At Sunoco, we believe that excellent performance in health, environment and safety (HES) is essential to achieving operations excellence and superior financial performance.

Over the past decade, we have made considerable progress in all areas of HES performance, but moving to the next level requires further changes in our workplace culture. Leading HES indicators and employee participation are key, as are the development and use of comprehensive management systems. These initiatives are designed to drive improved performance by integrating health, safety and environmental performance with operations management.

Sunoco is committed to being a responsible corporate citizen in all of our businesses and in the communities in which we operate. This requires continuous improvement in our HES performance as well as sensitivity and flexibility in our dealings with the public.

Accountability
Accountability is a critical part of improving HES performance. Business unit leaders must review serious incidents at the monthly executive-level HES Committee meetings and provide the committee with quarterly HES performance reports. In addition, senior managers meet with their Senior Vice Presidents regularly to discuss critical HES issues.

The company's Success Sharing Program was revised in 2001 to require that certain HES performance targets be met. The program, in which both management and labor participate, establishes targets each year at the company, business unit and facility/entity levels. HES Success Sharing Modifiers also are reviewed and approved by the Board Compensation Committee to determine the impact on success sharing awards should HES performance be better/worse than the established target.

Responsibility
Sunoco's health, environment and safety performance is the shared responsibility of all Sunoco employees. The CEO of the company holds senior management and the business units accountable for the HES performance of the employees, operations and businesses under their control.

Development of Sunoco's HES philosophy and strategic direction is vested in the Vice President, HES Regulatory Affairs, and the Chief Administrative Officer. Both executives have direct access to the CEO.

Corporate oversight for Sunoco's health, environment, and safety performance is provided by the executive-level Corporate Health, Environment and Safety Committee, chaired by the CAO, and the Public Affairs Committee of the Board of Directors. HES performance programs are fostered under the guidance of the Director, HES Performance. Click here to see the HES oversight structure.

Chairman's Award for Excellence in Health, Environment and Safety Performance

La Porte representatives accepted the Chairman’s Award for Excellence in HES Performance at the March 2, 2006 Board of Directors meeting. Pictured are: Back row from left: Don Empfield, Facility Manager; JackDrosdick, Sunoco Chairman, CEO and President; Bruce Fischer, Senior Vice President, Chemicals; Mike White, Vice President, Manufacturing; and Tim Thompson, HES Manager; Seated from left: Bobby Miller, Production Supervisor; Jay Garrett, Operator; Loris Canahuati, Production Manager; and Ed Berg, Maintenance Manager.

Representing the Marcus Hook Refinery at the March 2, 2006 Board of Directors meeting to accept their Chairman’s Award for Excellence in HES Performance were: Back row from left: Pat Sheeky, Executive Vice President, United Steel Workers Local 10-901; Mark Brandon, Operations Manager; Jack Drosdick, Sunoco Chairman, CEO and President; Joel Maness, Executive Vice President, Refining and Supply; Vince Kelley, Senior Vice President, Refining; Kevin Robles, Facility Manager; James Demes, Maintenance Manager; Rich Mattis, Supervisor, Health & Safety. Front row from left: Don Kaut, TOP Coordinator; Tim Kolodi, Union President, United Steel Workers Local 10; and Dave Campbell, Joint Health & Safety Committee Chairman; and Erik Larsen, Union Health & Safety Representative.

The Chairman's Award for Excellence in Health, Environment and Safety performance for the year 2005 was awarded to both the La Porte Plant and Marcus Hook Refinery. The award is distributed to business units and facilities for exemplary achievement across a wide range of HES areas, such as occupational safety and health and the prevention of accidents, oil spills, fires, air permit exceedances, water permit exceedances and enforcement penalties.

The Chairman's Award signifies Sunoco's strong commitment to operational excellence and is given annually when there is a facility or business unit that has demonstrated HES excellence.

The La Porte Plant HES performance in 2005 included these highlights:

100% reduction in the OSHA recordable incident rate (0.00 in 2005 vs. 0.89 in 2004);

• 100% reduction in the OSHA recordable incident rate (0.00 in 2005 vs. 0.89 in 2004);
• Zero contractor recordable injuries;
• Zero Class I and II Spills;
• Zero Wastewater Exceedances; and
• 77% reduction in Air Permit Exceedances.

The Marcus Hook Refinery Plant HES performance in 2005 included these highlights:

• Third consecutive year with an OSHA Recordable Incident Rate below 0.6;
• Second consecutive year with a Contractor OSHA Recordable Incident Rate of less than 0.5;
• 42% reduction in Air Permit Exceedances;
• 33% reduction in Wastewater Permit Exceedances; and
• 50% reduction in Class I and II Spills Exceedances.

As described below, the following facilities received a Chairman's Award for HES Achievement:

• Frankford Chemicals Plant
  • 80% Reduction in Air Exceedances
  • Zero Water Exceedances
  • Zero Class I or II Spills
     
• Bayport Chemicals Plant
  • Zero Air and Water Exceedances
  • Zero Class I or II Spills
     
• Philadelphia Refinery
  • 90% reduction in Water Exceedances
  • Zero Class I or II Spills

• Company Operated Division “Co-OP”
  • OSHA Recordable Incident Rate of 1.78, a 42% reduction and “Best in History”
     
• Retail Heating Fuels
  • OSHA Recordable Incident Rate of 2.78, a 33.7% reduction and “Best in History”
  • 44% Reduction in Preventable Vehicle Accidents
     
• Transportation
  • OSHA Recordable Safety Rate of 0.75, a 67% reduction and “Best in History”
  • 63% Reduction in Preventable Vehicle Accidents
     
• Service Station Maintenance
  • OSHA Recordable Incident Rate of 0.67, a 28% reduction
  • 53% Reduction in Preventable Vehicle Accidents
     
• Automotive Events Department “Performance Products”
  • Achieving Significant Improvement in OSHA Recordable Incident Rate and performance
     
• Branded Marketing Administration
  • OSHA Recordable Incident Rate of 0.67, a 28% reduction
  • 53% Reduction in Preventable Vehicle Accidents

• Tulsa Refinery
  • OSHA Recordable Incident Rate of 0.44, a 49% reduction and “Best in History”
  • Zero Contractor Recordable Safety Incidents
     
• Eagle Point Refinery
  • OSHA Recordable Incident Rate of 0.59, a 50% reduction
  • Contractor OSHA Recordable Incident Rate of 0.40, a 73% reduction

Meritorious Award for HES:

• Neal Chemicals Facility
  • Employee Recordable Safety Rate of 0.73, a 73% reduction
  • Zero Contractor Recordable Safety Incidents
  • 80% Reduction in Air Exceedances
  • Zero Water Exceedances
  • Zero Class I or II Spills

HES Glossary
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Conversion Table
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Summary Report
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