Environmental Stewardship
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EOG’s Commitment to Health, Safety and the Environment

EOG is committed to responsible and safe exploration and production practices. Respect for the environment and a focus on adherence to sound health, safety and environmental practices are important facets of EOG's corporate culture. Embedded in all aspects of its operations, this responsibility is shared by every employee throughout the United States, Canada, Trinidad, the United Kingdom and China.

As one of the most active drillers in both the United States and Canada, EOG explores for and produces clean burning natural gas, as well as crude oil, condensate and natural gas liquids. EOG is recognized in the industry as innovative and creative, an organization that has a demonstrated track record of identifying and successfully extracting natural resources which have become increasingly more challenging to capture and produce. The company continually evaluates new technologies and environmental protection measures to improve operating practices and reduce its environmental footprint.

As the company strives to continually improve both its techniques and technology, employees maintain a sharp focus on sound health, safety and environmental practices and procedures. EOG is a highly collaborative organization, where employees constantly learn from and look out for each other. EOG employees adhere to rules and regulations not only because it is required by law, but, more importantly, because it’s the right thing to do. On a daily basis, the organization takes the necessary steps to safeguard the health and well-being of employees, neighbors and customers, as well as the communities where employees live and work.

A culture that promotes socially responsible actions is instrumental to EOG past and future success. It is a key component in executing the EOG business strategy, and it will continue to be just as important in the future.

As part of normal business operations, EOG tracks health, safety and environmental incidents and works continuously to improve its performance. EOG’s operating areas have specific environmental protection and compliance goals. These are taken into consideration along with the company’s overall environmental performance during regular performance appraisals of EOG managers with operational responsibilities. Environmental performance is reviewed with EOG’s senior management team and Board of Directors on a regular basis. EOG demonstrates its commitment to sound health, safety and environmental best management practices through policies, programs and business processes that include:

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Safety and Environmental Policies

Every employee is familiar with EOG’s Code of Business Conduct and Ethics, which covers a wide range of business practices and procedures.

EOG’s Code of Business Conduct and Ethics includes a section on Workplace Safety and Security and Protection of the Environment. In addition to the requirements in this policy statement, specific objectives and activities are spelled out in the Safety and Environmental Policy.

EOG has a standing Compliance Committee that is responsible for implementing the Compliance Program and providing regular reports to the Audit Committee of the Board of Directors. EOG’s Compliance Program includes the EOG Code of Business Conduct and Ethics and other policies related to legal compliance and ethics, together with related employee communications, education, training and compliance monitoring, including the investigation and resolution of complaints and inquiries. The Compliance Program, which includes strong “non-retaliation” policies, is intended to ensure that EOG’s business is conducted with high ethical standards and in compliance with the letter and spirit of the law. The standing members of the Compliance Committee are the Vice President, General Counsel and Corporate Secretary; the Vice President and Chief Financial Officer; the Vice President, Human Resources and Administration; the Vice President, Audit; and the Controller, Compliance and Controls.

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Safety and Environmental Management

Across the company, EOG has implemented programs and business processes for managing safety and environmental matters with a focus on the assignment of responsibilities, sound risk management and decision-making, efficient and cost-effective planning and operations, legal compliance and continuous improvement of programs and practices.

Our safety and environmental management processes are based on a goal-setting philosophy. The company sets safety and environmental expectations and provides a framework within which management can achieve safety and environmental goals in a systematic way.

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Safety and Environmental Training Programs

At EOG, knowing what to do and how to do it is critical to strong, consistent performance. That’s why the company provides initial, periodic and refresher safety and environmental training to employees, contractors, visitors, vendors and other personnel who may work at or visit EOG’s facilities. This training addresses operating procedures, safe work practices, emergency procedures, orientation programs and supervisor training. Also included is regulatory and system-specific training.

Examples of the training programs include:

  • Online Safety Training:  Basic, mandatory safety training courses are available online to all EOG employees and contractors who operate its facilities. To maintain an emphasis on safety, refresher programs are offered on a regular basis.
  • Safety Team Building:  EOG provides safety team building training for contract crews across the scope of its operations.
  • Safety Leadership Training:  A two-day safety leadership training program for all EOG supervisors, as well as consultants and contractor supervisors, provides in-depth analysis and application of safety procedures, focusing on how accidents can be prevented. A core element of the program is gaining an understanding of EOG’s commitment to safety matters. The program is updated regularly so that participants find it insightful and instructive each time they attend a session.
  • EOG Senior Management Safety Training:  Implemented in the spring of 2007, the purpose of the safety program for operating area senior management is to reinforce EOG's safety practices and goals at the highest level in the organization.
  • Safety and Environmental Conference:  Each year, EOG hosts an internal two-day safety and environmental conference for employees from across its operations. Topics are diverse, ranging from drug testing of contractors and employees to creating waste management plans to discussions regarding flowline integrity and maintenance plans. Special sessions, such as those dealing with revisions to EOG’s safe practices manual, are included. In addition, employees from each of operating area make a 20-minute presentation on recent safety and environmental developments in their respective region.
  • Safety and Environmental Excellence Awards:  Every year, EOG recognizes projects generated by operations employees that further enhance the environment or the safety of EOG’s workplace and the community with Safety and Environmental Excellence Awards. The winning entries demonstrate the positive impact new ideas are having on EOG’s business by promoting and increasing awareness of safety and environmental matters.
  • Contractor Performance:  EOG monitors and tracks contractor performance in the areas of safety and environmental compliance. Statistics, including trends and industry comparisons, are presented to EOG senior management on a regular basis and presented to the EOG Board of Directors at least annually. EOG verifies that contractors have appropriate safety programs in place, and includes contractors in regular “tailgate” meetings where safety and best practices are discussed. Field personnel assigned to the safety and environmental and operations functions continually monitor contractor performance.

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Spill Prevention Program and Spill Contingency Plans

EOG employees continuously work to identify waste and hazardous materials and to understand and manage their associated risks. The company’s goal is to progressively eliminate the risks that wastes and hazardous materials pose to EOG employees, contractors, the community and the environment.

Pollution prevention is addressed by EOG through various plans that are prepared and maintained by employees across its operating areas. Developed with the primary goal of preventing the occurrence of pollution and other contamination, they include spill prevention and countermeasure plans, waste management plans and flowline integrity plans. EOG also seeks to prevent pollution by minimizing air emissions. Experienced personnel continually develop innovative ways to minimize waste and air emissions throughout EOG’s operations.

EOG works in conjunction with regulatory agencies to test and improve upon its emergency response capabilities. For example, in accordance with the National Preparedness for Response Exercise Program, EOG volunteered to conduct a Command Post Exercise to simulate a possible discharge of oil at a location called Nine Mile Point in Aransas Bay, Texas. EOG coordinated the drill with the United States Coast Guard, the Texas General Land Office and other state and local stakeholders in the Corpus Christi, Texas area.

The primary focus of the drill was the execution and evaluation of command control processes designed for the effective implementation, management and accountability of simulated field resources that may be utilized during an emergency response. In addition, it allowed for the effective evaluation of the United States Coast Guard Sector Corpus Christi Area Contingency Plan and industry response plans. Under the National Preparedness for Response Exercise Program requirements, the completion of this industry-led exercise satisfied Oil Pollution Act 90-mandated federal oil pollution response exercise requirements.

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Crisis Management Plan

Each of EOG’s operating areas develops and maintains a written plan that provides a framework for rapid and effective response to emergency situations. These plans tie into the corporate Crisis Management Plan, which addresses EOG’s overall corporate response. This framework helps provide a response to an incident that protects the public, EOG employees and the environment. Each operating area’s plan and the Crisis Management Plan are frequently updated and periodic drills are conducted to verify that EOG personnel are prepared to respond appropriately to any incident which might occur.

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Environmental Stewardship during the Well Construction Process

EOG is conscientious about minimizing the impact that drilling operations have on the environment. Surface disturbance at each well location is minimized through the use of directional and horizontal drilling. Often the same location is used for more than one well. After wells are drilled, sites are often further downsized for use during production operations. When acreage is released because it is no longer needed, it is reclaimed to its natural state through re-vegetation or maintained pursuant to the terms of the specific lease agreement. EOG employees continually seek innovative ways to improve environmental stewardship during drilling and production processes.

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Environmental Stewardship during the Production Process

EOG employees consistently evaluate and implement new technology that complements existing production operations. For example, EOG utilizes Supervisory Control and Data Acquisition (SCADA) systems at many facilities. Designed with multiple safety alarms, the SCADA systems monitor facilities remotely using a combination of detection criteria, including flow rate and differential pressure comparisons, high/low pressure assessments, tank level measurements and similar measurements. If an alarm is triggered, the operation can be shut down and alerts sent to EOG personnel. In addition to safeguarding the environment and improving safety, these systems improve employee and overall company operating efficiency.

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Suppliers

EOG periodically sends letters reinforcing business ethics and values to vendors, suppliers and other third parties who do business with the company. Additionally, EOG’s Master Service Contract states:

“Contractor warrants……that all work or services will be performed or rendered safely and in a good and workmanlike manner; that Contractor has adequate equipment in good working order and fully trained personnel capable of efficiently and safely operating such equipment and performing services for Company; that Contractor regularly conducts training and safety programs; that all materials, equipment, goods, supplies or manufactured articles furnished by Contractor in the performance of the work or services shall be of suitable quality and workmanship for their intended purposes, in accordance with specifications, and shall be free from defects; and that Contractor will not employ in any work for Company any employee whose employment violates applicable labor laws. Contractor further covenants, warrants and represents that all work performed by it hereunder shall be conducted in accordance with the most stringent safety regulations, precautions and procedures and by employing all necessary or desirable protective equipment and devices, whether suggested or required by safety associations, government agencies, municipalities, or otherwise. Any breach of this safety covenant shall be grounds for immediate termination of this Agreement.

“In the performance of work for Company, Contractor agrees to comply with all laws, rules, regulations and orders, be they federal, state or local, which are now or may hereafter become applicable to Contractor's business, equipment or personnel engaged in operations covered by this Contract.”

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Wetland Mitigation Bank

In 1998, EOG established a 403-acre mitigation bank near Gladewater, Texas, with approval from the United States Army Corps of Engineers, Texas Railroad Commission, United States Environmental Protection Agency (EPA) and United States Fish and Wildlife Service.

A mitigation bank, according to the EPA’s definition, is a wetland, stream, or other aquatic resource area that has been restored, established, enhanced, or (in certain circumstances) preserved for the purpose of compensating for unavoidable impacts to other aquatic resources under the applicable regulation.

For example, when EOG drills a well in the nearby Carthage, Texas area that requires a Corps of Engineers permit, the company can draw on the credits from the Gladewater mitigation bank, which in turn requires that certain measures be undertaken that are advantageous to the Gladewater raw land. As part of this program, EOG has built a duck pond and made other improvements to the Gladewater acreage, which have, ultimately, enabled the owner to plant hardwood trees in certain areas.

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