Item 3. Legal Proceedings

We are involved in various legal proceedings incidental to our business. However, to our knowledge as of the date of this report, there were no material pending legal proceedings to which we are a party or to which any of our property is subject.

Certain Environmental Matters

Devon Gas Services, L.P., a wholly-owned subsidiary of the Company, is currently in negotiations with the EPA with respect to alleged noncompliance with the leak detection and repair requirements of EPA regulations promulgated under the Clean Air Act at its Beaver Creek Gas Plant located near Riverton, Wyoming. Although management cannot predict the outcome of settlement negotiations, the resolution of this matter may result in a fine or penalty in excess of $100,000.

In addition, in August 2016, we received an information request from the EPA under the Clean Air Act relating to our compliance with certain air emission requirements under Clean Air Act regulations with respect to various locations in our Eagle Ford operations in south Texas. We responded to this information request in November 2016. Given its early stage and the general uncertainty in matters such as these, we are unable to predict the ultimate outcome of this information request, but it may result in the imposition of a fine or penalty, through settlement negotiations or otherwise, in excess of $100,000.