Appendix
Health, Safety and Environment (HSE) Data Assumptions
The HSE metrics presented in this report are based on the following assumptions: In the environmental, safety and spills data tables in this appendix, data are presented for three geographic regions: North America, Europe and Asia Pacific/Other. “Other” includes Venezuela, Middle East and Africa. The top contributing business sectors columns show the top three sectors in the company for that parameter, plus a category named “Other,” which includes all other sectors combined. For each indicator, the top three sectors may be different, as can the sectors in the “Other” category. The HSE pro forma data for 2002 is presented as if the Conoco/Phillips merger had occurred on January 1, 2002. Data reflecting operation of Burlington Resources assets in the United States, Canada, China, United Kingdom and Algeria are included for nine months of 2006, as these assets were acquired March 31, 2006. Data reflecting operation of the Wilhelmshaven refinery in Germany are included for 10 months of 2006, as this asset was acquired in February 2006. All reported HSE data are based on operated assets only. Environmental data are represented as 100 percent ownership interest regardless of actual share owned by ConocoPhillips. Data is reported in metric tons. Reported data for air emissions, hydrocarbon spills and waste are broken down into two business sectors: Exploration and Production (E&P) and Midstream, and Refining and Marketing (R&M). Select environmental data for 2003 through 2006 is provided. Total E&P and Midstream emissions are normalized using barrels of oil equivalent (BOE) as a factor of production operations. For gas production and liquefied natural gas, 6,000 cubic feet of gas is assumed to be equal to one BOE. For gas processing plants, the BOE normalizer includes only liquid production of ethane, propane, butane and condensate. The R&M normalized data are presented for refining only, which is the major sector of R&M operations. Refining data are normalized based on million barrels of oil equivalent (MMBOE), which represents the number of barrels of crude oil and other hydrocarbon feedstock input to the refineries. Various restatements to previously reported data for prior years have been reflected to provide the most accurate data. For example, carbon dioxide emissions that are contractually owned, but do not result from assets operated by the company, were included in prior years. All periods have been restated to exclude these emissions from our accounting of operated emissions and are being accounted for as equity emissions, which will be included in future reports. Environmental Data Quality and Assurance Guidelines, calculation tools and training are provided to ConocoPhillips business units for calculating and reporting environmental incidents, releases and emissions. The businesses are accountable for reported data completeness and accuracy and for consistency with accepted reporting practices. A businesslevel data submission, review and approval process is implemented to provide accountability for the results and to ensure the best possible data quality. Ernst & Young reviewed the data processes used for gathering the 2006 greenhouse gas data, including guidelines, calculation tools, database systems, training materials and quality assurance processes employed, and provided a statement of their findings on page 67 of this report. In addition, the corporate health, safety and environment (HSE) function verifies and validates the reported data. Internal reviews of 2003 and 2006 metrics and data collection processes employed have been performed by the company’s corporate HSE auditors. Greenhouse Gas Data Scope All reported HSE data are based on operated assets only. Environmental data are represented as 100 percent ownership interest regardless of actual share owned by ConocoPhillips. The company intends to also report equity greenhouse gas emissions in future years and has undertaken the collation of this data from nonoperated joint ventures in which it has a 20 percent or greater equity interest or from joint ventures in which our equity share of GHGs equal or exceed 50,000 metric tons on a CO2 equivalent basis, regardless of equity ownership percentage. ConocoPhillips reported total greenhouse gas emissions include carbon dioxide (CO2) emissions from operations (which includes the emissions associated with electricity and steam sold by the company), CO2 emissions from purchased electricity, CO2 emissions from purchased steam, and methane (CH4) emissions from operations in terms of CO2 equivalent. Carbon dioxide from operations, the major component of total GHG emissions, includes emissions from process operations such as exhaust from combustion sources and vented CO2. The scope of CO2 reporting does not include emissions associated with products sold and company-operated transports, except for marine vessels. Additional gases that are considered GHGs under the Kyoto Protocol are accounted for by the company but are not included in the total greenhouse gas emissions reported because such emissions are negligible. Businesses have reported small quantities of nitrous oxide (N2O) and sulfur hexafluoride (SF6) from their operations. Businesses report no emissions of the other Kyoto gases hydrofluorocarbons (HFC) and perfluorocarbons (PFC). Reported greenhouse gas emissions do not include any adjustments for intracompany transfer of steam and electricity generated by one plant and transferred to another. Therefore, CO2 from imported electricity and steam reported by the receiving plant also was accounted for by the plant which exported it. This condition exists in two known situations with the potential of 1.25 million metric tons of GHG emissions being counted by two operated facilities. This represents 2 percent of total company GHG emissions. A method of accounting for intercompany transfers is being considered. Emissions Calculations The approaches used by the company’s businesses in reporting emissions data for greenhouse gases and other compounds are selected from combinations of the following principles that are listed in order of accuracy.- Undertake continuous emission monitoring, and with measured exhaust gas flow, compute instantaneous mass emission rate and integrate over the reporting period.
- Undertake periodic monitoring of exhaust gas flow and composition and estimate mass emission over the reporting period using plant operating records.
- Estimate emissions using a mass balance and process flow knowledge.
- Estimate emissions using factors provided by the manufacturer’s specifications, local regulatory authority, AP-42, API Compendium or other industry standard.
