To tap new energy resources, Chevron is now operating in more difficult and isolated areas than ever before. We are committed to seeing that new projects are developed in an environmentally sound manner and that existing operations continue to reduce their environmental impacts.

Continuous Improvement Through World-Class Standards

Chevron's comprehensive environmental management system drives continuous improvement across our operations. Our design standards for new capital projects require consideration of environmental aspects and resource conservation. New projects must avoid continuous gas flaring and venting and must incorporate reinjection of produced water where feasible. In addition, we are systematically implementing performance standards at our existing operations to minimize emissions, discharges and waste and to promote responsible waste management practices.

For instance, our Alba North platform in the North Sea implemented a multiyear project to test and demonstrate the feasibility of a new technology to further clean water that is pumped out of a well with oil. This produced water is separated from the oil and then typically discharged into the sea. At Alba, the new process reduced the concentration of oil in the produced water discharge from 27 milligrams per liter (mg/L) to 9.6 mg/L, which is below the regulatory limit of 30 mg/L. In 2008, we also piloted a new reinjection process at Alba that further reduced oil loading from these discharges.

Conserving Water Resources

Chevron operates eight refineries across the globe. Four of these refineries have put technologies in place to use treated effluent from the local municipality to meet their demand for water. Approximately one-fourth of the total water used by our refineries is supplied by such reclaimed wastewater (an estimated municipal effluent volume of about 45,000 cubic meters per day). We are now assessing corporatewide water consumption and potential water treatment and reuse technologies at all of our refineries to identify new recycling opportunities and options to further reduce our use of fresh water.

Barrow Island will be the site of natural gas processing and storage facilities associated with the proposed Gorgon project off the coast of Western Australia. Once construction begins, water will be needed for dust suppression and to provide potable water for the construction workforce. Water requirements will total approximately 1,500 to 2,000 cubic meters per day. However, there are no sustainable freshwater sources on Barrow Island adequate to meet operational needs, and the scarce resources that are present provide crucial ecological benefits. Thus, the project team is incorporating the use of a reverse osmosis system to desalinate seawater and produce fresh water, as well as reuse and recycling processes where possible to minimize water required.

Working with stakeholders, Chevron conducted several studies demonstrating that disposal into the ocean of the brine generated by reverse osmosis will have minimal effect on Barrow Island and its surrounding waters. These studies included both toxicity tests of simulated whole effluents and literature reviews of other studies of marine impacts of desalination. The results validate that the project's proposed brine disposal method is environmentally sound.

Supporting Biodiversity and Healthy Ecosystems

Some of Chevron's international concessions are located in or adjacent to a protected area as defined by the World Conservation Monitoring Centre's World Database on Protected Areas. Chevron has a long history of operating in the vicinity of ecologically sensitive areas.

Along a 1.9-mile (3-km) stretch of beach adjacent to Chevron's operations in Malongo, Angola, lies a major nesting area for olive ridley sea turtles, an internationally listed endangered species. We initiated conservation efforts in 2000 and improved protection techniques in recent years with the use of geographic information systems and global positioning system technology. In addition, we hired and trained local fishermen from nearby communities to help monitor and protect the nesting turtles and their eggs. In Soyo, sea turtles are fitted with satellite tracking devices to help us better understand the turtles' use of the area and understand the potential impact on the turtles of the Angola LNG (liquefied natural gas) project's construction and operations. The activity of the turtles can be viewed at SeaTurtle.org.

Chevron responded to community concerns regarding safe consumption of fish from Cabinda Bay. Fishing in that area is an important commercial and subsistence resource. Following public concerns over fish quality, our local business unit initiated a program to sample fish tissue for potential toxins. Now in the program's third year, the lab analyses have consistently demonstrated that commonly consumed fish are safe to eat and contaminant levels are within safety limits set by the U.S. Food and Drug Administration for commercially sold fish.

Chevron completed the Environmental, Social and Health Impact Assessment for a seismic survey to be undertaken in Lawachara National Park in Bangladesh in support of potential natural gas exploration and production. The assessment identified potential concerns and recommended mitigation methods, such as limited work hours, worker training and waste management, to make sure the preliminary exploration activities did not adversely affect the natural wildlife and vegetation around the area. The International Union for Conservation of Nature and Natural Resources led an environmental monitoring team that conducted pre- and post-activity surveys in the forest and found no significant impact on the flora and fauna of the forest.

Emergency Preparedness and Response

Our first priority is to prevent emergencies, such as spills and releases, but we also need to be prepared to respond to them when they do occur. Whether emergencies are caused by severe weather, natural disasters, material failure or human error, we strive to learn from each event and improve our readiness.

Response During the 2008 Hurricane Season

After Hurricanes Katrina and Rita in 2005, Chevron operations in the region revisited their emergency preparedness plans and made revisions based on lessons learned. Chevron has a flexible, tiered emergency response system that includes local incident command teams supported by corporate and external resources. These teams were activated when Hurricanes Gustav and Ike affected the U.S. Gulf Coast and Caribbean islands in 2008. Regional coordination was instrumental during the 10-day closure of our Houston office complexes. Closure decisions and communications to our workforce were timely, which resulted in no injuries. Flexibility and coordination were demonstrated when emergency response contractors and equipment that were on standby to aid Chevron Pipe Line Co. were transferred to help our Port Arthur lubricants plant after post-storm reconnaissance determined the need was greater at Port Arthur.

Maintaining business continuity to support our customers and the communities where we operate is a shared objective across Chevron. Based on the lessons learned in 2005, many organizations had updated their plans to promote the continuity of critical business functions should such an event recur. Collectively, these improvements proved to be very valuable after Hurricanes Gustav and Ike in 2008. For instance, after Hurricane Katrina, warehouses with generators and humanitarian supplies were established on the Gulf Coast. So in the aftermath of Gustav and Ike, these resources were immediately deployed to the affected areas, and we were able to effectively restore power at service stations and furnish our employees with various humanitarian supplies. Also, several organizations implemented pre-planned movement of critical operations and personnel out of the Gulf region. Chevron Pipe Line Co., for example, has a secondary control center in Midland, Texas, which served as a home base during the response.

Product Stewardship

Product stewardship is one of the 13 elements of Chevron's Operational Excellence Management System. We identify, assess and manage potential environmental, health and safety risks associated with a product from conception to consumption, recycling or disposal.

In 2008, we conducted product reviews in Asia, Europe and North America. These reviews examined potential life-cycle risks of new products, such as biofuels, and examined refinery projects that affect our final products. In 2008, we began implementation of a standardized product stewardship process that was developed in 2007. The process is expected to be fully implemented in all of our Global Downstream business units by the end of 2009.

Unleaded gasoline enables motor vehicle exhaust catalysts to operate as designed, significantly reducing vehicle emissions and potentially adverse health effects. In 2005, as part of an industry initiative, Chevron made a commitment to completely phase out lead in motor gasoline. That commitment was fulfilled everywhere in the world, with one minor exception. In Egypt, there are as yet limited suppliers of lead-free gasoline. Leaded gasoline is still supplied for some aviation engines that cannot be modified to use unleaded gasoline.

Restoring Wetlands at a Former Oil Field

Formed in 1998, Chevron Environmental Management Co. (CEMC) offers a wide range of environmental liability management services, which include site assessment and remediation; health, environmental and safety due diligence; onshore and offshore facilities decommissioning; and well abandonment. CEMC strives to develop the best end-of-life solutions for company assets, such as beneficial reuse and not just regulatory closure.

At Guadalupe Dunes on the Central California coast in the United States, CEMC restored or created five wetlands and remediated more than 20 acres (8 hectares) of beach habitat at the site of a former oil field, which operated until the mid-1990s. The site is the largest remaining intact natural dune-lagoon complex in California and is registered as a National Natural Landmark. Threatened and endangered plants and animal species as well as many species of special concern call the dunes home. In three of the restored wetlands, the California red-legged frog, which is on the federal threatened- species list, was observed.

Updated: May 2009

Operational Excellence

Operational Excellence

Chevron strives to continually improve environmental performance.

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