Our environmental management systems (EMSs) are being reviewed with the goal of establishing one uniform ISO 14001 compliant system across the refining business.

We have invested in upgrading technology to produce cleaner fuels to meet both the Fuel Quality Standards Act 2000 and the more stringent fuel standards beyond 2006. The Board approved the Clean Fuels Project in February 2004. Funding stands at $295 million and construction commenced in October 2004.

Air quality: reducing emissions from our refineries
The refineries' key pollutants include: oxides of sulfur and nitrogen, carbon monoxide, particulate matter and volatile organic compounds. Data on our air emissions is supplied to Environment Australia and can be seen in the National Pollution Inventory (NPI).

Compliance with our licenses
The Kurnell and Lytton refineries operate under licenses from the NSW EPA and the Queensland EPA respectively. We exceeded the conditions of our EPA licenses on 7 occasions in 2002 and 18 occasions in 2003. The increase can be attributed to a stricter definition of what constitutes a licence exceedence.

Prosecutions and penalties for environmental breaches
In 2002 we received three fines from the courts for breaches of state environmental laws. We also received a number of on the spot fines or infringement notices in 2002 and 2003 for less serious events. Details of the prosecutions and penalties can be found in full by downloading this chapter (click here).

Spills and releases
2002 major spills/releases: two spills of product to land and one vapour release.

2003 major spills/releases: one release of odourant to air, two leaks of product to land and one release of acidic water to land.

These incidents have been investigated and management action taken to prevent a recurrence.

There was an increase in the number of minor spills and releases reported in 2003. Most of the increase was accounted for by spills reported by the retail network.

Oil spill response plans are in place and reviewed regularly at both the Kurnell and Lytton refineries

Caltex's Emergency Response Service
Any emergencies are reported to a 24-hour hotline: 1800 033 111.

This service provides emergency response assistance, first aid and technical product advice.

The two main incident types reported in 2002 and 2003 were categorised as human exposure and transport spillage.

Energy consumption and greenhouse gas emissions
A large amount of energy goes into making our products. In 2002, 1.3% of Australia's national total greenhouse gas emissions came from petroleum refining. Ninety percent of Caltex's total energy consumption is from our refineries.

	A decrease in flaring rates at Lytton refinery
	Consistent and reliable operation of the process units at Lytton refinery
	Replacement of a large fired heater at Kurnell refinery

The full year performance was impacted by a number of other unrelated reliability problems. Since 1994 we have reduced our total greenhouse gas emissions by 4.9%.

Cleaner fuels and greenhouse gas emissions
The production of cleaner, environmentally friendly fuels uses more energy than the current refining process. We expect around a 7% increase in emissions compared to current levels from the refineries when producing cleaner fuel. The decrease in emissions from vehicles using the cleaner fuel is expected to more than offset this increase.

The Greenhouse Challenge
In 1997 we became a member of the Australian Greenhouse Office's Greenhouse Challenge. We measure and report annually on our greenhouse gas emissions and progress in reducing them.

	Variable speed motors were installed on the sour water stripper to improve power management system
	The operation and hardware of the cracker were modified resulting in reduced gas production and flaring
	The furnace of one of the crude oil distillation units was replaced improving efficiency and reliability

	We sell a 10% ethanol blend in NSW
	We released E10 Unleaded petrol in the Cairns market, trial extended to May 2005
	We are involved in a trial of biodiesel with Newcastle City Council truck fleet.

Water
Lytton refinery: water usage in 2002 and 2003 was less than in 2001.

Kurnell refinery: the reported increase in 2002 has continued to fall in absolute terms. Kurnell joined the 'Every Drop Counts' program in 2003, and continues to work to progress water conservation. We have an agreed Pollution Reduction Program with the NSW EPA in regard to seawater use.

Remediation of contaminated sites
Over $14 million has been allocated for the remediation of 26 sites across Australia . We also spent $6.7 million on remediating sites that were to be sold.

Ten million dollars has been allocated to address potential leaks and contamination at service stations in Victoria and at Calstores. Our service stations will be subject to environmental risk assessment over the next five years.

Waste management and recycling
Our refineries generate large amounts of waste, and we are committed to reducing, reusing and recycling.

	9,000 tonnes of waste was recycled
	10,000 tonnes of oil-contaminated solids was treated
	All process water leaving refineries is treated
	A waste permit system means waste is transported, stored and treated appropriately
	Office waste is recycled from all our sites

The text above is a summary of chapter 8 of the Caltex Environment, Health, Safety & Community Report for 2002 & 2003. Please use the links on the right to view or download pdf files of this chapter or the entire report.