



- Western Canada
- Oil Sands
- Arctic
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We will work towards zero injuries, zero vehicle collisions and no reportable spills
We track and investigate incidents to identify ways to reduce and eliminate injuries, vehicle collisions and spills. After a review of our incidents we implemented two programs that we will begin tracking formally in 2010. We installed driving monitors in employee vehicles to encourage and enforce safe driving behaviours through real-time coaching to drivers, helping them maintain focus and improve their driving skills. We also implemented a contractor management program with tools to assist our supervisors with health and safety screening and performance monitoring of our contractors. This helps us identify contractors with similar safety philosophies and allows us to provide assistance to contractors in improving their own safety performance. Our philosophy regarding contractors includes face-to-face communication, which is enhanced through our Advanced Safety Auditing conversations between field personnel and leaders in the area. We also work to reduce spills through continual improvements to our mechanical integrity programs and procedures.
We will design new wells and facilities to take advantage of alternative energy sources, including solar and wind power where these are available.
Within our Western Canada Gas operations, we installed solar powered chemical pumps on 86 wellsites. As well, we installed solar power for communication and control equipment on the majority of wellsites. We also installed technology to recover heat from engine and turbine generator exhausts, thereby reducing our use of fuel-gas. We are presently installing this type of technology on another project and are evaluating a number of additional facilities for suitability. Our Oil Sands operations are using solar power at all observation, water source and water wells where power requirements are minimal. The design for our Surmont 2 project currently includes solar panels for 70 reservoir observation wells, thermoelectric generators for several water disposal wells and "green" designs, including solar power, on approximately 300,000 square feet of occupancy buildings.
We will develop a ConocoPhillips Canada Climate Change Strategy and Action Plan and implement it to mitigate climate change impacts.
We developed and implemented a climate change action plan in 2009. Actions include:
We will establish and publicly report our greenhouse gas reduction targets in 2009.
While we did not set a specific numerical target for emissions reductions in 2009, we remain committed to taking action to expand our business planning processes to address greenhouse gas emissions.
We will:
We reviewed source (fuel, flare, vent) and equipment information with operations and established a link between management of change (for equipment) and air emissions management systems for improved data quality in the future. We improved our air emissions reporting and data management.
We will not set air emissions reductions targets in our areas of operation by 2010. This decision is due to uncertainty in the regulatory environment at the national and provincial levels. We are developing an Air Management Strategic Plan that will inform future decisions on air emission reduction targets.
We will track and report the impact of our surface land footprint and set reduction targets.
To understand, manage and minimize our land-based impacts we initiated several projects. We examined the footprint data, our management needs as well as the tools and processes we use. From this we are now working to consolidate our footprint management systems into a consistent and accurate methodology. This will take some time. In addition, we initiated a pilot program in the Little Smoky region of Alberta, to better understand the nature and extent of our footprint. This is largely attributed to the age of some of our assets and the need for better monitoring and data management. We are working to remedy this by actively monitoring our land-based footprint, correcting the database and mitigating associated impacts. We are also reviewing our total land holdings to identify where we have opportunities to relinquish lands back to the Crown. As of June 2010 we found 278 land holdings that can be cancelled resulting in recoverable funds of approximately $1.5 million and a return of 435 hectares of land back to the Crown.
As part of the reclamation process we will replant trees on 100 percent of drilling related sites in forested regions within five years of site abandonment.
In our Oil Sands business unit, a multi-disciplinary team was established and a work plan developed to accelerate reclamation, including the planting of trees, on upland sites. More than 30,000 trees have been planted by ConocoPhillips Canada as part of an Oil Sands Leadership Initiative program on sites identified by Alberta Sustainable Resource Development as priority sites for reforestation. The Faster Forest planting program is voluntary and in addition to any reforestation that ConocoPhillips Canada is required to do by regulation. The program has become systematic and will expand in 2010 and beyond. In our Western Canada Gas business unit, we have been replanting trees on green zone sites that have been drilled and abandoned since late 2007. A list of sites abandoned after January 1, 2009, was compiled and sites are being assessed through our routine assessment, remediation and reclamation process. Approximately 75 sites on Crown Lands within the green zone had been flagged for replanting after the assessment and remediation (if required) are complete. Since assessment and remediation can take several years to complete, tree planting on these sites will likely start in 2011.
We will work with federal and provincial governments and other stakeholders and agencies to determine and support areas for biological conservation that may also serve as biodiversity or greenhouse gas offsets.
We developed a draft Biodiversity Management Framework document, which provides an approach for assessing, screening, rating and identifying options for managing risk to biodiversity. We continued working with government regulators to identify opportunities for managing high-value biodiversity resources (e.g., caribou habitat in Alberta and northeastern British Columbia).
We will develop and implement a biodiversity conservation approach that will frame and guide our approach to planning, development and operations to conserve biodiversity.
We developed a draft Biodiversity Management Framework document, which provides an approach for assessing, screening, rating and identifying options for managing risk to biodiversity. We continued working with government regulators to identify opportunities for managing high-value biodiversity resources (e.g., caribou habitat in Alberta, northeastern British Columbia).
We will develop and implement a Canada-wide water strategy that incorporates the distinct business interests of the Western Canada Gas, Oil Sands and Arctic assets.
A draft water strategy for our Western Canada Gas business is under review and several of its initiatives are underway. A draft oil sands water strategy is under development.
We will track commitments to stakeholders and hold ourselves accountable for meeting these commitments.
We have systems to track commitments in place in our Capital Projects, Arctic and Oil Sands groups. The regulated consultation tracking required for our Western Canada Gas business needs a unique solution. We plan to select and fund a tracking tool pilot project.
We will require employees to complete a level of Aboriginal cultural awareness training consistent with their level of engagement with Aboriginal communities.
Though we have provided regular Aboriginal cultural awareness training on an ad hoc basis, gaps within this approach have led us to begin developing three new levels of training, including:
We will continue to strive toward designing and operating our business in support of long-term relationships, culture, economics and other societal benefits, the environment, health and safety.
Our sustainable development process was formalized. This process begins with the identification and ranking of sustainable development issues by the potential risk they represent to our business and the interest of stakeholders. Our actions to address these issues are then discussed in our sustainable development report (released in 2008) and on this website. Metrics for each sustainable development issue were also reviewed and verified and new indicators were identified. Metrics from 2007 through to 2009 are also now found on this website. An non-government environmental organization reviews and ranks both the sustainable development issues and draft metrics and provides feedback. Commitments, strategies and associated action plans are then developed for high risk issues. Finally, issues identified in both 2008 and 2009 have been considered and incorporated into the ongoing long range business planning process for the business units.
We will improve our career development programs to enable our staff to achieve their career aspirations and enhance our work environment where our staff are recognized, their voices are heard and acted upon and fun is a part of our business success.
We expanded our support of employee career development through increasing staff knowledge and use of existing programs, providing formal mentoring opportunities and holding numerous courses, talks and seminars on career development issues. Successes included an increased focus on leadership development, over 1,000 staff attending events during 2009’s annual Career Development Week and 75 staff pursuing career coaching through our mentorship program.
We will create a culture of sustainable development that transcends the workplace by identifying opportunities and encouraging actions that we can take in the office and at home to reduce energy, water and waste.
In 2009, we launched the Green Team, an employee-driven, volunteer-based team comprised of about 100 members. The team focused on reducing waste in the office and at home. Key projects included a highly successful waste reduction pilot in our Gulf Canada Square location. The building manager is now looking to expand this project building-wide. We also engaged staff in order to help them better understand how to reduce waste through a number of events including a series of five seminars presented by an external expert on topics such as composting. Finally, we held an Earth Day event, attended by more than 450 employees. At this event, employees recycled 5,000 plastic bags and replaced them with 500, 80% recycled/reusable bags.
We will work to eliminate ethical violations.
ConocoPhillips Canada employees must complete mandatory ethics compliance training and certification every year and, if required, Foreign Corrupt Practices Act training and certification. Compliance is tracked. A mandatory ethics training refresher program for those employees who have not recently completed training was implemented in 2009 with 100 percent compliance. We monitor and require compliance with respect to relevant ConocoPhillips policies including anti-boycott, insider trading, export compliance, drug and alcohol, sanctions and disclosures of conflict of interest.
The senior leadership team will fully integrate the nine Sustainable Development Commitments into ConocoPhillips Canada practices and policies through the development of a formal sustainable development process.
Our sustainable development process was formalized. This process begins with the identification and ranking of sustainable development issues by the potential risk they represent to our business and the interest of stakeholders. Our actions to address these issues are then discussed in our sustainable development report (released in 2008) and on this website. Metrics for each sustainable development issue are also reviewed and verified and new indicators were identified. Metrics from 2007 through to 2009 are also now found on this website. An non-government environmental organization reviews and ranks both the sustainable development issues and draft metrics and provides feedback. Commitments, strategies and associated action plans are then developed for high risk issues. Finally, issues identified in both 2008 and 2009 have been considered and incorporated into the ongoing long range business planning process for the Business Units.
We will track, monitor and publicly report Aboriginal contracting and employment results in the next sustainable development report.
We have contractor tracking systems for our Oil Sands and Arctic business units and have identified a tracking system that will be implemented in our Western Canada Gas business in 2010. We also developed and are testing a system to track the number of Aboriginal people who are employed by ConocoPhillips Canada.
We will conduct a pilot project measuring the effectiveness of stakeholder engagement in 2008. The pilot project will be assessed and final indicators were selected, with full implementation in Western Canada Gas occurring in 2009.
In 2008, we identified indicators to assess the effectiveness of our stakeholder engagement. These included the number of events attended, level of participation, volunteer hours and community investment. We expanded our assessment across Western Canada Gas in 2009. We are reviewing the data and will use the results to inform our assessment and engagement activities. We will also measure the effectiveness of our regulated consultation by tracking our activities and surveying stakeholders, after initial activity and over time, and report the results in early 2011.
We will elevate our stakeholder consultation if our activity is in proximity to public facilities such as schools or hospitals.
In 2008 and 2009, we developed new strategies to increase engagement with stakeholders in our Western Canada Gas operating areas. We increased stakeholder engagement in areas of increased business activity or stakeholder interest or concern. In the Tomahawk area we had additional meetings, shared more information and negotiated formal agreements. Internally, we formed a relationship management task group to develop a life-cycle process as well as tools to better integrate relationship management. In 2010, this group drafted a relationship management plan describing the process and tools for elevated consultation. This plan will be piloted and modified as needed and processes and tools will then be implemented.
We will eliminate our remaining use of non-saline water, where practical, in all existing waterflood projects.
Water use assessments of all existing waterfloods and the nine water licenses associated with them will be completed by the third quarter of 2010. These assessments examined current and future water use needs, the sustainability of the current non-saline sources and produced water or saline groundwater alternatives. From the eight completed assessments, we determined only two water licenses were needed to support our waterfloods and the water use from these licenses is decreasing. We applied to donate 50 percent of our water license on the Medicine River, a tributary of the Red Deer River, to the Water Conservation Trust of Canada. The Water Trust protects and enhances aquatic ecosystems by accepting donations of water made surplus from license holders. This is the first application of its kind. Alberta Environment is reviewing our application and a decision is pending.
We will investigate and implement new technologies that will reduce the amount of non-saline water used to drill and complete oil and gas wells.
In 2009, a produced water treatment pilot using electro-dialysis was successfully completed in our Ghost Pine asset area. In 2010, we will complete an economic analysis of these results to help us assess where the beneficial reuse of produced water would be feasible.
We will expand our work in energy conservation and efficiency by:
In 2009, our Western Canada Gas Operations group completed 250 energy efficiency and greenhouse gas reduction projects consisting of 26 large and 224 small projects. This work saved approximately 70,750 m3 of gas per day and reduced greenhouse gas emissions by the equivalent of approximately 95,000 tonnes of carbon dioxide. We developed project tracking tools and published a newsletter focused on greenhouse gas reduction, energy efficiency projects and other "green" initiatives.
We will open an oil sands office in Fort McMurray and increase the number of local staff to facilitate improved stakeholder engagement and to enhance capacity development in the Region.
An office in Fort McMurray opened in late 2009. Three new positions have been created: a local business development coordinator, a capacity development coordinator and an office administrator. These three positions are in addition to the current local Community Investment Coordinator. Our Oil Sands Stakeholder Engagement team works to ensure that stakeholders are aware of the office and the meeting facilities it provides.
We will work with other agencies to develop and implement innovative best practices in an effort to mitigate social concerns with emphasis on youth development in the Region.
Through the Oil Sands Leadership Initiative, we chair a "Sustainable Communities Working Group" which is designing and implementing an education initiative to increase the participation and success of youth in primary school. A pilot project was established in Janvier, Alberta with a community coordinator hired through the Ghost River Rediscovery Centre. "I am Beautiful Because" workshops were held in several communities, including Janvier, Heart Lake and Beaver Lake to boost self--esteem among Aboriginal youth and women. In addition, the "Gen Y: We Care" workshop was held in June with 60 participants from all communities represented at the introductory workshop; a follow-up “Train the Trainer” program was held at our offices in October 2009 to build local capacity.
We will continue to provide financial support for education, training programs and to provide practicum placements.
We continue to provide financial support to the Keyano College Environmental Monitor Training Program to train local community members and have actively discussed program structure and curriculum with the college. We award one $2,500 trade bursary annually to a student in the Fort McMurray area. We funded an Operators Apprenticeship Training Program in the amount of $450,000. This past year, four local residents completed the Operators Apprenticeship Training Program, all of whom gained employment in the oil and gas industry.
We will lead an initiative that brings together stakeholders and industry to develop and support a driving behaviour modification campaign for Highways 63 and 881.
We supported the development and launch of a safe driver awareness campaign "Coalition for a Safer 63 & 881." Support among the oil sands industry continues to grow.
We will work with the Northern Alberta Aboriginal Business Association and the Fort McMurray Chamber of Commerce to continue to increase the opportunity for local and Aboriginal contractors to access contracts with ConocoPhillips Canada through the use of the online REDlink process. We will also work with existing and new Aboriginal entrepreneurs to provide business development support.
We sponsored, provided keynote speakers and attended the Northeastern Alberta Aboriginal Business Association Business Expo to learn more about the capabilities of local contractors. A stakeholder engagement and procurement process was developed for drilling, completions and seismic work to help ensure local and Aboriginal contractors are on the list for work opportunities and potential bids. Twenty-two percent of our winter drilling, completions and seismic work was completed by local and regional contractors. A beginners- level driver’s license program was also launched for Fort McMurray, Chipewyan Prairie Dene and Heart Lake First Nation with a focus on safe driving skills and literacy.
We will support the development of federal greenhouse gas regulations.
We participated in the Canadian Association of Petroleum Producers’ Climate Change Working Group to develop and present climate change policy options to federal and provincial governments. ConocoPhillips Canada provided technical information to governments to ensure an understanding of how policy options affect the energy business. We focused on building relationships with influential individuals, academics and stakeholders to discuss our climate change efforts and ensure that governments are aware that ConocoPhillips Canada is committed to being a responsible energy developer. We actively participate in government-led policy development committees and task groups.
We will include the potential for carbon capture and storage in long range planning for all new developments.
Early phase engineering and economic analysis of carbon capture and storage for Surmont Phase 2 determined it is not currently a cost-effective solution for typical once-through-steam generator, steam-assisted gravity drainage facilities. We have re-focused our efforts to look broadly at carbon management solutions that include other technological solutions and market-based opportunities. Surmont Phase 2 is being designed to be carbon capture ready in the event carbon capture and storage is cost-effective in the future. A Surmont carbon dioxide storage study and a carbon dioxide capture technology study are underway. We are continuing to study carbon dioxide mitigation opportunities including optimization of heat integration, evaluating technologies for low quality heat recovery and developing a full long-term carbon dioxide reduction strategy. We continue to discuss and develop our carbon market capabilities to transact and purchase carbon credits to meet compliance obligations, attending several meetings with offset providers nationally and internationally.
We will support the regional land planning under the Land Use Framework.
A ConocoPhillips Canada employee was nominated by the Cumulative Environmental Management Association and appointed by Alberta’s Cabinet as a member of the Regional Advisory Council established to provide advice and recommendations on key cumulative environmental effects and land management issues for the Lower Athabasca Regional Plan. The advice provided by the Regional Advisory Council is being reviewed by the Government of Alberta with the expectation that the government will consult Albertans on the draft plan later in 2010.
We will continue leadership in the development of a regional land, wildlife and biodiversity monitoring program.
Currently, each oil sands developer completes independent monitoring and reports information to government. As a result, combining this data and reporting meaningful information to stakeholders on a regional basis has been challenging. The vision for a regional program is to use information from The Alberta Biodiversity Monitoring Institute as a foundation, with regional and sub-regional monitoring programs targeting specific questions and issues, and to have local site- specific monitoring using common protocols for data collection, with credible periodic reporting to stakeholders. To begin developing this program, we championed the formation of a government/industry task group, through the Oil Sands Developers Group and worked with Alberta Environment and Sustainable Resource Development. This task group will help formalize a governance group, multi-year work plan and industry-funding requirements.
We will continue leadership in the advancement of a joint government-industry regional groundwater information database.
Along with OPTI Canada and Nexen, we co-led an industry initiative in 2007 to develop a regional groundwater model, beginning with a project to select preferred modeling software. In mid-2008, industry sought advice from Alberta Environment before proceeding further. Alberta Environment decided to take a leadership role in developing a regional groundwater model and in late 2008 awarded a contract to collect information from all the in-situ developers south of Fort McMurray. Alberta Environment released its information on a regional groundwater model and a new Groundwater Management Framework draft for the Southern Athabasca Oil Sands for comment in late 2009. Our geology data was used to help build the model and we have provided comments. We also reviewed and provided input on the draft Groundwater Management Framework.
We will continue ongoing work in 2009 to search for more saline water sources that would replace our current non-saline water use.
Since 2007, we have spent approximately $26.5 million exploring for saline water (including 19 wells drilled and tested up to 60 kilometres from the Surmont Project). In 2009, we shifted our water delineation program to focus on finding alternative brackish (saline) water sources in Clearwater and Lower Grand Rapids. Modifications to the Surmont Phase 2 design are being made for the facility to handle brackish (saline) water. Changes to the current design include additional saline water wells and pipeline, saline water tanks, cold lime softeners, heat exchangers and revisions to the disposal system to account for the increase in disposal rates. Brackish water with low salinity is being targeted to reduce the proportional non-saline water use to less than seven percent.
We will continue our support for regional woodland caribou conservation, including providing lead industry representation in the Athabasca Landscape Planning Team under the Alberta Caribou Committee.
A ConocoPhillips Canada employee was one of the Canadian Association of Petroleum Producers technical representatives on Athabasca Landscape Planning Team, operating from June 2008 to May 2009. The team completed a detailed technical analysis of management options and provided recommendations to the Alberta Caribou Committee Governance Board. The committee’s Governance Board has reviewed the report and provided its recommendations to the Alberta Sustainable Resource Development. We provided consistent and active support for the work of the Athabasca Landscape Planning Team. A ConocoPhillips Canada employee is also one of three Canadian Association of Petroleum Producers representatives on the Alberta Caribou Committee Governance Board, which provides recommendations to the Alberta Government on caribou recovery, including research and monitoring. We provided $60,000 to support the salary for the Alberta Caribou Committee Research Sub-Committee Chair at the University of Alberta.
We will join the Wood Buffalo Environmental Association and Regional Aquatics Monitoring Program.
We expressed interest in the Wood Buffalo Environmental Association and were accepted as a member in March 2009. Through joining and funding the Wood Buffalo Environmental Association, we support a high calibre monitoring program that includes a regional ambient air monitoring program with real-time reporting to a publicly accessible website for use by our stakeholders. The Wood Buffalo Environmental Association also includes a program to monitor the effects of air emissions on vegetation and soils in the region. The results of the monitoring program will help to validate predicted cumulative air emissions impacts assessed as part of our Environmental Impact Assessment. We have also been unanimously endorsed as a new member of the Regional Aquatics Monitoring Program. Based on their respective funding formulas, we paid $68,000 towards the $10 million budget of the Wood Buffalo Environmental Association and $50,000 towards the $3.3 million budget of the Regional Aquatics Monitoring Program.
We will spend over $300 million in the next five years on oil sands research and development including research to reduce environmental impacts
In 2008 and 2009 we spent approximately $116 million on heavy oil technology research and development. Of the total, $90 million was focused on oil sands and of that $25 million was directed at projects that have an environmental focus. Specific environmental projects included studying evaporator technologies (to reduce non-saline water use) and combustion systems (to reduce emissions). Additional projects focused on lowering the steam to oil ratio of bitumen production which will result in less water used, less carbon dioxide generated and smaller facilities. These were primarily lab and engineering studies (often with joint industry partners). As technologies advance to pilot and field demonstrations, increased spending in future years is anticipated to support those demonstrations.
We will explore further opportunities with communities to collaborate and resolve community concerns about the Parsons Lake development over 2009-2010.
We engaged with community members to discuss access options for the Parsons Lake development to provide project updates, discuss community investment opportunities, and solicit comments, concerns and ideas. We also explored options for addressing community concerns through the Parsons Lake Access Working Group. We continue to explore different forums for community collaboration and engagement.
We will actively engage key communities in the Parsons Lake development area to understand their community investment priorities associated with the project and commit to developing an investment strategy that is mutually beneficial.
We have actively engaged with communities through visits and discussions about community investment priorities. We developed newsletters and communications specifically about community investment in the North to facilitate our discussions and ask for input on our efforts. We refined our community investment approach based on community priorities, company activity and environmental requirements.
We will continue to build local and regional employment capacity for ConocoPhillips Canada-specific needs such as skilled trades, environmental services, office management and support services through bursaries, apprenticeships and association with local training facilities and programs.
In 2008, we awarded six regional bursaries and one corporate bursary in the Northwest Territories. The following year we expanded our program to include adult training and office administration and awarded 12 regional bursaries through the 2009/10 school year. We also began developing partnerships with community schools and youth centres and a relationship with Aurora College. Lastly, we provided a tour of our Elmworth and Wembley gas plants in Alberta to students in the Youth Employment Leadership Skills program.
We will continue to incorporate local traditional knowledge at the design and planning stages of development to mitigate potential impacts of our projects.
This commitment will be fulfilled once the design phase is underway. In the interim, since several project team members within the Arctic Exploration team are new to their roles, a cultural awareness course will be provided for the team. Having understanding and awareness of Northern culture will help the team incorporate traditional knowledge when the design phase begins.
We will continue to be members of forums such as ArcticNet and the Arctic Energy Alliance that support quality research and promote responsible and sustainable development in the Arctic.
We assess potential participation in forums with consideration for the level of influence or activity of the group and alignment with our business and sustainable development priorities. Although we ended our membership in the Arctic Energy Alliance in 2009, we continue to serve on various groups that provide overall research direction including The ArcticNet Board and Technical Steering Committee, the Environmental Studies Research Fund Northern Advisory Committee, and the Canadian Association of Petroleum Producers’ Northern Executive Policy Group.
We will continue to support regional research in key areas of mutual interest and concern to us and key local wildlife management agencies or organizations.
We contributed to research programs including:
We will continue to actively support the near-term implementation of regional environmental assessment principles that improve both the quality of environmental management and the environmental assessment scoping and review process by regulatory bodies in the Beaufort/Mackenzie Delta region.
We provided active support for near-term implementation of regional assessment principles in numerous ways, including:
We served on the Beaufort Regional Environmental Assessment Steering Committee:
We will investigate advanced technologies during the detailed design phase of Parsons Lake facilities to further reduce our footprint, minimize our impact on the biodiversity of the area and minimize greenhouse gases.
We have undertaken several studies:
