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2002 <strong>Chevron</strong>Texaco Corporate Responsibility Report Environmental IssuesWaterWasteApproach: Conserving a Natural ResourceAvailability of and access to fresh water is one of the world’s most pressingchallenges. <strong>Chevron</strong>Texaco and other energy companies use relativelylarge volumes of both fresh water and sea water in their operations suchas for oil and gas drilling and productionas well as in processingand manufacturing operations, forcooling and steam generation. Ouruse of fresh water can affect localecosystems and communities, particularlyin places where it is scarce.<strong>Chevron</strong>Texaco also dischargesSteven Carter and Mike Carter take water from operating facilities andwater samples at Richmond Refinery from oil and gas production. Waterwetlands in California.sometimes resides in undergroundreservoirs with oil and gas. Whenthe oil and gas are extracted, water also may be extracted. This “producedwater” is either reinjected into the subsurface it came from or istreated and discharged. If the water discharged from our operations isnot adequately treated, it can negatively affect the environment.<strong>Chevron</strong>Texaco requires its business units to evaluate their use of andimpacts on all natural resources and to identify and implement conservationopportunities. At many of our facilities, we track discharges towater and take steps to minimize the environmental and health risksassociated with those discharges.Some of our facilities have implemented process changes designed tominimize the use of fresh water, particularly where supplies are limited.For instance, our California refineries in Richmond, and El Segundo,use “reclaimed water,” which is treated domestic sewage, instead of freshwater, for cooling in the manufacturing process. Other <strong>Chevron</strong>Texacorefineries around the world are investigating water reuse opportunities.The company also continually looks for ways to minimize the effects ofdischarged water and, in some cases, put it to beneficial use. For example,in California’s Kern River region, where fresh water is limited, thecompany’s upstream operations provide appropriately treated dischargedwater to a local utility for agricultural irrigation.Future Goals: Developing a Comprehensive Strategy<strong>Chevron</strong>Texaco’s upstream operating companies are developing a comprehensivestrategy to manage produced water. The strategy will addressreinjection of produced water, minimizing the environmental and socialimpacts, as well as the potential beneficial uses of discharged water.47Approach:Waste Management Planning<strong>Chevron</strong>Texaco requires its businessesto continually improveprocesses to minimize pollutionand waste. Our business unitsdevelop waste management plansAt the Minas Field in Indonesia, that track the wastes they produce,follow a waste minimiza-a tractor ploughs soil to increaseair penetration causing microbes tion hierarchy (reduce/recycle/to digest impurities.treat/dispose), comply with allregulations and, when local regulationsdo not exist, apply appropriate waste management practices.<strong>Chevron</strong>Texaco’s capital project management process also includes specifictools and activities that integrate pollution prevention and wasteminimization concepts into the designs for its projects so that they generatefewer and less hazardous wastes. We do not track waste volumesor types corporatewide.<strong>Chevron</strong>Texaco has gained expertise in upgrading and building newwaste facilities, particularly in places where waste management is complicatedby lack of infrastructure. We also participate in a number ofindustry forums, including the International Association of Oil andGas Producers and the Petroleum Environmental Research Forum, todevelop and share improved waste management practices within theindustry. Examples of recent or planned investments in waste managementfacilities include:> Sumatra, Indonesia: <strong>Chevron</strong>Texaco recently began operating severalmajor facilities to improve management of oily wastes, including aslurry injection facility and a bioremediation unit to treat oily soils andwastes. Since 2000, the company has spent more than US$50 millionon the design, construction and operation of these facilities, and weplan to continue to upgrade waste facilities there in 2003 and 2004.> Kazakhstan: the company’s joint venture Tengizchevroil has initiatedconstruction on a US$16 million integrated waste management facility.The facility will include a recycling area, a landfill and a wastetreatment area.> Venezuela:in 2002, we commissioned a US$1.8 million facility designedto handle a broad spectrum of wastes from the Boscan oil field.© 2003 <strong>Chevron</strong>Texaco Corporation. All Rights Reserved.