2010 Steward of Excellence Awards - Nominee Brochure

Stewardship

environment Highlights

Highlights

Today | Tomorrow

Performance: • Results to date: 40 projects submitted for evaluation; 23 projects approved; 6 complete projects

Environment | Health Capacity Building: • Two new technology “pilot projects” are currently being explored for 2010 – using flare gas to generate electricity, and a natural gas separator that eliminates the use of glycol and fuel Stakeholder Relations & Reputation: • The program contributes economic, social and environmental benefits to local communities by hiring local contractors, demonstrating industry responsibility, and reducing pollution.

Eco-Efficiency Program

& Safety | Social

Boreal Habitat Conservation Initiative

Performance: • Results to date: 40 projects submitted for evaluation; 23 projects approved; 6 complete projects

In April 2009, ARC launched its Eco-Efficiency Program. Field operators are asked to submit projects based on the needs and operating conditions of each of their facilities. This promotes project ownership and helps avoid project implementation barriers like accountability, buy-in and access to contractors.

In April 2009, ARC launched its Eco-Efficiency Program. Field operators are asked to submit projects based on the needs and operating conditions of each of their facilities. This promotes project ownership and helps avoid project implementation barriers like accountability, buy-in and access to contractors.

Capacity Building: • Two new technology “pilot projects” are currently being explored for 2010 – using flare gas to generate electricity, and a natural gas separator that eliminates the use of glycol and fuel

The initiative focuses on funding the development and implementation of energy efficiency projects and emerging technologies throughout ARC’s operations. This includes any project that can reduce greenhouse gas (GHG) emissions, reduce fuel and electricity consumption, and utilize wasted products, while maintaining reliability and maximum production.

The initiative focuses on funding the development and implementation of energy efficiency projects and emerging technologies throughout ARC’s operations. This includes any project that can reduce greenhouse gas (GHG) emissions, reduce fuel and electricity consumption, and utilize wasted products, while maintaining reliability and maximum production.

Stakeholder Relations & Reputation: • The program contributes economic, social and environmental benefits to local communities by hiring local contractors, demonstrating industry responsibility, and reducing pollution.

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MESSAGE As we all know, the actions we take today have a profound effect tomorrow, and long into the future. Stewardship requires that we work collaboratively towards a better future through performance improvement to earn the confidence of Canadians. Through our joint efforts − innovation and continuous improvement in our environmental, health and safety, and social performance − CAPP members illustrate their dedication to the vision and principles of Stewardship.

Our commitment is particularly well demonstrated in the projects nominated for the 2010 Steward of Excellence Awards.

Stewardship also means the responsible development of Canada’s energy resources. Open exchange, listening, and accountability are

examples of our responsibility in action with an aim of continuing to reduce environmental footprints, ensuring the safety of our workers and contractors, and building strong, positive relationships in the communities where we operate. As a significant force in the responsible development of Canadian energy resources, CAPP members are dedicated to a balanced approach – advancing environmental protection, economic growth, including jobs for Canadians, and a secure and reliable energy supply.

It is important to remember that behind each of the nominated projects, programs, and innovations stands a group of motivated employees who have shown personal leadership and commitment to

the goal of true Stewardship. Without the individual motivation and personal responsibility, the projects proudly displayed here might never have come to be. We thank and honour them for their work and their high standards.

Canada’s oil and gas industry is dedicated to continuous improvement in our performance, an important part of which will be realized by the ongoing development of our Stewardship efforts.

Tom Huffaker Vice President, Policy & Environment

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CAPP is pleased to present

the 2010 Steward of Excellence Award Nominees

environment Highlights Highlights

Highlights Highlights

Performance: Performance: date:to40date: projects submitted for •• R Toesults 40 projects evaluation;for 23evaluation; projects approved; submitted 23 projects 6 projects 6completed approved; complete projects •C umulative reduction of 3,200 Capacity Building: tonnes of CO2e • Two new technology “pilot projects” are currently being explored for Capacity Building: – using flare gasprojects” to generate • 2010 Two technology “pilot being electricity, and a natural gasflare gas explored for 2010 – using separator that eliminates use of to generate electricity, andthea natural gas separator glycol and fuel that eliminates use of glycol and fuel Stakeholder Relations &Stakeholder Reputation: Relations •& TReputation: he program contributes economic, • social Contributes economic, social, and environmental benefits and environmental to local to local communitiesbenefits by hiring local communities by hiringindustry contractors, demonstrating local contractors, responsibility, and demonstrating reducing pollution. responsibility, and reducing pollution

Performance: Performance: uccessfully filtered flow-back •• R Sesults to date: 40 projects water on seven horizontal23 projects submitted for evaluation; Montney wells approved; 6 complete projects

Eco-Efficiency Program The Eco-Efficiency Program, launched in April 2009, focuses on funding energy efficiency projects and emerging technologies throughout ARC Resources Ltd.’s operations. This includes projects that reduce greenhouse gas (GHG) emissions, reduce fuel and electricity consumption, and utilize wasted products, while maintaining reliability and maximum production.

Field operators are asked to submit projects based on the needs and operating conditions of their facilities. This promotes project ownership and helps avoid project implementation barriers like accountability, buy-in, and access to contractors.

Frac-Water Recycling Program ARC Resources Ltd. has developed a process to treat, recycle, and reuse water used in the production of tight gas reserves, becoming the first operator to successfully apply water recycling to fracturing operations in northeast British Columbia.

This joint effort with Amperage Energy treats flow-back water on standards including H2S, acidity, salinity, total disolved solids, and bacteria. Project results include decreased demand on local water supply and reduced need for transportation and disposal of flow-back water.

The City of Dawson Creek and ARC are discussing the application of this technology to a municipal water recycling facility.

3 • 1,384 mBuilding: of water has been Capacity date • Tre-used wo new to technology “pilot projects”

beingsavings explored •are 20 –currently 25 per cent onfor 2010 – using flare gas generate disposal, trucking, and to fluid electricity, purchasesand a natural gas eliminates the use of •separator Improved that stakeholder relations glycol and fuel Stakeholder Relations & Reputation: • The program contributes economic, social and environmental benefits to local communities by hiring local contractors, demonstrating industry responsibility, and reducing pollution.

environment Highlights

Highlights

Performance: •C arbon footprint reduction of 85 per cent

Performance: • Promotes project ownership through the development of a diverse and integrated team with a shared goal of zero impact

• Land use reduction of 2,300 hectares • Water use reduced to 0.03 per cent of annual watershed flow •N umber of well pads reduced by 85 per cent from 592 to 85 INNOVATION: • Near-zero emission well site design • Long reach horizontal well drilling and completion technology • Sophisticated water storage system • Fully automated well sites

The Noel Project: Responsible Resource Development BP Canada Energy Company has significantly reduced the environmental impacts of a project in the Noel area of British Columbia.

The project’s reductions can be broken down into two categories: carbon and ecological. Carbon reductions involved a near-zero emissions well site design using solar energy and electrifying compressors where 84 per cent of the power is hydro-generated.

Ecological reductions included reducing the number of wells and pipelines, drilling multiple wells on a single lease site, and use of a water storage system collecting spring-run off and drawing from underground aquifers.

Bird Deterrent Innovation In 2009, Canadian Natural implemented a leading edge bird deterrent system. Evaluation to date has proved the system has been 97.5 per cent effective in detecting birds that enter the area and no bird flocks have landed on the company’s tailings ponds.

• Detection of 97.5 per cent of birds and zero bird flock landings

The system employs a radar detection system, Long Range Acoustic Devices (LRAD), and lasers in addition to conventional scare methods such as propane canons, scarecrows, air horns, and hazing. The system was developed under the leadership of senior management with the target of zero impacts to wildlife.

Capacity Building: • Encourages collaboration of environment staff and system operators and increased operational awareness

• Effective nighttime use of lasers that scatter light across the ponds deterring birds from landing

• Best practices shared with other companies

environment Highlights

Highlights

Performance: • I ncorporated a six month field assessment program to ensure pertinent and valid information

Performance: • To date, more than 397 MMCF of natural gas has been conserved

•M itigation strategies employed to reduce environmental impact • E stimated up to 30 per cent of the lease area disturbed will be reclaimed in summer 2010 Stakeholder Relations & Reputation: •O pen invitation extended to regulators to visit the project site at any stage

Photo 1: Looking west • S taff worked closely with all stakeholders to maintain transparency

Senlac Multi-Well Pad Drilling In Senlac Saskatchewan, Canadian Natural proposed a drilling program to access oil in the Cummings Dina Formation, partially located on Wildlife Habitat Protection Act (WHPA) protected land.

Several field visits were conducted including an independent inspection by Ministry of Environment Personnel. Since the project required the drilling of large well pads that exceeded regulation, an Environment Protection Plan was submitted for approval in September 2009. Cooperation between the project team resulted in a high level towards hill supporting 16-10-40-26 W3M lease. of environmental protection and Canadian Natural received approval to proceed with drilling.

Energy Efficiency in Operations Cenovus Energy Inc. recognized the opportunity to improve energy efficiency and reduce emissions, and also identified the challenge of economic and conventional project hurdles. The Energy Efficiency in Operations program was designed to provide access to funding for energy-efficiency projects.

In addition, the program encourages staff involvement by making company business units responsible for project initiation. Business units are allowed to commit capital to approved projects without penalty on budget results. Energy efficiency improvements are then reported to enhance departmental performance.

• Reduction of over 46,300 tonnes of CO2e emissions in 2009 • Energy efficiency improvements enhance overall performance measures of business unit.

Stakeholder Relations & Reputation: • Fund created to support research and development of energy efficient equipment • Information shared with industry representatives to increase project implementation rate, reduce emissions performance improvement, and foster industry cooperation

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Performance: • Approximately 180,000 seedlings planted in Fort McMurray region on old seismic areas and unrealized oil leases

Performance: • Emissions reduction of 95,000 tonnes of CO2e to date

• Leases are converted back to their natural state faster than traditional reclamation Capacity Building: • Encourages collaboration of oil sands companies to re-establish the land and leverage restoration best practices to create healthy forests Stakeholder Relations & Reputation: • Program will expand to create work opportunities for local Aboriginal contractors

Aggressive Reclamation Five oil sands companies are working with a local forestry company (AlPac) on the implementation of an accelerated reclamation program in the Athabasca region of Alberta. The ultimate goal of the program is to speed up the reforestation of oil sands exploration sites. These sites have traditionally been reclaimed using government standardized “natural restoration” or “native grass” methods.

The program involves planting living tree seedlings, allowing the natural process to be shortened and tree re-growth to occur sooner.

The program will be expanded in the future to focus on opportunities for local contractors, rehabilitating wildlife habitat, and working with local Aboriginal groups to improve the reclaimed land’s traditional value.

Energy Efficiency and Emissions Reduction Program ConocoPhillips’ Western Canada Gas Group (WCG) has implemented a program to improve efficiency and reduce emissions in our operations. A key focus area has been to help develop reliable, robust and economically viable small-scale technologies that can be widely applied as standard designs across the upstream oil and gas industry.

Staff across the company are committed to the program and use internal tools to track successes, share knowledge, and develop best practices. To date, 250 projects have been completed.

• Fifteen new technologies have been evaluated for use and seven of these have been tested at field sites • WCGreen, an internal newsletter used to communicate upstream environmental activities and issues Stakeholder Relations & Reputation: • ConocoPhillips works closely with industry partners and local vendors to assist in testing and development of new technology

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Highlights

PERFORMANCE:

Innovation: • Operation time extended by three to four weeks through frost retention

• The project was completed with no safety incidents • Approximately 15,000 tonnes of impacted soil and materials were removed and transported to a licensed waste management facility Stakeholder Relations & Reputation: • The approach was so successful that a local environmental activist contacted the town’s paper to compliment the work.

Turner Valley Landfill Reclamation ConocoPhillips Canada has used innovative solutions to reclaim a landfill in Turner Valley.

In early 2008, reclamation of the site stopped due to odorous compounds generating concern for nearby communities. After shutting down the site, ConocoPhillips developed a strategy to remove the soils without creating off-site issues. With no commercial solution available, the company’s reclamation team developed an odour containment and treatment system to contain the smells. Odours were captured and treated without affecting the residents of the town. The project was completed successfully within two months.

Minimal Disturbance Techniques Devon has minimized environmental disturbance by reducing the width of access roads in forested areas as much as 50 per cent.

Waste wood is then turned in to mulch and used for road construction instead of being burned. The technique was developed to reduce the permanent environmental impact of traditional roads. Construction and reclamation costs are also reduced. Once the road is no longer required, the mulch is collected and reused on another project.

Devon is a founding member of the Evergreen Centre for Resource Excellence and Innovation to promote minimal disturbance techniques.

• Heavy equipment weighing over 100,000 pounds can drive safely over the mulch PERFORMANCE: • Piloted successfully on conventional lease sites and in the oil sands • Conserves plant and wildlife habitat and doesn’t introduce new species Stakeholder Relations & Reputation: • Demonstrating technique to other companies, stakeholders, and government

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Highlights

Performance: • Failure rates of company-maintained pipelines in Swan Hills area reduced by half in 2009 compared to previous years

Performance: • To date, 39,800 tonnes of CO2 emissions avoided in 2009

• Compilation and review of detailed ground disturbance plans allowed the company to complete over 220 excavations with zero recordable line hits Capacity Building: • Plan is adaptable to change • AccuMap file shares information • Concept is transferable to other areas Innovation: •M anagement plan using prioritization matrix allows for continual input and adaptability

Pipeline Integrity: A New Plan for an Old Asset Devon has developed a comprehensive integrity management plan to reduce the incidences of pipeline failures in the Swan Hills area.

The company’s interest in this area includes more than 600 pipelines, some of which date back to the 1960’s. Pipeline failures were becoming more frequent and, after extensive research, the company developed a remediation plan for the area.

Created through a prioritization matrix, the plan accounts for inspections and replacements, and makes provisions for strategy validations, and ongoing risk assessment and monitoring. By the end of 2009, Devon’s pipeline failures in the area had dropped to less than half from the year before. The company expects this number to continue declining over the next few years as the management plan evolves.

Underbalanced Drilling with Natural Gas In an effort to reduce flaring in EnCana’s Greater Sierra development program, the company developed a new underbalanced drilling technology that uses natural gas.

The technique enables the recovery of produced gas that is directed back to the pipeline rather than flaring it, converts boilers on site to use natural gas instead of diesel fuel, and converts diesel engines on the rig and drilling equipment to run on a bi-fuel system. This system substitutes up to 70 per cent of the energy requirement with natural gas, reducing EnCana’s overall emissions.

• Approximately 741MMscf of natural gas conserved during drilling of first 33 wells in 2009 Stakeholder Relations & Reputation: • Collaboration with a service provider, Weatherford, developed the process for drilling with a focus on safety • Pipeline corrosion mitigation strategy designed by EnCana’s Pipeline Integrity group

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Highlights

Performance: • Project will significantly reduce need to build more tailings ponds and accelerate reclamation

Performance: • Fuel gas consumption savings of 0.3 MMCF per day, a fifteen per cent reduction

• Pending regulatory approvals, Suncor will apply Tailings Reduction Operations to an area of approximately 180 km2 Stakeholder Relations & Reputation: • Consultion with stakeholders such as the Fort McKay First Nation before proceeding with the process • Company hopes to influence other oil sands developers to adopt the technology

Tailings Reduction Operations Suncor has initiated a technology to assist in the timely recovery of their mine site tailings ponds in Northern Alberta, by rapidly converting fine tailings into a solid landscape suitable for use in reclamation.

Mixing mature fine tailings with polymer flocculent yields a dry material that is capable of being reclaimed in place or moved to another location. The drying process occurs over a matter of weeks instead of years, and will improve tailings management. Tailings reduction operations have been successfully implemented in a series of increasingly large pilot programs in Suncor’s oil sands since 2003.

Waste Heat Recovery Talisman Energy Inc. recently commissioned a Waste Heat Recovery Unit (WHRU) at its Bigstone natural gas plant. The WHRU project was implemented by the company’s production operations team in Edson, Alberta and has been successful in reducing fuel gas consumption and GHG emissions.

The purpose of the WHRU is to recover and reuse the waste heat from one of the plant’s gas turbine compressor exhausts to heat two separate process fluids: glycol for utility heating and hot oil for gas processing. To date, the WHRU has been performing with zero downtime.

• Potential reduction of 5,900 tonnes of GHG emissions per year • Cost savings of approximately $500,000 per year CAPACITY BUILDING: • Talisman currently looking at applying technology to other compressor units

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Performance: • To date, 15,000 tonnes of sterilant affected soil has been treated

Stakeholder Relations & Reputation: • Effective and efficient consultation a key driver in the creation of the group

Innovation: • Pioneered a unique application of thermal treatment technology • A new laboratory method (provided by Access Analytical Laboratories Inc.) used to detect lower concentrations than current lab methods

Native Prairie Grassland Reclamation While planning remediation and reclamation of native prairie under oil and gas leases, Cenovus Energy Inc. discovered an issue related to the historical application of an industrial residual soil sterilant called tebuthiuron. Detrimental concentrations of this chemical prevented vegetation growth on some leases.

To overcome this problem, Cenovus developed standards that were protective of native plant species and used a unique method to separate the sterilant from the soil using heat. Approximately 15,000 tonnes of sterilant affected soil has been successfully treated to date.

Horn River Basin Producers Group The Horn River Basin Producers Group has been created as a joint initiative to responsibly develop a shale gas play in British Columbia.

The group involves 11 companies that collaborate to facilitate open communication in the region by collectively understanding stakeholder and First Nation concerns, minimizing environmental impacts, and maximizing benefits to the region.

Through education and awareness, the group has helped to support economic development and employment in the area. Consultation on proposed operations will ensure development is done in a responsible manner.

• Pro-actively engages with community through events. Activities include presentations to the Fort Nelson Chamber of Commerce and at community forums to ensure stakeholder concerns are heard and development plans shared Capacity Building: • Held Energy Expos for past two years to share career opportunities and business networking • Partnered with Energy Services BC to provide funding for local procurement specialist

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Performance: • Staff collected 35 pick-up trucks full of trash

Stakeholder Relations & Reputation: • Multiple training sessions held with 70 participants receiving in-depth training on assets of the program

Stakeholder Relations & Reputation: • Incorporated team building exercises, allowing staff to come together and develop working relationships on a regular basis • Received Drayton Valley’s “Stewardship” award for promoting responsible business operations in the community Leadership & Commitment: • Program sets a standard for industry operators in the Drayton Valley area

Clean Sweep: Community Clean-Up Program In 2009, after two years of participating in a community clean-up program, staff at ARC Resources Ltd’s Drayton Valley office developed the Clean Sweep program to create a cleaner, safer, working environment and a sense of pride in community work. The program involved company volunteers cleaning ARC leases over two days in May and June.

Efforts were recognized by the community with the mayor presenting the company with the City’s Stewardship award. Staff has made a long-term commitment and are planning to extend efforts to cleaning once a month during the summer.

Gen Y: We Care – Youth Empowering Program ConocoPhillips Canada has worked with Thrive! Canada to create a youth development program. Gen Y: We Care equips stakeholder communities in northeastern Alberta, many of which are Aboriginal, with the framework and tools to empower their children and youth.

Through components such as self esteem training, self defense, and traditional healing, the program provides long-term and consistent best practices in engaging youth. A Community Champions Network has also been established providing a gathering opportunity for all leaders and agencies in the communities.

• Community Champions Network provides gathering opportunity for all leaders and agencies in the community Leadership & Commitment: • Program developed to be applied universally to youth development in all local communities

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Stakeholder Relations & Reputation: • Company participates in Watershed Planning and Advisory Counsel

Performance: • To date, electricity consumption reduced by approximately 1,855,000 kWh, equivalent to approximately 1,800 tonnes of greenhouse gas emissions (based on Alberta Grid Average)

• Extensive funding directed to several water stewardship projects and partnerships PERFORMANCE • Conference partner and presenter to over 120 participants at WatersEd West Conference • Collaborated with Ducks Unlimited Canada to deliver Project Webfoot, an education initiative that targets students in Alberta and British Columbia • Strong internal staff education component added to program to ensure staff best practices

Water Stewardship

You Spoke, We Listened

EnCana’s Water Stewardship program began in 2008 as a means of establishing water management initiatives by partnering with government and not-for-profit organizations. The program’s key focus was to deliver water education to employees and to provide resources to educators in Alberta and British Columbia.

Over the last few years, Imperial Oil received feedback from Cold Lake area residents on three areas of concern: light pollution, venting emissions, and noise pollution. The company worked collaboratively with the community to choose effective strategies to solve each concern.

In 2009, EnCana expanded their program to provide funding to advanced water education and research, and share knowledge with industry and other organizations. EnCana has continued to educate employees on everyday decisions that impact water in their operations.

By late 2009, 11 field operations vehicles were fitted with external lighting, allowing main lighting sources to be turned off at 95 per cent of field pads. Fugitive emissions detection technology and venting capture and control equipment reduced venting by 40 per cent.

Minimizing use of air horns and implementing noise mitigation equipment has reduced site noise.

• Venting reduced by approximately 40 per cent, from 107 km3 since 2007 to 63 km3 in 2009 • Created oil sands verification (OV) rig noise model to proactively predict noise contours Stakeholder Relations & Reputation: • Imperial Oil’s Neighbour Night Open House and other feedback sessions allow for regular stakeholder engagement and increased understanding

SOCIAL Highlights

Highlights

Stakeholder Relations & Reputation: • The 10 exercises were attended by 340 personnel; this included local fire fighters, EMS, and police officers

Performance: • Increased participation in United Way Campaign by 89 percent over 2008. Penn West received “Quantum Leap” award at United Way Spirits of Gold Awards

• Municipalities and provincial agencies requested additional training from Penn West Leadership & commitment: • Two ERP program audits and 14 major Emergency Response exercises are planned for 2010

Catalyst for Collaboration In 2009, Penn West Energy Trust ran 10 innovative, multi-stakeholder Major Emergency Response Exercises across Western Canada. The exercises were modeled after the company’s Emergency Response Plan (ERP) Advisory and a 2007 Conference Board of Canada report on security and public safety. The ERP Advisory Committee is dedicated to organizing Emergency Response exercises which include personnel from Health and Safety, Regulatory Affairs, Community Relations, and Operations.

This initiative assisted in identifying key stakeholder learnings, building relationships in the community, and increasing rapport and confidence with municipalities and other stakeholders.

Community Investment Program Penn West Energy created a new Community Investment Program that shifts from a reactive approach to one that ties clear investment guidelines to strategic corporate goals.

Creating a culture that focuses on philanthropy, Penn West has worked with numerous partners including the Calgary Stampede’s Indian Village and hosting a field trip for Alberta 4-H to the Canadian Petroleum Discovery Centre. The program has also encouraged employees to increase donations and become engaged in volunteer activities, resulting in strengthened relationships within the company and in outreach efforts to the community.

• Increased contributions to the Match and Magnify Program (employee matching) by 64 per cent Stakeholder Relations & Reputation: • Employees volunteering in communities and shaping corporate culture Leadership & Commitment: • Incorporating on-line system for ease-of-use for both employees and community members to access funding

SOCIAL Highlights

Highlights

Leadership & Commitment: • Encouraged the use of local material and reduced the burning of timber

Leadership & Commitment: • Reclaimed land used for Beaver Creek Wood Bison Ranch as advised

by Fort McKay First Nation

Stakeholder Relations & Reputation: • Fostered positive relationships with First Nations community members • Increased short-term employment for First Nations and other local stakeholders • Avoided additional timber harvests for future cabin repairs

Timber Utilization Program As part of its community engagement activities in the Horn River Basin, Quicksilver Resources Canada Inc. partnered with Acho Dene Koe First Nations, employing four sawmill operators to assist in clearing operation areas of timber. Instead of burning the timber, it was used to repair or build approximately 70 trapper cabins in the area.

Remaining timber was trucked to Trans North Timber. This local Fort Nelson company employed three to four workers for two months to build over 200 rig mats, which were in turn purchased by Quicksilver Resources Canada Inc. to be used in its operations.

Community Bison Harvest Syncrude Canada Ltd. and the Fort McKay Group of Companies host a bi-annual Bison Harvest at the Fort McKay First Nation, with animals from the Beaver Creek Wood Bison Ranch. The harvest started in 2006 as a way to revive tradition and provide meat to members of the Fort McKay First Nation.

Overseen by the Fort McKay Elders, the harvest has evolved into events of great cultural significance and is used by educators to teach the community’s children about historical traditions. Syncrude is expanding the harvests into other Aboriginal communities in 2010.

• Ranch operates as a joint venture with a herd of 300 purebred bison Stakeholder Relations & Reputation: • Syncrude supported staff at Fort McKay School to develop curriculum in 2010 about wood bison harvests • Between 2000 and 3000 pounds of bison meat distributed during each harvest

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Performance: • S takeholder calls tracked and monthly reports received, detailing orientation and concerns of each call

Performance: • Over 1500 km2 of seismic data and 1400 km of 2D seismic data acquired

• P rogram success defined by ability to address all concerns received Stakeholder Relations & Reputation: •C ontributes to positive relationships by outlining clear expectations of behaviour from the company • K ey stakeholders had input in development stages of program through participation in surveys and providing feedback

Good Neighbour Program Talisman created the Good Neighbour Program as a way to manage the social impacts of operations. These impacts can include increased traffic and road use, dust, noise, and lease maintenance issues.

The program outlines Talisman’s commitment to local communities to proactively address the key impacts of operations. The program is a field-driven initiative that shares ownership between staff located in the field and those in Calgary. Initiatives associated with establishing the program include drafting of key commitments, primary research of stakeholders, development and distribution of a program brochure, and a toll-free phone number that community members can use to report operational concerns.

Pokak 3D Seismic Program In 2009, BP successfully completed a 3D seismic program in the Beaufort Sea. Despite significant challenges of the Arctic environment, including ice-covered waters and sensitive ecosystems, the project was accomplished with no injuries and no environmental damage.

Contributing to project success included hiring a team of experts, using a modern seismic vessel, assembling a real-time ice monitoring system, and securing a dedicated Search and Rescue (SAR) helicopter that was continually on stand-by. The project team also committed to fostering a culture where health, safety, and environment were top priorities.

• Comprehensive marine seismic hazard identification workshop held with contractors and subcontractors Leadership & Commitment • Search and Rescue (SAR) helicopter on stand-by throughout project duration and used once to transport ill crew member to hospital in Inuvik for treatment Stakeholder Relations & Reputation: • Partnerships formed with agencies, including Fisheries and Oceans Canada, to share data

health & safety Highlights

Highlights

Performance: • 61 per cent reduction in Total Recordable Injury Rate (WCG drilling team)

Performance: • Total Recordable Injury Rate of 0.75 for 2009

• Overall safety performance improved by 24 per cent over 2008 • To date, over 240 managers and front line supervisors trained Capacity Building: • Dr. Staley brought in to speak to 150 of ConocoPhillips’ major service providers • ASA knowledge shared across the company’s world-wide business units • Safety the first topic in all meetings leadership & Commitment: • Year round leadership presence in the field

Advanced Safety Auditing In early 2009, ConocoPhillips Canada initiated a program to improve safety performance. At year-end the company’s Western Canada Gas Drilling Team achieved significant objectives including a 61 per cent reduction in its Total Recordable Injury Rate.

The program, developed by safety management expert, Dr. Bruce Staley, is based on active leadership in the workplace and reinforcing expected behaviors. Program initiatives included training frontline leaders on having “high impact” safety conversations with their teams, enhancing the role of field safety coaches, and demonstrating leadership support through training session videos.

Surmont Turnaround

• Contractors’ downtime used to complete additional safety training

After months of planning in 2009, ConocoPhillips Canada shut down their Surmont site for a complete maintenance turnaround.

• Leadership participated in contractors’ safety meetings during every shift

The 16-day cycle involved over 400 employees and contractors and over 80,000 work hours to complete. The result was a successful turnaround that accomplished the full scope and was completed on time. ConocoPhillips Canada attributes much of their success to their “extreme open door” policy – a standing commitment to effective, transparent communication. Also critical to the success, is the company’s contractor selection policy, which hires contractors whose health and safety policies parallel their own.

• External turnaround expert brought on board to allow personnel to focus on turnaround preparation Stakeholder Relations & Reputation: • Assisted in turnaround of another ConocoPhilips Canada facility by inviting them to observe Surmont turnaround

health & safety Highlights

Highlights

Performance: • Demonstrated increased competency of production operators

Performance: • Athabasca Oil Sands Project (AOSP) Expansion 1 surpassed 40 million hours without an LTI

• In 2009, 12,795 competency assessments were conducted with 729 operators • Gained sup­port for the Site Supervisor Competency assessment program from Penn West’s leadership Stakeholder Relations & Reputation • Plans to share system with others to protect workers and benefit industry

Building a Competent Workforce In the upstream oil and gas industry, competency of employees and site supervisors play a key role in safe operations, productivity, and environmen­tal protection. To build workforce skills, Penn West has committed to building an effective training and competency system.

The company understands that the key to success is building the skills and leader­ship of site supervisors and through Site Super­visor Competency initiatives.

Penn West has evolved their training and competency system since 2005. By 2009, the company developed their program into one of the most in­tegrated systems in the industry.

The 12 Life-Saving Rules In an effort to decrease work related injuries, Shell’s Leadership Team implemented the 12 Life-Saving Rules in 2009. Shell identified the 12 most high-risk situations at work and created rules to help employees and contractors improve safety compliance.

Leaders incorporated the rules into Shell’s culture through employee training and enforcement. The rules have encouraged employees to hold each other accountable for personal safety and the safety of others. Since program inception, the number of Lost Time Incidents (LTI) and Total Recordable Case Frequency (TRCF) has been dramatically reduced.

• Groundbirch Venture improved safety performance by 40 per cent in one year • TRCF improved from 3.57 reported cases per million hours, to 2.79 in 2009 Capacity Building: • Trained all employees and 2,000 contracting companies • Reminder card is attached to every employee’s I.D. • Ongoing safety sessions with contracting companies to solicit feedback and discuss performance

health & safety Highlights Performance: • Contractors with poor safety performance required to come up with safety strategies • Buddy Managers provide access to safety-related resources • To date, Total Recordable Injury Rate for contractors reduced from 0.67 in 2008 to 0.37 in 2009 Innovation: • Shifted the status quo on Syncrude’s relationships with contractors Stakeholder Relations & Reputation: • Holding management, supervisors, staff, contractors and subcontractors accountable ensures total compliance with the rules

Buddy Manager Program The Buddy Manager Program began in November 2007, as an initiative to improve the safety of contractors. Syncrude executives and senior managers were partnered with contractors to improve overall safety performance.

Syncrude provides monthly reports for every contractor in the program that outline the number of paired observations by the buddy managers, VOICE cards filed by employees (highlighting potential safety risks or commending safe behaviour), near-miss incidents, and injuries suffered. The program has successfully reduced the Total Recordable Injury Rate by half from 2008 to 2009.

The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce about 90 per cent of Canada’s natural gas and crude oil. CAPP’s associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP’s members and associate members are an important part of a $110-billion-a-year national industry that provides essential energy products.

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March 2010 2010-0011