Owner Resource Guide

Commitment Runs Deep As an interest owner, you are an important part of Devon Energy’s business, and we are committed to providing the resources you need to help manage your account. I am proud to be part of an organization that has, for 45 years, built its reputation on strong relationships with interest owners and others, reflecting the Devon values that are at the core of all our interactions.

As part of Devon’s commitment to continuous improvement, we are pleased to offer the Devon Direct call center, where you can call during regular business hours and speak directly to a qualified analyst about your account. You can reach Devon Direct at 405-228-4800. The related feedback we’ve received from interest owners has been tremendous, and I hope you will find it useful as well.

You can also reach the analyst team by email at [email protected]. Information is also available in the “Interest Owners” section of the company website at www.devonenergy.com. In addition, this publication will answer many questions and provide important details designed to make the payment process easier for you.

We hope these resources will help you efficiently and quickly find answers to your questions. We value our relationship with you and want to continue being responsive to your needs.

Dave Hager President and Chief Executive Officer Call Devon Direct to speak to a qualified analyst about your account

Our goal is to respond to all telephone, email and fax inquiries in a timely, efficient manner. Devon Direct is a service to direct you to a Devon Energy team member who can answer your questions quickly and accurately.

If you are calling during regular business hours of 8-11:30 a.m. and 12:30-5 p.m. Central Standard Time Monday through Friday, a team member will answer your call. To better assist you and answer your question, please have all the necessary information that will help us with your research, including your Business Associate Number. This number has been specifically assigned to you and distinguishes you from other interest owners. If you are not sure of yours, you can locate it on the top right-hand side of your check or check detail.

405-228-4800 8-11:30 a.m. and 12:30-5 p.m. CST Mon.-Fri. Get answers about: [email protected] • Royalty/revenue payments • Division orders • Surface ownership and leasing A service to direct you to a Devon Energy team member • Joint interest billing who can answer your questions quickly, efficiently and • Accounts payable accurately! • 1099s

One call. No runaround. Speak to a qualified analyst. See www.devonenergy.com for additional information. Forms and Documents Change of address Other change notifications An address change request is still needed even if you receive Please notify Devon in writing if you have changes to any of your payments via direct deposit. Your correct address on the following: file will allow you to receive your 1099 each year or any other • Tax ID Number/Social Security number changes correspondence that is mailed by Devon. To notify us of a • Name changes change of address, download and complete the form located • Transfers of ownership at www.devonenergy.com. Change of address forms should be Notifications relating to any of the above should be mailed, mailed, emailed or faxed to: emailed or faxed to: Devon Energy Corp. Devon Energy Corp. Attn: Accounting Data & Process Attn: Division Orders Name and Address Information 333 West Sheridan Avenue 333 West Sheridan Avenue Oklahoma City, OK 73102-5015 Oklahoma City, OK 73102-5015 Email - [email protected] Email - [email protected] Phone - 405-228-4800 Fax - 405-234-2396 Fax - 405-228-4849

Take advantage of direct deposit

Devon offers a direct deposit payment option for its Devon has a policy to protect your personal information in a interest owners. It is safe and secure and offers many secure and confidential manner. This information will only be advantages, including: used by Devon. • No cost to you • No postal delays of your check To sign up for direct deposit, download and complete the • No unnecessary trips to the bank form located at www.devonenergy.com, Interest Owners, • No lost, damaged or stolen checks Forms and Documents. Please make sure all applicable • If traveling, your revenues are still deposited in your parties on Devon account sign the form and return by email to bank account. [email protected] or mail or fax to:

When you sign up for direct deposit: Devon Energy Corp. • You will receive regular payment deposits in your Attn: Accounting Data and Process - ACH Processing bank account on the 17th of each month if you are 333 West Sheridan Avenue due payment; (or the next business day if the 17th Oklahoma City, OK 73102-5015 falls on a weekend or bank holiday) Email - [email protected] • A payment remittance advice will still be sent to your Fax - 405-234-2396 designated mailing address.

We cannot view your account’s private information or withdraw existing funds from your account. View Your Payment Detail Online

Devon provides secure, on-line access to payment information Your current month’s detail will be displayed in the Inbox tab. 24-hours a day through Owner Relations Connect. Interest (Click on the down-arrow to select Previous Month or All Details). owners may view and print check detail, get answers to View your detail by double-clicking the check # highlighted frequently asked questions and much more. in blue. To print or save the detail, click on the PDF button displayed in the upper left corner of detail. The detail will display Click on the following link to get started: in Adobe Acrobat Reader. You may then print or save the detail. https://connect.oildex.com/devon/

Please note that you must have received your first payment Owner Relations Connect to log in. Select Owner 01597901 - DEVON ENERGY PRODUCTION CO LP €

Inbox Click I am a first time user. Enter your User ID which is your Reports Forms My Profile Information Business Associate number (six digits followed by a space 01). CheckStubs Date Selection Current Month €

Owner Relations Connect By clicking on the My Profile tab, you may combine other Owner Relations accounts, change your email address, set up Resources & Information PLEASE NOTE THAT YOU WILL NOT BE ABLE TO LOG-IN AND ACCESS YOUR CHECK DETAILS UNLESS a notification to alert you when new data arrives in your Inbox YOU HAVE RECEIVED A PAYMENT. and, have the detail emailed to you in a password-secured PDF If you are logging into Oildex for the first time, please note the following: file and change your password. 1. Your User ID is your 6-digit Business Associate (owner) number followed by a space and 01 (XXXXXX 01). 2. Your temporary Password is the last six digits of your Social Security number or Federal Taxpayer ID.

If you have not provided your SS#/Fed Taxpayer ID to Devon, another password has been assigned to your account. Contact the Devon Direct team at 405-228-4800 for that password. Owner Relations Connect Secure Owner Information Select Owner User ID: I forgot my password 01597901 - DEVON ENERGY PRODUCTION CO LP € Password: I am a first time user I am a returning user with a temporary password Inbox Reports Forms My Profile Information Important information about web browser support Login Select an option from the list below • Combine Owner Relations Accounts Your Temporary Password is the last six digits of your Federal • Change Email Address notification and attachments Taxpayer ID or social security number. Click Login. • Change Password

You will then be prompted to enter your email address and Please contact us at [email protected] or 405-228-4800 change your password. for more information or questions about this cost-free service.

**Please note you must always allow pop-ups to view your information on this site** Frequently asked questions

Why do I need to contact Devon Why does my payment When can I expect payment for Direct about my division order amount change? my new well? questions? Changing market conditions can cause Depending on the complexity of title Each situation is unique, and Devon price fluctuations, while mechanical and how active an area is, timing of Direct will be able to give you specific or operational problems or routine first payments can vary. We always instruction on what to provide for maintenance may temporarily affect attempt to commence payments for instances related to new owner set-up production, causing downtime. If you the proceeds of production as soon as and ownership changes. Informing have reason to believe an error has we are able and according to statutory Devon of all necessary changes related occurred, call Devon Direct at limits for each state. If you have to deaths or any other situations 405-228-4800. questions concerning payment for a regarding ownership interest as you new well, call Devon Direct at become aware of them will eliminate I haven’t received my payment. 405-228-4800. unneccessary delays. If you have What should I do? questions about name changes due to If your check is more than two weeks When is my Joint Interest Billing getting married or divorced, putting late, contact Devon Direct at (JIB) Statement processed? your interest into a trust, transferring 405-228-4800. You will be required to Joint Interest Billing statements are your ownership to another party or if submit a written authorization to stop generally processed on the last day of there is a change in trustee, call Devon payment and re-issue the check. Once the month and mailed the first week of Direct at 405-228-4800. we place a stop payment on your check, the following month. If you are missing it will be voided in our system and will your JIB statement, you can view and What do I do if a stop payment has no longer be honored by Devon. To avoid print all your statements free of charge been placed on my check? postal delays, you may want to consider through a secure site located at Devon automatically voids checks that direct deposit for your payment. www.jiblink.com. Call Devon Direct at have not been cashed or deposited 405-228-4800 for assistance in in 90 days, as “Void after 90 days” is I found a stale-dated check. retrieving your user information. stated on our checks. Once we place How do I get it re-issued? a stop payment on your check, it will Devon automatically voids checks that When should I expect my 1099? be voided in our system and will no are not cashed or deposited in 90 days. 1099s are mailed on Jan. 31 of each longer be honored by Devon. Please It is important that you cash your checks year. If you do not receive your 1099 by call Devon Direct at 405-228-4800 regardless of the amount prior to the Feb. 16 or if information on the 1099 is regarding any stale-dated checks. 90-day mark. If you find a check after the incorrect, call Devon Direct at 90-day mark, call Devon Direct at 405-228-4800. 405-228-4800 for further instruction. I noticed that backup withholding Why should I sign up for Direct How does Devon protect my personal was deducted from my revenue Deposit? information? check. Why? Devon offers a direct deposit payment Devon Energy Corporation, either Devon is required by the Internal Revenue option for its interest owners. It is safe directly or through one of its affiliates or Service to withhold 28 percent of all and secure, costs nothing and offers many subsidiaries (collectively, “Devon”), from revenue payments to U.S. residents if the advantages, including: time to time, requests personal information taxpayer ID number (or Social Security • Regular payment deposits in your bank from individuals with whom it conducts number) is missing or invalid. account on the 17th of each month business, including, without limitation, such The number provided must match the if you are due payment; (or the next individual’s Social Security number and/ name on the payment as indicated per IRS business day if the 17th falls on a or tax identification number (“Personal records. This information is required to be weekend or bank holiday) Information”). provided to Devon in writing. All backup • No postal delays of your check Devon is committed to maintaining the withholding is reported on your 1099 at • No unnecessary trips to the bank confidentiality, integrity and security of year-end, and it is considered a payment to personal information. Devon has physical, • No lost, damage or stolen checks the IRS on your behalf. electronic and procedural safeguards • Revenues deposited in your bank account in place to prevent the loss, misuse, or Devon does not issue refunds for backup even if you are traveling withholding. Interest owners are able to alteration of personal information under report the withholding on their income tax When you sign up for direct deposit an our control. Devon has a policy to protect returns at the end of the year. If you need electronic remittance advice will be sent to personal information in a secure and to notify us of your valid Tax ID or Social your designated mailing address. We cannot confidential manner. The policy has been Security number, please call Devon Direct view your account’s private information or posted for your review on Devon’s website at 405-228-4800. withdraw existing funds from your account. at http://www.devonenergy.com. Your information is secure and will only be Where should my JIB payment used by Devon. be sent? Joint Interest Billing payments should be I have questions about the 1099 form. mailed to: Can you explain it? Devon Energy Production Co. LP Any 1099 questions can be directed to P.O. Box 842485 the Devon Direct team at 405-228-4800 Dallas, TX 75284-23485 or [email protected]. They will work with Devon’s Tax Department to answer your questions. Heavy Oil

Rockies Oil

Our operations

Devon Energy is a leading independent Anadarko energy company engaged in the Basin exploration, development and Permian Barnett Shale production of oil, natural gas and natural Basin gas liquids. The company’s operations are located onshore in North America Eagle Ford extending from western Canada to the Gulf Coast region in the United States. This deep inventory of opportunities in premier North American growth plays provides stable production and a platform for future growth.

The company is currently focused on developing its oil and liquids-rich natural gas assets. Devon’s deep inventory of opportunities include the Eagle Ford Shale in South Texas, the Permian Basin in Texas and New Mexico, the Anadarko Basin of Oklahoma and Texas, Rockies Oil Assets Oil in Wyoming, the Barnett Shale of Liquids-Rich Gas Assets North Texas and the oilsands of Eastern Alberta, Canada.

Devon is a Fortune 500 company, and its strong culture has been recognized by employees, community partners and news media, including being named to Fortune magazine’s “100 Best Companies to Work For” list. Working together for energy future

Devon would like to work with you, our royalty owners, to help address issues facing the oil and gas industry.

By doing so, we plan to keep you informed on both federal and state issues pertinent to our industry, such as opposition to additional hydraulic fracturing regulation, approval of the Keystone pipeline and the threat of increased taxes on the industry. These challenges can affect every aspect of the business from leasing to drilling to pipelines.

If you are interested in receiving updates from Devon on issues that affect us all, please send an email to [email protected] and include your name, address, phone number and email address.

You may also mail your name and address to: Devon Energy Corporation Attn: Public Affairs 333 W. Sheridan Avenue Oklahoma City, OK 73102-5015

We look forward to working together to create a more solid energy future. Important notices

Texas royalty owners (6) Whether any payments reported on the payor’s statement are Pursuant to HB 981 passed by the Legislature of the State of Texas, we are from a split-stream sale and, if so, the manner in which the payor required to provide you with the following information: accounts to the royalty owner for such sale. As used in this paragraph, “split-stream sale” means a sale for which the payment from a payor Section 91.504, Texas Natural Resources Code, gives an owner of a to the royalty owner is for the sale of less than all of the oil and gas royalty interest in oil or gas produced in Texas the right to request produced and sold from the lease or well for the sales period. from a payor information about itemized deductions, the heating value of the gas, and the Railroad Commission of Texas identification (7) Whether the sale of any of the production for which payment is number for the lease, property, or well that may not have been made by payor has been made to an affiliate of the payor. As used in provided to the royalty interest owner. The request must be in this paragraph, “affiliate” means any entity which, directly or indirectly, writing and must be made by certified mail. A payor must respond controls or is controlled by, or is under common control with, the payor. to a request regarding itemized deductions, the heating value of the gas, or the Railroad Commission of Texas identification number by The request by the royalty owner must be made in writing, specifying the certified mail not later than the 60th day after the date the request information desired and the sales period or periods for which information is received. An owner of a royalty interest in oil or gas may obtain is needed and must be made by certified mail. The payor must respond information regarding production that has been reported to the to such a request by certified mail not later than the 60th day after the Railroad Commission of Texas by contacting the oil and gas division date the request is received. A payor shall not be required to (1) provide of the commission or accessing the commission’s website and any information pursuant to a request made on behalf of multiple royalty providing the identification number of the lease and the county in owners, (2) provide any information for sales periods prior to the 12-month which the lease is located. period immediately preceding the first day of the month in which the request is received, except that, if adjustments to a royalty owner’s payment Kansas royalty owners have been made within such 12-month period for sales periods prior to such Section 55-1622 of the Kansas Statutes Annotated gives an owner 12-month period, information concerning such adjustments shall be provided of a royalty interest in oil or gas produced in Kansas the right to and (3) seek information from other payors or third parties. specifically request any of the following information from a payor about the owner’s royalty payment and the wells for which payment If a payor does not have any of the information requested by a royalty owner is made: in accordance with this law, the payor shall provide to the royalty owner the name and address of the seller of the production for which the royalty owner (1) Each lease, property or well identification number used by is being paid by payor. A royalty owner may thereafter request from the the payor for royalty payment purposes and corresponding lease, seller the information not provided by the payor and the seller shall respond property or well identification number(s) used for identification by to the royalty owner, all in the same manner as provided for in this law. As the Kansas department of revenue, state corporation commission or used in this paragraph, “seller” means the lessee of the oil and gas lease from American petroleum institute (API). which a royalty owner derives its royalty interest or the operator of the oil and gas production unit which produced the oil and gas for which payment is (2) Each lease, property or well name and its corresponding being made. section, township, range and county. This law is not meant to discourage or prohibit the royalty owner from (3) The field name or producing formation. contacting the payor by telephone, email or other means of communication concerning the above information or any other information about the (4) For a given sales period for which payment has been received owner’s royalty payment. Additional information regarding production and or is due the royalty owner, the total produced volume as reported related information may also be obtained by contacting the state corporation for each well, lease or unit to the state corporation commission and commission or Kansas geological survey, or by accessing their websites. Kansas department of revenue.

(5) A specific listing of the amount and purpose of any other deductions or adjustments from the royalty owner’s share of the sale of oil and gas not identified on the payment statement. -13.6 003 26.22 193.81 -47.45 137.05 185.86 357.08 330.86 000001 Net Amt Net 13 09 06 1.38 1.36 Page: Check #: XX/XX/XXXX Date: 48.81 47.45 86.42 136.61 135.23 16 Deduct/Adj CD Deduct/Adj 9 12 SV 1.59 0.76 0.33 0.33 0.83 0.50 101 Tax/CD Prod OWNER NET INFORMATION OWNER 28.36 186.19 186.19 280.73 495.28 466.92 Value Value Co. #: Co. Bus Assoc #: 111111 01 15 0.38 97.67 14.39 97.29 82.90 82.90 Section/Twn/Rng: 099 / 099S 099W Section/Twn/Rng: Volume Volume -28.92 -1,012.18 3,965.01 Net Amt Net 28.92 1,012.18 Deduct/Adj Deduct/Adj

Record Title Ownership % Title Record x BTU) (MCF MMBTU Heating value of the gas used to convert MCF (1000 cubic feet) to (1000 cubic feet) usedMCF to convert the gas value of Heating Type of interest being paid interest of Type Devon assigned number for your well lease well or unit your assigned number for Devon Calculated by dividing Gross Value by Gross Volume Gross by Value dividing Gross by Calculated Type of product sold product of Type property is located your where and county State Month/year production was sold was production Month/year Check number or ACH (direct deposit) payment ID (direct deposit) payment Check number or ACH 100% Volume, Gross Value, Taxes, Other Deductions and Net Value of the product sold the product of Other Deductions and Net Value Taxes, Value, Gross 100% Volume, Owner’s Volume, Gross Value, Taxes, Other Deductions and Net Value of the product sold the product of Other Deductions and Net Value Taxes, Value, Gross Volume, Owner’s to the owner payment Total Owner’s share of market based or lease on individual selling agreements market arrangements of share Owner’s Legal description of the property; may be Section, Township and Range or Survey Abstract or Survey and Range be Section, may Township descriptionthe property; of Legal Total payments to the owner by product to the owner by payments Total Number uniquely assigned to you uniquely Number 8 11 7.02

St/County: ST Any County Any ST St/County: Prod Tax Tax Prod

GROSS INFORMATION GROSS

3,972.03 Value Value

ROYALTY OWNER ROYALTY

1,768.49 Well 1 Well Volume Volume

Prod Date Prod Code Prod Decimal Legal Description Legal Owner for Net Total Product by Totals Net Check number Disburse Decimal Disburse Type Int Price Unit Information Gross Information Owner Net Venture/DOI Number Business Associate

Net Totals By Product: By Totals Net (BBLS): 100 Oil Gas (MCF): 204 Residue (BBLS): 400 All Plant Products 1. 4. 5. 6. BTU 7. 8. 9. 2. 3. STATEMENT OF OIL & GAS PAYMENTS OF OIL & GAS STATEMENT 14 11. St/County 12. 13. 14. 16. 10. 15. 7 Unit Price 2.246 6 1.123 1.123 1.123 BTU

RI RI RI 5 Int Int Type

4 0.04687500 0.04687500 0.04687500 Devon Energy Production Company, L. P. Company, Production Energy Devon Sheridan Avenue 333 West Oklahoma 73102-5010 Oklahoma City, Disburse Decimal

3 0.04687500 0.04687500 0.04687500 Legal Decimal Venture/DOI: 123456-00001 WL: 123456-01 Venture/DOI:

2 Prod Code 204 204 204 123456-01 For: Net Total Owner: For Net Total S A M P L E L P M A S

1 04/2015 04/2015 04/2015 Prod Date 10 View your detail online your View logging into detail online by your can view You https://connect.oildex.com/devon/. at Owner Connect Understanding the Understanding check detail 9.56 9.56 9.56 8.64 8.64 31.43 31.43 47.53 47.53 Net Net 83.04 83.04 83.04 112.26 139.47 370.62 370.62 370.62 780.88 201.00 407.60 550.82 663.08 602.69 1,374.37 5,760.15 2,996.30 7,576.74 1,816.59 23,168.74 17.78 17.78 19.67 19.67 19.67 97.82 97.82 64.67 64.67 287.01 231.02 413.64 170.88 170.88 170.88 762.70 762.70 762.70 838.80 1,133.52 6,166.01 1,606.95 Gross Gross 3,738.32 2,828.28 1,364.54 1,240.26 11,853.68 5,760.15 11,853.68 15,592.00 Partner’s Working Interest Working Partner’s or Structure Breakdown Work Expenditure For Authority Cost Center Name Center Cost 7-digit Expense Expense 7-digit Numbers Account

Joint Interest Detail - Accounting Month 05/2015 Month Detail - Accounting Interest Joint 10-digit Cost Center 10-digit Cost DEVON ENERGY PRODUCTION COMPANY, LP COMPANY, PRODUCTION ENERGY DEVON 8XXXXXX – CUSTOMER NAME 8XXXXXX – CUSTOMER SEC. 11 111561 - RATLIFF 4 48.593751 DEVICES - SCADA COMM SV PERFRTG&WL CH LOG OF EQP TRUCKING&HAUL LIFT EQP ARTIFICIAL SERVICES ROUSTABOUT OTHER Upgrade Equipment / Lease Well BB-104295.41 1-11H RATLIFF BURDEN BILLED SAFETY EQUIPMENT OVERHEAD PRODUCING LABOR CO ALLOCATED 1-11H 1005566001 RATLIFF BURDEN BILLED SAFETY EQUIPMENT OVERHEAD PRODUCING LABOR CO ALLOCATED LABOR TECH ALLOC VEH BILLINGS ALLOC 2-11H 1005566101 RATLIFF BURDEN BILLED SAFETY EQUIPMENT OVERHEAD PRODUCING LABOR CO ALLOCATED LABOR TECH ALLOC VEH BILLINGS ALLOC ORDER - R&M WORK 3-11H 1005566201 RATLIFF Expense and Maintenance Operating Expenditure Gross 1220110008012345 nvoice: I Partner: Venture: Group: Equity Share: Equity Capital Expenditure Upgrade Equipment / Lease Well 4-11H: RATLIFF BB-104295.41 6130120 6150100 6190110 6310130 6550120 Total: Capital Expenditure Total: Expense and Maintenance Operating 1005566001 6010240 6230130 6630100 9500110 Total: 2-11H 1005566101 RATLIFF 6010240 6230130 6630100 9500110 9500310 9500510 Total: 3-11H 1005566201 RATLIFF 6010240 6230130 6630100 6740210 6740230 6740250 9500110 Total: Total: TOTAL: TOTAL: .

23,168.74 23,168.74 23,168.74 Partner Number Current Billing Current Balances Due Past Unapplied of Balance Prepayments 0.00 0.00 0.00 0.00 [email protected] Equity Group Number Group Equity 23,167.74 -20,000.00 PLEASE SHOW INVOICE NUMBER ON REMITTANCE NUMBER INVOICE PLEASE SHOW 0520140008XXXXXX INVOICE: at Direct to Devon inquiries Please direct or email 405-228-4800 TO: REMIT L.P. CO, PRODUCTION ENERGY DEVON 842485 BOX PO TX 75284-2485 DALLAS, Partner’s Share of Total Current Billing Current Total of Share Partner’s Joint Venture Name Venture Joint NOTICE Accounts Receivable Summary Receivable Accounts Current Due Past 30 Days Due Past 60 Days Due Past 90 Days Due Past 120 Days Over Cash Call Balance Please do not remit payment for negative balances. negative for payment Please do not remit Joint Interest Invoice - Accounting Month 05/2014 Month - Accounting Invoice Interest Joint DEVON ENERGY PRODUCTION COMPANY, LP COMPANY, PRODUCTION ENERGY DEVON

PAYMENT DUE IN FIFTEEN (15) DAYS AFTER RECEIPT OF INVOICE AFTER RECEIPT IN FIFTEEN (15) DAYS DUE PAYMENT FOR THE BENEFIT OF WORKING INTEREST PARTNERS ONLY. INTEREST PARTNERS THE BENEFIT OF WORKING FOR THIS SAMPLE JOINT INTEREST INVOICE IS BEING PROVIDED IS BEING PROVIDED INVOICE JOINT INTEREST THIS SAMPLE Accounting Month & Year Month Accounting E L P M A S 16-digit Invoice Number for for Number 16-digit Invoice Processing Payment Current Charges Current 7 II UNIT SEC. GAP 18, EG 111714 BLUE Venture Expenses of Share Partner’s 7 111714, EG Venture for Net Expenditure Expenditures Net Total Operator Contact Information Operator Joint Venture Number Venture Joint CUSTOMER NAME CUSTOMER ADDRESS STREET ZIP STATE CITY,