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2002 ChevronTexaco Corporate Responsibility Report Environmental IssuesIntroduction to Environmental Issues SectionStriving for Environmental ExcellenceProtecting people and the environmentis a fundamental part ofThe ChevronTexaco Way.Responsibleenvironmental stewardshipof all aspects of our operationsand our products is not only anexpression of our values but alsoFishermen from nearby villages casta business imperative.their nets just offshore Chevron NigeriaLtd.’s oil and gas processing facility. We understand and share theconcerns many people haveabout the potential environmental effects associated with the developmentand consumption of energy. These concerns range from effectson air or water quality to community health in a particular locationto the ways our industry and the use of our products can contributeto global climate change.Our goal is to be recognized and admired for environmental excellence. Weare proud of the ways we are progressing toward that goal, such as makingsustained improvements in our energy efficiency. We also are committedto further integrating environmental considerations into our businessdecisions and enhancing how we manage and measure our environmentalperformance. We are committed to continually improving our processesfor minimizing pollution and waste, conserving natural resources,responsibly stewarding our products, and enhancing our broader understandingand management of the environmental aspects of our businesses.ChevronTexaco’s Health, Environment and Safety Policy provides theframework for our approach to environmental issues. Our OperationalExcellence Management System (OEMS) provides specific corporatewideexpectations for environmental performance and processes.Focusing on Conservation and EfficiencyAt the heart of our approach to environmental responsibility are conservationand efficiency, two concepts that we believe offer tremendouspromise for minimizing the environmental footprint of our companyand industry. The principles of conservation and efficiency are integratedacross our operations, from exploration and production to distributionand disposal. We seek to maximize the recovery of oil from a given reservoir,strive to continually improve our efficiency by getting more outputfrom each unit of energy we use, look for ways to limit our use of andimpacts on natural resources, and encourage consumers to use our productsmore efficiently. In doing so, we contribute to meeting the world’sdemand for energy while minimizing our total environmental footprint.About this Section: Working to Measure PerformanceThe environmental section of this report provides an overview of howwe are addressing a range of environmental issues across our operations.The issues addressed reflect our views on the most significant environmentalissues facing our company today. We have included corporatewideperformance data where available, although in many cases we provideinformation on a country, operating company, business unit or facilitylevel. Where we mention a performance or process requirement for ourbusiness units, we typically are referring to a specific expectation containedin our Operational Excellence Management System.Case Study >On Australia’s Barrow Island, 227native plants, 54 reptiles and 110types of birds thrive alongsideChevronTexaco oil field operations.Environmental Protectionon Barrow IslandChevronTexaco’s management of theBarrow Island oil field off WesternAustralia is widely recognized as anindustry benchmark for the coexistenceof petroleum development andbiodiversity protection. The island,a Class A Nature Reserve, supports14 terrestrial mammal species, 54terrestrial reptile species and morethan 110 bird species – some ofwhich are extinct on Australia’smainland but thrive on Barrow.Since the beginning of operations in1964, Barrow Island has seen more than 621 miles (1,000 km) of seismicsurveys, nearly 900 wells drilled and production of almost 300 million barrelsof oil. Yet the island’s full suite of native species has been kept intact,and through a strict quarantine program, ChevronTexaco has helped preventthe introduction and spread of invasive plants and animals that hasproved disastrous for the indigenous species of so many other islands.Now, as part of the Gorgon Venture, ChevronTexaco and its partners haveproposed developing natural gas from the offshore Gorgon Field, one ofthe largest single gas fields ever discovered in Australia. Operated byChevronTexaco, the project would transport the gas 43 miles southeast toBarrow, where it would be processed into liquid products and domestic gas.Liquids would be shipped to customers in the Asia-Pacific region, while gaswould be piped 50 miles (81 km) to the mainland. Total land disturbance© 2003 ChevronTexaco Corporation. All Rights Reserved.35
2002 ChevronTexaco Corporate Responsibility Report Environmental IssuesCase Study >(Continued)Environmental Protectionon Barrow Islandtaxes and royalties. Annually, gross domestic product (GDP) would beincreased by $2 billion and projected exports by $1.2 billion.for the gas processing facilities and associated infrastructure would be nomore than 740 acres (300 hectares). The combined area used on the islandfor oil operations and gas processing would remain at less than 5 percentof the island.At the request of the Western Australian government, Gorgon Venture partnerscompleted a comprehensive Environmental, Social and Economic (ESE)Review of the project. The governmentspecified that the ESE Reviewmust demonstrate that the proposedGorgon gas development could generatesocial and economic benefits,maintain the conservation values ofthe island as well as demonstratenet conservation benefits. This isChevronTexaco works to ensurethe first resource development proposalsubjected to such a comprehe-that native animals, such as thisperentie lizard, coexist with oilnsive sustainability review processfield operations.in Western Australia.The project’s potential ecological impacts have been assessed by independent,specialized ecologists. Their work shows that the proposed developmentwould not result in significant adverse impacts to important wildlifehabitats, restricted vegetation types or marine areas with unique conservationsignificance. A key element of environmental management is buildingon the existing robust quarantine procedures.With government and environmental approvals, construction on theGorgon project could begin in 2005.Case Study >Conservation Awards ProgramFor nearly two decades, ChevronTexaco has underwritten the 49-year-oldConservation Awards Program, the oldest such privately sponsored programin North America. The program honors individuals and organizations fortheir outstanding contributions to the conservation of natural resources.Over the history of the program, the awards’ 1,000-plus recipients havehelped protect wildlife, create natural preserves, establish parks andlaunch educational programs to heighten environmental awareness.In 2002, ChevronTexaco Conservation Awards were given for, amongother things, establishing an environmental radio show, setting up a civicbeautification organization and producing educational habitat films forschoolchildren.Although the development of Gorgon gas would bring substantial benefits,the gas field does present some unique challenges. Gorgon gas containsa relatively high content of carbon dioxide (CO 2 ), which results in substantialtreatment cost and potentially relatively large greenhouse gasemissions. Barrow Island provides a unique opportunity to reinject CO 2into saline reservoirs deep beneath the island. Reinjection, combined withcurrent best practice in plant design, would make the development one ofthe most greenhouse gas-efficient projects of its type in the world.In addition to using environmental best practices, the project alsowould provide significant economic benefits. We expect the developmentto provide some 6,000 jobs, directly and indirectly, throughoutAustralia, of which 1,700 jobs would be in Western Australia. Over thelife of the project, we estimate there would be approximately US$6.5billion in new investment and $10 billion in state and commonwealth© 2003 ChevronTexaco Corporation. All Rights Reserved.36
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