How To Use It The GEMI Local Water Tool™ (LWT) for Oil and Gas is a free tool made by a group of 40+ global companies to help them and other companies identify the external impacts, business risks, and opportunities related to water use and discharge at a specific site or operation. The information generated in the Local Water Tool may be used by companies for developing management plans and communicating outcomes at their discretion. Final Tool Version March 2012 1 Agenda About GEMI and Antitrust Guidelines Goals of the GEMI Local Water Tool™ for Oil and Gas Participants Background Module Framework • Home • Module 1: Site Data • Module 2: Local External Conditions • Module 3: External Impact Assessment • Module 4: Risk Assessment • Module 5: Management Plan • Module 6: Reporting • References 2 GEMI Values Vision: “GEMI is a global leader in developing insights and creating environmental sustainability solutions for business.” Mission: “Business helping business achieve environmental sustainability excellence” 3 Current GEMI Members 4 GEMI Signature Issues Water Sustainability Climate Change & Energy Supply Chain Sustainable Development & Emerging Issues Communications Professionals 5 Goals of GEMI Local Water Tool™ for Oil and Gas Help oil and gas companies assess impacts, risks, opportunities and manage water-related issues at specific sites. Provide a common and consistent “visualization platform” for internal and external communication. Provide interconnectivity between global and local water risk assessments and a uniform approach between site assessments. Create a central repository of information to create reports for multiple water questionnaires. 6 How is the LWT for Oil and Gas different from the LWT for General Industry? Blue notes are unique to LWT for Oil and Gas The GEMI Local Water Tool™ for Oil and Gas: Includes Influent Source category for “Owned Produced Water” Includes Effluent Discharge Point for “Reinjection for Production” Includes an External Stress Severity Issue on Growth of Oil and Gas Industry in Area Extracts data from the IPIECA Global Water Tool for Oil and Gas Includes IPIECA Reporting Metrics and Total Petroleum Hydrocarbons (TPH) Quality Parameters 7 GEMI Members & GEMI LWT™ Project Participants GEMI Member Companies: GEMI LWT™ Project Participants: Tool Developer: 8 GEMI-NGO External Advisory Group (EAG) During the course of the project, members of a GEMI-NGO External Advisory Group (EAG) shared their insights into aspects of the GEMI LWT™ during a workshop and live demo of the tool and had the opportunity to pilot the draft tool and provide feedback and suggestions for GEMI’s consideration to incorporate into the final tool. The following people participated in the EAG workshop and/or reviewed and commented on the contents of the GEMI LWT™: Jason Morrison, Alliance for Water Stewardship (AWS) and CEO Water Mandate Marcus Norton, Carbon Disclosure Project (CDP) Water Marielle Canter Weikel, Conservation International Sabine von Wirén-Lehr, European Water Partnership (EWP) Ruth Romer, as International Petroleum Industry Environmental Conservation Association (IPIECA) Julie van der Bliele, International Water Management Institute (IWMI) Susan Fernandes, U.S. Business Council for Sustainable Development (USBCSD) Kathy Baczko, WASH Advocacy Initiative Anne-Leonore Boffi, World Business Council for Sustainable Development (WBCSD) Volaine Berger, WBCSD Tien Shiao, World Resources Institute, (WRI) Rob Kimball, WRI Alexis Morgan, World Wildlife Fund (WWF) / Alliance for Water Stewardship (AWS) Nicole Tanner, WWF / AWS Christopher Williams, WWF 9 Business Water Risk and Modeling Tools: 3 Levels of Assessment 1. Global Risk Assessment of Portfolios 2. Local Risk Assessment 3. Detailed Water of Specific Site Modeling of Specific Site Designed to answer questions at different levels: • How many sites are in extremely water scarce areas? • Which sites are in greatest risk areas? • How many employees live in countries that lack access to water supply or sanitation? • • • What are the water risks at this site: • Physical supply • Regulatory • Social • Competition • Climate variability Which risks are greatest? What is our management plan? • What is optimum water balance between process streams? • Which month has the greatest stress? • What % of river water flow is used? 10 Synergy and Compatibility of Tools The GEMI LWT™ was developed in cooperation with the WBCSD and its Global Water Tool. The GEMI LWT™ for Oil and Gas was developed in cooperation with the IPIECA and its Global Water Tool for Oil and Gas. The tools are mutually compatible and a provider of best practices for sustainable water management at the global, regional, national and local levels. Supporting nomenclature, data continuity and software system were developed to be compatible between the GEMI, WBCSD and IPIECA tools to ensure the User’s ability to transfer data between the tools. References and web links to the respective tools are posted on the three organization’s web sites. The GEMI, WBCSD and IPIECA water tools are intended for free use by the public and are posted in the public domain. 11 When a Company has a global portfolio risk assessment – what happens next? Specific site internal & external data is transferred to the new GEMI Local Water Tool™ MS Excel files for detailed assessment Site A Site B Site C Site D WBCSD Global Water Tool: One MS Excel File for Portfolio GEMI Local Water Tool™: One MS Excel File per Site IPIECA Global Water Tool for Oil and Gas: One MS Excel File for Portfolio GEMI Local Water Tool™ for Oil and Gas: One MS Excel File per Site 12 Outcomes of Global Water Tool (GWT) Global portfolio water metrics and high level risk assessment 13 Tool Outcomes - Overall Identify and rank: Specific Impacts Specific Risks Calculate: Site-Level Metrics Document: Management Plans Opportunities For each Water Source or Discharge Point Specific Impact or Risk Issue Impacts and Risks with Levels 0-9 14 Tool Outcomes – Management Plans Links Risks and Impacts to Management Plans: Business Risks External Impacts Management Plan and Opportunity Information 15 GEMI LWT™ Site Candidates The GEMI LWT™ is valuable for an operation or planned project that has one or more of the following traits: – Relies on water input(s) for operation – Requires effluent discharge for operation – Has a significant number of staff in one location Top priority can be given to sites in water stressed or environmentally sensitive areas (may be identified through the GWT or other data source) 16 Refinery Case Example While this refinery has closed loop cooling and has reduced water usage, it still faces external risks. After using the LWT, the refinery took action to address each risk: • Increased external communication on water efficiency • Investigated the use of recycled municipal effluent or hybrid dry cooling Tool showed specific high risks: Local ecosystems under stress from other larger users in the area Cumulative demand in area would soon exceed local supply Increasing community public concern on the refinery’s water use 17 Key Definitions Impact Extent to which the volume and/or quality of water used or discharged by an organization in a specific watershed affects the availability of that water for other uses or harms human health or ecosystems in any other way. Risk Local Watershed Site Operations Potential business liabilities faced by site as a result of impacts and external water-related drivers and constraints. Opportunity Local Communities Organizations with few water impacts may face many water-related risks. Potential top line business enhancements created by voluntary sustainable water management actions. 18 Module Framework Introduction and Home 1. Site Data (User enters internal company data and defines the Internal Importance Level of Influent Sources and Receiving Waterbodies/Entities) 2. Local External Conditions (User reviews external data to define External Stress Severity Levels for 20 Water Issues) 3. External Impacts Assessment (A site’s external impacts on Influent Sources and Receiving Waterbodies/Entities are identified and ranked) 4. Risk Assessment (The external risks to the site are identified and ranked) 5. Management Plan (User identifies Current Management Methods, Opportunities, Assesses Sufficiency and Plans for Future) 6. Reporting and Summary Dashboard (Metrics are generated for GRI, Dow Jones, CDP Water, Bloomberg, IPIECA) References, FAQ, Definitions 19 Home: Become Familiar with Modules and Worksheets HOME MODULE 1: SITE DATA MODULE 2: LOCAL EXTERNAL CONDITIONS MODULE 3: EXTERNAL IMPACT ASSESSMENT MODULE 4: RISK ASSESSMENT MODULE 5: MANAGEMENT PLAN MODULE 6: REPORTING REFERENCES 20 Home: It is critical to read the Instructions Instructions may be easily downloaded or printed from the embedded document 21 Step 1: Enter location on SITE MAP Choose Operation Type Optional: Add your own site map Map is automatically generated 22 Optional step: GWT Users may import data from IPIECA GWT Data may be imported from the User’s IPIECA Global Water Tool file to this worksheet. Data is not transferred to Module 1 because the stream categories are slightly different. The User must populate the Module 1 Influent and Effluent worksheets. Note that only the IPIECA GWT for Oil and Gas can be linked with the LWT for Oil and Gas 23 Step 2: Setup: User selects data entry option The Site Name must be exactly the same in both files for the data extraction to occur Click OK when you are certain of your data entry method Please choose the data entry option carefully. Note that once you select a data entry option, enter your water source and discharge point names and click on “Run Module Setup”, then all of the fields in Modules 2 through 6 are created. If you decide to change your data entry option or add or remove water sources or discharge point names, then you must click again on “Run Module Setup” and your previously entered data in Modules 2 – 6 will be erased. 24 Module 1: Site Data In Module 1, the User enters influent and effluent information about the specific site within the fenceline of their operations. Internal metrics such as consumption and intensities are calculated. Site Operations An Internal Importance Level is a key output from Module 1. The Internal Importance Level describes the business criticality of each Influent Source and Receiving Waterbody or Entity. 25 Module 1: Enter Influent and Effluent Data Produced Water is included Required Data: User enters name and volume quantity data for influent and effluent streams Optional Data: User enters quality data for influent and effluent streams 26 Module 1: Enter Influent and Effluent Data Non-Freshwater columns are to the right Note that Influent and Effluent streams are separated into two categories: Freshwater and Non-Freshwater. Two different water sources can be used in each category 27 After data is entered, User clicks “Run Module Setup” After “Run Module Setup” is clicked, Module 1 Output and Modules 2-6 are created. Run Module Setup Please enter the water source and discharge point names carefully. Note that once you select a data entry option, enter your water source and discharge point names and click on “Run Module Setup”, then all of the fields in Modules 2 through 6 are created. If you decide to change your data entry option or add or remove water sources or discharge points, then you must click again on “Run Module Setup” and your previously entered data in Modules 2 – 6 will be erased. Water data (flow, TDS, etc.) may be changed, but source or discharge names may not. 28 Module 1: Site Output – User selects Internal Importance Level for each Influent Source and Receiving Waterbody/Entity Link to Droplist Definitions List Note that 0 is an option may be selected for produced water or seawater in some situations User selects Internal Importance Level Preset Droplist Definitions Space for comments 29 Module 1: Droplist Definitions for Internal Importance Level Button to go back to Module 1 Full Definitions in support of the Droplist Definitions 30 Module 2: Local External Conditions In Module 2, the User looks outside the fenceline of their operations and determines the condition of each Influent Source and Receiving Waterbody or Entity by assessing water issues. Influent Source Receiving Waterbody or Entity Local Watershed Note that Oil/Gas Industry Growth is also included Local Communities External Stress Severity Levels are key outputs from Module 2. This describes the current conditions of a specific Influent Source or Receiving Waterbody or Entity. The External Stress Severity Level is selected by the User for specific issues on each water source or discharge point through review of external data sources and by best professional judgment. The External Stress Severity Level is a result of natural physical conditions and cumulative anthropogenic (human, 31 Module 2: Local External Conditions: Influent – User selects External Stress Severity Level for 19 Water Issues Note that 0 is an option may be selected for produced water or seawater in some situations Space for comments 19 Influent Water Issues are grouped in 6 Categories User Documents Data and Source used for Level Selection User Selects External Stress Severity Level Preset Definitions 32 Module 2: Local External Conditions: Effluent – User selects External Stress Severity Levels for 18 Water Issues Note that 0 is an option may be selected for produced water or seawater in some situations 18 Effluent Water Issues are grouped in 5 Categories User Documents Data and Source used for Level Selection User Selects External Stress Severity Level Preset Definitions 33 Module 2: Droplist Definitions for 21 External Stress Severity Issues Buttons to go back to Module 2 Definition of each issue and reference Note that 0 is an option may be selected for produced water or seawater in some situations Full Definitions in support of the Droplist Definitions 34 Module 3: External Impact Assessment In Module 3, the User determines the impacts that their operations have on the external condition of each Influent Source and Receiving Waterbody or Entity. Impact Extent to which the volume and/or quality of water used or discharged by an organization in a specific watershed affects the availability of that water for other uses or harms human health or ecosystems in any other way. Local Watershed Site Operations Impact Categories: • Water Availability •Overall • Human needs • Food supply • Water Quality • Local Ecosystems Local Communities A company’s individual impact level on a particular Influent Source or Receiving Waterbody or Entity is defined by applying a Magnitude of Company Contribution factor to the External Stress Severity Level. In this manner, the Company’s relative contribution to the current condition of the Influent Source or Receiving Waterbody or Entity can be accurately defined. This approach enables 35 identification and comparison of relative levels of impacts at the site level. Module 3: External Impacts on Influent Sources – User selects Magnitude of Company Contribution for 5 Water Impacts Link to Droplist Definitions List External Impact Level is Calculated Space for comments 5 External Impacts are grouped in 3 Categories External Stress Severity Level is Automatically filled from Module 2 User selects Magnitude of Company Contribution Preset Definitions 36 Module 3: External Impacts on Effluent Sources – User selects Magnitude of Company Contribution for 5 Water Impact Categories External Impact Level is Calculated Space for comments 5 External Impacts are grouped in 3 Categories External Stress Severity Level is Automatically filled from Module 2 User selects the Magnitude of Company Contribution Preset Definitions 37 Module 3: Droplist Definitions for Magnitude of Company Contribution Buttons to go back to Module 3 Full Definitions in support of the Droplist Definitions Definition of each type of impact 38 Module 3: Key Output: Company’s External Impact Level for Each Issue – Influent Examples Company’s External Impact on Influent Source (0 - 9) = External Stress Severity Level (0 - 3) X Magnitude of Company’s Contribution to the External Stress (0 – 3) For example: • Sites are determined to have a high external impact when they are a relatively high user of water from an influent source that has a high external stress level on water availability. • Sites are determined to have a low external impact when they are a relatively high user of water from an influent source that has a low external stress level on water availability. Water Source High Water in High Stress User in Area High - Availability (3) External (3) Impact on Availability (9) Water Source High Water in Low Stress User in Area Low - Availability (3) External (1) Impact on Availability (3) 39 Module 3: Key Output: Company’s External Impact Level for Each Issue – Oil and Gas Influent Example Company’s External Impact on Influent Source (0 - 9) = External Stress Severity Level (0 - 3) X Magnitude of Company’s Contribution to the External Stress (0 – 3) For example: • An oil production site generates “produced water” along with oil from a and underground reservoir and reinjects if for pressure maintenance for production. There is no ecosystem in an underground reservoir so the Impact to Ecosystems is zero. Note that 0 is an option and may be selected for produced water or seawater in some situations Water Source in Zero Stress – Local Ecosystem (0) High Water User in Area (3) No External Impact on Ecosystem from Produced Water Source (0) 40 Module 3: Key Output: Company’s External Impact Level for Each Issue – Effluent Examples Company’s External Impact on Receiving Waterbody/Entity (0 - 9) = External Stress Severity Level (0 - 3) X Magnitude of Company’s Contribution to the External Stress (0 – 3) For example: • Sites are determined to have a low external impact when they have minimal discharges to a Receiving waterbody/Entity that has a high external stress level on water quality. • Sites are determined to have a high external impact when they have relatively high discharges to a Receiving Body/Entity that has a high external stress level on water quality. Receiving Waterbody/Entity in High Stress Quality (3) Receiving Waterbody/Entity in High Stress Quality (3) Minimal Discharger in Area (1) Low External Impact on Quality (3) High Discharger in Area (3) High External Impact on Quality (9) 41 Module 4: Risk Assessment In Module 4, the User determines the risks to their business operation from the external conditions of each Influent Source and Receiving Waterbody or Entity. Risk Categories: • All 21 Water Issues from Module 2 Local Watershed Site Operations Risk Potential business liabilities faced by site as a result of impacts and external water-related drivers and constraints. Local Communities Company’s Risk on Specific Water Issues for Each Influent Source or Receiving Waterbody/Entity (0-9) = Internal Importance Level (0-3 from Module 1) X External Stress Severity Level (0-3 Module 2) 42 Module 4: Influent Risks are automatically calculate from Module 1 and Module 2 Space for comments Internal Importance Level (0 – 3) imported from Module 1 External Stress Severity Level (0 – 3) imported from Module 2 Automatic Calculation: Company’s Risk Level = Internal Importance Level X External Stress Severity Level 43 Module 4: Effluent Risks are automatically calculate from Module 1 and Module 2 Space for comments Internal Importance Level (0 – 3) imported from Module 1 External Stress Severity Level (0 – 3) imported from Module 2 Automatic Calculation: Company’s Risk Level = Internal Importance Level X External Stress Severity Level 44 Module 4: Key Output: Company’s Risk for Each Issue – Influent Examples Company’s Risk from issues on Influent Source (0 - 9) = External Stress Severity Level (0 - 3) X Internal Importance Level of the Influent Source (0 – 3) Water Source High Internal in High Stress Importance • Sites are determined to have a high - Availability Level (3) High Risk risk from water availability when that on (3) source has high internal importance and Availability has a high external stress level on (9) water availability. For example: • Sites are determined to have a low risk from water availability when that source has high internal importance and has a low external stress level on water availability. Water Source High Internal in Low Stress Importance Low Risk - Availability Level (3) on (1) Availability (3) 45 Module 4: Key Output: Company’s Risk for Each Issue – Oil and Gas Influent Example Company’s Risk from issues on Influent Source (0 - 9) = External Stress Severity Level (0 - 3) X Internal Importance Level of the Influent Source (0 – 3) Water Source Zero Internal in Low Stress Importance • An oil production site generates - Availability Level (0) No Risk on produced water along with oil from a Water (1) field but the company does not use it for Availability a beneficial purpose in its operations. on the This site has no risk related to Produced availability because the water source is Water not needed. Source because (0) Note that 0 is an For example: option and may be selected for produced water or seawater in some situations 46 Module 4: Key Output: Company’s Risk for Each Issue – Effluent Examples Company’s Risk from issues on Receiving Waterbody/Entity(0 - 9) = External Stress Severity Level (0 - 3) X Internal Importance Level of the Receiving Waterbody/Entity (0 – 3) For example: • Sites are determined to have a high risk from local ecosystems when that Receiving Waterbody/Entity has high internal importance and has a high external stress level on local ecosystem health. • Sites are determined to have a low risk from local ecosystems when that Receiving Waterbody/Entity has high internal importance and has low external stress level on local ecosystem health. Receiving Waterbody/Entity in High Stress – Local Ecosystem (3) Receiving Waterbody/Entity in Low Stress – Local Ecosystem (1) High Internal High Risk Importance on Level (3) Ecosystem Health Limiting Discharges (9) High Internal Importance Low Risk Level (3) Ecosystem Health Limiting Discharges (3) 47 Module 4: Key Output: Company’s Risk for Each Issue – Oil and Gas Effluent Example Company’s Risk from issues on Influent Source (0 - 9) = External Stress Severity Level (0 - 3) X Internal Importance Level of the Receiving Waterbody/Entity (0 – 3) For example: • An oil production site generates produced water along with oil from a field but the company does not use it for a beneficial purpose. The site injects the produced water into a saline aquifer for disposal. Receiving Waterbody/Entity in Has No Stress – Local Ecosystem (0) High Internal Importance Level (3) No Ecosystem Risk on Water Discharge to Saline Aquifer (0) Note that 0 is an option may be selected for produced water or seawater in some situations 48 Module 5: Management Plan In Module 5, the Impacts and Risks are summarized. The User identifies Management Plans to address the Impacts and Risks. Opportunities are identified. Risk Impact Local Watershed Extent to which the volume and/or quality of water used or discharged by a organizations in a specific watershed affects the availability of that water for other uses or harms human health or ecosystems in any other way. Site Operations Potential business liabilities faced by site as a result of impacts and external water-related drivers and constraints. Opportunity Local Communities Organizations with few water impacts may face many water-related risks. Potential top line business enhancements created by voluntary sustainable water management actions. 49 Module 5: Management Plan Business Risks (0-9) imported from Module 4 External Impacts (0 – 9) imported from Module 3 User enters Management Plan Information (see close up next page) 50 Module 5: Management Plan The sufficiency of existing Management Plans and the need for new plans or actions may be documented. Links to existing documents may be included. User can enter Opportunity Information in text boxes 51 Module 6: Internal Metrics Water Withdrawal Metrics Water Discharge Metrics Water Consumption Metrics Water Recycled/ Reused Metrics If you update numerical data or process names in the Module 1 Influent or Effluent Input Data sheets, then you must click “Run Internal Metrics” to extract the revised information. Water Intensity Metrics by Production and Revenue 52 Module 6: Reporting GRI IPIECA DJSI CDP Water Bloomberg If you update numerical data or process names in the Module 1 Influent or Effluent Input Data sheets, then you must click “Run Reporting” to extract the revised information. 53 After Modules 2-5 are completed, click RUN DASHBOARD RUN DASHBOARD creates the summary 54 Module 6: Dashboard – Summary of High (6-9) Level Impacts and Risks For each Water Source or Discharge Point Specific Impact or Risk Issue Impacts and Risks with Levels 6-9 55 References – Links to Data Sources The most credible and meaningful output from the GEMI LWT™ will be obtained through use of the most credible and recent local data. Identification and selection of local data are the User’s responsibility. Local data may sourced from public sources (e.g. via the Internet) or from the site’s records. The Data Sources worksheet provides links to global datasets that may be employed in the GEMI LWT™ if local data sources cannot be identified. However, the User is encouraged to identify and use local data sources rather than global sources. 56 References – Definitions and Calculations Definitions for Oil and Gas Industry are Included 57 Frequently Asked Questions (FAQ) FAQ Document is on GEMI Website and is accessed from here 58 How to Contact GEMI 2012 Board of Directors Chair: Bill Gill, Smithfield Foods Vice Chair: Neville Dias, Carnival Corporation & plc Finance Chair: Bill Lechner, The Scotts Miracle-Gro Company Membership Chair: Lori Williams, FedEx Benchmarking/Next Initiatives Chair: Lindell Sneed, Abbott Solution Tools Chair: Steve Shedroff, Procter & Gamble Communications and Marketing Chair: Heather Tansey, 3M Senior Advisory Council (SAC) Chair: Steve Schwalb, Perdue Incorporated Chair Emeritus: Keith Miller, 3M GEMI Management Executive Director: Steven Hellem Director: Amy Goldman Phone: 202-296-7449 Email: [email protected] Web site: www.gemi.org 1155 15th Street, NW, Suite 500, Washington, DC 20005 USA 59 GEMI welcomes feedback on the use and value of the GEMI LWTTM for Oil and Gas to your company. Please send feedback to: [email protected] www.gemi.org/localwatertool 60
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