GEMI Survey Water Use, Issues & Management

1. GEMI SurveyWater Use, Issues & Management March 2001 Carl Wirdak Occidental Petroleum Corporation

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 Wastewater Receptors • One-half of the water discharged is treated on-site • 10% (primarily cooling water) is discharged untreated • Significant amount is treated in POTWs 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 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, ... Monitoring represents a significant burden 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. 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 Research & Development 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. Number of Companies Yes 5 10 Policy Concerning Water 7 5 No No Yes Water in Business Plans 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 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 don’t WATER USE, ISSUES & MANAGEMENT

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

18. Operations Markets 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 management’s radar screen? 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 Emerging Issues Envelope Cumulative Frequency Years to Impact 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. 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 “Hot” Advocacy Issues 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 WATER USE, ISSUES & MANAGEMENT