Management System And Audits

DID TALISMAN RECORD ANY MAJOR REGULATORY CONTRAVENTIONS IN 2005?

No, there were no major health, safety or environmental non-compliance events, defined as charges laid by a recognized regulatory authority, at Talisman-operated sites in 2005.

EN16

Talisman trained its PM3 GAA workforce in safe work permitting procedures in 2005.

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 co-operatively 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 HSE risks and concerns. Environmental Audits In 2005, Talisman conducted regular environmental audits as a basis for continuous improvement and to confirm compliance with Talisman standards and regulatory requirements. Comprehensive environmental audits were completed at Turner Valley, Alberta, at all operating sites in Ontario, and across Talisman's midstream operations in North America. Sitespecific drilling waste management audits were also completed in Western Canada and several Canadian waste management service providers were audited in 2005.

In the North Sea, comprehensive environmental audits were completed at the mobile drilling rigs Ocean Nomad and Ocean Princess and at all operating sites, with the exception of Varg and Northern Producer, which were audited in early 2006 due to poor weather conditions. A focused waste management audit was conducted at the Nigg marine terminal. Talisman (Peru) also conducted an independent audit of nonoperated drilling operations in Block 64 and provided the operator with proposals for improved management of drilling wastes.

Environmental Awareness Training

In 2005, Talisman introduced new operationsfocused environmental awareness training for operations and maintenance personnel in North America. Training covered spill prevention and response, waste management, reclamation and remediation principles, and lease site vegetation management and surface water control. New environmental awareness training will be introduced in the North Sea operations in 2006.

Environmental Due Diligence

Talisman completed comprehensive environmental sensitivity and risk analyses in advance of a number of proposed asset acquisitions and new venture opportunities in Canada, the North Sea, the US, South America, Africa and Australasia.

Talisman develops HSE database to improve reporting.

Talisman worked throughout the year to significantly improve the processes and systems used in the collection, management, verification and reporting of HSE data across our global operations. Most significantly, Talisman developed a web-based reporting database used by local specialists to input, track and collate all HSE performance-related data in preparation of this Report. Talisman also invested considerable resources in mapping its systems and controls to ensure the highest level of HSE reporting rigour.