to
the PRPs, (ii) participation in groups as a de minimis
PRP, and (iii) the availability of other
defenses to liability. As a result, Devon’s monetary
exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to
environmental remediation activities associated with past
operations, such as the Comprehensive Environmental Response,
Compensation, and Liability Act (“CERCLA”) and similar
state statutes. In response to liabilities associated with these
activities, accruals have been established when reasonable
estimates are possible. Such accruals primarily include
estimated costs associated with remediation. Devon has not used
discounting in determining its accrued liabilities for
environmental remediation, and no material claims for possible
recovery from third-party insurers or other parties related to
environmental costs have been recognized in Devon’s
consolidated financial statements. Devon adjusts the accruals
when new remediation responsibilities are discovered and
probable costs become estimable, or when current remediation
estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers
are involved in matters in which it has been alleged that such
subsidiaries are potentially responsible parties
(“PRPs”) under CERCLA or similar state legislation
with respect to various waste disposal areas owned or operated
by third parties. As of December 31, 2008, Devon’s
balance sheet included $1 million of noncurrent accrued
liabilities, reflected in other liabilities, related to these
and other environmental remediation liabilities. Devon does not
currently believe there is a reasonable possibility of incurring
additional material costs in excess of the current accruals
recognized for such environmental remediation activities. With
respect to the sites in which Devon subsidiaries are PRPs,
Devon’s conclusion is based in large part on
(i) Devon’s participation in consent decrees with both
other PRPs and the Environmental Protection Agency, which
provide for performing the scope of work required for
remediation and contain covenants not to sue as protection to
the PRPs, (ii) participation in groups as a de minimis
PRP, and (iii) the availability of other
defenses to liability. As a result, Devon’s monetary
exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state statutes. In response to liabilities associated with these activities, accruals have been established when reasonable estimates are possible. Such accruals primarily include estimated costs associated with remediation. Devon has not used discounting in determining its accrued liabilities for environmental remediation, and no material claims for possible recovery from third party insurers or other parties related to environmental costs have been recognized in Devon’s consolidated financial statements. Devon adjusts the accruals when new remediation responsibilities are discovered and probable costs become estimable, or when current remediation estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers are involved in matters in which it has been alleged that such subsidiaries are potentially responsible parties (“PRPs”) under CERCLA or similar state legislation with respect to various waste disposal areas owned or operated by third parties. As of December 31, 2007, Devon’s balance sheet included $3 million of noncurrent accrued liabilities, reflected in other liabilities, related to these and other environmental remediation liabilities. Devon does not currently believe there is a reasonable possibility of incurring additional material costs in excess of the current accruals recognized for such environmental remediation activities. With respect to the sites in which Devon subsidiaries are PRPs, Devon’s conclusion is based in large part on (i) Devon’s participation in consent decrees with both other PRPs and the Environmental Protection Agency, which provide for performing the scope of work required for remediation and contain covenants not to sue as protection to the PRPs, (ii) participation in groups as a de minimis PRP, and (iii) the availability of other defenses to liability. As a result, Devon’s monetary exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to
environmental remediation activities associated with past
operations, such as the Comprehensive Environmental Response,
Compensation, and Liability Act (“CERCLA”) and similar
state statutes. In response to liabilities associated with these
activities, accruals have been established when reasonable
estimates are possible. Such accruals primarily include
estimated costs associated with remediation. Devon has not used
discounting in determining its accrued liabilities for
environmental remediation, and no material claims for possible
recovery from third party insurers or other parties related to
environmental costs have been recognized in Devon’s
consolidated financial statements. Devon adjusts the accruals
when new remediation responsibilities are discovered and
probable costs become estimable, or when current remediation
estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers
are involved in matters in which it has been alleged that such
subsidiaries are potentially responsible parties
(“PRPs”) under CERCLA or similar state legislation
with respect to various waste disposal areas owned or operated
by third parties. As of December 31, 2007, Devon’s
balance sheet included $3 million of noncurrent accrued
liabilities, reflected in other liabilities, related to these
and other environmental remediation liabilities. Devon does not
currently believe there is a reasonable possibility of incurring
additional material costs in excess of the current accruals
recognized for such environmental remediation activities. With
respect to the sites in which Devon subsidiaries are PRPs,
Devon’s conclusion is based in large part on
(i) Devon’s participation in consent decrees with both
other PRPs and the Environmental Protection Agency, which
provide for performing the scope of work required for
remediation and contain covenants not to sue as protection to
the PRPs, (ii) participation in groups as a de minimis
PRP, and (iii) the availability of other
defenses to liability. As a result, Devon’s monetary
exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state statutes. In response to liabilities associated with these activities, accruals have been established when reasonable estimates are possible. Such accruals primarily include estimated costs associated with remediation. Devon has not used discounting in determining its accrued liabilities for environmental remediation, and no material claims for possible recovery from third party insurers or other parties related to environmental costs have been recognized in Devon’s consolidated financial statements. Devon adjusts the accruals when new remediation responsibilities are discovered and probable costs become estimable, or when current remediation estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers are involved in matters in which it has been alleged that such subsidiaries are potentially responsible parties (“PRPs”) under CERCLA or similar state legislation with respect to various waste disposal areas owned or operated by third parties. As of December 31, 2007, Devon’s balance sheet included $3 million of noncurrent accrued liabilities, reflected in other liabilities, related to these and other environmental remediation liabilities. Devon does not currently believe there is a reasonable possibility of incurring additional material costs in excess of the current accruals recognized for such environmental remediation activities. With respect to the sites in which Devon subsidiaries are PRPs, Devon’s conclusion is based in large part on (i) Devon’s participation in consent decrees with both other PRPs and the Environmental Protection Agency, which provide for performing the scope of work required for remediation and contain covenants not to sue as protection to the PRPs, (ii) participation in groups as a de minimis PRP, and (iii) the availability of other defenses to liability. As a result, Devon’s monetary exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to
environmental remediation activities associated with past
operations, such as the Comprehensive Environmental Response,
Compensation, and Liability Act (“CERCLA”) and similar
state statutes. In response to liabilities associated with these
activities, accruals have been established when reasonable
estimates are possible. Such accruals primarily include
estimated costs associated with remediation. Devon has not used
discounting in determining its accrued liabilities for
environmental remediation, and no material claims for possible
recovery from third party insurers or other parties related to
environmental costs have been recognized in Devon’s
consolidated financial statements. Devon adjusts the accruals
when new remediation responsibilities are discovered and
probable costs become estimable, or when current remediation
estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers
are involved in matters in which it has been alleged that such
subsidiaries are potentially responsible parties
(“PRPs”) under CERCLA or similar state legislation
with respect to various waste disposal areas owned or operated
by third parties. As of December 31, 2007, Devon’s
balance sheet included $3 million of noncurrent accrued
liabilities, reflected in other liabilities, related to these
and other environmental remediation liabilities. Devon does not
currently believe there is a reasonable possibility of incurring
additional material costs in excess of the current accruals
recognized for such environmental remediation activities. With
respect to the sites in which Devon subsidiaries are PRPs,
Devon’s conclusion is based in large part on
(i) Devon’s participation in consent decrees with both
other PRPs and the Environmental Protection Agency, which
provide for performing the scope of work required for
remediation and contain covenants not to sue as protection to
the PRPs, (ii) participation in groups as a de minimis
PRP, and (iii) the availability of other
defenses to liability. As a result, Devon’s monetary
exposure is not expected to be material.

 

 

Devon is subject to certain laws and regulations relating to environmental remediation activities associated with past operations, such as the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) and similar state statutes. In response to liabilities associated with these activities, accruals have been established when reasonable estimates are possible. Such accruals primarily include estimated costs associated with remediation. Devon has not used discounting in determining its accrued liabilities for environmental remediation, and no material claims for possible recovery from third party insurers or other parties related to environmental costs have been recognized in Devon’s consolidated financial statements. Devon adjusts the accruals when new remediation responsibilities are discovered and probable costs become estimable, or when current remediation estimates must be adjusted to reflect new information.

 

Certain of Devon’s subsidiaries acquired in past mergers are involved in matters in which it has been alleged that such subsidiaries are potentially responsible parties (“PRPs”) under CERCLA or similar state legislation with respect to various waste disposal areas owned or operated by third parties. As of December 31, 2006, Devon’s consolidated balance sheet included $5 million of non-current accrued liabilities, reflected in “Other liabilities,” related to these and other environmental remediation liabilities. Devon does not currently believe there is a reasonable possibility of incurring additional material costs in excess of the current accruals recognized for such environmental remediation activities. With respect to the sites in which Devon subsidiaries