Facts About Your Benefits

Transcription

1 Facts About Your Benefits Table of Contents Page FACTS ABOUT YOUR BENEFITS... 1 Eligible Employee Defined... 1 Eligible Employee... 1 Employee... 2 Individuals Receiving LTD Benefits... 3 Group Health Plan Special Enrollment Periods... 3 Claims and Appeal Procedures... 3 Qualified Plans... 4 Short Term Disability Claims... 4 Life, AD&D and Business Travel Accident Claims... 4 Disability-Based Benefits (Other than under the STD Program or Qualified Plans)... 5 Health and All Other Benefits... 7 Authority of the Plan Administrator to Make Final Binding Decisions Participant Rights Under the Employee Retirement Income Security Act of 1974 (ERISA).. 13 Receive Information About Your Plan and Benefits Continue Group Health Plan Coverage Prudent Actions by Plan Fiduciaries Enforce Your Rights Assistance With Your Questions Leaves of Absence Your Rights Under COBRA A Qualifying Event Periods of COBRA Continuation Coverage Elections of COBRA Continuation Coverage Premiums Responding to Provider Inquiries Termination of Coverage Qualified Medical Child Support Orders (QMCSOs) Procedures for Receipt of Child Support Order Procedures for Receipt of Medical Support Notice Procedures to Determine if a Medical Support Notice or an Order is a QMCSO Procedures for Orders and Medical Support Notices that are QMCSOs If Order/Medical Support Notice is Not Qualified Treatment of Alternate Recipient under Qualified Medical Child Support Order Cost of Qualified Medical Child Support Order Benefits Qualified Medical Child Support Order and Medicaid Payments or Reimbursements under a Qualified Medical Child Support Order Disenrollment of Alternate Recipient Privacy Compliance PBGC Guarantee of Certain Pension Plan Benefits Changes to and Future of the Plans Burlington Resources Inc. 3/3/06 i

2 Cost Sharing Choice Of Physician Duty To Issue Certificates Of Creditable Coverage Duty To Issue Notices Under The Women s Health And Cancer Rights Act Of Examination Written Notice Clerical Error/Delay Acceptance/Cooperation Trade Act of ADMINISTRATIVE FACTS Pension Plan ADMINISTRATIVE FACTS Retirement Savings Plan ADMINISTRATIVE FACTS Employees Benefit Plan ADMINISTRATIVE FACTS Discretionary Severance Benefit Plan Burlington Resources Inc. 3/3/06 ii

3 Facts About Your Benefits The Company 1 offers various benefits for its Eligible Employees (as defined in this section of the handbook). This handbook provides an explanation of the main features of your benefit plans. Of course, the handbook cannot cover every circumstance as it would apply to you. If you want a more detailed explanation, you can review the plan documents and insurance contracts, if any. Contact the Benefits Department in the Corporate Human Resources Department for these documents. The actual plan documents govern all matters. If you have any questions, contact your local Human Resources Department. The Company offers even more benefits than those benefit plans described in the other sections of this handbook. These benefits are intended to give you the opportunity to invest in yourself, your future and your community and include, but are not limited to, discretionary sick leave, vacations, holidays, leave of absence, funeral leave and military leave. If you have any questions, contact your local Human Resources Department for more information about these benefits. This handbook is not a part of and does not modify or constitute any provision of the plans described here, nor does it alter or affect in any way the rights of any participant under any plan. The plans and all descriptions and outlines are governed by formal documents adopted by Burlington Resources Inc. In the event of any conflict between this handbook and a formal plan document, the formal plan document will control. Any illustrations used in examples in this handbook are just examples and do not represent the actual amounts due any participant covered by any plan. Eligible Employee Defined Eligible Employee You not only have to be an Employee (as defined below), you must be an Eligible Employee in order to be eligible for Company benefits. An Eligible Employee means any Employee, except one who is: a leased employee (as defined in Section 414(n) of the Internal Revenue Code of 1986, as amended); 1 Throughout this document and the handbook, the term Company means, for all purposes (except administration, amendment and termination purposes), both Burlington Resources Inc. and all affiliates and subsidiaries of Burlington Resources Inc. who are permitted to and actually do participate in the applicable plans referenced in this handbook. Burlington Resources Inc. 3/3/06

4 covered under a collective bargaining agreement where benefits were the subject of good faith bargaining, unless the collective bargaining agreement expressly provides for benefits under the applicable plan; a nonresident alien; or a part-time or temporary Employee (as defined below), except to the extent that a part-time or temporary Employee meets the eligibility criteria set forth in the following paragraph. Part-Time and Temporary Employees Employee For purposes of this definition, a part-time Employee is an Employee who is regularly scheduled to work less than 32 hours per week for the Company. A temporary Employee is an Employee whose position is of a definite duration of 6 or fewer consecutive months, as determined by the Company at the time of the Employee s hire. The eligibility of a part-time or temporary Employee can be later established, however. Such persons will be considered Eligible Employees on the first day of the month following 6 complete consecutive calendar months that such Employee worked on average no less than 32 hours per week. (Please note that for this purpose, each day a part-time or temporary Employee is on an authorized leave of absence will count as such number of hours of service as that Employee was regularly scheduled to work on that particular day.) Not all employees of the Company are eligible for benefits. For benefit purposes, the term Employee means only a person who is employed by the Company, including any leased employee, but excluding those persons: who are not on the Company s salaried or hourly payroll; who have agreed in writing to be treated as other than an Employee; whose compensation is reported to the IRS on a form other than Form W-2; who are designated, compensated, or otherwise classified or treated as consultants or independent contractors; and who have not actually begun work for the Company. This definition will apply to all Company benefits regardless of whether such persons are treated as employees for federal income tax purposes. Also, if a person is later ruled to be a common law employee by local, state or federal law, such a person will not be considered an Employee eligible for benefits until the date that determination is made by a court or other administrative agency. That person will remain ineligible for benefits offered to Employees prior to that date. Burlington Resources Inc. 3/3/06 2

5 However, effective as of the date of such determination (including any and all appeals thereof) any person so reclassified will then be deemed an Employee eligible for benefits. Dependents To determine whether an individual is your dependent, you need to look to each individual plan document for that plan s definition of dependent. Note that in all instances, it is the employee s responsibility to contact the administrator and/or insurer of each plan to confirm dependent full time student status every Spring and Fall semester. Individuals Receiving LTD Benefits If an employee is receiving long-term disability benefits under the Burlington Resources Inc. Long Term Disability Plan (the LTD Plan ), that employee will be deemed to be a full-time Employee (and an Eligible Employee ) for the entire period of time for which the employee qualifies for those long-term disability benefits under the LTD Plan with respect to the following plans: (i) the Burlington Resources Inc. Comprehensive Medical Expense Plan (with respect to medical, dental, vision and prescription drug benefits), (ii) the Burlington Resources Inc. Employee Assistance Program, and (iii) the Burlington Resources Inc. Survivor Benefits Plan (but only with respect to certain life insurance benefits and not with respect to dependent life, accidental death & dismemberment or business travel accident benefits, and only to the extent described in the Survivor Benefits Plan and its summary plan description). Group Health Plan Special Enrollment Periods If an Eligible Employee or a dependent of an Eligible Employee declines to enroll in a Company group health plan (not including the HealthFund), when first eligible, or otherwise declines to enroll during annual open enrollment, they may be able to enroll in the group health plan during a Special Enrollment Period. Special Enrollment Periods may arise due to a loss of other health coverage or the acquisition of a dependent through marriage, birth, adoption or placement for adoption. Only Eligible Employees and their eligible dependents may take advantage of Special Enrollment Periods. Special Enrollment Periods are described in more detail in both the Health Care Program and the Flexible Benefit Program sections of this handbook. Claims and Appeal Procedures The following paragraphs (called the Claims and Appeal Procedures in this handbook) apply to claims first filed on or after January 1, Claims that were first filed before January 1, 2003, and all appeals of those claims, are subject to the claims procedures that were previously provided to you. These Claims and Appeal Procedures explain the rules that must be followed by the plans when making decisions on claims or appeals. Any reduction or termination of a plan benefit that was previously authorized for you, or paid to you (such as a termination of your disability benefits, or a disapproval of continued inpatient mental health care) will be subject to the rules in these Claims and Appeal Procedures. Burlington Resources Inc. 3/3/06 3

6 Some claims you make for benefits under the various plans described in this handbook require the submission of claim forms. Claim forms may be obtained at your place of employment or from the applicable Claims Administrator, identified in this handbook. These forms and the applicable section of the handbook tell you how and when to file a claim. Qualified Plans Note that the claims procedures for the Company s qualified plans (the Pension Plan and the Retirement Savings Plan) are described in the Pension Plan and Retirement Savings Plan sections of this handbook, respectively, and not in these Claims and Appeal Procedures (even though some of the benefits available under those plans may be based on a finding of your disability). These Claims and Appeal Procedures, including the Voluntary Appeal to Plan Administrator process, is not applicable to the qualified plans. Please refer to the Pension Plan and Retirement Savings Plan sections of this handbook for a more detailed explanation of the claims procedures applicable to the qualified plans. If you have any questions, you should contact your local Human Resources Department. Short Term Disability Claims The Company offers a short term disability (STD) program (which is a payroll practice or employment policy under which the Company provides limited continuation of income from it s general assets) for the benefit of its Eligible Employees. The STD Program is not subject to ERISA and is not subject to these Claims and Appeal Procedures or otherwise described in this Facts About Your Benefits section of the handbook. For information on the STD Program, see the separate Short Term Disability Program description. Life, AD&D and Business Travel Accident Claims The Life (Basic, Dependent and Supplemental), AD&D and Business Travel Accident insurance benefits provided through the Company s Survivor Benefits Plan are insured by Hartford Life Insurance Companies ( Hartford ). An Employee or beneficiary wishing to present a claim for benefits must obtain a claim form from their local Human Resources Department or from the Claims Administrator. The applicable section(s) of the form must be completed by the Employee (if possible), the Company and the Employee s attending physician or hospital, as applicable. The claim must then be submitted to Hartford within the time frame set forth in the Survivor Benefits Plan section of this handbook. There are 3 types of claims for Life, AD&D and Business Travel Accident benefits claims which are dependent on the finding of a disability (for example, the disability extension), claims which relate to Health Care benefits (as defined under Health and All Other Benefits ) and core life insurance claims (all other claims for life, accidental death & dismemberment and business travel accident benefits). Claims which are dependent on the finding of a disability will be decided according to the procedures listed below for long term disability claims. Claims which relate to Health Care will be decided according to the procedures listed below for Health Care claims. A decision regarding payment of a core life insurance claim will be made by Hartford no more than 90 days after receipt of proof of loss, except in special circumstances (such as the need to obtain further information), but in no case more than 180 days after the due proof of loss is Burlington Resources Inc. 3/3/06 4

7 received. The written decision will include specific reasons for the decision and specific references to the plan provision on which the decision is based. Benefits which are payable, unless the Employee had assigned such benefits to a doctor or to a hospital, shall be paid directly to the Employee or his beneficiary. If a core life insurance claim is either wholly or partially denied, notice of the decision will be furnished to the claimant in writing. This written decision will: give the specific reason for the denial; make specific reference to the plan provision on which the denial is based; provide a description of any additional information necessary to prepare the claim and an explanation of why it is necessary; and provide an explanation of the review procedure. On any denied claim for such benefits, a claimant may appeal directly to Hartford for a full and fair review of the denial. The claimant may: request a review upon written application within 60 days of receipt of the claim denial; review pertinent documents related to the appeal; and submit issues and comments in writing to Hartford. A decision on these benefits will be made by Hartford no more than 60 days after receipt of the request for review, except in special circumstances (such as the need to hold a hearing), but in no case more than 120 days after the request for review is received. The written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. Disability-Based Benefits (Other than under the STD Program or Qualified Plans) You or an authorized representative may file claims for long term disability and for other benefits which are based on a finding of your disability, and appeal adverse claim decisions directly with Hartford Life Insurance Company ( Hartford ). An authorized representative means a person you authorize, in writing, to act on your behalf. Hartford will also recognize a court order giving a person authority to submit claims on your behalf. Hartford will make a decision regarding your claim not later than 45 days after receipt of the claim. This time period may be extended up to an additional 30 days due to circumstances beyond Hartford s control. In that case, you will be notified of the extension needed before the end of the initial 45 day period. If a decision cannot be made within this 30 day extension period, again due to circumstances beyond Hartford s control, the time period may be extended up to an additional 30 days, in which case you will be notified before the end of the first extension period. The notice of extension will explain the standards on which entitlement to a Burlington Resources Inc. 3/3/06 5

8 benefit is based, the unresolved issues that prevent a decision, and the additional information needed to resolve those issues. You will be given at least 45 days after receiving the notice to furnish that information. If your claim for benefits is denied by Hartford, you will be given a written or electronic notice that will include: the specific reason(s) for the denial; a reference to each of the specific provision(s) of the plan on which the denial is based; a description of any additional material or information you must provide in order for your claim to be approved, and an explanation of why that material or information is necessary; if any internal rule, guideline or protocol was relied on in denying the claim, either that specific rule, guideline or protocol, or a statement that a rule, guideline or protocol was relied on in denying the claim and that a copy will be provided to you free of charge on request; if the claim denial was based on an exclusion or limit like medical necessity or experimental treatment, either an explanation of the scientific or clinical judgment for the exclusion or limit as applied to your circumstances, or a statement that such an explanation will be provided to you free of charge upon request; an explanation of the appeal procedures described below, including time limits that apply; and a statement that you can file a lawsuit under ERISA if your claim is denied on final appeal. You will have 180 days following receipt of an adverse benefit decision relating to your long term disability benefit claim to appeal the decision with Hartford. As with your initial claim, you will ordinarily be notified of the decision not later than 45 days after the appeal is received. This time period may be extended up to an additional 45 days due to circumstances beyond Hartford s control. The notice will indicate the special circumstances requiring an extension and the date by which a decision is expected. If the deadline is extended because you did not provide all of the information necessary for a decision to be made on your appeal, the extension notice will list the additional information that is needed. The deadline for making the decision on your claim will be extended by the length of time that passes between the date you are notified that more information is needed and the date that you respond to the request for more information. Burlington Resources Inc. 3/3/06 6

9 If your appeal is denied, Hartford will provide you a written or electronic notice that will include: the specific reason(s) for the denial; a reference to each of the specific provision(s) of the plan on which the denial is based; a description of any additional material or information you must provide in order for your claim to be approved, and an explanation of why that material or information is necessary; if any internal rule, guideline or protocol was relied on in denying the claim, either that specific rule, guideline or protocol, or a statement that a rule, guideline or protocol was relied on in denying the claim and that a copy will be provided to you free of charge on request; if the claim denial was based on an exclusion or limit like medical necessity or experimental treatment, either an explanation of the scientific or clinical judgment for the exclusion or limit as applied to your circumstances, or a statement that such an explanation will be provided to you free of charge upon request; an explanation of the appeal procedures described below, including time limits that apply; and a statement that you can file a lawsuit under ERISA if your claim is denied on final appeal. In deciding an appeal of any claim denial that is based in any way on a medical judgment (including things like whether a treatment is experimental or not medically necessary), Hartford will get advice from a health care professional and/or vocational expert, as applicable, who has training and experience in the relevant area of medicine. Upon request, you will be provided the names of any medical and vocational experts who were consulted in connection with your claim denial, even if the advice was not relied upon in making the denial. The medical or vocation expert consulted by Hartford on appeal cannot be a person who was consulted by Hartford in connection with the original claim denial (or a subordinate of the person who was consulted in the original claim). Health and All Other Benefits The remainder of these Claims and Appeal Procedures primarily applies to health care benefits (medical, mental health, dental, vision and prescription drug) provided through the Company's Comprehensive Medical Expense Plan, HealthFund Plan and the Employee Assistance Program and through any other Company benefit plan to the extent that plan provides health care benefits. For ease of administration, the provisions below will also apply to the Dependent Daycare Fund Plan, the Adoption Assistance Program and the Educational Assistance Program, except where Burlington Resources Inc. 3/3/06 7

10 the language is explicitly applicable to health care benefits (hereinafter referred to in these Claims and Appeal Procedures as Health Care ). Most Health Care claims may be filed electronically by your health care provider. However, other types of claims may require a claim form (claims under the Flexible Benefits Plan, for example). Where possible, you should have your health care provider submit their claims directly to the applicable Claims Administrator. The claim form will contain the address to which you should file your claim. Your health plan ID Card also contains the address for filing Health Care claims. If you need a claim form for a particular benefit, you can obtain one from your local Human Resources Department or from the Claims Administrator. You may file claims and appeal adverse claim decisions either yourself or through an authorized representative directly with the applicable Claims Administrator. The telephone number and address for each Claims Administrator is listed under Administrative Facts below. An authorized representative means a person you authorize, in writing, to act on your behalf. The plan will also recognize a court order giving a person authority to submit claims on your behalf. (However, in the case of a claim involving Urgent Care (defined below), a health care professional with knowledge of your condition may always act as your authorized representative.) If your claim is denied in whole or in part, you will receive a written notice of the denial from the applicable Claims Administrator. The notice will explain the review procedures and contain the information set forth under Denial of Claims. Urgent Care Claims (for Health Care) Advance approval is required for certain Health Care services and supplies before a Health Care benefit will be payable (known elsewhere in the Health Care Program section of this handbook as Care Coordination ). If the Claims Administrator or your physician determines that those services and supplies are Urgent Care, you will be notified of the coverage decision not later than 72 hours after the claim is received. Urgent Care means services received for a sudden illness, injury or condition that may not be an emergency but requires immediate outpatient medical care that cannot be postponed. An urgent situation is one that is severe enough to require prompt medical attention to avoid serious deterioration of a person s health; this includes a condition that would subject a person to severe pain that could not be adequately managed without prompt treatment. If there is not sufficient information for the Claims Administrator, in its discretion, to decide whether your Urgent Care claim is covered, you will be notified, either directly or through your treating physician, of the information necessary to complete the claim as soon as possible, but not later than 24 hours after receipt of the claim. You or your treating physician will be given a reasonable additional amount of time, but not less than 24 hours, to provide the information, and you will be notified of the decision not later than 48 hours after the end of that additional time period (or after receipt of the information, if earlier). Notices for Urgent Care claims may be oral unless you request written notification. Burlington Resources Inc. 3/3/06 8

11 Pre-Service Claims (for Health Care) For those Health Care services and supplies for which you are required to obtain advance approval before a benefit will be payable (i.e., claims submitted to Care Coordination, as noted above), but that are not Urgent Care claims, a request for advance approval is considered a Pre- Service Claim. You will be notified of the Claim Administrator s decision regarding these Pre- Service Claims not later than 15 days after the Claims Administrator s receipt of the Pre-Service Claim. (Please note, neither the Vision Plan, the Dental Plan nor the Prescription Drug Program require pre-approval of benefits. Therefore, the Pre-Service Claim rules, as with the Urgent Care rules, apply only to certain Health Care services provided under the Comprehensive Medical Expense Plan.) For completed Pre-Service Claims which are submitted to Care Coordination but which otherwise fail to follow the plan s procedures for filing Pre-Service Claims, you will be notified of the failure within 5 days of receipt of the claim, and of the proper procedures to be followed. Also, if a Pre-Service Claim is filed properly, the 15-day time period referenced above may be extended up to an additional 15 days due to circumstances outside the Claims Administrator s control. In that case, you will be notified by the Claims Administrator of the extension before the end of the initial 15-day period. For example, the time periods may be extended because you have not submitted sufficient information, in which case you will be notified, either directly or through your treating physician, of the specific information necessary and given an additional period of at least 45 days after receiving the notice to furnish that information. You will be notified of the plan s claim decision no later than 15 days after the end of the additional period of time (or after receipt of the information, if earlier). Other Claims For other claims (i.e., for Post-Service Claims where Health Care treatment has been rendered, and for claims not relating to Health Care), the appropriate Claims Administrator will notify you of its decision not later than 30 days after its receipt of your claim. However, this time period may be extended up to an additional 15 days due to circumstances outside the Claims Administrator s control. In that case, you will be notified by the Claims Administrator of the extension before the end of the initial 30-day period. For example, the time periods may be extended because you have not submitted sufficient information, in which case you will be notified, either directly or through your treating physician, of the specific information necessary and given an additional period of at least 45 days after receiving the notice to furnish that information. You will be notified of the plan s claim decision no later than 15 days after the end of the additional period of time (or after receipt of the information, if earlier). Ongoing Course of Treatment (for Health Care) If you are receiving an ongoing course of treatment for Health Care, you will be notified in advance if the plan intends to terminate or reduce benefits for the course of treatment so that you will have a reasonable opportunity to appeal the decision before the termination or reduction takes effect. If the course of treatment involves Urgent Care, and you request an extension of the course of treatment at least 24 hours before its expiration, you will be notified of the decision within 24 hours after receipt of your request. Burlington Resources Inc. 3/3/06 9

12 Denial of Claims If any part of your claim is denied, you will be given a written or electronic notice that will include: the specific reason(s) for the denial; a reference to each of the specific provision(s) of the plan on which the denial is based; a description of any additional material or information you must provide in order for your claim to be approved, and an explanation of why that material or information is necessary; if any internal rule, guideline or protocol was relied on in denying the claim, either that specific rule, guideline or protocol, or a statement that a rule, guideline or protocol was relied on in denying the claim and that a copy will be provided to you free of charge on request; if the claim denial was based on an exclusion or limit like medical necessity or experimental treatment, either an explanation of the scientific or clinical judgment for the exclusion or limit as applied to your circumstances, or a statement that such an explanation will be provided to you free of charge upon request; an explanation of the appeal procedures described below, including time limits that apply; a statement that you can file a lawsuit under ERISA if your claim is denied on final appeal; and if your denied claim was an Urgent Care claim, a description of the faster appeals process that applies to Urgent Care appeals. Appeal Procedures You have the right to appeal any adverse benefit decisions. In submitting your appeal, you also have the right to: review pertinent documents relating to your claim upon your request, free of charge; and submit issues, evidence and comments in writing, even if those issues, evidence and comments were not provided with the initial claim. Pertinent documents include any information which was submitted, considered or generated in making the decision, whether or not the plan or the Claims Administrator relied on the documents. They also include information which shows whether any internal guidelines were Burlington Resources Inc. 3/3/06 10

13 followed in order to make sure the decision was appropriately based on the plan documents, as well as any statements of policy or guidance under the plan concerning the denied treatment. All Claims Administrators, including, if applicable, the Company, will make a full and fair review of the claim and may require additional documents as they deem necessary or desirable in making such a review. For Health Care claims, only an employee(s) of the applicable Claims Administrator who was not involved in the original decision, and is not a subordinate(s) of the employee(s) involved in the original decision, will be allowed to review the claim. In deciding an appeal of any claim denial that is based in any way on a medical judgment (i.e., experimental treatment or medical necessity determinations), the Claims Administrator must get advice from a health care professional who has training and experience in the applicable area of medicine. Upon request, you will be provided the names of any medical experts who were consulted in connection with your claim denial, even if the advice was not relied upon in making the denial. The health care professional consulted by the Claims Administrator cannot be a person who was consulted by the Claims Administrator in connection with the claim denial (or a subordinate of the person who was consulted in the original claim). Filing Appeals With the exception of Urgent Care claims, you will have 180 days following receipt of an adverse benefit decision to appeal the decision. For active Employees and your dependents (other than those who live or work in Farmington, New Mexico), you should file your medical Health Care and your first level HealthFund Plan appeals with United HealthCare, your prescription drug program appeals with Caremark Rx, Inc., your mental health and substance abuse appeals with United Behavioral Health, your dental appeals with Delta Dental and your vision appeals with Vision Services Plan. Second level HealthFund Plan appeals and all appeals relating to the Dependent Daycare Fund Plan, the Adoption Assistance Program and the Educational Assistance Program should be filed with the Benefits Department in the Corporate Human Resources Department of the Company. For active Employees who live or work in Farmington, New Mexico, and your dependents, you should file your medical Health Care and your first level HealthFund Plan appeals with Benefit Planners, your prescription drug program appeals with Caremark Rx, Inc., your mental health and substance abuse appeals with Benefit Planners, your dental appeals with Delta Dental and your vision appeals with Vision Services Plan. Second level HealthFund Plan appeals and all appeals relating to the Dependent Daycare Fund Plan, the Adoption Assistance Program and the Educational Assistance Program should be filed with the Benefits Department in the Corporate Human Resources Department of the Company. The plans allow for two levels of appeals, except for Urgent Care Health Care claims, with a third, voluntary level of appeal that can be made directly to the Plan Administrator. If your claim involves Urgent Care, an expedited appeal may be initiated by a telephone call to Care Coordination at the toll-free number on your Medical Plan ID Card. You or your authorized representative may appeal Urgent Care claim denials either orally or in writing to Care Coordination personnel. All necessary information, including the appeal decision, will be communicated between you or your authorized representative and the plan by telephone, Burlington Resources Inc. 3/3/06 11

14 facsimile, or other similar method. You or your authorized representative will receive an Urgent Care appeal decision within 72 hours after the appeal is received by Care Coordination. If your Urgent Care appeal is denied, the decision of the plan is final. For other appeals, you will be notified of the initial appeal decision not later than 15 days (for Pre-Service Claims) or 30 days (for other claims, including Post-Service Claims) after the appeal is received by the appropriate party. If your initial appeal is denied, you may submit an additional appeal to the same party (with the exception of the HealthFund Plan second level appeals, which should be filed with the Benefits Department in the Corporate Human Resources Department of the Company). Again, you will be notified of the appeal decision not later than 15 days (for Pre-Service Claims) or 30 days (for other claims, including Post-Service Claims) after this second appeal is received by the appropriate party. The appeals indicated in this section must be exhausted prior to you obtaining a right to file a lawsuit under ERISA. Denials of Appeals If any part of your claim is denied on appeal, you will be given a written or electronic notice that will include: the specific reason(s) for the denial; a reference to each of the specific provision(s) of the plan on which the denial is based; if any internal rule, guideline or protocol was relied on in denying the claim on appeal, either that specific rule, guideline or protocol, or a statement that the rule, guideline or protocol was relied on in denying the claim and that a copy will be provided to you free of charge on request; if the claim denial on appeal was based on an exclusion or limit like medical necessity or experimental treatment, either the scientific or clinical judgment for the exclusion or limit as applied to your circumstances, or a statement that such an explanation will be provided to you free of charge upon request; a statement that you are entitled, upon request, to see all documents, records, and other information relevant to your claim for benefits and to get free copies of that information; and a statement of your right to file a lawsuit under ERISA if your claim is denied on final appeal. If your denied appeal involved an Urgent Care claim, the information described above may first be provided to you orally, and a written or electronic notice will be given to you within 72 hours after the oral notice. Burlington Resources Inc. 3/3/06 12

15 Voluntary Appeal to Plan Administrator If the Claims Administrator denies your claim on appeal, you can make a third, voluntary appeal to the Plan Administrator. This level is only available if you have completed the two mandatory levels of appeal with the Claims Administrator. All of the rules described above for appeals will apply to your voluntary appeal to the Plan Administrator, except for the following changes in deadlines: You will be given 90 days after receiving the Claims Administrator s denial to make your appeal to the Plan Administrator (rather than 180 days as described above); and You will be notified of the appeal decision not later than 180 days after the appeal is received by the Plan Administrator. Please note, the Voluntary Appeal process is not available for claims relating to Urgent Care or for the following plans: Survivor Benefits Plan, Long Term Disability Plan, HealthFund Plan, Dependent Daycare Fund Plan, Employee Assistance Program, Adoption Assistance Program and Educational Assistance Program. Authority of the Plan Administrator to Make Final Binding Decisions The Plan Administrator shall administer all Burlington Resources Inc. employee benefit plans in accordance with their terms and establish their policies, interpretations, practices, and procedures. The Plan Administrator shall have maximum legal discretionary authority to construe and interpret the terms and provisions of each plan, to make determinations regarding issues which relate to eligibility for benefits, to decide disputes which may arise relative to a plan participant s rights, and to decide questions of plan interpretation and those of fact relating to the plan (including the right to remedy possible ambiguities, inconsistencies or omissions). Benefits under all Burlington Resources Inc. employee benefit plans will be paid only if the Plan Administrator decides in its discretion that the applicant is entitled to them. The decisions of the Plan Administrator will be final and binding on all interested parties. While the Plan Administrator has full discretion and authority to finally grant or deny benefits under each plan, the Plan Administrator may delegate fiduciary authority to the Claims Administrator to make binding decisions regarding claims and appeals (with the exception of the Voluntary Appeal process, if available). Unless the Plan Administrator decides differently during the Voluntary Appeal process, if applicable to your claim, or you file a lawsuit under ERISA, the determination of the Claims Administrator on appeal will be final and binding. Benefits under all Burlington Resources Inc. employee benefit plans will be paid only if the Plan Administrator decides in its discretion that the applicant is entitled to them. Participant Rights Under the Employee Retirement Income Security Act of 1974 (ERISA) As a participant in the Burlington Resources Inc. Pension Plan, the Retirement Savings Plan, the Employees Benefit Plan or the Discretionary Severance Benefit Plan, you are entitled to certain Burlington Resources Inc. 3/3/06 13

16 rights and protections under the Employee Retirement Income Security Act of ERISA provides that all plan participants are entitled to: Receive Information About Your Plan and Benefits Specifically, you are entitled to: Examine, without charge, at the Plan Administrator s office and at other specified locations, such as work sites, all documents governing the applicable plan, including insurance contracts, and a copy of the latest Annual Report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefits Administration. Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the plan, including insurance contracts and copies of the latest Annual Report (Form 5500 Series) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the plan s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this Summary Annual Report. Receive a summary of material reduction in covered services or benefits provided under the plan within 60 days after the adoption of the changes (unless summaries of changes to the plan are provided at regular intervals of 90 days). Obtain a statement telling you whether you have a right to receive a pension at normal retirement age (age 65) and if so, what your benefits would be at normal retirement age if you stop working under the plan now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to get a right to a pension. This statement must be requested in writing and is not required to be given more than once every 12 months. The plan must provide the statement free of charge. Continue Group Health Plan Coverage Specifically, most group health plan participants are entitled to: Continue health care coverage for you and your covered dependents if there is a loss of coverage under the plan as a result of a qualifying event. You or your dependents will have to pay for such coverage. The rules concerning your COBRA continuation coverage rights are described below in this section of the handbook. Reduction or elimination of exclusionary periods of coverage for preexisting conditions (if any apply) under your group health plan, if you have creditable coverage from another plan. You should be provided a certificate of creditable coverage, free of charge, from your group health plan or health insurance issuer when you lose coverage under that plan, when you become entitled to elect COBRA continuation coverage, when your COBRA Burlington Resources Inc. 3/3/06 14

17 continuation coverage ceases, if you request it before losing coverage, or if you request it up to 24 months after losing coverage. Prudent Actions by Plan Fiduciaries In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called fiduciaries of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a plan benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, and you have exhausted the Plan s claims procedures, you may file suit in a state or Federal court. In addition, if you disagree with the plan s decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit in Federal court. If it should happen that plan fiduciaries misuse the plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance With Your Questions If you have any questions about your plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. Burlington Resources Inc. 3/3/06 15

18 Leaves of Absence If you take a leave of absence (including, but not limited to, leave taken pursuant to the Family and Medical Leave Act of 1993 or leave that is qualifying military service ), you may have additional and/or varied rights with respect to continuing coverage under certain of the Company's benefit plans. You should consult the relevant portions of the Family and Medical Leave policy, the Military Reserve and Active Duty Leave policy and/or the Discretionary Sick Leave/Time Off/Leave of Absence policy, as applicable. Your Rights Under COBRA In general, COBRA continuation coverage can become available to you when you would otherwise lose your group health coverage. It can also become available to other members of your family who are covered under the group health plan when they would otherwise lose their right to group health coverage. Specifically, a Qualified Beneficiary will have the right to elect to temporarily continue coverage under the group health plan portions of the Employees Benefit Plan if such coverage terminates in connection with a Qualifying Event, as required by COBRA. Currently, the portions of the Employees Benefit Plan for which COBRA coverage is available include the medical, prescription drug program, dental, vision, HealthFund, and EAP portions. The entities responsible for answering questions concerning COBRA coverage (and their contact information) are listed in the Administrative Facts section of the Employees Benefit Plan section of this handbook under Claims Administrator. For purposes of COBRA, a Qualified Beneficiary means any individual who, on the day before a Qualifying Event, is covered under the group health plan by virtue of being on that day either: the Covered Employee; the spouse of the Covered Employee; a dependent child of the Covered Employee; or any child who is born to or placed for adoption with a Covered Employee during the Covered Employee s period of COBRA continuation coverage. A Covered Employee, for purposes of COBRA, is any individual who is (or was) provided health coverage under the Employees Benefit Plan by virtue of being or having been an Employee. Except as provided above, family members who were not covered under the group health plan portion of the Employees Benefit Plan on the day before a Qualifying Event do not become Qualified Beneficiaries. An individual is also not a Qualified Beneficiary if, on the day before the Qualifying Event, the individual is covered under the group health plan by reason of another individual s selection of COBRA continuation coverage and is not already a Qualified Beneficiary by reason of a prior Qualifying Event. Burlington Resources Inc. 3/3/06 16

19 A Qualifying Event A Qualifying Event, for purposes of COBRA, is any one of the following, but only if it causes a Qualified Beneficiary to lose coverage (to cease to be covered under the same terms and conditions as in effect immediately before the event) under the group health plan: the death of a Covered Employee; termination (other than by reason of gross misconduct), or reduction of hours, of a Covered Employee s employment with the Company; the divorce or legal separation of a Covered Employee; a Covered Employee s becoming entitled to Medicare benefits under Title XVIII of the Social Security Act (Part A, Part B and/or Part D, as applicable); a dependent child s ceasing to be a dependent child of the Covered Employee under the applicable plan; a proceeding in bankruptcy under Title 11 of the United States Code with respect to a Participating Company in the Employees Benefit Plan, from whose employment a Covered Employee retired at any time; or a Covered Employee on a leave of absence under FMLA does not return to active employment following this leave and the Qualified Beneficiary would, in the absence of COBRA coverage, lose coverage before the end of the maximum coverage period, as determined below. In this instance, the Qualifying Event occurs on the last day of the FMLA leave. Periods of COBRA Continuation Coverage A Qualified Beneficiary s coverage under the Employees Benefit Plan can only be continued under COBRA for a limited period of time, depending on the nature of the Qualifying Event. 18-Month Coverage Period. A Qualified Beneficiary may elect COBRA continuation coverage under the group health plan for up to 18 months after the Qualifying Event, if such Qualified Beneficiary s coverage terminates due to one of the following Qualifying Events: the Covered Employee s employment is terminated (for reasons other than the Covered Employee s gross misconduct); the Covered Employee s number of work hours is reduced; or the Covered Employee does not return to active employment at the end of FMLA leave (without regard to whether coverage was maintained during the leave). In this instance, the maximum coverage period is measured from the last day of the FMLA leave. Burlington Resources Inc. 3/3/06 17