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Effectiveness in Health, Safety and Environmental (HSE) standards is an essential part of achieving efficiency and profitability in the oil and gas business. Talisman strives to achieve continuous improvement in these areas and is committed to: creating a safe work environment; working to minimize the environmental impacts of its activities; working cooperatively and transparently with local communities and governments with respect to the Company’s health, safety and environmental activities; regular review and reporting of environmental and safety performance; and prompt and effective response to health, safety and environmental risks and concerns.
In 2004, we reviewed and substantially revised our safety and loss control standards governing geophysical, drilling and production operations in North America. We also introduced new, and revised existing, safety and environmental guidelines to clarify expectations and promote effective performance in areas such as ground disturbance, environmental planning for construction projects, disposal of invert drill cuttings, storm water discharge from operating sites, water well sampling, decision-criteria for watercourse crossings and herbicide use.
Talisman endeavours to operate in full compliance with HSE regulatory requirements. This was largely achieved in 2004. While there were some relatively minor infractions such as short-term emission exceedences due to plant upsets and minor oil staining on leases, there were no major health, safety or environmental non-compliance events at Talisman-operated sites in 2004.
Talisman’s Colombian subsidiary, Talisman (Colombia), which formerly held a non-operated interest in the Acevedo Block Association Contract, was sanctioned approximately $54,000 by a Colombian environmental authority, Corporacion Autonoma Regional del Alto Magdalena for environmental damage in the Acevedo Block during the time that Talisman (Colombia) was a non-operator. The operator was also sanctioned. Talisman (Colombia) was sanctioned as the original record holder of the environmental license, which was in the process of being assigned to the operator at the time the environmental damage occurred.
We regularly conduct safety and environmental audits at our operated facilities as a basis for continuous improvement and to assess compliance with Company standards and regulatory requirements. Where audits identify significant deficiencies, improvements are made to the management framework, deficiencies are tracked and follow up work is monitored.
In 2004, Talisman completed environmental due diligence work in advance of asset acquisitions in New York State. We also completed environmental sensitivity and risk analysis in advance of acquisitions in Alaska. We audited the safety management systems of key contractors and we also completed comprehensive environmental audits at Warburg, Chauvin, Monkman and Appalachia.
HSE due diligence work was completed in advance of acquiring an operated working interest in the offshore Galley field in the North Sea. We also completed waste management audits at the Claymore, Piper and Clyde platforms and radiological audits at the Piper, Claymore, Beatrice, Buchan, Clyde and Nigg facilities. We also completed comprehensive environmental audits at our onshore marine terminals and at seven of nine offshore installations.
International audit work of significance included the completion of waste management audits at our Malaysian offshore drilling and production operations and the onshore supply base. We also conducted verification audits during seismic surveys in Qatar and Trinidad to confirm compliance with terms of project environmental approvals and accepted best practices.