Health and Safety

Health and safety is a principal component of California Resources Corporation’s (CRC’s) core values of Character, Responsibility and Commitment. The National Safety Council has recognized the safety performance of our employees each year since our formation. In 2017, CRC and our regional operations again received National Safety Achievement Awards at the Council’s annual meeting, where CRC was one of only 27 organizations from across the country that the Council recognized.

One of CRC’s three key Health, Safety and Environmental (HSE) metrics is the U.S. Occupational Safety and Health Administration’s Injury and Illness Incidence Rate (IIR), which measures the rate of recordable illnesses or injuries per 200,000 work hours (i.e., 100 full-time workers) per year. Importantly, we apply our metric equally to our own employees and to those of our joint ventures, suppliers and vendors while working on our behalf, since we believe our safety culture must encompass everyone who works on and visits our operations.

We work actively to reduce potential risks in our operations by setting consistent expectations in our job planning and contractor selection, empowering and training our workforce as safety leaders, and supporting them with safe work practices, technology and rigorous maintenance and asset integrity programs. All employees, suppliers and vendors have the authority and responsibility to stop any activity – without repercussions – that they perceive may be unsafe or may give rise to an environmental incident. Reporting of stop work events and other incidents is mandatory for employees, contractors and visitors alike, so that we can review and learn from them to prevent recurrence.

From 2012 through 2017, our California workforce achieved their six best annual combined safety performance ratings in the decades-long history of our operations. Our 2017 IIR of 0.62 was 31 percent better than the average IIR for the Oil and Natural Gas Extraction Sector and 79 percent better than the average IIR for private industry in 2016, the most recent data reported by the U.S. Bureau of Labor Statistics.

CRC’s safety results since our formation have been within the top six years in the extended history of our operations. We have not had any occupational fatalities in our operations since our launch as an independent company in 2014. CRC’s IIR is also consistently far better than national average for the oil and gas extraction industry, which is, in turn, far better than the national average for all private employers and even for sectors like colleges, universities and professional schools. We did not meet our 2017 target IIR of 0.55, which reduced the incentive compensation for our management team and employees. We are maintaining a target IIR for 2018 of 0.55.

Our safety performance results for 2015-2017 are presented in the graph and table below, benchmarked against other sectors.

SafetyStatistics


Year Occupational Fatalities CRC IIR1 IIR for Oil & Gas Extraction Sector2 IIR for Colleges, Universities & Prof Schools2 IIR for All Industries2
2015 0 0.56
2016 0 0.49 0.9 1.7 2.9
2017 0 0.62

1 CRC’s Injury and Illness Incidence Rate (IIR), also known as the total recordable injury rate (TRIR), is the number of recordable occupational injuries or illnesses per 200,000 work hours (i.e., 100 full-time workers) per year, applying the methodology of the Occupational Safety and Health Administration of the U.S. Department of Labor. CRC’s IIR applies both to CRC employees and to employees of our joint ventures, suppliers or vendors while working on our operations.

2 The IIRs shown for all U.S. private industry, for Colleges, Universities and Professional Schools, and for the Oil and Natural Gas Extraction sector are the respective average IIRs reported by the Bureau of Labor Statistics of the U.S. Department of Labor for 2016, the most recent year available.