Safety and 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 and reflect a company-wide commitment to the communities where EOG operates. Embedded in all aspects of EOG’s operations, this responsibility is shared by every employee throughout the United States, Trinidad, the United Kingdom, China and Canada.

EOG explores for and produces crude oil, condensate, natural gas liquids and clean-burning natural gas. EOG is recognized in the industry as innovative and creative, and as an organization that has a demonstrated track record of identifying and successfully extracting energy 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. For example, in its Pennsylvania Marcellus Shale operations, EOG has restored significant portions of well pads and, in doing so, has reduced the size of the pad to approximately one-third of the pad’s original 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 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, EOG takes the necessary steps to help safeguard the health and well-being of its employees, contractors and neighbors, as well as the communities where EOG employees live and work.

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

As part of its normal business operations, EOG monitors health, safety and environmental incidents and works continuously to improve its performance.

In addition, safety and environmental performance, including trends and industry comparisons, is reviewed with EOG’s senior management team throughout the year and with the Board of Directors at least annually. Proactive steps are taken to comply with legal requirements, prevent incidents and protect the environment.

EOG demonstrates its commitment to sound health, safety and environmental best 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 for Directors, Officers and Employees, 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 EOG’s Safety and Environmental Policy.

EOG also has a standing Compliance Committee that is responsible for implementing EOG’s Compliance Program and providing regular reports to the Audit Committee of the Board of Directors. EOG’s Compliance Program includes EOG’s Code of Business Conduct and Ethics for Directors, Officers and Employees, Code of Business Conduct and Ethics for Vendors and Contractors, Safety and Environmental Policy 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. EOG’s 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 Executive Vice President, General Counsel and Corporate Secretary; the Executive Vice President and Chief Financial Officer; the Vice President, Human Resources and Administration; and the Vice President, Audit.

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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.

EOG’s safety and environmental performance is also considered in evaluating employee performance and managing employee compensation throughout the organization.

EOG’s total recordable incident (injury) rate (TRIR) in respect of its U.S. exploration and production operations (and including both EOG personnel and contractors) was as follows:

  2012 2013 2014 2015
Total Recordable Incident (Injury) Rate
1.46 1.09 1.05 1.04

EOG utilizes the industry-standard measurement of injuries per 200,000 man hours worked in calculating TRIR.

In addition, as part of EOG’s ongoing commitment to environmentally responsible operations, EOG tracks and documents the volume and frequency of oil spills from its U.S. operations involving greater than five barrels as well as the volumes of spilled oil it is subsequently able to recover. EOG’s oil spill rate for its U.S. operations was as follows:

  2012 2013 2014 2015
Oil Spill Rate

(per MBoe of U.S. production during such year)
0.0140 0.0380 0.0120 0.0250
Oil Spill Rate

(per MBoe of U.S. production during such year- after taking into account volumes of spilled oil subsequently recovered)
0.0050 0.0062 0.0056 0.0136

EOG calculates the oil spill rate for a particular year by dividing the aggregate volume of oil spills involving greater than five barrels of oil from its U.S. operations during such year by EOG’s U.S. production for such year (on an MBoe basis).

EOG also has practices in place to manage, monitor and dispose of NORM (naturally occurring radioactive materials) associated with its operations in accordance with applicable regulatory 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 in order to protect the public, EOG employees and contractors and the environment. These plans support, and are components of, EOG’s corporate Crisis Management Plan, which addresses EOG’s overall corporate response. These plans are periodically reviewed and updated, and periodic drills are conducted to verify that EOG personnel are prepared to respond appropriately to any incidents which might occur.

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Pollution Prevention Infrastructure/Programs and Spill Contingency Plans

EOG staff 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 waste and hazardous materials pose to EOG employees, contractors, the community and the environment.

Pollution prevention is addressed by EOG through appropriate infrastructure, such as secondary containment on tanks and pipeline leak detection systems, and specific plans that are prepared and maintained by EOG staff across EOG’s operating areas. Developed with the primary goal of preventing the occurrence of pollution, these voluntarily implemented plans include site-specific response plans and cover spill prevention, spill control, spill countermeasures, waste management and flowline integrity.

EOG also works in conjunction with its operating partners and contractors to test and improve upon its emergency response capabilities. For example, EOG periodically conducts a multi-function drill to test its offshore emergency plans and capabilities in the United Kingdom. In addition, EOG periodically conducts multi-function drills to test its offshore and onshore emergency plans and capabilities in Trinidad. EOG conducts additional drills throughout the company to test plans and procedures associated with its operations.

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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. These training programs address operating procedures, safe work and prudent environmental practices, pollution prevention and control, emergency and incident response procedures, the use of specialized equipment (for example, thermal/infrared cameras to identify and manage emissions), orientation programs and supervisor training. Also included is regulatory and system-specific training.

Examples of EOG’s training programs include:

  • Online Safety Training:  Basic, mandatory safety training courses and a number of additional safety and operational courses are available online to all EOG employees and to the contractors who work at EOG’s 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 its operations.
  • Safety Leadership Training:  A two-day safety leadership training program for EOG supervisors, as well as consultants and contractor supervisors, provides in-depth analysis and application of safety procedures, with a focus 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.
  • Safety and Environmental Conferences:  EOG hosts regular, internal safety and environmental conferences for employees from across its operations. Topics are diverse, ranging from drug testing of contractors and employees and 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 operating area make presentations on recent safety and environmental developments in their respective areas.
  • Safety and Environmental Excellence Awards:  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.
  • Safety and Environmental Leadership Council:  This internal leadership team comprised of senior management and legal, operations and safety and environmental personnel reviews EOG’s safety and environmental performance and develops strategies to improve ongoing safety and environmental programs.
  • Contractor Performance:  EOG field personnel responsible for safety and environmental matters continually monitor contractor performance in the areas of safety and environmental compliance. In addition, EOG verifies that contractors have appropriate safety programs in place; includes contractors in regular “tailgate” meetings where safety and best practices are discussed; and provides initial, periodic and refresher safety and environmental training to its contractors.
  • Environmental Stewardship Training:  EOG conducts periodic training in all of its operating areas for employees and contractors in an effort to continually focus on EOG’s environmental stewardship.
  • Lease Operator Training Program:  EOG conducts in-house training for lease operators which includes safety and environmental topics as part of the program.
  • Infrared Camera Training and Certification:  EOG employees have been trained and certified to operate infrared cameras utilized in EOG field operations to proactively identify and manage emissions.

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Environmental Stewardship during Drilling Operations

EOG is conscientious about protecting the environment while conducting drilling operations. Surface disturbance at each well location is minimized through the use of directional and horizontal drilling. In addition, at many of EOG’s drill sites, more than one well is drilled from a single well pad. 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 operations.

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Environmental Stewardship during the Production Process

EOG employees continually 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 are 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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Contractors and Suppliers

EOG’s Code of Business Conduct and Ethics for Vendors and Contractors obligates EOG’s contractors and suppliers to provide their services to EOG in a safe manner and in compliance with applicable laws and regulations, including those relating to environmental, health and safety matters. In addition, by entering into EOG’s standard Master Service Agreement applicable to its U.S. operations, contractors agree to provide their services in a safe manner and in compliance with all such applicable federal, state and local laws and regulations.

As a means of reinforcing its Code of Business Conduct and Ethics for Vendors and Contractors, EOG periodically sends letters regarding business ethics and values to vendors, suppliers and other service providers who do business with the company.

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Recent Conservation Initiatives

In 2014, EOG joined the Western Association of Fish and Wildlife Agencies (WAFWA), and enrolled over 142,000 acres in WAFWA’s Lesser Prairie-Chicken Range-wide Conservation Plan. As of May 2014, there were 154 companies enrolled in the plan, which covers approximately 6.2 million acres across five states (Colorado, Kansas, New Mexico, Oklahoma, and Texas). Over the initial 12 months of implementation, the plan generated approximately $37 million in enrollment and mitigation fees for lesser prairie-chicken conservation. Companies enrolled in this plan have demonstrated a commitment to voluntary conservation by locating nearly 90 percent of the 100,000 acres of new development in lower-quality habitats outside of focal areas and connectivity zones. Mitigation under the plan also resulted in contracted commitments to restore and maintain high-quality habitats for the lesser prairie-chicken on over 55,000 acres within focal areas and connectivity zones.

In 2015, EOG, as a non-operating partner in four drilling platforms in the Gulf of Mexico, signed agreements to make these decommissioned platforms into artificial reefs. Artificial reefs provide a breeding ground and permanent home to a variety of sea life. In addition, because the “jacket” portions of drilling platforms are constructed of durable and stable materials which can support a thriving reef ecosystem, such structures are considered ideal artificial reefs. In addition to environmental benefits, converting such platforms into artificial reefs results in cost savings to EOG and its stockholders. These projects, which commenced in 2015, are expected to be concluded by the end of 2016.

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