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Financial Report - Director's Report
 
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Environmental regulations
Caltex is committed to compliance with Australian laws, regulations and standards as well as minimising our overall environmental impact. In 2007, the Caltex Board formed a new subcommittee, the Occupational Health, Safety (“OHS”) and Environmental Risk Committee, to bring even greater focus to these issues. Caltex has a broad range of environment and risk management systems and processes to support our Environment Policy.

Environment, health and safety (EHS) performance indicators, targets and regular reports allow the directors of Caltex to gauge the group’s performance against these targets. In addition to the directors’ review, the Managing Director and Chief Executive Officer, general Managers and Business Unit Managers meet regularly to critically review EHS and risk performance and ensure that issues are adequately addressed.

In 2006, Caltex implemented an enterprise-wide risk management framework, to provide a common approach to identifying and assessing all significant risks including environmental ones. This framework identifies the risks, the controls in place and any improvements necessary. In 2007, these risks were again reviewed with quarterly reports prepared for the Board for each significant risk.

Caltex increased its focus on waste management in 2007. Comprehensive recycling programs were introduced at the refineries, expanding on opportunities to reuse and recycle waste materials. Caltex Australia Petroleum Pty Ltd signed the National Packaging Covenant – a voluntary agreement between industry and government to take shared responsibility for minimising the impact of consumer packaging.

In 2007, Caltex released its Climate Change policy and action plan. Caltex continues to participate in the greenhouse Challenge Plus Program, which requires public reporting of emissions and progress against abatement plans; and also disclosed data on its air emissions through the National Pollutant Inventory.

In 2007, Caltex participated in the Corporate Responsibility Index survey for the third time (reporting on the 2006 calendar year), and was again awarded a bronze star for its overall performance in the 2005 calendar year.

Compliance with environmental obligations
A total of 12 environmental protection licences were held by companies in the Caltex Australia group in 2006 for two refineries and 10 terminals.

21 non-compliances were recorded against these licence conditions in 2007 and there were four occasions where Caltex did not comply with environmental legislation, each of these were reported to government environmental authorities. These did not result in an infringement notice or fine. All non-compliances were investigated and corrective actions put in place.

No infringement notices for breaches of significant environmental regulation were received by Caltex in 2007.

Caltex was prosecuted for one breach of environmental regulation in 2007:

  • Caltex Australia Petroleum Pty Ltd was fined $12,000 for polluting waters and $15,000 for failure to notify, in the NSW Land and Environment Court following the discovery of a diesel leak from pipework at the Caltex depot in Moree. The penalties were paid to Moree Plains Shire Council to be used for community projects.

Caltex Refineries NSW Pty Ltd pleaded guilty in February 2008 to a charge of failing to operate its plant in a proper and efficient manner, when operating conditions led to the release of odorous gases from the Kurnell refinery flare between 23 and 29 December 2006. A hearing to determine the penalty will be held in the NSW Land and Environmental Court in May 2008.

Caltex is committed to achieving 100% compliance and all breaches of environmental regulations have been investigated thoroughly and appropriate action taken to prevent recurrence.
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