ConocoPhillips
2006 Sustainable Growth Report2006 Sustainable Growth Report
Improve Energy and Material Efficiency

Material Efficiency

Our approach to waste management is based on a simple set of priorities: first, eliminate waste where possible, then reuse, recover, recycle and, as a last resort, dispose of it safely.

In 2006, we introduced a global Waste Management Standard which requires all operations to evaluate the waste they generate and the suitability of the waste facilities they use. Businesses can only use commercial waste contractors that meet our standards for operational integrity, have environmental protection measures in place, implement monitoring and institutional controls, and comply with relevant regulations. The Waste Management Standard also requires businesses to develop comprehensive management plans for companyowned or -operated waste units. The standard applies to all our operations worldwide. In ventures where we are not the operator or hold a minority interest, we will strive to influence our partners to implement similar programs.

In implementing our standard, we developed a commercial waste management program to track our waste-disposal activity. In the United States, we have compiled a list of company-approved commercial waste management facilities. We inspect potential new waste sites and periodically audit those we choose. We prefer contractors that provide cost-effective commercial alternatives to landfill disposal, but when this is the only option, we use sites that are operated to strict environmental standards.

The amount of waste we generated is relatively similar to years past, increasing slightly with our growth in operations. In 2006, 5 percent of our total waste was categorized as hazardous – this includes any material that is potentially harmful, toxic or requires special treatment. (figs. 16 & 17) The quantity of hazardous waste managed by ConocoPhillips’ businesses in 2006 was 64,318 metric tons, an increase of 2 percent from 2005. The increase was mainly in the exploration and production sector due to the addition of the Burlington Resources assets, partially offset by refining’s reduction in maintenance-related waste, increased reclamation of residuals and reclassification of some waste streams as recycled waste.

Of the remaining 2006 waste, 80 percent was nonhazardous and 15 percent was recycled material.Waste that is designated as nonhazardous by a regulatory agency is disposed of conventionally. Recycled materials are the residual materials that are not sold as product or disposed of as waste, but reused, reclaimed or recovered for beneficial use.

We generate most waste from our refining operations, in which major shutdowns and varying maintenance schedules can result in significant fluctuations in waste generation from year to year. This business sector also is where the biggest opportunities for waste reduction and elimination occur.

For example, during 2006 our U.S. refineries recycled 6,177 metric tons of spent processing catalyst for metals recovery.

In exploration and production, changes in drilling activity levels also can cause periodic variations in the quantity of waste generated.

In 2005, waste management experts from our U.S. refineries attended a Best Waste Practices Conference in Ponca City, Oklahoma, to share ideas for new procedures and potential cost reductions on environmental issues related to air emissions, management of solid waste and wastewater, and remediation techniques.

collecting used batteries
In Shenzhen, China, we sponsored a local school-based campaign to collect used batteries. In just a month, students from seven schools collected 50,000 batteries for specialized disposal. Battery collection bins were subsequently placed in the schools and communal living areas.
Our annual Stamp Out Waste campaign, first launched in 2003, rewards employees who come up with good ideas to reduce waste. Ideas are then shared throughout the company. In 2006, the campaign attracted 69 submissions from individuals and teams worldwide and generated one-time savings of $12.5 million and annual recurring savings of $6.7 million.

The projects were rated against the pollution prevention hierarchy of waste reduction, recycling, reuse or safe disposal, with waste reduction the priority. Cost benefit, risk reduction, innovation and applicability to other facilities also were considered. A higher value was placed on projects that already had been implemented, although four awards were given for good ideas.

The winning submissions were projects already implemented to recover oil from refinery tank bottom sludge, reduce fuel consumption in ocean tankers and company aircraft, optimize gas field operations, recover unpumpable crude oil and recycle obsolete electronic equipment. Awards also were given for ideas to recover drilling mud, recycle scrap steel, conserve and recycle print-shop materials and use refinery facilities to clean up water from marketing and transportation operations.

Around the world, we manage the disposal of surplus or obsolete electronic equipment in a process known as e-cycling. As part of this process, we negotiate contracts with vendors for the remarketing and recycling of electronic equipment, such as computers, televisions, microwave ovens, copiers, fax machines and telephones which no longer have value to ConocoPhillips but may have for others.

In many locations, we have partnered with our recycling contractor to provide similar services for the public using our locations as collection points. Our employees help their local communities collect household waste and recyclable material that cannot be disposed of in regular household garbage.

local community events
Many of our refineries host household hazardous waste collection events for their local communities.
For example, the Lake Charles refinery in Louisiana holds an annual “Trash Bash” where items collected included computers, paint, used tires, old oil, car batteries, antifreeze and small appliances. Discarded paint is separated by type, mixed together onsite and donated to local schools and charities. In Bartlesville, Oklahoma, 50 volunteers took part in a similar event which filled two tractor-trailers with discarded electronic equipment and helped collect over 9 metric tons of hazardous waste from the community. And, at the Wood River refinery in Illinois, more than 400 carloads of waste, such as used oil, household chemicals, paint and electronic equipment were brought in by the public.

Decommissioning

We aim to manage all projects, products and processes throughout their life cycles in a way that protects safety and health and minimizes environmental impact. In doing so, we strive to find new uses for obsolete or redundant assets.

When we retired the Polar Alaska and Polar California – the last single-hulled tankers in our fleet – they were converted to floating production, storage and offloading vessels, extending their lives by at least 15 years. The tankers will be converted to work in Asia at offshore fields, separating water and gas from crude oil production and offloading the oil for shipment in tankers.

Ekofisk I Cessation

Although our Ekofisk field in the North Sea will remain in production for many years, we already have started decommissioning redundant structures. Stakeholder consultation was a key part of the decision-making process in determining the Ekofisk I cessation plan.

The plan involves the removal of 15 steel platforms, including the Ekofisk Tank topsides. Removal of gangways, flares, tripods and other light structures already has begun and is due for completion in 2009. The Ekofisk Tank topsides, some 25,000 metric tons, have been removed and approximately 98 percent have been recycled. The larger platforms should be removed by the end of 2013.

The material is sorted, then processed in a facility equipped to handle any chemicals and residual oil. Vessels are scanned for potential radioactivity before further processing. Most of the steel is sent to a local works for smelting to make reinforcing steel. Other metals and grades of steel are sent for specialist processing at facilities throughout Northern Europe. The goal is to recycle 96 percent of the material.

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2006 Waste Profile Total Hazardous Wastes Generated

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Involving Stakeholders in Cessation Plans

Ekofisk Tank cessation activity
Reviewing the Ekofisk Tank cessation activity are a panel of scientists. Pictured here are Jacob de Boer, Institute for Environmental Studies (IVM) at the Vrije Universiteit (VU) in Amsterdam; Eileen Arctander Vik, Aquateam, Norway; Paul E. Kingston, Herriot-Watt University, United Kingdom; Günter F. Clauss, Berlin University of Technology; and Torgeir Bakke, NIVA, Norway.
In developing the Ekofisk Tank cessation plans, we involved key stakeholders, including academia, environmental nongovernmental organizations, government, industry groups and the media. To facilitate dialogue, we produced presentations, newsletters and a Web site explaining the proposals. Ekofisk Cessation

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