GEMI Survey Water Use Issues Management March

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

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 2

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 3

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

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 5

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

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

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

Discharge Monitoring Parameters include: BOD, p. H, 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 9

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

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

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 12

Water Specialty Personnel WATER USE, ISSUES & MANAGEMENT 13

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

Water Policy and Planning • Over one-half have water-related policy • Over 25% are in the “No - No” category Yes 5 10 No • ~75% have some form of explicit policy or plan addressing water Policy Concerning Water • ~55% consider water in business planning, most at business unit level or higher Number of Companies 7 5 No Yes Water in Business Plans WATER USE, ISSUES & MANAGEMENT 15

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 16

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

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? Operations Markets WATER USE, ISSUES & MANAGEMENT 18

Issue Impact • The most common pressing issue is the treatment and disposal of wastewater and storm water Emerging Issues Envelope Cumulative Frequency • Median impact of issue ranges from 2. 5 to 7 years • Supply-related issues have longer latency Years to Impact WATER USE, ISSUES & MANAGEMENT 19

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

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 21

“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 22

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

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 24