> education and awareness  Spill prevention workshops were held at selected operating sites in the Upstream business. The sessions identified spill prevention opportunities, including improved surveillance and risk assessment tools, which were incorporated into facility environmental business plans. In the Downstream and Chemicals businesses, we invested in tools and procedures to raise spill awareness and prevention. For example, operating staff at manufacturing sites assessed potential environmental risks, including spills, and developed detailed control plans.

> water protection at the Sarnia site  We continue to take measures at the Sarnia site that improve protection of the St. Clair River by enhancing facilities that have the potential to impact the river. A major focus area has been once-through-cooling-water (OTCW) systems that draw water from the St. Clair River for cooling purposes and return it to the river. In 2005, the first of several hold-and-treat systems was installed to prevent OTCW leaks from reaching the river. In 2006, a portion of a major production unit was converted to a recirculating system using a cooling tower, and in 2007 construction of three additional hold-and-treat systems will begin. In addition, we are improving the site’s ability to handle storm water and strengthening its process water treatment capability. In 2006, we commissioned new state-of-the-art induced gas flotation units, which remove traces of oil from water.

> storage tanks  We take proactive measures to replace underground storage tanks at gas stations in a timely and safe way before leaks can occur. We also execute a storage tank inspection program to routinely clean, inspect, repair or replace above-ground storage tanks at distribution terminals. In 2006, 19 gas station tanks and seven distribution terminal tanks were replaced.

> well casing integrity at Cold Lake  We experienced a crude oil and salt water spill at the Cold Lake operation due to a well casing failure (a well casing is the outermost layer of the underground portion of a well). To maintain and improve well casing integrity, we commissioned a team to review and upgrade, where needed, well monitoring frequency, operating practices, detection techniques and response capabilities.

> pipeline integrity and protection  We have a well-established program to maintain pipeline protection and integrity throughout our 2,400-kilometre network of owned and operated pipeline systems. Pipeline rights-of-way are regularly surveyed to detect potential spills, advanced analysis methods are used to predict pipeline corrosion rates, and state-of-the-art inline inspection technologies and field, ground and aerial surveillance are used to monitor pipeline integrity. We continue to work with industry to enhance the capability of inline inspection tools and technologies.