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2002 ChevronTexaco Corporate Responsibility Report Social IssuesHealth & Safety (Continued)Case Study >U.S. Refining’s Focus onSafety ContinuesMotor Vehicle Safety*Motor vehicle crashesper million miles driven54321099 00 01 02Company vehicle crash rate*1999–2001 data is Chevron, 2001 dataare combined Chevron and Texaco, and2002 data are ChevronTexaco.Total Recordable Incidents*Recordable incidentsper 200 thousand hours workedFuture Goals: Setting a Target for Incident ReductionOur ultimate goal is zero incidents. Our near-term target is to reducethe total work force recordable incident rate by more than 25 percenteach year, which would mean a rate of 0.25 injuries per 200,000 hoursworked by 2006.2.01.61.20.80.40.099 00 01 02ChevronTexaco: EmployeesChevronTexaco: ContractorsAmerican Petroleum InstituteIndustry Benchmark: EmployeesAmerican Petroleum InstituteIndustry Benchmark: Contractors*1999–2001 data are combinedChevron and Texaco. 2002 dataare ChevronTexaco.In the early 1990s, the U.S. government’s Occupational Health and SafetyAdministration issued new rules and guidelines covering “process safetymanagement” for the petrochemical industry. The move was a response to aseries of accidents the industry suffered from the mid 1970s to early 1990s.At ChevronTexaco, we implemented new procedures to address with therequirements of the new rules, and we also launched a complementarysafety and reliability initiative called Incident Free Operations (IFO) in themid 1990s. IFO aimed to determine the most common causes of seriousrefinery accidents and to systematically adopt practices to reduce their riskof occurrence. A team studied years of refinery incident data and identifiedtwo clear areas of concern: failures of pumps and furnaces, both standardequipment in every refinery.We then set about tackling the issues related to these pieces of equipment.In the process of analyzing incident data and root causes, we also appliedthe lessons we learned to a broader spectrum of issues. For instance, wedeveloped a successful risk-based inspection program for pumps and furnaces.We then applied the same principles to improving the reliability offixed equipment like vessels, columns, tanks and piping. Finding that ourrefineries followed different operating procedures for pumps and furnaces,we standardized those, as well as other basic procedures. To improve knowledgesharing, we created best-practice teams that communicate importantoperational lessons and help drive the standardization of our operating andmaintenance practices across the various facilities. Our refineries began toconsistently track their reliability and utilization rates, and used incidentdata to address emerging problems.Furnace Incidents in ChevronTexacoU.S. RefiningCost12010080604020056.315.082.954.83.0 4.2 1.03.4 4.1 6.5 1.1 0.8091 92 93 94 95 96 97 98 99 00 01 02Cost in millions of $U.S. (left scale)Number of incidents (right scale)Number ofincidents108642Our results in reducing incidentsdue to furnace mishaps havebeen dramatic. Losses due to furnaceshave decreased from 20 to25 percent of total refininglosses prior to 1996, to less than2 percent in 2002.While we have dramaticallyreduced serious refinery incidentsdue to pump and furnacefailures, a 1999 fire caused by aseparated valve at our refinery inRichmond, California, shows usthat the risk of incidents isalways present, and so is the© 2003 ChevronTexaco Corporation. All Rights Reserved.21