Regulatory Compliance

The oil and gas industry in Canada is regulated by provincial, territorial and federal agencies to ensure the safe, responsible and efficient development of resources. We are a proactive, compliance-based company. For us, this means:

• Understanding and fully complying with regulations and our own company policies.
• Acknowledging, reporting and responsibly managing identified incidents of non-compliance.
• Choosing to take actions beyond regulatory compliance in some instances.

Managing our Compliance

Our business is subject to numerous federal and provincial regulations and requirements. Our compliance is managed through our Health, Safety and Environmental Management System, proactive inspections and mentoring and training through comprehensive internal audits. Additionally, senior leaders in ConocoPhillips Canada participate in an internal Regulatory Advisory Committee, which meets on a quarterly basis to discuss compliance and emerging issues.

Everyone who works for ConocoPhillips is expected to understand and comply with the regulatory requirements related to their roles. To support this expectation, we enhanced our training efforts over the past two years, including:

• Providing training to specific groups based on requests, non-compliance findings and near misses.
• Developing a Regulatory Handbook, a quick-reference guide on common regulations. By using the handbook, we can quickly access the information we need to work in full compliance with regulations.
• Holding a Regulatory Open House in Calgary, where 250 ConocoPhillips Canada staff took the time to learn more about regulations by talking with our internal regulatory groups and external regulatory agencies.

In 2010, we will also add a regulatory requirements orientation course for staff who work in areas impacted by regulations. We believe efforts like this will ensure continual improvement in our compliance.

Our Compliance Performance

The results of inspections and audits conducted by various regulators in 2008 and 2009 identified several non-compliances. Overall, an increased percentage of satisfactory findings indicates our compliance improved from 2007 to 2009.