Registration Document 2005 - Total.com

4
Risk factors
Industrial and environmental risks
Industrial and environmental risks
Types of risks
TOTAL’s activities present industrial and environmental risks which
are inherent in the production of products that are flammable,
explosive or toxic. Its activities are therefore subject to extensive
government regulations concerning environmental protection
and industrial security in most countries. For example, in Europe,
TOTAL operates sites that meet the criteria of the European Union
Seveso II directive for classification as high-risk sites. Other sites
operated by TOTAL in other parts of the world involve similar risks.
The broad scope of TOTAL’s activities, which include drilling, oil
and gas production, on-site processing, transportation, refining,
petrochemicals activities, storage and distribution of petroleum
products, production of intermediary chemical products and
specialty chemicals, involve a wide range of operational risks.
Among these risks are those of explosion, fire or leakage of toxic
products. In the transportation area, the type of risks depends
not only on the hazardous character of the products transported,
but also on the transportation methods used (mainly pipelines,
maritime, river-maritime, rail, road) and the volumes involved.
Most of these activities involve environmental risks related to air
or water emissions and the creation of waste, and also require
environmental site restoration after production is discontinued.
Certain branches or activities face specific risks. In oil and gas
exploration and production, there are risks related to the physical
characteristics of an oil or gas field. These include eruptions of
crude oil or of natural gas, discovery of hydrocarbon pockets
with abnormal pressure, crumbling of well openings, hydrocarbon
leaks generating toxic risks and risks of fire or explosion. All
these events could possibly damage or even destroy crude oil or
natural gas wells as well as related equipment and other property,
cause injury or even death, lead to an interruption of activity or
cause environmental damage. In addition, since exploration and
production activities may take place on sites that are ecologically
sensitive (tropical forest, marine environment, etc.), each site
requires a specific approach to minimize the impact on the related
ecosystem, biodiversity and human health.
TOTAL’s activities in the Chemicals segment and, to a lesser
extent, the Downstream segment also have related health, safety
and environmental risks. These risks can arise from the intrinsic
characteristics of the products involved, which may, for example, be
flammable, toxic, or be linked to the greenhouse gas effect. Risks
of facility contamination and off-site impacts may also arise from
emissions and discharges resulting from processing or refining, and
from recycling or the disposal of materials or wastes at the end of their
useful life.
84 TOTAL - Registration Document 2005
Risk evaluation
Prior to developing their activities and then on a regular basis during
the operations, business units evaluate through specific procedures
the related industrial and environmental risks in addition to taking
into account the regulatory requirements of the countries where
these activities are located.
On sites with significant technological risks, analyses are performed
for new developments, updated in case of planned significant
modifications of existing equipment, and periodically re-evaluated.
To harmonize these analyses and reinforce risk management,
TOTAL has developed a group-wide methodology which is being
implemented progressively throughout the sites it operates. In
France, three pilot sites are developing Risk Prevention Plans
in application of the French law of July 30, 2003. These Risk
Prevention Plans will implement various urbanization measures in
order to reduce risks to urban environments surrounding industrial
sites. The texts implementing these aspects of the law of July 30,
2003 were published at the end of 2005.
Similarly, environmental impact studies are done prior to any
industrial development with a specific, thorough initial site analysis
taking into account any special sensitivities. These studies also
take into account the impact of the activities on the health of the
neighboring population. These studies are based on a common
methodology. In countries where prior authorization and supervision
is required, the projects are not undertaken without informing the
relevant authorities of the studies.
For new products, risk characterizations and evaluations are
performed. Furthermore, Life Cycle Analyses (ACV) for related
risks are performed on certain products to study all the stages of
a products’ life cycle from their conception until the end of their
existence.
TOTAL actively monitors regulatory developments so as to continue
complying with local and international rules and standards for the
evaluation and management of industrial and environmental risks.
The Group’s commitment to meet its environmental obligations is
reflected in its environmental contingencies and asset retirement
obligations (see note 19 to the consolidated financial statements,
page 199).
The future expenses related to asset retirement obligations are
accounted in accordance with the principles described in note 1
paragraph P to the consolidated financial statements (page 175).