Commitment

Wherever we operate, we manage wastes carefully to avoid contamination of soil, groundwater and freshwater and marine ecosystems. Our approach involves proper handling and interim storage, manifesting, recycle and reuse where feasible and appropriate final disposal commensurate with the nature of the waste material.

Waste Management Initiatives

Several waste management contractors used by Talisman in Canada were assessed in 2003. These assessments focused on regulatory compliance, adequacy of operating practices and consistency with Company expectations.

Waste management practices at the Flotta marine terminal were audited in 2003 in an effort to identify how waste handling and management could be be improved. Improved waste segregation practices were implemented at the Nigg and Flotta terminals.

Talisman (UK) continues to progress facilities’ modifications to improve the separation of oil and produced water prior to produced water discharge from the offshore production sites. A new chemical treatment program at Piper resulted in a 50% reduction in the amount of oil in the produced water discharged from that site.

Wellsite Reclamation and Contaminated Site Remediation

Talisman supports a wide range of environmental and development programs including the Alberta Ecotrust Foundation, which provides financial support for grassroots environmental research.
Talisman spent approximately $10 million on wellsite abandonment and land surface reclamation last year in Western Canada. Approximately 170 inactive wells were abandoned in Canada and eight offshore wells were abandoned in the North Sea in 2003. To put these numbers in context, Talisman’s current gross producing well counts in North America and the North Sea are 9,733 and 327, respectively.

In 2003, Talisman continued to assess and remediate historic soil and groundwater contamination at our older acquired fields, particularly in Turner Valley. In Canada, we spent over $25 million on this activity over the last three years. Work includes an ongoing voluntary program to assess and reclaim all of our decommissioned earthen flare pits in Western Canada. To date, about 350 of 520 pits have been fully reclaimed.

The Diamond Valley Soil Treatment Facility, located in the Turner Valley field treated approximately 10,000 tonnes of contaminated soil in 2003, to be used as clean backfill in ongoing remediation projects in the area. The treatment facility plays an important role in minimizing the amount of contaminated soil disposed to landfill.

Canadian Reclamation and Remediation
Expenditures ($/boe)1

2001 2002 2003

0.16 0.20 0.19
1 Includes wellsite reclamation and all contaminated site assessment and remediation work.