Carl Wirdak Occidental Petroleum Corporation GEMI Survey Water Use, Issues & Management March 2001

WATER USE, ISSUES & MANAGEMENT 2 Outline Survey Recap Background –Sources and uses of water –Discharges & compliance Commitment –R&D, people and planning Issues –Awareness & Impact –Advocacy Key Themes

WATER USE, ISSUES & MANAGEMENT 3 Survey Overview Intended to cover all activities –manufacturing, transportation/distribution, product formulation and use, etc. Survey response rate = 80% –27 companies responded to the survey –Not all companies completed all questions Broad industry coverage –Chemicals, semiconductor, oil/gas, consumer products, pharmaceuticals, food/beverage, forest products, energy, steel, transportation, etc.

WATER USE, ISSUES & MANAGEMENT 4 Source 50% rely on public/private water systems

WATER USE, ISSUES & MANAGEMENT 5 Water Discharges One-half of the water discharged is treated on-site 10% (primarily cooling water) is discharged untreated Significant amount is treated in POTWs Wastewater Receptors

WATER USE, ISSUES & MANAGEMENT 6 Usage ~40% of usage is related to heat transfer

WATER USE, ISSUES & MANAGEMENT 7 Key Theme Water, water everywhere, but barely a drop for drinking

WATER USE, ISSUES & MANAGEMENT 8 Measurement & Reporting Measurement appears driven by operational or compliance requirements Public reporting varies What does the publicly reported data mean?

WATER USE, ISSUES & MANAGEMENT 9 Discharge Monitoring Monitoring represents a significant burden Parameters include: BOD, pH, TSS, COD, Solids, Oil & Grease, Ammonia, TOC, Oxygen, Fecal coliform, Toxic Organics, Flow, Metals, BTEX, Temperature, Cyanide, TOC, Whole Effluent Toxicity,...

WATER USE, ISSUES & MANAGEMENT 10 Compliance 16 GEMI companies Mismanagement has consequences

WATER USE, ISSUES & MANAGEMENT 11 Key Theme Compliance can be slippery when wet

WATER USE, ISSUES & MANAGEMENT 12 Research & Development About half of GEMI companies are involved in water / wastewater R&D Common areas of investigation –minimization, recycling & processing: ultra-pure technology cooling water treatment re-injection (oil & gas) –contaminant fate & effect studies –wastewater treatment technology membrane filtration odor control metals removal biological treatment

WATER USE, ISSUES & MANAGEMENT 13 Water Specialty Personnel

WATER USE, ISSUES & MANAGEMENT 14 Key Theme The budget allocated to water is a drop in the bucket for most companies

WATER USE, ISSUES & MANAGEMENT 15 Water Policy and Planning Over one-half have water-related policy ~55% consider water in business planning, most at business unit level or higher ~75% have some form of explicit policy or plan addressing water Over 25% are in the No - No category NoYes Water in Business Plans No Policy Concerning Water Yes Number of Companies

WATER USE, ISSUES & MANAGEMENT 16 Awareness of Water Issues EHS staff personnel broadly perceive importance of water issues Outside of EHS staff, companies with some form of explicit water policy or consider water in business planning have 50% higher average awareness than those companies that dont

WATER USE, ISSUES & MANAGEMENT 17 Key Theme Without a policy or plan, awareness often goes down the drain

WATER USE, ISSUES & MANAGEMENT 18 Current Issues Operations appear more broadly impacted than markets Treatment and disposal of wastewater and storm water remain a key operations issue Supply-related issues are present Is there a potential gap on managements radar screen? Operations Markets

WATER USE, ISSUES & MANAGEMENT 19 Issue Impact Median impact of issue ranges from 2.5 to 7 years The most common pressing issue is the treatment and disposal of wastewater and storm water Supply-related issues have longer latency Years to Impact Cumulative Frequency Emerging Issues Envelope

WATER USE, ISSUES & MANAGEMENT 20 Key Theme Water issues are fluid

WATER USE, ISSUES & MANAGEMENT 21 Advocacy >50% of U.S. water issues have minor business impact Perceived understanding of issue generally high, but... Wide variation among GEMI members Water issues are on the advocacy agenda, but generally ranked at middle level

WATER USE, ISSUES & MANAGEMENT 22 Hot Advocacy Issues Disposal Cost of treatment/disposal Effluent guidelines Mixing zones Pharmaceuticals in water Remediation Site discharge standards Storm water TMDL UIC Supply & Other Endangered species Wetlands WQ standards Cooling water intake structures Supply availability Supply pricing Treatment of supply

WATER USE, ISSUES & MANAGEMENT 23 Key Theme Advocacy efforts go with the flow

WATER USE, ISSUES & MANAGEMENT 24 Key Themes Water, water everywhere, but barely a drop for drinking Compliance can be slippery when wet The budget allocated to water is a drop in the bucket for most companies Without a policy or plan, awareness often goes down the drain Water issues are fluid Advocacy efforts go with the flow