Health, Safety & Environmental Board - SocialFunds.com

Health, Safety & Environmental BoardFluor’s HSE Board oversees HSE engineering and field activities globally.Brad DunkerDave HerringtonBob JarrettNancy KralikJim McCristalRon NunezDavid WebberJoe Yanek

Table of ContentsManagement CommitmentExecutive SummaryDelivering PerformanceDelivering SuccessDelivering ResourcesDelivering ProjectsDelivering AwarenessDelivering Sustainable DevelopmentDelivering for the FutureAppendices

Management CommitmentGlobal Stewardship – A Responsibility, Our PrivilegeA Message from Fluor Corporation’s Senior Management TeamAs builders of the world’s infrastructure, employees of FluorCorporation understand the importance of the work we do.We take great pride in delivering exceptional expertise andtechnical knowledge to meet our clients’ goals for theirmost complex and challenging industrial projects. Fluoremployees are committed to getting the job done, often indifficult locations and under challenging circumstances,and, as a result, Fluor is regarded as one of the world’smost admired engineering, procurement, construction, andmaintenance organizations.But our commitment goes beyond just focusing on howto design, build, or maintain world-class facilities. Fluorprovides services that are critical building blocks in creatingeconomic growth and raising living standards in bothindustrialized and developing economies. We conductbusiness in a way that meets the needs of our clients andour stakeholders today while also protecting, sustaining,and enhancing the human and natural resources neededtomorrow.Our strong commitment to global stewardship is multifacetedand is evidenced by our dedication to:• Providing a safe working environment for ouremployees and also the employees of our subcontractorsand suppliers through our Zero Incidents SM standard.Because of Fluor’s global culture of safety performance,we consistently achieve one of the best safety records inour industry and the industries we serve.• Addressing the environmental and health impact of ouroperations on Fluor employees, the general public, andnature by reducing waste, emissions and discharges andby using energy efficiently. Our proven Health, Safety& Environmental (HSE) Management System integratesthe highest international standards – including ISO14001 and OHSAS 18001– into each project phase andallows us to provide consistent performance.• Embracing the benefits of Fluor’s diverse globalworkforce and sustaining an inclusive culturethat encourages the rich variety of talents, skills,backgrounds and perspectives to thrive and that serves toenhance our work product.• Improving communities in which we work byvolunteering tens of thousands of hours to philanthropicprojects and donating millions of dollars to charitableorganizations over the past half century.• Leading the only global business-driven anti-corruptioninitiative, as part of Fluor’s involvement in the WorldEconomic Forum. This initiative combines the goals ofgood governance and economic development, with theend goal of leveling the playing field for participants ininternational commerce.Fluor raises the bar for global stewardship excellence everyyear, as we continue to lead our industry in the HSE arena,with an objective of exceeding the expectations of ourclients and the communities in which we work.Fluor is successful in protecting the human andenvironmental assets that are put in our care because of ourleadership, dedication, and perseverance. Commitmentbegins with Fluor’s senior management team and is sharedby our 40,000 employees worldwide. We are pleased toshare the efforts of our dedicated workforce with you in this2006 HSE Annual Report.Alan BoeckmannChairman and CEOGarry FlowersSenior VP, HSE, Security& Industrial Relations

Executive SummaryDelivering Today for a Better TomorrowDelivering Today for a Better Tomorrow, Fluor’s 2006Health, Safety and Environmental (HSE) AnnualReport, provides an overview of HSE activities andaccomplishments during the past year and discusses howthey support our future objectives and goals. To delivertoday for a better tomorrow, Fluor is focusing is onsustainable development and global responsibility, of whichHSE is a major component.Fluor delivers HSE performance every day, as evidenced byHSE metrics in the Delivering Performance section of thisAnnual Report. Fluor is proud to announce that we have hadanother year with no notices of violation for environmentalissues. Our performance in health and safety continues to beworld-class. With considerably more office and field hourscompared to 2005, Fluor employees and subcontractorsended 2006 with a lost workday case rate of 0.07, a restrictedworkday case incidence rate of 0.09, and a total recordablecase incidence rate of 0.42 per 200,000 hours worked.In our Supplier Diversity Program, Fluor achieved diversityspending of $495 million in 2006 or 15.4 percent of the $3.2billion spent with U.S.-based suppliers and contractors. OurSCORE! tool continued to be a major resource in achievingambitious supplier diversity goals.A number of interviews in the Annual Report highlight HSEperformance, activities, and expectations. Manuel Juncotalks about HSE in the Energy & Chemicals downstreamsector of the company, while Steve Dobbs discusses theintegration of sustainable development into our workprocesses. Larry Krushelnitzky, with Imperial Oil, and JimFlood, with ExxonMobil, share their perspectives on Fluor’sHSE performance on their projects and how Fluor and theircompanies work together as integrated teams.Our successful HSE performance is evidenced with thenumber and variety of external awards received and notedin the Delivering Success section of this Annual Report.That recognition extends from award-winning engineeringdesign, such as the Sir William Hudson Award / AustralianEngineering Excellence Award, to being named one of thesafest companies in America by Occupational Hazardsmagazine. Our performance is further recognized by thelarge number of external articles, papers, and presentationsthat our employees deliver on HSE-related topics, as wellas third-party HSE certifications, including AS 4801 – anAustralian occupational health and safety certification that isnew for Fluor.Notwithstanding the global competition for HSE resourcesthat existed in 2006, Fluor continued to provide high-qualitypersonnel to projects. Fluor’s HSE engineering and fieldpersonnel can be found in offices and site locations aroundthe world, as shown on the map in the Delivering HSEResources section of this Annual Report. These employeesreceive extensive HSE training, as illustrated by threeexamples given in this Report – a Process Hazards AnalysisFacilitation training course, an HSE Fundamentals trainingcourse for new hires, and an application of behavior-basedsafety in Indonesia. In addition, in 2006 Fluor enhancedthe knowledge tools that are available to Fluor employeesand subcontractors, including our HSE KnowledgeCommunity, procedures in the HSE Management System,and a new incident tracking system. Finally, use ofManaging Safety to Zero SM program increased, allowing amore proactive approach to handling safety at work sites.Notable HSE achievements are highlighted in the DeliveringProjects section of this Annual Report. The projectsspotlighted in that section range from a petrochemical plantin China that earned an outstanding safety record of 23million work hours without a lost time or recordable HSEincident, to remediation of a uranium-contaminated site inthe U.S.Fluor’s strong HSE culture has always placed a high valueon awareness, as noted in the Delivering HSE Awarenesssection of this Annual Report. During 2006, employeeshad a successful HSE Week – Education and Leadershipin Sustainable Development – and initiated a monthlynewsletter called HSE Matters, because it does. The HSEslogan contest winning entry was BEE Accountable, whilethe winner of the Children’s HSE Poster Contest washonored by having her poster incorporated into HSE Week.Sustainable Development permeates every aspect of HSEdelivery at Fluor, as described in the Delivering SustainableDevelopment section of this Annual Report. For example,through our College Relations program, Fluor developednew relationships with 13 universities and continued toprovide grants and scholarships to institutes of higherlearning and students across the globe. These programsprovide for future generations of educated workers whocan continue to better the communities in which we work,even after we are no longer there. In addition, communityactivism continued, with a number of company andemployee initiatives and activities.Finally, we look ahead to continual improvement in theDelivering for the Future section of this Annual Report.We expect to expand our behavior-based safety / humanperformance improvement processes, increase the use ofa skills inventory database, emphasize HSE engineeringactivities and processes, and expand initiatives in the areaof sustainable development, with the unveiling of a GlobalResponsibility web site.

Delivering PerformanceHealth and Safety PerformanceOverall, for office and field (self-perform andsubcontractors) Fluor ended the year with a restrictedworkday case incidence rate (DART-R) of 0.09, a lostworkday case rate (DART-L) of 0.07, and a total recordablecase incidence rate (TCIR) of 0.42 per 200,000 hoursworked.Office OperationsIn 2006, Fluor’s office exposure hours increased 24% fromapproximately 22 million hours in 2005 to approximately 27million hours. Also in 2006, Fluor showed improvementsin the health and safety performance rates for our officeoperations:2005 2006Total recordable case incidence rate 0.05 0.04Restricted workday case incidence rate 0.00 0.00Fluor offices experienced one lost workday case in 2006, forover 27 million worldwide exposure hours, resulting in a rateof 0.01 per 200,000 hours worked.Field Operations (self-perform + subcontractors)• Exposure hours for self-perform and subcontractorscombined increased 18 percent from approximately 240million hours in 2005 to approximately 280 million hoursin 2006.• With an 18 percent increase in work hours, fieldoperations ended 2006 with restricted (DART-R) andrecordable case (TRCIR) incidence rates of 0.10 and 0.46respectively.As work hours increased in global field operations so didthe number of lost workday cases (DART-L) from 16 in2005 to 33 in 2006, resulting in an overall lost workdaycase (DART-L) incidence rate of 0.08. This slight increasewas highlighted in Fluor’s Project Safety Alert Systemand has driven increased focus in specific areas of incidentprevention outlined by performance improvement initiativesin the HSE Management System.Incidence RatesLost Workday Cases(with days away)per 200,000 hours worked:.08 .06 .06 .05 .05 .07*2001 2002 2003 2004 2005 2006.87Total Recordable Casesper 200,000 hours worked.64.50.37.46 .42*2001 2002 2003 2004 2005 2006* Combined: Office + Field (Self-Perform & Subcontractor)

Delivering PerformanceExecutive InterviewManuel Junco, Group Executive,Energy & Chemicals, Discusses HSEManuel Junco is responsible forFluor’s Downstream businessline within the Energy &Chemicals Group.The increasing demand forenergy is one of the mostpressing global issues and hasresulted in a flurry of activityin the downstream Energy andChemicals sector. How has thisaffected Fluor’s business inthis sector?Junco: We’re currently in a period of unprecedented growthin the downstream Energy and Chemicals business. Thereare three main reasons for this. First, there’s significantinvestment in the segment after a 15 to 20-year period whenthere was virtually none. Second, the crude slate is changingto lower quality crude. Finally, we’re benefiting from thegrowing demand for cleaner fuel. All of these things play toour strengths.Is the nature of your business unique from an HSEperspective? If so, how?Junco: Our projects typically have two things in common.We generally find ourselves working in an operatingrefinery, and our work tends to be very labor intensive.Some of our mega projects can easily employ between 5,000and 6,000 craft personnel at peak. Those two factors createsome inherent risks. So we have to constantly focus onall aspects of HSE to avoid potentially harmful and costlyconsequences. Our clients today are extremely sensitive toHSE issues, and so are we.You’re the risk manager for Fluor’s E&C business. Whatdoes that role entail?Junco: My role as E&C risk manager is to make certainthat each office has its own risk representative and thatwe’re properly following our risk management proceduresacross all projects. We go through a rigorous process at thebeginning of every project to identify possible risks and howto mitigate them. These risks can run the gamut from projectexecution to HSE issues to geopolitical situations and arereviewed on a quarterly basis.11Is there a direct link between Fluor’s focus on health,safety, and the environment and the company’s ability tomanage risk? Can you explain?Junco: Yes. Absolutely there’s a link. Risk management andHSE go hand-in-hand.There can be serious financial and reputation consequencesif you don’t manage HSE risks appropriately. But I think itgoes beyond that. I really believe that the quality of Fluor’sproject execution is directly linked to the quality of our HSEprogram. Simply put, the better our focus on HSE, the betterthe project quality and vice versa.Is Fluor’s HSE Management System a differentiator foryour business? If so, how do you take advantage of it withcurrent and potential clients?Junco: A first-rate HSE management program is a givenin our business today. Our clients expect it. I believe we’reahead of the competition in many areas, but we have tocontinually strive to get perfect scores. The differentiator,I believe, is our passion. Our clients know that we arepassionate about HSE because they see us demonstrating itwith words and actions. For example, the fact that we startall of our meetings with an HSE Topic may sound trivial, butit’s actually very significant. It’s a constant reminder to ouremployees and our clients that we’re always thinking aboutHSE.The competitive environment in which Fluor operatesdrives continuous improvement to stay ahead of the pack.What can Fluor do to improve its HSE performance?Junco: I think the organization should strive to morerapidly embrace new HSE systems and improvements likeManaging Safety to Zero and the Change Impact AssessmentTool. We’re trying to accelerate change by improvingthe way we roll out our HSE programs. We’re helpingemployees deal with information overload by makingthe training more personal and interactive. The quickeremployees understand how HSE benefits a project and thebottom line, the better off we’ll be. Driving change is an areawhere we’re learning constantly.

Delivering PerformanceJunco Interview (continued)At Fluor, we define sustainable development as meetingthe needs of our clients by conducting our business in asocially, economically, and environmentally responsiblemanner to the benefit of current and future generations.What does this mean for your business, the people whowork in it, and your clients?Junco: The way I look at it, the best and only way toconduct business is to do what you say you will. We can’tjust say we’re serious about sustainable development. Wehave to act that way. When we do that, our clients developa level of trust and confidence in us that makes them wantto do business with us. If clients see us really focusing onsustainable development rather than just talking about it,we’ll keep getting work from them.As for our employees, let’s face it. We’re in a tight marketand it’s hard for some companies to attract, hire, and retainthe best people. Our employees recognize that Fluor isunique, and they’re proud to work for a company thatpractices what it preaches about sustainable development.Their level of trust and confidence in the company is veryhigh. Sustainable development is as much about the future asit is about today. Fluor has been in business for nearly 100years, and it’s our job to make certain we’re in business foranother 100 years.Part of sustainable development is building solidrelationships with the communities and community leadersin areas where we conduct business so we can understandtheir cultures and social, economic, and environmentalpriorities. Can you give an example of this communityinvolvement in your business?Junco: I’m very passionate about the importance ofcommunity involvement. Let me give you two examples. Werecently opened a new office in Kuwait. The office manager,JP Zacaropoulus, and his team have worked very closelywith a local university to support the engineering curriculum.They’re teaching courses in chemical engineering and gasprocessing, as well as courses on why engineering is a goodcareer choice. This is good for the community becausestudents are getting first-rate training, which will benefit thepeople of Kuwait and its economy for many years. It hasManuel Junco and Mentoring Circle - left to right: Gia McCoy, Reagin Parnell, Manuel Junco, Shirley Yelverton, Ranjit Nakka12

Delivering PerformanceJunco Interview (continued)also been good for Fluor because we’ve used the connectionto hire some of the university’s best engineers. This is a winwinrelationship which will be beneficial for a long time.South Africa is another example. We’re involved in trainingcenters there and have helped train tens of thousands of craftpersonnel. This is exciting because almost all of the trainersare black South Africans, who are passionate about whatthey are doing for their community and their country.In another example in South Africa, we’ve formed ajoint venture with a Durban based, disadvantaged-ownedcompany that has been extremely successful, and we’recurrently working with them on two refineries. South Africahas a desperate need to upgrade the economic base for itsdisadvantaged black citizens and what we are doing there isa great example of how Fluor can make a difference in thecommunities where we work.Fluor’s Managing Safety to Zero program proactivelyobserves and measures unsafe acts and unsafe conditionsso that their root causes can be determined. How has thismade a difference to the downstream E&C business?Junco: Getting to zero by managing leading indicatorsversus reacting to accidents is not necessarily a new concept.What is different about our Managing Safety to Zeroprogram is our software program that enables a site teamto analyze trends quickly and deal with them. It helps us toproactively address issues, rather than just reacting to them.Another innovative part of the program is our desire forcraft employees to tell us how we’re doing with HSE andto recommend changes. This is accomplished through ananonymous survey, and I can tell you that they don’t holdback. And it is really making a difference. Feedback I getfrom clients is that our Managing Safety to Zero program isunique. Whatever sets us apart from the competition is a realbenefit to our business.Fluor has dramatically increased its hiring in recentmonths to meet the needs of our clients. Does this presentchallenges from a health, safety, and environmentalperspective and how is Fluor dealing with thesechallenges?Junco: Sure. Training as many new people as we’verecently hired is a challenge. Over the last couple of years,we’ve almost doubled our training budgets to address thisissue. Some of these new employees have previous Fluorexperience, so they really only need a refresher on Fluor’sHSE culture. For the others, we’ve developed a detailedorientation program that describes Fluor’s HSE culture andexpectations and that provides extensive classroom trainingbefore they’re ever assigned to a project.I’d also like to mention something about our mentoringprogram. I think this program is an exceptional way to helpour employees as their careers evolve, but it’s also a greatway to emphasize our HSE culture to them.What is the biggest hurdle for HSE today, and what areyour thoughts on how to handle it?Junco: I believe our biggest hurdle is to instill in our newemployees the understanding that HSE is a core value forFluor and that for us to be successful, they need to do morethan just learn the HSE training we give them. They needto be passionate about implementing it on the job. I was ona jobsite yesterday where we are just starting constructionand where 70 percent of the employees are new to Fluor.The very first words I said to them were about Fluor’scommitment to HSE. I wanted them to understand and seemy passion for it.13

DeliveringSuccess14

Delivering HSE SuccessFluor has consistently delivered success by being an industryleader in HSE excellence. Our projects have achieved a varietyof awards, both internally and from external agencies. This past year more than 35 projects, located all over the world, wererecognized and rewarded for their outstanding HSE performance.Internally, Fluor provides awards to project and office teams to recognize them for successfully delivering projects free fromincidents. Fluor also receives recognition from outside our company for being able to deliver a high standard to governmentgroups, clients, and various regulatory agencies.External Awards and RecognitionIn 2006, Fluor was recognized for excellence in HSEperformance by several external organizations.Fluor Chairman and Chief Executive Officer AlanBoeckmann received the American Society of CivilEngineers’ Outstanding Projects and Leaders Awardfor Management. “Not only has Alan contributed to theadvancement of the civil engineering profession,” said ASCEPresident Dennis Martenson, “he has also taken an importantstand against corruption on a global scale, contributing to theimprovement of the world’s health, safety, and economy.”Fluor was awarded Australia’s top engineering honor atthe 2006 Australian Engineering Excellence Awards inCanberra. The Sir William Hudson Award was presentedfor ConocoPhillips’ Bayu-Undan Gas Recycle Project in theTimor Sea. In addition to the innovative design conceptsdelivered by Fluor, construction of the project met stringentenvironmental, technical, and safety standards.Fluor Limited in the United Kingdom earned the Order ofDistinction from the Royal Society for the Prevention ofAccidents (RoSPA). The Order of Distinction recognizes thecompany’s safety award record from 1992 through 2005.RoSPA also presented the Occupational Health and SafetyGOLD Award to CityLink Telecommunications Limited, aspecial-purpose company in which Fluor is a partner.Fluor was named one of “America’s Safest Companies”in 2006 by Occupational Hazards magazine. FluorCorporation and Fluor Hanford, a unit of Fluor working forthe U.S. Department of Energy in Richland, Washington,were jointly recognized as one of the 10 safest companies in2006.The Construction Users Round Table (CURT)International Safety Award was presented to Merck’s Rubixproject API Bulk Facility in Barceloneta, Puerto Rico. Theproject team of Fluor, Merck, and subcontractors workedover 900,000 work hours with zero recordable cases and zeroinjuries. According to the CURT web site, “The projectand its components were considered high risk, scheduledriven, and were completed by a single integrated team.The project safety culture established on this job was basedon the ‘zero incidents’ principle that initiated a culture shiftfrom ‘I have to work safely to…I want to work safely’.”In 2006, Fluor Canada was awarded the Work SafeAlberta 2005 Best Safety Performer for exceptionalperformance in workplace health and safety. This wasthe third consecutive year that Fluor has won this award.The award is presented by Work Safe Alberta, a uniquepartnership between industry, labor, and government.The Shell Canada President Safety Award (2005) waspresented to the Shell Ultra Low Sulphur Diesel (ULSD)project in 2006, with Fluor Canada as the contractor.The ULSD project consisted of two grassroots dieselhydrotreater units, one in Montreal, Quebec, and the otherat the Scotford site in Fort Saskatchewan, Alberta. Fluorwas the engineering contractor for the process units and theoverall managing contractor for the project at both sites.Houston Business Roundtable awarded Fluor theGold and Best in Category award for GeneralContractors-Large at the 19th Annual Safety ExcellenceAwards Banquet. After a client nomination and a safetypractices audit, the HBR selected the Fluor operations andmaintenance project for BP in Pasadena, Texas, as Best inCategory.Fluor China’s Superior Essex Magnet Wire Project waspresented with the Masterpiece Award for HSE bySuzhou City Construction Bureau. Refer to the DeliveringProjects section of this Annual Report for more details.The Engineering Construction Industry Association inLondon, United Kingdom, awarded Fluor Limited theirSafe Working Award in recognition of high health andsafety achievement during the period of January 1 toDecember 31, 2006.15

Delivering HSE SuccessMillion Plus Safe Work Hour Achievement AwardsThe following projects and offices had no lost workdaycases per million hours during 2006 and have thus earnedMillion Plus Safe Work Hour achievement awards.Internal Awards2006 was the twelfth year of Fluor’s Zero Incidents SMprogram, which recognizes and rewards outstanding HSEperformance. Based on the Construction Industry Instituterecommendations for achieving zero incidents, this programsuccessfully minimizes incidents by utilizing high-impactsafety excellence techniques.Awards are bestowed based on rigid criteria includingrecordable rates, lost time accident rates, environmentalor other regulatory citations, corporate HSE audits, andimplementation of zero incident techniques.ProjectsOfficesAward Recordable Rate Recordable RateH 0.57 - 0.75 0.15 - 0.20HH 0.38 - 0.56 0.10 - 0.14HHH 0.19 - 0.37 0.06 - 0.09HHHH 0.01 - 0.18 0.01 - 0.05HHHHH 0.00 0.00Additional Criteria:No lost time injuries or illnessesNo environmental citations or other regulatory agency citationsSuccessful completion of the award verification audit and/orcorporate HSE auditImplementation of the 12 high-impact zero incident techniquesA complete list of all Star award recipients is included inAppendix B.Office or Project Location Safe HoursAliso Viejo OfficeSakhalin-1London Underground/Connect ProjectCerro Verde PrimarySulfide ProjectIBM Raleigh ContractHanford ManagementContractKingston–NewEmbassy ComplexProjectsEntergy AllianceContractIBM RochesterContractProgress EnergyContractsAliso Viejo, California,USAChayvo, SakhalinIsland, Russia2006 Employee Silver Cross Awards20,000,00010,000,000London, England 5,000,000Arequipa, Peru 5,000,000Durham, NorthCarolina, USARichland,Washington, USA4,000,0003,000,000Kingston, Jamaica 2,000,000Metairie, Louisiana,USARochester, Minnesota,USANew Hill, NorthCarolina, USA2,000,0002,000,0002,000,000Exelon Contract Dallas, Texas, USA 1,000,000The highest recognition that thecompany can give an employeeis the Silver Cross Award. Thisesteemed award is reserved forindividuals who have performedlife-saving actions for eithercoworkers or members of thecommunity. In 2006, Fluor proudlyawarded 11 Silver Cross Awards toemployees who saved lives in a variety of situations, rangingfrom auto accidents to workplace heart attacks.16

Delivering HSE SuccessFluor’s Five-Star AwardsThe highest recognition, Fluor’s Five-Star Award, was presented to the following projects and offices for 2006.Project / Office Location Safe HoursIntegrated Isocyanates Project Caojing, Shanghai, China 23,000,000Corning Taichung Project Taichung, Taiwan 20,000,000Houston Operations Sugar Land, Texas, USA 12,000,000KOC Consultancy Services - KOC Effluent WaterDisposal PlantsAhmadi, Kuwait 10,000,000Camberley Office - Fluor Limited Camberley Campus Camberley, Surrey, England 6,000,000Caltrex Pacific Indonesia Project Duri, Indonesia 5,000,000Fluor/AMEC LLC - Nasiriyah Water Supply – Badaah Baghdad, Iraq 4,000,000Fluor/AMEC LLC – GRD/PCO Water Sec Iraq - Al Rashid Baghdad, Iraq 1,500,000Superior Essex Magnet Wire Project China 1,250,000BP Texas City Project Texas City, Texas, USA 1,000,000Escondida Sulfide Leach Project Antofagasta, Chile 1,000,000ILO Smelter Modernization Project San Isidro, Lima, Peru 1,000,000Progress Energy Contract Semora, North Carolina, USA 1,000,000Clarendon Alumina Work Clarendon, Jamaica, West Indies 750,000Progress Energy Contract New Hill, North Carolina, USA 750,000Texas Utilities - Martin Lake Project Dallas, Texas, USA 750,000Fluor Trinidad Operations Port of Spain, Trinidad & Tobago, West Indies 500,000Merck Project Cactus Raleigh, North Carolina, USA 500,000NRTS Project Birmingham, West Midlands, UK 500,000Luna Energy Project Deming, New Mexico, USA 500,000SBET EPZ Project Vlissingen, The Netherlands 500,000Texas Utilities – Monticello Project Dallas, Texas, USA 500,000BP Texas City Project - Team Pipestill 3B Texas City, Texas, USA 250,000Cognis Contract Cincinnati, Ohio, USA 250,000DuPont - Chambers Works Contract Deepwater, New Jersey, USA 250,000Exelon Contract Dallas, Texas, USA 250,000Fluor/AMEC LLC - USACE Life Support Services TaskOrder 17Baghdad, Iraq 250,000Fluor/AMEC LLC – Public Works Water North, BaladRoozBaghdad, Iraq 250,000Alabama Power Barry Steam Plant Contract Bucks, Alabama, USA 100,000DuPont Edge Moor Contract Edge Moor, Delaware, USA 100,000Pan Line D Contract Decatur, Alabama, USA 100,000RasGas (RL3) Project Doha, Qatar 100,000E. C. Gaston SCR/BDC Phase II Project Willsonville, Alabama, USA 100,000Sunoco Toledo Refinery Project Oregon, Ohio, USA 100,00017

Delivering HSE SuccessCertificationsISO 14001 Environmental Management SystemsCertificationsThe following Fluor entities achieved ISO 14001certification for environmental management systems:• GeneSYS Telecommunications, a Fluor-ledconsortium selected to perform the National RoadsTelecommunications Services Contract for the UKHighways Agency• Fluor Limited in the United Kingdom (recertification)• ICA Fluor in Mexico (recertification)• Del-Jen for its Laughlin Air Force Base Project(recertification)AS 4801 OHS Management CertificationFluor Australia achieved AS 4801 certification for the HSEManagement System for the Perth Office, InternationalPower Hazelwood, Fluor Rail Services – Dampier, andBluescope Steel Project - Port Kembla. The AS 4801 is theAustralian standard equivalent of an Occupational Health &Safety management system.OSHA Voluntary Protection Program (VPP)Fluor’s Progress Energy Asheville Operations &Maintenance Project received the North CarolinaDepartment of Labor’s “Building Star Award,” which isthe equivalent of the U.S. OSHA’s VPP certification. Thisproject is profiled in the Delivering Projects section of thisAnnual Report.Fluor’s Hanford Waste Stabilization & Disposition projectwas recognized by the U.S. Department of Energy for safetyperformance by achieving Star Status in the VPP. Excellentsafety performance was measured in part by low accidentand injury rates.AMECO achieved VPP certification in the OSHA VPP at itsBorger, Texas facility.The Netherlands HSE MS VCA/SCC CertificationFluor B.V. in the Netherlands achieved recertification of itsHSE Management System measured against the VCA/SCC(Safety Contractors Checklist).“Once again it is proven that Fluor is running an extremely well working HSE Management System. The total number ofaccidents and incidents, certainly looking to their frequency rate, is continuously low. Shown by examples, Fluor was ableto demonstrate a continual improvement in the optimization of their HSE program and efforts. New initiatives are takenand implemented on a regular basis. HSE is part of Fluor’s culture and visibly supported by all levels of their organization.”Lloyd’s Register Quality Assurance audit reportfor Fluor Netherlands operations, October 200618

19DeliveringResources

Delivering Resources“In order to provide significant value to our clients and shareholders, it is vital to recruit talentedindividuals to the company, develop them, and ultimately retain them. We use a number ofapproaches to accomplish these objectives. For example, our executives are encouraged to leadmentoring circles, which consist of employees who receive broad exposure to the company’sleaders in a team-based setting. Employees are urged to participate in our publication andpresentation program - P4 – for their personal enrichment and to share their knowledge. Wealso provide a significant amount of technical training and numerous programs designed toexpand perspectives on a range of topics. Highlighted in this section of the HSE Annual Reportare activities specific to HSE personnel and some of the HSE tools available to the company.”Jeff FaulkGroup Executive, Energy & ChemicalsHSE Strategic Office LocationsRecruiting and RetentionTo support the increase in project HSE needs around theglobe, the HSE Human Resources (HR) function workedclosely with HSE business line and regional leads, projectpersonnel, and global HR representatives to fully understandand quickly staff HSE positions. For external resources,Internet recruiting was used on an unprecedented scale tosupplement local job fairs and a strong referral environment.To better identify and draw on internal resources, the HSEorganization began using Fluor’s “Skills Inventory” (SI)database to capture not only education, certifications,experiences, and skill sets of employees, but also theirpreferences and availability for assignments. This allowedmanagement to more quickly match employees to positions.According to Janet True, Director of HSE HR, “We’reexcited about what the SI can do to help projects andemployees equally in achieving their goals.”Throughout 2006, our HSE Group supported a numberof stand-alone projects as well as ongoing operationalactivities. We staffed a wide range of HSE positionsincluding engineers, department managers, site managers,and construction and operations personnel.Operating from strategic office locations in the UnitedStates, Canada, the United Kingdom, and The Netherlands,we supported project sites and client office locations inNorth America, Europe, Asia, Africa, the Middle East, andAustralia.20

Delivering ResourcesPeople DevelopmentMike Martin, HSE Director provides training on environmental regulatory complianceFluor is committed to delivering a competent workforcethat demonstrates the ability to apply the knowledge, skills,and personal attributes required to do their jobs properly.A 2006 highlight was the successful implementation ofthe HSE Functional Development Forum (FDF) program.This program identifies and develops individuals who havethe desire and capability to become recognized experts inHSE. FDF members represent the HSE function acrossthe globe and across business lines. Members sponsoredapproximately two dozen professionals identified ashaving the potential to become functional leaders, and theypersonally mentored these outstanding professionals. “Thisis the first time that we’ve pulled together design and fieldpersonnel into a shared program, furthering the integrationof the HSE resources approach”, stated Nancy Kralik, Chair,HSE FDF.TrainingFluor recognizes that HSE training is essential forimproving the competencies not only of HSE personnel butall employees. To achieve this end, a variety of trainingprograms and formats, from real-time on-line courses toinstructor-led seminars, are available throughout the year.What follows are three examples of training delivered in2006.Process Hazards Analysis Facilitator Training Class,Houston, Texas , USAIn July 2006, Corporate HSE presented a week-long courseto certify individuals in Process Hazards Analysis (PHA)Facilitation. Participants came from Fluor’s Mexico City,Gliwice, Camberley, New Delhi, Richland, Greenville,Shanghai, Calgary, and Houston offices. A client alsoparticipated.The course was instructed by PHA experts Mark Dejmek,Fluor’s technical functional expert in Quantitative RiskAssessment (QRA) methodology, and Gerald Livingston,Senior HSE Engineer.The class was structured so that equal time was spent inlectures and in realistic workshops. By the end of the class,the following critical facilitation elements had been covered:•••••••Preparing for the PHAScoping the PHACollecting informationSelecting the teamLeading a meetingDocumenting results using PHA-Works softwareProducing a PHA report21

Delivering ResourcesA variety of hazard analysis techniques were evaluated toallow application of different analytical methods to anyprocess system in industries such as chemical, petroleum,pulp and paper, explosives, mining, iron and steel,pharmaceuticals, and consumer products. At the end of theclass each participant earned a certificate and 2.0 ContinuingEducation Credits credits.HSE Fundamentals Training, Greenville, S. Carolina, USATo support newly hired HSE professionals, an intensiveHSE fundamentals program was developed and successfullyimplemented in November 2006. The course provided astrong grounding in Fluor’s HSE Management System sonew recruits are well versed in Fluor practices and culture.Behavior-Based Safety (BBS),Duri, IndonesiaAlthough the core elements of BBS have always been partof our HSE Management System, a more focused approachwas implemented in early 2006 as a pilot program on theChevron TF-FPM project in Indonesia. The aim of the BBSprogram is to simultaneously increase safe work practicesat the individual level while reducing at-risk behaviors andstrengthening employee commitment to an HSE culture.Seventeen participants came from Ireland, Mexico, China,Jamaica, South Africa, the United Kingdom, Puerto Ricoand the United States. Trainers for the course were HSEManagers and Trainers Frank Aleman, Althea McGuigan,and Jessica Bohart. Guest experts in OSHA, environmentalawareness, quality, and worker compensation also spoke atthe training sessions.Course objectives included developing a working knowledgeof key practices and procedures of Fluor’s Operating SystemRequirements (OSR) and HSE Management System. Avariety of topics and activities were included at the HSEprofessional level to illustrate important course learning aswell as to build participant engagement and contribution.One of the participants, Fearghal Cunningham from FluorIreland, said that the class “…re-emphasized a commitmentto total HSE, at work and at home…”First BBS training class in Duri.For this project, nine categories were identified whereat-risk behaviors were observed in areas such as vehicles,pre-job planning, and ergonomics. A baseline was thenestablished that reflected the number of at-risk behaviorsidentified for each category. Specific training and guidancewere provided to employees to enable them to implement awork observation process. This mutual learning opportunityreinforced potential consequences of at-risk behaviorsand, at the same time, shared safe work choices. Datawere collected that provided an opportunity to identifyand follow-up on areas where work behaviors could besystematically targeted to improve HSE performance.By the end of the year, results from the Chevron oil drillingsite showed a five percent safe work behavior increase overthe baseline with the program firmly established as a coreHSE initiative. The BBB program has delivered benefits ofincreased safe work behavior, higher levels of awareness,and the engagement and involvement by personnel across alllevels of the project team.Participants work with the on-line HSE Management System to provideresponses for HSE case scenarios.22

Delivering ResourcesKnowledge Online HSE CommunityFluor’s Knowledge OnLine (KOL) is a vital aspect ofour daily business that provides our personnel worldwidewith the ability to access and share information quicklyand efficiently. In the past six years, KOL has grownexponentially and has added great value to our employeesand clients.As with the 41 other department and business lineKnowledge Communities, the HSE community is awarehouse for our department practices, procedures, forms,news, active discussions, lessons learned, HSE Topics,training, presentations HSE Alerts, and much more. It is anexcellent resource of experts from a variety of fields whoare able to assist with queries and review documentationsubmitted for posting online.Will Rowan-Robinson,HSE Knowledge ManagerIn 2006, Sara Eschborn passedthe role of Knowledge Managerto Will Rowan-Robinson. Will,based in Fluor’s Perth, Australiaoffice, brings to the community anumber of years experience in fieldand technical HSE Management.His education and experiencein worksite health promotion,injury management, and workercompensation management giveWill valuable skills in the HSE field.HSE Management SystemFluor’s HSE Management System (MS) is the framework forcontinual improvement of our HSE performance and is usedby Fluor projects to address all aspects of HSE, beginningwith the philosophy and commitment detailed in the Policyand Principles and cascading to Practices, Plans, Procedures,and Forms. Fluor’s corporate HSE culture, supported bythe HSE Management System, is a fundamental tool forachieving profitability.Fluor’s executive managers are responsible forimplementing the HSE MS on projects worldwide. Fluoremployees, contractors, and agents are required to complywith the system as outlined in the supporting HSE MSdocumentation. Compliance with the Fluor HSE MSensures a high level of operational excellence in Fluor’sglobal activities.Some of the enhancements made to the HSE MS during2006 included:• Establishment of an interactive forum to collect andtrack comments from Fluor employee’s worldwide.This evaluation and feedback loop proved to be ofconsiderable value. As a result of this interactive forum,many of the policies and procedures were updated tobetter align them with current standards and legislation.The most current HSE practices and procedures arelocated in the KOL HSE Community.Will believes that “Knowledge management is a vitalcomponent of the HSE culture because knowledge sharingand communication are essential to success, whether it bewith a co-worker, contractor, client, or supervisor.”“When you work with documentation that is necessary to maintain compliance, youneed to be able to seek timely solutions and develop actions. In terms of schedule,KOL has helped us reduce the timeframe on issuing plans and actions from anaverage of 30 days to 15 days. This translates to timely compliance with company,government, and client requirements. In the end, we help Fluor and our clients tobe in compliance, and we provide solutions in a timely manner”.Brendaly De LeónHealth & Safety Coordinatoor23

Delivering Resources• Incorporation of the U.S. Occupational Safety & HealthAdministration’s (OSHA’s) Days Away, Restrictedor Transferred from the job (DART) terminology intoapplicable procedures being used to calculate safetystatistics. Although the definitions have been used byFluor for several years, the terminology was not adopteduntil 2006.• Development of a new procedure to address requirementsfor personnel using charter aircraft.• A comprehensive rewrite of the Heavy EquipmentIncident Prevention procedure to put focus on employeebehavior around mobile construction equipment.“The importance of HSE management systems has greatlyincreased over the last 10 years and even more so over the lastfive, so most companies have acted accordingly, resultingin increased time and resources being put into quality HSEsystems. One area, in my experience, that differentiatesand places Fluor above the rest is our total commitmentand dedication to our management system and to our ZeroIncidents SM recognition and reward program. Anotheraspect that also puts Fluor in front of the pack is our ability tocommunicate matters succinctly,deliberately and efficiently.It is well known that whenyou join Fluor you are alsoembedded into its culture –a culture that places health,safety, and environment atthe forefront of all activities.”Jeff DalgleishFluor HSE AdvisorManaging Safety to Zero SMConsiderably more Fluor projects implemented ManagingSafety to Zero SM (MS20) in 2006. Using the proactivecomponents of MS20 tomeasure safety processes andtrack leading indicators andtrends have allowed Fluorto identify early when HSEintervention is desirable orrequired. With the increase in the number of projects andpersonnel globally, a tool such as MS20 is particularlyimportant. The feedback captured in the Safety PerceptionSurveys has been valuable in enhancing the program, andthe Safety Audit Performance System and Safety LeadingIndicator Metrics have provided processes to reduceincidents.During 2006, Fluor developedthe HSE Global InformationManagement System (GIMS),FLUOR HSEusing the framework of the HSEGIMS Management System. GIMSis a consolidated database tostandardize global activities anddata collection. When fully implemented, this new webbasedsoftware will be accessible worldwide, allowing HSEpersonnel to provide accurate and timely data for projects.GlobalInformation Management SystemGIMS will enable:• Consolidated data entry and applications on a webplatform• Automated real-time reporting that is globally accessibleat any hour• A repository for all HSE information tracking• Accessibility to a number of functions from anyintegrated application simultaneously, in one commonarea• Reduction in labor and time spent on incident andstatistical information gathering and reportingThe modules included in the first implementation phase,with a roll-out at the end of the first quarter of 2007, areincident tracking, claims management, and substance abuse.24

DeliveringProjects25

Delivering Projects“Clients have HSE expectations and requirements, and our employees and subcontractorsrespond by delivering Fluor’s integrated HSE approach and superior HSE performance on aglobal basis. The project profiles included in this section of the Annual Report exemplify thetremendous breadth of HSE knowledge and experience within the company.”David SeatonChair, Fluor Corporate Sales BoardEnergy & ChemicalsCarson Hydrogen Power ProjectBP Alternative Energy and Edison Mission EnergyCarson, California, USA“Stakeholders directly involved with projects can be confidentthat project personnel will look after them.Projects are completed without harmto people or property or communities.It’s important to note that Fluor’sgoal is to have a positive impact onproject stakeholders in the surroundingcommunities, whether in an urban area orin a remote location.”Marilyn WoodFluor Mining & Minerals ManagementFluor is assisting BP and Edison Mission in designing afirst-of-its-kind, petroleum coke-based, commercial-scalepower plant in the City of Carson, California. The CarsonHydrogen Power Project will gasify by-product petroleumcoke from local refineries to produce hydrogen that isexpected, in turn, to generate up to 500 MW of electricityfor the state grid. The project is being designed to meet orexceed the very stringent Southern California environmentalrequirements. The CHP is a key component of BP’s globalcarbon capture strategy and its design includes the followingsignificant HSE and sustainability features:• About 90 percent of the carbon in the feedstock isexpected to be recovered in the process as carbondioxide (CO 2) and then pipelined to local oil fields forpermanent storage with enhanced oil recovery benefits.A projected 4 million tons of CO 2emissions per year willbe prevented.• The CHP will utilize reclaimed city wastewater from aregional treatment plant in order to conserve local freshwater supplies.• The CHP is estimated to have the lowest CO 2emissionrate in the world for an integrated gasification combinedcycle power plant.26

Delivering ProjectsEnergy & ChemicalsIntegrated Isocyanates Project (IIP)Shanghai Isocyanates JVCaojing, Shanghai, People’s Republic of ChinaFluor served as the managing partner of the projectexecution consortium, which provided engineering,procurement, construction management, and precommissioningof this world-scale, $1 billion chemicalcomplex in Caojing, Shanghai. The owner is a jointventure composed of BASF, Huntsman, Shanghai ChlorAlkali Chemical Company (SCAC), Sinopec Guo QiaoPetrochemical Company Limited, and Shanghai HuaYi (Group) Company. Fluor was also responsible forHSE engineering (safety and environmental) and HSEmanagement of the construction site. Notable projectachievements include:• 23 million construction work hours without a lost time orrecordable HSE incident•27 million construction work hours with one recordableincident•The highest construction project HSE audit score (1.25)ever awarded by BASF and Huntsman using BASF auditscore system (1.0 being excellent and 5.0 being poor)•More than 30 million work hours for the total projectwith only three recordable incidents and no fatalities“An outstanding safety performance on IIP wasmade possible due to implementation of Fluor’s HSEManagement System, safety commitment from top tobottom from the owners and Team IIP, and excellentleadership by the Site Management team. Understandingthe owners’ business objectives and Chinese culture, alongwith an intense emphasis on all aspects of HSE on adaily basis, made it possible to construct this world-classchemical facility with an outstanding safety record.”Ken ChoudharyExecutive Project Director, IIP“The safety performance on this project was not onlyworld-class, but set new world records and showedeveryone what is possible in China given the rightleadership.”Bora IpekSenior Project ManagerShanghai BASF Polyurethane Company27

Delivering ProjectsEnergy & ChemicalsPoinsettia Offshore Gas Platform ProjectBG InternationalTrinidad and TobagoThe Poinsettia Project is an unmanned gas productionplatform located in 530 feet of water in the Caribbean Seaoff the northeast coast of Trinidad. The Poinsettia facilityincludes systems for produced water removal, condensaterecovery, well testing, and gas and condensate metering.A new 20-kilometer multiphase pipeline will transport thePoinsettia gas, condensate, and residual water to an existingplatform. “Development of the Safety Case was a primaryFluor HSE activity during front-end engineering design(FEED). It was critical to the future successful operationof the platform,” according to Eric Thorwaldson, ProjectManager.HSE project highlights include the following items:• Working with the project team in Port of Spain, Trinidad,Houston-based HSE engineers prepared the PoinsettiaSafety Case using a unique modular approach. Insteadof preparing and completing the Safety Case duringdetailed design, it was initiated during the FEED phase,thereby allowing design decisions to be made earlier.The FEED Safety Case outlined the path for mitigationof any risks that may arise in subsequent stages andprovided qualitative assessment applying the As Low AsReasonably Practicable (ALARP) principle.• The FEED Safety Case consisted of the following studiesand assessments: ship collision; helicopter risk; droppedobjects; human factors; pipeline/riser sudden disconnectrisk; fire analysis; escape, evacuation, and rescue;temporary refuge; emergency system survivability;fire, explosion, and gas dispersion; and reliability,availability, and maintainability of equipment andsystems.• In addition to preparing design documents, projectemployees participated in numerous communityactivities, including supplying 250 backpacks to childrenin rural areas and providing a large family in a remotearea with clothes, food, appliances, and toys at Christmastime. The project office also donated computers to anorphanage in Port of Spain.28

Delivering ProjectsClient InterviewLarry Krushelnitzky,Imperial Oil Project ManagerImperial Oil has partnered with Fluor on two major refineryprojects in Edmonton, Alberta, Canada since 2001, mostrecently for the Strathcona ULSD Project. Both projectsinvolved bringing sulfur levels in fuels refined at the siteinto regulatory compliance. Larry Krushelnitzky was projectmanager for Imperial Oil on both projects. He shares histhoughts on some of the health, safety, and environmentalaspects of the projects and how Fluor and Imperial Oilworked together to address them.The average temperature in Edmonton, Alberta, Canadais –15°C in the winter, with extremes in the –50°C range.What steps did Imperial and Fluor take on the StrathconaProject to address the impact of extremely cold weather onworker health and safety?Krushelnitzky: Clearly, weather is a consideration here.For example, we had a predetermined shutdown strategy.Our people knew not to report to work any day the windchill was minus 30 or below. That happened a few times.For the most part, however, we had to find ways to get thework done in the face of extreme weather. That started withfundamentals like holding safety meetings to ensure thateveryone understood frostbite symptoms and the importanceof wearing proper clothing such as parkas, coveralls, andgloves – all of which we provided to the workforce. We alsoscheduled more frequent work breaks when our people wereexposed to extreme elements and covered work areas intarps and used heaters to keep them reasonably comfortable.Snow removal was also critical. We brought our snowremoval crews in early to clear the parking lot and walkwaysso that our people would not have to tramp through thesnow. We also applied a gritty paint to platforms and decksso people walking there would not slip when the steel gotvery cold and slippery.How important is health, safety, and environmentalperformance in Imperial Oil’s selection of contractorsfor a project? What criteria do you use in selecting acontractor and how closely do you scrutinize its past HSEperformance?Krushelnitzky: Health, safety, and environmentalperformance is our most important criterion for selectingcontractors. When we look at an EPC contractor, we want tomake sure that we are aligned on HSE values and beliefs.When Fluor was awarded its first contract at the StrathconaRefinery – for the PRISM project, we had a two-dayworkshop with senior managers from Fluor and ImperialOil to review and reinforce beliefs and values for managingsafety. The results speak for themselves – 700,000 work hourswith no lost time injuries.On the ULSD Project, almost 40 percent of the Fluorconstruction management staff had been involved withPRISM. We were comfortable with their beliefs and valuesaround safety, which enabled us to spend energy on lessonslearned and to work to zero injuries.We brought the Fluor construction manager and constructionsafety manager into the home office at the beginning ofthe project and focused on developing an upgraded safetyprogram. Constructability and safety in design were keyfocus areas. We had strict safety criteria for contractors tomeet before they were allowed to bid on a job for the project.Subcontractor supervisors were screened for safety resultsand experience on previous jobs. Any contractor with morethan 30 people on the job was required to have a dedicatedsafety advisor and we used internal benchmarks and leadingindicators to monitor performance and audit safety. Thisproject was also completed with no lost time injuries.The Strathcona Project is in close proximity to privateresidences. What steps are taken to deal with issues such asnoise? How do Strathcona Project managers reach out tothe local community?Krushelnitzky: We invest a lot of energy intocommunicating with our neighbors, because we are an urbanrefinery. We are bordered by an industrial area to the east,a city park to the west, and just beyond the river on ournorthern boundary is a residential area.29

Delivering ProjectsKrushelnitzky Interview (continued)Strathcona ULSD Project Aerial ViewThe communications is two-way – not only do we reachout to the community, but we also have ways for thecommunity to reach out to us. We are proactive in advisingour neighbors through mail of significant events such asturnarounds and the startup of a new process unit. We alsohave a phone line for neighbors to call us if they have anyconcerns.For large projects, there is a permit process involvingenvironmental regulators. As part of that process, we holda community open house to explain what the project is allabout before we begin the work.Engineering and construction projects sometimesinvolve environmental issues. Were there environmentalconsiderations for the Strathcona Project and, if so, howwere they addressed?Krushelnitzky: The projects here have beenenvironmentally driven – helping the refinery meetgovernment regulations on sulfur levels in fuel. Ourdesign specifications for equipment include environmentalconsiderations such as low noise equipment and low NOXburners on furnaces.The Strathcona Project required lifting some extremelyheavy equipment. Can you explain what was lifted and thecomplexity involved? What are some of the safety issuesinvolved in lifting heavy equipment, such as vessels andreactors, and what techniques are employed to deal withthem?Krushelnitzky: The largest lifts were two reactors each 14feet in diameter, 110 feet high, weighing 365 tons apiece.That required precise planning, which was basically led byFluor, and we relied on their engineering experience andprocedures.For example, we had to excavate one of the roads to get onereactor under existing piping. Where do we place the cranesso that roads aren’t blocked in the event we have to respondto an emergency? Our big concern was lifting one reactorinto an operating unit. We shut the unit down while makingthe lift.While the two reactor lifts were the most complicated, wealso had hundreds of other, smaller lifts. All of the lifts werecompleted without incident.30

Delivering ProjectsIndustrial & InfrastructureSuperior Essex Magnet Wire (Suzhou) ProjectEssex Magnet Wire (Suzhou) Ltd.SND Suzhou City, Jiangsu Province, P.R. ChinaFluor China’s Superior Essex Magnet Wire Project waspresented with the Masterpiece Award on HSE by SuzhouCity Construction Bureau and received a Five-Star awardfrom Fluor’s Industrial & Infrastructure group. The EPCproject for a $30 million magnet wire manufacturing facilitywas completed on November 30, 2006. The project achieveda total of 1,390,000 safe work hours with zero recordableincidents.• Fluor China met local HSE challenges by enhancingtraining and holding daily HSE demonstrations on site toinform workers how HSE practices could improve theirefficiency by helping them avoid injury.• The local Suzhou authorities, including the ConstructionBureau, Quality Inspection Bureau, and Safety InspectionBureau visited the site on numerous occasions and usedFluor’s project as a live case study to other enterprises onhow to construct a project in a safe working environment.• Weekly toolbox meetings were used to educate workerson HSE requirements and on using the correct proceduresto meet those requirements. This ultimately helpedreduce the total project cost and improved the livelihoodof the employees and their families.• HSE Manager Gordon Zhao, with support from ProjectDirector Russell Ayres, Project Manager Jeff Zhao, andConstruction Manager Jimmy Yan, managed an HSEincentive program that included numerous value-addedactivities.“Your site is one of the cleanest, most well organized,and safest construction sites in China, and definitelyan excellent model in our area.”Mr. Wei Hua,Head of the Construction BureauEach of these incentives provided rewards for excellentsafety performance and served as a reminder of theimportance of a strong safety culture.Harold Boman, Vice President of Manufacturing & LifeSciences Operations, commented that “the SuperiorEssex Project implemented Fluor’s HSE best practicesfor successful execution.” Ivor Harrington, Senior VicePresident and Business Line Lead, Manufacturing & LifeSciences, added, “This project is a good example of Fluor’ssafety culture rising to the occasion to meet and overcomechallenges.”31

Delivering ProjectsIndustrial & InfrastructureMerck VMF-101 ProjectMerck & Co., Inc.Durham, North Carolina, USAFluor was one of five contractors on this project withresponsibility for Construction Management and SiteDevelopment for a Vaccine Manufacturing Facility.The completion of the manufacturing building wasperformed by careful reassembly of 114 high-tech modularfacilities by Pharmadule. The Pharmadule modules wereshipped from Sweden. The assembly craft who led the siteassembly were from Sweden as well. It was imperative thatall work followed the same project-specific HSE program.Pharmadule fully agreed and supported this approach.Considering these circumstances, Fluor took the followingactions.• Prior to commencement of the project, Fluor placed aHSE specialist in Pharmadule’s facility in Sweden totrain the project workers on the project-specific HSEprocedures and applicable OSHA requirements. Havingthe Fluor specialist proved invaluable in preparing theSwedish team to be ready for orientation and allowedthem to be able to begin work at the site in NorthCarolina promptly upon arrival.• A dedicated Fluor HSE specialist was providedthroughout the project to the Pharmadule workers toenable continuous HSE training and control for theduration of their work on site. In addition to this extrasupport for Pharmadule work, Fluor also provided HSEorientations, training, and field HSE control for Merck’sequipment vendors that were also working on site.• Fluor performed extensive site development clearing andgrading the land and installing underground utilities. Theconstruction and commissioning of the 140,000 squarefeetVaccine Manufacturing Facility was completedwithout any recordable incidents and has surpassed allcorporate and client HSE Performance Goals.32

Delivering ProjectsIndustrial & Infrastructure33Oyu Tolgoi ProjectIvanhoe Mines Mongolia IncorporatedSouth Gobi Desert, MongoliaClose to the Chinese border in Mongolia, Ivanhoe isinstalling facilities and infrastructure to mine the world’slargest copper and gold reserves. Fluor is providingprogram management design, procurement, and constructionmanagement. HSE design and field work are included in thescope, as is site security.Highlights of the project include the following items.• An aggressive process design study resulted inthe development of a Winter Safety Plan, JourneyManagement Plan, and Airport Safety/SecurityProcedure. These plans and procedures allowed safewinter travel in a harsh, sub-arctic environment andenhanced personal, physical, and communicationssecurity.• HSE & Security (HSES) requirements were defined froma comprehensive risk assessment, leading and trailingindicators, and contract scope deliverables. They formedthe basis for developing a Safety Leadership Programto instill management ownership and accountability forHSES.• Project Socio-Economic deliverables led to thedevelopment and institution of a comprehensive HSESIntern and Leadership Development Program. Itsobjective is to provide dual career paths for Mongoliannationals, while also instilling basic leadership andmanagement techniques so that the local projectmanagement team can allocate the efficient andeconomical use of resources to reach mining objectiveswithout incident.• Innovative risk assessment combined with leading andtrailing indicators resulted in an effective and enhancedHSES craft training program that greatly reducedrecordable incidence rates.• The HSE Management System implementation strategyprompted development of a Supervisor’s and SafetyProfessional’s Manual that provides a snapshot format ofa wide range of HSES information to enhance behavioralsafety performance and consistent compliance.• Work is underway to facilitate an integrated Fluor andIvanhoe Project Management Team consisting of diversecultural backgrounds by utilizing cross-cultural andcompany awareness to provide a consistent application ofHSES management.

Delivering ProjectsGovernmentFEMA Hurricane Katrina/Rita Disaster ResponseFederal Emergency Management Agency (FEMA)Louisiana and Texas, USAWhen Hurricane Katrina made landfall on the Gulf Coast ofthe United States in late August 2005, it caused destructionand flooding. Under contract with FEMA, Fluor initiatedthe Individual Assistance project. Shortly thereafter,Hurricane Rita swept into the area, causing additionaldevastation. Through most of 2006, Fluor employeesworked in Louisiana and Texas to provide shelter to stormvictims and return normalcy to the communities in need.Fluor delivered and provided maintenance for more than54,000 travel trailers that serve as homes.While working in Louisiana and Texas on this project, Fluor:• Achieved more than 9 million safe work hours, whiledriving more than 68 million miles, which is roughlyequivalent to driving around the earth’s equator 2,730times• Performed work across more than 39,000 square miles ofland devastated by two major hurricanes• Maintained an excellent safe work hours record despiterapidly mobilizing a workforce of 4,500 employees, with93 percent of workers being local or new hires largelyunfamiliar with Fluor HSE policies• Successfully placed temporary housing units onprivate residences (accounting for approximately 73%of the project scope), despite approximately 40,000different work sites with compromised or nonexistentinfrastructure• Established a Director’s Safety Review Committeeled by the Project Director and other key leadershipto meet weekly and continuously monitor Fluor andsubcontractor HSE compliance“As the FEMA IA contract closes, we’ve once again shownthat Fluor can complete the most complex projects in asafe way.”James Cartner,Federal Projects Leader34

Delivering ProjectsGovernmentFernald Environmental Management ProjectDepartment of Energy (DOE)Fernald site, Southwestern Ohio, USAIn the early 1950s, Fernald produced 500 million pounds ofuranium metal products, 900,000 pounds of thorium oxide,bulk depleted uranium metal and depleted uranium partsprimarily for the American military. Wastes included acids,solvents, and oils; uranium shavings, dusts, particulates,and radon gas; contaminated equipment and buildings;225 acres of contaminated groundwater; 2.6 million cubicyards of contaminated soil; 31 million pounds of uraniumproduct; and more than 15,000 tons (14,000 cubic yards)of rich uranium ore called pitchblende. Fluor managed andexecuted Fernald’s cleanup and, in the process:• Restored approximately 975 acres of the 1,060-acreFernald site to undeveloped parkland (remainderdedicated to on-site disposal facility)• Remediated the waste pits, contaminated soil, aquifer,and surface• Demolished the buildings and silos• Built a wastewater treatment facility to remove uraniumfrom groundwater“Working together we took Fernald from weapons towetlands – we’ve torn down and dug up everything builtor buried at the site…early, safely, and under budget.”Johnny Reising,DOE’s Director for the Fernald Closure Project, and ConMurphy, Fluor Fernald’s Closure Project Director“Nobody thought Fernald could ever be cleaned up…this quickly. DOE, Fluor, regulators and the public hada common goal – and that’s why we succeeded. Thiscleanup generated a lot of valuable lessons-learned thatshould be applied elsewhere.”Lisa Crawford,President of the Fernald Residents for EnvironmentalSafety and Health• With DOE, established the Fernald Envoy Program – agroup of employees dedicated to creating dialogue withlocal community groups• Worked with the Fernald Citizens Task Force (FernaldCitizens Advisory Board) and received award for theproject office of Core Values Awards by InternationalAssociation for Public Participation• Became the first U.S. “closure site” to earn Star Status inDOE’s Voluntary Protection Program• Worked more than 7 million hours and 10 years atFernald without a lost day from work due to accident• Deployed a staff of experts in ecology, geology, forestry,and other natural resource fields to create over 80 acresof wetlands and 60 acres of open ponds and plant blendof plants native to the areaImplosion of Fernald’s historical Sampling PlantThe Fernald site today, restored with wetlands and native plant species.35

Delivering ProjectsGovernmentDemolition of Hanford’s Plutonium IncineratorDepartment of Energy (DOE)Hanford site, Washington, USAFrom 1949 to 1990, the Plutonium Finishing Plant (PFP)at Hanford produced two-thirds of the nation’s plutoniumfor national defense. From 1963-1972, the PlutoniumIncinerator (known as 232-Z) at PFP burned combustiblematerial contaminated with plutonium, so that plutoniumcould be recovered from the ashes. The 232-Z Incineratorwas very contaminated with an extremely dangerous ashcontaining plutonium. In fact, one area of the building – thescrubber cell – had levels of airborne-contamination fourtimes higher than those found in radioactively contaminatedbuildings previously demolished in the United States. Fluoris managing and executing the clean-up of the plutoniumincinerator, as well as other facilities at the Hanford site.“Workers planning and executing the work as dedicatedteams made this project a success,” said Ron Gallagher,President & CEO, Fluor Hanford. “They applied effectivework-arounds to address difficult and changing workconditions and adjusted work schedules to accommodate theextremes of weather we experience here in the high desert.This kind of discipline and performance is good for Hanford,the client, the regulators, and the taxpayers...and the projectmanagementprofession.”At the Hanford site, Fluor has:• Cleaned piping and processing equipment to reduce theamount of residual plutonium to less than one gram• Adopted an open-air demolition technique that usedair modeling to establish boundaries for controlling thespread of contamination (Before demolition, fixativeswere applied to flat surfaces to keep contamination inplace.; In addition, fogging and misting systems wereused to control the spread of airborne contamination)• Completed demolition and removed debris nine weeksahead of schedule• Filled 42 large containers equivalent to three, 24-footmoving vans with demolition debris• Sustained no recordable injuries or injuries that resultedin a day away from work during deactivation anddemolition phases of the project36

Client InterviewJim Flood, Sakhalin-1 Project ManagerFluor has provided detailed design engineering,procurement, and construction services to Exxon NeftegasLimited (ENL) for the Sakhalin-1 Project. The servicesrelate to an Onshore Processing Facility (OPF) on SakhalinIsland for oil and gas extracted from below the Sea ofOkhotsk. In this interview, Jim Flood, Sakhalin-1 ProjectManager, shares Exxon Neftegas Limited’s perspective onthe role that Fluor’s HSE function played in the successfulexecution of this high-profile project and describes howthe two companies partnered to deal with numerous safety,health, and environmental challenges.Can you describe the role of Fluor HSE in the Sakhalin-1Project and how the Fluor and ENL HSE functions wereintegrated to maximize their impact on the project?Flood: ENL places the utmost importance on workforcesafety and health as well as the environment. We havedemonstrated through our actions time and again that we willnot place other business objectives ahead of safety. Safetyexcellence can only be achieved when all parties maintain ashared safety vision and strong working partnership. Here atENL, we believe that it’s all about people. Fluor shares thesame safety vision and has been fully engaged in the kind ofpartnership required to achieve excellent safety results. Fluorput its best people in decision-making positions and showeda willingness to not only act on ENL safety initiatives, butalso to lead and innovate.The Sakhalin-1 Project is a great example of confrontingenvironmental issues in remote areas. How did the ENL/Fluor team and the Russian regulatory authorities interactto achieve the ultimate success of the project from an HSEperspective?Flood: Fluor was on the front line of our work assistingENL to ensure environmental compliance during some ofthe key Project Phase 1 construction activities at the OPFand adjacent well site. Fluor also provided engineeringand construction input to documentation required toobtain critical regulatory approvals. The close cooperationbetween ENL and Fluor resulted in meeting all key projectschedule objectives, while maintaining compliance withthe comprehensive, and often complex, Russian regulatoryrequirements. As an example, over 10 different agenciesconducted approximately 50 inspections during the 2005-2006 period.Jim Flood, Safety Forum in Yuzhno, 2006What were some of the notable environmental initiativestaken by ENL and Fluor teams?Flood: One such initiative was introduction of an oil spillprevention program that involved extensive training ofsubcontractors and their maintenance crews. Rigorous spillinvestigation processes were also used and improvementactions were shared. During fueling operations or otheractivities with potential oil spill risk, we used troughs andother containment systems to prevent contamination to soilor water. In addition, maintenance checks were performed onequipment to prevent hydraulic oil leaks.What special challenges did marine life in the area createduring the transportation and offloading of OPF modules-- and how did ENL and Fluor deal with them?Flood: The sea lift team for transport and offloading of OPFmodules employed marine mammal observers previouslytrained by ENL for other offshore-related activities includingthe Orlan drilling platform installation and constructionof flowlines from the platform to the Chayvo well site.The training program was based on ENL’s gray whaleenvironmental protection program and experience. Usingtrained observers ensured environmentally safe operationsthat were conducted so carefully that no incidents with marinemammals occurred.Sakhalin Island’s remote location and severe weatherconditions pose additional safety and health challenges.What steps did ENL and Fluor take to ensure the health andsafety of their workers?Flood: ENL and Fluor managers worked together to developinnovative solutions to work safely during the harsh winterconditions. We minimized the impact of the harsh winter byerecting temporary habitats and buildings at worksites andinstalling heat blowers to keep temperatures at safe levels.ENL and Fluor safety champions also brought the entireteam into the work process. Each time they saw an unsafepractice, they intervened and helped the workers correct it. Butit didn’t stop there. They documented the observations andobserved trends in what they were seeing and then broughtthe workers in for some remedial training. The workforcesaw management’s proactive stance on safety and embracedit. This resulted in fewer reportable incidents and allowed usto achieve a lost time incidence rate that was nine times betterthan the worldwide oil and gas construction industry average.37

Delivering ProjectsGlobal ServicesKennecott Smelter ProjectKennecott Utah CopperMagna, Utah, USAKennecott has contracted with Fluor to provide maintenanceservices to this state-of-the-art smelter, which is stated to bethe environmentally cleanest in the world. The Kennecottsmelter is a unique and challenging heavy industrial facilitythat inherently involves nearly all facets of HSE hazards,including hot molten metals, hazardous gases, acids andcaustics to environmentally sensitive flora and fauna. “AtKennecott, the achievements are a result of people caringfor people,” says Hugh Alexander, Fluor site manager.“For 2005 and 2006, the craft turnover rate was more than30 percent, and with that kind of turnover, the millionwork-hour milestone could not have been reached withoutemployees looking out for each other and working together.”Kennecott’s state-of-the-art smelter produces 720-pound, 99.5-percentpure copper anodes that are shipped to the company’s nearby refinery to beprocessed into 99.99-percent pure copper cathodes.At the Kennecott Utah Copper project, Fluor:• Completed its second-consecutive calendar year withzero lost time accidents and zero medical treatment casesfor Fluor employees and contractors• Completed over one-million safe work hours for Fluoremployees (This achievement was part of Kennecott’stwo-million safe work hours record, which is believed tomake the operation the safest smelter in the world)• Saved the client $2.5 million in 2006 throughimprovements in contractor management, kitting andstaging, work process controls, execution management,and innovations• Provided best practices and subject-matter experts in allfacets of maintenance• Conducted innovative training programs related tomaintenance reliability and related topics38

Delivering ProjectsGlobal ServicesBP Texas City Refinery ProjectBP Texas CityTexas City, Texas, USAFluor provides professional and technical support to BP’sRoutine Maintenance and Turn Around (TAR) Organization.Fluor also assembled a capital projects team to performelectrical and instrumentation (E&I) on installation of a newblowdown and flare system. The refinery has undertakena complete recommissioning since it fully shut down forHurricane Rita in September 2005.Highlights from the BP Texas City Refinery project include:• In 2006, achieved more than six-million hours withouta lost time accident (over five years) and two-millionsafe work hours without a recordable incident (over twoyears) for Fluor and Fluor-managed subcontractors• Managed three-million hours of BP contractors (over twoyears) with only one recordable incident• Fluor project employee serves as the President of theBoard of Directors of Texas City Contractors SafetyCouncil, an organization run by contractors to providecontractor training• Fluor project employee serves as one of two facilitatorsfor the BP Contractor’s Safety Association, anorganization designed to evaluate safety issues at theTexas City refinery• Fluor project employees participated in construction ofHabitat for Humanity house (fourth year of participation)• Fluor project employees were involved in localcommunity activities, including Galveston County Fair &Rodeo and mentor program for high school juniors andseniors through College of the MainlandProgress Energy ProjectProgress EnergyAsheville, North Carolina, USAAt the Progress Energy project, Fluor provides maintenanceservices as well as site HSE and loss-prevention servicesto this diversified energy company with more than 23,000megawatts of generation capacity.The Progress Energy Project achievements include:• Received the North Carolina Occupational Safety andHealth Administration (OSHA) Building Star Award2006 (North Carolina’s equivalent of the U.S. OSHA’sVoluntary Protection Program (VPP) award)• First project to receive 98.8 score on the NC BuildingStar assessment form• First contractor to achieve VPP on a Progress Energy site• Fourth Global Services project to achieve VPP status• Achieved 1.8 million work hours without a lost timeinjury, which helped qualify for the Building Star award• Achieved total project recordable incidence rate of 0.44Standing with the Carolina Star Flag and award plaque are (from left toright) Tom Jones, Fluor Project Manager; Carl Collins, OSHA Consultant;Cherie Berry, N.C. Dept. of Labor Commissioner; Donald Mitchell, Fluor HSEManager; and Fred LaVoy, Progress Energy Site Construction Manager.39

Delivering ProjectsPowerTS Newmont Power Plant ProjectNewmont MiningElko, Nevada, USAThe TS Power Plant Project is located in Eureka County,approximately 50 miles west of Elko in Dunphy, Nevada.Newmont has contracted with Fluor to design andconstruct, as well as provide HSE services for, a new powerplant facility that will supply power for the majority ofNewmont’s Nevada operations. The project will also provideinterconnection to the electrical grid for distribution ofexcess power beyond Newmont’s requirements.“This TS Power Plant project is an outstanding example ofteamwork that is driven by personal commitment. Recentlythe TS Power Plant project was praised as the cleanest,most organized, and great-looking heavy constructionsite in Nevada by our OSHA Enforcement Office. Youall should be proud of this accomplishment. The SafetyConsultation & Training Section of Nevada OSHA concurswith the Enforcement branch, and we encourage everyoneto maintain this personal commitment throughout theremainder of the project,” said Richard Bochman, NevadaOSHA, Division of Industrial Relations.One Million Hour Celebration, left to right: Robert Duckworth –Corporate HSE, Richard Bochman – Nevada OSHA, Joe Bennett – VPConstruction Power Group, Jimmy Law – Fluor Site Manager TS Power,Dale Kersley – Fluor Construction Manager, Ron Nunez – Corporate HSE.Project achievements include:• Utilization of the best available emissions controltechnology, which exceeds the Environmental ProtectionAgency’s (EPA) standards for plant emissions• Collaboration with the Nevada Occupational Safety andHealth Administration (OSHA) consulting service toshare best practices, training, and industry trends• 1 million safe work hours without a lost time injury“I am very proud of the entire team’s significant accomplishment of achieving 1 million safe work hours—particularly given the remote location and difficult winter conditions.”Joe Bennett,Fluor Vice President, Construction40

Delivering ProjectsPowerKentucky Utilities SO 2Compliance ProjectKentucky Utilities CompanyGhent, Kentucky, USAFluor provides engineering, procurement, and constructionservices in addition to site HSE services. Fluor isperforming a Flue Gas Desulphurization (FGD) project atthe KU Ghent Generating Station, an existing 30-year-oldplant. The FGD system enables Kentucky Utilities to meetfederal emissions requirements in a very cost-effectivemanner.At the KU Ghent Generating Station, Fluor has taken thefollowing HSE initiatives:• Implemented client-specific HSE Kentucky UtilitiesPassport Safety Awareness Training program for intracompanytransfer employees• Orchestrated management and client participation inweekly HSE assessments, promoting safe-work behavior• Developed a new waste-handling and storage process foruse at the site41

DeliveringAwareness42

Delivering AwarenessFluor believes that ongoing HSE communications are a criticalaspect of increasing employee awareness and improvingknowledge sharing. Throughout 2006, a variety of tools wereused to deliver HSE awareness. Along with monthly newsletters, alerts, News Online, and Knowledge OnLine, other vitalcommunication tools included contests and events. The annual HSE poster and slogan contests also provided tremendousvalue in strengthening the HSE culture by involving employee families.2006 HSE Slogan LogoEach year, the HSE group conducts a contest for employeesto submit entries for the following year’s HSE slogan. Thisannual event helps to create an awareness of HSE andencourages participation among Fluor offices worldwide. Apanel of independent judges reviews the slogan submissionsand selects a winner based on originality, motivationalvalue and the slogan’s ability to be representative of Fluor’scommitment to an integrated HSE approach during allproject phases. Each year, Fluor features the winning sloganin HSE media campaigns and promotes it worldwide onFluor’s Intranet. Projects around the world also providestickers with the winning slogans to be displayed onhardhats. Additionally, the winning employee receives amonetary award and a commemorative plaque featuring thewinning slogan.The 2006 competition received approximately 150 entries,and after careful review, the judges proclaimed the slogan“BEE Accountable” the winner.2006 HSE WeekThe week of October23, 2006 markedFluor’s second annualweek-long focuson Health, Safety,and Environmentalactivities – HSE Week.The focus of the weekwas on sustainabledevelopment and itsimplications for theworld in which welive.In 2006, more than135 projects andoffices in 25 countries participated in the annual event. EachFluor location had at least one designated champion whoassisted with the coordination of local events. Worldwide,more than 35,000 Fluor employees participated in HSEWeek activities.Activities included:• Lunch and Learn sessions• Outside speakers discussing a variety of health topics• Organized walks promoting health, fitness, and energyconservation• Volunteer projects including the creation of a “mini park”with garden boxes to help students learn and study aboutplants, cleaning beach areas and providing HSE learningresources to elementary studentsThroughout HSE Week, we highlighted a variety of storieson Fluor’s Intranet to support the theme of “Education andLeadership in Sustainable Development.”43

Delivering AwarenessChildren’s HSE Poster ContestThe Children’s HSE Poster Contest is an annual event forFluor employees’ children and child relatives all aroundthe world. The contest helps to promote awareness andencourages these young minds to focus on the importance ofour health and safety and the environment.The 2006 Children’s HSE Poster Contest receivedapproximately 100 entries from around the world.Participants from the People’s Republic of China, England,Canada, India, the Philippines, USA, and Kuwait, rangingin age from four to 17 years, submitted entries for the 2006contest. All submitted entries had to be an original pieceof artwork. No computer art, stencils, or electronic imageswere allowed.Winning participants received cash prizes and honorablementioncertificates. Additionally, winning participantsalso had their entries displayed on Fluor’s Intranet site(News Online) and in our Knowledge OnLine database forworldwide recognition.HSE MattersThe inaugural issue of HSE Matters was released inJanuary 2006. This monthly electronic newsletter featuresinformation such as HSE organizational changes, HSEmanagement system updates, current events, projectupdates, awards, and personnel and regulatory changes.Each issue also includes ready-to-use HSE topics to helppromote employee dialogue.“Our employees are active participants in contributinginformation for the newsletter,” said Jessica Bohart, HSEMatters editor. “Their input helps provide a variety ofdiverse, global news.”HSE Matters is available to employees on Fluor’sKnowledge OnLine database. For those employees workingin remote locations and contractors who do not have accessto Knowledge OnLine, the newsletter is distributed viaelectronic mail.The 2006 winning poster was submitted by Joanna MaeBrady of the Philippines. “My poster reflects an imageof universal safety awareness where everyone needs toparticipate in the safety of our environment and human life.I hope that the message in my art will become a reality foreveryone – young and old around the world – because theworld is beautiful and we have to preserve it,” said Joanna.To support Fluor’s global HSE Week 2006, thismonth’s HSE Matters is dedicated to Education andLeadership for Sustainable Development. Inside youwill find lots of information about United Nations andother global initiatives on SD. You will also find newsabout just a few of Fluor’s many achievements in thisarea.Watch for HSE Week 2006 activities in your locationduring the week of October 23 rd . Challenge yourself asa Fluor employee as well as in your personal life toconserve natural resources, preserve our environment,and to participate in socio-economic activities.Make sure you read the Sustainable Developmentarticles as they appear throughout the week on FluorNews Online.For additional information about HSE Week activitiesin your area, please contact Wendy Pontefract atwendy.pontefract@fluor.com.As we enter the 21st century, it isimportant to recognize that althoughit is the scientific and technicalchallenges of sustainabledevelopment and environmentalprotection that will occupy theattention of most people, it is theinstitutional and behavioralchallenges that will prove to bemore formidable over time.~ Klaus Töpfer, Exec.Dir,UN Environment Program2007 HSE SloganPublished by the Fluor Health,Safety and Environmental Group,HSE Matters includes news andfeatures about events, projects,employees, and organization.Newsletter Coordinator: J. BohartCongratulations to Thomas Forgette,Inside This month: winner of Please the 2007 notice HSE Slogan many ofthe clip art pictures Contest. throughout Thomas works at this the IBM issuehave been taken Fishkill from project the in many New York. posters Tom’s thatwere submitted winning August slogan “Fluor for the HSE 2006From (l) Martin Kiker, Exec. Dir. IBM OperationsPoster Contest. Start Thank To Finish“ you provides again an to excellent (r) Thomas Forgette, Crib Attendantallthe children that representationsubmitted of Fluor’stheirintegratedapproach to Health, Safety and the Environment as it is applied in all phases ofbeautiful artwork!a project. The new logos will be available as stickers during January 2007.InsiIide: :New HSE Knowledge ManagerSuccess with Behavior BasedSafetyMaking a Difference in QatarTool Box TopicsFEMA – 9M Safe Work Hoursand more…Thomas Forgette is the crib attendant with Fluor Industrial Services in Hopewell Junction, NY at the IBM Facility.He is married and has two children, two beautiful grand-daughters and two yappy Dachshunds.Copyright©2006 Fluor CorporationAll rights reserved.Since inception of personal computers he has worked with graphic software programs and has a 14 year seasonalpart-time job as the Video Director at the Hudson Valley Renegades located in Fishkill, NY - a Tampa Bay DevilRays minor league baseball team. Tom make the graphics, videos and logos for the scoreboard and directs severalfan cameras.The new logos will be available as stickers in early January 2007. Again, thank you and congratulations to Thomas!Published by the Fluor Health,Safety and Environmental Group,HSE Matters includes news andfeatures about events, projects,employees, and organization.Questions or comments about HSE Matters may be directed to:Jessica BohartFluor CorporationOne Fl uor Daniel DriveSugar Land, Texas USA 77487Phone: 281.263.6091Copyright©2006 Fluor CorporationAll rights reserved.Joanna Mae Brady, and herwinning poster design.44

DeliveringSustainable Development45

Delivering Sustainable DevelopmentFluor defines sustainable development (SD) as meetingthe needs of our clients while conducting our business in asocially, economically, and environmentally responsiblemanner to the benefit of current and future generations.As a company with global operations, our international reach calls for us to build and sustain the global community, whilecreating value for our stakeholders, including our clients, employees, investors, and the communities in which we live andexecute our work. SD is a corporate responsibility built on honesty, decency, and integrity that requires us to consider howour work can have a positive impact on the quality of life in all the communities we touch.SD permeates every aspect of delivery at Fluor, as evidencedthroughout this Annual Report and as highlighted below.“The successful demonstration of our management systemnot only enhances the safety and welfare ofour employees, but also provides value forour shareholders, as well as promoting ourreputation and the general HSE awarenessamong the local communities. Our companyacts in a socially responsible manner. “Zhou MingFluor HSE ManagerInstalling meteorological mast for wind farmDelivering Performance••Diversity of suppliers registered in SCORE!Manuel Junco’s remarks about Energy & Chemicalsfocus on SD in his Executive Interview• SD articles included as P4 publicationsDelivering Success•Alan Boeckmann’s award from the American Society ofCivil Engineers for his anti-corruption work• Australian Engineering Excellence Award, partially forenvironmental designDelivering HSE Resources•Behavior-based safety training for individuals in remotelocations• Global recruiting of HSE professionalsDelivering Projects••Creating wetlands at Fernald, OhioProviding temporary housing in the Gulf Coast region forFEMA disaster relief• Designing a California power plant to produce syngasfuel that will generate electricityDelivering HSE Awareness•HSE poster contest for childrenAs our project profiles indicate, significant SD takes placeas a normal part of doing business. Another significantexample that highlights Fluor’s involvement in SD is thewind farm project designed by Greater Gabbard OffshoreWinds Limited, a Fluor / Airtricity joint venture. The 500megawatt wind farm will feature up to 140 turbines, locatedaround two sand banks, known as the Inner Gabbard andThe Galloper, approximately 23 kilometers off the coast ofSuffolk, England. This project was executed by the Fluor’sIndustrial & Infrastructure business group, headed by GroupExecutive Steve Dobbs.46

Delivering Sustainable DevelopmentExecutive InterviewSteve Dobbs, Group Executive,Industrial & Infrastructure, onSustainable DevelopmentSteve Dobbs provides furtherinsight into Fluor’s focus onSustainable Development.Sustainable developmentis another way of definingcorporate or globalresponsibility. How importantis corporate responsibility toa global company like Fluor?Dobbs: For a large, publiccompany like Fluor, corporateresponsibility is critical. It’sa key metric that’s applied to us in virtually every businesssegment and every country where we’re doing business ormight in the future. For example, we don’t sell widgets atFluor, we sell services. Our clients look at our culture andour values, which reinforce our corporate behavior, as ameasure of how we’ll treat them and others with whom we’llbe working on projects. It’s important to think of corporateresponsibility, or sustainable development, not only in theshort term. We need to make sure we step away and lookstrategically at sustainable development over the long haul.It’s a key element in how we position the company for thefuture.The three aspects of sustainable development or corporateresponsibility are environmental, social, and economic.Does one stand out as more important to you and why?Dobbs: They’re all linked. You can’t have one without theother. From a personal standpoint, social is the hardest.Social is tough for engineers, who depend on specificationsor statistics to do their work. We’re taught that there is onlyone right answer. With societal issues, there can be 100answers, so, at least for me, it takes extra effort. I’m willingto invest the effort because the social aspect is so importantto our business and to sustainable development.How would you rate Fluor’s sustainable developmentperformance today? How has it changed during your yearswith the company?Dobbs: In the last few years we have made a lot of progresswith diversity and inclusion, explaining what it means, andwhy it’s important. I’m speaking about more than genderand race here. I’m talking about inclusion in all aspects,especially different cultures. That’s critical for a truly globalcompany. I think we’ve also gotten better at understandingthe importance of the political side of our projects. If youbuild a 90-mile highway, you find yourself dealing with alot of different people and politics. Actually, I can’t think ofa better example of this than Fluor’s work in Louisiana afterthe hurricanes in 2005. The folks running that project wentto great lengths to build relationships throughout Louisianaand to communicate regularly with key politicians there.That has and will continue to pay dividends for Fluor in theGulf Coast region, and it’s a good model of how to impactan area positively.In your opinion, can exceptional sustainable developmentbe a business differentiator for a company like Fluor?Dobbs: Sure, in the long term it can. If safety is importantto our clients or potential clients and our safety record isbetter than our competitors, we win. But I need to emphasizeagain that our focus on sustainable development isn’t aboutbeating the competition, it’s about doing the right thing. It’sour corporate responsibility.How important is it to integrate sustainable developmentconsiderations into a project early in the planning process?Dobbs: It’s important that sustainable development befactored into project planning at the earliest stages. Butfor sustainable development to really work, it has to startwell before planning for any project. It has to be part ofyour culture and part of the way you always do business.If it’s not, you’re not really thinking about your businessstrategically.47

Delivering Sustainable DevelopmentFluor Research Center Opens at Kazakh NationalTechnical UniversityThe Fluor Research Centre for Chemical Technology opened inspring 2006 at the Kazakh National Technical University (KazNTU)in Almaty, Kazakhstan. The centre was created through twoyears of combined effort by Fluor, University College London, andthe KazNTU. It was funded by a gift from the Fluor Foundation. Itprovides chemical technology students with additional skills, andexposure to tools such as computer design, required to securejobs with western oil and gas companies operating in Kazakhstan.Training in the CommunityTraining of community members is a part of SD that Fluorbroadly endorses. Fluor partners with universities aroundthe world to provide quality education in engineering andassociated fields. Future generations of local engineersstrengthen communities, thereby advancing SD.“The partnership between academia and industry has beensuccessful in creating new opportunities for students inKazakhstan,” said Professor Absametov, Vice-Rector of theuniversity. The suite, with its simulation software, marks acomplete departure from the usual style of classroom teaching.Fluor at dedication of new Texas A&M University Construction ScienceLab. Left to right: Suzanne Esber, Fluor Director, Community Relations, Dr.Charles Graham, Construction Science Interim Department Head, ProfessorJoe Horlen, Associate Department Head, and John Richardson, FluorExecutive Project DirectorUniversity PartnershipsThrough our College Relations program, Fluor developednew relationships with 13 U.S. universities in 2006. The listof universities is provided in Appendix C.Left to Right: Professor Shaikhutdinov (retired Rector of KazNTU) watches asAssistant Professor Gulzhakhan Yeligbayeva and Nick Amott, Process Directorat Fluor, present gifts to Students who helped in setting up the Computercentre.As part of our college and university relations efforts, Fluoremployees interact with university faculty and studentorganizations to support engineering and constructionprograms and academia. Grants and sponsorships totaling$495,000 in 2006 supported engineering and constructiondepartments and initiatives, student association programs,scholarships, and career centers.In addition to U.S.-based universities, Fluor provided$180,000 in support to the universities, scholarship programsand initiatives in 2006. Appendix C contains a list of thoseuniversities and programs.48

Delivering Sustainable DevelopmentTactical fire response trainingThe Volpentest Hazardous Materials Management andEmergency Response (HAMMER) Training CenterThe Volpentest Hazardous Materials Management and EmergencyResponse (HAMMER) Training Center near Richland, Washington is oneof the country’s premiere training facilities for environmental cleanupand disaster response/emergency management personnel. Thisfederally owned and Fluor-operated facility was constructed to servethe training needs of the 10,000 workers who perform highly complexand dangerous tasks in their mission to remediate the environmentallycontaminated Department of Energy Hanford site.Confined Space rescue exerciseHAMMER boasts the most diverse set of hands-on training devices inthe country on its 80-acre campus. Students training at HAMMER havethe benefit of using training devices that were specifically designed toprovide the most realistic training anywhere. A large part of HAMMER’ssuccess is the partnership formed by management and labor – apartnership that AFL-CIO President John Sweeney referenced as “one ofthe most important in the country.”HAMMER, making use of available capacity, has also expanded itsmission to serve other federal and private agencies in areas such asemergency response and domestic preparedness.Annual student training days at HAMMER number more than 32,000.49

Delivering Sustainable DevelopmentBut it isn’t all about organizations and facilities – it’s aboutindividuals too.Del-Jen Partnership and ScholarshipsIn 2003, the Fluor Foundation and Del-Jen, a FluorGovernment Group subsidiary, launched the FluorFoundation Job Corps Scholarship Program. Job Corps, aU.S. federally funded program, is administered by the U.S.Department of Labor through its Employment and TrainingAdministration. It is a residential education and job-trainingprogram for at-promise youth, ages 16 through 24.Scholarships are provided at seven Del-Jen operated JobCorps Centers around the U.S. Annually, one studentfrom each site is selected to receive a $5,000 scholarshiprenewable for the duration of their university study. Twelvestudents received scholarships in 2006 and will be supportedand mentored through their university careers. Anotherpartnership was forged last year between the Centers andFluor to hire qualified Job Corps graduates into entry-levelcraft labor positions. Additional training and local job-sitesupport helped advance the students’ long-term career goals.Scholarship ProgramsSince the inception in 1981 of the Fluor ScholarshipProgram for employees’ children, 2,180 students havereceived scholarships, totaling approximately $9 million.In 2006, Fluor issued 263 new and previously awardedscholarships totaling $590,500. These scholarships assistindividuals in communities worldwide.Merphie Samuels, Level 3 welding trainee at the Jamalco- HEART Breadnut Valley Engineering Institute (BNVET)in Jamaica, made history by competing as the first non-American and placing second in the annual AssociatedBuilders and Contractors National Craft Championships. “Idid not know what to expect. I applied what I have learnedand used my initiative,” Merphie said.A total of 109 students participated in the intense two-dayevent, which involved young men and women competingin one of 13 craft categories including: welding, carpentry,metal-building, electrical, millwright, fire sprinkler,pipefitting, HVAC, plumbing, instrumentation, sheet metal,insulation and masonry. Along with four other contenders,Merphie competed in a six-hour weld-off, which included awritten examination. The competitors were judged on theirMerphie Samuels, first non-American participant in the Associated Buildersand Contractors National Craft Chamionship.ability to quickly and effectively assemble their weldingequipment and their effectiveness at pipe welding inparticular positions.Berry Moody, Fluor’s Project Manager for the Jamalco Unit-3 Expansion Project, said, “The idea to enter a student fromBNVET in the Associated Builders and Contractors NationalCraft Championships in the United States was generated byDickie Jones, Training Manager at Fluor’s Houston Office,who organized Jamaica’s involvement in the competition.”Craft TrainingFluor continues to provide craft training at its globalprojects. This initiative creates SD by allowing localcraftsmen to continue to build and improve theircommunities after Fluor’s projects are complete. In 2006,the Caspian Training Resources (CTR) Center in Atyrau,Kazakhstan trained more than 1,500 individuals in thecrafts in support of the Tengiz Chevroil project and otherprojects. The CTR Center is recognized by the local andnational governments for its continued contributions to thelearning and skills-enhancement activities for the citizens ofKazakhstan.The Fluor Training Centre in Secunda, South Africa receivedaccreditation from the Chemical Industries Education andTraining Authority to train workers from semi-skilled toartisan (journeyman) levels in chemical fitting, electrical,welding, rigging, and boilermaker. The Centre also achieveda four million safe-hours award in November 2006.50

Delivering Sustainable DevelopmentEngineers Week and Friendly Competition 2006Founded in 1951 by the National Society of ProfessionalEngineers, Engineers Week (EWeek) provides Fluor withthe opportunity to recognize its professional engineers andengage in educational outreach efforts focused on sharingthe exciting elements of the engineering profession withyoung children – tomorrow’s future engineers. Globally,thousands of Fluor employees volunteer to speak withmore than 10,000 young children about math, science, andengineering. By encouraging 13- and 14-year-old childrento become interested in the engineering and associatedprofessions and pursue careers in those fields, communitiesaround the globe will benefit.And Eweek allows us to have a little fun as well and sharewith local communities. Through our Fluor FriendlyCompetition, engineers test their creativity and engineeringskills by competing globally with colleagues from otheroffices on a timed-design project. Besides employees,Fluor invites high school students in local communitiesto participate. The winning team has the dubious honor ofdesigning the challenge for next year’s competition. ThinkOutside the Box was the theme of the 2006 competition.This year, approximately 350 teams from 24 offices werechallenged to build a floating device to support a “testobject” at an elevated position above water. Teams wererated on a variety of criteria including safety, cost andproduction time. For the second year in a row, the FluorHaarlem office in The Netherlands was named the winner ofthe competition.The Winning Moment! Winning team members: Dirk Somsen, GerardAnsink, Peter Pluimers, and Edwin van BreenenCary Jackson, HSE Manager, teaches children how to identify constructionsafety signs at the Ford Island Youth Safety Awareness WorkshopHealth and Safety Exposition—EXPOIn May 2006, Fluor supported a major outreach to localcommunities — the Hanford Health and Safety Exposition—EXPO. Fluor was a key player in the 12th annual eventthat drew more than 47,000 people to a convention centerin Richland, Washington. The 140 booths showcased bothsafe-work activities at the Hanford project and regionaland national vendors of products and services for health,safety, and fitness vendors. By sharing knowledge withcommunities, individuals are better equipped to work safelyat home and at their jobs. Fluor Hanford projects wonawards for their booths, including a Best of Show award forthe K Basins Closure Project and a Best Safety award for theClosure Services organization.PhilanthropyFluor Corporation meets its philanthropic objectives throughcorporate giving and through the Fluor Foundation. In 2006,Fluor contributed $4.7 million to organizations and programsin 17 countries. The purpose of the contributions program isto invest company resources to benefit communities wherewe have an employee presence, stimulate the economy inregions where we have a company interest, and supportemployee volunteerism and giving in their communities.Contributions are directed to education, human services,cultural and civic affairs, with approximately 90 percent ofFluor’s giving directed to education and human services.A list of organizations benefiting from Fluor philanthropicinvestments in 2006 is provided in Appendix C.51

Delivering Sustainable DevelopmentEmployee ActionsEmployee GivingFluor’s philanthropic commitments are coupled withthe commitment of its employees to give back to theircommunities. In North America and Canada, duringthe 2006/07 United Way Make-A-Difference (MADP)campaign, 29 offices and project sites contributed more than$2.44 million. This donation was matched 50 cents on thedollar by the Fluor Foundation, bringing the total MADPcontribution to $3.66 million. Employee contributions weredistributed, as designated, to various United Way and healthand human service agencies.The Fluor Foundation matches employee contributionsto higher education institutions and scholarship programsin the United States. In 2006, the Fluor Foundationcontributed $170,000 to more than 160 universities andprograms.Global Service Project – Building FuturesEach year, Fluor employee-volunteer teams join to create aGlobal Service Project. In 2006, 30 Fluor offices worldwideselected schools and youth organizations to provide withbackpacks filled with school supplies, as well as assistingsome of the schools with facility renovations and otherdonations. More than 7,000 backpacks were provided tochildren in many countries, including China, Chile, Mexico,Peru, the Philippines, Trinidad and the U.S.A. In addition,thousands of children will benefit for years to come fromrenovated schools and orphanages in Ghana, India, Peru,Russia, and The Netherlands.Employee VolunteerismIn addition to monetary donations spearheaded byemployees and employee-volunteer organizations, Fluoremployees give back to their local communities in yearroundprojects and various volunteer efforts. In additionto donating in-kind engineering and construction services,Fluor employees give selflessly through fundraising and byvolunteering in programs and events such as:• “Adopt-A-Family” and Holiday Outreach• Food drives• Blood drives• Various walk and run events• Educational outreach – mentoring; tutoring; careerpreparation; computer literacy• Environmental activities – Earth Day; tree planting;adopt-a-spot/adopt-a-highway• Meals-on-wheels• Computer and equipment donations• Clothing collections and donationsChildren receiving backpacks52

Delivering Sustainable DevelopmentCommunity InitiativesIn Quilpue, Chile, near the capital of Santiago, 125 Fluor,AMECO, and client volunteers lent a hand to “Un TechoPara Chile” (A Roof Over Chile). This organization isdedicated to providing housing for families living inimpoverished conditions, transforming slum areas intocommunities that provide dignity for their inhabitants,and assisting families through the process of applying andqualifying for government programs. Volunteers, includingFluor and AMECO employees and their families, clientpersonnel, and those selected to receive the homes, wereresponsible for the total construction of each home. Oncompletion, each home was inaugurated with a ribboncuttingceremony.Around the world, many Fluor offices continue to participatein community development and community revitalizationefforts, such as Habitat for Humanity. Along with variousfunding initiatives, Fluor volunteers provide countlesshours helping construct Habitat houses. Fluor-sponsoredhomebuilding efforts took place in Bartow, Georgia;Greenville, South Carolina; Nashville, Tennessee; Gliwice,Poland; and as part of a Job Corps Building Blitz inLafayette, Louisiana.In Ilo, Peru, Fluor, in partnership with client CerroVerde, provided funding for a major renovation at a localhospital. The renovation provided updated and modernizedamenities and facilities. In addition to medical renovation,the remodeled facility also provides patients with a craftworkshop that will teach them to create various incomegenerating items for the facility, which provides services tothe economically disadvantaged.Volunteer workers at the Un Techo Para Chile housing project. Left to right: AnaCarolina Jofre (Barrick Client), Roger Labas (Fluor), and Sergio Osorio (Fluor).During the three years that Fluor managed construction onlocation for an oil and gas project in Sakhalin, Russia, Fluoremployees adopted the local Zhuravoshka Orphanage inthe Kholmsk district. Employees raised money, receiveddonations from vendors and, along with grants providedby Fluor, built a new service kitchen and dining room forthe children. They were rewarded for their efforts when thedirector of the orphanage thanked them by asking, “Howcould we have managed for over 30 years without a place tofeed the children?”53

Deliveringfor the Future54

Delivering for the FutureHealth, Safety and Environmental (HSE) concerns areessential elements of every job function that we perform atFluor – in the field and office alike. Each year, we look atthe lessons learned as well as the successes of the past yearto help determine what the emphasis for the next year shouldbe. We strive to maintain and protect the well-being of ouremployees, as well as our surroundings, making it our goalto benefit each community we impact while cultivating itsdevelopment. As always, we continuously seek ways toimprove HSE performance throughout the planning, design,construction, operations, maintenance and decommissioningprocess for the projects we execute.Qualified resources are critical to execution of our projects.In 2006, the HSE organization began utilizing a SkillsInventory database, with the 2007 objective to have allHSE employees populate the database, thereby allowingmore refined utilization and development. An additional2007 resource-related objective is for the HSE FunctionalDevelopment Forum to increase the number of professionalsearmarked for special mentoring and developmentopportunities.In 2007, there will be strengthened focus on the continuedimprovement of our performance at the activity level. TheHSE Board will expand the application of our Behavior-Based Safety (BBS) and Human Performance Improvement(HPI) initiatives within Fluor’s operations this year, makingthem key parts of the company’s Zero Incidents SM program.Focusing on these processes will enable us to prevent humanerrors and avoid the workplace incidents experienced in2006.In addition to expanding the BBS and HPI processes, theHSE Field Audit program will be enhanced by improvingthe corporate auditing strategy and protocols. Strategyenhancements include a well-defined level of audit processesand execution and more attention to project-critical HSEareas. The current audit protocol has been strengthenedby developing more effective trending and metrics forthe scoring process. Likewise, the template for the HSEEngineering Audit Program will be enhanced to addressdifferent types of project elements.The HSE Engineering function will be highlighted in 2007with the creation of HSE Engineering departments in severalof Fluor’s major offices worldwide. We will leverage ourHSE engineers and scientists to meet the needs of projectsglobally, and we will develop training modules to be usedby the HSE Engineering leads in teaching best practices toemployees working on projects. Finally, consolidation ofour HSE processes and procedures, enhanced training of ourHSE engineers in developing countries, and cross-trainingwithin HSE will continue.Fluor’s international reach calls for our involvementwith many of the most critical global challenges suchas sustainable development (SD), which is the ability tomeet the needs of the present without compromising theneeds of the future. The importance of SD has increasedexponentially in the last five years, and because of theimportance of this issue to Fluor, an SD initiative withexecutive sponsorship will be implemented in 2007. Inaddition, the corporation will unveil a Global Responsibilityweb site emphasizing our programs in HSE, SD, Diversityand Inclusion, Community Involvement, Compliance andEthics, and Corporate Governance.To further promote HSE awareness in 2007, ourother action items include:• Continuing to distribute our monthly global HSEnewsletter, with highlights of the SD initiative• Revamping HSE’s Knowledge OnLine homepage toallow better access for remote work locations• Communicating HSE Week 2007, our annualcelebration and awareness of HSE and SD•Implementing GIMS, our new automated HSEGlobal Information Management System55

Appendices56

Appendix A2006 HSE P4 Publications and Presentations“ALARA Lessons from the Red Bead Experiment” by Steven S. Prevette“An American Perspective of the Nuclear Decommissioning Experience” by Brian Miller, Geoff Tyree, Judy Connell and Ronald Gallagher“ATEX en Handhaving: ATEX 137 Eisen voor Explosie Veiligheid by (requirements for explosion security)” by Jos Roebroek“Automated Job Hazard Analysis an Integrating Tool for ISMS” by Anthony M. Umek, Mark Hermanson,,Miles Jaeger“Automated Job Hazard Analysis Program and VPP” by Mark Hermanson, Miles Jaeger“Automated Job Hazard Analysis” by Mark Hermanson, Miles Jaeger“Automated Job Hazards Analysis Web Application” by Mark Hermanson, Miles Jaeger“Central Plateau Remediation” by Becky A Austin, Michael B. Lackey, and Theresa Bergman;“The Challenge of Preserving Historic Resources During the Deactivation and Decommissioning of Highly Contaminated Historically Significant PuProcess Facilities” by Andrea Hopkins, Donald L. Sorenson, Michael J. Minette, Michele Gerber, and Robert E. Heineman, Jr.“Charting Safety Performance” by Steven S. Prevette“Clean and Clear” by Gabriel Ozique“Cleaning Up and Closing the Fernald Site -- A Remarkable Story” by Michele Gerber“Coal-Fired Advanced Supercritical Boiler/Turbine Retrofit with CO2 Capture” by Satish Reddy“Contractors - Ensuring Competence and Safety Lessons Learned” by Mark Hermanson and Miles Jaeger“The Creative Application of Science, Technology and Work Force Innovation to the D&D of the Plutonium Finishing Plant at the Hanford NuclearReservation” by Andrea Hopkins, Robert E. Heineman, Jr., Michele Gerber, Michael J. Minette, Donald L. Sorenson, Brian Miller, Brian Skeels, andD. B. Klos“Dashboards and Control Charts - Experiences in Improving Safety at Hanford Washington” by David L. Jackson and Steven S. Prevette“Department of Defense Ponders VPP” by Geoff Tyree“Designing of Fire Water System according to NFPA Standards” by Bozena Adamska“Developing a Safe Plot Layout” by Mark Dejmek“Disposition of Sources, Standards and Miscellaneous Nuclear Materials at the Plutonium Finishing Plant (PFP)” by Theodore J. Venetz“DOE and Fluor Hanford Continue to Make Progress on Cleanup of Hanford” by Marie T. Gillespie and Michael B. Lackey“Electrical Safety, An Overview” by Anthony M. Umek and Larry Arnold“Electrical Safety Year End Project Report” by Anthony M. Umek and Larry Arnold“Emissions Reduction: Handling Sulfur Pit Vents and Sulfur Storage Tank Vents” by Theresa Flood and Thomas Chow“Energy Facility Contractor Group (EFCOG) Accomplishments for Calendar Year 2006 and Electrical Safety Initiatives for 2007” by Anthony M.Umek and Larry Arnold“Engineering in an Insurgency or National Emergency” by James Cartner“Experiences in Improving Safety at Hanford Washington” by Steven S. Prevette“FEMA Success” by Cheryl Smith and Thom Spencer“Fernald Decommissioning Update” by Michele Gerber“A Few Good Things” by Brian Miller and Geoff Tyree“FH Small Business Culture for Waste Management” Susan D. Stein“Fluor Coordinates Disaster Relief Efforts from Greenville Office” by Shauna Heran“Fluor Hanford 241-Z Cleanout Work Evolution” by Michele Gerber“Fluor Hanford Rad Release Program Modifications for Material and Equipment” by Gregory Perkins and John B. Stamper“Gathering Knowledge and Assessing Radiological Risk; Knowledge Gathering and Teamwork by Fluor Hanford Workers Reduces Risk andIncreases Productivity at WRAP” by Shawn Mellgren“Global Star Award 2006 Application” by Benay Doolittle“Hanford 2006 SP-44 Assessment” by Gregory Perkins“Hanford Decommissioning Update” by Geoff Tyree, Michael B. Lackey, and Michele Gerber“Hanford Groundwater Remediation” by Bruce Ford and Michele Gerber“Hanford Pu-238 Drum Investigation” by Rodney R. Gadd“Hazard Analysis: How Vulnerable Are Your Workers?” by Gary Snyder57

Appendix A“Hurricane Katrina & Rita Recovery Effort” by Shauna Heran, Charles DeBellevue, and Terry Butcher“Hydrolasing of Contaminated Underwater Basin Surfaces at the Hanford K Area” by Anthony M. Umek and Glen B. Chronister“Improving your Safety Performance with Intelligent Use of Data” by Steven S. Prevette“Innovative ALARA Techniques and Work Practices” by Larry Waggoner“Inspiring Safety Excellence with Values” by David Lynn“Integrating Job Hazard Analysis into the Work Management Process” by Anthony M. Umek, Mark Hermanson, and Miles Jaeger“K Basins Closure Project” by George W. Jackson“K Basins Respiratory Protection Issues” by Peter M. Knollmeyer“KBC Closure Project Overview 2006” by Michele Gerber“Lessons from Katrina: Coordinating Private Sector Response in Times of Crisis” by Greg Meyer“Managing Safety Lifecycle Projects” by Dick Perry“Medical Radioisotopes – Radiological Control Issues” by Robin L. Hill“Mitigating Terrorism Effect on Buildings Through Engineering Awareness and Design Considerations” by Reynaldo Velasco“NFPA Standards application in fire water design guarantee the safe work of technology plants” by Bozena Adamska“Nuclear Waste Cleanup Earns Fluor a DOE Star” by Geoff Tyree“Overview of Human Exposure Scenarios for Low Level Waste Disposal Sites” by Paul Rittmann“Overview of Technologies and Innovations being Developed for Fluor Hanford Projects at the Hanford Site” by John R. Ewalt, Robert E. Wilkinson,Scott W. Petersen, and Michael J. Minette“Partnering Against Corruption Initiative” by Alan Boeckmann“Performance Indicators for Emergency Management” by Steven M. Faulk and Steven S. Prevette“Plutonium Characterization to Support Facility Close Down” by Michael D. Talbot and Michael J. Minette“Preserving Historic Resources During the Deactivation and Decommissioning of Highly Contaminated Historically Significant Pu Process Facilities”by Andrea Hopkins, Robert E. Heineman, Jr., Michele Gerber, Michael J. Minette, and Donald L. Sorenson“Preventing and Predicting Equipment Failures” by Carl Arvidson“Process Hazard Analysis” by Hans Göebel“Progress with K Basins Sludge Retrieval, Stabilization and Packaging at the Hanford Nuclear Site” by Peter M Knollmeyer“Protecting Groundwater and the Columbia River at the Hanford Site” by Michele Gerber“Recounting History through Radioassay Classification of Suspect TRU Waste as TRU or LLW” by Michael A. Cahill and Michael D. Aichele“Reducing Injuries by Tracking Leading Indicators and Changing Human Performance” by Brian Miller, Ronald Gallagher, Steven S. Prevette, andAnthony Umek“Retrofitting of Reinforced Concrete Structures Against Blast Loads” by Fathalla Shalouf“Risk Assessment Overview” by Toni Hynds“A Risk-Based Approach to Flammable Gas Detector Spacing” by Robert Deshotels, Leisa Porter, Mark Dejmek, and Stephen DeFriend“Safety & Productivity: A Case for the Link” by Bob Prieto“Social Responsibility, a Contractor’s View” by Paul Andrews and Sarah Lindon“Software Quality Assurance (SQA) for Hanford Emergency Preparedness Hazards Assessment and Consequences Assessment Programs” byJames E. Mitchell and Larry Campbell“Source Term Remediation and Demolition Strategy for the Hanford K-Area Spent Fuel” by Glen B. Chronister, Marie T. Gillespie, and Peter M.Knollmeyer“Sulfur Dioxide Abatement Techniques in Refineries” by Irena Widziszowska and Waldemar Szeja“Sustainability at the Construction Site” by David Stayshich“THIS IS A DRILL! (Hanford Emergency Operations Center in Action)” by Carl W. Connell and Larry Campbell“Training Facilities and the Importance of Mock-Ups” by Mark Hermanson and Miles Jaeger“U Plant Geographic Zone Cleanup Prototype” by Julie Robertson and Michael B. Lackey“An Uncommon Commodity – Safety” by Norm Powell and Thom Spencer“Water Quality Controls in Construction” by Claude Wookey“Weapons to Wetlands” by Michele Gerber58

Appendix B2006 Fluor Star AwardsProject / Office Location Award TypeAlabama Power Barry Steam Plant Contract Bucks, Alabama, USA Five-StarBP Texas City Project Texas City, Texas, USA Five-StarBP Texas City Project - Team Pipestill 3B Texas City, Texas, USA Five-StarCaltrex Pacific Indonesia Project Duri, Indonesia Five-StarCamberley Office Camberley, Surrey, England Five-StarClarendon Alumina Work Clarendon, Jamaica, West Indies Five-StarCognis Contract Cincinnati, Ohio, USA Five-StarCorning Taichung Project Taichung, Taiwan Five-StarDuPont - Chambers Works Contract Deepwater, New Jersey, USA Five-StarDuPont Edge Moor Contract Edge Moor, Delaware, USA Five-StarE.C. Gaston SCR/BDC Phase II Willsonville, Alabama, USA Five-StarEscondida Sulfide Leach Project Antofagasta, Chile Five-StarExelon Contract Dallas, Texas, USA Five-StarFive-Star Fluor Trinidad OperationsPort of Spain, Trinidad & Tobago, WestIndiesFive-StarFluor/AMEC LLC – Public Works Water North, Balad Rooz Baghdad, Iraq Five-StarFluor/AMEC LLC - USACE Life Support Services Task Order 17 Baghdad, Iraq Five-StarFluor/AMEC LLC, GRD/PCO Water Sec Iraq Baghdad, Iraq Five-StarFluor/AMEC LLC, Nasiriyah Water Supply Baghdad, Iraq Five-StarHouston Operations Sugar Land, Texas, USA Five-StarILO Smelter Modernization Project San Isidro, Lima, Peru Five-StarIntegrated Isocyanates Project Caojing, Shanghai, China Five-StarKOC Consultancy Services Ahmadi, Kuwait Five-StarLuna Energy Facility Project Deming, New Mexico, USA Five-StarMerck Project Cactus Raleigh, North Carolina, USA Five-StarNRTS Project Birmingham, West Midlands, UK Five-StarPan Line D Contract Decatur, Alabama, USA Five-StarProgress Energy Contract Semora, North Carolina, USA Five-StarProgress Energy Contract New Hill, North Carolina,USA Five-StarRasGas (RL3) Project Doha, Qatar Five-StarSBET EPZ Project Vlissingen, The Netherlands Five-StarSunoco Toledo Refinery Project Oregon, Ohio, USA Five-StarSuperior Essex Magnet Wire China Five-StarTexas Utilities - Martin Lake Project Dallas, Texas, USA Five-StarTexas Utilities – Monticello Project Dallas, Texas, USA Five-StarAMECO Latin America / Puerto Rico - AMECO Caribbean Inc Various Four-StarEscondida Sulfide Leach Project - Sulfide Leach Project Antofagasta, Chile Four-StarFluor/AMEC LLC - Eribl WAter Supply - Ifraz Baghdad, Iraq Four-StarIntegrated Isocyanates Project Caojing, Shanghai China Four-StarAMECO North America / Caribbean - AMECO, Houston SupportCenterVariousThree-StarFluor/AMEC LLC - U.S. Army Corp of Eng - Erbil Water Supply Baghdad, Iraq Three-StarHanford Management Contract - Functional Organization Richland, Washington USA Three-StarHanford Management Contract - Lockheed Martin InformationTechnologyRichland, Washington USAThree-StarConoco/Phillips Ultra Low Sulphur Diesel Old Ocean, Texas USA Two-StarProgress Energy Contract Arden, North Carolina USA Two-StarAMECO North America / Caribbean - AMECO - GreenvilleOperationsVariousOne-StarHanford Management Contract – Waste Stabilization andDispositionRichland, Washington USAOne-Star59

Appendix CUniversity PartnershipsFluor Foundation ContributionsCanadaKeyano College, University of SaskatchewanUniversity of AlbertaUniversity of CalgaryUniversity of WaterlooUniversity of British ColumbiaChileUniversity of ChileKazakhastanKazakh National Technical UniversityThe NetherlandsDelft University of TechnologyPhilippinesAdamson UniversityCentral Philippines UniversityMapua Institute of TechnologyRizal Technology UniversitySiliman UniversityPolandSilesian University – ScholarshipsSouth AfricaEngineering Bursary ProgramUnited KingdomMaterial and Mechanical Engineering BursariesUnited States of AmericaCalifornia State Polytechnic University-PomonaCalifornia Polytechnic State University-San Luis ObispoCalifornia State University-Long BeachClemson UniversityGeorgia Institute of TechnologyLouisiana State UniversityNorth Carolina State UniversityPurdue UniversityTexas A&M UniversityTexas Tech UniversityUniversity of FloridaUniversity of HoustonUniversity of Texas at AustinAmerican National Red Cross – disaster reliefBlind Protection Society, ChileBoys and Girls ClubsBPTT Charity Program, TrinidadBukid Kabataan, the PhilippinesBusiness Committee for the Arts, USACalgary Health Trust, CanadaCenter for Excellence in Education, USACivil Engineering Research Foundation, USACumbria Community Foundation, the United KingdomDiscovery Science Center, CaliforniaFort Bend Education Foundation, TexasHabitat for Humanity – various chaptersInstitute of Race Relations, South AfricaJunior Achievement of the Greater Tri-Cities, WashingtonLeadership South CarolinaLord Mayor’s Charity, AustraliaMathcounts Foundation, USANational Action Council for Minorities in Engineering, USAOrphanage No. 2 in Gliwice, PolandSan Geronimo School, PeruShao Nian Meng Schools, ChinaSNS Foundation, IndiaTransparency InternationalUnited Way InternationalVolunteer Center North Texas60

This annual report is printed on Productolith Papers, a ForestryStewardship Council (FSC) certified product. The soy-based,Toyo inks used are an environmentally-friendly formulated inkapproved by the American Soybean Association and carry theSoyseal trademark.HSE Annual Report Work GroupJessica BohartBill BrownDonna CliftonJodi CochranSally FitzPatrickMary GravesEric HelmNancy KralikClaudia McQueenWill Rowan-RobinsonJohn RuudDawn StoutKaren VariJennifer Wishart61

Fluor Corporation6700 Las Colinas Blvd.Irving, Texas 75039www.fluor.comCopyright 2007 © Fluor Corporation.All rights reserved. Fluor, Managing Safety to Zero,the Zero Incidents and the HSE Pyramid are servicemarks of Fluor Corporation.62