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Caltex Environment, Health, Safety and Community Report 2004

Message from the Managing Director

In early 2004 Caltex took another step forward in furthering open communication with
stakeholders by releasing a detailed Environment, Health, Safety and Community Report
for 2002 and 2003. The present report is an update on our progress in key areas of
environmental and social performance during 2004.

2004 began with the announcement of the decision to upgrade facilities at the Kurnell
and Lytton refineries to make cleaner fuels. Construction on the more than $400 million
clean fuels project at the two refineries commenced in October. The upgrades will
contribute to improving urban air quality and public health through lowering the levels of
benzene in petrol and sulfur in diesel fuels. They will enable Caltex to meet the tougher
Australian fuel quality standards that come into force in the period 2006 – 2009 to
protect air quality.

Health and safety were once again at the top of the list of Caltex’s sustainability issues in
2004. We completed the introduction of the Loss Prevention System with over 4,000
employees and contractors undergoing training. Though still falling short of our ultimate
target of zero injuries, there was a pleasing improvement in the injury rate as the Total
Treated Injury Rate (TTIFR) fell from 15 injuries per million hours worked in 2003, to 12
in 2004. Significant reductions in the number of motor vehicle and tanker truck accidents
were also recorded as we continued with the Drive to Survive training program.

As part of our effort to achieve further improvement in health and safety performance,
the TTIFR was included as a key performance indicator in the balanced scorecard that is
used as the basis for Caltex’s employee incentive program.

We recorded some improvement in our environmental performance in 2004 with

decreases in the number of spills and licence exceedences. Increases in total
greenhouse gas emissions and some air emissions reflected increased production. So
while total greenhouse gas emissions rose by 2%, greenhouse gas emissions per tonne
of throughput fell by 4%.

Limiting greenhouse gas emissions will continue to be a challenge for Caltex because
producing cleaner fuels requires additional energy consumption and consequently
increased greenhouse gas emissions. However, these increases over time will be more
than offset by lower greenhouse gas emissions, as well as lower emissions of
hydrocarbons, nitrogen oxides and fine particulates from motor vehicles running on the
cleaner fuels.

Caltex has continued its commitment to benefiting the communities where we work
particularly through active support for the Starlight Children’s Foundation in 2004. As the
year ended I was proud of the response of Caltex employees, contractors, franchisees
and resellers in supporting our Litres for Life tsunami disaster appeal project. In addition
to the one million litres of fuel contributed by Caltex, additional fuel was donated by
resellers and franchises and matched by the company, while employees donated
amounts from their pay which were met dollar for dollar by Caltex.

2004 was a particularly active year for Caltex’s Marketing business with work to achieve
a stronger customer focus, the release of a new premium petrol, Vortex 98, and the

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Caltex Environment, Health, Safety and Community Report 2004

launch of Caltex’s new brand essence - Great performance from people you like, and the
advertising tag line – we put more in.

The rollout of the Caltex Woolworths venture network continued with 348 sites jointly
branded by the end of the year. A disagreement between Caltex and some franchisees
about product discounting through the venture network was resolved leading the way to
repairing the company’s valuable relationships with franchisees.

Overall, the summary of performance provided in this report represents real progress in
implementing Caltex’s environment, health, safety and community goals. This
achievement, along with Caltex’s commitment to transparency and accountability
through honest and open disclosure, have been recognised through Caltex’s recent
inclusion in the Australian SAM Sustainability Index in 2005. In 2005 Caltex will also
participate in the Corporate Responsibility Index (a project of the St James Ethics Centre
together with The Sydney Morning Herald and The Age and supported by Ernst &

Caltex’s dedication to continued improvement is embedded in the business plan for

2005-2007 and summarised in the formula -

Zero incidents
One in the hearts and minds of customers
0 : 1 : 85 : 100 85% utilization in our refineries
2007 100% engagement of all employees
by 2007.

Dave Reeves
Managing Director and CEO
November 2005

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Caltex Environment, Health, Safety and Community Report 2004

Caltex Vision, Values and Strategic Intents


Our vision is to be the Australian oil refining and marketing company most admired for its people,
partnership and performance.


We treat all people with fairness, respect and dignity.

We meet the highest ethical standards and operate in a socially responsible manner.
We respect and comply with the law.
We conduct our business in a manner that respects the environment and benefits the
communities where we work.
We are committed to incident free operations and are passionate about achieving results that
exceed expectations.
We are focused on providing products and services that meet or exceed the needs of our


• operational excellence through safe, secure, reliable, efficient, incident free and
environmentally sound operations
• cost management by lowering unit-costs through innovation, technology and work-process
improvements capital stewardship by investing in the best project opportunities and executing
them better than our strongest competitors
• strong and sustained profitability through leadership in brand, supply chain and asset
management, in developing new opportunities, and favourably shaping the business
• partnering with employees and other stakeholders by engaging the hearts and minds of our
employees through empowerment, respect and dignity, and by building mutually beneficial


We earn “most admired” status when we are:

• the Australian industry leader in incident free operations (safety, security, reliability, efficiency
and environmental stewardship)
• maintaining a competitive cost structure
• generating above-industry returns through prudent investments and pace-setter project
implementation (safer, faster and at lower cost)
• using our brand, supply chain and assets to achieve industry leading profitability
• preferred as a place to work, the business partner of choice, and valued contributors to the
quality of life in the communities where we do business
• highly competitive in shareholder returns.

We will measure our progress toward these goals by use of appropriate metrics.

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Caltex Environment, Health, Safety and Community Report 2004

About this report

This report is a brief update on Caltex’s more comprehensive Environment Health Safety
and Community Report 2002 and 2003. The report provides information on Caltex’s
performance against key corporate indicators, and on the more significant achievements
and challenges of 2004. Some subsequent events are also referred to where they are

The report should be read in conjunction with the Environment Health Safety and
Community Report 2002 and 2003, and Caltex’s Annual Report 2004. These reports,
along with other relevant information on Caltex’s operations and products, are available
on the website www.caltex.com.au

The report is confined to the Caltex Australia Group and does not consider the
performance of Caltex’s suppliers or customers.

The preparation of the report has once again been informed by the Global Reporting
Initiative’s Sustainability Reporting Guidelines.

Caltex will prepare the next comprehensive Environmental Health Safety and
Community Report for the year 2005.

Profile of the organisation

The Caltex Australia Group consists of:

• Caltex Australia Limited (ACN 004 201 307), which is the parent company of the
Caltex Australia Group

• the major operating companies including Caltex Australia Petroleum Pty Ltd, Caltex
Refineries (NSW) Pty Ltd, Caltex Refineries (Qld) Pty Ltd, Caltex Petroleum
Distributors Pty Ltd and Caltex Lubricating Oil Refinery Pty Ltd, and

• a number of wholly-owned entities and other companies that are controlled by the

Terms such as Caltex and Caltex Australia have the same meaning in the 2004
Environment, Health, Safety and Community Report as the Caltex Australia Group
unless the context requires otherwise.

The principal activities of Caltex are the purchase, refining, distribution and marketing of
petroleum products and the operation of convenience stores throughout Australia.

Caltex’s Supply and Refining departments purchase crude oil, arrange its transportation
to the company’s refineries, refine the crude into petrol, diesel, jet and specialty
products, buy and sell products, and arrange product movements to meet marketing

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Caltex Environment, Health, Safety and Community Report 2004

The Marketing department distributes petroleum products to a network of terminals and

retail sites around Australia; and promotes and sells Caltex fuels, lubricants, specialties
and convenience store goods through a national network of more than 2,000 Caltex,
Caltex Woolworths and Ampol branded service stations and branded resellers.
Marketing also sells directly to a large number of commercial customers.

Table 1. A snapshot of Caltex operations

Year ended 31 December 2001 2002 2003 2004
Number of employees 1
2,934 2,638 2,986 2,989
Fuel refineries 2 2 2 2
Lube oil refinery 1 1 1 1
Road tankers 27 28 17 18
Rail cars (operational) 60 60 60 62
Storage terminals (owned or leased
and operational) 11 11 11 11
Star Mart convenience stores 171 175 187 197
Service stations (owned or leased) 651 643 605 577
Depots 126 124 115 108
Fuel production (ML) 10,858 11,045 11,011 11,608
Lubes production (ML) 169 125 135 170
Includes employees of Calstores Pty Ltd (2004:804) and Caltex 100% owned distributors (2004:256)

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Caltex Environment, Health, Safety and Community Report 2004

Table 2. Summary of safety and environmental performance

Year ended 31 December 2001 2002 2003 2004
Total Treated Injury Frequency -
Rate – employees (per million 21 21 16 11.8
hours worked)1
Total Treated Injury Frequency -
Rate – contractors (per million 38 30 12 12.5
hours worked)
Total Treated Injury Frequency
26 23 15 12 11
Major spills 5 4 4 6 2
Minor spills 208 153 249 208 -
Infringements & Prosecutions 0 6 2 5 0
Fines & Penalties $0 $129,600 $3,000 $6,600 -
Fires <$2000 loss 26 31 35 38 -
Fires >$2000 loss 0 3 1 0 -
Motor vehicle accidents 46 54 64 55 47
Tanker truck accidents 29 48 34 22 24
Greenhouse gas emissions
2.123 2.135 2.095 2,172
(million tonnes of CO2-e)
Total water usage in refining (ML) 4,117 4,301 4,176

Includes employees of Calstores Pty Ltd

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Caltex Environment, Health, Safety and Community Report 2004

Caltex Environment, Health and Safety Policy

Environment September 2003

Health & Safety
Our vision is to be the Australian oil refining and marketing company most admired for its people,
partnerships and performance. With respect to environment, health and safety our policy is to:

O Achieve safe and incident free operations: Provide a safe and healthy workplace for all
employees and contractors on our sites. Operate and maintain our facilities and sites in a way
that will not adversely affect the health and safety of our neighbours, customers and public, or
the environment.
O Integrate EHS into our business and corporate values: Assess risks to the environment,
health and safety as part of all business decisions. Ensure environment, health and safety
objectives are part of our business planning process.
O Ensure compliance: Verify conformance with relevant legislation and with the company's
environment, health and safety management systems at all levels through regular auditing.
Ensure that our performance is consistent with stakeholder expectations.
O Consult with employees: Provide our employee with opportunities to contribute to the
making of decisions affecting the environment and their health, safety and welfare at work.
O Ensure all who work with us, work in accordance with this policy: Train and motivate
employees, business partners and contractors so that they understand their environment, health
and safety roles and responsibilities, and have the tools (or systems in place) to achieve a safe,
secure, reliable, efficient, incident free and environmentally sound operation.
O Utilise risk management practices: Apply sound risk management principles to identify,
communicate and control workplace hazards. Aim to remove hazards so incidents and injuries
do not occur.
O Achieve ongoing improvement: Plan to continually improve our environment, health and
safety performance and monitor our improvement against world class targets. We aim for results
that exceed expectations and move us to our goal of operational excellence.
O Build community partnerships: Communicate openly with government and the community
on environment, health and safety policies and performance.
O Reduce our environmental impact: Continually improve processes and products to
conserve company and natural resources, increase energy efficiency, prevent pollution and
minimise waste.
O Be good stewards of our products: Provide information and advice on safe and responsible
use of our products throughout the production and supply process.
O Be prepared for emergencies: Prevent incidents as a first priority but be prepared for any
emergency and mitigate the effect of all incidents quickly and effectively.
O Be accountable: Hold all employees and contractors accountable for environment, health and
safety performance in their area.
No job is so important that we cannot take time to perform our work safely and with proper regard
for the environment.

Dave Reeves
Managing Director
Meeting the needs of customers

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Caltex Environment, Health, Safety and Community Report 2004

Summary of achievements and challenges for 2004

Engaging with stakeholders

We meet the highest ethical standards and operate in a socially

responsible manner.

In August 2004 Caltex undertook a survey of customers’ and the community’s views
on their corporate performance. This covered, for example, how Caltex is viewed as
an ethical company, how they respect local communities and the environment, and
awareness of the Starlight sponsorship.

Our people and workplace

We treat all people with fairness, respect and dignity.
We are committed to incident-free operations and are achieving results
that exceed expectations.

Continued focus on Caltex’s Loss Prevention System

Over 4,000 people have now been trained in the Loss Prevention System (LPS)
as the rollout of the system moved to completion during the year. Employees
use five LPS tools:

• Safe Performance Self Assessment

• Job Safety Analysis
• Loss Prevention Observation
• Loss/Near loss Investigation
• Stewardship

Short Term Incentive Bonus Scheme

The Short Term Incentive (STI) bonus scheme linked employees’ remuneration
to performance in achieving Caltex’s key targets. In 2004 the scheme allowed up
to 8% of base remuneration to be earned by the achievement of company-wide
targets, and 4% for business specific targets. Company-wide targets reflect
Caltex’s commitment to Operational Excellence (Number of Good Days and Total
Treated Injury Frequency Rate) as well as financial performance (Profit and Free
Cash Flow). A new personal performance based bonus scheme, to apply from
2005, was introduced in 2004 to replace the STI.

Work progressed on the development of an enhanced Performance Management

Process (PMP) through which all employees not covered by awards enter into
PMP plans with their supervisors. The plans provide the basis for assessing and
rewarding individual performance in 2005. Training for the new system
commenced in November 2004.

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Caltex Environment, Health, Safety and Community Report 2004

Refinery Performance Improvement Program

Markets for petroleum products in Asia have undergone a fundamental shift in

the last few years as the capacity of refineries to supply petroleum products
moved from surplus to deficit, largely as a result of demand growth in China and
India. In Australia the closure of the Mobil refinery in Port Stanvac in 2003
moved the Australian market into a short gasoline and diesel position. This
provided an opportunity for Caltex to increase refinery production to meet the
higher demand.

The Refinery Performance Improvement Program has engaged employees at the

Kurnell and Lytton refineries in finding ways for Caltex the meet this opportunity.
Employees participated in over 70 workshops from August through November
generating ideas for efficiency improvement, cost reduction and new capital
projects. A substantial number of suggestions that were generated by the
workshops are being implemented.

Protecting the environment

We conduct our business in a manner that respects the environment.

Progress on the Clean Fuels Project

Construction of new production plant and upgrade of existing plant at the Kurnell
and Lytton refineries commenced in October 2004. Costing more than $400
million, the Clean Fuels Project is Caltex’s largest capital project for many years.
Employing a combined workforce of more than 600 people, this new investment
will bring significant environmental benefits as a result of lower benzene in petrol
and lower sulfur in diesel. The project is also underpinning industrial
development and employment.

From 1 January 2008, the standard for the maximum level of sulfur in premium
unleaded petrol will be 50 parts per million (ppm), compared with 150 ppm today.
The maximum level of sulfur in diesel will be reduced to 10 ppm from 1 January
2009, compared with 500 ppm today and 50 ppm from 2006. The maximum
allowable benzene in petrol will fall to a maximum of 1% by volume by January


Caltex extended the trial marketing of E10 Unleaded petrol in Queensland in

2004. E10 was made available at Cairns, Mareeba, Townsville and Ingham.

The ethanol content in E10 Unleaded is a renewable fuel. It also reduces

greenhouse gas emissions, increases Australia’s liquid fuels security of supply,
and helps with development and employment in regional and rural Australia.

Caltex is committed to the Australian Government's biofuels production target of

350 megalitres annual sales of ethanol or biodiesel to the Australian market by

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Caltex Environment, Health, Safety and Community Report 2004

2010 and will play a part in helping to achieve that target through the sale of
ethanol/petrol and biodiesel/diesel blends.

Environmental Management Systems

Development of new ISO 14001 compliant environmental management systems

at the two refinery sites continued in 2004. Marketing also continued to improve
environmental management systems.

We are focused on providing products and services that meet or exceed

the needs of our customers.

New brand position

In response to recent research on how Caltex is viewed by customers, a new

brand essence and tagline were released in mid 2004. Great performance from
people you like is a summary statement for internal use of Caltex’s core values.
The tag line used in advertising we put more in expresses Caltex’s commitment
to excellent execution and doing more for customers and the community.

Caltex Woolworths venture

Implementation of the Caltex Woolworths venture continued in 2004. In February

the Australian Competition and Consumer Commission gave its approval to the
arrangement to offer discounted fuel to Woolworths’ customers by ruling that it
was unlikely to result in substantial lessening of competition in relevant markets.

In April, Woolworths Limited and Caltex Australia Limited finalised interim

arrangements for the national expansion of the Woolworths' fuel discount
redemption offer. The arrangement involves the joint branding of Woolworths
sites and Caltex sites which are in the vicinity of Woolworths sites. The Caltex
sites covered by the arrangement include company-operated sites and
franchisees selling fuel under a commission agency agreement.

By the end of 2004, 348 sites had been co-branded including 106 Caltex sites.
Up to 470 sites are expected to be co-branded by the end of the roll out.

The Caltex Woolworths venture has brought increased fuel sales as well as sales
growth at jointly branded stores. Caltex sites that have joined the Caltex
Woolworths network have reported an average 80% increase in fuel sales. The
venture has provided a strong response by Caltex to significant changes in the
national retail fuel markets the major supermarkets captured a large proportion of
fuel sales when their customers took advantage of discount dockets available
with the purchase of goods.

The product discounting caused concern to some Caltex franchisees among the
1650 Caltex and Ampol sites that were not co-branded under the Caltex
Woolworths arrangement. Caltex worked hard to mend relationships with
franchisees. A Federal Court action taken by franchisees against Caltex

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Caltex Environment, Health, Safety and Community Report 2004

Australia seeking a halt to the discount fuel venture was settled out of court in
July. The agreement included changes to the Caltex retail economic model used
to calculate additional financial support for franchisees facing increased
competition as a result of market changes; and an exit package for franchisees
within 5 km of a Caltex Woolworths branded service station, who within the first
two years of the nearby brand conversion, experience a specified fuel sales

The Star Mart and Star Shop retail network

In the late 1990s Caltex recognised the opportunities to be gained by expanding

the convenience store business and this area has continued to grow. At
December 2004 Caltex had 491 Star Marts and Star Shops. They recorded over
5% growth in sales in 2004.

The All Stars performance management program with its training, monitoring and
incentives components, continued to ensure the success of the Caltex retail

Launch of Vortex 98

In November 2004 Caltex launched Vortex 98, a new premium unleaded high
octane petrol in Sydney. This product innovation contains a unique detergent
that breaks down and removes fuel deposits on injectors and intake valves. It
meets customer demand from the increasing number of owners of high
performance and prestige vehicles including those with high compression
engines and turbochargers. Vortex 98 will be available throughout NSW by early
2005 then spread to south eastern Queensland and other states.

Benefiting our communities

We conduct our business in a manner that benefits the communities

where we work.

Caltex support for the Starlight Children’s Foundation

The Starlight Children’s Foundation continued to be Caltex’s largest corporate

community sponsorship in 2004. Over 500 Caltex volunteers participated in Star
Day on May 6 and this, together with Starlight sales and promotions by
franchisees and resellers, raised over $225,000. In addition Caltex made a
significant corporate donation and provided fuel for the four Starlight vans used to
visit children in country hospitals.

As well as benefiting seriously ill children and their families, Caltex’s partnership
with the Starlight benefits employees by providing opportunities for personal
development and team building across the company.

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Caltex Environment, Health, Safety and Community Report 2004

The Caltex and Rotary Club of Sydney Award for Innovation in the Vocation
of Teaching.

Three teachers were recognised by an Innovation in the Vocation of Teaching

award in 2004.

• Stephanie Brown at Kelso High School in Central West NSW received an

award for developing Circus Surreal, a program providing high school
students with the opportunity to develop physical skills and creative abilities.

• Ian Judd at Dorrigo High School was awarded for his environmental
improvement projects involving staff and students.

• Julie Grimshaw, Deputy Principal at Punchbowl Boys High School in Sydney

was recognized for her leadership and initiative in setting up a program to
train senior students in nursing.

Litres for Life to help tsunami victims

Caltex was quick to respond to the tragic Boxing Day tsunami in Asia by
launching the Litres for Life project that provided:

• 1 million litres of fuel contributed by Caltex Australia as a corporate donation

• additional fuel donated by Caltex resellers and franchisees – with Caltex

matching each donation

• Caltex employees donating an amount from their pay matched dollar for
dollar by the company. The funds to be made available to disaster relief aid
agencies nominated by employees.

Caltex made a total corporate commitment to the project of up to $1 million.

The Caltex Best All Rounder award

Caltex Best All Rounder awards were made for the nineteenth year, recognising
and rewarding final year secondary schools students for outstanding academic,
sporting, community service and leadership achievements.

The Australian Chamber Orchestra

For the eighth year, Caltex recognised excellence in the performing arts through
its sponsorship of a national tour of Australian Chamber Orchestra in June.
Imogen, Richard and Friends was the title of the highly successful tour that
featured pianist Imogen Cooper and the ACO’s director and lead violin Richard

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Caltex Environment, Health, Safety and Community Report 2004

Fuel support

Caltex supplies fuel support for each Ronald MacDonald House in Australia,
which provides a home away from home near hospital for families of seriously ill

Caltex also provides fuel for three charity flights each year which are either used
to raise funds for charity or to provide a flight to disadvantaged children.

Managing risk

We are passionate about achieving results that exceed expectations.

Caltex has identified the company’s key risks to the environment, the health and
safety of our employees and contractors; and the community through the Caltex
Key Risk Profile and the strategic planning process. Caltex’s response to
managing these risks is expressed in the overarching Operational Excellence
Strategic Plan and through the Business Plans of each of Caltex’s businesses.
These rolling three year plans were endorsed by the Board in December 2004.

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Caltex Environment, Health, Safety and Community Report 2004

Update on Caltex’s Performance

In 2004, the company had its best safety year on record with improvements in the key
areas of the Total Treated Injury Frequency Rate (TTIFR) and vehicle accidents. This
has moved Caltex further towards world-class performance for safety but is still short of
the goal of zero incidents and a strongly developed safety culture focusing on

3 The TTIFR fell 20%.

3 The total number of tanker truck and motor vehicle fell 21%.
3 The total number of product spills fell 15%.

Injury rate

The Total Treated Injury
Frequency Rate (TTIFR) for
TTIFR/million hours worked

30 employees and contractors

25 across Caltex fell from 15 to 12
injuries per million hours worked
from 2003 to 2004. While a
15 pleasing improvement, this is still
10 short of the 2004 target of 11,
5 and well short of Caltex’s goal of
zero workplace injuries.
2000 2001 2002 2003 2004

Motor vehicle and tanker truck accidents


No. of motor vehicle accidents

The number of motor vehicle

accidents fell from 64 to 55 from
40 2003 to 2004, and the number of
tanker truck accidents fell from 34
to 22.


2000 2001 2002 2003 2004
Caltex continued the Drive to
60 Survive safe driving program in
2004 with around 300 Caltex
No. of tanker truck accidents

employees now having

40 completed training.




2000 2001 2002 2003 2004

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Caltex Environment, Health, Safety and Community Report 2004

Spills and releases

In 2004 there
were six major
250 spills*, an
increase of 2
200 over 2003.
Number of spillls

There were 208

minor spills
compared to 248
in 2003.


2000 2001 2002 2003 2004

Minor spills Major spills

*Caltex defines a major spill as an accidental or unplanned spill or release that is of a volume sufficient to
cause actual or likely harm to human health and/or damage to the environment; or has caused significant
disturbance to the community, or is a spill to land or water of 8,000 litres or more.

In 2004 there
was one major
35 fire* and 38 minor
fires. This
exceeds the
Number of fires

25 target of zero
major fires.



2000 2001 2002 2003 2004

Minor fires Major fires

* A major fire is defined as one that causes >$2000 damage

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Caltex Environment, Health, Safety and Community Report 2004

Compliance with environmental obligations

A total of 14 pollution control
licences were held by companies
in the Caltex Australia Group in
No. of licence exceedences

2004 for two refineries and 11
Licence conditions were
exceeded on 15 occasions in
2004, which required notification
and reporting to government
environmental authorities.
2000 2001 2002 2003 2004

Four infringement notices for breaches of significant environmental regulation were

received by Caltex in 2004 and one in 2005, for incidents occurring in 2004:

• Caltex Refineries (NSW) Pty Ltd received a penalty infringement notice for $1,500
following the removal from site and incorrect disposal of a hazardous waste skip by a

• Caltex Refineries (Qld) Pty Ltd received a penalty infringement notice of $600 for the
release of hydrocarbon from a pipeline at Lytton refinery

• Caltex Australia Petroleum Pty Ltd received a penalty infringement notice for $1,500
when old contaminated water was released from a blocked stormwater line into an
open stormwater trench at a Sydney service station, and

• Caltex Refineries (NSW) Pty Ltd received a penalty notice for $1,500 following the
release of effluent with high phenol levels at Yena Gap, Kurnell.

• Caltex Refineries (NSW) Pty Ltd received a penalty notice for $1,500 following the
release of a small amount of fuel oil from a tundish on the Kurnell wharf

Caltex is committed to achieving 100% compliance and all breaches of environmental

regulations have been thoroughly investigated by management. This challenge
becomes greater every year with regulators setting tougher goals for industry to meet.

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Caltex Environment, Health, Safety and Community Report 2004

Water consumption

In early 2004, the Kurnell refinery joined Sydney Water’s Every Drop Counts water
conservation program. The Kurnell refinery is Sydney Water’s third largest water user
using approximately six megalitres of water per day to generate the 350 tonnes of steam
required around the site each hour.

Air emissions

Emissions emanating from the Kurnell and Lytton refineries are due to the combustion of
fuels (fuel oil, natural gas and fuel gas) in furnaces and boilers, and some process
emissions such as deposits of coke in crackers and reformers.

The key pollutants associated with the operation of the refineries include oxides of sulfur
and nitrogen, carbon dioxide, carbon monoxide, particulate matter and volatile organic
compounds. Emissions of these substances are monitored and the results reported to
state environmental agencies.

Emissions of non methane volatile organic compounds are released also from the
natural evaporation of petroleum products during their storage and transfer. Fugitive
emissions of volatile organic compounds escape from storage tanks and from pipework
(valves and flanges) and equipment (pumps and compressors) within facilities.

Caltex has provided data on air emissions to Environment Australia for inclusion in the
National Pollution Inventory (NPI) since the inception of this program. These data,
summarised in the following table, are available at the NPI website at www.npi.gov.au.

Table Air emissions from Kurnell and Lytton refineries1

Kurnell Refinery Lytton Refinery
Emission to air (kg)
2002/03 2003/04 2002/03 2003/04
Benzene 12,000 18,000 4,400 5,100
Carbon monoxide 360,000 360,000 1,900,000 2,700,000
Oxides of nitrogen 1,700,000 1,700,000 1,200,000 810,000
Sulfur dioxide 3,300,000 3,600,000 980,000 2,900,000
Particulate matter (10 micron) 120,000 170,000 260,000 280,000
Total volatile organic
2,500,000 2,800,000 570,000 570,000
These data are estimated emissions calculated for inclusion in the NPI using techniques that have been
approved by the Australian state and territory environment agencies. Environment Australia has noted
that the accuracy of these estimates will vary according to the techniques used. Furthermore comparative
analysis of the data may be misleading because jurisdictions may have used different approved estimation

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Caltex Environment, Health, Safety and Community Report 2004

Community complaints
Both Kurnell and Lytton refineries operate 24 hour environmental hotline services
allowing community members to register their concerns at any time.

Kurnell refinery community complaints

Annual Kurnell Refineries related community complaints




Number of calls






1998 1999 2000 2001 2002 2003 2004

Odours Noise Fallout Water Air Misc

The number of calls to the Kurnell refineries environmental hotline was slightly higher in
2004 compared to previous years. The majority of these calls related to two incidents –
- On 13 January, a release of catalyst from one of the catalytic crackers resulted in 44
complaints about particulate fallout, and
- On 17 October, overfilling a tank such that foul condensate was released to the tank
bund resulted in 34 complaints about odour from the site.

Lytton refinery community complaints

Of the 28 calls to the Lytton refinery environmental hotline in 2004, 24 related to odour
emissions. Eight of these odour complaints were received in November and were
related to increased flaring during this period as a result of a planned shutdown for
inspection and maintenance of the Lytton alkylation plant.
Annual Lytton Refinery related community complaints




Number of calls






1998 1999 2000 2001 2002 2003 2004

Noise Odour Water Air

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Caltex Environment, Health, Safety and Community Report 2004

Energy consumption and greenhouse gas emissions

Emissions of greenhouse gases

2180 in 2004 were 2,172kt CO2
2170 equivalent which is 2.3% higher
2160 than in 2003. The increase was
due mainly to the increase in
kt CO2-equivalent


2140 production at Caltex’s refineries.

This is reflected in the Energy
Intensity Index for the refineries
which was 4% lower in 2004
compared to 2003, and the
refinery emissions per tonne of
2000 2001 2002 2003 2004
throughput which also fell 4%
over this period.

2004 marked the seventh year that Caltex has participated in the Australian
Government’s Greenhouse Challenge Program. We completed a further five
greenhouse gas abatement initiatives in 2004 including:

• the number of main boilers in service at Kurnell refinery was reduced during periods
of lower steam demand
• the layout of piping at the Banksmeadow Terminal was optimised to improve
pumping efficiency to the vapour recovery unit
• the main boiler preheater performance at Kurnell refinery was improved.

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Caltex Environment, Health, Safety and Community Report 2004

Caltex energy consumption and greenhouse gas emissions 2002 to 2004.

Energy consumption Greenhouse gas emissions
(GJ x 1000) (tonnes of CO2-e x1000)1
2002 2003 2004 2002 2003 2004
Electricity 1,147 1,429 1,519 423 427 452
Natural gas at
Kurnell refinery 2,518 3,041 3,168 129 155 162
Fuel oil at Kurnell
and Lytton refinery 1,204 1,372 1,648 78 91 108
Fuel gas at Kurnell
and Lytton refinery 16,979 16,530 17,162 733 7402 6942
Coke at Kurnell and
7,627 6,878 7,360 658 598 641
Lytton refineries
Flares at Kurnell
and Lytton 748 1,060 1,725 80 52 79
(automotive diesel 292 221 235 20 15 16
Other emissions3 Not Not
applicable applicable 18 17 17

TOTAL 31,697 30,550 32,817 2,135 2,095 2,173

the conversion factor used is based on a weighted average of the conversion factors applicable in relevant
Australian states
conversion factor for Qld changed from 0.0377 to 0.0299
other emissions comprise non-methane volatile organic compounds and CH4.

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