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Environmental Stewardship

We believe environmental responsibility is an important factor in operating a socially responsible company. The health and safety of the people and places where we operate are a priority. We have programs in place to help enhance the safety of our people and contractors while minimizing the impact of our operations on the environment.

Our environmental stewardship relates to Newfield's impacts on living and non-living natural systems, including ecosystems, land, air and water. In addition, it pertains to performance related to environmental compliance. We will attempt to mitigate and minimize our environmental impact.

We also choose to work with contractors, vendors and suppliers who have similar views in regards to minimizing the impact of operations on the environment.

Newfield is a partner in the Natural Gas Star Program. In 2004, we agreed to participate in the Natural Gas Star Program. This initiative between the Environmental Protection Agency and the oil and gas industry was founded in 1993 and today has more than 110 members. The goal of the program is to identify cost-effective opportunities to reduce emissions of the greenhouse gas methane.

In 2005, Newfield Exploration was selected as the "Natural Gas STAR Rookie of the Year." This award is given to one Gas STAR partner selected from the production, processing, transmission or distribution sector in recognition of its commitment, dedication and support of the Natural Gas STAR Program outreach activities.

(Newfield’s Jim Metcalf with award, center)
Click Here for more information on the AIME Robert Earll McConnell Award at SPE Annual Conference.

Newfield Foundation-supported project to help hawks recover in Uintah County's oil and gas fields.
Click here for more information.
Click here for photo gallery.

Since 2004, Newfield has reported more than 500 million cubic feet in methane emission reductions.

Stop Work Authority Policy

Environment, Health and Safety Policy

Gas Star 2006 Reporting Summary & Benchmarking Report

Gas Star 2007 Reporting Summary & Benchmarking Report

We are currently evaluating benchmarks for our operations in the areas of spills, releases, waste management and emissions.

Year	Total Production	Total Spillage	Spillage as percent of Total Production
20051*	7,152,000 bbls	270 bbls	0.004%
20062*	6,218,000 bbls	254 bbls	0.004%
2007	6,501,000 bbls	56 bbls	0.001%

^1*In 2005, two tank batteries in Oklahoma were struck by lightning, accounting for 168 bbls of oil.
^2*In 2006, again, lightning struck two different tank batteries in Oklahoma releasing 222 bbls of oil.
Note: All volumes reported are hydrocarbon volumes that escaped secondary containment.

We pay attention to the needs of areas in which we operate. One example of this is in our Sarita joint venture in South Texas. In this wetland area, we recycled drilling mud, clays and well bore material (previously disposed of as waste) and turned it into non-hazardeous material used to make roads. These roads benefit area ranches and the foundation that manages the property where we are operating.

Newfield North Sea U.K. Operations

In early 2005, we announced a significant discovery in the Southern Gas Basin of the U.K. North Sea: our 100%-owned Grove Prospect. In developing the Grove field, Newfield refurbished and recycled an existing platform structure, which was the first time this was done in the U.K. sector of the North Sea. Platform recycling has been a common practice in the Gulf of Mexico, and Newfield brought this expertise to its U.K. operations. The development platform was a model of energy efficiency using an array of solar panels, two wind turbines and the latest technology. The facility was remotely operated and controlled operations of the wells, platform process, chemical treatment and measurement. This remote operation reduced the need for diesel generation and greatly reduced field visits to the platform resulting in a minimal environmental impact. In 2007, we sold our North Sea U.K. operations.

Although we no longer have operations in the North Sea, our accomplishments there are representative of how we conduct our business.

Minerals Management Service Awards

The Minerals Management Service (MMS) presented Newfield the National 2005 Safety Award for Excellence (SAFE) "High Activity Category" recognizing safe operations in the Outer Continental Shelf at the MMS Industry Awards Luncheon in Houston during April 2006.

Newfield had been a finalist for this award four times over the previous seven years and previously won in 1997.

Newfield's past award wins also include:

MMS National SAFE Award History

• Winner National SAFE Award 1997 - Small Producer Category
• One of 5 Finalists for 1998 - High Activity Category
• One of 5 Finalists for 2000 - High Activity Category
• One of 3 Finalists for 2002 - High Activity Category
• One of 5 Finalists for 2003 - High Activity Category

MMS District SAFE Award History

• Lafayette District SAFE Award 1996 - For all Operations in District
• Houma District SAFE Award 1997 - For Operations at EI 182A
• Lafayette District SAFE Award 2000 - For all Operations in District
• Lake Jackson District Award 2001 - For Production Operations

Since 1983, the MMS has been presenting the SAFE Awards, by districts and regions, as well as nationally. Potential SAFE Award winners at the national level are screened through a two-step process comprised of statistical analysis and in-depth meetings involving MMS Headquarters, Regional and District personnel to determine a company's overall performance on the Outer Continental Shelf. (In 2007, Newfield sold its offshore assets and its current activities no longer qualify us for consideration even though our offshore safety record is still exemplary.)

Newfield Working with Others on Safety and the Environment

Newfield places great importance to its employees participating in industry and regulatory workgroups to help design and implement regulations and industry standards. This also helps the Company stay up to date on the newest safety/environmental regulations and issues. Some of the groups with active Newfield participation include:

• IPAMs (Independent Producers Association of Mountain States) Denver Office
• OSHA MCEPS (Mid-Continent Exploration and Production Safety) Tulsa Office (Executive Committee)
• Mid Continent Oil and Gas Association Environmental Committee - Tulsa Office
• Oklahoma Independent Petroleum Association Environmental Committee - Tulsa Office
• IADC Advanced Well Control Training Curriculum - Houston Office (Development of Curriculum)
• Deepwater Well Control Guidelines - Houston Office (Development of Guidelines)
• Offshore Operators Committee - Houston Office (Executive Committee, Environmental and Technical Sub-committees)
• AXPC (American Exploration and Production Council) Houston Office (Chairman and environmental committees)
• API (American Petroleum Institute) - Houston Office Various workgroups involved in Writing and Rewriting Recommended Practices)
• OSHA STEPS (South Texas Exploration and Production Network) Houston Office

Compensation and EH&S

Environment, health and safety (EH&S) performances are measures used by Newfield to help annually determine both compensation and bonuses for its field employees in each of the Company's operating regions. While the method of determining the impact to compensation and bonuses varies among our regions and with individual area management, the overall Company emphasis is clear that conducting operations safely and with concern for the environment is an operating objective for our workforce. Our employees are rewarded for good performance in these areas.