24.Commitments and Contingencies

COMMITMENTS

The following table outlines the Company’s commitments as at December 31, 2017:


		Expected Future Payments
(undiscounted)		2018		2019		2020		2021		2022		Thereafter		Total

Transportation and Processing	$	604	$	701	$	670	$	571	$	529	$	2,315	$	5,390
Drilling and Field Services		198		39		21		8		-		-		266
Operating Leases		18		16		16		15		15		46		126
Total	$	820	$	756	$	707	$	594	$	544	$	2,361	$	5,782

Included within transportation and processing in the table above are certain commitments associated with midstream service agreements with VMLP as described in Note 17. Divestiture transactions can reduce certain commitments disclosed above.

CONTINGENCIES

Encana is involved in various legal claims and actions arising in the normal course of the Company’s operations. Although the outcome of these claims cannot be predicted with certainty, the Company does not expect these matters to have a material adverse effect on Encana’s financial position, cash flows or results of operations. Management’s assessment of these matters may change in the future as certain of these matters are in early stages or are subject to a number of uncertainties. For material matters that the Company believes an unfavourable outcome is reasonably possible, the Company discloses the nature and a range of potential exposures. If an unfavourable outcome were to occur, there exists the possibility of a material impact on the Company’s consolidated net earnings or loss for the period in which the effect becomes reasonably estimable. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Such accruals are based on the Company’s information known about the matters, estimates of the outcomes of such matters and experience in handling similar matters.