XTO's Operations Philosophy
When XTO acquires properties, we look for properties with multiple reservoirs and future development potential. Typically, we drill new wells and complete all the reservoirs within a particular wellbore simultaneously, commingling the production from different zones. The result of this approach, which often differs from the approach of other exploration and production companies, is that XTO drills fewer wells to produce the same reserves. Consequently, we develop reserves with less surface disturbance, fewer pits and fewer tank batteries than many of our peers.
Global Climate Change
The Board of Directors and management of XTO Energy regularly review the risks associated with the Company's operations. We take our responsibilities regarding the environment seriously and are committed to protecting the environment. Although the scientific debate regarding the impact of human activities on global warming continues, the Company recognizes that it is an important issue. See our Carbon Disclosure Estimations page for more information.
The Board of Directors has directed management to form a Climate Change Committee composed of employees representing a variety of disciplines within the Company. This committee is designed to address greenhouse gas emission issues, including assisting management in monitoring the science of climate change and making recommendations to help develop emission reduction programs. Additionally, the committee is evaluating, and will be implementing, a program to measure emissions at Company-operated facilities to obtain baseline information.
The Company is also a partner in the Natural Gas STAR Program, a voluntary greenhouse gas emission reduction program for the upstream oil and gas industry, which is administered through the Environmental Protection Agency on behalf of the President's Global Climate Change Initiative. Through this program, the Company is helping to formulate a plan for the reduction of methane emissions from current operations. The Company intends to continue to participate in voluntary programs that address greenhouse gas emissions.
EH&S Initiatives
INCIDENT REPORTING DATABASE: XTO has an intranet-based incident reporting system that requires initial reporting of spills, injuries, fires or explosions, vehicle incidents, theft, vandalism and any notifications to agencies or landowners. The database automatically e-mails a notice of the incident report to the appropriate operations managers so they can respond appropriately.
INDIVIDUAL EMERGENCY RESPONSE PLANS (ERPS) BY AREA: A company-wide template for responding to emergencies using the Incident Command System adopted by the federal government has been rolled out. Each district office is now customizing the plan for each specific operating area. We expect to have fully developed ERPs by year-end.
WETLAND MITIGATION BANK: XTO has a permitted 315-acre wetland mitigation bank in the Navasota River Basin of Texas where we are particularly active. The acreage will be deed-recorded in perpetuity to prevent the loss of these wetlands. When our operations disturb a wetland, we will set aside anywhere from 3 to 7.5 acres of protected wetland for every acre we disturb.
ENVIRONMENTAL, HEALTH, & SAFETY MANAGEMENT SYSTEM: We are working on development of an Environmental, Health & Safety Management System (EH&S-MS). The system will provide a structure which will help us achieve our EH&S goals. Standards, procedures and practices will be referenced in the management system and will be used to implement our EH&S policy.
