 Certified Sites Demonstrate Oxy’s Commitment to Biodiversity
The Wildlife Habitat Council (WHC) has recognized eight Oxy sites with Wildlife at Work certification, acknowledging commendable wildlife habitat management and environmental education programs.
At the Elk Hills Conservation Area — encompassing 7,878 acres of managed valley saltbush scrub and annual grassland habitat in Kern County, California — biologists, employees and contractors go beyond government requirements to conduct extra monitoring of endangered and other species. During the past decade, employees and contractors have collaborated with researchers studying the effects of cattle grazing on a variety of protected species found in the conservation area. The studies have proved that cattle grazing, if managed properly, is beneficial to certain protected species within the southern San Joaquin Valley.
In addition, Elk Hills employees and contractors attend training programs on species awareness and receive booklets containing descriptions of protected species. WHC President Robert Johnson lauded Elk Hills employees in 2010 for “their commitment to a healthy natural world and connected communities.”
With the certification of Island Chaffee in 2010, all four of THUMS’ oil production islands in Long Beach, California, are Wildlife at Work-certified sites. Each location has created a California native plant habitat featuring native coastal flora. In 2010, two local Boy Scouts conducted their Eagle Scout projects at Island White, focusing on native flowering plants and osprey nesting behavior.
Another certified wildlife habitat and Wildlife at Work site is Oxy’s property in Montague, Michigan. Situated on 880 acres of wetlands, prairies and woodlands, this former plant site is home to wild turkey, whitetail deer, songbirds and numerous amphibians, reptiles and insects. Oxy’s Glenn Springs Holdings subsidiary has restored more than 100 acres of the Montague property as a prairie grass habitat. In 2010, Glenn Springs worked with local agencies to stimulate new plant growth on 40 acres of the property, and the U.S. Environmental Protection Agency (EPA) published a case study of the Montague property’s ecological revitalization.
 Sustaining Our Safety Culture
In addition to providing high-quality training, Oxy also encourages innovation to reinforce our culture of safety. For example, Oxy Permian supplements the company safety training with an array of customized activities, as part of a program that was updated in 2010.
“People Observing Work for Risk Reduction,” also known as Enhanced Power2, teaches behavior-based safety observation in order to reinforce effective safety habits and encourage peer support and accountability. Participants learn to identify and document situations and behavioral factors that either pose, or reduce, a safety risk. The resulting feedback is continuously analyzed for trends and drives future training.
Targeting managers and supervisors in the employee and contractor ranks, Oxy Permian offers an intensive two-day program on “Essentials of Safety Leadership Training.” The course, developed with outside safety experts, blends conceptual content with practical breakout sessions. More than 1,000 Oxy Permian staff and contractors have participated in the program over the past two years.
Oxy Permian employees created a web-based “Safety Toolbox” to share information, video lessons and performance metrics. In addition, to further encourage participation, employees have established a recognition program to acknowledge colleagues for innovative projects such as the development of a well control simulator. The program also recognized similar projects submitted by 15 contractor service companies in 2010.
Oxy Permian’s safety culture gets an additional boost from a 24-hour video surveillance well-monitoring system that already covers 75 percent of Permian’s workover rigs. Instruments monitor wind speed and direction, temperature and alarms, and cameras allow personnel in Midland and Houston control rooms to coordinate with workers in real time. Further deployment of this system is ongoing.
Picture: From a control room in Midland, Texas, Oxy Permian personnel can monitor activity at workover rigs throughout the business unit.
 See "Sustaining Our Safety Culture" video in the Media Library.
 Habitat Restoration in New Mexico Garners Recognition for Oxy
In 2010, OXY USA Inc. was recognized by the U.S. Bureau of Land Management (BLM) and the Restore New Mexico program for its habitat restoration efforts on the Todd Lower San Andres Unit in New Mexico. After years of production under a previous operator, the landscape was devoid of vegetation and was strewn with non-functional equipment. Since acquiring the property in 2008, Oxy has provided leadership and technical assistance in developing and implementing a plan to clean up the area, re-establish diverse vegetation, and restore the habitat for indigenous species such as the prairie chicken.
The restoration will benefit the 18,000 ranchers and other residents of Roosevelt County, New Mexico, who live near the area of regrowth. Said Douglas J. Burger, BLM District Manager, “Oxy has proven to be a cooperative and responsible partner in oil field land restoration, and BLM is proud to have been able to work with Oxy on this complex reclamation project.”
In addition to recognition from the BLM, Oxy received a 2010 Prairie Chicken Habitat Restoration award from Restore New Mexico in partnership with BLM and its Take Pride in America program, presented with appreciation from The Nature Conservancy, New Mexico State Land Office and New Mexico Oil Conservation Division.
 Oxy Helps Protect Rare Colorado Flower
Oxy is teaming with the Colorado Natural Areas Program (CNAP) to protect the Parachute penstemon, a plant known to grow only in a handful of locations in Garfield County, Colorado. Oxy’s properties on Mount Callahan and Mount Callahan Saddle are home to two of the healthiest identified populations. To protect this rare plant species, Oxy has engaged in voluntary efforts such as buffer zones, weed control, motorized travel limits and funding of CNAP’s annual population studies.
In July 2010, Oxy hosted CNAP researchers for the third and final field survey of the flowering plant that hugs the rugged terrain. Noted Oxy Regulatory Analyst Joan Proulx, “Oxy is proud to be a partner with the Colorado Natural Areas Program in research that helps manage the environment responsibly.”
 Reforestation Program in Colombia Brings Economic and Environmental Benefits
Oxy Colombia’s Reforestation Program has planted more than 73,000 native trees on 148 hectares (365.7 acres) in the grasslands of the Arauquita municipality near Caño Limón. Working with Oxy-supported foundation El Alcaraván, Oxy Colombia not only financed the three-year program, but also participated directly in its design and implementation.
The Reforestation Program, which concluded in 2010, improved lands that had been affected by cattle grazing. In addition to planting trees, enhancements included replanting natural vegetation around the bodies of water near the reforestation area, and producing more than 42 tons of composted organic fertilizer for use in the planting and maintenance activities.
The program provided economic benefits in the form of jobs for approximately 40 neighborhood residents, and environmental benefits through natural regeneration of plant life and increased biodiversity. Oxy will continue to engage with the regional environmental authority Corporinoquia and the Colombian Ministry of Environment to monitor the sustainability of the reforested area.
 A year of flowers in Qatar
To promote flora awareness and preservation in Qatar, Oxy sponsored a 2011 calendar that provides a year-long bouquet of photographs and information. The calendar was produced for A Flower Each Spring, a program of Qatar’s Friends of the Environment Center (FEC) under the patronage of Her Highness Sheikha Mozah Bint Nasser Al-Missned.
The calendar, which features two flowers at risk of extinction, supports the FEC’s efforts to raise awareness of biodiversity in Qatar. FEC programs emphasize research, preservation of natural resources and the importance of sustainable development.
A Flower Each Spring annually selects a local flower to promote through a nationwide educational campaign for schoolchildren and the general public. Activities include field trips, art projects and competitions. With 2010 marking the 12th year of the program, Oxy Qatar proposed a creative way of showcasing the dozen flowers for a broader audience. The idea blossomed into the beautifully illustrated “Native Flowers of Qatar” calendar, produced with funding from Oxy.
Available throughout Qatar, the calendar has been provided to all schools in the capital city of Doha and is given to attendees at regional exhibitions. Approximately 3,000 copies have been distributed through FEC and the Qatar Foundation.
Each month features a different indigenous flower of Qatar. For example, February’s flower is Anagallis Arvensis, which blooms with five deep blue or red-orange petals; July’s is the flowering tree Prosopis Cineraria with its yellow-green petals; and in September, the calendar features Alhagi Maurorum, known as the “Camel Thorn,” whose small maroon flowers extend from sharp yellow spines.
Picture: Oxy developed a 2011 calendar to promote the preservation of Qatar’s native flowers through the environmental program, A Flower Each Spring.
 Collaborative Leadership
Oxy recognizes that the knowledge and expertise of its personnel can contribute meaningfully to improvements in HES and social responsibility performance throughout all industries and with businesses of all sizes. Accordingly, Oxy comments on proposed legislation and regulations, participates in the development of industry standards, and shares our knowledge in business and community forums.
As one example, Oxy is engaged as detailed GHG rules are developed. Though we do not support geographically-limited or sector-based approaches to regulating GHG emissions (See SR Report at p. 12), Oxy has been active in programs developed to implement California's Global Warming Solutions Act of 2006. Oxy was the first upstream oil and gas producer in the state to join the voluntary California Climate Action Registry. This work formed the foundation for Oxy's GHG emission reports in 2009, when mandatory reporting was required by the State. In addition, Oxy has responded to the Carbon Disclosure Project's survey about GHG emissions every year since its inception in 2003.
Oxy continues to play a leading role in the development of regulations related to CO2 injection and geologic sequestration. At the federal level, we worked as part of a group of companies, industry associations and environmental organizations during 2009 to analyze and recommend enhancements to a proposed EPA regulation on CO2 injection. This effort, which continued in 2010, is unique in the extent of collaboration and agreement among industry and environmental groups on important aspects of the proposed rule.
Leveraging this experience, Oxy and many of the same parties worked together on an important effort in Texas that provides a legal framework for injection and long-term sequestration of CO2 into geologic formations that may contain oil and gas. A coalition of industry and environmental groups jointly advocated on aspects of the "Capture, Injection & Sequestration of Carbon Dioxide Act" (SB 1387), which was signed into law in 2009. The most comprehensive CO2 sequestration bill passed to date in any state, it establishes many important precedents that facilitate CO2 EOR operations. The collaborative work in 2010 focused on developing detailed implementing regulations.
See "C02 Sequestration in Texas" video in the Media Library.
 Oxy Qatar Enhances Environmental Awareness
Oxy Qatar was among the oil and gas companies sponsoring the third Qatar Petroleum Environmental Fair, a three-day event to promote awareness of environmental issues. More than 3,000 Qatari schoolchildren and other visitors attended the event in 2010.
Reflecting the fair’s slogan — “We Are All Responsible” — Oxy Qatar created interactive activities to promote environmental responsibility. A display with four panels suggested different ways to protect the environment: reuse shopping bags, pick up trash, turn off the light when leaving a room, and conserve water resources. Visiting students were encouraged to sign the panels with their own messages about protecting the environment.
Oxy Qatar also provided a painting area for the schoolchildren and distributed a variety of promotional materials such as T-shirts, caps, reusable shopping bags, beach toys and puzzles, all bearing the fair’s message on environmental responsibility.
 Oxy Volunteers Have a Blooming Good Time at Houston Wildflower Planting
Joining one of Houston’s most colorful autumn traditions, more than 40 Oxy Human Resources staff and family members took part in the fourth annual Lady Bird Johnson Wildflower Tribute Planting on September 18, 2010. The event was sponsored by the Houston Parks and Recreation Department, which provided seeds, instruction and guidance as volunteers from Oxy and other local companies devoted a morning to beautifying their city.
Oxy volunteers planted wildflower seeds in designated areas around the cloverleaf at Memorial Drive and Waugh Drive, near Spotts Park in Houston. Including family members and friends, the Oxy contingent ranged in age from 7 months to 63 years, making this a true family event.
The annual wildflower planting event honors Lady Bird Johnson, known as “the environmental First Lady,” who with actress Helen Hayes founded the National Wildflower Research Center in 1982. It was later renamed the Lady Bird Johnson Wildflower Center. According to the center, wildflowers not only add beauty to the landscape, but help to conserve natural resources because they require less water and no fertilizer.
 Oxy Colombia Program Encourages Workers to BE-SAFE
Oxy Colombia’s Health, Environment and Safety department uses a behavior-based program to reinforce safe work practices and prevent unsafe behaviors. The Behavior-Based Safety Program, known as BE-SAFE or Asegúrate, teaches employees and contractors to be active observers and safety promoters. These specially trained personnel engage with fellow employees and contractors to provide positive, peer-to-peer feedback on safe work practices. In 2010, 447 Oxy Colombia employees and contractors served as BE-SAFE advocates after three days of training on safe work practices, effective communication and positive feedback.
Based on the methodology of the Behavioral Science Technology Institute and modified for Oxy Colombia, the BE-SAFE program has had consistently positive results. In 2010, for example, Oxy Colombia’s operation in Llanos Norte achieved the lowest accident rate for contractors in its history.
 Oxy Colombia Leads Rescue of Pink River Dolphins
In January 2010, Oxy Colombia led a successful mission to rescue four pink river dolphins, or toninas, trapped in a shallow bank of the Caño Limón River near Oxy’s Llanos Norte operations.
When the toninas became wedged in the riverbank during a harsh summer, the neighboring community turned to Oxy for help. Oxy immediately contacted the Omacha Foundation — experts in the study and conservation of aquatic species native to the Llanos region of Colombia — to organize and monitor a rescue operation in concert with regional environmental authority Corporinoquia and the Colombian Ministry of Environment.
In addition, Oxy-supported foundation El Alcaraván assisted with the process of protecting and strengthening the toninas prior to their transport to the Arauca River, 11 kilometers (6.8 miles) from the riverbank. El Alcaraván hired local fishermen to help with the toninas’ care and purchased fish to feed to the trapped dolphins.
Engaging scientific and environmental experts, governmental authorities and the local community, the collaborative rescue effort highlighted Oxy’s commitment to community engagement and protecting biodiversity.
See "Oxy Colombia Leads Rescue of Pink River Dolphins" video in the Media Library.
 Oxy Water Programs
Oxy helps to address water needs in the communities where it operates. In addition, the company seeks to recycle process water and wastewater in its operations wherever feasible. Examples from Oxy's core geographic regions include:
Colombia: Developed a new residue treatment system to recycle drilling mud and service fluids, and to reuse residual produced water from Oxy's operations.
Yemen: Drilled and completed fresh water wells in Oxy's operating block and donated this infrastructure to the government as a community water supply.
Oman: Provide fresh water and drinking water to communities surrounding the Mukhaizna field.
Permian Basin: Oxy and the city of Hobbs, New Mexico, identified an opportunity for Oxy to use the city's treated municipal wastewater as a water source for enhanced oil recovery operations, instead of fresh water supplies. Oxy is pursuing similar opportunities to use treated municipal wastewater in other operations.
 Colombia Residue Management Program
Oxy Colombia's engineers at La Cira-Infantas have developed a new residue treatment system that benefits the environment while enabling more efficient use of resources. In the first four months of implementation, 100 percent of drilling muds and service fluids used in workover operations were recycled and more than 80 percent of residual produced water was recovered for reuse, which also saved approximately $1.3 million. In addition to reducing discharges to the environment, the new technology enables Oxy to reduce the amount of consumables and raw materials used at La Cira-Infantas.
 Biodiversity Thrives in Prairie Wetland Conservation Area
The Prairie Wetland Conservation Area (PWCA), 440 acres of wetlands, native grasses and wildflowers adjacent to OxyChem's plant in Wichita, Kansas, is home to an abundance of wildlife, including deer, bobcats, coyotes and more than 160 species of birds. Managed by a team from OxyChem and Glenn Springs Holdings, PWCA is one of Oxy's eight Wildlife at Work sites certified by the Wildlife Habitat Council and is also certified as a Corporate Lands for Learning site. PWCA is built on part of the historic Chisholm Trail and features two buffalo wallows, a mile-long woodchip trail laid by OxyChem volunteers, and a circa-1920s truss bridge over one of its three ponds. The site is a favorite of local residents, students and numerous organizations as an educational and recreational resource.
See "Environmental Conservation in the U.S." video in the Media Library.
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